Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH) today announced results for the quarter ended June 30, 2010.
“We are very pleased with our second quarter and year-to-date results, which reflect our ability to increase revenue and EPS through challenging economic conditions”
Second Quarter Results
Net earnings were $153.7 million, compared to $136.4 million in the second quarter of 2009. Earnings per diluted share (EPS) were $1.46 compared to $1.24 in 2009. Earnings per diluted share, excluding restructuring and other special charges recorded in the second quarter of 2009 (Adjusted EPS) were $1.30.
Operating income for the second quarter was $270.5 million, or 21.8% of sales, compared to $244.7 million, or 20.6% of sales, in 2009. Operating income, excluding restructuring and other special charges recorded in the second quarter of 2009 (Adjusted Operating Income) was $254.9 million, or 21.4% of sales.
Revenues for the quarter were $1,238.4 million, an increase of 4.2%. Testing volume, measured by requisitions, decreased 2.0% and revenue per requisition increased 6.3%. Excluding the consolidation of the Company's Ontario, Canada joint venture, revenue increased 3.6%, testing volume decreased by 2.1% and revenue per requisition increased 5.8%. The continuing impact of two large government contracts terminated during 2009 reduced volume by 2.4% in the quarter. Excluding the impact from these lost contracts, volume increased 0.3% in the quarter.
Operating cash flow for the quarter was $216.2 million, which is net of $2.1 million in transition payments to UnitedHealthcare. The balance of cash at the end of the quarter was $103.8 million, and there was $30.0 million outstanding under the Company's $500.0 million revolving credit facility. During the quarter, the Company repurchased approximately $116.0 million of stock, representing approximately 1.5 million shares. As of June 30, 2010, approximately $100.1 million of repurchase authorization remained under the Company's approved share repurchase plan.
Year To Date Results
Net earnings were $286.4 million, compared to $269.2 million in the first half of 2009. Earnings per diluted share (EPS) were $2.70 compared to $2.46 in 2009. Adjusted EPS were $2.76 compared to $2.51 in 2009.
Operating income was $504.7, or 20.8% of sales, compared to $485.2 million, or 20.7% of sales, in the first half of 2009. Adjusted Operating Income was $514.0 million, or 21.1% of sales, compared to $495.4 million, or 21.1% of sales, in the first half of 2009.
Revenues were $2,432.0 million, an increase of 3.7% compared to the same period in 2009. Compared to the first half of 2009, testing volume, measured by accessions, decreased 2.5%, and revenue per accession increased 6.3%. Excluding the consolidation of the Company's Ontario, Canada joint venture, revenue increased 2.9%, with volume decreasing 2.7% and revenue per accession increasing 5.7%. The continuing impact of two large government contracts terminated during 2009 reduced volume by 2.4% in the first half of 2010. Excluding the impact from these lost contracts and a 0.7% negative impact from weather in the first quarter, volume increased 0.4% in the first half of 2010.
Operating cash flow for the first six months was $448.2 million, net of $16.6 million in transition payments to UnitedHealthcare.
"We are very pleased with our second quarter and year-to-date results, which reflect our ability to increase revenue and EPS through challenging economic conditions," said David P. King, Chairman and Chief Executive Officer. "We will continue to focus on growing our revenue, automating and optimizing our business to reduce costs and improve the customer experience, and advancing our leadership position in personalized medicine."
Outlook for 2010
The Company is updating its 2010 guidance, expecting revenue growth of approximately 4.5% - 5.5%, compared to previous guidance of 2.5% - 4.5%; Adjusted EPS in the range of $5.40 to $5.55, compared to prior guidance of $5.35 to $5.55, excluding the impact of any share repurchase activity after June 30, 2010; operating cash flow of approximately $870 million, excluding any transition payments to UnitedHealthcare; and capital expenditures of approximately $135 million.
Rice University bioengineers receive $1.4M to combat osteoarthritis