Quest Diagnostics 2005 Annual Report Download - page 114

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
(in thousands, except per share data)
Quarterly Operating Results (unaudited)
First Second Third Fourth
Quarter Quarter Quarter Quarter Total Year
2005 (a)
Net revenues .......................... $1,319,485 $1,377,529 $1,371,821 $1,434,876 $5,503,711
Gross profit ........................... 539,403 578,851 564,801 563,321 2,246,376
Net income ............................ 131,611 149,089 135,248 (b) 130,329 (c) 546,277
Basic earnings per common share ....... 0.65 (d) 0.74 0.67 0.65 2.71
Diluted earnings per common share ..... 0.64 (d) 0.72 0.66 0.64 2.66
First Second Third Fourth
Quarter Quarter Quarter Quarter Total Year
2004
Net revenues .......................... $1,255,742 $1,297,674 $1,289,897 $1,283,288 $5,126,601
Gross profit ........................... 518,461 550,097 541,473 525,858 2,135,889
Net income ............................ 116,149 126,829 (e) 130,144 126,073 499,195
Basic earnings per common share (d) . . . 0.56 0.62 0.64 0.63 2.45
Diluted earnings per common share (d) .... 0.54 0.59 0.62 0.60 2.35
(a) On November 1, 2005, Quest Diagnostics completed the acquisition of LabOne. The quarterly operating
results include the results of operations of LabOne subsequent to the closing of the acquisition (see
Note 3).
(b) During the third quarter of 2005, the Company recorded a $6.2 million charge primarily related to
forgiveness of amounts owed by patients and physicians, and related property damage as a result of
hurricanes in the Gulf Coast. In addition, the Company recorded a $7.1 million charge associated with the
write-down of an investment.
(c) During the fourth quarter of 2005, the Company recorded a $16 million charge to write-off certain assets in
connection with a product hold at NID.
(d) Previously reported basic and diluted earnings per share have been restated to give retroactive effect of the
Company’s two-for-one stock split effected on June 20, 2005 (see Note 2).
(e) During the second quarter of 2004, the Company recorded a $10.3 million charge associated with the
acceleration of certain pension obligations in connection with the succession of the Company’s prior CEO
and a $2.9 million charge to interest expense, net representing the write-off of deferred financing costs
associated with the refinancing of the Company’s bank debt and credit facility.
F-37