Navigation Links
Cardinal Health Reports Fourth-Quarter And Fiscal Year Results, Provides Fiscal 2015 Outlook
Date:8/4/2014

DUBLIN, Ohio, Aug. 4, 2014 /PRNewswire/ -- Cardinal Health today reported earnings for its fiscal 2014 fourth quarter and year-end.

Fourth-quarter fiscal year 2014 revenue was $22.9 billion, down 10 percent from the prior fiscal year. Fourth-quarter revenue was up 12 percent excluding the impact of the Walgreens contract expiration. Non-GAAP operating earnings for the fourth quarter were $461 million. Non-GAAP diluted earnings per share (EPS) from continuing operations were $0.83, an increase of 5 percent. On a GAAP basis, operating earnings and diluted EPS from continuing operations for the fourth quarter were $387 million and $0.68, respectively, compared with a loss of $442 million and $1.72, respectively, in the prior-year quarter. GAAP results in the fourth quarter of fiscal 2013 reflected a goodwill impairment charge associated with the company's nuclear division.Fiscal year 2014 revenue was $91.1 billion. Non-GAAP operating earnings increased 4 percent to $2.1 billion, and non-GAAP diluted EPS from continuing operations increased 3 percent to $3.84. On a GAAP basis, operating earnings and diluted EPS from continuing operations for fiscal year 2014 were $1.9 billion and $3.37, respectively, an increase of 89 percent and 247 percent, respectively, from the prior fiscal year.

"I am extremely proud of the progress we made in a year of transition for both Cardinal Health and the health care system. The organization more than met the challenge, reporting strong performance in non-GAAP operating earnings, EPS, operating cash flow and cash returned to shareholders," said George Barrett, chairman and chief executive officer of Cardinal Health. 

"We made significant progress on our strategic priorities: launching the largest generic purchasing entity in the U.S. through our joint venture with CVS Caremark, expanding our position and capabilities in specialty, substantially increasing our line of consumable medical products, taking significant steps to enhance our program on physician preference items in both cardiovascular and orthopedics, enlarging our footprint in the home, and showing continued strong growth in China."

In fiscal year 2014, the company generated $2.5 billion in operating cash flow and returned $1.1 billion to shareholders through dividends and share buybacks.

Barrett continued, "We enter fiscal year 2015 well-positioned to address the needs of a rapidly changing health care system. Our fiscal year 2015 outlook for non-GAAP diluted EPS from continuing operations is $4.10 to $4.30."

Q4 and Fiscal Year SummaryQ4 FY14Q4 FY13Y/YFY14FY13Y/YRevenue

$22.9 billion

$25.4 billion

(10%)

$91.1 billion

$101.1 billion

(10%) 

Operating
Earnings/(Loss)

 

$387 million

 

($442) million

 

N.M.

 

$1,885 million

 

$996 million

 

89%Non-GAAP
Operating Earnings

 

$461 million

 

$472 million

 

(2)%

 

$2,133 million

 

$2,046 million

 

4%Earnings/(Loss) from
Continuing
Operations

 

$234 million

 

($586) million

 

N.M.

 

$1,163 million

 

$335 million

 

247%Non-GAAP Earnings
from Continuing
Operations

 

$284 million

 

$274 million

 

4%

 

$1,324 million

 

$1, 284 million

 

3%Diluted EPS from
Continuing
Operations

 

$0.68

 

($1.72)

 

N.M

 

$3.37

 

$0.97

 

247%Non-GAAP Diluted
EPS from Continuing
Operations

 

$0.83

 

$0.79

 

5%

 

$3.84

 

$3.73

 

3%Fiscal year 2014 non-GAAP EPS included a net $0.02 per share benefit from two large off-setting tax items. As a reminder, fiscal year 2013 non-GAAP EPS included a discrete positive $0.18 per share benefit from a tax settlement.

