LabCorp 4th Quarter Earnings

BURLINGTON, N.C.--(BUSINESS WIRE)--Feb. 12, 2009-- Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH) today announced results for the quarter and year ended December 31, 2008.

Fourth Quarter Results
Net earnings were $118.1 million, compared to fourth quarter 2007 net earnings of $114.4 million. Excluding restructuring and other special items recorded in 2008 and 2007, net earnings were $120.3 million, compared to $121.9 in the fourth quarter 2007 (Adjusted Net Earnings). Earnings per diluted share (EPS) were $1.08, compared to $0.98 in the fourth quarter of 2007. Diluted earnings per share, excluding restructuring and other special items recorded in 2008 and 2007 (Adjusted EPS) were $1.10 compared to $1.04 in the fourth quarter of 2007. Earnings before interest, taxes, depreciation, amortization, and restructuring and other special items (Adjusted EBITDA) were $265.8 million for the quarter, or 23.6% of net sales.
Revenues for the quarter were $1,119.1 million, an increase of 11.3% compared to the same period in 2007. Compared to the fourth quarter of 2007, testing volume, measured by accessions, increased 10.9%, and revenue per accession increased 0.4%. Excluding the consolidation of the Company’s Ontario, Canada joint venture and a special charge, revenue increased 6.2% with volume increasing 3.0% and revenue per accession increasing 3.2%.
Operating cash flow for the quarter was $215.3 million, net of $12.5 million in transition payments to UnitedHealthcare. The balance of cash at the end of the quarter was $219.7 million, and there was $70.8 million outstanding under the Company’s revolving credit facility.
The Company recorded total pre-tax restructuring and other special items of $15.4 million during the fourth quarter of 2008. Included in this amount were $4.2 million of restructuring and other special charges primarily related to workforce reductions and the closing of redundant and underutilized facilities; $3.7 million of accelerated retirement benefits related to the previously announced retirement of the Company’s Executive Vice President, Corporate Affairs; and the special charge for a $7.5 million cumulative revenue adjustment relating to certain historic overpayments made by Medicare for claims submitted by a subsidiary of the Company. In addition, the Company recorded a $7.1 million favorable adjustment to its fourth quarter tax provision relating to tax treaty changes adopted by the United States and Canada.