Labcorp Announces 2024 Fourth Quarter and Full Year Results
Labcorp (LH) reported strong Q4 and full-year 2024 results, with Q4 revenue reaching $3.33 billion (up 9.8% YoY) and full-year revenue of $13.01 billion (up 7.0% YoY). The company's Q4 diluted EPS improved to $1.70 from $(1.95) last year, while adjusted EPS increased to $3.45 from $3.30.
Free cash flow showed significant improvement, with Q4 at $665.1 million (up from $412.4 million) and full-year at $1.10 billion (up from $748.7 million). The company completed 10 transactions in 2024 and launched new innovative tests in specialty areas.
For 2025, Labcorp projects revenue between $13.88-14.05 billion (7.4% growth at midpoint), adjusted EPS of $15.60-16.40 (9.8% growth at midpoint), and free cash flow of $1.10-1.25 billion (7.2% growth at midpoint).
Labcorp (LH) ha riportato risultati solidi per il quarto trimestre e per l'intero anno 2024, con un fatturato del Q4 di $3,33 miliardi (in aumento del 9,8% su base annua) e un fatturato annuale di $13,01 miliardi (in aumento del 7,0% su base annua). L'utile per azione diluito del Q4 è migliorato a $1,70 rispetto a $(1,95) dell'anno scorso, mentre l'utile per azione rettificato è aumentato a $3,45 da $3,30.
Il flusso di cassa libero ha mostrato un miglioramento significativo, con il Q4 a $665,1 milioni (rispetto a $412,4 milioni) e l'anno intero a $1,10 miliardi (rispetto a $748,7 milioni). L'azienda ha completato 10 operazioni nel 2024 e ha lanciato nuovi test innovativi in settori specializzati.
Per il 2025, Labcorp prevede un fatturato tra $13,88 e $14,05 miliardi (crescita del 7,4% al punto medio), un utile per azione rettificato di $15,60-16,40 (crescita del 9,8% al punto medio) e un flusso di cassa libero di $1,10-1,25 miliardi (crescita del 7,2% al punto medio).
Labcorp (LH) reportó resultados sólidos para el cuarto trimestre y para todo el año 2024, con ingresos del Q4 que alcanzaron $3.33 mil millones (un aumento del 9.8% interanual) y un ingreso anual de $13.01 mil millones (un aumento del 7.0% interanual). El beneficio por acción diluido del Q4 mejoró a $1.70 desde $(1.95) del año pasado, mientras que el beneficio por acción ajustado aumentó a $3.45 desde $3.30.
El flujo de efectivo libre mostró una mejora significativa, con el Q4 en $665.1 millones (aumentando desde $412.4 millones) y el año completo en $1.10 mil millones (aumentando desde $748.7 millones). La empresa completó 10 transacciones en 2024 y lanzó nuevas pruebas innovadoras en áreas especializadas.
Para 2025, Labcorp proyecta ingresos entre $13.88 y $14.05 mil millones (crecimiento del 7.4% en el punto medio), un beneficio por acción ajustado de $15.60-16.40 (crecimiento del 9.8% en el punto medio) y un flujo de efectivo libre de $1.10-1.25 mil millones (crecimiento del 7.2% en el punto medio).
랩코프 (LH)는 2024년 4분기 및 연간 실적이 우수하게 나타났다고 보고했으며, 4분기 매출은 33억 3천만 달러(전년 대비 9.8% 증가)로, 연간 매출은 130억 1천만 달러(전년 대비 7.0% 증가)에 달했습니다. 4분기 희석 주당순이익(EPS)은 작년의 $(1.95)에서 $1.70으로 개선되었으며, 조정 주당순이익은 $3.30에서 $3.45로 증가했습니다.
자유 현금 흐름은 4분기 6억 6천 5백 10만 달러(4억 1천 2백 40만 달러에서 증가) 및 연중 11억 달러(지난해 7억 4천 8백 70만 달러에서 증가)로 상당한 개선을 보였습니다. 회사는 2024년 동안 10건의 거래를 완료했으며 전문 분야에서 새로운 혁신적인 테스트를 출시했습니다.
2025년을 위해 랩코프는 매출을 138억 8천만에서 140억 5천만 달러(중간값에서 7.4% 성장)로, 조정 주당순이익을 $15.60-16.40(중간값에서 9.8% 성장)으로, 자유 현금 흐름을 $11억에서 12억 5천만 달러(중간값에서 7.2% 성장)로 예상하고 있습니다.
Labcorp (LH) a annoncé de solides résultats pour le quatrième trimestre et pour l'année entière 2024, avec des revenus du Q4 atteignant 3,33 milliards de dollars (augmentation de 9,8 % d'une année sur l'autre) et des revenus annuels de 13,01 milliards de dollars (augmentation de 7,0 % d'une année sur l'autre). Le bénéfice par action dilué du Q4 a amélioré à 1,70 $ contre (1,95 $) l'année dernière, tandis que le bénéfice par action ajusté est passé de 3,30 $ à 3,45 $.