SEGMENT RESULTSPharmaceutical SegmentFourth-quarter revenue for the Pharmaceutical segment decreased 12 percent to $20.1 billion, and segment profit decreased 5 percent to $377 million. The decrease in both segment revenue and profit was due to the continuing impact of the expiration of the Walgreens contract.Excluding the impact of Walgreens, fourth-quarter revenue for the Pharmaceutical segment grew 13 percent, driven by organic sales growth, growth in the company's Specialty Solutions division, and China. The impact of the Walgreens contract expiration on segment profit was partially offset by strong performance under generic programs.For the full year, revenue for the Pharmaceutical segment decreased 12 percent to $80.1 billion, and segment profit increased 1 percent to $1.7 billion. Q4 FY14Q4 FY13Y/YFY14FY13Y/YRevenue

$20.1 billion

$22.8 billion

(12)%

$80.1 billion

$91.1 billion

(12)%Segment Profit

$377 million

$395 million

(5)%

$1.7 billion

$1.7 billion

1%Medical SegmentFourth-quarter revenue for the Medical segment increased 4 percent to $2.8 billion, driven by growth in existing customers, including solid growth in strategic hospital network accounts, and acquisitions. Segment profit decreased 8 percent to $96 million, primarily due to a year-over-year increase in enterprise incentive compensation and market pressures in Canada.

For the full year, Medical segment revenue increased 9 percent to $11.0 billion, and segment profit increased 19 percent to $444 million.Q4 FY14Q4 FY13Y/YFY14FY13Y/YRevenue

$2.8 billion

$2.7 billion

4%

$11.0 billion

$10.1 billion

9%Segment Profit

$96 million

$104 million

(8)%

$444 million

$372 million

19%ADDITIONAL YEAR-END AND RECENT HIGHLIGHTS

  • Increased the regular quarterly dividend 13 percent to $0.3425 per share. Dividend was paid July 15 to shareholders of record at the close of business on July 1.
  • Formally launched Red Oak Sourcing, LLC, a joint venture with CVS Caremark forming the largest generic sourcing entity in the U.S.
  • Completed the acquisition of AccessClosure, a leading manufacturer and distributor of extravascular closure devices in the United States, expanding the company's portfolio of physician preference items.
  • Convened 24th annual Retail Business Conference, presenting nearly 8,000 attendees with the industry's largest and most complete lineup of continuing education opportunities, buying opportunities with more than 340 exhibitors, and access to a broad array of Cardinal Health solutions to help diversify and improve their businesses.
  • CONFERENCE CALLCardinal Health will host a webcast and conference call today at 8:30 a.m. Eastern to discuss fourth-quarter and full-year results and its future outlook. To access the call and corresponding slide presentation, go to the Investors page at cardinalhealth.com. Alternatively, participants can dial 913.312.0640, using conference ID# 6121128. There is no access code required for the call. 

    There is no pre-registration for the call. Participants are advised to dial into the call at least 10 minutes prior to the start time.

    Presentation slides and an audio replay will be archived on the Cardinal Health website after the conclusion of the conference call. The audio replay will also be available for seven days by dialing 719.457.0820, passcode 6121128.

    About Cardinal Health Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $91 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, clinical laboratories 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 and services to more than 100,000 locations each day and is also the industry-leading direct-to-home medical supplies distributor. The company is a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company operates the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #22 on the Fortune 500, Cardinal Health employs 34,000 people worldwide. More information about the company may be found at www.cardinalhealth.com and @CardinalHealth on Twitter.

    1 See the attached tables for definitions of the non-GAAP financial measures presented in this news release and reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures.

    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," "likely," 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 competitive pressures in Cardinal Health's various lines of business; the ability to achieve the expected benefits from the generic sourcing joint venture with CVS Caremark; the frequency or rate of pharmaceutical price appreciation or deflation and the timing of generic and branded pharmaceutical introductions; the non-renewal or a default under one or more key customer or supplier arrangements or changes to the terms of or level of purchases under those arrangements; the ability to achieve anticipated results from the AccessClosure and Sonexus Health acquisitions; uncertainties due to government health care reform including federal health care reform legislation; changes in the distribution patterns or reimbursement rates for health care products and services; the effects of any investigation or action 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 and exhibits to those reports. This news release reflects management's views as of August 4, 2014. 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 Subsidiaries Condensed Consolidated Statements of Earnings (Unaudited)Fourth Quarter(in millions, except per common share amounts)

