DUBLIN, Ohio, July 30, 2015 /PRNewswire/ -- Cardinal
Health today reported fourth-quarter fiscal year 2015 revenues of
$27.5 billion, an increase of 20
percent, and non-GAAP diluted earnings per share (EPS) from
continuing operations of $1.00, an
increase of 20 percent. Non-GAAP operating earnings increased 33
percent to $611 million. On a GAAP
basis, operating earnings increased 44 percent to $558 million, and diluted EPS from continuing
operations increased 29 percent to $0.88.
Fiscal year 2015 revenues increased 13 percent to $102.5 billion, and non-GAAP diluted EPS from
continuing operations increased 14 percent to $4.38. Non-GAAP operating earnings increased 16
percent to $2.5 billion. On a GAAP
basis, operating earnings and diluted EPS from continuing
operations for fiscal year 2015 were $2.2
billion and $3.61,
respectively, an increase of 15 percent and 7 percent,
respectively, from the prior fiscal year.
"We finished our fiscal year 2015 with a very strong fourth
quarter, capping off an outstanding year. During fiscal 2015, we
had record non-GAAP operating earnings, achieved excellent growth
in revenues and non-GAAP EPS, and generated $2.5 billion in cash flow," said George Barrett, chairman and chief executive
officer of Cardinal Health.
"It was also a year of meaningful strategic initiatives,
including: operationalizing Red Oak Sourcing, our generic sourcing
venture with CVS Health; agreeing to acquire The Harvard Drug
Group, which reinforces our position in generic drugs and
telemarketing; and acquiring Metro Medical, which enhances the
position of our fast-growing Specialty Solutions group," Barrett
added. "We also combined forces with Henry
Schein to serve office-based medical practices; enhanced our
'at Home' platform to expand the product portfolio; and, took a
major step forward in our physician preference item portfolio with
the planned acquisition of Cordis. At the same time, we were able
to return $1.5 billion to
shareholders through dividends and share repurchases.
"We look forward to fiscal year 2016 and the opportunities,
enhanced by these growth drivers, to serve a health care system
going through significant change," Barrett concluded.
The company raised the midpoint of its fiscal year 2016 outlook
for non-GAAP diluted EPS from continuing operations, tightening the
range to $4.85 to $5.05 due to its
strong fiscal year 2015 performance and the momentum the company
has carried into fiscal year 2016. While the company does not
provide quarterly guidance, it expects financial performance to be
weighted toward the second half of fiscal 2016.
In fiscal 2015, Cardinal Health generated $2.5 billion in operating cash flow and returned
$1.5 billion to shareholders through
dividends and share buybacks.
Q4 and Fiscal Year Summary
|
Q4
FY15
|
Q4
FY14
|
Y/Y
|
FY15
|
FY14
|
Y/Y
|
|
Revenue
|
$27.5
billion
|
$22.9
billion
|
20%
|
$102.5
billion
|
$91.1
billion
|
13%
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
$558
million
|
$387
million
|
44%
|
$2,161
million
|
$1,885
million
|
15%
|
|
Non-GAAP Operating
Earnings
|
$611
million
|
$461
million
|
33%
|
$2,472
million
|
$2,133
million
|
16%
|
|
|
|
|
|
|
|
|
Earnings from
Continuing Operations
|
$293
million
|
$234
million
|
25%
|
$1,212
million
|
$1,163
million
|
4%
|
|
Non-GAAP Earnings
from Continuing Operations
|
$333
million
|
$284
million
|
17%
|
$1,469
million
|
$1,324
million
|
11%
|
|
|
|
|
|
|
|
|
Diluted EPS from
Continuing Operations
|
$0.88
|
$0.68
|
29%
|
$3.61
|
$3.37
|
7%
|
|
Non-GAAP Diluted EPS
from Continuing Operations
|
$1.00
|
$0.83
|
20%
|
$4.38
|
$3.84
|
14%
|
SEGMENT RESULTS
Pharmaceutical Segment
Fourth-quarter revenue for the Pharmaceutical segment increased
23 percent to $24.7 billion, due to
growth from existing and new customers. Segment profit for the
quarter increased 42 percent to $535
million, due to strong performance under the company's
generics program, which includes the net benefit of Red Oak
Sourcing, as well as growth from existing and new
customers.
For the full year, revenue for the Pharmaceutical segment
increased 14 percent to $91.1
billion, and segment profit increased 20 percent to
$2.1 billion.
|
Q4
FY15
|
Q4
FY14
|
Y/Y
|
FY15
|
FY14
|
Y/Y
|
|
Revenue
|
$24.7
billion
|
$20.1
billion
|
23%
|
$91.1
billion
|
$80.1
billion
|
14%
|
|
Segment
Profit
|
$535
million
|
$377
million
|
42%
|
$2.1
billion
|
$1.7
billion
|
20%
|
Medical Segment
Fourth-quarter revenue for the Medical segment increased 2
percent to $2.9 billion, due to
contributions from acquisitions and growth in the Cardinal Health
at Home platform, partially offset by a decline in Canada. Segment profit for the quarter
increased 7 percent to $103 million,
due to contributions from the strategic expansion of the company's
portfolio of Cardinal Health brand products and services, which was
driven by a combination of acquisitions and organic efforts,
coupled with targeted cost reductions, during the past year.
For the full year, Medical segment revenue increased 4 percent
to $11.4 billion, and segment profit
decreased 3 percent to $433
million.
|
Q4
FY15
|
Q4
FY14
|
Y/Y
|
FY15
|
FY14
|
Y/Y
|
|
Revenue
|
$2.9
billion
|
$2.8
billion
|
2%
|
$11.4.billion
|
$11.0
billion
|
4%
|
|
Segment
Profit
|
$103
million
|
$96
million
|
7%
|
$433
million
|
$444
million
|
(3%)
|
FY2015 SELECTED HIGHLIGHTS
- Entered into an agreement to acquire The Harvard Drug Group, a
distributor of generic pharmaceuticals, over-the-counter
medications and related products to retail, institutional and
alternate care customers, increasing Cardinal Health's generics
scale and reach; acquisition completed July
2015
- Entered into an agreement to acquire Cordis, a worldwide leader
in cardiovascular medical products
- Acquired the specialty distribution business of Metro Medical
Supply Inc., expanding scale and deepening reach into rheumatology,
oncology and nephrology segments
- Entered into a long-term strategic agreement with Henry Schein,
the world's largest provider of health care products and services
to office-based dental, animal health and medical practitioners, to
provide one of the most comprehensive service and product offerings
to office-based medical practices
- Unveiled the Cardinal Health™ negative pressure wound therapy
PRO family of devices for use in the acute care setting, at
discharge and in the home
Awards and Recognitions
- Ranked #1 on the Gartner Healthcare Supply Chain Top 25 for the
fourth consecutive year
- Selected as one of Institutional Investor magazine's Most
Honored Companies
- Named one of 15 recipients of the Department of Defense 2015
Secretary of Defense Employer Support Freedom Award, the highest
honor the department gives to employers for support of National
Guard and Reserve employees.