Le flux de trésorerie disponible a montré une amélioration significative, avec le Q4 à 665,1 millions de dollars (contre 412,4 millions de dollars) et l'année entière à 1,10 milliard de dollars (contre 748,7 millions de dollars). L'entreprise a conclu 10 transactions en 2024 et a lancé de nouveaux tests innovants dans des domaines spécialisés.
Pour 2025, Labcorp prévoit des revenus entre 13,88 et 14,05 milliards de dollars (croissance de 7,4 % en moyenne), un bénéfice par action ajusté de 15,60 à 16,40 $ (croissance de 9,8 % en moyenne) et un flux de trésorerie disponible de 1,10 à 1,25 milliard de dollars (croissance de 7,2 % en moyenne).
Labcorp (LH) hat starke Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet, wobei der Umsatz im Q4 3,33 Milliarden US-Dollar (ein Anstieg von 9,8% gegenüber dem Vorjahr) und der Gesamtumsatz 13,01 Milliarden US-Dollar (ein Anstieg von 7,0% gegenüber dem Vorjahr) betrug. Der verwässerte Gewinn pro Aktie im Q4 verbesserte sich auf 1,70 $ von (1,95 $) im letzten Jahr, während der bereinigte Gewinn pro Aktie auf 3,45 $ von 3,30 $ anstieg.
Der freie Cashflow zeigte eine signifikante Verbesserung, wobei der Q4 bei 665,1 Millionen US-Dollar (von 412,4 Millionen US-Dollar) und der Gesamtjahreswert bei 1,10 Milliarden US-Dollar (von 748,7 Millionen US-Dollar) lag. Das Unternehmen schloss 2024 insgesamt 10 Transaktionen ab und führte neue innovative Tests in spezialisierten Bereichen ein.
Für 2025 prognostiziert Labcorp einen Umsatz von 13,88 bis 14,05 Milliarden US-Dollar (Wachstum von 7,4% im Durchschnitt), einen bereinigten Gewinn pro Aktie von 15,60 bis 16,40 US-Dollar (Wachstum von 9,8% im Durchschnitt) und einen freien Cashflow von 1,10 bis 1,25 Milliarden US-Dollar (Wachstum von 7,2% im Durchschnitt).
- Q4 revenue increased 9.8% YoY to $3.33 billion
- Full-year revenue grew 7.0% to $13.01 billion
- Q4 free cash flow improved significantly to $665.1 million from $412.4 million
- Full-year free cash flow increased to $1.10 billion from $748.7 million
- Adjusted EPS grew to $14.57 from $13.56 for full-year 2024
- Strong 2025 guidance with projected 7.4% revenue growth and 9.8% adjusted EPS growth
- Adjusted operating margin decreased 40 bps in Q4 to 12.7%
- Diagnostics Laboratories segment margin declined 120 bps to 13.9%
- Backlog decreased 3.2% compared to last year
Insights
Labcorp's Q4 and FY2024 results reveal a compelling growth story driven by both organic expansion and strategic acquisitions. The
The Diagnostics Laboratories segment shows strong momentum with
The company's capital allocation strategy remains balanced, with
The 2025 guidance implies continued momentum across both segments, with Enterprise revenue growth of
Company Provides 2025 Guidance
- Results from Continuing Operations versus last year:
- Revenue: Q4 of
$3.33 billion $3.03 billion $13.01 billion $12.16 billion - Diluted EPS: Q4 of
$1.70 $(1.95) $8.84 $4.33 - Adjusted EPS: Q4 of
$3.45 $3.30 $14.57 $13.56 - Free Cash Flow: Q4 of
$665.1 million $412.4 million $1.10 billion $748.7 million
- Revenue: Q4 of
- 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 $14.05 billion 7.4% - Adjusted EPS of
$15.60 $16.40 9.8% - Free Cash Flow of
$1.10 billion $1.25 billion 7.2%
- Revenue of
"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
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 | $ 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 | ||||||||
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 | $ 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 $6.33 billion - During the quarter, the company invested
$87.8 million $60.1 million $75.1 million - During the year, the company invested
$839.0 million $243.1 million $250.1 million
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 | ||||||
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 | ||
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) | 6.7 % | 8.0 % | ||
Diagnostics Laboratories (3) | 6.5 % | 7.7 % | ||
Biopharma Laboratory Services (4) | 3.0 % | 5.0 % | ||
Adjusted EPS | ||||
Free Cash Flow | ||||
(1) 2025 Guidance includes an impact from foreign currency translation of ( | ||||
(2) Enterprise level revenue is presented net of intercompany transaction eliminations. | ||||
(3) 2025 Guidance includes an impact from foreign currency translation of ( | ||||
(4) 2025 Guidance includes an impact from foreign currency translation of ( |
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
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
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 | Year Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues | $ 3,329.4 | $ 13,008.9 | |||||
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 | 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 | 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 | |||||||
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 | 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 | 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
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