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CVS Caremark Reports Third Quarter Results
Date:11/3/2011

WOONSOCKET, R.I., Nov. 3, 2011 /PRNewswire/ -- CVS Caremark Corporation (NYSE: CVS), today announced revenues, operating profit, and net income for the three months ended September 30, 2011.

(Logo: http://photos.prnewswire.com/prnh/20090226/NE75914LOGO)

Third Quarter Year-Over-Year Highlights:

  • Net revenues increased 12.5% to a record $26.7 billion
  • Pharmacy Services segment revenues increased 25.8%
  • Retail Pharmacy segment revenues increased 3.8%, with same stores sales up 2.3%
  • Adjusted EPS from continuing operations of $0.70
  • GAAP diluted EPS from continuing operations of $0.65

  • Year-to-Date Highlights:

  • Generated free cash flow of $3.9 billion
  • Generated cash flow from operations of $5.0 billion

  • Guidance:

  • Company narrows full-year 2011 EPS guidance range to higher end of previous range
  • Full-year adjusted EPS from continuing operations revised to $2.77 - $2.81
  • Full-year GAAP diluted EPS from continuing operations revised to $2.57 - $2.61
  • Company reconfirms full-year free cash flow in the range of $4.0 billion - $4.2 billion
  • Company reconfirms full-year cash flow from operations in the range of $5.5 billion - $5.6 billion

  • RevenuesNet revenues for the three months ended September 30, 2011 increased $3.0 billion to $26.7 billion, up from $23.7 billion during the three months ended September 30, 2010.

    Revenues in the Pharmacy Services segment increased 25.8% to $14.8 billion in the three months ended September 30, 2011. This increase was primarily associated with the addition of a previously-announced, long-term contract with Aetna, Inc., as well as new activity resulting from our acquisition of the Medicare prescription drug business of Universal American Corp. ("UAM Medicare Part D Business") in the second quarter of 2011. Pharmacy network claims processed during the three months ended September 30, 2011 increased 39.8% to 179.2 million, compared to 128.2 million in the prior year period. The increase in pharmacy network claims was primarily due to the Company's recent acquisition of the UAM Medicare Part D Business, the addition of the Aetna contract, and an increase in covered lives in our existing Medicare Part D Business. Mail choice claims processed during the three months ended September 30, 2011 increased approximately 8.0% to 17.5 million compared to 16.2 million in the prior year period. The increase in the mail choice claim volume was also driven by the addition of the Aetna contract.

    Revenues in the Retail Pharmacy segment increased 3.8% to $14.7 billion in the three months ended September 30, 2011. Same store sales increased 2.3% over the prior year period. Pharmacy same store sales rose 2.4% and include a positive impact from Maintenance Choice™ of approximately 140 basis points on a net basis (i.e., a positive impact of approximately 170 basis points on a gross basis, net of approximately 30 basis points from the conversion of 30-day prescriptions at retail to 90-day prescriptions under the Maintenance Choice program). Pharmacy same store sales were negatively impacted by approximately 200 basis points due to recent generic introductions. Front store same store sales increased 2.0% in the three months ended September 30, 2011.

    Income from Continuing Operations Attributable to CVS CaremarkIncome from continuing operations attributable to CVS Caremark for the three months ended September 30, 2011, increased $52 million to $868 million, compared with $816 million during the three months ended September 30, 2010. The increase in income from continuing operations was primarily driven by improved operating profit in the Retail Pharmacy segment. The effective income tax rate during the quarter was 39.3% compared to 39.2% in the prior year period. Adjusted earnings per share from continuing operations attributable to CVS Caremark ("Adjusted EPS") for the three months ended September 30, 2011 and 2010 was $0.70 and $0.64, respectively. Adjusted EPS excludes $118 million and $108 million of intangible asset amortization related to acquisition activity in the three months ended September 30, 2011 and 2010, respectively. GAAP earnings per diluted share from continuing operations attributable to CVS Caremark for the three months ended September 30, 2011 and 2010 was $0.65 and $0.60, respectively.

    Larry Merlo, President and Chief Executive Officer, stated, "I'm very pleased with our third quarter results, which were two cents above the high end of our guidance range. This outperformance was primarily driven by better-than-expected performance in our PBM as well as accretion from our recently-executed $1 billion accelerated share repurchase. Between dividends and share repurchases, we have returned over $3 billion to our shareholders year to date and enhancing shareholder returns remains a high priority for us."

