Medco Delivers Record Third-Quarter 2009 GAAP Diluted EPS of $0.69; Diluted EPS Excluding Amortization of Intangible Asset...(onsolidated statements of income and mus...),Health

Date:11/3/2009

onsolidated statements of income and must be considered in performing a comprehensive assessment of overall financial performance. EBITDA, and the associated year-to-year trends, should not be considered in isolation. Medco's calculation of EBITDA may not be consistent with calculations of EBITDA used by other companies.

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

Medco uses diluted earnings per share excluding intangible asset amortization expense that existed when Medco became a public company in 2003 as a supplemental measure of operating performance. The excluded amortization is associated with intangible assets that substantially arose in connection with the acquisition of Medco by Merck & Co., Inc. in 1993 and were pushed down to Medco's balance sheet. The company believes that diluted earnings per share, excluding the amortization of these intangibles, is a useful measure because by adjusting for this significant non-cash item it enhances comparability of the company's financial results with its peers. The intangible asset amortization resulting from Medco's acquisitions, such as the acquisitions of Accredo Health,
'/>"/>

SOURCE Medco Health Solutions, Inc. Copyright©2009 PR Newswire. All rights reserved

0 GOOD

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Related medicine technology :

1. Medco to Present at November 2009 Investor Conferences
2. The Medco Foundation Joins With the Entertainment Industry Foundation to Give Health a Hand to Communities in Need
3. Medcos 2010 Medicare Prescription Drug Plan Helps People Take an Active Part in Lowering Prescription Costs
4. Medco Announces Date for Third-Quarter 2009 Financial Results; Company to Provide 2010 Earnings Guidance
5. Siemens Delivers Flash Speed, Lowest Dose to Arnold Palmer Hospital for Children
6. Varian, Inc. Delivers a Productivity Increase of Up to 100% With Its 710-ES Series ICP-OES
7. Ethicon Endo-Surgery Launches New Echelon Flex(TM) Endopath(R) Stapler That Delivers Echelon(TM) Compression, Now With Natural Articulation
8. Hoviones TwinCaps(R) Inhaler Delivers Successfully in Phase III Clinical Trials for Influenza
9. Vtech(R) Delivers Todays Hottest Trends to Tech-Savvy Kids
10. VivoMetrics(R) Introduces Next Generation LifeShirt Prototype, a Smart Garment That Delivers Real-time Vital Signs Remotely to Healthcare Providers
11. VELCADE(R) (Bortezomib) for Injection Based Treatment Delivers Impressive Complete Response and Survival in Patients With Newly Diagnosed Multiple Myeloma