Full Press Release Details
QUEST DIAGNOSTICS REPORTS THIRD QUARTER 2016 FINANCIAL RESULTS
MADISON, N.J., OCTOBER 20, 2016 - Quest Diagnostics Incorporated (NYSE: DGX), the world's leading provider of diagnostic information services, announced today that for the third quarter ended September 30, 2016, reported net income was $192 million, or $1.34 per diluted share, compared to $342 million, or $2.35 per diluted share, in 2015.
Adjusted net income was $182 million, compared to $172 million in 2015. Adjusted diluted EPS excluding amortization was $1.37 in the quarter, compared to $1.28 in 2015. In the third quarter of 2016, reported net income benefitted by $10 million after tax, or $0.07 per diluted share, principally associated with a gain on escrow recovery associated with an acquisition partially offset by restructuring and integration charges. In the third quarter of 2015, reported net income benefitted from the gain on the contribution to Q Squared Solutions, the clinical trials joint venture with Quintiles, totaling $189 million after tax, or $1.30 per diluted share. This benefit was partially offset by net charges of $19 million after tax, or $0.13 per diluted share, primarily related to restructuring and integration charges.
Third quarter 2016 revenues were $1.89 billion. Revenues grew 0.3% versus the prior year on a reported basis, and grew 2.1% on an equivalent basis. 2015 equivalent revenues exclude third quarter 2015 Celera and Focus Diagnostics products revenues. Diagnostic Information Services revenues grew 2.1% compared to a year ago. Volume, measured by the number of requisitions, grew 2.0% versus the prior year and revenue per requisition was flat.
"We grew reported revenues 0.3% in the third quarter and equivalent revenues were up by more than 2%, demonstrating good progress in 2016, driven in part by our expanding health system relationships," said Steve Rusckowski, President and CEO. "The relationships we've announced this year, including those with Optum, HCA, Safeway, Ancestry, IBM, and others, position us for continued accelerating growth and will help us drive operational excellence. Based on our results through the third quarter we are narrowing our EPS guidance range and are on track to meet our commitments for the year."
For the third quarter of 2016, reported operating income was $322 million, or 17.1% of revenues, compared to $631 million, or 33.6% of revenues, in 2015. Adjusted operating income was $320 million, or 17.0% of revenues, compared to $325 million, or 17.3% of revenues, in 2015. Third quarter 2015 reported operating income benefitted from the $334 million pre-tax gain on the contribution to the clinical trials joint venture. Cash provided by operations was $301 million in the third quarter of 2016, compared to $212 million in the third quarter of 2015.
Year to Date Performance
Revenues were $5.65 billion for the first nine months of 2016. Revenues grew 0.2% versus the prior year on a reported basis, and grew 2.8% on an equivalent basis. Reported net income for the first nine months of 2016 was $490 million, or $3.42 per diluted share, compared to $521 million, or $3.58 per diluted share, in 2015. Reported net income in 2016 was negatively impacted by charges of $19 million after tax, or $0.13 per diluted share, principally associated with expenses related to restructuring and integration activities and the early retirement of debt, partially offset by the gain on the sale of the company's Focus Diagnostics products business and a gain on escrow recovery associated with an acquisition. Reported net income in 2015 was favorably impacted by a net benefit of $38 million, or $0.27 per diluted share, due to the gain on the contribution to the clinical trials joint venture partially offset by charges associated with the early retirement of debt as well as restructuring and integration expenses. Adjusted net income was $509 million for the first nine months of 2016, compared to $483 million in 2015. Adjusted diluted EPS excluding amortization was $3.84 for the first nine months of 2016, compared to $3.58 in 2015.
On a reported basis, operating income was $1.0 billion, or 17.7% of revenues, compared to $1.16 billion, or 20.5% of revenues, in 2015. Adjusted operating income for the first nine months of 2016 was $925 million, or 16.4% of revenues, compared to $915 million, or 16.2% of revenues for 2015. Cash provided by operations for the nine months of 2016 was $765 million, compared to $549 million in 2015.
