The COVID-19 pandemic is likely to impact the Company's ability to comply with applicable financial covenants, beginning as early as the end of the second quarter.
As of March 31, 2020, the Company was in compliance with all applicable financial covenants. In particular, the unsecured revolving credit facility requires the Company to maintain a leverage ratio of no more than 3.5 times EBITDA as of the last day of each fiscal quarter. The unsecured revolving credit facility is also subject to certain financial covenants and limitations on indebtedness. The Company's secured receivables facility is subject to certain financial covenants with respect to the receivables that comprise the borrowing base and secure the borrowings under the facility. In April, the Company borrowed $100 million under the secured receivables credit facility and $100 million under the senior unsecured revolving credit facility. There were no outstanding borrowings under these facilities as of March 31st. (a) For further details impacting the year-over-year comparisons related to operating income, operating income as a percentage of net revenues, net income attributable to Quest Diagnostics, and diluted EPS, see note 2 of the financial tables attached below.Īs of March 31, 2020, Quest Diagnostics had cash on hand of $342 million and had $1.3 billion of borrowing capacity available under existing credit facilities, including $529 million available under a secured receivables credit facility and $750 million available under a senior unsecured revolving credit facility. Quest has been at the tip of the spear in responding to this crisis, and we continue to play a critical role in the next phase of containing COVID-19. We believe antibody testing will become a critical tool to understand who has been exposed to the virus and who may have immunity. To date, we have performed approximately one million molecular tests and have begun to perform blood-based antibody testing. "I am proud that the Quest team has stepped up to bring crucial COVID-19 testing capacity to the nation during this crisis. The temporary actions we are taking, combined with our cash position and access to additional capital, put us in a strong financial position to operate in a range of scenarios as we navigate the COVID-19 crisis. These include pay cuts for me, the board, and my team suspension of certain benefits, such as our 401(k) match reduced hours for employees whose work has significantly declined and approved furloughs for employees with diminished work who expressed interest.
#QUEST DIAGNOSTICS LOGO SERIES#
Rusckowski continued: "We are managing the company for the long term and have taken a series of actions to protect our financial flexibility. During the last two weeks of March, volumes declined in excess of 40%, including COVID-19 testing." "However, in March, we experienced a material decline in testing volumes due to the COVID-19 pandemic.
"We were very pleased with Quest's results in January and February, which were consistent with the full-year guidance we provided in January," said Steve Rusckowski, Chairman, CEO and President. SECAUCUS, N.J., Ap/PRNewswire/ - Quest Diagnostics Incorporated (NYSE: DGX), the world's leading provider of diagnostic information services, announced today financial results for the first quarter ended March 31, 2020.
0 kommentar(er)
