-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rf23j9Zvg36q6B2MFi0iquK58EEGKl2BtNkiG/L4SvzLJq5beJs5SfDgHaVVYuRf vtcKIwkxqPq/JkwkwcWALQ== 0000950146-97-001649.txt : 19971114 0000950146-97-001649.hdr.sgml : 19971114 ACCESSION NUMBER: 0000950146-97-001649 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971112 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUEST DIAGNOSTICS INC CENTRAL INDEX KEY: 0001022079 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH [8731] IRS NUMBER: 161387862 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-12215 FILM NUMBER: 97713062 BUSINESS ADDRESS: STREET 1: ONE MALCOLM AVE CITY: TETERBORO STATE: NJ ZIP: 07608 BUSINESS PHONE: 2013935143 MAIL ADDRESS: STREET 1: ONE MALCOLM AVE CITY: TETERBORO STATE: NJ ZIP: 07601 FORMER COMPANY: FORMER CONFORMED NAME: CORNING CLINICAL LABORATORIES INC DATE OF NAME CHANGE: 19960903 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 - -------------------------------------------------------------------------------- FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1997 Commission file number 1-12215 Quest Diagnostics Incorporated (formerly known as Corning Clinical Laboratories Inc.) One Malcolm Avenue Teterboro, NJ 07608 (201) 393-5000 Delaware (State of Incorporation) 16-1387862 (I.R.S. Employer Identification Number) - -------------------------------------------------------------------------------- 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 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 [ ] As of October 31, 1997, there were outstanding 29,891,893 shares of Common Stock, $.01 par value. PART I - FINANCIAL INFORMATION Item 1. Financial Statements Index to consolidated financial statements filed as part of this report: Page Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 1997 and 1996 2 Consolidated Balance Sheets as of September 30, 1997 and December 31, 1996 3 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 1997 and 1996 4 Notes to Consolidated Financial Statements 5 1 QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996 (in thousands, except per share data) (unaudited)
Three Months Ended Nine Months Ended Sept 30, 1997 Sept 30, 1996 Sept 30, 1997 Sept 30, 1996 ------------- ------------- ------------- ------------- Net revenues .................... $373,633 $ 405,352 $1,163,259 $1,231,290 Costs and expenses: Cost of services.............. 229,164 255,390 708,071 768,809 Selling, general and administrative .............. 119,691 125,190 371,518 371,439 Interest expense, net ........ 10,385 19,866 31,497 59,887 Amortization of intangible assets....................... 6,082 10,328 18,104 31,772 Provision for restructuring and other special charges....... -- 155,730 -- 201,730 Other, net ................... 2,045 1,837 2,942 (198) -------- --------- ---------- ---------- Total ...................... 367,367 568,341 1,132,132 1,433,439 -------- --------- ---------- ---------- Income (loss) before taxes ...... 6,266 (162,989) 31,127 (202,149) Income tax expense (benefit) .... 3,273 (43,553) 15,999 (43,280) -------- --------- ---------- ---------- Net income (loss) ............... $ 2,993 $(119,436) $ 15,128 $ (158,869) ======== ========= ========== ========== Net income per common share...... $ 0.10 $ 0.52 Weighted average common shares outstanding .................. 29,293 29,090
The accompanying notes are an integral part of these statements. 2 QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 1997 AND DECEMBER 31, 1996 (in thousands, except per share data)
September 30, December 31, 1997 1996 ---- ---- (unaudited) ASSETS - ------ Current Assets: Cash and cash equivalents .............................. $ 124,509 $ 41,960 Accounts receivable, net of allowance of $96,596 and $115,018 at September 30, 1997 and December 31, 1996, respectively..................... 271,116 297,743 Inventories ............................................ 29,235 28,524 Deferred taxes on income ............................... 91,597 98,162 Due from Corning Incorporated........................... 22,139 30,894 Prepaid expenses and other assets ...................... 14,839 13,682 ---------- ---------- Total current assets ................................ 553,435 510,965 Property, plant and equipment, net ........................ 267,912 287,749 Intangible assets, net .................................... 535,497 546,457 Other assets............................................... 64,898 49,895 ---------- ---------- TOTAL ASSETS............................................... $1,421,742 $1,395,066 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ Current Liabilities: Accounts payable and accrued expenses................... $232,991 $206,701 Short-term borrowings................................... 24,408 20,785 Income taxes payable ................................... 21,560 21,946 ---------- --------- Total current liabilities............................ 278,959 249,432 Long-term debt............................................. 490,965 515,008 Other liabilities.......................................... 85,196 91,907 ---------- --------- Total liabilities.................................... 855,120 856,347 ---------- ---------- Commitments and Contingencies Stockholders' Equity: Preferred stock......................................... 1,000 1,000 Common stock, par value $0.01 per share; 100,000 shares authorized; 29,796 and 28,822 shares issued at September 30, 1997 and December 31, 1996, respectively. 298 288 Additional paid-in capital.............................. 1,185,677 1,170,152 Accumulated deficit..................................... (612,863) (627,892) Cumulative translation adjustment ...................... (984) (619) Market valuation adjustment............................. (1,445) (4,210) Unearned compensation................................... (5,061) -- ---------- ---------- Total stockholders' equity........................... 566,622 538,719 ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ................ $1,421,742 $1,395,066 ========== ==========
