|
| Thursday, 20 February 2014, 04:00 HKT/SGT | |
| |  | |
Source: Omnicare | |
|
|
|
Cincinnati, Feb 20, 2014 - (ACN Newswire) - Omnicare, Inc. (NYSE:OCR) reported today financial results for its fourth quarter and full year ended December 31, 2013.
Fourth-Quarter Highlights:
-- Net sales increase of 5.1% to $1.54 billion
-- Adjusted EBITDA from continuing operations increased 12.3% to $172 million
-- Adjusted cash earnings per diluted share from continuing operations increased 8.8% to $0.87; GAAP earnings per share of $0.54
-- End-of-life hospice pharmacy and certain retail operations qualify as discontinued operations
Full-Year Highlights:
-- Net sales increase of 2.3% to $6.01 billion
-- Adjusted EBITDA from continuing operations increased 6.9% to $674 million
-- Adjusted cash earnings per diluted share from continuing operations increased 10% to $3.43; GAAP earnings per share of $0.78
-- Cash flows from continuing operations of $480 million, including settlement payments of $20 million
"We are pleased to have completed another successful year and to have generated another quarter of solid financial results," said John L. Workman, Omnicare's Chief Executive Officer. "During 2013, we achieved a number of significant milestones, including attaining full-year net organic bed growth in our Long-Term Care Group, generating strong double-digit growth in our Specialty Care Group and returning over 50% of our operating cash flows to shareholders through share repurchases and dividends for a second consecutive year."
Fourth-Quarter Results
Financial results from continuing operations for the quarter ended December 31, 2013, as compared with the same prior-year period, were as follows:
-- Net sales were $1.54 billion versus $1.46 billion
-- Gross profit was $360 million versus $355 million
-- GAAP earnings per diluted share from continuing operations was $0.54 versus $0.48
-- Adjusted cash earnings per diluted share from continuing operations was $0.87 versus $0.80
-- Adjusted EBITDA from continuing operations was $172 million versus $153 million
Cash flows from continuing operations for the quarter ended December 31, 2013 were $24 million versus $119 million in the comparable prior-year quarter. The year-over-year decline was largely attributable to increased inventory levels that is a timing issue and expected to substantially reverse in the first quarter of 2014.
"We are very pleased with our quarterly performance, which reflects the continued strength of our operations and the benefits of our ongoing operating plan," said Nitin Sahney, Omnicare's President and Chief Operating Officer. "During the fourth quarter, we captured opportunities to operate more efficiently within our long-term care business, expanding the segment's adjusted gross margin rate, while also generating revenue growth from all four platforms within our Specialty Care Group. We intend to build on this momentum to generate continued growth across our business in 2014 and beyond."
Financial Position
Omnicare concluded the fourth quarter of 2013 with no borrowings outstanding on its revolving credit facility and $356 million in cash on its balance sheet.
In the fourth quarter, Omnicare repurchased approximately $130 million in common shares for an average of $56.25 per share. As of December 31, 2013, the Company had $500 million of availability under its current share repurchase authorization.
"While fourth quarter operating cash flows were impacted by increased inventory purchases, we returned nearly $150 million to our stockholders through share repurchases and dividends," said Rocky Kraft, Omnicare's Chief Financial Officer. "During the quarter we announced a record $500 million share repurchase authorization while also increasing the dividend by 43%. We believe these actions provide for increased flexibility in our efforts to optimally redeploy our robust cash flows to the benefit of our shareholders."
Full-Year Results
Financial results from continuing operations for the year ended December 31, 2013, as compared with the same prior-year period, were as follows:
-- Net sales were $6.01 billion versus $5.88 billion
-- Gross profit was $1.42 billion versus $1.40 billion
-- GAAP earnings per diluted share from continuing operations was $0.78 versus $1.52
-- Adjusted cash earnings per diluted share from continuing operations was $3.43 versus $3.12
-- Adjusted EBITDA from continuing operations was $674 million versus $630 million
Cash flows from continuing operations for the twelve months ended December 31, 2013 were $480 million versus $535 million in the comparable prior period. Excluding settlement payments, adjusted cash flows from continuing operations were $500 million and $585 million for 2013 and 2012, respectively.
