This annual report summarizes Quest Diagnostics' financial and operational performance in 2006. Key points include:
- Net revenues grew 15% to $6.3 billion while earnings per share grew 13% to $3.14.
- The company enhanced its value to patients, physicians, and payers while reporting strong financial results.
- Quest Diagnostics remains committed to improving the patient experience, driving growth, and supporting its employees despite challenges in a consolidating healthcare sector with increasing pricing pressure.
This document is Quest Diagnostics' 2005 annual report which discusses their financial performance and business strategy.
1) Quest Diagnostics saw increases in net revenues, operating income, net income, and earnings per share in 2005 compared to 2004.
2) The company's strategy focuses on enhancing the patient experience, driving profitable growth, and supporting their over 41,500 employees.
3) In 2005, Quest Diagnostics made progress in these strategic areas through service improvements, acquisitions, innovation in diagnostic testing, and programs to support employee health.
MEGA Brands is a toy and office supplies company that was created in 1967 and has since expanded through acquisitions. It has 6000 employees worldwide and is headquartered in Canada. While MEGA Brands has implemented safety programs and focuses on innovation, it has also faced two product recalls and been uncooperative with regulators. Despite challenges, MEGA Brands has pursued growth opportunities through licensing deals, acquisitions, and outsourcing manufacturing to China.
The document provides an overview of West Coast Bancorp's 2009 annual meeting. It discusses the company's financial results for 2008, including net losses. It also summarizes steps taken to address challenges from its Two Step Program loans and reduce other real estate owned properties. Charts show trends of declining Two Step loan balances and nonperforming assets expected to continue through 2009 as properties are sold.
Trevor Fetter, President and CEO of Tenet Healthcare, discusses Tenet's strategy for progress and growth. He outlines that Tenet's culture and values are driving measurable improvements in operations, performance, and innovation. Key points include that same hospital adjusted EBITDA and margins have been expanding, volume trends are favorable, pricing growth has been strong, and they have effectively contained cost growth. Fetter also discusses strategic initiatives proving effective in quality, targeted growth, physician relationships, and capital investment. He believes Tenet has reached an "inflection point" in its turnaround over the past 12-18 months.
The document outlines CARD Bank's commitment to client protection in their operations. It discusses 6 key areas: 1) Appropriate product design, 2) Transparency, 3) Responsible pricing, 4) Responsible treatment of clients, 5) Effective complaint resolution, and 6) Privacy of client data. For each area, it provides examples of how CARD Bank implements policies and practices to protect clients, such as designing affordable products based on client needs, providing transparent terms, offering competitive savings returns, treating clients fairly, and resolving complaints quickly. The overall message is that CARD Bank is fully dedicated to upholding strong client protection standards.
The document discusses the 2008 results and 2009 plan for an institutional business. Some key points include:
- Excellent top-line growth and solid core earnings were achieved in 2008.
- Premiums, fees and other revenues are projected to increase from $16.5-$16.7 billion in 2008 to $17.3-$17.7 billion in 2009. However, operating earnings are expected to decline slightly to $1.6-$1.66 billion due to lower investment income and expense management.
- The business will focus on maintaining fundamentals, investing in growth opportunities, aggressively managing expenses, and communicating their value proposition in 2009.
This document is Quest Diagnostics' 2005 annual report which discusses their financial performance and business strategy.
1) Quest Diagnostics saw increases in net revenues, operating income, net income, and earnings per share in 2005 compared to 2004.
2) The company's strategy focuses on enhancing the patient experience, driving profitable growth, and supporting their over 41,500 employees.
3) In 2005, Quest Diagnostics made progress in these strategic areas through service improvements, acquisitions, innovation in diagnostic testing, and programs to support employee health.
MEGA Brands is a toy and office supplies company that was created in 1967 and has since expanded through acquisitions. It has 6000 employees worldwide and is headquartered in Canada. While MEGA Brands has implemented safety programs and focuses on innovation, it has also faced two product recalls and been uncooperative with regulators. Despite challenges, MEGA Brands has pursued growth opportunities through licensing deals, acquisitions, and outsourcing manufacturing to China.
The document provides an overview of West Coast Bancorp's 2009 annual meeting. It discusses the company's financial results for 2008, including net losses. It also summarizes steps taken to address challenges from its Two Step Program loans and reduce other real estate owned properties. Charts show trends of declining Two Step loan balances and nonperforming assets expected to continue through 2009 as properties are sold.
Trevor Fetter, President and CEO of Tenet Healthcare, discusses Tenet's strategy for progress and growth. He outlines that Tenet's culture and values are driving measurable improvements in operations, performance, and innovation. Key points include that same hospital adjusted EBITDA and margins have been expanding, volume trends are favorable, pricing growth has been strong, and they have effectively contained cost growth. Fetter also discusses strategic initiatives proving effective in quality, targeted growth, physician relationships, and capital investment. He believes Tenet has reached an "inflection point" in its turnaround over the past 12-18 months.
The document outlines CARD Bank's commitment to client protection in their operations. It discusses 6 key areas: 1) Appropriate product design, 2) Transparency, 3) Responsible pricing, 4) Responsible treatment of clients, 5) Effective complaint resolution, and 6) Privacy of client data. For each area, it provides examples of how CARD Bank implements policies and practices to protect clients, such as designing affordable products based on client needs, providing transparent terms, offering competitive savings returns, treating clients fairly, and resolving complaints quickly. The overall message is that CARD Bank is fully dedicated to upholding strong client protection standards.
The document discusses the 2008 results and 2009 plan for an institutional business. Some key points include:
- Excellent top-line growth and solid core earnings were achieved in 2008.
- Premiums, fees and other revenues are projected to increase from $16.5-$16.7 billion in 2008 to $17.3-$17.7 billion in 2009. However, operating earnings are expected to decline slightly to $1.6-$1.66 billion due to lower investment income and expense management.
- The business will focus on maintaining fundamentals, investing in growth opportunities, aggressively managing expenses, and communicating their value proposition in 2009.
You are viewing presentations from conferences that I have attended. Please enjoy & if we can help you with any logistics projects in the Americas please contact me at 678.364.3475
Bill was also on the Board of Directors for the St.Vincent DePaul Foodbank in Roseville California helping with the fund raising and meals to the poor program. While based in Northern California he was successful in fund raising programs for the Crusade of Mercy and helped Father Dan Madigan at the Sacramento Food Bank also. For 2008, Bill is a member of the Board for WORKTEC on also an Advisory Board Member for Boys and Girls Club for Metro Atlanta-Clayton County Chapter. See www.worktec.biz or www.bgcma.org . Bill is also on the Board of Directors for the Southeastern Warehouse Association & represents Georgia for 2010-2012.
Regards,
Bill Stankiewicz
Vice President and General Manager
Shippers Warehouse
Email: williams@shipperswarehouse.com
www.shipperswarehousega.com
http://www.linkedin.com/in/billstankiewicz2006
http://twitter.com/BillStankiewicz
http://www.topexecutivesnet.com/index.aspx
HealthWarehouse.com presented preliminary financial results through December 2011 and discussed opportunities for future growth. Key highlights included over 100% year-over-year growth in revenue and gross profit in 2011. The presentation discussed the company's competitive advantages in price, convenience, and customer service compared to traditional retail pharmacies. It also outlined trends favoring generic drug growth and the company's strategy to acquire more customers and enhance its online portal. HealthWarehouse concluded by emphasizing its barriers to entry and potential for continued strong revenue growth.
Raytheon Reports 2007 First Quarter Resultsfinance12
This document is Raytheon Company's first quarter 2007 earnings report. It provides key financial highlights including a 6% increase in net sales to $4.9 billion, an 18% rise in operating income to $510 million, and a 13% increase in EPS to $0.69. Raytheon also had solid bookings of $5.3 billion and a record backlog of $33.9 billion. The company reaffirmed its full-year 2007 guidance ranges for sales, EPS, operating cash flow, and return on invested capital.
Atmos Energy Corporation provides forward-looking statements about its business in this presentation. It operates natural gas utilities in 12 states and nonutility businesses in 22 states. The company has grown through acquisitions, becoming the largest pure-play natural gas distribution company based on customers. It aims to maximize core utility earnings through regulatory strategies including weather normalization adjustment mechanisms, gas cost recovery, and capital investment recovery riders. Nonutility operations in gas marketing and pipeline/storage complement the utility business.
This document summarizes the Individual Business segment of a company for 2008 results and the 2009 plan. It highlights that earnings declined significantly in 2008 but are projected to increase in 2009. Key priorities for 2009 include leveraging the company's strong market position, maintaining expense controls, adjusting prices for market volatility, and increasing distribution efficiency. The business focuses on annuities and life insurance products distributed through affiliated and third party channels.
The document discusses client protection at CARD Bank, a microfinance institution in the Philippines. It outlines CARD Bank's commitment to 6 principles of client protection: 1) appropriate product design, 2) transparency, 3) responsible pricing, 4) responsible treatment of clients, 5) effective complaint resolution, and 6) privacy of client data. For each principle, it provides examples of how CARD Bank implements that principle, such as designing loans based on client needs, providing transparent loan terms, offering competitive savings rates and client dividends, and maintaining privacy of client financial data. The document emphasizes CARD Bank's dedication to fully protecting client interests.
Chris Caton, Chief Economist at BT Financial Group, presented his economic preview for AIM NSW & ACT this week. "Share markets are still slightly cheap" is just one of the key findings. Read more in the attached slide show.
Us economic outlook micky levy, chief economist - bank of america 25 januar...Jessica Roch
The document summarizes US and global economic trends in 2012. It finds that while emerging markets will grow significantly, growth in advanced nations like Europe and Japan will be slower. In the US, moderate growth is expected to continue with high unemployment gradually improving. Business investment and exports remain strong, but consumer spending and housing are in the early stages of recovery. International trade is rising moderately amid a challenging global environment.
This document summarizes an earnings conference call for Oshkosh Truck Corporation for the second quarter of fiscal year 2007. Sales increased 96.6% to $1.66 billion and operating income grew 69.1% to $134.8 million. For fiscal year 2007, the company estimates sales of $6.1-6.2 billion and operating income of $568-580 million. It also provides segment-level results and highlights for access equipment, defense, fire & emergency, and commercial.
Trends in Community Needs, January 2010, Fairfax CountyFairfax County
CSP data from 2007-2010 shows increasing demand for services due to economic hardship. Call volume rose 44% from 2007-2009 and 15% in 2010. Requests for emergency food, rent, and utility assistance increased 57-139% since 2006. The number of new CSP cases per month rose over 40% from 2006-2009. While most needs are met through community groups, housing assistance remains largely unmet due to lack of resources. Income disparity in Fairfax County also increased, with the highest earners making 10.5 times more than the lowest in 2006, compared to 8.8 times in 1999.
The document provides an analysis of CMC's financial performance for the fiscal year ending March 31, 2006. Some key highlights include:
- Total revenue was up 9.6% at Rs. 858 cr compared to Rs. 782 cr last year driven by increases in ITeS, E&T, and international business.
- Operating profit was up 12% at Rs. 44.1 cr. Profit before tax grew 82% to Rs. 60.1 cr and profit after tax increased 91% to Rs. 44.1 cr.
- Revenue from customer services was up 14% while systems integration grew 39% and ITeS increased 68% over the previous fiscal year.
Raytheon Reports 2008 Second Quarter Resultsfinance12
Raytheon reported second quarter 2008 earnings on July 24, 2008. Key highlights included:
- Sales increased 11% to $5.9 billion
- Operating income grew 12% to $662 million
- Earnings per share increased 27% to $1.00
- Bookings totaled $6.0 billion with backlog at $37.5 billion
- Guidance for full year 2008 was increased across key metrics
Carfinco Financial Group Inc. is an auto finance company that provides loans to non-prime borrowers. The presentation discusses Carfinco's growing loan portfolio and revenues, increasing earnings per share, and impressive return on equity. Key highlights include a loan portfolio that has grown to $172.5 million, annualized revenues of $67.1 million, quarterly earnings per share of $0.19, and an annualized return on equity of 79.4%. The analysts cited have target share prices ranging from $10 to $12 and view Carfinco positively.
Carfinco Financial Group Inc. is an auto finance company that provides loans to non-prime borrowers. The presentation summarizes the company's consistent growth and profitability, analyst forecasts, competitive position in the Canadian market, and leadership team. Key highlights include a 20% annual growth in loan originations and portfolio size, 11 consecutive quarters of record earnings, and analyst price targets of $10-12 per share.