    20142013% ChangeRevenue

    $

    22,894$

    25,420(10)

    %Cost of products sold

    21,63824,173(10)

    %Gross margin

    1,2561,2471

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

    7957753

    %Restructuring and employee severance

    632N.M.Amortization and other acquisition-related costs

    6352N.M.Impairments and loss on disposal of assets1

    4832N.M.Litigation (recoveries)/charges, net

    1(2)N.M.Operating earnings/(loss)

    387(442)N.M.Other (income)/expense, net

    (3)2N.M.Interest expense, net

    3336(8)

    %Earnings/(loss) before income taxes and discontinued operations

    357(480)N.M.Provision for income taxes

    12310617

    %Earnings/(loss) from continuing operations

    234(586)N.M.Earnings from discontinued operations, net of tax

    N.M.Net earnings/(loss)$

    234$

    (586)N.M.Basic earnings/(loss) per common share:Continuing operations

    $

    0.69$

    (1.72)N.M.Discontinued operations

    N.M.Net basic earnings/(loss) per common share$

    0.69$

    (1.72)N.M.Diluted earnings/(loss) per common share:Continuing operations

    $

    0.68$

    (1.72)N.M.Discontinued operations

    N.M.Net diluted earnings/(loss) per common share$

    0.68$

    (1.72)N.M.Weighted-average number of common shares outstanding:Basic

    339341Diluted2

    3433411

    During the fourth quarter of fiscal 2013, we recognized a non-cash goodwill impairment charge of $829 million ($799 million, net of tax) related to our Nuclear Pharmacy Services division.2

    For fiscal 2013, due to the loss from continuing operations during the fourth quarter, dilutive potential common shares have not been included in the denominator of the dilutive per share computation due to their antidulitive effect. 

     Schedule 2Cardinal Health, Inc. and Subsidiaries Condensed Consolidated Statements of EarningsFiscal Year(in millions, except per common share amounts)

    20142013% Change(Unaudited)Revenue

    $

    91,084$

    101,093(10)

    %Cost of products sold

    85,92396,172(11)

    %Gross margin

    5,1614,9215

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

    3,0282,8755

    %Restructuring and employee severance

    3171N.M.Amortization and other acquisition-related costs

    223158N.M.Impairments and loss on disposal of assets1

    15859N.M.Litigation (recoveries)/charges, net

    (21)(38)N.M.Operating earnings

    1,88599689

    %Other income, net

    (46)(15)N.M.Interest expense, net

    1331238

    %Earnings before income taxes and discontinued operations

    1,798888N.M.Provision for income taxes

    63555315

    %Earnings from continuing operations

    1,163335247

    %Earnings/(loss) from discontinued operations, net of tax

    3(1)N.M.Net earnings$

    1,166$

    334N.M.Basic earnings per common share:Continuing operations

    $

    3.41$

    0.98N.M.Discontinued operations

    0.01N.M.Net basic earnings per common share$

    3.42$

    0.98N.M.Diluted earnings/(loss) per common share:Continuing operations

    $

    3.37$

    0.97247

    %Discontinued operations

    0.01N.M.Net diluted earnings per common share$

    3.38$

    0.97247

    %Weighted-average number of common shares outstanding:Basic

    341341Diluted

    3453441

    During the fourth quarter of fiscal 2013, we recognized a non-cash goodwill impairment charge of $829 million ($799 million, net of tax) related to our Nuclear Pharmacy Services division. 

