Omnicare Reports Second-Quarter 2012 Financial Results; Company Raises Full-Year 2012 Guidance
(Thomson Reuters ONE) -
CINCINNATI, July 25, 2012 - Omnicare, Inc. (NYSE:OCR) reported today financial
results for its second quarter ended June 30, 2012.
Year-Over-Year Highlights:
* Gross profit increase of 9.2% to $367.3 million; 230 basis-point expansion
in gross margin rate
* Adjusted cash earnings per diluted share from continuing operations 20.3%
higher to $0.83; GAAP earnings per diluted share of $0.17
* Capital returned to shareholders through dividends and share repurchases
increased 43.4% to $65.7 million
"We are pleased to report another quarter of double-digit adjusted earnings
growth," said John L. Workman, Omnicare's Interim Chief Executive Officer. "Our
results reflect the ongoing, positive effect of generic drug efficiencies as
well as continued acceleration in our Specialty Care Group. While our strong
quarterly results demonstrate the progress we have made as an organization, we
believe we have opportunity to further leverage our platform. Looking ahead, we
are committed to increasing utilization of our technology offering and clinical
programs through a renewed focus on operational excellence. With this focus, we
believe we will continue to generate attractive returns for shareholders and
customers alike."
Second-Quarter Results
Financial results from continuing operations for the quarter ended June
30, 2012, as compared with the same prior-year period, were as follows:
* Net sales was $1,536.0 million versus $1,555.9 million
* Gross profit was $367.3 million as compared with $336.4 million
* GAAP income from continuing operations per diluted share was $0.17 versus
$0.32
* Adjusted cash earnings per diluted share from continuing operations (see
"per share" discussion below and attached supplemental information) was
$0.83 versus $0.69
* Adjusted EBITDA from continuing operations was $170.3 million versus $146.3
million
Cash flows from continuing operations for the quarter ended June 30, 2012 were
$120.2 million versus $136.9 million in the comparable prior-year quarter.
Included in the second quarter of 2012 was a payment of $50.0 million on a
previously disclosed settlement with the Drug Enforcement Administration.
Included in the second quarter of 2011 was a $23.3 million refund for federal
tax overpayments.
"Our second-quarter results were driven by solid performances from both of our
divisions," said Nitin Sahney, Omnicare's Chief Operating Officer. "Within our
Long-Term Care Group, seasonably weaker utilization was more than offset by the
continued benefit from generic drug introductions as well as improved operating
efficiencies. Our Specialty Care Group was similarly efficient, with strong
revenue growth again supported by a 31 basis-point adjusted operating margin
improvement."
Financial Position
Omnicare concluded the second quarter of 2012 with no borrowings outstanding on
its revolving credit facility and $567.4 million in cash on its balance sheet.
With respect to its share repurchase program, Omnicare repurchased approximately
1.8 million shares of common stock during the quarter and paid an aggregate
amount of $58 million. As of June 30, 2012, the Company had approximately $179
million of availability under its current share repurchase authorization.
"We continue to demonstrate a high level of cash flow efficiency," said Mr.
Workman. "Our strong second-quarter cash flows enabled us to return
approximately 55% of operating cash flows to shareholders through share
repurchases and dividends. We will continue to evaluate our cash deployment
levels to ensure they remain disciplined yet well aligned with enhancing
shareholder value."
Six-Month Results
Financial results from continuing operations for the six months ended June
30, 2012, as compared with the same prior-year period, were as follows:
* Net sales were $3,129.1 million as compared with $3,081.5 million
* Gross profit was $735.4 million as compared with $671.4 million
* GAAP income from continuing operations per share was $0.65 as compared with
$0.74
* Adjusted cash earnings per diluted share from continuing operations was
$1.64 as compared with $1.38
EBITDA from continuing operations for the first six months of 2012, including
the impact of special items and accounting changes, was $245.9 million versus
$262.5 million in the comparable prior-year period. Excluding the special
items, adjusted EBITDA from continuing operations in the first six months of
2012 was $340.0 million as compared with $292.5 million in the first six months
of 2011.
Operating cash flow from continuing operations for the first six months of 2012
totaled $220.6 million versus $280.9 million in the comparable prior-year
period.
To facilitate comparisons and to enhance the understanding of core operating
performance, discussions in this news release include financial measures that
are adjusted from the comparable amounts under GAAP to exclude the impact of the
special items discussed elsewhere herein, and to present results on a continuing
operations basis. For a detailed presentation of reconciling items and related
definitions and components, please refer to the attached schedules or to
reconciliation schedules posted at the Investor Relations section of Omnicare's
website at http://ir.omnicare.com. Additionally, the Company will make
supplemental slides available in the same section on its website today that will
include the number of scripts dispensed, beds served, and other information
relevant to Omnicare's operations.
