Omnicare Reports Third-Quarter 2011 Financial Results
(Thomson Reuters ONE) -
* Third-Quarter Gross Profit of $346.1 Million; Gross Margin Expansion of 80
Basis Points Sequentially to 22.4%
* Quarterly Cash Flows from Continuing Operations Increase to $167.1 Million
* Adjusted Income from Continuing Operations Per Diluted Share of $0.54; 8%
Growth from $0.50 in 2011 Second Quarter
* Company Provides Updated Guidance
COVINGTON, Ky., October 25, 2011 - Omnicare, Inc. (NYSE:OCR) reported today
financial results for its third quarter ended September 30, 2011.
"We are pleased with our solid third quarter results, which reflect the progress
we are making to become a more operationally driven and customer-focused
company," said John Figueroa, Omnicare's Chief Executive Officer. "We are
executing on our operating objectives while establishing new ones, and we remain
focused on continuing to drive enhanced value for our shareholders, customers
and other important stakeholders."
Third-Quarter Results
Prior Year Comparison
Financial results from continuing operations for the quarter ended September
30, 2011, as compared with the same prior-year period, were as follows:
* Adjusted gross profit (see discussion below and attached supplemental
information) was $346.1 million as compared with $330.6 million
* GAAP income from continuing operations per diluted share (see "per share"
discussion below and attached supplemental information) was $0.33 versus a
$0.08 loss
* Adjusted income from continuing operations (see discussion below and
attached supplemental information) per share was $0.54 versus $0.53
* Adjusted EBITDA (see discussion below and attached supplemental information)
from continuing operations was $157.2 million compared to $142.2 million
Cash flows from continuing operations for the quarter ended September 30, 2011
was $167.1 million versus $116.3 million in the comparable prior-year quarter.
Included in the third quarter of 2011 was $22.7 million related to the
settlement of a receivable dispute with a large customer. Included in the third
quarter of 2010 was a settlement payment of approximately $21 million as well as
approximately $7 million of executive separation-related payments.
Sequential Comparison
In comparison to the second quarter of 2011, financial results from continuing
operations for the third quarter of 2011 were as follows:
* Gross profit was $346.1 million as compared with $336.4 million
* GAAP income from continuing operations per share was $0.33 versus $0.32
* Adjusted income from continuing operations (see discussion below and
attached supplemental information) per share was $0.54 versus $0.50
* Adjusted EBITDA (see discussion below and attached supplemental information)
from continuing operations was $157.2 million compared to $146.3 million
"The favorable dynamics currently present in the pharmaceutical marketplace,
especially the increased availability of generic drugs, improve the economics
for both Omnicare and its customers," said Mr. Figueroa. "During the quarter,
we realized the advantages of the rise in generic drug utilization, which,
coupled with our insourcing and other efficiency improvement initiatives, more
than offset a modest deceleration in industry prescription volumes. In
addition, we have seen positive results from our efforts to reaccelerate growth
in our Specialty Care Group."
Financial Position
During the third quarter of 2011, Omnicare entered into a new $750 million
senior unsecured credit facility, comprised of a $300 million revolving credit
facility and a $450 million Term A Loan, replacing the Company's previous $400
million senior secured revolving credit facility. Omnicare used the proceeds
from the Term A Loan to redeem $25 million of its 6.125% Senior Subordinated
Notes due 2013 (the "6.125% Notes) and $425 million of its Senior Subordinated
Notes due 2015 (the "6.875% Notes).
Also during the three-month period, Omnicare completed its offering of an
additional $150 million aggregate principal amount of its 7.75% Senior
Subordinated Notes due 2020. Subsequent to the end of the quarter, Omnicare
used the proceeds from the offering of 7.75% Notes to redeem the remaining $50
million principal amount on the 6.125% Notes and the remaining $100 million
principal amount on the 6.875% Notes.
In connection with its offering of the additional 7.75% Notes, the Company
entered into two interest rate swap agreements, under which Omnicare pays a
floating rate based on the London interbank offered rate, plus a weighted
average spread of 5.32%.
Omnicare concluded the third quarter of 2011 with no borrowings outstanding on
its revolving credit facility and $681.6 million in cash on its balance sheet.
Omnicare's total debt to total capital of 36.2% at September 30, 2011, was up
approximately 60 basis points from 35.6% at December 31, 2010 due to the
redemption of the remaining 6.125% Notes and 6.875% Notes taking place in the
fourth quarter of 2011.
