Labcorp Holdings Inc. · NYSE:LH
Labcorp — Laboratory Corp of America Holdings — Q4 2014 Earnings Presentation
11 slides from Labcorp's earnings presentation, Feb 20, 2015
Slide 1: Laboratory Corporation of America 8-K Filed February 20, 2015
“LabCorp P= | aboratory Corporation of orp 8-K Filed February 20, 2015
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, adverse actions of governmental and other third-party payers and the results from the Compa
Slide 3: Fourth Quarter Results
3 Fourth Quarter Results (In millions, except per share data) (1) See Reconciliation of non-GAAP Financial Measures on slides 7 - 10 2014 2013 +/(-) Revenue 1,512.7$ 1,437.0$ 5.3% Adjusted Operating Income (1) 234.6$ 219.0$ 7.1% Adjusted Operating Income Margin (1) 15.5% 15.2% 30 bp Adjusted EPS Exc
Slide 4: Cash Flow Trends
4 Cash Flow Trends • Free Cash Flow is a non-GAAP metric (see reconciliation of non-GAAP Financial Measures included herein) • 2011 Operating Cash Flow and Free Cash Flow calculation above does not include the $49.5 million Hunter Labs settlement • During 2013, government payment reductions and mole
Slide 5: Financial Guidance - 2015
5 Financial Guidance - 2015 Excluding the impact of amortization, restructuring and special items, guidance for 2015 is: • Total revenue growth: Approximately 40% - 44%(1) • Clinical lab business revenue growth: Approximately 3% - 5% • Covance business revenue growth: Approximately 4% - 6%(2) • Adju
Slide 6: Other Financial Information
Q1 14 Q2 14 Q3 14 Q4 14 2014 Depreciation 38.3$ 39.6$ 38.9$ 40.8$ 157.6$ Amortization 21.0$ 22.0$ 18.3$ 15.4$ 76.7$ Capital expenditures 56.5$ 48.1$ 52.6$ 46.3$ 203.5$ Cash flows from operations 142.3$ 207.4$ 175.6$ 213.7$ 739.0$ Bad debt as a percentage of sales 4.6% 4.8% 4.6% 4.6% 4.6% Effective i
Slide 7: Adjusted Operating Income and Adjusted EPS - Three Months
7 Reconciliation of non-GAAP Financial Measures Adjusted Operating Income 2014 2013 Operating income 219.0$ 215.0$ Restructuring and other special charges (1) (2) 2.4 4.0 Consulting fees and CFO transition expenses 13.2 - Adjusted operating income 234.6$ 219.0$ Adjusted EPS Excluding Amortization Di
Slide 8: Adjusted Operating Income and Adjusted EPS - Year Ended
8 Reconciliation of non-GAAP Financial Measures Adjusted Operating Income 2014 2013 Operating income 910.4$ 990.9$ Restructuring and other special charges (1) (2) 17.8 21.8 Consulting fees and CFO transition expenses 23.4 - Adjusted operating income 951.6$ 1,012.7$ Adjusted EPS Excluding Amortizatio
Slide 9: Notes to Non-GAAP Reconciliations
1) During the fourth quarter of 2014, the Company recorded net restructuring and special items of $2.4 million. The charges included $0.7 million in severance and other personnel costs along with $1.7 million in facility-related costs associated with facility closures and general integration initiat
Slide 10: Reconciliation of Free Cash Flow
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Cash flows from operations1 739.0$ 818.7$ 841.4$ 905.1$ 883.6$ 862.4$ 780.9$ 709.7$ 632.3$ 574.2$ 538.1$ Capital expenditures (203.5) (202.2) (173.8) (145.7) (126.1) (114.7) (156.7) (142.6) (115.9) (93.6) (95.0) Free cash flow2 535.5 616.5 667.6
Slide 11: | SLabCorp
| SLabCorp = Laboratory Corporation of Ame!
Laboratory Corp of America Holdings — Q4 2014 Earnings Presentation on 6ix