 |
Press Releases
- Revenue increases 2 percent to $25 billion
- Earnings from continuing operations of $215 million, or $0.61 per diluted share
- Non-GAAP earnings from continuing operations1 of $243 million or $0.69 per diluted share2
- Full-year outlook for non-GAAP diluted EPS from continuing operations raised to $2.54 to $2.60 from previous range of $2.38 to $2.48
DUBLIN, Ohio, Feb. 3, 2011 /PRNewswire/ — Cardinal Health today reported a 2 percent increase in fiscal 2011 second-quarter revenue to $25.4 billion and a 21 percent increase in non-GAAP diluted earnings per share (EPS) from continuing operations to $0.69. On a GAAP basis, EPS from continuing operations declined 5 percent to $0.61, reflecting prior-year gains from the sale of CareFusion stock and a litigation benefit, as well as acquisition-related costs in the current quarter.
"We continued the momentum from our first quarter to close out the first half of our fiscal year in a position of strength," said George Barrett, chairman and chief executive officer of Cardinal Health. "Our organization continues to execute well on our priorities. The Pharmaceutical segment had an excellent quarter with double-digit profit growth over the prior year. Our Medical segment faced commodity pressures and a light flu season compared to the prior year, resulting in flat year-over-year profit contribution for the quarter, but the segment achieved favorable sequential performance versus the first quarter.
"Our second quarter included the completion of two, strategic acquisitions which, along with our recent move in specialty, will provide immediate contribution to our earnings and will better position the company for future growth. We completed the acquisition of Kinray, which dramatically increases our presence in the independent pharmacy community by adding approximately 2,000 pharmacy customers, and we closed our acquisition of Yong Yu in China. Yong Yu provides us with an outstanding platform in one of the most important and rapidly growing health care markets in the world.
"Based on our strong performance in the first half of fiscal 2011 and the anticipated contributions from our recent acquisitions, we are increasing our full-year guidance range for non-GAAP diluted EPS from continuing operations to $2.54 to $2.60."
Q2 FY11 SUMMARY
|
Q2 FY11 |
Q2 FY10 |
Y/Y |
||
|
Revenue |
$25.4 billion |
$24.9 billion |
2% |
|
|
Operating Earnings |
$344 million |
$367 million |
(6)% |
|
|
Non-GAAP Operating Earnings3 |
$378 million |
$358 million |
5% |
|
|
Earnings from Continuing Operations |
$215 million |
$230 million |
(7)% |
|
|
Non-GAAP Earnings from Continuing Operations |
$243 million |
$207 million |
17% |
|
|
Diluted EPS from Continuing Operations |
$0.61 |
$0.64 |
(5)% |
|
|
Non-GAAP Diluted EPS from Continuing Operations |
$0.69 |
$0.57 |
21% |
|
Non-GAAP diluted EPS from continuing operations benefited from a lower-than-usual tax rate and fewer shares outstanding. Second-quarter GAAP earnings from continuing operations were $215 million or $0.61 per share. GAAP results include a net, after-tax dilutive impact of $0.08 per share, primarily from acquisition-related costs in the quarter. Prior year GAAP results also included the gain on the sale of CareFusion stock and the benefit from a previously disclosed insurance recovery related to resolved litigation.
SEGMENT RESULTS
Pharmaceutical Segment
Revenue for the Pharmaceutical segment increased 2 percent to $23.2 billion primarily driven by a 6 percent increase in sales to non-bulk customers. Segment profit increased 11 percent to $289 million reflecting the contribution from stronger generic sales and sourcing initiatives, including the impact of generic launches. Sales under the SOURCE(SM) Generics program increased 31 percent. The segment also benefited from excellent performance within the Specialty Solutions business.
|
Q2 FY11 |
Q2 FY10 |
Y/Y |
||
|
Revenue |
$23.2 billion |
$22.7 billion |
2% |
|
|
Segment Profit |
$289 million |
$260 million |
11% |
|
Medical Segment
Revenue for the Medical segment declined 1 percent to $2.2 billion, primarily driven by previously disclosed fiscal 2010 customer losses and a strong flu season in the prior-year period. Segment profit was $102 million, even with the prior year, resulting from cost reductions that offset the negative impact of commodity price increases on the cost of products sold and lower sales of flu-related products compared to the prior-year period. Segment results were also dampened by sluggish in-patient procedural volumes.
|
Q2 FY11 |
Q2 FY10 |
Y/Y |
||
|
Revenue |
$2.21 billion |
$2.23 billion |
(1)% |
|
|
Segment Profit |
$102 million |
$103 million |
- |
|
ADDITIONAL SECOND-QUARTER AND RECENT HIGHLIGHTS
- Early renewal of a distribution agreement with Walgreens to supply pharmaceuticals to its national network of retail pharmacies.
- Signed agreements with Highmark Blue Cross Blue Shield, AmeriHealth and CareFirst Blue Cross Blue Shield for P4 Pathways programs.
- Approval of a new, three-year $750 million authorization to repurchase Cardinal Health common shares.
- Issuance of $500 million in 4.625 percent notes due in 2020.
CONFERENCE CALL
Cardinal Health will host a webcast and conference call today at 8:30 a.m. EST to discuss second-quarter results and its future outlook. To access the call and corresponding slide presentation, go to the Investor page at cardinalhealth.com/investors or dial 857-350-1669 passcode 24786608. Presentation slides and an audio replay will be archived on the website after the conclusion of the meeting. The audio replay will also be available until March 3 by dialing 617-801-6888, passcode 67121871.
UPCOMING WEBCAST EVENTS
- UBS 21st Annual Global Healthcare Services Conference on Feb. 7 at 11:30 a.m. EST at the Grand Hyatt in New York.
- Citi 2011 Global Health Care Conference on March 1 at 8:30 a.m. EST at the New York Hilton.
- Barclays Capital 2011 Global Healthcare Conference on March 16 at 9 a.m. EDT at the Loews Hotel in Miami.
At these events, Cardinal Health executives will discuss the company's diverse products and services, company performance and strategies for continued growth. To access more details and live webcasts of these events, including remarks, go to the Investors page at cardinalhealth.com.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $99 billion health care services company that improves the cost-effectiveness of health care. As the business behind health care, Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers and physician offices focus on patient care while reducing costs, improving efficiency and quality, and increasing profitability. Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products to more than 60,000 locations each day. The company is also a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company supports the growing diagnostic industry by supplying medical products to clinical laboratories and operating the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #17 on the Fortune 500, Cardinal Health employs more than 30,000 people worldwide. More information about the company may be found at cardinalhealth.com.
1 Non-GAAP earnings from continuing operations: Earnings from continuing operations excluding (1) restructuring and employee severance, (2) acquisition related costs, (3) impairments and loss on sale of assets, (4) litigation (credits)/charges, net, (5) Other Spinoff Costs (as defined at the end of the attached tables), and (6) gain on sale of CareFusion stock, each net of tax.
