Revenue during the quarter grew 21.82 percent to $425.72 million from $349.46 million in the previous year period. Gross margin for the quarter contracted 280 basis points over the previous year period to 36.71 percent. Total expenses were 86.19 percent of quarterly revenues, up from 84.14 percent for the same period last year. That has resulted in a contraction of 205 basis points in operating margin to 13.81 percent.

Operating income for the quarter was $58.80 million, compared with $55.44 million in the previous year period.

However, the adjusted operating income for the quarter stood at $24.96 million compared to $16.11 million in the prior year period. At the same time, adjusted operating margin improved 125 basis points in the quarter to 5.86 percent from 4.61 percent in the last year period.

James C. Foster, Chairman, President and Chief Executive Officer, said, “We believe that the trends that drove revenue growth in the first half of the year continued in the third quarter, and will continue in the fourth quarter. As a result, we expect that reported revenue growth in 2016 will be in a range of 21% to 22%, and that growth for the legacy businesses will be between 7% to 8%, approximately 100 basis points higher at the midpoint than in 2015.”

The company has spent $615.43 million cash to meet investing activities during the nine month period as against cash outgo of $248.98 million in the last year period.

Cash flow from financing activities was $414.19 million for the nine month period as against cash outgo of $11.44 million in the last year period.

Cash and cash equivalents stood at $105.72 million as on Sep. 24, 2016, up 42.81 percent or $31.69 million from $74.03 million on Sep. 26, 2015.

Working capital declines
Charles River Laboratories International, Inc International has witnessed a decline in the working capital over the last year. It stood at $242.53 million as at Sep. 24, 2016, down 8.33 percent or $22.03 million from $264.56 million on Sep. 26, 2015. Current ratio was at 1.59 as on Sep. 24, 2016, down from 1.84 on Sep. 26, 2015.

Cash conversion cycle (CCC) has decreased to 68 days for the quarter from 100 days for the last year period. Days sales outstanding went down to 68 days for the quarter compared with 74 days for the same period last year.

Days inventory outstanding has decreased to 17 days for the quarter compared with 40 days for the previous year period. At the same time, days payable outstanding went up to 17 days for the quarter from 14 for the same period last year.