Work Sample: BAUSCH+LOMB 2012 Sales ModelingBinglinglin
1. The document analyzes the marketing plan and sales strategies for an eye vitamin company's two products: the declining OP120 and the growing PLSFTG.
2. It evaluates scenarios for pricing, promotions, and budgets for each product in 2012 across two retail chains. The optimal strategy is identified as investing more in PLSFTG by increasing its price and promotions while cutting costs and promotions for OP120.
3. Running features accompanied by temporary price reductions is found to significantly increase sales for both products, with lifts up to 140%. The marketing budget proposed for 2012 focuses entirely on PLSFTG while eliminating costs for OP120.
Carfinco Financial Group Inc. is a provider of auto financing to non-prime borrowers. The presentation highlights Carfinco's consistent growth, strong financial performance, and positive outlook. Analysts have set target prices between $11-12 per share and forecast continued revenue and earnings growth in 2012. Carfinco has a large and geographically diverse loan portfolio, stringent credit controls, and obtains funding through a $130 million credit facility.
This document contains a chapter quiz for Managerial Economics (ECO 550) at Strayer University. The 21-question multiple choice quiz covers concepts related to demand, elasticity, forecasting sales based on price and income elasticities, and calculating changes in tax revenue based on changes in property values and tax rates. A link is provided to purchase the full quiz bank for the course.
This document provides an overview of cost concepts and analysis in the short and long run. It discusses short-run cost functions including total, variable, and fixed costs. It also examines average and marginal costs. In the long run, economies and diseconomies of scale are explored. The document is intended to help readers understand cost behavior and apply cost analysis to managerial decision making.
Charter Communications had strong growth in 2001, adding over 2.1 million digital cable customers and over 600,000 high-speed internet customers. The company continued expanding its network and improving customer service centers. Charter provides digital video, high-speed internet, and interactive television services using its broadband network, enhancing customers' entertainment and access to information. The company saw revenues increase 14% and operating cash flow increase nearly 11% from 2000 to 2001.
Quest Diagnostics underwent significant changes in 1996, including spinning off from parent company Corning Inc. and launching as an independent publicly-traded company. The company summarized its strategic focus as becoming the highest quality, lowest cost provider of diagnostic testing, information, and services. It also aimed to standardize operations and billing processes across its many facilities to improve efficiency and reduce costs. Challenges included improving profitability at underperforming labs and gaining better control over billing and collections to reduce bad debt expenses.
You are viewing presentations from conferences that I have attended. Please enjoy & if we can help you with any logistics projects in the Americas please contact me at 678.364.3475
Bill was also on the Board of Directors for the St.Vincent DePaul Foodbank in Roseville California helping with the fund raising and meals to the poor program. While based in Northern California he was successful in fund raising programs for the Crusade of Mercy and helped Father Dan Madigan at the Sacramento Food Bank also. For 2008, Bill is a member of the Board for WORKTEC on also an Advisory Board Member for Boys and Girls Club for Metro Atlanta-Clayton County Chapter. See www.worktec.biz or www.bgcma.org . Bill is also on the Board of Directors for the Southeastern Warehouse Association & represents Georgia for 2010-2012.
Regards,
Bill Stankiewicz
Vice President and General Manager
Shippers Warehouse
Email: williams@shipperswarehouse.com
www.shipperswarehousega.com
http://www.linkedin.com/in/billstankiewicz2006
http://twitter.com/BillStankiewicz
http://www.topexecutivesnet.com/index.aspx
HealthWarehouse.com presented preliminary financial results through December 2011 and discussed opportunities for future growth. Key highlights included over 100% year-over-year growth in revenue and gross profit in 2011. The presentation discussed the company's competitive advantages in price, convenience, and customer service compared to traditional retail pharmacies. It also outlined trends favoring generic drug growth and the company's strategy to acquire more customers and enhance its online portal. HealthWarehouse concluded by emphasizing its barriers to entry and potential for continued strong revenue growth.
Raytheon Reports 2007 First Quarter Resultsfinance12
This document is Raytheon Company's first quarter 2007 earnings report. It provides key financial highlights including a 6% increase in net sales to $4.9 billion, an 18% rise in operating income to $510 million, and a 13% increase in EPS to $0.69. Raytheon also had solid bookings of $5.3 billion and a record backlog of $33.9 billion. The company reaffirmed its full-year 2007 guidance ranges for sales, EPS, operating cash flow, and return on invested capital.
Atmos Energy Corporation provides forward-looking statements about its business in this presentation. It operates natural gas utilities in 12 states and nonutility businesses in 22 states. The company has grown through acquisitions, becoming the largest pure-play natural gas distribution company based on customers. It aims to maximize core utility earnings through regulatory strategies including weather normalization adjustment mechanisms, gas cost recovery, and capital investment recovery riders. Nonutility operations in gas marketing and pipeline/storage complement the utility business.
This document summarizes the Individual Business segment of a company for 2008 results and the 2009 plan. It highlights that earnings declined significantly in 2008 but are projected to increase in 2009. Key priorities for 2009 include leveraging the company's strong market position, maintaining expense controls, adjusting prices for market volatility, and increasing distribution efficiency. The business focuses on annuities and life insurance products distributed through affiliated and third party channels.
The document discusses client protection at CARD Bank, a microfinance institution in the Philippines. It outlines CARD Bank's commitment to 6 principles of client protection: 1) appropriate product design, 2) transparency, 3) responsible pricing, 4) responsible treatment of clients, 5) effective complaint resolution, and 6) privacy of client data. For each principle, it provides examples of how CARD Bank implements that principle, such as designing loans based on client needs, providing transparent loan terms, offering competitive savings rates and client dividends, and maintaining privacy of client financial data. The document emphasizes CARD Bank's dedication to fully protecting client interests.
Chris Caton, Chief Economist at BT Financial Group, presented his economic preview for AIM NSW & ACT this week. "Share markets are still slightly cheap" is just one of the key findings. Read more in the attached slide show.
Us economic outlook micky levy, chief economist - bank of america 25 januar...Jessica Roch
The document summarizes US and global economic trends in 2012. It finds that while emerging markets will grow significantly, growth in advanced nations like Europe and Japan will be slower. In the US, moderate growth is expected to continue with high unemployment gradually improving. Business investment and exports remain strong, but consumer spending and housing are in the early stages of recovery. International trade is rising moderately amid a challenging global environment.
This document summarizes an earnings conference call for Oshkosh Truck Corporation for the second quarter of fiscal year 2007. Sales increased 96.6% to $1.66 billion and operating income grew 69.1% to $134.8 million. For fiscal year 2007, the company estimates sales of $6.1-6.2 billion and operating income of $568-580 million. It also provides segment-level results and highlights for access equipment, defense, fire & emergency, and commercial.
Trends in Community Needs, January 2010, Fairfax CountyFairfax County
CSP data from 2007-2010 shows increasing demand for services due to economic hardship. Call volume rose 44% from 2007-2009 and 15% in 2010. Requests for emergency food, rent, and utility assistance increased 57-139% since 2006. The number of new CSP cases per month rose over 40% from 2006-2009. While most needs are met through community groups, housing assistance remains largely unmet due to lack of resources. Income disparity in Fairfax County also increased, with the highest earners making 10.5 times more than the lowest in 2006, compared to 8.8 times in 1999.
The document provides an analysis of CMC's financial performance for the fiscal year ending March 31, 2006. Some key highlights include:
- Total revenue was up 9.6% at Rs. 858 cr compared to Rs. 782 cr last year driven by increases in ITeS, E&T, and international business.
- Operating profit was up 12% at Rs. 44.1 cr. Profit before tax grew 82% to Rs. 60.1 cr and profit after tax increased 91% to Rs. 44.1 cr.
- Revenue from customer services was up 14% while systems integration grew 39% and ITeS increased 68% over the previous fiscal year.
Raytheon Reports 2008 Second Quarter Resultsfinance12
Raytheon reported second quarter 2008 earnings on July 24, 2008. Key highlights included:
- Sales increased 11% to $5.9 billion
- Operating income grew 12% to $662 million
- Earnings per share increased 27% to $1.00
- Bookings totaled $6.0 billion with backlog at $37.5 billion
- Guidance for full year 2008 was increased across key metrics
Carfinco Financial Group Inc. is an auto finance company that provides loans to non-prime borrowers. The presentation discusses Carfinco's growing loan portfolio and revenues, increasing earnings per share, and impressive return on equity. Key highlights include a loan portfolio that has grown to $172.5 million, annualized revenues of $67.1 million, quarterly earnings per share of $0.19, and an annualized return on equity of 79.4%. The analysts cited have target share prices ranging from $10 to $12 and view Carfinco positively.
Carfinco Financial Group Inc. is an auto finance company that provides loans to non-prime borrowers. The presentation summarizes the company's consistent growth and profitability, analyst forecasts, competitive position in the Canadian market, and leadership team. Key highlights include a 20% annual growth in loan originations and portfolio size, 11 consecutive quarters of record earnings, and analyst price targets of $10-12 per share.
Work Sample: BAUSCH+LOMB 2012 Sales ModelingBinglinglin
1. The document analyzes the marketing plan and sales strategies for an eye vitamin company's two products: the declining OP120 and the growing PLSFTG.
2. It evaluates scenarios for pricing, promotions, and budgets for each product in 2012 across two retail chains. The optimal strategy is identified as investing more in PLSFTG by increasing its price and promotions while cutting costs and promotions for OP120.
3. Running features accompanied by temporary price reductions is found to significantly increase sales for both products, with lifts up to 140%. The marketing budget proposed for 2012 focuses entirely on PLSFTG while eliminating costs for OP120.
Carfinco Financial Group Inc. is a provider of auto financing to non-prime borrowers. The presentation highlights Carfinco's consistent growth, strong financial performance, and positive outlook. Analysts have set target prices between $11-12 per share and forecast continued revenue and earnings growth in 2012. Carfinco has a large and geographically diverse loan portfolio, stringent credit controls, and obtains funding through a $130 million credit facility.
This document contains a chapter quiz for Managerial Economics (ECO 550) at Strayer University. The 21-question multiple choice quiz covers concepts related to demand, elasticity, forecasting sales based on price and income elasticities, and calculating changes in tax revenue based on changes in property values and tax rates. A link is provided to purchase the full quiz bank for the course.
This document provides an overview of cost concepts and analysis in the short and long run. It discusses short-run cost functions including total, variable, and fixed costs. It also examines average and marginal costs. In the long run, economies and diseconomies of scale are explored. The document is intended to help readers understand cost behavior and apply cost analysis to managerial decision making.
Charter Communications had strong growth in 2001, adding over 2.1 million digital cable customers and over 600,000 high-speed internet customers. The company continued expanding its network and improving customer service centers. Charter provides digital video, high-speed internet, and interactive television services using its broadband network, enhancing customers' entertainment and access to information. The company saw revenues increase 14% and operating cash flow increase nearly 11% from 2000 to 2001.
Quest Diagnostics underwent significant changes in 1996, including spinning off from parent company Corning Inc. and launching as an independent publicly-traded company. The company summarized its strategic focus as becoming the highest quality, lowest cost provider of diagnostic testing, information, and services. It also aimed to standardize operations and billing processes across its many facilities to improve efficiency and reduce costs. Challenges included improving profitability at underperforming labs and gaining better control over billing and collections to reduce bad debt expenses.
Quest Diagnostics reported financial results for the second quarter of 2007. Revenue grew 3.7% to $1.6 billion compared to the prior year, with acquisitions contributing approximately 6.5% of growth. Operating margin improved to 16.6% of revenues compared to 13.8% in the previous quarter, due to cost reduction efforts and higher revenue per test. The company expects margins to continue improving for the rest of the year as cost savings are realized and new contracts with health plans generate additional business.
Quest Diagnostics is the leading provider of diagnostic testing in the US. In 2001, the company achieved record sales and earnings while strengthening its financial position. It also realized initial benefits from its Six Sigma quality initiative, which is aimed at improving patient care. Quest Diagnostics has a national network of laboratories and patient service centers that make diagnostic testing convenient for physicians and patients. Its pursuit of Six Sigma Quality is helping to differentiate the company.
Charter Communications exceeded its ambitious financial goals and customer growth targets for 2000. The company integrated millions of new customers and thousands of employees from acquisitions, while accelerating its rollout of digital cable, high-speed internet, and video on demand services. Charter's aggressive expansion strategy has positioned it as an industry leader, with operating cash flow and customer growth significantly outpacing competitors. Going forward, Charter will continue investing in its broadband network and pursuing new acquisition opportunities to further its vision of delivering advanced interactive services to homes and businesses.