The accompanying notes are an integral part of these statements. 3 QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996 (in thousands) (unaudited) 1997 1996 --------- --------- Cash flows from operating activities: Net income (loss) ...................................... $ 15,128 $(158,869) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization ....................... 57,809 75,232 Provision for doubtful accounts ..................... 86,227 81,891 Provision for restructuring and other special charges -- 201,730 Deferred income tax provision ....................... 8,861 (31,612) Other, net .......................................... 4,375 (753) Changes in operating assets and liabilities: Accounts receivable .............................. (64,616) (87,339) Accounts payable and accrued expenses ............ 35,813 3,355 Restructuring, integration and other special charges .......................................... (11,819) (19,863) Due from/to Corning Incorporated and affiliates .. 8,755 5,320 Other assets and liabilities, net ................ (2,616) (27,155) --------- --------- Net cash provided by operating activities .............. 137,917 41,937 --------- --------- Cash flows from investing activities: Capital expenditures ................................ (21,579) (58,802) Proceeds from disposition of assets ................. 1,103 13,285 Acquisition of business ............................. (16,000) -- Decrease (increase) in investments .................. 1,338 (7,580) --------- --------- Net cash used in investing activities .................. (35,138) (53,097) --------- --------- Cash flows from financing activities: Repayments under Working Capital Facility ........... (19,300) -- Proceeds from borrowings ............................ -- 59,090 Repayment of long-term debt ......................... (861) (34,885) Dividends paid ...................................... (69) (1,172) --------- --------- Net cash (used in) provided by financing activities .... (20,230) 23,033 --------- --------- Net change in cash and cash equivalents ................ 82,549 11,873 Cash and cash equivalents, beginning of year ........... 41,960 36,446 --------- --------- Cash and cash equivalents, end of period ............... $ 124,509 $ 48,319 ========= ========= Cash paid during the period for: Interest ............................................ $ 28,532 $ 64,211 Income taxes ........................................ $ 5,647 $ 8,089 The accompanying notes are an integral part of these statements. 4 QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands, unless otherwise indicated) (unaudited) 1. BASIS OF PRESENTATION Background Prior to January 1, 1997, Quest Diagnostics Incorporated and its subsidiaries (the "Company") was a wholly-owned subsidiary of Corning Incorporated ("Corning"). On December 31, 1996, Corning distributed all of the outstanding shares of common stock of the Company to the stockholders of Corning, with one share of common stock of the Company being distributed for each eight shares of outstanding common stock of Corning (the "Spin-Off Distribution"). Basis of Presentation The interim consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods presented. All such adjustments are of a normal recurring nature. The interim consolidated financial statements have been compiled without audit and are subject to year-end adjustments. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Form 10-K for the year ended December 31, 1996. Earnings Per Share Earnings per share are computed by dividing net income less dividends on the Company's Preferred Stock (approximately $30 per quarter) by the weighted average number of common shares outstanding during the period. Historical earnings per share for 1996 is not meaningful as the Company's capital structure in 1996 is not comparable to the capital structure subsequent to the Spin-Off Distribution. In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard No. 128, "Earnings per Share." The statement is effective for financial statements for periods ending after December 15, 1997, and changes the method in which earnings per share will be determined. Adoption of this statement by the Company is not expected to have a material impact on earnings per share in 1997. 