Navigation Links
Cardinal Health Reports First-Quarter Results
Date:10/27/2011

DUBLIN, Ohio, Oct. 27, 2011 /PRNewswire/ -- Cardinal Health today reported fiscal year 2012 first-quarter revenue of $26.8 billion and an 11 percent increase in non-GAAP diluted earnings per share (EPS) to $0.73. On a GAAP basis, diluted EPS from continuing operations declined 19 percent to $0.68, reflecting a prior-year gain of $0.21 from the sale of CareFusion stock. Strong revenue growth was driven by 10 percent revenue increases in both the Pharmaceutical and Medical segments. Results reflected 16 percent growth in non-GAAP operating earnings, led by a 19 percent increase in Pharmaceutical segment profit.

"Our fiscal 2012 has started with a solid first quarter, driven by strong revenue gains from both of our segments, continued progress on our margin initiatives and contributions from our recent acquisitions," said George Barrett, chairman and chief executive officer of Cardinal Health. "While we're pleased with the performance of our business in this first quarter, we're even more excited about the growth in strategic priority areas including specialty, positron emission tomography, generics, ambulatory, preferred medical products and China. Our progress in these areas provides increasing confidence that we're positioning well for future growth."

The company reaffirmed its fiscal 2012 outlook for non-GAAP diluted earnings per share of $3.04 to $3.19.

Q1 FY12 SUMMARYQ1 FY12Q1 FY11Y/YRevenue

$26.8 billion

$24.4 billion

10%Operating Earnings$412 million$364 million13%Non-GAAP Operating Earnings

$442 million$382 million16%Earnings from Continuing Operations$237 million$294 million(19)%Non-GAAP Earnings from Continuing Operations(3)

$256 million$231 million11%Diluted EPS from Continuing Operations$0.68$0.84(19)%Non-GAAP Diluted EPS from Continuing Operations

$0.73$0.6611%As previously announced, the company’s non-GAAP operating earnings, non-GAAP earnings

from continuing operations and non-GAAP diluted EPS from continuing operations definitions

exclude amortization of acquisition-related intangible assets for all periods presented.SEGMENT RESULTSPharmaceutical segmentRevenue for the Pharmaceutical segment increased 10 percent to $24.4 billion, including significant contribution from acquisitions completed in FY11 and growth from existing customers. Segment profit increased 19 percent to $363 million, reflecting the contribution of the acquisitions and the performance of generics programs.Q1 FY12Q1 FY11Y/YRevenue

$24.4 billion

$22.3 billion

10%Segment Profit

$363 million

$306 million

19%Medical segmentRevenue for the Medical segment increased 10 percent to $2.4 billion, primarily driven by growth from existing and net new customers and the transition of CareFusion from fee-for-service to traditional distribution agreement. As anticipated, segment profit declined 5 percent to $79 million, as profit increases from the company's preferred products programs and the volume relating to both existing and net new customers were negatively offset by commodity costs and the impact associated with the previously disclosed Presource® kit matter.Q1 FY12Q1 FY11Y/YRevenue

$2.4 billion

$2.2 billion

10%Segment Profit

$79 million

$84 million

(5)%ADDITIONAL FIRST-QUARTER AND RECENT HIGHLIGHTS

  • Agreement to acquire Futuremed Healthcare Products in Canada, a distributor of medical disposables and specialized equipment to the long-term care channel, enhancing capability to serve and deliver greater value to customers across the continuum of care in Canada.

  • Launch of the new Protexis™ Latex Hydrogel surgical gloves -- sterile latex, powder-free surgical gloves with hydrogel coating -- and the new Protexis™ brand name for the company's powder-free surgical glove portfolio.

  • Specialty Solutions P4 Healthcare business and Keystone Mercy Health Plan partnership in an evidence-based program to improve cancer care for Medicaid patients in Southeastern Pennsylvania.

  • Repurchase of $300 million in Cardinal Health shares.

  • CONFERENCE CALLCardinal Health will host a webcast and conference call today at 8:30 a.m. Eastern to discuss first-quarter results and its future outlook. To access the call and corresponding slide presentation, go to the Investors page at cardinalhealth.com/investors. The call can also be accessed by dialing 617.213.8835 passcode 25843607.  Presentation slides and an audio replay will be archived on the website after the conclusion of the meeting. The audio replay will also be available until Nov. 27 by dialing 617-801-6888, passcode 72444146.