     Schedule 3Cardinal Health, Inc. and Subsidiaries
    Condensed Consolidated Balance Sheets(in millions)June 30,
     2014June 30,
     2013(Unaudited)AssetsCurrent assets:Cash and equivalents

    $

    2,865$

    1,901Trade receivables, net

    5,3806,304Inventories, net

    8,2668,373Prepaid expenses and other

    1,4281,192Total current assets

    17,93917,770Property and equipment, net

    1,4591,489Goodwill and other intangibles, net

    5,8705,574Other assets

    765986Total assets$

    26,033$

    25,819Liabilities and Shareholders' EquityCurrent liabilities:Accounts payable

    $

    12,149$

    12,295Current portion of long-term obligations and other short-term borrowings

    801168Other accrued liabilities

    2,1652,127Total current liabilities

    15,11514,590Long-term obligations, less current portion

    3,1713,686Deferred income taxes and other liabilities

    1,3461,568Total shareholders' equity

    6,4015,975Total liabilities and shareholders' equity$

    26,033$

    25,819 

     Schedule 4Cardinal Health, Inc. and Subsidiaries
    Condensed Consolidated Statements of Cash FlowsFourth QuarterFiscal Year(in millions)

    2014201320142013(Unaudited)(Unaudited)(Unaudited)Cash flows from operating activities:Net earnings/(loss)

    $

    234$

    (586)$

    1,166$

    334(Earnings)/loss from discontinued operations, net of tax

    (3)1Earnings/(loss) from continuing operations

    234(586)1,163335Adjustments to reconcile earnings/(loss) from continuing operations to net cash provided by operating activities:Depreciation and amortization

    115122459397Gain on sale of investments

    (32)Impairments and loss on disposal of assets

    483215859Share-based compensation

    24259693Provision for deferred income taxes

    26212621Provision for bad debts

    11134231Change in operating assets and liabilities, net of effects from acquisitions:Decrease/(increase) in trade receivables

    (548)135925216Decrease/(increase) in inventories

    (208)(27)142(370)Increase/(decrease) in accounts payable

    1,196212(196)426Other accrued liabilities and operating items, net

    (138)(447)(116)(281)Net cash provided by operating activities

    7163002,5241,727Cash flows from investing activities:Acquisition of subsidiaries, net of cash acquired

    (351)(20)(519)(2,239)Additions to property and equipment

    (111)(92)(249)(195)Purchase of available-for-sale securities and other investments

    (102)(6)(129)(12)Proceeds from sale of investments

    47Proceeds from maturities of held-to-maturity securities

    71Net cash used in investing activities

    (564)(118)(850)(2,375)Cash flows from financing activities:Payment of contingent consideration obligation

    (4)Net change in short-term borrowings

    4910114(1)Reduction of long-term obligations

    (1)(303)(2)(305)Proceeds from long-term obligations, net of issuance costs

    1,286Net proceeds from issuance of common shares

    858227121Tax proceeds/(disbursements) from share-based compensation

    3(6)39(19)Dividends on common shares

    (103)(95)(415)(353)Purchase of treasury shares

    (284)(250)(673)(450)Net cash provided by/(used in) financing activities

    (328)(586)(710)275Net increase/(decrease) in cash and equivalents

    (176)(404)964(373)Cash and equivalents at beginning of period

    3,0412,3051,9012,274Cash and equivalents at end of period$

    2,865$

    1,901$

    2,865$

    1,901 

     Schedule 5Cardinal Health, Inc. and Subsidiaries
    Total Company Business AnalysisNon-GAAPFourth QuarterFourth Quarter(in millions)

    2014201320142013RevenueAmount

    $

    22,894$

    25,420Growth rate1

    (10)

    %(5)

    %Operating earnings/(loss)Amount

    $

    387$

    (442)$

    461$

    472Growth rateN.M.N.M.(2)

    %11

    %Earnings/(loss) from continuing operationsAmount

    $

    234$

    (586)$

    284$

    274Growth rateN.M.N.M.4

    %7

    %Return on equity

    14.5

    %(36.6)

    %17.6

    %17.1

    %Effective tax rate from continuing operations2,3

    34.4

    %(21.9)

    %34.2

    %36.9

    %Debt to total capital

    38

    %39

    %Net debt to total capital15

    %25

    %Non-GAAPFiscal YearFiscal Year(in millions)

    2014201320142013RevenueAmount

    $

    91,084$

    101,093Growth rate1

    (10)

