Charles River - JP Morgan Conference Presentation slide image

Charles River - JP Morgan Conference Presentation

CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP EARNINGS TO NON-GAAP EARNINGS (UNAUDITED)(¹) (in thousands, except per share data) Net income attributable to common shareholders Add back: Non-GAAP adjustments to operating income (Refer to previous schedule) Write-off of deferred financing costs and fees related to debt financing Venture capital and strategic equity investment losses (gains), net Gain due to sale of RMS Japan operations Loss due to U.S. Pension termination Other (2) Tax effect of non-GAAP adjustments: Non-cash tax provision related to international financing structure (3) Enacted tax law changes Tax effect of the remaining non-GAAP adjustments $ Three Months Ended December 25, 2021 December 26, 2020 137,578 $ 143,191 S Twelve Months Ended December 25, 2021 December 26, 2020 390,982 $ 364,304 16,293 35,749 152,201 152,284 26,089 13,142 (22,656) (68,635) 30,419 (100,861) (22,656) 10,283 10,283 (2,942) 1,028 1,454 (16,936) 87 Net income attributable to common shareholders, excluding non-GAAP adjustments $ 128,449 $ 122,129 Weighted average shares outstanding - Basic 50,471 49,754 Effect of dilutive securities: Stock options, restricted stock units and performance share units Weighted average shares outstanding - Diluted 1,084 51,555 1.274 51,028 Earnings per share attributable to common shareholders: Basic Diluted Basic, excluding non-GAAP adjustments Diluted, excluding non-GAAP adjustments 4,809 4,444 10,036 (58,404) (18,953) S 530,534 $ 411,501 50,293 49,550 1,132 51.425 1,061 50,611 $ 2.73 $ 2.88 $ 7.77 $ 7.35 $ 2.67 $ 2.81 S 7.60 $ 7.20 $ $ 2.55 2.49 $ $ 2.45 2.39 $ 10.55 $ $ 10.32 $ 8.30 8.13 (1) Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company's performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance. (2) Includes adjustments related to the gain on an immaterial divestiture and the finalization of the annuity purchase related to the termination of the Company's U.S. pension plan. (3) This adjustment relates to the recognition of deferred tax assets expected to be utilized as a result of changes to the Company's international financing structure. Charles River - JP Morgan Conference Presentation 31
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