Labcorp Holdings Inc. · NYSE:LH
Labcorp — Q1 2020 Earnings Presentation
15 slides from Labcorp's earnings presentation, Apr 29, 2020
Slide 1: First Quarter 2020 Supplemental Financial Information
FIRST QUARTER 2020 SUPPLEMENTAL FINANCIAL INFORMATION APRIL 29, 2020
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation of Laboratory Corporation of America Holdings (the “Company”) contains forward-looking statements, including, but not limited to, statements with respect to expectations for 2020 and the related assumptions, the impact of va
Slide 3: Use of Estimated COVID-19 Impact and Adjusted Measures
USE OF ESTIMATED COVID-19 IMPACT AND ADJUSTED MEASURES The Company has provided in this presentation the Company's estimates for the net impact from COVID-19 on the Company's revenue, operating income, operating margin, adjusted EPS, and Diagnostics' volume. These estimates were determined using met
Slide 4: First Quarter Consolidated Results
FIRST QUARTER CONSOLIDATED RESULTS (DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) 1Q20 1Q19 % Change Revenue $2,823.8 $2,791.2 1.2% (2) Adjusted Operating Income (1) $365.9 $411.4 (11.1%) Adjusted Operating Margin 12.9% 14.7% (190 bps) Adjusted EPS (1) $2.37 $2.62 (9.5%) Operating Cash Flow $203.8 $16
Slide 5: Pro Forma Segment Results
FIRST QUARTER PRO FORMA SEGMENT RESULTS (DOLLARS IN MILLIONS) 1Q20 1Q19 % Change Revenue LabCorp Diagnostics (1) $1,702.0 $1,722.0 (1.2%) Covance Drug Development $1,143.8 $1,074.7 6.4 % Total Revenue(2) $2,823.8 $2,791.2 1.2 % Adjusted Operating Income(3) LabCorp Diagnostics $254.2 $310.4 (18.1%) A
Slide 6: Results: Estimated Net Impact of COVID-19 Pandemic
FIRST QUARTER RESULTS: ESTIMATED NET IMPACT OF COVID-19 PANDEMIC(1) Reported Estimated Net Estimated Growth Rates Growth Rates COVID-19 Impact Excluding COVID-19(2) LabCorp Enterprise Total Revenue 1.2% (4.9%) 6.1% Organic Revenue (1.8%) (4.9%) 3.1% Adjusted Operating Income (11.1%) (17.6%) 6.5% Adj
Slide 7: Select Financial Metrics
SELECT FINANCIAL METRICS (DOLLARS IN MILLIONS) 1Q19 2Q19 3Q19 4Q19 1Q20 Total Depreciation $78.3 $77.5 $80.6 $85.1 $82.1 Total Amortization(1) $57.1 $60.2 $61.7 $64.2 $62.3 (2) Total Adjusted EBITDA $493.1 $527.6 $513.6 $509.5 $449.3 (2) Total Debt to Last Twelve Months Adjusted EBITDA 3.0x 3.4x 3.3
Slide 8: Covance Drug Development: Select Financial Metrics
COVANCE DRUG DEVELOPMENT: SELECT FINANCIAL METRICS(1) Trailing Twelve Month (TTM) Results Net Orders Net Book-to-Bill TTM Ending March 31, 2020 $5.8 billion 1.26x TTM Ending December 31, 2019 $5.9 billion 1.29x TTM Ending September 30, 2019 $5.7 billion 1.28x TTM Ending June 30, 2019 $5.5 billion 1.
Slide 9: 2020 Revenue Distribution
FIRST QUARTER 2020 REVENUE DISTRIBUTION Segment Distribution Covance Drug Development 40.2% Geographic Distribution (2) LabCorp Rest of World Diagnostics (1) 23.4% 59.8% USA 76.6% (1) The LabCorp Diagnostics revenue used for the segment distribution calculation excludes the $17 million increase in a
Slide 10: 2020 Foreign Exchange Impact to Revenue
FIRST QUARTER 2020 FOREIGN EXCHANGE IMPACT TO REVENUE(1) (DOLLARS IN MILLIONS) Year over Year Dollars % Growth Consolidated Revenue, as Reported $2,824 1.2% Foreign Exchange Impact $1 —% Revenue, Constant Currency $2,825 1.2% LabCorp Diagnostics Revenue, as Reported $1,702 (1.2%) Foreign Exchange Im
Slide 11: Supplemental Information on LabCorp's Current Operating Environment
SUPPLEMENTAL INFORMATION ON LABCORP'S CURRENT OPERATING ENVIRONMENT COVID-19 Related Some Actions LabCorp is Taking Information on Impacts / Challenges to Mitigate COVID-19 Challenges LabCorp's Liquidity • LabCorp Diagnostics • Significantly increasing capacity for its Serological • Expect to delive
Slide 12: Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – ADJUSTED EBITDA (DOLLARS IN MILLIONS) 1Q19 2Q19 3Q19 4Q19 1Q20 Operating Income $318.2 $335.7 $339.9 $336.4 ($192.6) Add: Restructuring and other special charges 20.6 13.6 14.2 6.2 25.4 Other special charges(1) 15.5 37.4 14.7 15.2 470.8 Depreciation 78
Slide 13: Reconciliation of Non-GAAP Income Statement
RECONCILIATION OF NON-GAAP INCOME STATEMENT (DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) GAAP Non-GAAP Three Months Ended Three Months Ended March 31, March 31, 2020 2019 2020 2019 Revenues $ 2,823.8 $ 2,791.2 $ 2,823.8 $ 2,791.2 Cost of revenues 2,095.8 2,001.5 2,091.3 2,001.5 Adjustments impacting
Slide 14: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(1) (DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) Three Months Ended March 31, Adjusted Operating Income 2020 2019 Operating Income $ (192.6) $ 318.2 (a) Amortization of intangibles and other assets 62.3 57.1 Restructuring and other charges (b) 25.4 20.6 A
Slide 15: Reconciliation of Non-GAAP Financial Measures – Footnotes
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – FOOTNOTES (a) Amortization of intangible assets acquired as part of business acquisitions. (b) Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions within the organization in connection wi