1) Quest Diagnostics reported strong financial results for Q4 and full year 2007, with consolidated revenues growing 14.3% to $1.8 billion in Q4. Operating margin grew to 17.6% and cash flow was $355 million for the quarter.
2) For 2008, Quest expects revenue growth of approximately 9%, operating income as a percentage of revenues to approach 17%, cash from operations of $900 million, and diluted EPS between $3.00-$3.20, excluding potential special charges.
3) Quest aims to grow revenues above industry rates, expand operating income to 20% of revenues, and derive 10% of revenues from international business within 5 years. The company is well
The document is a proxy statement for the annual meeting of stockholders of Charter Communications, Inc. Stockholders are being asked to vote on the election of one director, an amendment to the Company's 2001 Stock Incentive Plan, and the ratification of the appointment of KPMG LLP as the independent registered public accounting firm. Stockholders of record as of July 29, 2005 are entitled to vote their shares of Class A common stock at the meeting to be held on August 23, 2005 in Seattle, Washington.
charter communications 4Q2007_Earnings_Presentation_vFINALfinance34
This document is the transcript from Charter Communications' 4th quarter and full year 2007 earnings call. It includes:
1) Charter Communications reported consistent revenue and adjusted EBITDA growth in the 4th quarter and full year 2007, driven by strategies to increase bundling penetration and improve customer experience.
2) The company grew revenue from high-speed internet and telephone services through customer growth and increasing ARPU. Bundling phone with cable services drove faster growth and improved customer retention.
3) Charter reduced its debt maturities through 2012 to $367 million and expects adequate liquidity through 2009 to continue investing in growth opportunities and improving service.
The document is a notice and proxy statement for WESCO International, Inc.'s 2006 Annual Meeting of Stockholders. It provides information on the date, time, and location of the meeting, and details the proposals to be voted on, including the election of three Class I Directors - Steven A. Raymund, Lynn M. Utter, and William J. Vareschi - to three-year terms expiring in 2009. It also provides background information on each of the nominee directors. Stockholders are being asked to ratify the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for 2006.
This document is a proxy statement from Charter Communications providing information for its upcoming annual shareholder meeting. It summarizes that shareholders will vote on one director nominee, Ronald L. Nelson, to serve as the Class A/Class B director on the board. It provides details on voting procedures and requirements. The other six board members will be elected solely by the Class B shareholder, Paul Allen.
This document is a notice and proxy statement for the annual meeting of WESCO International, Inc. stockholders to be held on May 22, 2002. The meeting will consider the election of three directors to three-year terms expiring in 2005, and any other business properly brought before the meeting. Stockholders of record as of April 8, 2002 are entitled to vote. The board recommends voting in favor of the director nominees.
charter communications 2Q_2008_Earnings_Presentation_FINALfinance34
Charter Communications held its second quarter 2008 earnings call on August 5, 2008. The presentation included forward-looking statements and discussed Charter's second quarter 2008 financial results. Key highlights included 8.9% revenue growth and 10.1% adjusted EBITDA growth. Charter saw increases in video, high-speed internet, and telephone customers. Bundled customer penetration reached 50% in the second quarter.
charter communications Final_Charter_Annual_Report_2007finance34
Charter Communications is the third largest cable operator in the US, serving 5.6 million residential and commercial customers across 29 states. In 2007, Charter achieved double-digit revenue and adjusted EBITDA growth in each quarter on a pro forma basis through focusing on improving the customer experience and increasing sales of bundled cable, internet, and telephone services. Charter aims to continue investing in initiatives that generate high returns to achieve consistent operating and financial performance going forward.
The document is a proxy statement from WESCO International, Inc. for its 2000 annual meeting of stockholders. It provides information on the meeting such as the date, time, location, and matters to be voted on including the election of two Class I directors. It also provides background information on the nominees for Class I directors and the continuing Class II and Class III directors.
The document is a notice and proxy statement for WESCO International, Inc.'s 2004 Annual Meeting of Stockholders. It notifies stockholders that the meeting will be held on May 19, 2004 to elect three Class II directors and conduct any other business. It recommends voting for the election of the three Class II director nominees: Sandra Beach Lin, Robert J. Tarr, Jr. and Kenneth L. Way. It provides background information on the nominees and the other current directors.
This document is a proxy statement from Quest Diagnostics Incorporated informing shareholders about the company's upcoming 2005 Annual Meeting of Shareholders. It provides details about time and location of the meeting, items to be voted on including electing directors, ratifying an accounting firm, and approving employee compensation plans. It also provides information about the company's corporate governance policies and practices.
The document is a proxy statement for the annual meeting of stockholders of Charter Communications, Inc. It provides information about voting on the election of one Class A/Class B director and the ratification of the appointment of KPMG LLP as the company's independent registered public accounting firm. Stockholders are being asked to vote for Robert P. May as the Class A/Class B director and to ratify the appointment of KPMG. The document outlines voting procedures and requirements.
Charter Communications experienced a year of transition in 2003, rebuilding its business and strengthening its foundation. Revenues increased 6% to $4.8 billion and adjusted EBITDA grew 7% to $1.9 billion. Free cash flow improved by $1.4 billion compared to 2002, going from negative $1.5 billion to negative $70 million. Charter is focused on driving revenue growth through improving operations, introducing new digital products and services, and strengthening its financial profile. The company believes it is well positioned for future growth as demand increases for the expanding services its broadband network can provide.
Owens & Minor reported their 4th quarter 2007 financial results, with revenue increasing 7% year-over-year to $1.748 billion, gross margin remaining steady at 10.6% of revenue, and earnings per share growing 20% to $0.55. For 2008, the company expects revenue to increase 5-7% outpacing industry growth, earnings per share to rise 23-28% to $2.20-$2.30, and capital expenditures to be $25-35 million.
VOS Healthcare is positioned to become a leading global player in stem cell therapy and banking. It has established operations across multiple countries with a goal of providing seamless stem cell collection, processing, storage and treatment services worldwide. VOS generates over 75% of its revenue from recurring sources like cord blood and menstrual blood banking through a large, loyal customer base. Its experienced team and quality operations provide a strong foundation for continued growth and leadership in the regenerative medicine industry.
1. Stryker Corporation is a global medical technology company focused on reconstructive, medical and surgical, and neurotechnology and spine products.
2. For 2007, Stryker reported net sales of $6 billion, net earnings of $1.02 billion, and diluted earnings per share of $2.44, representing year-over-year growth of 17%, 31%, and 29%, respectively.
3. On an adjusted basis, Stryker reported net earnings from continuing operations of $999 million and adjusted diluted earnings per share from continuing operations of $2.40 for 2007, representing year-over-year growth of 21% and 20%, respectively.
VOS Healthcare is a leading provider of stem cell therapy and banking services globally. It has achieved strong and consistent financial growth in recent years through recurring revenue streams that account for over 75% of its revenues. VOS aims to leverage its large customer base and global presence to further expand its leadership position in the stem cell therapy market, which remains highly fragmented.
VOS Healthcare is a leading provider of stem cell therapy and regenerative medicine services globally. It has a large, loyal customer base and aims to converge all stem cell-related services. VOS sees significant growth opportunities through expansion, cross-selling, and leveraging its innovative technologies and global infrastructure. It has achieved strong and consistent financial performance with high recurring revenue streams.
This document contains the prepared remarks from Quest Diagnostics' third quarter 2006 conference call. [1] It discusses Quest's strong financial results for Q3 2006, including 16% revenue growth and 21% earnings growth. [2] It provides details on revenue, volume, and margin performance. [3] It also addresses Quest's ongoing contract dispute with UnitedHealthcare and Quest's strategies for retaining United business and continuing to drive growth organically and through acquisitions.
VOS Healthcare is a leading provider of stem cell therapy and regenerative medicine services globally. It has a large, loyal customer base and aims to converge all stem cell related services. VOS has achieved strong, consistent financial growth in recent years and has high operating margins due to its recurring revenue model. It is well positioned for continued leadership in the stem cell industry.
This annual report summarizes BD's performance in 2004. Key points include:
- Revenues grew 10.6% to $4.934 billion, income from continuing operations grew 5% to $582.5 million, and diluted EPS grew 5.2% to $2.21.
- Each of BD's three business segments (Medical, Diagnostics, Biosciences) contributed to revenue growth.
- BD achieved strong operational performance through initiatives in lean manufacturing, inventory management, and customer service.
- BD launched several new products that drove revenue growth and furthered its mission of innovating for impact in healthcare.
The Behavioral Health Industry From Wall Street’s Point Of Viewanthonydeem
1) Deem discussed trends in the freestanding inpatient behavioral health market such as pricing growth, admission growth, length of stay, and revenue growth for major providers.
2) He analyzed the proposed merger between Psychiatric Solutions and Universal Health Services, noting it would create the largest behavioral health provider.
3) Deem outlined factors that could impact the industry outlook, including state budget issues, mental health parity legislation, and healthcare reform expanding insurance coverage.
American Dairy, Inc. is a leading Chinese producer and distributor of infant formula and other dairy products. The company has over 47 years of operating history in China and owns dairy farms and processing facilities. It has the third largest market share among domestic Chinese infant formula brands and distributes products nationwide through over 95,000 retail outlets. American Dairy has an experienced management team and a vertically integrated business model that provides secured access to high quality milk and stringent quality control.
This document is the 2003 annual report for Quest Diagnostics. It discusses the company's financial performance in 2003, highlighting record earnings per share growth of 28% and revenues growth of 15%. It outlines the company's strategic focus on six sigma quality, access and convenience, innovative science and medicine, and advanced information technology. The report provides examples of new diagnostic tests introduced in 2003 to improve disease diagnosis and treatment.
Kellogg Company reported strong financial results for 2008 despite challenging economic conditions. Net sales increased 9% to $12.8 billion, operating profit grew 5% to $1.95 billion, and earnings per share rose 8% to $2.99. Kellogg met or exceeded its long-term growth targets through focused strategies to win in cereal and expand snacks. The company remains committed to sustainable growth and managing for cash to deliver dependable returns for shareholders in the future.
ShapeUp's 2012 Technology + Employee Wellness Survey found that innovative employers are using technology such as online games, social networks, mobile apps, and fitness devices to engage more employees in wellness, produce better health outcomes, and save more money. By viewing the slides from our recent "How Innovators Use Technology For Wellness" webinar, you can learn how innovative employers approach the use of technology in employee wellness. Watch the full webinar at http://www.shapeup.com/lp/best-practices-from-innovative-employers
Vistage is seeking experienced business leaders to become Vistage Chairs and lead executive peer advisory groups. As a Chair, one would guide CEOs and business owners to maximize their leadership skills and business opportunities through coaching, accountability, and facilitating peer group discussions. Chairs can choose between part-time or full-time roles with compensation ranging from $95k to $350k annually. The role provides purpose, prestige in the business community, and flexibility to use one's experience helping other executives succeed.
Western Union had a very successful 2007 financially, with revenue, operating profit, and cash flow from operating activities all reaching record highs and growing at double-digit annual rates. The company strengthened its global network by increasing its number of agent locations worldwide to over 335,000 across more than 200 countries and territories. International consumer-to-consumer money transfers now make up 65% of Western Union's total revenue, demonstrating the company's increasing global reach and focus on serving migrant populations worldwide. Western Union aims to continue growing this business segment and meeting the evolving financial needs of global consumers.
The document is Aetna's 2006 annual report. It discusses Aetna's strong financial results in 2006, with operating earnings per share increasing 29% and total revenues expanding 12%. It highlights Aetna's focus on customer service and innovation, including new decision support tools and the integration of medical, pharmacy and other plans through Aetna Health Connections to improve health outcomes. The report also discusses Aetna's leadership in public policy issues and its priorities going forward to continue growth.
This annual report summarizes Owens & Minor's financial and operational performance in 2007. Some key points:
- Revenue grew 22.9% to $6.8 billion, fueled by a strategic acquisition and strong organic growth.
- Net income increased 49.1% to $72.7 million.
- The company continued investing in infrastructure to support future growth while reducing long-term debt.
- Stock price increased 35.7% in 2007, outperforming major indices and industry peers.
Carfinco Financial Group Inc. is a uniquely positioned auto finance company that has delivered consistent 20% annual growth. It provides financing to "non-prime" credit customers through over 1,600 dealer partnerships across Canada. Carfinco has refined credit risk management practices and vertically integrated operations that have supported strong and growing financial returns, including impressive annual returns on equity of over 50%. The leadership team emphasizes continued growth and maintaining dividend payments.
