For further information:
Richard Michaelson
Phone US:  (732) 649-9961
e-mail:  LifeSciencesResearch@LSRinc.net

March 28, 2002

LSR ANNOUNCES 2001 RESULTS

East Millstone, New Jersey, March 28, 2002 – Life Sciences Research, Inc. ("LSR") announced today that net revenues for the year ended December 31, 2001 were $99.2 million, 3% above the revenues for the year ended December 31, 2000 of $96.0 million, continuing the improvement shown last year.  The underlying increase, after adjusting for the impact of the movement in exchange rates, was nearly 9%.  The Company reported a net loss for the year ended December 31, 2001 of $8.6 million compared with a net loss of $9.8 million the previous year.  Loss per share for the year ended December 31, 2001 was $1.46 compared with $1.68 in the year ended December 31, 2000, including Other Operating Expenses associated with refinancing and the LSR Exchange Offer of $3.3 million and $1.8 million in 2001 and 2000 respectively.  Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) were $6.8 million for full year 2001, exclusive of the items discussed above, or 6.9% of sales, compared to $9.0 million, or 9.4% of sales, for the prior year.

For the quarter ended December 31, 2001, revenues were $26.8 million, compared to $22.9 million during the same period last year.  Excluding the Other Operating Expenses referred to above, net loss for the quarter was $1.0 million, compared to $0.8 million in the prior year period.  On the same basis, EBITDA was $3.0 million, or 11.2% of sales, compared to $0.3 million, or 1.3% of sales in the same period last year.

“This is an exciting period for Life Sciences Research”, said Andrew Baker, LSR’s Chairman and CEO, “ as we inaugurate the next chapter in our 50 year corporate history as a new, American domiciled public company.  With our shares now on a US stock exchange, and the completion of our recently announced private placement to strengthen our capital position, we believe we are well positioned to benefit all of our stakeholders.”

Brian Cass, LSR’s President and Managing Director, said “The support we’ve enjoyed from our clients is both gratifying and encouraging.  Record orders for 2001, up 9% from the prior year, have helped us grow our revenues 18.7% from the first to the last quarter.  Our booked-on backlog sits at approximately $73 million, an historic level and one which reflects the confidence our clients have in our company.”

He added "2001 was an important and rewarding year and I should like to pay tribute to all our stakeholders and advisors, but particularly to our staff, who have steadfastly maintained a focus on quality work and striven for the highest levels of customer service; we believe this will be further rewarded as we continue to build customer support, order levels and a return to historic levels of success."

Life Sciences Research, Inc. is one of the world’s leading Contract Research Organizations providing product development services to the pharmaceutical, agrochemical and biotechnology industries.  LSR brings leading technology and capability to support its clients in non-clinical safety testing of new compounds in early stage development and assessment.  The purpose of this work is to identify risks to humans, animals or the environment resulting from the use or manufacture of a wide range of chemicals which are essential components of LSR's clients' products.  The Company's services are designed to meet the regulatory requirements of governments around the world.  LSR operates research facilities in the United States (the Princeton Research Centre, New Jersey) and the United Kingdom (Huntingdon and Eye, England).

This announcement contains statements that may be forward-looking as defined by the USA’s Private Litigation Reform Act of 1995.  These statements are based largely on LSR’s expectations and are subject to a number of risks and uncertainties, certain of which are beyond LSR’s control, as more fully described in LSR’s Registration Statement on Form S-4, dated December 21, 2001, as filed with the US Securities and Exchange Commission.  The Company will be filing a Rule 12b-25 Notification stating that its Form 10-K will be filed no later than April 12, 2002, in order to provide the Company’s auditors sufficient time to complete their review of the conversion of the Company’s financial statements to US dollars for the period ended December 31, 2001.

– tables to follow –


Life Sciences Research Inc.

