FOR IMMEDIATE RELEASE
Contact: Clarissa Willett (investors) - 336-436-5076
Pattie Kushner (media) - 336-436-8263
Company Information: www.labcorp.com
358 South Main Street
Burlington, NC 27215
Telephone: (336) 584-5171
LABCORP ANNOUNCES 2019 SECOND QUARTER RESULTS
AND UPDATES 2019 GUIDANCE
Q2 revenue of $2.88 billion, up 0.5% from $2.87 billion last year; excluding the disposition of businesses revenue grew 2.4%
Q2 diluted EPS of $1.93, down 15% from $2.27 last year; Q2 adjusted EPS of $2.93, down 2% from $2.98 last year
2019 adjusted EPS guidance of $11.10 to $11.40, up 1% to 3% over 2018
2019 free cash flow guidance of $950 million to $1.05 billion, up 3% to 13% over 2018
BURLINGTON, N.C., July 25, 2019 -LabCorp® (or the Company) (NYSE: LH) today announced results for the second quarter ended June 30, 2019, and updated 2019 guidance.
“This quarter again highlighted the strength and balance of our businesses,” said David P. King, chairman and CEO of LabCorp. “Revenue grew 4.1% excluding non-operational headwinds from PAMA, disposition of businesses, and currency translation. Diagnostics performed well during the quarter, with the LaunchPad business transformation initiative largely offsetting known headwinds, while Drug Development continued to deliver strong top-line growth and margin expansion. We deployed capital to share repurchase and acquisitions, returning capital to shareholders and adding to our repertoire of innovative customer solutions that deliver value our customers want. We remain well-positioned to drive growth in 2019 and the years to come.”
Second Quarter Results
Revenue for the quarter was $2.88 billion, an increase of 0.5% from $2.87 billion in the second quarter of 2018. The increase in revenue was primarily due to acquisitions of 1.4% and organic growth of 1.7% (which includes the negative impact from PAMA of 0.9%), partially offset by the disposition of businesses of 1.9% and foreign currency translation of 0.7%.
Operating income for the quarter was $335.7 million, or 11.6% of revenue, compared to $369.2 million, or 12.9%, in the second quarter of 2018. The decrease in operating income and margin was primarily due to lower Medicare and Medicaid pricing as a result of PAMA, higher personnel costs, cybersecurity expenses, and higher special items from acquisition and disposition-related costs, partially offset by increased demand and LaunchPad savings. The Company recorded restructuring charges, special items, and amortization, which together totaled $111.2 million in the quarter, compared to $94.3 million during the same period in 2018. Adjusted operating income (excluding amortization, restructuring charges, and special items) for the quarter was $446.9 million,
The following information was filed by Laboratory Corp Of America Holdings (LH) on Thursday, July 25, 2019 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.