Slide 1: Fourth Quarter 2013
Fourth Quarter 2013 January 30, 2014
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure This presentation may contain 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 estimates, projections, expectations or beliefs
Slide 3: Key Messages
Key Messages “As we have said throughout the past year, we are operating in a challenging environment and continue to face industry-wide headwinds on reimbursement and utilization. To respond to those pressures, we have implemented a great deal of change in a very short time and we have made good pr
Slide 4: Q4 2013 Performance
Q4 2013 Performance Continuing operations ($ in millions - except EPS) Q4 ∆ 2012 Revenues $ 1,756 (1.0%) Rev/Req is lower primarily due to continued reimbursement - DIS Revenues $ 1,616 (0.7%) pressure and the business mix associated with our second - Rev/Req quarter acquisitions, principally the Co
Slide 5: FY 2013 Performance
FY 2013 Performance Continuing operations ($ in millions - except EPS) FY 2013 ∆ 2012 Revenues $ 7,146 (3.2%) - DIS Revenues $ 6,587 (3.4%) Revenues are lower due to softer healthcare utilization and reduced reimbursement, due to a combination of Medicare - Rev/Req (3.6%) reductions and commercial p
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 • Deliver: Deliver disciplined capital deployment and strategically aligned 5 acc
Slide 7: 2014 Outlook
2014 Outlook* • Revenues to be flat to 2% below 2013. • Earnings per diluted share to be between $3.90 and $4.10. • Cash provided by operations to approximate $900 million. • Capital expenditures to approximate $300 million. * Before special items and the Solstas acquisition. | 7
Slide 8: Q4 2013 Reconciliation
Q4 2013 Reconciliation Three Months Ended December 31, 2013 (dollars in millions, except per share data) Restructuring and Integration Charges As Reported (a) As Adjusted Operating income $ 270 $ 12 $ 282 Operating income as a % of net revenues 15.3% 0.8% 16.1% Income from continuing operations attr
Slide 9: FY 2013 Reconciliation
FY 2013 Reconciliation Twelve Months Ended December 31, 2013 (dollars in millions, except per share data) Restructuring Gain on Sale of and Ibrutinib Integration Loss on Sale Royalty Rights Charges of Enterix As Reported (c) (d) As Adjusted Operating income $ 1,475 $ (474) $ 115 $ 40 $ 1,156 Operati
Slide 10: Q4 2013 and FY 2013 Reconciliation
Q4 2013 and FY 2013 Reconciliation Adjusted Net Cash Flow provided by Operating Activities (dollars in millions) Income Tax Payment Associated with the Sale of Ibrutinib Royalty Rights As Reported (f) As Adjusted Three Months Ended December 31, 2013 Net cash provided by operating activities $210 $17
Slide 11: Q4 2012 Reconciliation
Q4 2012 Reconciliation Three Months Ended December 31, 2012 (dollars in millions, except per share data) Restructuring and Integration Charges As Reported (g) As Adjusted Operating income $ 265 $ 36 $ 301 Operating income as a % of net revenues 14.9% 2.1% 17.0% Income from continuing operations attr
Slide 12: FY 2012 Reconciliation
FY 2012 Reconciliation Twelve Months Ended December 31, 2012 (dollars in millions, except per share data) Restructuring and CEO Integration Succession Charges Costs As Reported (i) (j) As Adjusted Operating income $ 1,201 $ 106 $ 10 $ 1,317 Operating income as a % of net revenues 16.3% 1.4% 0.1% 17.
Slide 13: Quest Diagnostics
Quest Diagnostics S