2 Non-GAAP diluted EPS from continuing operations: Non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding.
3 Non-GAAP operating earnings: Operating earnings excluding (1) restructuring and employee severance, (2) acquisition related costs, (3) impairments and loss on sale of assets, (4) litigation (credits)/charges, net, and (5) Other Spinoff Costs included within distribution, selling, general and administrative expenses.
A reconciliation of the differences between these non-GAAP financial measures and their most directly comparable GAAP financial measures is provided in the attached tables and at cardinalhealth.com.
Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, analyst presentations and financial information regarding Cardinal Health is routinely posted and accessible on the Investors page at cardinalhealth.com.
Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and expense accruals. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include (but are not limited to) uncertainties related to demand for Cardinal Health's products and services; uncertainties relating to Cardinal Health's ability to retain customers and employees of acquired businesses, including Kinray and Yong Yu, to successfully integrate the acquired businesses into Cardinal Health's operations, and to achieve the expected benefits from the acquired businesses; uncertainties due to government health care reform including the recently enacted federal health care reform legislation; competitive pressures in Cardinal Health's various lines of business; the loss of one or more key customer or supplier relationships or changes to the terms of those relationships; the timing of generic and branded pharmaceutical introductions and the frequency or rate of branded pharmaceutical price appreciation or generic pharmaceutical price deflation; changes in the distribution patterns or reimbursement rates for health care products and/or services; the effects of any investigation by any regulatory authority, including with respect to compliance with the Foreign Corrupt Practices Act. In addition, Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) and exhibits to those reports. This news release reflects management's views as of Feb. 3, 2011. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) |
||||||||
|
Second Quarter |
||||||||
|
(in millions, except per Common Share amounts) |
2011 |
2010 |
% Change |
|||||
|
Revenue |
$ 25,371.8 |
$ 24,919.7 |
2 % |
|||||
|
Cost of products sold |
24,377.6 |
23,962.0 |
2 % |
|||||
|
Gross margin |
994.2 |
957.7 |
4 % |
|||||
|
Operating expenses |
||||||||
|
Distribution, selling, general and administrative expenses |
621.9 |
605.2 |
3 % |
|||||
|
Restructuring and employee severance |
2.6 |
10.2 |
N.M. |
|||||
|
Acquisition related costs |
18.0 |
0.5 |
N.M. |
|||||
|
Impairments and loss on sale of assets |
1.7 |
0.4 |
N.M. |
|||||
|
Litigation (credits)/charges, net |
6.1 |
(25.4) |
N.M. |
|||||
|
Operating earnings |
343.9 |
366.8 |
(6)% |
|||||
|
Other income, net |
(5.8) |
(5.6) |
3 % |
|||||
|
Interest expense, net |
21.9 |
27.4 |
(20)% |
|||||
|
Gain on sale of investment in CareFusion |
- |
(20.0) |
N.M. |
|||||
|
Earnings before income taxes and discontinued operations |
327.8 |
365.0 |
(10)% |
|||||
|
Provision for income taxes |
112.8 |
134.8 |
(16)% |
|||||
|
Earnings from continuing operations |
215.0 |
230.2 |
(7)% |
|||||
|
Earnings from discontinued operations (net of tax expense |
||||||||
|
of $0.0 million and $2.4 million for the second quarter of fiscal 2011 and 2010, respectively) |
0.4 |
4.3 |
N.M. |
|||||
|
Net earnings |
$ 215.4 |
$ 234.5 |
(8)% |
|||||
|
Basic earnings per Common Share: |
||||||||
|
Continuing operations |
$ 0.62 |
$ 0.64 |
(3)% |
|||||
|
Discontinued operations |
- |
0.01 |
N.M. |
|||||
|
Net basic earnings per Common Share |
$ 0.62 |
$ 0.65 |
(5)% |
|||||
|
Diluted earnings per Common Share: |
||||||||
|
Continuing operations |
$ 0.61 |
$ 0.64 |
(5)% |
|||||
|
Discontinued operations |
- |
0.01 |
N.M. |
|||||
|
Net diluted earnings per Common Share |
$ 0.61 |
$ 0.65 |
(6)% |
|||||
|
Weighted average number of Common Shares outstanding: |
||||||||
|
Basic |
347.6 |
359.0 |
||||||
|
Diluted |
350.7 |
361.0 |
||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) |
||||||||
|
Year-to-Date |
||||||||
|
(in millions, except per Common Share amounts) |
2011 |
2010 |
% Change |
|||||
|
Revenue |
$ 49,809.3 |
$ 49,700.4 |
- |
|||||
|
Cost of products sold |
47,852.9 |
47,833.9 |
- |
|||||
|
Gross margin |
1,956.4 |
1,866.5 |
5 % |
|||||
|
Operating expenses |
||||||||
|
Distribution, selling, general and administrative expenses |
1,213.8 |
1,191.3 |
2 % |
|||||
|
Restructuring and employee severance |
4.4 |
69.8 |
N.M. |
|||||
|
Acquisition related costs |
19.3 |
0.6 |
N.M. |
|||||
|
Impairments and loss on sale of assets |
3.6 |
24.0 |
N.M. |
|||||
|
Litigation (credits)/charges, net |
7.5 |
(25.9) |
N.M. |
|||||
|
Operating earnings |
707.8 |
606.7 |
17 % |
|||||
|
Other income, net |
(13.2) |
(14.5) |
(9)% |
|||||
|
Interest expense, net |
43.9 |
61.3 |
(28)% |
|||||
|
Loss on extinguishment of debt |
- |
39.9 |
N.M. |
|||||
|
Gain on sale of investment in CareFusion |
(74.8) |
(20.0) |
N.M. |
|||||
|
Earnings before income taxes and discontinued operations |
751.9 |
540.0 |
39 % |
|||||
|
Provision for income taxes |
242.6 |
371.6 |
(35)% |
|||||
|
Earnings from continuing operations |
509.3 |
168.4 |
202 % |
|||||
|
Earnings from discontinued operations (net of tax expense |
||||||||
