Labcorp Holdings Inc. · NYSE:LH
Labcorp — Laboratory Corp of America Holdings — Q3 2014 Earnings Presentation
11 slides from Labcorp's earnings presentation, Oct 28, 2014
Slide 1: Laboratory Corporation of America 8-K Filed October 28, 2014
<LabCorp z= | aboratory Corporation of orp 8-K Filed October 28, 2014
Slide 2: Introduction
2 Introduction This slide presentation contains forward-looking statements which are 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. Actual results could diffe
Slide 3: Third Quarter Results
3 Third Quarter Results (In millions, except per share data) (1) See Reconciliation of non-GAAP Financial Measures on slides 7 and 8 2014 2013 +/(-) Revenue 1,551.8$ 1,462.2$ 6.1% Adjusted Operating Income (1) 252.7$ 248.3$ 1.8% Adjusted Operating Income Margin (1) 16.3% 17.0% (70) bp Adjusted EPS E
Slide 4: Cash Flow Trends
4 Cash Flow Trends • Free Cash Flow is a non-GAAP metric (see reconciliation of non-GAAP Financial Measures included herein) • 2011 Operating Cash Flow and Free Cash Flow calculation above does not include the $49.5 million Hunter Labs settlement • During 2013, government payment reductions and mole
Slide 5: Financial Guidance - 2014
5 Financial Guidance - 2014 Excluding the impact of amortization, restructuring and special items, and share repurchase activity after September 30, 2014, guidance for 2014 is: • Revenue growth: Approximately 3.0% • Adjusted EPS: $6.70 - $6.80 • Operating cash flow: $760 Million - $780 Million • Cap
Slide 6: Supplemental Financial Information
6 Supplemental Financial Information Q1 14 Q2 14 Q3 14 YTD Depreciation 38.3$ 39.6$ 38.9$ 116.8$ Amortization 21.0$ 22.0$ 18.3$ 61.3$ Capital expenditures 56.5$ 48.1$ 52.6$ 157.2$ Cash flows from operations 142.3$ 207.4$ 175.6$ 525.3$ Bad debt as a percentage of sales 4.6% 4.8% 4.6% 4.6% Effective i
Slide 7: Adjusted Operating Income (Three Months)
7 Reconciliation of non-GAAP Financial Measures Adjusted Operating Income 2014 2013 Operating income 241.4$ 244.6$ Restructuring and other special charges (1) (2) 5.8 3.7 Consulting fees 5.5 - Adjusted operating income 252.7$ 248.3$ Adjusted EPS Excluding Amortization Diluted earnings per common sha
Slide 8: Adjusted Operating Income (Nine Months)
8 Reconciliation of non-GAAP Financial Measures Adjusted Operating Income 2014 2013 Operating income 691.4$ 775.9$ Restructuring and other special charges (1) (2) 15.4 17.8 Consulting fees and CFO transition expenses 10.2 - Adjusted operating income 717.0$ 793.7$ Adjusted EPS Excluding Amortization
Slide 9: Footnotes
9 Reconciliation of non-GAAP Financial Measures - Footnotes 1) During the third quarter of 2014, the Company recorded net restructuring and special items of $5.8 million. The charges included $4.6 million in severance and other personnel costs along with $1.6 million in facility-related costs associ
Slide 10: Reconciliation of Free Cash Flow
10 Reconciliation of Free Cash Flow (1) 2011 cash flows from operations excludes the $49.5 million Hunter Labs settlement payment (2) Free cash flow represents cash flows from operations less capital expenditures TTM 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Cash flows from operations1 774.0
Slide 11: Laboratory Corporation of America
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Laboratory Corp of America Holdings — Q3 2014 Earnings Presentation on 6ix