Slide 1: Second Quarter 2014
Second Quarter 2014 July 24, 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 “We restored growth in the quarter, as revenues grew 5% and EPS grew 2%. We continued to make good progress executing our strategy, and trends improved across the board in pricing, volume and revenue. We saw strong testing growth in infectious disease, prescription drug monitoring and g
Slide 4: Q2 2014 Performance
Q2 2014 Performance Continuing operations ($ in millions - except EPS) Q2 Δ 2013 Revenues $ 1,902 4.8% Recent acquisitions, including Solstas, contributed - DIS Revenues $ 1,763 5.3% approximately 7% to the revenue improvement compared to a year ago. Excluding acquisitions and certain contracts not
Slide 5: Q2 2014 YTD Performance
Q2 2014 YTD Performance Continuing operations ($ in millions - except EPS) Q2 Δ 2013 Revenues $ 3,648 1.3% Revenues were 1.3% better than a year ago largely due to - DIS Revenues $ 3,377 1.6% benefits of recent acquisitions which are partially offset by - Rev/Req severe weather in Q1 and reimburseme
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 2.5% to 3.5% compared to the prior year. • Adjusted diluted EPS to be between $4.00 and $4.10. • Cash provided by operations to approximate $900 million. • Capital expenditures to approximate $300 million. * Before special items. | 7
Slide 8: Q2 2014 Reconciliation
Q2 2014 Reconciliation Three Months Ended June 30, 2014 (dollars in millions, except per share data) Restructuring and Integration Charges Other As Reported (a) (b) As Adjusted Operating income... eee ee eee ee tere eeteeettnteeees $ 262 $ 27 = $ 7 §$ 296 Operating income as a % of net revenUeS ....
Slide 9: Q2 2014 YTD Reconciliation
Q2 2014 YTD Reconciliation | 9
Slide 10: Q2 2013 Reconciliation
Q2 2013 Reconciliation Three Months Ended June 30, 2013 (dollars in millions, except per share data) Restructuring and Integration Charges As Reported (a) As Adjusted Operating income ran 289 § 19 $ 308 Operating income as a % of net revenues 15.9% 1.0% 16.9 % Income from continuing operations attri
Slide 11: Q2 2013 YTD Reconciliation
Q2 2013 YTD Reconciliation | 11
Slide 12: 2014 Outlook Reconciliation
2014 Outlook Reconciliation | 12
Slide 13: Quest Diagnostics
ra Quest | SG Diagnostics