For the second quarter, operating income increased to $359 million, or 18.9% of revenues, and included the $15.5 million insurance recovery. Operating income was $308 million, or 16.8% of revenues, for the second quarter of 2008.
For the second quarter of 2009, bad debt expense as a percentage of revenues was 4.4%, compared to 4.5% in the first quarter and unchanged from the prior year. Days sales outstanding improved to 43 days, compared to 46 days at the end of the second quarter of 2008 and 44 days at the end of last year. Cash flow used in operations, which reflects the $308 million payment related to the previously announced NID settlement, was $9 million. In the second quarter of 2008, cash provided by operations was $213 million. During the quarter, the company made capital expenditures of $36 million.
First Half Performance
For the first six months of 2009, income from continuing operations increased to $357 million, or $1.89 per diluted share, from $303 million, or $1.54 per diluted share for the first half of 2008. Revenues increased 2.4% to $3.7 billion.
Operating income for the first half of 2009 increased to $680 million, or 18.3% of revenues, compared to $588 million, or 16.2% of revenues for 2008. Cash provided by operations, which was reduced by $308 million related to the payment of the NID settlement, was $264 million compared to $371 million for 2008. During the first half of 2009, the company repurchased $250 million of its common shares, and made capital expenditures of $76 million.
Outlook for 2009
For 2009, the company today increased its estimated earnings per diluted share from continuing operations to between $3.70 and $3.80. Previously, the company estimated diluted earnings per share of between $3
|SOURCE Quest Diagnostics|
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