LabCorp Announces Record 2017 Fourth Quarter and Full Year Results and Provides 2018 Guidance
- Net Revenue: Q4 of
$2.7 billion , up 13% over 2016; Full year of$10.2 billion , up 8% over 2016 - Diluted EPS: Q4 of
$6.81 , up 289% over 2016; Full year of$12.21 , up 74% over 2016 - Adjusted EPS: Q4 of
$2.45 , up 14% over 2016; Full year of$9.60 , up 9% over 2016 - Free Cash Flow: Q4 of
$468 million , up 25% from 2016; Full year of$1.1 billion , up 28% over 2016 - 2018 Adjusted EPS guidance of
$11.30 to $11.70 - 2018 Free Cash Flow guidance of
$1.1 billion to $1.2 billion
"We achieved outstanding full year results, highlighted by revenue over
Consolidated Results
Fourth Quarter Results
Net revenue for the quarter was
Operating income for the quarter was
Net earnings in the quarter were
Adjusted EPS (excluding tax reform, amortization, restructuring charges and special items) were
Operating cash flow for the quarter was
At the end of the quarter, the Company’s cash balance and total debt were
Full Year Results
Net revenue was
Operating income was
Net earnings for 2017 were
Operating cash flow was
During the year, the Company invested approximately
***
The following segment results exclude amortization, restructuring charges, special items and unallocated corporate expenses.
Fourth Quarter Segment Results
LabCorp Diagnostics
Net revenue for the quarter was
Adjusted operating income (excluding amortization, restructuring charges and special items) for the quarter was
Covance Drug Development
Net revenue for the quarter was
Adjusted operating income (excluding amortization, restructuring charges and special items) for the quarter was
Net orders and net book-to-bill during the trailing twelve months were
The Company commenced the LaunchPad initiative in Covance Drug Development in mid-2017, focused on right-sizing the business, re-engineering Covance’s drug development solutions, integrating new tools and technology, and sustainably enhancing the employee and customer experience. The Company expects the initiative to achieve additional net savings of
Outlook for 2018
The following guidance includes the estimated impact from adoption of the new revenue recognition accounting standard (ASC 606) as of
- Revenue growth of 9.5% to 11.5% over 2017 restated revenue of
$10.42 billion , which includes the benefit of approximately 60 basis points of foreign currency translation and equates to constant currency revenue growth of 8.9% to 10.9%. - Revenue growth in LabCorp Diagnostics of 3.0% to 5.0% over 2017 restated revenue of
$6.86 billion , which includes the negative impact of the Protecting Access to Medicare Act (PAMA) as well as the benefit of approximately 20 basis points of foreign currency translation. This outlook equates to constant currency revenue growth of 2.8% to 4.8%. - Revenue growth in Covance Drug Development of 20.0% to 24.0% over 2017 restated revenue of
$3.56 billion , which includes the benefit of approximately 140 basis points of foreign currency translation and equates to constant currency revenue growth of 18.6% to 22.6%. - Adjusted EPS of
$11.30 to $11.70 , an increase of approximately 17.7% to 21.9% as compared to$9.60 in 2017. The expected growth in adjusted EPS includes the benefit of an assumed lower tax rate in 2018 of 25%, contributing approximately$1.30 in adjusted EPS over 2017. - Free cash flow (operating cash flow less capital expenditures) of
$1.1 billion to $1.2 billion , compared to$1.1 billion in 2017.
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 EPS, Adjusted Operating Income, 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 are included in the tables accompanying this press release.
The Company today is furnishing a Current Report on Form 8-K that will include additional information on its business and operations. This information will also be available in the investor relations section of the Company's website at www.labcorp.com. Analysts and investors are directed to the Current Report on Form 8-K and the website to review this supplemental information.
