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LH · Labcorp Holdings

50 filings

10-Q

LH 10-Q Quarterly Reports

Labcorp Holdings - 50 quarterly reports

Filing record · 2016–202610-K1310-Q338-K382

LH filed 13 annual reports (10-K), 33 quarterly reports (10-Q) and 382 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Apr ’17Apr ’17
  2. Leadership change8-K · Jun ’19Jun ’19
  3. Material agreement8-K · May ’21May ’21
  4. Leadership change8-K · Dec ’25Dec ’25
  1. 2026-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2026

    Labcorp Holdings Inc. reported third-quarter 2026 revenues of $3.81 billion, up 6.9% from $3.56 billion a year earlier, with organic revenue growth of 5.5% and acquisitions contributing 1.5%. Operating income rose 1.4% to $402.1 million, and net earnings attributable to Labcorp Holdings Inc. were $262.8 million, or $3.22 per diluted share, compared with $261.1 million, or $3.12 per diluted share, a year earlier. Nine-month revenues were $11.08 billion, up 6.2%, with net earnings attributable to the company of $839.3 million, or $10.22 per diluted share, versus $8.48 per diluted share in the prior-year period. Segment operating margins expanded in both Diagnostics Laboratories and Biopharma Laboratory Services, though general corporate and unallocated expenses rose to $153.9 million for the quarter from $110.6 million, citing higher LaunchPad costs and acquisition and disposition-related costs. Cash generation and capital deployment were significant over the nine months. Net cash provided by operating activities was $1.20 billion, up from $1.03 billion, while the company spent $404.2 million on capital expenditures and $683.4 million on business acquisitions, net of cash acquired. The company repurchased $451.8 million of common stock, paid $178.1 million in dividends, and took out a $750.0 million 2026 Term Loan due 2028. Cash and cash equivalents fell to $261.8 million at September 30, 2026, while the board authorized an additional $1.00 billion of repurchases on July 8, 2026, leaving $1,378.6 million available. Total debt-related commitments and the company's own acquisition pipeline also stand out, including agreements announced in October 2026 to acquire assets of BioReference Health's laboratory business for up to $872.0 million, Myriad Genetics' Prenatal Health testing business for approximately $210.0 million plus inventory, and Millennium Health for up to $375.0 million. The filing reports that the company was in compliance with its debt covenants at September 30, 2026. Management stated it believes it has sufficient liquidity for the next 12 months, and it expects to refinance its $600.0 million 3.60% senior notes due September 1, 2027, at likely higher interest rates. Legal matters include the AMCA data security class action, which received final court approval on August 20, 2026, and the Ravgen patent case, with oral argument before the Federal Circuit scheduled for December 15, 2026.

    Oct 30, 2026
  2. 2026-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2026

    Labcorp Holdings Inc. (LH) reported revenues of $3,731.1 million for the three months ended June 30, 2026, up from $3,527.3 million a year earlier, and $7,268.7 million for the six months, up from $6,872.4 million. The quarter's revenue increase of 5.8% was attributed to organic revenue of 4.2%, acquisitions net of divestitures of 1.2%, and favorable foreign currency translation of 0.4%. Operating income rose to $451.6 million from $394.5 million, and net earnings attributable to Labcorp Holdings Inc. were $298.7 million, or $3.64 per diluted share, versus $2.84 a year earlier. Dx and BLS contributed approximately 78% and 22% of revenues, respectively. Cash flow and capital allocation were central to the period. Net cash provided by operating activities was $637.0 million for the six months, roughly flat with $639.1 million a year earlier. The company acquired businesses for $427.9 million net of cash acquired, spent $252.6 million on capital expenditures, and repurchased $451.8 million of common stock. Cash and cash equivalents fell to $141.8 million at June 30, 2026, while long-term debt increased to $5,857.6 million, reflecting a new $750.0 million 2026 Term Loan used to redeem the 1.55% senior notes due 2026. After the period end, the Board authorized an additional $1,000.0 million repurchase, bringing total authorization to $1,378.6 million, and declared a $0.72 per share dividend payable September 11, 2026. The filing also reports that the Texas Supreme Court reinstated a District Court judgment in the company's favor in the Texas Medicaid qui tam matter on June 19, 2026, and that the company settled a DOJ urine drug testing subpoena on July 15, 2026. The Ravgen patent judgment remains under appeal, and the AMCA-related class action is subject to court approval of a settlement.

    Aug 5, 2026
  3. 2026-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2026

    Labcorp Holdings Inc. (LH) reported revenues of $3,537.6 million for the three months ended March 31, 2026, up from $3,345.1 million a year earlier, and net earnings attributable to Labcorp Holdings Inc. of $277.8 million versus $212.8 million. Diluted EPS was $3.35 compared with $2.52. Operating income rose to $380.8 million from $326.0 million, and the company attributed the revenue increase to organic revenue growth of 3.1%, acquisitions net of divestitures of 1.4%, and favorable foreign currency translation of 1.3%. Diagnostics Laboratories (Dx) revenues were $2,762.1 million, up 5.0%, and Biopharma Laboratory Services (BLS) revenues were $780.6 million, up 8.2%. Cash flow improved markedly. Net cash provided by operating activities was $191.5 million versus $18.5 million in the prior-year quarter, which the company attributed primarily to higher cash earnings. Cash and cash equivalents rose to $981.1 million from $532.3 million at December 31, 2025. Long-term debt increased to $5,833.7 million from $5,084.6 million, driven by a new $750.0 million 2026 Term Loan entered on March 20, 2026, which the company anticipates using to repay maturing short-term debt. The company also repurchased 0.4 million shares for $98.0 million and paid $61.2 million in dividends during the quarter. The company stated it was in compliance with its debt covenants at March 31, 2026, and believes it has sufficient liquidity for the next 12 months. Pending matters include the Parkview Health System outreach laboratory asset acquisition, expected at up to $165.0 million and anticipated to close in 2026, and several legal matters, including a Texas Medicaid qui tam case and a Ravgen patent judgment under appeal, which the company says it will vigorously defend.

    May 4, 2026
  4. 2025-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2025

    Labcorp Holdings Inc. reported third-quarter 2025 revenues of $3,563.5 million, up from $3,282.0 million in the prior-year quarter, and net earnings attributable to Labcorp Holdings Inc. of $261.1 million, compared with $169.3 million a year earlier. Diluted earnings per share were $3.12, versus $2.00. For the nine months ended September 30, 2025, revenues were $10,435.9 million and diluted EPS was $8.48. The filing attributes the quarterly revenue increase of 8.6% to organic revenue growth of 6.2%, acquisitions net of divestitures of 1.7%, and favorable foreign currency translation of 0.7%. Operating income rose to $396.6 million from $254.1 million, aided by lower general corporate and unallocated expenses, which fell to $109.9 million from $172.5 million. Cash generation was steady, with operating cash flow of $1,026.3 million for the nine months versus $808.6 million a year earlier. Cash and cash equivalents declined to $598.1 million from $1,518.7 million at December 31, 2024, as the company repaid $1,000.0 million of senior notes, paid $225.0 million for share repurchases and $181.4 million in dividends, and spent $324.0 million on acquisitions and $179.9 million on equity affiliate investments. Total debt on the balance sheet was roughly $5.58 billion, and the company reported $1,000.0 million of available borrowings under its revolver. The filing also points to pending transactions: an agreement to acquire select outreach assets from Community Health Systems for approximately $195.0 million, expected to close in the fourth quarter of 2025, and an agreement to acquire select clinical laboratory assets from Empire City Laboratories for up to $250.0 million, expected to close in the first quarter of 2026. Management disclosed the One Big Beautiful Bill Act, which could reduce insurance coverage and diagnostic testing utilization, but stated it does not expect a material impact on results of operations in future periods.

    Oct 31, 2025
  5. 2025-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2025

    Labcorp Holdings Inc. (LH) reported second-quarter 2025 revenues of $3.53 billion, up from $3.22 billion a year earlier, with organic revenue growth of 5.4% and acquisitions contributing 3.5%. Operating income rose to $394.5 million from $294.8 million, and net earnings attributable to Labcorp Holdings Inc. were $237.9 million, or $2.84 diluted EPS, versus $205.3 million, or $2.43, in the prior-year quarter. Diagnostics Laboratories (Dx) generated about 78% of revenues and Biopharma Laboratory Services (BLS) about 22%. Dx segment operating income was $482.8 million, and BLS segment operating income was $123.3 million. For the six months ended June 30, 2025, revenues were $6.87 billion, up 7.4%, and net cash provided by operating activities was $639.1 million, compared with $531.3 million a year earlier. The company repaid $1.0 billion of 3.60% senior notes due 2025 and used $200.0 million to repurchase common stock. Cash and cash equivalents fell to $647.3 million from $1.52 billion at December 31, 2024, while long-term debt was $5.08 billion. Other, net expense of $32.7 million in the quarter reflected investment losses of $31.3 million, and the company also entered an equity method investment in SYNLAB. The filing also discloses pending acquisitions of select assets of BioReference Health's oncology lab business (up to $225.0 million) and select outreach assets of Community Health Systems (approximately $195.0 million), expected to close in the second half of 2025 and fourth quarter of 2025, respectively. Legal matters disclosed include a Ravgen patent judgment under appeal and a Texas Medicaid qui tam action. The company reported that it was in compliance with its debt covenants and expects to remain so for the next 12 months.

    Aug 1, 2025
  6. 2025-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2025

    Labcorp Holdings Inc. (LH) reported first-quarter 2025 revenues of $3,345.1 million, up from $3,176.6 million a year earlier, with the filing attributing the increase to acquisitions, net of divestitures, of 3.7% and organic revenue growth of 2.1%, partly offset by unfavorable foreign currency translation of 0.5%. Operating income rose to $326.0 million from $321.3 million, while net earnings attributable to Labcorp Holdings Inc. declined to $212.8 million from $228.0 million, and diluted EPS was $2.52 versus $2.69. Interest expense increased to $56.0 million from $46.9 million, reflecting higher average debt outstanding, and Other, net fell to a $(1.0) million expense from $20.0 million, primarily due to lower transition services fees charged to Fortrea. Liquidity was reshaped during the quarter. Cash and cash equivalents fell to $369.4 million from $1,518.7 million at year-end 2024 after the company repaid $1,000.0 million of 3.60% senior notes due 2025 and invested $157.0 million in equity affiliates, including the SYNLAB minority interest. Operating cash flow improved to $18.5 million from a $(29.8) million outflow, which the filing attributes primarily to timing of working capital requirements. Long-term debt rose to $5,568.7 million, partly due to an increase in the accounts receivable facility balance to $525.0 million, and the company amended its AR facility to allow borrowings up to $700.0 million. The company had $1,000.0 million of undrawn revolving credit facility capacity at quarter end. The filing also details ongoing legal matters, including the Ravgen patent case (with a jury damages award of $272.0 million from 2022 and subsequent orders), the AMCA data security multidistrict litigation, and a Texas Medicaid qui tam action. The company states it will vigorously defend these matters and that it does not believe they will have a material adverse effect on its financial statements, though the Ravgen matter's outcome is disclosed as uncertain pending appeal.

