Premier, Inc. Field | Marketing Dynamics Databank 10K Reports for Quest Diagnostics & LabCorp. May 2014
Company Overview 358 S Main St Burlington, NC 27215 United States Phone : +1-336-229-1127 http://www.labcorp.com This company pricks and prods for profit. Laboratory Corporation of America Holdings (LabCorp) is a top provider of clinical laboratory services, performing tests on more than 470,000 patient specimens each day on behalf of managed care organizations, hospitals, doctors, government agencies, drug companies, and employers. Its services range from routine urinalyses, HIV tests, and Pap smears to specialty testing for diagnostic genetics, disease monitoring, forensics, identity, clinical drug trials, and allergies. LabCorp operates about 1,700 service sites across the US (and select overseas markets) that collect patient specimens and ship them to one of its 40 primary laboratories where tests are performed.
Key Information DUNS Number Location Type Subsidiary Status Manufacturer Company Type Plant/Facility Size (sq. ft.) Owns/Rents Accountant Total Employees 1-Year Employee Growth Employees At This Location Year of Founding or Change in Control Primary Industry Primary SIC Code Primary NAICS Code Latitude/Longitude
861422434 Headquarters No No Public 14,210.00 Rents PricewaterhouseCoopers LLP 34,000 0.00% 2,000 1971 2052:Medical & Diagnostic Laboratories 80710000:Medical laboratories 621511:Medical Laboratories 36.093154 / -79.437423
Key Financials Fiscal Year-End Sales ($ M) 1-Year Sales Growth Net Income 1-Year Net Income Growth Total Assets Market Value Prescreen Score
December $5,808.30M 2.41% $573.80M (1.59%) $6,965.90M $8,495.26M Low Risk
Company Rankings 444 in FORTUNE 500 (May 2013) S&P 500 (March 31, 2014) 444 in FORTUNE 1000 (May 2013)
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Key People Name
Title
Mr. David P. (Dave) King
Chairman, President, and CEO
Mr. James T. Boyle Jr.
EVP and COO
William B. (Brad) Hayes
EVP and CFO
Steven M. Anderson
Chief Scientific Officer Oncology and Genetics, LabCorp and Monogram Biosciences
Mark E. Brecher
SVP and Chief Medical Officer
Marcia Eisenberg
SVP Research and Development/Science and Technology
Mr Scott Evans
Senior Vice President And General Manager, Houston Office
Mr Eric Lindblom
Senior Vice President, Investor And Me
Randy Simmons
Senior Vice President Of Occupational
Jean Luc Belingard
Vice President
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Company Description Geographic Reach Most of LabCorp's operations are conducted through its extensive network of facilities throughout the US. The company also has joint ventures in Canada, where it provides diagnostic testing services in several provinces, and it has also established a presence in Belgium, China, Japan, Puerto Rico, Singapore, and the UK. Operations Most of the tests LabCorp performs each year are routine tests (including blood chemistry analyses, blood cell counts, and HIV tests), with the routine testing segment accounting for about 60% of annual revenues. The genomic and esoteric testing segment, which includes LabCorp's Esoterix, Monogram Biosciences, and Integrated Genetics subsidiaries, has grown to account for a larger percentage of sales (nearly 40%) in recent years. Altogether, the company offers more than 4,000 routine and specialized testing products to more than 220,000 customers. Sales and Marketing LabCorp uses a direct sales force to promote its products and services to customers including doctors, hospitals, clinical labs, drugmakers, managed care companies, and government agencies. As payments from managed care entities (HMOs and PPOs) make up about half of LabCorp's annual revenue, gaining and maintaining contracts with these clients is a main thrust of the company's strategy. For instance, LabCorp has a multi-year contract with UnitedHealth that makes LabCorp the insurer's exclusive national laboratory services provider. Financial Performance All of LabCorp's efforts towards expanding its offerings and geographic presence helped keep the company's finances healthy for several consecutive years, with its revenue growing each year since 2008. In 2012 the company reported a 2% increase in sales to some $5.7 billion, largely due to acquisitions and an increase in the growing genomic and esoteric testing segment. LabCorp's profits increased 12% in 2012 to some $583 million. The company has seen general profit growth over the last five years, with the exception of slight dips in net income in 2008 and 2011. Strategy The company is focused on expanding its advanced testing capabilities, especially in the areas of genetic and cancer testing. One particular area of focus for the company's product development efforts is the field of personalized medicine. It has introduced a number of "companion" diagnostic tests that determine whether a patient will react well or poorly to certain drugs. LabCorp is developing such tests internally, as well as through partnerships with life science entities such as Duke University and Johns Hopkins University. LabCorp strives to capitalize on its nationwide presence to strengthen managed care partnerships. In addition, LabCorp looks to keep its physician customers happy with education tools and integrated information management systems, including eLabCorp, a Web-based tool that allows doctors to access testing services online, and its electronic health record (EHR) solution. The company is also expanding consumer-focused tools, such as its LabCorp Beacon patient portal, which was launched in late 2012. Meanwhile, LabCorp's specialty subsidiaries, such as kidney stone analysis firm Litholink, work to control costs for payers by focusing on providing patient-specific tools to manage chronic conditions. Mergers and Acquisitions LabCorp has also expanded the genetic testing segment through acquisitions, including the purchase of Orchid Cellmark for some $85 million in late 2011. The buy fortified the company's position in the DNA identity testing market in the US, and marked its entry into the UK testing market. The UK expansion is part of LabCorp's overall goal of growing outside the US. Back in the US, in mid-2012 LabCorp paid some $241 million to acquire MEDTOX Scientific in order to secure its diagnostics products and services. MEDTOX provides forensic and toxicology testing and counts health care and criminal justice facilities among its largest customers.
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Industry Information Hoover's Industries > Health Care Sector > Ambulatory Health Care Services > Medical & Diagnostic Laboratories ( primary ) Primary SIC Code 80710000 : Medical laboratories Primary NAICS Code 621511 : Medical Laboratories Denotes In-depth Industry Insight by Hoover's Editorial Staff
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People Employees Title
Name
Age
Salary
Bonus
Chairman, President, and CEO EVP and COO EVP and CFO Chief Scientific Officer Oncology and Genetics, LabCorp and Monogram Biosciences SVP and Chief Medical Officer SVP Research and Development/Science and Technology Senior Vice President And General Manager, Houston Office Senior Vice President, Investor And Me Senior Vice President Of Occupational Vice President Vice President Tax Vice President, Public Policy & Advocacy Associate Vice President Vice President Sales And Marketing Vp Director Of Hipaa Director Information Systems Director Senior Director Database Systems Project Manager Esoterix Clinical Manager Video Communications Regional Manager Manager, Unix Systems Facility Tam Leader Information Technology Director Purchasing Manager Sales Representative Purchasing Agent Database Administrator
Mr. David P. (Dave) King Mr. James T. Boyle Jr. William B. (Brad) Hayes Steven M. Anderson
57 56 48
$1,012,700.00 $511,900.00 $469,961.00 --
-----
Mark E. Brecher Marcia Eisenberg
57
---
---
Mr Scott Evans
--
--
Mr Eric Lindblom
--
--
Randy Simmons
--
--
Jean Luc Belingard Dick Bryant Donald Horton
----
----
Edwin A Johnson Lenny Monsour Ms Kimberly Williams Don Luu Deborah McKenna Sallye Stevenson Kirk Wroblewski Heather Gardner Mr Jay Massengill Ross Minarcek Mr Darwin Nelson Jason Vlachakis Randall Blanco Mr Greg Boemer Ryan Camps Mike Deamos David H Deth
------------------
------------------
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Title
Name
Senior Vice President, Chief Legal Officer Attorney Sales Representative Facilities Supervisor Information Technology Network Support Lab Manager Regional Sales Manager Executive Assistant Information Technology Manager Director Of Facilities Human Resources Consultant Information Technology Manager Technical Operations Director Application Developer Lead Project Analyst Information Technology Director Information Technology Logistics Cente Supervisor Clinical Trials Cytogenetics Technologist Rmbd Labcorp Coporate Human Resources
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Age
Salary
Bonus
Mr Samuel F Eberts
--
--
Mr Don Hagen Ms Anna Jevic Mr Dennis Johnson Butch Juliano
-----
-----
Debbie Kinsley Mr Kerry Lahey Ann Raycroft Mr Brent Simpson Mr Tom Specian Derrick Strelow Jay Thompson Sally Ullery Jan Van Den Berg Terry Willmann Dan Wilson Donna Allen
-------------
-------------
Kevin McClary Carrie Mostoller Joe Stogsdill Jamie Williams
-----
-----
May 14, 2014 • PAGE 7
Board Members Title
Name
Age
Chairman, President, and CEO
Mr. David P. (Dave) King
57
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Biographies David P. (Dave) King, Age 57 Title held since 2009 : Chairman, President, and CEO Current Company Titles 2009 - Present : Chairman, President, and CEO 2007 - 2009 : CEO and Director 2005 - 2007 : EVP and COO 2004 - 2005 : EVP Strategic Planning and Corporate Development 2001 - 2004 : SVP, General Counsel, and Chief Compliance Officer
Current Company Compensation History Salary Bonus 2012 : 2011 : 2010 : 2009 : 2008 : 2007 : 2006 : 2005 : 2004 :
$1,012,700.00 $993,800.00 $885,333.00 $810,000.00 $791,667.00 $750,000.00 $450,003.00 $340,999.00 $309,999.00
----$160,000.00 --$216,697.00 $174,242.00
Total $9,693,761.00 $11,058,998.00 $9,672,746.00 $8,938,814.00 $8,296,955.00 $6,522,534.00 ----
Past Company Affiliations President, PA Labs LLC