Segment Information
Financial results for the Long-Term Care Group for the second quarter ended June
30, 2012 were as follows:
* Net sales of $1,202.8 million were 6.7% lower than $1,289.4 million in the
same prior-year period
* Adjusted operating income from continuing operations of $150.8 million
increased 16.1% from $129.9 million in the same prior-year period
Financial results for the Specialty Care Group for the second quarter ended June
30, 2012 were as follows:
* Net sales of $330.1 million were 25.7% higher than $262.7 million in the
same prior-year period
* Adjusted operating income from continuing operations of $31.9 million
increased 30.2% from $24.5 million in the same prior-year period
Special Items
The results for the second quarter of 2012 and 2011 include the impact of
special items totaling approximately $85.3 million pretax ($52.4 million
aftertax, or approximately $0.46 per diluted share) and $28.1 million pretax
($21.3 million aftertax, or approximately $0.19 per diluted share),
respectively.
The results for the second quarter of 2012 and 2011 include the impact of cash-
based earnings adjustments totaling approximately $23.2 million aftertax, or
approximately $0.20 per diluted share, and $21.7 million aftertax, or
approximately $0.19 per diluted share, respectively.
The special items and cash-based earnings adjustments have been described in
further detail in the "Footnotes and Definitions to Financial Information"
section elsewhere herein.
Outlook
Based on its solid results in the first half of 2012, Omnicare now expects the
following for the full-year 2012:
+------------------------------------------------------------------------------+
| Previous Guidance Current Guidance|
+------------------------------------------------------------------------------+
|Revenue $6.1B to $6.2B $6.1B to $6.2B |
| |
|Adjusted cash earnings per diluted share |
|(excluding special items) $3.10 to $3.20 $3.22 to $3.28 |
| |
|Cash flows from operations |
|(excluding settlement payments) $400M to $500M $425M to $525M |
+------------------------------------------------------------------------------+
Webcast Today
Omnicare will hold a conference call to discuss its second-quarter 2012
financial results today, Wednesday, July 25, at 9:00 a.m. ET. A live webcast of
the conference call and supplemental slides will be accessible from the Investor
Relations section of Omnicare's website at http://ir.omnicare.com. An archived
replay will be made available on the website following the conclusion of the
conference call.
About Omnicare
Omnicare, Inc., a Fortune 400 company based in Cincinnati, Ohio, provides
comprehensive pharmaceutical services to patients and providers across North
America. As the market-leader in professional pharmacy, related consulting and
data management services for skilled nursing, assisted living and other chronic
care institutions, Omnicare leverages its unparalleled clinical insight into the
geriatric market along with some of the industry's most innovative technological
capabilities to the benefit of its long-term care customers. Omnicare also
provides key commercialization services for the bio-pharmaceutical industry and
end-of-life disease management through its Specialty Care Group. For more
information, visit www.omnicare.com.
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 international economic and political
conditions and currency fluctuations between the U.S. dollar and other
currencies; 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
(513) 719-1507
patrick.lee(at)omnicare.com
Omnicare, Inc. and Subsidiary Companies
Summary Consolidated Statements of Income, GAAP Basis
($000s, except per share amounts)
Unaudited
Three months ended Six months ended
--------------------------------------------------------------
June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011
--------------------------------------------------------------
Net sales $ 1,536,027 $ 1,555,906 $ 3,129,095 $ 3,081,477
Cost of sales 1,168,681 1,219,513 2,393,649 2,410,124
--------------- --------------- --------------- --------------
Gross profit 367,346 336,393 735,446 671,353
Selling, general
and
administrative
expenses 201,878 192,474 402,002 382,641
Provision for
doubtful
accounts 24,078 24,357 48,509 48,887
