Navigation Links
Express Scripts Reports Third Quarter 2013 Results
Date:10/24/2013

ST. LOUIS, Oct. 24, 2013 /PRNewswire/ -- Express Scripts Holding Company (Nasdaq: ESRX) announced 2013 third quarter net income from continuing operations attributable to Express Scripts shareholders of $442.2 million, or $0.54 per diluted share.  Adjusted earnings per diluted share from continuing operations attributable to Express Scripts, as detailed in Table 4, were $1.08 for the third quarter.  The quarter reflects a reduction in the income tax rate to adjust the full year rate to 38.5%, which resulted in a $0.01 increase in diluted earnings per share.

"We continue to be positive on the long-term outlook for our industry and our Company," stated George Paz, chairman and chief executive officer. "As the healthcare landscape continues to evolve, we are well-positioned to help clients and members successfully navigate a rapidly-changing environment full of new rules and regulations. Our breadth of client solutions across traditional pharmacy benefit management, specialty management, and Medicare Part D is unparalleled in the industry."

Third Quarter 2013 Review  

  • Adjusted claims from continuing operations of 358.1 million, down 9% from the third quarter of 2012, including the expected roll-off of claims from UnitedHealth Group
  • Adjusted EBITDA from continuing operations attributable to Express Scripts of $1.7 billion, up 3% from the third quarter of 2012 - See Table 3
  • Adjusted EBITDA from continuing operations attributable to Express Scripts per adjusted claim of $4.63, up 13% from the third quarter of 2012 - See Table 3
  • Interest income includes a contractual interest payment received from a client for $24.9 million that is excluded from adjusted earnings per diluted share – See Table 4
  • Adjusted effective income tax rate for continuing operations attributable to Express Scripts for the quarter of 37.9%, with the full year adjusted effective income tax rate for continuing operations attributable to Express Scripts expected to be approximately 38.5% - See Table 5
  • Net cash flow provided by operating activities from continuing operations was $1.0 billion for the quarter, up 31% from the third quarter of 2012
  • Repurchase of 11.6 million shares of common stock for $751.5 million during the quarter, leaving 51.3 million shares available under the current share repurchase program
  • 2013 Guidance The Company previously provided 2013 guidance on adjusted earnings per diluted share from continuing operations attributable to Express Scripts in the range of $4.26 to $4.34, or growth of 14% to 16% over 2012.
    Based on the Company's performance and reduced tax rate, the Company is raising the low end of the range by $0.04. As such, the Company now anticipates achieving adjusted earnings per diluted share from continuing operations attributable to Express Scripts for 2013 in the range of $4.30 to $4.34, or 15% to 16% growth over 2012. 

    Due to delays in certain non-client integration activities, including the migration of all Medco's legacy payment cycles to Express Scripts' cycles, the Company has adjusted its 2013 cash flow guidance range to $4.0 billion to $4.5 billion from the previous range of $4.5 billion to $5.0 billion. 

    Adjusted earnings per diluted share from continuing operations attributable to Express Scripts for the fourth quarter is expected to be between $1.09 and $1.13.

    Adjusted earnings per diluted share from continuing operations attributable to Express Scripts for 2013 exclude items as detailed in Table 6.

    About Express Scripts Express Scripts (NASDAQ: ESRX) manages more than a billion prescriptions each year for tens of millions of patients. On behalf of our clients – employers, health plans, unions and government health programs – we make the use of prescription drugs safer and more affordable. Express Scripts uniquely combines three capabilities – behavioral sciences, clinical specialization and actionable data – to create Health Decision Science(SM), our innovative approach to help individuals make the best drug choices, pharmacy choices and health choices. Better decisions mean healthier outcomes.

    Headquartered in St. Louis, Express Scripts provides integrated pharmacy benefit management services, including network-pharmacy claims processing, home delivery, specialty benefit management, benefit-design consultation, drug-utilization review, formulary management, and medical and drug data analysis services. The company also distributes a full range of biopharmaceutical products and provides extensive cost-management and patient-care services.

