Laboratory Corporation of America
) (NYSE: LH) today announced results for the quarter ended June 30, 2013.
Second Quarter Results
Net earnings were $151.9 million and earnings per diluted share (EPS) were $1.62 in the second quarter of 2013. Non-GAAP earnings per diluted share, excluding amortization, restructuring and other special charges recorded in the second quarter of 2013 and 2012 (Adjusted EPS Excluding Amortization) were $1.80 and $1.77, respectively.
Revenues for the quarter were $1,468.2 million, an increase of 3.1% over the second quarter of 2012. Testing volume, measured by requisitions, increased 5.0% and revenue per requisition decreased 1.8%. Managed care pricing remained stable, but revenue per requisition decreased year over year due to previously-discussed Medicare payment reductions, delays and denials of coverage for existing tests by some payers after implementation of recently-adopted molecular pathology codes, the implementation of sequestration on April 1, 2013, and strong growth in the Company’s drugs of abuse testing.
Operating income for the quarter was $269.3 million. Non-GAAP operating income excluding restructuring and other special charges recorded in the quarter (Adjusted Operating Income) was $275.9 million, or 18.8% of revenue. Margins were negatively affected by the factors noted above.
Operating cash flow for the quarter was $137.6 million. The balance of cash at the end of the quarter was $111.3 million, and there were $225.0 million of borrowings outstanding under the Company’s $1 billion revolving credit facility. During the quarter, the Company repurchased $362.0 million of stock, representing 3.7 million shares. As of June 30, 2013, $592.1 million of repurchase authorization remained under the Company’s previously approved share repurchase plan.
The Company recorded restructuring and other special charges of $6.6 million during the second quarter of 2013.
Net earnings were $299.2 million and earnings per diluted share were $3.18 in the first half of 2013. Adjusted EPS Excluding Amortization in the first half of 2013 and 2012 were $3.53 and $3.51, respectively.