-----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, DxyAC43rMC29F+S4WitYphkZC2aBeMGnsxpYtkSY3RQNj6ZOEECZ7Q8TmpWDxnOQ 0rFX4+1zwTqPCsCVcW+xRg== 0000950146-97-001180.txt : 19970811 0000950146-97-001180.hdr.sgml : 19970811 ACCESSION NUMBER: 0000950146-97-001180 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970808 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: 1934 Act SEC FILE NUMBER: 001-12215 FILM NUMBER: 97654055 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 QUARTERLY REPORT 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 June 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 July 31, 1997, there were outstanding 29,723,790 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 Six Months Ended June 30, 1997 and 1996 2 Consolidated Balance Sheets as of June 30, 1997 and December 31, 1996 3 Consolidated Statements of Cash Flows for the Six Months Ended June 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 SIX MONTHS ENDED JUNE 30, 1997 AND 1996 (in thousands, except per share data) (unaudited)
Three Months Ended Six Months Ended June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996 ------------- ------------- ------------- ------------- Net revenues .................................... $ 401,523 $ 424,543 $ 789,626 $ 825,938 Costs and expenses: Cost of services............................ 239,593 266,301 478,907 513,419 Selling, general and administrative ........ 127,854 120,205 251,827 246,249 Interest expense, net ...................... 10,499 19,879 21,112 40,021 Amortization of intangible assets .......... 5,980 10,655 12,022 21,444 Provision for restructuring and other special charges..................... -- 46,000 -- 46,000 Other, net ................................. 1,153 (979) 897 (2,035) --------- --------- --------- --------- Total .................................... 385,079 462,061 764,765 865,098 --------- --------- --------- --------- Income (loss) before taxes....................... 16,444 (37,518) 24,861 (39,160) Income tax expense............................... 8,356 404 12,726 273 --------- --------- --------- --------- Net income (loss)................................ $ 8,088 $ (37,922) $ 12,135 $ (39,433) ========= ========= ========= ========= Net income per common share...................... $ 0.28 $ 0.42 Weighted average common shares outstanding................................. 29,102 28,987
The accompanying notes are an integral part of these statements. 2 QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 1997 AND DECEMBER 31, 1996 (in thousands, except per share data)
June 30, December 31, 1997 1996 ---- ---- (unaudited) ASSETS - ------ Current Assets: Cash and cash equivalents .............................................. $ 75,834 $ 41,960 Accounts receivable, net of allowance of $108,622 and $115,018 at June 30, 1997 and December 31, 1996, respectively....... 287,987 297,743 Inventories ............................................................ 27,921 28,524 Deferred taxes on income ............................................... 95,402 98,162 Due from Corning Incorporated........................................... 22,400 30,894 Prepaid expenses and other assets ...................................... 13,926 13,682 ----------- ---------- Total current assets ............................................... 523,470 510,965 Property, plant and equipment, net .......................................... 273,140 287,749 Intangible assets, net ...................................................... 551,813 546,457 Other assets................................................................. 48,770 49,895 ----------- ---------- TOTAL ASSETS................................................................. $ 1,397,193 $1,395,066 =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ Current Liabilities: Accounts payable and accrued expenses................................... $ 210,073 $ 206,701 Short-term borrowings................................................... 16,535 20,785 Income taxes payable ................................................... 24,858 21,946 ----------- ---------- Total current liabilities........................................... 251,466 249,432 Long-term debt............................................................... 499,207 515,008 Other liabilities............................................................ 85,308 91,907 ----------- ---------- Total liabilities................................................... 835,981 856,347 ----------- ---------- Commitments and Contingencies Stockholders' Equity: Preferred stock......................................................... 1,000 1,000 Common stock, par value $0.01 per share; 100,000 shares authorized; 29,615 and 28,822 shares issued at June 30, 1997 and December 31, 1996, respectively..................................... 296 288 Additional paid-in capital.............................................. 1,182,750 1,170,152 Accumulated deficit..................................................... (615,827) (627,892) Cumulative translation adjustment ...................................... (910) (619) Market valuation adjustment............................................. (1,946) (4,210) Unearned compensation................................................... (4,151) -- ------------ ---------- Total stockholders' equity.......................................... 561,212 538,719 ----------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .................................. $ 1,397,193 $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 SIX MONTHS ENDED JUNE 30, 1997 AND 1996 (in thousands) (unaudited)
