Laboratory Corp. of America

(LH) - Get Report

, a provider of medical diagnostic services, said sales and earnings rose in the latest quarter thanks to higher testing volume.

The Burlington, N.C., company said it earned $73.9 million, or 51 cents a diluted share, in the latest quarter, compared with earnings of $65.8 million, or 46 cents a share, last year. Sales rose 21% to $712 million. Quarterly earnings before interest, taxes, depreciation and amortization was $165.7 million for the first quarter, or 23.3% of net sales, compared to $137.6 million, or 23.3% of net sales, last year.

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Earnings in the latest quarter beat estimates by 2 cents a share.

The company also reported financial improvement, saying it repaid $115 million of $250 million borrowed under a line of credit to fund its acquisition of Dianon Systems in January. It also bought back $34 million in stock.

"We continued to have high cash generation, strengthened our balance sheet by paying down our revolving line of credit and enhanced shareholder value by repurchasing LabCorp stock," the company said. "Additionally, the integrations of Dynacare and Dianon are firmly on track and proceeding well, with both companies meeting our synergy expectations."