Omnicare Reports Second-Quarter 2013 Financial Results; Company Raises Full-Year 2013 Guidance
(Thomson Reuters ONE) -
CINCINNATI, July 24, 2013 - Omnicare, Inc. (NYSE:OCR) reported today financial
results for its second quarter ended June 30, 2013.
Second-Quarter Highlights:
* Gross profit of $378 million; 19 basis-point gross margin rate increase
* Adjusted cash earnings per diluted share 8.4% higher to $0.90; GAAP earnings
per diluted share of $0.48
* Cash flows from operations of $154 million
"We are pleased to have continued our momentum into the second quarter," said
John L. Workman, Omnicare's Chief Executive Officer. "Our second-quarter
financial results reflect the solid performance of all of our core businesses.
Our Long-Term Care Group further reduced its cost position through the
increased penetration of low-cost generic drugs, while our Specialty Care Group
generated another quarter of strong double-digit revenue growth, driven
primarily by our specialty pharmacy platform."
Second-Quarter Results
Financial results for the quarter ended June 30, 2013, as compared with the same
prior-year period, were as follows:
* Net sales were $1,570 million versus $1,536 million
* Gross profit was $378 million as compared with $367 million
* GAAP earnings per diluted share was $0.48 versus $0.17
* Adjusted cash earnings per diluted share (see "per share" discussion below
and attached supplemental information) was $0.90 versus $0.83
* Adjusted EBITDA was $179 million versus $170 million
Cash flows from operations for the quarter ended June 30, 2013 were $154 million
versus $120 million in the comparable prior-year quarter.
"During the second quarter, we continued to execute well on our operating plan,"
said Nitin Sahney, Omnicare's President and Chief Operating Officer. "For the
first time in six quarters, we generated net organic bed growth in our Long-Term
Care Group - a trend we believe will be sustainable. In addition, we converted
several important wins in a range of therapeutic categories within our Specialty
Care Group. We believe these key operational advancements reinforce Omnicare's
efforts to build upon a foundation that will enable us to better leverage our
growth platforms."
Financial Position
Omnicare concluded the second quarter of 2013 with no borrowings outstanding on
its revolving credit facility and $535 million in cash on its balance sheet.
As of June 30, 2013, the Company had approximately $120 million of availability
under its current share repurchase authorization. In the second quarter,
Omnicare entered into an Accelerated Share Repurchase (ASR) agreement to
repurchase up to $100 million in shares of the company's common stock. The ASR
is expected to reach final settlement during the third quarter of 2013.
"Our second quarter represented another period of strong cash flow generation,"
said Rocky Kraft, Omnicare's Chief Financial Officer. "During the first half of
2013, we increased the amount we returned to stockholders through dividends and
share repurchases over the same prior year period, all while improving our
overall financial position. We will continue to allocate our cash flows in a
manner that we believe is most advantageous to our stockholders."
Year-to-Date Results
Financial results for the six months ended June 30, 2013, as compared with the
same prior-year period, were as follows:
* Net sales were $3.1 billion versus $3.1 billion
* Gross profit was $749 million as compared with $735 million
* GAAP earnings per diluted share was $0.98 versus $0.65
* Adjusted cash earnings per diluted share (see "per share" discussion below
and attached supplemental information) was $1.80 versus $1.64
* Adjusted EBITDA was $351 million versus $340 million
Cash flows from operations for the six months ended June 30, 2013 were $263
million versus $221 million in the comparable prior period.
To facilitate comparisons and to enhance the understanding of core operating
performance, discussions in this news release include financial measures that
are adjusted from the comparable amounts under GAAP to exclude the impact of the
special items discussed elsewhere herein, and to present results on a continuing
operations basis. For a detailed presentation of reconciling items and related
definitions and components, please refer to the attached schedules or to
reconciliation schedules posted at the Investor Relations section of Omnicare's
website at http://ir.omnicare.com. Additionally, the Company will make
supplemental slides available in the same section on its website today that will
include the number of scripts dispensed, beds served, and other information
relevant to Omnicare's operations.
Segment Information
Beginning in the second quarter of 2013, the Company concluded that the
operations of its hospice pharmacy business were better aligned with the
operations of the other businesses in Long-Term Care, and began to review and
manage the operations of this business as part of the Long-Term Care Group. All
prior period segment information has been recast to reflect the new segment
reporting.