    %(6)

    %Operating earningsAmount

    $

    1,885$

    996$

    2,133$

    2,046Growth rate

    89

    %(44)

    %4

    %10

    %Earnings from continuing operationsAmount

    $

    1,163$

    335$

    1,324$

    1,284Growth rate

    247

    %(69)

    %3

    %15

    %Return on equity

    18.3

    %5.2

    %20.9

    %20.1

    %Effective tax rate from continuing operations3,4

    35.3

    %62.3

    %35.3

    %33.7

    %1Revenue from Walgreens was $5.0 billion for the three months ended June 30, 2013. Revenue from Walgreens was $3.3 billion and $20.2 billion for the fiscal year ended June 30, 2014 and 2013, respectively. Excluding the impact of the Walgreens contract expiration, the fiscal 2014 fourth quarter and fiscal year revenue growth rate would have been 12 percent and 8 percent, respectively.2For the fourth quarter of fiscal 2013, the goodwill impairment charge related to our Nuclear Pharmacy Services division favorably impacted the effective tax rate from continuing operations by 60.6 percentage points.3

    Fiscal 2013 includes an out-of-period increase in income tax expense of $14 million recorded during the fourth quarter, related to uncertain tax benefits.4

    For fiscal 2013, the goodwill impairment charge related to our Nuclear Pharmacy Services division adversely impacted the effective tax rate from continuing operations by 28.3 percentage points. In addition, the revaluation of the deferred tax liability and related interest on unrepatriated foreign earnings as a result of an agreement with tax authorities reduced, for fiscal 2013, both the effective tax rate from continuing operations and non-GAAP effective tax rate from continuing operations by 7.2 and 3.3 percentage points, respectively. The fiscal 2013 non-GAAP effective tax rate from continuing operations, excluding the impact of the tax settlement, would have been 37.0 percent.The sum of the components may not equal the total due to rounding.Refer to the GAAP/Non-GAAP reconciliation for definitions and calculations supporting the Non-GAAP balances. 

     Schedule 6Cardinal Health, Inc. and SubsidiariesSegment Business AnalysisFourth QuarterFourth Quarter(in millions)

    20142013(in millions)

    20142013PharmaceuticalMedicalRevenueRevenueAmount

    $

    20,092$

    22,783Amount

    $

    2,794$

    2,697Growth rate1

    (12)

    %(6)

    %Growth rate

    4

    %11

    %Segment profitSegment profitAmount

    $

    377$

    395Amount

    $

    96$

    104Growth rate

    (5)

    %11

    %Growth rate

    (8)

    %31

    %Segment profit margin

    1.88

    %1.73

    %Segment profit margin

    3.43

    %3.86

    %1

    Revenue from Walgreens was $5.0 billion for the three months ended June 30, 2013. Excluding the impact of the Walgreens contract expiration, the fiscal 2014 fourth quarter Pharmaceutical segment revenue growth rate would have been 13 percent.Refer to definitions for an explanation of calculations.Total consolidated revenue for the three months ended June 30, 2014 was $22,894 million, which included total segment revenue of $22,886 million and Corporate revenue of $8 million. Total consolidated revenue for the three months ended June 30, 2013 was $25,420 million, which included total segment revenue of $25,480 million and Corporate revenue of $(60) million. Corporate revenue consists primarily of elimination of inter-segment revenue and other revenue not allocated to the segments. Total consolidated operating earnings for the three months ended June 30, 2014 were $387 million, which included total segment profit of $473 million and Corporate costs of $(86) million. Total consolidated operating loss for the three months ended June 30, 2013 was $(442) million, which included total segment profit of $499 million and Corporate costs of $(941) million. Corporate includes, among other things, restructuring and employee severance, amortization and other acquisition-related costs, impairments and loss on disposal of assets, litigation (recoveries)/charges, net and certain investment spending that are not allocated to the segments. Corporate costs for fourth quarter 2013 include an $829 million goodwill impairment charge related to our Nuclear Pharmacy Services division. 