Outlook for Full-Year 2016
For 2016, the company estimates results, before special items, as follows:
Note on Non-GAAP Financial Measures
As used in this press release the term "reported" refers to measures under the accounting principles generally accepted in the United States ("GAAP"). The term "adjusted" refers to non-GAAP measures as follows: (i) for the purpose of income measures the term "adjusted" refers to operating performance measures that exclude special items such as the gain on sale of the Focus Diagnostics products business, gain on the contribution to the clinical trials joint venture, retirement of debt and related refinancing charges, restructuring and integration charges, and other items; (ii) the term "adjusted diluted EPS excluding amortization" represents the company's diluted EPS before the impact of special items and amortization; and (iii) reference to "revenues on an equivalent basis" when comparing 2016 results to 2015 represents 2015 reported revenues excluding all clinical trials testing and Celera products revenues and Focus Diagnostics products revenues subsequent to April 2015.
Non-GAAP "adjusted" measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP "adjusted" measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts or for incentive compensation purposes. We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance. The attached tables include reconciliations of adjusted measures to GAAP measures.
Conference Call Information
Quest Diagnostics will hold its quarterly conference call to discuss financial results beginning at 8:30 a.m. Eastern Time today. The conference call can also be accessed in listen-only mode by dialing 773-681-5898, passcode 3214469. The company suggests participants dial in approximately 10 minutes before the call. A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or by phone at 866-435-1319 for domestic callers or 203-369-1017 for international callers. Telephone replays will be available from 10:30 a.m. Eastern Time on October 20, 2016 until midnight Eastern Time on November 19, 2016. Anyone listening to the call is encouraged to read the company's periodic reports, on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.
About Quest Diagnostics
Quest Diagnostics empowers people to take action to improve health outcomes. Derived from the world's largest database of clinical lab results, our diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve health care management. Quest annually serves one in three adult Americans and half the physicians and hospitals in the United States, and our 44,000 employees understand that, in the right hands and with the right context, our diagnostic insights can inspire actions that transform lives. www.QuestDiagnostics.com.
The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, changes in government regulations, changing relationships with customers, payers, suppliers or strategic partners and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the "Business," "Risk Factors," "Cautionary Factors that May Affect Future Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of those reports.
This earnings release, including the attached financial tables, is available online in the Newsroom section at www.QuestDiagnostics.com.
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2016 and 2015
(in millions, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Net revenues | $ | 1,885 | $ | 1,880 | $ | 5,654 | $ | 5,644 | |||||||
| Operating costs, expenses and other income: | |||||||||||||||
| Cost of services | 1,157 | 1,162 | 3,456 | 3,507 | |||||||||||
| Selling, general and administrative | 409 | 402 | 1,281 | 1,250 | |||||||||||
| Amortization of intangible assets | 18 | 20 | 54 | 61 | |||||||||||
| Gain on disposition of business | - | (334 | ) | (118 | ) | (334 | ) | ||||||||
| Other operating income, net | (21 | ) | (1 | ) | (20 | ) | - | ||||||||
| Total operating costs, expenses and other income, net | 1,563 | 1,249 | 4,653 | 4,484 | |||||||||||
| Operating income | 322 | 631 | 1,001 | 1,160 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense, net | (37 | ) | (35 | ) | (107 | ) | (117 | ) | |||||||
