Slide 1: Second Quarter 2015
Second Quarter 2015 July 23, 2015
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 “In the second quarter we once again grew operating income faster than revenues, demonstrating results from our five-point strategy. We are not just driving growth, we are driving profitable growth. Our strategies to restore growth and drive operational excellence are delivering both a
Slide 4: Q2 2015 Performance
Q2 2015 Performance ($ in millions - except EPS) Q2 Δ 2014 Consolidated revenues grew 1.2%. On an organic basis, Revenues $ 1,925 1.2% consolidated revenues grew 0.8%. The increase in rev/req - DIS Revenues $ 1,771 0.4% reflects growth in gene-based and esoteric testing and business mix shifts. - Re
Slide 5: Q2 2015 YTD Performance
Q2 2015 YTD Performance ($ in millions - except EPS) YTD Δ 2014 Consolidated revenues grew 3.2%. On an organic basis, Revenues $ 3,764 3.2% consolidated revenues grew 0.8%. DIS revenues and - DIS Revenues $ 3,463 2.6% volume increased primarily due to acquisitions. Revenue per requisition benefited
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 5 6 CONFIDENTIAL – For internal circulation only
Slide 7: 2015 Outlook
2015 Outlook* Full year 2015 revenue now expected to be between $7.49 billion and $7.57 billion. Adjusted diluted EPS excluding amortization expense to be between $4.70 and $4.85. Adjusted cash provided by operations to exceed $850 million. Capital expenditures to approximate $300 million. *
Slide 8: Non-GAAP Reconciliations
Non-GAAP Reconciliations The adjusted measures on pages 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 me
Slide 9: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (dollars in millions, except per share data) Adjusted diluted EPS excluding amortization expense: Diluted earnings per common share $ 0.81 $ 0.92 $ 1.23 $ 1.63 Charges on retirement of debt and related
Slide 10: Non-GAAP Reconciliations
Non-GAAP Reconciliations (a) Represents costs primarily associated with workforce reductions and professional fees incurred in connection with further restructuring and integrating our business. The following table summarizes the impact of restructuring and integration charges on the company's conso
Slide 11: Non-GAAP Reconciliations
Non-GAAP Reconciliations 11 CONFIDENTIAL – For internal circulation only
Slide 12: 2015 Outlook
2015 Outlook The following table reconciles our 2015 outlook for adjusted diluted EPS excluding amortization expense and adjusted cash provided by operations to the corresponding amounts determined under accounting principles generally accepted in the United States: Low High Adjusted diluted EPS exc
Slide 13: 2015 Outlook
2015 Outlook 1) The outlook for 2% to 3% revenue growth represents management’s estimates for the full year 2015 versus reported full year 2014 revenues adjusted to exclude the third and fourth quarter 2014 clinical trials revenue. Effective July 1, 2015, the company’s clinical trials business was c
Slide 14: Quest Diagnostics
(@, Quest Diagnostics