Charles River Laboratories has reported financial results for the fourth quarter and for full-year 2011.

For the quarter, net sales from continuing operations were $291 million, up 3.3% from $281.7 million in the year-ago quarter. On a segment basis, sales increased in Research Models and Services (RMS), but declined in Preclinical Services (PCS).

The addition of a 53rd week at the end of 2011, which is periodically required to true up to a Dec. 31 fiscal year end, contributed approximately 4.5% to reported fourth-quarter sales.

On a GAAP basis, net income from continuing operations for the fourth quarter was $27.1 million, or $0.55 per diluted share, compared to a net loss of $342.4 million, or $5.94 per diluted share, for the year-ago quarter.

On a non-GAAP basis, net income from continuing operations was $33.6 million for the fourth quarter, a decline of 2.8% from $34.5 million for the same period in 2010. A higher tax rate and lower other income were the primary drivers of the change. Fourth-quarter diluted earnings per share on a non-GAAP basis were $0.69, an increase of 15% from $0.60 per share a year ago. Non-GAAP earnings per share benefited primarily from the net accretion of stock repurchases.

James C. Foster, chairman, president and CEO, said, "We believe that our fourth-quarter results demonstrate a modestly improving environment on a number of levels: stable large biopharma demand, increasing demand for non-regulated services, better funding for mid-tier biopharma companies and consistent growth in the academic and government sector."

Full-year results for 2011 showed net sales from continuing operations increase 0.8% to $1.14 billion from $1.13 billion in 2010. Foreign currency translation benefited net sales growth by 2.2%. The 53rd week contributed approximately 1.0% to reported 2011 sales.

On a GAAP basis, net income from continuing operations for 2011 was $115.5 million, or $2.24 per diluted share, compared to a net loss of $334.1 million, or $5.25 per diluted share, in 2010.

On a non-GAAP basis, net income from continuing operations for 2011 was $131.3 million, or $2.56 per diluted share, compared to $125.6 million, or $1.99 per diluted share, in 2010.

For 2011, Research Models and Services (RMS) net sales were $705.4 million, up 5.8% from $667 million in 2010. Foreign currency translation benefited net sales growth by 2.7%. On a GAAP basis, the RMS segment operating margin was 29.2% in 2011, compared to 27.7% in 2010. On a non-GAAP basis, the operating margin was 30.4% in 2011, compared to 29.5% in 2010.

Preclinical Services (PCS) net sales in 2011 were $437.2 million, down 6.3% from $466.4 million in 2010. Foreign currency translation benefited net sales growth by 1.5%. On a non-GAAP basis, the operating margin was 12.6% in 2011, compared to 11.9% in 2010. The GAAP operating margin for the PCS segment was 5.7% in 2011, compared to (81.4%) in 2010 as a result of the goodwill and other impairments.

Charles River reported results from continuing operations, which excluded results of the phase I clinical business that was divested in 2011. The phase I business is reported as a discontinued operation.