NEW YORK--(BUSINESS WIRE)--Oct. 16, 2001--The Wall Street
Transcript has published an in-depth interview with Kenneth W.
Freeman, Chairman and CEO of Quest Diagnostics (NYSE:DGX), in which he
talks at length about the company's future.
The entire 3,800-word interview is available free online at
http://www.twst.com/ceos.htm.
Mr. Freeman gives an overview of the company and highlights how
Quest Diagnostics has delivered break-out performance. "We've come a
long way in the last year. As you know, we acquired one of our largest
competitors, SmithKline Beecham Clinical Laboratories, in August 1999.
Since that time, we've been integrating two roughly equivalently sized
companies to create the industry leader for diagnostic testing,
information and services."
Mr. Freeman explains, "From a financial standpoint, our strategy
is crystal clear. We call it '10, 20, 30, and Investment Grade.' Our
goal is to generate top line growth at a sustainable rate of 10% a
year. We're moving toward that point as we speak. Top line growth will
be fueled by a combination of organic growth and selective
acquisitions. We generate very strong cash flows, which will be used
to take advantage of strategic acquisitions in an industry that
remains highly fragmented, as well as to further improve our balance
sheet by repaying debt. Last year and this year we will generate more
than $250 million of free cash flow."
Looking forward, Mr. Freeman states, "The '20' is 20%-plus EBITDA
margins. We intend to continue to grow our EBITDA margins coming off
of tremendous improvement over the last few years, and we intend to
sustain that momentum moving forward. In 1999, our pro forma EBITDA
was around 10%. In the year 2000, we improved our EBITDA margins to
over 13%. This year our EBITDA margins will be a bit more than 15%.
And over the next few years, we intend to get to the 20% level and
beyond."
This interview is part of a 673-page Third Annual UBS Warburg LLC
Healthcare Conference Issue available at
http://www.twst.com/info/info426.htm or by calling 212/952-7433. To view the complete Quest Diagnostic’s excerpt, please click here.
The Wall Street Transcript does not endorse the views of any
interviewees nor does it make stock recommendations. For subscription
information call 800/246-7673.
CONTACT: |
Quest Diagnostics Incorporated |
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Investors: |
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Cathy Doherty, 201/393-5030 |
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or |
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Media: |
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Gary Samuels, 201/393-5700 |
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www.questdiagnostics.com |
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