TETERBORO, N.J., Jan. 16 /PRNewswire/ -- Quest Diagnostics Incorporated
(NYSE: DGX), the nation's leading provider of diagnostic testing, information
and services, today announced that it has revised upward its estimate of
diluted earnings per share, before special items, for the year ending
December 31, 2001 to between $3.10 and $3.20, approximately 40% above the
current consensus of analysts' estimates for the full-year 2000 and also above
the current consensus estimate for 2001 of $2.97 per diluted share, as
compiled by First Call. Cash earnings for 2001 are now estimated at between
$3.90 and $4.00 per diluted share. This anticipated improvement reflects the
continued positive impact of the 1999 acquisition of SmithKline Beecham
Clinical Laboratories (SBCL), as well as favorable industry trends.
For the fourth quarter of 2000, the company expects to report earnings per
diluted share before special items within the range of current analyst
estimates of $0.57 to $0.59 per diluted share, despite recent severe weather
in a number of important markets. In addition, the company prepaid
$155 million of bank debt during the fourth quarter. As a result, the company
will record an extraordinary loss of $0.06 per share associated with the
write-off of deferred financing costs, a non-cash charge.
Fourth-quarter 2000 volume, measured by the number of requisitions, grew
approximately 1% above the prior year, after adjusting for the impact of
severe weather and the contribution of business to unconsolidated joint
ventures. The company estimates that volume in the quarter was reduced by
approximately 1.5% due to severe weather in several parts of the country in
December. Additionally, reported volume was reduced by approximately 1.5% as
a result of the contribution of certain SBCL business to unconsolidated joint
ventures, as required by existing joint venture agreements. As a result of
these items, reported volume during the fourth quarter will be approximately
2% below the prior year's level. Revenue per requisition during the fourth
quarter is expected to grow by almost 9% compared to the prior year. The
company continues to benefit from its longstanding strategy of shedding
unprofitable business and focusing on higher-value testing services.
"We had a terrific year in 2000. We nearly doubled earnings per share
while integrating the largest acquisition in the history of our industry,"
said Kenneth W. Freeman, Chairman and Chief Executive Officer. "Looking
forward to 2001, we anticipate earnings growth of approximately 40%. We
expect to realize additional gains from the integration of Quest Diagnostics
and SBCL, and to see improving volume comparisons after the completion of
integration, scheduled for the end of the first quarter. We are the leader in
an industry with improving fundamentals, and we are committed to continue to
deliver outstanding results for our shareholders."
The company expects revenues for 2001 to grow between 6% and 8%, with
volume and revenue per requisition each contributing approximately half of the
increase. It expects EBITDA margins to approach 15%, interest expense of
approximately $100 million to $105 million and amortization expense of
approximately $45 million. Capital spending is expected to total between
$130 million and $150 million.
Quest Diagnostics will release financial results for the fourth quarter
and full year 2000 after the close of the stock market on January 29, 2001.
The company is currently in a "quiet" period and will discuss results for the
fourth quarter and full year 2000 during a conference call on January 30 at
8:00 A.M. (Eastern Time). To hear a simulcast of the call over the Internet,
or a replay, registered analysts may access StreetEvents at:
http://www.streetevents.com and all others may access the Quest Diagnostics
website at: http://www.questdiagnostics.com. In addition, a replay of the
call will also be available from 10 A.M. on January 30 through 5 P.M. on
February 2 by dialing 800-695-4249.
Quest Diagnostics is the nation's leading provider of diagnostic testing,
information and services with annualized revenues of more than $3 billion.
The testing performed on human specimens helps doctors diagnose, treat and
monitor disease; enables employers to detect workplace drug abuse; and
supports pharmaceutical and biotechnology companies in clinical trials of new
therapeutics worldwide. Quest Informatics analyzes laboratory and other
medical data to help health care providers improve the care of patients.
Additional company information can be found on the Internet at:
http://www.questdiagnostics.com.
The statements in this press release which are not historical facts or
information may be forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause the outcome to be
materially different. Certain of these risks and uncertainties are listed in
the Quest Diagnostics Incorporated 1999 Form 10-K and subsequent filings.
SOURCE Quest Diagnostics
CONTACT: Cathy Doherty, Investors, 201-393-5030, or Gary Samuels, Media,
201-393-5700, both of Quest Diagnostics/