Company Provides 2025 Guidance
- Results from Continuing Operations versus last year:
- Revenue: Q4 of $3.33 billion vs
$3.03 billion; Full year of
$13.01 billion vs $12.16 billion
- Diluted EPS: Q4 of $1.70 vs
$(1.95); Full year of $8.84 vs $4.33
- Adjusted EPS: Q4 of $3.45 vs
$3.30; Full year of $14.57 vs $13.56
- Free Cash Flow: Q4 of $665.1
million vs $412.4 million;
Full year of $1.10 billion vs
$748.7 million
- Announced 10 transactions and launched new innovative tests
meeting significant unmet medical needs in key specialty areas in
full year 2024
- Full-Year 2025 Guidance:
- Revenue of $13.88 billion to
$14.05 billion; midpoint growth of
7.4%
- Adjusted EPS of $15.60 to
$16.40; midpoint growth of 9.8%
- Free Cash Flow of $1.10 billion
to $1.25 billion; midpoint growth of
7.2%
BURLINGTON, N.C., Feb. 6, 2025
/PRNewswire/ -- Labcorp Holdings Inc. (NYSE: LH), a global leader
of innovative and comprehensive laboratory services, today
announced results for the fourth quarter ended December 31,
2024, and provided 2025 guidance.
"In 2024, Labcorp delivered exceptional results driven by both
organic and inorganic growth," said Adam
Schechter, chairman and CEO of Labcorp. "We announced 10
transactions to further establish our position as a trusted partner
to hospitals, health systems and regional/local laboratories.
Additionally, we strengthened our presence in key high growth areas
including oncology, women's health, neurology and autoimmune
disease. In 2025, we are positioned to deliver strong growth and
margin expansion across both Diagnostics Laboratories and Biopharma
Laboratory Services, while we improve health and improve lives of
patients around the world."
In the fourth quarter, Labcorp advanced its position as a
partner of choice for hospitals, health systems and regional/local
laboratories:
- Completed the acquisition of select assets and molecular
testing location of Lab Works in Birmingham, Alabama.
- Completed the acquisition of select outreach laboratory
services from Ballad Health in the Appalachian region.
- Subsequent to quarter end, announced a strategic collaboration
with New Jersey-based Inspira
Health to manage operations of hospital laboratories and to serve
as the primary lab for Inspira's physician network.
The company also continued to make strides in science,
technology and innovation:
- Launched a Multiple Sclerosis Monitoring Profile to monitor
neurofilament light chain serum (NfL) and glial fibrillary acid
protein, serum (GFAP) values in multiple sclerosis patients.
- Introduced a new H5 bird flu molecular test to aid in the
diagnosis of human infection with H5 bird flu.
- Announced the availability of the first companion diagnostic
assay to identify gastric cancer patients eligible for a targeted
treatment for people with advanced cancer of the stomach.
- Expanded our Labcorp OnDemand test menu with new offerings to
help consumers manage their health and well-being.
- Introduced enhancements to Global Trial Connect aimed at
increasing the speed of clinical trials.
On January 8, 2025, Labcorp
announced a quarterly cash dividend of $0.72 per share of common stock, payable on
March 12, 2025, to stockholders of
record at the close of business on February
27, 2025.
|
LABCORP HOLDINGS INC.
|
|
CONSOLIDATED
RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec 31,
|
|
Year Ended Dec
31,
|
|
|
2024
|
|
2023
|
|
Delta
|
|
2024
|
|
2023
|
|
Delta
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Summary
(Dollars in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
$
3.33
|
|
$ 3.03
|
|
9.8 %
|
|
$
13.01
|
|
$
12.16
|
|
7.0 %
|
|
|
Organic
|
|
|
|
|
5.4 %
|
|
|
|
|
|
3.9 %
|
|
|
Base Business
(1)
|
|
|
|
|
6.2 %
|
|
|
|
|
|
4.9 %
|
|
|
COVID-19 Testing
(2)
|
|
|
|
|
(0.8 %)
|
|
|
|
|
|
(1.0 %)
|
|
|
Acquisitions, net of
Divestitures
|
|
|
|
|
4.0 %
|
|
|
|
|
|
2.8 %
|
|
|
Foreign
Exchange
|
|
|
|
|
0.3 %
|
|
|
|
|
|
0.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Base
Business includes Labcorp's operations except for COVID-19
Testing.
|
|
(2) COVID-19
Testing represents COVID-19 PCR Testing.
|
|
|
Earnings Summary
(Dollars in millions, except per share data)
|
|
|
|
|
|
|
|
|
Operating Income
("OI")
|
$
216.5
|
|
$ (122.8)
|
|
|
|
$
1,086.7
|
|
$
725.6
|
|
|
|
|
OI as % of
Revenue
|
6.5 %
|
|
(4.0) %
|
|
1,050
bps
|
|
8.4 %
|
|
6.0 %
|
|
240
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
(3)
|
$
206.7
|
|
$
517.7
|
|
|
|
$
710.3
|
|
$
989.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income ("AOI") (4)
|
$
423.2
|
(5)
|
$
394.9
|
|
|
|
$
1,797.0
|
|
$ 1,714.9
|
|
|
|
|
AOI as % of
Revenue
|
12.7 %
|
|
13.0 %
|
|
(40)
bps
|
(6)
|
13.8 %
|
|
14.1 %
|
|
(30)
bps
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings from Cont.
