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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 22, 2002
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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 9. Regulation FD Disclosure
Laboratory Corporation of America -Registered Trademark-
Holdings (LabCorp -Registered Trademark-)(NYSE:LH) announced results
for the quarter ended March 31, 2002.
Exhibits:
99.1 Press release of the Company dated April 22, 2002.
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
and Secretary
Date: April 22, 2002
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
Pamela Sherry
Investor@labcorp.com
Shareholder Direct: 800-LAB-0401
www.labcorp.com
LABORATORY CORPORATION OF AMERICA-REGISTERED TRADEMARK-
REPORTS FIRST QUARTER 2002 RESULTS
Double-Digit Revenue Growth Fuels 33 Percent Increase in EPS;
Announces Two-For-One Stock Split
Burlington, NC, April 22, 2002 - Laboratory Corporation of America-Registered
Trademark- Holdings (LabCorp-Registered Trademark-) (NYSE: LH) today announced
results for the quarter ended March 31, 2002. Net sales were $590.0 million,
operating income was $116.4 million, and net income was $65.8 million. This
compares with net sales of $525.4 million, operating income of $87.3 million,
and net income of $43.5 million in the first quarter of 2001. The 12.3 percent
increase in net sales is the result of increases of approximately 8.3 percent
in volume and 4.0 percent in price. Diluted earnings per share for the
quarter were $0.93, versus a comparable of $0.70 for the same quarter in 2001.
"There was one less revenue day in this quarter than in the same quarter in
2001," said Thomas P. Mac Mahon, chairman and chief executive officer. "On a
per day basis, revenues increased approximately 14 percent, with a 10 percent
contribution from volume growth and a 4.0 percent increase from improved
pricing."
Earnings before interest, taxes, depreciation and amortization (EBITDA) were
$137.6 million for the first quarter of 2002, or 23.3 percent of net sales,
versus $110.3 million, or 21.0 percent of net sales, for the same period in
2001. Days sales outstanding (DSO) were 60 days. Operating cash flow
increased 74 percent to $112.2 million. Cash on hand was $245.0 million.
"Our strong financial performance has been driven by the successful
implementation of our strategic plan, with particular emphasis on molecular
and other esoteric tests, which now represent approximately 23 percent of our
revenues," said Mr. Mac Mahon. "Our cash generation is substantial, enabling
us the flexibility to selectively focus on those strategies that best position
us for long-term sustained growth. We continue to evaluate a variety of
opportunities for appropriate uses of our funds, such as acquisitions,
introducing new tests, new licensing partnerships and making strategic capital
investments to facilitate our continued market expansion."
The Company also announced that its Board has approved a two-for-one stock
split. The stock split will be effected by the issuance on May 10, 2002 of a
stock dividend of one new share of common stock for each share of common stock
held by shareholders of record on May 3, 2002.
A live broadcast of LabCorp's quarterly conference call on April 23, 2002 will
be available online at www.labcorp.com or at www.streetevents.com beginning at
9:00 A.M. ET, with an online rebroadcast continuing through July 15, 2002. The
live call at 9:00 A.M. is also available in a listen-only mode by dialing 646-
862-1056. A telephone replay of the call will be available through April 30,
2002 and can be heard by dialing 800-633-8284 (858-812-6440 for international
callers). The access code for the replay is 204-95-683.
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 $2.2
billion in 2001 and over 19,000 employees, the Company offers more than 4,000
clinical tests ranging from routine 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 ViroMed 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, 2001 and subsequent SEC filings.
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LABORATORY CORPORATION OF AMERICA HOLDINGS
Summarized Financial Information
(Dollars in millions, except per share data)
Three Months Ended
March 31,
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(unaudited)
2002 2001
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Statement of Operations Data:
Net sales $ 590.0 $ 525.4
Cost of sales 331.6 303.8
Selling, general and administrative 136.9 125.0
Amortization of intangibles and other assets 5.1 9.3
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Operating income 116.4 87.3
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Other income (expense) 0.2 0.6
Interest expense (4.2) (8.8)
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Earnings before income taxes 112.4 79.1
Provision for income taxes (46.6) (35.6)
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Net earnings 65.8 43.5
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Diluted earnings per share $ 0.93 $ 0.62
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Pro forma diluted earnings per share(*) $ 0.93 $ 0.70
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Weighted-average shares outstanding - diluted 71.1 70.3
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(*) Pro forma effect of eliminating goodwill amortization in 2001,
consistent with new accounting rules adopted in 2002, assuming
accounting rules were adopted January 1, 2001.
LABORATORY CORPORATION OF AMERICA HOLDINGS
Summarized Financial Information (continued)
(Dollars in millions)
(Unaudited)
March 31, December 31,
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2002 2001
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Balance Sheet Data:
Cash and cash equivalents $ 245.0 $ 149.2
Accounts receivable, net 390.4 365.5
Property, plant & equipment 309.5 309.3
Intangible assets, net 968.9 968.5
Other assets 138.5 137.1
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$ 2,052.3 $ 1,929.6
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Total bank debt $ -- $ --
Zero coupon - subordinated notes 505.3 502.8
Other liabilities 374.9 341.3
Shareholders' equity 1,172.1 1,085.5
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$ 2,052.3 $ 1,929.6
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