    Mr. Merlo continued, "Our retail drugstore business continues to grow and gain share while our PBM continues to demonstrate success in the selling season, with strong client retention and significant new business. I fully expect the Company to deliver substantial free cash flow for the foreseeable future, which should enable us to continue to return significant value to our shareholders.

    Discontinued Operations On September 26, 2011, the Company entered into an agreement with AmerisourceBergen Corporation ("ABC") to sell its TheraCom, L.L.C. ("TheraCom") subsidiary for $250 million. On November 1, 2011, the Company completed the sale of TheraCom to ABC. TheraCom is a provider of commercialization support services to the biotech and pharmaceutical industry. The TheraCom business has historically been part of the Company's Pharmacy Services segment. The results of the TheraCom business are presented as discontinued operations and have been excluded from both continuing operations and segment results for all periods presented.

    In connection with certain business dispositions completed between 1991 and 1997, the Company retained guarantees on store lease obligations for a number of former subsidiaries, including Linen 'n Things which filed for bankruptcy in 2008. The Company's income (loss) from discontinued operations includes lease-related costs which the Company believes it will likely be required to satisfy pursuant to its Linens 'n Things lease guarantees.

    Real Estate ProgramDuring the three months ended September 30, 2011, the Company opened 39 new retail drugstores and closed one retail drugstore. In addition, the Company relocated 14 retail drugstores. As of September 30, 2011, the Company operated 7,384 locations, included in which were 7,304 retail drugstores, 31 retail specialty pharmacy stores, 32 apothecary pharmacy stores, 13 specialty mail order pharmacies and four mail order pharmacies in 44 states, the District of Columbia and Puerto Rico.

    GuidanceTaking into account the strong underlying results year to date as well as solid expectations for the remainder of the year, the Company narrowed its earnings per share guidance range for the full year 2011 to the higher end of the previous range. The revised guidance includes the accretive impact of the recently-executed accelerated share repurchase as well as the dilutive impact from the reclassification of the TheraCom business as discontinued operations for the full year. The Company now expects adjusted EPS from continuing operations to be in the range of $2.77 to $2.81 and GAAP earnings per share from continuing operations to be in the range of $2.57 to $2.61, compared to its previous guidance range of $2.75 to $2.81, and $2.55 to $2.61, respectively. The Company also reconfirmed that it expects to generate cash flow from operations in the range of $5.5 billion to $5.6 billion and free cash flow in the range of $4.0 billion to $4.2 billion for the full year 2011.

    Teleconference and WebcastThe Company will be holding a conference call today for the investment community at 8:30 am (EDT) to discuss its quarterly results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Caremark website at http://info.cvscaremark.com/investors. This webcast will be archived and available on the website for a one-year period following the conference call.

    About the CompanyCVS Caremark is the largest pharmacy health care provider in the United States with integrated offerings across the entire spectrum of pharmacy care. We are uniquely positioned to engage plan members in behaviors that improve their health and to lower overall health care costs for health plans, plan sponsors and their members. CVS Caremark is a market leader in mail order pharmacy, retail pharmacy, specialty pharmacy, and retail clinics, and is a leading provider of Medicare Part D Prescription Drug Plans. As one of the country's largest pharmacy benefits managers (PBMs), we provide access to a network of approximately 65,000 pharmacies, including more than 7,300 CVS/pharmacy® stores that provide unparalleled service and capabilities. Our clinical offerings include our signature Pharmacy Advisor™ program as well as innovative generic step therapy and genetic benefit management programs that promote more cost effective and healthier behaviors and improve health care outcomes. General information about CVS Caremark is available through the Company's website at http://info.cvscaremark.com.

    Forward-Looking StatementsThis press release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company strongly recommends that you become familiar with the specific risks and uncertainties outlined under the Risk Factors section in our Annual Report on Form 10-K for the year ended December 31, 2010 and under the section entitled "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Quarterly Report on Form 10-Q.

