Cincinnati, Oct 31, 2012 - (ACN Newswire) - Omnicare, Inc. (NYSE:OCR) reported today financial results for its third quarter ended September 30, 2012.
Third-Quarter Highlights:
-- Gross profit increase of 7.3% to $371 million; 232 basis-point expansion in gross margin rate
-- Adjusted cash earnings per diluted share from continuing operations 16.2% higher to $0.86; GAAP earnings per diluted share of $0.55
-- Cash flows from continuing operations of $196 million
"We are pleased with our progress during the third quarter," said John L. Workman, Omnicare's Chief Executive Officer. "We experienced a continuation of many of the same elements that drove our performance in the first half of 2012. Our cost structure continued to benefit from increased generic drug penetration, allowing us to more than offset a lower level of prescription volumes within our Long-Term Care Group. We also continued the momentum within our Specialty Care Group, with each of our specialty platforms generating solid year-over-year growth."
Third-Quarter Results
Financial results from continuing operations for the quarter ended September 30, 2012, as compared with the same prior-year period, were as follows:
-- Net sales was $1,501 million versus $1,544 million
-- Gross profit was $371 million as compared with $346 million
-- GAAP income from continuing operations per diluted share was $0.55 versus $0.33
-- Adjusted cash earnings per diluted share from continuing operations (see "per share" discussion below and attached supplemental information) was $0.86 versus $0.74
-- Adjusted EBITDA from continuing operations was $172 million versus $157 million
Cash flows from continuing operations for the quarter ended September 30, 2012 were $196 million versus $167 million in the comparable prior-year quarter.
"During the quarter, we began making changes to our Long-Term Care operating structure that we believe will accelerate our progress toward operational excellence," said Nitin Sahney, Omnicare's President and Chief Operating Officer. "We also continued to benefit from the operational improvements we have made across our Specialty Care Group. With both businesses now under the leadership of one team, we believe we are in a better position to standardize our approach and better leverage the company's assets."
Financial Position
Omnicare concluded the third quarter of 2012 with no borrowings outstanding on its revolving credit facility and $648 million in cash on its balance sheet.
During the third quarter, Omnicare amended and extended its existing credit facility, which is now comprised of a $300 million senior unsecured revolving credit facility and a $425 million senior unsecured term loan due September 28, 2017, resulting in a 50 basis-point reduction in interest rates. The Company incurred $8 million in debt redemption costs as part of the transaction.
With respect to its share repurchase program, Omnicare repurchased approximately 900 thousand shares of common stock during the quarter for an aggregate amount of $31 million. As of September 30, 2012, the Company had approximately $498 million of availability under its current share repurchase authorization.
"This quarter Omnicare generated $196 million of operating cash flows and enabled us to make further improvements to our financial position," said Rocky Kraft, Omnicare's Chief Financial Officer. "Our cash flows enabled us to return additional capital to shareholders by continuing opportunistic share repurchases and a doubling of our quarterly cash dividend. With a total share repurchase authorization of $498 million, we believe we are well positioned to continue this key component of our capital allocation strategy."
Nine-Month Results
Financial results from continuing operations for the nine months ended September 30, 2012, as compared with the same prior-year period, were as follows:
-- Net sales were $4,630 million as compared with $4,626 million
-- Gross profit was $1,107 million as compared with $1,017 million
-- GAAP income from continuing operations per share was $1.19 as compared with $1.07
-- Adjusted cash earnings per diluted share from continuing operations was $2.50 as compared with $2.12
-- Adjusted EBITDA from continuing operations was $512 million versus $450 million
Operating cash flow from continuing operations for the first nine months of 2012 totaled $417 million versus $448 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 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 third quarter ended September 30, 2012 were as follows:
-- Net sales of $1,166 million were 8.0% lower than $1,267 million in the same prior-year period
-- Adjusted operating income from continuing operations of $154 million increased 10.0% from $140 million in the same prior-year period
Financial results for the Specialty Care Group for the third quarter ended September 30, 2012 were as follows:
-- Net sales of $333 million were 21.3% higher than $274 million in the same prior-year period
-- Adjusted operating income from continuing operations of $33 million increased 25.8% from $26 million in the same prior-year period
Special Items
The results for the third quarter of 2012 and 2011 include the impact of special items totaling approximately $24 million pretax ($11 million aftertax, or approximately $0.10 per diluted share) and $40 million pretax ($25 million aftertax, or approximately $0.21 per diluted share), respectively.
