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 17, 2006
(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 dated May 17, 2006.
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) |
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| Date: May 17, 2006 | By: | /s/Bradford T. Smith | ||
| Bradford T. Smith, Executive Vice President and Secretary |
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Thomas P. Mac Mahon
Chairman and Chief Executive Officer
Annual Meeting
May 17, 2006
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, 2005, and
subsequent filings.
2
The Clinical Laboratory Testing
Market - $40 billion Annually
Independent clinical lab share
is $16 billion
Represents 2% to 3% of all
health care spending
Influences /directs
approximately 80% of health
care spending
Rapidly evolving technology,
emphasis on preventative
medicine and aging of
population are all driving
growth
Has grown at a CAGR of
between 5% and 6%
Source: Company estimates, industry reports and 2005 revenue for LabCorp.
3
Profile of LabCorp
A leader in the esoteric and genomic testing
market and second-largest clinical laboratory
company in North America
Offers a broad range of routine and
esoteric/genomic tests
Conducts approximately 1.1 million tests daily on
more than 360,000 specimens
Provides lab services to physicians and other
health care providers
Approximately 24,000 employees nationwide
4
Primary Testing Locations
Primary LabCorp Testing Locations
Corporate Headquarters
Burlington, NC
5
LabCorp’s Strategy
To lead the industry in achieving long-
term
growth and profitability by
strengthening
our nationwide core
testing business and expanding
our
higher-growth, higher-value esoteric and
genomic businesses.
6
Strategic Focus Areas
Scientific
Leadership
Managed
Care
Customer
Retention
-Licensing/partnerships
-Cancer
-Specimen tracking
-Call center consolidation
-Report improvement
-Acquisitions
-Appropriate prices
-Reduce leakage
-Value of new lab tests
-Customer connectivity
7
LabCorp’s Investment and
Performance Fundamentals
History of Strong Financial
Performance
Significant Cash Generator
Industry leading EBITDA margins
Strong Balance Sheet
Investment Grade Credit Ratings
8
2005 Achievements
Expanded our national strategic partnership with
Wellpoint – Georgia, Nevada
1st national laboratory to offer Cytyc’s ThinPrep
Imaging System
Completed acquisitions of US LABS and
Esoterix
Operating cash flow of $574.2 million
Repurchased approximately $588.5 million of
LabCorp stock
9
2006 Achievements To Date
Diluted EPS of $0.78 (1)
EBITDA margin of 26.1% of sales
Increased revenues 9.9% (4.6% volume;
5.3% price)
Operating cash flow of $178.6 million
Repurchased $185.1 million of LabCorp
stock
(1) Excluding the $0.02 per diluted share impact of the required change in accounting for stock based compensation.
10
Five-Year Revenue and EPS Trend
Revenue CAGR of 11% - Diluted EPS CAGR of 22%
(1)
(1) Excluding the $0.09 per diluted share impact in 2005 of restructuring and other special
charges, and a non-recurring investment loss.
11
LabCorp Common Stock Performance
Stock Price On Annual Meeting Date
(1) Closing price on May 16, 2006
(1)
12
Reconciliation of Non-GAAP Financial Measures ($ in millions)
13
