UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

**FORM 10-Q**



QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For quarterly period ended   June 30, 2000



Commission file number:  0-16946

LabOne, Inc.

10101 Renner Blvd.

Lenexa, Kansas 66219



(913) 888-1770



Incorporated in Missouri



I.R.S. Employer Identification Number: 43-1039532



Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes/X/No/  /



Number of shares outstanding of only class of Registrant's common stock, $.01 par value, as of July 31, 2000 -  10,715,349 net of 2,334,671 shares held as treasury stock.

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LabOne, Inc.



Form 10-Q for the Second Quarter, 2000

Table of Contents

|PART I.   FINANCIAL INFORMATION                                                                
|-----------------------------------------------------------------------------------------------
|ITEM 1.   Financial Statements:                                                                
|Consolidated Balance Sheets                                                                    
|Consolidated Statements of Earnings                                                            
|Consolidated Statement of Stockholders' Equity                                                 
|Consolidated Statements of Cash Flows                                                          
|Notes to Financial Statements                                                                  
|ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|Selected Financial Data                                                                        
|Second Quarter Analysis                                                                        
|Year-to-Date Analysis                                                                          
|Financial Position, Liquidity and Capital Resources                                            
|ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                           
|PART II.   OTHER INFORMATION                                                                   
|SIGNATURES                                                                                     

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PART I. FINANCIAL INFORMATION

ITEM 1 - Financial Statements

LabOne, Inc. and Subsidiaries

Consolidated Balance Sheets

|                                                           |   | June 30,    |   | December 31,
|---------------------------------------------------------- | - | ----------- | - | ------------
|                                                           |   | 2000        |   | 1999        
|ASSETS                                                    
|Current assets:                                           
|Cash and cash equivalents                                  | $ | 1,369,529   | $ | 2,983,644   
|Accounts receivable - trade, net of allowance for doubtful
|accounts of $2,998,328 in 2000 and $1,981,285 in 1999      |   | 26,705,277  |   | 26,331,960  
|Income taxes receivable                                    |   | 2,431,047   |   | 1,643,520   
|Inventories                                                |   | 2,959,241   |   | 3,186,853   
|Prepaid expenses and other current assets                  |   | 3,108,527   |   | 1,772,884   
|Deferred income taxes                                      |   | 1,715,023   |   | 1,328,027   
|Total current assets                                       |   | 38,288,644  |   | 37,246,888  
|                                                          
|Property, plant and equipment                              |   | 85,458,101  |   | 80,910,886  
|Less accumulated depreciation                              |   | 40,943,299  |   | 38,106,948  
|Net property, plant and equipment                          |   | 44,514,802  |   | 42,803,938  
|Other assets:                                             
|Intangible assets, net of accumulated amortization         |   | 36,168,793  |   | 37,868,921  
|Bond issue costs, net of accumulated amortization of      
|$32,025 in 2000 and $23,291 in 1999                        |   | 160,122     |   | 168,856     
|Deferred income taxes - noncurrent                         |   | -           |   | 93,326      
|Deposits and other assets                                  |   | 233,233     |   | 260,795     
|Total assets                                               | $ | 119,365,594 | $ | 118,442,724 
|                                                          
|LIABILITIES AND STOCKHOLDERS' EQUITY                      
|Current liabilities:                                      
|Accounts payable                                           | $ | 12,673,402  | $ | 11,852,403  
|Accrued payroll and benefits                               |   | 3,634,388   |   | 2,793,721   
|Other accrued expenses                                     |   | 1,048,605   |   | 727,241     
|Other current liabilities                                  |   | 130,950     |   | 551,146     
|Current portion of long-term debt                          |   | 1,874,585   |   | 1,873,577   
|Total current liabilities                                  |   | 19,361,930  |   | 17,798,088  
|                                                          
|Deferred income taxes - noncurrent                         |   | 420,752     |   | -           
|Long-term payable                                          |   | 1,360,000   |   | 1,360,000   
|Long-term debt                                             |   | 32,247,126  |   | 28,255,139  
|Total liabilities                                          |   | 53,389,808  |   | 47,413,227  
|                                                          
|Stockholders' equity:                                     
|Preferred stock, $.01 par value per share;                
|3,000,000 shares authorized, none issued                   |   | -           |   | -           
|Common stock, $.01 par value per share; 40,000,000        
|shares authorized, 13,050,020 shares issued                |   | 130,500     |   | 130,500     
|Additional paid-in capital                                 |   | 31,792,208  |   | 32,035,445  
|Equity adjustment from foreign currency translation        |   | (776,378)   |   | (750,115)   
|Retained earnings                                          |   | 70,540,109  |   | 69,758,872  
|                                                           |   | 101,686,439 |   | 101,174,702 
|Less treasury stock of  2,338,688 shares in 2000 and      
|1,516,527 shares in 1999                                   |   | 35,710,653  |   | 30,145,205  
|Total stockholders' equity                                 |   | 65,975,786  |   | 71,029,497  
|Total liabilities and stockholders' equity                 | $ | 119,365,594 | $ | 118,442,724 

