Omnicare Reports Third-Quarter 2014 Financial Results; Company Updates Full-Year 2014 Guidance
(Thomson Reuters ONE) -
CINCINNATI, October 24, 2014 - Omnicare, Inc. (NYSE:OCR) reported today
financial results for its third quarter ended September 30, 2014.
Third-Quarter Highlights:
* Net sales increase of 6.1% to $1.6 billion
* Adjusted cash earnings per diluted share from continuing operations 6.8%
higher to $0.94; GAAP earnings per diluted share of $0.65
* Adjusted operating income from continuing operations increase of 5.8% to
$153 million
"We are pleased with our solid quarterly financial performance," said Nitin
Sahney, Omnicare's Chief Executive Officer. "Throughout the year, we have
continued our progress in executing our long-term strategic plan through an
ongoing focus on growing our core platforms and demonstrating discipline within
our operations. The third quarter marked a continuation of this journey, as we
exhibited further strength in our operating results while making greater inroads
within the markets in which we compete. As we further transform our
organization into an integrated and diversified healthcare services company, we
believe we will continue to produce favorable results for our shareholders,
clients and employees."
Third-Quarter Results
Financial results from continuing operations for the quarter ended September 30,
2014, as compared with the same prior-year period, were as follows:
* Net sales were $1,608 million versus $1,515 million
* Gross profit was $351 million as compared with $352 million
* GAAP earnings (loss) per diluted share was $0.65 versus $(0.68)
* Adjusted cash earnings per diluted share was $0.94 versus $0.88
* Adjusted EBITDA was $180 million versus $172 million
Cash flows used in continuing operations for the quarter ended September 30,
2014 were $36 million, including previously announced and recorded litigation
settlement payments of $120 million, versus $189 million in the comparable
prior-year quarter.
Mr. Sahney continued, "For the third quarter, we reported solid year-over-year
revenue growth of 6.1%, with each of our core businesses contributing to the
increase. Our operating performance was also bolstered by another solid
performance within our Specialty Care Group, which generated a 27.4% increase in
operating profit. Additionally, we continued to realize the benefit of our
ongoing efficiency initiatives across our business, with operating efficiencies
contributing to a 23 basis-point sequential expansion in adjusted operating
margin to 9.5%."
Year-to-Date Results
Financial results from continuing operations for the nine months ended
September 30, 2014, as compared with the same prior-year period, were as
follows:
* Net sales were $4,790 million versus $4,477 million
* Gross profit was $1,064 million as compared with $1,061 million
* GAAP earnings per diluted share was $1.81 versus $0.24
* Adjusted cash earnings per diluted share was $2.77 versus $2.57
* Adjusted EBITDA was $534 million versus $502 million
Cash flows from operating activities of continuing operations for the nine
months ended September 30, 2014, including the previously announced and recorded
litigation settlement payments of $120 million, were $355 million versus $456
million in the comparable prior-year period.
Segment Information
Financial results for the Long-Term Care Group for the third-quarter ended
September 30, 2014 were as follows:
* Net sales of $1,183 million were 2.2% higher than $1,158 million in the same
prior-year period
* Adjusted operating income of $159 million was in-line with the same prior-
year period
Financial results for the Specialty Care Group for the third-quarter ended
September 30, 2014 were as follows:
* Net sales of $425 million were 18.9% higher than $357 million in the same
prior-year period
* Operating income of $34 million increased 27.4% from $27 million in the same
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 and other information relevant to
Omnicare's operations.