- Named among the 2015 Best Companies for Leaders by Chief
Executive magazine
- Named one of the "Top 50 Companies for Executive Women" by the
National Association for Female Executives and one of the Working
Mother 100 Best Companies, marking repeat designation since
2012
- Named to the Human Rights Campaign (HRC) "Best Places to Work
for LGBT Equality" for third consecutive year based on ratings in
HRC's 2015 Corporate Equality Index.
- Named among the National Business Group on Health Best
Employers for Healthy Lifestyles Platinum Award recipients
- Included in Becker's Healthcare 150 Great Places to Work in
Healthcare 2015 listing
- Named to the Dow Jones Sustainability Index for the ninth
consecutive year
- Designated a 2015 Top Green Company in the U.S. by
Newsweek magazine
CONFERENCE CALL
Cardinal Health will host a webcast and conference call today at
8:30 a.m. Eastern to discuss
fourth-quarter and full-year fiscal 2015 financial results and its
future outlook. To access the call and corresponding slide
presentation, go to the Investors page at ir.cardinalhealth.com.
Alternatively, participants can call 913.312.1448 and use passcode
5598613.
There is no pre-registration for the call. Participants are
advised to dial into the call at least 10 minutes prior to the
start time.
Presentation slides and an audio replay will be archived on the
Cardinal Health website after the conclusion of the meeting. The
replay also will be available until Thursday, Aug. 6, by dialing 719.457.0820 and
using passcode 5598613.
UPCOMING WEBCASTED INVESTOR EVENTS
- FBR Second Annual Healthcare Conference on Sept. 9 at 12 p.m.
Eastern in Boston
- Baird's 2015 Healthcare Conference on Sept. 10 at 7:50
a.m. Eastern in New
York
- Morgan Stanley Global Healthcare Conference on Sept. 16 at 8:45
a.m. Eastern in New
York
About Cardinal Health
Headquartered in Dublin,
Ohio, Cardinal Health, Inc. (NYSE: CAH) is a
$103 billion health care
services company that improves the cost-effectiveness of health
care. As the business behind health care, Cardinal Health helps
pharmacies, hospitals, ambulatory surgery centers,
clinical laboratories and physician offices focus on
patient care while reducing costs, enhancing
efficiency and improving quality. Cardinal Health is
an essential link in the health care supply chain, providing
pharmaceuticals and medical products and services to more than
100,000 locations each day and is also the industry-leading
direct-to-home medical supplies distributor. The company is a
leading manufacturer of medical and surgical products,
including gloves, surgical
apparel and fluid management
products. In addition, the company operates the nation's
largest network of radiopharmacies that dispense products to aid in
the early diagnosis and treatment of disease. Ranked #26 on the
Fortune 500, Cardinal Health employs nearly
35,000 people worldwide. More information about
the company may be found at www.cardinalhealth.com and
@CardinalHealth on Twitter.
1 See the attached tables for definitions of the
non-GAAP financial measures presented in this news release and
reconciliations of the differences between the non-GAAP financial
measures and their most directly comparable GAAP financial
measures.
Cardinal Health uses its website as a channel of distribution
for material company information. Important information, including
news releases, financial information, earnings and analyst
presentations, and information about upcoming presentations and
events is routinely posted and accessible on the Investors page at
ir.cardinalhealth.com. In addition, our website allows investors
and other interested persons to sign up automatically to receive
e-mail alerts when we post news releases, SEC filings and certain
other information on our website.
Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing
expectations, prospects, estimates and other matters that are
dependent upon future events or developments. These statements may
be identified by words such as "expect," "anticipate," "intend,"
"plan," "believe," "will," "should," "could," "would," "project,"
"continue," "likely," and similar expressions, and include
statements reflecting future results or guidance, statements of
outlook and expense accruals. These matters are subject to risks
and uncertainties that could cause actual results to differ
materially from those projected, anticipated or implied. These
risks and uncertainties include competitive pressures in Cardinal
Health's various lines of business; the ability to achieve
and maintain the benefits from the generic sourcing venture
with CVS Health and from our acquisition of The Harvard Drug Group;
the frequency or rate of pharmaceutical price appreciation or
deflation and the timing of generic and branded pharmaceutical
introductions; the ability to successfully complete the acquisition
of Cordis and if completed to achieve the anticipated results from
the Cordis acquisition; the risk of non-renewal or a default under
one or more key customer or supplier arrangements or changes to the
terms of or level of purchases under those arrangements;
uncertainties due to government health care reform including
federal health care reform legislation; changes in the distribution
patterns or reimbursement rates for health care products and
services; the effects of any investigation or action by any
regulatory authority; and changes in the cost of commodities such
as oil-based resins, cotton, latex and diesel fuel. Cardinal Health
is subject to additional risks and uncertainties described in
Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and
exhibits to those reports. This news release reflects management's
views as of July 30, 2015. Except to
the extent required by applicable law, Cardinal Health undertakes
no obligation to update or revise any forward-looking
statement.