See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.

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LabOne, Inc. and Subsidiaries

Consolidated Statements of Earnings

|                                                   |   | Three months ended |  | Six months ended
|-------------------------------------------------- | - | ------------------ |  | ----------------
|                                                   |   | June 30,           |  | June 30,        
|                                                   |   | 2000               |  | 1999            
|Sales                                              | $ | 39,161,019         |  | 28,572,152      
|Cost of sales                                     
|Cost of sales expenses                             |   | 25,186,182         |  | 16,398,519      
|Depreciation expense                               |   | 594,762            |  | 605,442         
|Total cost of sales                                |   | 25,780,944         |  | 17,003,961      
|Gross profit                                       |   | 13,380,075         |  | 11,568,191      
|Selling, general and administrative               
|Selling, general and administrative expenses       |   | 9,646,865          |  | 7,915,901       
|Depreciation expense                               |   | 1,008,215          |  | 765,184         
|Amortization expense                               |   | 1,047,061          |  | 680,260         
|Total selling, general and administrative          |   | 11,702,141         |  | 9,361,345       
|Earnings from operations                           |   | 1,677,934          |  | 2,206,846       
|                                                  
|Interest expense                                   |   | (602,866)          |  | (299,945)       
|Interest income and other                          |   | 15,222             |  | 113,906         
|Earnings before income taxes                       |   | 1,090,290          |  | 2,020,807       
|Income tax expense                                 |   | 726,670            |  | 916,199         
|Earnings before minority interest                  |   | 363,620            |  | 1,104,608       
|Minority interest                                  |   | -                  |  | 312,044         
|Net earnings                                       | $ | 363,620            |  | 792,564         
|Basic and diluted earnings per common share        | $ | 0.03               |  | 0.08            
|Dividends per common share                         | $ | -                  |  | 0.20            
|                                                  
|Basic weighted average common shares outstanding   |   | 10,721,272         |  | 9,733,655       
|Diluted weighted average common shares outstanding |   | 10,721,341         |  | 9,733,655       

See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.

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LabOne, Inc. and Subsidiaries

Consolidated Statement of Stockholders' Equity

Six Months Ended June 30, 2000

|                                        | Accumulated
|--------------------------------------- | -----------
|                                        | Additional 
|                                        |            
|                                        |            
|Balance at December 31, 1999            | $          
|Comprehensive income:                  
|Net earnings                            |            
|Equity adjustment from                 
|foreign currency translation            |            
|Comprehensive income                    |            
|Directors' stock issued (19,270 shares) |            
|Purchase of 841,431 common             
|shares for treasury stock               |            
|Balance at June 30, 2000                | $          

See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.

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LabOne, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

