Revenue during the quarter surged 31.92 percent to $466.79 million from $353.85 million in the previous year period. Gross margin for the quarter contracted 119 basis points over the previous year period to 38.54 percent. Total expenses were 85.20 percent of quarterly revenues, down from 85.23 percent for the same period last year. This has led to an improvement of 3 basis points in operating margin to 14.80 percent.

Operating income for the quarter was $69.09 million, compared with $52.27 million in the previous year period.

However, the adjusted operating income for the quarter stood at $20.30 million compared to $21.12 million in the prior year period. At the same time, adjusted operating margin contracted 162 basis points in the quarter to 4.35 percent from 5.97 percent in the last year period.

James C. Foster, chairman, president and chief executive officer, said, "Our fourth-quarter results provided a strong finish to an exceptional year in which we met our long-term revenue goals for all of our businesses except Discovery, and our long-term operating margin targets for the three business segments. We were very pleased that three of our businesses, Safety Assessment, Microbial Solutions, and Biologics Testing Solutions, reported low-double-digit organic revenue growth for the full year. Client demand for our unique portfolio of essential products and services remained strong across each of our client segments, particularly for our biotechnology clients, who were the primary driver of our revenue growth in 2016."

For fiscal year 2017, Charles River Laboratories International forecasts revenue to grow in the range of 7.50 percent to 9 percent for the fiscal year 2017. The company expects diluted earnings per share to be in the range of $4.33 to $4.43. The company expects diluted earnings per share to be in the range of $5 to $5.10 on adjusted basis.

The company has spent $686.37 million cash to meet investing activities during the year as against cash outgo of $320.29 million in the last year.

Cash flow from financing activities was $390.73 million for the year, up 8,491.16 percent or $386.18 million, when compared with the last year.

Cash and cash equivalents stood at $117.63 million as on Dec. 31, 2016, down 0.27 percent or $0.32 million from $117.95 million on Dec. 26, 2015.

Working capital declines
Charles River Laboratories International has witnessed a decline in the working capital over the last year. It stood at $227.24 million as at Dec. 31, 2016, down 8.18 percent or $20.23 million from $247.47 million on Dec. 26, 2015. Current ratio was at 1.53 as on Dec. 31, 2016, down from 1.79 on Dec. 26, 2015.

Cash conversion cycle (CCC) has decreased to 43 days for the quarter from 47 days for the last year period. Days sales outstanding went up to 38 days for the quarter compared with 35 days for the same period last year.

Days inventory outstanding has decreased to 16 days for the quarter compared with 20 days for the previous year period. At the same time, days payable outstanding went up to 12 days for the quarter from 8 for the same period last year.