    UPCOMING EVENTS

  • Credit Suisse Healthcare Conference on Nov. 9 at the Arizona Biltmore Hotel in Phoenix at 10:30 a.m. Eastern
  • Oppenheimer Healthcare Conference on Dec. 13 at the New York Waldorf Astoria in New York at 2:30 p.m. Eastern

  • At these events, Cardinal Health executives will discuss the company's diverse products and services, company performance and strategies for continued growth. To access more details and live webcasts of these events, including remarks, go to the Investors page at cardinalhealth.com.

    About Cardinal Health Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $103 billion health care services company that improves the cost-effectiveness of health care. As the business behind health care, Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products to more than 60,000 locations each day. The company is also a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company supports the growing diagnostic industry by supplying medical products to clinical laboratories and operating the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #19 on the Fortune 500, Cardinal Health employs more than 30,000 people worldwide. More information about the company may be found at cardinalhealth.com.

    (1) Non-GAAP operating earnings: Operating earnings excluding (1) restructuring and employee severance, (2) acquisition-related costs (including amortization of acquisition-related intangible assets), (3) impairments and loss on sale of assets, (4) litigation (recoveries)/charges, net, and (5) Other Spinoff Costs included within distribution, selling, general and administrative expenses.

    (2) Non-GAAP diluted EPS from continuing operations:  Non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding.

    (3) Non-GAAP earnings from continuing operations: Earnings from continuing operations excluding (1) restructuring and employee severance, (2) acquisition-related costs (including amortization of acquisition-related intangible assets), (3) impairments and loss on sale of assets, (4) litigation (recoveries)/charges, net, (5) Other Spinoff Costs and (6) gain on sale of CareFusion stock, each net of tax

    Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, analyst presentations and financial information regarding Cardinal Health is routinely posted and accessible on the Investors page at cardinalhealth.com.

    Cautions Concerning Forward-Looking StatementsThis news release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and expense accruals. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include (but are not limited to) uncertainties related to demand for Cardinal Health's products and services; uncertainties relating to Cardinal Health's ability to achieve the expected benefits from the acquisitions of  Kinray, Yong Yu, P4 Healthcare and Futuremed; uncertainties due to government health care reform including federal health care reform legislation; competitive pressures in Cardinal Health's various lines of business; the loss of one or more key customer or supplier relationships or changes to the terms of those relationships; the timing of generic and branded pharmaceutical introductions and the frequency or rate of branded pharmaceutical price appreciation or generic pharmaceutical price deflation; changes in the distribution patterns or reimbursement rates for health care products and/or services; the effects of any investigation by any regulatory authority; and changes in the cost of commodities such as oil-based resins, cotton, latex and diesel fuel. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) and exhibits to those reports. This news release reflects management's views as of Oct. 27, 2011. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.Schedule 1CARDINAL HEALTH, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)First Quarter(in millions, except per Common Share amounts)20122011% ChangeRevenue

    $ 26,792.0$ 24,437.510 %Cost of products sold

    25,707.523,475.310 %Gross margin

    1,084.5962.213 %Operating expenses:Distribution, selling, general and administrative expenses

    643.3581.511 %Restructuring and employee severance

    3.41.8N.M.Acquisition-related costs

    27.411.7N.M.Impairments and loss on sale of assets

    1.31.9N.M.Litigation (recoveries)/charges, net

    (3.2)1.4N.M.Operating earnings

    412.3363.913 %Other (income)/expenses, net

    3.8(7.5)N.M.Interest expense, net

    23.522.07 %Gain on sale of investment in CareFusion

    -(74.8)N.M.Earnings before income taxes and discontinued operations

    385.0424.2(9)%Provision for income taxes

    147.9129.814 %Earnings from continuing operations

    237.1294.4(19)%Earnings/(loss) from discontinued operations (net of tax expense of $0.8 millionand $0.0 million for the first quarter of fiscal 2012 and 2011, respectively)

    (0.3)0.4N.M.Net earnings

    $
    236.8$
    294.8(20)%Basic earnings per Common Share:Continuing operations

    $
    .69$
    .84(19)%Discontinued operations

    --N.M.Net basic earnings per Common Share

    $
    .69$
    .84(19)%Diluted earnings per Common Share:Continuing operations

    $
    .68$
    .84(19)%Discontinued operations

    --N.M.Net diluted earnings per Common Share

    $
    .68$
    .84(19)%Weighted average number of Common Shares outstanding:Basic

