Laboratory Corporation Of America® Holdings Announces 2011 Fourth Quarter And Full Year Results

Laboratory Corporation of America ^® Holdings (LabCorp ^®) (NYSE: LH) today announced results for the quarter and year ended December 31, 2011.

Fourth Quarter Results

Net earnings were $135.4 million and earnings per diluted share (EPS) were $1.34 in the fourth quarter of 2011. Non-GAAP earnings per diluted share, excluding amortization, restructuring and other special charges recorded in the fourth quarter of 2011 and 2010 (Adjusted EPS Excluding Amortization) were $1.56 and $1.46, respectively.

Operating income for the fourth quarter was $247.4 million. Non-GAAP operating income excluding restructuring and other special charges recorded in the fourth quarter of 2011 and 2010 (Adjusted Operating Income) was $258.0 million and $252.4 million, respectively.

Revenues for the quarter were $1,366.1 million, an increase of 5.5% over the fourth quarter of 2010. Testing volume, measured by requisitions, increased 1.2%, and revenue per requisition increased 4.2%.

Operating cash flow for the quarter was $278.6 million. The balance of cash at the end of the quarter was $159.3 million, and there were $560.0 million of borrowings outstanding under the Company’s $1.0 billion revolving credit facility. During the quarter, the Company repurchased approximately $172.1 million of stock, representing approximately 2.1 million shares. As of December 31, 2011, approximately $84.4 million of repurchase authorization remained under the Company’s previously approved share repurchase plan.

The Company recorded restructuring and other special charges of $10.6 million during the fourth quarter of 2011. These charges include $6.3 million in net severance and other personnel costs along with $1.7 million in net facility-related costs primarily associated with the integration of Orchid Cellmark and the continuing integration of Genzyme Genetics. The charges also include a $2.6 million write-off of an uncollectible receivable from a past installment sale of one of the Company's lab operations. The Company also recorded a net $2.8 million loss on the government-mandated divestiture of certain assets of Orchid Cellmark’s government paternity business.