The results for the third quarter of 2012 and 2011 include the impact of cash-based earnings adjustments totaling approximately $23 million aftertax, or approximately $0.21 per diluted share, and $22 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 nine months of 2012, Omnicare now expects the following for the full-year 2012:
+----------------------------------------------------------------------------+
| Original Guidance Previous Guidance Current Guidance|
+----------------------------------------------------------------------------+
|Revenue $6.1B to $6.2B $6.1B to $6.2B $6.1B to $6.2B |
| |
|Adjusted cash earnings |
|per diluted share |
|(excluding special items) $3.10 to $3.20 $3.22 to $3.28 $3.30 to $3.36 |
| |
|Cash flows from |
|operations (excluding |
|settlement payments) $400M to $500M $425M to $525M $500M to $550M |
+----------------------------------------------------------------------------+
Webcast Today
Omnicare will hold a conference call to discuss its third-quarter 2012 financial results today, Wednesday, October 31, 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 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 .
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
Omnicare, Inc. and Subsidiary Companies
Summary Consolidated Statements of Income, GAAP Basis
($000s, except per share amounts)
Unaudited
Three months ended Nine months ended
-------------------------------------------------------------
September 30, September 30, September 30, September 30,
2012 2011 2012 2011
-------------------------------------------------------------
Net sales $ 1,501,348 $ 1,544,360 $ 4,630,443 $ 4,625,837
Cost of sales 1,130,053 1,198,299 3,523,702 3,608,423
-------------- --------------- --------------- --------------
Gross profit 371,295 346,061 1,106,741 1,017,414
Selling,
general and
administrative
expenses 203,550 191,293 605,552 573,934
Provision for
doubtful
accounts 24,047 24,255 72,556 73,142
Settlement,
litigation and
other related
charges 4,931 6,742 38,227 32,571
Other charges 5,036 6,718 65,757 10,939
---------------- ------------- --------------- --------------
Operating
income 133,731 117,053 324,649 326,828
Interest
expense, net of
investment
income (39,036 ) (55,926 ) (105,444 ) (124,038 )
---------------- ------------- --------------- --------------
Income from
continuing
operations
before income
taxes 94,695 61,127 219,205 202,790
Income tax
provision 33,270 23,343 83,349 79,570
---------------- ------------- --------------- --------------
Income from
continuing
operations 61,425 37,784 135,856 123,220
Loss from
discontinued
operations - (9,900 ) - (67,479 )
---------------- ------------- --------------- --------------
Net income $ 61,425 $ 27,884 $ 135,856 $ 55,741
---------------- --------------- --------------- --------------
Earnings (loss)
per common
share -
Diluted:
Continuing
operations $ 0.55 $ 0.33 $ 1.19 $ 1.07
Discontinued
operations - (0.09 ) - (0.59 )
Net income $ 0.55 $ 0.24 $ 1.19 $ 0.49
---------------- ------------- --------------- --------------
Weighted
average number
of common
shares
outstanding:
Diluted 111,951 114,644 113,968 114,930
---------------- --------------- --------------- --------------
The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.
