UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

          April 25, 2006           
(Date of earliest event reported)

LABORATORY CORPORATION OF
AMERICA HOLDINGS


(Exact Name of Registrant as Specified in its Charter)
         
DELAWARE   1-11353   13-3757370

 
 
 
 
 
(State or other jurisdiction
of Incorporation)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)
         
358 SOUTH MAIN STREET,
BURLINGTON, NORTH CAROLINA
  27215   336-229-1127

 
 
 
 
 
(Address of principal executive offices)   (Zip Code)
  (Registrant's telephone number including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01. Regulation FD Disclosure

Summary information of the Company dated April 25, 2006.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

         
  Laboratory Corporation of America Holdings
(Registrant)

 
 
Date: April 25, 2006   By:   /s/Bradford T. Smith    
    Bradford T. Smith, Executive Vice President
and Secretary
 
 
       
 

8-K Filed April 25, 2006

 

            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 and
adverse actions of governmental and other third-party
payors.  Actual results could differ materially from
those suggested by these forward-looking statements.
Further information on potential factors that could
affect the Company’s financial results is included in
the Company’s Form 10-K for the year ended
December 31, 2005, and subsequent filings.

2

 

The Clinical Laboratory Testing
Market - $40 billion Annually

Independent clinical lab share
is $16 billion

Represents 2% to 3% of all
health care spending

Influences /directs
approximately 80% of health
care spending

Rapidly evolving technology,
emphasis on preventative
medicine and aging of
population are all driving
growth

Has grown at a CAGR of
between 5% and 6%

Source:    Company estimates, industry reports and 2005 revenue for LabCorp.

3

 

Profile of LabCorp

A leader in the esoteric and genomic testing
market and second-largest clinical laboratory
company in North America

Offers a broad range of routine and
esoteric/genomic tests

Conducts approximately 1.1 million tests daily on
more than 360,000 specimens

Provides lab services to physicians and other
health care providers

Approximately 24,000 employees nationwide

4

 

Primary Testing Locations

Primary LabCorp Testing Locations

Corporate Headquarters

Burlington, NC

5

 

LabCorp’s Investment and
Performance Fundamentals

History of Strong Financial
Performance

Significant Cash Generator

Industry leading EBITDA margins

Strong Balance Sheet

Investment Grade Credit Ratings

6

 

Net Sales (in millions)

7

 

EBITDA Margin

(1) Excluding the impact in 2005 of restructuring and other special charges, and a non-recurring investment loss.

8

 

EPS

(1) Excluding the $0.09 per diluted share impact in 2005 of restructuring and other special charges, and a non-recurring investment loss.

9

 

Operating Cash Flow (in millions)

(1) Includes approximately $50 million of benefit from one-time tax credits recorded in 2003.

(1)

10

 

LabCorp’s Strategy

             To lead the industry in achieving long-
term
growth and profitability by
strengthening our
nationwide core
testing
business and expanding our
higher-growth, higher-value esoteric and
genomic businesses
.

11

 


Strategic Focus Areas

Scientific

Leadership

Managed

Care

Customer

Retention

-Licensing/partnerships

-Cancer

-Specimen tracking

-Call center consolidation

-Report improvement

-Acquisitions

-Appropriate prices

-Reduce leakage

-Value of new lab tests

-Customer connectivity

12

 

First Quarter Results (in millions, except per share data)

(1) Excludes $5.8 million stock compensation expense recorded by the Company for the three months ended March 31, 2006 from
the adoption of SFAS 123(R).

(2) Excluding the $0.02 per diluted share impact of the required change in accounting for stock based compensation adopted in 2006.

13

 

2006 First Quarter Financial
Achievements

Diluted EPS of $0.78 (1)

EBITDA margin of 26.1% of sales (2)

Operating cash flow of $178.6 million

Increased revenues 9.9% (4.6% volume; 5.3% price)

Repurchased approximately $185 million of
LabCorp stock

(1)

Excluding the $0.02 per diluted share impact of the required change in accounting for stock based compensation.

(2)

Based on EBITDA of $229.6 million, excluding $5.8 million impact of change in accounting for stock based
compensation.

14

 

Financial Performance

Price & Volumes:  Trends by Payer Type

15

 

Financial Performance

Revenue Analysis by Business Area

16

 

Free Cash Flow Investment Strategy

Acquisitions

Stock repurchase program

Retain flexibility in utilizing remaining
cash

17

 

2006 Financial Guidance

Excluding the impact of the required change in accounting for stock
based compensation, and any share repurchase activity after March
31, 2006, guidance for 2006 is as follows:

Revenue growth of approximately 6.5% to 7.5% compared to 2005.

EBITDA margins of 26.0 to 26.5% of revenues.

Diluted EPS in the range of $3.15 to $3.25.

Operating cash flow of between $600 and $620 million.

Capital expenditures of between $100 and $115 million.

Net interest expense of approximately $47 million.

Bad debt rate of approximately 5.3% of sales.

We estimate that the implementation of the required change in
accounting for stock based compensation will have an EBITDA impact
of approximately $22 million to $23 million and a diluted EPS impact
of approximately $0.10.

18

 

Reconciliation of Non-GAAP Financial Measures ($ in millions)

19

 

Supplemental Financial Information

20