Express Scripts Inc. Reports Strong Fourth Quarter and Full Year 2010 Results

ST. LOUIS, Feb. 16, 2011 /PRNewswire/ -- Express Scripts, Inc. (Nasdaq: ESRX) announced 2010 fourth quarter and full year net income from continuing operations of $329.6 million and $1,204.6 million, or $0.62 and $2.21 per diluted share, respectively. Adjusted earnings per share, as detailed in Table 4 were $0.71 and $2.50 per diluted share for the fourth quarter and full year, respectively.

“2010 was a transformational year for Express Scripts,” stated George Paz, chief executive officer and chairman. “During the year, we completed the migration of NextRx membership to our systems while continuing to serve existing clients and patients. In the first quarter, we will decommission the NextRx systems and complete the rationalization of our operational footprint. Our strong fourth quarter and full year results demonstrate our ability to successfully execute our business model of alignment that optimizes health outcomes while driving out waste.”

Fourth Quarter 2010 Review (2010 data reflected on an adjusted basis. See Tables 2 and 3)

• Total adjusted claims of 191.3 million, up 24% from 2009
• Gross profit of $833.7 million, up 18% from 2009
• EBITDA of $658.9 million, up 35% from 2009
• EBITDA per adjusted claim of $3.44, up 9% from 2009

Full Year 2010 Review (2010 data reflected on an adjusted basis. See Tables 2 and 3)

• Total adjusted claims of 753.9 million, up 42% from 2009
• Gross profit of $3,136.7 million, up 29% from 2009
• EBITDA of $2,408.2 million, up 42% from 2009
• EBITDA per adjusted claim of $3.19, consistent with 2009
• Year to date net cash flow from operations of $2,117.4 million, up 20% from 2009
• Repurchased 26.9 million shares for $1,276.2 million

“As we look to the future, we are well-positioned to take advantage of growth opportunities. Our unique value proposition and innovative approach to management of the pharmacy benefit ensures that we will continue to lower overall costs and improve healthcare outcomes for plan sponsors and patients, and deliver superior returns to stockholders,” said Paz.

2011 Guidance

The Company reaffirms its previously provided 2011 adjusted earnings per diluted share guidance in the range of $3.15 to $3.25. Adjusted earnings per share excludes items as detailed in Table 5.

About Express Scripts

Express Scripts, Inc., one of the largest pharmacy benefit management companies in North America, is leading the way toward creating better health and value for patients through Consumerology®, the advanced application of the behavioral sciences to healthcare. This approach is helping millions of members realize greater healthcare outcomes and lowering cost by assisting in influencing their behavior. Headquartered in St. Louis, Express Scripts provides integrated PBM services including network-pharmacy claims processing, home delivery services, specialty benefit management, benefit-design consultation, drug-utilization review, formulary management, and medical and drug data analysis services. The company also distributes a full range of biopharmaceutical products and provides extensive cost-management and patient-care services. More information can be found at http://www.express-scripts.com/ and http://www.consumerology.com/.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements, including, but not limited to, 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 in the Company’s Form 10-K filed with the SEC on February 16, 2011. A copy of this form can be found at the Investor Relations section of Express Scripts’ web site at http://www.express-scripts.com.

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.