Reports Record Profits Driven by Strong Sales; Announces Two-for-One Stock Split
BURLINGTON, N.C., April 23 /PRNewswire Interactive News Release/ --
Laboratory Corporation of America(R) Holdings (LabCorp(R)) (NYSE: LH)today announced results for the quarter ended March 31, 2001. Net sales were$525.4 million, operating income was $87.3 million, and net income was $43.5million. This compares with net sales of $462.7 million, operating income of$57.4 million, and net income of $25.7 million in the first quarter of 2000.Diluted earnings per share for the quarter were $1.24, versus $0.75 for thecomparable 2000 quarter. The 13.6 percent increase in net sales is the resultof a 6.2 percent increase in volume and a 7.4 percent increase in price.
Earnings before interest, taxes, depreciation and amortization (EBITDA)were $110.3 million for the first quarter, or 21.0 percent of net sales,versus $78.3 million, or 16.9 percent of net sales, for the same period in2000. Days sales outstanding (DSO) for the quarter decreased to 67 days. Thebalance owed on LabCorp's term loan was reduced to $445.5 million, from $478.5million at the end of 2000, and the balance on its $450 million revolving lineof credit facility remained at zero.
"Our financial performance continues to be driven by the implementation ofour strategic initiatives for growth," said Thomas P. Mac Mahon, chairman andchief executive officer. "Increases in high-value testing from physicians andmanaged care companies, as a result of our emphasis on genomic and esoterictesting, have led the way in this expansion."
The Company also announced that its Board has approved a two-for-one stocksplit, subject to shareholder approval of an increase in the number ofauthorized shares of common stock. The stock split will be affected by theissuance on June 11, 2001 of a stock dividend of one new share of common stockfor each share of common stock held by shareholders of record on June 4, 2001.Shareholders will vote on amending the Company's certificate of incorporationto increase the number of authorized common shares to 265,000,000 at the 2001Annual Shareholder's Meeting to be held May 24, 2001 in Burlington, NC. Therecord date for the annual meeting is April 18, 2001.
A live broadcast of LabCorp's quarterly conference call on April 24, 2001will be available online at www.labcorp.com or at www.streetevents.combeginning at 9:30 a.m. Eastern Time, with an online rebroadcast continuingthrough July 15, 2001. The live call at 9:30 a.m. is also available in alisten-only mode by dialing 212-896-6010. A telephone replay of the call willbe available through May 1, 2001 and can be heard by dialing 800-633-8284(858-812-6440 for international callers). The access code for the replay is184-85-860.
The first clinical laboratory to fully embrace genomic testing, LaboratoryCorporation of America(R) Holdings (LabCorp(R)) has been a pioneer incommercializing new diagnostic technologies. As a national laboratory withannual revenues of $1.9 billion in 2000 and over 18,000 employees, the companyoffers more than 4,000 clinical tests ranging from simple blood analyses tosophisticated molecular diagnostics. Serving over 200,000 clients nationwide,LabCorp leverages its expertise in innovative clinical testing technology withits Centers of Excellence. The Center for Molecular Biology and Pathology, inResearch Triangle Park (RTP), North Carolina, develops applications forpolymerase chain reaction (PCR) technology. LabCorp's National GeneticsInstitute in Los Angeles is an industry leader in developing novel, highlysensitive PCR methods for testing hepatitis C and other infectious agents, andits Center for Esoteric Testing in Burlington, North Carolina, performs thelargest volume of specialty testing in the network. LabCorp's clients includephysicians, state and federal government, managed care organizations,hospitals, clinics, pharmaceutical and Fortune 1000 companies, and otherclinical laboratories.
Each of the above forward-looking statements is subject to change based onvarious important factors, including without limitation, competitive actionsin the marketplace and adverse actions of governmental and other third-partypayors. Further information on potential factors that could affect LabCorp'sfinancial results is included in the Company's Form 10-K for the year endedDecember 31, 2000 and subsequent SEC filings.
www.labcorp.com
LABORATORY CORPORATION OF AMERICA HOLDINGS Summarized Financial Information (Dollars in millions, except per share data)
(Unaudited) Three Months Ended March 31, 2001 2000 Statement of Operations Data: Net sales $525.4 $462.7 Cost of sales 303.8 279.2 Selling, general and administrative 125.0 118.4 Amortization of intangibles and other assets 9.3 7.7 Operating income 87.3 57.4 Other (income) expense (0.6) (0.7) Interest expense 8.8 10.5 Earnings before income taxes 79.1 47.6 Provision for income taxes (35.6) (21.9) Net earnings 43.5 25.7 Less preferred stock dividends and accretion of mandatorily redeemable preferred stock -- 14.9 Net income attributable to common shareholders $ 43.5 $ 10.8 Diluted earnings per share $ 1.24 $ 0.75 Weighted-average shares outstanding - diluted 35.2 34.4 (Unaudited) Three Months Ended Year Ended March 31, December 31, 2001 2000 Balance Sheet Data: Cash and cash equivalents $ 66.8 $ 48.8 Accounts receivable, net 388.7 368.0 Property, plant & equipment 271.4 272.8 Intangible assets, net 860.0 865.7 Other assets 116.5 111.6 $1,703.4 $1,666.9 Total bank debt $ 445.5 $ 478.5 Other liabilities 334.2 311.0 Redeemable preferred stock -- -- Shareholders' equity 923.7 877.4 $1,703.4 $1,666.9 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X87325818
SOURCE Laboratory Corporation of America
CONTACT: Pamela Sherry of Laboratory Corporation of America,336-436-4855, or Shareholder Direct, 800-LAB-0401/