Special Items
The results for the third-quarters ended September 30, 2014 and 2013 include the
impact of special items and cash EPS adjustments as follows:
+-------------------------------------------+----------------------------------+
| Three months ended | Nine months ended |
| September 30, | September 30, |
| | |
| 2014 2013 | 2014 2013 |
| | |
| 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. $11.5M $0.11 $144.7M $1.30 |$41.8M $0.39 $190.0M $1.73 |
| | |
|Cash EPS | |
|Adj. $19.7M $0.19 $22.3M $0.20 |$59.5M $0.56 $64.8M $0.59 |
+-------------------------------------------+----------------------------------+
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
Based upon its solid nine-month results, Omnicare increased the lower end of its
expectations for adjusted cash earnings per diluted share and reaffirmed other
elements of its full-year guidance to reflect the following:
+-------------------------------------------+-----------------+----------------+
| Original Guidance|Previous Guidance|Current Guidance|
+-------------------------------------------+-----------------+----------------+
|Revenue $6.3B to $6.4B | $6.3B to $6.4B | $6.3B to $6.4B |
| | | |
|Adjusted cash earnings | | |
|per diluted share | | |
|(excluding special items) $3.64 to $3.72 | $3.64 to $3.72 | $3.70 to $3.72 |
| | | |
|Cash flows from | | |
|operations (excluding | | |
|settlement payments) $475M to $550M | $500M to $550M | $500M to $550M |
+-------------------------------------------+-----------------+----------------+
Webcast Today
Omnicare will hold a conference call to discuss its third-quarter 2014 financial
results today, Friday, October 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 specialty pharmacy and 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 Company's ability to attract new clients and
service contracts and retain existing clients and service contracts; the
Company's 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 the Company and its customers; the overall
financial condition of the Company's customers and the ability of the Company to
assess and react to such financial condition; the ability and willingness of the
Company's 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
Company's 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; our 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; access to adequate capital and financing on
acceptable terms; changes in our credit ratings given by rating agencies; timing
of conversions of our convertible debt securities; changes in tax laws and
regulations; changes in accounting rules and standards; the impacts of potential
cybersecurity risks and/or incidents; costs to comply with the Company's
Corporate Integrity Agreement; and unexpected costs and interruptions from the
implementation of our new information technology system. 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 Nine months ended
---------------------------------------------------------------
September September September September
30, 2014 30, 2013 30, 2014 30, 2013
---------------------------------------------------------------
Net sales $ 1,608,055 $ 1,515,168 $ 4,789,677 $ 4,477,229
Cost of sales 1,256,595 1,163,197 3,725,533 3,416,039
---------------- --------------- --------------- --------------
Gross profit 351,460 351,971 1,064,144 1,061,190
Selling,
general and
administrative
expenses 178,940 182,668 549,816 565,276
Provision for
doubtful
accounts 19,911 24,963 62,562 75,113
Settlement,
litigation and
other related
charges 12,868 143,484 27,467 169,615
Other charges 3,999 61,632 25,559 96,906
---------------- --------------- --------------- --------------
Operating
income (loss) 135,742 (60,776 ) 398,740 154,280
Interest
expense, net of
investment
income (28,717 ) (34,925 ) (88,138 ) (94,011 )
---------------- --------------- --------------- --------------
Income (loss)
from continuing
operations
before income
taxes 107,025 (95,701 ) 310,602 60,269
Income tax
provision 38,948 (26,350 ) 117,641 34,004
---------------- --------------- --------------- --------------
Income (loss)
from continuing
operations 68,077 (69,351 ) 192,961 26,265
(Loss) income
from
discontinued
operations (3,246 ) 3,042 (42,385 ) 13,999
---------------- --------------- --------------- --------------
Net income
(loss) $ 64,831 $ (66,309 ) $ 150,576 $ 40,264
---------------- --------------- --------------- --------------
Earnings (loss)
per common
share -
Diluted:
Continuing
operations $ 0.65 $ (0.68 ) $ 1.81 $ 0.24
Discontinued
Operations (0.03 ) 0.03 (0.40 ) 0.13
Net Income
(loss) $ 0.61 $ (0.65 ) $ 1.42 $ 0.37
Weighted
average number
of common
shares
outstanding:
Diluted $ 105,548 $ 101,811 $ 106,450 $ 109,612
---------------- --------------- --------------- --------------
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
September 30, December 31,
2014 2013
--------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 286,943 $ 356,001
Accounts receivable, less allowances 651,224 695,684
Inventories 494,563 512,418
Deferred income tax benefits 56,084 135,094
Other current assets 315,165 265,536
Current assets of discontinued operations - 49,995
--------------- --------------
Total current assets 1,803,979 2,014,728
Properties and equipment, at cost less
accumulated depreciation 330,601 305,888
Goodwill 4,060,683 4,057,456
Identifiable intangible assets, less accumulated
