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Cardinal Health, Inc. (CAH) Reports Third-Quarter Results  
5/3/2012 12:00:45 PM

DUBLIN, Ohio, May 3, 2012 /PRNewswire/ -- Cardinal Health today reported a 3 percent increase in fiscal 2012 third-quarter revenue to $26.9 billion and a 6 percent increase in non-GAAP operating earnings to $524 million. The company also reported a 16 percent increase in non-GAAP diluted earnings per share (EPS) from continuing operations to $0.94.

"We are pleased to report another solid quarter of revenue growth for both of our business segments, as well as continued strong growth in earnings per share," said George Barrett, chairman and chief executive officer of Cardinal Health. "Our Pharmaceutical segment continued its robust profit performance. Our Medical segment fundamentals showed continued momentum, but as anticipated, profit was negatively impacted by the cost of commodity inputs. However, we see the year-over-year impact of this dynamic subsiding in the fourth quarter of fiscal 2012 and into fiscal 2013."

The company raised the lower end of its guidance resulting in a revised range of $3.15 to $3.20 for fiscal 2012 non-GAAP diluted earnings per share from continuing operations.

Q3 FY12 SUMMARY


Q3 FY12

Q3 FY11

Y/Y

Revenue

$26.9 billion

$26.1 billion

3%





Operating Earnings

$527 million

$447 million

18%

Non-GAAP Operating Earnings

$524 million

$493 million

6%





Earnings from Continuing Operations

$332 million

$250 million

33%

Non-GAAP Earnings from Continuing Operations

$327 million

$286 million

14%





Diluted EPS from Continuing Operations

$0.95

$0.71

34%

Non-GAAP Diluted EPS from Continuing Operations

$0.94

$0.81

16%

A reduction in the fair value of the P4 Healthcare acquisition earn-out liability positively impacted third-quarter fiscal 2012 GAAP operating earnings by $55 million and GAAP diluted EPS from continuing operations by $0.10 per share. Third-quarter fiscal 2012 GAAP and Non-GAAP diluted EPS from continuing operations benefited from a lower tax rate than the prior year's higher-than-usual tax rate.

SEGMENT RESULTS

Pharmaceutical segment

Revenue for the Pharmaceutical segment increased 3 percent to $24.5 billion, driven by growth from existing customers. Segment profit increased 9 percent to $446 million, due to the strong performance of generic programs including the impact of new and recently launched items.


Q3 FY12

Q3 FY11

Y/Y

Revenue

$24.5 billion

$23.8 billion

3%

Segment Profit

$446 million

$411 million

9%

Medical segment

Revenue for the Medical segment increased 8 percent to $2.4 billion, driven by growth from existing customers, including strong sales of preferred products. Segment profit declined 17 percent to $89 million, due to the anticipated negative impact of commodity price increases and increased information system expenses, primarily related to the launch of the company's Medical Business Transformation. The decline was partially offset by the positive margin impact of higher preferred products volume.


Q3 FY12

Q3 FY11

Y/Y

Revenue

$2.4 billion

$2.2 billion

8%

Segment Profit

$89 million

$108 million

(17)%

ADDITIONAL THIRD-QUARTER AND RECENT HIGHLIGHTS

  • Appointment of Donald M. Casey, Jr. as CEO of company's Medical segment
  • Completion of acquisition of Futuremed Healthcare Products Corp., a distributor of medical disposables and specialized equipment to the long-term care channel in Canada
  • Introduction of the Smart-Seal surgical mask, a new line of standard diagnostic procedure trays, and the industry's only half-folded format surgical glove packaging
  • Recognized as one of 2012 top 10 best companies for leaders by "Chief Executive" magazine
  • Named one of the "Top 50 Companies for Executive Women" by the National Association for Female Executives

CONFERENCE CALL

The company has scheduled a webcast and conference call for May 3 at 8:30 a.m. Eastern to discuss third-quarter results. To access the call and corresponding slide presentation, go to the Investors page at cardinalhealth.com. Participants accessing the presentation through the website will be asked to register and can do so prior to the call on the Investors page. Participants can also dial 224-357-2209 directly; no passcode or registration will be required.

Presentation slides and an audio replay will be archived on the website after the conclusion of the meeting. The audio replay will also be available until June 4 by dialing either 855-859-2056 or 404-537-3406.

UPCOMING WEBCASTED EVENTS

  • 2012 Deutsche Bank 37th Annual Health Care Conference on May 7 at 9:20 a.m. Eastern in Boston
  • Bank of America Merrill Lynch 2012 Health Care Conference on May 15 at 8:40 a.m. Pacific in Las Vegas
  • Goldman Sachs 33rd Annual Global Healthcare Conference on June 5 at 8:40 a.m. Pacific in Rancho Palos Verdes, Calif.
  • William Blair 32nd Annual Growth Stock Conference on June 14 at 8 a.m. Central in Chicago

At these events, Cardinal Health executives will discuss the company's diverse products and services, company performance and strategies for continued growth. To access more details and live webcasts of these events, go to the Investors page at cardinalhealth.com.

About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $103 billionhealth care services company that improves the cost-effectiveness of health care. As the business behind health care, Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products to more than 60,000 locations each day. The company is also a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company supports the growing diagnostic industry by supplying medical products to clinical laboratories and operating the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #19 on the Fortune 500, Cardinal Health employs more than 30,000 people worldwide. More information about the company may be found at cardinalhealth.com.


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