Exhibit 99.1
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Nine Months
Three Months Ended Ended
------------------------------------------ ----------
March 31, June 30, September 30, September 30,
2003 2003 2003 2003
---------- ---------- ---------- ----------
Net revenues ................................... $1,092,797 $1,219,935 $1,221,221 $3,533,953
---------- ---------- ---------- ----------
Operating costs and expenses:
Cost of services ............................... 648,097 703,124 711,180 2,062,401
Selling, general and administrative ............ 279,199 296,062 292,413 867,674
Amortization of intangible assets .............. 2,023 2,068 2,055 6,146
Other operating (income) expense, net .......... 223 10 (1,950) (1,717)
---------- ---------- ---------- ----------
Total operating costs and expenses .......... 929,542 1,001,264 1,003,698 2,934,504
---------- ---------- ---------- ----------
Operating income ............................... 163,255 218,671 217,523 599,449
Other income (expense):
Interest expense, net .......................... (13,909) (16,866) (14,472) (45,247)
Minority share of income ....................... (3,803) (4,415) (4,607) (12,825)
Equity earnings in unconsolidated joint ventures 4,056 4,554 4,371 12,981
Other income (expense), net .................... (805) 1,461 (62) 594
---------- ---------- ---------- ----------
Total non-operating expenses, net............ (14,461) (15,266) (14,770) (44,497)
---------- ---------- ---------- ----------
Income before taxes ............................ 148,794 203,405 202,753 554,952
Income tax expense ............................. 60,758 82,993 82,729 226,480
---------- ---------- ---------- ----------
Net income ..................................... $ 88,036 $ 120,412 $ 120,024 $ 328,472
========== ========== ========== ==========
===============================================================================================================
Basic earnings per common share:
Net income ..................................... $ 0.88 $ 1.15 $ 1.15 $ 3.18
Weighted average common shares
outstanding - basic ....................... 100,037 105,049 104,787 103,291
===============================================================================================================
Diluted earnings per common share:
Net income ..................................... $ 0.86 $ 1.12 $ 1.12 $ 3.10
Weighted average common shares
outstanding - diluted ....................... 102,455 107,677 107,278 105,804
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
----------------------------------------------------------- ----------
March 31, June 30, September 30, December 31, December 31,
2002 2002 2002 2002 2002
-------- ---------- ---------- ---------- ----------
Net revenues .......................... $946,762 $1,068,810 $1,058,714 $1,033,765 $4,108,051
-------- ---------- ---------- ---------- ----------
Operating costs and expenses:
Cost of services ...................... 557,738 630,258 625,075 619,317 2,432,388
Selling, general and administrative ... 258,403 276,821 272,587 267,030 1,074,841
Amortization of intangible assets ..... 2,155 2,065 2,023 2,130 8,373
Other operating (income) expense, net . 2,329 (502) 1,074 (2,594) 307
-------- ---------- ---------- ---------- ----------
Total operating costs and expenses .. 820,625 908,642 900,759 885,883 3,515,909
-------- ---------- ---------- ---------- ----------
Operating income ...................... 126,137 160,168 157,955 147,882 592,142
Other income (expense):
Interest expense, net ................. (12,675) (14,916) (13,388) (12,694) (53,673)
Minority share of income .............. (3,882) (3,938) (3,661) (3,393) (14,874)
Equity earnings in unconsolidated joint
ventures ............................ 3,602 4,326 3,834 4,952 16,714
Other income (expense), net ........... (659) 832 1,405 490 2,068
-------- ---------- ---------- ---------- ----------
Total non-operating expenses, net.... (13,614) (13,696) (11,810) (10,645) (49,765)
-------- ---------- ---------- ---------- ----------
Income before taxes ................... 112,523 146,472 146,145 137,237 542,377
Income tax expense .................... 45,834 59,321 59,528 55,540 220,223
-------- ---------- ---------- ---------- ----------
Net income ............................ $ 66,689 $ 87,151 $ 86,617 $ 81,697 $ 322,154
======== ========== ========== ========== ==========
========================================================================================================================
Basic earnings per common share:
Net income ............................ $0.70 $ 0.90 $ 0.89 $ 0.84 $ $3.34
Weighted average common shares
outstanding - basic ................. 95,422 96,393 96,900 97,155 96,467
========================================================================================================================
Diluted earnings per common share:
Net income ............................ $ 0.67 $ 0.87 $ 0.87 $ 0.82 $ 3.23
Weighted average common shares
outstanding - diluted ............... 99,307 100,297 99,712 99,843 99,790