Moss Adams 2007 Personal Financial Planning Practice Studyhilldor
The document summarizes a study on CPA financial planning practices. It finds that CPA financial planning practices are growing faster than the broader financial planning industry, averaging 34.9% annual growth. Most successful firms develop formal plans and goals, monitor performance of their financial planning services, formalize compensation systems, and devote time to marketing. The study provides insights into the structures, registrations, challenges and opportunities for CPA financial planning practices.
Charter Communications held an earnings call presentation on May 3, 2007 to discuss their quarterly results and outlook. The presentation included the following:
1) Charter reported strong momentum in the first quarter of 2007 with the highest revenue, adjusted EBITDA, and RGU growth in several years driven by increased bundling of services and growth in value-added services.
2) Bundled customers increased to 41% of total customers in the first quarter of 2007 compared to 34% in the prior year. Telephone services passed increased significantly year-over-year and telephone customers more than doubled.
3) Financial results showed 10.7% revenue growth and 13.2% adjusted EBITDA growth year-
Charter Communications held an earnings call presentation on May 3, 2007 to discuss their first quarter 2007 results. The presentation included the following key points:
1) Charter experienced strong momentum in the first quarter of 2007 with the highest revenue, adjusted EBITDA, and RGU growth in over four years driven by increased bundling of services and growth in value-added services.
2) Bundling of video, internet, and telephone services increased customer penetration and ARPU, with bundled customers rising to 41% of total customers in the first quarter of 2007 compared to 34% in the first quarter of 2006.
3) Telephone services continued to show strong growth with homes passed increasing 86% compared to the
Charter Communications reported strong financial results for the second quarter of 2007, with double-digit revenue and adjusted EBITDA growth driven by increases in high-speed internet and telephone customers. Revenue grew 11% year-over-year to $1.498 billion, while adjusted EBITDA rose 11% to $539 million. The company saw strong growth in its bundled customer base and average revenue per user. Charter also continued the expansion of its advanced services such as HD and DVR set-top boxes.
Charter Communications reported financial results for the second quarter of 2007 that showed double-digit revenue and adjusted EBITDA growth compared to the second quarter of 2006. Revenue grew 11% due to increases in high-speed internet, telephone, and commercial business, while adjusted EBITDA rose 11%. The company added 166,300 total RGUs in the quarter, up 47% year-over-year, driven by growth in digital video, high-speed internet, and telephone customers. Bundled customers grew 17.7% and now make up 42% of total customers.
charter communications 4Q2007_Earnings_Presentation_vFINALfinance34
This document summarizes Charter Communications' 4th quarter and full year 2007 earnings call. It discusses the company's consistent revenue and adjusted EBITDA growth over the past five quarters. Key highlights include double-digit annual revenue growth driven by increases in high-speed internet and telephone customers. The company has focused on strategies like bundling multiple services and improving the customer experience to generate sustainable growth.
charter communications 1Q_2008_Earnings_Presentationfinance34
Charter Communications reported first quarter 2008 results. Revenue grew 10.5% to $1.56 billion driven by strong growth in high-speed internet, telephone, and commercial customers. Adjusted EBITDA also increased 10.5% to $545 million. The company added over 302,000 customers during the quarter and nearly doubled telephone customers year-over-year. Charter aims to continue growing revenue and adjusted EBITDA through bundling video, internet, and telephone services and increasing penetration of triple play customers.
charter communications 1Q_2008_Earnings_Presentationfinance34
Charter Communications reported first quarter 2008 results. Revenue grew 10.5% to $1.56 billion driven by increases in high-speed internet, telephone, and commercial customers. Adjusted EBITDA also increased 10.5% to $545 million. The company added over 302,000 customers during the quarter and nearly doubled telephone customers year-over-year to 1.1 million. Charter aims to continue growing revenue and adjusted EBITDA through bundling video, internet, and telephone services and increasing penetration of triple play packages.
charter communications 2Q_2008_Earnings_Presentation_FINALfinance34
Charter Communications reported second quarter 2008 earnings. Revenue grew 8.9% year-over-year to $1.623 billion driven by balance of rate and volume increases. Adjusted EBITDA increased 10.1% year-over-year to $591 million and the margin expanded 40 basis points to 36.4%. Total customer relationships grew 6% year-over-year with a focus on bundling video, internet, and telephone services and increasing penetration of advanced offerings.
charter communications 3Q_2008_Earnings_Presentation_vFINALfinance34
Charter Communications held its third quarter 2008 earnings call on November 6, 2008. The document provides a cautionary statement regarding forward-looking statements made on the call. It notes that while Charter believes its plans, intentions and expectations are reasonable, actual results could differ materially due to risks and uncertainties. It lists some key risk factors that could cause results to differ from forward-looking statements.
charter communications 3Q_2008_Earnings_Presentation_vFINALfinance34
Charter Communications held its third quarter 2008 earnings call on November 6, 2008. The document provides a cautionary statement regarding forward-looking statements made on the call. It notes that while Charter believes its plans, intentions and expectations are reasonable, actual results could differ materially due to risks and uncertainties. The document lists some key risk factors that could cause actual results to differ from forward-looking statements.
This document is a proxy statement from Charter Communications providing information about the company's upcoming annual shareholder meeting. It details that shareholders will vote on the election of one Class A/Class B director and provides information about voting procedures. The sole nominee for the Class A/Class B director position is Ronald L. Nelson. The proxy statement also provides details about the meeting such as the voting eligibility requirements, proxy voting instructions, how to attend the meeting, and who is paying for the solicitation of proxies.
Charter's broadband network provides the capacity to deliver high-speed internet access, digital video services, and interactive programming to millions of customers. Upgrading systems to broadband allows Charter to offer customers more choices through new digital services while generating new revenue streams. Charter is well-positioned for continued growth and success as the demand for broadband services increases and more applications are developed that utilize the network's massive bandwidth.
Charter Communications is the fourth largest cable television operator in the United States, serving over 6 million customers across 11 regions. The company believes that cable broadband will be the primary means of delivering new services like video, data, and voice to homes and businesses. Charter aims to deliver the full potential of broadband and provide superior customer service. The company has grown through 32 acquisitions since 1994 and successfully integrates new systems by empowering local managers and improving technology and marketing.
This document is a proxy statement from Charter Communications providing information about voting at the company's upcoming annual shareholder meeting. It outlines the items to be voted on including electing one Class A/Class B director, ratifying the 1999 Option Plan, and approving the 2001 Incentive Plan. It provides details on shareholder voting eligibility, the director nomination process, and vote requirements for passing each proposal. Shareholders are asked to vote by proxy in advance of the meeting.
- The document is Charter Communications' 2001 proxy materials and 2000 financial report. It includes information about the upcoming annual shareholder meeting such as voting procedures, director nominees, and proposals to be voted on.
- Shareholders will vote on the election of one Class A/Class B director, ratification of the 1999 Option Plan, and approval of the 2001 Incentive Plan.
- The proxy statement provides details on voting procedures, who is eligible to vote, what votes are required to pass each item, and how to complete and submit proxy cards.
Charter Communications had a very successful year in 2000:
1) They exceeded their ambitious financial goals, achieving significant revenue and cash flow growth through acquisitions and expansion of their broadband network and advanced services.
2) They reached over 1 million digital cable customers, accelerated their broadband network buildout, and were recognized as industry leaders in key performance metrics.
3) Looking ahead, Charter plans to continue growing organically and through acquisitions to attract more customers and capitalize on their technological lead in interactive digital services delivered over their high-speed broadband network.
This document is the proxy statement and financial report from Charter Communications for 2002. It provides information on the annual shareholder meeting, including the election of one Class A/Class B director by the combined vote of Class A and B shareholders. It also includes details on ratifying the appointment of KPMG LLP as the independent auditor. Additional sections provide information on executive compensation, ownership of shares, related party transactions, and the financial report for 2001.
This document is the 2002 proxy materials and 2001 financial report for Charter Communications, Inc. It includes information such as the notice of annual meeting, proxy statement, executive compensation details, and financial reports. Shareholders are being asked to vote on the election of one Class A/Class B director and the ratification of the appointment of KPMG LLP as the independent public accountants. The sole holder of Class B shares will vote for the seven other director nominees. A plurality vote is required for the director election and a majority vote is required to ratify the appointment of the public accountants.
Charter Communications experienced significant growth and transformation in 2001. It ended the year with over 2.1 million digital cable customers and 607,700 high-speed cable modem customers. Charter also expanded its interactive television offerings and modernized its network monitoring and customer service centers. Going forward, Charter aims to fully leverage its high-speed broadband network to deliver digital video, high-speed internet, and interactive television services.
The document is a proxy statement for the annual meeting of shareholders of Charter Communications, Inc. It provides details on voting matters for the meeting, including:
- Election of one Class A/Class B director from the nominee Nancy B. Peretsman.
- Voting on amendments to increase shares under the company's stock incentive plan and allow repricing of stock options.
- Ratiification of KPMG LLP as the company's independent auditors.
It provides instructions on how to vote by proxy or in person and answers frequently asked questions about the voting process. The meeting will be held on July 23, 2003 in Seattle, Washington.
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
2. Net Revenues Operating Income Net Income
($ billions) ($ millions) ($ millions)
7.0 1,200 700
6.0 600
1,000
5.0 500
800
4.0 400
600
3.0 300
400
2.0 200
200
1.0 100
0 0 0
02 03 04 05 06 02 03 04 05 06 02 03 04 05 06
% % %
11 18 18
5-Year CAGR 5-Year CAGR 5-Year CAGR
Financial Highlights
YEAR ENDED DEC E M B E R 3 1
in millions, except per share data
2006 2005 % Increase
Net Revenues $6,269 $5,457 14.9%
Operating Income 1,128 1,008 11.9%
Net Income 626 573 9.2%
Net Earnings Per Diluted Share 3.14 2.79 12.5%
Information is for continuing operations.
3. Growing and Caring Through Leadership
Quest Diagnostics is the leading provider of diagnostic testing,
information and services in the nation, with the industry’s most
extensive menu of lab tests. We touch the lives of patients
more than 150 million times a year.
• We have the courage to lead by continuing to raise the bar on quality,
innovation and the service we provide to patients, physicians, hospitals
and payers.
• We have compassion for our patients, and this is at the center of every-
thing we do.
• Our commitment to profitable growth creates benefits for our share-
holders and opportunities for our employees.
These are the behaviors we embrace every day as
we continue to drive toward fulfilling our mission:
To be the undisputed world leader in diagnostic
testing, information and services.
Quest Diagnostics 2006 Annual Report — page 1
4. TO OU R S H A R E H O L D E R S , E M P L O Y E E S CUSTOM ER S :
AND
2006 was a year of outstanding performance for Quest Diagnostics.
We enhanced our value proposition to patients, physicians, hospitals
and payers, and we reported strong financial performance.
Among the many highlights of our 2006 financial performance:
• Revenues grew 15% to $6.3 billion;
• Earnings per share grew 13% to $3.14, despite a reduction of 9% in
2006 associated with accounting changes and special charges; and
• Cash from operations reached $952 million, an increase of $100
million from 2005.
We drove strong organic revenue growth and increased profitability.
We are proud to be the undisputed leader in a dynamic industry that
provides a critical healthcare service to doctors and patients. Advances
in technology are increasing the relevance of diagnostic testing, while
enabling us to make it less painful and more convenient than ever. New
diagnostic markers are helping doctors do a better job of diagnosing,
monitoring and treating disease. Miniaturization is enabling diagnostic
testing devices to move closer to the patient, whether in the doctor’s
office or at the patient’s bedside. Tests once reserved exclusively for
specialized esoteric laboratories are starting to be performed by labs
within hospitals.
Surya N. Mohapatra, Ph.D.
CHAIRMAN, PRESID ENT AND
CHIEF EXECUTIV E OFFIC ER
page 2
5. As advances are made in diagnostic testing and It is clear that 2007 will be a year of transition;
services, our industry is undergoing dramatic however, we expect to return to both top- and
change brought on by broad shifts in the bottom-line growth in 2008.
healthcare sector. Health plans have consolidated,
A Successful Strategy
creating integrated enterprises with greater pur-
chasing power. Our industry is fragmented, and Our strategy is based on three simple but pro-
competition is fierce. As a result, pricing pressure found words—Patients, Growth and People. We
is heightened and will continue, at least through remain deeply committed to improving the overall
the end of 2007. patient experience, driving growth and facilitating
the success of our colleagues. The opportunities
Courage, Compassion, Commitment we see are limitless.