Statement of Operations

(amounts in thousands, except per share data)

 

Year Ended December 31,

 

2001

 

2000

**

1999

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

Revenues

99,206

 

95,964

 

94,186

Cost of sales

(84,133)

 

(80,740)

 

(82,890)

Gross profit

15,073

 

15,224

 

11,296

Selling and administrative expenses

(16,716)

 

(15,140)

 

(14,603)

Other operating (expense)/income *

(3,302)

 

(1,819)

 

825

 

 

 

 

 

 

Operating loss

(4,945)

 

(1,735)

 

(2,482)

 

 

 

 

 

 

Interest income

104

 

181

 

571

Interest expense

(6,614)

 

(7,385)

 

(6,934)

Other (expense)/income

(100)

 

(3,544)

 

(1,550)

Loss before income taxes

(11,556)

 

(12,483)

 

(10,395)

Income tax benefit (note 5)

2,996

 

2,720

 

3,790

Net loss

(8,560)

 

(9,763)

 

(6,605)

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 -basic

$(1.46)

 

$(1.68)

 

$(1.13)

 -diluted

$(1.46)

 

$(1.68)

 

$(1.13)

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 -basic

5,876,754

 

5,824,121

 

5,820,205

 -diluted

5,876,754

 

5,824,121

 

5,820,205

* Other Operating Expenses in 2001 included costs associated with refinancing ($217) and the LSR exchange offer ($3,085); 2000 included refinancing costs ($1,819); 1999 included asset write downs, primarily associated with computer equipment deemed to not be Y2K compliant ($2,018) offset by gain on the sale of the Wilmslow facility ($2,843).

** Other expenses in 2000 and 1999 included exchange losses of $3.7 million and $1.6 million respectively.  With the change in the Company’s functional currency from sterling to the dollar in 2001 these exchange movements no longer appear in Other expenses.

Life Sciences Research, Inc.
Balance Sheet
(amounts in thousands)

 

          December 31,

 

 

2001

 

2000

 

ASSETS

(unaudited)

 

(unaudited)

Current assets:

 

 

 

 

Cash and cash equivalents

2,390

 

3,286

 

Accounts receivable, net of allowance for uncollectible amounts of $164,000 (2000, $86,000)


18,257

 


16,454

 

Unbilled receivables

13,920

 

8,866

 

Inventories

1,275

 

1,354

 

Prepaid expenses and other

2,560

 

2,002

 

Deferred income taxes

73

 

493

 

Total current assets

38,475

 

32,455

 

 

 

 

 

 

Property and equipment, net

90,353

 

97,660

 

 

 

 

 

 

Investments

202

 

230

 

Unamortised capital bonds issue costs

691

 

872

 

 

 

 

 

 

Deferred income taxes

8,587

 

7,693

 

 

 

 

 

 

Total assets

138,308

 

138,910

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

8,500

 

5,941

 

Accrued payroll and other benefits

2,323

 

1,591

 

Accrued expenses and other liabilities

11,735

 

6,602

 

Fees invoiced in advance

17,722

 

16,221

 

Short-term debt

158

 

35,314

 

Total current liabilities

40,438

 

65,669

 

Long-term debt

88,123

 

50,209

 

Other long-term liabilities

174

 

1,817

 

Deferred income taxes

14,364

 

17,149

 

Total liabilities

143,099

 

134,844

 

 

 

 

 

 

Shareholders equity

 

Authorised Shareholders' Equity, 600,000,000 – 1 cent par value Common Voting Stock

 

Issued and outstanding 5,970,205 1 cent par value Common Voting Stock (2000: 5,823,699)

60

58

 

Paid-in capital

66,320

 

65,408

 

Currency translation adjustment

(5,781)

 

(4,570)

 

Accumulated deficit

(65,390)

 

(56,830)

 

Total shareholders'(deficit)/equity

(4,791)

 

4,066

 

Total liabilities and shareholders' (deficit)/equity

138,308

 

138,910

 

 

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