QUEST DIAGNOSTICS INCORPORATED SECAUCUS, N.J., Oct. 19, 2017 /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE: DGX), the world's leading provider of diagnostic information services, announced today financial results for the third quarter ended September 30, 2017.
"We delivered another strong quarter of revenue growth in spite of weather challenges, completed two previously announced acquisitions, and agreed to purchase Shiel Medical Laboratory," said Steve Rusckowski, Chairman, President and CEO. "Yesterday we also announced a strategic relationship with Cleveland Clinic that includes the acquisition of Cleveland HeartLab. Our two-point strategy of accelerating growth and driving operational excellence is producing results. Our updated guidance for full year 2017 primarily reflects the impact of hurricanes in the third quarter which impacted geographies where we have a large presence as well as recently closed acquisitions."
In the third quarter the Centers for Medicare and Medicaid Services (CMS) published its draft Clinical Laboratory Fee Schedule for 2018 as mandated by the Protecting Access to Medicare Act (PAMA).
"We continue to urge CMS to delay the implementation of PAMA to take the time to get it right," said Mr. Rusckowski. "The preliminary rates that CMS released are not "market based" rates as Congress intended. Under the proposed fee schedule, less than 1% of all laboratories submitted data, and the vast majority of hospital and physician office laboratories were prohibited from reporting their rates, yet more than half of Medicare beneficiaries get their laboratory services in these settings. Instead of protecting access to essential laboratory testing, this flawed approach could greatly compromise Medicare beneficiaries' access to testing. Along with our trade association, we are exploring every option to ensure that Medicare beneficiaries have access to vital diagnostic information services."
Mr. Rusckowski continued, "In whatever form CMS might implement PAMA, we remain confident in our ability to meet the long-term commitments outlined at our 2016 Investor Day."
Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 Change 2017 2016 Change
---- ---- ------ ---- ---- ------
(dollars in millions, except per share data)
Reported:
---------
Net revenues (a) (c) $1,931 $1,885 2.4% $5,773 $5,654 2.1%
Diagnostic Information Services revenues $1,850 $1,800 2.8% $5,517 $5,365 2.8%
Revenue per requisition 1.2% 0.5%
Requisition volume 1.6% 2.3%
Operating income (b) (c) $298 $322 (7.4)% $896 $1,001 (10.5)%
Operating income as a percentage of net 15.5% 17.1% (160) bps 15.5% 17.7% (220) bps
revenues (c)
Net income attributable to Quest $161 $192 (16.0)% $518 $490 5.8%
Diagnostics (c) (d)
Diluted EPS (c) (d) $1.15 $1.34 (14.2)% $3.68 $3.42 7.6%
Cash provided by operations (e) $362 $301 20.5% $852 $765 11.5%
Capital expenditures $63 $61 2.5% $170 $165 2.7%
Adjusted:
---------
Revenues on an equivalent basis $1,931 $1,885 2.4% $5,773 $5,628 2.6%
Operating income (f) $325 $320 1.6% $965 $925 4.3%
Operating income as a percentage of net 16.8% 17.0% (20) bps 16.7% 16.4% 30 bps
revenues
Net income attributable to Quest $181 $182 (0.7)% $560 $509 10.1%
Diagnostics (d)
Diluted EPS excluding amortization (d) $1.39 $1.37 1.5% $4.27 $3.84 11.2%
(a) For the nine months ended September
30, 2016, net revenues include $26
million related to the Focus
Diagnostics products business,
which was sold on May 13, 2016.
(b) For the three months ended
September 30, 2016, reported
operating income includes a gain
on escrow recovery associated with
an acquisition. For the nine
months ended September 30, 2016,
reported operating income includes
a gain on escrow recovery
associated with an acquisition and
$129 million related to the Focus
Diagnostics products business and
the gain from sale on May 13,
2016.
(c) For further details impacting the
year-over-year comparisons
related to net revenues, operating
income, operating income as a
percentage of net revenues, net
income attributable to Quest
Diagnostics, and diluted EPS, see
note 2 of the financial tables
attached below.