Settlement,
litigation and
other related
charges 26,093 19,816 33,296 25,829
Other charges 49,209 2,332 60,721 4,221
--------------- --------------- --------------- --------------
Operating income 66,088 97,414 190,918 209,775
Interest
expense, net of
investment
income (35,574 ) (33,730 ) (66,408 ) (68,112 )
--------------- --------------- --------------- --------------
Income from
continuing
operations
before income
taxes 30,514 63,684 124,510 141,663
Income tax
provision 11,822 27,403 50,079 56,227
--------------- --------------- --------------- --------------
Income from
continuing
operations 18,692 36,281 74,431 85,436
Loss from
discontinued
operations - (37,728 ) - (57,579 )
--------------- --------------- --------------- --------------
Net income
(loss) $ 18,692 $ (1,447 ) $ 74,431 $ 27,857
--------------- --------------- --------------- --------------
Earnings (loss)
per common share
- Diluted:
Continuing
operations $ 0.17 $ 0.32 $ 0.65 $ 0.74
Discontinued
operations - (0.33 ) - (0.50 )
Net income
(loss) $ 0.17 $ (0.01 ) $ 0.65 $ 0.24
--------------- --------------- --------------- --------------
Weighted average
number of common
shares
outstanding:
Diluted 113,472 114,701 114,987 115,081
--------------- --------------- --------------- --------------
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
June 30, December 31,
2012 2011
--------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 564,479 $ 580,262
Restricted cash 2,922 2,336
Accounts receivable, less allowances 931,411 931,314
Inventories 350,896 419,378
Deferred income tax benefits 152,750 153,444
Other current assets 209,064 210,637
--------------- --------------
Total current assets 2,211,522 2,297,371
Properties and equipment, at cost less
accumulated depreciation
256,964 225,257
Goodwill 4,243,356 4,250,579
Identifiable intangible assets, less accumulated
amortization 213,530 235,270
Other noncurrent assets 186,294 184,633
--------------- --------------
Total noncurrent assets 4,900,144 4,895,739
--------------- --------------
Total assets $ 7,111,666 $ 7,193,110
--------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 210,773 $ 273,768
Accrued employee compensation 66,864 61,019
Current debt 27,300 26,447
Other current liabilities 177,530 178,833
--------------- --------------
Total current liabilities 482,467 540,067
Long-term debt, notes and convertible debentures 2,024,169 1,968,274
Deferred income tax liabilities 872,827 838,857
Other noncurrent liabilities 45,117 50,476
--------------- --------------
Total noncurrent liabilities 2,942,113 2,857,607
--------------- --------------
Total liabilities 3,424,580 3,397,674
--------------- --------------
Stockholders' equity 3,687,086 3,795,436
--------------- --------------
Total liabilities and stockholders' equity $ 7,111,666 $ 7,193,110
--------------- --------------
The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.
Omnicare, Inc and Subsidiary Companies
Condensed Consolidated Statements of Cash Flows, GAAP Basis
(000s)
Unaudited
June 30, 2012
------------------------------
Three months Six months
ended ended
---------------- -------------
Cash flows from operating activities:
Net income $ 18,692 $ 74,431
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation 12,423 24,478
Amortization 22,420 42,826
Debt redemption costs, net 35,092 35,092
Other operating activities 65,185 35,261
Changes in certain assets and liabilities, net
of effects from acquisition and divestiture of
businesses (33,614 ) 8,527
---------------- -------------
Net cash flows from operating activities 120,198 220,615
Cash flows from investing activities:
Acquisition of businesses, net of cash received (5 ) (568 )
Capital expenditures (26,196 ) (46,435 )
Other (1,098 ) (586 )
---------------- -------------
Net cash flows used in investing activities (27,299 ) (47,589 )
Cash flows from financing activities:
Payments on term loans (5,625 ) (11,250 )
Payments on long-term borrowings and obligations (25,084 ) (26,046 )
Capped call transaction (48,126 ) (48,126 )
Payments for Omnicare common stock repurchases (57,979 ) (80,307 )
Dividends paid (7,696 ) (15,521 )
Other (6,087 ) (7,559 )
---------------- -------------
Net cash flows used in financing activities (150,597 ) (188,809 )