Biography David P. King (55) has served as Chairman of the Board, President, and Chief Executive Officer of the Company since May 6, 2009; prior to that date he served as a director, President and Chief Executive Officer of the Company since January 1, 2007. Mr. King served as Executive Vice President and Chief Operating Officer from December 2005 to January 2007, as Executive Vice President of Strategic Planning and Corporate Development from January 2004 to December 2005 and was hired in September 2001 as Senior Vice President, General Counsel and Chief Compliance Officer. Prior to joining the Company, he was a partner with Hogan & Hartson LLP (now Hogan Lovells US LLP) in Baltimore, Maryland from 1992 to 2001. Mr. King was appointed to the board of directors of Cardinal Health, Inc. in 2011 and serves on the Audit Committee as a financial expert. Mr. King has over 10 years experience with the Company in a variety of roles of increasing responsibility in corporate operations, strategic planning, and corporate administration. Mr. King has a deep understanding of the clinical laboratory industry, business strategy, sales and marketing and executive management of the Company and its operations. Source : Proxy, 03/20/2012
James T. Boyle, Age 56 Title held since 2009 : EVP and COO
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Current Company Titles 2009 - Present : EVP and COO 2009 - 2009 : SVP Managed Care and Occupational Testing
Current Company Compensation History Salary Bonus 2012 : 2011 : 2010 :
$511,900.00 $501,900.00 $450,000.00
----
Total $3,558,545.00 $3,941,273.00 $3,860,882.00
Biography Mr. Boyle (55) has served as Executive Vice President, Chief Operating Officer since October 2009. He is responsible for the day-to-day supervision of all operations and sales of the Company. Prior to October 2009, Mr. Boyle was Senior Vice President, Managed Care since May 2006. In December of 2008, Mr. Boyle also assumed operating responsibility for the Companys Occupational Testing/Employer Group Services in his then current role of Senior Vice President of Managed Care/OTS. Mr. Boyle previously held the position of Vice President of Managed Care from August 2004 to May 2006. Prior to that Mr. Boyle was the Director of Litigation and Assistant General Counsel from 1999 to 2004. Prior to joining the Company in 1999, Mr. Boyle was engaged in the private practice of law for more than 15 years, specializing in litigation. Source : Proxy, 3/20/2012
William B. (Brad) Hayes, Age 48 Title held since 2005 : EVP and CFO Current Company Titles 2005 - 2012 : EVP and CFO 2004 - 2005 : SVP Finance, Investor Relations, and Corporate Communications
Current Company Compensation History Salary Bonus 2012 : 2011 : 2010 : 2009 : 2008 : 2007 : 2006 :
$469,961.00 $465,151.00 $450,000.00 $419,333.00 $413,333.00 $391,667.00 $350,002.00
----$55,000.00 ---
Total $3,373,901.00 $3,760,066.00 $3,860,882.00 $3,501,409.00 $3,068,401.00 $2,807,462.00 --
Biography Mr. Hayes (46) has served as Executive Vice President, Chief Financial Officer and Treasurer since June 2005. Mr. Hayes served as Senior Vice President, Investor Relations from July 2004 to June 2005. Prior to this date, Mr. Hayes was Senior Vice President, Finance since
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2000. Mr. Hayes is responsible for the day-to-day supervision of the finance and billing functions of the Company and operating responsibility for the Integrated Genzyme/Integrated Oncology (f/k/a Genzyme Genetics) business. Prior to joining the Company in 1996, Mr. Hayes was in the audit department at KPMG LLP for 9 years. Andrew S. Walton Source : Proxy, 03/20/2012
Steven M. Anderson Title held since 2010 : Chief Scientific Officer Oncology and Genetics, LabCorp and Monogram Biosciences Current Company Titles 2010 - Present : Chief Scientific Officer Oncology and Genetics, LabCorp and Monogram Biosciences
Biography Dr Anderson received a PhD in genetics from Iowa State University. He has served in a variety of technical director positions for LabCorp during his 20-year tenure, including positions at the Center for Molecular Biology and Pathology (CMBP) and ViroMed Laboratories. Dr Anderson recently held the position of national director of research and development before assuming his current positions. Dr Anderson has a professional history in the molecular diagnostics field, having participated in the development and validation of many commonly used diagnostic assays that utilize methods such as immunohistochemistry, fluorescence in situ hybridization (FISH), and molecular biology methods that characterize mutations and gene expression levels. He has served as a principle investigator for many of the FDA-cleared molecular diagnostic methods. Dr Anderson has authored more than 150 articles and abstracts that have been published in journals such as Genetics, Proceedings of the National Academy of Sciences, Clinical Chemistry, Journal of Infectious Disease, Human Pathology, American Journal of Obstetrics and Gynecology, Oncogene, Journal of the National Cancer Institute, Clinical Cancer Research, and Journal of Molecular Diagnostics. Source : Company Web Site, 2013
Mark E. Brecher, Age 57 Title held since 2009 : SVP and Chief Medical Officer Current Company Titles 2009 - Present : SVP and Chief Medical Officer Unknown - 2009 : Chief Medical Officer
Biography Dr Brecher is board certified in anatomic and clinical pathology and in blood banking and transfusion medicine. He earned his medical degree at the University of Chicago Pritzker School of Medicine, where he also completed residency training in anatomic and clinical pathology. He completed a blood banking and transfusion medicine fellowship at the Mayo Clinic. Dr Brecher is a leader in the field of pathology. Prior to joining LabCorp, he served on the faculty of the Mayo Clinic Department of Laboratory Medicine and Pathology (1988 to 1992) and as vice chair of the Department of Pathology and Laboratory Medicine at the McLendon
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University of North Carolina Hospitals (1992 to 2009). Presently, he is an adjunct professor of pathology and laboratory medicine at the University of North Carolina. Dr Brecher's research has been published in a wide variety of journals, including the New England Journal of Medicine, The Lancet, and the Mayo Clinic Proceedings. He is a member of the editorial boards of Transfusion and Blood Therapies in Medicine and an associate editor of the Journal of Clinical Apheresis. He is the immediate past chair of the Department of Health and Human Services Advisory Committee on Blood Safety and Availability and a past president of the American Society for Apheresis. Dr Brecher is a member of the American College of Pathologists, the American Association of Blood Banks, the American Society of Hematology, the American Society for Apheresis, and the International Society of Cellular Therapy. Source : Company Web Site, 2012
Marcia Eisenberg Title held since 2010 : SVP Research and Development/Science and Technology Current Company Titles 2010 - Present : SVP Research and Development/Science and Technology
Biography Dr Eisenberg earned a PhD in molecular biology from the University of Kentucky. She was a National Institutes of Environmental Health Sciences fellow in Research Triangle Park, NC. Dr Eisenberg has been a member of the Federal Bureau of Investigations Technical Working Group on DNA Analysis Methods, and she was an appointed member of the National DNA Advisory Board during its lifespan. She has been recognized and honored for her contributions to the advancement of forensic DNA testing. She currently holds certification in molecular genetics and molecular oncology, forensic DNA testing, and paternity testing from the New York State Department of Health. Dr Eisenberg has been employed by LabCorp for 21 years. She was hired to convert the then-current diagnostic testing to polymerase chain reaction (PCR)-based testing, which had recently been acquired by Roche Biomedical Laboratories, Inc. Her key areas of expertise include test development, optimization, and automation; review of new tests, technologies, and platforms; and working with partners to transform their intellectual property into viable diagnostic assays. Source : Company Web Site, 2013
Scott Evans Current Company Titles Unknown - Present : Senior Vice President And General Manager, Houston Office
Eric Lindblom Current Company Titles Unknown - Present : Senior Vice President, Investor And Me
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Historical Events Date
Event
Details
2007-01-02 2006-07-21
Top Executive Change Top Executive Change
David P. King succeeded Thomas P. Mac Mahon, who remained chairman. The company announced that David P. King will succeed the retiring Thomas P. MacMahon on 01/01/2007; MacMahon will remain chairman.
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Company Financials
Financial Summary Company Type Fiscal Year-End 2013 Sales 1-Year Sales Growth 2013 Net Income 1-Year Net Income Growth Prescreen Score Auditor
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Public NYSE: LH Headquarters December $5,808.30M 2.41% $573.80M (1.59%) Low Risk PricewaterhouseCoopers LLP
May 14, 2014 • PAGE 19
Annual Income Statement All amounts in millions of US Dollars except per share amounts.
Revenue Cost of Goods Sold Gross Profit Gross Profit Margin SG&A Expense Depreciation and Amortization Operating Income Operating Margin Nonoperating Income Nonoperating Expenses Income Before Taxes Income Taxes Net Income After Taxes Continuing Operations Discontinued Operations Total Operations Total Net Income Net Profit Margin Diluted EPS from Continuing Operations Diluted EPS from Total Operations Diluted EPS from Total Net Income Dividends per Share
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Dec 2013 5,808.30 3,585.10 2,223.20 38.28% 1,128.80 81.70 990.90 17.06% 19.00 (94.30) 915.60 340.20 575.40
Dec 2012 5,671.40 3,421.70 2,249.70 39.67% 1,114.60 86.30 1,023.50 18.05% 14.20 (93.50) 944.20 359.40 584.80
Dec 2011 5,542.30 3,267.60 2,274.70 41.04% 1,159.60 85.80 948.40 17.11% 5.20 (87.50) 866.10 333.00 533.10
Dec 2010 5,003.90 2,906.10 2,097.80 41.92% 1,034.30 72.70 978.80 19.56% 5.70 (68.90) 915.60 344.00 571.60
Dec 2009 4,694.70 2,723.80 1,970.90 41.98% 958.90 62.60 935.90 19.94% 10.00 (61.30) 884.60 329.00 555.60
575.40 -573.80 573.80 9.88%
584.80 -583.10 583.10 10.28%
533.10 -519.70 519.70 9.38%
571.60 -558.20 558.20 11.16%
555.60 -543.30 543.30 11.57%
6.25 6.25 6.25 0.00
5.99 5.99 5.99 0.00
5.11 5.11 5.11 0.00
5.30 5.30 5.29 0.00
4.98 4.98 4.98 0.00
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Quarterly Income Statement All amounts in millions of US Dollars except per share amounts.