(d) Excess tax benefit associated with
stock-based compensation
arrangements impacted income tax
expense and diluted EPS as
follows:
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(dollars in millions, except per share data)
Income tax
benefit $7 $3 $36 $7
Diluted EPS $0.04 $0.02 $0.25 $0.05
(e) For details impacting the year-
over-year comparisons related
to cash provided by operations,
see note 4 of the financial
tables attached below.
(f) For the nine months ended
September 30, 2016, adjusted
operating income includes $12
million related to the Focus
Diagnostics products business.
Updated Outlook for Full Year 2017
The company updates its full year 2017 outlook, primarily attributable to the impact of hurricanes in the third quarter, especially on the company's operations in Florida and Texas, states where the company has a large presence. The financial impact also includes the impact of disruptions related to Hurricane Maria in Puerto Rico, as well as recently closed acquisitions.
Current Outlook Previous Outlook
Low High Low High
--- ---- --- ----
Revenues Approximately $7.71 billion $7.69 billion $7.74 billion
Revenue increase on a reported basis Approximately 2.6% 2.3% 3.1%
Revenue increase on an equivalent basis (g) Approximately 3.0% 2.6% 3.4%
Reported diluted EPS $4.87 $4.92 $4.90 $5.00
Adjusted diluted EPS excluding amortization $5.62 $5.67 $5.62 5.72
Cash provided by operations Approximately $1.2 billion Approximately $1.2 billion
Capital expenditures $250 million $300 million $250 million $300 million
(g) Reported revenues for full year 2016 were $7.52
billion. Revenues on an equivalent basis for
full year 2016 were $7.49 billion which
represents the company's reported revenues,
excluding all Focus Diagnostics products
revenue.
Note on Non-GAAP Financial Measures
As used in this press release the term "reported" refers to measures under the accounting principles generally accepted in the United States ("GAAP"). The term "adjusted" refers to non-GAAP measures as follows: (i) for the purpose of income measures the term "adjusted" refers to operating performance measures that exclude special items such as the gain on sale of the Focus Diagnostics products business, the retirement of debt and related refinancing charges, restructuring and integration charges, and other items; (ii) the term "adjusted diluted EPS excluding amortization" represents the company's diluted EPS before the impact of special items and amortization; (iii) reference to "revenues on an equivalent basis" when comparing 2017 to 2016 represents 2016 reported revenues excluding all Focus Diagnostics products revenues.
Non-GAAP adjusted measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance. The additional tables attached below include reconciliations of adjusted measures to GAAP measures.
Conference Call Information
Quest Diagnostics will hold its quarterly conference call to discuss financial results beginning at 8:30 a.m. Eastern Time today. The conference call can be accessed in listen-only mode by dialing 773-756-0467, passcode 3214469. The company suggests participants dial in approximately 10 minutes before the call.
A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or by phone at 888-667-5784 for domestic callers or 402-220-6427 for international callers. Telephone replays will be available from approximately 10:30 a.m. Eastern Time on October 19, 2017 until midnight Eastern Time on November 2, 2017. Anyone listening to the call is encouraged to read the company's periodic reports, on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.
About Quest Diagnostics
Quest Diagnostics empowers people to take action to improve health outcomes. Derived from the world's largest database of clinical lab results, our diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve health care management. Quest annually serves one in three adult Americans and half the physicians and hospitals in the United States, and our 43,000 employees understand that, in the right hands and with the right context, our diagnostic insights can inspire actions that transform lives. www.QuestDiagnostics.com.
50th Anniversary: In 2017, Quest Diagnostics celebrates 50 years of life-changing results. To learn about our legacy of accomplishments and quest to improve healthcare in the future, visit www.QuestDiagnostics.com/50Years
The statements in this press release 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 estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, changes in government regulations, changing relationships with customers, payers, suppliers or strategic partners and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the "Business," "Risk Factors," "Cautionary Factors that May Affect Future Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of those reports.