Financial results for the Long-Term Care Group for the second quarter ended June
30, 2013 were as follows:
* Net sales of $1,222 million were 2.6% lower than $1,255 million in the same
prior-year period
* Adjusted operating income of $165 million increased 4.4% from $158 million
in the same prior-year period
Financial results for the Specialty Care Group for the second quarter ended June
30, 2013 were as follows:
* Net sales of $347 million were 25% higher than $278 million in the same
prior-year period
* Adjusted operating income of $30 million increased 21.6% from $25 million in
the same prior-year period
Special Items
The results for the second quarter and six months ended June 30, 2013 and 2012
include the impact of special items and cash EPS adjustments as follows:
+--------------------------------------------+---------------------------------+
| Three months ended | Six Months Ended |
| | |
| June 30, 2013 June 30, 2012 | June 30, 2013 June 30, 2012 |
| | |
| After- Per After- Per |After- Per After- Per |
| tax diluted tax diluted | tax diluted tax diluted |
| impact share impact share |impact share impact share |
+--------------------------------------------+---------------------------------+
|Special | |
|Items | |
|Adj. $25.2M $0.23 $52.4M $0.46 |$45.3M $0.42 $70.1M $0.61 |
| | |
|Cash EPS | |
|Adj. $21.8M $0.20 $23.2M $0.20 |$43.8M $0.40 $44.1M $0.38 |
+--------------------------------------------+---------------------------------+
In the second quarter of 2013, the Company completed the disposition of certain
assets in its Medical Supply Services business, which was not considered
significant to the operations of Omnicare. The company recorded a charge on the
disposition of this business of $28.8 million in the three and six months ended
June 30, 2013.
The special items and cash EPS adjustments have been described in further detail
in the "Footnotes and Definitions to Financial Information" section elsewhere
herein.
Outlook
Based on its solid results for the first six months of 2013, Omnicare now
expects the following for the full year 2013:
+------------------------------------------------------------------------------+
| Previous Guidance Current Guidance|
+------------------------------------------------------------------------------+
|Revenue $6.1B to $6.2B $6.1B to $6.3B |
| |
|Adjusted cash earnings per diluted share |
|(excluding special items) $3.47 to $3.57 $3.56 to $3.64 |
| |
|Cash flows from operations $450M to $500M $475M to $525M |
+------------------------------------------------------------------------------+
Webcast Today
Omnicare will hold a conference call to discuss its second quarter 2013
financial results today, Wednesday, July 24, at 9:00 a.m. ET. A live webcast of
the conference call and supplemental slides will be accessible from the Investor
Relations section of Omnicare's website at http://ir.omnicare.com. An archived
replay will be made available on the website following the conclusion of the
conference call.
About Omnicare
Omnicare, Inc., a Fortune 500 company based in Cincinnati, Ohio, provides
comprehensive pharmaceutical services to patients and providers across the
United States. As the market-leader in professional pharmacy, related
consulting and data management services for skilled nursing, assisted living and
other chronic care institutions, Omnicare leverages its unparalleled clinical
insight into the geriatric market along with some of the industry's most
innovative technological capabilities to the benefit of its long-term care
customers. Omnicare also provides key commercialization services for the bio-
pharmaceutical industry and end-of-life disease management through its Specialty
Care Group. For more information, visit www.omnicare.com.
Forward-looking Statements
In addition to historical information, this report contains certain statements
that constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
include, but are not limited to, all statements regarding the intent, belief or
current expectations regarding the matters discussed or incorporated by
reference in this document (including statements as to "beliefs,"
"expectations," "anticipations," "intentions" or similar words) and all
statements which are not statements of historical fact. Such forward-looking
statements, together with other statements that are not historical, are based on
management's current expectations and involve known and unknown risks,
uncertainties, contingencies and other factors that could cause results,
performance or achievements to differ materially from those stated. The most
significant of these risks and uncertainties are described in the Company's Form
10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange
Commission and include, but are not limited to: overall economic, financial,
political and business conditions; trends in the long-term healthcare and
pharmaceutical industries; the ability to attract new clients and service
contracts and retain existing clients and service contracts; the ability to
consummate pending acquisitions on favorable terms or at all; trends for the
continued growth of the Company's businesses; trends in drug pricing; delays and