|
of $0.0 million and $28.4 million for the fiscal 2011 and 2010 year-to-date, respectively) |
0.9 |
27.9 |
N.M. |
|||||
|
Net earnings |
$ 510.2 |
$ 196.3 |
160 % |
|||||
|
Basic earnings per Common Share: |
||||||||
|
Continuing operations |
$ 1.46 |
$ 0.47 |
211 % |
|||||
|
Discontinued operations |
- |
0.08 |
N.M. |
|||||
|
Net basic earnings per Common Share |
$ 1.46 |
$ 0.55 |
165 % |
|||||
|
Diluted earnings per Common Share: |
||||||||
|
Continuing operations |
$ 1.45 |
$ 0.47 |
209 % |
|||||
|
Discontinued operations |
- |
0.07 |
N.M. |
|||||
|
Net diluted earnings per Common Share |
$ 1.45 |
$ 0.54 |
169 % |
|||||
|
Weighted average number of Common Shares outstanding: |
||||||||
|
Basic |
348.2 |
359.1 |
||||||
|
Diluted |
351.3 |
361.1 |
||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
December 31, |
June 30, |
|||||
|
(in millions) |
2010 |
2010 |
||||
|
(UNAUDITED) |
||||||
|
Assets |
||||||
|
Cash and equivalents |
$ 1,348.0 |
$ 2,755.3 |
||||
|
Trade receivables, net |
5,825.3 |
5,170.6 |
||||
|
Inventories |
8,314.2 |
6,355.9 |
||||
|
Prepaid expenses and other |
789.5 |
637.1 |
||||
|
Total current assets |
16,277.0 |
14,918.9 |
||||
|
Property and equipment, net |
1,484.8 |
1,468.8 |
||||
|
Investment in CareFusion |
- |
691.5 |
||||
|
Goodwill and other intangibles, net |
4,282.6 |
2,253.2 |
||||
|
Other assets |
805.3 |
657.8 |
||||
|
Total assets |
$ 22,849.7 |
$ 19,990.2 |
||||
|
Liabilities and Shareholders' Equity |
||||||
|
Accounts payable |
$ 11,778.8 |
$ 9,494.9 |
||||
|
Current portion of long-term obligations and other short-term borrowings |
289.9 |
233.2 |
||||
|
Other accrued liabilities |
1,562.4 |
1,809.5 |
||||
|
Total current liabilities |
13,631.1 |
11,537.6 |
||||
|
Long-term obligations, less current portion |
2,380.2 |
1,896.1 |
||||
|
Deferred income taxes and other liabilities |
1,417.0 |
1,280.4 |
||||
|
Total shareholders' equity |
5,421.4 |
5,276.1 |
||||
|
Total liabilities and shareholders' equity |
$ 22,849.7 |
$ 19,990.2 |
||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||||||
|
Second Quarter |
Year-to-Date |
|||||||||||
|
(in millions) |
2011 |
2010 |
2011 |
2010 |
||||||||
|
Cash Flows From Operating Activities: |
||||||||||||
|
Net earnings |
$ 215.4 |
$ 234.5 |
$ 510.2 |
$ 196.3 |
||||||||
|
Earnings from discontinued operations |
(0.4) |
(4.3) |
(0.9) |
(27.9) |
||||||||
|
Earnings from continuing operations |
215.0 |
230.2 |
509.3 |
168.4 |
||||||||
|
Adjustments to reconcile earnings from continuing operations to net cash from operations: |
||||||||||||
|
Depreciation and amortization |
73.1 |
59.5 |
141.7 |
125.8 |
||||||||
|
Loss on extinguishment of debt |
- |
- |
- |
39.9 |
||||||||
|
Gain on sale of investment in CareFusion |
- |
(20.0) |
(74.8) |
(20.0) |
||||||||
|
Impairments and loss on sale of assets |
1.7 |
0.4 |
3.6 |
24.0 |
||||||||
|
Share-based compensation |
21.0 |
20.1 |
42.4 |
42.1 |
||||||||
|
Provision for bad debts |
5.0 |
9.1 |
7.8 |
21.4 |
||||||||
|
Change in operating assets and liabilities, net of effects from acquisitions: |
||||||||||||
|
Decrease/(increase) in trade receivables |
163.8 |
985.3 |
(108.5) |
269.2 |
||||||||
|
Increase in inventories |
(868.5) |
(1,099.2) |
(1,600.3) |
(1,127.2) |
||||||||
|
Increase in accounts payable |
729.8 |
496.1 |
1,762.8 |
1,499.2 |
||||||||
|
Other accrued liabilities and operating items, net |
(197.8) |
(159.7) |
(322.9) |
(259.0) |
||||||||
|
Net cash provided by operating activities - continuing operations |
143.1 |
521.8 |
361.1 |
783.8 |
||||||||
|
Net cash provided by/(used in) operating activities - discontinued operations |
0.5 |
2.3 |
(0.3) |
146.8 |
||||||||
|
Net cash provided by operating activities |
143.6 |
524.1 |
360.8 |
930.6 |
||||||||
|
Cash Flows From Investing Activities: |
||||||||||||
|
Acquisition of subsidiaries, net of cash acquired |
(1,735.1) |
- |
(2,295.0) |
(32.0) |
||||||||
|
Proceeds from sale of property and equipment |
2.8 |
- |
2.8 |
4.3 |
||||||||
|
Additions to property and equipment |
(64.1) |
(42.9) |
(126.1) |
(79.9) |
||||||||
|
Purchase of held-to-maturity investment securities |
(141.0) |
- |
(141.0) |
- |
||||||||
|
Proceeds from sale of investment in CareFusion |
- |
135.0 |
705.9 |
135.0 |
||||||||
|
Net cash provided by/(used in) investing activities - continuing operations |
(1,937.4) |
92.1 |
(1,853.4) |
27.4 |
||||||||
|
Net cash used in investing activities - discontinued operations |
- |
- |
- |
(9.9) |
||||||||
|
Net cash provided by/(used in) investing activities |
(1,937.4) |
92.1 |
(1,853.4) |
17.5 |
||||||||
|
Cash Flows From Financing Activities: |
||||||||||||
|
Reduction of long-term obligations |
(9.0) |
(350.4) |
(9.4) |
(1,484.9) |
||||||||
|
Proceeds from long-term obligations, net of issuance costs |
494.5 |
- |
494.5 |
- |
||||||||
|
Proceeds from issuance of Common Shares |
16.7 |
9.2 |
10.9 |
27.9 |
||||||||
|
Tax disbursements from exercises of stock options |
(4.9) |
- |
(2.9) |
(6.1) |
||||||||
|
Payment of premiums for debt extinguishment |
- |
- |
- |
(66.4) |
||||||||
|
Dividends on Common Shares |
(67.7) |
(63.0) |
(138.0) |
(127.2) |
||||||||
|
Purchase of treasury shares |
- |
(50.0) |
(269.8) |
(50.0) |
||||||||
|
Net cash provided by/(used in) financing activities - continuing operations |
429.6 |
(454.2) |
85.3 |
(1,706.7) |
||||||||
|
Net cash provided by financing activities - discontinued operations |
- |
- |
- |
1,283.8 |
||||||||
|
Net cash provided by/(used in) financing activities |
429.6 |
(454.2) |
85.3 |
(422.9) |