A conference call discussing LabCorp's quarterly results will be held today at
About LabCorp
LabCorp (NYSE: LH), an
This press release contains forward-looking statements including but not limited to statements with respect to estimated 2018 guidance and the related assumptions, the impact of various factors on operating and financial results, expected savings and synergies (including from the LaunchPad initiative and from acquisitions), and the opportunities for future growth. Each of the forward-looking statements is subject to change based on various important factors, including without limitation, competitive actions and other unforeseen changes and general uncertainties in the marketplace, changes in government regulations, including healthcare reform, customer purchasing decisions, including changes in payer regulations or policies, other adverse actions of governmental and third-party payers, changes in testing guidelines or recommendations, adverse results in material litigation matters, the impact of changes in tax laws and regulations, failure to maintain or develop customer relationships, our ability to develop or acquire new products and adapt to technological changes, failure in information technology, systems or data security, employee relations, and the effect of exchange rate fluctuations.Actual results could differ materially from those suggested by these forward-looking statements. The Company has no obligation to provide any updates to these forward-looking statements even if its expectations change. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the Company’s Form 10-K for the year ended
- End of Text -
- Tables to Follow -
| LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
| (Dollars in Millions, except per share data) | ||||||||||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended |
|||||||||||||||||||
|
December 31 |
December 31 |
|||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
| Net revenues | $ | 2,701.5 | $ | 2,387.3 | $ | 10,205.9 | $ | 9,437.2 | ||||||||||||
| Reimbursable out-of-pocket expenses | 94.8 | 41.1 | 235.5 | 204.6 | ||||||||||||||||
| Total revenues | 2,796.3 | 2,428.4 | 10,441.4 | 9,641.8 | ||||||||||||||||
| Net cost of revenues | 1,785.7 | 1,598.8 | 6,741.9 | 6,256.2 | ||||||||||||||||
| Reimbursable out-of-pocket expenses | 94.8 | 41.1 | 235.5 | 204.6 | ||||||||||||||||
| Total cost of revenues | 1,880.5 | 1,639.9 | 6,977.4 | 6,460.8 | ||||||||||||||||
| Gross profit | 915.8 | 788.5 | 3,464.0 | 3,181.0 | ||||||||||||||||
| Selling, general and administrative expenses | 492.4 | 406.5 | 1,812.4 | 1,630.7 | ||||||||||||||||
| Amortization of intangibles and other assets | 62.9 | 48.8 | 216.5 | 179.5 | ||||||||||||||||
| Restructuring and other special charges | 6.3 | 9.8 | 70.9 | 58.4 | ||||||||||||||||
| Operating income | 354.2 | 323.4 | 1,364.2 | 1,312.4 | ||||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest expense | (67.8 | ) | (52.9 | ) | (235.1 | ) | (219.1 | ) | ||||||||||||
| Equity method income, net | 1.3 | 2.0 | 11.3 | 7.9 | ||||||||||||||||
| Investment income | 0.7 | 0.2 | 2.1 | 1.7 | ||||||||||||||||
| Other, net | 0.6 | 3.9 | (7.6 | ) | 2.6 | |||||||||||||||
| Earnings before income taxes | 289.0 | 276.6 | 1,134.9 | 1,105.5 | ||||||||||||||||
| Provision (benefit) for income taxes | (420.2 | ) | 92.0 | (139.1 | ) | 372.3 | ||||||||||||||
| Net earnings | 709.2 | 184.6 | 1,274.0 | 733.2 | ||||||||||||||||
