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| Thursday, 23 February 2012, 20:35 HKT/SGT | |
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Source: Omnicare | |
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COVINGTON, Ky., Feb 23, 2012 - (ACN Newswire) - Omnicare, Inc. (NYSE:OCR) reported today financial results for its fourth quarter and full year ended December 31, 2011.
Fourth-Quarter Highlights:
- Gross profit of $359.7 million; 69 basis point increase in gross margin to 23.10%
- Adjusted income from continuing operations per diluted share increased 7% sequentially to $0.58, GAAP income per diluted share of $0.34
- Cash flows from continuing operations of $101.5 million
Full-Year Highlights:
- Gross profit increased 3.1% to $1,377.1 million
- Adjusted income from continuing operations per diluted share of $2.13, GAAP income per diluted share of $1.41
- Cash flows from continuing operations increased 49% to $549.4 million
"We are very pleased with our solid fourth quarter results, which validate the continuing progress our organization is making in becoming more operationally driven and customer-focused," said John Figueroa, Omnicare's Chief Executive Officer. "We exited the year as a much stronger company, and we are now realizing the benefit from the investments we made throughout 2011. As we look to 2012 and beyond, we believe Omnicare is well-positioned to generate long-term profitable growth in both core businesses, Long-Term Care and Specialty Care, while continuing to make a positive difference for our many stakeholders."
Fourth-Quarter Results
Prior Year Comparison
Financial results from continuing operations for the quarter ended December 31, 2011, as compared with the same prior-year period, were as follows:
- Adjusted gross profit was $359.7 million as compared with $334.3 million
- GAAP income from continuing operations per diluted share was $0.34 versus a $0.50 loss
- Adjusted income from continuing operations (see "per share" discussion below and attached supplemental information) per share was $0.58 versus $0.51
- Adjusted EBITDA from continuing operations was $162.9 million versus $147.6 million
Cash flows from continuing operations for the quarter ended December 31, 2011 were $101.5 million versus $99.7 million in the comparable prior-year quarter.
Sequential Comparison
In comparison to the third quarter of 2011, financial results from continuing operations for the fourth quarter of 2011 were as follows:
- Gross profit was $359.7 million as compared with $346.1 million
- GAAP income from continuing operations per share was $0.34 versus $0.33
- Adjusted income from continuing operations (see discussion below and attached supplemental information) per share was $0.58 versus $0.54
- Adjusted EBITDA from continuing operations was $162.9 million compared to $157.2 million
"During the fourth quarter, we benefited from the introduction of new generic drugs, which lower the cost of pharmaceutical care for both Omnicare and its customers," said Mr. Figueroa. "This pharmaceutical market dynamic, coupled with the continued rapid growth of our Specialty Care Group, contributed to our 4% sequential increase in gross profit and supported further investments in the business."
Financial Position
During the fourth quarter of 2011, Omnicare used the proceeds from its offering of an additional $150 million aggregate principal amount of its 7.75% Senior Subordinated Notes due 2020 to redeem the remaining $50 million principal amount on its 6.125% Senior Subordinated Notes due 2013 (the "6.125% Notes") and the remaining $100 million principal amount on its 6.875% Senior Subordinated Notes due 2015 (the "6.875% Notes").
Omnicare ended the year with $582.6 million in cash on its balance sheet and a 34.5% total debt to total capital ratio at December 31, 2011, which was down approximately 110 basis points from 35.6% at December 31, 2010.
With respect to its share repurchase program, Omnicare repurchased approximately 0.7 million shares of common stock during the quarter and paid an aggregate amount of $20 million. As of December 31, 2011, the Company had $58.9 million of availability under its current share repurchase authorization.
"We continue to be very pleased with our ability to convert earnings into cash flows," said John L. Workman, Omnicare's President and Chief Financial Officer. "Our fourth-quarter cash flows from continuing operations of $101 million bring our 2011 total to $549 million, representing the highest annual output in Omnicare's 30-year history. These robust cash flows have enabled us to maintain an opportunistic yet disciplined approach to capital deployment with the underlying objective of deploying cash toward those opportunities that we believe generate the most value for our shareholders."