---------------- -------------
Net decrease in cash and cash equivalents (57,698 ) (15,783 )
Cash and cash equivalents at beginning of period 622,177 580,262
---------------- -------------
Cash and cash equivalents at end of period $ 564,479 $ 564,479
---------------- -------------
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 Six months ended
--------------------------- --------------------------
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
------------- ------------- ------------- ------------
Adjusted earnings per
share ("EPS") from
continuing operations:
Diluted earnings per
share from continuing
operations $ 0.17 $ 0.32 $ 0.65 $ 0.74
Special Items: (a)
Settlement, litigation
and other related
charges 0.14 0.14 0.18 0.17
Other charges 0.27 0.01 0.34 0.02
Amortization of discount
on convertible notes 0.03 0.03 0.07 0.06
Debt redemption costs 0.02 - 0.02 0.01
------------- ------------- ------------- ------------
Total Special Items 0.46 0.19 0.61 0.27
Cash EPS Adjustments 0.20 0.19 0.38 0.37
Adjusted cash earnings
per diluted share from
continuing operations $ 0.83 $ 0.69 $ 1.64 $ 1.38
------------- ------------- ------------- ------------
Adjusted earnings before
interest, income taxes
("EBIT"), depreciation
and amortization
("EBITDA") from
continuing operations:
EBIT from continuing
operations $ 66,088 $ 97,414 190,918 $ 209,775
Depreciation and
amortization 34,843 32,755 67,304 64,565
Amortization of discount
on convertible notes (5,929 ) (5,989 ) (12,279 ) (11,862 )
------------- ------------- ------------- ------------
EBITDA from continuing
operations 95,002 124,180 245,943 262,478
Special items (a) 75,302 22,148 94,017 30,050
------------- ------------- ------------- ------------
Adjusted EBITDA from
continuing operations 170,304 146,328 339,960 292,528
EBITDA from continuing
operations to net cash
flows from operating
activities:
EBITDA from continuing
operations 95,002 124,180 245,943 262,478
(Subtract)/Add:
Interest expense, net of
investment income and
amortization of discount
on convertible notes (29,645 ) (27,741 ) (54,129 ) (56,250 )
Income tax provision (11,822 ) (27,403 ) (50,079 ) (56,227 )
Other operating
activities (including
debt redemption costs) 100,277 17,527 70,353 (39,427 )
Changes in certain
assets and liabilities,
net of effects from
acquisition and
divestitures of
businesses (33,614 ) 50,383 8,527 170,301
------------- ------------- ------------- ------------
Net cash flows from
operating activities of
continuing operations $ 120,198 $ 136,946 $ 220,615 $ 280,875
------------- ------------- ------------- ------------
Segment Reconciliations
- Long-Term Care Group
("LTC")
Adjusted Operating
Income - LTC:
Operating income from
continuing operations 122,801 107,781 260,780 230,271
Special items (a) 28,010 22,148 44,225 30,050
------------- ------------- ------------- ------------
Adjusted operating
income from continuing
operations - LTC 150,811 129,929 305,005 260,321
Segment Reconciliations
- Specialty Care Group
("SCG")
Adjusted Operating
Income - SCG:
Operating income from
continuing operations 31,671 24,535 61,820 45,830
Special items (a) 200 - 200 -
------------- ------------- ------------- ------------
Adjusted operating
income from continuing
operations - SCG 31,871 24,535 62,020 45,830
The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.
Omnicare, Inc. and Subsidiary Companies
Footnotes and Definitions to Financial Information
(000s, except per share amounts and unless otherwise stated)
Unaudited
Footnotes:
Non-GAAP Information:
Omnicare, Inc. ("Omnicare" or the "Company") management believes that presenting
certain non-GAAP financial measures, which exclude items not considered part of
the core operating results of the Company and certain non-cash charges and also
includes certain tax deduction amounts ("Special Items"), enhances investors'
understanding of how Omnicare management assesses the performance of the
Company's business. Omnicare management uses non-GAAP measures for budgeting
purposes, measuring actual results, allocating resources and in determining
employee incentive compensation. Omnicare's method of calculating non-GAAP
financial results may differ from those used by other companies and, therefore,
comparability may be limited.