    For more information, visit Lab.Express-Scripts.com or follow @ExpressScripts on Twitter.

    SAFE HARBOR STATEMENTThis press release contains forward-looking statements, including, but not limited to, our 2013 guidance and our statements related to the Company's plans, objectives, expectations (financial and otherwise) or intentions. Actual results may differ significantly from those projected or suggested in any forward-looking statements.  Factors that may impact these forward-looking statements can be found in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") on or about October 24, 2013 and Item 1A – "Risk Factors" in the Company's Annual Report on Form 10-K filed with the SEC on February 19, 2013.  A copy of these documents can be found at the Investor Information section of Express Scripts' web site at http://www.express-scripts.com/corporate.

    We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

      EXPRESS SCRIPTS HOLDING COMPANY  Unaudited Consolidated Statement of Operations  Three Months Ended
    September 30,  Nine Months Ended
    September 30,   (in millions, except per share data) 2013201220132012Revenues(*)

    $ 25,915.6$ 26,761.6$ 78,317.4$ 66,349.2Cost of revenues(*)

    23,921.424,658.772,246.061,335.0Gross profit 

    1,994.22,102.96,071.45,014.2Selling, general and administrative

    1,118.71,282.23,348.53,127.2Operating income

    875.5820.72,722.91,887.0Other (expense) income:Equity income from joint venture 

    6.35.123.19.4Interest income25.71.428.46.0Interest expense and other 

    (127.4)(155.2)(470.4)(461.6)(95.4)(148.7)(418.9)(446.2)Income before income taxes

    780.1672.02,304.01,440.8Provision for income taxes

    326.5256.1896.0602.5Net income from continuing operations

    453.6415.91,408.0838.3Net loss from discontinued operations, net of tax

    (15.5)(20.0)(41.3)(19.2)Net income

    438.1395.91,366.7819.1Less: Net income attributable to non-controlling interest

    11.44.524.010.3Net income attributable to Express Scripts

    $
    426.7$
    391.4$   1,342.7$
    808.8Weighted average number of common shares outstanding during the period: Basic 

    810.2812.9814.7702.4Diluted 

    822.9829.6828.0718.9Basic earnings per share:Continuing operations attributable to Express Scripts

    $
    .55$
    .51$
    .70$
    .18Discontinued operations attributable to Express Scripts

    (0.02)(0.02)(0.05)(0.03)Net earnings attributable to Express Scripts

    0.530.481.651.15Diluted earnings per share:Continuing operations attributable to Express Scripts

    $
    .54$
    .50$
    .67$
    .15Discontinued operations attributable to Express Scripts

    (0.02)(0.02)(0.05)(0.03)Net earnings attributable to Express Scripts

    0.520.471.621.13Amounts attributable to Express Scripts shareholders:Income from continuing operations, net of tax

    $
    442.2$
    411.4$   1,384.0$
    828.0Discontinued operations, net of tax

    (15.5)(20.0)(41.3)(19.2)Net income attributable to Express Scripts shareholders

    $
    426.7$
    391.4$   1,342.7$
    808.8(*) Includes retail pharmacy co-payments of $2,966.5 million and $3,348.9 million for the three months ended September 30, 2013 and 2012, respectively, and $9,845.2 million and $8,364.6 million for the nine months ended September 30, 2013 and 2012, respectively. 

      EXPRESS SCRIPTS HOLDING COMPANY  Unaudited Consolidated Balance Sheet  September 30,December 31,  (in millions) 20132012 Assets  Current assets:  Cash and cash equivalents 

    $
    ,722.3$
    2,793.1 Restricted cash and investments 

    19.219.6 Receivables, net 

    5,112.45,425.8 Inventories 

    1,643.61,652.1 Deferred taxes 

    422.7400.6 Prepaid expenses and other current assets 

    179.0194.3 Current assets of discontinued operations 

    125.0271.4Total current assets 

    9,224.210,756.9 Property and equipment, net 

    1,629.21,632.1 Goodwill 

    29,306.329,320.4 Other intangible assets, net 

    14,525.916,037.9 Other assets 

    56.656.1 Noncurrent assets of discontinued operations 

    20.8307.8Total assets 

    $
    54,763.0$
    58,111.2 Liabilities and Stockholders' Equity  Current liabilities:  Claims and rebates payable 