2. COMMITMENTS AND CONTINGENCIES The Company has entered into several settlement agreements with various governmental and private payors during recent years relating primarily to industry-wide billing and marketing practices that had been substantially discontinued by early 1993. At present, a government investigation of certain practices by Nichols Institute, which were substantially discontinued prior to its acquisition by the Company in 1994, is ongoing. As part of the Spin-Off Distribution, Corning has agreed to indemnify the Company against all settlements for any governmental claims relating to billing practices of the Company and its predecessors that were pending on December 31, 1996. Corning also agreed to indemnify the Company for 50% of the aggregate of all settlement payments made by the Company that are in excess of $42 million to private parties that relate to indemnified or previously settled governmental claims for services provided prior to January 1, 1997; however, the indemnification of private party claims will not exceed $25 million in the aggregate and will be paid to the Company net of anticipated tax benefits to be realized by the Company. Such indemnification does not cover any non-governmental claims settled after December 31, 2001. Coincident with the Spin-Off Distribution, the Company recorded a receivable from Corning of $22.4 million which is equal to management's best estimate of amounts to be received from Corning to satisfy the remaining indemnified governmental claims on an after-tax basis. At September 30, 1997, the receivable from Corning was $22.1 million. 5 QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands, unless otherwise indicated) (unaudited) At September 30, 1997, settlement reserves totaled $77.9 million, including $41.2 million in other long-term liabilities. Although management believes that established reserves for both indemnified and non-indemnified claims are sufficient, it is possible that additional information may become available which may cause the final resolution of these matters to exceed established reserves by an amount which could be material to the Company's results of operations and, for non-indemnified claims, the Company's cash flows in the period in which such claims are settled. The Company does not believe that these issues will have a material adverse effect on its overall financial condition. 3. RESTRUCTURING RESERVES The Company has recorded charges for restructuring plans in previous years. Reserves relating to these programs totaled $8.7 million and $16.1 million at September 30, 1997 and December 31, 1996, respectively. Management believes that the costs of the restructuring plans will be financed through cash from operations and does not anticipate any significant impact on its liquidity as a result of the restructuring plans. 4. SUMMARIZED FINANCIAL INFORMATION The Company's 10.75% senior subordinated notes due 2006 are guaranteed, fully, jointly and severally, and unconditionally, on a senior subordinated basis by substantially all of the Company's wholly-owned, domestic subsidiaries ("Subsidiary Guarantors"). Non-guarantor subsidiaries, individually and in the aggregate, are inconsequential to the Company. The following is summarized financial information of the Subsidiary Guarantors as of September 30, 1997 and December 31, 1996 and for the nine months ended September 30, 1997 and 1996. Full financial statements of the Subsidiary Guarantors are not presented because management believes they are not material to investors. September 30, 1997 December 31, 1996 ------------------ ----------------- Current assets........................ $243,647 $230,024 Noncurrent assets..................... 538,165 547,219 Current liabilities................... 90,414 61,383 Noncurrent liabilities................ 267,233 290,980 Stockholder's equity.................. 424,165 424,880 For the nine months ended September 30, --------------------------------------- 1997 1996 ---- ---- Net revenues.......................... $645,364 $677,489 Cost of services...................... 405,330 427,583 Net loss.............................. (715) (20,564) 6 QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands, unless otherwise indicated) (unaudited) 5. STOCKHOLDERS' EQUITY Unearned Compensation Under the Company's Employees Equity Participation Program, approximately 400 thousand shares of restricted stock were granted in 1997, primarily to executive employees. These shares are contingent on achievement of financial performance goals and are subject to forfeiture if employment terminates prior to the end of the prescribed period. The market value of the shares awarded under the plan is recorded as unearned compensation. The unearned amounts are amortized to compensation expense as earned and are subject to adjustment based upon changes in earnings estimates. 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Net income for the three and nine months ended September 30, 1997 increased from the prior year primarily as a result of reduced interest and amortization expense and the impact of special charges in 1996. Partially offsetting these factors was lower volume resulting from changes in physician ordering patterns, intensified competition, and the Company's increased selectiveness in retaining and pursuing new business. Net Revenues Net revenues for the three and nine months ended September 30, 1997 decreased by $31.7 million and $68.0 million, respectively, from the prior year levels. For the three and nine months, the decrease was principally due to declines in clinical testing volume of 9.8% and 5.5%, respectively, and the sale in 1996 of a majority share of the Company's imaging business, partially offset by an improvement in average prices of 3.1% and 2.2%, respectively. The volume decline for each period is primarily attributable to changes in physician ordering patterns resulting from government regulations requiring documentation of the medical necessity of testing, intense competition for existing business, the July 1997 contribution of the Company's Arizona operations to a joint venture and the Company's increased selectiveness in retaining and pursuing new business. Costs and Expenses Total