By Kirell Lakhman
LabCorp today reported that first-quarter revenues rose 3.3 percent as testing volume fell 3 percent and revenue-per-requisition increased 6.4 percent, and blamed "inclement weather" and a pair of contracts terminated in 2009.
(Quest this morning similarly blamed bad weather for its lackluster first-quarter performance.)
Profits during the period remained flat, while LabCorp reaffirmed that it expects 2010 revenue to grow between 2.5 percent and 4.5 percent year over year, it said in a statement.
Total revenue for the three months ended March 31 increased to $1.19 billion from $1.15 billion year over year. Excluding the consolidation of its Ontario joint venture, revenue increased 2.2 percent, testing volume decreased by 3.3 percent, and revenue per requisition increased 5.7 percent.
In the statement, Lab Corp said "inclement weather" during the period "had a significant impact" on its results, including reducing volumes by an estimated 1.3 percent and revenue by approximately $23 million.
In addition, the continuing impact of two large government contracts terminated during 2009 reduced volume by an additional 2.4 percent. Excluding the impact from weather and lost contracts, volume increased 0.4 percent in the quarter, LabCorp said.
LabCorp also said it recorded $9.3 million in pre-tax restructuring and other special charges during the period "relating to severance payments and the closing of redundant and underutilized facilities as well as the write-off of development costs incurred on systems abandoned during the quarter."
“Despite unprecedented severe weather throughout the country … we are pleased with our performance and continue to focus on delivering profitable growth,” CEO David King said in the statement.
LabCorp said it had around $172.2 million in cash and short-term investment as of March 31.