In the face of these challenges, we have the cour-
We are making it easier and more convenient
age to lead by holding fast to the values that have
for patients to be tested. For example, in many
made us the leader. Our compassion for the
locations, we have enabled patients to make
patient is at the core of what we do. It compels
appointments for testing online. Based on the ini-
us to constantly enhance quality and innovate.
tial success, we are expanding this initiative com-
And we have a commitment to growth that
pany wide. Our emphasis on establishing “Gold
creates benefits for customers, opportunities for
Standards” for customer service and training our
employees and increased value for shareholders.
frontline employees who interact with patients
In the pages that follow, we show the ways that our
and physicians has resulted in improved patient
company and our people embody these behaviors.
satisfaction scores.
In late 2006 we announced that we were unable
We continue to lead the way with important new
to come to terms with UnitedHealthcare, which
tests for cancers, infectious disease and cardio-
represented approximately 7% of our revenues.
vascular disease. We introduced an important
150 Million
We had historically enjoyed a strong relationship
new cancer test to identify cancers of unknown
with United as its largest laboratory provider,
primary origin. We expanded our Leumeta™ family
serving 12 million patients. When United issued a
of cancer tests, which use blood plasma instead of
request for bids, we met their requirement to help
painful bone marrow biopsies to assess leukemia
PATIENT ENCOUNT ERS
them reduce overall lab costs. And we continued to
and lymphoma.
expand access and service for patients and doctors. in 20 0 6
During 2006, we acquired both Enterix, which
However, they insisted on unreasonable and uni-
makes the InSure™ colorectal cancer screening
lateral terms that would have been irresponsible
test, and Focus Diagnostics, a recognized world
of us to accept. In the long term, this was the right
leader in infectious disease testing.
thing to do for our shareholders and our industry.
We are excited to acquire the worldwide rights to
Ever since we announced the United contract loss
the InSure test for colorectal cancer screening.
in October 2006, we have been working to retain
Colorectal cancer is the third most common form
United physicians and patients. United has threat-
of cancer in the U.S. and is often curable when
ened financial penalties for doctors who choose
detected early. We have seen how a simple, non-
Quest Diagnostics. This is unprecedented and is
invasive annual test such as InSure can have a
influencing physician behavior.
profound impact on early detection. We see an
opportunity to help patients around the world
screen for colorectal cancer at an early stage when
the disease is most treatable.
Quest Diagnostics 2006 Annual Report — page 3
6. Net Earnings Per Diluted Share *
(in dollars)
3.50
3.5
3.00
3.0
2.50
2.5
2.00
2.0
1.50
1.5
1.00
1.0
0.50
0.5
%
31
10-Year CAGR
0
0.0
97 98 99 00 01 02 03 04 05 06
Focus Diagnostics has been recognized world- We are continuously improving our value propo-
wide for its leadership in infectious and immuno- sition to both physicians and hospitals through
logic diseases such as herpes, SARS and avian flu, advanced healthcare information technology.
and its expertise in developing new diagnostics. Today, more than 100,000 doctors use our
Focus also has a unique capability to perform Care360 Physician Portal for real-time lab results
testing for the effectiveness of vaccines under and patient-centric reports, as well as to connect
development. Focus will further expand our to other medical professionals. The Care360
capabilities and strengthen our position as the Physician Portal also enables physicians to review
leading provider and developer of esoteric tests a patient’s medication history, clinical notes and
to hospitals and physicians. messages from other physicians. The physician
can also electronically prescribe medications right
We are driving organic growth in diagnostic test-
from the patient chart, reviewing many drug-to-
ing by continuing to leverage our sales, service
drug and allergy-to-drug interactions and sending
and science. We have created specialized sales
the prescription directly to a local pharmacy or
organizations to serve medical specialists and
pharmacy benefit management company.
to provide information technology services and
genetic testing.
Because It Matters
We are working with large health plans to under- All labs are not the same. Our firm belief is that a
stand and meet their needs using our considerable laboratory test is not a commodity. Someone’s life
capabilities. While price is always an important depends on the results. Our job is to provide
element for any health plan, it is still only one of a accurate and timely results to physicians and ensure
number of elements, including quality, service, that our patients are treated with care and com-
1,350% Increase access and convenience that add up to a unique passion. Our commitment to service, quality, con-
experience for patients, doctors and payers. We venience and innovation is how we distinguish
are helping health plans improve patient care ourselves every day with doctors and patients.
and reduce overall healthcare spending through
STOCK PRICE APPRECIATION Our industry is not ranked on service metrics by
collaborations to screen health plan members for
since 1997 independent firms. So we commissioned Nation-
colorectal cancer using our proprietary InSure
al Analysts Worldwide, a well-known market re-
test and increase the use of e-prescribing using
search firm, to survey physicians to find out if
our Care360™ Physician Portal. Early in 2007, we
they had a preference between the two largest na-
renewed our long-term relationship with Aetna
tional laboratories. The majority of physicians
based on the access we provide to high-quality,
expressed a preference for one of the labs. Among
cost-effective lab services.
those with a preference, doctors overwhelmingly
Hospital testing represents another major oppor- chose Quest Diagnostics over our largest national
tunity. Today we are the world’s largest laboratory competitor.1 Additionally, doctors rated Quest
serving hospitals, and we are poised to continue Diagnostics higher on every one of the 11 metrics
to grow this business. Hospitals appreciate our in the survey.
ability to combine the quality and expertise of
Doctors appreciate the “Quest Diagnostics differ-
our world-renowned Nichols Institute esoteric
ence,” and we want everyone to know why. We
testing laboratories with the logistics and customer
launched our first national image campaign,
service capabilities of Quest Diagnostics.
*This measure excludes special charges and reflects adjustment for the 2002 change in goodwill accounting. A reconciliation of this measure to the
most directly comparable measure under generally accepted accounting principles can be found after the 2006 Annual Report on Form 10-K.
The survey queried a nationally representative sample of general and family practitioners, internists, obstetricians and gynecologists who have
1
had experience with both Quest Diagnostics and LabCorp over the six months ended in January, 2007.
page 4
7. which has been an important element in our effort perform more esoteric tests in-house that once
to build our brand and raise awareness directly were the exclusive province of the specialized
with patients, physicians, hospitals and payers. esoteric testing laboratory.
Another way we raise awareness of the value of This market is in its early stages and is growing
diagnostic testing is by using our large database rapidly. To help us meet growing demand, early in
of test results to identify broad health trends. 2007 we acquired HemoCue, a leading global
During 2006 we issued the Quest Diagnostics provider in near-patient testing for hemoglobin.
Health Trends Diabetes Report, which found that HemoCue builds on our previous acquisitions of
between 2001 and 2005 people with diabetes who Focus Diagnostics and Enterix. We are using our
visit health professionals appeared to be doing a relationships with physicians to enter near-
better job of managing their disease over time. patient testing.
The global market for diagnostic testing is large,
Visualizing the Future
highly fragmented and growing. The emerging
It has been 10 years since our company was spun
middle class in many developing countries has both
out as an independent company by Corning
the desire and ability to pay for diagnostic tests.
Incorporated. During the past decade, we have
Quest Diagnostics has the expertise, resources and
learned that leading change is one of the most
discipline required to cultivate strong business in
challenging things our company can do, but we
these regions. Moreover, we have the experience
have also proved that it can also be one of the most
to help shape the diagnostic testing industry in
rewarding. A $10,000 investment in Quest
emerging markets, thereby gaining a solid foot-
Diagnostics in January 1997 was worth approxi-
hold and a strong competitive stance.
mately $145,000 at the end of 2006. During that
time, revenues have grown from $1.5 billion to Today we have one strong growth platform based
$6.3 billion, and we have joined the Fortune 500, on diagnostic testing services. Near-patient testing
S&P 500 and Dow Jones Sustainability World Index. products and international services will provide
>100,000
two new areas for growth which will be important
I strongly believe that our greatest achievements
contributors for our future. We will be helping
lie ahead. We are the leader in a growing industry
more patients and more doctors more often in
Registered
with only 13% of the overall market. We will take a
more places.
strong company and make it stronger. Our primary
Physician Users
focus is to grow and strengthen our clinical diag- We have a proven strategy based on Patients,
nostic testing business by focusing on opportunities Growth and People. We have the financial strength
in cancer testing and esoteric clinical testing. At to execute our strategy and position ourselves for
OF CARE360 PATIENT-CENTRIC
the same time, we are beginning to develop new sustainable growth. We have the courage to lead,
PHYSICIAN PORTAL
areas for growth in near-patient testing and inter- the compassion for our patients and an unwavering
national diagnostic testing services. commitment to growth.
We are responding to important industry trends. I am excited about the future and the opportuni-
Technology is enabling diagnostic testing to take ties that lie ahead. Thank you for your continued
place closer than ever to the patient. Imagine support and your confidence as we begin our
bringing diagnostic testing to remote locations second decade.
around the world where electricity is scarce and
Take care,
professional medical care even more so. Physi-
cians are using advanced technology to conduct
tests in their offices and at patient bedsides.
Patients are taking more responsibility for their
Surya N. Mohapatra, Ph.D.
personal health, and they want faster answers to
Chairman, President and Chief Executive Officer
medical questions. And hospitals are now able to
Quest Diagnostics 2006 Annual Report — page 5
8. courage
We have the Courage to Lead
As the leader, we have the courage to continually strive to provide the highest quality service to
our patients and physicians. We are relentless in enhancing the quality and technology of the
testing services we offer, making it easier and more convenient for patients to get tested using
innovative diagnostics and information technologies.
page 6
9. It takes courage to lead the way toward improving healthcare outcomes for patients. We pioneered the application of Six Sigma prin-
ciples to the healthcare services field in 2000, and have enhanced quality and driven efficiency throughout the company.
We continue to deliver superior service to physicians and hospitals. Our extensive logistics network ensures timely and reliable pick-
ups of specimens by our own couriers so that our laboratories can deliver timely results to doctors—most by the next morning. In
addition, our more than 500 M.D.s and Ph.D.s are available to consult with our physician customers on difficult or unusual cases.
Our emphasis on bringing new tests and technologies to market helps doctors manage their patients better and is driving growth
today. An example of our innovation is our comprehensive menu of tests related to women’s health issues. These include advanced
maternal screening panels for mental retardation and genetic birth defects, an assay to identify pregnant women who are not at risk
for pre-term delivery, and a new breast cancer recurrence test that can guide physicians to make more informed post-operative treat-
ment decisions for their patients. By having the courage to drive innovation, we have built a strong development pipeline for women’s
health, which currently includes tests to help determine infertility causes, diagnose and manage post-menopausal symptoms and
develop improved methods to automate the process used to identify carriers of the Fragile X gene.
Quest Diagnostics 2006 Annual Report — page 7
10. compassi
We have Compassion for Patients
We are drawn to healthcare because we have compassion for our patients. We make a meaningful
difference in our patients’ lives by offering easier testing alternatives, accurate clinical results
and an extraordinary level of service.
page 8
11. on
While diagnostic testing is vital to patient care, we are acutely aware that having your blood drawn can be uncomfortable, stressful
and even painful. Our phlebotomists understand that and constantly strive to improve the overall patient experience. During 2006
Quest Diagnostics introduced a number of service enhancements. We reduced waiting times and improved the patient experience in
our patient service centers by piloting an appointment scheduling capability, making it easier for patients to get tested. We plan to
make scheduling available to all locations in 2007.
At the same time, we continue to offer a menu of test alternatives designed to minimize pain and reduce “anxiety” time. We developed
our Leumeta family of plasma-based tests so that leukemia and lymphoma patients could one day avoid the need to undergo painful
bone marrow biopsies. We introduced a saliva-based specimen collection kit for cystic fibrosis carrier testing. And our ImmunoCAP®
allergy blood test avoids the need for a sometimes painful scratch test to accurately determine if a patient has one of hundreds of
specific allergies that can lead to asthma and other allergy-related diseases. This often enables primary care practitioners, pediatri-
cians and allergists to help their patients early by identifying allergies before turning to treatment options.
The compassion our employees have for patients isn’t limited to their workday. Quest Diagnostics donates free testing services to
charitable clinics around the country. In addition, our employees give generously of their time through our company’s employee vol-
unteer organization, Reach, to help patients in the communities where we live and work.
Quest Diagnostics 2006 Annual Report — page 9
12. commitm
We have the Commitment to Grow
We are deeply committed to driving growth. Diagnostic testing is central to what we do, and
we continually seek new ways to expand and enhance that business. At the same time we
are finding innovative ways to use our extensive resources to expand into related areas that
represent new market opportunities.
page 10
13. ent
The foundation for our growth strategy is simple: to use our capabilities to find new ways to improve patient care. With this as our
guideline, we pursue a combination of organic growth and acquisitions to provide differentiated tests, services and technologies. We
are committed to bringing our unique expertise to help more patients in more locations around the world. Our emphasis on bringing
new tests and technologies to market helps doctors manage their patients better and is driving growth today.
