news
release
Omnicare Reports
Fourth-Quarter and Full-Year 2014 Financial Results; Company
Provides Full-Year 2015 Guidance
CINCINNATI, February 25,
2015 - Omnicare, Inc. (NYSE:OCR) reported today financial
results for its fourth quarter and full year ended
December 31, 2014.
Fourth-Quarter
Highlights:
-
Net sales increase of 6.0% to
$1.63 billion
-
Adjusted operating income of
$158 million; 9.2% increase from comparable prior-year
period
-
Adjusted cash earnings per
diluted share from continuing operations increased 10.3% to $0.96;
GAAP (loss) per diluted share of $(0.09)
-
Cash flows from continuing
operations up significantly to $137 million
Full-Year
Highlights:
-
Net sales increase of 6.7% to
$6.42 billion
-
Adjusted operating income
increased 7.8% to $609 million
-
GAAP earnings per diluted share
from continuing operations was $1.74 versus $0.78
-
Adjusted cash earnings per
diluted share from continuing operations increased 8.5% to
$3.72
-
Cash flows from continuing
operations of $492 million, including previously disclosed
settlement payments of $120 million
"Throughout 2014, we successfully executed our
plan to become a more diversified healthcare services company,"
said Nitin Sahney, Omnicare's President and Chief Executive
Officer. "We are pleased with the success of our initiatives,
which enabled us to deliver a strong year with solid financial
results. Among our many accomplishments for the year, we
recorded revenue growth in our Long-Term Care Group, maintained our
double-digit growth in our Specialty Care Group, generated record
cash flows before settlement payments, and returned more than 50%
of our operating cash flows to shareholders for a third consecutive
year. We look forward to maintaining our positive momentum
and continuing to deliver value to shareholders in 2015 and
beyond."
Fourth-Quarter
Results
Financial results from continuing operations for
the quarter ended December 31, 2014, as compared with the same
prior-year period, were as follows:
-
Net sales were $1.63 billion versus $1.54
billion
-
Gross profit was $354 million versus $360
million
-
Adjusted cash earnings per diluted share from
continuing operations was $0.96 versus $0.87
-
Adjusted EBITDA from continuing operations was
$184 million versus $172 million
Cash flows from continuing operations for the
quarter ended December 31, 2014 were $137 million versus $24
million in the comparable prior-year quarter. The
year-over-year increase was largely attributable to adjusted
earnings growth and improvements in working capital
management.
"Our solid fourth quarter results reflect the
progress we are making to enhance the effectiveness of our
operations while strategically capitalizing on our scale position
in two attractive areas within the healthcare sector," said Mr.
Sahney. "The fourth quarter marked the fourth consecutive
quarter of revenue growth within our Long-Term Care business, and
our Specialty Care business continues to deliver strong results as
our value proposition is clearly resonating with our biopharma
clients. During the period, we also completed a number of key
actions such as the finalization of our new sourcing strategy and
the implementation of additional operating initiatives, which when
combined with the underlying health of our business, position
Omnicare for continued shareholder value creation."
Financial Position
Omnicare concluded the fourth quarter of 2014 with
no borrowings outstanding on its revolving credit facility and $154
million in cash on its balance sheet.
In the fourth quarter, Omnicare repurchased
approximately $75 million of its common stock. As of
December 31, 2014, the Company had $265 million of
availability under its current share repurchase program.
"During the fourth quarter, we increased our
quarterly cash dividend by 10%, marking the fifth consecutive
annual increase," said Rocky Kraft, Omnicare's Chief Financial
Officer. "We also took steps to realign our capital structure
with our long-term growth strategy through debt retirement and new
issuances that provide for increased predictability and flexibility
in our ongoing efforts to redeploy capital for the benefit of our
shareholders."