    - Tables Follow -CVS CAREMARK CORPORATIONCondensed Consolidated Statements of Income(Unaudited)Three Months EndedNine Months EndedSeptember 30, September 30,In millions, except per share amounts

    2011201020112010Net revenues

    $
    26,674$   23,711$
    78,783$
    71,189Cost of revenues

    21,49618,69663,77756,424Gross profit

    5,1785,01515,00614,765Operating expenses

    3,5943,53710,63310,389Operating profit

    1,5841,4784,3734,376Interest expense, net

    155137437399Income before income tax provision

    1,4291,3413,9363,977Income tax provision

    5625261,5471,575Income from continuing operations

    8678152,3892,402Income (loss) from discontinued operations, net of tax

    —(7)5(3)Net income

    8678082,3942,399Net loss attributable to noncontrolling interest

    1132Net income attributable to CVS Caremark

    $
    868$
    809$
    2,397$
    2,401Basic earnings per common share: Income from continuing operations attributable to CVS Caremark

    $
    .65$
    .60$
    .77$
    .76Income (loss) from discontinued operations attributable to CVS Caremark

    —(0.01)0.01(0.01)Net income attributable to CVS Caremark

    $
    .65$
    .59$
    .78$
    .75Weighted average basic common shares outstanding

    1,3321,3601,3501,368Diluted earnings per common share:Income from continuing operations attributable to CVS Caremark

    $
    .65$
    .60$
    .76$
    .75Income (loss) from discontinued operations attributable to CVS Caremark

    —(0.01)0.01(0.01)Net income attributable to CVS Caremark

    $
    .65$
    .59$
    .77$
    .74Weighted average diluted common shares outstanding

    1,3401,3681,3561,378Dividends declared per common share

    $
    .1250$   0.0875$  0.3750$   0.2625CVS CAREMARK CORPORATIONCondensed Consolidated Balance Sheets(Unaudited)In millions, except per share amounts

    September 30,
    2011December 31,
    2010Assets:Cash and cash equivalents

    $  1,707$  1,427Short-term investments

    54Accounts receivable, net

    5,9014,925Inventories

    10,37910,695Deferred income taxes

    444511Other current assets

    502144Total current assets

    18,93817,706Property and equipment, net

    8,6428,322Goodwill

    26,50625,669Intangible assets, net

    9,9479,784Other assets

    1,218688Total assets

    $  65,251$  62,169Liabilities:Accounts payable

    $  4,387$  4,026Claims and discounts payable

    3,1032,569Accrued expenses

    4,2593,070Short-term debt

    530300Current portion of long-term debt

    711,105Total current liabilities

    12,35011,070Long-term debt

    10,1678,652Deferred income taxes

    3,8683,655Other long-term liabilities

    1,3481,058Commitments and contingencies Redeemable noncontrolling interest

    3134Shareholders' equity:Preferred stock, par value $0.01: 0.1 shares authorized; none issued oroutstanding

    ——Common stock, par value $0.01: 3,200 shares authorized; 1,636 sharesissued and 1,308 shares outstanding at September 30, 2011 and 1,624shares issued and 1,363 shares outstanding at December 31, 2010

    1616Treasury stock, at cost: 326 shares at September 30, 2011 and 259shares at December 31, 2010

    (11,500)(9,030)Shares held in trust: 2 shares at September 30, 2011 and December 31, 2010

    (56)(56)Capital surplus

    27,98727,610Retained earnings

    21,19219,303Accumulated other comprehensive loss

    (152)(143)Total shareholders' equity

    37,48737,700Total liabilities and shareholders' equity

    $  65,251$  62,169CVS CAREMARK CORPORATIONCondensed Consolidated Statements of Cash Flows(Unaudited)Nine Months EndedSeptember 30, In millions

    20112010Cash flows from operating activities:Cash receipts from customers

    $
    72,875$
    8,524Cash paid for inventory and prescriptions dispensed by retail network pharmacies

    (55,625)(52,953)Cash paid to other suppliers and employees

    (10,092)(10,346)Interest received

    33Interest paid

    (454)(439)Income taxes paid

    (1,672)(1,785)Net cash provided by operating activities

    5,0353,004Cash flows from investing activities:Purchases of property and equipment

    (1,168)(1,379)Proceeds from sale-leaseback transactions

    11124Proceeds from sale of property and equipment

    124Acquisitions (net of cash acquired) and other investments

    (1,406)(158)Purchase of short-term investments

    (3)—Maturity of short-term investments

    21Net cash used in investing activities

    (2,563)(1,388)Cash flows from financing activities:Increase in short-term debt

    2301,069Proceeds from issuance of long-term debt

    1,463991Repayments of long-term debt

    (1,149)(2,102)Dividends paid

    (508)(360)Derivative settlements

    (19)(5)Proceeds from exercise of stock options

    341171Excess tax benefits from stock-based compensation

    1213Repurchase of common stock

    (2,553)(1,500)Other

    (9)—Net cash used in financing activities

    (2,192)(1,723)Net increase (decrease) in cash and cash equivalents

    280(107)Cash and cash equivalents at beginning of period

    1,4271,086Cash and cash equivalents at end of period

    $  1,707$
    979Reconciliation of net income to net cash provided by operating activities:Net income