| Other income (expense), net | 4 | (4 | ) | (50 | ) | (146 | ) | ||||||||
| Total non-operating expenses, net | (33 | ) | (39 | ) | (157 | ) | (263 | ) | |||||||
| Income before income taxes and equity in earnings of equity method investees | 289 | 592 | 844 | 897 | |||||||||||
| Income tax expense | (95 | ) | (239 | ) | (345 | ) | (359 | ) | |||||||
| Equity in earnings of equity method investees, net of taxes | 11 | 1 | 30 | 15 | |||||||||||
| Net income | 205 | 354 | 529 | 553 | |||||||||||
| Less: Net income attributable to noncontrolling interests | 13 | 12 | 39 | 32 | |||||||||||
| Net income attributable to Quest Diagnostics | $ | 192 | $ | 342 | $ | 490 | $ | 521 | |||||||
| Earnings per share attributable to Quest Diagnostics' common stockholders: | |||||||||||||||
| Basic | $ | 1.37 | $ | 2.37 | $ | 3.46 | $ | 3.61 | |||||||
| Diluted | $ | 1.34 | $ | 2.35 | $ | 3.42 | $ | 3.58 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 139 | 144 | 141 | 144 | |||||||||||
| Diluted | 142 | 145 | 143 | 145 |
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Balance Sheets
September 30, 2016 and December 31, 2015
(in millions, except per share data)
| September 30, 2016 | December 31, 2015 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 406 | $ | 133 | |||
| Accounts receivable, net | 966 | 901 | |||||
| Inventories | 82 | 84 | |||||
| Prepaid expenses and other current assets | 179 | 207 | |||||
| Assets held for sale | 9 | 176 | |||||
| Total current assets | 1,642 | 1,501 | |||||
| Property, plant and equipment, net | 952 | 925 | |||||
| Goodwill | 6,000 | 5,905 | |||||
| Intangible assets, net | 972 | 984 | |||||
| Investment in equity method investees | 452 | 473 | |||||
| Other assets | 155 | 174 | |||||
| Total assets | $ | 10,173 | $ | 9,962 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 1,039 | $ | 1,014 | |||
| Current portion of long-term debt | 7 | 159 | |||||
| Total current liabilities | 1,046 | 1,173 | |||||
| Long-term debt | 3,815 | 3,492 | |||||
| Other liabilities | 542 | 514 | |||||
| Redeemable noncontrolling interest | 76 | 70 | |||||
| Stockholders' equity: | |||||||
| Quest Diagnostics stockholders' equity: | |||||||
| Common stock, par value $0.01 per share; 600 shares authorized at both September 30, 2016 and December 31, 2015; 216 shares issued at both September 30, 2016 and December 31, 2015 | 2 | 2 | |||||
| Additional paid-in capital | 2,526 | 2,481 | |||||
| Retained earnings | 6,520 | 6,199 | |||||
| Accumulated other comprehensive loss | (61 | ) | (38 | ) | |||
| Treasury stock, at cost; 77 shares and 73 shares at September 30, 2016 and December 31, 2015, respectively | (4,324 | ) | (3,960 | ) | |||
| Total Quest Diagnostics stockholders' equity | 4,663 | 4,684 | |||||
| Noncontrolling interests | 31 | 29 | |||||
| Total stockholders' equity | 4,694 | 4,713 | |||||
| Total liabilities and stockholders' equity | $ | 10,173 | $ | 9,962 |
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2016 and 2015
| Nine Months Ended September 30, | |||||||
| 2016 | 2015 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 529 | $ | 553 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 186 | 230 | |||||
| Provision for doubtful accounts | 242 | 232 | |||||
| Deferred income tax provision | 19 | 138 | |||||
| Stock-based compensation expense | 52 | 39 | |||||
| Gain on disposition of business | (118 | ) | (334 | ) | |||
| Other, net | (15 | ) | (4 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (316 | ) | (214 | ) | |||
| Accounts payable and accrued expenses | 43 | (35 | ) | ||||
| Income taxes payable | 74 | (15 | ) | ||||
| Termination of interest rate swap agreements | 54 | - | |||||
| Other assets and liabilities, net | 15 | (41 | ) | ||||
| Net cash provided by operating activities | 765 | 549 | |||||
| Cash flows from investing activities: | |||||||
| Business acquisitions, net of cash acquired | (139 | ) | (41 | ) | |||
| Proceeds from disposition of businesses | 270 | - | |||||
| Capital expenditures | (165 | ) | (169 | ) | |||
| Investment in equity method investee | - | (37 | ) | ||||
| (Increase) decrease in investments and other assets | (11 | ) | 10 | ||||