Quarter Ending Revenue Cost of Goods Sold Gross Profit Gross Profit Margin SG&A Expense Depreciation and Amortization Operating Income Operating Margin Nonoperating Income Nonoperating Expenses Income Before Taxes Income Taxes Net Income After Taxes Continuing Operations Discontinued Operations Total Operations Total Net Income Net Profit Margin Diluted EPS from Continuing Operations Diluted EPS from Total Operations Diluted EPS from Total Net Income Dividends per Share
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Mar 2014 1,430.70 913.90 516.80 36.12% 284.90 21.00 203.30 14.21% 9.90 (25.50) 187.70 74.20 113.50
Dec 2013 1,437.00 910.90 526.10 36.61% 285.70 21.40 215.00 14.96% 1.20 (22.00) 194.20 67.50 126.70
Sep 2013 1,462.20 914.60 547.60 37.45% 279.00 20.30 244.60 16.73% 10.10 (24.70) 230.00 81.30 148.70
Jun 2013 1,468.20 890.90 577.30 39.32% 280.90 20.50 269.30 18.34% 3.60 (22.90) 250.00 97.70 152.30
Mar 2013 1,440.90 868.70 572.20 39.71% 283.20 19.50 262.00 18.18% 3.70 (24.30) 241.40 93.80 147.60
113.50 -113.10 113.10 7.91%
126.70 -126.30 126.30 8.79%
148.70 -148.30 148.30 10.14%
152.30 -151.90 151.90 10.35%
147.60 -147.20 147.20 10.22%
1.31 1.31 1.31 0.00
1.43 1.43 1.43 0.00
1.63 1.63 1.63 0.00
1.62 1.62 1.62 0.00
1.56 1.56 1.56 0.00
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Annual Balance Sheet All amounts in millions of US Dollars except per share amounts.
Assets Current Assets Cash Net Receivables Inventories Other Current Assets Total Current Assets Net Fixed Assets Other Noncurrent Total Assets
Dec 2013
Dec 2012
Dec 2011
Dec 2010
Dec 2009
404.00
466.80
159.30
230.70
148.50
784.70 136.50 106.90 1,432.10 707.40
718.50 121.00 85.50 1,391.80 630.80
699.80 110.80 114.90 1,084.80 578.30
655.60 103.40 154.10 1,143.80 586.90
574.20 90.00 122.90 935.60 500.80
4,826.40 6,965.90
4,772.40 6,795.00
4,473.50 6,136.60
4,457.10 6,187.80
3,401.40 4,837.80
Dec 2013
Dec 2012
Dec 2011
Dec 2010
Dec 2009
-2,491.30 2,491.30 85.70
-2,717.40 2,717.40 93.50
-2,503.50 2,503.50 97.80
-2,466.30 2,466.30 102.40
-2,106.10 2,106.10 105.30
Dec 2013
Dec 2012
Dec 2011
Dec 2010
Dec 2009
304.50 111.30 319.90 735.70
236.90 480.00 311.60 1,028.50
257.80 135.50 404.10 797.40
257.80 361.70 501.00 1,120.50
183.10 417.20 418.10 1,018.40
2,889.10 849.80 4,474.60
2,175.00 874.10 4,077.60
2,085.50 750.20 3,633.10
1,826.70 774.30 3,721.50
977.20 736.10 2,731.70
Shareholder's Equity Preferred Stock Equity Common Stock Equity Total Equity Shares Outstanding (M)
Liabilities Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Noncurrent Total Liabilities
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Quarterly Balance Sheet All amounts in millions of US Dollars except per share amounts.
Assets Quarter Ending Current Assets Cash Net Receivables Inventories Other Current Assets Total Current Assets Net Fixed Assets Other Noncurrent Total Assets
Shareholder's Equity Quarter Ending Preferred Stock Equity Common Stock Equity Total Equity Shares Outstanding (M)
Liabilities Quarter Ending Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Noncurrent Total Liabilities
Mar 2014
Dec 2013
Sep 2013
Jun 2013
Mar 2013
338.90
404.00
174.10
111.30
185.80
822.00 134.80 125.20 1,420.90 733.10
784.70 136.50 106.90 1,432.10 707.40
813.20 126.50 99.10 1,212.90 672.60
815.70 126.40 94.60 1,148.00 646.90
793.80 124.00 86.40 1,190.00 634.60
4,838.40 6,992.40
4,826.40 6,965.90
4,801.20 6,686.70
4,797.00 6,591.90
4,744.80 6,569.40
Mar 2014
Dec 2013
Sep 2013
Jun 2013
Mar 2013
-2,501.30 2,501.30 84.80
-2,491.30 2,491.30 85.70
-2,565.60 2,565.60 87.80
-2,663.40 2,663.40 90.50
-2,778.30 2,778.30 92.80
Mar 2014
Dec 2013
Sep 2013
Jun 2013
Mar 2013
281.90 105.30 366.40 753.60
304.50 111.30 319.90 735.70
262.00 110.40 308.20 680.60
253.40 119.90 281.80 655.10
246.60 147.90 346.00 740.50
2,903.00 834.50 4,491.10
2,889.10 849.80 4,474.60
2,553.50 887.00 4,121.10
2,390.00 883.40 3,928.50
2,175.00 875.60 3,791.10
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Annual Cash Flow All amounts in millions of US Dollars except per share amounts.
Cash and Cash Equivalents at the Beginning of Year Net Cash Provided in Operating Activities Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities Net Increase/Decrease in Cash and Cash Equivalents Cash and Cash Equivalents at the End of Year
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Dec 2013
Dec 2012
Dec 2011
Dec 2010
Dec 2009
466.80
159.30
230.70
148.50
219.70
818.70 (359.60) (518.30) (62.80)
841.40 (534.20) (0.80) 307.50
855.60 (280.30) (645.00) (71.40)
883.60 (1,317.50) 515.30 82.20
862.40 (334.00) (600.90) (71.20)
404.00
466.80
159.30
230.70
148.50
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Quarterly Cash Flow All amounts in millions of US Dollars except per share amounts.
Quarter Ending Cash and Cash Equivalents at the Beginning of Year Net Cash Provided in Operating Activities Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities Net Increase/Decrease in Cash and Cash Equivalents Cash and Cash Equivalents at the End of Year
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Mar 2014
Dec 2013
Sep 2013
Jun 2013
Mar 2013
404.00
174.10
111.30
185.80
466.80
142.30 (108.10) (98.00) (65.10)
818.70 (359.60) (518.30) (62.80)
570.00 (246.80) (613.70) (292.70)
335.80 (199.60) (486.90) (355.50)
198.20 (61.50) (412.80) (281.00)
338.90
404.00
174.10
111.30
185.80
May 14, 2014 • PAGE 25
Financial Market Data Current Information Last Close (09-May-2014) 52-Week High 52-Week Low 60-Month Beta Market Cap Shares Outstanding Dividend Rate Dividend Yield # of Institutional Holders Latest Short Interest Ratio
Growth Revenue Growth EPS Growth Dividend Growth
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$100.18 $108.00 $87.01 0.54 $8,495.26M 84.80M -0.00% 834 5.97
Price/Sales Ratio Price/Book Ratio Price/Earnings Ratio Price/Cash Flow Ratio Return on Assets Return on Equity Current Ratio Long-Term Debt/Equity % Owned by Institutions Latest Net Insider Transactions
1.55 3.40 16.67 11.79 7.96% 20.44% 1.89 1.20 --
12 Month
36 Month
60 Month
2.41% 4.41% --
5.09% 5.68% --
5.21% 8.36% --
May 14, 2014 • PAGE 26
Historical Financials Income Statement Year
Revenue ($ M)
Net Income ($ M)
Net Profit Margin
Employees
Dec 2013 Dec 2012 Dec 2011 Dec 2010 Dec 2009 Dec 2008 Dec 2007 Dec 2006 Dec 2005 Dec 2004
5,808.30 5,671.40 5,542.30 5,003.90 4,694.70 4,505.20 4,068.20 3,590.80 3,327.60 3,084.80
573.80 583.10 519.70 558.20 543.30 464.50 476.80 431.60 386.20 363.00
9.88% 10.28% 9.38% 11.16% 11.57% 10.31% 11.72% 12.02% 11.61% 11.77%
34,000 34,000 31,000 31,000 28,000 28,000 26,000 25,000 24,000 23,500
2013 Year-End Financials Debt Ratio Return on Equity Cash ($ M) Current Ratio Long-Term Debt ($ M) Shares Outstanding (M) Dividend Yield Dividend Payout Market Cap ($ M)
115.97% 20.44% 404.00 1.95 2,889.10 85.70 0.00% 0.00 7,830.41
Stock History Year
FY High
Dec 2013 Dec 2012 Dec 2011 Dec 2010 Dec 2009 Dec 2008 Dec 2007 Dec 2006 Dec 2005 Dec 2004
108.00 95.30 100.94 89.48 76.74 80.77 82.32 74.30 55.00 50.03
Stock Price ($) FY Low 85.80 81.56 74.57 69.49 53.25 52.93 65.13 52.58 44.63 36.70
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FY Close
High
P/E Low
91.37 86.62 85.97 87.92 74.84 64.41 75.53 73.47 53.85 49.82
17.28 15.91 19.75 16.91 15.41 19.42 20.95 22.93 20.30 20.42
13.73 13.62 14.59 13.14 10.69 12.72 16.57 16.23 16.47 14.98
Per Share ($) Earns. Div.