    $
    ,459.7$
    7,440.0 Accounts payable 

    2,573.42,898.9 Accrued expenses 

    1,496.71,632.9 Current maturities of long-term debt 

    631.6934.9 Current liabilities of discontinued operations 

    64.8150.7Total current liabilities 

    11,226.213,057.4 Long-term debt 

    13,482.014,980.1 Deferred taxes 

    5,589.05,936.5 Other liabilities 

    746.3692.9 Noncurrent liabilities of discontinued operations 

    0.448.6Total liabilities 

    31,043.934,715.5 Stockholders' Equity:  Preferred stock, 15.0 shares authorized, $0.01 par value per share; and no shares issued and outstanding -- Common stock, 2,985.0 shares authorized, $0.01 par value per share; shares issued: 830.7 and 818.1, respectively; shares outstanding: 805.8 and 818.1, respectively 8.38.2 Additional paid-in capital 

    21,820.221,289.7 Accumulated other comprehensive income 

    15.418.9 Retained earnings 

    3,410.92,068.225,254.823,385.0 Common stock in treasury at cost, 24.9 and zero shares, respectively 

    (1,552.5)-Total Express Scripts stockholders' equity 

    23,702.323,385.0 Non-controlling interest 

    16.810.7Total stockholders' equity 

    23,719.123,395.7Total liabilities and stockholders' equity 

    $
    54,763.0$
    58,111.2 

      EXPRESS SCRIPTS HOLDING COMPANY  Unaudited Consolidated Statement of Cash Flows  Nine Months Ended
    September 30,  (in millions) 20132012 Cash flows from operating activities:  Net income 

    $ 1,366.7$
    819.1 Net loss from discontinued operations, net of tax 

    41.319.2Net income from continuing operations 

    1,408.0838.3 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 

    1,824.01,270.0Deferred income taxes 

    (376.2)(338.0)Employee stock-based compensation expense 

    131.2341.6Other, net 

    25.843.7 Changes in operating assets and liabilities:Accounts receivable 

    194.5417.1Inventories 

    8.6(358.1)Other current and noncurrent assets 

    37.331.5Claims and rebates payable 

    (980.3)(647.2)Accounts payable 

    (320.5)142.7Other current and noncurrent liabilities 

    (109.3)303.8 Net cash provided by operating activities - continuing operations 

    1,843.12,045.4 Net cash (used in) provided by operating activities - discontinued operations 

    (20.7)9.3 Net cash flows provided by operating activities 

    1,822.42,054.7 Cash flows from investing activities: Proceeds from sale of business 

    313.031.5Purchases of property and equipment 

    (274.6)(101.9)Acquisitions, net of cash acquired 

    (14.5)(10,326.0)Other 

    (11.8)(16.2) Net cash provided by (used in) investing activities - continuing operations 

    12.1(10,412.6) Acquisitions, cash acquired - discontinued operations 

    -42.4 Net cash used in investing activities - discontinued operations 

    (2.1)(4.1) Net cash provided by (used in) investing activities 

    10.0(10,374.3) Cash flows from financing activities: Repayment of long-term debt 

    (1,773.7)(2,710.6)Treasury stock acquired 

    (1,552.5)-Net proceeds from employee stock plans 

    383.6276.5Excess tax benefit relating to employee stock compensation 

    23.230.4Distributions paid to non-controlling interest 

    (18.0)(5.3)Proceeds from long-term debt, net of discounts 

    -7,458.9Repayment of revolving credit line, net 

    -(1,000.0)Proceeds from accounts receivable financing facility 

    -600.0Repayment of accounts receivable financing facility 

    -(600.0)Other 

    15.4(103.2) Net cash (used in) provided by financing activities - continuing operations 