    344.8348.9Diluted

    349.4351.9Schedule 2CARDINAL HEALTH, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETSSeptember 30,June 30,(in millions)20112011(UNAUDITED)AssetsCash and equivalents

    $
    2,010.6$
    ,929.3Trade receivables, net

    6,232.66,155.7Inventories

    7,497.27,334.2Prepaid expenses and other

    982.8896.7Total current assets

    16,723.216,315.9Property and equipment, net

    1,494.01,512.2Goodwill and other intangibles, net

    4,249.34,259.0Other assets

    716.5758.8Total assets

    $
    23,183.0$  22,845.9Liabilities and Shareholders' EquityAccounts payable

    $
    ,748.9$  11,331.5Current portion of long-term obligations and other short-term borrowings

    333.1326.7Other accrued liabilities

    1,714.61,711.3Total current liabilities

    13,796.613,369.5Long-term obligations, less current portion

    2,195.02,175.3Deferred income taxes and other liabilities

    1,477.51,452.5Total shareholders' equity

    5,713.95,848.6Total liabilities and shareholders' equity

    $
    23,183.0$  22,845.9Schedule 3CARDINAL HEALTH, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)First Quarter(in millions)20122011CASH FLOWS FROM OPERATING ACTIVITIES:Net Earnings

    $
    236.8$
    294.8(Earnings)/loss from discontinued operations

    0.3(0.4)Earnings from continuing operations

    237.1294.4Adjustments to reconcile earnings from continuing operations to net cash from operations:Depreciation and amortization

    78.268.5Gain on sale of investment in CareFusion

    -(74.8)Impairments and loss on sale of assets

    1.31.9Share-based compensation

    19.821.4Provision for bad debts

    0.92.7Change in operating assets and liabilities, net of effects from acquisitions:Increase in trade receivables

    (69.3)(272.3)Increase in inventories

    (160.9)(731.8)Increase in accounts payable

    409.81,033.1Other accrued liabilities and operating items, net

    (12.7)(125.4)Net cash provided by operating activities-continuing operations

    504.2217.7Net cash used in operating activities-discontinued operations

    -(0.7)Net cash provided by operating activities

    504.2217.0CASH FLOWS FROM INVESTING ACTIVITIES:Acquisition of subsidiaries, net of cash acquired

    (7.3)(559.9)Additions to property and equipment

    (44.3)(61.9)Proceeds from sale of CareFusion common stock

    -705.9Proceeds from maturities of held-to-maturity securities

    10.0-Net cash provided by/(used in) investing activities-continuing operations

    (41.6)84.1Net cash provided by investing activities-discontinued operations

    --Net cash provided by/(used in) investing activities

    (41.6)84.1CASH FLOWS FROM FINANCING ACTIVITIES:Net change in short-term borrowings

    (5.0)-Reduction of long-term obligations

    (0.5)(0.4)Proceeds from issuance of Common Shares

    18.18.4Tax disbursements from share-based compensation

    (21.6)(14.1)Excess tax benefit from exercises of stock options

    4.92.0Dividends on Common Shares

    (77.2)(70.3)Purchase of treasury shares

    (300.0)(269.8)Net cash used in financing activities-continuing operations

    (381.3)(344.2)Net cash provided by financing activities-discontinued operations

    --Net cash used in financing activities

    (381.3)(344.2)Net increase/(decrease) in cash and equivalents

    81.3(43.1)Cash and equivalents at beginning of period

    1,929.32,755.3Cash and equivalents at end of period

    $ 2,010.6$
    2,712.2Schedule 4CARDINAL HEALTH, INC. AND SUBSIDIARIESBUSINESS ANALYSISTOTAL COMPANYNon-GAAPFirst QuarterFirst Quarter(in millions)2012201120122011RevenueAmount