    Apr 29, 2025
  7. 2024-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2024

    Labcorp Holdings Inc. (LH) reported third-quarter 2024 revenues of $3,282.0 million, up 7.4% from $3,056.8 million a year earlier, and nine-month revenues of $9,679.5 million, up 6.0%. Net earnings attributable to Labcorp Holdings Inc. were $169.3 million for the quarter, versus $183.3 million in the prior-year period, and diluted EPS from continuing operations was $2.00 versus $2.11. For the nine months, diluted EPS was $7.13 compared with $6.19 from continuing operations a year earlier. Growth was driven by organic revenue of 4.2% in the quarter and acquisitions, net of divestitures, of 3.1%. Management attributed the margin pressure in the quarter to higher personnel costs and the Invitae transaction, and Dx segment operating margin fell to 15.2% from 16.5%. Cash flow and balance sheet activity were significant during the period. Operating cash flow from continuing operations was $808.6 million for the nine months, up from $622.7 million, while capital expenditures rose to $377.8 million and acquisitions totaled $751.2 million. Labcorp issued $2,000.0 million of senior notes due 2030, 2032 and 2034 and used the proceeds to redeem or repay the 2.30% notes due 2024, the 3.60% notes due 2025 and $350.0 million of revolver borrowings. Total debt rose, with long-term debt at $5,352.1 million at September 30, 2024, compared with $4,054.7 million at December 31, 2023. Cash and cash equivalents increased to $1,517.3 million from $536.8 million. The filing also notes ongoing litigation, including a Ravgen patent verdict and several privacy and employment class actions, which the company says it will vigorously defend. It describes an agreement to acquire a 15% minority interest in SYNLAB for approximately $155.9 million, expected to close in early 2025. The board authorized a new $1,000.0 million share repurchase plan on July 24, 2024, leaving $1,355.4 million available as of September 30, 2024.

    Oct 29, 2024
  8. 2024-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2024

    Labcorp Holdings Inc. (LH) reported its second-quarter 2024 Form 10-Q, filed as the company's first quarterly report after its May 17, 2024 holding company reorganization in which Labcorp Holdings Inc. became successor issuer to Laboratory Corporation of America Holdings (LCAH). Revenues for the three months ended June 30, 2024 were $3,220.9 million, up 6.2% from $3,033.7 million, with organic revenue growth of 3.8% and acquisitions, net of divestitures, contributing 2.5%. Net earnings attributable to Labcorp Holdings Inc. were $205.3 million, or $2.43 per diluted share, compared with $188.9 million in the prior-year quarter, which included discontinued operations from Fortrea. For the six months, revenues were $6,397.5 million, up 5.4%, and diluted EPS from continuing operations was $5.13 versus $4.08. Operating income for the quarter rose to $294.8 million from $266.3 million, while the Dx segment operating margin held at 17.5% and BLS segment operating margin improved to 15.2% from 15.0%. Cash and cash equivalents fell to $265.1 million at June 30, 2024, and short-term borrowings and the current portion of long-term debt rose to $2,019.5 million, largely due to $1,000.0 million of 3.60% senior notes due 2025 now classified as current. Management said it anticipates refinancing the $2,000.0 million of debt coming due within the next 12 months. The company repurchased 0.5 million shares for $100.0 million during the six months, and on July 24, 2024 its board authorized a new $1,000.0 million repurchase plan, bringing total authorization to $1,430.4 million. Pending acquisitions include selected assets of BioReference Health for $237.5 million and Invitae assets for $239.0 million, both expected to close in the third quarter of 2024 or on August 5, 2024. The filing also discloses ongoing litigation, including the Ravgen patent case in which damages were awarded, and new FDA rules on laboratory-developed tests that the company says present increased enforcement risk.

    Aug 2, 2024
  9. 2024-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2024

    Laboratory Corporation of America Holdings (Labcorp) reported first-quarter 2024 revenues of $3,176.6 million, up 4.6% from $3,037.8 million a year earlier, with organic revenue growth of 2.3%, acquisitions contributing 1.8%, and favorable foreign currency translation adding 0.5%. Operating income was $321.3 million, down from $329.8 million, as higher selling, general and administrative expenses ($508.4 million, up from $457.2 million) offset revenue gains. Net earnings attributable to the company were $228.0 million, or $2.69 per diluted share, compared with $212.9 million, or $2.39 per diluted share, in the prior-year quarter. Diagnostics (Dx) operating margin fell to 16.9% from 18.5%, reflecting lower COVID-19 testing, adverse weather and lab management agreement mix, while Biopharma Laboratory Services (BLS) operating margin improved to 14.1% from 11.1%. Cash position weakened sharply: operating cash flow from continuing operations was negative $29.8 million, capital expenditures were $133.8 million, and acquisitions cost $259.2 million, leaving cash and cash equivalents at $99.3 million at March 31, 2024. Total debt classified as short-term borrowings and current portion of long-term debt rose to $2,041.5 million, and the company stated it expects to refinance $2,000.0 million of debt coming due in the next 12 months. The company also disclosed a pending purchase of select Invitae assets for $239.0 million, a planned holding company reorganization under the name Labcorp Holdings Inc. effective May 17, 2024 (trading under the existing symbol "LH"), and continued litigation exposure, including a Ravgen patent verdict and several privacy and labor class actions.

    Apr 30, 2024
  10. 2023-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2023

    Laboratory Corporation of America Holdings (Labcorp) reported revenues of $3,056.8 million for the third quarter of 2023, up 6.6% from $2,866.8 million a year earlier, and $9,128.3 million for the nine months, up 2.2%. Operating income fell to $252.3 million in the quarter from $374.0 million, and to $848.4 million for the nine months from $1,408.0 million. Net earnings attributable to the company were $183.3 million for the quarter versus $352.8 million in the prior-year quarter, and $585.1 million for the nine months versus $1,203.0 million. Continuing-operations diluted EPS was $2.11 for the quarter and $6.19 for the nine months. The decline was attributed mainly to lower COVID-19 Testing revenue, the Ascension lab management agreement, higher personnel costs, and spin-related costs. The quarter followed the June 30, 2023 spin-off of Fortrea Holdings Inc., which is now presented as discontinued operations. Fortrea issued $570.0 million of 7.500% senior secured notes and entered into $1,520.0 million of SOFR credit facilities, and made a cash distribution of approximately $1,600.0 million to the company. The company used $1,000.0 million of those proceeds for accelerated share repurchase agreements entered August 8, 2023, and intends to repay about $300.0 million of debt maturing this year. Shareholders' equity fell to $7,873.1 million at September 30, 2023, from $10,096.6 million at December 31, 2022, reflecting the spin-off and buybacks, and cash and cash equivalents rose to $727.9 million. Cash provided by continuing operating activities was $622.7 million for the nine months, down from $1,157.6 million. Management stated that liquidity is sufficient for the next twelve months, with $910.0 million of available revolver borrowings at quarter-end. The company also agreed on October 4, 2023 to acquire the outreach laboratory business and select operating assets of Baystate Health for $151.1 million in cash. Legal matters disclosed include a Ravgen patent judgment with $100.0 million of enhanced damages and a Texas Medicaid qui tam action, and the company states it will vigorously defend these cases.

    Oct 30, 2023
  11. 2023-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2023

    Laboratory Corporation of America Holdings (Labcorp) reported second-quarter 2023 results in this Form 10-Q, a quarter dominated by the June 30, 2023 spin-off of Fortrea Holdings Inc. Fortrea's operations are presented as discontinued operations, so continuing-operations figures are the focus. Revenues for the three months ended June 30, 2023 were $3,033.7 million, up 3.8% from $2,923.0 million, driven by organic growth of 2.0% and acquisitions of 1.6%. Operating income fell to $266.3 million from $428.8 million, and net earnings attributable to the company were $188.9 million versus $358.6 million a year earlier. Results were pressured by a 7.8% decline in COVID-19 Testing revenue, higher cost of revenues (72.2% of revenues versus 67.8%), and $177.9 million of general corporate and unallocated expenses, which included spin-off transaction costs. At June 30, 2023, cash and cash equivalents were $1,930.6 million, and long-term debt was $5,042.4 million. The company states that the Fortrea separation generated approximately $1,600.0 million in cash payments to Labcorp. Management intends to use these proceeds toward a $1,000.0 million accelerated share repurchase program and to repay $300.0 million of debt maturing this year, with remaining funds to be returned to shareholders through future repurchases and/or dividends. Total shareholders' equity fell to $8,785.0 million from $10,096.6 million, reflecting the $1,780.1 million reduction from the spin-off. During the quarter the company closed or agreed to several acquisitions, including Legacy Health's outreach laboratory assets, Enzo Biochem's assets, and a Tufts Medicine outreach laboratory agreement, with a combined purchase price of approximately $385.0 million. The filing also discloses ongoing litigation, including the Ravgen patent case with a $100.0 million enhanced damages award and multiple class actions, and it reports that the company does not expect them to be material beyond those disclosed.

    Aug 4, 2023
  12. 2023-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2023

    Laboratory Corporation of America Holdings (Labcorp) reported first-quarter 2023 revenues of $3,777.9 million, down 3.1% from $3,899.6 million a year earlier, as organic revenue fell 3.6% on an 11.6% decline in COVID-19 testing that was partially offset by a 7.9% increase in the Base Business. Net earnings attributable to the company fell to $212.9 million from $491.6 million, and diluted EPS was $2.39 versus $5.23. Operating income declined to $341.0 million from $687.9 million, driven mainly by lower Dx segment profitability tied to COVID-19 testing, higher cost of revenues, and higher general corporate expenses of $144.3 million that include spin-off transaction costs. Cash flow from operations was $121.2 million compared with $356.0 million a year earlier, and cash and equivalents ended the quarter at $393.9 million. The company is pursuing a tax-free spin-off of its Clinical Development and Commercialization Services business, which will become Fortrea, with completion targeted for mid-2023. Following the spin-off, the remaining company will be Labcorp, comprising routine and esoteric labs, central labs and early development research labs. Subsequent to quarter end, the company entered agreements on May 3, 2023 for a comprehensive strategic relationship with Jefferson Health, expected to close by mid-year 2023. The company also declared a second-quarter dividend of $0.72 per share, or approximately $64.7 million in aggregate. The filing discloses ongoing litigation and government inquiries, including a Ravgen patent verdict with damages of $272.0 million plus a request for enhanced damages of up to $817.0 million, which the company strongly disagrees with and will appeal. The company also disclosed a Medicare billing civil investigative demand from the Department of Justice received in April 2023. Management believes the company has sufficient liquidity over the next twelve months, with $1,000.0 million of available borrowings under its revolving credit facility at quarter end.

