UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
May 12, 2010
(Date of earliest event reported)
LABORATORY CORPORATION OF
AMERICA HOLDINGS
| DELAWARE | 1-11353 | 13-3757370 | ||
| (State or other jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| 358 SOUTH MAIN STREET, BURLINGTON, NORTH CAROLINA | 27215 | 336-229-1127 | ||
| (Address of principal executive offices) | (Zip Code) | (Registrant's telephone number including area code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 7.01. Regulation FD Disclosure
Summary information of the Company in connection with its Annual Meeting of Stockholders in Burlington, NC on May 12, 2010.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Laboratory Corporation of America Holdings (Registrant) | ||||
| Date: May 12, 2010 | By: | /s/F. Samuel Eberts III | ||
| F. Samuel Eberts III, Chief Legal Officer and Secretary | ||||
May 12, 2010
2010
Annual Meeting
of Stockholders
2
This slide presentation contains forward-looking
statements which are subject to change based on various
important factors, including without limitation, competitive
actions in the marketplace and adverse actions of
governmental and other third-party payors.
Actual results could differ materially from those suggested
by these forward-looking statements. Further information
on potential factors that could affect the Company’s
financial results is included in the Company’s Form 10-K
for the year ended December 31, 2009, and subsequent
SEC filings.
Forward Looking Statement
Introduction
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Leading National Lab Provider
Fastest growing national lab
$55 Billion market
Clinical, Anatomic and Genomic Testing
Serving clients in all 50 states and Canada
Leading clinical trials testing business
2010 Priorities
4
Our Focus
Profitable revenue growth
IT and client connectivity
Continue scientific
leadership
Maintain price
Control costs
2010 Priorities
5
Profitable Revenue Growth
Target specialty physicians with
breadth of menu and services
Educate payers and physicians on
value of LabCorp testing
Leverage assets from Monogram
acquisition
Continue to improve patient experience
2010 Priorities
6
IT and Client
Connectivity
Enhance online services and
analytic tools
LabCorp Inside the Box for
superior connectivity
Improve Patient Experience
through:
Automated PSC workflow
Patient access via PHRs,
online appointments
Enterprise services
including VoIP
Continue “open platform” strategy
to maximize options for users
Continue Scientific
Leadership
Increase esoteric testing
Grow and enhance offerings in
personalized medicine:
Expand outcome improvement
programs
Develop and commercialize
companion diagnostics
2010 Priorities
7
2010 Priorities
Maintain Price
Managed care stability; offsets
1.9% Medicare rate decrease
Focus on high-value tests
Promote outcome improvement
8
Control Costs
Continue focus on collections
and bad debt reduction
Optimize supply chain
Use efficiency gains to
improve patient experience
2010 Priorities
9
First Quarter 2010 Results
10
2010
2009
+/(-)
Revenue
(1)
1,193.6
$
1,155.7
$
3.3%
Adjusted Operating Income
243.5
$
240.5
$
1.2%
Adjusted Operating Income Margin
20.4%
20.8%
(40)
bp
Adjusted EPS
(1)
1.30
$
1.22
$
6.6%
Operating Cash Flow
232.0
$
208.9
$
11.1%
Less: Capital Expenditures
(24.5)
$
(30.7)
$
(20.2%)
Free Cash Flow
207.5
$
178.2
$
16.4%
(1) During the quarter inclement weather reduced revenue by an estimated $23 million and EPS by approximately eight cents
Three Months Ended Mar 31,
Supplemental Financial Information
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Q1 09
Q2 09
Q3 09
Q4 09
Q1 10
Bad debt as a percentage of sales
5.30%
5.30%
5.30%
5.30%
5.05%
Days sales outstanding
52
50
48
44
46
A/R coverage (Allowance for Doubtful Accts. / A/R)
19.5%
20.6%
21.9%
23.2%
21.7%
Laboratory Corporation of America
Other Financial Information
FY 2009 and Q1 2010
($ in millions)
Superior Two-Year Return
LabCorp shares up 4.7%
S&P Healthcare Index down 11.3%
S&P 500 down 16.9%
S&P Financials Index down 42.1%
Stock Performance
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Note: Period measured is from January 2nd , 2008 – May 3rd, 2010
Source: First Call
Key Points
Critical position in health care delivery system
Attractive market
Strong competitive position - well positioned to gain share
Leadership in personalized medicine
Excellent cash flow
Strong balance sheet
Conclusion
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