1997 1996 ---- ---- Cash flows from operating activities: Net income (loss) .................................................... $ 12,135 $ (39,433) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization ................................... 38,760 50,232 Provision for doubtful accounts ................................. 59,825 51,352 Provision for restructuring and other special charges............ -- 46,000 Deferred income tax provision.................................... 6,089 7,016 Other, net....................................................... 3,412 (651) Changes in operating assets and liabilities: Accounts receivable ......................................... (50,070) (54,311) Accounts payable and accrued expenses ....................... 7,814 (15,906) Restructuring, integration and other special charges ........ (8,031) (17,290) Due from/to Corning Incorporated and affiliates ............. 8,494 3,208 Other assets and liabilities, net............................ 2,056 (13,516) --------- ----------- Net cash provided by operating activities............................. 80,484 16,701 --------- ----------- Cash flows from investing activities: Capital expenditures ............................................ (12,973) (46,890) Proceeds from disposition of assets ............................. 1,076 9,279 Acquisition of business.......................................... (16,000) -- Decrease (increase) in investments .............................. 1,338 (7,582) ----------- ----------- Net cash used in investing activities ................................ (26,559) (45,193) ------------ ----------- Cash flows from financing activities: Repayments under Working Capital Facility........................ (19,300) -- Proceeds from borrowings......................................... -- 64,619 Repayment of long-term debt ..................................... (711) (33,796) Dividends paid................................................... (40) (1,172) ----------- ----------- Net cash (used in) provided by financing activities .................. (20,051) 29,651 ----------- ----------- Net change in cash and cash equivalents .............................. 33,874 1,159 Cash and cash equivalents, beginning of year ......................... 41,960 36,446 ----------- ----------- Cash and cash equivalents, end of period.............................. $ 75,834 $ 37,605 =========== =========== Cash paid during the period for: Interest......................................................... $ 21,760 $ 43,152 Income taxes..................................................... $ 4,389 $ 5,652
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 by 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 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. 5 QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands, unless otherwise indicated) (unaudited) At June 30, 1997, settlement reserves totaled $78.3 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 $10.9 million and $16.1 million at June 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 June 30, 1997 and December 31, 1996 and for the six months ended June 30, 1997 and 1996. Full financial statements of the Subsidiary Guarantors are not presented because management believes they are not material to investors. June 30, 1997 December 31, 1996 ------------- ----------------- Current assets.............................. $236,901 $230,024 Noncurrent assets........................... 544,795 547,219 Current liabilities......................... 74,946 61,383 Noncurrent liabilities...................... 281,325 290,980 Stockholder's equity........................ 425,425 424,880 For the six months ended June 30, 1997 1996 ---- ---- Net revenues................................ $437,935 $455,035 Cost of services............................ 275,207 286,006 Net income (loss)........................... 545 (15,516) 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. 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Net income for the three and six months ended June 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. This was partially offset by reduced operating income primarily due to an increase in bad debt expense and the Company's increased selectiveness in retaining and pursuing new business, which during the first quarter of the year reduced volume faster than costs were reduced. Net Revenues Net revenues for the second quarter decreased by $23.0 million, or 5.4% from the prior year level, principally due to a 5.6% decline in clinical testing volume and the sale in 1996 of a majority share of the Company's imaging business, partially offset by an improvement in average prices of 2.1%. Net revenues for the first half of 1997 decreased by $36.3 million, or 4.4% from the prior year level, principally due to a 5.4% decline in clinical testing volume and the sale in 1996 of a majority share of the Company's imaging business, partially offset by an improvement in average prices of 1.8%. The volume decline for each period is primarily attributable to the Company's increased selectiveness in retaining and pursuing new business, in addition to mounting government regulations and intense competition for existing business. Costs and Expenses Total operating costs for the second quarter and first half of 1997 declined $19.1 million and $28.9 million, respectively, from the year earlier periods. For the second quarter and first half of 1997, $11.7 million and $12.6 million, respectively, of the declines were attributable to 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 offset by lower volume and higher bad debt expense. Excluding bad debt expense, operating costs were reduced in excess of the Company's revenue decline. Plans are currently being implemented which are expected to further adjust the Company's cost structure in the second half of the year.