    May 4, 2023
  13. 2022-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2022

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported a sharp decline in third-quarter 2022 results. Revenues for the three months ended September 30, 2022 were $3,606.1 million, down 11.2% from $4,062.6 million a year earlier, and net earnings attributable to the company were $352.8 million, versus $587.3 million. Diluted earnings per share were $3.90, compared with $6.05. For the nine months, revenues were $11,202.6 million, down 7.1%, and diluted EPS was $13.02, compared with $18.63. The filing attributes the decline mainly to lower COVID-19 PCR and antibody testing, which fell 11.8% in organic revenue for the quarter, partially offset by growth in the organic Base Business of 1.1%. Dx operating margin fell to 17.2% from 27.6%, while DD operating margin rose to 11.1% from 9.7%. Cash generation weakened and capital deployment continued. Operating cash flow for the nine months was $1,302.3 million, versus $2,412.1 million, and cash and cash equivalents ended the period at $409.9 million. The company spent $1,013.6 million on acquisitions, mainly to strengthen its liquid biopsy capabilities, and repurchased $800.0 million of common stock. Total long-term debt was $5,334.3 million, and $1,000.0 million was available under the revolving credit facility. The board authorized a planned spin-off of the Clinical Development business, which is part of the DD segment, with completion targeted for mid-2023 and intended to be tax-free to shareholders. The filing also discloses a $272 million jury verdict in the Ravgen patent case, with plaintiff seeking enhanced damages of up to $817 million, which the company strongly disputes.

    Nov 1, 2022
  14. 2022-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2022

    Laboratory Corporation of America Holdings (Labcorp) reported a weaker second quarter and first half of 2022. Revenues for the three months ended June 30, 2022 were $3,696.9 million, a decrease of 3.7% from $3,840.7 million a year earlier, driven by lower COVID-19 Testing, with organic Base Business growth of 1.4% partly offsetting that decline. Net earnings attributable to the company were $358.6 million, or $3.87 diluted EPS, versus $467.4 million and $4.76 in the prior-year quarter. Dx operating margin fell to 20.2% from 25.5%, while DD operating margin rose to 10.4% from 9.9%. For the six months, revenues were $7,596.5 million, down 5.1%, and operating cash flow declined to $928.5 million from $1,644.8 million. Balance sheet and capital returns remained substantial. Cash and cash equivalents were $1,068.8 million at June 30, 2022, and the company had $1,000.0 million of undrawn availability under its revolving credit facility. Total long-term debt was $5,360.3 million. During the first half, the company spent $554.9 million on acquisitions, mainly to complement its liquid biopsy capabilities, and paid $400.0 million for share repurchases and $66.7 million in dividends. Repurchase authorization remaining was $1,231.5 million. On July 28, 2022, the board authorized pursuit of a spin-off of the Clinical Development business, part of the DD segment, which would create two independent public companies. The filing targets completion in the second half of 2023 and notes there is no assurance the spin-off will be completed. Legal matters include a False Claims Act suit scheduled for trial beginning January 9, 2023, and multiple data-security and wage-and-hour class actions, which the company says it will vigorously defend.

    Aug 1, 2022
  15. 2022-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2022

    Laboratory Corporation of America Holdings (Labcorp) reported first-quarter 2022 revenues of $3,899.6 million, a decrease of 6.3% from $4,161.5 million in the prior-year quarter, driven by lower COVID-19 PCR and antibody testing (COVID-19 Testing) partially offset by growth in the Base Business. Operating income fell to $687.9 million from $1,057.9 million, and net earnings attributable to the company were $491.6 million, or $5.23 per diluted share, versus $769.6 million, or $7.82 per diluted share, a year earlier. Dx operating margin declined to 25.4% from 34.4%, while DD operating margin was 8.5% versus 10.9%. Management attributed the margin pressure mainly to the reduction in COVID-19 Testing, higher personnel expense, and inflationary costs. Cash flow from operations was $356.0 million, compared with $1,157.6 million in the prior-year period, reflecting lower cash earnings and higher working capital needs. The company spent $455.1 million on the acquisition of Personal Genome Diagnostics Inc. (PGDx) and $117.2 million on capital expenditures. Cash and cash equivalents stood at $1,233.5 million at March 31, 2022, and the $1,000.0 million revolving credit facility was undrawn. The company completed a $1,000.0 million accelerated share repurchase, announced a quarterly dividend of $0.72 per share payable June 9, 2022 (about $67.6 million in aggregate), and has $1,631.5 million remaining under its repurchase authorization. The filing also highlights the February 2022 agreements with Ascension to manage its hospital-based laboratories and acquire select outreach laboratory assets, and the March 2022 strategic laboratory relationship with Prisma Health. Several legal matters remain pending, including the NPT Associates False Claims Act lawsuit, the Lutz qui tam case, and the AMCA data-security incident litigation, which the company says it will vigorously defend and which it does not believe will have a material adverse effect on financial condition.

    Apr 29, 2022
  16. 2021-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2021

    Laboratory Corporation of America Holdings (Labcorp) reported strong results for the nine months ended September 30, 2021, with revenues of $12,064.8 million, up from $9,488.7 million a year earlier, driven by organic growth of 25.2% (including a 7.0% contribution from COVID-19 Testing) and acquisitions. Operating income rose to $2,528.9 million from $1,152.2 million, which in the prior year had been depressed by $460.9 million of goodwill and other asset impairments. Net earnings attributable to the company were $1,824.3 million, or $18.63 per diluted share, versus $617.8 million or $6.31 per diluted share a year earlier. Diluted EPS for the third quarter was $6.05, against $7.17 in the same quarter of 2020, as Dx operating income fell with lower COVID-19 Testing volumes. The Diagnostics (Dx) segment generated 64% of revenues and the Drug Development (DD) segment 36%. Cash flow from operations was $2,412.1 million for the nine months, compared with $1,360.7 million in 2020. The company repurchased $668.5 million of common stock during the period and had $131.5 million remaining under its repurchase authorization. Total debt on the balance sheet was $5,417.2 million of long-term debt at quarter end, after issuing $1,000.0 million of senior notes in May 2021 and using the proceeds to redeem 2022 notes. The filing states that the board, with Goldman Sachs & Co. LLC as financial advisor, is reviewing the company's structure and capital allocation strategy, with an update expected in the fourth quarter. The filing notes that there can be no assurance the review will enhance shareholder value or lead to structural changes. Legal matters include a False Claims Act lawsuit (NPT Associates), a Texas Medicaid qui tam petition, and multiple class actions tied to the AMCA data security incident, none of which the company believes will have a material adverse effect on its financial condition.

    Nov 2, 2021
  17. 2021-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2021

    Laboratory Corporation of America Holdings (Labcorp) reported strong second-quarter 2021 results, with revenues of $3,840.7 million for the three months ended June 30, 2021, up 38.7% from $2,768.8 million a year earlier, and net earnings attributable to the company of $467.4 million, or $4.76 diluted earnings per share, versus $231.6 million and $2.37 in the prior-year quarter. For the six months, revenues were $8,002.2 million, up 43.1%, driven by organic growth of 40.3%, which included a 23.8% contribution from COVID-19 Testing and a 16.6% increase in the Base Business. Diagnostics (Dx) generated 61% of second-quarter revenues and posted an operating margin of 25.5%, while Drug Development (DD) operating income rose to $147.3 million. Balance sheet and cash flow strengthened meaningfully. Cash and cash equivalents rose to $1,963.2 million from $1,320.8 million at December 31, 2020, and operating cash flow for the six months was $1,644.8 million versus $574.5 million a year earlier. The company issued $1.0 billion of senior notes in May 2021 and used the proceeds, along with cash on hand, to redeem its 3.20% notes due 2022 and 3.75% notes due 2022. It also repaid the $375.0 million 2019 Term Loan, repurchased $368.5 million of common stock in the six-month period, and retained $431.5 million of repurchase authorization. Management stated that its board and management have been reviewing the company's structure and capital allocation strategy with the assistance of Goldman Sachs & Co. LLC, with no assurance of outcome or timing, and expects to provide an update in the fourth quarter. The filing also discloses ongoing legal matters, including False Claims Act lawsuits, Texas Medicaid qui tam litigation, and multiple wage-and-hour class actions, which management says it will vigorously defend and does not believe will have a material adverse effect on financial condition.

    Aug 5, 2021
  18. 2021-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2021

    Laboratory Corporation of America Holdings (Labcorp) reported first-quarter 2021 revenues of $4,161.5 million, up 47.4% from $2,823.8 million a year earlier, driven by organic growth of 45.1% (including a 32.9% contribution from COVID-19 Testing and a 12.2% increase in the Base Business). Net earnings attributable to the company were $769.6 million, or $7.82 per diluted share, compared with a loss of $317.2 million in the prior-year quarter, which included $437.4 million of goodwill and other asset impairments. Operating income was $1,057.9 million versus an operating loss of $192.6 million, with Dx operating margin at 34.4% and DD operating margin at 10.9%. Balance sheet and cash flow strengthened meaningfully. Cash and cash equivalents rose to $1,890.8 million, and operating cash flow was $1,157.6 million versus $203.8 million a year earlier. The company fully repaid the remaining $375.0 million 2019 Term Loan in February 2021 and amended its revolving credit facility on April 30, 2021, to $1,000.0 million with a 2026 maturity. Shareholders' equity increased to $10,021.5 million, and the company repurchased 0.3 million shares for about $68.5 million during the quarter, with $731.5 million remaining under its authorization. Management stated that the board and management believe the company's value is not appropriately reflected in its stock price, and in March 2021 they began a review of the company's structure and capital allocation strategy with Goldman Sachs & Co. LLC as financial advisor. The filing states there can be no assurance the review will enhance shareholder value or result in changes, and it warns that speculation about the review may disrupt the business. Subsequent to quarter end, the company agreed on May 3, 2021 to acquire select operating assets and intellectual property from Myriad Genetics' autoimmune business unit, including the Vectra RA assay, for $150.0 million.