||||||||
|
Net increase/(decrease) in cash and equivalents |
(1,364.2) |
162.0 |
(1,407.3) |
525.2 |
||||||||
|
Cash and equivalents at beginning of period |
2,712.2 |
1,584.8 |
2,755.3 |
1,221.6 |
||||||||
|
Cash and equivalents at end of period |
$ 1,348.0 |
$ 1,746.8 |
$ 1,348.0 |
$ 1,746.8 |
||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
|||||||||
|
BUSINESS ANALYSIS |
|||||||||
|
TOTAL COMPANY |
|||||||||
|
Non-GAAP |
|||||||||
|
Second Quarter |
Second Quarter |
||||||||
|
(in millions) |
2011 |
2010 |
2011 |
2010 |
|||||
|
Revenue |
|||||||||
|
Amount |
$25,372 |
$24,920 |
|||||||
|
Growth Rate |
2 % |
3 % |
|||||||
|
Operating Earnings |
|||||||||
|
Amount |
$344 |
$367 |
$378 |
$358 |
|||||
|
Growth Rate |
(6)% |
17 % |
5% |
6% |
|||||
|
Earnings from Continuing Operations |
|||||||||
|
Amount |
$215 |
$230 |
$243 |
$207 |
|||||
|
Growth Rate |
(7)% |
36 % |
17% |
13% |
|||||
|
Non-GAAP |
|||||||||
|
Year-to-Date |
Year-to-Date |
||||||||
|
2011 |
2010 |
2011 |
2010 |
||||||
|
Revenue |
|||||||||
|
Amount |
$49,809 |
$49,700 |
|||||||
|
Growth Rate |
0 % |
5 % |
|||||||
|
Operating Earnings |
|||||||||
|
Amount |
$708 |
$607 |
$749 |
$681 |
|||||
|
Growth Rate |
17 % |
1 % |
10% |
5% |
|||||
|
Earnings from Continuing Operations |
|||||||||
|
Amount |
$509 |
$168 |
$468 |
$401 |
|||||
|
Growth Rate |
202 % |
(51)% |
17% |
14% |
|||||
|
Refer to the GAAP / Non-GAAP Reconciliation for definitions and calculations supporting the non-GAAP balances. |
|||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
|||||||||||||||
|
SEGMENT BUSINESS ANALYSIS |
|||||||||||||||
|
Second Quarter |
Second Quarter |
||||||||||||||
|
(in millions) |
2011 |
2010 |
(in millions) |
2011 |
2010 |
||||||||||
|
PHARMACEUTICAL |
MEDICAL |
||||||||||||||
|
Revenue |
Revenue |
||||||||||||||
|
Amount |
$23,168 |
$22,695 |
Amount |
$2,209 |
$2,232 |
||||||||||
|
Growth Rate |
2 % |
3 % |
Growth Rate |
(1)% |
9 % |
||||||||||
|
Mix |
91 % |
91 % |
Mix |
9 % |
9 % |
||||||||||
|
Segment Profit |
Segment Profit |
||||||||||||||
|
Amount |
$289 |
$260 |
Amount |
$102 |
$103 |
||||||||||
|
Growth Rate |
11 % |
(1)% |
Growth Rate |
0% |
38 % |
||||||||||
|
Mix |
74 % |
72 % |
Mix |
26 % |
28 % |
||||||||||
|
Segment Profit Margin |
1.25 % |
1.14 % |
Segment Profit Margin |
4.63 % |
4.59 % |
||||||||||
|
Refer to definitions for an explanation of calculations. |
|||||||||||||||
|
Total consolidated revenue for the three months ended December 31, 2010 was $25,372 million, which included total segment revenue of $25,377 million and Corporate revenue of $(5) million. Total consolidated revenue for the three months ended December 31, 2009 was $24,920 million, which included total segment revenue of $24,927 million and Corporate revenue of $(7) million. Corporate revenue consists primarily of elimination of inter-segment revenue. |
|||||||||||||||
|
Total consolidated operating earnings for the three months ended December 31, 2010 were $344 million, which included total segment profit of $391 million and Corporate loss of $(47) million. Total consolidated operating earnings for the three months ended December 31, 2009 were $367 million, which included total segment profit of $363 million and Corporate profit of $4 million. Corporate includes, among other things, restructuring and employee severance, acquisition related costs, impairments and loss on sale of assets, litigation (credits)/charges, net and certain investment spending that are not allocated to the segments. |
|||||||||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
|||||||||||
|
SEGMENT BUSINESS ANALYSIS |
|||||||||||
|
Year-to-Date |
Year-to-Date |
||||||||||
|
(in millions) |
2011 |
2010 |
(in millions) |
2011 |
2010 |
||||||
|
PHARMACEUTICAL |
MEDICAL |
||||||||||
|
Revenue |
Revenue |
||||||||||
|
Amount |
$45,441 |
$45,257 |
Amount |
$4,378 |
$4,469 |
||||||
|
Growth Rate |
0 % |
4 % |
Growth Rate |
(2)% |
9 % |
||||||
|
Mix |
91 % |
91 % |
Mix |
9 % |
9 % |
||||||
|
Segment Profit |
Segment Profit |
||||||||||
|
Amount |
$586 |
$468 |
Amount |
$185 |
$217 |
||||||
|
Growth Rate |
25 % |
(2)% |
Growth Rate |
(15)% |
26 % |
||||||
|
Mix |
76 % |
68 % |
Mix |
24 % |
32 % |
||||||
|
Segment Profit Margin |
1.29 % |
1.03 % |
Segment Profit Margin |
4.23 % |
4.86 % |
||||||
|
Refer to definitions for an explanation of calculations. |
|||||||||||
|
Total consolidated revenue for the six months ended December 31, 2010 was $49,809 million, which included total segment revenue of $49,819 million and Corporate revenue of $(10) million. Total consolidated revenue for the six months ended December 31, 2009 was $49,700 million, which included total segment revenue of $49,726 million and Corporate revenue of $(26) million. Corporate revenue consists primarily of elimination of inter-segment revenue. |
|||||||||||
|
Total consolidated operating earnings for the six months ended December 31, 2010 were $708 million, which included total segment profit of $771 million and Corporate loss of $(63) million. Total consolidated operating earnings for the six months ended December 31, 2009 were $607 million, which included total segment profit of $685 million and Corporate loss of ($78) million. Corporate includes, among other things, restructuring and employee severance, acquisition related costs, impairments and loss on sale of assets, litigation (credits)/charges, net and certain investment spending that are not allocated to the segments. |
|||||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
|||||||||