This earnings release, including the attached financial tables, is available online in the Newsroom section at www.QuestDiagnostics.com.
ADDITIONAL TABLES FOLLOW
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2017 and 2016
(in millions, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
Net revenues $1,931 $1,885 $5,773 $5,654
Operating costs and expenses and other operating income:
Cost of services 1,190 1,157 3,525 3,456
Selling, general and administrative 423 409 1,297 1,281
Amortization of intangible assets 19 18 54 54
Gain on disposition of business - - - (118)
Other operating expense (income), net 1 (21) 1 (20)
--- --- --- ---
Total operating costs and expenses, net 1,633 1,563 4,877 4,653
----- ----- ----- -----
Operating income 298 322 896 1,001
Other income (expense):
Interest expense, net (38) (37) (112) (107)
Other (expense) income, net (2) 4 12 (50)
Total non-operating expenses, net (40) (33) (100) (157)
--- --- ---- ----
Income before income taxes and equity in earnings of equity method 258 289 796 844
investees
Income tax expense (92) (95) (264) (345)
Equity in earnings of equity method investees, net of taxes 9 11 25 30
--- --- --- ---
Net income 175 205 557 529
Less: Net income attributable to noncontrolling interests 14 13 39 39
Net income attributable to Quest Diagnostics $161 $192 $518 $490
---- ---- ---- ----
Earnings per share attributable to Quest Diagnostics' common
stockholders:
Basic $1.18 $1.37 $3.77 $3.46
----- ----- ----- -----
Diluted $1.15 $1.34 $3.68 $3.42
----- ----- ----- -----
Weighted average common shares outstanding:
Basic 137 139 137 141
Diluted 140 142 140 143
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Balance Sheets
September 30, 2017 and December 31, 2016
(in millions, except per share data)
(unaudited)
September 30, December 31,
2017 2016
---- ----
Assets
------
Current assets:
Cash and cash equivalents $350 $359
Accounts receivable, net 960 926
Inventories 100 82
Prepaid expenses and other current assets 134 164
Total current assets 1,544 1,531
Property, plant and equipment, net 1,097 1,029
Goodwill 6,164 6,000
Intangible assets, net 1,029 949
Investment in equity method investees 459 443
Other assets 146 148
Total assets $10,439 $10,100
------- -------
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Accounts payable and accrued expenses $1,047 $975
Current portion of long-term debt 5 6
Total current liabilities 1,052 981
Long-term debt 3,759 3,728
Other liabilities 722 654
Redeemable noncontrolling interest 78 77
Stockholders' equity:
Quest Diagnostics stockholders' equity:
Common stock, par value $0.01 per share; 600 shares authorized as of both September 30, 2017 2 2
and December 31, 2016; 216 shares issued as of both September 30, 2017 and December 31,
2016
Additional paid-in capital 2,585 2,545
Retained earnings 6,946 6,613
Accumulated other comprehensive loss (48) (72)
Treasury stock, at cost; 80 shares and 79 shares as of September 30, 2017 and December 31, (4,691) (4,460)
2016, respectively
Total Quest Diagnostics stockholders' equity 4,794 4,628
Noncontrolling interests 34 32
--- ---
Total stockholders' equity 4,828 4,660
Total liabilities and stockholders' equity $10,439 $10,100
------- -------
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2017 and 2016
(in millions)
(unaudited)
Nine Months Ended
September 30,
2017 2016
---- ----
Cash flows from operating activities:
Net income $557 $529
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 197 186
Provision for doubtful accounts 241 242
Deferred income tax provision 90 19
Stock-based compensation expense 54 52
Gain on disposition of business - (118)
Other, net (5) (15)
Changes in operating assets and liabilities:
Accounts receivable (265) (316)
Accounts payable and accrued expenses (3) 43
Income taxes payable - 74
Termination of interest rate swap agreements - 54
Other assets and liabilities, net (14) 15
Net cash provided by operating activities 852 765
--- ---
Cash flows from investing activities:
Business acquisitions, net of cash acquired (299) (139)
Proceeds from disposition of business 1 270