    May 4, 2021
  19. 2020-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2020

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported a sharp rebound in its third-quarter 2020 results, driven by COVID-19 testing. Revenues for the three months ended September 30, 2020 were $3,896.1 million, up 33.0% from $2,928.5 million, with organic growth of 31.5% including a 32.6% contribution from COVID-19 Testing. Net earnings attributable to the company were $703.4 million, or $7.17 diluted EPS, versus $220.7 million, or $2.25, a year earlier. LCD (LabCorp Diagnostics) revenues rose 53.7% and operating margin reached 35.7%, while CDD (Covance Drug Development) revenues rose 5.7% with operating margin of 11.4%. For the nine months, revenues were $9,488.7 million, up 10.3%, but results were weighed down by $460.9 million of goodwill and other asset impairments, mostly within CDD, which produced a CDD operating loss of $131.2 million. Nine-month net earnings attributable to the company were $617.8 million, compared with $596.7 million in the prior-year period. Cash flow from operations rose to $1,360.7 million from $874.9 million, and the company ended the quarter with $667.2 million of cash and $997.0 million of available revolver borrowings. Investors should note several items: the company recorded a $132.1 million liability to return CARES Act Provider Relief Funds in the fourth quarter of 2020, the leverage covenant was temporarily relaxed to 5.0x, the share repurchase program was reinstated in October 2020 with $800.0 million of authorization remaining, and the company redeemed $412.2 million of 4.625% senior notes in August 2020.

    Oct 29, 2020
  20. 2020-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2020

    Laboratory Corporation of America Holdings and Subsidiaries reported a sharp deterioration in the first half of 2020, driven by the COVID-19 pandemic. Second-quarter revenues were $2,768.8 million, down from $2,881.7 million a year earlier, and net earnings attributable to the company were $231.6 million, up from $190.4 million, helped by $55.9 million of CARES Act Relief Fund payments recorded in Other, net. For the six months ended June 30, 2020, revenues were $5,592.6 million and the company posted a net loss attributable to Laboratory Corporation of America Holdings of $(85.6) million, compared with net earnings of $376.0 million in the prior-year period, reflecting $437.4 million of goodwill and other asset impairment charges, $426.4 million of which was within Covance Drug Development (CDD). The Base Business, excluding COVID-19 testing, remained below historical levels. Management stated that the Base Business has been steadily recovering from its April trough, while COVID-19 testing continues to grow. Through the filing date the company had performed more than 9.2 million molecular and 2.2 million antibody COVID-19 tests and reported a current capacity of 180,000 molecular and 300,000 antibody tests per day. Cash and cash equivalents were $557.0 million at June 30, 2020, with $997.0 million available under the revolving credit facility. Operating cash flow for the six months was $574.5 million, and the company amended its credit agreements in May 2020 to raise its maximum leverage ratio covenant to 5.0x for the periods through December 31, 2020. The company also disclosed that $412.2 million of senior notes due November 15, 2020 will be redeemed in August 2020 at par using cash on hand and revolver borrowings, and that share repurchases were temporarily suspended beginning in March 2020, with $800.0 million of authorization remaining. Management noted significant uncertainty about the duration and severity of the pandemic and its impact on the business for the balance of 2020.

    Jul 31, 2020
  21. 2020-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2020

    Laboratory Corporation of America Holdings and Subsidiaries reported a net loss attributable to the company of $317.2 million for the three months ended March 31, 2020, compared with net earnings of $185.6 million in the prior-year quarter. Revenues rose 1.2% to $2,823.8 million, driven primarily by acquisitions of 3.4%, partially offset by a 0.5% disposition and lower organic growth of 1.8%. The swing to a loss was driven by $437.4 million of goodwill and other asset impairment charges, $426.4 million of which were in Covance Drug Development (CDD), and by a COVID-19 impact that the filing says negatively affected LabCorp Diagnostics (LCD) revenues and CDD operations. CDD recorded an operating loss of $(338.7) million for the quarter, while LCD operating income fell to $188.4 million from $268.3 million. The filing describes significant uncertainty around the duration and severity of the pandemic. Demand for testing declined 50% to 55% versus normal daily levels at the end of the first quarter, and the company expects drug development study deferrals to continue at least through the first half of 2020. Cash flow from operations was $203.8 million, and cash and cash equivalents totaled $323.6 million at March 31, 2020, with $923.7 million of available revolver borrowings. Liquidity measures include suspended share repurchases, delayed capital expenditures, and suspended 2020 merit increases and U.S. 401(k) contributions. In May 2020 the company amended its term loan and revolving credit facilities to raise the maximum leverage ratio to 5.0x through the quarter ending December 31, 2020, and to 4.5x for the quarter ending March 31, 2021. A $412.2 million senior note becomes payable in the fourth quarter of 2020, which the company says it expects to repay from cash, operations, revolver borrowings, or refinancing.

    May 8, 2020
  22. 2019-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2019

    Laboratory Corporation of America Holdings (LH) reported third-quarter 2019 revenues of $2,928.5 million, up 3.4% from $2,831.3 million in the prior-year quarter, driven primarily by acquisitions of 2.8% and organic growth of 2.2%. Operating income declined 1.0% to $339.9 million, and net earnings attributable to the company fell to $220.7 million from $318.8 million, with diluted EPS of $2.25 versus $3.10. The prior-year quarter included a $258.3 million gain on the sale of the Food Solutions business, which largely explains the earnings decline. LabCorp Diagnostics (LCD) operating income fell 9.4% to $262.2 million, with margin down 190 basis points, primarily due to the impact of PAMA (approximately $26.8 million) and one additional payroll day. Covance Drug Development (CDD) operating income rose 40.8% to $123.8 million, with revenues up 8.7% to $1,175.4 million. For the nine months ended September 30, 2019, revenues were $8,601.4 million, up 0.6%, and net cash provided by operating activities was $874.9 million. The company completed the acquisition of Envigo's nonclinical contract research services business on June 3, 2019, funded in part by a new $850.0 million 2019 term loan, and divested the Covance Research Products business for cash consideration of $601.0 million plus a $110.0 million floating rate secured note. Long-term debt rose to $6,101.3 million, and the company repurchased $400.0 million of common stock during the nine months, leaving $950.0 million of authorization at quarter end. The filing also discloses several legal and operational matters, including the AMCA data incident affecting certain patient information, which generated $11.3 million of related SG&A costs in the quarter, and multiple pending class actions and government inquiries. Management stated it will vigorously defend the lawsuits and that the company believes the outcomes will not have a material adverse effect on its financial condition.

    Oct 31, 2019
  23. 2019-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2019

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported second-quarter 2019 revenues of $2,881.7 million, up 0.5% from $2,866.3 million a year earlier, and first-half revenues of $5,672.9 million, down 0.7%. Operating income fell to $335.7 million from $369.2 million for the quarter, and net earnings attributable to the company were $190.4 million, or $1.93 diluted EPS, versus $233.8 million and $2.27 a year earlier. The filing attributes the margin pressure to the PAMA reimbursement cut, cybersecurity spending, personnel costs and acquisition-related expenses, which included $33.2 million of acquisition and divestiture costs in the quarter. The balance sheet grew materially during the first half. The company completed the June 3, 2019 acquisition of Envigo's nonclinical contract research business, paying $601.0 million in cash and receiving a $110.0 million secured note from the sale of Covance Research Products, and funded the deal with an $850.0 million term loan. Total assets rose to $17,744.4 million from $16,185.3 million at year-end 2018, and long-term debt reached $6,135.0 million. Operating lease liabilities of $815.3 million were recognized following the adoption of ASC 842. Cash from operations declined to $419.3 million from $567.1 million, and the company repurchased $300.0 million of stock during the first half, leaving $1.05 billion of authorization. CDD (Covance Drug Development) revenue grew 6.8% in the quarter to $1,126.3 million, with operating income of $65.8 million, while LCD (LabCorp Diagnostics) revenue declined 2.9% to $1,760.9 million and its operating income fell 7.1%. The filing also discloses Board-level leadership changes: CEO David P. King will transition from his role effective November 1, 2019, and remain Chairman and Senior Advisor. Ongoing litigation includes False Claims Act suits and class actions, and the AMCA data security incident affecting certain patients' personal information, for which the company faces multiple lawsuits and government information requests.

    Aug 8, 2019
  24. 2019-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2019

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported first-quarter 2019 revenue of $2.79 billion, down from $2.85 billion in the first quarter of 2018, a decrease the company attributed primarily to business dispositions, the implementation of PAMA, and foreign currency translation, partially offset by organic growth and acquisitions. Net earnings attributable to the company were $185.6 million, or $1.86 per diluted share, compared with $173.2 million, or $1.67 per diluted share, a year earlier. Operating income rose to $318.2 million from $305.4 million, driven by a sharp improvement at CDD (operating income of $88.0 million versus $38.6 million), while LCD operating income fell 11.6% to $268.3 million on PAMA, disposition, personnel and cybersecurity impacts. Balance sheet and cash flow highlights include cash and equivalents of $348.8 million, total debt classified across $501.7 million of current borrowings and $5.50 billion of long-term debt, and net cash from operating activities of $165.8 million versus $179.7 million a year earlier. Capital expenditures rose to $94.2 million and the company spent $100.1 million repurchasing shares under a program that was replaced in February 2019 with a new $1.25 billion authorization. The company also adopted the new lease standard (ASC 842) on January 1, 2019, recording $770.0 million of additional operating lease liabilities. Subsequent to quarter-end, the company announced it will acquire Envigo's nonclinical research services business for net implied cash consideration of $485.0 million, expected to close in the second quarter of 2019. The filing also discloses several pending lawsuits and government subpoenas, including a False Claims Act case and DOJ document requests, which the company says it will vigorously defend.

    May 3, 2019
  25. 2018-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2018

    Laboratory Corporation of America Holdings (LabCorp) reported third-quarter 2018 revenues of $2,831.3 million, up 8.0% from $2,621.4 million a year earlier, with growth driven by acquisitions (6.5%) and organic growth (2.8%), partly offset by divestitures. Net earnings attributable to the company rose to $318.8 million from $171.5 million, and diluted EPS was $3.10 versus $1.65. The quarter's earnings were boosted by a $258.3 million gain on the sale of the Food Solutions business, which was offset in part by a $48.9 million loss on the divestiture of the U.K. forensic testing business. Operating income increased 5.1% to $343.4 million, though LCD operating margin fell 270 basis points to 16.5% while CDD operating margin rose 490 basis points to 8.1%. For the nine months ended September 30, 2018, revenues were $8,545.9 million, up 13.0%, and net cash provided by operating activities was $819.0 million, down from $933.1 million, which the filing attributes mainly to a $31.1 million special one-time employee bonus, working capital needs and ransomware-related costs. The company reported a ransomware attack in July 2018 that temporarily affected test processing; total expenditures related to it were $12.6 million in consulting fees and employee overtime plus lost revenue of $9.8 million. Management expects 2018 revenue growth of 10.5% to 11.0% and an effective tax rate of approximately 29.8%. Balance sheet highlights include cash and cash equivalents of $892.6 million at September 30, 2018, up from $316.6 million at year-end 2017, total long-term debt of $6,044.6 million, and $843.5 million of remaining share repurchase authorization. The filing also discloses a ratio of total debt to pro forma trailing 12-month EBITDA of 3.1 to 1.0 and a number of pending litigation matters, which management does not believe will have a material adverse effect on financial condition.