    (2,922.0)3,946.7 Net cash used in financing activities - discontinued operations 

    -(1.3) Net cash (used in) provided by financing activities 

    (2,922.0)3,945.4 Effect of foreign currency translation adjustment 

    (4.5)2.6 Less: cash decrease (increase) attributable to discontinued operations 

    23.3(47.3) Net decrease in cash and cash equivalents 

    (1,070.8)(4,418.9) Cash and cash equivalents at beginning of period 

    2,793.15,620.1 Cash and cash equivalents at end of period 

    $ 1,722.3$  1,201.2 

      Table 1   Express Scripts Holding Company Unaudited Consolidated Selected Information  (in millions)  Three Months Ended
    September 30, Nine Months Ended
    September 30,2013201220132012Claims VolumeContinuing operations:Network

    256.9282.9805.9721.5Home delivery and specialty(1)

    34.638.0106.690.5Total claims 

    291.5320.9912.5812.0Total adjusted claims - continuing operations(2)

    358.1393.71,117.3984.6 Depreciation and Amortization (D&A): Revenue amortization(3)

    $   28.5$   28.5$
    85.5$
    85.5 Cost of revenues depreciation 

    31.437.388.772.7 Selling, general and administrative depreciation 

    77.347.2222.7120.5 Selling, general and administrative amortization(3)

    477.1497.51,427.1991.3Total D&A - continuing operations 

    $ 614.3$ 610.5$ 1,824.0$ 1,270.0 Generic Fill Rate  Network 

    81.6%79.7%81.6%78.9% Home delivery 

    74.8%72.2%74.5%70.6% Overall 

    80.8%78.8%80.7%78.0% Note: See Appendix for Footnotes  

     Table 2Calculation of Express Scripts Holding Company Adjusted Gross Profit and SG&A - Continuing Operations(in millions) Three Months Ended
    September 30,  Nine Months Ended
    September 30,2013201220132012Gross profit, as reported

    $ 1,994.2$ 2,102.9$ 6,071.4$ 5,014.2Amortization of intangible assets (3)

    28.528.585.585.5Non-recurring transaction and integration costs (4)

    56.821.8137.933.7Adjusted gross profit

    $ 2,079.5$ 2,153.2$ 6,294.8$ 5,133.4Selling, general and administrative, as reported

    $ 1,118.7$ 1,282.2$ 3,348.5$ 3,127.2Amortization of intangible assets (3)

    477.1497.51,427.1991.3Non-recurring transaction and integration costs (4)

    130.8167.6346.2574.6Adjusted selling, general and administrative

    $
    510.8$
    7.1$ 1,575.2$ 1,561.3 Note: See Appendix for Footnotes The Company is providing adjusted gross profit and adjusted selling, general and administrative expenses (both of which are non-GAAP financial measures), in each case, excluding the impact of non-recurring charges and amortization of intangible assets in order to compare the underlying financial performance to prior periods. 

      Table 3  Express Scripts Holding Company EBITDA and Adjusted EBITDA  Reconciliation  (in millions, except per claim data) The following is a reconciliation of net income from continuing operations attributable to Express Scripts to EBITDA and adjusted EBITDA from continuing operations attributable to Express Scripts, and adjusted EBITDA from continuing operations attributable to Express Scripts per adjusted claim.  The Company believes net income is the most directly comparable measure calculated under U.S. GAAP. 