Full-Year Results
Financial results from continuing operations for
the year ended December 31, 2014, as compared with the same
prior-year period, were as follows:
-
Net sales were $6.42 billion versus $6.01
billion
-
Gross profit was $1.42 billion versus $1.42
billion
-
GAAP earnings per diluted share from continuing
operations was $1.74 versus $0.78
-
Adjusted cash earnings per diluted share from
continuing operations was $3.72 versus $3.43
-
Adjusted EBITDA from continuing operations was
$718 million versus $674 million
Cash flows from continuing operations for the
twelve months ended December 31, 2014 were $492 million versus
$480 million in the comparable prior period, and included
settlement payments of $120 million and $20 million for 2014 and
2013, respectively.
Segment Information
Financial results for the Long-Term Care Group for
the fourth quarter ended December 31, 2014 were as
follows:
-
Net sales of $1,185 million were 1.4% higher
than $1,169 million in the same prior-year period
-
Adjusted operating income of $151 million
decreased (5.7)% from $160 million in the same prior-year
period
Financial results for the Specialty Care Group for
the fourth quarter ended December 31, 2014 were as
follows:
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, and other information relevant to
Omnicare's operations.
Special Items
The results for the fourth-quarters and full-years
ended December 31, 2014 and 2013 include the impact of special
items and cash EPS adjustments as follows:
|
Three months ended
December 31, |
Year ended
December 31, |
|
2014 |
2013 |
2014 |
2013 |
|
After-tax impact |
Per diluted share |
After-tax impact |
Per diluted share |
After-tax impact |
Per diluted share |
After-tax impact |
Per diluted share |
Special Items Adj. |
$89.2M |
$0.85 |
$14.6M |
$0.13 |
$131.0M |
$1.23 |
$204.6M |
$1.87 |
Cash EPS Adj. |
$20.7M |
$0.20 |
$21.0M |
$0.19 |
$80.2M |
$0.75 |
$85.9M |
$0.78 |
All special items and cash EPS adjustments have
been described in further detail in the "Footnotes and Definitions
to Financial Information" section elsewhere herein.
Outlook
For the full-year 2015, Omnicare expects the
following results from continuing operations:
|
2014 Results |
FY2015 Guidance |
% Change |
Revenue |
$6.4B |
$6.5B to $6.7B |
2% to 5% |
Adjusted cash earnings per diluted share (excluding
special items) |
$3.72 |
$4.08 to $4.16 |
10% to 12% |
Cash flows from operations (2015 guidance excludes
settlement payments) |
$492M* |
$525M to $625M |
7% to 27% |
*exclusive of discontinued
operations and after settlement payments of $120 million
"Our double-digit EPS growth expectations are a
reflection of the progress we have made as an organization," said
Mr. Sahney. "With strong underlying trends in our business, a
methodical focus on operating efficiencies, and an opportunity to
expand our reach by further penetrating new markets in the senior
care continuum and by introducing new innovative solutions within
our specialty care business, we believe we are well-positioned for
growth in 2015."
Webcast Today
Omnicare will hold a conference call to discuss
its fourth-quarter and full-year 2014 financial results today,
February 25, 2015, 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.
Upcoming Investor Events
-
Cowen and Company 35th Annual Health Care
Conference on Wednesday, March 4th at 8:00 a.m. ET in Boston,
MA
-
Barclays Global Healthcare Conference on
Wednesday, March 11th at 8:30 a.m. ET in Miami, FL
At these events, Omnicare executives will discuss
the Company's recent financial performance and strategies for
continued growth. Additional details and a link to the live
webcast of each event will be accessible from the Investor
Relations section of Omnicare's website at
http://ir.omnicare.com. Following the live presentations,
archived versions of the webcasts will be available.