Ops
|
$
143.6
|
|
$ (166.8)
|
|
|
|
$
747.1
|
|
$
380.4
|
|
|
|
|
Diluted EPS from Cont.
Ops
|
$
1.70
|
|
$
(1.95)
|
|
|
|
$ 8.84
|
|
$ 4.33
|
|
|
|
|
Adjusted EPS
(4)
|
$
3.45
|
|
$ 3.30
|
|
|
|
$
14.57
|
|
$
13.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
Adjustments include amortization, impairment charges, restructuring
charges, and special items.
|
|
|
(4) Non-GAAP
financial measure. See "Reconciliation of Non-GAAP Measures" for
additional information.
|
|
|
(5) The
increase in adjusted operating income was primarily due to organic
demand and LaunchPad savings, partially offset by higher personnel
costs.
|
|
|
(6) The
decrease in adjusted operating margin was due to
Invitae.
|
|
|
LABCORP HOLDINGS INC.
|
|
CONSOLIDATED
RESULTS
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec 31,
|
|
Year Ended Dec
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash Flow
Summary (Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow
from Cont. Ops
|
$
777.2
|
(1)
|
$
579.6
|
|
$ 1,585.8
|
|
$ 1,202.3
|
|
Capital
Expenditures
|
112.1
|
|
167.2
|
|
489.9
|
|
453.6
|
|
Free Cash Flow from
Cont. Ops
|
$
665.1
|
|
$
412.4
|
|
$ 1,095.9
|
|
$
748.7
|
|
|
(1) The
increase in operating cash flow was primarily due to higher cash
earnings.
|
Capital Allocation Summary
- At the end of the quarter, Labcorp's cash balance was
$1.52 billion and total debt was
$6.33 billion. These higher cash and
debt balances are due to the pre-funding of maturing debt.
- During the quarter, the company invested $87.8 million in acquisitions, paid out
$60.1 million in dividends, and used
$75.1 million for share
repurchases.
- During the year, the company invested $839.0 million in acquisitions, paid out
$243.1 million in dividends, and used
$250.1 million for share
repurchases.
|
LABCORP HOLDINGS INC.
|
|
Diagnostics
Laboratories Segment Summary
|
|
|
Three Months Ended
December 31,
|
|
|
2024
|
|
2023
|
|
Delta
|
|
|
Revenue Summary
(Dollars in billions)
|
|
|
|
|
|
|
|
Total
Revenue
|
$
2.59
|
|
$ 2.35
|
|
10.2 %
|
|
|
Organic
|
|
|
|
|
5.1 %
|
|
|
Base
Business
|
|
|
|
|
6.1 %
|
|
|
COVID-19
Testing
|
|
|
|
|
(1.0 %)
|
|
|
Acquisitions, net of
Divestitures
|
|
|
|
|
5.2 %
|
|
|
Foreign
Exchange
|
|
|
|
|
(0.1 %)
|
|
|
|
|
|
|
|
|
|
Earnings Summary
(1) (Dollars in millions)
|
|
|
|
|
|
|
Adjusted Operating
Income ("AOI") (2)
|
$
359.5
|
|
$
353.7
|
|
|
|
|
AOI as % of
Revenue
|
13.9 %
|
|
15.1 %
|
|
(120)
bps
|
(3)
|
|
|
|
|
|
|
|
|
(1) Non-GAAP
financial measure. See "Reconciliation of Non-GAAP Measures" for
additional information.
|
|
(2) Excludes
amortization, restructuring charges, special items, and unallocated
corporate expenses.
|
|
(3) Adjusted
operating margin was lower due to Invitae and the unfavorable
impacts of days and weather.
|
|
Three Months Ended
Dec 31,
|
|
2024
|
|
Requisition
|
|
Price/Mix
|
|
Volume Delta
(4)
|
|
Delta (4)
|
|
Metrics Summary
(1)
|
|
|
|
|
Total
|
6.8 %
|
|
3.4 %
|
|
Organic
(5)
|
4.0 %
|
|
1.1 %
|
|
Base
Business
|
4.6 %
|
|
1.5 %
|
|
COVID-19
Testing
|
(0.6) %
|
|
(0.4) %
|
|
Acquisitions, net of
Divestitures
|
2.8 %
|
|
2.4 %
|
|
Foreign
Exchange
|
— %
|
|
(0.1) %
|
|
|
|
|
|
(4) Column
shows changes versus the three months ended December 31,
2023.
