Exhibit 99.01
CARDINAL HEALTH, INC. AND SUBSIDIARIES
GAAP / NON-GAAP INFORMATION
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | First Quarter 2007 | | Second Quarter 2007 | | Third Quarter 2007 | | Year-to-Date 2007 |
| | | GAAP | | Special
Items | | Impairment
Charges and
Other | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges and
Other | | Non-GAAP | | GAAP | | | Special
Items | | Impairment
Charges and
Other | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges and
Other | | Non-GAAP |
| (in millions, except per Common Share amounts) | | | | | | | | | | | | | | | | | | | |
Operating Earnings/(Loss) | | $451 | | $22 | | $2 | | $475 | | $512 | | $20 | | $13 | | $544 | | ($10 | ) | | $612 | | $4 | | $606 | | $953 | | $654 | | $18 | | $1,625 |
Provision for Income Taxes | | $122 | | $6 | | $1 | | $128 | | $164 | | $7 | | — | | $171 | | ($37 | ) | | $220 | | $2 | | $184 | | $249 | | $233 | | $2 | | $483 |
Earnings/(Loss) from Continuing Operations | | $291 | | $16 | | $1 | | $309 | | $316 | | $13 | | $13 | | $341 | | ($5 | ) | | $392 | | $2 | | $390 | | $602 | | $421 | | $16 | | $1,039 |
Diluted EPS from Continuing Operations1 | | $0.71 | | $0.04 | | — | | $0.75 | | $0.77 | | $0.03 | | $0.03 | | $0.83 | | ($0.01 | ) | | $0.96 | | $0.01 | | $0.96 | | $1.47 | | $1.03 | | $0.04 | | $2.54 |
The sum of the components may not equal the total due to rounding.
| 1 | The weighted average number of shares used in the non-GAAP calculation includes the dilutive potential common shares as there is income from continuing operations on a non-GAAP basis. |
1
CARDINAL HEALTH, INC. AND SUBSIDIARIES
GAAP / NON-GAAP INFORMATION
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | First Quarter 2006 | | Second Quarter 2006 | | Third Quarter 2006 | | Fourth Quarter 2006 | | Total Year 2006 |
| | | GAAP | | Special
Items | | Impairment
Charges
and Other | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges
and Other | | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges
and Other | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges
and Other | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges
and Other | | Non-GAAP |
| (in millions, except per Common Share amounts) | | | | | | | | | | | | | | | | | | | | | | |
Operating Earnings | | $366 | | $20 | | $2 | | $388 | | $457 | | $14 | | ($3 | ) | | $469 | | $535 | | $13 | | $5 | | $553 | | $487 | | $33 | | $1 | | $521 | | $1,845 | | $81 | | $6 | | $1,931 |
Provision for Income Taxes | | $108 | | $7 | | $1 | | $116 | | $145 | | $2 | | ($1 | ) | | $146 | | $168 | | $4 | | $2 | | $174 | | $156 | | $10 | | — | | $166 | | $577 | | $23 | | $2 | | $602 |
Earnings from Continuing Operations | | $234 | | $13 | | $1 | | $248 | | $285 | | $12 | | ($2 | ) | | $296 | | $340 | | $9 | | $3 | | $353 | | $304 | | $23 | | $1 | | $328 | | $1,163 | | $58 | | $4 | | $1,225 |
Diluted EPS from Continuing Operations | | $0.54 | | $0.03 | | — | | $0.58 | | $0.66 | | $0.03 | | — | | | $0.69 | | $0.80 | | $0.02 | | $0.01 | | $0.83 | | $0.72 | | $0.06 | | — | | $0.78 | | $2.71 | | $0.14 | | $0.01 | | $2.86 |
The sum of the components may not equal the total due to rounding.