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 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 identify, finance and consummate
acquisitions on favorable terms or at all; trends for the continued
growth of the Company's businesses; changes 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
and willingness 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 skilled 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, 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 or specialty pharmacies; government
budgetary pressures and changes, including 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 changes in the proportion of the Company's business
covered by specific contracts; the outcome of pending and future
legal or contractual disputes; 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 that could result in an
impairment of assets, including but not limited to, goodwill and
identifiable intangible assets; the ability to successfully
complete planned divestitures; 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; timing of conversions of
convertible debt securities; access to adequate capital and
financing on acceptable terms; changes in the Company's credit
ratings given by rating agencies; changes in tax laws and
regulations; changes in accounting rules and standards; the impact
of potential cybersecurity risks and/or incidents; costs to comply
with the Company's Corporate Integrity Agreement; and unexpected
costs or business interruptions from information technology
projects. 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
(513) 719-1507
patrick.lee@omnicare.com
Omnicare, Inc. and Subsidiary
Companies
Summary Consolidated Statements of Income (Loss),
GAAP Basis
($000s, except per share amounts)
Unaudited
|
Three months ended |
|
Year ended |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Net sales |
$ |
1,627,938 |
|
|
$ |
1,536,169 |
|
|
$ |
6,417,615 |
|
|
$ |
6,013,398 |
|
Cost
of sales |
1,273,538 |
|
|
1,176,497 |
|
|
4,999,071 |
|
|
4,592,536 |
|
Gross profit |
354,400 |
|
|
359,672 |
|
|
1,418,544 |
|
|
1,420,862 |
|
Selling, general and administrative expenses |
174,884 |
|
|
190,904 |
|
|
724,700 |
|
|
756,180 |
|
Provision for doubtful accounts |
21,898 |
|
|
24,448 |
|
|
84,460 |
|
|
99,561 |
|
Settlement, litigation and other related (credits) charges |
15,351 |
|
|
(2,150 |
) |
|
42,818 |
|
|
167,465 |
|
Other charges |
113,694 |
|
|
2,896 |
|
|
139,253 |
|
|
99,802 |
|
Operating income |
28,573 |
|
|
143,574 |
|
|
427,313 |
|
|
297,854 |
|
Interest expense, net of investment income |
(41,809 |
) |
|
(29,859 |
) |
|
(129,947 |
) |
|
(123,870 |
) |
(Loss)
income from continuing operations before income taxes |
(13,236 |
) |
|
113,715 |
|
|
297,366 |
|
|
173,984 |
|
Income tax provision |
(4,487 |
) |
|
55,088 |
|
|
113,154 |
|
|
89,092 |
|
(Loss)
income from continuing operations |
(8,749 |
) |
|
58,627 |
|
|
184,212 |
|
|
84,892 |
|
Income (loss) from discontinued operations |
2,700 |
|
|
(142,323 |
) |
|
(39,685 |
) |
|
(128,324 |
) |
Net
(loss) income |
(6,049 |
) |
|
(83,696 |
) |
|
144,527 |
|
|
(43,432 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share - Diluted: |
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations |
$ |
(0.09 |
) |
|
$ |
0.54 |
|
|
$ |
1.74 |
|
|
$ |
0.78 |
|
Discontinued Operations |
0.03 |
|
|
(1.31 |
) |
|
(0.37 |
) |
|
(1.17 |
) |
Net (loss) income |
(0.06 |
) |
|
(0.77 |
) |
|
1.36 |
|
|
(0.39 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
97,538 |
|
|
108,980 |
|
|
106,228 |
|
|
109,449 |
|
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
|
December 31,
2014 |
|
December 31,