To facilitate comparisons and to enhance the understanding of core operating performance, the discussion which follows includes financial measures that are adjusted from the comparable amount 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 Web site at http://ir.omnicare.com . Additionally, the Company will make supplemental slides available in the same section on its Web site today that will include the number of scripts dispensed, beds served, and other information relevant to Omnicare's operations.
Full-Year Results
Financial results from continuing operations for the year ended December 31, 2011, as compared with the same prior-year period, were as follows:
- Net sales were $6,182.9 million as compared with $6,030.7 million
- GAAP income from continuing operations per share was $1.41 as compared with $0.13
- Adjusted income from continuing operations (see discussion below and attached supplemental information) per share was $2.13 as compared with $2.12
- Adjusted EBITDA from continuing operations was $612.6 million versus $598.2 million
Cash flow from continuing operations for the full-year 2011 totaled $549.4 million, which includes a $22.7 million benefit related to the settlement of a receivable dispute with a customer and a $23.3 million refund for federal tax overpayments. Cash flows from continuing operations for the full-year 2010 were $368.9 million.
Segment Information
Consistent with the Company's efforts to increase transparency and reflect the recent reorganization of operations, Omnicare now has two operating segments referred to as the Long-Term Care Group and Specialty Care Group.
Financial results for the Long-Term Care Group for the year ended December 31, 2011, as compared with the same prior-year period, were as follows:
- Net sales were $5,123.5 million as compared with $5,175.7 million
- Adjusted operating income was $546.9 million compared with $549.6
Financial results for the Specialty Care Group for the year ended December 31, 2011, as compared with the same prior-year period, were as follows:
- Net sales were $1,044.2 million as compared with $838.8 million
- Adjusted operating income was $99.6 million compared with $89.6 million
Special Items
The results for the fourth quarter of 2011 and 2010 include the impact of special items totaling approximately $38.7 million pretax ($27.5 million aftertax, or approximately $0.24 per diluted share) and $167.2 million pretax ($115.9 million aftertax, or approximately $1.01 per diluted share), respectively.
The results for the full-years 2011 and 2010 include special items totaling approximately $121.5 million pretax ($82.6 million aftertax, or approximately $0.72 per diluted share) and $349.7 million pretax ($232.9 million aftertax, or approximately $1.99 per diluted share), respectively.
The special items have been described in further detail in the "Footnotes and Definitions to Financial Information" section elsewhere herein.
Outlook
For the full-year 2012, Omnicare expects the following:
- Revenues of $6.1 billion to $6.2 billion
- Adjusted cash-based income per diluted share from continuing operations of $3.10 to $3.20, excluding special items ($2.37 to $2.47 using its previous reporting methodology)
- Cash flow from continuing operations of $400 million to $500 million
Beginning in the first-quarter of fiscal year 2012, Omnicare will report adjusted cash-based income per diluted share (excluding special items and discontinued operations). A reconciliation of prior period adjusted income to adjusted cash-based income per diluted share is available on Omnicare's website under 'Supplemental Financial Information' from the 'Investors' page.
"In 2011, we accomplished what we set out to achieve; we invested in the business to become a stronger, more operationally driven and customer-focused company that is well-positioned for the future," said Mr. Figueroa. "As we consider our expectations for 2012, our focus is on capitalizing on the foundation we have built for profitable growth."
Webcast Today
Omnicare will hold a conference call to discuss its fourth-quarter and full-year 2011 financial results today, Thursday, February 23, at 8:00 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.
About Omnicare
Omnicare, Inc., a Fortune 400 company based in Covington, Kentucky, provides comprehensive pharmaceutical services to patients and providers across North America. 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 and end-of-life disease management 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 international economic and political conditions and currency fluctuations between the U.S. dollar and other currencies; 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 Agreements. 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
+1-859-392-3444
patrick.lee@omnicare.com
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Omnicare via Thomson Reuters ONE
Copyright (c) Thomson Reuters 2012. All rights reserved.
Topic: Earnings
Source: Omnicare
https://www.acnnewswire.com
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