|
|
(5) Organic
price/mix includes lab management agreements.
|
|
LABCORP HOLDINGS INC.
|
|
Biopharma Laboratory
Services Segment Summary
|
|
|
Three Months Ended
December 31,
|
|
|
2024
|
|
2023
|
|
Delta
|
|
|
Revenue
Summary (Dollars in millions)
|
|
|
|
|
|
|
Total
Revenue
|
$
767.0
|
|
$
694.8
|
|
10.4 %
|
(1)
|
|
Organic
|
|
|
|
|
8.9 %
|
|
|
Acquisitions, net of
Divestitures
|
|
|
|
|
— %
|
|
|
Foreign
Exchange
|
|
|
|
|
1.5 %
|
|
|
|
|
|
|
|
|
|
(1) Central
Labs revenue growth of 9.6%, Early Development revenue growth of
12.3%.
|
|
|
|
|
|
|
|
|
Earnings Summary
(2) (Dollars in millions)
|
|
|
|
|
|
|
Adjusted Operating
Income ("AOI") (3)
|
$
130.8
|
(4)
|
$
109.0
|
|
|
|
|
AOI as % of
Revenue
|
17.0 %
|
|
15.7 %
|
|
140
bps
|
(4)
|
|
|
|
|
|
|
|
|
(2) Non-GAAP
financial measure. See "Reconciliation of Non-GAAP Measures" for
additional information.
|
|
(3) Excludes
amortization, restructuring charges, special items, and unallocated
corporate expenses.
|
|
(4) Adjusted
operating income and margin increased due to organic demand and
LaunchPad savings, partially offset by higher personnel
costs.
|
|
As of December
31,
|
|
|
2024
|
|
|
Metrics Summary
(Dollars in billions)
|
|
|
|
TTM Net
Orders
|
$
2.91
|
|
|
TTM
Book-to-Bill
|
1.00
|
|
|
Backlog
|
$
7.99
|
(5)
|
|
Next Twelve Months
Forecast Backlog Conversion
|
$
2.53
|
|
|
|
|
|
(5) Backlog
decreased 3.2% compared to last year due to foreign
exchange
|
|
Guidance for 2025
The following guidance assumes foreign exchange rates effective
as of December 31, 2024, for the full year. Enterprise level
guidance includes the estimated impact from currently anticipated
capital allocation, including acquisitions, share repurchases and
dividends.
|
(Dollars in
billions, except per share data)
|
|
|
|
|
|
Results
|
|
2025
Guidance
|
|
|
|
|
|
|
2024
|
|
Low
|
High
|
|
Revenue
|
|
|
|
|
|
Labcorp Enterprise
(1)(2)
|
$13.01
|
|
6.7 %
|
8.0 %
|
|
Diagnostics
Laboratories (3)
|
$10.14
|
|
6.5 %
|
7.7 %
|
|
Biopharma Laboratory
Services (4)
|
$2.92
|
|
3.0 %
|
5.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
$14.57
|
|
$15.60
|
$16.40
|
|
|
|
|
|
|
Free Cash
Flow
|
$1.10
|
|
$1.10
|
$1.25
|
|
|
|
|
|
|
(1) 2025 Guidance
includes an impact from foreign currency translation of
(0.5%).
|
|
(2) Enterprise level
revenue is presented net of intercompany transaction
eliminations.
|
|
(3) 2025 Guidance
includes an impact from foreign currency translation of
(0.2%).
|
|
(4) 2025 Guidance
includes an impact from foreign currency translation of
(1.4%).
|
Use of Adjusted Measures
The company has provided in
this press release and accompanying tables "adjusted" financial
information that has not been prepared in accordance with GAAP,
including adjusted net income, adjusted EPS (or adjusted net income
per share), adjusted operating income, adjusted operating margin,
free cash flow, and certain segment information. The company
believes these adjusted measures are useful to investors as a
supplement to, but not as a substitute for, GAAP measures, in
evaluating the company's operational performance. The company
further believes that the use of these non-GAAP financial measures
provides an additional tool for investors in evaluating operating
results and trends, and growth and shareholder returns, as well as
in comparing the company's financial results with the financial
results of other companies. However, the company notes that these
adjusted measures may be different from and not directly comparable
to the measures presented by other companies. Reconciliations of
these non-GAAP measures to the most comparable GAAP measures and an
identification of the components that comprise "special items" used
for certain adjusted financial information are included in the
tables accompanying this press release.
The company today is providing an investor relations
presentation with additional information on its business and
operations, which is available in the investor relations section of
the company's website at www.Labcorp.com. Analysts and investors
are directed to the website to review this supplemental
information.
