28 April 2014
- Revenue of
1,43 $ billion - Diluted EPS of
1,31 $ - Adjusted EPS Excluding Amortization of
1,51 $ , which includes an estimated0,22 $ impact from inclement weather - In spite of a significant negative impact from weather, 2014 Adjusted EPS Excluding Amortization guidance raised to
6,40 $ - 6,70 $
First Quarter Results
Net earnings were
Operating income for the quarter was
Revenues for the quarter were
Operating cash flow for the quarter was
The Company recorded restructuring and other special charges of
“We delivered a quarter with solid volume growth and strong earnings despite the greatest weather impact in our company’s history,” said
Outlook for 2014
The Company expects revenue growth of approximately 2%; Adjusted EPS Excluding Amortization of
Use of Adjusted Measures
The Company has provided in this press release and accompanying tables "adjusted" financial information that has not been prepared in accordance with GAAP, including Adjusted EPS, Adjusted EPS Excluding Amortization, Adjusted Operating Income, and Free Cash Flow. 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 in evaluating operating results and trends, and growth and shareholder returns, as well as in comparing the Company's financial results with the financial results of other companies. However, the Company notes that these adjusted measures may be different from and not directly comparable to the measures presented by 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 furnishing an 8-K that will include additional information on its business and operations. This information will also be available on the Company's website. Analysts and investors are directed to this 8-K and the website to review this supplemental information.
A conference call discussing LabCorp's quarterly results will be held today at
About LabCorp®
This press release contains forward-looking statements including with respect to estimated 2014 guidance and the impact of various factors on operating results. 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 payers. Actual results could differ materially from those suggested by these forward-looking statements. Further information on potential factors that could affect LabCorp’s operating and financial results is included in the Company’s Form 10-K for the year ended
| LABORATORY CORPORATION OF AMERICA HOLDINGS | ||||||||||
| Consolidated Statements of Operations | ||||||||||
| (in millions, except per share data) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2014 | 2013 | |||||||||
| Net sales | $ | 1 430,7 | $ | 1 440,9 | ||||||
| Cost of sales | 913,9 | 868,7 | ||||||||
| Selling, general and administrative | 284,9 | 283,2 | ||||||||
| Amortization of intangibles and other assets | 21 | 19,5 | ||||||||
| Restructuring and other special charges | 7,6 | 7,5 | ||||||||
| Operating income | 203,3 | 262 | ||||||||
| Other income (expense) | 6,9 | (0,6 | ) | |||||||
| Investment income | 0,2 | 0,2 | ||||||||
| Interest expense | (25,7 | ) | (24,5 | ) | ||||||
| Equity method income, net | 3 | 4,3 | ||||||||
| Earnings before income taxes | 187,7 | 241,4 | ||||||||
| Provision for income taxes | 74,2 | 93,8 | ||||||||
| Net earnings | 113,5 | 147,6 | ||||||||
| Less net earnings attributable to noncontrolling interest | (0,4 | ) | (0,4 | ) | ||||||
| Net earnings attributable to Laboratory Corporation of America Holdings | $ | 113,1 | $ | 147,2 | ||||||
Adjusted Operating Income | ||||||||||
| Operating Income | $ | 203,3 | $ | 262 | ||||||
| Restructuring and other special charges | 7,6 | 7,5 | ||||||||
| Adjusted operating income | $ | 210,9 | $ | 269,5 | ||||||
Adjusted EPS Excluding Amortization | ||||||||||
| Diluted earnings per common share | $ | 1,31 | $ | 1,56 | ||||||
| Impact of restructuring and other special charges | 0,05 | 0,05 | ||||||||
| Amortization expense | 0,15 | 0,13 | ||||||||
| Adjusted EPS Excluding Amortization | $ | 1,51 | $ | 1,74 | ||||||