Our greatest asset is our people, and we are fortunate to have the best in the industry. We seek to hire people who have a genuine pas-
sion for helping others. We develop our employees by providing them with specialized training programs, like IntelliQuest, and make
them Ambassadors for the company by giving them value-added benefits like our proprietary Blueprint for Wellness™ health risk
assessment. The results of our efforts are truly outstanding: Our employees are a strong and deeply committed group of individuals
who consistently strive to go above and beyond to improve the lives of patients.
Quest Diagnostics 2006 Annual Report — page 11
14. PATIENTS
PHYSICIANS
HOSPITALS
PAYERS
because it matters.
EMPLOYERS
LIFE INSURERS
PHARMACEUTICAL COMPANIES
Our Customers
At Quest Diagnostics, we touched the lives of patients more than 150 million times in 2006,
offering them vital insights and answers regarding their health. We achieve this extraordinary reach
by leveraging our powerful infrastructure and knowledge base to help improve health outcomes in
every way we can.
We partner with hospitals to perform highly specialized testing and to provide expert laboratory man-
agement services that benefit from our expertise in Six Sigma quality and next-generation information
technology. Physicians select Quest Diagnostics more often than any other lab in the nation because
we consistently give them fast, reliable results in a clear format. Payers choose Quest Diagnostics
because we offer the industry’s broadest test menu, combined with a network of 2,100 patient service
centers and the critical mass necessary to serve the needs of their customer networks. Major employers
rely on us for routine drug testing, as well as for comprehensive wellness testing and health assess-
ments for their employees. Life insurance companies turn to Quest Diagnostics for risk assessments
for candidates for insurance, while pharmaceutical companies engage us to perform clinical trials
testing required to secure regulatory approval of new products.
We work hard to offer each of our customer groups compelling advantages that align with their unique
needs. Yet, they all choose Quest Diagnostics for the same core reason—because the quality, speed
and accuracy of the diagnostic testing we perform matters very much to the patients we serve.
For more information please visit www.mylabisquest.com
page 12
15. Randy Hale
The American Cancer Society estimates that 90 percent of colorectal cancers are curable with early
detection, and yet, colorectal cancer remains the third most common cancer and second leading
L AND SURV E YOR AND
cause of cancer death in the United States, claiming an estimated 55,000 lives each year. Randy Hale
COLON CANC ER SURVIVOR
is one of those who caught the disease early, thanks to Quest Diagnostics’ patient-friendly InSure test.
Englewood, Colorado
Faster and easier to complete than traditional colorectal cancer screening tests, InSure is also highly
accurate. Randy completed his test as a part of a routine annual physical, and was stunned when it
revealed bleeding from his colon—a finding that quickly led to the discovery of four polyps, including
one that was cancerous. Because the condition was caught early, the polyps were successfully removed
with no need for follow-up chemotherapy or radiation. For Randy’s part, the story sharply underscores
the importance of wellness testing. “I had no medical complaints, no reason for concern at all, so I
was shocked when my InSure test showed I had colon cancer symptoms,” he says. “I owe my life to
early detection.”
“The InSure test had clear instructions and was easy to complete. Using it ultimately saved my
life. People should know that taking the InSure test is a simple process that can help them catch
disease early and live longer, healthier lives.”
Quest Diagnostics 2006 Annual Report — page 13
16. Eddie Quaas
When eight-year-old Eddie Quaas fell into a deep sleep in the middle of the afternoon one day, his
mother, Joni, had an uneasy feeling. Within days, her worst fears were realized, as Eddie was diag-
F O U R T H – G R A D E S T U D EN T
nosed with cancerous childhood medulloblastoma, a type of brain tumor. Eddie braved surgery, fol-
AND BUDDING ARTIST lowed by six weeks of radiation treatment and 14 months of chemotherapy, which required him to
with Quest Diagnostics have weekly or biweekly blood counts for 18 consecutive months. This intensely difficult period in the
Phlebotomist Mona Carrico Quaas family’s life was made easier through their relationship with Quest Diagnostics phlebotomist
Mona Carrico. Joni explains, “When Eddie first came to Mona, she took time to get to know him,
Belleville, Illinois
patiently explained the blood draw procedure in a step-by-step fashion, and made it as painless as pos-
sible. Their bond developed from there.” For the next year and a half, Eddie’s family went out of their
way to see Mona for every one of Eddie’s required blood draws. Mona, in turn, helped reduce their
waiting time and met them with understanding and kindness at every point of interaction. Their
friendship transcended traditional boundaries. Mona started each visit by asking Eddie about his
week. Eddie brought Mona candy on Valentine’s Day. And when Eddie’s parents hosted an art show
party to celebrate the end of his chemotherapy, Mona was the first person he invited. Eddie beamed
with pride as he introduced her to his friends and family as his “favorite phlebotomist”—a title that
Mona considers the greatest honor of her career.
“When Eddie was diagnosed with cancer, I told myself I would do everything I could to make his
life as normal and positive as possible. Going to Quest Diagnostics made such a difference. Mona
made sure Eddie never had to dread the countless blood draws, and her friendship became one
of the real bright spots in his treatment.” —Joni Quaas, Eddie’s Mom
page 14
17. Jo Yvette Pelfrey, M.D.
We are committed to harnessing advanced technology to enable physicians to deliver the best possible
care to their patients. Our Care360 Physician Portal is a powerful tool in this effort, as Dr. Yvette Pelfrey
SPECIALIST IN INTERNAL
attests. “I’m part of an active and well-established practice that recently started using Care360,” says
MEDICINE AND CARE360 USER
Dr. Pelfrey. “It has already transformed the way our office operates, positioning us to deliver even bet-
Kettering, Ohio
ter patient care.” Care360 gives physicians electronic access to a wealth of patient data, allowing for a
comprehensive, 360-degree view of what each patient needs. “There are many advantages to using
Care360, but the benefits to my patients far outweigh anything else. I can prescribe medication elec-
tronically, so my patients get it faster, and I can view a complete record of each patient’s history and
meds, which prevents confusion and gives me valuable insight,” explains Dr. Pelfrey. Care360 also
offers administrative benefits, reducing the need for paper records, decreasing errors and streamlin-
ing office functions. “Our staff is spending less time with paper and more time with patients,”
Dr. Pelfrey confirms. “And that’s only the start.”
“Care360 has already put us three steps ahead of where we were in several critical areas—from
reviewing patient histories and prescribing medicines, to accessing test results, tracking medical
progress and expediting billing issues. Using this technology is a responsible decision for our patients,
a smart move for our business, and a stepping stone to the future for our practice.”
Quest Diagnostics 2006 Annual Report — page 15
18. B OA R D DI R E C T O R S
OF
John C. Baldwin, M.D. Jenne K. Britell, Ph.D. William F. Buehler
President and Chief Executive Officer Chairman and Chief Executive Officer Retired Vice Chairman
CBR Institute for Biomedical Research Structured Ventures, Inc. Xerox Corporation
Boston, Massachusetts Santa Fe, New Mexico Stamford, Connecticut
William R. Grant Rosanne Haggerty Surya N. Mohapatra, Ph.D. Gary M. Pfeiffer
Chairman Founder and President Chairman, President and Retired Senior Vice President and
Galen Associates Common Ground Community Chief Executive Officer Chief Financial Officer
New York, New York New York, New York Quest Diagnostics Incorporated E. I. du Pont de Nemours
Lyndhurst, New Jersey and Company
Wilmington, Delaware
Dan C. Stanzione, Ph.D. Gail R. Wilensky, Ph.D. Jack B. Ziegler
President Emeritus John Olin Senior Fellow Retired President
Bell Laboratories Project HOPE Worldwide Consumer Healthcare
Lucent Technologies Incorporated Bethesda, Maryland GlaxoSmithKline plc
Murray Hill, New Jersey Philadelphia, Pennsylvania
E X ECU T I V E OF F ICE R S COR POR AT E OF F ICE R S
Surya N. Mohapatra, Ph.D. Robert E. Peters Catherine T. Doherty Joan E. Miller, Ph.D.
Chairman, President and Vice President, Vice President, Vice President,
Chief Executive Officer Sales and Marketing Office of the Chairman Hospital Business
W. Thomas Grant II Michael E. Prevoznik Kenneth R. Finnegan David W. Norgard
Senior Vice President, Senior Vice President and Vice President, Vice President,
Insurance and Employer Services General Counsel International Human Resources
Robert A. Hagemann David M. Zewe Mary Hall Gregg, Ph.D. Laure E. Park
Senior Vice President and Senior Vice President, Vice President and Vice President,
Chief Financial Officer Diagnostic Testing Operations Chief Information Officer Investor Relations
Richard A. Mahoney Joyce G. Schwartz, M.D.
Vice President, Vice President and
Healthcare Information Solutions Chief Laboratory Officer
page 16
19.
20. UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-K
Annual Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Fiscal Year Ended December 31, 2006
Commission File Number 001-12215
Quest Diagnostics Incorporated
1290 Wall Street West, Lyndhurst, NJ 07071
(201) 393-5000
Delaware
(State of Incorporation)
16-1387862
(I.R.S. Employer Identification Number)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Each Exchange on Which Registered
Common Stock, $.01 par value per share New York Stock Exchange
None
Securities registered pursuant to Section 12(g) of the Act:
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes X No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Exchange Act. Yes No X
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained
herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K. [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated
filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer X Accelerated filer Non-accelerated filer
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes No X
As of June 30, 2005, the aggregate market value of the approximately 166 million shares of voting and non-voting
common equity held by non-affiliates of the registrant was approximately $8.8 billion, based on the closing price on
such date of the registrant’s Common Stock on the New York Stock Exchange.
As of February 21, 2007, there were outstanding 193,621,717 shares of Common Stock, $.01 par value per share.
Documents Incorporated by Reference
Part of Form 10-K into
Document which incorporated
Portions of the registrant’s Proxy Statement to be filed by April 28, 2007 . . . . . . . . . Part III
Such Proxy Statement, except for portions thereof, which have been specifically incorporated by reference, shall not be
deemed “filed” as part of this report on Form 10-K.
22. Item 1. Business
Overview
We are the nation’s leading provider of diagnostic testing, information and services, providing insights that
enable physicians and other healthcare professionals to make decisions to improve health. We offer patients and
physicians the broadest access to diagnostic laboratory services through our nationwide network of laboratories
and our owned patient service centers. We provide interpretive consultation through the largest medical and
scientific staff in the industry, with more than 500 M.D.’s and Ph.D.’s around the country. We are the leading
provider of esoteric testing, including gene-based testing and the leading provider of testing for drugs of abuse.
We are also a leading provider of anatomic pathology services, testing for clinical trials and risk assessment
services for the life insurance industry. We empower healthcare organizations and clinicians with state-of-the-art
information technology solutions that can improve patient care and medical practice.
During 2006, we generated net revenues of $6.3 billion and processed approximately 151 million requisitions
for testing. Each requisition form accompanies a patient specimen, indicating the tests to be performed and the
party to be billed for the tests. Our customers include patients, physicians, hospitals, employers, governmental
institutions and other commercial clinical laboratories.
We operate a nationwide network of greater than 2,100 of our own patient service centers, principal
laboratories located in more than 30 major metropolitan areas throughout the United States and approximately
150 smaller “rapid response” laboratories (including, in each case, facilities operated at our joint ventures). We
provide full esoteric testing services, including gene-based testing, on both coasts through our Quest Diagnostics
Nichols Institute laboratory facilities, located in San Juan Capistrano, California and Chantilly, Virginia, as well
as infectious and immunologic disease testing through our Focus Diagnostics (“Focus Diagnostics”) laboratory
facility, located in Cypress, California. We also have laboratory facilities in Mexico City, Mexico, San Juan,
Puerto Rico and Heston, England.
We are a Delaware corporation. We sometimes refer to our subsidiaries and ourselves as the “Company” or
“Quest Diagnostics”. We are the successor to MetPath Inc., a New York corporation that was organized in 1967.
From 1982 to 1996, we were a subsidiary of Corning Incorporated, or Corning. On December 31, 1996, Corning
distributed all of the outstanding shares of our common stock to the stockholders of Corning. In August 1999, we
completed the acquisition of SmithKline Beecham Clinical Laboratories, Inc., or SBCL, which operated the
clinical laboratory business of SmithKline Beecham plc, or SmithKline Beecham.