    Oct 30, 2018
  26. 2018-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2018

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported strong second-quarter 2018 results, with revenues of $2,866.3 million, up from $2,528.2 million in the prior-year quarter, and net earnings attributable to the company of $233.8 million, up from $184.8 million. Growth was driven by acquisitions, including Chiltern International Group, which was completed September 1, 2017, along with organic growth and favorable currency translation. The CDD segment was the main growth engine, with revenues of $1,054.2 million in the quarter. LCD revenues rose to $1,814.0 million, though LCD operating margin declined 90 basis points to 18.5% due to the implementation of PAMA. Management expects 2018 revenue growth of 10.5% to 11.5% over 2017. Profitability and cash flow were mixed in the first half. Six-month operating cash flow was $522.0 million, down from $536.4 million, reflecting a special one-time bonus of $31.0 million tied to the Tax Cuts and Jobs Act and working capital needs. The company repurchased $150.0 million of stock in the six months and raised its share repurchase authorization to $1,000.0 million, with $993.5 million remaining at June 30, 2018. Total debt was reduced, with the 2014 term loan paid off and the 2017 term loan declining to $527.0 million. The filing also discloses a July 16, 2018 ransomware incident affecting certain LCD information technology systems, which temporarily disrupted test processing and customer access to results. The company states that operations have returned to normal and that the investigation found no evidence of theft or misuse of patient or client data. Management also notes that the incident will involve expenditures that could negatively affect financial results, and that the company may face future claims or governmental actions.

    Jul 27, 2018
  27. 2018-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2018

    Laboratory Corporation of America Holdings and Subsidiaries filed this Form 10-Q for the quarter ended March 31, 2018. Revenues rose 18.0% to $2,848.3 million from $2,413.7 million, driven by acquisitions (13.4%), organic growth (3.2%) and foreign currency (about 1.5%). Operating income fell to $305.4 million from $318.1 million, and net earnings attributable to the company were $173.2 million, or $1.67 per diluted share, versus $183.0 million, or $1.75, a year earlier. The decline reflects a $31.0 million one-time bonus tied to the Tax Cuts and Jobs Act, Chiltern integration costs and the negative impact of PAMA on LCD margins. The filing restates 2017 results under ASC 606, which increases revenue and lowers earnings. LCD contributed about 62% of net revenues and CDD about 38%. LCD operating income declined 2.0% to $303.4 million, with operating margin down to 10.7% from 12.8%. CDD operating income fell 7.0% to $38.6 million. Cash provided by operations was $154.7 million, down from $225.9 million, mainly due to the special bonus and working capital needs. Total debt-related figures include $6,359.3 million of long-term debt and $417.7 million of short-term borrowings and current debt at March 31, 2018. The company repurchased $75.0 million of stock during the quarter and, after quarter end, raised its repurchase authorization to $1,000.0 million. Subsequent to quarter end, the company agreed on April 30, 2018 to sell the Covance Food Solutions business to Eurofins Scientific for $670.0 million in cash. Management expects 2018 revenue growth of 10% to 12% over 2017 and a consolidated effective tax rate of about 25.0%.

    May 1, 2018
  28. 2017-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2017

    Laboratory Corporation of America Holdings and Subsidiaries reported a strong third quarter and nine months of 2017, with revenue growth driven by acquisitions and organic growth. Net revenue for the three months ended September 30, 2017 was $2,597.9 million, up 9.5% from $2,372.7 million a year earlier, with growth from acquisitions of 6.9% and organic growth of 2.3%. For the nine months, net revenue was $7,504.4 million, up 6.4%. Net earnings attributable to the company were $180.6 million for the quarter (diluted EPS $1.74) and $561.4 million for the nine months (diluted EPS $5.40). LCD (LabCorp Diagnostics) generated 70.7% of third-quarter net revenue and CDD (Covance Drug Development) generated 29.3%. The balance sheet expanded substantially as the company completed the Chiltern International acquisition on September 1, 2017 for approximately $1,224.5 million in cash, and acquired PAML and other laboratories for about $605.5 million in cash during the nine months. Total assets rose to $16,691.8 million from $14,247.0 million at December 31, 2016, and long-term debt increased to $7,200.3 million from $5,300.0 million, reflected in new senior notes ($1,200.0 million issued August 22, 2017) and a new $750.0 million term loan. Operating cash flow was $895.4 million for the nine months, and the company repurchased $298.1 million of common stock, leaving $447.4 million of authorization. The filing also flags forward-looking pressures. CDD operating margin fell to 5.6% in the quarter from 7.4%, and the company said that preliminary CMS 2018 Clinical Laboratory Fee Schedule rates could reduce revenues from CMS-paid tests by 6% to 8%. The company also expects the revenue recognition standard effective January 1, 2018 to change LCD margins and CDD reported revenue, and notes that pending litigation, including the NPT Associates False Claims Act suit and several putative class actions, is being vigorously defended.

    Nov 2, 2017
  29. 2017-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2017

    Laboratory Corporation of America Holdings (LH) reported second-quarter 2017 net revenue of $2,498.4 million, up 4.9% from $2,382.0 million a year earlier, with growth driven by its LabCorp Diagnostics (LCD) segment, which rose 8.4% to $1,799.1 million. The Covance Drug Development (CDD) segment declined 3.1% to $699.7 million, primarily due to sponsors cancelling two large studies in late 2016 and unfavorable currency. Net earnings attributable to the company fell to $188.6 million from $204.1 million, and diluted EPS was $1.82 versus $1.96, reflecting higher restructuring and other special charges of $39.1 million, up from $6.6 million, including a $15.1 million impairment tied to a terminated software project. For the first six months, net cash provided by operating activities rose to $544.5 million from $477.1 million. Investing outflows of $736.9 million were driven mainly by $568.0 million in business acquisitions, including the Pathology Associates Medical Laboratories (PAML) acquisition completed May 4, 2017. Total debt grew, with long-term debt of $5,608.3 million at June 30, 2017, up from $5,300.0 million, partly from a $309.0 million revolving credit balance. The company also repurchased $256.0 million of common stock during the period, leaving $489.5 million of authorization. A subsequent event disclosed on July 31, 2017 is the planned acquisition of Chiltern, a specialty contract research organization, for approximately $1,200.0 million in cash, expected to close in the fourth quarter of 2017 and become part of the CDD segment. The company also disclosed a planned CDD LaunchPad initiative phase with pre-tax charges of approximately $30.0 million in 2017.

    Aug 2, 2017
  30. 2017-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2017

    Laboratory Corporation of America Holdings (LH) reported first-quarter 2017 net revenue of $2,408.1 million, up 4.9% from $2,295.2 million in the first quarter of 2016. LCD (LabCorp Diagnostics) net revenue rose 8.0% to $1,717.9 million, driven by organic volume, price and mix, and acquisitions, while CDD (Covance Drug Development) net revenue fell 2.0% to $690.3 million on lower demand after sponsors cancelled two large studies in late 2016 and slower backlog conversion. Net earnings attributable to the company were $192.2 million, or $1.84 diluted earnings per share, compared with $164.1 million, or $1.58, a year earlier. Operating income rose to $332.7 million from $299.5 million, while CDD operating earnings declined 10.8% to $56.1 million. Cash flow from operations improved to $233.8 million from $127.6 million. The company spent $151.8 million on acquisitions and $148.0 million repurchasing common stock, and drew $96.0 million on its revolving credit facility. Total debt rose: long-term debt was $5,401.9 million at March 31, 2017, and the ratio of total debt to trailing 12-month EBITDA was 3.1 to 1.0. Cash and cash equivalents fell to $365.5 million from $433.6 million at year-end 2016. In a subsequent event disclosed April 25, 2017, the company expanded its LaunchPad cost-reduction initiative to CDD, with a first phase expected to produce pre-tax savings of approximately $20.0 million in 2017 and about $45.0 million annualized thereafter, against pre-tax charges of $30.0 million. The filing also notes that the company will continue to monitor two CDD reporting units for goodwill impairment, and that a future impairment charge could materially affect operating income.

    Apr 28, 2017
  31. 2016-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2016

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported third-quarter 2016 net revenue of $2,372.7 million, up 4.5% from $2,269.9 million a year earlier, and nine-month net revenue of $7,049.9 million, up 12.6% from $6,260.9 million. Net earnings attributable to the company were $179.5 million for the quarter (diluted EPS $1.71, versus $1.50) and $547.7 million for the nine months (diluted EPS $5.25, versus $3.29). Growth was driven by organic volume and price/mix in LabCorp Diagnostics (LCD), tuck-in acquisitions, and the Covance acquisition, which lifted Covance Drug Development (CDD) nine-month revenue by 31.9%. Operating income rose to $324.0 million in the quarter and $989.0 million for the nine months, from $308.1 million and $760.3 million. The balance sheet shows total assets of $14,483.0 million at September 30, 2016, up from $14,077.8 million at year-end 2015, and total debt reduced to roughly $6.17 billion from about $6.36 billion, with long-term debt falling to $5,473.2 million. Cash and cash equivalents declined to $567.6 million. Operating cash flow was $727.0 million for the nine months, compared with $597.8 million a year earlier, while acquisitions used $396.8 million, including the Sequenom acquisition completed September 7, 2016 for a transaction price of $249.1 million net of cash received. Management reports that its share repurchases remain suspended until leverage approaches a total debt to trailing 12-month EBITDA target of 2.5 to 1.0; the current ratio was 3.3 to 1.0. The filing also flags ongoing legal matters, including several False Claims Act and Medicaid billing suits that the company says it will vigorously defend, and an expected change in Medicare clinical lab fee schedule rates under PAMA effective January 1, 2018. Management states that Medicare CLFS reimbursement represents less than 10% of consolidated revenue. The company also disclosed a $115.0 million acquisition of Center for Disease Detection, completed October 6, 2016.

