DGX FY 2007 Earnings Report — Quest Diagnostics Incorporated Revenue & Financial Results | Market Cap Arena

Quest Diagnostics IncorporatedDGX

FY 2007 Earnings

Reported February 22, 2008

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2007	Prior Q	FY 2006	QoQ Change	YoY Change
Revenue	$6.7B	—	$6.3B	—	7.0%
Op. Income	$1.1B	—	$1.1B	—	-3.3%
Gross Margin	40.8%	—	41.0%	—	-0.2pp
Net Margin	5.1%	—	9.4%	—	-4.3pp
EPS (Diluted)	$1.74	—	$2.94	—	-40.8%
Free Cash Flow	$708M	—	$758M	—	-6.7%

Revenue Flow

Item	Amount
REVENUE	$6.7B
Cost of Revenue	$4.0B
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.6B
SG&A Expenses	$1.6B
Other Expenses	$31M
Operating Expenses	$1.6B
Cost & Expenses	$5.6B
OPERATING INCOME	$1.1B
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	-$179M
INCOME BEFORE TAX	$912M
Income Tax Expense	$359M
Net Income from Continuing Ops	$554M
Net Income from Discontinued Ops	$0
Other Adjustments	-$187M
NET INCOME	$340M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$340M
D&A	$238M
EBIT	$1.1B
EBITDA	$1.3B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$6.7B
Cost of Revenue	$4.0B
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.6B
SG&A Expenses	$1.6B
Other Expenses	$31M
Operating Expenses	$1.6B
Cost & Expenses	$5.6B
OPERATING INCOME	$1.1B
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	-$179M
INCOME BEFORE TAX	$912M
Income Tax Expense	$359M
Net Income from Continuing Ops	$554M
Net Income from Discontinued Ops	$0
Other Adjustments	-$187M
NET INCOME	$340M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$340M
D&A	$238M
EBIT	$1.1B
EBITDA	$1.3B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$340M
Depreciation & Amortization	$238M
Stock-Based Compensation	$0
Deferred Income Tax	-$2M
Other Non-Cash Items	$582M
Change in Working Capital	-$266M
OPERATING CASH FLOW	$927M
Capital Expenditure	-$219M
Acquisitions (Net)	-$1.5B
Purchases of Investments	-$4M
Sales/Maturities of Investments	$13M
Other Investing Activities	-$13M
NET CASH FROM INVESTING	-$1.8B
Net Debt Issuance	$1.0B
Common Stock Repurchased	-$146M
Common Dividends Paid	-$77M
Other Financing Activities	-$36M
NET CASH FROM FINANCING	$850M
FREE CASH FLOW	$708M
Net Change in Cash	$18M

Balance Sheet

Item	Amount
Cash & Equivalents	$168M
Short-Term Investments	$0
Net Receivables	$882M
Inventory	$95M
Other Current Assets	$150M
TOTAL CURRENT ASSETS	$1.4B
PP&E (Net)	$912M
Goodwill	$5.2B
Intangible Assets	$887M
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$172M
TOTAL NON-CURRENT ASSETS	$7.2B
TOTAL ASSETS	$8.6B
Account Payables	$205M
Short-Term Debt	$164M
Deferred Revenue	$0
Other Current Liabilities	$601M
TOTAL CURRENT LIABILITIES	$1.3B
Long-Term Debt	$3.4B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$576M
TOTAL NON-CURRENT LIABILITIES	$4.0B
TOTAL LIABILITIES	$5.2B
Common Stock	$2M
Additional Paid-In Capital	$2.2B
Retained Earnings	$2.1B
Treasury Stock	-$972M
Accum. Other Comp. Income	$25M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.3B
Minority Interest	$0
TOTAL EQUITY	$3.3B
TOTAL LIABILITIES & EQUITY	$8.6B
Total Debt	$3.5B
Net Debt	$3.4B