LABORATORY CORP OF AMERICA HOLDINGS - FORM 8-K - April 21, 2010

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

          April 21, 2010           
(Date of earliest event reported)

LABORATORY CORPORATION OF
AMERICA HOLDINGS

(Exact Name of Registrant as Specified in its Charter)
         
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 dated April 21, 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: April 21, 2010   By:   /s/F. Samuel Eberts III    
    F. Samuel Eberts III, Chief Legal Officer
and Secretary  		  
       
 

1

8-K Filed April 21, 2010

2

Introduction

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 will be included in the
Company’s Form 10-K for the year ended December 31, 2009, and
subsequent SEC filings. The Company has no obligation to provide any
updates to these forward-looking statements even if its expectations
change.

3

First Quarter Results
(In millions, except per share data)

2010

2009

+/(-)

Revenue

1,193.6

$  

1,155.7

$  

3.3%

Adjusted Operating Income

(1)

243.5

$     

240.5

$     

1.2%

Adjusted Operating Income Margin

(1)

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) See Reconciliation of non-GAAP Financial Measures (included herein)

Three Months Ended Mar 31,

4

Cash Flow Trends

11% FCF CAGR

2004-2009

5

Revenue by Payer- US
2010 YTD

6

Revenue by Business Area - US
2010 YTD

7

Revenue by Payer  
(in millions, except PPA)

YTD Q1-2008

YTD Q1-2009

YTD Q1-2010

Revenue

Revenue

Revenue

$'s

%

Accns

PPA

$'s

%

Accns

PPA

$'s

%

Accns

PPA

Client

285.4

$   

27%

8.638

   

33.04

$   

303.3

$     

28%

8.918

   

34.01

$  

307.9

$     

27%

8.598

   

35.80

$  

Patient

97.9

      

9%

0.590

   

165.98

$   

83.7

         

8%

0.531

   

157.57

$

88.3

         

8%

0.536

   

164.81

$

Third Party

(Medicare/Medicaid)

198.8

      

19%

4.728

   

42.05

$   

220.3

      

20%

4.983

   

44.21

$  

228.5

      

20%

4.927

   

46.37

$  

Managed Care:

- Capitated

42.4

      

4%

3.691

   

11.49

$   

44.6

         

4%

3.665

   

12.16

$  

39.0

         

3%

3.225

   

12.11

$  

- Fee for service

414.6

      

40%

9.339

   

44.39

$   

448.3

      

41%

9.584

   

46.78

$  

461.0

      

41%

9.491

   

48.57

$  

  Total Managed Care

457.0

      

44%

13.030

  

35.07

$   

492.9

      

45%

13.249

  

37.20

$  

500.0

      

44%

12.716

  

39.32

$  

LabCorp Total - US

1,039.1

$

100%

26.986

  

38.51

$   

1,100.1

$   

100%

27.681

  

39.74

$  

1,124.7

$   

100%

26.777

  

42.00

$  

LabCorp Total - Canada

64.1

$      

-

1.835

   

34.90

$   

55.6

$      

-

2.269

   

24.50

$  

68.9

$      

-

2.287

   

30.14

$  

  LabCorp Total

1,103.2

$

28.821

  

38.28

$   

1,155.7

$   

29.950

  

38.59

$  

1,193.6

$   

29.064

  

41.07

$  

8

Revenue by Business Area
(in millions, except PPA)

YTD Q1-2008

YTD Q1-2009

YTD Q1-2010

Revenue

Revenue

Revenue

$'s

%

Accns

PPA

$'s

%

Accns

PPA

$'s

%

Accns

PPA

All Genomic

156.4

$      

15%

2.144

   

72.94

$     

172.4

$      

16%

2.250

     

76.64

$     

174.5

$      

16%

2.189

     

79.68

$     

Other Esoteric

118.1

        

11%

2.881

   

40.98

      

140.2

      

13%

3.303

     

42.44

      

161.8

      

14%

3.734

     

43.33

      

Histology

79.2

         

8%

0.629

   

125.99

     

73.5

         

7%

0.609

     

120.69

     

70.1

         

6%

0.564

     

124.28

     

  All Genomic / Esoteric

353.7

        

34%

5.654

   

62.55

      

386.1

      

35%

6.162

     

62.67

      

406.4

      

36%

6.487

     

62.65

      

Core

685.5

        

66%

21.332

  

32.13

      

714.0

      

65%

21.520

   

33.18

      

718.3

      

64%

20.290

   

35.40

      

LabCorp Total - US

1,039.1

$   

100%

26.986

  

38.51

$     

1,100.1

$   

100%

27.681

   

39.74

      

1,124.7

$   

100%

26.777

   

42.00

      

LabCorp Total - Canada

64.1

$        

-

1.835

   

34.90

$     

55.6

$      

-

2.269

     

24.50

$     

68.9

$      

-

2.287

     

30.14

$     

  LabCorp Total

1,103.2

$   

28.821

  

38.28

$     

1,155.7

$   

29.950

   

38.59

$     

1,193.6

$   

29.064

   

41.07

$     

9

Financial Guidance - 2010

Excluding the impact of restructuring and other special charges

and share repurchase activity after March 31, 2010,

guidance for 2010 is:

  Revenue growth:

Approximately 2.5% – 4.5%

  Adjusted EPS:

$5.35 to $5.55

  Operating cash flow of approximately(1):

$870 Million

  Capital expenditures of approximately:

$135 Million

          (1) Operating cash flow guidance excludes any transition payments to UnitedHealthcare.

10

Supplemental Financial
Information

Q1 10

Depreciation

$32.2

Amortization

$17.4

Capital expenditures

$24.5

Cash flows from operations

$232.0

Bad debt as a percentage of sales

5.05%

Effective interest rates on debt:

  Zero-coupon subordinated notes

2.00%

  5 1/2% Senior Notes

5.38%

  5 5/8% Senior Notes

5.75%

  Term loan

3.67%

  Revolving credit facility (weighted average)

0.58%

Days sales outstanding

46

         

UnitedHeathcare transition payments - Billed

$10.1

UnitedHeathcare transition payments - Paid

$14.5

Laboratory Corporation of America

Other Financial Information

March 31, 2010

($ in millions)

11

Reconciliation of non-GAAP

Financial Measures

Adjusted Operating Income

2010

2009

Operating income

$234.2

$240.5

Restructuring and other special charges

9.3

-

            

Adjusted operating income

$243.5

$240.5

Adjusted EPS

Diluted earnings per common share

$1.25

$1.22

Impact of restructuring and other special charges (1)

0.05

-

            

Adjusted EPS

$1.30

$1.22

Three Months Ended Mar 31,

(1) After tax  impact of restructuring and other special charges, $5.7 million divided by 106.5 million shares

Reconciliation of non-GAAP Financial Measures

(In millions, except per share data)

12

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