     Three Months Ended
    September 30, Nine Months Ended
    September 30,2013201220132012Net income from continuing operations, attributable to Express Scripts, as reported

    $
    442.2$
    411.4$ 1,384.0$
    828.0  Provision for income taxes

    326.5256.1896.0602.5  Depreciation and amortization

    614.3610.51,824.01,270.0  Interest expense, net

    101.7153.8442.0455.6  Equity income from joint venture

    (6.3)(5.1)(23.1)(9.4)EBITDA from continuing operations, attributable to Express Scripts, as reported

    1,478.41,426.74,522.93,146.7Non-recurring transaction and integration costs (4)(*)

    178.5189.4473.0608.3Adjusted EBITDA from continuing operations, attributable to Express Scripts

    $ 1,656.9$ 1,616.1$ 4,995.9$ 3,755.0Total adjusted claims - continuing operations

    358.1393.71,117.3984.6Adjusted EBITDA from continuing operations, attributable to Express Scripts, per adjusted claim

    $
    4.63$
    4.10$
    4.47$
    3.81 Note: See Appendix for Footnotes The Company is providing EBITDA and adjusted EBITDA from continuing operations attributable to Express Scripts excluding the impact of non-recurring charges (both of which are non-GAAP financial measures) in order to compare the underlying financial performance to prior periods.EBITDA from continuing operations attributable to Express Scripts is earnings before other income (expense), interest, taxes, depreciation and amortization, or alternatively calculated as operating income from continuing operations plus depreciation and amortization less non-controlling interest.  EBITDA from continuing operations attributable to Express Scripts is presented because it is a widely accepted indicator of a company's ability to service indebtedness and is frequently used to evaluate a company's performance.  EBITDA from continuing operations attributable to Express Scripts, however, should not be considered as an alternative to net income from continuing operations, as a measure of operating performance, as an alternative to cash flow, as a measure of liquidity or as a substitute for any other measure computed in accordance with accounting principles generally accepted in the United States.  In addition, our definition and calculation of EBITDA from continuing operations attributable to Express Scripts may not be comparable to that used by other companies.Adjusted EBITDA from continuing operations attributable to Express Scripts per adjusted claim is a supplemental measurement used by analysts and investors to help evaluate overall operating performance.  We have calculated adjusted EBITDA from continuing operations attributable to Express Scripts excluding certain charges recorded each year, as these charges are not considered an indicator of ongoing company performance.  Adjusted EBITDA from continuing operations attributable to Express Scripts per adjusted claim is calculated by dividing adjusted EBITDA from continuing operations attributable to Express Scripts by the adjusted claim volume for the period.  This measure is used as an indicator of adjusted EBITDA attributable to Express Scripts performance on a per-unit basis.  Adjusted EBITDA from continuing operations attributable to Express Scripts, and as a result, adjusted EBITDA from continuing operations attributable to Express Scripts per adjusted claim, are each affected by the changes in claim volumes between retail and home delivery, the relative representation of brand-name, generic and specialty pharmacy drugs, as well as the level of efficiency in the business. *  Non-recurring transaction and integration costs presented in this table exclude $9.1 million for the three months and $11.1 million for the nine months ended September 30, 2013 related to depreciation which does not impact the calculation of EBITDA. 

      Table 4  Calculation of Express Scripts Holding Company Adjusted EPS from Continuing Operations  Three Months Ended
    September 30, Nine Months Ended
    September 30, 2013201220132012 (per diluted share) EPS from continuing operations attributable to Express Scripts, as reported$ 0.54$ 0.50$ 1.67$ 1.15Non-recurring items: Transaction and integration costs (4)

    0.140.140.360.50Interest payment(5)

    (0.02)-(0.02)-Debt redemption costs (6)

    --0.05-Pre-close financing costs (7)

    ---0.07Discrete tax items (8)

    0.05-0.040.06Amortization of intangible assets (3)

    0.370.391.110.90EPS from continuing operations attributable to Express Scripts, adjusted$ 1.08$ 1.03$ 3.21$ 2.68 Note: See Appendix for Footnotes The Company is providing EPS and adjusted EPS, which excludes the impact of certain non-recurring items and amortization of intangible assets (which is a non-GAAP financial measure) in order to compare the underlying financial performance to prior periods. 

