Labcorp Holdings Inc. · NYSE:LH
Labcorp — Laboratory Corp of America Holdings — Q1 2015 Earnings Presentation
16 slides from Labcorp's earnings presentation, Apr 27, 2015
Slide 1: First Quarter 2015 Supplemental Financial Information
8-K FILED APRIL 27, 2015 FIRST QUARTER 2015 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 LabCorp Diagnostics includes all of LabCorp’s legacy business except for its clinical trial services business, which is now part of Covance Drug Development, and includes the nutritional chemistry and food safety business, which was previously part of Covance. Covance Drug Deve
Slide 4: First Quarter Consolidated Results
3 FIRST QUARTER CONSOLIDATED RESULTS (DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) (1) Adjusted Operating Income and Adjusted EPS exclude amortization, restructuring and special items (2) See Reconciliation of non-GAAP Financial Measures on slides 13 - 15 (3) Operating cash flow in the first quarter
Slide 5: First Quarter Pro Forma Segment Results
4 FIRST QUARTER PRO FORMA SEGMENT RESULTS (DOLLARS IN MILLIONS) (1) Adjusted Operating Income excludes amortization, restructuring and special items (2) See Reconciliation of non-GAAP Financial Measures on slides 13 - 15 Pro forma results assume that the acquisition of Covance closed on January 1 of
Slide 6: Select Financial Metrics
5 SELECT FINANCIAL METRICS (DOLLARS IN MILLIONS) 1Q14 2Q14 3Q14 4Q14 1Q15 Total Depreciation $38.3 $39.6 $38.9 $40.8 $56.2 Total Amortization $21.0 $22.0 $18.3 $15.4 $31.4 Total Adjusted EBITDA(1) $273.5 $319.2 $314.2 $295.1 $360.1 Total Debt to Last Twelve Months Adjusted EBITDA(1) (2) 2.5x 2.5x 2.
Slide 7: Covance Drug Development: Select Financial Metrics
6 COVANCE DRUG DEVELOPMENT: SELECT FINANCIAL METRICS (DOLLARS IN MILLIONS) Backlog at 12/31/14 $6,793 Adjustment(1) ($522) Backlog at 1/1/15 $6,271 First Quarter 2015 Covance Drug Development Net Revenue(2) ($625) First Quarter 2015 Net Orders $855 Foreign Exchange Impact ($64) Backlog at 3/31/15 $6
Slide 8: First Quarter 2015 Pro Forma Net Revenue Distribution
7 (1) Revenues recognized in over 30 currencies; the largest foreign currency accounts for less than 5% of total net revenue Segment Distribution LabCorp Diagnostics 70.4% Covance Drug Development 29.6% USA 80.4% Geographic Distribution Rest of World(1) 19.6% FIRST QUARTER 2015 PRO FORMA NET REVENUE
Slide 9: First Quarter 2015 Foreign Exchange Impact to Pro Forma Net Revenue
8 FIRST QUARTER 2015 FOREIGN EXCHANGE IMPACT TO PRO FORMA NET REVENUE(1) (DOLLARS IN MILLIONS) Year over Year Dollars % Growth Consolidated Net Revenue, as Reported $2,108 2.8% Foreign Exchange Impact $35 1.7% Net Revenue, Constant Currency $2,143 4.5% LabCorp Diagnostics Net Revenue, as Reported $1
Slide 10: 2015 Financial Guidance
9 2015 FINANCIAL GUIDANCE Excluding the impact of amortization, restructuring and special items, guidance for 2015 is: Prior Guidance (assumes foreign exchange rates effective as of January 31, 2015) Current Guidance (assumes foreign exchange rates effective as of March 31, 2015) Total net revenue g
Slide 11: 2014 Segment Net Revenue Reconciliation
10 2014 SEGMENT NET REVENUE RECONCILIATION (DOLLARS IN MILLIONS) (1) Adjustments include the removal of LabCorp’s legacy clinical trial services business and the addition of Covance’s nutritional chemistry and food safety business. (2) Adjustments include the addition of LabCorp’s legacy clinical tr
Slide 12: 2014 Segment Adjusted Operating Income Reconciliation
11 2014 SEGMENT ADJUSTED OPERATING INCOME RECONCILIATION (DOLLARS IN MILLIONS) (1) Adjustments include the removal of unallocated corporate expenses and LabCorp’s legacy clinical trial services business, as well as the addition of Covance’s nutritional chemistry and food safety business. Unallocated
Slide 13: 2014 Pro Forma Net Revenue by Geography
12 2014 PRO FORMA NET REVENUE BY GEOGRAPHY (DOLLARS IN MILLIONS) 1Q14 2Q14 3Q14 4Q14 FY14 U.S. Net Revenue $1,616 $1,710 $1,742 $1,719 $6,786 % of total 78.8% 79.3% 79.9% 80.1% 79.5% ROW Net Revenue $435 $446 $437 $428 $1,747 % of total 21.2% 20.7% 20.1% 19.9% 20.5% Total Net Revenue $2,051 $2,156 $
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 2015 2014 Operating Income 130.2$ 203.3$ Acquisition-related costs 113.4 - Restr
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: 2015 2014 Net cash provided by (used for) operating activities (86.9)$ 142.3$ Less: Capita
Slide 16: Reconciliation of Non-GAAP Financial Measures - Footnotes
15 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - FOOTNOTES 1) 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 $1.0 million in costs associated wi
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