Omnicare, Inc and Subsidiary Companies
Consolidated Balance Sheets
(000s)
Unaudited
September 30, December 31,
2012 2011
--------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 647,408 $ 580,262
Restricted cash 988 2,336
Accounts receivable, less allowances 901,809 931,314
Inventories 340,648 419,378
Deferred income tax benefits 162,558 153,444
Other current assets 179,972 210,637
--------------- --------------
Total current assets 2,233,383 2,297,371
Properties and equipment, at cost less
accumulated depreciation
271,436 225,257
Goodwill 4,256,385 4,250,579
Identifiable intangible assets, less accumulated
amortization 207,175 235,270
Other noncurrent assets 180,817 184,633
--------------- --------------
Total noncurrent assets 4,915,813 4,895,739
--------------- --------------
Total assets $ 7,149,196 $ 7,193,110
--------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 187,765 $ 273,768
Accrued employee compensation 63,195 61,019
Current debt 26,685 26,447
Other current liabilities 185,885 178,833
--------------- --------------
Total current liabilities 463,530 540,067
Long-term debt, notes and convertible debentures 2,029,742 1,968,274
Deferred income tax liabilities 885,450 838,857
Other noncurrent liabilities 59,151 50,476
--------------- --------------
Total noncurrent liabilities 2,974,343 2,857,607
--------------- --------------
Total liabilities 3,437,873 3,397,674
--------------- --------------
Stockholders' equity 3,711,323 3,795,436
--------------- --------------
Total liabilities and stockholders' equity $ 7,149,196 $ 7,193,110
--------------- --------------
The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.
Omnicare, Inc and Subsidiary Companies
Condensed Consolidated Statements of Cash Flows, GAAP Basis
(000s)
Unaudited
September 30, 2012
-----------------------------
Three months Nine months
ended ended
-------------- --------------
Cash flows from operating activities:
Net income $ 61,425 $ 135,856
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation 13,778 38,256
Amortization 20,551 63,377
Debt redemption loss and costs, net 8,270 47,558
Other operating activities 25,802 47,468
Changes in certain assets and liabilities, net
of effects from acquisition and divestiture of
businesses:
Accounts receivable, net of provision for
doubtful accounts 27,937 31,433
Inventories 14,251 82,786
Current and noncurrent assets 52,617 65,341
Accounts payable (28,343 ) (95,172 )
-------------- --------------
Net cash flows from operating activities 196,288 416,903
Cash flows from investing activities:
Acquisition of businesses, net of cash received (33,843 ) (34,411 )
Divestiture of businesses, net 19,207 19,207
Capital expenditures (24,998 ) (71,433 )
Marketable securities (25,000 ) (25,000 )
Other 1,934 1,348
-------------- --------------
Net cash flows used in investing activities (62,700 ) (110,289 )
Cash flows from financing activities:
Payments on term loans (8,125 ) (19,375 )
Proceeds from long-term borrowings and
obligations 425,000 425,000
Payments on long-term borrowings and
obligations (426,256 ) (452,302 )
Capped call transaction - (48,126 )
Payments for Omnicare common stock repurchases (30,612 ) (110,919 )
Dividends paid (15,244 ) (30,765 )
Other 4,578 (2,981 )
-------------- --------------
Net cash flows used in financing activities (50,659 ) (239,468 )
-------------- --------------
Net increase in cash and cash equivalents 82,929 67,146
Cash and cash equivalents at beginning of
period 564,479 580,262
-------------- --------------
Cash and cash equivalents at end of period $ 647,408 $ 647,408
-------------- --------------
The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.
