Operating income was $1,023.5 million in 2012. Adjusted Operating Income was $1,064.9 million.
Revenues were $5,671.4 million, an increase of 2.3% compared to the same period in 2011. Compared to 2011, testing volume, measured by requisitions, increased 1.7% and revenue per requisition increased 0.6%.
Operating cash flow for 2012 was $841.4 million. During 2012, the Company repurchased $516.4 million of stock, representing 5.9 million shares.
“We had a good year, despite operating through a challenging environment, and achieved meaningful progress on our 5-pillar strategy,” said David P. King, Chairman and Chief Executive Officer. “We achieved solid earnings growth, strengthened our balance sheet by refinancing $1 billion of debt at historically low rates and continued to return capital to shareholders through our disciplined share repurchase program.”
Outlook for 2013
The Company expects 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 which excludes the impact of any share repurchase activity after December 31, 2012; 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 replacement of a major testing platform.
Use of Adjusted Measures
The Company has provided in this press release “adjusted” financial information that has not been prepared in accordance with GAAP, including Adjusted EPS, Adjusted EPS Excluding Amortization, Adjusted Operating Income, and Free Cash Flow. The Company believes these adjusted measures are useful to investors as a supplement to, but not as a substitute for, GAAP measures, in evaluating the Company’s operational performance. The Company further believes that the use of these non-GAAP financial measures provides an additional tool for investors in evaluating operating results and trends, and in comparing the Company’s financial results with other companies. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in the tables accompanying this press release.