Escrow proceeds associated with disposition of business 25 -
Capital expenditures (170) (165)
Decrease (increase) in investments and other assets 4 (11)
Net cash used in investing activities (439) (45)
---- ---
Cash flows from financing activities:
Proceeds from borrowings - 1,869
Repayments of debt (5) (1,722)
Purchases of treasury stock (350) (440)
Exercise of stock options 125 63
Employee payroll tax withholdings on stock issued under stock-based compensation plans (23) (10)
Dividends paid (186) (168)
Distributions to noncontrolling interests (38) (31)
Other financing activities, net 55 (8)
Net cash used in financing activities (422) (447)
---- ----
Net change in cash and cash equivalents (9) 273
Cash and cash equivalents, beginning of period 359 133
--- ---
Cash and cash equivalents, end of period $350 $406
---- ----
Cash paid during the period for:
Interest $104 $116
Income taxes $177 $262
Notes to Financial Tables
1) The computation of basic and diluted earnings per common share is as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except per share data)
Amounts attributable to Quest Diagnostics' common stockholders:
Net income attributable to Quest Diagnostics $161 $192 $518 $490
Less: earnings allocated to participating securities 1 2 2 3
Earnings available to Quest Diagnostics' common stockholders - basic and $160 $190 $516 $487
diluted
Weighted average common shares outstanding - basic 137 139 137 141
Effect of dilutive securities:
Stock options and performance share units 3 3 3 2
Weighted average common shares outstanding - diluted 140 142 140 143
--- --- --- ---
Earnings per share attributable to Quest Diagnostics' common
stockholders:
Basic $1.18 $1.37 $3.77 $3.46
----- ----- ----- -----
Diluted $1.15 $1.34 $3.68 $3.42
----- ----- ----- -----
2) The following tables reconcile reported GAAP results to non-GAAP adjusted results:
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(dollars in millions, except per share data)
Adjusted operating income:
--------------------------
Operating income $298 $322 $896 $1,001
Gain on disposition of business (a) - - - (118)
Restructuring and integration charges (b) 23 18 63 55
Other (c) 4 (20) 6 (13)
--- --- --- ---
Adjusted operating income $325 $320 $965 $925
---- ---- ---- ----
Adjusted operating income as a percentage of
net revenues:
-------------
Operating income as a percentage of net revenues 15.5% 17.1% 15.5% 17.7%
Gain on disposition of business (a) - - - (2.1)
Restructuring and integration charges (b) 1.2 1.0 1.1 1.0
Other (c) 0.1 (1.1) 0.1 (0.2)
--- ---- --- ----
Adjusted operating income as a percentage of net revenues 16.8% 17.0% 16.7% 16.4%
---- ---- ---- ----
Adjusted net income:
--------------------
Net income attributable to Quest Diagnostics $161 $192 $518 $490
Gain on disposition of business (a) - - - (118)
Retirement of debt and related refinancing charges (d) - - - 48
Restructuring and integration charges (b) 23 18 64 58
Other (c) 9 (20) 4 (6)
Income tax (benefit) expense associated with the special (12) (8) (26) 37
items above (e)
Adjusted net income $181 $182 $560 $509
---- ---- ---- ----
Adjusted diluted EPS excluding amortization expense:
----------------------------------------------------
Diluted earnings per common share $1.15 $1.34 $3.68 $3.42
Gain on disposition of business (a) (e) - - - (0.24)
Retirement of debt and related refinancing charges (d) (e) - - - 0.21
Restructuring and integration charges (b) (e) 0.10 0.08 0.28 0.25
Other (c) (e) 0.04 (0.15) 0.02 (0.09)
Amortization expense (f) 0.10 0.10 0.29 0.29
---- ---- ---- ----
Adjusted diluted EPS excluding amortization expense $1.39 $1.37 $4.27 $3.84
----- ----- ----- -----
Revenue on an equivalent basis:
-------------------------------
Net revenues $1,931 $1,885 $5,773 $5,654
Excluded revenue (g) - - - (26)
--- --- --- ---
Revenue on an equivalent basis $1,931 $1,885 $5,773 $5,628
------ ------ ------ ------
(a) For the nine months ended September
30, 2016, represents the pre-tax
gain on the sale of our Focus
Diagnostics products business to
DiaSorin S.p.A.