A conference call discussing Labcorp's quarterly results will be
held today at 9:00 a.m. ET and is
available by registering at this link, which will provide a dial-in
number and unique PIN to access the call. It is recommended that
participants join 10 minutes prior to the start of the call,
although participants may register and join at any time during the
call. A live webcast of Labcorp's quarterly conference call on
February 6, 2025, will be available at the Labcorp Investor
Relations website beginning at 9:00
a.m. ET. This webcast will be archived and accessible
through February 2, 2026.
About Labcorp
Labcorp (NYSE: LH) is a global leader of
innovative and comprehensive laboratory services that helps
doctors, hospitals, pharmaceutical companies, researchers and
patients make clear and confident decisions. We provide insights
and advance science to improve health and improve lives through our
unparalleled diagnostics and drug development laboratory
capabilities. The company's nearly 70,000 employees serve clients
in approximately 100 countries, provided support for more than 75%
of the new drugs and therapeutic products approved in 2024 by the
FDA, and perform more than 700 million tests annually for patients
around the world. Learn more about us at www.Labcorp.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking
statements, including, but not limited to, statements with respect
to (i) the estimated 2025 guidance and related assumptions, (ii)
the spin-off of the company's Clinical Development and
Commercialization Services business, now Fortrea Holdings Inc.,
(iii) the impact of various factors on operating and financial
results, including the projected impact of global economic and
market conditions on the company's businesses, operating results,
cash flows and/or financial condition, (iv) future business
strategies, (v) expected savings, synergies and other benefits to
the Company, customers or patients from acquisitions and other
transactions and partnerships, and (vi) opportunities for future
growth.
Each of the forward-looking statements is subject to change
based on various important factors, many of which are beyond the
company's control, including without limitation: (i) the effect of
the holding company reorganization on the company's business
generally; (ii) the failure to receive tax-free treatment with
respect to the spin-off for U.S. federal income purposes; (iii) the
impact of spin-off related items; (iv) personnel costs and
potential difficulties with employee relations and retention; (v)
the trading price of the company's stock, competitive actions and
other unforeseen changes and general uncertainties in the
marketplace; (vi) changes in government regulations, including
healthcare reform; (vii) customer purchasing decisions, including
changes in payer regulations or policies; (viii) adverse actions of
governmental and third-party payers; (ix) changes in testing
guidelines or recommendations; (x) the volume of COVID-19 Testing
performed by the company; (xi) the impact of global geopolitical
events; (xii) the effect of public opinion on the company's
reputation; (xiii) adverse results in material litigation matters;
(xiv) changes in laws and regulations applicable to the company,
including healthcare reform, and changes to their interpretation
and application and the impact of any such changes; (xv) failure to
maintain or develop customer relationships; (xvi) the company's
ability to develop or acquire new products and adapt to
technological changes; (xvii) failure of the company's information
technology, systems, or data security; (xviii) the impact of
potential losses under repurchase agreements; (xix) adverse weather
conditions; (xx) the number of revenue days in a financial period;
(xxi) inflation; (xxii) increased competition; and (xxiii) the
effect of exchange rate fluctuations. These factors, in some cases,
have affected and in the future (together with other factors) could
affect the company's ability to implement the company's business
strategy, and actual results could differ materially from those
suggested by these forward-looking statements. As a result, readers
are cautioned not to place undue reliance on any of the forward-
looking statements.
The company has no obligation to provide any updates to these
forward-looking statements even if its expectations change. All
forward-looking statements are expressly qualified in their
entirety by this cautionary statement. Further information on
potential factors, risks and uncertainties that could affect
operating and financial results is included in the company's most
recent Annual Report on Form 10-K and subsequent Forms 10-Q,
including in each case under the heading RISK FACTORS, and in the
company's other filings with the SEC. The information in this press
release should be read in conjunction with a review of the
company's filings with the SEC including the information in the
company's most recent Annual Report on Form 10-K, and subsequent
Forms 10-Q, under the heading "MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS".