| Weighted average shares outstanding | 86,6 | 94,5 | ||||||||
| LABORATORY CORPORATION OF AMERICA HOLDINGS | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (in millions, except per share data) | ||||||||||
| March 31, | December 31, | |||||||||
| 2014 | 2013 | |||||||||
| Cash and short term investments | $ | 338,9 | $ | 404 | ||||||
| Accounts receivable, net | 822 | 784,7 | ||||||||
| Property, plant and equipment | 733,1 | 707,4 | ||||||||
| Intangible assets and goodwill, net | 4 605,5 | 4 594,8 | ||||||||
| Investments in joint venture partnerships | 87,3 | 88,5 | ||||||||
| Other assets | 405,6 | 386,5 | ||||||||
| $ | 6 992,4 | $ | 6 965,9 | |||||||
| Zero-coupon subordinated notes | $ | 104,5 | $ | 110,8 | ||||||
| Senior notes | 2 886,2 | 2 875 | ||||||||
| Credit facility | - | - | ||||||||
| Other liabilities | 1 481,8 | 1 469,4 | ||||||||
| Noncontrolling interest | 18,6 | 19,4 | ||||||||
| Shareholders' equity | 2 501,3 | 2 491,3 | ||||||||
| $ | 6 992,4 | $ | 6 965,9 | |||||||
| Consolidated Statement of Cash Flow Data | ||||||||||
| (in millions, except per share data) | ||||||||||
| For the Three Months Ended | ||||||||||
| March 31, | March 31, | |||||||||
| 2014 | 2013 | |||||||||
| Net cash provided by operating activities | $ | 142,3 | $ | 198,2 | ||||||
| Net cash used for investing activities | (108,1 | ) | (61,5 | ) | ||||||
| Net cash used for financing activities | (98 | ) | (412,8 | ) | ||||||
| Effect of exchange rates on cash | (1,3 | ) | (4,9 | ) | ||||||
| Net decrease in cash | (65,1 | ) | (281 | ) | ||||||
| Cash at beginning of period | 404 | 466,8 | ||||||||
| Cash at end of period | $ | 338,9 | $ | 185,8 | ||||||
Free Cash Flow: | ||||||||||
| Net cash provided by operating activities | $ | 142,3 | $ | 198,2 | ||||||
| Less: Capital expenditures | (56,5 | ) | (41,7 | ) | ||||||
| Free cash flow | $ | 85,8 | $ | 156,5 | ||||||
Notes to Financial Tables | |
| 1) | During the first quarter of 2014, the Company recorded net restructuring and other special charges of 7,6 $ million. The charges included 2,8 $ million in severance and other personnel costs along with 4,9 $ million in costs associated with facility closures and general integration initiatives. The Company reversed previously established reserves of 0,1 $ million in unused severance. The after tax impact of these charges decreased net earnings for the quarter ended March 31, 2014, by 4,7 $ million and diluted earnings per share by 0,05 $ (4,7 $ million divided by 86,6 million shares). |
| 2) | During the first quarter of 2013, the Company recorded net restructuring and other special charges of 7,5 $ million. The charges included 7,6 $ million in severance and other personnel costs along with 1,8 $ million in costs associated with facility closures and general integration initiatives. The Company reversed previously established reserves of 0,6 $ million in unused severance and 1,3 $ million in unused facility-related costs. The after tax impact of these charges decreased net earnings for the quarter ended March 31, 2013, by 4,7 $ million and diluted earnings per share by 0,05 $ (4,7 $ million divided by 94,5 million shares). |
| 3) | The Company continues to grow the business through acquisitions and uses Adjusted EPS Excluding Amortization as a measure of operational performance, growth and shareholder returns. The Company believes adjusting EPS for amortization provides investors with better insight into the operating performance of the business. For the quarters ended March 31, 2014 and 2013, intangible amortization was 21,0 $ million and 19,5 $ million, respectively (12,9 $ million and 12,0 $ million net of tax, respectively) and decreased EPS by 0,15 $ (12,9 $ million divided by 86,6 million shares) and 0,13 $ (12,0 $ million divided by 94,5 million shares), respectively. |
Source:
Laboratory Corporation of America® Holdings
Stephen Anderson, 336-436-5076
[emailprotected]
