Laboratory Corporation of America
) (NYSE: LH) today announced results for the quarter and year ended December 31, 2013.
Fourth Quarter Results
Net earnings were $126.3 million and earnings per diluted share (EPS) were $1.43 in the fourth quarter of 2013. Non-GAAP earnings per diluted share, excluding amortization, restructuring and other special charges (Adjusted EPS Excluding Amortization) recorded in the fourth quarter of 2013 were $1.61. Weather late in the quarter reduced Adjusted EPS Excluding Amortization by approximately $0.03.
Operating income for the quarter was $215.0 million. Non-GAAP operating income excluding restructuring and other special charges (Adjusted Operating Income) recorded in the quarter was $219.0 million, or 15.2% of revenue.
Revenues for the quarter were $1,437.0 million, an increase of 2.3% over the fourth quarter of 2012. Test volume, measured by requisitions, increased 5.0%. Revenue per requisition was flat sequentially, but decreased 2.6% year over year.
During the fourth quarter, government payment reductions and molecular pathology payment issues reduced the Company’s year over year margins by approximately 170 basis points, reduced year over year revenue per requisition by approximately 2% and reduced year over year operating cash flow by more than $30 million. Also, growth in the Company’s toxicology business reduced year over year revenue per requisition by approximately 2% in the fourth quarter.
Operating cash flow for the quarter was $248.7 million. The balance of cash at the end of the quarter was $404.0 million, and there were no borrowings outstanding under the Company’s $1 billion revolving credit facility. During the quarter, the Company repurchased $251.6 million of stock, representing 2.5 million shares. As of December 31, 2013, $1,052.5 million of repurchase authorization remained under the Company’s share repurchase plan.
The Company recorded restructuring and other special charges of $4.0 million during the fourth quarter of 2013.