    $  2,394$
    2,399Adjustments required to reconcile net income to net cash provided by operating activities:Depreciation and amortization

    1,1721,096Stock-based compensation

    100112Deferred income taxes and other non-cash items

    13443Change in operating assets and liabilities, net of effects of acquisitions:Accounts receivable, net

    (479)346Inventories

    316(242)Other current assets

    (173)(41)Other assets

    (52)11Accounts payable and claims and discounts payable

    716(112)Accrued expenses

    980(567)Other long-term liabilities

    (73)(41)Net cash provided by operating activities

    $  5,035$
    3,004Adjusted Earnings Per Share(Unaudited)For internal comparisons, management finds it useful to assess year-to-year performance by adjusting diluted earnings per share for amortization, which primarily relates to acquisition activities.The Company defines adjusted earnings per share as income before income tax provision plus amortization, less adjusted income tax provision, plus net loss attributable to noncontrolling interest divided by the weighted average diluted common shares outstanding.The following is a reconciliation of income before income tax provision to adjusted earnings per share:Three Months EndedNine Months EndedSeptember 30, September 30,In millions, except per share amounts

    20112010(2)20112010(2)Income before income tax provision

    $  1,429$
    ,341$  3,936$
    3,977Amortization

    118108338319Adjusted income before income tax provision

    1,5471,4494,2744,296Adjusted income tax provision(1)

    6085681,6791,701Adjusted income from continuing operations

    9398812,5952,595Net loss attributable to noncontrolling interest

    1132Adjusted income from continuing operations attributable to CVS Caremark

    $
    940$
    882$
    2,598$
    2,597Weighted average diluted common shares outstanding

    1,3401,3681,3561,378Adjusted earnings per share from continuing operations attributable to CVS Caremark

    $
    .70$
    .64$
    .91$
    .89(1) The adjusted income tax provision is computed using the effective income tax rate from the condensed consolidated statement of income.

    (2) The adjusted results for the three and nine months ended September 30, 2010 have been revised to reflect the results of TheraCom as discontinued operations. Free Cash Flow(Unaudited)The Company defines free cash flow as net cash provided by operating activities less net additions to properties and equipment (i.e., additions to property and equipment plus proceeds from sale-leaseback transactions).The following is a reconciliation of net cash provided by operating activities to free cash flow:Nine Months EndedSeptember 30,In millions20112010Net cash provided by operating activities$  5,035$
    3,004Subtract:  Additions to property and equipment(1,168)(1,379)Add:  Proceeds from sale-leaseback transactions11124Free cash flow $
    3,878$
    ,749Supplemental Information(Unaudited)The Company evaluates its Pharmacy Services and Retail Pharmacy segment performance based on net revenue, gross profit and operating profit before the effect of nonrecurring charges and gains and certain intersegment activities. The Company evaluates the performance of its Corporate segment based on operating expenses before the effect of nonrecurring charges and gains and certain intersegment activities. The following is a reconciliation of the Company's segments to the accompanying consolidated financial statements:In millions

    Pharmacy
    Services
    Segment(1)Retail
    Pharmacy
    SegmentCorporate  
    SegmentIntersegment
    Eliminations(2)Consolidated
    TotalsThree Months EndedSeptember 30, 2011:Net revenues

    $
    4,798$
    4,693$
    --$
    (2,817)$
    26,674Gross profit

    9144,306--(42)5,178Operating profit (loss)

    6571,123(154)(42)1,584September 30, 2010(3):Net revenues

    11,76214,159--(2,210)23,711Gross profit

    8734,181--(39)5,015Operating profit (loss)

    6461,039(168)(39)1,478Nine Months EndedSeptember 30, 2011:Net revenues

    43,00044,106--(8,323)78,783Gross profit

    2,26312,860--(117)15,006Operating profit (loss)

    1,4963,459(465)(117)4,373September 30, 2010(3):Net revenues

    35,15142,448--(6,410)71,189Gross profit

    2,46012,397--(92)14,765Operating profit (loss)

    1,7633,164(459)(92)4,376(1) Net revenues of the Pharmacy Services segment include approximately $1.9 billion and $1.6 billion of retail co-payments for the three months ended September 30, 2011 and 2010, respectively, as well as $6.0 billion and $5.0 billion of retail co-payments for the nine months ended September 30, 2011 and 2010, respectively.