2013 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
153,799 |
|
|
$ |
356,001 |
|
Accounts receivable, less allowances |
578,761 |
|
|
695,684 |
|
Inventories |
519,584 |
|
|
512,418 |
|
Deferred income tax benefits |
59,200 |
|
|
135,094 |
|
Other current assets |
287,560 |
|
|
265,536 |
|
Current assets of discontinued operations |
- |
|
|
49,995 |
|
Total current assets |
1,598,904 |
|
|
2,014,728 |
|
Properties and equipment, at cost less accumulated
depreciation |
267,753 |
|
|
305,888 |
|
Goodwill |
4,061,806 |
|
|
4,057,456 |
|
Identifiable intangible assets, less accumulated amortization |
98,942 |
|
|
129,974 |
|
Other noncurrent assets |
80,385 |
|
|
96,722 |
|
Noncurrent assets of discontinued operations |
- |
|
|
87,078 |
|
Total noncurrent assets |
4,508,886 |
|
|
4,677,118 |
|
Total
assets |
$ |
6,107,790 |
|
|
$ |
6,691,846 |
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
219,358 |
|
|
$ |
181,022 |
|
Accrued employee compensation |
46,830 |
|
|
50,240 |
|
Current debt |
446,717 |
|
|
527,204 |
|
Other
current liabilities |
154,726 |
|
|
355,845 |
|
Current liabilities of discontinued operations |
- |
|
|
18,846 |
|
Total
current liabilities |
867,631 |
|
|
1,133,157 |
|
Long-term debt, notes and convertible
debentures |
1,517,559 |
|
|
1,418,819 |
|
Deferred income tax liabilities |
936,247 |
|
|
1,012,733 |
|
Other noncurrent liabilities |
45,926 |
|
|
53,835 |
|
Noncurrent liabilities of discontinued operations |
- |
|
|
1,398 |
|
Total noncurrent liabilities |
2,499,732 |
|
|
2,486,785 |
|
Total
liabilities |
3,367,363 |
|
|
3,619,942 |
|
Convertible debt |
151,706 |
|
|
331,101 |
|
Stockholders' equity |
2,588,721 |
|
|
2,740,803 |
|
Total liabilities and stockholders' equity |
$ |
6,107,790 |
|
|
$ |
6,691,846 |
|
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
|
December 31, 2014 |
|
Three months ended |
|
Year ended |
Cash
flows from operating activities: |
|
|
|
|
|
Net (loss) income |
$ |
(6,049 |
) |
|
$ |
144,527 |
|
(Income) loss from discontinued operations |
(2,700 |
) |
|
39,685 |
|
Adjustments to reconcile net income to net cash
flows from operating activities: |
|
|
|
|
|
Depreciation |
15,026 |
|
|
58,036 |
|
Amortization |
16,839 |
|
|
74,258 |
|
Asset
impairment charges |
60,211 |
|
|
60,211 |
|
Disposition of business, net |
- |
|
|
805 |
|
Loss
on debt extinguishment |
60,962 |
|
|
69,381 |
|
Deferred tax provision |
(6,240 |
) |
|
92,700 |
|
Changes in certain assets and liabilities, net of effects from
acquisition and divestiture of businesses: |
|
|
|
|
|
Accounts receivable, net of provision for doubtful
accounts |
42,837 |
|
|
58,685 |
|
Inventories |
(24,808 |
) |
|
(7,001 |
) |
Current and noncurrent assets |
10,736 |
|
|
(10,117 |
) |
Accounts payable |
(6,110 |
) |
|
52,289 |
|
Accrued employee compensation |
(8,801 |
) |
|
(2,412 |
) |
Gale/Silver settlement payments, net |
- |
|
|
(120,000 |
) |
Current and noncurrent liabilities |
(14,730 |
) |
|
(19,320 |
) |
Net
cash flows from operating activities of continuing operations |
137,173 |
|
|
491,727 |
|
Net cash flows used in operating activities of
discontinued operations |
- |
|
|
863 |
|
Net
cash flows from operating activities |
137,173 |
|
|
492,590 |
|
Cash flows from investing activities: |
|
|
|
|
|
Acquisition of businesses, net of cash received |
(1,613 |
) |
|
(1,613 |
) |
Divestiture of businesses, net |
- |
|
|
71,194 |
|
Capital expenditures |
(14,660 |
) |
|
(82,531 |
) |
Marketable securities |
25,395 |
|
|
25,377 |
|
Net
cash flows used in investing activities of continuing
operations |
9,122 |
|
|
12,427 |
|
Net cash flows used in investing activities of
discontinued operations |
- |
|
|
(863 |