      Table 5  Calculation of Express Scripts Holding Company Adjusted Effective Income Tax Rate for Continuing Operations  (in millions)  Three Months Ended
    September 30, 2013  Nine Months Ended
    September 30, 2013 Income before income taxesProvision for income taxesAdjusted effective income tax rateIncome before income taxesProvision for income taxesAdjusted effective income tax rateIncome from continuing operations, as reported

    780.1326.52,304.0896.0Non-controlling interest

    (11.4)-(24.0)-Total continuing  operations attributable to Express Scripts, as reported

    768.7326.52,280.0896.0Non-recurring items: Transaction and integration costs(4)

    187.672.2484.1188.8Interest payment (5)

    (24.9)(9.7)(24.9)(9.7)Debt redemption costs(6)

    --68.526.9Discrete tax items(8)(38.7)-(29.7)Amortization of intangible assets(3)

    505.6194.31,512.6590.1Total continuing operations attributable to Express Scripts, as adjusted

    1,437.0544.637.9%4,320.31,662.438.5% Note: See Appendix for Footnotes. The Company is providing adjusted effective income tax rate for continuing operations attributable to Express Scripts excluding the impact of non-recurring items and amortization of intangible assets (which is a non-GAAP financial measure) in order to compare the underlying financial performance to prior periods. 

      Table 6  Express Scripts Holding Company 2013 Guidance Information  Estimated
    Year Ending
    December 31, 2013  Current Guidance  Previous Guidance Adjusted EPS from continuing operations attributable to Express Scripts*$4.30 - $4.34$4.26 - $4.34Year over year growth

    15% - 16%14% - 16%Total adjusted claimsUp 5-6% from 2012Up 5-6% from 2012Depreciation$395 - $405 million$410 - $425 millionSelling, general and administrativeApproximately 8% decline**Approximately 8% declineNon-controlling interest$30 million$25 millionEffective income tax rate on continuing operationsApproximately 38.5%Approximately 38.8%EBITDA from continuing operations attributable to Express Scripts  per adjusted claimUp 15-18% from 2012Up 15-18% from 2012Diluted weighted average shares outstanding during the periodLower end of 825-835 million sharesLower end of 825-835 million sharesCash flow from continuing operations $4.0 billion - $4.5 billion***$4.5 billion - $5.0 billion(*) GAAP items not included in guidance:Amortization of intangible assets (9)

    $1.50Transaction, integration and other non-recurring costs(10)

     To be determined *The full-year impact of transaction, integration and other non-recurring costs have yet to be determined. Accordingly, the Company is unable to include these charges in the list of GAAP items not included in guidance for 2013 revised adjusted EPS from continuing operations or to provide a reconciliation to the corresponding GAAP measure. ** Selling, general and administrative expense is expected to decline approximately 8% from $2,338.2 million on an adjusted basis in 2012 (as recast for discontinued operations).*** Due to delays in certain non-client integration activities, including the migration of Medco's legacy payment cycles to Express Scripts' cycles, the Company has adjusted its 2013 cash flow guidance range to $4.0 billion to $4.5 billion from the previous range of $4.5 billion to $5.0 billion. Note: See Appendix for Footnotes  