Omnicare, Inc. and Subsidiary Companies
Reconciliation Statement and Definitions, Non-GAAP Basis
($000s, except per share amounts)
Unaudited
Three months ended Nine months ended
------------------------------- ---------------------------
September September September September
30, 2012 30, 2011 30, 2012 30, 2011
--------------- --------------- ------------- -------------
Adjusted earnings
per share ("EPS")
from continuing
operations:
Diluted earnings
per share from
continuing
operations $ 0.55 $ 0.33 $ 1.19 $ 1.07
Special Items:
(a)
Settlement,
litigation and
other related
charges 0.03 0.04 0.21 0.21
Other charges (0.01 ) 0.04 0.34 0.06
Amortization of
discount on
convertible notes 0.03 0.03 0.10 0.10
Debt redemption
costs 0.05 0.11 0.07 0.11
--------------- --------------- ------------- -------------
Total Special
Items 0.10 0.21 0.71 0.48
Cash EPS
Adjustments 0.21 0.19 0.59 0.57
Adjusted cash
earnings per
diluted share
from continuing
operations $ 0.86 $ 0.74 $ 2.50 $ 2.12
--------------- --------------- ------------- -------------
Adjusted earnings
before interest,
income taxes
("EBIT",
"Operating
income"),
depreciation and
amortization
("EBITDA") from
continuing
operations:
EBIT from
continuing
operations $ 133,731 $ 117,053 324,649 $ 326,828
Depreciation and
amortization 34,329 32,761 101,633 97,326
Amortization of
discount on
convertible notes (5,839 ) (6,107 ) (18,118 ) (17,969 )
--------------- --------------- ------------- -------------
EBITDA from
continuing
operations 162,221 143,707 408,164 406,185
Special items (a) 9,967 13,460 103,984 43,510
--------------- --------------- ------------- -------------
Adjusted EBITDA
from continuing
operations 172,188 157,167 512,148 449,695
EBITDA from
continuing
operations to net
cash flows from
operating
activities:
EBITDA from
continuing
operations 162,221 143,707 408,164 406,185
(Subtract)/Add:
Interest expense,
net of investment
income and
amortization of
discount on
convertible notes (33,197 ) (49,819 ) (87,326 ) (106,069 )
Income tax
provision (33,270 ) (23,343 ) (83,349 ) (79,570 )
Other operating
activities
(including debt
redemption costs) 34,072 39,313 95,026 5,165
Changes in
certain assets
and liabilities,
net of effects
from acquisition
and
divestitures
of businesses 66,462 57,208 84,388 222,230
--------------- --------------- ------------- -------------
Net cash flows
from operating
activities of
continuing
operations $ 196,288 $ 167,066 $ 416,903 $ 447,941
--------------- --------------- ------------- -------------
Segment
Reconciliations -
Long-Term Care
Group ("LTC")
Adjusted
Operating Income
- LTC:
Operating income
from continuing
operations 158,998 126,833 419,778 357,104
Special items (a) (4,614 ) 13,460 39,611 43,510
--------------- --------------- ------------- -------------
Adjusted
operating income
from continuing
operations - LTC 154,384 140,293 459,389 400,614
Segment
Reconciliations -
Specialty Care
Group ("SCG")
Adjusted
Operating Income
- SCG:
Operating income
from continuing
operations 31,061 26,424 92,881 72,254
Special items (a) 2,090 - 2,290 -
--------------- --------------- ------------- -------------
Adjusted
operating income
from continuing
operations - SCG 33,151 26,424 95,171 72,254
The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.
Omnicare, Inc. and Subsidiary Companies
Footnotes and Definitions to Financial Information
(000s, except per share amounts and unless otherwise stated)
Unaudited
Footnotes:
Non-GAAP Information:
Omnicare, Inc. ("Omnicare" or the "Company") management believes that
presenting
certain non-GAAP financial measures, which exclude items not considered part of
the core operating results of the Company and certain non-cash charges and also
includes certain tax deduction amounts ("Special Items"), enhances
investors'
understanding of how Omnicare management assesses the performance of the
Company's business. Omnicare management uses non-GAAP measures for budgeting
purposes, measuring actual results, allocating resources and in determining
employee incentive compensation. Omnicare's method of calculating non-GAAP
financial results may differ from those used by other companies and, therefore,
comparability may be limited.
