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Last $119.77 USD
Change Today +0.21 / 0.18%
Volume 1.4M
LH On Other Exchanges
Symbol
Exchange
Berlin
New York
As of 8:04 PM 05/1/15 All times are local (Market data is delayed by at least 15 minutes).

laboratory crp of amer hldgs (LH) Key Developments

Laboratory Corp. of America Holdings Announces Consolidated Earnings Results for the First Quarter Ended March 31, 2015; Provides Earnings Guidance for the Year 2015; Reports Asset Impairment for the First Quarter Ended March 31, 2015

Laboratory Corp. of America Holdings announced consolidated earnings results for the first quarter ended March 31, 2015. Net revenue for the quarter was $1.77 billion, an increase of 23.9% over last year’s $1.43 billion. Operating income for the quarter was $130.2 million, compared to $203.3 million in the first quarter of 2014. Adjusted operating income (excluding amortization of $31.4 million, and restructuring and special items) for the quarter was $300.3 million, or 16.9% of net revenue, compared to $231.9 million, or 16.2%, in the first quarter of 2014. The increase in adjusted operating income was due to the acquisition of Covance, organic volume growth and productivity gains, partially offset by price and mix. The company’s earnings were reduced by restructuring and special items of $191.3 million ($138.7 million impacted operating income and $52.6 million impacted interest expense), or $141.3 million after-tax. As a result, the company recognized net earnings attributable to the company in the quarter of $0.7 million, or $0.01 per diluted share, compared to $113.1 million, or $1.31 per diluted share, last year. Adjusted EPS (excluding amortization, restructuring and special items) were $1.73 in the first quarter, compared to $1.51 in the first quarter of 2014. Operating cash flow for the first quarter was negative $86.9 million, compared to $142.3 million in the first quarter of 2014, as the company’s operating cash flow was negatively impacted by $153.5 million in non-recurring items relating to the acquisition of Covance. Excluding these items, operating cash flow was $66.6 million. The decline in operating cash flow was due to Covance’s seasonal use of cash, partially offset by improved earnings and working capital in the company’s base business. Capital expenditures totaled $33.8 million, compared to $56.5 million in the first quarter of 2014. As a result, free cash flow was negative $120.7 million, compared to $85.8 million in the first quarter of 2014. Excluding non-recurring items, free cash flow was $32.8 million during the quarter. Total revenue was 1,793.2 million compared to $1,430.7 million a year ago. Earnings before income taxes were $30.3 million compared to $187.7 million a year ago. The company’s updated its guidance for 2015. Net revenue growth of 39% to 42%, after the impact from approximately 230 basis points of negative currency due to the strengthening U.S. Dollar. Net revenue growth in LabCorp Diagnostics of approximately 3% to 5%, after the impact from approximately 70 basis points of negative currency. Net revenue growth in Covance Drug Development of approximately 0% to 2% versus full year 2014 revenue after the impact from approximately 440 basis points of negative currency. Adjusted EPS guidance of $7.55 to $7.90, compared to $6.80 last year. Operating cash flow of approximately $1,045 million to $1,070 million, capital expenditures of approximately $325 million to $350 million, and free cash flow of approximately $695 million to $745 million. The company expects free cash flow in 2015 to be negatively impacted by approximately $120 million of net non-recurring items related to the Covance acquisition. Excluding these items, the company expects free cash flow to be $815 million to $865 million, unchanged from the company’s prior guidance. For the first quarter ended March 31, 2015, the company reported asset impairment of $14.8 million.

Laboratory Corp. of America Holdings to Report Q1, 2015 Results on Apr 27, 2015

Laboratory Corp. of America Holdings announced that they will report Q1, 2015 results Pre-Market on Apr 27, 2015

Laboratory Corp. of America Holdings, Q1 2015 Earnings Call, Apr 27, 2015

Laboratory Corp. of America Holdings, Q1 2015 Earnings Call, Apr 27, 2015

Laboratory Corp. of America Holdings to Prepay the Bridge Facility

On February 13, 2015, Laboratory Corp. of America Holdings entered into a bridge term loan credit agreement with Bank of America, N.A., as administrative agent, Wells Fargo Bank, National Association, as syndication agent, Credit Suisse AG, Cayman Islands Branch, as documentation agent, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC and Credit Suisse Securities (USA) LLC as joint lead arrangers and joint book managers, and the lenders named therein. The agreement provided for a 60-day cash bridge term loan credit facility in the principal amount of $400 million for the purpose of financing a portion of the cash consideration and the fees and expenses in connection with the company's acquisition of Covance Inc. The bridge facility was advanced in full on February 19, 2015, the date of the company's completion of the acquisition. On March 16, 2015 the company elected to prepay the bridge facility, without penalty. The agreement terminated effective March 16, 2015 in connection with the prepayment of the bridge facility.

Laboratory Corp. of America Holdings Presents at Barclays Global Healthcare Conference, Mar-10-2015 08:30 AM

Laboratory Corp. of America Holdings Presents at Barclays Global Healthcare Conference, Mar-10-2015 08:30 AM. Venue: Loews Miami Beach Hotel, 1601 Collins Avenue, Miami, Florida, United States. Speakers: David P. King, Chairman.

 

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Valuation LH Industry Range
Price/Earnings 26.5x
Price/Sales 1.7x
Price/Book 2.4x
Price/Cash Flow 24.8x
TEV/Sales 0.7x
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