Delaware
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1-11353
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13-3757370
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(State or other jurisdiction of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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358 South Main Street,
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Burlington, North Carolina
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27215
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336-229-1127
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(Address of principal executive offices)
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(Zip Code)
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(Registrant’s telephone number including area code)
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[ ]
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 7.01
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Regulation FD Disclosure
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By:
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/s/ F. SAMUEL EBERTS III
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F. Samuel Eberts III
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Chief Legal Officer and Secretary
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Three Months Ended Sep 30,
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2010
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2009
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+/(-)
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Revenue
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$ 1,276.5
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|
$ 1,185.1
|
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7.7%
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Adjusted Operating Income (1)
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$ 250.1
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$ 237.6
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5.3%
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Adjusted Operating Income Margin (1)
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19.6%
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20.0%
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(40)
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bp
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Adjusted EPS (1)
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$ 1.47
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$ 1.22
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20.5%
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Operating Cash Flow
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$ 176.2
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$ 246.4
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-28.5%
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Less: Capital Expenditures
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$ (34.3)
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$ (22.7)
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51.1%
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Free Cash Flow
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$ 141.9
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$ 223.7
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-36.6%
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(1) See Reconciliation of non-GAAP Financial Measures (included herein)
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YTD Q3-2008
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YTD Q3-2009
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YTD Q3-2010
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|||||||||
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Revenue
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|
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Revenue
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|
|
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Revenue
|
|
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|||
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$'s
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%
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Accns
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PPA
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|
$'s
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%
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Accns
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PPA
|
|
$'s
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%
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Accns
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PPA
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Client
|
$ 895.7
|
28%
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26.844
|
$ 33.37
|
|
$ 911.6
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27%
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26.641
|
$ 34.22
|
|
$ 967.3
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28%
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26.030
|
$ 37.16
|
Patient
|
280.1
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9%
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1.708
|
$164.00
|
|
256.8
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8%
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1.596
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$160.91
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|
$ 258.9
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7%
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1.579
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$163.98
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Third Party (Medicare/Medicaid)
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602.0
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19%
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14.220
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$ 42.33
|
|
677.9
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20%
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14.960
|
$ 45.31
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|
$ 718.8
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21%
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15.053
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$ 47.75
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Managed Care:
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|
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|
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- Capitated
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135.5
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4%
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11.409
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$ 11.88
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|
127.4
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4%
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11.269
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$ 11.30
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|
$ 116.0
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3%
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10.300
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$ 11.26
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- Fee for service
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1,282.4
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40%
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28.352
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$ 45.23
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|
1,375.4
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41%
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29.225
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$ 47.06
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|
$1,439.9
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41%
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29.809
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$ 48.30
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Total Managed Care
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1,417.9
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44%
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39.761
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$ 35.66
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1,502.8
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45%
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40.494
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$ 37.11
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$1,555.9
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44%
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40.109
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$ 38.79
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LabCorp Total - US
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$3,195.6
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100%
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82.533
|
$ 38.72
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|
$3,349.1
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100%
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83.691
|
$ 40.02
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|
$3,500.9
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100%
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82.771
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$ 42.30
|
|
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LabCorp Total - Canada
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$ 190.4
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5.957
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$ 31.97
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$ 180.5
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6.855
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$ 26.33
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|
$ 207.6
|
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6.873
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$ 30.21
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LabCorp Total
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$3,386.1
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88.490
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$ 38.26
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$3,529.7
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90.546
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$ 38.98
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|
$3,708.5
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89.644
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$ 41.37
|
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YTD Q3-2008
|
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YTD Q3-2009
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YTD Q3-2010
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|||||||||
|
Revenue
|
|
|
|
Revenue
|
|
|
|
Revenue
|
|
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|||
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$'s
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%
|
Accns
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PPA
|
|
$'s
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%
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Accns
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PPA
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|
$'s
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%
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Accns
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PPA
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All Genomic
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$ 486.7
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15%
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6.539
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$ 74.43
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|
$ 516.8
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15%
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6.812