2
CARDINAL HEALTH, INC. AND SUBSIDIARIES
GAAP / NON-GAAP INFORMATION
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | First Quarter 2005 | | Second Quarter 2005 | | Third Quarter 2005 | | Fourth Quarter 2005 | | Total Year 2005 |
| | | GAAP | | Special
Items | | Impairment
Charges
and Other | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges
and Other | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges
and Other | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges
and Other | | Non-GAAP | | GAAP | | Special
Items | | Impairment
Charges
and Other | | Non-GAAP |
| (in millions, except per Common Share amounts) | | | | | | | | | | | | | | | | | | | | | | |
Operating Earnings | | $318 | | $26 | | $2 | | $346 | | $404 | | $32 | | $15 | | $451 | | $554 | | $41 | | $9 | | $604 | | $507 | | $42 | | $12 | | $561 | | $1,782 | | $141 | | $38 | | $1,962 |
Provision for Income Taxes | | $100 | | $10 | | $1 | | $110 | | $121 | | $11 | | $6 | | $137 | | $174 | | $14 | | $3 | | $191 | | $203 | | $6 | | $4 | | $214 | | $597 | | $41 | | $14 | | $652 |
Earnings from Continuing Operations | | $189 | | $16 | | $1 | | $207 | | $257 | | $21 | | $9 | | $288 | | $348 | | $27 | | $6 | | $381 | | $273 | | $36 | | $8 | | $317 | | $1,067 | | $100 | | $24 | | $1,192 |
Diluted EPS from Continuing Operations | | $0.44 | | $0.04 | | — | | $0.48 | | $0.59 | | $0.05 | | $0.02 | | $0.66 | | $0.80 | | $0.06 | | $0.01 | | $0.87 | | $0.63 | | $0.08 | | $0.02 | | $0.73 | | $2.45 | | $0.23 | | $0.06 | | $2.74 |
The sum of the components may not equal the total due to rounding.
3
CARDINAL HEALTH, INC. AND SUBSIDIARIES
SCHEDULE OF NOTABLE ITEMS
| | | | | | | | | | | | | | | | |
| | | Fiscal 2007 | |
| | | Q1 | | | Q2 | | | Q3 | | | YTD | |
(in millions, except per Common Share amounts) | |
Special Items | | | | | | | | | | | | | | | | |
Restructuring charges | | $ | (11.8 | ) | | $ | (10.0 | ) | | $ | (6.6 | ) | | $ | (28.4 | ) |
Merger-related costs | | | (1.9 | ) | | | (9.1 | ) | | | (2.9 | ) | | | (14.0 | ) |
Litigation and other | | | (8.4 | ) | | | (0.5 | ) | | | (602.5 | ) | | | (611.4 | ) |
| | | | | | | | | | | | | | | | |
Total special items | | | (22.1 | ) | | | (19.6 | ) | | | (612.0 | ) | | | (653.8 | ) |
Tax benefit | | | 5.8 | | | | 7.1 | | | | 219.7 | | | | 232.7 | |
| | | | | | | | | | | | | | | | |
Special items, net of tax | | $ | (16.3 | ) | | $ | (12.5 | ) | | $ | (392.3 | ) | | $ | (421.1 | ) |
| | | | | | | | | | | | | | | | |
Decrease to diluted EPS from continuing operations | | $ | (0.04 | ) | | $ | (0.03 | ) | | $ | (0.96 | ) | | $ | (1.03 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Impairment Charges and Other | | | | | | | | | | | | | | | | |
Impairment charges and other | | $ | (1.7 | ) | | $ | (12.6 | ) | | $ | (3.6 | ) | | $ | (17.9 | ) |
Tax benefit | | | 0.6 | | | | 0.1 | | | | 1.2 | | | | 1.8 | |
| | | | | | | | | | | | | | | | |
Net impairment charges and other, net of tax | | $ | (1.1 | ) | | $ | (12.5 | ) | | $ | (2.4 | ) | | $ | (16.1 | ) |
| | | | | | | | | | | | | | | | |
Decrease to diluted EPS from continuing operations | | $ | — | | | $ | (0.03 | ) | | $ | (0.01 | ) | | $ | (0.04 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Weighted Average Number of Shares Outstanding | | | | | | | | | | | | | | | | |
Weighted average number of diluted shares outstanding | | | 413.0 | | | | 410.6 | | | | 394.6 | | | | 409.5 | |
Antidilutive effect due to loss from continuing operations | | | — | | | | — | | | | 10.5 | | | | — | |
| | | | | | | | | | | | | | | | |
Weighted average number of diluted shares outstanding for non-GAAP calculations | | | 413.0 | | | | 410.6 | | | | 405.1 | | | | 409.5 | |
