CINCINNATI (April 26, 2012) — Omnicare reported an increase in profit today when it released its first quarter financial results.
“We are pleased with our first-quarter financial results, which reflect a continuation of our recently established earnings momentum,” said John Figueroa, Omnicare’s chief executive officer.
Prior year comparison
Financial results from continuing operations for the quarter ended March 31, 2012, as compared with the same prior-year period, were as follows:
• Gross profit was $368.1 million as compared with $335.0 million
• GAAP income from continuing operations per diluted share was $0.48 versus $0.43
• Adjusted diluted cash earnings per share from continuing operations was $0.81 versus $0.69
• Adjusted EBITDA from continuing operations was $169.7 million versus $146.2 million
Cash flows from continuing operations for the quarter ended March 31, 2012 were $100.4 million versus $143.9 million in the comparable prior-year quarter.
Sequential comparison
In comparison to the fourth quarter of 2011, financial results from continuing operations for the first quarter of 2012 were as follows:
• Gross profit was $368.1 million as compared with $359.7 million
• GAAP earnings per diluted share was $0.48 versus $0.34
• Adjusted diluted cash earnings per share from continuing operations was $0.81 versus $0.78
• Adjusted EBITDA from continuing operations was $169.7 million compared to $162.9 million
“During the quarter, we generated strong double-digit growth from both of our core businesses,” Figueroa said.
Financial position
Omnicare concluded the first quarter of 2012 with no borrowings outstanding on its revolving credit facility and $624.0 million in cash on its balance sheet. Omnicare’s total debt to total capital ratio of 34.2 percent at March 31, 2012, was approximately 30 basis points lower from 34.5 percent at December 31, 2011.
On March 29, 2012, Omnicare announced it had entered into separate, privately negotiated exchange agreements under which it retired $256.9 million in aggregate amount of its outstanding 3.75 percent Convertible Senior Subordinated Notes due 2025 in exchange for its issuance of $390 million in aggregate principal amount of new 3.75 percent Convertible Senior Subordinated Notes due 2042. These transactions closed on April 3, 2012, following which, $318.1 million in principal amount of the Existing Notes remain outstanding.
With respect to its share repurchase program, Omnicare repurchased approximately 0.7 million shares of common stock during the quarter and paid an aggregate amount of $22 million. As of March 31, 2012, the Company had approximately $237 million of availability under its current share repurchase authorization.
“We generated over $100 million in cash flows from continuing operations during the first quarter, enabling us to continue our disciplined and balanced approach to capital allocation,” said John L. Workman, Omnicare’s president and chief financial officer. “Through share repurchases and dividends, we exceeded our 25 percent target of capital returned to shareholders. Additionally, we enhanced our financial position while continuing to invest in capital initiatives that we believe support Omnicare’s long-term growth prospects.”
Segment information
Financial results for the Long-Term Care Group for the first quarter ended March 31, 2012, were as follows:
• Net sales of $1,296.3 million were up 1.5 percent from $1,277.4 million sequentially and up 0.5 percent from $1,290.1 million over the same prior-year period
• Adjusted operating income of $154.2 million was up 5.4 percent from $146.3 million sequentially and up 18.3 percent from $130.4 million over the same prior-year period
Financial results for the Specialty Care Group for the first quarter ended March 31, 2012 were as follows:
• Net sales of $293.3 million were up 6.2 percent from $276.2 million sequentially and up 26.8 percent from $231.3 million over the same prior-year period
• Adjusted operating income of $30.1 million was up 10.3 percent from $27.3 million sequentially and up 41.3 percent percent from $21.3 million over the same prior-year period
Special items
The results for the first quarter of 2012 and 2011 include the impact of special items totaling approximately $25.1 million pretax ($17.7 million aftertax, or approximately $0.15 per diluted share) and $14.9 million pretax ($9.3 million aftertax, or approximately $0.08 per diluted share), respectively.
Outlook
For the full-year 2012, Omnicare reaffirmed its previous expectations and continues to expect the following:
• Revenues of $6.1 billion to $6.2 billion
• Adjusted cash-based income per diluted share from continuing operations of $3.10 to $3.20, excluding special items
• Cash flow from continuing operations of $400 million to $500 million
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