Labcorp(US:LH)2025-04-29 15:34Revenue Performance - For the three months ended March 31, 2025, the Company's revenues were $3,345.1 million, an increase of 5.3% from $3,176.6 million for the corresponding period in 2024[114]. - Diagnostic (Dx) revenues for the same period were $2,629.6 million, reflecting a 6.0% increase over $2,479.7 million in Q1 2024, driven by acquisitions (4.7%) and organic revenue growth (1.6%) despite a 0.3% unfavorable foreign currency translation[117]. - BLS revenues for Q1 2025 were $721.3 million, a 1.5% increase from $710.9 million in Q1 2024, primarily due to organic growth of 2.6%[119]. - The Company experienced organic revenue growth of 2.1% for the three months ended March 31, 2025, despite a 0.5% negative impact from foreign currency translation[114]. - The Company anticipates continued growth driven by strategic acquisitions and organic expansion in the upcoming quarters[114]. Cost and Expenses - Cost of revenues increased by 5.2% to $2,397.1 million, while the cost of revenues as a percentage of revenues decreased to 71.7% from 71.8% in the prior year[120]. - Selling, general, and administrative expenses rose by 7.4% to $546.0 million, with expenses as a percentage of revenues increasing to 16.3% from 16.0%[121]. - The increase in selling, general, and administrative expenses was attributed to higher personnel costs and the impact from Invitae, partially offset by LaunchPad savings[121]. Operating Income and Cash Flow - Total operating income increased by 1.5% to $326.0 million for the three months ended March 31, 2025, from $321.3 million in the same period of 2024[131]. - Net cash provided by operating activities was $18.5 million for the three months ended March 31, 2025, compared to a cash usage of $29.8 million in the same period of 2024, marking a $48.3 million improvement[137]. - Net cash used for investing activities decreased to $336.0 million for the three months ended March 31, 2025, from $393.1 million in the same period of 2024[138]. - Net cash used for financing activities surged to $839.7 million for the three months ended March 31, 2025, compared to $11.7 million in the same period of 2024, primarily due to a $1,000.0 million payment of senior notes[141]. - Cash and cash equivalents increased to $369.4 million at March 31, 2025, from $99.3 million at the same date in 2024[136]. Capital Expenditures and Debt - Capital expenditures were $126.0 million for the three months ended March 31, 2025, representing 3.8% of revenues, with expectations to maintain this level for the remainder of 2025[140]. - The company had $1,000.0 million available under its revolving credit facility as of March 31, 2025, with compliance to all covenants related to its debt obligations[142]. - Some of the Company's debt is subject to variable interest rates, affecting financial results due to interest rate fluctuations[156]. - The Company entered into fixed-to-variable interest rate swap agreements for $500.0 million of senior notes due 2031, with variable rates based on the three-month Secured Overnight Financing Rate plus 1.0706%[158]. Foreign Currency Exposure - Approximately 13.0% of the Company's revenues for Q1 2025 were denominated in currencies other than the U.S. dollar, compared to 13.8% in Q1 2024[153]. - A hypothetical 10% change in average exchange rates would have impacted income before income taxes for Q1 2025 by approximately $6.3 million[153]. - The Company had 14 open foreign exchange forward contracts with a total notional value of approximately $496.4 million as of March 31, 2025[154]. - The Company is party to cross-currency swap agreements with an aggregate notional amount of $1,200.0 million, maturing between 2029 and 2034[155]. Amortization and Impairments - Amortization of intangibles and other assets increased by 15.8% to $69.6 million for the three months ended March 31, 2025, compared to $60.1 million in the same period of 2024[122]. - Goodwill and other asset impairments were eliminated, showing a 100% decrease from $2.5 million in the three months ended March 31, 2024[124]. Interest Expense - Interest expense rose by 19.4% to $56.0 million for the three months ended March 31, 2025, compared to $46.9 million in the same period of 2024[127].