FOR IMMEDIATE RELEASE
Stephen Anderson - 336-436-5076
Paul Surdez - 609-452-4807
Company Information: www.labcorp.com
358 South Main Street
Burlington, NC 27215
Telephone: (336) 584-5171
LABORATORY CORPORATION OF AMERICA® HOLDINGS
ANNOUNCES 2014 FOURTH QUARTER AND FULL YEAR RESULTS
AND PROVIDES 2015 GUIDANCE
Strong Q4 volume drives sales of $1.5 billion
Diluted Q4 EPS of $1.39; Adjusted Q4 EPS of $1.65
Q4 Operating Cash Flow of approximately $214 million
Q4 Free Cash Flow of approximately $167 million
Announces Project LaunchPad, its enterprise-wide business process improvement initiative
2015 Adjusted EPS guidance of $7.35 - $7.70, inclusive of Covance as of February 19, 2015
Burlington, NC, February 20, 2015 - Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH) today announced results for the fourth quarter and year ended December 31, 2014 and 2015 guidance.
Fourth Quarter Results
Sales for the quarter were approximately $1.51 billion, an increase of 5.3% over last year’s $1.44 billion. The increase in sales was the result of volume, measured by requisitions, and acquisitions, partially offset by price, mix and currency. The growth in revenue was due to organic volume of 5.3%, partially offset by a decline in revenue per requisition of 1.1% and negative impact of currency of 0.5%. In addition, acquisitions added 1.6% to sales. Total volume, including acquisitions, increased 6.4%.
Operating income for the quarter was $219.0 million, compared to $215.0 million in the fourth quarter of 2013. The Company recorded restructuring and special items of $15.6 million during the fourth quarter of 2014, compared to $4.0 million in the fourth quarter of 2013. Special items during the quarter consisted of costs associated with Project LaunchPad ($9.2 million), restructuring ($2.4 million), and the acquisition of Covance ($4.0 million). Adjusted operating income (excluding restructuring and special items) for the quarter was $234.6 million, or 15.5% of sales, compared to $219.0 million in the fourth quarter of 2013, or 15.2% of sales. The increase in adjusted operating income was due to increased volume, partially offset by personnel expense, core testing growth outpacing esoteric testing growth and less revenue generated from uninsured patients.
Net earnings for the fourth quarter were $119.6 million and diluted EPS were $1.39, compared to last year’s earnings of $126.3 million and $1.43, respectively. Adjusted EPS (excluding amortization, restructuring and special items) were $1.65 in the fourth quarter, compared to $1.61 in the fourth quarter of 2013.
The following information was filed by Laboratory Corp Of America Holdings (LH) on Friday, February 20, 2015 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.