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| Thursday, 25 July 2013, 05:50 HKT/SGT | |
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Source: Omnicare | |
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CINCINNATI, OH, July 25, 2013 - (ACN Newswire) - Omnicare, Inc. (NYSE:OCR) reported today financial results for its second quarter ended June 30, 2013.
Second-Quarter Highlights:
-- Gross profit of $378 million; 19 basis-point gross margin rate increase
-- Adjusted cash earnings per diluted share 8.4% higher to $0.90; GAAP earnings per diluted share of $0.48
-- Cash flows from operations of $154 million
"We are pleased to have continued our momentum into the second quarter," said John L. Workman, Omnicare's Chief Executive Officer. "Our second-quarter financial results reflect the solid performance of all of our core businesses. Our Long-Term Care Group further reduced its cost position through the increased penetration of low-cost generic drugs, while our Specialty Care Group generated another quarter of strong double-digit revenue growth, driven primarily by our specialty pharmacy platform."
Second-Quarter Results
Financial results for the quarter ended June 30, 2013, as compared with the same prior-year period, were as follows:
-- Net sales were $1,570 million versus $1,536 million
-- Gross profit was $378 million as compared with $367 million
-- GAAP earnings per diluted share was $0.48 versus $0.17
-- Adjusted cash earnings per diluted share (see "per share" discussion below and attached supplemental information) was $0.90 versus $0.83
-- Adjusted EBITDA was $179 million versus $170 million
Cash flows from operations for the quarter ended June 30, 2013 were $154 million versus $120 million in the comparable prior-year quarter.
"During the second quarter, we continued to execute well on our operating plan," said Nitin Sahney, Omnicare's President and Chief Operating Officer. "For the first time in six quarters, we generated net organic bed growth in our Long-Term Care Group - a trend we believe will be sustainable. In addition, we converted several important wins in a range of therapeutic categories within our Specialty Care Group. We believe these key operational advancements reinforce Omnicare's efforts to build upon a foundation that will enable us to better leverage our growth platforms."
Financial Position
Omnicare concluded the second quarter of 2013 with no borrowings outstanding on its revolving credit facility and $535 million in cash on its balance sheet.
As of June 30, 2013, the Company had approximately $120 million of availability under its current share repurchase authorization. In the second quarter, Omnicare entered into an Accelerated Share Repurchase (ASR) agreement to repurchase up to $100 million in shares of the company's common stock. The ASR is expected to reach final settlement during the third quarter of 2013.
"Our second quarter represented another period of strong cash flow generation," said Rocky Kraft, Omnicare's Chief Financial Officer. "During the first half of 2013, we increased the amount we returned to stockholders through dividends and share repurchases over the same prior year period, all while improving our overall financial position. We will continue to allocate our cash flows in a manner that we believe is most advantageous to our stockholders."
Year-to-Date Results
Financial results for the six months ended June 30, 2013, as compared with the same prior-year period, were as follows:
-- Net sales were $3.1 billion versus $3.1 billion
-- Gross profit was $749 million as compared with $735 million
-- GAAP earnings per diluted share was $0.98 versus $0.65
-- Adjusted cash earnings per diluted share (see "per share" discussion below and attached supplemental information) was $1.80 versus $1.64
-- Adjusted EBITDA was $351 million versus $340 million
Cash flows from operations for the six months ended June 30, 2013 were $263 million versus $221 million in the comparable prior 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
Beginning in the second quarter of 2013, the Company concluded that the operations of its hospice pharmacy business were better aligned with the operations of the other businesses in Long-Term Care, and began to review and manage the operations of this business as part of the Long-Term Care Group. All prior period segment information has been recast to reflect the new segment reporting.
Financial results for the Long-Term Care Group for the second quarter ended June 30, 2013 were as follows:
-- Net sales of $1,222 million were 2.6% lower than $1,255 million in the same prior-year period
-- Adjusted operating income of $165 million increased 4.4% from $158 million in the same prior-year period
Financial results for the Specialty Care Group for the second quarter ended June 30, 2013 were as follows:
-- Net sales of $347 million were 25% higher than $278 million in the same prior-year period
-- Adjusted operating income of $30 million increased 21.6% from $25 million in the same prior-year period
Special Items
The results for the second quarter and six months ended June 30, 2013 and 2012 include the impact of special items and cash EPS adjustments as follows:
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Three months ended Six Months Ended
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June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012
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(A) (B) (A) (B) (A) (B) (A) (B)
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Special Items Adj.
$25.2M $0.23 $52.4M $0.46 $45.3M $0.42 $70.1M $0.61
Cash EPS Adj. $21.8M $0.20 $23.2M $0.20 $43.8M $0.40 $44.1M $0.38
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(A) After-tax impact; (B)Per diluted share
In the second quarter of 2013, the Company completed the disposition of certain assets in its Medical Supply Services business, which was not considered significant to the operations of Omnicare. The company recorded a charge on the disposition of this business of $28.8 million in the three and six months ended June 30, 2013.
The special items and cash EPS adjustments have been described in further detail in the "Footnotes and Definitions to Financial Information" section elsewhere herein.
Outlook
Based on its solid results for the first six months of 2013, Omnicare now expects the following for the full year 2013:
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Previous Guidance Current Guidance
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Revenue $6.1B to $6.2B $6.1B to $6.3B
Adjusted cash earnings per diluted share (excluding special items)
$3.47 to $3.57 $3.56 to $3.64
Cash flows from operations $450M to $500M $475M to $525M
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Webcast Today
Omnicare will hold a conference call to discuss its second quarter 2013 financial results today, Wednesday, July 24, 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 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 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
Press release: http://bit.ly/1bOtit0
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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