| Net cash used in investing activities | (45 | ) | (237 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from borrowings | 1,869 | 2,214 | |||||
| Repayments of debt | (1,722 | ) | (2,235 | ) | |||
| Purchases of treasury stock | (440 | ) | (174 | ) | |||
| Exercise of stock options | 63 | 58 | |||||
| Employee payroll tax withholdings on stock issued under stock-based compensation plans | (10 | ) | (6 | ) | |||
| Dividends paid | (168 | ) | (158 | ) | |||
| Distributions to noncontrolling interests | (31 | ) | (28 | ) | |||
| Sale of noncontrolling interest in subsidiary | - | 51 | |||||
| Payment of deferred business acquisition consideration | - | (51 | ) | ||||
| Other financing activities, net | (8 | ) | (52 | ) | |||
| Net cash used in financing activities | (447 | ) | (381 | ) | |||
| Net change in cash and cash equivalents | 273 | (69 | ) | ||||
| Cash and cash equivalents, beginning of period | 133 | 192 | |||||
| Cash and cash equivalents, end of period | $ | 406 | $ | 123 | |||
| Cash paid during the period for: | |||||||
| Interest | $ | 116 | $ | 151 | |||
| Income taxes | $ | 262 | $ | 249 |
Notes to Financial Tables
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (in millions, except per share data) | |||||||||||||||
| Amounts attributable to Quest Diagnostics' common stockholders: | |||||||||||||||
| Net income attributable to Quest Diagnostics | $ | 192 | $ | 342 | $ | 490 | $ | 521 | |||||||
| Less: earnings allocated to participating securities | 2 | 2 | 3 | 3 | |||||||||||
| Earnings available to Quest Diagnostics' common stockholders - basic and diluted | $ | 190 | $ | 340 | $ | 487 | $ | 518 | |||||||
| Weighted average common shares outstanding - basic | 139 | 144 | 141 | 144 | |||||||||||
| Effect of dilutive securities: | |||||||||||||||
| Stock options and performance share units | 3 | 1 | 2 | 1 | |||||||||||
| Weighted average common shares outstanding - diluted | 142 | 145 | 143 | 145 | |||||||||||
| Earnings per share attributable to Quest Diagnostics' common stockholders: | |||||||||||||||
| Basic | $ | 1.37 | $ | 2.37 | $ | 3.46 | $ | 3.61 | |||||||
| Diluted | $ | 1.34 | $ | 2.35 | $ | 3.42 | $ | 3.58 |
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (dollars in millions, except per share data) | |||||||||||||||
| Adjusted operating income: | |||||||||||||||
| Operating income | $ | 322 | $ | 631 | $ | 1,001 | $ | 1,160 | |||||||
| Gain on disposition of business (a) | - | (334 | ) | (118 | ) | (334 | ) | ||||||||
| Restructuring and integration charges (b) | 18 | 29 | 55 | 83 | |||||||||||
| Other (c) | (20 | ) | (1 | ) | (13 | ) | 6 | ||||||||
| Adjusted operating income | $ | 320 | $ | 325 | $ | 925 | $ | 915 | |||||||
| Adjusted operating income as a percentage of net revenues: | |||||||||||||||
| Operating income as a percentage of net revenues | 17.1 | % | 33.6 | % | 17.7 | % | 20.5 | % | |||||||
| Gain on disposition of business (a) | - | (17.8 | ) | (2.1 | ) | (5.9 | ) | ||||||||
| Restructuring and integration charges (b) | 1.0 | 1.5 | 1.0 | 1.5 | |||||||||||
| Other (c) | (1.1 | ) | - | (0.2 | ) | 0.1 | |||||||||
| Adjusted operating income as a percentage of net revenues | 17.0 | % | 17.3 | % | 16.4 | % | 16.2 | % | |||||||
| Adjusted net income: | |||||||||||||||
| Net income attributable to Quest Diagnostics | $ | 192 | $ | 342 | $ | 490 | $ | 521 | |||||||
| Gain on disposition of business (a) | - | (334 | ) | (118 | ) | (334 | ) | ||||||||
| Retirement of debt and related refinancing charges (d) | - | - | 48 | 150 | |||||||||||
| Restructuring and integration charges (b) | 18 | 34 | 58 | 88 | |||||||||||
| Other (c) | (20 | ) | (1 | ) | (6 | ) | 6 | ||||||||
| Income tax expense (benefit) associated with the special items above (e) | (8 | ) | 131 | 37 | 52 | ||||||||||
| Adjusted net income | $ | 182 | $ | 172 | $ | 509 | $ | 483 | |||||||
| Adjusted diluted EPS excluding amortization expense: | |||||||||||||||
| Diluted earnings per common share | $ | 1.34 | $ | 2.35 | $ | 3.42 | $ | 3.58 | |||||||
| Gain on disposition of business (a) (e) | - | (1.30 | ) | (0.24 | ) | (1.30 | ) | ||||||||
| Retirement of debt and related refinancing charges (d) (e) | - | (0.01 | ) | 0.21 | 0.63 | ||||||||||