      Appendix  Footnotes (1) Includes home delivery, specialty and other including:  (a) drugs distributed through patient assistance programs (b) drugs we distribute to other PBMs' clients under limited distribution contracts with pharmaceutical manufacturers and (c) FreedomFP claims. (2) Total adjusted claims reflect home delivery claims multiplied by 3, as home delivery claims typically cover a time period 3 times longer than retail claims. (3) Amortization of intangible assets includes the following items:
    Amortization of legacy Express Scripts intangible assets include amounts in both revenues and selling, general and administrative expense.
    Revenue amortization is related to the customer contract with WellPoint which consummated upon closing of the NextRx acquisition in 2009.  Under U.S. GAAP standards, amortization of intangibles that arise in connection with consideration given to a customer by a vendor is characterized as a reduction of revenues.  Intangible amortization of $28.5 million ($17.5 million and $17.6 million net of tax in 2013 and 2012, respectively) is included as a reduction to revenue for the three months ended September, 2013 and 2012.
    Intangible amortization of $85.5 million ($52.1 million and $51.2 million net of tax in 2013 and 2012, respectively) is included as a reduction to revenue for the nine months ended September 30, 2013 and 2012.Other legacy Express Scripts intangible amortization of $10.2 million ($6.3 million net of tax) and $10.1 million ($6.3 million net of tax) is included in selling, general and administrative expense for the three months ended September 30, 2013 and 2012, respectively.  Other legacy Express Scripts intangible amortization of $30.5 million ($18.6 million and $18.3 million net of tax in 2013 and 2012, respectively) is included in selling, general and administrative expense for the nine months ended September 30, 2013 and 2012, respectively.  Amortization of intangible assets related to the acquisition of Medco Health Solutions, Inc. ("Medco") of $466.9 million ($287.5 million net of tax) and $487.4 million ($301.7 million net of tax) for the three months ended September 30, 2013  and 2012, respectively, is included in selling, general and administrative expense. Amortization of intangible assets related to the acquisition of Medco of $1,396.6 million ($851.8 million net of tax) and $960.8 million ($575.5 million net of tax) for the nine months ended September 30, 2013 and 2012, respectively, is included in selling, general and administrative expense.(4) Non-recurring transaction and integration costs include those costs directly related to the acquisition of Medco. Costs of $56.8 million ($34.9 million net of tax) and $21.8 million ($13.5 million net of tax) primarily composed of integration-related activities, are included in gross profit for the three months ended September 30, 2013 and 2012, respectively.  Costs of $137.9 million ($84.1 million net of tax) and $33.7 million ($20.2 million net of tax) primarily composed of integration-related activities, are included in gross profit for the nine months ended September 30, 2013 and 2012, respectively.  Costs of $130.8 million ($80.5 million net of tax) and $158.9 million ($98.4 million net of tax) primarily composed of professional fees, integration-related activities and severance costs, including stock compensation, are included in selling, general and administrative expense in the three months ended September 30, 2013 and 2012, respectively.  Costs of $349.7 million ($213.3 million net of tax) and $565.9 million ($339.0 million net of tax) primarily composed of professional fees, integration-related activities and severance costs, including stock compensation, are included in selling, general and administrative expense in the nine months ended September 30, 2013 and 2012, respectively.The Company recorded a net benefit of $3.5 million ($2.1 million net of tax) within selling, general and administrative expenses for the nine months ended September 30, 2013 in conjunction with a final settlement related to the strategic decision to exit various businesses.
    The Company recorded net charges of $8.7 million ($5.4 million and $5.0 million net of tax in the three months and nine months, respectively) within selling, general and administrative expenses for the three months and nine months ended September 30, 2012 in conjunction with the strategic decision to exit various businesses.(5) Interest income includes a contractual interest payment received from a client of $24.9 million ($15.2 million net of tax) for the three months and nine months ended September 30, 2013. (6) Debt redemption costs and write-off of deferred financing fees incurred for the early redemption of senior notes totaled $68.5 million ($41.6 million net of tax) and is included in interest expense in the nine months ended September 30, 2013. (7) Financing costs include fees related to the amortization of fees relating to the August 2011 bridge loan, commitment fees related to the August 2011 credit agreement and interest and fees on the senior notes issued in conjunction with the acquisition of Medco.  Costs of $85.2 million ($51.0 million net of tax) are included in interest expense in the nine months ended September 30, 2012, respectively.(8) Provision for income taxes includes discrete tax charges for continuing operations of $38.7 million and $29.7 million for the three months and nine months ended September 30, 2013 due to changes in unrecognized tax benefits, the deferred tax implications of newly enacted state laws, and the deferred tax implications related to investments in certain foreign subsidiaries for which the Company expects to realize in the foreseeable future.  Provision for income taxes includes discrete tax benefits of $1.3 million and discrete tax charges of $43.5 million for the three months and nine months ended September 30, 2012 due to changes in unrecognized tax benefits and the reversal of the deferred tax asset previously established for transaction-related costs that became nondeductible upon the consummation of the Merger. (9) 2013 Adjusted EPS will exclude amortization of intangible assets.(10) 2013 Adjusted EPS will exclude transaction, integration and other non-recurring costs as well as any gains recognized on the sale of businesses considered discontinued operations. The full-year impact of these costs have yet to be determined.  


