SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: January 26, 1998
Lab Holdings, Inc.
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(Exact name of registrant as specified in its charter)
Missouri 0-16946 43-1039532
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(State of other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
5000 W. 95th Street, Suite 260
P. O. Box 7568
Shawnee Mission, KS 66207
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(Address of principal executive offices) (Zip code)
(913) 652-1000
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(Registrant's telephone number, including area code)
Seafield Capital Corporation
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(Registrant's former name or former address, if changed since last report)
Item 5. Other Events
On January 26, 1998, the Registrant issued the following two news releases:
"SHAWNEE MISSION, KS - Lab Holdings, Inc. (formerly Seafield Capital
Corporation) announced today that LabOne, Inc. (LabOne), its 81%-owned
subsidiary, reported a net loss of $2.4 million for the fourth quarter
1997, which includes a one-time, non-cash, pre-tax write off of $6.6
million related to the anticipated sale of its current facilities.
The text of LabOne's January 26, 1998 release is as follows:
`LENEXA, KANSAS - LabOne, Inc. reported a net loss of $2.4 million for the
fourth quarter 1997 which includes a one-time, non-cash, pre-tax write off
of $6.6 million related to the anticipated sale of its current facilities.
Construction of LabOne's new facility is currently underway with completion
scheduled for early 1999. The net loss of $2.4 million or $0.18 per share
compared to net earnings of $1.0 million or $0.08 per share for the fourth
quarter 1996. Excluding the one-time write off, LabOne would have reported
net earnings of $1.6 million or $0.12 per share for the fourth quarter.
LabOne also reported a 27 percent increase in revenue to $21.2 million for
the fourth quarter 1997, compared to $16.6 million for the fourth quarter
of 1996. In the fourth quarter 1997, insurance segment revenue increased 19
percent to $16.5 million, clinical segment revenue increased 59 percent to
$2.0 million, and substance abuse testing segment revenue increased 78
percent to $2.6 million from the fourth quarter 1996.
For the year ended Dec. 31, 1997, revenue increased 33 percent to $78.9
million, from $59.4 million in 1996. Net earnings declined from $2.9
million or $0.22 per share in 1996 to $2.2 million or $0.17 per share in
1997. Excluding the one-time expense, net earnings would have increased to
$6.1 million or $0.46 per share in 1997.
`We experienced a very successful year for LabOne in 1997,' said W. Thomas
Grant II, chairman, president and CEO of LabOne. `From last year, clinical
revenue increased 91 percent, insurance revenue increased 22 percent and
substance abuse testing revenue increased 101 percent. Excluding the one-
time write off, these substantial increases in revenue resulted in a 114
percent increase in net income over 1996. The write off associated with
the sale of our current facility is a necessary step in the transition into
our new facility by the beginning of 1999.'
LabOne also announced today that BlueCross BlueShield of Tennessee has
selected LabOne to provide routine outpatient laboratory testing services
for BlueCare members throughout Tennessee. Approximately 425,000 BlueCare
members will be covered by the program. BlueCare is BlueCross BlueShield
of Tennessee's plan for Tenncare participants. (Please refer to the
separate press release for more information.)
`We are extremely pleased with the continued growth of our clinical
division,' continued Grant. `This contract is a direct reflection of our
commitment to provide high-quality testing and information to clients
across the United States. To date, our Laboratory Benefit Management
Programs, including BlueCare, have more than 1.8 million lives enrolled
with more than 300,000 lives awaiting implementation.'
LabOne operates a centralized laboratory in the Kansas City area which
markets laboratory testing services in the United States and Canada.'
For information, contact: Robert D. Thompson Kurt E. Gruenbacher
LabOne, Inc. LabOne, Inc.
(913) 888-1770, (913) 888-1770,
ext. 1244 ext. 1445
Lab Holdings, Inc. will release its 1997 year-end financial results on or
before February 4, 1998."
"SHAWNEE MISSION, KS - Lab Holdings, Inc. (formerly Seafield Capital
Corporation) announced today that LabOne, Inc. (LabOne), its 81%-owned
subsidiary, has been selected by BlueCross BlueShield of Tennessee to
provide routine outpatient laboratory testing services for BlueCare members
throughout Tennessee.
The text of LabOne's January 26, 1998 release is as follows:
`LENEXA, KANSAS - LabOne, Inc. announced today that BlueCross BlueShield of
Tennessee has selected LabOne to provide routine outpatient laboratory
testing services for BlueCare members throughout Tennessee. Approximately
425,000 BlueCare Members will be covered by the program. BlueCare is
BlueCross BlueShield of Tennessee's plan for Tenncare participants.
LabOne was awarded the contract based on its ability to provide high-
quality testing, quick turnaround times and disease management information.
`Based on our assessment of available providers, LabOne can provide unique
information management services, including statistical reporting to track
trends, practice patterns and outcome/effectiveness of initiatives,' wrote
Greg Preston, M.D., Chief Medical Officer for BlueCare in a letter to
Tennessee physicians. `We believe sharing this data, especially with
primary care managers for their assigned members, will assist in improving
the quality of care for BlueCare members.'
`We are extremely pleased with the continued growth of our clinical
division,' said W. Thomas Grant II, Chairman, President and CEO of LabOne.
`This contract is a direct reflection of our commitment to provide high-
quality testing and information to clients across the United States.'
LabOne operates a centralized laboratory in the Kansas City area which
markets laboratory testing services in the United States and Canada.'
For information, contact: Robert D. Thompson Kurt E. Gruenbacher
LabOne, Inc. LabOne, Inc.
(913) 888-1770, (913) 888-1770,
ext. 1244 ext. 1445"
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized officer.
Lab Holdings, Inc.
Date: January 27, 1998 By: /s/ Steven K. Fitzwater
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Steven K. Fitzwater
Vice President, Chief Financial
Officer and Secretary