reductions in reimbursement by the government and other payors to customers and
to the Company; the overall financial condition of the Company's customers and
the ability of the Company to assess and react to such financial condition of
its customers; the ability of vendors and business partners to continue to
provide products and services to the Company; the successful integration of
acquired companies and realization of contemplated synergies; the continued
availability of suitable acquisition candidates; the ability to attract and
retain needed management; competition for qualified staff in the healthcare
industry; variations in demand for the Company's products and services;
variations in costs or expenses; the ability to implement productivity,
consolidation and cost reduction efforts and to realize anticipated benefits;
the potential impact of legislation, government regulations, and other
government action and/or executive orders, including those relating to Medicare
Part D, including its implementing regulations and any subregulatory guidance,
reimbursement and drug pricing policies and changes in the interpretation and
application of such policies, including changes in calculation of average
wholesale price; discontinuation of reporting average wholesale price, and/or
implementation of new pricing benchmarks; legislative and regulatory changes
impacting long term care pharmacies; government budgetary pressures and shifting
priorities; federal and state budget shortfalls; efforts by payors to control
costs; changes to or termination of the Company's contracts with pharmaceutical
benefit managers, Medicare Part D Plan sponsors and/or commercial health
insurers or to the proportion of the Company's business covered by specific
contracts; the outcome of disputes and litigation; potential liability for
losses not covered by, or in excess of, insurance; the impact of executive
separations; the impact of benefit plan terminations; the impact of differences
in actuarial assumptions and estimates as compared to eventual outcomes; events
or circumstances which result in an impairment of assets, including but not
limited to, goodwill and identifiable intangible assets; the final outcome of
divestiture activities; market conditions; the outcome of audit, compliance,
administrative, regulatory, or investigatory reviews; volatility in the market
for the Company's stock and in the financial markets generally; access to
adequate capital and financing; changes in tax laws and regulations; changes in
accounting rules and standards; the impacts of potential cybersecurity risks
and/or incidents; and costs to comply with the Company's Corporate Integrity
Agreement. Should one or more of these risks or uncertainties materialize or
should underlying assumptions prove incorrect, the Company's actual results,
performance or achievements could differ materially from those expressed in, or
implied by, such forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date hereof. Except as otherwise required by law, the Company does not undertake
any obligation to publicly release any revisions to these forward-looking
statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
# # #
Contact:
Patrick C. Lee
(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,
2013 June 30, 2012 June 30, 2013 June 30, 2012
---------------------------------------------------------------
Net sales $ 1,569,897 $ 1,536,027 $ 3,094,900 $ 3,129,095
Cost of sales 1,191,447 1,168,681 2,345,626 2,393,649
--------------- --------------- --------------- ---------------
Gross profit 378,450 367,346 749,274 735,446
Selling,
general and
administrative
expenses 203,688 201,878 405,514 402,002
Provision for
doubtful
accounts 25,346 24,078 49,572 48,509
Settlement,
litigation and
other related
charges 3,512 26,093 26,131 33,296
Other charges 31,268 49,209 35,274 60,721
--------------- --------------- --------------- ---------------
Operating
income 114,636 66,088 232,783 190,918
Interest
expense, net of
investment
income (29,624 ) (35,574 ) (59,083 ) (66,408 )
--------------- --------------- --------------- ---------------
Income from
continuing
operations
before income
taxes 85,012 30,514 173,700 124,510
Income tax
provision 32,793 11,822 67,127 50,079
--------------- --------------- --------------- ---------------
Net income 52,219 18,692 106,573 74,431
--------------- --------------- --------------- ---------------
Earnings (loss)
per common
share -
Diluted: $ 0.48 $ 0.17 $ 0.98 $ 0.65
Weighted
average number
of common
shares
outstanding:
Diluted 109,931 113,472 108,736 114,987
--------------- --------------- --------------- ---------------
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,
2013 2012
-------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $ 535,360 $ 454,213
Restricted cash 5 1,066
Accounts receivable, less allowances 764,448 857,052
Inventories 402,130 385,698
Deferred income tax benefits 97,616 136,186
Other current assets 296,594 254,644
--------------- ---------------
Total current assets 2,096,153 2,088,859
Properties and equipment, at cost less
accumulated depreciation
301,954 282,660