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 $50.1 million. As of September 30, 2011, the Company had $78.9
million of availability under its current share repurchase authorization.
"During the third quarter, we maintained a high level of cash flow efficiency
and working capital management while making further steps to strengthen our
capital structure," said John L. Workman, Omnicare's President and Chief
Financial Officer. "Our quarterly cash flows from continuing operations of $167
million brings our nine-month total to $448 million, positioning us for a record
full-year performance. This elevated level of cash flow generation has enabled
us to continue redeploying capital in areas we expect will create value for our
shareholders."
To facilitate comparisons and to enhance the understanding of core operating
performance, the discussion which follows includes financial measures that are
adjusted from the comparable amount 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
Web site at http://ir.omnicare.com. Additionally, the Company will make
supplemental slides available in the same section on its Web site today that
will include the number of scripts dispensed, beds served, and other information
relevant to Omnicare's operations.
Nine-Month Results
Financial results from continuing operations for the nine months ended September
30, 2011, as compared with the same prior-year period, were as follows:
* Net sales were $4,625.8 million as compared with $4,500.0 million
* GAAP income from continuing operations per share was $1.07 as compared with
$0.61
* Adjusted income from continuing operations (see discussion below and
attached supplemental information) per share was $1.55 as compared with
$1.61
EBITDA from continuing operations for the first nine months of 2011, including
the impact of special items and accounting changes, was $406.2 million versus
$317.8 million in the comparable prior-year period. Excluding the special
items, adjusted EBITDA from continuing operations in the first nine months of
2011 was $449.7 million as compared with $450.6 million in the first nine months
of 2010.
Operating cash flow from continuing operations for the first nine months of
2011 totaled $447.9 million versus $269.2 million in the comparable prior-year
period.
Special Items
The results for the third quarter of 2011 and 2010 include the impact of special
items and accounting changes totaling approximately $39.7 million pretax ($24.5
million aftertax, or approximately $0.21 per share) and $111.5 million pretax
($71.0 million aftertax, or approximately $0.61 per share), respectively.
Results for the first nine months of 2011 and 2010 include special items
totaling $82.7 million pretax ($55.1 million aftertax, or approximately $0.48
per share) and $182.5 million pretax ($116.9 million aftertax, or approximately
$0.99 per share), respectively.
The special items have been described in further detail in the "Footnotes and
Definitions to Financial Information" section elsewhere herein.
Outlook
Reflecting its more favorable outlook on cash flows as well as a narrower
earnings guidance range, Omnicare now expects the following for full-year 2011:
* Revenues of $6.0 billion to $6.1 billion
* Income per diluted share from continuing operations of $2.09 to $2.13
(excluding special items)
* Cash flow from continuing operations increased to $500 million to $525
million (from prior guidance of $400 million to $450 million)
Webcast Today
Omnicare will hold a conference call to discuss its third-quarter 2011 financial
results today, Tuesday, October 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 Web site at http://ir.omnicare.com. An archived
replay will be made available on the Web site following the conclusion of the
conference call.
About Omnicare
Omnicare, Inc., a Fortune 400 company based in Covington, Kentucky, 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, including the proposed acquisition of
PharMerica, 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; and costs to comply
with the Company's Corporate Integrity Agreements. 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
(859) 392-3444
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 30, June 30, September 30, September 30, September 30,
2011 2011 2010 2011 2010
Net sales $ 1,544,360 $ 1,555,906 $ 1,516,207 $ 4,625,837 $ 4,500,003
Cost of sales 1,198,299 1,219,513 1,182,815 3,608,423 3,498,012
Gross profit 346,061 336,393 333,392 1,017,414 1,001,991
Selling,
