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 22, 1999
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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)
ITEM 5. OTHER EVENTS
On April 22, 1999, the Company issued a press release
announcing operating results of the Company for the quarter
ended March 31, 1999. The press release is attached as an
exhibit hereto and the text thereof is incorporated in its
entirety herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibit
20 Press release of the Company dated
April 22, 1999.
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 7, 1999
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: 336-584-5171 Shareholder Direct: 800-LAB-0401
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Media - Cynthia Jay, Ext. 5052 www.labcorp.com
Investors - Pamela Sherry, Ext. 4855
LABORATORY CORPORATION OF AMERICA-REGISTERED TRADEMARK- REPORTS
FIRST QUARTER RESULTS
Burlington, NC, April 22, 1999 - Laboratory Corporation of America-
Registered Trademark- Holdings (LabCorp-Registered Trademark-) (NYSE:
LH) today announced results for the quarter ended March 31, 1999.
Net sales for the first quarter were $417.9 million, operating income
was $34.3 million, and net income was $14.1 million. The basic and
diluted earnings per common share (after deducting preferred stock
dividends) were $0.02. This compares with net sales of $387.7
million, operating income of $29.4 million, net income of $9.3
million, and a basic and diluted loss per common share (after
deducting preferred stock dividends) of ($0.01) for the same period
in 1998.
The 7.8 percent increase in net sales is the result of a 4.4 percent
increase in price and a 3.4 percent increase in volume. These
increases resulted from continued momentum achieved by appropriate
pricing and focusing on growing the base business, as well as high-
value and specialized testing. Growth initiatives in strategic
acquisitions and new alliances also improved positioning in sales and
service capacity.
Earnings before interest, taxes, depreciation, and amortization
(EBITDA) was $55.4 million for the first quarter of 1999, or 13.3
percent of net sales, versus $50.2 million, or 13.0 percent of net
sales, for the comparable period in 1998. Operating cash flow for
the quarter was $25.1 million.
"We are pleased with the progress in our financial performance which
resulted from ongoing, successful strategies to strengthen our
customer base and broaden our testing and service capabilities," said
Thomas P. Mac Mahon, president and chief executive officer. "We are
especially pleased with the demand from the medical community for our
genotyping and phenotyping testing, which is critically important for
optimizing the treatment of HIV/AIDS patients."
The Company noted that each of the above forward-looking statements
was 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 the
Company's financial results is included in the Company's Form 10-K
for the year ended December 31, 1998.
Laboratory Corporation of America-Registered Trademark- Holdings
(LabCorp-Registered Trademark-) is a national clinical laboratory
with annual revenues of $1.6 billion in 1998. 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 more
sophisticated technologies. Included in LabCorp's network of 25 major
laboratories are 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 rare analyses in the network. LabCorp's clients include
physicians, state and federal governments, managed care
organizations, hospitals, clinics, long-term care facilities,
companies, and other clinical laboratories.
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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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1999 1998
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STATEMENT OF OPERATIONS DATA:
Net sales $ 417.9 $ 387.7
Cost of sales 266.5 255.7
Selling, general and administrative 109.2 95.0
Amortization of intangibles and other assets 7.9 7.6
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Operating income 34.3 29.4
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Earnings before income taxes 22.8 18.8
Provision for income taxes 8.6 9.5
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Net earnings 14.1 9.3
Less preferred stock dividends and accretion
of mandatorily redeemable preferred stock 11.2 11.2
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Net income (loss) attributable to common
shareholders $ 2.9 $ (1.9)
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Basic and diluted earnings (loss) per
share (1) $ 0.02 $ (0.01)
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(1) Basic and diluted earnings (loss) per common share are based on
the weighted average number of shares outstanding during the three-
month period ended March 31, 1999, of 126,139,466 shares, and the
weighted average number of shares outstanding during the three-month
period ended March 31, 1998, of 124,397,655 shares.
(Unaudited)
Three Months Ended Year Ended
March 31, December 31,
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1999 1998
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BALANCE SHEET DATA:
Cash and cash equivalents $ 16.3 $ 22.7
Accounts receivable, net 383.6 375.4
Property, plant & equipment 260.4 259.2
Intangible assets, net 827.4 836.2
Other assets 150.7 147.4
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$ 1,638.4 $ 1,640.9
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Total bank debt $ 632.2 $ 643.8
Other liabilities 314.8 315.9
Redeemable preferred stock 533.3 526.8
Shareholders' equity 158.1 154.4
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$ 1,638.4 $ 1,640.9
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