Labcorp Holdings Inc. · NYSE:LH
Labcorp — Laboratory Corp of America Holdings — Q2 2012 Earnings Presentation
11 slides from Labcorp's earnings presentation, Jul 19, 2012
Slide 1: Laboratory Corporation of America 8-K Filed July 19, 2012
“LabCorp P= | aboratory Corporation of orp 8-K Filed July 19, 2012
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: Second Quarter Results
3 Second Quarter Results (In millions, except per share data) 2012 2011 +/(-) Revenue 1,423.4$ 1,403.3$ 1.4% Adjusted Operating Income (1) 280.3$ 279.6$ 0.3% Adjusted Operating Income Margin (1) 19.7% 19.9% (20) bp Adjusted EPS Excluding Amortization (1) 1.77$ 1.64$ 7.9% Operating Cash Flow 186.3$ 1
Slide 4: Cash Flow Trends
4 Cash Flow Trends Note: 2011 Free Cash Flow calculation above does not include the $49.5 million Hunter Labs settlement Free Cash Flow is a non-GAAP metric (see reconciliation of non-GAAP Financial Measures included herein) Free Cash Flow CAGR calculation uses 2001 data (2001 Free Cash Flow was $22
Slide 5: Financial Guidance - 2012
5 Financial Guidance - 2012 Excluding the impact of restructuring and other special charges and share repurchase activity after June 30, 2012, guidance for 2012 is: • Revenue growth: Approximately 2.0% - 3.0% • Adjusted EPS Excluding Amortization: $6.80 - $7.00 • Operating cash flow: Approximately $
Slide 6: Supplemental Financial Information
6 Supplemental Financial Information Q1 12 Q2 12 YTD Depreciation 34.7$ 34.9$ 69.6$ Amortization 21.4$ 20.7$ 42.0$ Capital expenditures 34.2$ 34.1$ 68.3$ Cash flows from operations 197.1$ 186.3$ 383.4$ Bad debt as a percentage of sales 4.4% 4.4% 4.4% Effective interest rate on debt: Zero coupon-subo
Slide 7: Adjusted Operating Income (Three Months Ended June 30)
7 Reconciliation of non-GAAP Financial Measures Adjusted Operating Income 2012 2011 Operating income 276.0$ 225.7$ Restructuring and other special charges (1) (2) 3.4 53.9 Acquisition fees and expenses (1) 0.9 - Adjusted operating income 280.3$ 279.6$ Adjusted EPS Excluding Amortization Diluted earn
Slide 8: Adjusted Operating Income (Six Months Ended June 30)
8 Reconciliation of non-GAAP Financial Measures Adjusted Operating Income 2012 2011 Operating income 563.1$ 461.5$ Restructuring and other special charges (1) (2) (0.2) 81.8 Acquisition fees and expenses (1) 0.9 - Adjusted operating income 563.8$ 543.3$ Adjusted EPS Excluding Amortization Diluted ea
Slide 9: Footnotes
9 Reconciliation of non-GAAP Financial Measures - Footnotes Note: GENZYME GENETICS and its logo are trademarks of Genzyme Corporation and used by Esoterix Genetic Laboratories, LLC, a wholly-owned subsidiary of LabCorp, under license. Esoterix Genetic Laboratories and LabCorp are operated independen
Slide 10: Reconciliation of Free Cash Flow
10 Reconciliation of Free Cash Flow (1) 2011 cash flows from operations excludes the $49.5 million Hunter Labs settlement payment (2) Free cash flow represents cash flows from operations less capital expenditures 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 Cash flows from operations1 905.1$ 88
Slide 11: ' sLabCorp
' sLabCorp = Laboratory Corporation of Ame!
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