|
|
|
Schedule
1
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Earnings (Unaudited)
|
|
|
|
|
|
Fourth
Quarter
|
|
|
|
(in millions, except
per common share amounts)
|
2015
|
|
2014
|
|
%
Change
|
|
Revenue
|
$
|
27,547
|
|
|
$
|
22,894
|
|
|
20
|
%
|
|
Cost of products
sold
|
26,089
|
|
|
21,638
|
|
|
21
|
%
|
|
Gross
margin
|
1,458
|
|
|
1,256
|
|
|
16
|
%
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Distribution,
selling, general and administrative expenses
|
847
|
|
|
795
|
|
|
7
|
%
|
|
Restructuring and
employee severance
|
11
|
|
|
6
|
|
|
N.M.
|
|
|
Amortization and
other acquisition-related costs
|
91
|
|
|
63
|
|
|
N.M.
|
|
|
Impairments and
(gain)/loss on disposal of assets
|
—
|
|
|
4
|
|
|
N.M.
|
|
|
Litigation
(recoveries)/charges, net
|
(49)
|
|
|
1
|
|
|
N.M.
|
|
|
Operating
earnings
|
558
|
|
|
387
|
|
|
44
|
%
|
|
|
|
|
|
|
|
Other income,
net
|
(1)
|
|
|
(3)
|
|
|
N.M.
|
|
|
Interest expense,
net
|
36
|
|
|
33
|
|
|
9
|
%
|
|
Earnings before
income taxes and discontinued operations
|
523
|
|
|
357
|
|
|
46
|
%
|
|
|
|
|
|
|
|
Provision for income
taxes
|
230
|
|
|
123
|
|
|
87
|
%
|
|
Earnings from
continuing operations
|
293
|
|
|
234
|
|
|
25
|
%
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
2
|
|
|
—
|
|
|
N.M.
|
|
|
Net
earnings
|
$
|
295
|
|
|
$
|
234
|
|
|
26
|
%
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.89
|
|
|
$
|
0.69
|
|
|
29
|
%
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
N.M.
|
|
|
Net basic earnings
per common share
|
$
|
0.89
|
|
|
$
|
0.69
|
|
|
29
|
%
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.88
|
|
|
$
|
0.68
|
|
|
29
|
%
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
N.M.
|
|
|
Net diluted
earnings per common share
|
$
|
0.88
|
|
|
$
|
0.68
|
|
|
29
|
%
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
330
|
|
|
339
|
|
|
|
|
Diluted
|
333
|
|
|
343
|
|
|
|
|
|
|
Schedule
2
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Earnings
|
|
|
|
|
|
Fiscal
Year
|
|
|
|
(in millions, except
per common share amounts)
|
2015
|
|
2014
|
|
%
Change
|
|
(Unaudited)
|
|
|
|
|
|
Revenue
|
$
|
102,531
|
|
|
$
|
91,084
|
|
|
13
|
%
|
|
Cost of products
sold
|
96,819
|
|
|
85,923
|
|
|
13
|
%
|
|
Gross
margin
|
5,712
|
|
|
5,161
|
|
|
11
|
%
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Distribution,
selling, general and administrative expenses
|
3,240
|
|
|
3,028
|
|
|
7
|
%
|
|
Restructuring and
employee severance
|
44
|
|
|
31
|
|
|
N.M.
|
|
|
Amortization and
other acquisition-related costs
|
281
|
|
|
223
|
|
|
N.M.
|
|
|
Impairments and
(gain)/loss on disposal of assets
|
(19)
|
|
|
15
|
|
|
N.M.
|
|
|
Litigation
(recoveries)/charges, net
|
5
|
|
|
(21)
|
|
|
N.M.
|
|
|
Operating
earnings
|
2,161
|
|
|
1,885
|
|
|
15
|
%
|
|
|
|
|
|
|
|
Other income,
net
|
(7)
|
|
|
(46)
|
|
|
N.M.
|
|
|
Interest expense,
net
|
141
|
|
|
133
|
|
|
6
|
%
|
|
Loss on
extinguishment of debt
|
60
|
|
|
—
|
|
|
N.M.
|
|
|
Earnings before
income taxes and discontinued operations
|
1,967
|
|
|
1,798
|
|
|
9
|
%
|
|
|
|
|
|
|
|
Provision for income
taxes
|
755
|
|
|
635
|
|
|
19
|
%
|
|
Earnings from
continuing operations
|
1,212
|
|
|
1,163
|
|
|
4
|
%
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
3
|
|
|
3
|
|
|
N.M.
|
|
|
Net
earnings
|
$
|
1,215
|
|
|
$
|
1,166
|
|
|
4
|
%
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
Continuing
operations
|
$
|
3.65
|
|
|
$
|
3.41
|
|
|
7
|
%
|
|
Discontinued
operations
|
0.01
|
|
|
0.01
|
|
|
N.M.
|
|
|
Net basic earnings
per common share
|
$
|
3.66
|
|
|
$
|
3.42
|
|
|
7
|
%
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
|
Continuing
operations
|
$
|
3.61
|
|
|
$
|
3.37
|
|
|
7
|
%
|
|
Discontinued
operations
|
0.01
|
|
|
0.01
|
|
|
N.M.