| Restructuring and integration charges (b) (e) | 0.08 | 0.14 | 0.25 | 0.37 | |||||||||||
| Other (c) (e) | (0.15 | ) | - | (0.09 | ) | 0.03 | |||||||||
| Amortization expense (f) | 0.10 | 0.10 | 0.29 | 0.27 | |||||||||||
| Adjusted diluted EPS excluding amortization expense | $ | 1.37 | $ | 1.28 | $ | 3.84 | $ | 3.58 |
| Revenue on an equivalent basis: | |||||||||||||||
| Net revenues | $ | 1,885 | $ | 1,880 | $ | 5,654 | $ | 5,644 | |||||||
| Excluded revenue (g) | - | (34 | ) | - | (145 | ) | |||||||||
| Revenue on an equivalent basis | $ | 1,885 | $ | 1,846 | $ | 5,654 | $ | 5,499 |
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (dollars in millions) | |||||||||||||||
| Cost of services | $ | 8 | $ | 20 | $ | 25 | $ | 51 | |||||||
| Selling, general and administrative | 10 | 9 | 30 | 32 | |||||||||||
| Operating income | $ | 18 | $ | 29 | $ | 55 | $ | 83 | |||||||
| Equity in earnings of equity method investees, net of taxes | $ | - | $ | 5 | $ | 3 | $ | 5 |
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (dollars in millions) | |||||||||||||||
| Selling, general and administrative | $ | - | $ | - | $ | 6 | $ | 7 | |||||||
| Other operating income, net | (20 | ) | (1 | ) | (19 | ) | (1 | ) | |||||||
| Operating income | $ | (20 | ) | $ | (1 | ) | $ | (13 | ) | $ | 6 | ||||
| Other non-operating expense, net | $ | - | $ | - | $ | 7 | $ | - |
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (dollars in millions) | |||||||||||||||
| Interest expense, net | $ | - | $ | - | $ | - | $ | 6 | |||||||
| Other non-operating expense, net | - | - | 48 | 144 | |||||||||||
| $ | - | $ | - | $ | 48 | $ | 150 |
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (dollars in millions) | |||||||||||||||
| Gain on disposition of business | $ | - | $ | 145 | $ | 84 | $ | 145 | |||||||
| Retirement of debt and related refinancing charges | - | (2 | ) | (18 | ) | (58 | ) | ||||||||
| Restructuring and integration charges | (8 | ) | (13 | ) | (23 | ) | (34 | ) | |||||||
| Other | - | 1 | (6 | ) | (1 | ) | |||||||||
| $ | (8 | ) | $ | 131 | $ | 37 | $ | 52 |
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (dollars in millions) | |||||||||||||||
| Amortization of intangible assets | $ | 18 | $ | 20 | $ | 54 | $ | 61 | |||||||
| Equity in earnings of equity method investees, net of taxes | 4 | 4 | 12 | 4 | |||||||||||
| $ | 22 | $ | 24 | $ | 66 | $ | 65 |
At September 30, 2016, $532 million remained available under the company's share repurchase authorizations.
| Low | High | ||||||
| (dollars in millions, except per share data) | |||||||
| Adjusted diluted EPS excluding amortization expense: | |||||||
| Diluted earnings per common share | $ | 4.47 | $ | 4.52 | |||
| Gain on disposition of business (a) | (0.24 | ) | (0.24 | ) | |||
| Retirement of debt and related refinancing charges (b) | 0.21 | 0.21 | |||||
| Restructuring and integration charges (c) | 0.34 | 0.34 | |||||
| Other (d) | (0.09 | ) | (0.09 | ) | |||
| Amortization expense (e) | 0.38 | 0.38 | |||||
| Adjusted diluted EPS excluding amortization expense | $ | 5.07 | $ | 5.12 |
| Amortization of intangible assets | $ | 72 | |
| Amortization expense included in equity in earnings of equity method investees | 17 | ||
| Total pre-tax amortization expense | $ | 89 | |
| Total amortization expense, net of an estimated tax benefit | $ | 55 |
| Three Months Ended | Year Ended | ||||||||||||||||||
| March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | December 31, 2015 | |||||||||||||||
| (dollars in millions) | |||||||||||||||||||
| 2015 Revenue on an equivalent basis: | |||||||||||||||||||
| Net revenues | $ | 1,839 | $ | 1,925 | $ | 1,880 | $ | 1,849 | $ | 7,493 | |||||||||
| Excluded revenue: | |||||||||||||||||||
| Clinical trials (a) | (40 | ) | (45 | ) | - | - | (85 | ) | |||||||||||
| Products (b) | (7 | ) | (19 | ) | (34 | ) | (24 | ) | (84 | ) | |||||||||
| 2015 Revenue on an equivalent basis | $ | 1,792 | $ | 1,861 | $ | 1,846 | $ | 1,825 | $ | 7,324 | |||||||||
| 2016 Revenue outlook: | |||||||||||||||||||
| 2015 Revenue on an equivalent basis | $ | 7,324 | |||||||||||||||||
| 2016 Equivalent revenue growth | 2.5 | % | |||||||||||||||||
| 2016 Revenue outlook | $ | 7,510 |