|
Less: Net earnings attributable to the noncontrolling interest |
(2.4 | ) | (0.2 | ) | (5.8 | ) | (1.1 | ) | ||||||||||||
|
Net earnings attributable to Laboratory Corporation of America Holdings |
$ | 706.8 | $ | 184.4 | $ | 1,268.2 | $ | 732.1 | ||||||||||||
| Basic earnings per common share | $ | 6.91 | $ | 1.79 | $ | 12.39 | $ | 7.14 | ||||||||||||
| Diluted earnings per common share | $ | 6.81 | $ | 1.75 | $ | 12.21 | $ | 7.02 | ||||||||||||
| Weighted average basic shares outstanding | 102.2 | 103.3 | 102.4 | 102.5 | ||||||||||||||||
| Weighted average diluted shares outstanding | 103.7 | 105.1 | 103.9 | 104.3 | ||||||||||||||||
| LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES | |||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||
| (Dollars in Millions, except per share data) | |||||||||||||
| December 31, | December 31, | ||||||||||||
| 2017 | 2016 | ||||||||||||
| ASSETS | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 316.7 | $ | 433.6 | |||||||||
|
Accounts receivable, net of allowance for doubtful accounts of $260.9 and $235.6 at December 31, 2017 and 2016, respectively |
1,481.3 | 1,328.7 | |||||||||||
| Unbilled services | 235.6 | 190.0 | |||||||||||
| Inventory | 227.6 | 205.2 | |||||||||||
| Prepaid expenses and other | 421.4 | 321.2 | |||||||||||
| Total current assets | 2,682.6 | 2,478.7 | |||||||||||
| Property, plant and equipment, net | 1,748.9 | 1,718.6 | |||||||||||
| Goodwill | 7,530.0 | 6,424.4 | |||||||||||
| Intangible assets, net | 4,340.8 | 3,400.5 | |||||||||||
| Joint venture partnerships and equity method investments | 58.4 | 57.6 | |||||||||||
| Deferred income tax assets | 1.9 | 2.1 | |||||||||||
| Other assets, net | 205.4 | 165.1 | |||||||||||
| Total assets | $ | 16,568.0 | $ | 14,247.0 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 663.0 | $ | 508.4 | |||||||||
| Accrued expenses and other | 632.9 | 595.2 | |||||||||||
| Unearned revenue | 332.7 | 176.0 | |||||||||||
| Current portion of long-term debt | 417.5 | 549.5 | |||||||||||
| Total current liabilities | 2,046.1 | 1,829.1 | |||||||||||
| Long-term debt, less current portion | 6,344.6 | 5,300.0 | |||||||||||
| Deferred income taxes and other tax liabilities | 948.3 | 1,204.9 | |||||||||||
| Other liabilities | 378.2 | 392.0 | |||||||||||
| Total liabilities | 9,717.2 | 8,726.0 | |||||||||||
| Commitments and contingent liabilities | - | - | |||||||||||
| Noncontrolling interest | 20.8 | 15.2 | |||||||||||
| Shareholders' equity: | |||||||||||||
| Common stock | 12.0 | 12.1 | |||||||||||
| Additional paid-in capital | 1,989.8 | 2,131.7 | |||||||||||
| Retained earnings | 6,224.0 | 4,955.8 | |||||||||||
| Less common stock held in treasury | (1,060.1 | ) | (1,012.7 | ) | |||||||||
| Accumulated other comprehensive income | (335.7 | ) | (581.1 | ) | |||||||||
| Total shareholders' equity | 6,830.0 | 5,505.8 | |||||||||||
| Total liabilities and shareholders' equity | $ | 16,568.0 | $ | 14,247.0 | |||||||||
| LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES | |||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||||
| (Dollars in Millions) | |||||||||||||||||||||||||||
| For the | For the | For the | For the | ||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||||||
| Net earnings | $ | 709.2 | $ | 184.6 | $ | 1,274.0 | $ | 733.2 | |||||||||||||||||||
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|||||||||||||||||||||||||||