general and 191,293 192,474 190,745 573,934 559,435
administrative
expenses
Provision for
doubtful 24,255 24,357 22,376 73,142 65,304
accounts
Settlement,
litigation and 6,742 19,816 36,731 32,571 71,598
other related
charges
Separation,
benefit plan
termination - - 64,760 - 64,760
and related
costs
Other
miscellaneous 6,718 2,332 8,022 10,939 19,072
charges
Operating 117,053 97,414 10,758 326,828 221,822
income
Investment 21 255 4,096 572 6,865
income
Interest (49,840) (27,996) (30,975) (106,641) (99,295)
expense
Amortization
of discount on (6,107) (5,989) (7,615) (17,969) (22,419)
convertible
notes
Income (loss)
from
continuing 61,127 63,684 (23,736) 202,790 106,973
operations
before income
taxes
Income tax
expense 23,343 27,403 (14,100) 79,570 35,423
(benefit)
Income (loss)
from 37,784 36,281 (9,636) 123,220 71,550
continuing
operations
Loss from
discontinued (9,900) (37,728) (93,630) (67,479) (112,365)
operations
Net income $ 27,884 $ (1,447) $ (103,266) $ 55,741 $ (40,815)
(loss)
Earnings
(loss) per
common share -
Basic:
Continuing $ 0.34 $ 0.32 $ (0.08) $ 1.09 $ 0.61
operations
Discontinued (0.09) (0.33) (0.81) (0.59) (0.96)
operations
Net income $ 0.25 $ (0.01) $ (0.89) $ 0.49 $ (0.35)
(loss)
Earnings
(loss) per
common share -
Diluted:
Continuing $ $ $ $ $
operations 0.33 0.32 (0.08) 1.07 0.61
Discontinued (0.09) (0.33) (0.81) (0.59) (0.96)
operations
Net income $ 0.24 $ (0.01) $ (0.89) $ 0.49 $ (0.35)
(loss)
Weighted
average number
of common
shares
outstanding:
Basic 112,729 113,487 115,554 113,443 116,909
Diluted 114,644 114,701 115,554 114,930 117,520
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
(000s)
Unaudited
Condensed
Consolidated Balance
Sheets Information,
GAAP Basis:
September 30, December 31,
2011 2010
Assets:
Cash and cash
equivalents, $ 681,642 $ 496,503
including restricted
cash
Accounts receivable, 953,836 1,011,823
net
Inventories 357,642 418,965
Total current assets 2,360,927 2,457,796
Properties and 213,283 204,717
equipment, net
Goodwill 4,301,702 4,234,821
Total noncurrent 4,965,446 4,905,617
assets
Total assets 7,326,373 7,363,413
Liabilities and
Stockholders Equity:
Total current 533,946 594,254
liabilities
Long-term debt, notes
and convertible 2,116,632 2,106,758
debentures
Total noncurrent 3,010,176 2,953,215
liabilities
Total liabilities 3,544,122 3,547,469
Stockholders' equity 3,782,251 3,815,944
Total liabilities and 7,326,373 6,125,130
stockholders' equity
Condensed
Consolidated
Statement of Cash
Flows Information,
GAAP Basis:
Three months ended Nine months ended
September 30, 2011 September 30, 2011
Cash flows from
operating activities:
Net income $ 27,884 $ 55,741
Loss from
discontinued 9,900 67,479
operations
Adjustments to
reconcile net income
to net cash
flows from operating 129,282 324,721
activities
Net cash flows from
operating activities 167,066 447,941
of continuing
operations
Net cash flows from
operating activities 449 869
of discontinued
operations
Net cash flows from 167,515 448,810
operating activities
Cash flows (used in)
investing activities:
Net cash flows (used
in) investing (103,476) (133,137)
activities of
continuing operations
Net cash flows used
in investing
activities of (154) (567)
discontinued
operations
Net cash flows (used
in) investing (103,630) (133,704)
activities
Cash flows from (used
in) financing
activities:
Net cash flows from
(used in) financing 94,443 (129,645)
activities of
continuing operations
Net increase in cash 158,328 185,461
and cash equivalents
Less increase in cash
and cash equivalents 295 302
of discontinued
operations
Increase in cash and
cash equivalents of $ 158,033 $ 185,159
continuing operations
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
(a)
(000s, except
per share
amounts)
Unaudited
Three months ended Nine months ended
September 30, June 30, September 30, September 30, September 30,
2011 2011 2010 2011 2010
Adjusted earnings per share ("EPS") from continuing
operations:
Diluted
earnings (loss)
per share from $ 0.33 $ 0.32 $ (0.08) $ 1.07 $ 0.61
continuing
operations
Special items:
(a)
Settlement,
litigation and 0.04 0.14 0.21 0.21 0.40
other related
charges
Amortization of
discount on 0.03 0.03 0.04 0.10 0.12
convertible
notes
Separation,
benefit plan - - 0.36 - 0.35
termination and
related costs
Debt redemption 0.11 - - 0.11 0.05
costs, net
Other
miscellaneous 0.04 0.01 0.01 0.06 0.07
charges, net
Total - Special 0.21 0.19 0.61 0.48 0.99
items
Adjusted
diluted
earnings per $ 0.54 $ 0.50 $ 0.53 $ 1.55 $ 1.61
share from