    Oct 28, 2016
  32. 2016-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2016

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported second-quarter 2016 net revenue of $2,382.0 million, up from $2,218.7 million a year earlier, with net earnings attributable to the company of $198.2 million versus $169.8 million. Diluted earnings per share were $1.91 compared with $1.66. For the six months, net revenue was $4,677.2 million versus $3,991.0 million, and diluted EPS was $3.46 versus $1.76. The filing attributes the revenue growth to organic volume growth and tuck-in acquisitions in the clinical laboratory business, and for the six-month period, to the inclusion of a full six months of Covance revenue following the February 2015 Acquisition. The Covance segment, reported as Covance Drug Development (CDD), generated $722.4 million of second-quarter revenue, while LabCorp Diagnostics (LCD) generated $1,659.7 million. Balance sheet and cash flow data show cash and cash equivalents of $639.6 million at June 30, 2016, total debt of about $6.05 billion (short-term $87.4 million plus long-term $5,967.6 million), and shareholders' equity of $5,313.0 million. Net cash provided by operating activities was $466.6 million for the six months, against capital expenditures of $138.4 million. The company repaid $325.0 million of 3.125% senior notes due 2016 and reported a total debt-to-trailing 12-month EBITDA ratio of 3.3 to 1.0, with share repurchases suspended until that ratio approaches 2.5 to 1.0. Subsequent events include an agreement announced July 27, 2016 to acquire Sequenom, Inc. for $2.40 per share, or an equity value of $302.0 million, expected to close in the fourth quarter of 2016. The filing also discloses ongoing litigation, including False Claims Act lawsuits and a Medi-Cal reimbursement matter, which the company states are not expected to have a material adverse effect on its financial condition, though outcomes could be material to results in a given period. Risk factor updates cover the June 2016 CMS final rule under the Protecting Access to Medicare Act (new Medicare rates effective January 1, 2018) and the Brexit referendum, whose effects on the United Kingdom operations the company says are difficult to anticipate.

    Jul 29, 2016
  33. 2016-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2016

    Laboratory Corporation of America Holdings (LabCorp) reported first-quarter 2016 total revenues of $2,368.0 million, up from $1,793.2 million a year earlier, with net revenue of $2,295.2 million, up 29.5%. The increase reflects the February 2015 Covance acquisition, which accounted for 23.7% of the year-over-year net revenue growth, along with solid organic volume growth and tuck-in acquisitions in the clinical laboratory business, partially offset by currency. Covance Drug Development (CDD) net revenue rose 134.6% to $704.6 million, while LabCorp Diagnostics (LCD) net revenue grew 8.1% to $1,590.6 million. Profitability improved substantially. Operating income rose to $301.9 million from $132.4 million, and net earnings attributable to the company were $160.2 million, or $1.55 per diluted share, versus $3.1 million, or $0.04, in the prior-year quarter. The comparison is distorted by roughly $166.0 million of Acquisition deal costs recorded in Q1 2015 and a $37.4 million make-whole payment on Covance senior notes that hit interest expense that year. Interest expense fell to $54.5 million from $104.3 million. Operating cash flow was $123.0 million, compared with a use of $86.9 million in the prior-year period. Capital expenditures were $71.4 million, and the company expects 2016 capital expenditures of approximately 3.0% of net revenues. The balance sheet remains leveraged but in compliance with covenants. Total debt was roughly $6.4 billion (short-term $425.4 million plus long-term $5,969.5 million), cash was $696.3 million, and the company reported a total debt to trailing 12-month EBITDA ratio of 3.5 to 1.0. Share repurchases remain suspended until leverage approaches a 2.5 to 1.0 target. The company also faces a zero-coupon convertible note conversion window ending June 30, 2016, which it plans to settle in cash from cash on hand and/or revolver borrowings, plus ongoing False Claims Act and Medicaid billing litigation that management does not believe will have a material adverse effect on financial condition.

    May 6, 2016
  34. 2015-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2015

    Laboratory Corporation of America Holdings (LabCorp) reported results for the quarter ended September 30, 2015, in its Form 10-Q. Net revenues for the three months rose 46.3% to $2,269.9 million, driven primarily by the Covance Inc. acquisition, which closed February 19, 2015 for $6,150.7 million. The filing states that the acquisition accounted for 41.7% of the year-over-year net revenue growth, with the remainder attributed to organic volume growth and tuck-in acquisitions, partially offset by currency. Net earnings attributable to the company were $152.8 million for the quarter, versus $137.2 million a year earlier, and diluted EPS was $1.49 versus $1.59. For the nine months, net earnings attributable to the company were $322.6 million, down from $391.6 million. The balance sheet changed substantially. Total assets grew to $14.42 billion from $7.30 billion at year-end 2014, and long-term debt rose to $6.01 billion from $2.68 billion, largely reflecting $2.9 billion of senior notes and a $1.0 billion term loan issued to fund the acquisition. Goodwill of $6.07 billion and intangible assets of $3.56 billion are preliminary, as the purchase price allocation remains open and the final valuation is expected by year-end 2015. Interest expense for the quarter rose to $55.8 million from $25.9 million. Share repurchases remain suspended until total debt to EBITDA approaches 2.5 to 1.0; the filing reports a ratio of 3.8 to 1.0 at quarter end. The filing also flags several items for investors: a CDD committed minimum volume contract (about $70.0 million in annual revenue) expires October 31, 2015, with a proposed wind-down whose financial impact is still being evaluated; restructuring and special charges were $26.4 million in the quarter; and various litigation matters, including False Claims Act suits and a Medi-Cal reimbursement reduction, are described as not expected to have a material adverse effect on financial condition.

    Oct 30, 2015
  35. 2015-Q2-A

    Labcorp Holdings Quarterly Report (Amendment) for Q2 Ended Jun 30, 2015

    Laboratory Corporation of America Holdings, now Labcorp Holdings Inc., filed this Amendment No. 1 on Form 10-Q/A for the quarterly period ended June 30, 2015. The amendment amends the Form 10-Q that the company filed with the SEC on July 30, 2015. Its sole purpose is to provide the conformed signatures of the Chief Executive Officer and Chief Financial Officer, which were inadvertently omitted from Exhibit 32, the written statement pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. The company states that it obtained manually signed copies on July 29, 2015, before the original filing. The filing states that no other changes have been made to the Form 10-Q. It does not reflect subsequent events or modify or update any disclosures in the original report, and its forward-looking statements have not been revised. It should be read together with the original Form 10-Q. The cover page shows 101.1 million shares of common stock outstanding, net of treasury stock, as of August 17, 2015, and identifies the registrant as a large accelerated filer incorporated in Delaware with principal executive offices in Burlington, North Carolina. For investors, this amendment is administrative in nature. It does not alter the company's reported results or disclosures for the quarter. Its purpose is to complete the certification record for the original 10-Q.

    Aug 20, 2015
  36. 2015-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2015

    Laboratory Corporation of America Holdings reported a major transformation in the second quarter of 2015 following its acquisition of Covance Inc. on February 19, 2015 for $6,150.7 million, consisting of $4,388.2 million in cash and $1,762.5 million in stock. Net revenues for the three months ended June 30, 2015 were $2,218.7 million, up 46.3% from $1,516.4 million, with the filing attributing 40.9% of that growth to the Acquisition. Covance Drug Development (CDD) contributed $643.7 million of second-quarter net revenue, while the LabCorp Diagnostics (LCD) segment grew 6.9% to $1,575.0 million. Net earnings attributable to the company were $168.4 million for the quarter, compared with $141.3 million a year earlier, and diluted earnings per share were $1.64 in both periods. The balance sheet and leverage changed substantially. Total assets rose to $14,465.2 million from $7,301.8 million at December 31, 2014, and long-term debt increased to $6,113.2 million from $2,682.7 million. The company issued $2,900.0 million of senior notes and a $1,000.0 million term loan to fund the deal, and reported a total debt to consolidated EBITDA ratio of 4.0 to 1.0 as of June 30, 2015, with a stated target of 2.5 to 1.0 before resuming share repurchases, which were suspended. Interest expense rose to $57.9 million for the quarter from $25.8 million. The purchase price allocation remains preliminary, with the final valuation expected later in 2015. Operating cash flow for the six months ended June 30, 2015 was $309.8 million, down from $349.7 million, which the filing attributes mainly to lower net earnings tied to the Acquisition closing. The filing also discloses ongoing legal matters, including False Claims Act suits and a $50.0 million Washington jury verdict under appeal, and a pending Alberta, Canada decision that could impair the company's joint venture investment if the appeal fails.

    Jul 30, 2015
  37. 2015-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2015

    Laboratory Corporation of America Holdings reported a sharp shift in its first-quarter 2015 results, driven by the February 19, 2015 completion of its acquisition of Covance Inc. Net revenue rose to $1,772.3 million from $1,430.7 million, a 23.9% increase, and total revenues were $1,793.2 million. However, earnings collapsed: operating income fell to $130.2 million from $203.3 million, and net earnings attributable to the company were just $0.7 million, or $0.01 per diluted share, versus $113.1 million ($1.31 per diluted share) a year earlier. The filing attributes the decline to $166.0 million of Acquisition deal costs, $32.8 million of accelerated Covance equity compensation in cost of revenues, $19.3 million of restructuring and special charges, and $37.4 million of make-whole payments on the prepaid Covance senior notes, along with higher interest expense of $104.3 million versus $25.7 million. The balance sheet and cash flow changed materially. Total assets grew to $14,150.6 million from $7,301.8 million at year-end 2014, with goodwill of $6,282.2 million and intangible assets of $3,603.3 million, and long-term debt rose to $6,597.7 million from $2,682.7 million. Net cash used in operating activities was $86.9 million, compared with $142.3 million of cash provided a year earlier, and cash and cash equivalents ended the quarter at $446.4 million. The Acquisition was accounted for on a preliminary basis, with its purchase price of $6,150.7 million, including $4,388.2 million of cash consideration and $1,762.5 million of stock, and the purchase-price allocation remains subject to change. The filing also reports that the company suspended share repurchases after announcing the Acquisition and will not resume them until its total debt to consolidated EBITDA ratio reaches 2.5 to 1.0; that ratio stood at 4.2 to 1.0 at March 31, 2015. The company stated it was in compliance with all covenants. Ongoing legal matters include multiple False Claims Act and Medicaid billing lawsuits, with the company stating that adverse outcomes are not expected to have a material adverse effect on its financial condition, although they could be material to results for a particular period.