operating costs for the three and nine months declined $31.7 million and $60.7 million, respectively, from the year earlier periods. A portion of these declines, $10.9 million for the quarter and $23.5 million year to date, was attributable to the July 1997 contribution of the Company's Arizona operations to a joint venture and the sale of the majority share of the Company's imaging business. The Company's efforts to reduce its operating cost structure have had a favorable impact on costs as a percentage of net revenue. However, this benefit was principally offset by lower volume. Bad debt expense, which exceeded the prior year level on a year to date basis, was below the prior year during the third quarter, reflecting progress in the Company's efforts to improve the efficiency and effectiveness of its billing operations. During the third quarter, the Company achieved operating cost reductions equal to its revenue decline. Plans are currently being implemented which are expected to further reduce the Company's cost structure.* Cost of services, which includes the costs of obtaining, transporting and testing specimens, decreased $26.2 million in the third quarter from the prior year, and as a percentage of net revenues decreased to 61.3% from 63.0% in the prior year. Cost of services in the first nine months of 1997 decreased $60.7 million from the prior year, and as a percentage of net revenues decreased to 60.9% from 62.4% in the prior year. These decreases reflect the Company's progress in reducing its cost structure, the sale of the - ---------- * This is a forward looking statement within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 27E of the Securities Act of 1934, as amended, and is based on current expectations. Forward looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward looking statement. These risks and uncertainties include computer or other system failures, development of technologies that substantially alter the practice of medicine, and the impact upon the Company's expenses resulting from compliance with Medicare administrative policies. See Item 1. "Business--Cautionary Statement for Purposes of the 'Safe Harbor' Provisions of the Private Securities Litigation Reform Act of 1995" contained in the Company's 1996 Annual Report on Form 10-K. 8 majority share of the Company's imaging business, and the contribution of the Company's Arizona operations to a joint venture. Selling, general and administrative expenses, which includes the costs of the sales force, billing operations, bad debt expense and general management and administrative support, decreased $5.5 million in the third quarter from the prior year. The decrease was principally due to bad debt expense which decreased from 7.5% of net revenues to 7.1% of net revenues for the third quarter. For the first nine months, bad debt expense was above the prior year level, but was offset by progress the Company has made in aligning its cost structure with business conditions, resulting in selling, general and administrative expenses which approximated the prior year level. While beginning to make progress, the Company continues to be impacted by Medicare medical necessity documentation requirements imposed during the past year. During the first nine months of 1997, additional medical necessity requirements were imposed by various state agencies and private carriers. These requirements, when initially imposed or subsequently expanded, increase the backlog of unbilled requisitions and further complicate the billing process. The Company has successfully dealt with these requirements in a number of its billing sites where they were imposed earlier and is leveraging the processes and experiences from those locations in addressing the impact of additional requirements across its billing operations. Net interest expense decreased from the prior year by $9.5 million and $28.4 for the third quarter and year to date periods, respectively, primarily due to reduced debt levels as a result of Corning forgiving in excess of $700 million of intercompany debt in connection with the Spin-Off Distribution. Amortization of intangible assets decreased from the prior year by $4.2 million and $13.7 million for the third quarter and year to date periods, respectively, principally due to the write-down of intangible assets coincident with the Spin-Off Distribution, as well as certain other intangible assets having become fully amortized. In the second quarter of 1996, the Company recorded a special charge of $46.0 million to establish additional reserves equal to management's estimate, at that time, of the low end of potential amounts which could be required to satisfy the government's claims related to investigations ongoing at the time. During the third quarter of 1996 the Company recorded a $142.0 million charge to establish additional reserves to provide for the Damon settlement and to increase reserve balances to management's best estimate of amounts necessary to satisfy remaining claims. In addition, in the third quarter of 1996 the Company recorded a charge of $13.7 million to write off capitalized software as a result of its decision to abandon the billing system which had been intended as its company-wide billing platform. The year to date change in other, net compared with the prior year is primarily the result of the prior year including a gain on the sale of an investment and the favorable settlement of a contractual obligation, and the current year including charges related to the integration of a small, strategic acquisition completed during the second quarter as well as the formation of the Arizona joint venture in the third quarter. The Company's effective tax rate is significantly impacted by goodwill amortization, a majority of which is not deductible for tax purposes, and has the effect of increasing the overall tax rate or reducing the tax benefit rate. The change in the effective tax rate is due principally to a reduction in non-deductible amortization expense associated with the write-down of intangible assets coincident with the Spin-Off Distribution. 