    $ 26,792$ 24,438Growth Rate

    10 %(1)%Operating EarningsAmount

    $
    412$
    364$ 442$
    382Growth Rate

    13 %52 %16 %17 %Earnings from Continuing OperationsAmount

    $
    237$
    294$ 256$
    231Growth Rate

    (19)%N.M.11 %18 %Refer to the GAAP/Non-GAAP Reconciliation for definitions and calculations supporting the Non-GAAP balances.Schedule 5CARDINAL HEALTH, INC. AND SUBSIDIARIESSEGMENT BUSINESS ANALYSISFirst QuarterFirst Quarter(in millions)20122011(in millions)20122011PHARMACEUTICALMEDICALRevenueRevenueAmount

    $ 24,418$ 22,273Amount

    $ 2,380$
    2,169Growth Rate

    10 %(1)%Growth Rate

    10 %(3)%Mix

    91 %91 %Mix

    9 %9 %Segment ProfitSegment ProfitAmount

    $
    363$
    306Amount

    $
    79$
    84Growth Rate

    19 %45 %Growth Rate

    (5)%(27)%Mix

    82 %79 %Mix

    18 %21 %Segment Profit Margin

    1.49 %1.37 %Segment Profit Margin

    3.32 %3.85 %Refer to definitions for an explanation of calculations.Total consolidated revenue for the three months ended September 30, 2011 was $26,792 million, which included total segment revenue of $26,798 million and Corporate revenue of $(6) million. Total consolidated revenue for the three months ended September 30, 2010 was $24,438 million, which included total segment revenue of $24,442 million and Corporate revenue of $(4) million.  Corporate revenue consists primarily of elimination of inter-segment revenue.Total consolidated operating earnings for the three months ended September 30, 2011 were $412 million, which included total segment profit of $442 million and Corporate costs of $(30) million. Total consolidated operating earnings for the three months ended September 30, 2010 were $364 million, which included total segment profit of $390 million and Corporate costs of $(26) million. Corporate includes, among other things, restructuring and employee severance, acquisition-related costs, impairments and loss on sale of assets, litigation (recoveries)/charges, net and certain investment spending that are not allocated to the segments.Schedule 6CARDINAL HEALTH, INC. AND SUBSIDIARIESSCHEDULE OF NOTABLE ITEMSFirst Quarter(in millions, except per Common Share amounts)20122011Restructuring and Employee SeveranceRestructuring and employee severance

    $   (3.4)$
    (1.8)Tax benefit

    1.30.6Restructuring and employee severance, net of tax

    $   (2.1)$
    (1.2)Decrease to diluted EPS from continuing operations

    $ (0.01)$
    -Acquisition-Related CostsAmortization of acquisition-related intangible assets

    $ (18.9)$
    (10.3)Tax benefit

    6.43.8Amortization of acquisition-related intangible assets, net of tax

    $ (12.5)$
    (6.5)Decrease to diluted EPS from continuing operations

    $ (0.04)$
    (0.02)Other acquisition-related costs

    $   (8.6)$
    (1.3)Tax benefit

    3.00.2Other acquisition-related costs, net of tax

    $   (5.6)$
    (1.1)Decrease to diluted EPS from continuing operations

    $ (0.02)$
    -Total acquisition-related costs (1)

    $ (27.4)$
    (11.7)Tax benefit (1)

    9.44.0Total acquisition-related costs, net of tax (1)

    $ (18.0)$
    (7.7)Decrease to diluted EPS from continuing operations (1)

    $ (0.05)$
    (0.02)Impairments and Loss on Sale of AssetsImpairments and loss on sale of assets

    $   (1.3)$
    (1.9)Tax benefit

    0.50.7Impairments and loss on sale of assets, net of tax

    $   (0.8)$
    (1.2)Decrease to diluted EPS from continuing operations

    $
    -$
    -Litigation (Recoveries)/Charges, NetLitigation (recoveries)/charges, net

    $
    3.2$
    (1.4)Tax benefit/(expense)

    (1.2)0.6Litigation (recoveries)/charges, net, net of tax

    $
    2.0$
    (0.8)Increase to diluted EPS from continuing operations

    $  0.01$
    -Other Spin-Off CostsOther spin-off costs (2)

