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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
July 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 June 30, 2001.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibit
20 Press release of the Company dated July 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: July 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
Investor@labcorp.com
LABORATORY CORPORATION OF AMERICA-REGISTERED
TRADEMARK- ANNOUNCES
SECOND QUARTER RESULTS
Continued Price and Volume Gains Generate Record Profits
Burlington, NC, July 23, 2001 - Laboratory Corporation of America-
Registered Trademark- Holdings (LabCorp-Registered Trademark-)
(NYSE: LH) today announced results for the quarter ended June 30,
2001.
Second Quarter Results
Net sales were $549.7 million, operating income was $102.6 million,
and net income was $52.1 million. This compares with net sales of
$482.4 million, operating income of $71.3 million, and net income of
$32.7 million in the second quarter of 2000. Diluted earnings per
share for the quarter were $0.74, versus $0.47 for the same quarter
in 2000. The 14.0 percent increase in net sales is the result of
increases in both price and volume of approximately 7 percent each.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) were $128.1 million for the second quarter, or 23.3 percent
of net sales, versus $93.1 million, or 19.3 percent of net sales,
for the same period in 2000. Days sales outstanding (DSO) decreased
to 64 days.
"LabCorp achieved significant success in every key strategic area
during the quarter," said Thomas P. Mac Mahon, chairman and chief
executive officer. "Strong pricing and volume growth reflect
internally driven gains across all business segments. We succeeded
in major efforts to expand profitable managed care relationships,
make selected acquisitions and enter into strategic technology
partnerships. These activities are a fundamental part of our
plan to leverage LabCorp's national network with our capabilites in
genomic and esoteric testing."
Six Month Results
For the six-month period ended June 30, 2001, LabCorp generated net
sales of $1,075.2 million, operating income of $189.9 million, and
net income of $95.6 million. For the same period in 2000, net sales
were $945.1 million, operating income was $128.7 million, and
net income $58.4 million. Diluted earnings per common share were
$1.36, compared to $0.85 in the 2000 period. The revenue increase
of 13.8 percent consists of increases of approximately 7.3 percent
in price and 6.5 percent in volume. EBITDA was $238.4 million, or
22.2 percent of net sales, versus $171.4 million, or 18.1 percent of
net sales, for the comparable period in 2000.
A live broadcast of LabCorp's quarterly conference call on July 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 October 15,
2001. The live call at 9:30 a.m. is also available in a listen-only
mode by dialing 212-676-4910. A telephone replay of the call will be
available through July 30, 2001 and can be heard by dialing 800-
633-8284 (858-812-6440 for international callers). The access code
for the replay is 192-99-658.
The first national 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
19,000 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, North Carolina,
offers state-of-the-art molecular gene-based testing in infectious
disease, oncology and genetics. Its National Genetics Institute in
Los Angeles is an industry leader in developing novel, highly
sensitive polymerase chain reaction (PCR) methods for testing
hepatitis C and other blood borne infectious agents. LabCorp's
Minneapolis-based Viro-Med offers molecular microbial testing using
real time PCR platforms, while 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
June 30,
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2001 2000
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Statement of Operations Data:
Net sales $ 549.7 $ 482.4
Cost of sales 308.8 281.2
Selling, general and administrative 127.4 122.1
Amortization of intangibles and other assets 10.9 7.8
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Operating income 102.6 71.3
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Other (income) expense 0.3 1.4
Interest expense 7.6 9.3
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Earnings before income taxes 94.7 60.6
Provision for income taxes (42.6) (27.9)
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Net earnings 52.1 32.7
Less preferred stock dividends and accretion
of mandatorily redeemable preferred stock -- 19.8
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Net income attributable to common
Shareholders $ 52.1 $ 12.9
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Diluted earnings per share $ 0.74 $ 0.47
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Weighted-average shares outstanding - diluted 70.4 69.4
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LABORATORY CORPORATION OF AMERICA HOLDINGS
Summarized Financial Information
(Dollars in millions, except per share data)
(Unaudited)
Six Months Ended
June 30,
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2001 2000
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Statement of Operations Data:
Net sales $1,075.2 $ 945.1
Cost of sales 612.7 560.4
Selling, general and administrative 252.4 240.5
Amortization of intangibles and other assets 20.2 15.5
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Operating income 189.9 128.7
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Other (income) expense (0.3) 0.7
Interest expense 16.3 19.8
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Earnings before income taxes 173.9 108.2
Provision for income taxes (78.3) (49.8)
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Net earnings 95.6 58.4
Less preferred stock dividends and accretion
of mandatorily redeemable preferred stock -- 34.6
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Net income attributable to common
Shareholders $ 95.6 $ 23.8
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Diluted earnings per share $ 1.36 $ 0.85
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Weighted-average shares outstanding - diluted 70.4 68.4
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(Unaudited)
June 30, December 31,
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2001 2000
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Balance Sheet Data:
Cash and cash equivalents $ 20.5 $ 48.8
Accounts receivable, net 390.8 368.0
Property, plant & equipment 283.8 272.8
Intangible assets, net 948.9 865.7
Other assets 119.9 111.6
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$ 1,763.9 $ 1,666.9
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Total bank debt $ 462.5 $ 478.5
Other liabilities 321.1 311.0
Shareholders' equity 980.3 877.4
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$ 1,763.9 $ 1,666.9
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