a. Financial results from continuing operations included Special Items as
described below:
Q3 2012 YTD 2012 Q3 2011 YTD 2011
After Tax After Tax After Tax After Tax
Pretax ((10)) Pretax ((10)) Pretax ((10)) Pretax ((10))
EBIT:
Settlement,
litigation
and other
related
charges((1))$4,931 $2,970 $38,227 $23,414 $6,742 $4,122 $32,571 $24,001
Other charges
Acquisition
and other
related costs((2))
(3,830)(2,352) 396 243 6,718 4,151 10,939 6,785
Disposition
of businesses((3))
(7,680)(8,485) (1,777) (2,582) - - - -
Separation
costs((4)) 5,500 3,346 21,000 12,863 - - - -
Restructuring
charges((5))11,046 6,766 11,046 6,766 - - - -
Loss on debt
repurchase((6)) - - 35,092 21,546 - - - -
Subtotal -
Other charges
5,036 (725) 65,757 38,836 6,718 4,151 10,939 6,785
Subtotal -
EBIT Special
Items 9,967 2,245 103,984 62,250 13,460 8,273 43,510 30,786
Interest
Expense:
Amortization
of discount
on
convertible
notes((7)) 5,839 3,559 18,118 11,098 6,107 3,743 17,969 11,146
Debt
redemption
costs((6)) 8,270 5,059 12,363 7,572 20,168 12,506 21,247 13,180
Subtotal -
Interest
Expense
Special Items
14,109 8,618 30,481 18,670 26,275 16,249 39,216 24,326
Subtotal -
Special Items
24,076 10,863 134,465 80,920 39,735 24,522 82,726 55,112
Cash EPS
Items:
Amortization
of
intangibles
11,259 6,897 32,764 20,101 9,904 6,007 28,745 17,764
Goodwill
amortization
tax deduction((8))
- 10,930 - 32,704 - 13,169 - 38,547
Convertible
debt tax
deduction((9)) - 5,660 - 14,747 - 3,058 - 9,002
Subtotal -
Cash EPS
Items 11,259 23,487 32,764 67,552 9,904 22,234 28,745 65,313
Grand Total -
Special Items
$ 35,335 $34,350 $167,229 $148,472 $ 49,639 $46,756 $ 111,471 $120,425
1. Operating income includes settlement, litigation and other related charges
for resolution of certain regulatory matters with various states and
regulatory agencies, and a qui tam lawsuit, certain large customer
disputes and purported class and derivative actions against the Company.
Additionally, Omnicare has made, and will continue to make, disclosures to
the applicable governmental agencies of amounts, if any, determined to
represent over-payments from the respective programs and, where applicable,
those amounts, as well as any amounts relating to certain inspections,
audits, inquiries and investigations activity are included in the pretax
special item reflected in the table.
2. Operating income includes acquisition and other related costs primarily
related to professional fees and acquisition related restructuring costs
for acquisitions. Q3 2012 also included a reduction of the Company's
original contingent consideration payable for a prior acquisition.
3. In the quarter ended September 30, 2012 the Company completed the
disposition of its Canadian pharmacy and the Company's pharmacy
operational software business, which were not considered, individually or
in the aggregate, significant to the operations of Omnicare.
4. Operating income includes separation related costs for certain former
executives, including the former Chief Executive Officer who resigned on
June 10, 2012.
5. Operating income includes restructuring and other related charges primarily
related to lease termination costs.
6. Operating income and interest expense include charges for debt redemption
losses and costs related to the Company's previously announced refinancing
transactions.
7. The Company recorded non-cash interest expense from the amortization of
debt discount on its convertible notes.
8. The tax benefit of being able to deduct goodwill amortization.
9. The tax benefit of being able to deduct higher interest expense on our
convertible debt than what is actually paid.
10. The tax effect was calculated by multiplying the tax-deductible pretax
amounts by the appropriate effective tax rate.
Discontinued Operations:
In 2009, the Company commenced activities to divest certain home healthcare and related ancillary businesses ("the Disposal Group") that are non-strategic in nature. Also, in connection with the reallocation of resources started in the second half of 2010 and the previously disclosed unfavorable market conditions experienced by its Contract Research Services organization ("CRO Services") business, the Company committed to a plan to divest of its CRO Services business in the first quarter of 2011 and completed the divestiture in April 2011. Also, in the second quarter of 2011, the Company divested its Tidewater Group Purchasing Organization ("Tidewater"). The Company determined that the CRO Services and Tidewater businesses were no longer good strategic fits within the Company's portfolio of assets. In the fourth quarter of 2011, the Company divested the remaining durable medical equipment ("DME") portion of the Disposal Group. In connection with these activities, Omnicare recorded an impairment loss in discontinued operations in the three and nine months ended September 30, 2011 to reduce the carrying value of the CRO Services and Non-Core disposal group operations to fair value based on the final terms of the divestiture.
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
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