* Cost of services, which includes the costs of obtaining, transporting and testing specimens, decreased $26.7 million in the second quarter from the prior year, and as a percentage of net revenues decreased to 59.7% from 62.7% in the prior year. Cost of services in the first half of 1997 decreased $34.5 million from the prior year, and as a percentage of net revenues decreased to 60.6% from 62.2% in the prior year. These decreases reflect the Company's progress in reducing its cost structure and the sale of the majority share of the Company's imaging business. Selling, general and administrative expenses, which includes the costs of the sales force, billing operations, bad debt expense and general management and - ------------------- * 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 heightened competition, impact of changes in payor mix, the impact upon the Company's expenses resulting from compliance with Medicare administrative policies, and reduction in tests ordered by existing customers. 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 administrative support, increased from the prior year by $7.6 million in the quarter and $5.6 million in the first half of 1997. This increase was principally due to bad debt expense which increased from 5.6% of net revenues to 7.7% of net revenues for the second quarter and from 6.2% of net revenues to 7.6% of net revenues for the first half of 1997. The Company continues to be impacted by Medicare medical necessity documentation requirements imposed during the past year. In the first half of 1997, additional medical necessity requirements were imposed by various state agencies and carriers, slowing the progress the Company had been making in certain of its billing operations. 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 $9.4 million and $18.9 for the second quarter and first half of 1997, 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 $4.7 million and $9.4 million for the second quarter and first half of 1997, 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 for potential amounts which could be required to satisfy the government's claims related to investigations ongoing at the time. The change in other, net for the second quarter compared with the prior year is primarily the result of the prior year including a gain on the sale of an investment, and the current year including a charge related to the integration of a small, strategic acquisition completed during the quarter. In addition to the above, affecting the comparison of the first half of 1997 to the prior year is the favorable settlement of a contractual obligation recorded in the first quarter of 1996. 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. Liquidity and Capital Resources Cash increased by $33.9 million over the year end balance, to $75.8 million at June 30, 1997, due to operating activities which provided cash of $80.5 million, partially offset by investing and financing activities which used cash of $46.6 million. Net cash provided by operating activities for the period improved by $63.8 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, improvements in the 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 65 days at June 30, 1997 compared to 70 days at year end and 68 days a year earlier. 9 The decrease in net cash used in investing activities is primarily the result of reduced capital spending compared to the prior year partially offset by a small, strategic acquisition in the second quarter of 1997. Capital spending for the first half of 1997 was $13.0 million compared to $46.9 million for the comparable prior year period. The Company estimates that it will invest approximately $40 million to $45 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 $7.5 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 June 30, 1997 was $46.1 million, or 11.5% of net revenues, compared to $53.6 million, or 12.6% of net revenues, in the prior year period. Adjusted EBITDA for the six months ended June 30, 1997 was $84.7 million, or 10.7% of net revenues, compared to $97.1 million, or 11.8% of net revenues, in the prior year period. These declines were principally due to an increase in bad debt expense and the Company's increased selectiveness in retaining and pursuing new business, which during the first quarter of the year reduced volume faster than costs were reduced. - ------------------- * 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 In March, 1997, the Company, together with SmithKline Beecham Clinical Laboratories Inc. and Laboratory Corporation of America Holdings, was served with a complaint in a purported class action brought in the Northern District of Alabama. The complaint asserts claims under the federal civil RICO statute relating to private reimbursement of billings by Damon Corporation that are similar to those that were the subject of the plea agreement and civil settlement and release that was signed in October 1996 between the Department of Justice and Damon Clinical Laboratories, a subsidiary of the Company. The ultimate outcome of the claim cannot be presently predicted. Corning Incorporated has agreed to indemnify the Company with respect to governmental claims pending at December 31, 1996 and (to the extent that such claims exceed $42 million) 50% of the aggregate of all judgments or settlement payments in respect of private claims, such as the class action, that are settled prior to January 1, 2001 and that relate to previously settled governmental claims (subject to a maximum indemnification of $25 million in the aggregate as to private claims and after taking into account any tax benefits realized by the Company). At June 30, 1997, the Company had an aggregate reserve of $78.3 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. 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. August 8, 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 ARTICLE 5 FDS Q2 '97
5 0001022079 Quest Diagnostics Incorporated 1000 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 75,834 0 287,987 108,622 27,921 523,470 273,140 309,262 1,397,193 251,466 0 0 1,000 1,183,046 (622,834) 1,397,193 789,626 789,626 478,907 730,734 897 59,825 21,112 24,861 12,726 12,135 0 0 0 12,135 0.42 0.42
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