     Schedule 7Cardinal Health, Inc. and SubsidiariesSegment Business AnalysisFiscal YearFiscal Year(in millions)

    20142013(in millions)

    20142013PharmaceuticalMedicalRevenueRevenueAmount

    $

    80,110$

    91,097Amount

    $

    10,962$

    10,060Growth rate1

    (12)

    %(7)

    %Growth rate

    9

    %4

    %Segment profitSegment profitAmount

    $

    1,745$

    1,734Amount

    $

    444$

    372Growth rate

    1

    %11

    %Growth rate

    19

    %12

    %Segment profit margin

    2.18

    %1.90

    %Segment profit margin

    4.05

    %3.70

    %1

    Revenue from Walgreens was $3.3 billion and $20.2 billion for the fiscal year ended June 30, 2014 and 2013, respectively. Excluding the impact of the Walgreens contract expiration, the fiscal 2014 Pharmaceutical segment revenue growth rate would have been 8 percent.Refer to definitions for an explanation of calculations.Total consolidated revenue for the fiscal year ended June 30, 2014 was $91,084 million, which included total segment revenue of $91,072 million and Corporate revenue of $12 million. Total consolidated revenue for the fiscal year ended June 30, 2013 was $101,093 million, which included total segment revenue of $101,157 million and Corporate revenue of $(64) million. Corporate revenue consists primarily of elimination of inter-segment revenue and other revenue not allocated to the segments. Total consolidated operating earnings for the fiscal year ended June 30, 2014 were $1,885 million, which included total segment profit of $2,189 million and Corporate costs of $(304) million. Total consolidated operating earnings for the fiscal year ended June 30, 2013 were $996 million, which included total segment profit of $2,106 million and Corporate costs of $(1,110) million. Corporate includes, among other things, restructuring and employee severance, amortization and other acquisition-related costs, impairments and loss on disposal of assets, litigation (recoveries)/charges, net and certain investment spending that are not allocated to the segments. Corporate costs for fiscal 2013 include an $829 million goodwill impairment charge related to our Nuclear Pharmacy Services division. 

     Schedule 8Cardinal Health, Inc. and SubsidiariesGAAP / Non-GAAP ReconciliationFourth Quarter 2014OperatingEarnings / (Loss)ProvisionEarningsEarnings fromDiluted EPSDiluted EPSOperatingEarningsBefore Income Taxesfor/ (Loss) fromContinuingfromfrom Continuing(in millions, except per common share amounts)EarningsGrowthand DiscontinuedIncomeContinuingOperationsContinuingOperations/ (Loss)RateOperationsTaxesOperationsGrowth RateOperations1,2Growth RateGAAP$

    387N.M.$

    357$

    123$

    234N.M.$

    0.68N.M.Restructuring and employee severance

    66240.01Amortization and other acquisition-related costs

    636322410.12Impairments and loss on disposal of assets

    44130.01Litigation (recoveries)/charges, net

    111Non-GAAP$

    461(2)

    %

    $

    432$

    148$

    2844

    %

    $

    0.835

    %Fourth Quarter 2013GAAP

    $

    (442)N.M.

    $

    (480)$

    106$

    (586)N.M.

    $

    (1.72)N.M.Restructuring and employee severance

    323212200.06Amortization and other acquisition-related costs

    525213390.11Impairments and loss on disposal of assets3

    832832308022.32Litigation (recoveries)/charges, net

    (2)(2)(1)(1)Non-GAAP

    $

    47211

    %

    $

    434$

    160$

    2747

    %

    $

    0.798

    %Fiscal Year 2014OperatingEarnings BeforeProvisionEarningsEarnings fromDiluted EPSDiluted EPSEarningsIncome TaxesforfromContinuingfromfrom ContinuingOperatingGrowthand DiscontinuedIncomeContinuingOperationsContinuingOperations(in millions, except per common share amounts)EarningsRateOperationsTaxesOperationsGrowth RateOperationsGrowth Rate4GAAP$