Book Value
6.25 5.99 5.11 5.29 4.98 4.16 3.93 3.24 2.71 2.45
29.07 29.06 25.60 24.08 20.00 15.63 14.98 15.77 14.19 14.45
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
May 14, 2014 • PAGE 27
Competitors List Company Arup Laboratories Bio-Reference Labs (Top Competitor) Celera CompuNet Clinical Laboratories Covance eScreen HedgePath IDENTIGENE Kroll Background America Laboratory Sciences of Arizona MEDTOX Laboratories Medtox Scientific Mid America Clinical Laboratories NeoGenomics Oncolab Orchid Cellmark Pathology Associates Medical Laboratories Pharmaceutical Product Development Psychemedics Quest Diagnostics (Top Competitor) Solstas Sonic Healthcare (Top Competitor)
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Gross Revenue
Net Profit Margin
Net Operating Cash Flow
$155.10M $715.35M $48.00M $39.00M $2,595.13M $35.10M $0.00M $2.80M $6.30M $136.90M $108.15M $46.90M $32.10M $66.47M $0.50M $32.70M $110.30M
-5.46% (13.17%) -6.92% ------4.37% -3.06% -(9.78%) --
-$17.66M --$405.65M -($1.22M) ------$2.23M ----
$1,156.00M $26.87M $7,146.00M $67.60M $3,141.00M
10.50% 13.61% 11.50% -9.88%
-$5.95M $652.00M -$419.62M
May 14, 2014 • PAGE 28
Competitive Landscape Companies listed are Top Competitors. Key Numbers
Annual Sales ($ M) Employees Market Cap ($ M) Profitability
Gross Profit Margin Pre-Tax Profit Net Profit Margin Return on Equity Return on Assets Return on Invested Capital
Valuation
Price/Sales Ratio Price/Earnings Ratio Price/Book Ratio Price/Cash Flow Operations
Days of Sales Outstanding Inventory Turnover Days Cost of Goods Sold in Inventory Asset Turnover Net Receivables Turnover Flow Effective Tax Rate
Laboratory Corporation of America $5,808.30M 34,000 $7,830.41M
Bio-Reference Quest Diagnostics Laboratories, Inc. Incorporated $7,146.00M 41,000 $7,709.76M
$5,371.95M
Laboratory Corporation of America 37.39% 14.87% 9.31% 20.44% 7.96% 11.33%
Bio-Reference Quest Diagnostics Laboratories, Inc. Incorporated
Sonic Healthcare Limited
Industry
Market
38.99% 18.68% 11.50% 19.95% 8.67% 11.82%
84.87% 13.01% 9.88% 13.19% 6.92% 8.94%
43.15% 10.56% 8.07% 11.46% 5.36% 11.15%
33.48% 10.64% 7.25% 11.68% 2.11% 7.33%
Laboratory Corporation of America 1.55 16.67 3.40 11.79
Bio-Reference Quest Diagnostics Laboratories, Inc. Incorporated
Sonic Healthcare Limited
Industry
Market
1.20 10.66 2.07 12.41
1.96 19.80 2.35 15.02
2.30 27.86 2.93 -2.20
1.45 20.28 2.24 243.90
Laboratory Corporation of America 50.9
Bio-Reference Quest Diagnostics Laboratories, Inc. Incorporated
Sonic Healthcare Limited
Industry
Market
$715.35M 4,427 $897.21M
44.03% 9.65% 5.46% 15.69% 10.56% 14.07%
0.95 17.45 2.54 96.15
Sonic Healthcare Limited $3,141.00M
94.1
49.0
49.1
58.6
--
28.0 13.0
21.7 16.8
45.9 8.0
9.4 38.6
5.9 61.6
7.3 --
0.9 7.2
1.9 3.9
0.8 7.4
0.7 7.4
0.7 6.2
0.3 5.7
37.20%
43.48%
37.08%
23.32%
33.78%
28.53%
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May 14, 2014 • PAGE 29
Financial
Sonic Healthcare Limited
Industry
Market
1.22 0.92 2.27 0.84 9.24
0.83 0.74 1.91 0.68 8.46
2.42 1.84 2.14 0.65 5.66
1.47 1.00 5.60 0.93 5.81
Laboratory Corporation of America Per Share Data $64.55 Dividend Per Share $0.00 Cash Flow Per Share $8.49 Working Capital Per Share $8.21 Long-Term Debt Per Share $34.07 Book Value Per Share $29.50 Total Assets Per Share $82.15
Bio-Reference Quest Diagnostics Laboratories, Inc. Incorporated
Sonic Healthcare Limited
Industry
Market
$47.53 $1.23 $4.61 $1.74 $21.59 $27.63 $61.93
$8.00 $0.51 $1.04 ($0.38) $3.14 $6.66 $12.05
$5.10 --$6.00 $0.01 $13.97 $29.31
$2.04 --$2.07 $0.02 $15.65 $48.27
Growth
Bio-Reference Quest Diagnostics Laboratories, Inc. Incorporated
Sonic Healthcare Limited
Industry
Market
4.01% 6.01% 4.46% 7.14% 5.31% 4.54% 3.97% 1.80%
1.88% 6.35% --8.78% 21.97% ---
(1.23%) 12.38% --5.15% 3.37% ---
Current Ratio Quick Ratio Leverage Ratio Total Debt/ Equity Interest Coverage
Laboratory Corporation of America 1.95 1.62 2.80 1.20 9.82
Bio-Reference Quest Diagnostics Laboratories, Inc. Incorporated
Per Share Data
Laboratory Corporation of America 12-Month Revenue 2.41% 12-Month Net Income (1.59%) 12-Month EPS Growth 4.41% 12-Month Dividend Growth -36-Month Revenue Growth 5.09% 36-Month Net Income Growth 0.92% 36-Month EPS Growth 5.68% 36-Month Dividend Growth --
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2.20 1.68 1.55 0.17 38.06
$26.42 -$0.26 $5.81 $0.52 $9.92 $15.21
8.11% 8.70% 8.97% -16.02% 20.21% 20.48% --
(3.20%) 52.77% 35.46% 194.12% (1.02%) 5.60% 9.36% 55.36%
May 14, 2014 • PAGE 30
Company Overview 3 Giralda Farms Madison, NJ 07940 United States Phone : +1-973-520-2700 http://www.questdiagnostics.com Quest Diagnostics is testing its ability to be the world's leading clinical lab. The company performs diagnostics on some 147 million specimens each year, including routine clinical tests such as cholesterol checks, Pap smears, and HIV screenings. Quest Diagnostics also performs esoteric testing (such as genetic screening) and anatomic pathology testing (such as tissue biopsies for cancer testing). In all, the company serves half of the physicians and hospitals in the US as well as government agencies and other clinical labs. Quest Diagnostics has more than 2,000 patient service centers where samples are collected, and the Quest Diagnostic Nichols Institute where new diagnostics are developed.
Key Information DUNS Number Location Type Subsidiary Status Manufacturer Company Type Plant/Facility Size (sq. ft.) Foreign Trade Accountant Total Employees 1-Year Employee Growth Employees At This Location Year of Founding or Change in Control Primary Industry Primary SIC Code Primary NAICS Code Tradestyle Latitude/Longitude
056354640 Headquarters No Yes Public 12,669.00 Imports PricewaterhouseCoopers LLP 41,000 0.00% 2,800 1967 2052:Medical & Diagnostic Laboratories 80710000:Medical laboratories 62151:Medical and Diagnostic Laboratories Quest Diagnostics 40.768427 / -74.433972
Key Financials Fiscal Year-End Sales ($ M) 1-Year Sales Growth Net Income 1-Year Net Income Growth Total Assets Market Value Prescreen Score
December $7,146.00M (3.20%) $849.00M 52.77% $8,948.00M $8,261.65M Low Risk
Company Rankings 341 in FORTUNE 500 (May 2013) S&P 500 (March 31, 2014) 341 in FORTUNE 1000 (May 2013)
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Key People Name
Title
Dr. Daniel C. (Dan) Stanzione
Chairman
Mr. Stephen H. (Steve) Rusckowski
President, CEO, and Director
Mr. John B. Haydon
SVP Operations
Mr. Mark J. Guinan
SVP and CFO
Mr. David Evans
VP Information Technology
Dr. Jon R. Cohen
SVP and Chief Medical Officer
Mr. Everett V. Cunningham
SVP Commercial
Mr. James E. Davis
SVP Diagnostic Solutions
Ms. Catherine T. Doherty
SVP Clinical Franchises
Mr Jeff Broka
Managing Director
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Company Description Geographic Reach While more than 95% of sales come from the US market, Quest aims for its international operations to eventually account for more than 10% of revenues. The firm is especially focused on expanding in the developing world, where the diagnostic testing market is more fragmented. Key growth markets outside the US include India, Ireland, Mexico, Puerto Rico, Sweden, and the UK. In addition to its patient service centers located across the US, Quest has a dozen major laboratory facilities in California, Florida, Georgia, Illinois, Maryland, New Jersey, Pennsylvania, Texas, and Virginia. Operations More than 90% of Quest's revenue comes from its diagnostic information services (DIS) segment, which includes its routine clinical, anatomic pathology, gene-based, esoteric, and drugs-of-abuse testing businesses. In the realm of diagnostic testing, Quest strives to make itself ubiquitous, with a comprehensive menu of tests (more than 3,000) and a network of labs and collection sites that blanket the US. In addition to its own patient service centers where samples are collected, the company maintains a staff of 3,000 field phlebotomists who collect blood samples in physicians' offices. It also provides pathology testing services and staffing within hospitals. Other workers include the contracted paramedical examiners who conduct examinations for life insurance applicants. The company also offers a number of other products and services through its diagnostic solutions segment. Its online data management system, the Care360 physician portal, lets doctors order diagnostic tests, review results, prescribe medication, and manage patient files, while its Care360EHR is an electronic health record (EHR) product. Quest also offers software that helps patients schedule tests and assess their results. A small portion of sales comes from providing testing services to drug companies' clinical trials. Additionally, Quest provides global testing and risk assessment services for the life insurance industry. Sales and Marketing Quest's customers include commercial laboratories, employers, government agencies, health plans, life insurers, not-for-profit organizations, pain clinics, and EHR vendors. Financial Performance The company reported revenues of $7.4 billion in 2012, down 2% from results in 2011 primarily due to asset divestitures conducted as part of a strategic realignment program announced that year. The company also experienced lower sales in the clinical trials testing business during 2012, which were largely offset by acquisitiondriven growth in the diagnostics products business. The company has alternated between revenue growth and decline over the past five years. Settlement of a civil lawsuit in early 2011 pulled down the net income for the year, though profits recovered some ground in 2012 with an 18% increase to $555.7 million on lower operating expenses (related to the lack of lawsuit and acquisition expenses in 2011). Strategy Despite its lofty position in the clinical testing market, Quest has been conducting cost-cutting measures to keep its competitive edge. The company announced a program in 2012 that aims to refocus on its core testing product lines, simplify its organization, and return to growth. The program includes a management restructuring program designed to reduce organizational complexity. It also included the divestiture of the HemoCue point-of-care testing business to Radiometer Medical for some $300 million in early 2013 and the sale of the OralDNA (salivary diagnostics) in late 2012, as well as rights to a pharmaceutical product, ibrutinib, to Royalty Pharma for $485 million in mid-2013. The strategic program also includes capital spending to further growth initiatives, including potential acquisitions. Quest's expansion programs are especially focused on widening its product lines in the growing esoteric and genebased testing markets, with a focus on areas such as cancer, cardiovascular, and neurological diagnostics, as well as personalized medicine products (genetic tests to determine a patient's most effective medication regimen). The company also hopes to profit from the growing number of laboratories integrating clinical information systems into their practices. Mergers & Acquisitions Quest has traditionally looked to grow its reach by acquiring firms with complementary locations or testing capabilities. Towards that end, the company has made a number of acquisitions that have increased its presence in specific testing categories, such as cancer biopsy tests. In 2012 it acquired S.E.D. Medical Laboratories to enhance its drugs-of-abuse testing capabilities, and in 2013 it acquired several small clinical outreach laboratory facilities.
