Slide 1: Third Quarter 2014
Third Quarter 2014 October 23, 2014
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 “Quest Diagnostics grew revenues 6.5% and increased EPS 8% in the third quarter of 2014, as we continued to see improvements in underlying trends in pricing, volume and revenue. We continued to make progress executing our five-point strategy. Earnings benefitted from the Invigorate cost
Slide 4: Q3 2014 Performance
Q3 2014 Performance Continuing operations ($ in millions - except EPS) Q3 Δ 2013 Revenues $ 1,904 6.5% - DIS Revenues $ Recent acquisitions contributed approximately 7% to the 1,765 7.1% DIS revenue improvement compared to a year ago; - Rev/Req (0.6%) excluding acquisitions, revenues were essentiall
Slide 5: Q3 2014 YTD Performance
Q3 2014 YTD Performance Continuing operations ($ in millions - except EPS) Q3 Δ 2013 Revenues $ 5,552 3% Increase in revenues is due to recent acquisitions, partially - DIS Revenues $ 5,141 3% offset by severe weather in Q1 2014 and reimbursement - Rev/Req pressure (2%) - Volume 5% Decrease in adjus
Slide 6: Our 5 Point Strategy
Our 5 Point Strategy 1 • Restore: Restore Growth 2 • Drive: Drive operational excellence 3 • Simplify: Simplify the organization to enable growth and productivity 4 • Refocus: Refocus on diagnostic information services 5 • Deliver: Deliver disciplined capital deployment and strategically aligned acc
Slide 7: 2014 Outlook
2014 Outlook* • Revenues expected to increase approximately 3.5% compared to the prior year, versus an increase of 2.5% to 3.5% previously. • Adjusted diluted EPS to be between $4.03 and $4.07, versus $4.00 and $4.10 previously. • Cash provided by operations to approximate $900 million, unchanged. •
Slide 8: Q3 2014 Reconciliation
Q3 2014 Reconciliation Three Months Ended September 30, 2014 (dollars in millions, except per share data) Restructuring and Integration Charges Other As Reported (a) (b) As Adjusted Operating income $ 256 «$ 40 §$ 8 $ 304 Operating income as a % of net revenues 13.4% 2.1% 0.5% 16.0% Income from cont
Slide 9: Q3 2014 YTD Reconciliation
Q3 2014 YTD Reconciliation | 9
Slide 10: Q3 2013 Reconciliation
Q3 2013 Reconciliation Three Months Ended September 30, 2013 (dollars in millions, except per share data) Gain on Sale _ Restructuring of Ibrutinib and Royalty Integration Loss on Sale Rights Charges of Enterix As Reported @) (hy As Adjusted Operating income $ 689 § (474) § 39° «§ 40 $8 294 Operatin
Slide 11: Q3 2013 YTD Reconciliation
Q3 2013 YTD Reconciliation | 11
Slide 12: 2014 Outlook Reconciliation
2014 Outlook Reconciliation | 12
Slide 13: Quest Diagnostics
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