|
LABCORP HOLDINGS INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(In Millions, Except
Per Share Data)
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues
|
$
3,329.4
|
|
$ 3,033.3
|
|
$
13,008.9
|
|
$ 12,161.6
|
|
Cost of
revenues
|
2,433.1
|
|
2,211.9
|
|
9,384.5
|
|
8,796.7
|
|
Gross
profit
|
896.3
|
|
821.4
|
|
3,624.4
|
|
3,364.9
|
|
Selling, general and
administrative expenses
|
595.2
|
|
532.9
|
|
2,230.0
|
|
2,021.4
|
|
Amortization of
intangibles and other assets
|
70.4
|
|
59.2
|
|
256.4
|
|
219.8
|
|
Goodwill and other
asset impairments
|
2.8
|
|
333.8
|
|
5.3
|
|
349.0
|
|
Restructuring and other
charges
|
11.4
|
|
18.3
|
|
46.0
|
|
49.1
|
|
Operating income
(loss)
|
216.5
|
|
(122.8)
|
|
1,086.7
|
|
725.6
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
Interest
expense
|
(63.4)
|
|
(48.8)
|
|
(208.3)
|
|
(199.6)
|
|
Equity method (loss)
income, net
|
(0.7)
|
|
0.1
|
|
(1.4)
|
|
(1.4)
|
|
Investment
income
|
15.0
|
|
6.2
|
|
22.3
|
|
28.8
|
|
Other, net
|
16.4
|
|
18.2
|
|
60.2
|
|
15.5
|
|
Earnings (loss) from
continuing operations before income taxes
|
183.8
|
|
(147.1)
|
|
959.5
|
|
568.9
|
|
Provision for income
taxes
|
40.2
|
|
19.7
|
|
212.4
|
|
188.5
|
|
Earnings (loss) from
continuing operations
|
143.6
|
|
(166.8)
|
|
747.1
|
|
380.4
|
|
Earnings from
discontinued operations, net of tax
|
—
|
|
—
|
|
—
|
|
38.8
|
|
Net earnings
(loss)
|
143.6
|
|
(166.8)
|
|
747.1
|
|
419.2
|
|
Less: Net earnings
attributable to the noncontrolling interest
|
(0.2)
|
|
(0.3)
|
|
(1.1)
|
|
(1.2)
|
|
Net earnings (loss)
attributable to Labcorp Holdings Inc.
|
$ 143.4
|
|
$
(167.1)
|
|
$ 746.0
|
|
$
418.0
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share from continuing operations
|
$ 1.72
|
|
$ (1.97)
|
|
$
8.89
|
|
$
4.35
|
|
Basic earnings per
common share from discontinued operations
|
$
—
|
|
$
—
|
|
$
—
|
|
$
0.45
|
|
Basic earnings (loss)
per common share
|
$ 1.72
|
|
$ (1.97)
|
|
$
8.89
|
|
$
4.80
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share from continuing operations
|
$ 1.70
|
|
$ (1.95)
|
|
$
8.84
|
|
$
4.33
|
|
Diluted earnings per
common share from discontinued operations
|
$
—
|
|
$
—
|
|
$
—
|
|
$
0.44
|
|
Diluted earnings
(loss) per common share
|
$ 1.70
|
|
$ (1.95)
|
|
$
8.84
|
|
$
4.77
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding
|
83.6
|
|
84.9
|
|
83.9
|
|
87.1
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
84.2
|
|
85.5
|
|
84.4
|
|
87.6
|
|
LABCORP HOLDINGS INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(In
Millions)
|
|
|
December
31,
|
|
2024
|
|
2023
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
1,518.7
|
|
$
536.8
|
|
Accounts receivable,
net
|
1,944.1
|
|
1,913.3
|
|
Unbilled
services
|
152.9
|
|
185.4
|
|
Supplies
inventory
|
493.2
|
|
474.6
|
|
Prepaid expenses and
other
|
697.6
|
|
655.3
|
|
Total current
assets
|
4,806.5
|
|
3,765.4
|
|
|
|
|
|
Property, plant and
equipment, net
|
3,045.4
|
|
2,911.8
|
|
Goodwill,
net
|
6,369.7
|
|
6,142.5
|
|
Intangible assets,
net
|
3,488.9
|
|
3,342.0
|
|
Joint venture
partnerships and equity method investments
|
16.3
|
|
26.9
|
|
Other assets,
net
|
652.2
|
|
536.5
|
|
Total assets
|
$
18,379.0
|
|
$
16,725.1
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
875.8
|
|
$
827.5
|
|
Accrued expenses and
other
|
871.2
|
|
804.0