amortization 106,425 129,974
Other noncurrent assets 95,649 96,722
Noncurrent assets of discontinued operations - 87,078
--------------- --------------
Total noncurrent assets 4,593,358 4,677,118
--------------- --------------
Total assets $ 6,397,337 $ 6,691,846
--------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 220,288 $ 181,022
Accrued employee compensation 56,394 50,240
Current debt 495,713 527,204
Other current liabilities 166,324 355,845
Current liabilities of discontinued operations - 18,846
--------------- --------------
Total current liabilities 938,719 1,133,157
Long-term debt, notes and convertible debentures 1,411,470 1,418,819
Deferred income tax liabilities 1,022,857 1,012,733
Other noncurrent liabilities 60,701 53,835
Noncurrent liabilities of discontinued
operations - 1,398
--------------- --------------
Total noncurrent liabilities 2,495,028 2,486,785
--------------- --------------
Total liabilities 3,433,747 3,619,942
--------------- --------------
Convertible debt 308,787 331,101
Stockholders' equity 2,654,803 2,740,803
--------------- --------------
Total liabilities and stockholders' equity $ 6,397,337 $ 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
-------------------------------
September 30, 2014
-------------------------------
Three months Nine months
ended ended
-------------------------------
Cash flows from operating activities:
Net income $ 64,831 $ 150,576
Loss from discontinued operations 3,246 42,385
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation 14,733 43,010
Amortization 18,599 57,419
Debt redemption loss and costs, net 5 8,419
Disposition of business, net 285 805
Gale/Silver settlement payments, net (120,000 ) (120,000 )
Changes in certain assets and liabilities, net
of effects from acquisition and divestiture of
businesses:
Accounts receivable, net of provision for
doubtful accounts 30,284 15,848
Inventories (86,773 ) 17,807
Current and noncurrent assets (10,435 ) (20,853 )
Accounts payable (13,030 ) 58,399
Accrued employee compensation (6,462 ) 6,389
Current and noncurrent liabilities 69,051 94,350
---------------- --------------
Net cash flows (used in) from operating
activities of continuing operations (35,666 ) 354,554
Net cash flows (used in) from operating
activities of discontinued operations (5,297 ) 863
---------------- --------------
Net cash flows (used in) from operating
activities (40,963 ) 355,417
---------------- --------------
Cash flows from investing activities:
Divestiture of businesses, net 64,080 71,194
Capital expenditures (19,848 ) (67,871 )
Other (58 ) (18 )
---------------- --------------
Net cash flows from investing activities of
continuing operations 44,174 3,305
Net cash flows used in investing activities of
discontinued operations (133 ) (863 )
---------------- --------------
Net cash flows from investing activities 44,041 2,442
---------------- --------------
Cash flows from financing activities:
Payments on term loans (5,313 ) (15,938 )
Payments on long-term borrowings and
obligations (1,868 ) (176,983 )
Decrease in cash overdraft balance (12,916 ) (19,786 )
Payments for Omnicare common stock repurchases - (160,438 )
Proceeds for stock awards and exercise of stock
options, net of stock tendered in payment 2,427 (293 )
Dividends paid (19,440 ) (58,419 )
Other 819 4,940
---------------- --------------
Net cash flows used in financing activities (36,291 ) (426,917 )
---------------- --------------
Net decrease in cash and cash equivalents (33,213 ) (69,058 )
Less decrease in cash and cash equivalents from
discontinued operations (5,430 ) -
---------------- --------------
Decrease in cash and cash equivalents from
continuing operations (27,783 ) (69,058 )
---------------- --------------
Cash and cash equivalents at beginning of
period 314,726 356,001
---------------- --------------
Cash and cash equivalents at end of period $ 286,943 $ 286,943
---------------- --------------
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 Nine months ended
------------------------------- -----------------------------
September September September September
30, 2014 30, 2013 30, 2014 30, 2013
--------------- --------------- --------------- -------------
Adjusted earnings
per share ("EPS")
from continuing
operations:
Diluted earnings
(loss) per share
from continuing
operations $ 0.65 $ (0.68 ) $ 1.81 $ 0.24
Amount related to
adjusted diluted
shares - 0.05 - -
Special Items:
(a)
Settlement,
litigation and
other related
charges 0.05 0.87 0.13 1.03
Other charges 0.02 0.37 0.15 0.57
Amortization of
discount on
convertible notes 0.04 0.03 0.11 0.10
Debt redemption
costs - 0.03 - 0.03
--------------- --------------- --------------- -------------
Total Special
Items 0.11 1.30 0.39 1.73
Cash EPS
Adjustments 0.19 0.20 0.56 0.59
Adjusted cash
earnings per
diluted share
from continuing
operations $ 0.94 $ 0.88 $ 2.77 $ 2.57
--------------- --------------- --------------- -------------
Adjusted diluted
share count:
Diluted shares
outstanding N/A 101,811 N/A N/A
Convertible
securities 8,926
Stock options,
warrants and
awards 723
---------------
Adjusted diluted
shares
outstanding 111,460
---------------
Adjusted earnings
before interest,
income taxes
("EBIT",
"Operating
income"),
depreciation and
amortization
("EBITDA") from
continuing
operations:
EBIT from
continuing
operations $ 135,742 $ (60,776 ) 398,740 $ 154,280