    1,88589

    %

    $

    1,798$

    635$

    1,163247

    %

    $

    3.37247

    %Restructuring and employee severance

    313111200.06Amortization and other acquisition-related costs

    223223791440.42Impairments and loss on disposal of assets

    15155100.03Litigation (recoveries)/charges, net

    (21)(21)(8)(13)(0.04)Non-GAAP$

    2,1334

    %

    $

    2,047$

    722$

    1,3243

    %

    $

    3.843

    %Fiscal Year 2013GAAP

    $

    996(44)

    %

    $

    888$

    553$

    335(69)

    %

    $

    0.97(68)

    %Restructuring and employee severance

    717127440.13Amortization and other acquisition-related costs

    158158521060.31Impairments and loss on disposal of assets3

    859859378222.39Litigation (recoveries)/charges, net

    (38)(38)(15)(23)(0.07)Non-GAAP

    $

    2,04610

    %

    $

    1,938$

    654$

    1,28415

    %

    $

    3.7316

    %1

    During the fourth quarter of fiscal 2014, we recorded an out-of-period decrease in revenue of $14 million related to pricing adjustments. The related tax benefit was $5 million and both GAAP and Non-GAAP diluted EPS from continuing operations decreased $0.02.2

    For fiscal 2013, the weighted-average number of shares used in the non-GAAP calculation was 345 million shares, which includes 4 million dilutive potential common shares, as there was income from continuing operations on a non-GAAP basis.3

    The fourth quarter of fiscal 2013 and fiscal 2013 both include an $829 million goodwill impairment charge related to our Nuclear Pharmacy Services division. The related tax benefit was $30 million and GAAP diluted EPS from continuing operations decreased $2.32.4

    Fiscal 2014 earnings from continuing operations includes a $63 million benefit related to the settlement of federal and state tax controversies, partially offset by a $56 million charge related to the remeasurement of unrecognized tax benefits, each of which contributed $0.18 and ($0.16), or $0.02 net, to both diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations, respectively. Fiscal 2013 earnings from continuing operations includes a $64 million benefit related to the revaluation of the deferred tax liability and related interest on unrepatriated foreign earnings as a result of an agreement with tax authorities, which contributed $0.18 to both diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations. The fiscal 2014 growth rates for diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations, excluding the impact of the tax items in each fiscal year, would have been 324 percent and 8 percent, respectively.The sum of the components may not equal the total due to rounding.We apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred. 

     Schedule 9Cardinal Health, Inc. and SubsidiariesGAAP / Non-GAAP ReconciliationFourth Quarter(in millions)

    20142013GAAP return on equity14.5

    %(36.6)%Non-GAAP return on equityNet earnings/(loss)

    $

    234$

    (586)Restructuring and employee severance, net of tax, in continuing operations

    420Amortization and other acquisition-related costs, net of tax, in continuing operations

    4139Impairments and loss on disposal of assets, net of tax, in continuing operations

    3802Litigation (recoveries)/charges, net, net of tax, in continuing operations

    1(1)Adjusted net earnings

    $

    283$

    274Annualized

    $

    1,132$

    1,096FourthThirdFourthThirdQuarterQuarterQuarterQuarter2014201420132013Total shareholders' equity

    $

    6,401$

    6,532$

    5,975$

    6,830Divided by average shareholders' equity

    $

    6,466$

    6,403Non-GAAP return on equity17.6

    %17.1

    %We apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred. 

     Schedule 10Cardinal Health, Inc. and SubsidiariesGAAP / Non-GAAP ReconciliationFiscal Year(in millions)

    20142013GAAP return on equity18.3

    %5.2

    %Non-GAAP return on equityNet earnings

    $

    1,166$

    334Restructuring and employee severance,
    net of tax, in continuing operations

    2044Amortization and other acquisition-related
    costs, net of tax, in continuing operations

    144106Impairments and loss on disposal of assets, net of tax, in continuing operations

    10822Litigation (recoveries)/charges, net, net of tax, in continuing operations

    (13)(23)Adjusted net earnings

    $

    1,327$

    1,283FourthThirdSecondFirstFourthFourthThirdSecondFirstFourthQuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarter2014201420142014201320132013201320132012Total shareholders' equity