|
|
|
Net diluted
earnings per common share
|
$
|
3.62
|
|
|
$
|
3.38
|
|
|
7
|
%
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
332
|
|
|
341
|
|
|
|
|
Diluted
|
335
|
|
|
345
|
|
|
|
|
|
|
Schedule
3
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(in
millions)
|
June 30,
2015
|
|
June 30,
2014
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
equivalents
|
$
|
4,616
|
|
|
$
|
2,865
|
|
|
Trade receivables,
net
|
6,523
|
|
|
5,380
|
|
|
Inventories,
net
|
9,211
|
|
|
8,266
|
|
|
Prepaid expenses and
other
|
1,402
|
|
|
1,428
|
|
|
Total current
assets
|
21,752
|
|
|
17,939
|
|
|
|
|
|
|
Property and
equipment, net
|
1,506
|
|
|
1,459
|
|
|
Goodwill and other
intangibles, net
|
6,018
|
|
|
5,870
|
|
|
Other
assets
|
866
|
|
|
765
|
|
|
Total
assets
|
$
|
30,142
|
|
|
$
|
26,033
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
14,368
|
|
|
$
|
12,149
|
|
|
Current portion of
long-term obligations and other short-term borrowings
|
281
|
|
|
801
|
|
|
Other accrued
liabilities
|
2,594
|
|
|
2,165
|
|
|
Total current
liabilities
|
17,243
|
|
|
15,115
|
|
|
|
|
|
|
Long-term
obligations, less current portion
|
5,211
|
|
|
3,171
|
|
|
Deferred income taxes
and other liabilities
|
1,432
|
|
|
1,346
|
|
|
Total shareholders'
equity
|
6,256
|
|
|
6,401
|
|
|
Total liabilities
and shareholders' equity
|
$
|
30,142
|
|
|
$
|
26,033
|
|
|
|
|
Schedule
4
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
(in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
295
|
|
|
$
|
234
|
|
|
$
|
1,215
|
|
|
$
|
1,166
|
|
|
Earnings from
discontinued operations, net of tax
|
(2)
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
|
Earnings from
continuing operations
|
293
|
|
|
234
|
|
|
1,212
|
|
|
1,163
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile earnings from continuing operations to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
115
|
|
|
115
|
|
|
451
|
|
|
459
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
Gain on sale of other
investments
|
—
|
|
|
—
|
|
|
(5)
|
|
|
(32)
|
|
|
Impairments and
(gain)/loss on disposal of assets, net
|
—
|
|
|
4
|
|
|
(19)
|
|
|
15
|
|
|
Share-based
compensation
|
30
|
|
|
24
|
|
|
110
|
|
|
96
|
|
|
Provision for
deferred income taxes
|
219
|
|
|
26
|
|
|
219
|
|
|
26
|
|
|
Provision for bad
debts
|
10
|
|
|
11
|
|
|
52
|
|
|
42
|
|
|
Change in fair value
of contingent consideration obligation
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
Change in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
|
|
|
Decrease/(increase) in
trade receivables
|
(152)
|
|
|
(548)
|
|
|
(870)
|
|
|
925
|
|
|
Decrease/(increase) in
inventories
|
71
|
|
|
(208)
|
|
|
(779)
|
|
|
142
|
|
|
Increase/(decrease) in
accounts payable
|
291
|
|
|
1,196
|
|
|
1,948
|
|
|
(196)
|
|
|
Other accrued
liabilities and operating items, net
|
(17)
|
|
|
(138)
|
|
|
153
|
|
|
(116)
|
|
|
Net cash provided by
operating activities
|
868
|
|
|
716
|
|
|
2,540
|
|
|
2,524
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Acquisition of
subsidiaries, net of cash acquired
|
(184)
|
|
|
(351)
|
|
|
(503)
|
|
|
(519)
|
|
|
Additions to property
and equipment
|
(161)
|
|
|
(111)
|
|
|
(300)
|
|
|
(249)
|
|
|
Purchase of
available-for-sale securities and other investments
|
(208)
|
|
|
(102)
|
|
|
(342)
|
|
|
(129)
|
|
|
Proceeds from sale of
available-for-sale securities and other investments
|
77
|
|
|
—
|
|
|
206
|
|
|
47
|
|
|
Proceeds from
maturities of available-for-sale securities
|
13
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
Proceeds from
divestitures and disposal of held for sale assets
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
Net cash used in
investing activities
|
(463)
|
|
|
(564)
|
|
|
(849)
|
|
|
(850)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Payment of contingent
consideration obligation
|
(4)
|
|
|
—
|
|
|
(7)
|
|
|
—
|
|
|
Net change in
short-term borrowings
|
(3)
|
|
|
49
|
|
|
(12)
|
|
|
114
|
|
|
Reduction of
long-term obligations
|
—
|
|
|
(1)
|
|
|
(1,221)
|
|
|
(2)
|
|
|
Proceeds from
long-term obligations, net of issuance costs
|
1,490
|
|
|
—
|
|
|
2,672
|
|
|
—
|
|
|
Net proceeds from
issuance of common shares
|
13
|
|
|
8
|
|
|
72
|
|
|
227
|
|
|
Tax
proceeds/(disbursements) from share-based compensation
|
(4)
|
|
|
3
|
|
|
52
|
|
|
39
|
|
|
Dividends on common
shares
|
(114)
|
|
|
(103)
|
|
|
(460)
|
|
|
(415)
|
|
|
Purchase of treasury
shares
|
(350)
|
|
|
(284)
|
|
|
(1,036)
|
|
|
(673)
|
|
|
Net cash provided
by/(used in) financing activities
|
1,028
|
|
|
(328)
|
|
|
60
|
|
|
(710)
|
|
|
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and equivalents
|
1,433
|
|
|
(176)
|
|
|
1,751
|
|
|
964
|
|
|
Cash and equivalents
at beginning of period
|
3,183
|
|
|
3,041
|
|
|
2,865
|
|
|
1,901
|
|
|
Cash and
equivalents at end of period
|
$
|
4,616
|
|
|
$
|
2,865
|
|
|
$
|
4,616
|
|
|
$
|
2,865
|
|
|
|
|
Schedule
5
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
Total Company
Business Analysis
|
|
|
|
|
|
|
|
Non-GAAP
|
|
Fourth
Quarter
|
|
Fourth
Quarter
|
|
(in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenue
|
|
|
|
|
|
|
|
|
Amount
|
$
|
27,547
|
|
|
$
|
22,894
|
|
|
|
|
|
|
Growth
rate
|
20
|
%
|
|
(10)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
|
|
|
|
|
|
|
Amount
|
$
|
558
|
|
|
$
|
387
|
|
|
$
|
611
|
|
|
$
|
461
|
|
|
Growth
rate
|
44
|
%
|
|
N.M.
|
|
|
33
|
%
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
Amount
|
$
|
293
|
|
|
$
|
234
|
|
|
$
|
333
|
|
|
$
|
284
|
|
|
Growth
rate
|
25
|
%
|
|
N.M.
