Express Scripts Announces 2015 4th Quarter and Full Year Results; Narrows 2016 Guidance Range: Raises Mid-Point

ST. LOUIS, Feb. 16, 2016 /PRNewswire/ -- Express Scripts Holding Company (Nasdaq: ESRX) announced 2015 fourth quarter and full year net income of $773.5 million and $2,476.4 million, respectively, or $1.13 and $3.56 per diluted share. 2015 fourth quarter and full year adjusted earnings per diluted share, as detailed in Table 4, was $1.56 and $5.53, respectively.¹

“Our business model of alignment, developed 30 years ago, has never been more relevant than it is today,” said George Paz, Chairman and CEO. “Our job is to continue to take advantage of the opportunities and uniquely help clients withstand the constant challenges in the healthcare marketplace by taking bold actions to effectively balance pharmacy cost and care. Our focused alignment continues to control client costs, improve patient care and drive long term value to our shareholders.”

“Building upon our strongest retention year ever, an outstanding 1/1/16 performance and the industry’s deepest set of cost-saving solutions, Express Scripts has momentum that maintains our confidence in our 2016 guidance and justifies our excitement about our future,” said Tim Wentworth, President. “Financially and operationally, we are well positioned to drive growth and deliver value to clients and shareholders.”

Fourth Quarter and Full Year 2015 Review

The following compares fourth quarter 2015 and 2014 operating results:

• Adjusted claims of 341.5 million, up 1% See Table 1
• Adjusted EBITDA of $1,932.0 million, up 4% See Table 3
• Adjusted EBITDA per adjusted claim of $5.66, up 3% See Table 3
• GAAP net income of $773.5 million, up 33%
• Adjusted net income of $1,063.3 million, up 4% See Tables 5 and 5A
• GAAP diluted earnings per share of $1.13, up 43%
• Adjusted diluted earnings per share of $1.56, up 12% - See Table 4
• Net cash flow provided by operating activities of $2,874.0 million, down 2%

The following compares full year 2015 and 2014 operating results:

• Adjusted claims of 1,298.6 million, down 1% See Table 1
• Adjusted EBITDA of $7,046.9 million, up 4% See Table 3
• Adjusted EBITDA per adjusted claim of $5.43, up 5% See Table 3
• GAAP net income of $2,476.4 million, up 23%
• Adjusted net income of $3,843.3 million, up 4% See Tables 5 and 5A
• GAAP diluted earnings per share of $3.56, up 35%
• Adjusted diluted earnings per share of $5.53, up 13% - See Table 4
• Net cash flow provided by operating activities of $4,848.3 million, up 7%

In January 2016, the Company settled the accelerated share repurchase agreement announced in May 2015, and received 9.1 million additional shares, resulting in a total of 64.2 million shares repurchased under the agreement.

2016 Guidance

The Company narrowed its adjusted earnings per diluted share guidance for 2016 from a range of $6.08 to $6.28 to a range of $6.10 to $6.28, which raises the mid-point to $6.19. The guidance range represents growth of 10% to 14% over 2015 see table below. Additional details on this guidance can be found in Table 6 including items excluded from this range.

The following table compares the 2016 guidance to 2015 adjusted results:

The Company expects the following for the first quarter of 2016:

Consistent with 2015, the Company expects revenues related to a large client contract will be realized in the second quarter due to the structure of the contract.

About Express Scripts

Express Scripts puts medicine within reach of tens of millions of people by aligning with plan sponsors, taking bold action and delivering patient-centered care to make better health more affordable and accessible.

Headquartered in St. Louis, Express Scripts provides integrated pharmacy benefit management services, including network-pharmacy claims processing, home delivery pharmacy care, specialty pharmacy care, specialty benefit management, benefit-design consultation, drug utilization review, formulary management, and medical and drug data analysis services. Express Scripts also distributes a full range of biopharmaceutical products and provides extensive cost-management and patient-care services.

For more information, visit Lab.Express-Scripts.com or follow @ExpressScripts on Twitter.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements, including, but not limited to, our 2016 guidance and our statements related to the Company’s plans, objectives, expectations (financial and otherwise) or intentions. Actual results may differ significantly from those projected or suggested in any forward-looking statements. Factors that may impact these forward-looking statements can be found in the Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on February 16, 2016. A copy of this document can be found at the Investor Information section of Express Scripts’ web site at http://www.express-scripts.com/corporate.

We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.