    $

    6,401$

    6,532$

    6,589$

    6,297$

    5,975$

    5,975$

    6,830$

    6,542$

    6,281$

    6,244Di
    '/>"/>

    SOURCE Cardinal Health
    Copyright©2014 PR Newswire.
    All rights reserved


    Related medicine technology :

    1. Cardinal Health Announces Three Best Practice Winners for Leading Change in Community Pharmacy
    2. Cardinal Health Encourages Independent Pharmacists to Lead Change at 24th Annual Retail Business Conference
    3. CVS Caremark And Cardinal Health Announce Creation Of Largest Generic Sourcing Entity In U.S.
    4. Cardinal Health, Prime Therapeutics Renew Primary Distribution Agreement
    5. Par Pharmaceuticals Karen OConnor Receives 2013 Cardinal Health Supply Chain Excellence Award
    6. Philanthropic Grants, Product Launches, Promising Partnerships, and Customer Satisfaction Rankings - Research Report on CVS Caremark, Walgreens, McKesson, AmerisourceBergen, and Cardinal Health
    7. Cardinal Health Makes It Easier For Community Pharmacies To Help Patients Access, Improve Compliance With Specialty Medications
    8. Cardinal Health Helps Retail Pharmacies Meet Growing Patient Demand For Convenient Access To Home Health Care Products
    9. Aetna, Cardinal Health Specialty Solutions Alliance Delivers More Cost-Effective, Patient-Centered Cancer Care
    10. Cardinal Health Selects Datameer for Healthcare Data Discovery
    11. Cardinal Health Will Continue To Supply Pharmaceuticals To CVS Caremark Corporation
    Post Your Comments:
    *Name:
    *Comment:
    *Email:
    (Date:7/17/2019)... ... ... Chlorophyll Water was selected by the Permanent Mission of India to be the ... International Day of Yoga, unofficially referred to as Yoga Day, is celebrated annually on ... General Assembly. , Marking the International Yoga Day, the United Nations held a series ...
    (Date:7/17/2019)... ... July 17, 2019 , ... Eargo the direct-to-consumer ... with the addition of three new executive hires: CFO Adam Laponis (from Tesla, Inc.), ... Cruz (from Rappi, Inc., Apple, Inc.). , The new hires come on the ...
    (Date:7/17/2019)... ... 17, 2019 , ... SmartLinx, a leader in workforce management solutions, today announced ... employees by enabling them to take control of their schedules and quickly close scheduling ... and do more work -- highly engaged business units realize a 41% reduction in ...
    Breaking Medicine Technology:
    (Date:7/23/2019)... ... July 23, 2019 , ... Clarion Safety Systems, a ... new online custom pipe marker designer , allowing customers to easily meet all ... and convenience and takes just minutes to use. , Pipe markers play an ...
    (Date:7/23/2019)... ... July 23, 2019 , ... Shady Grove Fertility (SGF) , a ... of its newest full-service fertility and in vitro fertilization (IVF) program in the heart ... offers access to two leading, board certified reproductive endocrinologists, a state-of-the-art laboratory, and an ...
    (Date:7/21/2019)... ... 20, 2019 , ... Board Certified plastic surgeon, Brian S. Glatt, MD, FACS ... Fellow of the American College of Surgeons, is licensed to practice plastic and reconstructive ... the American Society of Plastic Surgery and the American Society for Aesthetic Plastic Surgery, ...
    (Date:7/18/2019)... ... July 18, 2019 , ... NeoTract, a ... the field of urology, today announced that Garrett Matsunaga, MD, Skyline Urology in ... recognizes that Dr. Matsunaga has achieved a high level of training and experience ...
    (Date:7/18/2019)... JOLLA, Calif. (PRWEB) , ... July 18, 2019 , ... ... into their future children, announces a new publication titled, “ Accurate Fetal Sex Determination ... & Child Birth. In the study, DNA blood samples were collected from 108 women ...
    Breaking Medicine News(10 mins):