Our principal executive offices are located at 1290 Wall Street West, Lyndhurst, New Jersey 07071,
telephone number: (201) 393-5000. Our filings with the Securities and Exchange Commission, or the SEC,
including our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and
amendments to those reports, are available free of charge on our website as soon as reasonably practicable after
they are filed with, or furnished to, the SEC. Our website is www.questdiagnostics.com.
The United States Clinical Laboratory Testing Market
Clinical laboratory testing is an essential element in the delivery of healthcare services. Physicians use
laboratory tests to assist in the detection, diagnosis, evaluation, monitoring and treatment of diseases and other
medical conditions. Clinical laboratory testing is generally categorized as clinical testing and anatomic pathology
testing. Clinical testing is performed on body fluids, such as blood and urine. Anatomic pathology testing is
performed on tissues, including biopsies, and other samples, such as human cells. Many clinical laboratory tests
are considered routine and can be performed by most commercial clinical laboratories. Tests that are not routine
and that require more sophisticated equipment and highly skilled personnel are considered esoteric tests. Esoteric
tests, including gene-based tests, are generally referred to laboratories that specialize in performing those tests.
We estimate that the United States clinical laboratory testing market had approximately $45 billion in annual
revenues in 2006. Most laboratory tests are performed by one of three types of laboratories: commercial clinical
laboratories; hospital-affiliated laboratories; and physician-office laboratories. In 2006, we believe that hospital-
affiliated laboratories accounted for approximately 60% of the market, commercial clinical laboratories
approximately one-third and physician-office laboratories the balance.
Orders for laboratory testing are generated from physician offices, hospitals and employers. As such, factors
including changes in the United States economy which can affect the number of unemployed and uninsured, and
design changes in healthcare plans which impact the number of physician office and hospital visits, can impact
the utilization of laboratory testing.
23. The diagnostic testing industry remains fragmented and highly competitive. Government payers, such as
Medicare (which principally serves patients 65 years and older) and Medicaid (which principally serves indigent
patients), as well as private payers and large employers, continue to take steps to control the cost, utilization and
delivery of healthcare services, including clinical laboratory services. We expect reductions in reimbursement
from Medicare and Medicaid will continue to be implemented from time to time. The continuing consolidation
among healthcare insurers has resulted in fewer but larger insurers with significant bargaining power to negotiate
fee arrangements with healthcare providers, including clinical laboratories. See “Recent Changes in Payer
Relationships” and “Payers and Customers – Healthcare Insurers”.
While the diagnostic testing industry in the United States will be impacted by a number of factors and may
continue to experience intensified pricing pressure in the near term, we believe it will continue to grow over the
long term as a result of the following:
• the growing and aging population;
• continuing research and development in the area of genomics (the study of DNA, genes and
chromosomes) and proteomics (the analysis of individual proteins and collections of proteins), which is
expected to yield new, more sophisticated and specialized diagnostic tests;
• increasing recognition by consumers and payers of the value of laboratory testing as a means to improve
health and reduce the overall cost of healthcare through early detection and prevention; and
• increasing affordability of, and access to, tests due to advances in technology and cost efficiencies.
Quest Diagnostics, as the largest clinical laboratory testing company with a leading position in most of its
domestic geographic markets and service offerings, is well positioned to benefit from the long-term growth
expected in the industry.
Corporate Strategy and Growth Opportunities
Our mission is to be the undisputed world leader in diagnostic testing, information and services. We focus
on Patients, Growth and People to help achieve our goals.
Patients are at the center of everything we do. Increasingly, patients and their doctors have a choice when it
comes to selecting a healthcare provider, and we strive to give them new and compelling reasons to put their
trust in us. We differentiate our Company to patients and doctors by:
• Providing the Highest Quality Services and a Unique Patient Experience: We strive to provide the highest
quality in all that we do including: phlebotomy and specimen transport services; analytical testing
processes in our laboratories; accurate and timely lab reports; and billing information. We use Six Sigma
and Lean processes to continuously reduce defects, enhance quality, and further increase the efficiency of
our operations. Six Sigma is a management approach that utilizes a thorough understanding of customer
needs and requirements, root cause analysis, process improvements and rigorous tracking and measuring to
enhance quality. Lean streamlines processes and eliminates waste. We also use Six Sigma and Lean
principles to help standardize operations and processes across our Company and identify and adopt
company best practices. Our phlebotomists are specially trained to provide a unique patient experience.
Patients are served at our patient service centers within 20 minutes, on average, and even faster where we
have deployed our automated appointment scheduling.
• Offering Unparalleled Access and Distribution: We offer the broadest test menu and national access to
testing services, with facilities in substantially all of the major metropolitan areas in the United States. Our
test menu includes more than 3,000 tests. We operate a nationwide network of greater than 2,100 of our
own patient service centers, principal laboratories located in more than 30 major metropolitan areas
throughout the United States and about 150 smaller “rapid response” laboratories that enable us to serve
patients, physicians, hospitals, employers and other healthcare providers throughout the United States. We
also operate approximately 65 locations in the United States and Canada where we provide paramedical
examinations. We believe that customers seek to utilize laboratory-testing providers that offer a
comprehensive range of tests and services and the most convenient access to those services.
Growth is driven organically and through acquisition. Over the long term, we expect to grow organically at
or above the industry growth rate by gaining more customers and selling more to existing customers. Historically,
our industry has focused primarily on service levels and aggressive pricing to drive organic volume growth. We
believe that the differentiation we are creating through our focus on Six Sigma quality, unparalleled access and
distribution, the most comprehensive test menu and innovative test and information technology offerings provides
us with a competitive advantage and enables us to compete on more than price alone. Additionally, we are
2
24. investing in sales and marketing, providing the sales force with better tools and training and adding innovative
new products to sell. We are specifically focused on driving profitable organic growth in higher-growth areas by
being a leading innovator. Our principal areas of focus include:
• Physician Sub Specialties: While we provide a strong value proposition in routine and esoteric clinical
testing, we have not been the provider of choice for the testing needs of certain physician specialists.
During 2006, we enhanced our test menu and service capabilities to more effectively compete in several
physician sub specialties, including urology, gastroenterology, hematology and oncology, where we have
had a smaller market share. We plan to continue to enhance our test menu and service capabilities in
these areas as well as in dermatology. We have also been enhancing our esoteric anatomic pathology
capabilities and service offerings and have added specially trained sales representatives to service
pathologists in hospitals as well as hematology/oncology offices.
• Innovation Leadership: We intend to build upon our reputation as a leading innovator in the clinical
laboratory industry by continuing to introduce new tests, technology and services. As the industry leader
with the largest and broadest network and the leading provider of esoteric testing, we believe that we are
the best partner for developers of new technologies and tests to introduce their products to the
marketplace. Through our relationships with the academic community, pharmaceutical and biotechnology
firms and emerging medical technology companies that develop and commercialize novel diagnostics,
pharmaceutical and device technologies, we believe that we are one of the leaders in transferring technical
innovation to the market. Our innovation activities are focused on:
- Gene-Based and Other Esoteric Testing Capabilities: We intend to remain a leading innovator in the
diagnostic testing industry by continuing to introduce new tests, technologies and services. We believe
that gene-based and other esoteric tests are the fastest growing area within the diagnostic testing
industry. We believe that we have the largest gene-based and esoteric testing business in the United
States, with over $1 billion in net revenues during 2006, and that this business is growing approximately
10% per year. We believe that the unveiling of the human genome and the linkages of genes and the
proteins they produce with disease will result in more complex and thorough predictive and diagnostic
testing. We believe that we are well positioned to benefit from this growth. We intend to focus on
commercializing diagnostic applications of discoveries in the areas of functional genomics and
proteomics.
- Information Technology: We continue to invest in the development and improvement of information
technology products for customers and healthcare providers. We develop differentiated products that
provide more convenient ordering and reporting of laboratory tests and better access to patient-centric
information. We believe that these products enhance the value we provide to our customers and result in
increased customer loyalty. Our Care360TM products, including our Care360 Physician Portal, enable
doctors to order diagnostic tests and review laboratory results from Quest Diagnostics online. In
addition, the Care360 Physician Portal enables doctors to electronically prescribe medication, view
clinical and administrative information from various sources, file certain documents into a patient-centric
health record maintained in our repository and share confidential information with medical colleagues in
a manner consistent with the Health Insurance Portability and Accountability Act of 1996, or HIPAA.
The Care360 Physician Portal and related Care360 products allow us to replace older technology
products used by some physicians and thereby offer a better solution. Demand has been growing for our
information technology solutions as physicians have expanded their usage of the Internet. By the end of
2006, over 100,000 physicians were using our Care360TM products and approximately 50% of our orders
and over 90% of our test results were being transmitted via the Internet. The Care360 Physician Portal
was developed by MedPlus, our wholly owned healthcare information technology subsidiary. MedPlus’
ChartMaxx patient record systems and Care360 connectivity system are designed to support the
creation and management of electronic patient records, by bringing together, in one patient-centric view,
information from various sources, including physician’s records and laboratory and hospital data. We
intend to expand the services offered through our portal over time through both internal development
and the formation of strategic relationships.
• Near Patient Testing (also known as Point of Care Testing): Technology changes are enabling testing to
move closer to the patient, and are becoming increasingly available and reliable. We are well positioned
to offer choice and integrated solutions to physicians, hospitals, clinics and retail customers for the testing
methods that are most appropriate for each patient and practice. We intend to acquire and develop novel
technology platforms and systems to meet the needs of our clients. We also intend to provide electronic
data links through our Care360 desktop system so that tests performed outside our central laboratories,
3
25. near the patient will be available for electronic medical records and will display in similar format to tests
performed in our centralized laboratories. This will differentiate our near patient testing products from
other products that are not integrated into our customers’ electronic records. Since July 2006, we have
made several acquisitions that enable us to serve this near patient testing market, including HemoCue,
Focus Diagnostics and Enterix. See “Recent Acquisitions”. We believe that these acquisitions and our
overall near patient strategy will strengthen our relationship with our customers by enabling us to offer
more solutions that improve their effectiveness and the care of their patients by enabling faster diagnosis
and treatment. We will consider additional acquisitions or exclusive licenses of selective products to
complement the products and services we provide.
• Acquisitions and International Expansion: The clinical laboratory industry in the United States remains
fragmented. We expect to continue to selectively evaluate potential acquisitions of domestic clinical
laboratories that can be integrated into our existing laboratories, thereby increasing access for patients and
enabling us to reduce costs and improve efficiencies. While over the long term we believe positive
industry factors in the U.S. diagnostic testing industry and the differentiated services we offer to our
customers will enable us to grow organically, we see a number of opportunities to grow beyond our
current principal business of operating diagnostic testing laboratories in the United States. We are actively
exploring opportunities, including acquisitions, in the area of near patient testing to augment our laboratory
testing business. Given that physicians and hospitals are primary sources for both near patient testing and
laboratory performed tests, we believe providing both services will strengthen our relationships with
customers and accelerate our growth.
Additionally, we see opportunities to bring our experience and expertise in diagnostic testing to
international markets, particularly developing countries where the testing markets are highly fragmented
and less mature. In addition, expansion into near patient testing and international markets will diversify
our revenue base, and add businesses which are growing faster and are more profitable than our principal
business of U.S. based clinical laboratory testing.
People enable us to realize our mission. In this regard, an important challenge is to prepare our workforce
for the future. Our people strategy is built on concepts of stringent employee selection, effective engagement and
ongoing development resulting in a staff of highly qualified and motivated employees who are committed to our
goals. In addition, we are committed to improving the health of our employees and reducing healthcare costs for
them and our Company. Through our HealthyQuest initiative, we provide employees with the opportunity to lose
weight, quit smoking and generally pursue healthier lifestyles. Quest Diagnostics is recognized as a “best place to
work” in numerous locales as a consequence of our workplace initiatives that reflect our belief that people are
our most important asset. We take diversity seriously, believing that our organization should reasonably reflect
the communities that we serve. We strive to make all of our employees effective ambassadors of our Company.