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Company History Quest Diagnostics began as one man's quest to make clinical tests more affordable. Pathologist Paul Brown started Metropolitan Pathological Laboratory (MetPath) in his Manhattan apartment in 1967. To help his business take off, in 1969 he bought two $55,000 blood analyzers that could automatically perform a dozen common tests; the machines allowed him to charge patients $5.50 while hospitals and other labs were charging upwards of $40. Investments in emerging lab technology helped MetPath continue to beat competitors' prices and grow its business. It made its first profit in 1971 and eventually attracted the attention of Corning Glass Works, which bought 10% of the company in 1973. MetPath's growth was due in part to investments in technology. The company built a state-of-the-art central lab in New Jersey in 1978 that could process some 30,000 specimens daily; it also went on an acquisition spree to expand across the US. These investments left the firm swamped with debt, and Corning bought the company in 1982. An autonomous unit of Corning, MetPath continued to grow as Medicare reimbursement for lab tests went up and more doctors ordered more tests to catch and prevent disease before it happened. To cut costs in the mid-1980s, the company reorganized its facilities to create a regional lab network. A reorganization in 1990 at its parent placed MetPath in the Corning Lab Services subsidiary. Corning Lab Services strengthened its operations in the early 1990s by buying labs from regional operators. In 1994 MetPath became Corning Clinical Laboratories. Around the same time, the company found itself besieged with demands from HMOs and other managed care providers to lower its costs. Also during this time, the company settled a handful of federal suits accusing it of fraudulent Medicare billing. In the face of increasing pressure, parent Corning spun off its lab testing business to the public as Quest Diagnostics in 1996. On its own, Quest aimed to grow through acquisitions. In 1999 it bought rival SmithKline Beecham Clinical Laboratories from GlaxoSmithKline. (GSK gained a minority stake in Quest through the deal; it gradually sold off all shares in Quest by 2011.) Continuing its growth strategy in the 21st century, it bought American Medical Laboratories to expand its esoteric testing operations in 2002. The company was finally able to close its acquisition of Unilab in early 2003 after the deal ran into delays with the FTC. Quest sold some labs and service contracts in northern California to LabCorp to appease FTC regulators. Quest Diagnostics acquired LabOne, a provider of risk assessment services for life insurance companies, in 2005. The following year it purchased point-of-care test makers Enterix (colorectal cancer screens) and Focus Diagnostics (infectious disease and esoteric testing). In 2007 the company purchased another point-of-care testing provider, Sweden-based HemoCue, for $344 million. In 2007 the company acquired laboratory services firm AmeriPath in a deal worth about $2 billion. The purchase strengthened Quest's operations in a number of areas, including anatomic pathology (especially cancer testing) and molecular diagnostics. To expand internationally, the company began providing testing services in India in 2008, including esoteric testing for hospitals, tests for the life insurance industry, and diagnostics for global clinical trials. The company launched restructuring programs in 2010 to streamline processes and reduced the workforce slightly in response to reduced testing volumes. In 2011 Quest expanded into another specialist category with the acquisition of genetic testing firm Athena Diagnostics from Thermo Fisher Scientific for $740 million. Offering some 350 esoteric diagnostics for neurological conditions, including Alzheimer's disease and spinal muscular atrophy, Athena became Quest's base for neurology diagnostics. To bring genetic diagnostics development closer in-house, Quest acquired Celera for $327 million in 2011. The purchase included Celera's Berkeley HeartLab (cardiovascular tests), a pipeline of diagnostic products, a handful of marketed specialty test products, and a vault full of discovered genetic biomarkers that have the potential to be used as diagnostics.
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Industry Information Hoover's Industries > Health Care Sector > Ambulatory Health Care Services > Medical & Diagnostic Laboratories ( primary ) Primary SIC Code 80710000 : Medical laboratories Primary NAICS Code 62151 : Medical and Diagnostic Laboratories Denotes In-depth Industry Insight by Hoover's Editorial Staff
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May 14, 2014 • PAGE 6
People Employees Title
Name
Age
Salary
Bonus
Chairman
Dr. Daniel C. (Dan) Stanzione Mr. Stephen H. (Steve) Rusckowski Mr. John B. Haydon Mr. Mark J. Guinan Mr. David Evans Dr. Jon R. Cohen Mr. Everett V. Cunningham Mr. James E. Davis Ms. Catherine T. Doherty Mr Jeff Broka Mr Vito Sardanopoli
68
--
--
57
$682,500.00
$500,000.00
---$573,900.00 --$520,000.00 ---
----------
Leo Farrenkopf Christopher Fikry Mr James Garczynski Patricia A Maloney
-----
-----
Jay Wohlgemuth
--
--
Julia Kenny Mr William M Miller Dr. Mervyn A Sahud Mr Anthony V Thomas Vanessa Abate
------
------
Jenna Bowley Fatih Boyar Mr Kevin Brusca
----
----
Robert Caldwell Alain Charewicz Jeff Craven Ms Colleen D'Abbene
-----
-----
Ms Ines Dahne
--
--
President, CEO, and Director SVP Operations SVP and CFO VP Information Technology SVP and Chief Medical Officer SVP Commercial SVP Diagnostic Solutions SVP Clinical Franchises Managing Director Director Information Technology Security Vp Vice President Clinical Trial Vice President Operations Vice President Business Development Vice President Science And Innovation Medical Director Medical Director Medical Director, Coagulation Medical Director Executive Director Business Development Director Director Cytogenetics Executive Director Regional And Channel Marketing Hospital Sales Director Director Of Strategy And Programs Director Of Health Plan Finance Program Director, Growth Information Technology Strategy And Planning Director
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59
May 14, 2014 • PAGE 7
Title
Name
Laboratory Operations Director Executive Director Quality Reg Cmpl Director Of Laboratory Operations Director, Database Management Technical Director Serology Director, Phys Sales Information Technology And Admin Director, Commercial Marketing Director Director, Data And Voice Engineering And Services Director Of Compliance Sjc Director Director Logistics And Specimen National Director Anthropolgy Pathology Operations Director Anatomic Pathology Director Director Human Resources East Director Anatomic Pathology Processs Director Training Information Director, Global Marketing Director, Client Services Director Laboratory Operations
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Age
Salary
Bonus
Ms Janet Doerfler Oluwole Edwin Dawn Forst Jeffrey Gibson Tara Givens Gary Grazioso
-------
-------
Cecelia Henderson Amy Hermann Mr Andrew Hills
----
----
Brad Holland Mr Brian Jaffa Doug Lang Jeff Lawrence
-----
-----
Mr Ronald D Luff Steve Manolis Ms Kristine A Mede Karen Myrent
-----
-----
Terry Nagy George Ng Ms Amy Pisone Mr Ron Raglin
-----
-----
May 14, 2014 • PAGE 8
Board Members Title
Name
Age
Chairman President, CEO, and Director
Dr. Daniel C. (Dan) Stanzione Mr. Stephen H. (Steve) Rusckowski
68 57
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May 14, 2014 • PAGE 9
Biographies Daniel C. (Dan) Stanzione, Age 68 Title held since 2012 : Chairman Current Company Titles 2012 - Present : Chairman 1997 - 2012 : Director
Other Company Affiliations Chairman, Internap Network Services Corporation
Biography Daniel C. Stanzione, Ph.D. retired from Lucent Technologies Incorporated in 2000 and is President Emeritus of Bell Laboratories and an independent consultant. Dr. Stanzione began his career in 1972 with Bell Laboratories, where he led the teams working on the first microprocessors and digital signal processors. He was appointed President of Network Systems, Lucents largest business unit, in 1996 and was appointed Chief Operating Officer of Lucent in 1997. Dr. Stanzione is a director of InterNAP Network Services Corporation, where he serves as non-executive chairman. Dr. Stanzione served as a director of Avaya Inc. from 2000 until 2007. He has been a director of Quest Diagnostics since January 1997 and was named Non-Executive Chairman of the Board on May 1, 2012. Dr. Stanzione has extensive executive experience, including general management and strategic planning with multinational corporations operating in complex industries. Source : Company Web Site, 2013
Stephen H. (Steve) Rusckowski, Age 57 Title held since 2012 : President, CEO, and Director Current Company Titles 2012 - Present : President, CEO, and Director
Current Company Compensation History Salary Bonus 2012 :
$682,500.00
$500,000.00
Total $12,973,963.00
Other Company Affiliations VP Member of Management Board and Chief Exec, Koninklijke Philips Electronics N.V.