a. Financial results from continuing operations included Special Items as
described below:
Q2 2012 YTD 2012 Q2 2011 YTD 2011
----------------------- ------------------------- ----------------------- ----------------------
After Tax After Tax After Tax After Tax
Pretax ((9)) Pretax ((9)) Pretax ((9)) Pretax ((9))
----------------------- ------------------------- ----------------------- ----------------------
EBIT:
Settlement,
litigation
and other
related
charges(
(1)) $ 26,093 $ 16,014 $ 33,296 $ 20,444 $ 19,816 $ 16,124 $ 25,829 $ 19,879
Other
charges
Acquisition
and other
related
costs ((2)) 1,117 683 4,226 2,595 2,332 1,455 4,221 2,634
Goodwill
impairment
((3)) - - 5,903 5,903 - - - -
Separation
costs ((4)) 13,000 7,980 15,500 9,517 - - - -
Loss on debt
repurchase(
(5)) 35,092 21,546 35,092 21,546 - - - -
----------------------- ------------------------- ----------------------- ----------------------
Subtotal -
Other
charges 49,209 30,209 60,721 39,561 2,332 1,455 4,221 2,634
----------------------- ------------------------- ----------------------- ----------------------
Subtotal -
EBIT Special
Items 75,302 46,223 94,017 60,005 22,148 17,579 30,050 22,513
Interest
Expense:
Amortization
of discount
on
convertible
notes ((6)) 5,929 3,633 12,279 7,539 5,989 3,736 11,862 7,403
Debt
redemption
costs ((5)) 4,093 2,513 4,093 2,513 - - 1,079 674
----------------------- ------------------------- ----------------------- ----------------------
Subtotal -
Interest
Expense
Special
Items 10,022 6,146 16,372 10,052 5,989 3,736 12,941 8,077
----------------------- ------------------------- ----------------------- ----------------------
Subtotal -
Special
Items 85,324 52,369 110,389 70,057 28,137 21,315 42,991 30,590
Cash EPS
Items:
Amortization
of
intangibles 10,752 6,591 21,505 13,204 9,641 6,016 18,841 11,757
Goodwill
amortization
tax
deduction
((7)) - 10,915 - 21,774 - 12,689 - 25,378
Convertible
debt tax
deduction(
(8)) - 5,650 - 9,087 - 2,972 - 5,944
----------------------- ------------------------- ----------------------- ----------------------
Subtotal -
Cash EPS
Items 10,752 23,156 21,505 44,065 9,641 21,677 18,841 43,079
----------------------- ------------------------- ----------------------- ----------------------
Grand Total
- Special
Items $ 96,076 $ 75,525 $ 131,894 $ 114,122 $ 37,778 $ 42,992 $ 61,832 $ 73,669
----------------------- ------------------------- ----------------------- ----------------------
1. Operating income includes settlement, litigation and other related charges
for resolution of certain regulatory matters with various states and
regulatory agencies, and a qui tam lawsuit, certain large customer disputes
and purported class and derivative actions against the Company.
Additionally, Omnicare has made, and will continue to make, disclosures to
the applicable governmental agencies of amounts, if any, determined to
represent over-payments from the respective programs and, where applicable,
those amounts, as well as any amounts relating to certain inspections,
audits, inquiries and investigations activity are included in the pretax
special item reflected in the table.
2. Operating income includes acquisition and other related costs primarily
related to professional fees and acquisition related restructuring costs for
acquisitions.
3. On April 2, 2012, Omnicare signed a letter of intent ("LOI") with a third
party to sell the Company's Canadian Pharmacy, which expired in the second
quarter. On June 8, 2012, the Company entered into a substantially similar
LOI with a new third party. In the six months ended June 30, 2012, the
Company recorded an impairment loss to reduce the carrying value of the
Canadian Pharmacy to fair value based on the terms of the LOI.
4. Operating income includes separation related costs for certain former
executives, including the former Chief Executive Officer who resigned on
June 10, 2012.
5. Operating income and interest expense includes charges for debt redemption
losses and costs related to the Company's previously announced refinancing
transactions.
6. The Company recorded non-cash interest expense from the amortization of debt
discount on its convertible notes.
7. The tax benefit of being able to deduct goodwill amortization.
8. The tax benefit of being able to deduct higher interest expense on our
convertible debt than what is actually paid.
9. The tax effect was calculated by multiplying the tax-deductible pretax
amounts by the appropriate effective tax rate.
Discontinued Operations:
In 2009, the Company commenced activities to divest certain home healthcare and
related ancillary businesses ("the Disposal Group") that are non-strategic in
nature. Also, in connection with the reallocation of resources started in the
second half of 2010 and the previously disclosed unfavorable market conditions
experienced by its Contract Research Services organization ("CRO Services")
business, the Company committed to a plan to divest of its CRO Services business
in the first quarter of 2011 and completed the divestiture in April 2011. Also,
in the second quarter of 2011, the Company divested its Tidewater Group
Purchasing Organization ("Tidewater"). The Company determined that the CRO
Services and Tidewater businesses were no longer good strategic fits within the
Company's portfolio of assets. In the fourth quarter of 2011, the Company
divested the remaining durable medical equipment ("DME") portion of the Disposal
Group. In connection with these activities, Omnicare recorded an impairment
loss in discontinued operations in the six months ended June 30, 2011 to reduce
the carrying value of the CRO Services and Tidewater operations to fair value
based on the final terms of the divestiture.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Omnicare via Thomson Reuters ONE
[HUG#1629011]
Unternehmensinformation / Kurzprofil:
Datum: 25.07.2012 - 13:01 Uhr
Sprache: Deutsch
News-ID 168596
Anzahl Zeichen: 42437
contact information:
Town:
Covington, KY
Kategorie:
Business News
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