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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Nine Months Ended Sep 30,
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2010
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2009
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+/(-)
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2010
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2009
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+/(-)
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Revenue (1)
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$1,276.5
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$1,185.1
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7.7%
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$3,708.5
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$3,529.7
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5.1%
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Adjusted Operating Income
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$250.1
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$237.6
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5.3%
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$764.2
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$733.0
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4.3%
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Adjusted Operating Income Margin
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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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20.6%
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20.8%
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-20
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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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$2.76
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$2.51
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10.0%
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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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$624.4
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$637.7
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-2.1%
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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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($93.3)
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($77.1)
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21.0%
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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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$531.1
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$560.6
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-5.3%
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(1) During the first quarter of 2010 inclement weather reduced revenue by an estimated $23 million and EPS by approximately eight cents
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Reconciliation of non-GAAP Financial Measures
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(In millions, except per share data)
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Three Months Ended Sep 30,
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Nine Months Ended Sep 30,
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Adjusted Operating Income
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2010
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2009
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2010
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2009
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Operating income
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$235.3
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$234.9
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$740.0
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$720.1
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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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$24.2
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$12.9
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Adjusted operating income
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$250.1
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$237.6
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$764.2
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$733.0
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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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$4.05
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$3.67
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Impact of restructuring and other special charges (1) (2)
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$0.13
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$0.01
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$0.18
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$0.07
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Adjusted EPS
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$1.47
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$1.22
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$4.23
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$3.74
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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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During the first quarter of 2010, the Company recorded net charges of $9.3 million relating to severance payments and the closing of redundant and underutilized facilities as well as the write-off of development costs incurred on systems abandoned during the quarter.
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The after tax impact of these combined charges decreased net earnings for the nine months ended September 30, 2010, by $19.1 million and diluted earnings per share by $0.18 ($19.1 million divided by 105.4 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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During the second quarter of 2009, the Company recorded net charges of approximately $10.2 million ($6.1 million after tax) related to actions directed at reducing the Company’s redundant and underutilized facilities along with the related work force.
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The after tax impact of these combined charges reduced net earnings for the nine months ended September 30, 2009, by $7.7 million and diluted earnings per share by $0.07 for the nine months ended September 30, 2009 ($7.7 million divided by 109.1).
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Laboratory Corporation of America
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Other Financial Information
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FY 2009 and Q1/Q2 2010
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($ in millions)
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Q1 09
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Q2 09
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Q3 09
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Q4 09
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Q1 10
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Q2 10
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Q3 10
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Bad debt as a percentage of sales
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5.30%
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5.30%
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5.30%
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5.30%
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5.05%
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4.80%
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4.80%
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Days sales outstanding
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52
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50
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48
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44
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46
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45
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44
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A/R coverage (Allow. for Doubtful Accts. / A/R)
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19.5%
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20.6%
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21.9%
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23.2%
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21.7%
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20.7%
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20.4%
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