    $   (0.6)$
    (1.6)Tax benefit

    0.20.6Other spin-off costs, net of tax

    $   (0.4)$
    (1.0)Decrease to diluted EPS from continuing operations

    $
    -$
    -Gain on Sale of CareFusion StockGain on sale of CareFusion stock

    $
    -$
    74.8Tax expense

    --Gain on sale of CareFusion stock, net of tax

    $
    -$
    74.8Increase to diluted EPS from continuing operations

    $
    -$
    .21Weighted Average Number of Diluted Shares Outstanding349.4351.9(1) The sum of components may not equal the total due to rounding.(2) Other spin-off costs are included within distribution, selling, general and administrative expenses for all periods presented.Schedule 7CARDINAL HEALTH, INC. AND SUBSIDIARIESASSET MANAGEMENT ANALYSISFirst Quarter20122011Days Sales Outstanding

    20.619.9Days Inventory on Hand

    23.023.8Days Payable Outstanding

    36.135.4Net Working Capital Days

    7.58.3Debt to Total Capital

    31 %29 %Net Debt to Capital

    8 %(12)%Return on Equity

    16.4 %22.4 %Non-GAAP Return on Equity

    17.7 %17.6 %Effective Tax Rate from Continuing Operations

    38.4 %30.6 %Non-GAAP Effective Tax Rate from Continuing Operations

    38.1 %37.1 %Refer to the GAAP/Non-GAAP Reconciliation for Non-GAAP calculations. Refer to DSO, DIOH and DPO for definitions and calculations.Schedule 8CARDINAL HEALTH, INC. AND SUBSIDIARIESGAAP / NON-GAAP RECONCILIATIONS(in millions, except per Common Share amounts)First Quarter 2012OperatingEarningsOperatingEarningsGrowthRateEarningsBeforeIncomeTaxes andDiscontinuedOperationsProvisionforIncomeTaxes (1)EarningsfromContinuingOperationsEarningsfromContinuingOperationsGrowth RateDilutedEPS fromContinuingOperationsDilutedEPS fromContinuingOperationsGrowth RateGAAP$
    41213 %$
    385$
    48$
    237(19)%$
    .68(19)%Restructuring and Employee Severance

    $
    3$
    3

    $$
    2$
    .01Acquisition-Related Costs (2)

    $
    27$
    27

    $
    9

    $
    8$
    .05Impairments and Loss on Sale of Assets

    $$$$$
    -Litigation (Recoveries)/Charges, net

    $
    (3)$
    (3)

    $
    (1)

    $
    (2)$
    (0.01)Other Spin-Off Costs

    $$$
    -

    $
    -$
    -Gain on Sale of CareFusion Stock

    $
    -$
    -

    $
    -

    $
    -$
    -Non-GAAP$
    44216 %$
    415$
    58$
    25611 %$
    .7311 %First Quarter 2011OperatingEarningsOperatingEarningsGrowth RateEarningsBeforeIncomeTaxes andDiscontinuedOperationsProvisionforIncomeTaxes (1)EarningsfromContinuingOperationsEarningsfromContinuingOperationsGrowth RateDilutedEPS fromContinuingOperationsDilutedEPS fromContinuingOperationsGrowth RateGAAP$
    36452 %$
    424$
    30$
    294N.M.$
    .84N.M.Restructuring and Employee Severance

    $
    2$
    2

    $$$
    -Acquisition-Related Costs (2)

    $
    2$
    2

    $
    4

    $
    8$
    .02Impairments and Loss on Sale of Assets

    $
    2$
    2

    $$$
    -Litigation (Recoveries)/Charges, net

    $$$$$
    -Other Spin-Off Costs

    $
    2$
    2

    $$$
    -Gain on Sale of CareFusion Stock

    $
    -$
    (75)

