LabCorp Q3 net revenue $2.27 billion, up 46.3%Staff writer ▼ | October 27, 2015
Laboratory Corporation of America Holdings (LabCorp) announced results for the third quarter ended September 30, 2015. Net revenue was $2.27 billion, an increase of 46.3% over last year’s $1.55 billion.
LabCorp The acquisition of Covance contributed $647 million
The remainder of the increase of $71.1 million, or 4.6%, was driven by solid organic volume growth, price, mix and tuck-in acquisitions, partially offset by currency. Organic revenue growth in the quarter, excluding currency, was 4.3%.
Operating income for the quarter was $306.9 million, compared to $241.4 million in the third quarter of 2014. The company recorded restructuring charges and special items of $31.5 million during the third quarter of 2015, compared to $11.3 million during the same period in 2014.
Adjusted operating income (excluding amortization of $47.1 million, restructuring and special items) for the quarter was $385.5 million, or 17.0% of net revenue, compared to $271 million, or 17.5%, in the third quarter of 2014.
The increase in adjusted operating income was due to the Covance acquisition, organic volume growth, price, mix and productivity, partially offset by currency and personnel costs. The decline in margin is due to the mix impact from the acquisition of Covance.
The company recorded net earnings in the quarter of $152.8 million, or $1.49 per diluted share, compared to $137.2 million, or $1.59 per diluted share, last year. Adjusted EPS (excluding amortization, restructuring and special items) increased 15.0% to $2.07 in the quarter, compared to $1.80 in the third quarter of 2014.
“We are extremely pleased with our results this quarter, in which LabCorp Diagnostics had continued strong organic growth, and Covance Drug Development had strong new orders and accelerated revenue growth,” said David P. King, chairman and chief executive officer. ■