|
|
|
17
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
18.7
|
%
|
|
14.5
|
%
|
|
21.3
|
%
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
Effective tax rate
from continuing operations
|
44.1
|
%
|
|
34.4
|
%
|
|
42.2
|
%
|
|
34.2
|
%
|
|
|
|
|
|
|
|
|
|
Debt to total
capital
|
47
|
%
|
|
38
|
%
|
|
|
|
|
|
Net debt to total
capital
|
|
|
|
|
12
|
%
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
Fiscal
Year
|
|
Fiscal
Year
|
|
(in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenue
|
|
|
|
|
|
|
|
|
Amount
|
$
|
102,531
|
|
|
$
|
91,084
|
|
|
|
|
|
|
Growth
rate1
|
13
|
%
|
|
(10)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
|
|
|
|
|
|
|
Amount
|
$
|
2,161
|
|
|
$
|
1,885
|
|
|
$
|
2,472
|
|
|
$
|
2,133
|
|
|
Growth
rate
|
15
|
%
|
|
89
|
%
|
|
16
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
Amount
|
$
|
1,212
|
|
|
$
|
1,163
|
|
|
$
|
1,469
|
|
|
$
|
1,324
|
|
|
Growth
rate
|
4
|
%
|
|
247
|
%
|
|
11
|
%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
19.4
|
%
|
|
18.3
|
%
|
|
23.4
|
%
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
Effective tax rate
from continuing operations
|
38.4
|
%
|
|
35.3
|
%
|
|
37.2
|
%
|
|
35.3
|
%
|
|
|
1
Revenue from Walgreens was $3.3 billion for the fiscal year ended
June 30, 2014. Excluding the impact of the Walgreens
contract expiration, the fiscal 2015 revenue growth rate would
have been 17 percent.
|
|
|
Refer to the
GAAP/Non-GAAP reconciliation for definitions and calculations
supporting the Non-GAAP balances.
|
|
|
|
|
Schedule
6
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
Segment Business
Analysis
|
|
|
|
|
|
|
Fourth
Quarter
|
|
|
Fourth
Quarter
|
|
(in
millions)
|
2015
|
|
2014
|
|
(in
millions)
|
2015
|
|
2014
|
|
Pharmaceutical
|
|
|
|
|
Medical
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
Revenue
|
|
|
|
|
Amount
|
$
|
24,676
|
|
|
$
|
20,092
|
|
|
Amount
|
$
|
2,855
|
|
|
$
|
2,794
|
|
|
Growth
rate
|
23
|
%
|
|
(12)
|
%
|
|
Growth
rate
|
2
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
|
|
|
|
Segment
profit
|
|
|
|
|
Amount
|
$
|
535
|
|
|
$
|
377
|
|
|
Amount
|
$
|
103
|
|
|
$
|
96
|
|
|
Growth
rate
|
42
|
%
|
|
(5)
|
%
|
|
Growth
rate
|
7
|
%
|
|
(8)
|
%
|
|
Segment profit
margin
|
2.17
|
%
|
|
1.88
|
%
|
|
Segment profit
margin
|
3.59
|
%
|
|
3.43
|
%
|
|
|
Refer to definitions
for an explanation of calculations.
|
|
|
Total consolidated
revenue for the three months ended June 30, 2015 was $27,547
million, which included total segment revenue of $27,531 million
and Corporate revenue of $16 million. Total consolidated revenue
for the three months ended June 30, 2014 was $22,894 million,
which included total segment revenue of $22,886 million and
Corporate revenue of $8 million. Corporate revenue consists
primarily of elimination of inter-segment revenue and other revenue
not allocated to the segments.
|
|
|
Total consolidated
operating earnings for the three months ended June 30, 2015
were $558 million, which included total segment profit of $638
million and Corporate costs of $(80) million. Total consolidated
operating earnings for the three months ended June 30, 2014
were $387 million, which included total segment profit of $473
million and Corporate costs of $(86) million. Corporate includes,
among other things, restructuring and employee severance,
amortization and other acquisition-related costs, impairments and
(gain)/loss on disposal of assets, litigation (recoveries)/charges,
net and certain investment spending that are not allocated to the
segments.
|
|
|
|
|
Schedule
7
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
Segment Business
Analysis
|
|
|
|
|
|
|
Fiscal
Year
|
|
|
Fiscal
Year
|
|
(in
millions)
|
2015
|
|
2014
|
|
(in
millions)
|
2015
|
|
2014
|
|
Pharmaceutical
|
|
|
|
|
Medical
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
Revenue
|
|
|
|
|
Amount
|
$
|
91,116
|
|
|
$
|
80,110
|
|
|
Amount
|
$
|
11,395
|
|
|
$
|
10,962
|
|
|
Growth
rate1
|
14
|
%
|
|
(12)
|
%
|
|
Growth
rate
|
4
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
|
|
|
|
Segment
profit
|
|
|
|
|
Amount
|
$
|
2,094
|
|
|
$
|
1,745
|
|
|
Amount
|
$
|
433
|
|
|
$
|
444
|
|
|
Growth
rate
|
20
|
%
|
|
1
|
%
|
|
Growth
rate
|
(3)
|
%
|
|
19
|
%
|
|
Segment profit
margin
|
2.30
|
%
|
|
2.18
|
%
|
|
Segment profit
margin
|
3.80
|
%
|
|
4.05
|
%
|
|
|
1
Revenue from Walgreens was $3.3 billion for the fiscal year ended
June 30, 2014. Excluding the impact of the
Walgreens contract expiration,
the fiscal 2015
Pharmaceutical segment revenue growth rate would have been 19
percent.
|
|
|
Refer to definitions
for an explanation of calculations.
|
|
|
Total consolidated
revenue for the fiscal year ended June 30, 2015 was $102,531
million, which included total segment revenue of $102,511 million
and Corporate revenue of $20 million. Total consolidated revenue
for the fiscal year ended June 30, 2014 was $91,084 million,
which included total segment revenue of $91,072 million and
Corporate revenue of $12 million. Corporate revenue consists
primarily of elimination of inter-segment revenue and other revenue
not allocated to the segments.
|
|
|
Total consolidated
operating earnings for the fiscal year ended June 30, 2015
were $2,161 million, which included total segment profit of $2,527
million and Corporate costs of $(366) million. Total consolidated
operating earnings for the fiscal year ended June 30, 2014
were $1,885 million, which included total segment profit of $2,189
million and Corporate costs of $(304) million. Corporate includes,
among other things, restructuring and employee severance,
amortization and other acquisition-related costs, impairments and
(gain)/loss on disposal of assets, litigation (recoveries)/charges,
net and certain investment spending that are not allocated to the
segments.