    $
    -

    $
    (75)$
    (0.21)Non-GAAP$
    38217 %$
    368$
    36$
    23118 %$
    .6622 %The sum of the components may not equal the total due to rounding.(1) We apply varying tax rates depending upon the tax jurisdiction where the items are incurred.(2) Acquisition-related costs include amortization of acquisition-related intangible assets and other acquisition-related costs. See Schedule 6 - Schedule of Notable Items for additional detail.Schedule 9CARDINAL HEALTH, INC. AND SUBSIDIARIESGAAP / NON-GAAP RECONCILIATIONFirst Quarter(in millions)20122011GAAP Return on Equity16.4 %22.4 %Non-GAAP Return on EquityNet earnings$
    236.8$
    294.8Restructuring and employee severance, net of tax, in continuing operations (1)2.11.2Acquisition-related costs, net of tax, in continuing operations (1)18.07.7Impairments and loss on sale of assets, net of tax, in continuing operations (1)0.81.2Litigation (recoveries)/charges, net, net of tax, in continuing operations (1)(2.0)0.8Other spin-off costs, net of tax, in continuing operations (1)0.41.0Gain on sale of CareFusion stock, net of tax (1)-(74.8)CareFusion net (earnings)/loss in discontinued operations (1, 2)0.3-Adjusted net earnings$
    256.4$
    231.9Annualized$ 1,025.6$
    927.6FirstFourthFirstFourthQuarterQuarterQuarterQuarter2012201120112010Total shareholders' equity$ 5,713.9$ 5,848.6$ 5,239.0$
    5,276.1Divided by average shareholders' equity$ 5,781.3$ 5,257.6Non-GAAP Return on Equity17.7 %17.6 %(1) We apply varying tax rates depending upon the tax jurisdiction where the items are incurred.(2) To properly reflect the impact of the spin-off, on a non-GAAP basis, CareFusion net earnings included in discontinued operations are excluded from adjusted net earnings for all periods presented.Schedule 10CARDINAL HEALTH, INC. AND SUBSIDIARIESGAAP / NON-GAAP RECONCILIATIONFirst Quarter(in millions)20122011GAAP Effective Tax Rate from Continuing Operations38.4 %30.6 %Non-GAAP Effective Tax Rate from Continuing OperationsEarnings before income taxes and discontinued operations

    $
    385.0$
    424.2Restructuring and employee severance

    3.41.8Acquisition-related costs

    27.411.7Impairments and loss on sale of assets

    1.31.9Litigation (recoveries)/charges, net

    (3.2)1.4Other spin-off costs

    0.61.6Gain on sale of CareFusion stock

    -(74.8)Adjusted earnings before income taxes and discontinued operations

    $
    414.5$
    367.8Provision for income taxes (1)

    $
    47.9$
    29.8Restructuring and employee severance tax benefit (1)

    1.30.6Acquisition-related costs tax benefit (1)

    9.44.0Impairments and loss on sale of assets tax benefit (1)

    0.50.7Litigation (recoveries)/charges, net tax expense (1)

    (1.2)0.6Other spin-off costs tax benefit (1)

    0.20.6Gain on sale of CareFusion stock tax expense (1)

    --Adjusted provision for income taxes

    $
    58.1$
    36.3Non-GAAP Effective Tax Rate from Continuing Operations38.1 %37.1 %First Quarter20122011Debt to Total Capital31 %29 %Net Debt to CapitalCurrent portion of long-term obligations and other short-term borrowings

    $
    333.1$
    233.6Long-term obligations, less current portion

    2,195.01,906.4Debt

    $ 2,528.1$
    2,140.0Cash and equivalents

    (2,010.6)(2,712.2)Net debt

    $
    517.5$
    (572.2)Total shareholders' equity

    5,713.95,239.0Capital

    $ 6,231.4$
    4,666.8Net Debt to Capital8 %(12)%(1) We apply varying tax rates depending upon the tax jurisdiction where the items are incurred.Forward-Looking Non-GAAP Financial Measures We present non-GAAP earnings from continuing operations and non-GAAP effective tax rate from continuing operations (and presentations derived from these financial measures, including per share calculations) on a forward-looking basis. The most directly comparable forward-looking GAAP measures are earnings from continuing operations and effective tax rate from continuing operations. We are unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures because we cannot reliably forecast restructuring and employee severance, acquisition-related costs, impairments and loss on sale of assets, litigation (recoveries)/charges, net, and other spin-off costs, which are difficult to predict and estimate and are primarily dependent on future events. Please note that the unavailable reconciling items could significantly impact our future financial results. Schedule 11CARDINAL HEALTH, INC. AND SUBSIDIARIESFirst Quarter(in millions)20122011Days Sales Outstanding20.619.9Days Inventory on HandInventories

    $   7,497.2$
    7,087.5Cost of products sold

    $ 25,707.5$
    23,475.3Chargeback billings

    3,609.8$
    3,289.1Adjusted cost of products sold

    $ 29,317.3$
    26,764.4Adjusted cost of products sold divided by 90 days

    $
    325.7$
    297.4Days of Inventory on Hand23.023.8Days Payable OutstandingAccounts payable

