Quest Diagnostics 2006 Annual Report Download - page 67

SELECTED HISTORICAL FINANCIAL DATA OF OUR COMPANY
The following table summarizes selected historical financial data of our Company and our subsidiaries at the
dates and for each of the periods presented. We derived the selected historical financial data for the years 2002
through 2006 from the audited consolidated financial statements of our Company. In September 2004, the
Emerging Issues Task Force reached a final consensus on Issue 04-8, “The Effect of Contingently Convertible
Instruments on Diluted Earnings per Share”, or Issue 04-8, effective December 31, 2004. Pursuant to Issue 04-8,
we included the dilutive effect of our 1
3
⁄ 4 % contingent convertible debentures issued November 26, 2001 in our
dilutive earnings per common share calculations using the if-converted method, regardless of whether or not the
holders of these securities were permitted to exercise their conversion rights, and retroactively restated previously
reported diluted earnings per common share. Effective January 1, 2006, the Company adopted Statement of
Financial Accounting Standards, or SFAS, No. 123, revised 2004, “Share-Based Payment”, (“SFAS 123R”) using
the modified prospective approach and therefore has not restated results for prior periods. Under this approach,
awards that are granted, modified or settled after January 1, 2006 will be measured and accounted for in
accordance with SFAS 123R. Unvested awards that were granted prior to January 1, 2006 will continue to be
accounted for in accordance SFAS No. 123, “Accounting for Stock-Based Compensation”, as amended by
SFAS 148, “Accounting for Stock-Based Compensation – Transition and Disclosure – an amendment to SFAS
No. 123”, except that compensation cost will be recognized in the Company’s results of operations. During the
third quarter of 2006, the Company completed its wind down of NID, a test kit manufacturing subsidiary, and
classified the operations of NID as discontinued operations. The selected historical financial data presented below
has been restated to report the results of NID as discontinued operations for all periods presented. The selected
historical financial data is only a summary and should be read together with the audited consolidated financial
statements and related notes of our Company and management’s discussion and analysis of financial condition
and results of operations included elsewhere in this Annual Report on Form 10-K.
2006(a) 2005(f) 2004 2003(g) 2002(h)
Year Ended December 31,
(in thousands, except per share data)
Operations Data:
Net revenues.............................. $6,268,659 $ 5,456,726 $5,066,986 $4,686,030 $4,065,426
Operating income ......................... 1,128,077 (b),(d) 1,007,548 (i) 880,854 (k) 784,691 584,316
Income from continuing operations. . . ...... 625,692 (c) 573,196 (l) 492,415 (m) 429,173 317,445
(Loss)/income from discontinued operations (39,271)(e) (26,919)(j) 6,780 7,544 4,708
Net income ............................... 586,421 546,277 499,195 436,717 322,154
Earnings per common share – basic: (n)
Income from continuing operations. . . ...... $ 3.18 $ 2.84 $ 2.42 $ 2.07 $ 1.65
(Loss)/income from discontinued operations (0.20) (0.13) 0.03 0.04 0.02
Net income ............................... $ 2.98 $ 2.71 $ 2.45 $ 2.11 $ 1.67
Earnings per common share – diluted: (n)(o)
Income from continuing operations. . . ...... $ 3.14 $ 2.79 $ 2.32 $ 1.99 $ 1.57
(Loss)/income from discontinued
operations .............................. (0.20) (0.13) 0.03 0.03 0.02
Net income ............................... $ 2.94 $ 2.66 $ 2.35 $ 2.02 $ 1.59
Dividends per common share (n)........... $ 0.40 $ 0.36 $ 0.30 $ 0.075 $ -
Balance Sheet Data (at end of year):
Cash and cash equivalents . ................ $ 149,640 $ 92,130 $ 73,302 $ 154,958 $ 96,777
Accounts receivable, net . . . ................ 774,414 732,907 649,281 609,187 522,131
Goodwill, net ............................. 3,391,046 3,197,227 2,506,950 2,518,875 1,788,850
Total assets ............................... 5,661,482 5,306,115 4,203,788 4,301,418 3,324,197
Long-term debt . . ......................... 1,239,105 1,255,386 724,021 1,028,707 796,507
Total debt ................................ 1,555,979 1,592,225 1,098,822 1,102,657 822,539
Total stockholders’ equity . ................ 3,019,171 2,762,984 2,288,651 2,394,694 1,768,863
Other Data:
Net cash provided by operating activities . . . $ 951,896 $ 851,583 $ 798,780 $ 662,799 $ 596,371
Net cash used in investing activities. . ...... (414,402) (1,079,793) (173,700) (417,050) (477,212)
Net cash provided by (used in) financing
activities ............................... (479,984) 247,038 (706,736) (187,568) (144,714)
Provision for doubtful accounts ............ 243,443 233,628 226,310 228,222 217,360
Rent expense ............................. 153,185 139,660 132,883 120,748 96,547
Capital expenditures ....................... 193,422 224,270 176,125 174,641 155,196
Depreciation and amortization ............. 197,398 176,124 168,726 153,903 131,391
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