) |
Net
cash flows from investing activities |
9,122 |
|
|
11,564 |
|
Cash flows from financing activities: |
|
|
|
|
|
Payments on term loans |
(5,000 |
) |
|
(20,938 |
) |
Proceeds from long-term borrowings and
obligations |
717,500 |
|
|
717,500 |
|
Payments on long-term borrowings and obligations |
(890,724 |
) |
|
(1,067,707 |
) |
Fees paid for financing activities |
(8,913 |
) |
|
(8,913 |
) |
Increase in cash overdraft balance |
3,426 |
|
|
(16,360 |
) |
Payments for Omnicare common stock repurchases |
(75,000 |
) |
|
(235,438 |
) |
Payments for stock awards and exercise of stock options, net of
stock tendered in payment |
(1,958 |
) |
|
(2,251 |
) |
Dividends paid |
(21,879 |
) |
|
(80,298 |
) |
Other |
3,109 |
|
|
8,049 |
|
Net cash flows used in financing activities of
continuing operations |
(279,439 |
) |
|
(706,356 |
) |
Net
cash flows from financing activities of discontinued
operations |
- |
|
|
- |
|
Net cash flows used in financing activities |
(279,439 |
) |
|
(706,356 |
) |
Net
decrease in cash and cash equivalents |
(133,144 |
) |
|
(202,202 |
) |
Less increase in cash and cash equivalents of
discontinued operations |
- |
|
|
- |
|
Decrease in cash and cash equivalents of continuing operations |
(133,144 |
) |
|
(202,202 |
) |
Cash and cash equivalents at beginning of year |
$ |
286,943 |
|
|
$ |
356,001 |
|
Cash
and cash equivalents at end of year |
153,799 |
|
|
153,799 |
|
|
|
|
|
|
|
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 |
|
Fiscal year ended |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Adjusted earnings per share ("EPS") from
continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing
operations |
$ |
(0.09 |
) |
|
$ |
0.54 |
|
|
$ |
1.74 |
|
|
$ |
0.78 |
|
Amount
related to adjusted diluted shares |
0.01 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: (a) |
|
|
|
|
|
|
|
|
|
|
|
Settlement, litigation and other related
charges |
0.09 |
|
|
0.08 |
|
|
0.22 |
|
|
1.11 |
|
Other
charges |
0.66 |
|
|
0.02 |
|
|
0.80 |
|
|
0.59 |
|
Amortization of discount on convertible notes |
0.03 |
|
|
0.04 |
|
|
0.14 |
|
|
0.14 |
|
Debt
redemption costs |
0.07 |
|
|
- |
|
|
0.07 |
|
|
0.03 |
|
Total special items |
0.85 |
|
|
0.13 |
|
|
1.23 |
|
|
1.87 |
|
Cash
EPS Adjustments |
0.20 |
|
|
0.19 |
|
|
0.75 |
|
|
0.78 |
|
Adjusted cash earnings per diluted share from
continuing operations |
$ |
0.96 |
|
|
$ |
0.87 |
|
|
$ |
3.72 |
|
|
$ |
3.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings before interest, income taxes
("EBIT", "Operating income"), depreciation and amortization
("EBITDA") from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
EBIT
from continuing operations |
$ |
28,573 |
|
|
$ |
143,574 |
|
|
427,313 |
|
|
$ |
297,854 |
|
Depreciation and amortization |
31,865 |
|
|
33,433 |
|
|
132,294 |
|
|
132,960 |
|
Amortization of discount on convertible notes |
(5,067 |
) |
|
(6,093 |
) |
|
(23,551 |
) |
|
(24,567 |
) |
EBITDA from continuing operations |
55,371 |
|
|
170,914 |
|
|
536,056 |
|
|
406,247 |
|
Special items (a) |
129,045 |
|
|
746 |
|
|
182,071 |
|
|
267,267 |
|
Adjusted EBITDA from continuing operations |
184,416 |
|
|
171,660 |
|
|
718,127 |
|
|
673,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
to net cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
EBITDA
from continuing operations |
55,371 |
|
|
170,914 |
|
|
536,056 |
|
|
406,247 |
|
(Subtract)/Add: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of investment income and amortization of
discount on convertible notes |
(36,742 |
) |
|
(23,766 |
) |
|
(106,396 |
) |
|
(99,303 |
) |
Income tax provision |
4,487 |
|
|
(55,088 |
) |
|
(113,154 |
) |
|
(89,092 |
) |