|
|
Unearned
revenue
|
392.2
|
|
421.7
|
|
Short-term operating
lease liabilities
|
184.6
|
|
165.8
|
|
Short-term finance
lease liabilities
|
6.1
|
|
6.4
|
|
Short-term borrowings
and current portion of long-term debt
|
1,000.3
|
|
999.8
|
|
Total current
liabilities
|
3,330.2
|
|
3,225.2
|
|
|
|
|
|
Long-term debt, less
current portion
|
5,331.2
|
|
4,054.7
|
|
Operating lease
liabilities
|
676.3
|
|
648.9
|
|
Financing lease
liabilities
|
74.3
|
|
78.6
|
|
Deferred income taxes
and other tax liabilities
|
383.1
|
|
417.9
|
|
Other
liabilities
|
517.4
|
|
409.3
|
|
Total
liabilities
|
10,312.5
|
|
8,834.6
|
|
|
|
|
|
Commitments and
contingent liabilities
|
|
|
|
|
Noncontrolling
interest
|
14.3
|
|
15.5
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common stock, 83.4 and
83.9 shares outstanding at December 31, 2024 and
2023, respectively
|
7.6
|
|
7.7
|
|
Additional paid-in
capital
|
2.8
|
|
38.4
|
|
Retained
earnings
|
8,303.4
|
|
7,888.2
|
|
Accumulated other
comprehensive loss
|
(261.6)
|
|
(59.3)
|
|
Total shareholders'
equity
|
8,052.2
|
|
7,875.0
|
|
Total liabilities and
shareholders' equity
|
$
18,379.0
|
|
$
16,725.1
|
|
LABCORP HOLDINGS INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(In
Millions)
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
$
143.6
|
|
$ (166.8)
|
|
$
747.1
|
|
$
419.2
|
|
Earnings from
discontinued operations, net of tax
|
—
|
|
—
|
|
—
|
|
(38.8)
|
|
Adjustments to
reconcile net earnings (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
170.6
|
|
146.4
|
|
643.5
|
|
577.3
|
|
Stock
compensation
|
27.3
|
|
27.0
|
|
116.7
|
|
128.7
|
|
Operating lease
right-of-use asset expense
|
48.6
|
|
39.5
|
|
185.3
|
|
168.0
|
|
Goodwill and other
asset impairments
|
2.8
|
|
333.8
|
|
5.3
|
|
349.0
|
|
Deferred income
taxes
|
38.5
|
|
(59.9)
|
|
(20.1)
|
|
(78.1)
|
|
Other, net
|
16.1
|
|
35.0
|
|
62.1
|
|
38.9
|
|
Change in assets and
liabilities (net of effects of acquisitions and
divestitures):
|
|
|
|
|
|
|
|
|
Decrease (increase) in
accounts receivable
|
90.9
|
|
69.8
|
|
(52.3)
|
|
(103.8)
|
|
Decrease (increase) in
unbilled services
|
7.6
|
|
(74.9)
|
|
30.4
|
|
28.5
|
|
Increase in supplies
inventory
|
(14.6)
|
|
(10.4)
|
|
(12.6)
|
|
(0.7)
|
|
Decrease (increase) in
prepaid expenses and other
|
(14.7)
|
|
49.1
|
|
(54.5)
|
|
(25.8)
|
|
Increase (decrease) in
accounts payable
|
210.3
|
|
146.2
|
|
72.1
|
|
(42.4)
|
|
Increase (decrease) in
unearned revenue
|
3.3
|
|
54.8
|
|
(24.6)
|
|
105.5
|
|
Increase (decrease) in
accrued expenses and other
|
46.9
|
|
(10.0)
|
|
(112.6)
|
|
(323.2)
|
|
Net cash provided by
continuing operating activities
|
777.2
|
|
579.6
|
|
1,585.8
|
|
1,202.3
|
|
Net cash provided by
discontinued operating activities
|
—
|
|
—
|
|
—
|
|
125.4
|
|
Net cash provided by
operating activities
|
777.2
|
|
579.6
|
|
1,585.8
|
|
1,327.7
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(112.1)
|
|
(167.2)
|
|
(489.9)
|
|
(453.6)
|
|
Proceeds from sale of
assets
|
1.4
|
|
0.3
|
|
2.0
|
|
0.6
|
|
Proceeds from sale or
distribution of investments
|
—
|
|
—
|
|
—
|
|
6.7
|
|
Purchase of
investments
|
(12.7)
|
|
(8.9)
|
|
(55.0)
|
|
(29.0)
|
|
Proceeds from sale of
business
|
1.6
|
|
—
|
|
15.1
|
|
—
|
|
Acquisition of
businesses, net of cash acquired
|
(87.8)
|
|
(154.8)
|
|
(839.0)
|
|
(671.5)
|
|