Biography Steve Rusckowski is President and Chief Executive Officer of Quest Diagnostics. Since joining Quest Diagnostics in May 2012, Mr. Rusckowski has focused on transforming the company, based on its compelling vision of Empowering better health with diagnostic insights. Under his leadership, the company has refocused on its core diagnostic information services business, sold non-core assets, delivered disciplined deployment, including share repurchases and acquisitions, and simplified its organizational structure to better serve customers by removing complexity, speeding decision making and empowering employees. Prior to joining Quest Diagnostics, Mr. Rusckowski was CEO of Philips Healthcare, which became the largest unit of
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May 14, 2014 • PAGE 10
Royal Philips Electronics under his leadership. He joined Philips in 2001 when it acquired the Healthcare Solutions Group he was leading at Hewlett-Packard/Agilent Technologies. Mr. Rusckowski is a member of the Board of Directors of Covidien, a healthcare products provider, and Project Hope, a global health education and humanitarian assistance organization. He earned a Bachelor of Science degree in Mechanical Engineering from Worcester Polytechnic Institute and a Master of Science degree in Management from the Massachusetts Institute of Technologys Sloan School of Management. Source : Company Web Site, 2013
John B. Haydon Title held since 2012 : SVP Operations Current Company Titles 2012 - Present : SVP Operations
Biography John Haydon is Senior Vice President, Operations for Quest Diagnostics. He is responsible for delivering all diagnostic testing, information and services across the company. Prior to joining Quest Diagnostics in 2012, Mr. Haydon was Executive Vice President and Group Head of Global Operations and Business Excellence for Royal Philips Electronics based in Amsterdam. He also served as Executive Vice President and Chief Supply Officer, Philips Healthcare based in Boston. Before joining Philips, Mr. Haydon was President and Chief Operating Officer at BTI Systems (optical networks) Company. From 1982 to 2007 he worked for Nortel Networks (telecom equipment) in a variety of senior executive roles such as Chief Procurement Officer, Global Head of Supply Chain and Vice President of Order Management. Mr. Haydon holds a business administration diploma in marketing from Algonquin College in Ottawa, Ontario, and an MBA from Queens University in Kingston, Ontario. Source : Company Web Site, 2013
Mark J. Guinan Title held since 2013 : SVP and CFO Current Company Titles 2013 - Present : SVP and CFO
Biography Mark J. Guinan is Senior Vice President and Chief Financial Officer for Quest Diagnostics. From 2010 until joining Quest Diagnostics in 2013, Mr. Guinan served as Chief Financial Officer for Hill-Rom Holdings Inc., a manufacturer and provider of medical technologies and related services for the health care industry. Previously, he had served in a number of finance and operations roles in a long career at Johnson & Johnson in which he served most recently as Chief Procurement Officer, and earlier as CFO of the pharmaceutical business. Before that, he held a number of financial roles at Procter & Gamble. Mr. Guinan earned an MBA from The John M. Olin Graduate School of Business at Washington University, St. Louis, Mo., and a bachelors
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May 14, 2014 • PAGE 11
degree in economics from the University of Notre Dame. Source : Company Web Site, 2013
David Evans Current Company Titles Unknown - Present : VP Information Technology
Jon R. Cohen, Age 59 Title held since 2009 : SVP and Chief Medical Officer Current Company Titles 2009 - Present : SVP and Chief Medical Officer
Current Company Compensation History Salary Bonus 2012 : 2011 : 2010 : 2009 :
$573,900.00 $563,750.00 $563,750.00 $412,500.00
-----
Total $2,797,058.00 $3,093,077.00 $2,974,764.00 $2,710,775.00
Biography Jon R. Cohen, M.D., is Senior Vice President and Chief Medical Officer for Quest Diagnostics. His responsibilities also include Cancer Diagnostics and Pathology operations, and the development of hospital-focused professional services. Prior to joining Quest Diagnostics in 2009, Dr. Cohen had spent more than two decades in the healthcare field. He served as Managing Director, Health Industries Services, at PricewaterhouseCoopers. Prior to joining PwC, Dr. Cohen served for six years as Chief Medical Officer and Senior Vice President at North Shore-Long Island Jewish Health System, the nation's fourth-largest nonprofit health system. He has held senior professional appointments, including Professor of Surgery at the Albert Einstein College of Medicine and Senior Lecturer at Columbia University's Mailman School of Public Health and has published more than 100 peer-reviewed professional articles. Dr. Cohen holds a bachelors degree from the University of Miami and an M.D. degree from the University of Miami School of Medicine. He completed his general surgery residency at the New York Hospital-Cornell Medical Center followed by a vascular surgery fellowship at Brigham and Women's Hospital/Harvard Medical School. Source : Company Web Site, 2013
Everett V. Cunningham Title held since 2012 : SVP Commercial Current Company Titles 2012 - Present : SVP Commercial
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May 14, 2014 • PAGE 12
Biography Everett Cunningham is Senior Vice President, Commercial for Quest Diagnostics. He is responsible for commercial sales and marketing. Prior to joining Quest Diagnostics, Mr. Cunningham spent 21 years with Pfizer, Inc., where he served most recently as Regional President, Established Products for Asia Pacific. Beginning his career as a Sales Representative, Mr. Cunningham served in roles of increasing responsibility including Senior Director of Worldwide Learning and Development, Senior Director of Business Operations and Vice President Sales for U.S. Pharmaceuticals, and Vice President of Global Corporate Human Resources. Mr. Cunningham earned his bachelors degree in economics from Northwestern University. Source : Company Web Site, 2013
James E. Davis Title held since 2013 : SVP Diagnostic Solutions Current Company Titles 2013 - Present : SVP Diagnostic Solutions
Biography James E. Davis is Senior Vice President, Diagnostic Solutions for Quest Diagnostics. He is responsible for diagnostic products; Insurer and Employer Services; Clinical Trials; and MedPlus products. Prior to joining Quest Diagnostics in April 2013, Mr. Davis served as CEO of InSightec, Inc., a medical device company that designs and develops ultrasound ablation devices that are guided by Magnetic Resonance Imaging (MRI) systems. Prior to that, he held Vice President and General Manager roles at GE's MRI, diagnostics imaging and healthcare information technology businesses, where he established a record for achieving growth and operational improvement. Prior to GE, Mr. Davis led the development of strategic and operating initiatives for clients of McKinsey. Mr. Davis holds a business management degree from the Massachusetts Institute of Technology's Sloan School of Management, a master's degree in applied mathematics and operations research from MIT, and a bachelor's degree in aeronautical engineering from the University of Michigan. Source : Company Web Site, 2013
Catherine T. Doherty Title held since 2013 : SVP Clinical Franchises Current Company Titles 2013 - Present : SVP Clinical Franchises 2011 - 2013 : SVP Physician Services Business Unknown - 2011 : VP Hospital Services
Current Company Compensation History Salary Bonus
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Total
May 14, 2014 • PAGE 13
2012 :
Salary
Bonus
Total
$520,000.00
--
$2,692,218.00
Biography Catherine T. Doherty is Senior Vice President, Clinical Franchises for Quest Diagnostics. She is responsible for overseeing the development of service offerings in the areas of cardiovascular, infectious disease, neurology (including Athena), prescription drug monitoring, womens health and general wellness. She is also responsible for the Care360 connectivity program. Ms. Doherty joined Quest Diagnostics in 1990 and most recently was Senior Vice President, Physician Services Business. Prior to that, she served as Vice President, Hospital Services, and as Vice President, Office of the Chairman. A certified public accountant, Ms. Doherty graduated from Montclair State University and holds a bachelors degree in business administration with a concentration in accounting. Source : Company Web Site, 2013
Jeff Broka Current Company Titles Unknown - Present : Managing Director
Vito Sardanopoli Current Company Titles Unknown - Present : Director Information Technology Security
Leo Farrenkopf Current Company Titles Unknown - Present : Vp
Christopher Fikry Current Company Titles Unknown - Present : Vice President Clinical Trial
James Garczynski Current Company Titles Unknown - Present : Vice President Operations
Patricia A Maloney Current Company Titles
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May 14, 2014 • PAGE 14
Unknown - Present : Vice President Business Development
Jay Wohlgemuth Current Company Titles Unknown - Present : Vice President Science And Innovation
Julia Kenny Current Company Titles Unknown - Present : Medical Director
William M Miller Current Company Titles Unknown - Present : Medical Director
Mervyn A Sahud Current Company Titles Unknown - Present : Medical Director, Coagulation
Biography Dr. Sahud is the Medical Director of the Coagulation Department where he oversees new product implementation and offers phone hematology-coagulation consultation. He continues as an Associate Clinical Professor of Medicine in Hematology and has a deep interest in autoimmune acquired hemophilia, Lupus anticoagulants, rare hemophilia, and bleeding disorders. He has active publications in these areas and continues to participate in the International Society of Thrombosis and Haemostasis subcommittees for Platelet Immunology, Lupus Anticoagulants, and Factor VIII inhibitors. Source : Company Web Site, 2006
Anthony V Thomas Current Company Titles Unknown - Present : Medical Director
Vanessa Abate Current Company Titles Unknown - Present : Executive Director Business Development
Jenna Bowley
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May 14, 2014 • PAGE 15
Historical Events Date
Event
Details
2012-04-11 2012-04-11
Top Executive Change Top Executive Change
The company named Stephen H. Rusckowski CEO. Surya N. Mohapatra resigned.