| Depreciation and amortization | 145.0 | 130.3 | 533.2 | 499.2 | |||||||||||||||||||||||
| Stock compensation | 23.9 | 27.7 | 109.7 | 109.6 | |||||||||||||||||||||||
| Loss / (Gain) on sale of assets | (0.8 | ) | (6.9 | ) | 1.5 | (9.2 | ) | ||||||||||||||||||||
| Accreted interest on zero-coupon subordinated notes | - | 0.3 | 0.3 | 1.6 | |||||||||||||||||||||||
| Cumulative earnings less than (in excess of) | |||||||||||||||||||||||||||
| distributions from equity affiliates | 0.9 | 0.8 | 0.5 | 1.2 | |||||||||||||||||||||||
| Asset impairment | - | - | 23.5 | - | |||||||||||||||||||||||
| Deferred income taxes | (542.1 | ) | 49.5 | (542.2 | ) | 54.7 | |||||||||||||||||||||
| Change in assets and liabilities (net of effects of acquisitions): | |||||||||||||||||||||||||||
| (Increase) decrease in accounts receivable, net | 80.9 | 23.7 | (2.1 | ) | (85.5 | ) | |||||||||||||||||||||
| (Increase) decrease in unbilled services | 32.2 | 26.3 | (8.3 | ) | (33.4 | ) | |||||||||||||||||||||
| (Increase) in inventories | (10.0 | ) | (4.8 | ) | (16.4 | ) | (9.6 | ) | |||||||||||||||||||
| (Increase) decrease in prepaid expenses and other | 3.5 | (1.0 | ) | (20.3 | ) | (20.5 | ) | ||||||||||||||||||||
| (Decrease) increase in accounts payable | 56.0 | 47.6 | 85.6 | (8.7 | ) | ||||||||||||||||||||||
| (Decrease) increase in deferred revenue | 9.0 | 6.5 | 19.0 | 29.9 | |||||||||||||||||||||||
| (Decrease) in accrued expenses and other | 56.3 | (35.7 | ) | 1.4 | (86.6 | ) | |||||||||||||||||||||
| Net cash provided by operating activities | 564.0 | 448.9 | 1,459.4 | 1,175.9 | |||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||
| Capital expenditures | (96.1 | ) | (74.3 | ) | (312.9 | ) | (278.9 | ) | |||||||||||||||||||
| Proceeds from sale of assets | 4.3 | 6.9 | 5.5 | 30.8 | |||||||||||||||||||||||
| Proceeds from sale of investments | - | - | - | 13.5 | |||||||||||||||||||||||
| Acquisition of licensing technology | (0.2 | ) | - | (2.5 | ) | - | |||||||||||||||||||||
| Investments in equity affiliates | (3.0 | ) | (0.4 | ) | (36.2 | ) | (12.5 | ) | |||||||||||||||||||
| Acquisitions of businesses, net of cash acquired | (83.3 | ) | (151.8 | ) | (1,882.6 | ) | (548.6 | ) | |||||||||||||||||||
| Net cash used for investing activities | (178.3 | ) | (219.6 | ) | (2,228.7 | ) | (795.7 | ) | |||||||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||||||
| Proceeds from senior notes offerings | - | - | 1,200.0 | - | |||||||||||||||||||||||
| Proceeds from term loan | - | - | 750.0 | - | |||||||||||||||||||||||
| Payments on term loan | (443.0 | ) | (150.0 | ) | (493.0 | ) | (150.0 | ) | |||||||||||||||||||
| Proceeds from revolving credit facilities | 68.5 | 139.5 | 1,392.2 | 139.5 | |||||||||||||||||||||||
| Payments on revolving credit facilities | (68.5 | ) | (139.5 | ) | (1,392.2 | ) | (139.5 | ) | |||||||||||||||||||
| Payments on senior notes | (0.1 | ) | (129.7 | ) | (500.1 | ) | (454.7 | ) | |||||||||||||||||||
| Payments on zero-coupon subordinated notes | (0.1 | ) | (22.2 | ) | (33.9 | ) | (53.7 | ) | |||||||||||||||||||
| Debt issuance costs | (1.7 | ) | - | (15.3 | ) | - | |||||||||||||||||||||
| Payments on long-term lease obligations | (1.7 | ) | (2.4 | ) | (7.7 | ) | (8.4 | ) | |||||||||||||||||||
| Noncontrolling interest distributions | (0.2 | ) | (0.4 | ) | (1.0 | ) | (2.1 | ) | |||||||||||||||||||
| Deferred acquisition costs | (1.0 | ) | (2.7 | ) | (2.6 | ) | (7.6 | ) | |||||||||||||||||||
