Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH) today announced results for the quarter ended September 30, 2009.
Third Quarter Results
Net earnings were $131.4 million, compared to $111.9 million in the third quarter of 2008. Earnings per diluted share (EPS) were $1.21 compared to $1.00 in 2008. Earnings per diluted share, excluding restructuring and other special charges recorded in both periods (Adjusted EPS) were $1.22, compared to $1.10 in 2008.
Operating income was $234.9 million. Operating income, excluding restructuring and other special charges recorded in both periods (Adjusted Operating Income) was $237.6, or 20.0% of net sales, compared to $219.9, or 19.4% of net sales in the third quarter of 2008.
Revenues were $1,185.1 million, an increase of 4.4% compared to the same period in 2008. Compared to the third quarter of 2008, testing volume, measured by accessions, increased 0.7%, and revenue per accession increased 3.7%. Excluding the consolidation of the Company’s Ontario, Canada joint venture, revenue increased 4.3%, all driven by revenue per accession.
Operating cash flow for the quarter was $246.4 million, net of $5.9 million in transition payments to UnitedHealthcare. The balance of cash at the end of the quarter was $126.8 million, and there was $70.8 million outstanding under the Company’s $500 million revolving credit facility. During the quarter, the Company repurchased $165.1 million of stock, representing approximately 2.4 million shares. As of September 30, 2009, approximately $180.2 million of repurchase authorization remained under the Company’s approved share repurchase plan.
The Company recorded special charges of $2.7 million during the third quarter of 2009, representing the Company’s fees and expenses associated with its acquisition of Monogram Biosciences. The Company recorded pre-tax restructuring and other special charges of $17.7 million during the third quarter of 2008, primarily related to the closing of redundant and underutilized facilities.
Year To Date Results