|
|
Schedule
8
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
GAAP / Non-GAAP
Reconciliation
|
|
|
|
Fourth Quarter
2015
|
|
|
Operating
|
Earnings
Before
|
Provision
|
Earnings
|
Earnings
from
|
Diluted
EPS
|
Diluted
EPS
|
|
|
Earnings
|
Income
Taxes
|
for
|
from
|
Continuing
|
from
|
from
Continuing
|
|
(in millions, except
per common share amounts)
|
Operating
|
Growth
|
and
Discontinued
|
Income
|
Continuing
|
Operations
|
Continuing
|
Operations
|
|
Earnings
|
Rate
|
Operations
|
Taxes
|
Operations
|
Growth
Rate
|
Operations
|
Growth
Rate
|
|
GAAP
|
$
|
558
|
|
44
|
%
|
$
|
523
|
|
$
|
230
|
|
$
|
293
|
|
25
|
%
|
$
|
0.88
|
|
29
|
%
|
|
Restructuring and
employee severance
|
11
|
|
|
11
|
|
4
|
|
7
|
|
|
0.02
|
|
|
|
Amortization and
other acquisition-related costs
|
91
|
|
|
91
|
|
31
|
|
60
|
|
|
0.18
|
|
|
|
Impairments and
(gain)/loss on disposal of assets
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
|
Litigation
(recoveries)/charges, net
|
(49)
|
|
|
(49)
|
|
(22)
|
|
(27)
|
|
|
(0.08)
|
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
|
Non-GAAP
|
$
|
611
|
|
33
|
%
|
$
|
577
|
|
$
|
243
|
|
$
|
333
|
|
17
|
%
|
$
|
1.00
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2014
|
|
GAAP
|
$
|
387
|
|
N.M.
|
|
$
|
357
|
|
$
|
123
|
|
$
|
234
|
|
N.M.
|
|
$
|
0.68
|
|
N.M.
|
|
|
Restructuring and
employee severance
|
6
|
|
|
6
|
|
2
|
|
4
|
|
|
0.01
|
|
|
|
Amortization and
other acquisition-related costs
|
63
|
|
|
63
|
|
22
|
|
41
|
|
|
0.12
|
|
|
|
Impairments and loss
on disposal of assets
|
4
|
|
|
4
|
|
1
|
|
3
|
|
|
0.01
|
|
|
|
Litigation
(recoveries)/charges, net
|
1
|
|
|
1
|
|
—
|
|
1
|
|
|
—
|
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
|
Non-GAAP
|
$
|
461
|
|
(2)
|
%
|
$
|
432
|
|
$
|
148
|
|
$
|
284
|
|
4
|
%
|
$
|
0.83
|
|
5
|
%
|
|
|
|
Fiscal Year
2015
|
|
|
Operating
|
Earnings
Before
|
Provision
|
Earnings
|
Earnings
from
|
Diluted
EPS
|
Diluted
EPS
|
|
|
Earnings
|
Income
Taxes
|
for
|
from
|
Continuing
|
from
|
from
Continuing
|
|
(in millions, except
per common share amounts)
|
Operating
|
Growth
|
and
Discontinued
|
Income
|
Continuing
|
Operations
|
Continuing
|
Operations
|
|
Earnings
|
Rate
|
Operations
|
Taxes
|
Operations
|
Growth
Rate
|
Operations
|
Growth
Rate
|
|
GAAP
|
$
|
2,161
|
|
15
|
%
|
$
|
1,967
|
|
$
|
755
|
|
$
|
1,212
|
|
4
|
%
|
$
|
3.61
|
|
7
|
%
|
|
Restructuring and
employee severance
|
44
|
|
|
44
|
|
15
|
|
29
|
|
|
0.09
|
|
|
|
Amortization and
other acquisition-related costs
|
281
|
|
|
281
|
|
100
|
|
181
|
|
|
0.54
|
|
|
|
Impairments and
(gain)/loss on disposal of assets
|
(19)
|
|
|
(19)
|
|
(10)
|
|
(9)
|
|
|
(0.03)
|
|
|
|
Litigation
(recoveries)/charges, net
|
5
|
|
|
5
|
|
(14)
|
|
19
|
|
|
0.06
|
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
60
|
|
23
|
|
37
|
|
|
0.11
|
|
|
|
Non-GAAP
|
$
|
2,472
|
|
16
|
%
|
$
|
2,339
|
|
$
|
870
|
|
$
|
1,469
|
|
11
|
%
|
$
|
4.38
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
2014
|
|
GAAP
|
$
|
1,885
|
|
89
|
%
|
$
|
1,798
|
|
$
|
635
|
|
$
|
1,163
|
|
247
|
%
|
$
|
3.37
|
|
247
|
%
|
|
Restructuring and
employee severance
|
31
|
|
|
31
|
|
11
|
|
20
|
|
|
0.06
|
|
|
|
Amortization and
other acquisition-related costs
|
223
|
|
|
223
|
|
79
|
|
144
|
|
|
0.42
|
|
|
|
Impairments and loss
on disposal of assets
|
15
|
|
|
15
|
|
5
|
|
10
|
|
|
0.03
|
|
|
|
Litigation
(recoveries)/charges, net
|
(21)
|
|
|
(21)
|
|
(8)
|
|
(13)
|
|
|
(0.04)
|
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
|
Non-GAAP
|
$
|
2,133
|
|
4
|
%
|
$
|
2,047
|
|
$
|
722
|
|
$
|
1,324
|
|
3
|
%
|
$
|
3.84
|
|
3
|
%
|
|
|
The sum of the
components may not equal the total due to rounding.
|
|
|
We apply varying tax
rates depending on the item's nature and tax jurisdiction where it
is incurred.
