Laboratory Corporation of America
) (NYSE: LH) today announced results for the quarter ended March 31, 2014.
First Quarter Results
Net earnings were $113.1 million and earnings per diluted share (EPS) were $1.31 in the first quarter of 2014. Non-GAAP earnings per diluted share, excluding amortization, restructuring and other special charges (Adjusted EPS Excluding Amortization) recorded in the first quarter of 2014 were $1.51. Weather in the quarter reduced Adjusted EPS Excluding Amortization by an estimated $0.22.
Operating income for the quarter was $203.3 million. Non-GAAP operating income excluding restructuring and other special charges (Adjusted Operating Income) recorded in the quarter was $210.9 million, or 14.7% of revenue. During the first quarter, weather reduced the Company’s margins by an estimated 180 basis points.
Revenues for the quarter were $1,430.7 million. Inclement weather is estimated to have reduced revenue by $42 million during the quarter. Test volume, measured by requisitions, increased 2.6% year over year. Revenue per requisition decreased 3.3% year over year, primarily accounted for by Medicare payment reductions, test mix and the Canadian business.
Operating cash flow for the quarter was $142.3 million. The balance of cash at the end of the quarter was $338.9 million, and there were no borrowings outstanding under the Company’s $1 billion revolving credit facility. During the quarter, the Company repurchased $106.2 million of stock, representing 1.1 million shares. As of March 31, 2014, $946.3 million of repurchase authorization remained under the Company’s share repurchase plan.
The Company recorded restructuring and other special charges of $7.6 million during the first quarter of 2014.
“We delivered a quarter with solid volume growth and strong earnings despite the greatest weather impact in our company’s history,” said David P. King, Chairman and Chief Executive Officer. “Our performance demonstrates the soundness of our five pillar strategy, which we continue to execute across our business.”