    $ 11,748.9$
    ,532.3Cost of products sold

    $ 25,707.5$
    23,475.3Chargeback billings

    3,609.83,289.1Adjusted cost of products sold

    $ 29,317.3$
    26,764.4Adjusted cost of products sold divided by 90 days

    $
    325.7$
    297.4Days Payable Outstanding36.135.4Net Working Capital Days7.58.3Days Sales Outstanding:
    trade receivables, net divided by (monthly revenue divided by 30 days).Days Inventory on Hand:
    inventory divided by ((quarterly cost of products sold plus chargeback billings) divided by 90 days). Chargeback billings are the difference between a product's wholesale acquisition cost and the contract price established between pharmaceutical manufacturers and the end customer.Days Payable Outstanding:
    accounts payable divided by ((quarterly cost of products sold plus chargeback billings) divided by 90 days). Chargeback billings are the difference between a product's wholesale acquisition cost and the contract price established between pharmaceutical manufacturers and the end customer.Net Working Capital Days: days sales outstanding plus days inventory on hand less days payable outstanding.CARDINAL HEALTH, INC. AND SUBSIDIARIESDEFINITIONSGAAPDebt:  long-term obligations plus short-term borrowingsDebt to Total Capital:  debt divided by (debt plus total shareholders' equity)Diluted EPS from Continuing Operations:  earnings  from continuing operations divided by diluted weighted average shares outstandingEffective Tax Rate from Continuing Operations:  provision for income taxes divided by earnings before income taxes and discontinued operationsGain on Sale of CareFusion Stock: realized gains from the sale of our ownership of CareFusion common stock retained in connection with the spin-offOther Spin-Off Costs: costs incurred in connection with our Spin-Off of CareFusion which are included in distribution, selling, general and administrative expensesSegment Profit:  segment revenue minus (segment cost of products sold and segment distribution, selling, general and administrative expenses)Segment Profit Margin:  segment profit divided by segment revenueSegment Profit Mix:  segment profit divided by total segment profit for all segmentsReturn on Equity:  annualized net earnings divided by average shareholders' equity Revenue Mix:  segment revenue divided by total segment revenue for all segmentsNON-GAAPNet Debt to Capital:  net debt divided by (net debt plus total shareholders' equity)Net Debt:  debt minus (cash and equivalents)Non-GAAP Diluted EPS from Continuing Operations:  non-GAAP earnings from continuing operations divided by diluted weighted average shares outstandingNon-GAAP Diluted EPS from Continuing Operations Growth Rate: (current period non-GAAP diluted EPS from continuing operations minus prior period non-GAAP diluted EPS from continuing operations) divided by prior period non-GAAP diluted EPS from continuing operationsNon-GAAP Earnings from Continuing Operations:  earnings from continuing operations excluding (1) restructuring and employee severance, (2) acquisition-related costs (including amortization of acquisition-related intangible assets), (3) impairments and loss on sale of assets, (4) litigation (recoveries)/charges, net, (5) Other Spin-Off Costs and (6) gain on sale of CareFusion stock, each net of tax Non-GAAP Earnings from Continuing Operations Growth Rate:  (current period non-GAAP earnings from continuing operations minus prior period non-GAAP earnings from continuing operations) divided by prior period non-GAAP earnings from continuing operationsNon-GAAP Effective Tax Rate from Continuing Operations:  (provision for income taxes adjusted for (1) restructuring and employee severance, (2) acquisition-related costs (including amortization of acquisition-related intangible assets), (3) impairments and loss on sale of assets, (4) litigation (recoveries)/charges, net, (5) Other Spin-Off Costs and (6) gain on sale of CareFusion stock) divided by (earnings before income taxes and discontinued operations adjusted for (1) restructuring and employee severance, (2) acquisition-related costs (including amortization of acquisition-related intangible assets), (3) impairments and loss on sale of assets, (4) litigation (recoveries)/charges, net, (5) Other Spin-Off Costs and (6) gain on sale of CareFusion stock)Non-GAAP Operating Earnings:  operating earnings excluding (1) restructuring and employee severance, (2) acquisition-related costs (including amortization of acquisition-related intangible assets), (3) impairments and loss on sale of assets, (4) litigation (recoveries)/charges, net and (5) Other Spin-Off Costs included within distribution, selling, general and administrative expenseNon-GAAP Operating Earnings Growth Rate:  (current period non-GAAP operating earnings minus prior period non-GAAP operating earnings) divided by prior period non-GAAP operating earningsNon-GAAP Return on Equity:   (annualized current period net earnings excluding (1) restructuring and employee severance, (2) acquisition-related costs (including amortization of acquisition-related intangible assets), (3) impairments and loss on sale of assets, (4) litigation (recoveries)/charges, net, (5) Other Spin-Off Costs, (6) gain on sale of CareFusion stock and (7) CareFusion net earnings in discontinued operations, each net of tax) and divided by average shareholders' equity
    '/>"/>

