Date:4/29/2008

n as indicators of its ability to generate cash from its reported operating results. These measurements are used in concert with net income and cash flows from operations, which measure actual cash generated in the period. In addition, Medco believes that EBITDA and EBITDA per adjusted prescription are supplemental measurement tools used by analysts and investors to help evaluate overall operating performance and the ability to incur and service debt and make capital expenditures. EBITDA does not represent funds available for Medco's discretionary use and is not intended to represent or to be used as a substitute for net income or cash flows from operations data as measured under U.S. Generally Accepted Accounting Principles (GAAP). The items excluded from EBITDA, but included in the calculation of reported net income, are significant components of the consolidated statements of income and must be considered in performing a comprehensive assessment of overall financial performance. EBITDA, and the associated year-to-year trends, should not be considered in isolation. Medco's calculation of EBITDA may not be consistent with calculations of EBITDA used by other companies.

EBITDA per adjusted prescription is calculated by dividing EBITDA by the adjusted prescription volume for the period. This measure is used as an indicator of EBITDA performance on a per-unit basis, providing insight into the cash-generating potential of each prescription. EBITDA, and as a result, EBITDA per adjusted prescription, is affected by the changes in prescription volumes between retail and mail order, the relative representation of brand- name, generic and specialty drugs, as well as the level of efficiency in the business. Adjusted prescription volume equals the majority of mail-order prescriptions multiplied by 3, plus retail prescriptions. These mail-order prescriptions are multiplied by 3 to adjust for the fact that they include approximately 3 times the amount of product days sup
'/>"/>

SOURCE Medco Health Solutions, Inc. Copyright©2008 PR Newswire. All rights reserved

0 GOOD

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Related medicine news :

1. Medco CEO to Present at the Morgan Stanley Global Healthcare Unplugged Conference
2. Medco, UnitedHealth Group Announce Pharmacy Services Agreement
3. PATHFAST(R): Rapid Whole Blood Immunoassay Analyzer from Polymedco
4. Medco Acquires Majority Interest in Europa Apotheek; Delivering Innovation, Clinical Quality and Lower-Cost Solutions to Fast-Growing German Health Care Market
5. Medco Partners to Develop Patient-Safety System for Prescription Drugs in Sweden
6. MedCom Announces Card Activation Wins Significant Court Ruling
7. MedCom Announces Court Rules Card Activation Technologies Patent Is Valid
8. Medco Breaks Ground For Worlds Largest Automated Pharmacy
9. Medco to Present at Cowen and Company and Lehman Brothers Health Care Conferences
10. Medco Tops Fortunes List of Americas Most Admired Companies in its Industry
11. MedCom USA Signs Southwood Medical Marketing to Distribute MedCom System