Laboratory Corporation of America® Holdings
358 South Main Street
Burlington, NC 27215
Telephone: (336) 584-5171
FOR IMMEDIATE RELEASE
Contact: Stephen Anderson - 336-436-5076
LABORATORY CORPORATION OF AMERICA® HOLDINGS
ANNOUNCES 2013 FOURTH QUARTER AND FULL YEAR RESULTS
AND PROVIDES 2014 GUIDANCE
GAAP Diluted EPS of $1.43 and $6.25 for the Quarter and the Year, respectively
Non-GAAP Adjusted EPS Excluding Amortization of $1.61 and $6.95 for the Quarter and the Year, respectively (negative impact from weather was $0.03 and $0.07, respectively)
2013 Operating Cash Flow of $818.7 Million and Free Cash Flow of $616.5 Million
2013 Share Repurchase of approximately $1.0 Billion, representing 10.4 Million shares
Burlington, NC, February 7, 2014 - Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH) today announced results for the quarter and year ended December 31, 2013.
Fourth Quarter Results
Net earnings were $126.3 million and earnings per diluted share (EPS) were $1.43 in the fourth quarter of 2013. Non-GAAP earnings per diluted share, excluding amortization, restructuring and other special charges (Adjusted EPS Excluding Amortization) recorded in the fourth quarter of 2013 were $1.61. Weather late in the quarter reduced Adjusted EPS Excluding Amortization by approximately $0.03.
Operating income for the quarter was $215.0 million. Non-GAAP operating income excluding restructuring and other special charges (Adjusted Operating Income) recorded in the quarter was $219.0 million, or 15.2% of revenue.
Revenues for the quarter were $1,437.0 million, an increase of 2.3% over the fourth quarter of 2012. Test volume, measured by requisitions, increased 5.0%. Revenue per requisition was flat sequentially, but decreased 2.6% year over year.
During the fourth quarter, government payment reductions and molecular pathology payment issues reduced the Company’s year over year margins by approximately 170 basis points, reduced year over year revenue per requisition by approximately 2% and reduced year over year operating cash flow by more than $30 million. Also, growth in the Company’s toxicology business reduced year over year revenue per requisition by approximately 2% in the fourth quarter.
Operating cash flow for the quarter was $248.7 million. The balance of cash at the end of the quarter was $404.0 million, and there were no borrowings outstanding under the Company’s $1 billion revolving credit facility. During the quarter, the Company repurchased $251.6 million of stock, representing 2.5 million shares. As of December 31, 2013, $1,052.5 million of repurchase authorization remained under the Company’s share repurchase plan.
The following information was filed by Laboratory Corp Of America Holdings (LH) on Friday, February 7, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.