(b) For the three and nine months ended
September 30, 2017 and 2016,
represents costs primarily
associated with systems
conversions and integration
incurred in connection with
further restructuring and
integrating our business. The
following table summarizes the
pre-tax impact of restructuring
and integration charges on the
company's consolidated statements
of operations:
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(dollars in millions)
Cost of services $12 $8 $31 $25
Selling, general and administrative 11 10 32 30
--- --- --- ---
Operating income $23 $18 $63 $55
--- --- --- ---
Equity in earnings of equity method investees, net of taxes $ - $ - $1 $3
--- --- --- --- --- ---
(c) For the three months ended
September 30, 2017, primarily
represents non-cash asset
impairment charges and
incremental costs incurred as a
result of the hurricanes. For
the nine months ended September
30, 2017, primarily represents
non-cash asset impairment
charges, incremental costs
incurred as a result of
hurricanes and costs incurred
related to certain legal
matters, partially offset by
gain on the sale of an interest
in an equity method investee.
For the three months ended
September 30, 2016, primarily
represents a gain on escrow
recovery associated with an
acquisition. For the nine
months ended September 30, 2016,
primarily represents a gain on
escrow recovery associated with
an acquisition, partially offset
by costs associated with winding
down subsidiaries, non-cash
asset impairment charges and
costs incurred related to
certain legal matters. The
following table summarizes the
pre-tax impact of these other
items on the company's
consolidated statements of
operations:
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(dollars in millions)
Cost of services $3 $ - $3 $ -
Selling, general and administrative 1 - 3 6
Other operating expense (income), net - (20) - (19)
--- --- --- ---
Operating income $4 $(20) $6 $(13)
--- ---- --- ----
Other (expense) income, net $5 $ - $(2) $7
--- --- --- --- ---
(d) For the nine months ended
September 30, 2016, represents
charges associated with the March
2016 cash tender offer where the
company purchased $200 million of
its 6.95% Senior Notes due July
2037 and 5.75% Senior Notes due
January 2040. The pre-tax
charges associated with the
retirement of debt and related
refinancing charges are recorded
in other (expense) income, net on
the company's consolidated
statements of operations.
(e) For gain on disposition of
business, income tax expense
resulted in a combined tax rate
of 71.4%, which was significantly
in excess of the statutory rate
primarily due to a lower tax
basis in the assets sold,
specifically the goodwill
associated with the disposition.
For the retirement of debt and
related refinancing charges,
restructuring and integration
charges and other items, income
tax impacts, where recorded, were
calculated using combined tax
rates of 38.7% and 38.9% for 2017
and 2016, respectively. The
following table summarizes the
income tax (benefit) expense
associated with the special
items:
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(dollars in millions)
Gain on disposition of business $ - $ - $ - $84
Retirement of debt and related refinancing charges - - - (18)
Restructuring and integration charges (9) (8) (25) (23)
Other (3) - (1) (6)
--- --- --- ---
$(12) $(8) $(26) $37
---- --- ---- ---
(f) Represents the impact of
amortization expense on diluted
earnings per common share, net
of the income tax benefit. The
income tax benefit was primarily
calculated using combined tax
rates of 38.7% and 38.9% for
2017 and 2016, respectively.