|
SCHEDULE OF NOTABLE ITEMS |
|||||||||
|
Second Quarter |
Year-to-Date |
||||||||
|
(in millions, except per Common Share amounts) |
2011 |
2010 |
2011 |
2010 |
|||||
|
Restructuring and Employee Severance |
|||||||||
|
Restructuring and employee severance |
$ (2.6) |
$ (10.2) |
$ (4.4) |
$ (69.8) |
|||||
|
Tax benefit |
1.1 |
2.5 |
1.7 |
19.8 |
|||||
|
Restructuring and employee severance, net of tax |
$ (1.5) |
$ (7.7) |
$ (2.7) |
$ (50.0) |
|||||
|
Decrease to diluted EPS from continuing operations |
- |
(0.02) |
(0.01) |
(0.14) |
|||||
|
Acquisition Related Costs |
|||||||||
|
Acquisition related costs |
$ (18.0) |
$ (0.5) |
$ (19.3) |
$ (0.6) |
|||||
|
Tax benefit |
1.8 |
0.1 |
2.0 |
0.2 |
|||||
|
Acquisition related costs, net of tax |
$ (16.2) |
$ (0.4) |
$ (17.3) |
$ (0.4) |
|||||
|
Decrease to diluted EPS from continuing operations |
(0.05) |
- |
(0.05) |
- |
|||||
|
Impairments and Loss on Sale of Assets |
|||||||||
|
Impairments and loss on sale of assets |
$ (1.7) |
$ (0.4) |
$ (3.6) |
$ (24.0) |
|||||
|
Tax benefit |
0.6 |
0.2 |
1.3 |
8.3 |
|||||
|
Impairments and loss on sale of asset, net of tax |
$ (1.1) |
$ (0.2) |
$ (2.3) |
$ (15.7) |
|||||
|
Decrease to diluted EPS from continuing operations |
- |
- |
(0.01) |
(0.04) |
|||||
|
Litigation (Credits)/Charges, Net |
|||||||||
|
Litigation (credits)/charges, net |
$ (6.1) |
$ 25.4 |
$ (7.5) |
$ 25.9 |
|||||
|
Tax benefit/(expense) |
0.4 |
(9.6) |
1.0 |
(9.8) |
|||||
|
Litigation (credits)/charges, net, net of tax |
$ (5.7) |
$ 15.8 |
$ (6.5) |
$ 16.1 |
|||||
|
Increase/(decrease) to diluted EPS from continuing operations |
(0.02) |
0.04 |
(0.02) |
0.04 |
|||||
|
Other Spin-Off Costs |
|||||||||
|
Other spin-off costs (1) |
$ (5.1) |
$ (5.3) |
$ (6.7) |
$ (47.6) |
|||||
|
Tax benefit/(expense) (2) |
1.9 |
1.4 |
2.5 |
(154.5) |
|||||
|
Other spin-off costs, net of tax |
$ (3.2) |
$ (3.9) |
$ (4.2) |
$ (202.1) |
|||||
|
Decrease to diluted EPS from continuing operations |
(0.01) |
(0.01) |
(0.01) |
(0.56) |
|||||
|
Gain on Sale of CareFusion Stock |
|||||||||
|
Gain on sale of CareFusion stock |
$ - |
$ 20.0 |
$ 74.8 |
$ 20.0 |
|||||
|
Tax expense |
- |
- |
- |
- |
|||||
|
Gain on sale of CareFusion stock, net of tax |
$ - |
$ 20.0 |
$ 74.8 |
$ 20.0 |
|||||
|
Increase to diluted EPS from continuing operations |
- |
0.06 |
0.21 |
0.06 |
|||||
|
Weighted Average Number of Diluted Shares Outstanding |
350.7 |
361.0 |
351.3 |
361.1 |
|||||
|
(1) Other spin-off costs included in other income, net for the six months ended December 31, 2009 were $2.4 million. Other spin-off costs also included the $39.9 million loss on extinguishment of debt for the six months ended December 31, 2009. The remaining other spin-off costs are included within distribution, selling, general and administrative expenses for all periods presented. |
|||||||||
|
(2) For the six months ended December 31, 2009, the tax expense associated with the other spin-off costs included $171.9 million related to the anticipated repatriation of a portion of cash loaned to our entities within the United States. |
|||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
|||||||||
|
ASSET MANAGEMENT ANALYSIS |
|||||||||
|
Second Quarter |
Year-to-Date |
||||||||
|
2011 |
2010 |
2011 |
2010 |
||||||
|
Days Sales Outstanding |
19.7 |
17.5 |
|||||||
|
Days Inventory on Hand |
27.0 |
26.8 |
|||||||
|
Days Payable Outstanding |
38.3 |
35.5 |
|||||||
|
Net Working Capital Days |
8.4 |
8.8 |
|||||||
|
Debt to Total Capital |
33 % |
29 % |
|||||||
|
Net Debt to Capital |
20 % |
7 % |
|||||||
|
Return on Equity |
16.2% |
18.5 % |
19.2% |
6.2% |
|||||
|
Non-GAAP Return on Equity |
18.2% |
16.6% |
17.6% |
16.1% |
|||||
|
Effective Tax Rate from Continuing Operations |
34.4% |
36.9% |
32.3% |
68.8% |
|||||
|
Non-GAAP Effective Tax Rate from Continuing Operations |
32.8% |
38.5% |
34.9% |
37.0% |
|||||
|
Refer to the GAAP / Non-GAAP Reconciliation for non-GAAP calculations. Refer to DSO, DIOH and DPO below for definitions and calculation. |
|||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
||||||||||||||||||
|
GAAP / NON-GAAP RECONCILIATION |
||||||||||||||||||
|
Second Quarter 2011 |
||||||||||||||||||
|
(in millions, except per Common Share amounts) |
GAAP |
Restructuring and Employee Severance |
Acquisition Related Costs |
Impairments and Loss on Sale of Assets |
Litigation (Credits)/ Charges, Net |
Other Spin-Off Costs |
Gain on Sale of CareFusion Stock |
Non-GAAP |
||||||||||
|
Operating Earnings |
||||||||||||||||||
|
Amount |
$344 |
$3 |
$18 |
$2 |
$6 |
$5 |
- |
$378 |
||||||||||
|
Growth Rate |
(6)% |
5 % |
||||||||||||||||
|
Earnings Before Income Taxes and Discontinued Operations |
$328 |
$3 |
$18 |
$2 |
$6 |
$5 |
- |
$361 |
||||||||||
|
Provision for Income Taxes (1) |
$113 |
$1 |
$2 |
$1 |
- |
$2 |
- |
$119 |
||||||||||
|
Earnings from Continuing Operations |
||||||||||||||||||
|
Amount |
$215 |
$2 |
$16 |
$1 |
$6 |
$3 |
- |
$243 |
||||||||||
|
Growth Rate |
(7)% |
17 % |
||||||||||||||||
|
Diluted EPS from Continuing Operations |
||||||||||||||||||
|
Amount |
$0.61 |
- |
$0.05 |
- |
$0.02 |
$0.01 |
- |
$0.69 |
||||||||||
|
Growth Rate |
(5)% |
21 % |
||||||||||||||||
|
Second Quarter 2010 |
||||||||||||||||||
|
GAAP |
Restructuring and Employee Severance |
Acquisition Related Costs |
Impairments and Loss on Sale of Assets |
Litigation (Credits)/ Charges, Net |
Other Spin-Off Costs |
Gain on Sale of CareFusion Stock |
Non-GAAP |
|||||||||||
|
Operating Earnings |
||||||||||||||||||
|
Amount |
$367 |
$10 |
$1 |
- |
