Quest Diagnostics 2008 Annual Report Download - page 116

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
(in thousands, except per share data)
Quarterly Operating Results (unaudited)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Total
Year
2008 (a) (b)
Net revenue from continuing
operations ........................ $1,784,637 $1,837,901 $1,826,603(c) $1,800,306 $7,249,447
Gross profit from continuing
operations ........................ 726,010 754,420 753,480(c) 759,381 2,993,291
Income from continuing operations . . . 140,694 162,218(d) 159,676(c)(d)(e) 169,596(d)(f) 632,184
Loss from discontinued operations. . . . (1,087) (890) (48,934)(g) 217 (50,694)
Net income ......................... $ 139,607 $ 161,328 $ 110,742 $ 169,813 $ 581,490
Earnings per common share – basic
Income from continuing operations . . . $ 0.72 $ 0.83 $ 0.82 $ 0.88 $ 3.25
Loss from discontinued operations. . . . - - (0.25) - (0.26)
Net income ......................... $ 0.72 $ 0.83 $ 0.57 $ 0.88 $ 2.99
Earnings per common share – dilutive
Income from continuing operations . . . $ 0.72 $ 0.83 $ 0.81 $ 0.87 $ 3.23
Loss from discontinued operations. . . . (0.01) (0.01) (0.25) - (0.26)
Net income ......................... $ 0.71 $ 0.82 $ 0.56 $ 0.87 $ 2.97
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Total
Year
2007 (a) (b)
Net revenue from continuing
operations ........................ $1,526,208 $1,641,156 $1,767,070 $1,770,473 $6,704,907
Gross profit from continuing
operations ........................ 594,423 672,414 740,472 727,750 2,735,059
Income from continuing operations . . 107,515(h) 141,979 150,325 154,009(i) 553,828
Loss from discontinued operations . . . (1,622) (647) (52,360)(j) (159,260)(j) (213,889)
Net income (loss) . .................. $ 105,893 $ 141,332 $ 97,965 $ (5,251) $ 339,939
Earnings per common share – basic
Income from continuing operations . . $ 0.56 $ 0.74 $ 0.78 $ 0.80 $ 2.87
Loss from discontinued operations . . . (0.01) - (0.27) (0.83) (1.11)
Net income (loss) . .................. $ 0.55 $ 0.74 $ 0.51 $ (0.03) $ 1.76
Earnings per common share – dilutive
Income from continuing operations . . $ 0.55 $ 0.73 $ 0.77 $ 0.79 $ 2.84
Loss from discontinued operations . . . (0.01) - (0.27) (0.82) (1.10)
Net income (loss) . .................. $ 0.54 $ 0.73 $ 0.50 $ (0.03) $ 1.74
(a) During the third quarter of 2006, the Company completed its wind down of NID and classified the operations
of NID as discontinued operations. Results of operations have been prepared to report the results of NID as
discontinued operations for all periods presented (see Note 15).
(b) On January 31, 2007, the Company completed the acquisition of HemoCue. On May 31, 2007, the Company
completed the acquisition of AmeriPath. The quarterly operating results include the results of operations of
HemoCue and AmeriPath subsequent to the closing of the applicable acquisitions.
(c) The Company estimates the impact of hurricanes in the third quarter of 2008 reduced consolidated revenue
growth and the increase in operating income for 2008 by approximately $10 million and $8 million,
respectively, compared to the prior year.
(d) In the second, third and fourth quarters of 2008, the Company recorded a tax benefit of $2.8 million, $3.4
million and $10.3 million, respectively, primarily associated with favorable resolutions of certain tax
contingencies.
F-44