To facilitate comparisons and to enhance the understanding of core operating performance, discussions in this news release include financial measures that are adjusted from the comparable amounts under GAAP to exclude the impact of the special items discussed elsewhere herein, and to present results on a continuing operations basis. For a detailed presentation of reconciling items and related definitions and components, please refer to the attached schedules or to reconciliation schedules posted at the Investor Relations section of Omnicare's website at http://ir.omnicare.com. Additionally, the Company will make supplemental slides available in the same section on its website today that will include the number of scripts dispensed, and other information relevant to Omnicare's operations.
Segment Information
Financial results for the Long-Term Care Group for the fourth quarter ended December 31, 2013 were as follows:
-- Net sales of $1,169 million were 0.1% less than $1,170 million in the same prior-year period
-- Adjusted operating income of $160.4 million increased 3.5% from $155.0 million in the same prior-year period
Financial results for the Specialty Care Group for the fourth quarter ended December 31, 2013 were as follows:
-- Net sales of $367 million were 26% higher than $292 million in the same prior-year period
-- Adjusted operating income of $31.2 million increased 16% from $27.0 million in the same prior-year period
Discontinued Operations
During the fourth quarter of 2013, the Company's end-of-life hospice pharmacy business ("Hospice") as well as certain retail operations ("Retail") qualified for discontinued operations treatment. As such, the results from operations for all periods presented have been revised to reflect the results of Hospice and Retail as discontinued operations, including an associated impairment loss and related expenses.
Special Items
The results for the fourth-quarter and full-years ended December 31, 2013 and 2012 include the impact of special items and cash EPS adjustments as follows:
----------------------------------------------------------------------
Three months ended
December 31,
----------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------
After-tax Per diluted After-tax Per diluted
impact share impact share
----------------------------------------------------------------------
Special Items
Adj. $14.6M $0.13 $12.1M $0.11
Cash EPS Adj. $21.0M $0.19 $22.9M $0.21
----------------------------------------------------------------------
----------------------------------------------------------------------
Year ended
December 31,
----------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------
After-tax Per diluted After-tax Per diluted
impact share impact share
----------------------------------------------------------------------
Special Items
Adj. $204.6M $1.87 $91.7M $0.81
Cash EPS Adj. $85.9M $0.78 $88.4M $0.78
----------------------------------------------------------------------
All special items and cash EPS adjustments have been described in further detail in the "Footnotes and Definitions to Financial Information" section elsewhere herein.
Outlook
For the full-year 2014, Omnicare expects the following results from continuing operations:
----------------------------------------------------------------------
2013 Results FY2014 Guidance % Change
----------------------------------------------------------------------
Revenue $6.0B $6.3B to $6.4B 5.0% to 6.7%
Adjusted cash earnings per diluted share (excluding special items)
$3.43 $3.64 to $3.72 6.1% to 8.5%
Cash flows from operations
(2014 guidance excludes settlement payments)
$480M* $475M to $550M -1.0% to 14.6%
----------------------------------------------------------------------
*after settlement payments of $20 million
The Company's full-year 2014 guidance is exclusive of its discontinued operations, which generated adjusted cash earnings of $19.3 million in 2013, and also assumes a year-over-year decline between $3 million and $4 million in cash EPS adjustments.
Mr. Workman continued, "Our growth expectations for the underlying business are strong due to the continued benefits of our restructured operations. We believe our ability to sustain organic growth across our platforms will become even more compelling in the future, especially as we move into 2015, which presents a more attractive year in terms of low-cost generic drug introductions. We believe our organization is well positioned for continued growth."
Webcast Today
Omnicare will hold a conference call to discuss its fourth-quarter and full-year 2013 financial results today, February 19, 2014, at 9:00 a.m. ET. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations section of Omnicare's website at http://ir.omnicare.com. An archived replay will be made available on the website following the conclusion of the conference call.