($25) |
$5 |
- |
$358 |
||||||||||
|
Growth Rate |
17 % |
6 % |
||||||||||||||||
|
Earnings Before Income Taxes and Discontinued Operations |
$365 |
$10 |
$1 |
- |
($25) |
$5 |
($20) |
$336 |
||||||||||
|
Provision for Income Taxes (1) |
$135 |
$3 |
- |
- |
($10) |
$1 |
- |
$129 |
||||||||||
|
Earnings from Continuing Operations |
||||||||||||||||||
|
Amount |
$230 |
$8 |
- |
- |
($16) |
$4 |
($20) |
$207 |
||||||||||
|
Growth Rate |
36 % |
13 % |
||||||||||||||||
|
Diluted EPS from Continuing Operations |
||||||||||||||||||
|
Amount |
$0.64 |
$0.02 |
- |
- |
($0.04) |
$0.01 |
($0.06) |
$0.57 |
||||||||||
|
Growth Rate |
36 % |
12 % |
||||||||||||||||
|
The sum of the components may not equal the total due to rounding. |
||||||||||||||||||
|
(1) We apply varying tax rates depending upon the tax jurisdiction where the items are incurred. |
||||||||||||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
|||||||||||||||||
|
GAAP / NON-GAAP RECONCILIATION |
|||||||||||||||||
|
Year-to-Date 2011 |
|||||||||||||||||
|
(in millions, except per Common Share amounts) |
GAAP |
Restructuring and Employee Severance |
Acquisition Related Costs |
Impairments and Loss on Sale of Assets |
Litigation (Credits)/ Charges, Net |
Other Spin-Off Costs |
Gain on Sale of CareFusion Stock |
Non-GAAP |
|||||||||
|
Operating Earnings |
|||||||||||||||||
|
Amount |
$708 |
$4 |
$19 |
$4 |
$8 |
$7 |
- |
$749 |
|||||||||
|
Growth Rate |
17 % |
10 % |
|||||||||||||||
|
Earnings Before Income Taxes and Discontinued Operations |
$752 |
$4 |
$19 |
$4 |
$8 |
$7 |
($75) |
$719 |
|||||||||
|
Provision for Income Taxes (1) |
$243 |
$2 |
$2 |
$1 |
$1 |
$3 |
- |
$251 |
|||||||||
|
Earnings from Continuing Operations |
|||||||||||||||||
|
Amount |
$509 |
$3 |
$17 |
$2 |
$7 |
$4 |
($75) |
$468 |
|||||||||
|
Growth Rate |
202 % |
17 % |
|||||||||||||||
|
Diluted EPS from Continuing Operations |
|||||||||||||||||
|
Amount |
$1.45 |
$0.01 |
$0.05 |
$0.01 |
$0.02 |
$0.01 |
($0.21) |
$1.33 |
|||||||||
|
Growth Rate |
209 % |
20 % |
|||||||||||||||
|
Year-to-Date 2010 |
|||||||||||||||||
|
GAAP |
Restructuring and Employee Severance |
Acquisition Related Costs |
Impairments and Loss on Sale of Assets |
Litigation (Credits)/ Charges, Net |
Other Spin-Off Costs |
Gain on Sale of CareFusion Stock |
Non-GAAP |
||||||||||
|
Operating Earnings |
|||||||||||||||||
|
Amount |
$607 |
$70 |
$1 |
$24 |
($26) |
$5 |
- |
$681 |
|||||||||
|
Growth Rate |
1 % |
5 % |
|||||||||||||||
|
Earnings Before Income Taxes and Discontinued Operations |
$540 |
$70 |
$1 |
$24 |
($26) |
$48 |
($20) |
$636 |
|||||||||
|
Provision for Income Taxes (1) |
$372 |
$20 |
- |
$8 |
($10) |
($155) |
- |
$236 |
|||||||||
|
Earnings from Continuing Operations |
|||||||||||||||||
|
Amount |
$168 |
$50 |
- |
$16 |
($16) |
$202 |
($20) |
$401 |
|||||||||
|
Growth Rate |
(51)% |
14 % |
|||||||||||||||
|
Diluted EPS from Continuing Operations |
|||||||||||||||||
|
Amount |
$0.47 |
$0.14 |
- |
$0.04 |
($0.04) |
$0.56 |
($0.06) |
$1.11 |
|||||||||
|
Growth Rate |
(51)% |
14 % |
|||||||||||||||
|
The sum of the components may not equal the total due to rounding. |
|||||||||||||||||
|
(1) We apply varying tax rates depending upon the tax jurisdiction where the items are incurred. |
|||||||||||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
||||||
|
GAAP / NON-GAAP RECONCILIATION |
||||||
|
Second Quarter |
Second Quarter |
|||||
|
(in millions) |
2011 |
2010 |
||||
|
GAAP Return on Equity |
16.2 % |
18.5 % |
||||
|
Non-GAAP Return on Equity |
||||||
|
Net earnings |
$ 215.4 |
$ 234.5 |
||||
|
Restructuring and employee severance, net of tax, in continuing operations(1) |
1.5 |
7.7 |
||||
|
Acquisition related costs, net of tax, in continuing operations(1) |
16.2 |
0.4 |
||||
|
Impairments and loss on sale of assets, net of tax, in continuing operations(1) |
1.1 |
0.2 |
||||
|
Litigation (credits)/charges, net, net of tax, in continuing operations(1) |
5.7 |
(15.8) |
||||
|
Other spin-off costs, net of tax(1) |
3.2 |
3.9 |
||||
|
Gain on sale of CareFusion stock, net of tax(1) |
- |
(20.0) |
||||
|
CareFusion net earnings in discontinued operations(1, 2) |
- |
(0.3) |
||||
|
Adjusted net earnings |
$ 243.1 |
$ 210.6 |
||||
|
Annualized |
972.4 |
842.4 |
||||
|
Divided by average shareholders' equity(3) |
5,330.2 |
5,083.7 |
||||
|
Non-GAAP return on equity |
18.2% |
16.6% |
||||
|
(1) We apply varying tax rates depending upon the tax jurisdiction where the items are incurred. |
||||||
|
(2) To properly reflect the impact of the spin-off, on a non-GAAP basis, CareFusion net earnings included in discontinued operations are excluded from adjusted net earnings for all periods presented. |
||||||
|
(3) The average shareholders' equity shown above is calculated using the average of the prior and current quarters. |
||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
|||||||||||||||
|
GAAP / NON-GAAP RECONCILIATION |
|||||||||||||||
|
Year-to-Date |
Year-to-Date |
||||||||||||||
|
(in millions) |
2011 |
2010 |
|||||||||||||
|
GAAP Return on Equity |
19.2 % |
6.2 % |
|||||||||||||
|
Non-GAAP Return on Equity |
|||||||||||||||
|
Net earnings |
$ 510.2 |
$ 196.3 |
|||||||||||||
|
Restructuring and employee severance, net of tax, in continuing operations(1) |
2.7 |
50.0 |
|||||||||||||
|
Acquisition related costs, net of tax, in continuing operations(1) |
17.3 |
0.4 |
|||||||||||||
|
Impairments and loss on sale of assets, net of tax, in continuing operations(1) |
2.3 |
15.7 |
|||||||||||||
|
Litigation (credits)/charges, net, net of tax, in continuing operations(1) |