Depreciation and
amortization 33,332 34,040 100,429 99,527
Amortization of
discount on
convertible notes (6,139 ) (6,218 ) (18,484 ) (18,474 )
--------------- --------------- --------------- -------------
EBITDA from
continuing
operations 162,935 (32,954 ) 480,685 235,333
Special items (a) 16,867 205,116 53,026 266,521
--------------- --------------- --------------- -------------
Adjusted EBITDA
from continuing
operations 179,802 172,162 533,711 501,854
EBITDA from
continuing
operations to net
cash flows from
operating
activities:
EBITDA from
continuing
operations 162,935 (32,954 ) 480,685 235,333
(Subtract)/Add:
Interest expense,
net of investment
income and
amortization of
discount on
convertible notes (22,578 ) (28,707 ) (69,654 ) (75,537 )
Income tax
provision (38,948 ) 26,350 (117,641 ) (34,004 )
Other operating
activities
(including debt
redemption costs) 5 55,652 8,419 55,652
Disposition of
business, net 285 7,276 805 36,062
Gale/Silver
settlement
payments, net (120,000 ) - (120,000 ) -
Changes in
certain assets
and liabilities,
net of effects
from acquisition
and
divestitures of
businesses (17,365 ) 161,205 171,940 238,480
--------------- --------------- --------------- -------------
Net cash flows
from operating
activities of
continuing
operations $ (35,666 ) $ 188,822 $ 354,554 $ 455,986
--------------- --------------- --------------- -------------
Segment
Reconciliations -
Long-Term Care
Group ("LTC")
Adjusted
Operating Income
- LTC:
Operating income
from continuing
operations 142,285 4,207 444,402 259,953
Special items (a) 16,421 154,248 36,451 213,680
--------------- --------------- --------------- -------------
Adjusted
operating income
from continuing
operations - LTC 158,706 158,455 480,853 473,633
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's 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:
Q3 2014 YTD 2014 Q3 2013 YTD 2013
----------------------- ------------------------ ------------------------- ------------------------
After Tax After Tax After Tax After Tax
Pretax ((9)) Pretax ((9)) Pretax ((9)) Pretax ((9))
----------------------- ------------------------ ------------------------- ------------------------
EBIT:
Settlement,
litigation
and other
related
charges
((1)) $ 12,868 $ 5,360 $ 27,467 $ 14,340 $ 143,484 $ 97,074 $ 169,615 $ 113,160
Other
charges
Acquisition
and other
related
costs ((2)) - - - - - - 2,300 1,416
Disposition
of
businesses
((3)) 285 174 805 494 10,116 9,391 38,902 27,112
Separation
costs ((4)) 3,642 2,213 16,922 10,382 648 384 4,836 2,962
Loss on debt
repurchase(
(5)) 72 32 7,832 4,805 50,868 31,138 50,868 31,138
----------------------- ------------------------ ------------------------- ------------------------
Subtotal -
Other
charges 3,999 2,419 25,559 15,681 61,632 40,913 96,906 62,628
----------------------- ------------------------ ------------------------- ------------------------
Subtotal -
EBIT Special
Items 16,867 7,779 53,026 30,021 205,116 137,987 266,521 175,788
Interest
Expense:
Amortization
of discount
on
convertible
notes ((6)) 6,139 3,746 18,484 11,339 6,218 3,767 18,474 11,312
Debt
redemption
costs ((5)) - - 647 398 4,784 2,929 4,784 2,929
----------------------- ------------------------ ------------------------- ------------------------
Subtotal -
Interest
Expense
Special
Items 6,139 3,746 19,131 11,737 11,002 6,696 23,258 14,241
----------------------- ------------------------ ------------------------- ------------------------
Subtotal -
Special
Items 23,006 11,525 72,157 41,758 216,118 144,683 289,779 190,029
Cash EPS
Items:
Amortization
of
intangibles 7,747 4,727 23,549 14,447 8,169 4,934 25,054 15,324
Goodwill
amortization
tax
deduction
((7)) - 7,098 - 21,106 - 9,203 - 28,037
Convertible
debt tax
deduction
((8)) - 7,901 - 23,921 - 8,198 - 21,481
----------------------- ------------------------ ------------------------- ------------------------
Subtotal -
Cash EPS
Items 7,747 19,726 23,549 59,474 8,169 22,335 25,054 64,842
----------------------- ------------------------ ------------------------- ------------------------
Grand Total
- Special
Items $ 30,753 $ 31,251 $ 95,706 $ 101,232 $ 224,287 $ 167,018 $ 314,833 $ 254,871
----------------------- ------------------------ ------------------------- ------------------------
(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 which was not considered
significant to the operations of Omnicare.
(4) Operating income includes separation related costs and accelerated stock
based compensation expense for certain employees.
(5) Operating income (loss) and interest expense include 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:
During the fourth quarter of 2013, the Company's end-of-life hospice pharmacy
business as well as certain retail operations qualified for discontinued
operations treatment. As such, the results from continuing operations for all
periods presented have been revised to reflect the results of these businesses
as discontinued operations, including certain expenses of the Company related to
the classification as discontinued operations.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1865005]
Unternehmensinformation / Kurzprofil:
Datum: 24.10.2014 - 13:16 Uhr
Sprache: Deutsch
News-ID 346799
Anzahl Zeichen: 44459
contact information:
Town:
Covington, KY
Kategorie:
Business News
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