LabCorp third-quarter cash flow $155 million, announces stock repurchase plan

By Lisa Kerner

Charlotte, N.C., Oct. 24 - Laboratory Corp. of America Holdings (LabCorp) saw its cash flow reach $155 million and earnings per share increase 20% for the third quarter ended Sept. 30.

The company ended the quarter with cash and short-term investments of $320.7 million, according to a company news release.

In addition to announcing its quarterly results, LabCorp said a newly authorized stock repurchase program allows the company to purchase up to $500 million of its common stock. This is in addition to LabCorp's current remaining authorization of $100 million.

Net earnings for the quarter were up 12% at $112.9 million during the third quarter from third-quarter 2005 net earnings of $100.7 million. Earnings per share increased 20% to $0.84 from $0.70 per share in the prior-year period.

LabCorp's net sales rose 6.7% to $909.9 million for the quarter, compared with the same period in 2005.

For the nine-month period ended Sept. 30, the company's net earnings increased to $331.2 million from $306.4 million for the same period in 2005. Earnings per share were up 15% to $2.46 for the period from $2.14 in the first nine-months of 2005.

Net sales of $2.69 billion were up 7.5% compared with the year-ago period.

Operating cash flow for the first nine months of the year of $462.1 million was up from $413.0 million in the same period in 2005.

LabCorp updated guidance for 2006 including revenue growth of 6.5% to 7.2%, earnings per share of between $3.28 and $3.33, operating cash flow of about $610 million to $630 million and capital expenditures of about $90 million to $100 million.

For 2007, the company expects revenue growth of 11% to 13% and earnings per share in the range of $3.68 and $3.83.

LabCorp is a medical diagnostic technologies company located in Burlington, N.C.

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