6.5 |
(16.1) |
|||||||||||||
|
Other spin-off costs, net of tax(1) |
4.2 |
202.1 |
|||||||||||||
|
Gain on sale of CareFusion stock, net of tax(1) |
(74.8) |
(20.0) |
|||||||||||||
|
CareFusion net earnings in discontinued operations(1, 2) |
- |
(20.4) |
|||||||||||||
|
Adjusted net earnings |
$ 468.4 |
$ 408.0 |
|||||||||||||
|
Annualized |
$ 936.8 |
$ 816.0 |
|||||||||||||
|
Second Quarter |
First Quarter |
Fourth Quarter |
Second Quarter |
First Quarter |
Fourth Quarter |
||||||||||
|
2011 |
2011 |
2010 |
2010 |
2010 |
2009 |
||||||||||
|
Non-GAAP Shareholders' Equity |
|||||||||||||||
|
Total shareholders' equity |
$ 5,421.4 |
$ 5,239.0 |
$ 5,276.1 |
$ 5,226.1 |
$ 4,941.2 |
$ 8,724.7 |
|||||||||
|
Non-cash dividend related to CareFusion spin-off |
- |
- |
- |
- |
- |
(3,688.9) |
|||||||||
|
Non-GAAP shareholders' equity |
$ 5,421.4 |
$ 5,239.0 |
$ 5,276.1 |
$ 5,226.1 |
$ 4,941.2 |
$ 5,035.8 |
|||||||||
|
Divided by average shareholders' equity |
5,312.2 |
5,067.7 |
|||||||||||||
|
Non-GAAP return on equity |
17.6% |
16.1% |
|||||||||||||
|
(1) We apply varying tax rates depending upon the tax jurisdiction where the items are incurred. |
|||||||||||||||
|
(2) To properly reflect the impact of the spin-off, on a non-GAAP basis, CareFusion net earnings included in discontinued operations are excluded from adjusted net earnings for all periods presented. |
|||||||||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
|||||||||
|
GAAP / NON-GAAP RECONCILIATION |
|||||||||
|
Second Quarter |
Year-to-Date |
||||||||
|
(in millions) |
2011 |
2010 |
2011 |
2010 |
|||||
|
GAAP Effective Tax Rate from Continuing Operations |
34.4 % |
36.9 % |
32.3 % |
68.8 % |
|||||
|
Non-GAAP Effective Tax Rate from Continuing Operations |
|||||||||
|
Earnings before income taxes and discontinued operations |
$ 327.8 |
$ 365.0 |
$ 751.9 |
$ 540.0 |
|||||
|
Restructuring and employee severance |
2.6 |
10.2 |
4.4 |
69.8 |
|||||
|
Acquisition related costs |
18.0 |
0.5 |
19.3 |
0.6 |
|||||
|
Impairments and loss on sale of assets |
1.7 |
0.4 |
3.6 |
24.0 |
|||||
|
Litigation (credits)/charges, net |
6.1 |
(25.4) |
7.5 |
(25.9) |
|||||
|
Other spin-off costs |
5.1 |
5.3 |
6.7 |
47.6 |
|||||
|
Gain on sale of CareFusion stock |
- |
(20.0) |
(74.8) |
(20.0) |
|||||
|
Adjusted earnings before income taxes and discontinued operations |
$ 361.3 |
$ 336.0 |
$ 718.6 |
$ 636.1 |
|||||
|
Provision for income taxes(1) |
$ 112.8 |
$ 134.8 |
$ 242.6 |
$ 371.6 |
|||||
|
Restructuring and employee severance tax benefit(1) |
1.1 |
2.5 |
1.7 |
19.8 |
|||||
|
Acquisition related costs tax benefit(1) |
1.8 |
0.1 |
2.0 |
0.2 |
|||||
|
Impairments and loss on sale of assets tax benefit(1) |
0.6 |
0.2 |
1.3 |
8.3 |
|||||
|
Litigation (credits)/charges, net tax benefit/(expense)(1) |
0.4 |
(9.6) |
1.0 |
(9.8) |
|||||
|
Other spin-off costs tax benefit/(expense)(1) |
1.9 |
1.4 |
2.5 |
(154.5) |
|||||
|
Gain on sale of CareFusion stock tax expense(1) |
- |
- |
- |
- |
|||||
|
Adjusted provision for income taxes |
$ 118.6 |
$ 129.4 |
$ 251.1 |
$ 235.6 |
|||||
|
Non-GAAP effective tax rate from continuing operations |
32.8% |
38.5% |
34.9% |
37.0% |
|||||
|
Second Quarter |
|||||||||
|
2011 |
2010 |
||||||||
|
Debt to Total Capital |
33% |
29% |
|||||||
|
Net Debt to Capital |
|||||||||
|
Current portion of long-term obligations and other short-term borrowings |
$ 289.9 |
$ 12.7 |
|||||||
|
Long-term obligations, less current portion |
2,380.2 |
2,099.2 |
|||||||
|
Debt |
$ 2,670.1 |
$ 2,111.9 |
|||||||
|
Cash and equivalents |
(1,348.0) |
(1,746.8) |
|||||||
|
Net debt |
$ 1,322.1 |
$ 365.1 |
|||||||
|
Total shareholders' equity |
$ 5,421.4 |
$ 5,226.1 |
|||||||
|
Capital |
$ 6,743.5 |
$ 5,591.2 |
|||||||
|
Net Debt to Capital |
20% |
7% |
|||||||
|
(1) We apply varying tax rates depending upon the tax jurisdiction where the items are incurred. |
|||||||||
|
Forward-Looking Non-GAAP Financial Measures |
|||||||||
|
We present non-GAAP earnings from continuing operations and non-GAAP effective tax rate from continuing operations (and presentations derived from these financial measures, including per share calculations) on a forward-looking basis. The most directly comparable forward-looking GAAP measures are earnings from continuing operations and effective tax rate from continuing operations. We are unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures because we cannot reliably forecast restructuring and employee severance, acquisition related costs, impairments and loss on sale of assets, litigation (credits)/charges, net, and other spin-off costs, which are difficult to predict and estimate and are primarily dependent on future events. Please note that the unavailable reconciling items could significantly impact our future financial results. |
|||||||||
|
CARDINAL HEALTH, INC. AND SUBSIDIARIES |
||||||
|
Second Quarter |
||||||
|
(in millions, except days) |
2011 |
2010 |
||||
|
Days Sales Outstanding |
19.7 |
17.5 |
||||
|
Days Inventory on Hand |
||||||
|
Inventories |
$ 8,314.2 |
$ 7,961.0 |
||||
|
Cost of products sold |
$ 24,377.6 |
$ 23,962.0 |
||||
|
Chargeback billings |
3,302.6 |
2,790.8 |
||||
|
Adjusted cost of products sold |
$ 27,680.2 |
$ 26,752.8 |
||||
|
Adjusted cost of products sold divided by 90 days |
$ 307.6 |
$ 297.3 |
||||
|
Days Inventory on Hand |
27.0 |
26.8 |
||||
|
Days Payable Outstanding |
||||||
|
Accounts payable |
$ 11,778.8 |
$ 10,543.1 |
||||
|
Cost of products sold |
$ 24,377.6 |
$ 23,962.0 |
||||
|
Chargeback billings |
