Slide 1: Fourth Quarter and Full Year 2014
Fourth Quarter and Full Year 2014 January 29, 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 “We ended 2014 strong, and in the fourth quarter generated growth in revenues and EPS. The 2015 outlook we are providing today is based on our expectations for strengthening operational performance and an improving business environment. Further, based on our ability to continue to gener
Slide 4: Q4 2014 Performance
Q4 2014 Performance Continuing operations ($ in millions - except EPS) Q4 Δ 2013 Revenues $ 1,883 7.2% Revenues grew 7.2% in the quarter with 0.6% organic - DIS Revenues $ 1,732 7.1% revenue growth. DIS revenue grew 7.1% with organic - Rev/Req (1.5)% revenues essentially flat. Acquisitions added nea
Slide 5: FY 2014 Performance
FY 2014 Performance Continuing operations ($ in millions - except EPS) FY 2014 Δ 2013 Revenues $ 7,435 4.0% - DIS Revenues $ 6,783 4.3% Revenues grew 4% in the year with approximately 5.5% of the growth from our recent acquisitions. Acquisitions added - Rev/Req (1.8)% approximately 7% to DIS volumes
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 5 DELIVER Deliver Disciplined Capital Deployment Quest Diagnostics | 6
Slide 7: 2015 Outlook
2015 Outlook* • Revenues to increase 2% to 3% compared to 2014. • Adjusted diluted EPS excluding amortization expense to be between $4.70 and $4.85. • Cash provided by operations to approximate $850 million. • Capital expenditures to approximate $300 million. * Before special items. See reconciliati
Slide 8: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Twelve Months Ended December 31, December 31, 2014 2013 2014 2013 (dollars in millions) Adjusted operating income: Operating income $ 257 $ 270 $ 983 $ 1,475 Gain on sale of ibrutinib royalty rights (a) — — — (474) Restructuring and integration charges (b)
Slide 9: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Twelve Months Ended December 31, December 31, 2014 2013 2014 2013 (dollars in millions, except per share data) Adjusted income from continuing operations: Income from continuing operations attributable to Quest Diagnostics' stockholders $ 185 $ 143 $ 551 $
Slide 10: Non-GAAP Reconciliations
Non-GAAP Reconciliations (a) - Represents the gain, net of transaction costs, associated with the sale of the Company's ibrutinib royalty rights. (b) - Represents costs primarily associated with workforce reductions and professional fees incurred in connection with further restructuring and integrat
Slide 11: 2015 Outlook
2015 Outlook The following table reconciles our 2015 outlook for adjusted diluted EPS excluding amortization expense to the corresponding amount determined under accounting principles generally accepted in the United States. Low High Diluted earnings per common share $ 4.34 $ 4.49 Amortization expen
Slide 12: Quest Diagnostics
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