continuing
operations
Adjusted gross
profit:
Gross profit
from continuing $ 346,061 $ 336,393 $ 333,392 $1,017,414 $1,001,991
operations
Special items - - (2,836) - (1,927)
Adjusted gross $ 346,061 $ 336,393 $ 330,556 $1,017,414 $1,000,064
profit
Adjusted earnings before interest, income
taxes, depreciation and amortization
("EBITDA") from continuing operations:
EBIT from
continuing $ 117,053 $ 97,414 $ 10,758 $ 326,828 $ 221,822
operations
Depreciation
and 32,761 32,755 50,477 97,326 118,377
amortization
expense
Amortization of
discount on (6,107) (5,989) (7,615) (17,969) (22,419)
convertible
notes
EBITDA from
continuing 143,707 124,180 53,620 406,185 317,780
operations
Special items 13,460 22,148 88,576 43,510 132,826
Adjusted EBITDA
from continuing $ 157,167 $ 146,328 $ 142,196 $ 449,695 $ 450,606
operations
EBITDA from
continuing
operations to
net cash flows
from operating
activities:
EBITDA from
continuing $ 143,707 $ 124,180 $ 53,620 $ 406,185 $ 317,780
operations
(Subtract)/Add:
Interest
expense, net of (49,819) (27,741) (26,879) (106,069) (92,430)
investment
income
Income tax (23,343) (27,403) 14,100 (79,570) (35,423)
provision
Benefit plan
termination and - - 25,187 - 25,187
related costs
Debt redemption (14,612) (255) (268) (16,144) (7,591)
tender premium
Write-off of
debt issuance 4,994 68 - 5,260 2,060
costs, net
Changes in
assets and
liabilities,
net of effects
from
acquisition and
divestiture of 106,139 68,097 50,526 238,279 59,652
businesses
Net cash flows
from operating
activities of 167,066 136,946 116,286 447,941 269,235
continuing
operations
Net cash flows
(used in) from
operating 449 (26) 845 869 1,473
activities of
discontinued
operations
Net cash flows
from operating $ 167,515 $ 136,920 $ 117,131
activities
$ 448,810 $ 270,708
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, 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 item charges of approximately $40 million, $28 million and $111 million
in the three months ended September 30 and June 30, 2011 and September
30, 2010, respectively, and approximately $83 million and $182 million in the
nine months ended September 30, 2011 and 2010, respectively. Additional
information regarding the special item charges follows:
(i). Operating income includes settlement, litigation and other
related charges (including related professional expenses) for resolution of
certain regulatory matters with various states and regulatory agencies, as well
as costs associated with certain large customer disputes, purported class and
derivative actions against the Company, and settlement of the investigation by
the United States Attorney's Office, District of Massachusetts (in the 2010
period). 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 items recognized.
(ii). Financial results from continuing
operations for the three months ended September 30 and June 30, 2011 and
September 30, 2010 and the nine months ended September 30, 2011 and 2010
included the following special item charges which are included in the cost of
sales, other miscellaneous charges and interest expense captions of the income
statement:
i. Operating income for the three months ended September 30 and June
30, 2011 and September 30, 2010 included acquisition and other related costs of
approximately $6.7 million, $2.3 million and $3.9 million, respectively. These
expenses were primarily related to professional fees and acquisition related
restructuring costs for acquisitions, offset by reductions in the Company's
original estimate of contingent consideration payable for acquisitions in the
2010 period. The nine months ended September 30, 2011 and 2010 included similar
expenses of approximately $10.9 million and $4.0 million, respectively.
ii. Financial results from continuing operations for the three months
and nine months ended September 30, 2011 include charges of approximately $20.2
million and $21.2 million, respectively, primarily due to net debt redemption
costs of approximately $17.6 million for the early redemption of $425 million of
the 6.875% Senior Subordinated Notes, due 2015, and $2.5 million related to the
termination of the Company's old revolving credit agreement. The nine month
ended 2011 period also includes approximately $1.1 million related to the early
redemption of $200 million of 6.125% Senior Subordinated Notes, due 2013. The
nine months ended September 30, 2010 includes approximately $10.2 million of
debt redemption costs related to the Company's Q2 2010 refinancing transactions.