3,302.6 |
2,790.8 |
||||
|
Adjusted cost of products sold |
$ 27,680.2 |
$ 26,752.8 |
||||
|
Adjusted cost of products sold divided by 90 days |
$ 307.6 |
$ 297.3 |
||||
|
Days Payable Outstanding |
38.3 |
35.5 |
||||
|
Net Working Capital Days |
8.4 |
8.8 |
||||
|
Days Sales Outstanding: trade receivables, net divided by (monthly revenue divided by 30 days) |
||||||
|
Days Inventory on Hand: inventory divided by ((quarterly cost of products sold plus chargeback billings) divided by 90 days). Chargeback billings are the difference between a product’s wholesale acquisition cost and the contract price established between pharmaceutical manufacturers and the end customer. |
||||||
|
Days Payable Outstanding: accounts payable divided by ((quarterly cost of products sold plus chargeback billings) divided by 90 days). Chargeback billings are the difference between a product’s wholesale acquisition cost and the contract price established between pharmaceutical manufacturers and the end customer. |
||||||
|
Net Working Capital Days: days sales outstanding plus days inventory on hand less days payable outstanding. |
||||||
|
GAAP |
||
|
Debt: long-term obligations plus short-term borrowings |
||
|
Debt to Total Capital: debt divided by (debt plus total shareholders' equity) |
||
|
Diluted EPS from Continuing Operations: earnings from continuing operations divided by diluted weighted average shares outstanding |
||
|
Effective Tax Rate from Continuing Operations: provision for income taxes divided by earnings before income taxes and discontinued operations |
||
|
Gain on Sale of CareFusion Stock: realized gains from the sale of our ownership of CareFusion common stock retained in connection with the spin-off |
||
|
Other Spin-Off Costs: costs and tax charges incurred in connection with our spin-off of CareFusion that are not included in restructuring and employee severance, acquisition related costs, impairments and loss on sale of assets and litigation (credits)/charges, net. Other spin-off costs include, among other things, the loss on extinguishment of debt and the income tax charge related to the anticipated repatriation of a portion of cash loaned to our entities within the United States |
||
|
Segment Profit: segment revenue minus (segment cost of products sold and segment distribution, selling, general and administrative expenses) |
||
|
Segment Profit Margin: segment profit divided by segment revenue |
||
|
Segment Profit Mix: segment profit divided by total segment profit for all segments |
||
|
Return on Equity: annualized net earnings divided by average shareholders' equity |
||
|
Revenue Mix: segment revenue divided by total segment revenue for all segments |
||
|
NON-GAAP |
||
|
Net Debt to Capital: net debt divided by (net debt plus total shareholders' equity) |
||
|
Net Debt: debt minus (cash and equivalents) |
||
|
Non-GAAP Diluted EPS from Continuing Operations: non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding |
||
|
Non-GAAP Diluted EPS from Continuing Operations Growth Rate: (current period non-GAAP diluted EPS from continuing operations minus prior period non-GAAP diluted EPS from continuing operations) divided by prior period non-GAAP diluted EPS from continuing operations |
||
|
Non-GAAP Earnings from Continuing Operations: earnings from continuing operations excluding (1) restructuring and employee severance, (2) acquisition related costs, (3) impairments and loss on sale of assets, (4) litigation (credits)/charges, net, (5) Other Spin-Off Costs and (6) gain on sale of CareFusion stock, each net of tax |
||
|
Non-GAAP Earnings from Continuing Operations Growth Rate: (current period non-GAAP earnings from continuing operations minus prior period non-GAAP earnings from continuing operations) divided by prior period non-GAAP earnings from continuing operations |
||
|
Non-GAAP Effective Tax Rate from Continuing Operations: (provision for income taxes adjusted for (1) restructuring and employee severance, (2) acquisition related costs, (3) impairments and loss on sale of assets, (4) litigation (credits)/charges, net, (5) Other Spin-Off Costs and (6) gain on sale of CareFusion stock) divided by (earnings before income taxes and discontinued operations adjusted for (1) restructuring and employee severance, (2) acquisition related costs, (3) impairments and loss on sale of assets, (4) litigation (credits)/charges, net, (5) Other Spin-Off Costs and (6) gain on sale of CareFusion stock) |
||
|
Non-GAAP Operating Earnings: operating earnings excluding (1) restructuring and employee severance, (2) acquisition related costs, (3) impairments and loss on sale of assets, (4) litigation (credits)/charges, net and (5) Other Spin-Off Costs included within distribution, selling, general and administrative expenses |
||
|
Non-GAAP Operating Earnings Growth Rate: (current period non-GAAP operating earnings minus prior period non-GAAP operating earnings) divided by prior period non-GAAP operating earnings |
||
|
Non-GAAP Return on Equity: (annualized current period net earnings excluding (1) restructuring and employee severance, (2) acquisition related costs, (3) impairments and loss on sale of assets, (4) litigation (credits)/charges, net, (5) Other Spin-Off Costs, (6) CareFusion net earnings in discontinued operations and (7) gain on sale of CareFusion stock, each net of tax) divided by average shareholders' equity adjusted for the $3.7 billion non-cash dividend issued in connection with the spin-off |
||
SOURCE: Cardinal Health
