Labcorp Holdings Inc. · NYSE:LH
Labcorp — Laboratory Corp of America Holdings — Q1 2016 Earnings Presentation
14 slides from Labcorp's earnings presentation, Apr 25, 2016
Slide 1: First Quarter 2016 Supplemental Financial Information
8-K FILED APRIL 25, 2016 FIRST 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: First Quarter Consolidated Results
3 FIRST 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 Reconcili
Slide 5: First Quarter Pro Forma Segment Results
4 FIRST QUARTER 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 6: Select Financial Metrics
5 SELECT FINANCIAL METRICS(1) (DOLLARS IN MILLIONS) 1Q15 2Q15 3Q15 4Q15 1Q16 Total Depreciation $54.3 $70.5 $72.2 $72.7 $75.9 Total Amortization(2) $31.1 $44.5 $44.9 $43.9 $44.3 Total Adjusted EBITDA(3) $360.0 $463.4 $460.4 $443.6 $453.1 Total Debt to Last Twelve Months Adjusted EBITDA(3) (4) 4.2x 4
Slide 7: Covance Drug Development: Select Financial Metrics
6 COVANCE DRUG DEVELOPMENT: SELECT FINANCIAL METRICS(1) (DOLLARS IN MILLIONS) 1Q15 2Q15 3Q15 4Q15 1Q16 Net Revenue $625 $644 $669 $691 $703 Net Orders $855 $737 $811 $816 $830 Ending Backlog $6,437 $6,595 $6,653 $6,738 $6,901 Quarter Net Book to Bill 1.37x 1.15x 1.21x 1.18x 1.18x Trailing Twelve Mon
Slide 8: First Quarter 2016 Net Revenue Distribution
7 (1) Revenues recognized in over 30 currencies; the largest foreign currency accounts for less than 10% of total net revenue Segment Distribution LabCorp Diagnostics 69.3% Covance Drug Development 30.7% USA 80.7% Geographic Distribution Rest of World(1) 19.3% FIRST QUARTER 2016 NET REVENUE DISTRIBU
Slide 9: First Quarter 2016 Foreign Exchange Impact to Pro Forma Net Revenue
8 FIRST QUARTER 2016 FOREIGN EXCHANGE IMPACT TO PRO FORMA NET REVENUE (DOLLARS IN MILLIONS) Year over Year Dollars % Growth Consolidated Net Revenue, as Reported $2,294 8.8% Foreign Exchange Impact $18 0.8% Net Revenue, Constant Currency $2,312 9.7% LabCorp Diagnostics Net Revenue, as Reported $1,59
Slide 10: 2016 Financial Guidance
9 2016 FINANCIAL GUIDANCE Excluding the impact of amortization, restructuring and special items, guidance for 2016 is: Prior Guidance (assumes foreign exchange rates effective as of January 31, 2016) Current Guidance (assumes foreign exchange rates effective as of March 31, 2016) Total net revenue g
Slide 11: Reconciliation of Non-GAAP Financial Measures
10 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following consolidated results include Covance as of February 19, 2015; prior to February 19, 2015, all consolidated results exclude Covance Adjusted Operating Income 2016 2015 Operating Income 301.9$ 132.4$ Acquisition-related costs 2.9 113.4 Res
Slide 12: Reconciliation of Non-GAAP Financial Measures
11 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: 2015 2014 Net cash provided by (used for) operating activities 123.0$ (86.9)$ Less: Capita
Slide 13: Notes to Non-GAAP Reconciliation: Restructuring and Special Charges
12 1) During the first quarter of 2016, the Company recorded net restructuring and other special charges of $19.2 million. The charges included $4.5 million in severance and other personnel costs along with $17.0 million in costs associated with facility closures and general integration initiatives.
Slide 14: Notes to Non-GAAP Reconciliation: Adjusted EPS and Cash Flow
13 3) The Company continues to grow the business through acquisitions and uses Adjusted EPS Excluding Amortization as a measure of operational performance, growth and shareholder returns. The Company believes adjusting EPS for amortization provides investors with better insight into the operating pe
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