| Net proceeds from issuance of stock to employees | 8.4 | 3.2 | 73.6 | 70.6 | |||||||||||||||||||||||
| Purchase of common stock | (40.0 | ) | (43.9 | ) | (338.1 | ) | (43.9 | ) | |||||||||||||||||||
| Net cash provided by (used for) financing activities | (479.4 | ) | (348.1 | ) | 631.9 | (649.8 | ) | ||||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1.1 | (15.2 | ) | 20.5 | (13.2 | ) | |||||||||||||||||||||
| Net decrease in cash and cash equivalents | (92.6 | ) | (134.0 | ) | (116.9 | ) | (282.8 | ) | |||||||||||||||||||
| Cash and cash equivalents at beginning of period | 409.3 | 567.6 | 433.6 | 716.4 | |||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 316.7 | $ | 433.6 | $ | 316.7 | $ | 433.6 | |||||||||||||||||||
| LABORATORY CORPORATION OF AMERICA HOLDINGS | ||||||||||||||||
| Condensed Combined Non-GAAP Pro Forma Segment Information | ||||||||||||||||
| (in millions) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
|
LabCorp Diagnostics |
||||||||||||||||
| Net Revenue | $ | 1,816.3 | $ | 1,671.8 | $ | 7,170.5 | $ | 6,593.9 | ||||||||
| Adjusted Operating Income | $ | 356.5 | $ | 317.8 | $ | 1,446.3 | $ | 1,322.9 | ||||||||
| Adjusted Operating Margin | 19.6 | % | 19.0 | % | 20.2 | % | 20.1 | % | ||||||||
|
Covance Drug Development |
||||||||||||||||
| Net Revenue | $ | 886.1 | $ | 715.6 | $ | 3,037.2 | $ | 2,842.2 | ||||||||
| Adjusted Operating Income | $ | 134.9 | $ | 106.5 | $ | 422.4 | $ | 412.7 | ||||||||
| Adjusted Operating Margin | 15.2 | % | 14.9 | % | 13.9 | % | 14.5 | % | ||||||||
|
Consolidated |
||||||||||||||||
| Net Revenue | $ | 2,701.6 | $ | 2,387.3 | $ | 10,205.9 | $ | 9,435.6 | ||||||||
| Adjusted Segment Operating Income | $ | 491.4 | $ | 424.3 | $ | 1,868.7 | $ | 1,735.6 | ||||||||
| Unallocated corporate expense | $ | (35.2 | ) | $ | (36.5 | ) | $ | (137.4 | ) | $ | (145.4 | ) | ||||
| Consolidated Adjusted Operating Income | $ | 456.2 | $ | 387.8 | $ | 1,731.3 | $ | 1,590.2 | ||||||||
| Adjusted Operating Margin | 16.9 | % | 16.2 | % | 17.0 | % | 16.9 | % | ||||||||
The Consolidated Net Revenue and Adjusted Segment Operating Income are presented net of intersegment transaction eliminations. Covance Drug Development’s results for the three and twelve-month periods ended
Effective
| Twelve Months Ended | Twelve Months Ended | |||||||
|
(Dollars in millions) |
December 31, 2017 | December 31, 2017 | ||||||
| As Reported | Preliminary Restatement | |||||||
|
LabCorp Diagnostics (1) |
||||||||
| Net Revenue | $ | 7,170.5 | $ | 6,858.0 | ||||
| Adjusted Operating Income | $ | 1,446.3 | $ | 1,446.3 | ||||
| Adjusted Operating Margin | 20.2 | % | 21.1 | % | ||||
|
|
||||||||
|
Covance Drug Development (2) |
||||||||
| Net Revenue | $ | 3,037.2 | $ | 3,562.4 | ||||
| Adjusted Operating Income | $ | 422.4 | $ | 425.7 | ||||
| Adjusted Operating Margin | 13.9 | % | 11.9 | % | ||||
|
Consolidated (1) (2) |
||||||||
| Net Revenue | $ | 10,205.9 | $ | 10,418.6 | ||||
| Adjusted Segment Operating Income | $ | 1,868.7 | $ | 1,872.0 | ||||
| Unallocated corporate expense | $ | (137.4 | ) | $ | (137.4 | ) | ||
| Consolidated Adjusted Operating Income | $ | 1,731.3 | $ | 1,734.6 | ||||
| Adjusted Operating Margin | 17.0 | % | 16.6 | % | ||||
(1) In LabCorp Diagnostics, the impact of the accounting change will reduce revenue and increase margins, as bad debt will be treated as a reduction in revenue rather than selling, general and administrative expense.