Goodwill 4,253,461 4,256,959
Identifiable intangible assets, less
accumulated amortization 175,353 196,873
Other noncurrent assets 114,614 163,913
--------------- ---------------
Total noncurrent assets 4,845,382 4,900,405
--------------- ---------------
Total assets $ 6,941,535 $ 6,989,264
--------------- ---------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 191,039 $ 200,125
Accrued employee compensation 64,885 73,791
Current debt 443,514 27,713
Other current liabilities 164,336 180,385
--------------- ---------------
Total current liabilities 863,774 482,014
Long-term debt, notes and convertible
debentures 1,591,524 2,030,030
Deferred income tax liabilities 927,293 914,660
Other noncurrent liabilities 61,081 56,848
--------------- ---------------
Total noncurrent liabilities 2,579,898 3,001,538
--------------- ---------------
Total liabilities 3,443,672 3,483,552
--------------- ---------------
Stockholders' equity 3,497,863 3,505,712
--------------- ---------------
Total liabilities and stockholders' equity $ 6,941,535 $ 6,989,264
--------------- ---------------
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, 2013
-------------------------------
Three months Six months
ended ended
---------------- --------------
Cash flows from operating activities:
Net income $ 52,219 $ 106,573
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation 14,713 28,520
Amortization 20,613 40,528
Disposition of business, net 28,786 28,786
Changes in certain assets and liabilities, net
of effects from acquisition and divestiture of
businesses:
Accounts receivable, net of provision for
doubtful accounts 54,464 71,130
Inventories (20,359 ) (17,319 )
Current and noncurrent assets (15,141 ) (28,359 )
Accounts payable 4,788 1,146
Accrued employee compensation 17,200 (8,873 )
Current and noncurrent liabilities (3,509 ) 40,537
----------------- --------------
Net cash flows from operating activities 153,774 262,669
Cash flows from investing activities:
Acquisition of businesses, net of cash
received (298 ) (298 )
Disposition of business, net 675 675
Capital expenditures (23,708 ) (46,837 )
Other (229 ) 625
----------------- --------------
Net cash flows used in investing activities (23,560 ) (45,835 )
Cash flows from financing activities:
Payments on term loans (5,313 ) (10,626 )
Payments on long-term borrowings and
obligations (1,750 ) (3,434 )
Capped call transaction - (38 )
Decrease in cash overdraft balance (459 ) (10,233 )
Payments for Omnicare common stock repurchases (100,000 ) (100,302 )
Proceeds for stock awards and exercise of
stock options, net of stock tendered in
payment 16,087 16,532
Dividends paid (14,287 ) (28,766 )
Other 1,050 1,180
----------------- --------------
Net cash flows used in financing activities (104,672 ) (135,687 )
----------------- --------------
Net increase in cash and cash equivalents 25,542 81,147
Cash and cash equivalents at beginning of
period 509,818 454,213
----------------- --------------
Cash and cash equivalents at end of period $ 535,360 $ 535,360
----------------- --------------
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,
2013 2012 2013 2012
------------ ------------- ------------- -------------
Adjusted earnings per
share ("EPS") from
continuing operations:
Diluted earnings per
share from continuing
operations $ 0.48 $ 0.17 $ 0.98 $ 0.65
Special Items: (a)
Settlement, litigation
and other related
charges 0.02 0.14 0.15 0.18
Other charges 0.18 0.27 0.20 0.34
Amortization of
discount on convertible
notes 0.03 0.03 0.07 0.07
Debt redemption costs - 0.02 - 0.02
------------- ------------- ------------- -------------
Total Special Items 0.23 0.46 0.42 0.61
Cash EPS Adjustments 0.20 0.20 0.40 0.38
Adjusted cash earnings
per diluted share from
continuing operations $ 0.90 $ 0.83 $ 1.80 $ 1.64
------------- ------------- ------------- -------------
Adjusted earnings
before interest, income
taxes ("EBIT",
"Operating income"),
depreciation and
amortization ("EBITDA")
from continuing
operations:
EBIT from continuing
operations $ 114,636 $ 66,088 232,783 $ 190,918
Depreciation and
amortization 35,326 34,843 69,048 67,304
Amortization of
discount on convertible
notes (6,187 ) (5,929 ) (12,256 ) (12,279 )
------------- ------------- ------------- -------------
EBITDA from continuing
operations 143,775 95,002 289,575 245,943
Special items (a) 34,780 75,302 61,405 94,017
------------- ------------- ------------- -------------
Adjusted EBITDA from
continuing operations 178,555 170,304 350,980 339,960
EBITDA from continuing
operations to net cash
flows from operating
activities:
EBITDA from continuing
operations 143,775 95,002 289,575 245,943
(Subtract)/Add:
Interest expense, net
of investment income
and amortization of
discount on convertible
notes (23,437 ) (29,645 ) (46,827 ) (54,129 )
Income tax provision (32,793 ) (11,822 ) (67,127 ) (50,079 )
Other operating
activities (including
debt redemption costs) - 39,185 - 39,288
Disposition of
business, net 28,786 - 28,786 5,903
Changes in certain
assets and liabilities,
net of effects from
acquisition and
divestitures of
businesses 37,443 27,478 58,262 33,689
------------- ------------- ------------- -------------