Net cash used for
investing activities
|
(209.6)
|
|
(330.6)
|
|
(1,366.8)
|
|
(1,146.8)
|
|
Net cash used in
discontinued investing activities
|
—
|
|
—
|
|
—
|
|
(24.7)
|
|
Net cash used for
investing activities
|
(209.6)
|
|
(330.6)
|
|
(1,366.8)
|
|
(1,171.5)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
revolving credit facilities
|
—
|
|
519.7
|
|
2,463.7
|
|
2,488.2
|
|
Payments on revolving
credit facilities
|
—
|
|
(609.3)
|
|
(2,463.7)
|
|
(2,488.2)
|
|
Proceeds from accounts
receivable securitization
|
—
|
|
—
|
|
300.0
|
|
—
|
|
Proceeds from senior
note offerings
|
—
|
|
—
|
|
2,000.0
|
|
—
|
|
Payments on senior
notes
|
(400.0)
|
|
(300.0)
|
|
(1,000.0)
|
|
(300.0)
|
|
Net share settlement
tax payments from issuance of stock to employees
|
(7.7)
|
|
(0.2)
|
|
(46.4)
|
|
(39.8)
|
|
Net proceeds from
issuance of stock to employees
|
3.2
|
|
—
|
|
56.2
|
|
54.4
|
|
Dividends
paid
|
(60.1)
|
|
(61.1)
|
|
(243.1)
|
|
(254.0)
|
|
Purchase of common
stock
|
(75.1)
|
|
9.0
|
|
(250.1)
|
|
(1,000.0)
|
|
Other
|
(7.0)
|
|
(4.6)
|
|
(36.7)
|
|
(19.6)
|
|
Net cash (used for)
provided by continuing financing activities
|
(546.7)
|
|
(446.5)
|
|
779.9
|
|
(1,559.0)
|
|
Net cash provided by
discontinued financing activities
|
—
|
|
—
|
|
—
|
|
1,499.7
|
|
Net cash (used for)
provided by financing activities
|
(546.7)
|
|
(446.5)
|
|
779.9
|
|
(59.3)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(19.5)
|
|
6.4
|
|
(17.0)
|
|
9.9
|
|
Net increase (decrease)
in cash and cash equivalents
|
1.4
|
|
(191.1)
|
|
981.9
|
|
106.8
|
|
Cash and cash
equivalents at beginning of period
|
1,517.3
|
|
727.9
|
|
536.8
|
|
430.0
|
|
Cash and cash
equivalents at end of period
|
$
1,518.7
|
|
$
536.8
|
|
$
1,518.7
|
|
$
536.8
|
|
LABCORP HOLDINGS INC.
|
|
Condensed Combined
Non-GAAP Segment Information
|
|
(Dollars in
Millions)
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Diagnostics
Laboratories
|
|
|
|
|
|
|
|
|
Revenues
|
$
2,586.2
|
|
$
2,346.9
|
|
$
10,144.3
|
|
$
9,415.1
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income
|
$ 359.5
|
|
$ 353.7
|
|
$
1,606.3
|
|
$
1,591.3
|
|
Adjusted Operating
Margin
|
13.9 %
|
|
15.1 %
|
|
15.8 %
|
|
16.9 %
|
|
|
|
|
|
|
|
|
|
Biopharma Laboratory
Services
|
|
|
|
|
|
|
|
|
Revenues
|
$ 767.0
|
|
$ 694.8
|
|
$
2,922.6
|
|
$
2,774.2
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income
|
$ 130.8
|
|
$ 109.0
|
|
$ 458.9
|
|
$ 396.3
|
|
Adjusted Operating
Margin
|
17.0 %
|
|
15.7 %
|
|
15.7 %
|
|
14.3 %
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
Revenues
|
$
3,329.4
|
|
$
3,033.3
|
|
$
13,008.9
|
|
$
12,161.6
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
Operating Income
|
$ 490.3
|
|
$ 462.7
|
|
$
2,065.2
|
|
$
1,987.6
|
|
Unallocated Corporate
Expense
|
(67.1)
|
|
(67.8)
|
|
(268.2)
|
|
(272.7)
|
|
Total Adjusted
Operating Income
|
$ 423.2
|
|
$ 394.9
|
|
$
1,797.0
|
|
$
1,714.9
|
|
Adjusted Operating
Margin
|
12.7 %
|
|
13.0 %
|
|
13.8 %
|
|
14.1 %
|
The consolidated revenue and adjusted segment operating income
are presented net of intercompany transaction eliminations and
other amounts not used in determining segment performance. Adjusted
operating income and adjusted operating margin are non-GAAP
measures. See the subsequent reconciliation of non-GAAP financial
measures.
|
LABCORP HOLDINGS INC.