The pre-tax amortization
expense that is excluded from
the calculation of adjusted
diluted EPS excluding
amortization expense is recorded
in the company's statements of
operations as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(dollars in millions)
Amortization of intangible assets $19 $18 $54 $54
Equity in earnings of equity method investees, net of taxes 4 4 12 12
--- --- --- ---
$23 $22 $66 $66
--- --- --- ---
(g) For the nine months ended
September 30, 2016, excluded
revenue represents reported
revenues from the Focus
Diagnostics products
business, which was sold on
May 13, 2016.
3) For the three months ended September 30, 2017, the company repurchased 0.6 million shares of its
common stock for $65 million. For the nine months ended September 30, 2017, the company
repurchased 3.6 million shares of its common stock for $365 million, which includes an accrual of
$15 million recorded in accounts payable and accrued expenses in the consolidated balance sheet
for share repurchases not settled. At September 30, 2017, $1.0 billion remained available under
the company's share repurchase authorizations.
4) For the nine months ended September 30, 2016, net cash provided by operations included a $68
million tax payment related to the sale of our Focus Diagnostics products business, and $47
million of pre-tax cash charges related to the retirement of debt in connection with the March
2016 cash tender offer, partially offset by $54 million of proceeds from the termination of
interest swap agreements. For the nine months ended September 30, 2017, net cash provided by
operations benefited from a decrease in 2017 tax payments associated with the realization of a
deferred tax benefit and improved operating performance.
5) The outlook for adjusted diluted EPS excluding amortization expense represents management's
estimates for the full year 2017 before the impact of special items and amortization expense.
Further impacts to earnings related to special items may be incurred throughout the remainder of
the year. The following table reconciles our 2017 outlook for adjusted diluted EPS excluding
amortization expense to the corresponding amounts determined under GAAP:
Low High
--- ----
Adjusted diluted EPS excluding amortization expense:
----------------------------------------------------
Diluted earnings per common share $4.87 $4.92
Restructuring and integration charges (a) 0.34 0.34
Amortization expense (b) 0.39 0.39
Other 0.02 0.02
---- ----
Adjusted diluted EPS excluding amortization expense $5.62 $5.67
----- -----
(a) Represents estimated full year
pre-tax charges of $80 million
primarily associated with
systems conversions and
integration costs incurred in
connection with further
restructuring and integrating
our business. Income tax
benefits were calculated using
a combined tax rate of 38.7%.
(b) Represents the full year impact
of amortization expense on the
calculation of adjusted diluted
EPS excluding amortization
expense. Amortization expense
used in the calculation is as
follows (dollars in millions):
Amortization of intangible assets $73
Amortization expense included in equity in earnings of equity 16
method investees
Total pre-tax amortization expense $89
---
Total amortization expense, net of an estimated tax benefit $55
---
6) The outlook for 3.0% revenue growth
on an equivalent basis in 2017
represents management's estimates
for 2017 versus reported 2016
revenues adjusted to exclude the
2016 revenues from the Focus
Diagnostics products business. The
company completed its exit from the
products business as a result of
the sale of Focus Diagnostics
products on May 13, 2016.
Consequently, our 2017 revenues
will not include revenues
associated with that business. The
following tables reconcile our 2016
net revenues determined under GAAP
with equivalent revenue for 2016
and provide our 2017 revenue
outlook:
Three Months Ended Year Ended
----------
March 31, June 30, September 30, December 31, December 31,
2016 2016 2016 2016 2016
---- ---- ---- ---- ----
(dollars in millions)
2016 Revenue on an equivalent basis:
------------------------------------
Net revenues $1,863 $1,906 $1,885 $1,861 $7,515
Excluded revenue (a) (18) (8) - - (26)
--- --- --- --- ---
2016 Revenue on an equivalent basis $1,845 $1,898 $1,885 $1,861 $7,489
------ ------ ------ ------ ------
2017 Revenue outlook:
---------------------
2016 Revenue on an equivalent basis $7,489
2017 Equivalent revenue growth 3.0%
---
2017 Revenue outlook $7,710
------
(a) The 2016 excluded revenue is
comprised of all of Focus
Diagnostics products revenues
reported in 2016.
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SOURCE Quest Diagnostics
