Quest Diagnostics acquired select assets of Lenco Diagnostic Laboratories for $111 million in cash. This acquisition is expected to enhance the company's DIS business by expanding its presence in the New York market.

The Invigorate program is a multi-year initiative focused on driving savings and improving productivity across various areas of the company. The program targets 3% annual cost savings and productivity improvements to offset inflationary pressures.

The company estimates investing approximately $420 million in capital expenditures during 2024. These investments are primarily focused on supporting and growing existing operations, particularly in laboratory equipment, facilities, and automation technologies.

The company incurred $17 million of pre-tax charges related to restructuring and integration activities. These charges include $6 million for employee separation costs and the remainder for integration costs related to facility closures.

As part of the Invigorate program, the company is leveraging automation and artificial intelligence to improve productivity and quality across the value chain. This includes areas beyond the laboratory, such as reducing denials and enhancing the digital experience.

Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the quarterly period. There were no changes in internal control over financial reporting that materially affected or are reasonably likely to affect internal control.

The company is involved in various legal actions, including class actions and government investigations. These matters could result in adverse judgments, settlements, fines, or other relief, potentially impacting the company's financial results.

The company is still addressing legal issues related to the AMCA data security incident and a data security incident at its ReproSource subsidiary. These incidents highlight the ongoing risk of data breaches and the potential for related legal and financial liabilities.

The company uses derivative financial instruments to manage its exposure to market risks, including changes in interest rates. While the company believes its exposures to foreign exchange impacts and changes in commodity prices are not material, interest rate risk is actively managed.

The increase in DIS revenues was primarily driven by growth in the base business (excluding COVID-19 testing) and recent acquisitions. However, this growth was largely offset by a decrease in COVID-19 testing revenues.

Revenue per requisition increased slightly, driven by an increase in the number of tests per requisition and favorable test mix. This was largely offset by the impact of the decrease in COVID-19 testing.

DIS revenues in the base business (including the impact of recent acquisitions) increased by 6.1% compared to the prior year period. This indicates underlying strength in the company's core diagnostic testing markets.

Cost of services increased by $35 million compared to the prior year period. The increase was primarily driven by higher supplies expenses (principally due to the increased volumes), wage increases and higher benefit costs.

The Invigorate program aims to deliver 3% annual cost savings and productivity improvements to partially offset pressures from the current inflationary environment, including labor and benefit cost increases and reimbursement pressures.

Selling, general and administrative expenses were principally consistent with the prior year period. Year-over-year wage increases were principally offset by the impact of year-over-year reductions in headcount.

The company is leveraging automation and artificial intelligence to improve productivity and also improve quality across the entire value chain, not just in the laboratory as part of the Invigorate program.

The company is investing approximately $420 million in capital expenditures during 2024, principally related to investments in laboratory equipment and facilities, including laboratory automations and information technology to support our diagnostic offerings.

During June 2023, the Company acquired Haystack Oncology, Inc. ("Haystack"), an early-stage oncology company focused on minimal residual disease testing to aid in the detection of residual or recurring cancer and better inform therapy decisions.

As of March 31, 2024, $1.0 billion remained available under the company's share repurchase authorization. However, for both the three months ended March 31, 2024 and 2023, the Company repurchased no shares of its common stock.

During the first quarter of 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.75 per common share, up from $0.71 in 2023.

During April 2024, the company repaid $300 million of senior notes. Interest expense, net increased by $8 million compared to the prior year period primarily due to increased borrowings associated with the issuance, during November 2023, of $750 million aggregate principal amount of 6.40% senior notes due 2033.

In March 2024, the Securities and Exchange Commission issued a rule which will require companies to make certain climate-related disclosures in periodic filings. The Company is currently evaluating the impact of the adoption of the rule.

In support of its risk management program, $73 million in letters of credit under the $525 million secured receivables credit facility were outstanding as of March 31, 2024, providing collateral for current and future automobile liability and workers' compensation loss payments.

In 2020, two putative class action lawsuits were filed in the U.S. District Court for New Jersey against the Company and other defendants with respect to the Company's 401(k) plan. Discovery has been completed. Plaintiffs' motion for class certification and the Company's motion for summary judgment are pending.

The company derives a significant portion of its revenue from healthcare insurers and government payers. Changes in reimbursement rates or policies by these payers could impact the company's financial performance.

The decrease in COVID-19 testing had a negative impact on revenue growth. This highlights the company's sensitivity to changes in the demand for specific types of tests.

The Invigorate program is designed to offset inflationary pressures, including labor and benefit cost increases and reimbursement pressures. This indicates that the company is proactively addressing the challenges posed by the current economic environment.