    May 4, 2015
  38. 2014-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2014

    Laboratory Corporation of America Holdings (LabCorp) reported net sales of $1,551.8 million for the third quarter of 2014, up 6.1% from $1,462.2 million a year earlier, and $4,498.9 million for the first nine months, up from $4,371.3 million. Net earnings attributable to the company were $137.2 million for the quarter (diluted EPS $1.59, versus $1.63) and $391.6 million for the nine months (diluted EPS $4.53, versus $4.81). The company cited strong organic test volume growth (total requisitions up 6.9% in the quarter) and fold-in acquisitions, offset by changes in test and payer mix, Medicare payment reductions, and a higher bad debt rate (4.55% of net sales in the quarter versus 4.3%). Operating income declined to $241.4 million from $244.6 million in the quarter and to $691.4 million from $775.9 million for the nine months. The most important development for investors is the November 2, 2014 definitive merger agreement to acquire Covance Inc. for approximately $6,100.0 million, consisting of $75.76 in cash and 0.2686 LabCorp shares per Covance share. The company has secured $4,250.0 million in bridge financing, expects its total debt to consolidated EBITDA ratio to rise to approximately 4.1 to 1.0 after closing, and plans to de-lever to 3.0 to 1.0 within three years. Share repurchases have been suspended, and the transaction is expected to close in the first fiscal quarter of 2015. Former Covance stockholders are expected to own about 15.5% of the combined company. Balance sheet and liquidity remained solid at September 30, 2014, with cash and cash equivalents of $575.7 million, total debt (short-term plus long-term) of about $3.0 billion, shareholders' equity of $2,770.8 million, and a total debt to EBITDA ratio of 2.5 to 1.0 against a covenant maximum of 3.0 to 1.0. Operating cash flow was $525.3 million for the nine months, down from $570.0 million. Several litigation matters are pending, including False Claims Act suits and a $50.0 million jury verdict in the Wuth case under appeal.

    Nov 10, 2014
  39. 2014-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2014

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported net sales of $1,516.4 million for the three months ended June 30, 2014, up from $1,468.2 million a year earlier, and $2,947.1 million for the six months, up from $2,909.1 million. Net sales growth was attributed to test volume measured by requisitions and fold-in acquisitions, partly offset by test and payer mix. Net earnings attributable to the company were $141.3 million for the quarter, versus $151.9 million in the prior-year quarter, and $254.4 million for the six months, versus $299.2 million. Diluted earnings per share were $1.64 for the quarter and $2.94 for the six months, compared with $1.62 and $3.18 a year earlier. Margin pressure is visible in the filing. Cost of sales rose to 62.5% of net sales in the quarter from 60.7%, and selling, general and administrative expenses rose to 19.6% from 19.1%, with bad debt expense at 4.7% of net sales versus 4.3%. The filing also cites Medicare payment reductions, test mix, and a stronger U.S. dollar affecting the Other segment. Operating cash flow was $349.7 million for the six months, up from $335.8 million, and the company repurchased $164.2 million of stock during the period. Total debt to consolidated EBITDA was 2.51 to 1.0 against a covenant maximum of 3.0 to 1.0. The filing also details ongoing legal and regulatory matters, including several False Claims Act suits and Medicaid billing inquiries, a $50.0 million jury verdict in the Wuth case that the company is appealing, and several California wage-and-hour class actions. Management states that it does not believe these matters will have a material adverse effect on financial condition, though outcomes could be material to results for a particular period.

    Jul 29, 2014
  40. 2014-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2014

    Laboratory Corporation of America Holdings reported first-quarter 2014 net sales of $1.43 billion, down from $1.44 billion in the prior-year period, a decrease the company attributes to severe winter weather (which reduced revenue by over $40.0 million), Medicare payment reductions, test mix, and a stronger U.S. dollar affecting its Canadian business. Net earnings attributable to the company fell to $113.1 million from $147.2 million, and diluted earnings per share declined to $1.31 from $1.56. Operating income dropped to $203.3 million from $262.0 million, with cost of sales rising to 63.9% of net sales from 60.3%, and bad debt expense increasing to 4.55% of net sales from 4.30%. Cash generation weakened, with operating cash flow of $142.3 million versus $198.2 million a year earlier. The company spent $56.5 million on capital expenditures, acquired businesses for $65.7 million, and repurchased $107.7 million of stock. Total debt-to-consolidated EBITDA was 2.48 to 1.0 against a covenant maximum of 3.0 to 1.0, and the company had no borrowings outstanding under its $1.0 billion revolving credit facility at March 31, 2014. The filing also flags ongoing legal and regulatory matters, including False Claims Act suits and state Medicaid billing inquiries, along with a $15.6 million jury verdict (after a 25% reduction) in a Florida Pap test case and a $50.0 million verdict in a Washington prenatal testing case that the company is appealing. Management states that these outcomes are not expected to have a material adverse effect on financial condition, though they could be material to results for a particular period. Glenn A. Eisenberg was named Executive Vice President and Chief Financial Officer, effective June 16, 2014.

    Apr 29, 2014
  41. 2013-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2013

    Laboratory Corporation of America Holdings reported third-quarter 2013 net sales of $1,462.2 million, up 3.0% from $1,419.4 million a year earlier, driven by a 5.1% increase in requisition volume partly offset by a 1.9% decline in revenue per requisition. Net earnings attributable to the company were $148.3 million versus $148.0 million, and diluted EPS rose to $1.63 from $1.53. For the nine months, net sales were $4,371.3 million (up 2.5%) and net cash provided by operating activities was $570.0 million, down from $587.2 million, which the company attributes mainly to payer delays and denials of coverage for existing tests after new molecular pathology codes were implemented. The filing states that Medicare and Medicaid fee reductions, sequestration effective April 1, 2013, and molecular code payment delays weighed on revenue per requisition, margins and cash flows. The balance sheet shows cash of $174.1 million at September 30, 2013, down from $466.8 million at year-end 2012, after $765.5 million of share repurchases in the nine months and $350.0 million of senior notes repaid in February 2013. Total debt rose to a long-term debt balance of $2,553.5 million plus $110.4 million short-term, with $372.0 million drawn on the $1,000.0 million revolving credit facility. The ratio of total debt to consolidated EBITDA was 2.09 to 1.0 against a covenant maximum of 3.0 to 1.0, and the company stated its intention to increase this ratio over time to 2.5 to 1.0. Board authorization remaining for repurchases was $308.5 million at September 30, 2013, and the Board authorized an additional $1,000.0 million on October 18, 2013. The filing also discloses several new False Claims Act lawsuits, including Georgia and Virginia Medicaid overcharge cases brought by a competitor laboratory, and a new Texas Medicaid civil investigative demand in October 2013. The company said it does not believe these matters will have a material adverse effect on its financial condition. In October 2013, CFO William B. Hayes announced his intention to retire around the second quarter of 2014, and the company is conducting a search for a successor.

    Oct 28, 2013
  42. 2013-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2013

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported net sales of $1,468.2 million for the second quarter of 2013, up from $1,423.4 million a year earlier, and $2,909.1 million for the six months ended June 30, 2013, versus $2,846.7 million in the prior-year period. Net earnings attributable to the company were $151.9 million for the quarter (diluted EPS of $1.62, versus $1.56) and $299.2 million for the six months (diluted EPS of $3.18, versus $3.19). Management attributed revenue growth primarily to the MedTox acquisition and growth in drugs of abuse testing, while cost of sales rose to 60.7% of sales in the quarter from 59.3%, citing Medicare fee cuts, delays and denials of coverage for molecular pathology codes, and sequestration. Operating cash flow for the six months was $335.8 million, compared with $383.4 million a year earlier, which management attributed to payer delays and denials of coverage for existing tests after molecular pathology code implementation. The company repurchased $479.2 million of stock during the first half and had $594.8 million remaining under its repurchase authorization at June 30, 2013. Total debt rose to $2,509.9 million ($119.9 million short-term plus $2,390.0 million long-term), and the company stated it was in compliance with its credit agreement covenants, with a total debt to consolidated EBITDA ratio of 1.95 to 1.0 against a 3.0 to 1.0 maximum. The filing also discloses several pending legal matters, including a False Claims Act lawsuit tied to alleged UnitedHealthcare kickbacks, a Georgia Medicaid overcharge suit filed in May 2013, and two overtime class actions filed in July 2013. Management stated it does not believe these proceedings will have a material adverse effect on financial condition, though outcomes could be material to results for a particular period.

    Jul 30, 2013
  43. 2013-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2013

    Laboratory Corporation of America Holdings reported first-quarter 2013 net sales of $1,440.9 million, up 1.2% from $1,423.3 million a year earlier, on a 1.1% increase in volume and a 0.2% increase in revenue per requisition. The filing attributes growth primarily to the Medtox acquisition, which added 2.4% to revenue and 3.2% to volume, while routine testing revenue rose 3.8% and genomic and esoteric testing fell 3.1%. Net earnings attributable to the company were $147.2 million, down from $161.6 million, and diluted earnings per share were $1.56 versus $1.63. Operating income declined to $262.0 million from $287.1 million, with gross margin pressured by higher cost of sales at 60.3% of sales versus 59.5% a year earlier. Balance sheet and cash flow activity centered on debt reduction and share buybacks. Cash and cash equivalents fell to $185.8 million from $466.8 million after the company repaid $350.0 million of 5 1/2% senior notes due 2013 in February and repurchased $113.9 million of stock. Short-term borrowings declined to $147.9 million from $480.0 million, while the revolving credit facility balance rose to $30.0 million. Operating cash flow was $198.2 million, and the company stated its total debt to consolidated EBITDA was 1.8, below the 3.0 to 1.0 covenant limit. Management plans to raise this ratio over time to 2.5 to 1.0 and expects 2013 capital expenditures of approximately $220.0 million. Legal matters include several False Claims Act lawsuits, including United States ex rel. NPT Associates, and state Medicaid subpoenas, which management does not believe will have a material adverse effect on financial condition, though outcomes could affect results in a particular period. The zero-coupon convertible subordinated notes are subject to a conversion window running through June 28, 2013, and the company plans to settle the cash portion with cash on hand and/or revolver borrowings.

    May 1, 2013
  44. 2012-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2012

    Laboratory Corporation of America Holdings, now Labcorp Holdings Inc., reported net sales of $1,419.4 million for the third quarter of 2012, up 1.1% from $1,404.5 million a year earlier, driven by a 1.4% increase in volume and a 0.3% decrease in revenue per requisition. Growth was supported by the Orchid and MEDTOX acquisitions. Net earnings attributable to the company rose to $148.0 million from $134.3 million, and diluted earnings per share were $1.53 compared with $1.31. Cost of sales increased to 60.8% of net sales from 59.5%, which the company attributed to lower margins on acquired operations not yet fully integrated and slower volume growth. Selling, general and administrative expenses as a percentage of sales declined to 20.1% from 20.2%. For the nine months ended September 30, 2012, net sales were $4,266.1 million, up 2.2%, and net earnings attributable to the company were $462.9 million, compared with $384.3 million in the prior-year period. Operating cash flow was $587.2 million, versus $577.0 million a year earlier. Cash and cash equivalents rose to $466.0 million from $159.3 million at December 31, 2011, while total debt increased with the issuance of $1,000.0 million of senior notes in August 2012, of which $625.0 million was used to repay revolving credit borrowings. The company repurchased $380.5 million of common stock in the nine-month period and had $204.0 million of repurchase authorization remaining at quarter end. The balance sheet shows total assets of $6,814.3 million and shareholders' equity of $2,716.7 million at September 30, 2012. The company stated that it was in compliance with its Credit Agreement covenants, with a total debt to consolidated EBITDA ratio of 2.0 to 1.0 against a maximum of 3.0 to 1.0. The company also disclosed a $350.0 million senior note maturity in early 2013, which it expects to address through operating cash flow, cash on hand, and debt market access.