|
|
Reconciliation of
Non-GAAP Measures
|
|
(Dollars and Shares in
Millions, Except Per Share Data)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December
31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Adjusted Operating
Income
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
216.5
|
|
$ (122.8)
|
|
$
1,086.7
|
|
$
725.6
|
|
Amortization of
intangibles and other assets (a)
|
|
70.4
|
|
59.2
|
|
256.4
|
|
219.8
|
|
Restructuring and other
charges (b)
|
|
11.4
|
|
18.3
|
|
46.0
|
|
49.1
|
|
Acquisition and
disposition-related costs (c)
|
|
51.3
|
|
16.5
|
|
146.4
|
|
56.0
|
|
Launchpad Costs
(d)
|
|
7.0
|
|
—
|
|
65.7
|
|
—
|
|
Spin off transaction
costs (e)
|
|
—
|
|
22.6
|
|
—
|
|
94.1
|
|
COVID-19 related costs
(f)
|
|
—
|
|
20.7
|
|
—
|
|
59.6
|
|
Asset impairments
(g)
|
|
2.8
|
|
333.8
|
|
5.3
|
|
349.0
|
|
Customer and vendor
cyber-event costs (h)
|
|
16.8
|
|
—
|
|
24.1
|
|
—
|
|
Other
|
|
30.7
|
|
23.2
|
|
86.4
|
|
46.1
|
|
TSA Reimbursement
(i)
|
|
16.3
|
|
23.4
|
|
80.0
|
|
46.1
|
|
CDCS not included in
discontinued operations (j)
|
|
—
|
|
—
|
|
—
|
|
69.5
|
|
Adjusted operating
income
|
|
$
423.2
|
|
$
394.9
|
|
$
1,797.0
|
|
$
1,714.9
|
|
|
|
|
|
|
|
|
|
|
Adjustments impacting
revenues
|
|
$
15.0
|
|
$
—
|
|
$
15.0
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
profit margin
|
|
12.7 %
|
|
13.0 %
|
|
13.8 %
|
|
14.1 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
143.4
|
|
$ (167.1)
|
|
$
746.0
|
|
$
418.0
|
|
Impact of adjustments
to operating income
|
|
206.7
|
|
517.7
|
|
710.3
|
|
919.8
|
|
Losses on venture fund
investments, net (k)
|
|
4.1
|
|
3.4
|
|
11.4
|
|
4.8
|
|
Gain on sale of
business (l)
|
|
(1.5)
|
|
—
|
|
(6.4)
|
|
—
|
|
Pension settlement
(m)
|
|
(2.3)
|
|
—
|
|
—
|
|
10.8
|
|
TSA Reimbursement
(i)
|
|
(16.3)
|
|
(23.4)
|
|
(80.0)
|
|
(46.1)
|
|
Other
|
|
—
|
|
—
|
|
0.3
|
|
0.5
|
|
Income tax impact of
adjustments (n)
|
|
(43.7)
|
|
(48.5)
|
|
(151.3)
|
|
(155.7)
|
|
Earnings from
discontinued operations, net of tax (j)
|
|
—
|
|
—
|
|
—
|
|
(38.8)
|
|
CDCS not included in
discontinued operations (j)
|
|
—
|
|
—
|
|
—
|
|
74.4
|
|
Adjusted net
income
|
|
$
290.4
|
|
$
282.1
|
|
$
1,230.3
|
|
$
1,187.7
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
|
84.2
|
|
85.5
|
|
84.4
|
|
87.6
|
|
Adjusted net income per
share
|
|
$
3.45
|
|
$
3.30
|
|
$
14.57
|
|
$
13.56
|
|
|
|
(a)
|
Amortization of
intangible assets acquired as part of business
acquisitions.
|
|
(b)
|
Restructuring and other
charges represent amounts incurred in connection with the
elimination of redundant positions and facilities within the
organization in connection with our LaunchPad initiatives, the
spin-off of Fortrea Holdings Inc. (Fortrea), and acquisitions or
dispositions of businesses by the company.
|
|
(c)
|
Acquisition and
disposition-related costs include due-diligence legal and advisory
fees, retention bonuses, impact of delayed contract or license
transfers, and other integration or disposition related
activities.
|
|
(d)
|
LaunchPad costs include
non-capitalized costs associated with the implementation of
systems, consolidation of processes, and consulting costs incurred
as part of various business process improvement
initiatives.
|
|
(e)
|
The company incurred
various costs to prepare for the spin-off of Fortrea and
reorganization of the remaining Labcorp business.
|
|
(f)
|
Costs of incremental
operating expenses incurred as a result of the COVID-19
pandemic.
|
|
(g)
|
Asset impairments
relate primarily to goodwill within the early development reporting
unit and other assets deemed impaired.
|
|
(h)
|
The company incurred
cost and additional collection reserves as the result of customer
and vendor cyber events.
|
|
(i)
|
Represents transition
services fees charged to Fortrea related to administrative and IT
systems support. The costs to provide these services are
included in operating income but the service fees are included in
other income.
|
|
(j)
|
These adjustments
remove the impact of the Clinical Development and Commercialization
Services (CDCS) business pursuant to the spin-off of
Fortrea.
|
|
(k)
|
The company makes
investments in companies or investment funds developing promising
technology related to its operations. The company recorded net
gains and losses related to several distributions from venture
funds, increases in the market value of investments, and
impairments of other investments due to the underlying performance
of the investments.
|
|
(l)
|
The company recorded a
gain on the disposition of the Beacon Laboratory Benefits Solutions
business.
|
|
(m)
|
The company incurred a
charge related to the US pension plan due to settlement of certain
obligations to retired employees.
|
|
(n)
|
Income tax impact of
adjustments calculated based on the tax rate applicable to each
item.
|
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SOURCE Labcorp Holdings Inc