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$ 75.87
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$ 547.1
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16%
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6.702
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$ 81.64
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Other Esoteric
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378.6
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12%
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9.086
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41.67
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452.8
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14%
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10.607
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42.69
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|
506.0
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14%
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11.872
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42.62
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Histology
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241.9
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8%
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1.921
|
125.94
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|
221.5
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7%
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1.823
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121.49
|
|
219.1
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6%
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1.764
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124.20
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All Genomic / Esoteric
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1,107.1
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35%
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17.545
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63.10
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|
1,191.1
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36%
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19.242
|
61.90
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|
1,272.2
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36%
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20.338
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62.55
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Core
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2,088.5
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65%
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64.987
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32.14
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2,158.0
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64%
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64.449
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33.48
|
|
2,228.7
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64%
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62.433
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35.70
|
LabCorp Total - US
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$ 3,195.6
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100%
|
82.533
|
$ 38.72
|
|
$ 3,349.1
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100%
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83.691
|
$ 40.02
|
|
$ 3,500.9
|
100%
|
82.771
|
$ 42.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
LabCorp Total - Canada
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$ 190.4
|
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5.957
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$ 31.97
|
|
$ 180.5
|
|
6.855
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$ 26.33
|
|
$ 207.6
|
|
6.873
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$ 30.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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LabCorp Total
|
$ 3,386.1
|
|
88.490
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$ 38.26
|
|
$ 3,529.7
|
|
90.546
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$ 38.98
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|
$ 3,708.5
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|
89.644
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$ 41.37
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• Revenue growth(1):
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Approximately 5.0%
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• Adjusted EPS(2):
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$5.52 to $5.57
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• Operating cash flow of approximately(3):
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$870 Million
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• Capital expenditures of approximately:
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$135 Million
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Laboratory Corporation of America
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Other Financial Information
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September 30, 2010
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($ in millions)
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|
Q1 10
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Q2 10
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Q3 10
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YTD 10
|
|
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|
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Depreciation
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$ 32.2
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$ 32.0
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$ 32.2
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$ 96.3
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Amortization
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$ 17.4
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$ 17.7
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$ 18.0
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$ 53.1
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Capital expenditures
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$ 24.5
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$ 34.5
|
$ 34.3
|
$ 93.3
|
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Cash flows from operations
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$ 232.0
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$ 216.2
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$ 176.2
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$ 624.4
|
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Bad debt as a percentage of sales
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5.05%
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4.80%
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4.80%
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4.88%
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Effective interest rate on debt:
|
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|
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Zero coupon-subordinated notes
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2.00%
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2.00%
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2.00%
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2.00%
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5 1/2% Senior Notes
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5.38%
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5.38%
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5.38%
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5.38%
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5 5/8% Senior Notes
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5.75%
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5.75%
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5.75%
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5.75%
|
|
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Term loan
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3.67%
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3.67%
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3.67%
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3.67%
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|
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Revolving credit facility (weighted average)
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0.58%
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0.70%
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0.61%
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0.61%
|
|
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Days sales outstanding
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46
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45
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44
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44
|
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UnitedHeathcare transition payments - Billed
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$ 10.1
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$ 1.1
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$ -
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$ 11.2
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|
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UnitedHeathcare transition payments - Paid
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$ 14.5
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$ 2.1
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$ 0.2
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$ 16.8
|
|
|
Reconciliation of non-GAAP Financial Measures
|
|
|
|||||
(In millions, except per share data)
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
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Three Months Ended Sep 30,
|
||||
Adjusted Operating Income
|
|
2010
|
|
2009
|
|
|
|
|
Operating income
|
|
$ 235.3
|
|
$ 234.9
|
|
|
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Restructuring and other special charges (1) (2)
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$ 14.8
|
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$ 2.7
|
|
|
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Adjusted operating income
|
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$ 250.1
|
|
$ 237.6
|
|
|
|
|
|
|
|
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Adjusted EPS
|
|
|
|
|
|
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Diluted earnings per common share
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$ 1.34
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$ 1.21
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Impact of restructuring and other special charges (1) (2)
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$ 0.13
|
|
$ 0.01
|
|
|
|
Adjusted EPS
|
|
$ 1.47
|
|
$ 1.22
|
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|
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(1) During the third quarter of 2010, the Company recorded restructuring and other special charges of $21.8 million, consisting of $10.9 million in
professional fees and expenses associated with recent acquisitions; $7.0 million in bridge financing fees associated with the signing of an asset purchase agreement for Genzyme Genetics; and $3.9 million in severance related liabilities associated with workforce reduction initiatives. The after tax impact of these charges decreased net earnings for the three months ended September 30, 2010, by $13.4 million and diluted earnings per share by $0.13 ($13.4 million divided by 104.1 million shares). |
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(2) During the third quarter of 2009, the Company recorded a charge of approximately $2.7 million representing fees and expenses associated with its
acquisition of Monogram Biosciences. The after tax impact of this charge reduced net earnings for the three months ended September 30, 2009, by $1.6 million and diluted earnings per share by $0.01 ($1.6 million divided by 108.8 million shares). |
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