|                                                     | Six months ended June 30,
|---------------------------------------------------- | -------------------------
|                                                     | 2000                     
|Cash provided by (used for) operations:             
|Net earnings                                         | $                        
|Adjustments to reconcile net earnings               
|to net cash provided by operations:                 
|Depreciation and amortization                        |                          
|Earnings applicable to minority interests            |                          
|Provision for loss on accounts receivable            |                          
|Loss (gain) on disposal of property and equipment    |                          
|Directors' stock compensation                        |                          
|Provision for deferred taxes                         |                          
|Changes in:                                         
|Accounts receivable                                  |                          
|Income taxes receivable                              |                          
|Inventories                                          |                          
|Prepaid expenses and other current assets            |                          
|Prepaid merger expense                               |                          
|Accounts payable                                     |                          
|Accrued payroll & benefits                           |                          
|Other accrued expenses                               |                          
|Other current liabilities                            |                          
|Net cash provided by operations                      |                          
|Cash provided by (used for) investment transactions: |                          
|Property, plant and equipment, net                   |                          
|Acquisition of intangible assets, net                |                          
|Other                                                |                          
|Net cash used for investment transactions            |                          
|Cash provided by (used for) financing transactions: 
|Purchase of treasury stock                           |                          
|Proceeds from long-term debt                         |                          
|Payments on long-term debt                           |                          
|Cash dividends                                       |                          
|Net cash used for financing transactions             |                          
|Effect of foreign currency translation               |                          
|Net decrease in cash and cash equivalents            |                          
|                                                    
|Cash and cash equivalents - beginning of period      |                          
|Cash and cash equivalents - end of period            | $                        
|Supplemental disclosures of cash flow information:  
|Cash paid during the period for:                    
|Interest                                             | $                        
|Income taxes                                         | $                        

See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.

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LabOne, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

June 30, 2000 and 1999

Forward Looking Statements

Business Segment Information

|                               |   | Three Months Ended June 30, |  | Six Months Ended June 30,
|------------------------------ | - | --------------------------- |  | -------------------------
|                               |   | 2000                        |  | 1999                     
|Sales:                        
|Insurance                      | $ | 25,452,714                  |  | 18,473,769               
|Healthcare                     |   | 8,258,524                   |  | 5,735,698                
|Substance abuse testing (SAT)  |   | 5,449,781                   |  | 4,362,685                
|Total sales                    | $ | 39,161,019                  |  | 28,572,152               
|                              
|Operating income (loss):      
|Insurance                      | $ | 3,022,608                   |  | 3,795,318                
|Healthcare                     |   | (697,694)                   |  | (1,308,956)              
|Substance abuse testing        |   | 115,525                     |  | (171,734)                
|General corporate expense      |   | (762,505)                   |  | (107,782)                
|Total earnings from operations |   | 1,677,934                   |  | 2,206,846                
|Other income (expense)         |   | (587,644)                   |  | (186,039)                
|Earnings before income taxes   | $ | 1,090,290                   |  | 2,020,807                

Contingencies

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ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

RESULTS OF OPERATIONS

SELECTED FINANCIAL DATA

|                     |   | Three months ended June 30, | % Inc.     |       | Six months ended June 30, | % Inc.    
|-------------------- | - | --------------------------- | ---------- | ----- | ------------------------- | ----------
|                     |   | 2000                        | 1999       | (Dec) |                           | 2000      
|                    
|Sales                | $ | 25,452,714                  | 18,473,769 | 38%   | $                         | 53,652,492
|Net earnings         |   | 363,620                     | 792,563    | (54%) |                           | 781,237   
|Diluted earnings per |   |                             |            |       |                           |           
|common share         | $ | 0.03                        | 0.08       |       | $                         | 0.07      
|Cash dividends per   |   |                             |            |       |                           |           
|common share         | $ | 0.00                        | 0.20       |       | $                         | 0.00      

LabOne is certified by the Substance Abuse and Mental Health Services Administration (SAMHSA) to perform substance abuse testing services for federally regulated employers and is currently marketing these services to both regulated and
nonregulated employers.  The Company's rapid turnaround times and multiple testing options help clients reduce downtime for affected employees and meet mandated drug screening guidelines.

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SECOND QUARTER ANALYSIS

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YEAR-TO-DATE ANALYSIS

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FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

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ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

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PART II.  OTHER INFORMATION

27.  Financial Data Schedule - as filed electronically by the Registrant in conjunction with this second quarter 2000 Form 10-Q.

(b)  Reports on Form 8-K

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Signatures



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



LabOne, Inc.



|Date:  August 11, 2000 | By  /s/ John W. McCarty
John W. McCarty
Executive V.P. and Chief Financial Officer                   
|---------------------- | -----------------------------------------------------------------------------------------------------
|                       |                                                                                                      
|Date:  August 11, 2000 | By  /s/ Kurt E. Gruenbacher
Kurt E. Gruenbacher 
V.P. Finance, Chief Accounting Officer and Treasurer