iii. Operating income includes restructuring and other related
charges of approximately $3.3 million and $10.3 million for the three and nine
months ended September 30, 2010, respectively, in connection with the "Omnicare
Full Potential" Plan.
iv. For the three and nine
months ended September 30, 2010, operating income includes a special
charge/(credit) of approximately $(3.0) million and $(1.1) million,
respectively, for additional costs (net of recoveries) precipitated by the
quality control, product recall and fire issues at one of the Company's
repackaging locations ("Repack Matters").
v. Operating income includes charges of approximately $0.9 million
and $3.5 million for the three and nine months ended September 30, 2010,
respectively, relating to the accounting for share-based payments, which
primarily relates to non-cash stock option expense.
vi. In connection with funding the benefit payments to certain former
executives in the three and nine months ended September 30, 2011, the Company
recorded a gain, recorded in investment income, of approximately $3.2 million on
rabbi trust assets liquidated to make the payments.
(iii). The Company recorded non-cash interest expense from the
amortization of debt discount on its convertible notes of approximately $6
million in the three months ended September 30 and June 30, 2011, respectively.
These costs totaled approximately $8 million for the three months ended
September 30, 2010 and $18 million and $22 million for the nine months ended
September 30, 2011 and 2010, respectively.
(iv). Operating income for the three and nine
months ended September 30, 2010 included separation, benefit plan termination
and related costs of approximately $65 million, which was comprised of the
following:
i. A charge of approximately
$40 million in the three and nine months ended September 30, 2010 for separation
costs with three former Omnicare executives. These amounts primarily relate to
the accelerated vesting of restricted stock awards, stock options, severance,
interest, and employer payroll taxes on these items.
ii. On September 30, 2010, the
Company terminated the defined benefit portion of its Excess Benefit Plan. As a
result of the Plan termination, the Company recognized a one-time charge to
expense of approximately $25 million for benefit plan termination and related
costs in the three and nine months ended September 30, 2010.
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 third quarter of 2011, the prior letter
of intent ("LOI") regarding the disposition of the remaining durable medical
equipment ("DME") portion of the Disposal Group was terminated, and a new LOI
was entered into with a separate party. In connection with these activities,
and as a result of the Company's third quarter 2011 fair value assessment,
Omnicare recorded a loss on discontinued operations for the DME portion of the
Disposal Group in the three and nine months ended September 30, 2011. For the
nine months ended September 30, 2011, CRO Services and Tidewater recorded
impairment losses to reduce the carrying value of the CRO Services and Tidewater
operations to fair value based on the final terms of the divestiture as of
September 30, 2011. The results from operations for all periods presented have
been revised to reflect the results of the Disposal Group and Tidewater
(collectively, the "Non-Core Disposal Group"), as well as CRO Services as
discontinued operations, including certain expenses of the Company related to
the divestitures.
EBIT represents earnings before interest expense (net of investment income) and
income taxes.
Definitions:
GAAP:
Amounts that conform with U.S. Generally Accepted Accounting Principles
("GAAP").
Non-GAAP:
Amounts that do not conform with U.S. GAAP.
Earnings Per Share:
EPS (basic EPS; special items, net of taxes; adjusted basic EPS; diluted EPS;
and adjusted diluted EPS) is reported independently for each amount presented.
Accordingly, the sum of the individual amounts may not necessarily equal the
separately calculated amounts for the corresponding period.
EBIT:
EBIT represents earnings before interest expense (net of investment income) and
income taxes.
EBITDA:
EBITDA represents earnings before interest expense (net of investment income),
income taxes, depreciation and amortization. Omnicare uses EBITDA primarily as
an indicator of the Company's ability to service its debt, and believes that
certain investors find EBITDA to be a useful financial measure for the same
purpose. EBITDA does not represent net cash flows from operating activities, as
defined by U.S. GAAP, and should not be considered as a substitute for operating
cash flows as a measure of liquidity. Omnicare's calculation of EBITDA may
differ from the calculation of EBITDA by others. Certain special items must be
added back to (or deducted from) EBITDA and/or Adjusted EBITDA to avoid "double-
counting" in the Company's calculation of EBITDA.
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#1557444]
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2011 - 13:31 Uhr
Sprache: Deutsch
News-ID 79965
Anzahl Zeichen: 43304
contact information:
Town:
Covington, KY
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"Omnicare Reports Third-Quarter 2011 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Omnicare (Nachricht senden)
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