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May 14, 2014 • PAGE 20
Company Financials
Financial Summary Company Type Fiscal Year-End 2013 Sales 1-Year Sales Growth 2013 Net Income 1-Year Net Income Growth Prescreen Score Auditor
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Public NYSE: DGX Headquarters December $7,146.00M (3.20%) $849.00M 52.77% Low Risk PricewaterhouseCoopers LLP
May 14, 2014 • PAGE 21
Annual Income Statement All amounts in millions of US Dollars except per share amounts.
Revenue Cost of Goods Sold Gross Profit Gross Profit Margin SG&A Expense Depreciation and Amortization Operating Income Operating Margin Nonoperating Income Nonoperating Expenses Income Before Taxes Income Taxes Net Income After Taxes Continuing Operations Discontinued Operations Total Operations Total Net Income Net Profit Margin Diluted EPS from Continuing Operations Diluted EPS from Total Operations Diluted EPS from Total Net Income Dividends per Share
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Dec 2013 7,146.00 4,326.00 2,820.00 39.46% 1,704.00 79.00 1,475.00 20.64% 32.00 (159.00) 1,348.00 500.00 848.00
Dec 2012 7,382.56 4,364.70 3,017.86 40.88% 1,745.20 74.75 1,200.80 16.27% 32.29 (164.69) 1,068.40 401.90 666.50
Dec 2011 7,510.49 4,395.33 3,115.16 41.48% 1,814.32 67.03 995.05 13.25% 31.77 (170.58) 856.23 349.00 507.23
Dec 2010 7,368.93 4,317.25 3,051.68 41.41% 1,707.67 39.22 1,295.54 17.58% 34.89 (146.09) 1,184.34 425.53 758.80
Dec 2009 7,455.24 4,321.48 3,133.77 42.03% 1,747.62 37.06 1,359.11 18.23% 12.89 (144.07) 1,227.93 460.47 767.46
848.00 35.00 849.00 849.00 11.88%
666.50 (74.36) 555.72 555.72 7.53%
507.23 (1.58) 470.57 470.57 6.27%
758.80 (1.79) 720.89 720.89 9.78%
767.46 (1.24) 729.11 729.11 9.78%
5.31 5.55 5.54 1.50
3.92 3.47 3.46 0.51
2.93 2.94 2.92 0.47
4.06 4.07 4.05 0.40
3.88 3.88 3.87 0.40
May 14, 2014 • PAGE 22
Quarterly Income Statement All amounts in millions of US Dollars except per share amounts.
Quarter Ending Revenue Cost of Goods Sold Gross Profit Gross Profit Margin SG&A Expense Depreciation and Amortization Operating Income Operating Margin Nonoperating Income Nonoperating Expenses Income Before Taxes Income Taxes Net Income After Taxes Continuing Operations Discontinued Operations Total Operations Total Net Income Net Profit Margin Diluted EPS from Continuing Operations Diluted EPS from Total Operations Diluted EPS from Total Net Income Dividends per Share
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Mar 2014 1,746.00 1,101.00 645.00 36.94% 415.00 22.00 208.00 11.91% 7.00 (39.00) 176.00 65.00 111.00
Dec 2013 1,756.47 1,051.99 704.49 40.11% 414.63 19.80 269.81 15.36% 7.13 (39.25) 237.69 86.30 151.39
Sep 2013 1,787.14 1,088.50 698.64 39.09% 422.96 20.16 689.48 38.58% 7.83 (39.97) 657.34 245.87 411.46
Jun 2013 1,815.74 1,093.67 722.07 39.77% 418.55 19.76 288.72 15.90% 7.51 (39.92) 256.31 94.49 161.82
Mar 2013 1,786.65 1,091.83 694.81 38.89% 447.87 19.28 226.99 12.71% 9.54 (39.87) 196.67 73.34 123.33
111.00 0.00 104.00 104.00 5.96%
151.39 (0.50) 142.61 142.61 8.12%
411.46 2.41 405.14 405.14 22.67%
161.82 12.80 165.47 165.47 9.11%
123.33 20.29 135.78 135.78 7.60%
0.71 0.72 0.71 0.33
0.97 0.97 0.97 0.30
2.66 2.68 2.68 0.30
0.99 1.07 1.07 0.30
0.72 0.85 0.85 0.30
May 14, 2014 • PAGE 23
Annual Balance Sheet All amounts in millions of US Dollars except per share amounts.
Assets Current Assets Cash Net Receivables Inventories Other Current Assets Total Current Assets Net Fixed Assets Other Noncurrent Total Assets
Dec 2013
Dec 2012
Dec 2011
Dec 2010
Dec 2009
187.00
295.59
164.89
449.30
534.26
852.00 91.00 253.00 1,383.00 805.00
867.01 93.05 305.35 1,561.00 755.83
906.46 89.13 240.79 1,401.26 799.77
845.30 76.57 234.25 1,605.42 834.38
827.34 91.39 226.44 1,679.43 825.95
6,760.00 8,948.00
6,967.04 9,283.86
7,112.35 9,313.38
6,087.84 8,527.63
6,058.27 8,563.64
Dec 2013
Dec 2012
Dec 2011
Dec 2010
Dec 2009
-3,948.00 3,948.00 144.00
-4,163.05 4,163.05 158.33
-3,692.87 3,692.87 157.42
-4,033.48 4,033.48 170.72
-3,989.64 3,989.64 183.29
Dec 2013
Dec 2012
Dec 2011
Dec 2010
Dec 2009
258.00 212.00 662.00 1,132.00
203.55 9.40 834.65 1,047.60
215.34 654.40 691.42 1,561.16
212.49 349.00 652.78 1,214.27
207.33 170.51 681.38 1,059.21
3,120.00 748.00 5,000.00
3,354.17 719.04 5,120.82
3,370.52 688.83 5,620.51
2,641.16 638.72 4,494.15
2,936.79 578.00 4,574.00
Shareholder's Equity Preferred Stock Equity Common Stock Equity Total Equity Shares Outstanding (M)
Liabilities Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Noncurrent Total Liabilities
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May 14, 2014 • PAGE 24
Quarterly Balance Sheet All amounts in millions of US Dollars except per share amounts.
Assets Quarter Ending Current Assets Cash Net Receivables Inventories Other Current Assets Total Current Assets Net Fixed Assets Other Noncurrent Total Assets
Shareholder's Equity Quarter Ending Preferred Stock Equity Common Stock Equity Total Equity Shares Outstanding (M)
Liabilities Quarter Ending Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Noncurrent Total Liabilities
Mar 2014
Dec 2013
Sep 2013
Jun 2013
Mar 2013
144.00
187.00
158.28
148.34
133.60
977.00 99.00 268.00 1,488.00 851.00
852.00 91.00 253.00 1,383.00 805.00
920.83 85.19 261.35 1,425.65 749.36
946.75 89.44 285.16 1,469.70 751.81
929.97 89.82 303.78 1,457.17 753.94
7,211.00 9,550.00
6,760.00 8,948.00
6,752.54 8,927.54
6,814.67 9,036.19
7,095.06 9,306.16
Mar 2014
Dec 2013
Sep 2013
Jun 2013
Mar 2013
-3,992.00 3,992.00 144.00
-3,948.00 3,948.00 144.00
-3,842.68 3,842.68 145.39
-3,911.96 3,911.96 151.82
-4,199.95 4,199.95 157.91
Mar 2014
Dec 2013
Sep 2013
Jun 2013
Mar 2013
-223.00 969.00 1,192.00
258.00 212.00 662.00 1,132.00
-244.70 994.29 1,239.00
-374.76 915.93 1,290.69
-254.42 953.80 1,208.22
3,724.00 642.00 5,558.00
3,120.00 748.00 5,000.00
3,122.21 723.66 5,084.86
3,121.60 711.94 5,124.23
3,146.78 751.22 5,106.22
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May 14, 2014 • PAGE 25
Annual Cash Flow All amounts in millions of US Dollars except per share amounts.
Cash and Cash Equivalents at the Beginning of Year Net Cash Provided in Operating Activities Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities Net Increase/Decrease in Cash and Cash Equivalents Cash and Cash Equivalents at the End of Year
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Dec 2013
Dec 2012
Dec 2011
Dec 2010
Dec 2009
295.59
164.89
449.30
534.26
253.95
652.00 328.00 (1,106.00) (126.00)
1,187.17 (217.14) (822.10) 147.93
895.47 (1,243.44) 63.55 (284.42)
1,118.05 (216.51) (986.49) (84.96)
997.42 (195.90) (521.20) 280.31
187.00
295.59
164.89
449.30
534.26
May 14, 2014 • PAGE 26
Quarterly Cash Flow All amounts in millions of US Dollars except per share amounts.