|
|
|
|
Schedule
9
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
GAAP / Non-GAAP
Reconciliation
|
|
|
|
|
|
Fourth
Quarter
|
|
|
|
(in
millions)
|
2015
|
|
|
|
2014
|
|
|
|
GAAP return on
equity
|
18.7
|
%
|
|
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP return on
equity
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
295
|
|
|
|
|
$
|
234
|
|
|
|
|
Restructuring and
employee severance, net of tax, in continuing operations
|
7
|
|
|
|
|
4
|
|
|
|
|
Amortization and
other acquisition-related costs, net of tax, in continuing
operations
|
60
|
|
|
|
|
41
|
|
|
|
|
Impairments and
(gain)/loss on disposal of assets, net of tax, in continuing
operations
|
—
|
|
|
|
|
3
|
|
|
|
|
Litigation
(recoveries)/charges, net, net of tax, in continuing
operations
|
(27)
|
|
|
|
|
1
|
|
|
|
|
Adjusted net
earnings
|
$
|
335
|
|
|
|
|
$
|
283
|
|
|
|
|
Annualized
|
$
|
1,340
|
|
|
|
|
$
|
1,132
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
|
|
Third
|
|
Fourth
|
|
Third
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
Total shareholders'
equity
|
$
|
6,256
|
|
|
$
|
6,369
|
|
|
$
|
6,401
|
|
|
$
|
6,532
|
|
|
Divided by average
shareholders' equity
|
$
|
6,312
|
|
|
|
|
$
|
6,466
|
|
|
|
|
Non-GAAP return on
equity
|
21.3
|
%
|
|
|
|
17.6
|
%
|
|
|
|
|
We apply varying tax
rates depending on the item's nature and tax jurisdiction where it
is incurred.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule
10
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
|
|
|
|
|
|
|
|
GAAP / Non-GAAP
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Year
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
2015
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
GAAP return on
equity
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
18.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP return on
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
1,215
|
|
|
|
|
|
|
|
|
|
|
$
|
1,166
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
employee severance, net of tax, in continuing operations
|
29
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
Amortization and
other acquisition-related costs, net of tax, in continuing
operations
|
181
|
|
|
|
|
|
|
|
|
|
|
144
|
|
|
|
|
|
|
|
|
|
|
Impairments and
(gain)/loss on disposal of assets, net of tax, in continuing
operations
|
(9)
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
Litigation
(recoveries)/charges, net, net of tax, in continuing
operations
|
19
|
|
|
|
|
|
|
|
|
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
Loss on
extinguishment of debt, net of tax, in continuing
operations
|
37
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings
|
$
|
1,472
|
|
|
|
|
|
|
|
|
|
|
$
|
1,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
Total shareholders'
equity
|
$
|
6,256
|
|
|
$
|
6,369
|
|
|
$
|
6,100
|
|
|
$
|
6,256
|
|
|
$
|
6,401
|
|
|
$
|
6,401
|
|
|
$
|
6,532
|
|
|
$
|
6,589
|
|
|
$
|
6,297
|
|
|
$
|
5,975
|
|
|
Divided by average
shareholders' equity
|
$
|
6,276
|
|
|
|
|
|
|
|
|
|
|
$
|
6,359
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP return on
equity
|
23.4
|
%
|
|
|
|
|
|
|
|
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
|
We apply varying tax
rates depending on the item's nature and tax jurisdiction where it
is incurred.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule
11
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
GAAP / Non-GAAP
Reconciliation
|
|
|
|
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
(in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
GAAP effective tax
rate from continuing operations
|
44.1
|
%
|
|
34.4
|
%
|
|
38.4
|
%
|
|
35.3
|
%
|
|
|
|
|
|
|
|
|
|
Non-GAAP effective
tax rate from continuing operations
|
|
|
|
|
|
|
|
|
Earnings before
income taxes and discontinued operations
|
$
|
523
|
|
|
$
|
357
|
|
|
$
|
1,967
|
|
|
$
|
1,798
|
|
|
Restructuring and
employee severance
|
11
|
|
|
6
|
|
|
44
|
|
|
31
|
|
|
Amortization and
other acquisition-related costs
|
91
|
|
|
63
|
|
|
281
|
|
|
223
|
|
|
Impairments and
(gain)/loss on disposal of assets
|
—
|
|
|
4
|
|
|
(19)
|
|
|
15
|
|
|
Litigation
(recoveries)/charges, net
|
(49)
|
|
|
1
|
|
|
5
|
|
|
(21)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
Adjusted earnings
before income taxes and discontinued operations
|
$
|
577
|
|
|
$
|
432
|
|
|
$
|
2,339
|
|
|
$
|
2,047
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
$
|
230
|
|
|
$
|
123
|
|
|
$
|
755
|
|
|
$
|
635
|
|
|
Restructuring and
employee severance tax benefit
|
4
|
|
|
2
|
|
|
15
|
|
|
11
|
|
|
Amortization and
other acquisition-related costs tax benefit
|
31
|
|
|
22
|
|
|
100
|
|
|
79
|
|
|
Impairments and
(gain)/loss on disposal of assets tax benefit/(expense)
|
—
|
|
|
1
|
|
|
(10)
|
|
|
5
|
|
|
Litigation
(recoveries)/charges, net tax expense
|
(22)
|
|
|
—
|
|
|
(14)
|
|
|
(8)
|
|
|
Loss on
extinguishment of debt tax benefit
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
Adjusted provision
for income taxes
|
$
|
243
|
|
|
$
|
148
|
|
|
$
|
870
|
|
|
$
|
722
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP effective
tax rate from continuing operations
|
42.2
|
%
|
|
34.2
|
%
|
|
37.2
|
%
|
|
35.3
|
%
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Debt to total
capital
|
47
|
%
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt to
capital
|
|
|
|
|
|
|
|
|
Current portion of
long-term obligations and other short-term borrowings
|
$
|
281
|
|
|
$
|
801
|
|
|
|
|
|
|
Long-term
obligations, less current portion
|
5,211
|
|
|
3,171
|
|
|
|
|
|
|
Debt
|
$
|
5,492
|
|
|
$
|
3,972
|
|
|
|
|
|
|
Cash and
equivalents
|
(4,616)
|
|
|
(2,865)
|
|
|
|
|
|
|
Net debt
|
$
|
876
|
|
|
$
|
1,107
|
|
|
|
|
|
|
Total shareholders'
equity
|
6,256
|
|
|
6,401
|
|
|
|
|
|
|
Capital
|
$
|
7,132
|
|
|
$
|
7,508
|
|
|
|
|
|
|
Net debt to
capital
|
12
|
%
|
|
15
|
%
|
|
|
|
|
|
The sum of the
components may not equal the total due to rounding.
