Covance Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. Net revenue was $580 million, representing 9.3% growth from the first quarter of 2012. On a GAAP basis, the company reported earnings of $0.86 per diluted share in the first quarter against $0.60 a year ago. Excluding a gain on the sale of investment in BioClinica Inc. of $15.7 million and restructuring costs totaling $6.2 million, the company reported earnings per diluted share of $0.75, up 24.7% over the first quarter of 2012. GAAP operating income in the first quarter of 2013 was $16.6 million, and included $3.6 million in costs associated with on-going restructuring versus operating income of $11.3 million in the first quarter of 2012. Pro forma operating income, excluding these costs, was $20.1 million in the first quarter of this year, a 78% increase from the first quarter of 2012. The company reported income from operations of $48,251,000, income before taxes and equity investee earnings of $62,738,000 against $46,122,000 and $45,401,000 respectively a year ago. Net cash used in operating activities was $54,058,000 against net cash from operating activities of $45,434,000 a year ago. Capital expenditure was $30,350,000 against $29,873,000 a year ago. The company raised revenue growth target to be in the high-single digit range, versus previous expectation of mid- to high-single digit growth, and pro forma diluted earnings per share target to a range of $3.00 to $3.20 (excluding the gain on sale, costs associated with ongoing restructuring activities, and assuming foreign exchange rates remain at March 31, 2013 levels), versus previous expectation of $2.85 to $3.15. In 2013, the company expects free cash flow to be at least $125 million, net of capital expenditures of approximately $160 million. The company expects modest sequential increases in earnings per share each quarter from this first quarter level.

Covance Inc. announced completion of the expansion of its central laboratory facility in Singapore to enhance the company's current service offerings and position it to meet current and future growth of drug development in the Asia Pacific region. The expansion is the latest in Covance's continued investment in Singapore, and an important element of the strategic investment plans for the Asia Pacific region that also includes recent growth in operations in China and Japan. The laboratory, at approximately 2,700 square meters (29,000 square feet), is the largest of its kind in Singapore, providing clinical testing services to clients in Asia, including South Korea, Taiwan, Hong Kong, the Philippines, Australia, and India. This laboratory expansion doubles the size of Covance's genomics footprint in Singapore, while also adding capabilities in anatomic pathology and nutritional chemistry. Like Covance's central laboratories in Indianapolis, Indiana; Geneva, Switzerland; Shanghai, China; and Tokyo, Japan, the Singapore facility continues to provide a full-service offering that includes chemistry, immunology, hematology, flow cytometry, genomics, anatomic pathology, and microbiology.

Covance Inc., Q1 2013 Earnings Call, May 02, 2013