Upcoming Investor Events
-- RBC Capital Markets 2014 Global Healthcare Conference on Tuesday, February 25th at 2:05 p.m. ET in New York, NY
-- Cowen and Company 34th Annual Health Care Conference on Monday, March 3rd at 1:30 p.m. ET in Boston, MA
-- Barclays Global Healthcare Conference on Tuesday, March 11th at 1:30 p.m. ET in Miami, FL
At these events, Omnicare executives will discuss the company's recent financial performance and strategies for continued growth. Additional details and a link to the live webcast of each event will be accessible from the Investor Relations section of Omnicare's website at http://ir.omnicare.com. Following the live presentations, archived versions of the webcasts will be available.
About Omnicare
Omnicare, Inc., a Fortune 500 company based in Cincinnati, Ohio, provides comprehensive pharmaceutical services to patients and providers across the United States. As the market-leader in professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other chronic care institutions, Omnicare leverages its unparalleled clinical insight into the geriatric market along with some of the industry's most innovative technological capabilities to the benefit of its long-term care customers. Omnicare also provides key commercialization services for the bio-pharmaceutical industry through its Specialty Care Group. For more information, visit www.omnicare.com.
Forward-looking Statements
In addition to historical information, this report contains certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements regarding the intent, belief or current expectations regarding the matters discussed or incorporated by reference in this document (including statements as to "beliefs," "expectations," "anticipations," "intentions" or similar words) and all statements which are not statements of historical fact. Such forward-looking statements, together with other statements that are not historical, are based on management's current expectations and involve known and unknown risks, uncertainties, contingencies and other factors that could cause results, performance or achievements to differ materially from those stated. The most significant of these risks and uncertainties are described in the Company's Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission and include, but are not limited to: overall economic, financial, political and business conditions; trends in the long-term healthcare and pharmaceutical industries; the ability to attract new clients and service contracts and retain existing clients and service contracts; the ability to consummate pending acquisitions on favorable terms or at all; trends for the continued growth of the Company's businesses; trends in drug pricing; delays and reductions in reimbursement by the government and other payors to customers and to the Company; the overall financial condition of the Company's customers and the ability of the Company to assess and react to such financial condition of its customers; the ability of vendors and business partners to continue to provide products and services to the Company; the successful integration of acquired companies and realization of contemplated synergies; the continued availability of suitable acquisition candidates; the ability to attract and retain needed management; competition for qualified staff in the healthcare industry; variations in demand for the Company's products and services; variations in costs or expenses; the ability to implement productivity, consolidation and cost reduction efforts and to realize anticipated benefits; the potential impact of legislation, government regulations, and other government action and/or executive orders, including those relating to Medicare Part D, including its implementing regulations and any subregulatory guidance, reimbursement and drug pricing policies and changes in the interpretation and application of such policies, including changes in calculation of average wholesale price; discontinuation of reporting average wholesale price, and/or implementation of new pricing benchmarks; legislative and regulatory changes impacting long term care pharmacies; government budgetary pressures and shifting priorities; federal and state budget shortfalls; efforts by payors to control costs; changes to or termination of the Company's contracts with pharmaceutical benefit managers, Medicare Part D Plan sponsors and/or commercial health insurers or to the proportion of the Company's business covered by specific contracts; the outcome of disputes and litigation; potential liability for losses not covered by, or in excess of, insurance; the impact of executive separations; the impact of benefit plan terminations; the impact of differences in actuarial assumptions and estimates as compared to eventual outcomes; events or circumstances which result in an impairment of assets, including but not limited to, goodwill and identifiable intangible assets; the final outcome of divestiture activities; market conditions; the outcome of audit, compliance, administrative, regulatory, or investigatory reviews; volatility in the market for the Company's stock and in the financial markets generally; access to adequate capital and financing; changes in tax laws and regulations; changes in accounting rules and standards; the impacts of potential cybersecurity risks and/or incidents; and costs to comply with the Company's Corporate Integrity Agreement. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, the Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as otherwise required by law, the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact:
Patrick C. Lee
+1-513-719-1507
patrick.lee@omnicare.com
Full press release: http://bit.ly/1c339TB
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Omnicare via Globenewswire
Topic: Earnings
Source: Omnicare
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
|
|
|
|
|
|
|
