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Laboratory of America Holdings' (LH) Dave King on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Earnings Conference Call

April 25, 2016 09:00 AM ET


Paul Surdez - VP, IR

Dave King - Chairman & CEO

Glenn Eisenberg - EVP and CFO

Deborah Keller - CEO, Covance Drug Development


Robert Willoughby - Credit Suisse

Bill Bonello - Craig-Hallum

Lisa Gill - JPMorgan

Jack Meehan - Barclays Capital

Ross Muken - Evercore ISI

Amanda Murphy - William Blair

Nicholas Jansen - Raymond James

Will Quirk - Piper Jaffray

Ricky Goldwasser - Morgan Stanley

Isaac Ro - Goldman Sachs

Whit Mayo - Robert W. Baird

Ryan Halsted - Wells Fargo Securities

A.J. Rice - UBS

Brian Tanquilut - Jefferies

Donald Hooker - KeyBanc Capital Markets

Mark Massaro - Canaccord Genuity


Good day ladies and gentlemen, and welcome to the Q1 2016 Laboratory Corporation of America Holdings Earnings Conference Call. At time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I will now turn the conference over to Mr. Paul Surdez, Vice President of Investor Relations. Please go ahead, sir.

Paul Surdez

Good morning, and welcome to LabCorp's first quarter 2016 conference call. As detailed in today's press release, there will be a replay of this conference call available via telephone and Internet.

With me today are Dave King, Chairman and Chief Executive Officer; Glenn Eisenberg, Executive Vice President and Chief Financial Officer; and Deborah Keller, CEO of Covance Drug Development.

In addition to our press release, we also filed a Form 8-K this morning that includes additional financial information. Both are available on the Investor Relations section of our Web site at and include a reconciliation of non-GAAP financial measures discussed during today's call to GAAP.

Finally, we're making forward-looking statements during today's call. These forward-looking statements include, among others, statements about our expected financial results, the implementation of our business strategy and the ongoing benefits from acquisitions. These statements are based upon current expectations and are subject to change based upon various factors that could affect our financial results. Some of these factors are set forth in our 2015 10-K. We have no obligation to provide any updates to these forward-looking statements even if our expectations change.

Now, I'll turn the call over to Dave King.

Dave King

Thank you, Paul and good morning. We had an impressive quarter in which we continued to demonstrate the power of our transformed company through our operating performance and progress on key strategic priorities. First quarter pro forma revenue growth was nearly 9% with strong organic growth in both LabCorp Diagnostics and Covance Drug Development. This growth coupled with reengineering our business process through project launch pad and capturing additional cost synergies from the Covance acquisition drove another quarter of margin expansion and double-digit adjusted EPS growth. Our excellent first quarter operational performance and business momentum give us confidence to increase our 2016 revenue and PS outlook.

Our ongoing success is due to sustained focus on our mission to improve health and improve lives and execution on our three key strategic initiatives. Being the world's leading provider of diagnostic solutions, bringing innovative medicines to patients faster and using information to change the way care is delivered. I will now update you on our progress of these strategic guide posts. First we are delivering diagnostic solutions through a combination of enhanced offerings, complementary acquisitions and technological innovation.