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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 23, 2001
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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
Laboratory Corporation of America -Registered Trademark-
Holdings (LabCorp -Registered Trademark-)(NYSE:LH) announced results
for the quarter ended March 31, 2001. The Company also announced that
its Board has approved a two-for-one stock split subject to shareholder
approval of an increase in the number of authorized shares of common
stock.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibit
20 Press release of the Company dated April 23, 2001.
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: April 23, 2001
Laboratory Corporation of America-Registered Trademark- Holdings
358 South Main Street
Burlington, NC 27215
Telephone: 336-584-5171
FOR IMMEDIATE RELEASE
Contact: 336-436-4855 Shareholder Direct: 800-LAB-0401
Pamela Sherry www.labcorp.com
LABORATORY CORPORATION OF AMERICA-REGISTERED
TRADEMARK- ANNOUNCES FIRST QUARTER RESULTS
Reports Record Profits Driven by Strong Sales; Announces Two-for-
One Stock Split
Burlington, NC, April 23, 2001 - Laboratory Corporation of America-
Registered Trademark- Holdings LabCorp-Registered Trademark-) (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 $43.5 million. 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 the comparable
2000 quarter. The 13.6 percent increase in net sales is the result
of 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 in 2000. Days sales outstanding (DSO) for the
quarter decreased to 67 days. The balance owed on LabCorp's term
loan was reduced to $445.5 million, from $478.5 million at the end
of 2000, and the balance on its $450 million revolving line of
credit facility remained at zero.
"Our financial performance continues to be driven by the
implementation of our strategic initiatives for growth," said Thomas
P. Mac Mahon, chairman and chief executive officer. "Increases in
high-value testing from physicians and managed care companies, as a
result of our emphasis on genomic and esoteric testing, have led the
way in this expansion."
The Company also announced that its Board has approved a two-for-one
stock split, subject to shareholder approval of an increase in the
number of authorized shares of common stock. The stock split will
be effected by the issuance on June 11, 2001, of a stock dividend of one
new share of common stock for each share of common stock held by
shareholders of record on June 4, 2001. Shareholders will vote on
amending the Company's certificate of incorporation to increase the
number of authorized common shares to 265,000,000 at the 2001
Annual Shareholder's Meeting to be held May 24, 2001 in Burlington,
NC. The record date for the annual meeting is April 18, 2001.
A live broadcast of LabCorp's quarterly conference call on April 24,
2001 will be available online at www.labcorp.com or at
www.streetevents.com beginning at 9:30 a.m. Eastern Time, with an
online rebroadcast continuing through July 15, 2001. The live call
at 9:30 a.m. is also available in a listen-only mode by dialing 212-
896-6010. A telephone replay of the call will be 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 is 184-
85-860.
The first clinical laboratory to fully embrace genomic testing,
Laboratory Corporation of America-Registered Trademark- Holdings
(LabCorp-Registered Trademark-) has been a pioneer in
commercializing new diagnostic technologies. As a national
laboratory with annual revenues of $1.9 billion in 2000 and over
18,000 employees, the company offers more than 4,000 clinical tests
ranging from simple blood analyses to sophisticated molecular
diagnostics. Serving over 200,000 clients nationwide, LabCorp
leverages its expertise in innovative clinical testing technology
with its 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.
LabCorp's National Genetics Institute in Los Angeles is an industry
leader in developing novel, highly sensitive PCR methods for testing
hepatitis C and other infectious agents, and its 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,
2000 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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2001 2000
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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
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Operating income 87.3 57.4
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Other (income) expense (0.6) (0.7)
Interest expense 8.8 10.5
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Earnings before income taxes 79.1 47.6
Provision for income taxes (35.6) (21.9)
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Net earnings 43.5 25.7
Less preferred stock dividends and accretion
of mandatorily redeemable preferred stock -- 14.9
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Net income attributable to common
Shareholders $ 43.5 $ 10.8
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Diluted earnings per share $ 1.24 $ 0.75
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Weighted-average shares outstanding - diluted 35.2 34.4
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(Unaudited)
Three Months Ended Year Ended
March 31, December 31,
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2001 2000
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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
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$ 1,703.4 $ 1,666.9
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Total bank debt $ 445.5 $ 478.5
Other liabilities 334.2 311.0
Redeemable preferred stock -- --
Shareholders' equity 923.7 877.4
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$ 1,703.4 $ 1,666.9
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