SEGMENT INFORMATION

6 Months Ended

Mar. 31, 2022

SEGMENT INFORMATION

SEGMENT INFORMATION

5.           SEGMENT INFORMATION

Due to the Envigo acquisition, the Company reports its results in two reportable segments – Discovery and Safety Assessment (DSA) and Research Models and Services (RMS).

The DSA segment provides preclinical research services on a contract basis directly to biopharma and pharmaceutical companies as well as certain research products. Preclinical research services include screening and pharmacological testing, nonclinical safety testing, formulation development, regulatory compliance and quality control testing, which are services required to take a drug through the early development process including discovery services, which are non-regulated services to assist clients with the identification, screening, and selection of a lead compound for drug development, and regulated and non-regulated (GLP and non-GLP) safety assessment services. This segment also provides research products, such as liquid chromatography, electrochemical and physiological monitoring products to pharmaceutical companies, universities, government research centers and medical research institutions.

The Company’s RMS reportable segment includes the research models, research model services and Teklad diet, bedding and enrichment businesses (“Teklad”). Research models include the commercial production and sale of small research models and large research models and the production and sale of certain biological products. Research model services include: Genetically Engineered Models and Services (“GEMS”), which performs contract breeding and other services associated with genetically engineered models; client-owned animal colony care; and health monitoring and diagnostics services related to research models. Teklad includes standard, custom and medicated diets as well as bedding and environmental enrichment products, which enhance the welfare of research animals.

During the three and six months ended March 31, 2022, the RMS segment reported intersegment revenue of $1,997 and $2,317, respectively, to the DSA segment. The following table presents revenue and other financial information by reportable segment:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Revenue
DSA	$	39,054	$	18,751	$	71,879	$	36,636
RMS		101,259		—		152,645		—
	$	140,313	$	18,751	$	224,524	$	36,636
Operating Income (Loss)
DSA	$	3,752	$	3,769	$	9,794	$	7,046
RMS		22,562		—		22,642		—
Unallocated Corporate		(18,446)		(4,290)		(58,209)		(7,553)
	$	7,868	$	(521)	$	(25,773)	$	(507)
Interest expense		(7,547)		(366)		(12,375)		(713)
Other (expense) income		(139)		179		(57,866)		179
Income (loss) before income taxes	$	182	$	(708)	$	(96,014)	$	(1,041)

Total assets by reporting segment is as follows:

	March 31,		September 30,
	2022		2021
DSA	$	262,010	$	321,856
RMS		877,411		—
	$	1,139,421	$	321,856

Revenue by geographic area is as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
United States	$	117,890	$	18,751	$	190,335	$	36,636
Netherlands		12,119		—		18,655		—
Other		10,304		—		15,534		—
	$	140,313	$	18,751	$	224,524	$	36,636