Slide 1: Fourth Quarter and Full Year 2015
Fourth Quarter and Full Year 2015 January 28, 2016
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure The statements in this presentation which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management’s current esti
Slide 3: Key Messages
Key Messages “We finished 2015 with a solid quarter, delivering both revenue and earnings growth. For the year, we increased adjusted operating income by 7.5% as a result of our return to growth and our operational excellence program. Looking ahead to 2016, the growth we are projecting is based on c
Slide 4: Q4 2015 Performance
Q4 2015 Performance ($ in millions - except EPS) Q4 Δ 2014 Revenues * $ 1,849 0.6% DIS revenues and volume increased primarily due to - DIS Revenues $ 1,738 0.4% organic growth. Revenue per requisition benefited from test and business mix shifts. - Rev/Req 0.1% - Volume 0.3% Increase in adjusted ope
Slide 5: Full Year 2015 Performance
Full Year 2015 Performance ($ in millions - except EPS) 2015 Δ 2014 Consolidated revenues, on an equivalent basis, increased Revenues * $ 7,493 2.0% as a result of both organic growth and acquisitions. DIS - DIS Revenues $ 6,965 1.3% revenues and volume increased primarily due to acquisitions. Reven
Slide 6: Our 5 Point Strategy
Our 5 Point Strategy 1 • Restore: Restore Growth 2 • Drive: Drive operational excellence 3 • Simplify: Simplify the organization 4 • Refocus: Refocus on diagnostic information services • Deliver: Deliver disciplined capital deployment and strategically aligned 5 accretive acquisitions 6 CONFIDENTI
Slide 7: 2016 Outlook
2016 Outlook* Revenues to be between $7.52 billion and $7.59 billion, an increase of 1.5% to 2.5% over 2015 revenues on an equivalent basis. Adjusted diluted EPS excluding amortization expense to be between $5.02 and $5.17. Cash provided by operations to approximate $1 billion. Capital expen
Slide 8: Non-GAAP Reconciliations
Non-GAAP Reconciliations The adjusted measures on page 4 and 5 are presented because management believes those measures are useful adjuncts to reported results under accounting principles generally accepted in the United States when comparing results of operations from period to period. Adjusted mea
Slide 9: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Twelve Months Ended December 31, December 31, 2015 2014 2015 2014 (dollars in millions, except per share data) Adjusted income from continuing operations: Income from continuing operations attributable to Quest Diagnostics' stockholders $ 188 $ 185 $ 709 $
Slide 10: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Twelve Months Ended December 31, December 31, 2015 2014 2015 2014 (dollars in millions) Revenue on an equivalent basis: Net revenues $ 1,849 $ 1,883 $ 7,493 $ 7,435 Clinical trials revenue (i) — (46) — (87) Revenue on an equivalent basis $ 1,849 $ 1,837 $
Slide 11: Non-GAAP Reconciliations
Non-GAAP Reconciliations (a) Represents the gain associated with the contribution of our clinical trials testing business to Q2 Solutions, the clinical trials joint venture with Quintiles Transnational Holdings Inc. (b) Represents costs, primarily associated with workforce reductions and professiona
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations (d) Charges on retirement of debt and related refinancing charges represent: charges associated with the March 2015 cash tender offer (the "Tender Offer") in which the company purchased $250 million aggregate principal amount of its 6.95% Senior Notes due July 2037 and 5.75%
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations (h) Represents the impact of amortization expense on diluted earnings per common share, net of the income tax benefit. The income tax benefit was primarily calculated using combined tax rates of 38.9% and 38.2% for 2015 and 2014, respectively. The pre-tax amortization expens
Slide 14: 2016 Outlook
2016 Outlook The outlook for adjusted diluted EPS excluding amortization expense represents management’s estimates for the full year 2016 before the impact of special items and amortization expense. This measure is presented because management believes it is a useful adjunct to the corresponding amo
Slide 15: 2016 Outlook
2016 Outlook The outlook for 1.5% to 2.5% revenue growth on an equivalent basis in 2016 represents management’s estimates for 2016 versus reported 2015 revenues adjusted to exclude the 2015 revenues from the clinical trials testing business. In 2015, the company contributed its clinical trials testi
Slide 16: Quest Diagnostics
(@, Quest Diagnostics