Net cash flows from
operating activities of
continuing operations $ 153,774 $ 120,198 $ 262,669 $ 220,615
------------- ------------- ------------- -------------
Segment Reconciliations
- Long-Term Care Group
("LTC")
Adjusted Operating
Income - LTC:
Operating income from
continuing operations
(b) 131,049 130,102 267,781 274,922
Special items (a) 34,061 28,010 59,432 44,225
------------- ------------- ------------- -------------
Adjusted operating
income from continuing
operations - LTC (b) 165,110 158,112 327,213 319,147
Segment Reconciliations
- Specialty Care Group
("SCG")
Adjusted Operating
Income - SCG:
Operating income from
continuing operations
(b) 29,887 24,370 60,852 47,678
Special items (a) - 200 - 200
------------- ------------- ------------- -------------
Adjusted operating
income from continuing
operations - SCG (b) 29,887 24,570 60,852 47,878
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 included Special Items and Cash EPS adjustments as
described below:
Q2 2013 YTD 2013 Q2 2012 YTD 2012
---------------------- ----------------------- ----------------------- -------------------------
After Tax After Tax After Tax After Tax
Pretax ((9)) Pretax ((9)) Pretax ((9)) Pretax ((9))
---------------------- ----------------------- ----------------------- -------------------------
EBIT:
Settlement,
litigation
and other
related
charges
((1)) $ 3,512 $ 2,173 $ 26,131 $ 16,086 $ 26,093 $ 16,014 $ 33,296 $ 20,444
Other
charges
Acquisition
and other
related
costs ((2)) 1,763 1,086 2,300 1,416 1,117 683 4,226 2,595
Disposition
of
businesses
((3)) 28,786 17,721 28,786 17,721 - - 5,903 5,903
Separation
costs ((4)) 719 444 4,188 2,578 13,000 7,980 15,500 9,517
Loss on debt
repurchase(
(5)) - - - - 35,092 21,546 35,092 21,546
----------------------- ----------------------- ----------------------- -------------------------
Subtotal -
Other
charges 31,268 19,251 35,274 21,715 49,209 30,209 60,721 39,561
----------------------- ----------------------- ----------------------- -------------------------
Subtotal -
EBIT Special
Items 34,780 21,424 61,405 37,801 75,302 46,223 94,017 60,005
Interest
Expense:
Amortization
of discount
on
convertible
notes ((6)) 6,187 3,812 12,256 7,545 5,929 3,633 12,279 7,539
Debt
redemption
costs ((5)) - - - - 4,093 2,513 4,093 2,513
----------------------- ----------------------- ----------------------- -------------------------
Subtotal -
Interest
Expense
Special
Items 6,187 3,812 12,256 7,545 10,022 6,146 16,372 10,052
----------------------- ----------------------- ----------------------- -------------------------
Subtotal -
Special
Items 40,967 25,236 73,661 45,346 85,324 52,369 110,389 70,057
Cash EPS
Items:
Amortization
of
intangibles 9,414 5,800 19,013 11,704 10,752 6,591 21,505 13,204
Goodwill
amortization
tax
deduction
((7)) - 9,387 - 18,834 - 10,915 - 21,774
Convertible
debt tax
deduction
((8)) - 6,657 - 13,283 - 5,650 - 9,087
----------------------- ----------------------- ----------------------- -------------------------
Subtotal -
Cash EPS
Items 9,414 21,844 19,013 43,821 10,752 23,156 21,505 44,065
----------------------- ----------------------- ----------------------- -------------------------
Grand Total
- Special
Items $ 50,381 $ 47,080 $ 92,674 $ 89,167 $ 96,076 $ 75,525 $ 131,894 $ 114,122
----------------------- ----------------------- ----------------------- -------------------------
1. Operating income includes settlement, litigation and other related 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 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. In the second quarter of 2013, the Company completed the disposition of
certain assets in its Medical Supply Services business and in 2012,
completed the dispositions of its Canadian pharmacy and the Company's
pharmacy operational software businesses, which were not considered,
individually or in the aggregate, significant to the operations of
Omnicare. The Company recorded a charge on the disposition of these
businesses of $28.8 million in the three and six months ended June
30, 2013, respectively, and $5.9 million in the six months ended June 30,
2012.
4. Operating income includes separation related costs for certain former
employees.
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.
b. Beginning in the second quarter of 2013, the Company concluded that the
operations of its hospice pharmacy business were better aligned with the
operation of its LTC, and began to review and manage the operations of this
business as part of LTC. Accordingly, to align the reporting segments with
the current way management reviews information to make operating decisions,
assess performance and allocate resources, the results of the Company's
hospice business are now reported in LTC. All prior period segment
information has been recast to reflect the new segment reporting.
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#1718174]
Unternehmensinformation / Kurzprofil:
Datum: 24.07.2013 - 13:00 Uhr
Sprache: Deutsch
News-ID 281414
Anzahl Zeichen: 42716
contact information:
Town:
Covington, KY
Kategorie:
Business News
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