    (2) Intersegment eliminations relate to two types of transactions: (i) Intersegment revenues that occur when Pharmacy Services segment customers use Retail Pharmacy segment stores to purchase covered products. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue on a standalone basis, and (ii) Intersegment revenues, gross profit and operating profit that occur when Pharmacy Services segment customers, through the Company's intersegment activities (such as the Maintenance Choice™ program), elect to pick-up their maintenance prescriptions at Retail Pharmacy segment stores instead of receiving them through the mail. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue, gross profit and operating profit on a standalone basis. As a result, both the Pharmacy Services and the Retail Pharmacy segments include the following results associated with this activity: net revenues of $657 million and $489 million for the three months ended September 30, 2011 and 2010, respectively, and $1.8 billion and $1.3 billion for the nine months ended September 30, 2011 and 2010, respectively; gross profit and operating profit of $42 million and $39 million for the three months ended September 30, 2011 and 2010, respectively, and $117 million and $92 million for the nine months ended September 30, 2011 and 2010, respectively.

    (3) The results of the Pharmacy Services segment for the three and nine months ended September 30, 2010 have been revised to reflect the results of TheraCom as discontinued operations. Supplemental Information(Unaudited)Pharmacy Services SegmentThe following table summarizes the Pharmacy Services segment's performance for the respective periods:Three Months EndedNine Months EndedSeptember 30,September 30,In millions

    20112010(4)20112010(4)Net revenues

    $ 14,798$ 11,762$ 43,000$   35,151Gross profit

    9148732,2632,460Gross profit % of net revenues

    6.2%7.4%5.3%7.0%Operating expenses

    257227767697Operating expense % of net revenues

    1.7%1.9%1.8%2.0%Operating profit

    6576461,4961,763Operating profit % of net revenues

    4.4%5.5%3.5%5.0%Net revenues(1): Mail choice(2)

    $ 4,741$
    4,071$ 13,715$  12,010Pharmacy network(3)

    10,0037,61529,11622,915Other

    5476169226Pharmacy claims processed(1):Total

    196.7144.4563.7436.0Mail choice(2)

    17.516.252.847.6Pharmacy network(3)

    179.2128.2510.9388.4Generic dispensing rate(1):Total

    74.3%72.0%74.0%71.1%Mail choice(2)

    65.0%62.4%64.4%60.8%Pharmacy network(3)

    75.3%73.1%75.0%72.3%Mail choice penetration rate

    21.8%26.3%22.8%25.7%(1) Pharmacy network net revenues, claims processed and generic dispensing rates do not include Maintenance Choice, which are included within the mail choice category.

    (2) Mail choice is defined as claims filled at a Pharmacy Services' mail facility, which include specialty mail claims, as well as 90-day claims filled at retail under the Maintenance Choice program.

    (3) Pharmacy network is defined as claims filled at retail pharmacies, including our retail drugstores, but excluding Maintenance Choice activity.

    (4) The results of the Pharmacy Services segment for the three and nine months ended September 30, 2010 have been revised to reflect the results of TheraCom as discontinued operations.EBITDA and EBITDA per Adjusted Claim(Unaudited)The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. We define EBITDA per adjusted claim as EBITDA divided by adjusted pharmacy claims. Adjusted pharmacy claims normalize the claims volume statistic for the difference in average days' supply for mail and retail claims. Adjusted pharmacy claims are calculated by multiplying 90-day claims (the majority of total mail claims) by 3 and adding the 30-day claims. EBITDA can be reconciled to operating profit, which we believe to be the most directly comparable GAAP financial measure.The following is a reconciliation of operating profit to EBITDA for the Pharmacy Services segment:Three Months EndedNine Months EndedSeptember 30,September 30,In millions, except per adjusted claim amounts

