UNITED STATES 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
APRIL 24, 2000
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(Date of earliest event reported)
LABORATORY CORPORATION OF AMERICA HOLDINGS
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(Exact name of registrant as specified in its charter)
DELAWARE 1-11353 13-3757370
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
358 SOUTH MAIN STREET, BURLINGTON, NORTH CAROLINA 27215
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(Address of principal executive offices)
336-229-1127
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On April 24, 2000, Laboratory Corporation of America-
Registered Trademark- Holdings (LabCorp-Registered Trademark-)
announced results for the quarter ended March 31, 2000.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibit
20 Press release of the Company dated
April 24, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
LABORATORY CORPORATION OF AMERICA HOLDINGS
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(Registrant)
By: /s/BRADFORD T. SMITH
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Bradford T. Smith
Executive Vice President,
General Counsel, Secretary
and Compliance Officer
Date: May 2, 2000
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Laboratory Corporation of America-Registered Trademark-Holdings
358 South Main Street
Burlington, NC 27215
Telephone: 336-584-5171
FOR IMMEDIATE RELEASE
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Contact: 336-436-4855 Shareholder Direct: 800-LAB-0401
Pamela Sherry www.labcorp.com
LABORATORY CORPORATION OF AMERICA-REGISTERED TRADEMARK- HOLDINGS'
FIRST QUARTER RESULTS SIGNIFICANTLY EXCEED EXPECTATIONS
EPS Surpasses Analysts' Consensus Forecast on Strong Volume Growth
Burlington, NC, April 24, 2000 - Laboratory Corporation of America-
registered Trademark-Holdings (LabCorp-Registered Trademark-) (NYSE: LH)
today announced results for the quarter ended March 31, 2000.
Net sales for the first quarter were $462.7 million, operating income
was $57.4 million, and net income was $25.7 million. Basic and
diluted earnings per common share were $0.08 and $0.07, respectively.
This compares with net sales of $417.9 million, operating income of
$34.3 million, net income of $14.1 million, and basic and diluted
earnings per common share of $0.02 for the same period in 1999.
The 10.7 percent increase in net sales is the result of an 8.1
percent increase in volume and a 2.6 percent increase in price. The
growth in volume was the largest same period, year-over-year increase
since LabCorp was formed in 1995. Growth in all key business
segments generated the volume increase, with hospitals and managed
care accounts making the largest gains, followed by continued growth
in specialized infectious disease testing. The price increase
reflects the Company's ongoing efforts to obtain appropriate pricing
for its services. The Company also announced that full year diluted
earnings per common share are likely to exceed the current consensus
analysts' forecast by approximately 25 percent.
Earnings before interest, taxes, depreciation, and amortization
(EBITDA) were $78.3 million for the first quarter of 2000, or 16.9
percent of net sales, versus $55.4 million, or 13.3 percent of net
sales, for the comparable period in 1999. Days sales outstanding
(DSO) for the quarter improved to 72 days from 74 days at the end of
1999. At the end of the quarter the balance owed on LabCorp's term
loan was reduced to $544.5 million from $573.4 million at the end of
1999, and its $450 million revolving line of credit facility remained
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at zero. Operating cash flow for the quarter was $48.5 million, compared
to $25.1 million in the first quarter of 1999. "By every measure,
our first quarter performance exceeded expectations," said
Thomas P. Mac Mahon, chairman of LabCorp. "Across the board
topline gains in volume and price continued to benefit our financial
performance, supported by our strategies to increase volume through
hospital and selected managed care accounts, and by building volume in
key esoteric testing segments. Volume for HIV viral load, HIV resistance,
hepatitis C, and molecular genetics testing surpassed internal projections
for the quarter. Driven by the rapid pace of scientific breakthroughs
and medical advances, as well as our strategy to unlock the potential of
our enormous base of testing information, LabCorp will continue to set
the standard for technological leadership in our field."
A live broadcast of LabCorp's quarterly conference call will be
available online at www.labcorp.com or at www.streetfusion.com, on
April 25, 2000, beginning at 10:00 a.m. Eastern Daylight Time, with
an online rebroadcast continuing through July 16, 2000.
Laboratory Corporation of America-Registered Trademark- Holdings
(LabCorp-Registered Trademark-) is a national clinical laboratory
with annual revenues of $1.7 billion in 1999. With 18,000 employees
and over 100,000 clients nationwide, the company offers more than
2,000 clinical tests ranging from simple blood analyses to
sophisticated molecular diagnostics. LabCorp leverages its expertise
in innovative clinical testing technology with three Centers of
Excellence. The Center for Molecular Biology and Pathology, in
Research Triangle Park (RTP), North Carolina, develops applications
for polymerase chain reaction (PCR) technology. Its Center for
Occupational Testing in RTP is the world's largest substance abuse
testing facility, and the Center for Esoteric Testing in Burlington,
North Carolina, performs the largest volume of specialty testing
in the network. LabCorp's clients include physicians, state and
federal government, managed care organizations, hospitals, clinics,
pharmaceutical and Fortune 1000 companies, and other clinical laboratories.
Each of the above forward-looking statements is subject to change
based on various important factors, including without limitation,
competitive actions in the marketplace and adverse actions of
governmental and other third-party payors. Further information on
potential factors that could affect LabCorp's financial results is
included in the Company's Form 10-K for the year ended December 31,
1999 and subsequent SEC filings.
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LABORATORY CORPORATION OF AMERICA HOLDINGS
Summarized Financial Information
(Dollars in millions, except per share data)
(Unaudited)
Three Months Ended
March 31,
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2000 1999
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Statement of Operations Data:
Net sales $ 462.7 $ 417.9
Cost of sales 279.2 266.5
Selling, general and administrative 118.4 109.2
Amortization of intangibles and other assets 7.7 7.9
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Operating income 57.4 34.3
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Earnings before income taxes 47.6 22.8
Provision for income taxes 21.9 8.7
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Net earnings 25.7 14.1
Less preferred stock dividends and accretion
of mandatorily redeemable preferred stock 14.9 11.2
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Net income attributable to common
shareholders $ 10.8 $ 2.9
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Basic earnings per share $ 0.08 $ 0.02
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Diluted earnings per share $ 0.07 $ 0.02
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Weighted average shares for basic 127.6 126.1
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Weighted average shares for diluted 344.1 126.1
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(Unaudited)
Three Months Ended Year Ended
March 31, December 31,
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2000 1999
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Balance Sheet Data:
Cash and cash equivalent $ 40.9 $ 40.3
Accounts receivable, net 368.2 348.0
Property, plant & equipment 271.4 273.2
Intangible assets, net 801.6 803.9
Other assets 117.8 124.8
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$ 1,599.9 $ 1,590.2
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Total bank debt $ 544.5 $ 573.4
Other liabilities 298.9 282.6
Redeemable preferred stock 568.9 558.7
Shareholders' equity 187.6 175.5
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$ 1,599.9 $ 1,590.2
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