MADISON, N.J., April 18, 2012 /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE: DGX), the world's leading provider of diagnostic testing, information and services, announced today that for the first quarter ended March 31, 2012, adjusted income from continuing operations was $171 million, or $1.07 per diluted share, compared to $164 million, or $1.00 per diluted share, in 2011.
For the first quarter of 2012, reported income from continuing operations was $159 million, or $0.99 per diluted share, compared to a loss of $53 million, or $0.33 per diluted share, in 2011. Income from continuing operations in the first quarter of 2012 was reduced by $0.05 per diluted share related to restructuring and integration activities, and $0.03 per diluted share related to CEO succession costs. In the first quarter of 2011, income from continuing operations was reduced by $1.33 per diluted share related to the Medi-Cal charge and other special items.
Revenues increased 6.3% to $1.9 billion for the first quarter. Clinical testing revenues increased 6.4%, with revenue per requisition up 2.9% and volume, measured by the number of requisitions, up 3.4%. The extreme weather in last year's first quarter contrasted with the unseasonably mild weather this year is estimated to have benefited the year-over-year revenue and volume comparisons by approximately 2%. The acquisitions of Athena, Celera and SED contributed 3.2% to consolidated revenue growth and 2.8% to clinical testing revenue growth.
For the first quarter of 2012, adjusted operating income was $320 million, or 16.5% of revenues, compared to $301 million, or 16.3% of revenues, for 2011. Reported operating income was $300 million, or 15.5% of revenues, compared to $31 million, or 1.7% of revenues, in 2011. Cash flow from operations was $161 million, unchanged from 2011. During the first quarter of 2012, the company repurchased $50 million of its common shares.
"Quest Diagnostics had a very solid first quarter. Our 6.3% increase in revenues was driven by both organic growth and acquisitions, and we generated a 7% increase in earnings per share," said Surya N. Mohapatra, Ph.D., Chairman and CEO. "We saw strong growth in esoteric and advanced gene-based testing as a result of our focus on cancer, cardiovascular disease, infectious disease and neurological disorders. In addition, we saw improved growth in routine testing. We are also making good progress in our previously announced $500 million cost reduction initiative, aimed at improving operational efficiency."
Outlook for Full-Year 2012
For 2012, the company estimates results from continuing operations, before special items, as follows:
- Revenues to grow between 2% and 2.5%;
- Earnings per diluted share to be between $4.45 and $4.60;
- Operating income as a percentage of revenues to approximate 18%;
- Cash from operations to approximate $1.2 billion; and
- Capital expenditures to be between $200 million and $225 million.
Note on Non-GAAP Financial Measures
As used in this press release, the term adjusted refers to the operating performance measures that exclude the Medi-Cal charge, restructuring and integration charges, transaction costs related to acquisitions, CEO succession costs and the estimated impact of severe weather. Adjusted measures are presented because management believes those measures are useful adjuncts to reported results under accounting principles generally accepted in the United States. Adjusted measures should not be considered as an alternative to the corresponding measures determined under accounting principles generally accepted in the United States.
Conference Call Information
Quest Diagnostics will hold its first quarter conference call on April 18, 2012 at 8:30 a.m. Eastern Time. The public may access the conference call through a live audio webcast available on Quest Diagnostics' Investor Relations internet site at www.QuestDiagnostics.com/investor. The conference call can also be accessed in listen-only mode by dialing 415-228-4961, passcode 3214469. The company suggests participants dial in approximately 10 minutes before the call. Registered analysts may access the call at: www.streetevents.com. In addition, a replay of the call may be accessed online at www.QuestDiagnostics.com/investor or by phone at 888-673-3567 for domestic callers, or 402-220-6430 for international callers. No access code will be required. Telephone replays will be available from 10:30 a.m. Eastern Time on April 18 until midnight Eastern Time on May 18, 2012.
About Quest Diagnostics
Quest Diagnostics is the world's leading provider of diagnostic testing, information and services that patients and doctors need to make better healthcare decisions. The company offers the broadest access to diagnostic testing services through its network of laboratories and patient service centers, and provides interpretive consultation through its extensive medical and scientific staff. Quest Diagnostics is a pioneer in developing innovative new diagnostic tests and advanced healthcare information technology solutions that help improve patient care. Additional company information is available at QuestDiagnostics.com.