    SOURCE Cardinal Health
    Copyright©2010 PR Newswire.
    All rights reserved


    Related medicine technology :

    1. Cardinal Health Foundation, The Ohio State University Launch New Toolkit to Help Reduce Misuse of Prescription Drugs
    2. Cardinal Health to Release First-quarter Financial Results on Oct. 27
    3. Cardinal Health Introduces New Latex, Powder-Free, Hydrogel Surgical Gloves
    4. Polymedco, Inc., and Cardinal Health Sign Agreement for Distribution of Oncologic Diagnostic Test Kits to Acute Care Market
    5. Cardinal Health Board of Directors Approves Cash Dividend, Elects David P. King as Director
    6. Nearly 7,000 Participate in Cardinal Healths Largest-Ever Annual Trade Show for Independent Pharmacies
    7. Cardinal Health to Release Fourth-quarter and Full-year Results for Fiscal Year 2011 on Aug. 4
    8. Cardinal Health, Prime Therapeutics Renew Primary Distribution Agreement
    9. Cardinal Health Extends Radiopharmaceutical Manufacturing Network, Opening its First Cyclotron in Georgia
    10. Cardinal Health Supports Future Pharmacists with $1.1 Million Pharmacy Scholarship Program
    11. Cardinal Health Raises Quarterly Dividend By 10 Percent
    Post Your Comments:
    *Name:
    *Comment:
    *Email:
    (Date:2/9/2016)... Feb. 9, 2016 The new report "Global Anti-Bacterial Drugs ... Research & Consulting group reveals that the North America ... share of 38.9% in 2014 that translated into revenues worth US$ ... Europe , Asia-Pacific , ... Africa . The global anti-bacterial market is inclined towards ...
    (Date:2/8/2016)... LONDON , Feb.8, 2016 Alzheimer ... Summary Medical Devices sector report ... Assessment, 2015" provides an overview of Alzheimer Diagnostic ... provides comprehensive information on the pipeline products with ... of development. The report reviews major players involved ...
    (Date:2/8/2016)... 2016  Labvantage Lx, a newcomer to the ... sexual enhancement product, EnduramenT. Setting a new standard ... a patented biomedical breakthrough molecule that promotes the ... responsible for many biological functions including erectile function. ... Forgoing the use of prescription medications, scientists working ...
    Breaking Medicine Technology:
    (Date:2/9/2016)... ... February 10, 2016 , ... The Journal of Pain Research has ... field .” , As corresponding author Dr John F. Peppin says “Terminology matters, yet ... our chronic pain patients. ‘Chronic cancer pain’ and ‘chronic non-cancer pain’ are replete ...
    (Date:2/9/2016)... ... February 09, 2016 , ... ... service to expand access to affordable hearing aids , increase industry transparency, ... individuals in the United States. , “For the average consumer, the hearing aid ...
    (Date:2/9/2016)... ... , ... Two renowned photographers, Robert Caplin (New York, NY) and Peter Lockley ... 14-19, 2016, hosted by Four Seasons Resort Maui at Wailea as part of the ... 2015, the Maui Photo Expedition workshop will once again consist of on-location ...
    (Date:2/9/2016)... California (PRWEB) , ... February 09, 2016 , ... i2i ... one of the highest preliminary data vendors in the latest KLAS report, Population Health ... i2i has led the developing market for population health management (PHM). The latest ...
    (Date:2/8/2016)... N.J. (PRWEB) , ... February 08, 2016 , ... ... cancer patients, has officially launched the Multiple Myeloma Heroes Awards event , which ... or in the lives of patients with MM. The MM Heroes Awards nomination ...
    Breaking Medicine News(10 mins):