    Oct 30, 2012
  45. 2012-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2012

    Laboratory Corporation of America Holdings reported second-quarter 2012 net sales of $1.42 billion, up 1.4% from $1.40 billion a year earlier, on essentially flat volume and a 1.5% increase in revenue per requisition. Net earnings attributable to the company were $153.3 million, or $1.56 per diluted share, versus $122.9 million, or $1.20 per diluted share, in the second quarter of 2011. Growth was driven mainly by the December 2011 Orchid Cellmark acquisition, while cost of sales rose to 59.3% of net sales from 58.1%, and selling, general and administrative expenses fell to 19.6% of net sales from 23.0%. For the six months ended June 30, 2012, net sales were $2.85 billion, up 2.7%, and net earnings attributable to the company were $314.9 million, or $3.19 per diluted share. Operating cash flow was $383.4 million, down from $400.2 million, and capital expenditures were $68.3 million. The company repurchased $252.6 million of stock in the first half, leaving $331.9 million of repurchase authorization at June 30, 2012. Total debt fell to $2.11 billion, including $450.0 million on a $1.0 billion revolving credit facility, and the company stated it was in compliance with its covenants, with a total debt to consolidated EBITDA ratio of 1.6 to 1.0 against a 3.0 to 1.0 limit. Subsequent events disclosed in the filing include the July 31, 2012 completion of the MEDTOX acquisition for $248.2 million in cash, and the July 2012 conversion option for the zero-coupon subordinated notes. The company also disclosed several pending lawsuits, including a False Claims Act suit concerning UnitedHealthcare discounts, and stated that it does not believe these outcomes will have a material adverse effect on its financial condition.

    Aug 2, 2012
  46. 2012-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2012

    Laboratory Corporation of America Holdings (LabCorp) reported first-quarter 2012 net sales of $1,423.3 million, up from $1,368.4 million in the first quarter of 2011, with net earnings attributable to the company of $161.6 million, or $1.63 per diluted share, compared with $127.1 million, or $1.23 per diluted share, a year earlier. The filing attributes the sales growth primarily to milder winter weather and the December 2011 acquisition of Orchid Cellmark. Operating income rose to $287.1 million from $235.8 million, helped by a $3.6 million net restructuring credit versus a $27.9 million charge in the prior-year period, and by lower SG&A expenses, which fell to 19.1% of net sales from 20.7%. Cost of sales rose to 59.5% of net sales from 58.5%, which the company attributes mainly to lower margins on recently acquired operations. Operating cash flow was $197.1 million, down from $215.3 million, which the company attributes to timing of payments on accrued employee compensation. The company repurchased $122.3 million of common stock during the quarter and had $462.1 million of remaining repurchase authorization at March 31, 2012. Total debt at quarter end included $460.0 million outstanding under a $1,000.0 million revolving credit facility, $1,985.4 million of long-term debt, and $136.0 million of zero-coupon convertible notes classified as current. The company stated it was in compliance with its credit agreement covenants, which require a ratio of total debt to EBITDA of not more than 3.0 to 1.0. The filing also discloses several pending legal matters, including a False Claims Act lawsuit unsealed in August 2011 alleging kickbacks to UnitedHealthcare, a second False Claims Act suit served in February 2012, two overtime pay class actions, and a Connecticut Supreme Court decision in April 2012 that reversed a jury verdict against subsidiary DIANON Systems. Management stated it does not believe these proceedings will have a material adverse effect on financial condition, though outcomes could be material to results for a particular period.

    Apr 27, 2012
  47. 2011-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2011

    Laboratory Corporation of America Holdings (now Labcorp Holdings Inc.) reported third-quarter 2011 net sales of $1,404.5 million, up 10.0% from $1,276.5 million a year earlier, and nine-month net sales of $4,176.2 million, up 12.6% from $3,708.5 million. Net earnings attributable to the company fell to $134.3 million for the quarter from $140.0 million, and to $384.3 million for the nine months from $426.4 million. Diluted EPS was $1.31 for the quarter (versus $1.34) and $3.76 for the nine months (versus $4.05). Results were pressured by restructuring and other special charges of $24.1 million in the quarter and $70.3 million year to date, a $34.5 million Hunter Labs litigation settlement charge, and delayed billings at the acquired Genzyme Genetics business, which affected cash collections. The balance sheet shows cash falling to $85.8 million from $230.7 million at year-end 2010, as the company repurchased $477.8 million of common stock and settled $150.6 million of zero-coupon subordinated notes in cash during the nine months. Total debt declined, with long-term debt at $1,769.3 million and short-term borrowings and current debt at $214.3 million. The company reported covenant compliance, with a leverage ratio of 1.6 to 1.0 against a 2.5 to 1.0 maximum. Remaining buyback authorization was approximately $256.5 million as of September 30, 2011. Key near-term items include the pending acquisition of Orchid Cellmark Inc. for about $85.4 million, which is subject to an FTC Second Request, and the planned purchase of the remaining Ontario joint venture units for C$147.8 million, expected to close November 28, 2011. Noncontrolling interest puts of $140.7 million are classified as current because they are exercisable on December 31, 2011.

    Oct 31, 2011
  48. 2011-Q2

    Labcorp Holdings Quarterly Report for Q2 Ended Jun 30, 2011

    Laboratory Corporation of America Holdings reported a strong second quarter of 2011, with net sales of $1,403.3 million for the three months ended June 30, 2011, up from $1,238.4 million a year earlier, and net sales of $2,771.7 million for the six months, versus $2,432.0 million. Growth was driven by the Genzyme Genetics acquisition, organic volume growth, and a shift toward higher-priced genomic and esoteric testing. Net earnings attributable to the company fell to $122.9 million in the quarter from $153.7 million, and diluted EPS was $1.20 versus $1.46. The decline reflected a $34.5 million net litigation settlement expense for the Hunter Labs California Medicaid lawsuit, restructuring and other special charges of $18.3 million, higher SG&A as a percentage of sales (23.0% versus 19.8%), and higher interest expense of $21.0 million versus $14.5 million. Cash generation and balance sheet activity were notable. Net cash from operating activities was $400.2 million for the six months, down from $448.2 million, which management attributed to billing delays at Genzyme Genetics. The company repurchased shares for about $325.8 million during the six months, settled about $149.1 million of zero-coupon convertible notes in cash, and reported cash and equivalents of $118.9 million at June 30, 2011. Total debt was $2.0 billion, including $1,788.2 million of long-term debt, and the company stated it was in compliance with its covenants, with a leverage ratio of 1.6 to 1.0. Pending items include the planned acquisition of Orchid Cellmark for about $85.4 million, which is subject to an FTC Second Request, and a settlement in principle of the Hunter Labs lawsuit for $49.5 million.

    Aug 2, 2011
  49. 2011-Q1

    Labcorp Holdings Quarterly Report for Q1 Ended Mar 31, 2011

    Laboratory Corporation of America Holdings reported first-quarter 2011 net sales of $1,368.4 million, up from $1,193.6 million in the prior-year quarter, a 14.6% increase driven by acquisitions including Genzyme Genetics and by a shift toward higher-priced genomic and esoteric testing. Net earnings attributable to the company were $127.1 million, compared with $132.7 million a year earlier, and diluted earnings per share fell to $1.23 from $1.25. The filing attributes margin pressure to lower margins on recently acquired operations not yet integrated into the cost structure, and cites $27.9 million of restructuring and other special charges, including a $14.8 million write-off of an investment. Severe winter weather reduced revenue by an estimated $22.0 million in the quarter. Cash flow from operations was $215.3 million, down from $232.0 million, which management ties to delays in billing and collections for Genzyme Genetics services following post-acquisition enrollment processes. The company repurchased about 2.9 million shares for approximately $265.3 million during the quarter and had roughly $469.0 million remaining under its repurchase authorization at March 31, 2011. Total debt was $396.8 million current and $1,807.9 million long-term, and the company stated it was in compliance with its credit covenants, with a leverage ratio of 1.8 to 1.0. Legal matters remain significant, including a California Medicaid qui tam suit seeking refunds calculated at $97.5 million, plus a pending Aetna lawsuit and multiple state and federal billing subpoenas. The FTC dismissed its administrative proceeding over the Westcliff acquisition on April 21, 2011. Management does not believe the outcomes of these proceedings will have a material adverse effect on financial condition, though results could be material to operating results in a given period.

    May 4, 2011
  50. 2010-Q3

    Labcorp Holdings Quarterly Report for Q3 Ended Sep 30, 2010

    Laboratory Corporation of America Holdings (LH) reported third-quarter 2010 net sales of $1,276.5 million, up from $1,185.1 million in the prior-year quarter, and net earnings attributable to the company of $140.0 million, or $1.34 per diluted share, versus $131.4 million, or $1.21 per diluted share, in 2009. For the nine months ended September 30, 2010, net sales were $3,708.5 million and net earnings attributable to the company were $426.4 million, or $4.05 per diluted share. The filing states that routine testing volume declined 3.1% over the nine months, while genomic and esoteric testing volume rose 5.7%, and that severe winter weather in the first quarter reduced volume by an estimated 0.4% and revenue by an estimated $23.0 million. The most significant development is the pending acquisition of Genzyme Genetics, a business unit of Genzyme Corporation, for $925.0 million in cash, announced in September 2010. The company entered into a $925.0 million bridge term loan credit agreement on October 28, 2010 to fund the deal, and the filing states it expects to replace that facility, possibly through debt capital markets offerings. The acquisition is subject to Hart-Scott-Rodino clearance, with a goal of closing by year-end, and the company recognized $7.0 million of bridge financing fees in interest expense and about $10.9 million of acquisition-related professional fees in the quarter. Balance sheet and cash flow data show cash and cash equivalents of $96.9 million at September 30, 2010, total debt of $1,346.0 million (short-term $425.4 million plus long-term $920.6 million), and operating cash flow of $624.4 million for the nine months. The company repurchased about 4.5 million shares for approximately $337.5 million during the nine months, leaving $234.3 million of repurchase authorization. Legal matters include a Medicaid billing qui tam case in California scheduled for trial on September 6, 2011, and an Aetna lawsuit filed August 19, 2010, which the company says it intends to defend vigorously.

    Nov 1, 2010