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| Wednesday, 25 July 2012, 19:25 HKT/SGT | |
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Source: Omnicare | |
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CINCINNATI, OH, July 25, 2012 - (ACN Newswire) - Omnicare, Inc. (NYSE:OCR) reported today financial results for its second quarter ended June 30, 2012.
Year-Over-Year Highlights:
- Gross profit increase of 9.2% to $367.3 million; 230 basis-point expansion in gross margin rate
- Adjusted cash earnings per diluted share from continuing operations 20.3% higher to $0.83; GAAP earnings per diluted share of $0.17
- Capital returned to shareholders through dividends and share repurchases increased 43.4% to $65.7 million
"We are pleased to report another quarter of double-digit adjusted earnings growth," said John L. Workman, Omnicare's Interim Chief Executive Officer. "Our results reflect the ongoing, positive effect of generic drug efficiencies as well as continued acceleration in our Specialty Care Group. While our strong quarterly results demonstrate the progress we have made as an organization, we believe we have opportunity to further leverage our platform. Looking ahead, we are committed to increasing utilization of our technology offering and clinical programs through a renewed focus on operational excellence. With this focus, we believe we will continue to generate attractive returns for shareholders and customers alike."
Second-Quarter Results
Financial results from continuing operations for the quarter ended June 30, 2012, as compared with the same prior-year period, were as follows:
- Net sales was $1,536.0 million versus $1,555.9 million
- Gross profit was $367.3 million as compared with $336.4 million
- GAAP income from continuing operations per diluted share was $0.17 versus $0.32
- Adjusted cash earnings per diluted share from continuing operations (see "per share" discussion below and attached supplemental information) was $0.83 versus $0.69
- Adjusted EBITDA from continuing operations was $170.3 million versus $146.3 million
Cash flows from continuing operations for the quarter ended June 30, 2012 were $120.2 million versus $136.9 million in the comparable prior-year quarter. Included in the second quarter of 2012 was a payment of $50.0 million on a previously disclosed settlement with the Drug Enforcement Administration. Included in the second quarter of 2011 was a $23.3 million refund for federal tax overpayments.
"Our second-quarter results were driven by solid performances from both of our divisions," said Nitin Sahney, Omnicare's Chief Operating Officer. "Within our Long-Term Care Group, seasonably weaker utilization was more than offset by the continued benefit from generic drug introductions as well as improved operating efficiencies. Our Specialty Care Group was similarly efficient, with strong revenue growth again supported by a 31 basis-point adjusted operating margin improvement."
Financial Position
Omnicare concluded the second quarter of 2012 with no borrowings outstanding on its revolving credit facility and $567.4 million in cash on its balance sheet.
With respect to its share repurchase program, Omnicare repurchased approximately 1.8 million shares of common stock during the quarter and paid an aggregate amount of $58 million. As of June 30, 2012, the Company had approximately $179 million of availability under its current share repurchase authorization.
"We continue to demonstrate a high level of cash flow efficiency," said Mr. Workman. "Our strong second-quarter cash flows enabled us to return approximately 55% of operating cash flows to shareholders through share repurchases and dividends. We will continue to evaluate our cash deployment levels to ensure they remain disciplined yet well aligned with enhancing shareholder value."
Six-Month Results
Financial results from continuing operations for the six months ended June 30, 2012, as compared with the same prior-year period, were as follows:
- Net sales were $3,129.1 million as compared with $3,081.5 million
- Gross profit was $735.4 million as compared with $671.4 million
- GAAP income from continuing operations per share was $0.65 as compared with $0.74
- Adjusted cash earnings per diluted share from continuing operations was $1.64 as compared with $1.38
EBITDA from continuing operations for the first six months of 2012, including the impact of special items and accounting changes, was $245.9 million versus $262.5 million in the comparable prior-year period. Excluding the special items, adjusted EBITDA from continuing operations in the first six months of 2012 was $340.0 million as compared with $292.5 million in the first six months of 2011.
Operating cash flow from continuing operations for the first six months of 2012 totaled $220.6 million versus $280.9 million in the comparable prior-year period.
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, beds served, and other information relevant to Omnicare's operations.
Segment Information
Financial results for the Long-Term Care Group for the second quarter ended June 30, 2012 were as follows:
- Net sales of $1,202.8 million were 6.7% lower than $1,289.4 million in the same prior-year period
- Adjusted operating income from continuing operations of $150.8 million increased 16.1% from $129.9 million in the same prior-year period
Financial results for the Specialty Care Group for the second quarter ended June 30, 2012 were as follows:
- Net sales of $330.1 million were 25.7% higher than $262.7 million in the same prior-year period
- Adjusted operating income from continuing operations of $31.9 million increased 30.2% from $24.5 million in the same prior-year period
Special Items
The results for the second quarter of 2012 and 2011 include the impact of special items totaling approximately $85.3 million pretax ($52.4 million aftertax, or approximately $0.46 per diluted share) and $28.1 million pretax ($21.3 million aftertax, or approximately $0.19 per diluted share), respectively.
The results for the second quarter of 2012 and 2011 include the impact of cash-based earnings adjustments totaling approximately $23.2 million aftertax, or approximately $0.20 per diluted share, and $21.7 million aftertax, or approximately $0.19 per diluted share, respectively.
The special items and cash-based earnings adjustments have been described in further detail in the "Footnotes and Definitions to Financial Information" section elsewhere herein.
Outlook
Based on its solid results in the first half of 2012, Omnicare now expects the following for the full-year 2012:
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Previous Guidance Current Guidance
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Revenue $6.1B to $6.2B $6.1B to $6.2B
Adjusted cash earnings per diluted share $3.10 to $3.20 $3.22 to $3.28
(excluding special items)
Cash flows from operations $400M to $500M $425M to $525M
(excluding settlement payments)
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Webcast Today
Omnicare will hold a conference call to discuss its second-quarter 2012 financial results today, Wednesday, July 25, 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.
About Omnicare
Omnicare, Inc., a Fortune 400 company based in Cincinnati, Ohio, 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 .
Contact:
Patrick C. Lee
+1-513-719-1507
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
Topic: Earnings
Source: Omnicare
https://www.acnnewswire.com
From the Asia Corporate News Network
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