Gale/Silver settlement payments, net |
- |
|
|
- |
|
|
(120,000 |
) |
|
- |
|
Asset impairment charge |
60,211 |
|
|
- |
|
|
60,211 |
|
|
- |
|
Loss
on disposition |
- |
|
|
3,183 |
|
|
805 |
|
|
39,245 |
|
Loss on debt extinguishment - net |
60,962 |
|
|
628 |
|
|
69,381 |
|
|
56,280 |
|
Deferred tax provision |
(6,240 |
) |
|
(255 |
) |
|
92,700 |
|
|
61,932 |
|
Changes in certain assets and liabilities, net of
effects from acquisition and
divestitures of businesses |
(876 |
) |
|
(72,088 |
) |
|
72,124 |
|
|
104,205 |
|
Net
cash flows from operating activities of continuing operations |
$ |
137,173 |
|
|
$ |
23,528 |
|
|
$ |
491,727 |
|
|
$ |
479,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted cash flows from from continuing
operations: |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from continuing operations |
|
|
|
|
|
|
$ |
491,727 |
|
|
$ |
479,514 |
|
Settlement payments |
|
|
|
|
|
|
120,000 |
|
|
20,000 |
|
Adjusted cash flows from continuing operations |
|
|
|
|
|
|
$ |
611,727 |
|
|
$ |
499,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment reconciliations -
Long-Term Care Group ("LTC") |
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income - LTC: |
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations |
$ |
71,684 |
|
|
$ |
160,693 |
|
|
$ |
516,086 |
|
|
$ |
420,646 |
|
Special items (a) |
79,615 |
|
|
(265 |
) |
|
116,066 |
|
|
213,415 |
|
Adjusted operating income from continuing
operations - LTC |
$ |
151,299 |
|
|
$ |
160,428 |
|
|
$ |
632,152 |
|
|
$ |
634,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment reconciliations -
Specialty Care Group ("SCG") |
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income - SCG: |
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations |
$ |
39,316 |
|
|
$ |
31,238 |
|
|
$ |
136,373 |
|
|
$ |
113,243 |
|
Special items (a) |
566 |
|
|
- |
|
|
566 |
|
|
- |
|
Adjusted operating income from continuing
operations - SCG |
$ |
39,882 |
|
|
$ |
31,238 |
|
|
$ |
136,939 |
|
|
$ |
113,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 include 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
included Special Items and Cash EPS adjustments as described
below:
|
|
Q4 2014 |
|
YTD 2014 |
|
Q4 2013 |
|
YTD 2013 |
|
|
Pretax |
After Tax (11) |
|
Pretax |
After Tax (11) |
|
Pretax |
After Tax (11) |
|
Pretax |
After Tax (11) |
EBIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement, litigation and other related (credits) charges
(1) |
|
$ |
15,351 |
|
$ |
9,219 |
|
|
$ |
42,818 |
|
$ |
23,559 |
|
|
$ |
(2,150 |
) |
$ |
8,596 |
|
|
$ |
167,465 |
|
$ |
121,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and other related costs (2) |
|
- |
|
- |
|
|
- |
|
- |
|
|
- |
|
- |
|
|
2,300 |
|
1,416 |
|
Disposition of businesses (3) |
|
- |
|
- |
|
|
805 |
|
494 |
|
|
343 |
|
429 |
|
|
39,245 |
|
27,541 |
|
Separation costs (4) |
|
4,053 |
|
2,551 |
|
|
20,975 |
|
12,933 |
|
|
1,924 |
|
1,194 |
|
|
6,760 |
|
4,156 |
|
Restructuring (5) |
|
566 |
|
346 |
|
|
566 |
|
346 |
|
|
- |
|
- |
|
|
- |
|
- |
|
Loss on debt repurchase (6) |
|
48,864 |
|
29,860 |
|
|
56,696 |
|
34,665 |
|
|
629 |
|
553 |
|
|
51,497 |
|
31,691 |
|
Impairment charge (7) |
|
60,211 |
|
36,813 |
|
|
60,211 |
|
36,813 |
|
|
- |
|
- |
|
|
- |
|
- |
|
Subtotal - Other charges |
|
113,694 |
|
69,570 |
|
|
139,253 |
|
85,251 |
|
|
2,896 |
|
2,176 |
|
|
99,802 |
|
64,804 |
|
Subtotal - EBIT special items |
|
129,045 |
|
78,789 |
|
|
182,071 |
|
108,810 |
|
|
746 |
|
10,772 |
|
|
267,267 |
|
186,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of discount on convertible notes
(8) |
|
5,067 |
|
3,060 |
|
|
23,551 |
|
14,400 |
|
|
6,093 |
|
3,822 |
|