Quarter Ending Cash and Cash Equivalents at the Beginning of Year Net Cash Provided in Operating Activities Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities Net Increase/Decrease in Cash and Cash Equivalents Cash and Cash Equivalents at the End of Year
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Mar 2014
Dec 2013
Sep 2013
Jun 2013
Mar 2013
187.00
158.28
148.34
133.60
295.59
84.00 (636.00) 509.00 (43.00)
652.00 328.00 (1,106.00) (126.00)
441.65 433.64 (1,029.83) (154.54)
255.32 (19.36) (400.44) (164.48)
47.24 (140.13) (59.70) (152.59)
144.00
187.00
158.28
148.34
133.60
May 14, 2014 • PAGE 27
Earning Estimates Current Quarter
Next Quarter
Current Year
Next Year
Jun 14
Sep 14
Jun 14
Jun 14
$1.05 15 $1.08 $1.02 $1.06 (0.50%)
$1.07 14 $1.13 $1.04 $1.02 4.90%
$4.03 16 $4.10 $3.94 $4.00 0.63%
$4.35 15 $4.57 $4.17 -8.17% Moderate Sell
Average Estimate Number of Analysts High Estimate Low Estimate Year ago EPS Growth Rate Consensus Recommendation
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May 14, 2014 • PAGE 28
Financial Market Data Current Information Last Close (09-May-2014) 52-Week High 52-Week Low 60-Month Beta Market Cap Shares Outstanding Dividend Rate Dividend Yield # of Institutional Holders Latest Short Interest Ratio
$57.18 $64.10 $50.46 0.64 $8,261.65M 144.49M 1.32 2.15% 844 7.66
Price/Sales Ratio Price/Book Ratio Price/Earnings Ratio Price/Cash Flow Ratio Return on Assets Return on Equity Current Ratio Long-Term Debt/Equity % Owned by Institutions Latest Net Insider Transactions
1.20 2.07 10.66 12.41 8.67% 19.95% 1.25 0.84 --
Growth
12 Month
36 Month
60 Month
Revenue Growth EPS Growth Dividend Growth
(3.20%) 35.46% 194.12%
(1.02%) 9.36% 55.36%
(0.29%) 10.45% 30.26%
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May 14, 2014 • PAGE 29
Historical Financials Income Statement Year
Revenue ($ M)
Net Income ($ M)
Net Profit Margin
Employees
Dec 2013 Dec 2012 Dec 2011 Dec 2010 Dec 2009 Dec 2008 Dec 2007 Dec 2006 Dec 2005 Dec 2004
7,146.00 7,382.56 7,510.49 7,368.93 7,455.24 7,249.45 6,704.91 6,268.66 5,503.71 5,126.60
849.00 555.72 470.57 720.89 729.11 581.49 339.94 586.42 546.28 499.20
11.88% 7.53% 6.27% 9.78% 9.78% 8.02% 5.07% 9.35% 9.93% 9.74%
41,000 41,000 42,000 42,000 43,000 42,800 43,500 41,000 41,500 38,600
2013 Year-End Financials Debt Ratio Return on Equity Cash ($ M) Current Ratio Long-Term Debt ($ M) Shares Outstanding (M) Dividend Yield Dividend Payout Market Cap ($ M)
79.03% 19.95% 187.00 1.22 3,120.00 144.00 2.15% 0.27 7,709.76
Stock History Year
FY High
Dec 2013 Dec 2012 Dec 2011 Dec 2010 Dec 2009 Dec 2008 Dec 2007 Dec 2006 Dec 2005 Dec 2004
64.10 64.87 61.21 61.72 62.83 59.95 58.63 64.69 54.80 48.41
Stock Price ($) FY Low 52.50 53.25 45.13 40.80 42.36 38.66 47.98 48.59 44.51 35.94
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FY Close
High
P/E Low
53.54 58.27 58.06 53.97 60.38 51.91 52.90 53.00 51.48 47.78
11.57 18.75 20.96 15.24 16.24 20.19 33.70 22.00 20.60 20.64
9.48 15.39 15.45 10.07 10.95 13.02 27.57 16.53 16.73 15.32
Per Share ($) Earns. Div.
Book Value
5.54 3.46 2.92 4.05 3.87 2.97 1.74 2.94 2.66 2.35
27.42 26.29 23.46 23.63 21.77 18.43 17.12 15.48 13.67 11.31
1.50 0.51 0.47 0.40 0.40 0.40 0.50 0.39 0.27 0.30
May 14, 2014 • PAGE 30
Competitors List Company Alere Arup Laboratories Bio-Reference Labs (Top Competitor) Genomic Health LabCorp (Top Competitor) Medtox Scientific Oncolab Pathology Associates Medical Laboratories Psychemedics Solstas Sonic Healthcare (Top Competitor)
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Gross Revenue
Net Profit Margin
Net Operating Cash Flow
$3,029.44M $155.10M $715.35M $261.60M $5,808.30M $46.90M $0.50M $110.30M
(3.70%) -5.46% (7.28%) 9.31% 4.37% ---
$244.78M -$17.66M $8.55M $818.70M ----
$26.87M $67.60M $3,141.00M
13.61% -9.88%
$5.95M -$419.62M
May 14, 2014 • PAGE 31
Competitive Landscape Companies listed are Top Competitors. Key Numbers
Annual Sales ($ M) Employees Market Cap ($ M) Profitability
Gross Profit Margin Pre-Tax Profit Net Profit Margin Return on Equity Return on Assets Return on Invested Capital
Valuation
Price/Sales Ratio Price/Earnings Ratio Price/Book Ratio Price/Cash Flow Operations
Days of Sales Outstanding Inventory Turnover Days Cost of Goods Sold in Inventory Asset Turnover Net Receivables Turnover Flow Effective Tax Rate
Quest Diagnostics Incorporated
Laboratory Corporation of America $5,808.30M 34,000 $7,830.41M
Bio-Reference Laboratories, Inc.
Sonic Healthcare Limited
$715.35M 4,427 $897.21M
$3,141.00M $5,371.95M
Laboratory Corporation of America 37.39% 14.87% 9.31% 20.44% 7.96% 11.33%
Bio-Reference Laboratories, Inc.
Sonic Healthcare Limited
Industry
Market
44.03% 9.65% 5.46% 15.69% 10.56% 14.07%
84.87% 13.01% 9.88% 13.19% 6.92% 8.94%
43.15% 10.56% 8.07% 11.46% 5.36% 11.15%
33.48% 10.64% 7.25% 11.68% 2.11% 7.33%
Laboratory Corporation of America 1.55 16.67 3.40 11.79
Bio-Reference Laboratories, Inc.
Sonic Healthcare Limited
Industry
Market
0.95 17.45 2.54 96.15
1.96 19.80 2.35 15.02
2.30 27.86 2.93 -2.20
1.45 20.28 2.24 243.90
Bio-Reference Laboratories, Inc.
Sonic Healthcare Limited
Industry
Market
49.0
Laboratory Corporation of America 50.9
94.1
49.1
58.6
--
45.9 8.0
28.0 13.0
21.7 16.8
9.4 38.6
5.9 61.6
7.3 --
0.8 7.4
0.9 7.2
1.9 3.9
0.7 7.4
0.7 6.2
0.3 5.7
37.08%
37.20%
43.48%
23.32%
33.78%
28.53%
$7,146.00M 41,000 $7,709.76M Quest Diagnostics Incorporated 38.99% 18.68% 11.50% 19.95% 8.67% 11.82%
Quest Diagnostics Incorporated 1.20 10.66 2.07 12.41 Quest Diagnostics Incorporated
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May 14, 2014 • PAGE 32
Financial
Quest Diagnostics Incorporated
Current Ratio Quick Ratio Leverage Ratio Total Debt/ Equity Interest Coverage
Per Share Data
1.22 0.92 2.27 0.84 9.24
Quest Diagnostics Incorporated
Per Share Data Dividend Per Share Cash Flow Per Share Working Capital Per Share Long-Term Debt Per Share Book Value Per Share Total Assets Per Share Growth
$47.53 $1.23 $4.61 $1.74 $21.59 $27.63 $61.93
Quest Diagnostics Incorporated
12-Month Revenue (3.20%) 12-Month Net Income 52.77% 12-Month EPS Growth 35.46% 12-Month Dividend Growth 194.12% 36-Month Revenue Growth (1.02%) 36-Month Net Income Growth 5.60% 36-Month EPS Growth 9.36% 36-Month Dividend Growth 55.36%
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Laboratory Corporation of America 1.95 1.62 2.80 1.20 9.82
Bio-Reference Laboratories, Inc.
Sonic Healthcare Limited
Industry
Market
2.20 1.68 1.55 0.17 38.06
0.83 0.74 1.91 0.68 8.46
2.42 1.84 2.14 0.65 5.66
1.47 1.00 5.60 0.93 5.81
Laboratory Corporation of America $64.55 $0.00 $8.49 $8.21 $34.07 $29.50 $82.15
Bio-Reference Laboratories, Inc.
Sonic Healthcare Limited
Industry
Market
$26.42 -$0.26 $5.81 $0.52 $9.92 $15.21
$8.00 $0.51 $1.04 ($0.38) $3.14 $6.66 $12.05
$5.10 --$6.00 $0.01 $13.97 $29.31
$2.04 --$2.07 $0.02 $15.65 $48.27
Laboratory Corporation of America 2.41% (1.59%) 4.41% -5.09% 0.92% 5.68% --
Bio-Reference Laboratories, Inc.
Sonic Healthcare Limited
Industry
Market
8.11% 8.70% 8.97% -16.02% 20.21% 20.48% --
4.01% 6.01% 4.46% 7.14% 5.31% 4.54% 3.97% 1.80%
1.88% 6.35% --8.78% 21.97% ---
(1.23%) 12.38% --5.15% 3.37% ---
May 14, 2014 • PAGE 33