|
|
|
|
We apply varying tax
rates depending on the item's nature and tax jurisdiction where it
is incurred.
|
|
|
|
Forward-Looking
Non-GAAP Financial Measures
|
|
We present non-GAAP
earnings from continuing operations and non-GAAP effective tax rate
from continuing operations (and presentations derived from these
financial measures, including per share calculations) on a
forward-looking basis. The most directly comparable forward-looking
GAAP measures are earnings from continuing operations and effective
tax rate from continuing operations. We are unable to provide a
quantitative reconciliation of these forward-looking non-GAAP
measures to the most directly comparable forward-looking GAAP
measures because we cannot reliably forecast restructuring and
employee severance, amortization and other acquisition-related
costs, impairments and (gain)/loss on disposal of assets,
litigation (recoveries)/charges, net, LIFO charges/(credits) and
loss on extinguishment of debt, which are difficult to predict and
estimate and are primarily dependent on future events. Please note
that the unavailable reconciling items could significantly impact
our future financial results.
|
|
|
|
Cardinal Health,
Inc. and Subsidiaries
|
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Use of Non-GAAP
Measures
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This earnings release
contains financial measures that are not calculated in accordance
with U.S. generally accepted accounting principles ("GAAP").
In general, the measures exclude items and charges that (i)
management does not believe reflect Cardinal Health, Inc.'s (the
"Company") core business and relate more to strategic, multi-year
corporate activities; or (ii) relate to activities or actions that
may have occurred over multiple or in prior periods without
predictable trends. Management uses these non-GAAP financial
measures internally to evaluate the Company's performance, evaluate
the balance sheet, engage in financial and operational planning and
determine incentive compensation.
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In fiscal 2015, the
Company began excluding last-in, first-out ("LIFO") inventory
charges/(credits)5 from its non-GAAP earnings, for
consistency with the presentation by some of its peers. The Company
did not record any LIFO charges or credits in fiscal 2015 or 2014,
respectively. In the second quarter of fiscal 2015, the
Company excluded the loss on extinguishment of debt6
related to the early redemption of debt that occurred in December
2014 from its non-GAAP earnings.
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Management provides
these non-GAAP financial measures to investors as supplemental
metrics to assist readers in assessing the effects of items and
events on its financial and operating results and in comparing the
Company's performance to that of its competitors. However,
the non-GAAP financial measures used by the Company may be
calculated differently from, and therefore may not be comparable
to, similarly titled measures used by other companies.
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The non-GAAP
financial measures disclosed by the Company should not be
considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP, and the financial results
calculated in accordance with GAAP and reconciliations to those
financial statements set forth above should be carefully
evaluated.
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Definitions
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Debt:
long-term obligations plus short-term borrowings.
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Debt to Total
Capital: debt divided by (debt plus total shareholders'
equity).
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Net Debt: a
Non-GAAP measure defined as debt minus (cash and
equivalents).
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Net Debt to
Capital: a Non-GAAP measure defined as net debt divided by (net
debt plus total shareholders' equity).
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Non-GAAP Diluted
EPS from Continuing Operations: non-GAAP earnings from
continuing operations divided by diluted weighted-average shares
outstanding.
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Non-GAAP Earnings
from Continuing Operations: earnings from continuing operations
excluding (1) restructuring and employee severance1, (2)
amortization and other acquisition-related costs2, (3)
impairments and (gain)/loss on disposal of assets3, (4)
litigation (recoveries)/charges, net4, (5) LIFO
charges/(credits) and (6) loss on extinguishment of debt, each net
of tax.
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Non-GAAP Effective
Tax Rate from Continuing Operations: (provision for income
taxes adjusted for (1) restructuring and employee severance, (2)
amortization and other acquisition-related costs, (3) impairments
and (gain)/loss on disposal of assets, (4) litigation
(recoveries)/charges, net, (5) LIFO charges/(credits) and (6) loss
on extinguishment of debt) divided by (earnings before income taxes
and discontinued operations adjusted for the same six
items).
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Non-GAAP Operating
Earnings: operating earnings excluding (1) restructuring and
employee severance, (2) amortization and other acquisition-related
costs, (3) impairments and (gain)/loss on disposal of assets, (4)
litigation (recoveries)/charges, net and (5) LIFO
charges/(credits).
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Non-GAAP Return on
Equity: (annualized current period net earnings excluding (1)
restructuring and employee severance, (2) amortization and other
acquisition-related costs, (3) impairments and (gain)/loss on
disposal of assets, (4) litigation (recoveries)/charges, net, (5)
LIFO charges/(credits) and (6) loss on extinguishment of debt, each
net of tax) divided by average shareholders' equity.
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Return on
Equity: annualized current period net earnings divided by
average shareholders' equity.
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Segment
Profit: segment revenue minus (segment cost of products sold
and segment distribution, selling, general and administrative
expenses).
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Segment Profit
Margin: segment profit divided by segment revenue.
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1
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Programs by which the
Company fundamentally changes its operations such as closing and
consolidating facilities, moving manufacturing of a product to
another location, production or business process sourcing, employee
severance (including rationalizing headcount or other significant
changes in personnel) and realigning operations (including
realignment of the management structure of a business unit in
response to changing market conditions).
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2
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Costs that consist
primarily of amortization of acquisition-related intangibles
assets, transaction costs, integration costs and changes in the
fair value of contingent consideration obligations.
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3
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Asset impairments and
(gains)/losses from the disposal of assets not eligible to be
classified as discontinued operations are classified within
impairments and (gain)/loss on disposal of assets within the
consolidated statements of earnings.
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4
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Loss contingencies
related to litigation and regulatory matters and income from
favorable resolution of legal matters.
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5
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The inventories of
the Company's core pharmaceutical distribution facilities in the
Pharmaceutical segment are valued at the lower of cost, using the
LIFO method, or market. These charges or credits are included
in cost of products sold, and represent changes in the Company's
LIFO inventory reserve.
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6
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Charges related to
the make-whole premium on the redemption of notes.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cardinal-health-reports-strong-q4-and-record-fiscal-year-end-non-gaap-operating-earnings-results-300121165.html
SOURCE Cardinal Health