4
CARDINAL HEALTH, INC. AND SUBSIDIARIES
SCHEDULE OF NOTABLE ITEMS
| | | | | | | | | | | | | | | | | | | | |
| | | Fiscal 2006 | |
| | | Q1 | | | Q2 | | | Q3 | | | Q4 | | | Total
Year | |
(in millions, except per Common Share amounts) | |
Special Items | | | | | | | | | | | | | | | | | | | | |
Restructuring charges | | $ | (7.5 | ) | | $ | (9.3 | ) | | $ | (11.2 | ) | | $ | (19.6 | ) | | $ | (47.6 | ) |
Merger-related costs | | | (6.9 | ) | | | (5.9 | ) | | | (7.2 | ) | | | (5.4 | ) | | | (25.4 | ) |
Litigation and other | | | (5.7 | ) | | | 0.9 | | | | 5.1 | | | | (7.8 | ) | | | (7.5 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total special items | | | (20.1 | ) | | | (14.3 | ) | | | (13.3 | ) | | | (32.8 | ) | | | (80.5 | ) |
Tax benefit | | | 7.4 | | | | 1.6 | | | | 3.9 | | | | 9.8 | | | | 22.6 | |
| | | | | | | | | | | | | | | | | | | | |
Special items, net of tax | | $ | (12.7 | ) | | $ | (12.7 | ) | | $ | (9.4 | ) | | $ | (23.0 | ) | | $ | (57.9 | ) |
| | | | | | | | | | | | | | | | | | | | |
Decrease to diluted EPS from continuing operations | | $ | (0.03 | ) | | $ | (0.03 | ) | | $ | (0.02 | ) | | $ | (0.06 | ) | | $ | (0.14 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Impairment Charges and Other | | | | | | | | | | | | | | | | | | | | |
Impairment charges and other | | $ | (2.0 | ) | | $ | 2.6 | | | $ | (5.2 | ) | | $ | (1.2 | ) | | $ | (5.8 | ) |
Tax benefit/(expense) | | | 0.7 | | | | (0.8 | ) | | | 1.7 | | | | 0.4 | | | | 2.0 | |
| | | | | | | | | | | | | | | | | | | | |
Net impairment charges and other, net of tax | | $ | (1.3 | ) | | $ | 1.8 | | | $ | (3.5 | ) | | $ | (0.8 | ) | | $ | (3.8 | ) |
| | | | | | | | | | | | | | | | | | | | |
Decrease to diluted EPS from continuing operations | | $ | — | | | $ | — | | | $ | (0.01 | ) | | $ | — | | | $ | (0.01 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Non-Recurring and Other Items1 | | | | | | | | | | | | | | | | | | | | |
Total non-recurring | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Vendor credit adjustment | | | (31.8 | ) | | | 3.5 | | | | 2.4 | | | | — | | | | (25.9 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total non-recurring and other items | | | (31.8 | ) | | | 3.5 | | | | 2.4 | | | | — | | | | (25.9 | ) |
Tax benefit/(expense) | | | 10.3 | | | | (1.1 | ) | | | (0.8 | ) | | | — | | | | 8.4 | |
| | | | | | | | | | | | | | | | | | | | |
Total non-recurring and other items, net of tax | | $ | (21.5 | ) | | $ | 2.4 | | | $ | 1.6 | | | $ | — | | | $ | (17.5 | ) |
| | | | | | | | | | | | | | | | | | | | |
Decrease to diluted EPS from continuing operations | | $ | (0.05 | ) | | $ | 0.01 | | | $ | 0.01 | | | $ | — | | | $ | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Weighted Average Number of Diluted Shares Outstanding | | | 431.4 | | | | 431.9 | | | | 427.5 | | | | 421.7 | | | | 428.5 | |
1 | Non-recurring and other items are items that were identified in fiscal 2005 and 2006 as unique items or related to prior periods. The company ceased using this category beginning with fiscal 2007. |
5
CARDINAL HEALTH, INC. AND SUBSIDIARIES
SCHEDULE OF NOTABLE ITEMS
| | | | | | | | | | | | | | | | | | | | |
| | | Fiscal 2005 | |
| | | Q1 | | | Q2 | | | Q3 | | | Q4 | | | Total
Year | |
(in millions, except per Common Share amounts) | |
Special Items | | | | | | | | | | | | | | | | | | | | |
Restructuring charges | | $ | (2.1 | ) | | $ | (34.1 | ) | | $ | (24.3 | ) | | $ | (19.8 | ) | | $ | (80.3 | ) |
Merger-related costs | | | (16.4 | ) | | | (9.8 | ) | | | (9.5 | ) | | | (12.6 | ) | | | (48.3 | ) |
