ST. LOUIS, Feb. 23, 2015 /PRNewswire/ -- Express Scripts Holding Company (Nasdaq: ESRX) announced 2014 fourth quarter and full year net income attributable to Express Scripts stockholders of $581.8 million and $2,007.6 million, or $0.79 and $2.64 per diluted share. Adjusted earnings per diluted share, as detailed in Table 4, were $1.39 and $4.88 for the fourth quarter and full year, respectively. 1
"While we are proud of our heritage and the work we have done for clients, we are even more excited about the future we have ahead of us," stated George Paz, chairman and chief executive officer. "We believe our growth and focused acquisition approach has positioned us uniquely in the healthcare services landscape to improve health outcomes and lower cost in an aligned model that keeps our clients and patients first, but also returns exceptional results to our shareholders."
"We believe no one drives market change like we do, and no one matches our focus on serving patients and plan sponsors," stated Tim Wentworth, president. "That combination is unique and creates significant value for our clients."
Fourth Quarter and Full Year 2014 Review
The roll-off of UnitedHealth Group ("UNH") claims was completed by the end of 2013, as expected. The following tables compare the fourth quarter and full year 2014 and 2013 operating results from continuing operations excluding and including UNH (also see Tables 7 and 8):
(from continuing operations) | Q4 2014 (in millions, | Q4 2014 Change From Q4 2013 | |
Excluding | Including | ||
Total adjusted claims (see Table 1) | 337.0 | (4%) | (7%) |
Adjusted EBITDA (see Table 3) | $ 1,857.1 | 13% | 11% |
Adjusted EBITDA, per adjusted claim (see Table 3) | $ 5.51 | 18% | 19% |
GAAP net income | $ 581.8 | 17% | 13% |
Adjusted net income (see Table 5) | $ 1,023.1 | 17% | 14% |
GAAP diluted earnings per share | $ 0.79 | 27% | 23% |
Adjusted earnings per diluted share (see Table 4) | $ 1.39 | 26% | 24% |
Fourth quarter net cash flow provided by operating activities was $2,924.4 million and the Company repurchased 10.1 million shares of common stock for $819.5 million during the quarter.
(from continuing operations) | 2014 (in millions, | 2014 Change From 2013 | |
Excluding | Including | ||
Total adjusted claims (see Table 1) | 1,309.8 | (6%) | (11%) |
Adjusted EBITDA (see Table 3) | $ 6,802.5 | 6% | 2% |
Adjusted EBITDA, per adjusted claim (see Table 3) | $ 5.19 | 13% | 15% |
GAAP net income | $ 2,007.6 | 16% | 6% |
Adjusted net income (see Table 5) | $ 3,704.2 | 9% | 4% |
GAAP diluted earnings per share | $ 2.64 | 25% | 14% |
Adjusted earnings per diluted share (see Table 4) | $ 4.88 | 18% | 13% |
Full year net cash flow provided by operating activities was $4,549.0 million and the Company repurchased 62.1 million shares of common stock for $4,642.9 million during the year, leaving 83.7 million shares available under the current repurchase program.
2015 Guidance
The Company anticipates achieving adjusted earnings per diluted share for 2015 in the range of $5.35 to $5.49, representing growth of 10% to 13% over 2014 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 2015 guidance to 2014 adjusted results:
2014 (in millions, | Table 6 2015 Range (in millions, | Change from | ||
Total adjusted claims | Table 1 | 1,309.8 | 1,280 to 1,320 | (2%) to 1% |
Adjusted SG&A | Table 2 | $ 2,067.2 | $1,925 to $2,000 | (7%) to (3%) |
Adjusted EBITDA | Table 3 | $ 6,802.5 | $6,925 to $7,125 | 2% to 5% |
Adjusted EBITDA, per adjusted claim | Table 3 | $ 5.19 | $5.25 to $5.45 | 1% to 5% |
Diluted weighted average shares | 759.1 | 695 to 715 | (8%) to (6%) | |
Adjusted earnings per diluted share | Table 4 | $ 4.88 | $5.35 to $5.49 | 10% to 13% |
The Company expects the following for the first quarter of 2015:
Estimated Quarter Ending March 31, 2015 (in millions, except per share data) | Year Over Year Change | |
Adjusted claims | 295 to 325 | (8%) to 2% |
Adjusted earnings per diluted share | $1.07 to $1.11 | 8% to 12% |
Consistent with 2014, the Company expects an incremental portion of the earnings related to a large client contract will be realized in the second quarter due to the structure of the contract.
John Parker Retires from Express Scripts Board
Express Scripts also announced that John O. Parker, Jr. retired from its Board of Directors on February 18, 2015, primarily due to health reasons. Mr. Parker has been a member of the Board of Directors since July, 2001. "We greatly appreciate John's service to the Company during his tenure on the Board of Directors. He has been an invaluable resource, a key advisor and a friend of Express Scripts and management. His contributions will be greatly missed," stated George Paz, chairman and chief executive officer.
About Express Scripts
Express Scripts manages more than one billion prescriptions each year for tens of millions of patients. On behalf of our clients employers, health plans, unions and government health programs we make use of prescription drugs safer and more affordable. Express Scripts uniquely combines three capabilities behavioral sciences, clinical specialization and actionable data to create Health Decision Science®, our innovative approach to help individuals make the best benefit choices, drug choices, pharmacy choices and health choices. Better decisions mean healthier outcomes.
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