9 Liquidity and Capital Resources Cash increased by $82.5 million over the year end balance, to $124.5 million at September 30, 1997, due to operating activities which provided cash of $137.9 million, partially offset by investing and financing activities which used cash of $55.4 million. Net cash provided by operating activities for the period improved by $96.0 million compared to the same period in the prior year. The improvement is primarily the result of changes in accounts payable and accrued expense levels, changes in deferred tax levels, improvements in billing operations, and a reduction in restructuring spending. Improvements in the billing operations have led to an improvement in the number of days sales outstanding. The number of days sales outstanding, a measure of billing and collection efficiency, was 67 days at September 30, 1997 compared to 70 days at year end and 72 days a year earlier. The decrease in net cash used in investing activities is primarily the result of reduced capital spending partially offset by a small, strategic acquisition in the second quarter of 1997. Capital spending for the first nine months of 1997 was $21.6 million compared to $58.8 million for the comparable prior year period. The Company estimates that it will invest approximately $35 million to $40 million during 1997 for capital expenditures, principally related to equipment and facility upgrades and investments in information technology.* During the first quarter the Company paid down the entire balance of $19.3 million on its revolving working capital credit facility. Other than for the reduction for outstanding letters of credit, which currently approximate $6.7 million, all of the revolving working capital credit facility is currently available for borrowing. Adjusted EBITDA Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization and non-recurring charges. Adjusted EBITDA for the three months ended September 30, 1997 was $35.7 million, or 9.6% of net revenues, compared to $37.6 million, or 9.3% of net revenues, in the prior year period. Adjusted EBITDA for the nine months ended September 30, 1997 was $120.4 million, or 10.4% of net revenues, compared to $134.7 million, or 10.9% of net revenues, in the prior year period. Adjusted EBITDA increased as a percentage of net revenues from the prior year for the three months ended September 30, 1997, reflecting the Company's continued progress in reducing its cost structure. However, this improvement was offset by lower volume as a result of changes in physician ordering patterns, intensified competition, and the Company's increased selectiveness in retaining and pursuing new business. - ---------- * This is a forward looking statement within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 27E of the Securities Act of 1934, as amended, and is based on current expectations. Forward looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward looking statement. These risks and uncertainties include computer or other system failures, development of technologies that substantially alter the practice of medicine, and the impact upon the Company's expenses resulting from compliance with Medicare administrative policies. See Item 1. "Business--Cautionary Statement for Purposes of the 'Safe Harbor' Provisions of the Private Securities Litigation Reform Act of 1995" contained in the Company's 1996 Annual Report on Form 10-K. 10 PART II - OTHER INFORMATION Item 1. Legal Proceedings At September 30, 1997, the Company had an aggregate reserve of $77.9 million with respect to all governmental and private claims that are either presently pending or anticipated as a consequence of settlements and self-reported matters described in the Company's 1996 Annual Report on Form 10-K. The Company believes that these reserves are adequate. See Item 1. "Business--Government Investigations and Related Claims" contained in the Company's Annual Report on Form 10-K and see Part II, Item 1. of the Company's Form 10-Q for the quarterly period ended June 30, 1997. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: Exhibit Number Description -------------- ----------- 27 Financial Data Schedule (b) Reports on Form 8-K: None 11 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. November 11, 1997 Quest Diagnostics Incorporated By /s/ Kenneth W. Freeman Chairman of the Board, - ------------------------- Chief Executive Officer Kenneth W. Freeman and President By /s/ Robert A. Carothers Vice President and - -------------------------- Chief Financial Officer Robert A. Carothers 12 EX-27 2 FDS QUEST DIAGNOSTICS Q3 '97
5 0001022079 Quest 1000 US$ 9-mos DEC-31-1997 JAN-01-1997 SEP-30-1997 1 124,509 0 271,116 96,596 29,235 553,435 267,912 317,710 1,421,742 278,959 0 0 1,000 1,185,975 (620,353) 1,421,742 1,163,259 1,163,259 708,071 1,079,589 2,942 86,227 31,497 31,127 15,999 15,128 0 0 0 15,128 0.52 0.52
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