(2) In Covance Drug Development, the impact of this accounting change will increase revenue and cost of revenue, resulting in lower margins due to the inclusion of investigator fees and other pass-through expenses in both categories.
| LABORATORY CORPORATION OF AMERICA HOLDINGS | |||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
|
Adjusted Operating Income |
2017 | 2016 | 2017 | 2016 | |||||||||||||
| Operating income | $ | 354.2 | $ | 323.4 | $ | 1,364.2 | $ | 1,312.4 | |||||||||
| Acquisition-related costs | 14.1 | 3.3 | 49.7 | 18.4 | |||||||||||||
| Restructuring and other special charges | 6.3 | 9.8 | 70.9 | 58.4 | |||||||||||||
| Consulting fees and executive transition expenses | 1.3 | 1.4 | 4.4 | 9.3 | |||||||||||||
| Wind-down of minimum volume contract operations | - | 0.6 | - | 4.6 | |||||||||||||
| LaunchPad and integration implementation costs | 17.4 | 0.5 | 25.6 | 7.6 | |||||||||||||
| Amortization of intangibles and other assets | 62.9 | 48.8 | 216.5 | 179.5 | |||||||||||||
| Adjusted operating income | $ | 456.2 | $ | 387.8 | $ | 1,731.3 | $ | 1,590.2 | |||||||||
|
Adjusted EPS |
|||||||||||||||||
| Diluted earnings per common share | $ | 6.81 | $ | 1.75 | $ | 12.21 | $ | 7.02 | |||||||||
| One-time benefit from Tax Cuts and Jobs Act | (5.00 | ) | - | (5.00 | ) | - | |||||||||||
| Restructuring and special items | 0.23 | 0.08 | 0.98 | 0.64 | |||||||||||||
| Amortization expense | 0.41 | 0.32 | 1.41 | 1.17 | |||||||||||||
| Adjusted EPS | $ | 2.45 | $ | 2.15 | $ | 9.60 | $ | 8.83 | |||||||||
|
Free Cash Flow: |
|||||||||||||||||
| Net cash provided by operating activities | $ | 564.0 | $ | 448.9 | $ | 1,459.4 | $ | 1,175.9 | |||||||||
| Less: Capital expenditures | (96.1 | ) | (74.3 | ) | (312.9 | ) | (278.9 | ) | |||||||||
| Free cash flow | $ | 467.9 | $ | 374.6 | $ | 1,146.5 | $ | 897.0 | |||||||||
Notes to Reconciliation of Non-GAAP Financial Measures
1) During the fourth quarter of 2017, the Company recorded net restructuring and other special charges of
The Company incurred legal and other costs of
The after tax impact of these charges decreased net earnings for the quarter ended
During the first three quarters of 2017, the Company recorded net restructuring and other special charges of
The Company incurred legal and other costs of
The after tax impact of these combined charges decreased net earnings for the year ended
2) As a result of the passage of the TCJA in the fourth quarter of 2017, the Company recorded a net reduction of its provision for income taxes of
3) During the fourth quarter of 2016, the Company recorded net restructuring charges and special items of
The Company incurred
The Company also recorded a
During the first three quarters of 2016, the Company recorded net restructuring charges and other special charges of
The Company incurred
The Company also incurred
The after tax impact of these net charges decreased net earnings for the year ended
4) The Company continues to grow the business through acquisitions and uses Adjusted EPS excluding amortization as a measure of operational performance, growth and shareholder returns. The Company believes adjusting EPS for amortization provides investors with better insight into the operating performance of the business. For the quarters ended
View source version on businesswire.com: http://www.businesswire.com/news/home/20180206005700/en/
Source:
LabCorp
Investors
Scott Frommer, 336-436-5076
[email protected]
or
Media
Pattie Kushner, 336-436-8263
[email protected]