|
24,567 |
|
15,134 |
|
Debt
redemption costs (6) |
|
12,095 |
|
7,392 |
|
|
12,742 |
|
7,789 |
|
|
- |
|
- |
|
|
4,784 |
|
2,929 |
|
Subtotal - Interest expense special items |
|
17,162 |
|
10,452 |
|
|
36,293 |
|
22,189 |
|
|
6,093 |
|
3,822 |
|
|
29,351 |
|
18,063 |
|
Subtotal - Special Items |
|
146,207 |
|
89,241 |
|
|
218,364 |
|
130,999 |
|
|
6,839 |
|
14,594 |
|
|
296,618 |
|
204,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash EPS Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
7,700 |
|
4,459 |
|
|
31,249 |
|
18,906 |
|
|
7,933 |
|
4,969 |
|
|
32,987 |
|
20,293 |
|
Goodwill amortization tax deduction (9) |
|
|
|
7,832 |
|
|
|
|
28,938 |
|
|
- |
|
8,492 |
|
|
- |
|
36,529 |
|
Convertible debt tax deduction (10) |
|
|
|
8,398 |
|
|
|
|
32,319 |
|
|
- |
|
7,557 |
|
|
- |
|
29,038 |
|
Subtotal - Cash EPS items |
|
7,700 |
|
20,689 |
|
|
31,249 |
|
80,163 |
|
|
7,933 |
|
21,018 |
|
|
32,987 |
|
85,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand
Total - Special items |
|
$ |
153,907 |
|
$ |
109,930 |
|
|
$ |
249,613 |
|
$ |
211,162 |
|
|
$ |
14,772 |
|
$ |
35,612 |
|
|
$ |
329,605 |
|
$ |
290,483 |
|
(1)
Operating income includes settlement, litigation and other related
(credits) charges for resolution of certain large customer
disputes, regulatory matters with various states and regulatory
agencies, qui tam lawsuits 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
overpayments 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.
The year ended December 31, 2013
include a settlement charge of $120 million, plus attorneys' fees
related to an agreement in principle for a voluntary civil
settlement dismissing a qui tam civil suit filed in 2010.
(2)
Operating income (loss) includes acquisition and other related
costs primarily related to professional fees and acquisition
related restructuring costs for acquisitions.
(3) In
2013, the Company completed the disposition of certain assets,
primarily in its medical supply services business, which was not
considered significant to the operations of Omnicare.
(4)
Operating income includes separation related costs and accelerated
stock-based compensation for certain former employees.
(5) Operating income
includes restructuring and other related charges primarily related
to lease termination costs.
(6)
Operating income and interest expense includes charges for debt
redemption losses and costs related to the Company's previously
announced refinancing transactions.
(7) In the
quarter ended December 31, 2014, a loss was recorded related to the
abandonment of the implementation of new pharmacy dispensing
systems.
(8) The Company recorded
non-cash interest expense from the amortization of debt discount on
its convertible notes.
(9) The tax benefit of
being able to deduct goodwill amortization.
(10) The tax benefit of being able to deduct
higher interest expense on our convertible debt than what is
actually paid.
(11) The tax effect was calculated by multiplying
the tax-deductible pretax amounts by the appropriate effective tax
rate.
Discontinued
Operations:
During the fourth quarter of 2013,
the Company's end-of-life hospice pharmacy business ("Hospice") as
well as certain retail operations ("Retail") qualified for
discontinued operations treatment. Each of these businesses
was disposed of in 2014. As such, the results of continuing
operations for all periods presented have been revised to reflect
the results of Hospice and Retail as discontinued operations,
including certain expenses of the Company related to the
classification as discontinued operations.
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Omnicare via Globenewswire
HUG#1896945