Quest Diagnostics 2007 Annual Report Download - page 50

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 2003
through 2007 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” (“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.
2007(a) 2006(b) 2005(c) 2004 2003(d)
Year Ended December 31,
(in thousands, except per share data)
Operations Data:
Net revenues .................................. $ 6,704,907 $6,268,659 $ 5,456,726 $5,066,986 $4,686,030
Operating income . . . .......................... 1,091,336 (e) 1,128,077 (f) 1,007,548 (g) 880,854 (h) 784,691
Income from continuing operations ............. 553,828 625,692 (i) 573,196 (j) 492,415 (k) 429,173
(Loss)/income from discontinued operations..... (213,889)(l) (39,271)(m) (26,919)(n) 6,780 7,544
Net income ................................... 339,939 586,421 546,277 499,195 436,717
Earnings per common share – basic: (o)
Income from continuing operations ............. $ 2.87 $ 3.18 $ 2.84 $ 2.42 $ 2.07
(Loss)/income from discontinued operations..... (1.11) (0.20) (0.13) 0.03 0.04
Net income ................................... $ 1.76 $ 2.98 $ 2.71 $ 2.45 $ 2.11
Earnings per common share – diluted: (o) (p)
Income from continuing operations ............. $ 2.84 $ 3.14 $ 2.79 $ 2.32 $ 1.99
(Loss)/income from discontinued operations..... (1.10) (0.20) (0.13) 0.03 0.03
Net income ................................... $ 1.74 $ 2.94 $ 2.66 $ 2.35 $ 2.02
Dividends per common share (o) ............... $ 0.40 $ 0.40 $ 0.36 $ 0.30 $ 0.075
Balance Sheet Data (at end of year):
Cash and cash equivalents ..................... $ 167,594 $ 149,640 $ 92,130 $ 73,302 $ 154,958
Accounts receivable, net ....................... 881,967 774,414 732,907 649,281 609,187
Goodwill, net ................................. 5,220,104 3,391,046 3,197,227 2,506,950 2,518,875
Total assets ................................... 8,565,693 5,661,482 5,306,115 4,203,788 4,301,418
Long-term debt................................ 3,377,212 1,239,105 1,255,386 724,021 1,028,707
Total debt. .................................... 3,540,793 1,555,979 1,592,225 1,098,822 1,102,657
Total stockholders’ equity...................... 3,324,242 3,019,171 2,762,984 2,288,651 2,394,694
Other Data:
Net cash provided by operating activities........ $ 926,924 $ 951,896 $ 851,583 $ 798,780 $ 662,799
Net cash used in investing activities ............ (1,759,193) (414,402) (1,079,793) (173,700) (417,050)
Net cash provided by (used in) financing
activities.................................... 850,223 (479,984) 247,038 (706,736) (187,568)
Provision for doubtful accounts ................ 300,226 243,443 233,628 226,310 228,222
Rent expense.................................. 170,788 153,185 139,660 132,883 120,748
Capital expenditures . .......................... 219,101 193,422 224,270 176,125 174,641
Depreciation and amortization. ................. 237,879 197,398 176,124 168,726 153,903
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