Recent Acquisitions
On January 31, 2007, we acquired POCT Holding AB (“HemoCue”), a company headquartered in
Angelholm, Sweden, that specializes in near patient testing, in an all-cash transaction valued at approximately
$420 million, including $123 million of assumed debt of HemoCue. HemoCue, which has annualized revenues of
approximately $90 million, is the leading global provider in near patient testing for hemoglobin, with a growing
share in the near patient markets for professional glucose and microalbumin testing. HemoCue’s handheld systems
are used in physician’s offices, blood banks, hospitals, diabetes clinics and public health clinics. In developing
countries these systems are used as the primary means to screen for anemia. The measurement of hemoglobin is
important for patients being treated by transfusion, or undergoing dialysis or chemotherapy, where instant test
results can lead to immediate treatment decisions. Approximately 50% of HemoCue’s products are sold outside
the United States. HemoCue has a strong product development pipeline, based on its pioneering use of its
patented microfluidic systems, and is currently developing new tests, including one to determine white blood cell
counts. This test will help physicians quickly determine the presence of an infection and, consequently, the need
for antibiotic treatment, potentially reducing the overuse of antibiotics, an ongoing public health concern. In
addition, we intend to make HemoCue’s near patient handheld systems compatible with our Care360 portal,
which enables doctors to store, access and share patient information. We financed the purchase price through a
$450 million one-year term loan.
In September 2006 we acquired Enterix, Inc. (“Enterix”), an Australia-based company, in an all-cash
transaction valued at approximately $44 million. Enterix manufactures the InSureTM fecal immunochemical test
for screening for colorectal cancer and also performs the InSureTM test for patients. Prior to the acquisition, we
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26. were the exclusive clinical laboratory offering the InSureTM test in the United States. During 2007, we intend to
release a version of the test that can be performed by physicians in their offices.
On July 3, 2006, we acquired Focus Diagnostics Inc. (“Focus Diagnostics”) in an all-cash transaction valued
at $208 million, including approximately $3 million of assumed debt. Focus Diagnostics is a leading provider of
infectious and immunologic disease testing and has established a reputation for being first to introduce new
assays to the market, including diagnostic tests for Lyme disease, West Nile Virus and SARS. In addition, Focus
Diagnostics develops, manufactures and markets diagnostic products, such as HerpeSelect ELISA tests that
detect patient antibodies to specific types of Herpes Simplex Virus, which can be performed on a variety of
instrument platforms. Subject to clearance by the Food and Drug Administration (“FDA”), we plan to introduce
within the next year a near patient testing device that will allow physician office laboratories to rapidly detect
antibodies against Herpes Simplex Virus type 2. Focus Diagnostics offers its reference testing services and sells
its diagnostic products to large academic medical centers, hospitals and commercial laboratories. Focus
Diagnostics’ facility is located in Cypress, California. Approximately 27% of Focus Diagnostics’ products are
sold outside the United States.
We believe that the acquisition of HemoCue, Focus Diagnostics and Enterix support our growth strategy by
establishing a platform to serve the near patient testing market. We expect to use HemoCue’s distribution
network for sales of our complementary products, including Enterix’s near patient test for colorectal cancer
screening, and Focus Diagnostics’ near patient product for Herpes Simplex Virus type 2 antibodies, as well as
other diagnostic products that we develop. We also plan to investigate the potential applications of research
conducted at Focus Diagnostics to HemoCue’s device platform. In addition to adding new product development
capabilities, the acquisition of Focus Diagnostics further solidifies our leading position in providing esoteric
testing for hospitals and commercial laboratories by adding Focus Diagnostics’ infectious and immunologic
disease testing services to our menu.
On November 1, 2005, we acquired LabOne, Inc., (“LabOne”), in a transaction valued at approximately
$947 million, including approximately $138 million of assumed debt of LabOne. LabOne provides health
screening and risk assessment services to life insurance companies, as well as clinical diagnostic testing services
to healthcare providers and drugs-of-abuse testing to employers. LabOne operates regional laboratories in Lenexa,
Kansas, and Cincinnati, Ohio, as well as a state-of-the-art call center in Lee’s Summit, Missouri, and provides
paramedical examination services throughout the United States and Canada to serve the life insurance industry.
The acquisition of LabOne supports our growth strategy in a number of ways, including: solidifying our
leadership position in diagnostic testing by expanding access for physicians and patients and giving us added
presence in several geographic areas; strengthening our drugs-of-abuse testing business and establishing us as the
leader in a new testing-related business, providing health screening and risk assessment services to the life
insurance industry.
Recent Changes in Payer Relationships
On October 3, 2006, we announced that we would not be a national contracted provider of laboratory
services to United Healthcare Group, Inc., (“UNH”), beginning January 1, 2007. After negotiating with UNH and
offering to substantially reduce their total costs for laboratory services, UNH demanded that we execute an
agreement that would have significantly reduced fees from what we had offered, and would have given UNH the
right to unilaterally dictate certain key terms over a period of up to eight years. We determined that in the long
term, signing such an agreement would not be in the best interest of our Company and our shareholders.
UNH accounted for approximately 7% of our net revenues in 2006, with some of our regional laboratories
having concentrations as high as 15% to 20%. As one of many contracted providers, we estimate that we served
approximately half of UNH’s members or approximately three times as many as our single largest competitor.
We believe that this was because physicians and patients preferred using us due to quality and convenience.
While we expect to continue to service UNH’s members in certain limited markets as a contracted provider and
in other markets as a non-contracted provider, UNH has threatened physicians with penalties if they continue to
send laboratory testing to a non-contracted provider as of March 1, 2007. We believe UNH’s actions are
unprecedented and inappropriate, because they effectively eliminate the choice to use an out-of-network provider
which is embedded in many of the products UNH sells, and which employers and patients paid for. In addition,
UNH has been aggressively communicating to its members that they may be faced with higher co-payments and
deductibles if they use an out-of-network laboratory. While we retained virtually all of our UNH business through
December 31, 2006, we estimate that by February 16, 2007, about 60% of our direct UNH business has moved
to various contracted providers. We currently expect that the vast majority of the work we perform for UNH
members will move to contracted providers before the end of 2007. However, it is possible that if patients and
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27. physicians are sufficiently dissatisfied with the services they receive from providers UNH is requiring them to
use, we may regain some of the lost business.
In most cases when we perform testing for UNH members as a non-contracted provider we are entitled to
reimbursement and UNH is required to pay for our services, often at rates in excess of what we were previously
reimbursed. However, we expect UNH may challenge our rights to reimbursement in certain cases, leading to
disputes which will take time to resolve, and could result in a temporary increase in days sales outstanding. UNH
may also decide to remit payment to patients for the services we provide them as a non-contracted provider,
requiring us to pursue the patient for collection. Pursuing collections from patients generally requires more effort
and is more costly than collecting from a healthcare insurer and carries greater collection risk. Therefore, if we
are required to collect from patients rather than UNH, we could experience higher collection costs and bad debt
on the work we perform as a non-contracted provider. We plan to aggressively assert and defend our rights to
appropriate reimbursement, and challenge certain of UNH’s actions on a number of fronts. In addition, we are
educating patients, their physicians and employers that there are important differences between laboratory testing
providers, and that their right to choose their testing provider should not be eliminated by inappropriate methods.
Our current expectation is that no longer being a contracted provider to UHN, and becoming a non-
contracted provider to Horizon Blue Cross Blue Shield of New Jersey (which accounted for approximately 1% of
our net revenues in 2006), will reduce our revenue growth in 2007 by between 7% and 10%, most of that
resulting from the direct loss of previously contracted work, and some of it associated with the loss of other
work from physicians who choose to consolidate their testing with a single laboratory. Given that we expect a
decrease in volume levels in 2007 due to these contract changes, we plan to adjust our cost structure to match
the new volume levels. However, due to the fact that a large portion of our costs, approximately 40% or more,
are fixed, we do not expect our cost reduction actions will fully mitigate the profit impact of the anticipated
volume decline during 2007. Our plans also include examining our structural, or fixed costs, to determine what
reductions can be made. The extent to which we will need to reduce structural costs, which in part will be driven
by how quickly we replace lost business, will determine how long it will take to complete all of our cost actions.
As we do so, top priorities will be maintaining the differentiated level of service we provide to our patients and
physicians, and remaining positioned to capitalize on growth opportunities.
Our Services
For 2006, our clinical laboratory testing business accounted for approximately 92% of our net revenues, with
the balance derived from risk assessment services, clinical trials testing, healthcare information technology
services and diagnostic products. Substantially all of our services are provided within the United States. See Note
16 to the Consolidated Financial Statements. Laboratory testing includes routine testing and gene-based and
esoteric testing, which generated approximately 76% and 16%, respectively, of our net revenues. Risk assessment
services generated approximately 5% of our net revenues and clinical trials testing generated approximately 3%
of our net revenues. We derive approximately 2% of our net revenues from foreign operations.
Routine Testing
Routine tests measure various important bodily health parameters such as the functions of the kidney, heart,
liver, thyroid and other organs. Commonly ordered tests include:
• blood cholesterol level;
• blood chemistries;
• complete blood cell counts;
• Pap tests;
• urinalyses;
• pregnancy and other prenatal tests;
• alcohol and other substance-abuse tests; and
• asthma and allergy tests such as the ImmunoCap® test.
We perform routine testing through our network of major laboratories, rapid response laboratories and patient
service centers. We also perform routine testing at the hospital laboratories we manage. Major laboratories offer a
full line of routine clinical tests. Rapid response laboratories are smaller facilities where we can quickly perform
an abbreviated menu of routine tests for customers that require rapid turnaround times. Patient service centers are
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28. facilities where specimens are collected, and are typically located in or near a building used by medical
professionals.
We operate 24 hours a day, 365 days a year. We perform and report most routine tests within 24 hours. The
majority of test results are delivered electronically.
Esoteric Testing
Esoteric tests are those tests that require more sophisticated technology, equipment or materials, professional
“hands-on” attention from highly skilled and technical personnel, and that may be performed less frequently than
routine tests. Because it is not cost-effective for most hospital and clinical laboratories to perform low-volume
esoteric testing in-house, they generally refer many of these tests to an esoteric clinical testing laboratory that
specializes in performing these more complex tests. Due to their complexity, esoteric tests are generally
reimbursed at higher levels than routine tests.
Our two esoteric testing laboratories, which conduct business as Quest Diagnostics Nichols Institute, are
among the leading esoteric clinical testing laboratories in the world. In 1998, our esoteric testing laboratory in
San Juan Capistrano, California, was the first clinical laboratory in North America to achieve International
Organization for Standardization, or ISO, 9001 certification. Our esoteric testing laboratory in Chantilly, Virginia
enables us to provide full esoteric testing services on the east coast. Our Focus Diagnostics laboratory, which is
based in Cypress, California, is one of the leading providers of infectious and immunologic disease testing in the
world. Our esoteric testing laboratories perform hundreds of esoteric tests that are not routinely performed by our
regional laboratories. These esoteric tests are generally in the following fields:
• endocrinology and metabolism (the study of glands, their hormone secretions and their effects on body
growth and metabolism);
• genetics (the study of chromosomes, genes and their protein products and effects);
• hematology (the study of blood and bone marrow cells) and coagulation (the process of blood clotting);
• immunogenetics and human leukocyte antigens (HLA) (solid organ and bone marrow transplantation;
eligibility for vaccines and immunotherapy);
• immunology (the study of the immune system including antibodies, immune system cells and their effects
and autoimmune diseases);
• microbiology and infectious diseases (the study of microscopic forms of life including parasites, bacteria,
viruses, fungi and other infectious agents);
• oncology (the study of abnormal cell growth including benign tumors and cancer);
• serology (a science dealing with body fluids and their analysis, including antibodies, proteins and other
characteristics); and
• toxicology (the study of chemicals and drugs and their effects on the body’s metabolism).
New Test Introductions
We intend to build upon our reputation as a leading innovator in the clinical laboratory industry by
continuing to introduce new diagnostic tests. As the industry leader with the largest and broadest laboratory
network and the leading provider of esoteric testing, we believe that we are the best partner for developers of
new technology and tests to introduce their products to the marketplace.
We continue to be a leading innovator in the industry, through tests that we developed at Quest Diagnostics
Nichols Institute, the largest provider of molecular diagnostic testing in the United States, and Focus Diagnostics,
a leading provider of infectious and immunologic disease testing, as well as through relationships with technology
developers. We believe that we are one of the leaders in transferring technical innovations to the market through
our relationships with the academic community and pharmaceutical and biotechnology firms, as well as through
collaborations with emerging medical technology companies that develop and commercialize novel diagnostics,
pharmaceutical and device technologies.
We focus our resources on key disease states and technologies that will help doctors care for their patients
through better screening, diagnosis, prognosis, treatment choice and monitoring. With these priorities in mind,
during 2006, we introduced over 80 new and improved assays and services, principally in the following areas:
• Oncology–Blood Cancers (Leukemia and Lymphoma). We introduced ten additional tests for leukemia and
lymphoma in our growing family of new plasma-based molecular tests called LeumetaTM. We believe that
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