Laboratory Corporation of America
) (NYSE: LH) today announced results for the quarter ended December 31, 2012.
Fourth Quarter Results
Net earnings were $120.2 million and earnings per diluted share (EPS) were $1.26 in the fourth quarter of 2012. Non-GAAP earnings per diluted share, excluding amortization, restructuring and other special charges recorded in the fourth quarter of 2012 (Adjusted EPS Excluding Amortization) were $1.54. Inclement weather reduced Adjusted EPS Excluding Amortization by approximately $0.09.
Operating income for the quarter was $215.3 million. Non-GAAP operating income excluding restructuring and other special charges recorded in the quarter (Adjusted Operating Income) was $242.2 million, or 17.2% of revenue. Inclement weather reduced Adjusted Operating Income margin by approximately 0.8%.
Revenues for the quarter were $1,405.3 million, an increase of 2.9% over the fourth quarter of 2011. Testing volume, measured by requisitions, increased 2.8% and revenue per requisition increased 0.1%. Inclement weather reduced volume growth by approximately 1%.
Operating cash flow for the quarter was $254.2 million. The balance of cash at the end of the quarter was $466.8 million, and there were no borrowings outstanding under the Company’s $1 billion revolving credit facility. During the quarter, the Company repurchased $136.0 million of stock, representing 1.6 million shares. As of December 31, 2012, $68.0 million of repurchase authorization remained under the Company’s previously approved share repurchase plan.
The Company announced that its Board authorized a new $1 billion share repurchase program. This authorization reflects the Company’s continued commitment to return capital to and create value for shareholders.
The Company recorded restructuring and other special charges of $20.7 million during the fourth quarter of 2012. In addition, during the quarter the Company recorded $6.2 million in accelerated amortization relating to the termination of a licensing agreement.
Full Year Results
Net earnings were $583.1 million and earnings per diluted share were $5.99 in 2012. Adjusted EPS Excluding Amortization in 2012 and 2011 were $6.82 and $6.37, respectively. During 2012, the impact of inclement weather reduced EPS by approximately $0.09.