    '/>"/>
    SOURCE Express Scripts Holding Company
    Copyright©2012 PR Newswire.
    All rights reserved


    Related medicine technology :

    1. Ventana receives approval from Chinas FDA for first fully automated IHC companion diagnostic identifying ALK protein expression in lung cancer patients
    2. Express Scripts Acquires SmartD Medicare Prescription Drug Plan; Adds to Industry-Leading Medicare Offering
    3. Generex Provides Call-In Details for Conference Call with Members of the Antigen Express Scientific Advisory Board
    4. Express Scripts To Discuss Outlook for Future Growth
    5. Suture Express Announces New Board Chairman
    6. Patients and Physicians Express Desire to Switch to Transdermal Drug Delivery, Finds Frost & Sullivan
    7. The Zacks Analyst Blog Highlights: Walgreens, Express Scripts Holding, Haemonetics, ResMed and Eli Lilly
    8. Generex Announces ASCO Presentations on the Antigen Express Advanced Stage AE37 Cancer Vaccine
    9. Express Scripts Reports First Quarter 2013 Results
    10. Bipartisan Group of 124 Lawmakers Express Concern That Medicare Cuts to Life-Sustaining Cancer Drugs Threatening Patient Care
    11. Express Scripts Holding Company Announces First Quarter 2013 Earnings Conference Call
    Post Your Comments:
    *Name:
    *Comment:
    *Email:
    (Date:2/11/2016)... Ohio , Feb. 11, 2016  Community pharmacists ... increasing efficiency for the pharmacy through a custom-built medication ... Schieber , pharmacist and owner at Schieber Family ... "We can get a lot of patients enrolled in ... for everybody. It,s a win for the patient, and ...
    (Date:2/11/2016)... 11, 2016 Scientists from Silicon Biosystems ... opens the door to genetic analysis of previously ... impossible to isolate with 100 percent purity. Utilizing ... types in various stages of development, the researchers ... cells that are clinically relevant, and may change ...
    (Date:2/11/2016)... , Feb.11, 2016  Ionis Pharmaceuticals, Inc. (NASDAQ: ... webcast on Thursday, February 25 at 11:30 a.m. Eastern Time ... and business progress. www.ionispharma.com . A webcast ... same address. --> www.ionispharma.com . A webcast replay ... address. --> Interested parties may listen to the ...
    Breaking Medicine Technology:
    (Date:2/11/2016)... ... February 11, 2016 , ... ... diabetes has been gearing up for their simultaneous grand openings in March. All ... right now that you’re probably wondering, is reversing diabetes possible? According to this ...
    (Date:2/11/2016)... Plantation, Fla. (PRWEB) , ... February 11, 2016 ... ... CareTRAK™, an unparalleled clinical decision support technology, with highly adaptable algorithms, has ... cases. When a patient has signs and symptoms consistent with Zikas and a ...
    (Date:2/11/2016)... , ... February 11, 2016 , ... ... of a master charity program created to assist the people of their local ... closely with nonprofit organizations and community leaders. Their hope is to bring awareness ...
    (Date:2/11/2016)... ... ... Dickinson Insurance & Financial Services continues their commitment to act as Agents ... local boy named Barrett, who has been fighting ALL leukemia for almost two years. ... all local families dealing with childhood cancer. Information on how to help is now ...
    (Date:2/11/2016)... ... February 11, 2016 , ... Hoggan Scientific, ... gauges used in physical therapy, occupational therapy and sports medicine clinics, hospitals, universities ... exercise and therapy, introduces its new microFET Digital Pinch Gauge. , Hoggan ...
    Breaking Medicine News(10 mins):