|Laboratory Corporation of America(R) Holdings Announces 2012 First Quarter Results|
BURLINGTON, N.C., Apr 19, 2012 (BUSINESS WIRE) --Laboratory Corporation of America(R) Holdings (LabCorp(R)) (NYSE: LH) today announced results for the quarter ended March 31, 2012.
First Quarter Results
Net earnings were $161.6 million and earnings per diluted share (EPS) were $1.63 in the first quarter of 2012. Non-GAAP earnings per diluted share, excluding amortization, restructuring and other special charges recorded in the first quarter of 2012 and 2011 (Adjusted EPS Excluding Amortization) were $1.74 and $1.52, respectively.
Operating income for the first quarter was $287.1 million. Non-GAAP operating income excluding restructuring and other special charges recorded in the first quarter of 2012 and 2011 (Adjusted Operating Income) was $283.5 million and $263.7 million, respectively.
Revenues for the quarter were $1,423.3 million, an increase of 4.0% over the first quarter of 2011. Testing volume, measured by requisitions, increased 2.8%, and revenue per requisition increased 1.2%. The quarter benefited from comparatively mild weather, which increased the revenue and volume growth rate by approximately 1.5%.
Operating cash flow for the quarter was $197.1 million. The balance of cash at the end of the quarter was $129.9 million, and there were $460.0 million of borrowings outstanding under the Company's $1.0 billion revolving credit facility. During the quarter, the Company repurchased approximately $122.3 million of stock, representing approximately 1.4 million shares. As of March 31, 2012, approximately $462.1 million of repurchase authorization remained under the Company's previously approved share repurchase plan.
During the first quarter of 2012, the Company recorded a net credit of $3.6 million in restructuring and other special charges. The Company reversed previously established reserves of $3.8 million in unused severance and $2.4 million in unused facility-related costs. This net credit also includes charges of $1.7 million in severance and other personnel costs along with $0.9 million in facility-related costs primarily related to ongoing integration activities for Orchid and Genzyme Genetics.
"We delivered another quarter of strong earnings and margin growth. Our core business continues to perform well, and we remain extremely pleased with the performance of the Genzyme Genetics and Orchid Cellmark acquisitions," said David P. King, Chairman and Chief Executive Officer.
Outlook for 2012
The Company is reaffirming its 2012 guidance, expecting revenue growth of approximately 2.0% - 3.5%; Adjusted EPS Excluding Amortization in the range of $6.75 to $7.05, excluding the impact of any share repurchase activity after March 31, 2012; operating cash flow of approximately $950 million; and capital expenditures of approximately $155 million. The Company expects that Genzyme Genetics will be slightly accretive to 2012 earnings.
Use of Adjusted Measures
The Company has provided in this press release "adjusted" financial information that has not been prepared in accordance with GAAP, including Adjusted EPS, Adjusted EPS Excluding Amortization and Adjusted Operating Income. The Company believes these adjusted measures are useful to investors as a supplement to, but not as a substitute for, GAAP measures, in evaluating the Company's operational performance. The Company further believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating operating results and trends, and in comparing the Company's financial results with other companies. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in the tables accompanying this press release.
The Company today is filing an 8-K that will include additional information on its business and operations. This information will also be available on the Company's Web site. Analysts and investors are directed to this 8-K and the Web site to review this supplemental information.
A conference call discussing LabCorp's quarterly results will be held today at 9:00 a.m. Eastern Time and is available by dialing 866-578-5771 (617-213-8055 for international callers). The access code is 53136963. A telephone replay of the call will be available through April 26, 2012 and can be heard by dialing 888-286-8010 (617-801-6888 for international callers). The access code for the replay is 76415696. A live online broadcast of LabCorp's quarterly conference call on April 19, 2012 will be available at http://www.labcorp.com/ or at http://www.streetevents.com/ beginning at 9:00 a.m. Eastern Time. This webcast will be archived and accessible continuing through May 19, 2012.
Laboratory Corporation of America(R) Holdings, an S&P 500 company, is a pioneer in commercializing new diagnostic technologies and the first in its industry to embrace genomic testing. With annual revenues of $5.5 billion in 2011, over 31,000 employees worldwide, and more than 220,000 clients, LabCorp offers more than 4,000 tests ranging from routine blood analyses to reproductive genetics to companion diagnostics. LabCorp furthers its scientific expertise and innovative clinical testing technology through its LabCorp Specialty Testing Group: The Center for Molecular Biology and Pathology, National Genetics Institute, ViroMed Laboratories, Inc., The Center for Esoteric Testing, Litholink Corporation, Integrated Genetics, Integrated Oncology, DIANON Systems, Inc., Monogram Biosciences, Inc., Colorado Coagulation, and Endocrine Sciences. LabCorp conducts clinical trials testing through its LabCorp Clinical Trials division. LabCorp clients include physicians, government agencies, managed care organizations, hospitals, clinical labs, and pharmaceutical companies. To learn more about our organization, visit our Web site at: www.labcorp.com.
This press release contains forward-looking statements. Each of the forward-looking statements is subject to change based on various important factors, including without limitation, competitive actions in the marketplace and adverse actions of governmental and other third-party payors. Actual results could differ materially from those suggested by these forward-looking statements. Further information on potential factors that could affect LabCorp's financial results is included in the Company's Form 10-K for the year ended December 31, 2011, and subsequent SEC filings.
Notes to Financial Tables
SOURCE: Laboratory Corporation of America(R) Holdings
Laboratory Corporation of America(R) Holdings