Litigation and other | | | (7.5 | ) | | | 11.5 | | | | (7.1 | ) | | | (9.8 | ) | | | (12.9 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total special items | | | (26.0 | ) | | | (32.4 | ) | | | (40.9 | ) | | | (42.2 | ) | | | (141.5 | ) |
Tax benefit | | | 9.7 | | | | 11.4 | | | | 14.0 | | | | 5.8 | | | | 40.8 | |
| | | | | | | | | | | | | | | | | | | | |
Special items, net of tax | | $ | (16.3 | ) | | $ | (21.0 | ) | | $ | (26.9 | ) | | $ | (36.4 | ) | | $ | (100.7 | ) |
| | | | | | | | | | | | | | | | | | | | |
Decrease to diluted EPS from continuing operations | | $ | (0.04 | ) | | $ | (0.05 | ) | | $ | (0.06 | ) | | $ | (0.08 | ) | | $ | (0.23 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Impairment Charges and Other | | | | | | | | | | | | | | | | | | | | |
Impairment charges and other | | $ | (1.8 | ) | | $ | (15.2 | ) | | $ | (9.2 | ) | | $ | (12.1 | ) | | $ | (38.3 | ) |
Tax benefit | | | 0.7 | | | | 5.6 | | | | 3.4 | | | | 4.5 | | | | 14.2 | |
| | | | | | | | | | | | | | | | | | | | |
Net impairment charges and other, net of tax | | $ | (1.1 | ) | | $ | (9.6 | ) | | $ | (5.8 | ) | | $ | (7.6 | ) | | $ | (24.1 | ) |
| | | | | | | | | | | | | | | | | | | | |
Decrease to diluted EPS from continuing operations | | $ | — | | | $ | (0.02 | ) | | $ | (0.01 | ) | | $ | (0.02 | ) | | $ | (0.06 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Non-Recurring and Other Items1 | | | | | | | | | | | | | | | | | | | | |
Alaris inventory adjustment | | $ | (20.2 | ) | | $ | (3.4 | ) | | $ | — | | | $ | — | | | $ | (23.6 | ) |
Latex litigation | | | (16.4 | ) | | | — | | | | — | | | | (11.8 | ) | | | (28.2 | ) |
Inventory adjustment – SKU rationalization | | | — | | | | — | | | | (7.2 | ) | | | (0.6 | ) | | | (7.8 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total non-recurring | | | (36.6 | ) | | | (3.4 | ) | | | (7.2 | ) | | | (12.4 | ) | | | (59.6 | ) |
Vendor credit adjustment | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total non-recurring and other items | | | (36.6 | ) | | | (3.4 | ) | | | (7.2 | ) | | | (12.4 | ) | | | (59.6 | ) |
Tax benefit of non-recurring and other items | | | 12.2 | | | | 1.1 | | | | 2.3 | | | | 4.4 | | | | 20.0 | |
HIA repatriation tax provision | | | — | | | | — | | | | — | | | | (26.3 | ) | | | (26.3 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total non-recurring and other items, net of tax | | $ | (24.4 | ) | | $ | (2.3 | ) | | $ | (4.9 | ) | | $ | (34.3 | ) | | $ | (65.9 | ) |
| | | | | | | | | | | | | | | | | | | | |
Decrease to diluted EPS from continuing operations | | $ | (0.06 | ) | | $ | (0.01 | ) | | $ | (0.01 | ) | | $ | (0.08 | ) | | $ | (0.15 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Weighted Average Number of Diluted Shares Outstanding | | | 434.7 | | | | 437.1 | | | | 437.8 | | | | 432.4 | | | | 435.7 | |
1 | Non-recurring and other items are items that were identified in fiscal 2005 and 2006 as unique items or related to prior periods. The company ceased using this category beginning with fiscal 2007. |
6
CARDINAL HEALTH, INC. AND SUBSIDIARIES
DEFINITIONS
GAAP
Diluted EPS from Continuing Operations: earnings/(loss) from continuing operations divided by diluted weighted average shares outstanding
NON-GAAP
Non-GAAP Diluted EPS from Continuing Operations: non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding
Non-GAAP Earnings from Continuing Operations: earnings/(loss) from continuing operations excluding special items and impairment charges and other, both net of tax
Non-GAAP Operating Earnings:operating earnings/(loss) excluding special items and impairment charges and other
7