    20112010(1)20112010(1)Operating profit

    $  657$  646$  1,496$  1,763Depreciation and amortization

    11298317291EBITDA

    7697441,8132,054Adjusted claims

    229.2173.9661.7522.7EBITDA per adjusted claim

    $  3.35$  4.27$  2.74$  3.93(1) The results of the Pharmacy Services segment for the three and nine months ended September 30, 2010 have been revised to reflect the results of TheraCom as discontinued operations. Supplemental Information(Unaudited)Retail Pharmacy SegmentThe following table summarizes the Retail Pharmacy segment's performance for the respective periods:Three Months EndedNine Months EndedSeptember 30,September 30,In millions

    2011201020112010Net revenues

    $14,693$14,159$44,106$42,448Gross profit

    4,3064,18112,86012,397Gross profit % of net revenues

    29.3%29.5%29.2%29.2%Operating expenses

    3,1833,1429,4019,233Operating expense % of net revenues

    21.7%22.2%21.3%21.8%Operating profit

    1,1231,0393,4593,164Operating profit % of net revenues

    7.6%7.3%7.8%7.5%Net revenue increase:Total

    3.8%4.1%3.9%3.8%Pharmacy

    3.6%4.3%4.2%4.4%Front store

    4.2%3.6%3.3%2.5%Same store sales increase: Total

    2.3%2.5%2.3%2.3%Pharmacy

    2.4%3.0%2.8%3.2%Front store

    2.0%1.4%1.1%0.4%Generic dispensing rate

    75.7%73.5%75.5%72.8%Pharmacy % of total revenues

    68.5%68.7%68.5%68.4%Third party % of pharmacy revenue

    97.9%97.3%97.8%97.3%Retail prescriptions filled

    161.0157.7488.9472.5Adjusted Earnings Per Share Guidance(Unaudited)The following reconciliation of estimated income before income tax provision to estimated adjusted earnings per share contains forward-looking information that is subject to risks and uncertainties that could cause actual results to differ materially. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company strongly recommends that you become familiar with the specific risks and uncertainties outlined under the Risk Factors section in our Annual Report on Form 10-K for the year ended December 31, 2010 and under the section entitled "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Quarterly Report on Form 10-Q. For internal comparisons, management finds it useful to assess year-to-year performance by adjusting diluted earnings per share for amortization, which primarily relates to acquisition activities.Year EndingIn millions, except per share amounts

    December 31, 2011Income before income tax provision

    $  5,671$  5,749Amortization

    453453Adjusted income before income tax provision

    6,1246,202Adjusted income tax provision

    2,4012,426Adjusted income from continuing operations

    3,7233,776Net loss attributable to noncontrolling interest

    44Adjusted income from continuing operations attributable to CVS Caremark

    $  3,727$  3,780Weighted average diluted common shares outstanding

    1,3451,345Adjusted earnings per share from continuing operations attributable to CVS Caremark

    $  2.77$  2.81Free Cash Flow Guidance(Unaudited)The following reconciliation of net cash provided by operating activities to free cash flow contains forward-looking information that is subject to risks and uncertainties that could cause actual results to differ materially. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company strongly recommends that you become familiar with the specific risks and uncertainties outlined under the Risk Factors section in our Annual Report on Form 10-K for the year ended December 31, 2010 and under the section entitled "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Quarterly Report on Form 10-Q. For internal comparisons, management finds it useful to assess year-to-year cash flow performance by adjusting cash provided by operating activities, by capital expenditures and proceeds from sale-leaseback transactions.Year EndingIn millions

    December 31, 2011 Net cash provided by operating activities

    $  5,500$  5,600Subtract:  Additions to property and equipment

    (2,075)(1,950)Add:  Proceeds from sale-leaseback transactions

    600575Free cash flow

    $  4,025$  4,225
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    SOURCE CVS Caremark Corporation
    Copyright©2010 PR Newswire.
    All rights reserved


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    (Date:2/12/2016)... ... February 12, 2016 , ... T.E.N., ... have closed for the ISE Southeast Awards 2016. Finalists and winners of the ... ISE® Southeast Executive Forum and Awards Gala on March 15, 2016 at the ...
    (Date:2/12/2016)... ... 12, 2016 , ... AssureVest Insurance Group, a locally owned insurance firm with ... will raise funds earmarked to purchase computers and software for Mrs. Harrison’s 2nd and ... is in a low-income area and has more than 60 2nd and 3rd graders ...
    (Date:2/12/2016)... ... February 12, 2016 , ... Donor Network West, the organ procurement organization that ... partnership with San Ramon Regional Medical Center. Under the collaboration, the first of its ... to accommodate a more certain time frame for donor families for the recovery of ...
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