Labcorp Holdings Inc. · NYSE:LH
Labcorp — Laboratory Corp of America Holdings — Q2 2016 Earnings Presentation
17 slides from Labcorp's earnings presentation, Jul 27, 2016
Slide 1: Second Quarter 2016 Supplemental Financial Information
8-K FILED JULY 27, 2016 SECOND QUARTER 2016 SUPPLEMENTAL FINANCIAL INFORMATION
Slide 2: Forward Looking Statement
1 FORWARD LOOKING STATEMENT This presentation contains forward-looking statements which are subject to change based on various important factors, including without limitation, competitive actions in the marketplace, adverse actions of governmental and other third-party payers and the results from th
Slide 3: Operating Segment Overview
2 LabCorp Diagnostics The LabCorp Diagnostics segment includes historical LabCorp business units, excluding its Clinical Trials operations (which are part of the Covance Drug Development segment), and including the Nutritional Chemistry and Food Safety operations acquired as part of the Covance acqu
Slide 4: Second Quarter Consolidated Results
3 SECOND QUARTER CONSOLIDATED RESULTS(1) (DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) (1) Results in 2015 include measurement period adjustments related to the acquisition of Covance (2) Adjusted Operating Income and Adjusted EPS exclude amortization, restructuring and special items (3) See Reconcil
Slide 5: Year-to-Date Consolidated Results
4 YEAR-TO-DATE CONSOLIDATED RESULTS(1) (DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) (1) Results in 2015 include measurement period adjustments related to the acquisition of Covance (2) Adjusted Operating Income and Adjusted EPS exclude amortization, restructuring and special items (3) See Reconcilia
Slide 6: Second Quarter Segment Results
5 SECOND QUARTER SEGMENT RESULTS(1) (DOLLARS IN MILLIONS) (1) The consolidated net revenue and adjusted operating income are presented net of inter-segment transaction eliminations (2) Adjusted Operating Income excludes amortization, restructuring and special items (3) See Reconciliation of non-GAAP
Slide 7: Year-to-Date Pro Forma Segment Results
6 YEAR-TO-DATE PRO FORMA SEGMENT RESULTS(1) (DOLLARS IN MILLIONS) (1) The consolidated net revenue and adjusted operating income are presented net of inter-segment transaction eliminations (2) Adjusted Operating Income excludes amortization, restructuring and special items (3) See Reconciliation of
Slide 8: Select Financial Metrics
7 SELECT FINANCIAL METRICS(1) (DOLLARS IN MILLIONS) 2Q15 3Q15 4Q15 1Q16 2Q16 Total Depreciation $70.5 $72.2 $72.7 $75.9 $77.9 Total Amortization(2) $44.6 $44.9 $43.9 $44.3 $45.3 Total Adjusted EBITDA(3) $464.3 $460.4 $443.6 $453.1 $506.7 Total Debt to Last Twelve Months Adjusted EBITDA(3) (4) 4.0x 3
Slide 9: Covance Drug Development: Select Financial Metrics
8 COVANCE DRUG DEVELOPMENT: SELECT FINANCIAL METRICS (DOLLARS IN MILLIONS) 2Q15 3Q15 4Q15 1Q16 2Q16 Net Revenue $644 $669 $691 $703 $722 Net Orders $737 $811 $816 $830 $818 Ending Backlog $6,595 $6,653 $6,738 $6,901 $7,061 Quarter Net Book to Bill 1.15x 1.21x 1.18x 1.18x 1.13x Trailing Twelve Month
Slide 10: Second Quarter 2016 Net Revenue Distribution
9 (1) Revenues recognized in over 30 currencies; the largest foreign currency accounts for less than 10% of total net revenue Segment Distribution LabCorp Diagnostics 69.7% Covance Drug Development 30.3% USA 80.9% Geographic Distribution Rest of World(1) 19.1% SECOND QUARTER 2016 NET REVENUE DISTRIB
Slide 11: Second Quarter 2016 Foreign Exchange Impact to Net Revenue
10 SECOND QUARTER 2016 FOREIGN EXCHANGE IMPACT TO NET REVENUE (DOLLARS IN MILLIONS) Year over Year Dollars % Growth Consolidated Net Revenue, as Reported $2,382 7.4% Foreign Exchange Impact $9 0.4% Net Revenue, Constant Currency $2,391 7.8% LabCorp Diagnostics Net Revenue, as Reported $1,660 5.4% Fo
Slide 12: Year-to-Date 2016 Foreign Exchange Impact to Pro Forma Net Revenue
11 YEAR-TO-DATE 2016 FOREIGN EXCHANGE IMPACT TO PRO FORMA NET REVENUE (DOLLARS IN MILLIONS) Year over Year Dollars % Growth Consolidated Net Revenue, as Reported $4,676 8.1% Foreign Exchange Impact $27 0.6% Net Revenue, Constant Currency $4,703 8.7% LabCorp Diagnostics Net Revenue, as Reported $3,25
Slide 13: 2016 Financial Guidance
12 2016 FINANCIAL GUIDANCE Excluding the impact of amortization, restructuring and special items, guidance for 2016 is: Prior Guidance (assumes foreign exchange rates effective as of March 31, 2016) Current Guidance (assumes foreign exchange rates effective as of June 30, 2016) Total net revenue gro
Slide 14: Reconciliation of Non-GAAP Financial Measures
13 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following consolidated results include Covance as of February 19, 2015; prior to February 19, 2015, all consolidated results exclude Covance Adjusted Operating Income 2016 2015 2016 2015 Operating Income 366.9$ 323.3$ 668.8$ 455.7$ Acquisition-rel
Slide 15: Reconciliation of Non-GAAP Financial Measures
14 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following consolidated results include Covance as of February 19, 2015; prior to February 19, 2015, all consolidated results exclude Covance Free Cash Flow: 2016 2015 2016 2015 Net cash provided by operating activities 343.6$ 396.7$ 466.6$ 309.8$
Slide 16: 1) During the second quarter of 2016, the Company recorded net of $6.6 million.
15 1) During the second quarter of 2016, the Company recorded net restructuring and special items of $6.6 million. The charges included $4.5 million in severance and other personnel costs along with $4.6 million in facility-related costs associated with facility closures and general integration init
Slide 17: During the first quarter of 2015, the Company recorded net restructuring and other special
16 During the first quarter of 2015, the Company recorded net restructuring and other special charges of $19.3 million. The charges included $3.2 million in severance and other personnel costs along with $1.3 million in costs associated with facility closures and general integration initiatives. In
Laboratory Corp of America Holdings — Q2 2016 Earnings Presentation on 6ix