Quest Diagnostics 2003 Annual Report Download - page 6

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4
We have taken several actions to accelerate the company’s internally driven growth, including
expanding our sales force and providing enhanced training and tools, and taking Six Sigma quality
processes to the next level to drive greater customer satisfaction. As the year ended, we saw initial
encouraging signs that these actions are producing results.
We generated $663 million in cash flow from operations during the year. We put cash to work
through continuing capital investments in facilities and information technology and the acquisition of
Unilab. We began to aggressively repurchase shares, approximately $260 million of the $600 million
authorized in 2003. Additionally, as a sign of confidence in our ongoing ability to generate strong cash
flows, we declared our first quarterly dividend, 15 cents a share, which was paid in January of this year.
The company achieved another important milestone during 2003, as we implemented a CEO
succession plan to ensure a smooth and orderly transition in senior leadership.
OUR VALUE PROPOSITION
We are creating a culture that puts patients first. The people of Quest Diagnostics offer a unique value
proposition based on four strategic pillars, which are described in the pages that follow:
• Six Sigma Quality
Pursuing perfection in all that we do through rigorous process improvement using
Six Sigma quality methodologies.
• Access and Convenience
Offering the broadest access to convenient laboratory services to physicians and their patients.
• Innovative Science and Medicine
Introducing new diagnostic tests and services that improve health.
• Advanced Information Technology
Providing information technology solutions that enable more effective and efficient patient
encounters with the healthcare system.
We are excited about long-term prospects for the industry and our company. The population
continues to grow and age, yielding more patients who will progressively require more diagnostic
tests when they visit the doctor. The rapid development of genomics and proteomics, innovative
testing platforms, and the application of new information technologies will enable us to continue to
offer new tests and Internet solutions that help physicians help patients.
Quest Diagnostics’ unique value proposition for customers enables us to maintain our commitment to
pricing discipline. Healthcare payers recognize the value we provide and the investments we continue
to make to enhance it.