laboratory crp of amer hldgs (LH) Snapshot

Laboratory Corp. of America Holdings announced that it is offering the COBAS AmpliPrep/COBAS TaqMan HCV Test, v2.0. With enhanced sensitivity, this quantitative viral load assay for Hepatitis C virus (HCV) enables more accurate assessments of response to antiviral therapy. As the first major clinical reference laboratory to offer the COBAS AmpliPrep/COBAS TaqMan HCV Test, v2.0, LabCorp can now provide physicians with a quantitative HCV viral load assay that has a lower limit of detection and quantification (15 IU/mL) than existing qualitative HCV assays (10-50 IU/mL). Viral load determinations influence decisions related to many aspects of antiviral HCV therapy, including treatment selection and adjustments. Following treatment initiation, periodic measurements of HCV viral load allows the clinician to assess the success of treatment. An estimated 3.2 million people in the U.S. (and 170 million worldwide) are chronically infected with HCV, which if left undiagnosed and untreated can lead to liver fibrosis, cirrhosis and hepatocellular carcinoma. The Centers for Disease Control and Prevention (CDC) estimates that nearly half of the U.S. HCV population is currently undiagnosed, and the slow and often silent onset of HCV disease presentation has prompted more aggressive efforts to proactively diagnose and treat HCV infection.

Annual General Meeting

Laboratory Corp. of America Holdings announced consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported net sales of $1,440.9 million against $1,423.3 million a year ago. Operating income was $262.3 million against $287.1 million a year ago. Earnings before income taxes were $241.4 million against $269.6 million a year ago. Net earnings were $147.6 million against $162.0 million a year ago. Net earnings attributable to company were $147.2 million against $161.6 million a year ago. Adjusted operating income was $262.0 million against $287.1 million a year ago. Adjusted EPS excluding amortization was $1.74 against $1.74 a year ago. Net cash provided by operating activities was $198.2 million against $197.1 million a year ago. Free cash flow was $156.5 million against $162.9 million a year ago. Diluted per share was $1.56. Capital expenditures were $41.7 million against $34.2 million a year ago. Non-GAAP operating income excluding restructuring and other special charges recorded in the quarter (Adjusted Operating Income) was $269.5 million, or 18.7% of revenue. Testing volume, measured by requisitions, increased 1.1% and revenue per requisition increased 0.2%. On a per day basis, revenue increased 2.9% and testing volume increased 2.7% over the first quarter of 2012. Inclement weather reduced volume growth by approximately 0.5%. The company is reaffirming its 2013 guidance, expecting revenue growth in the range of approximately 2.0% to 3.0%; Adjusted EPS Excluding Amortization of $6.85 to $7.15, which includes a negative impact of approximately $0.35 due to Medicare payment reductions and excludes the impact of any share repurchase activity after March 31, 2013; operating cash flow of approximately $870 million to $900 million; and capital expenditures of approximately $200 million to $220 million. The Company's capital expenditure guidance is higher than historical levels due to near-term investments in facility consolidation and the replacement of a major testing platform.