DUBLIN, Ohio, Nov. 2, 2015 /PRNewswire/ -- Cardinal Health today reported fiscal year 2016 first-quarter results, with revenue of $28.1 billion, an increase of 17 percent, and non-GAAP diluted earnings per share attributable to Cardinal Health (EPS) of $1.38, an increase of 38 percent. Non-GAAP operating earnings increased 30 percent to $737 million. On a GAAP basis, operating earnings increased 33 percent to $620 million, and diluted EPS increased 47 percent to $1.15.
“We are off to a very strong start to our fiscal 2016,” said George Barrett, chairman and chief executive officer of Cardinal Health. “We reported outstanding progress on both the top and bottom lines, reflecting strong execution and alignment with the needs of our customers in an evolving market. Our Pharmaceutical segment continued its momentum into the first quarter, and the Medical segment strengthened its position in strategically critical areas. Subsequent to the quarter end, we closed the Cordis acquisition. Our team did an outstanding job meeting our expected timeline for closing, positioning us to strengthen our offerings in the interventional cardiovascular space and reinforce our physician preference product strategy.”
Barrett noted that, “With this strong first quarter behind us and greater line of sight to certain drivers for the year, we are raising our fiscal 2016 non-GAAP diluted EPS guidance range to $5.15 to $5.35 from a prior range of $4.85 to $5.05. This new range represents an 18 to 22 percent growth rate compared to fiscal 2015.”
Q1 FY16 Summary
Q1 FY16 | Q1 FY15 | Y/Y | |||||||
Revenue | $ 28.1 | billion | $ 24.1 | billion | 17% | ||||
Operating earnings | $ 620 | million | $ 466 | million | 33% | ||||
Non-GAAP operating earnings | $ 737 | million | $ 566 | million | 30% | ||||
Net earnings attributable to Cardinal Health, Inc. | $ 383 | million | $ 266 | million | 44% | ||||
Non-GAAP net earnings attributable to Cardinal Health, Inc. | $ 458 | million | $ 340 | million | 35% | ||||
Diluted EPS attributable to Cardinal Health, Inc. | $ 1.15 | $ 0.78 | 47% | ||||||
Non-GAAP diluted EPS attributable to Cardinal Health, Inc. | $ 1.38 | $ 1.00 | 38% | ||||||
SEGMENT RESULTS
Pharmaceutical Segment
First-quarter revenue for the Pharmaceutical segment increased 19 percent to $25.1 billion due to growth from existing and new customers and, to a lesser extent, contributions from acquisitions. Segment profit for the quarter increased 46 percent to $657 million due to strong performance under the company’s generics program, net growth from existing and new customers, and contribution from acquisitions.
Q1 FY16 | Q1 FY15 | Y/Y | |||||||
Revenue | $ 25.1 | billion | $ 21.2 | billion | 19% | ||||
Segment profit | $ 657 | million | $ 451 | million | 46% | ||||
Medical Segment
First-quarter revenue for the Medical segment increased 2 percent to $2.9 billion due to growth in Cardinal Health-branded products and the Cardinal Health at Home platform. Although segment profit for the quarter decreased, the performance was better than expected. The 11 percent decline to $101 million was primarily due to the company’s Canada business, including some unfavorable impact of foreign currency. Included in the prior year results for Canada is a previously disclosed, one-time benefit resulting from winding down the CareFusion contract.
Q1 FY16 | Q1 FY15 | Y/Y | |||||||
Revenue | $ 2.9 | billion | $ 2.9 | billion | 2% | ||||
Segment profit | $ 101 | million | $ 113 | million | (11)% | ||||
ADDITIONAL FIRST-QUARTER AND RECENT HIGHLIGHTS
- Completed acquisition of Cordis, a worldwide leader in cardiology and endovascular devices, on Oct. 2
- Acquired The Harvard Drug Group, a distributor of generic pharmaceuticals, over-the-counter medications and related products to retail, institutional and alternate care customers
- Expanded the company’s integrated suite of services and strengthened its position in the post-acute space with the acquisitions of OutcomesMTM, which delivers personalized medication therapy management services, and naviHealth, a partner to health plans, health systems, physicians and post-acute providers and a leading convener for health systems in the Centers for Medicare and Medicaid Services’ Bundled Payments for Care Improvement initiative
- Introduced the Hospital Quality at Home brand, a new line of hospital-quality products available in the retail setting to help loved ones and caregivers of patients who are transitioning care from the hospital to home
- Elected Nancy Killefer, retired senior partner of the Public Sector Practice of McKinsey & Company Inc. and former assistant secretary for Management, chief financial officer and chief operating officer of the United States Department of the Treasury, to the board of directors
- Donated nearly $1 million via the Cardinal Health Foundation’s E3 program to help non-profit health care institutions improve the effectiveness, efficiency and excellence of patient care and more than $1 million to 10 universities through the company’s nationwide pharmacy scholarship program
CONFERENCE CALL
Cardinal Health will host a webcast and conference call today at 8:30 a.m. Eastern to discuss first-quarter results. To access the call and corresponding slide presentation, go to ir.cardinalhealth.com. Alternatively, participants can call 913.312.1411 and use passcode 727112.
There is no pre-registration for the call. Participants are advised to dial into the call at least 10 minutes prior to the start time.
Presentation slides and an audio replay will be archived on the Cardinal Health website after the conclusion of the meeting. The audio replay will also be available until Nov. 9 by dialing 719.457.0820 and using passcode 727112.
UPCOMING EVENTS
Cardinal Health will be holding its Annual Shareholder Meeting at 8 a.m. on Wednesday, Nov. 4. In addition, the company will host an invitation-only Investor Event on Nov. 19. Both events will be live-webcast, with replays available, at ir.cardinalhealth.com/events-and-presentations.
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. Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers, clinical laboratories 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 and services to more than 100,000 locations each day and is also the industry-leading direct-to-home medical supplies distributor. The company is a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company operates the nation’s largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #26 on the Fortune 500, Cardinal Health employs more than 36,000 people worldwide. More information about the company may be found at www.cardinalhealth.com and @CardinalHealth on Twitter.
1 | See the attached tables for definitions of the non-GAAP financial measures presented in this news release and reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures. |
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