Charles River Laboratories (CRL) Q2 2022 Earnings Call Transcript

For the period ending June 25, 2022

August 3, 2022 9:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Charles River Laboratories’ Second Quarter Earnings Conference Call. This call is being recorded. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to our host, Todd Spencer, Vice President of Investor Relations. You may begin.

Todd Spencer

Good morning and welcome to Charles River Laboratories second quarter 2022 earnings conference call and webcast.

This morning I am joined by Jim Foster, Chairman, President and Chief Executive Officer; and Flavia Pease, Executive Vice President and Chief Financial Officer. They will comment on our results for the second quarter of 2022. Following the presentation, they will respond to questions. There is a slide presentation associated with today's remarks which is posted on the Investor Relations section of our website at ir.criver.com. A webcast replay of this call will be available beginning approximately two hours after the call today and can also be accessed on our Investor Relations website. The replay will be available through next quarter's conference call.

I'd like to remind you of our Safe Harbor. All remarks that we make about future expectations, plans and prospects for the company constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated. During the call, we will primarily discuss non-GAAP financial measures which we believe help investors gain a meaningful understanding of our core operating results and guidance. The non-GAAP financial measures are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. In accordance with Regulation G, you can find the comparable GAAP measures and reconciliations on the Investor Relations section of our website.

I will now turn the call over to Jim Foster.

Jim Foster

Good morning. Our financial results reflect the sustained trends that continue to support our businesses and resulted in 9.5% organic revenue growth in the second quarter. These trends were offset by headwinds from our CDMO business and foreign exchange, which were the factors that led to the revised second quarter outlook in early June and coupled with interest rates have intensified since then leading to today's reduction in our revenue growth and earnings per share guidance for the full year. We believe that our guidance for the year appropriately reflects the current macroeconomic environment with regard to foreign exchange, interest rates and cost inflation, which have changed dramatically since the beginning of the year.