Exhibit 99.01
[CARDINAL HEALTH LOGO]
7000 Cardinal Place
Dublin,OH 43017
www.cardinal.com FOR IMMEDIATE RELEASE
CONTACTS:
Media: Jim Mazzola Investors: Jim Hinrichs
(614) 757-3690 (614) 757-7828
jim.mazzola@cardinal.com jim.hinrichs@cardinal.com
------------------------ -------------------------
CARDINAL HEALTH ANNOUNCES FIRST QUARTER RESULTS
DUBLIN, OHIO, NOV. 4, 2004 -- Cardinal Health, Inc. (NYSE: CAH), the leading
provider of products and services supporting the health care industry, today
announced revenue for its first quarter rose 16 percent to $17.8 billion, while
earnings from continuing operations declined to $217.8 million and diluted
earnings per share from continuing operations declined to $0.50.
Excluding special items of $20 million for the quarter ended Sept. 30, net
earnings from continuing operations decreased 28 percent to $238 million
compared to $332 million in the prior year. Earnings per diluted share from
continuing operations before special items declined 26 percent to $0.55 versus
$0.74 last year.
The company generated strong cash flow from operations for the quarter of nearly
$900 million, including net proceeds of $500 million realized through an
accounts receivable securitization. Free cash flow for the quarter was $777
million. (See the attached financial table for a reconciliation of the non-GAAP
amounts to their GAAP equivalents.)
"As we anticipated, the first quarter was challenging and our results are
clearly below our historic performance and long-term expectations," said Robert
D. Walter, chairman and chief executive officer. "We are taking action in each
segment to capitalize on the strategic opportunities that exist today in our
business. We are very focused on realizing the value of what we've assembled and
achieving the potential we have as an integrated company."
SEGMENT RESULTS
The company attributed earnings declines for the quarter to three primary
factors:
- Declines within the Pharmaceutical Distribution and Provider Services
segment in margin earned from pharmaceutical manufacturers due to
changes in their sales practices and product price increases that were
substantially below the prior year
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CARDINAL HEALTH ANNOUNCES FIRST QUARTER RESULTS
PAGE 2
- Challenges in other business segments, including a decline in
production of certain sterile products within the blow/fill/seal
business of the Pharmaceutical Technologies and Services segment
- Non-recurring items affecting the Medical Products and Services and
Clinical Technologies and Services segments of $16.4 million and $20.6
million, respectively
(Tables with specific segment results for the first quarter are attached and
available at the Investor Relations page on www.cardinalhealth.com.)
PHARMACEUTICAL DISTRIBUTION AND PROVIDER SERVICES
- -------------------------------------------------
Segment revenues increased 16 percent for the quarter to $14.4 billion, while
operating earnings declined by 29 percent to $163 million. The operating
earnings decline was primarily the result of lower margins from manufacturers
that have changed their selling practices, and the lack of manufacturer price
increases during the quarter, as compared to prior year levels. The company is
addressing the declines by transitioning distribution contracts to provide
fee-based compensation, meaning fees will be paid by manufacturers for
distribution services on a non-contingent basis as services are provided. This
change is expected to improve returns and provide greater stability in future
earnings.
Progress was made during the quarter to transition these contracts, the company
said. In August, Cardinal Health notified pharmaceutical manufacturers of a
change in policy intended to transition existing contracts by the next
anniversary date of current agreements or April 1, 2005.
Expense control measures continued to drive efficiency within pharmaceutical
distribution, with selling, general and administrative expenses as a percent of
revenue declining over the prior year. Inventory levels at regional distribution
centers are also expected to decline during the remainder of the year, as
Cardinal Health's National Logistics Center is now operational. Based on strong
cash flow and these expected inventory declines, the company announced today
that it has fully repaid $1.25 billion in outstanding debt and decided not to
move forward with a previously announced $500 million credit line that would
have provided incremental borrowing capacity.
MEDICAL PRODUCTS AND SERVICES
- -----------------------------
During the quarter, the company recorded a $16.4 million charge for remaining
latex litigation costs. This litigation, which began during the mid-1990's, is
nearing conclusion and the charge is the company's current estimate of costs to
resolve all remaining litigation and related matters, net of estimated insurance
proceeds. This non-recurring item had the effect of lowering Medical Products
and Services operating earnings for the quarter.
Overall, the segment reported solid revenue growth in the quarter -- up 11
percent to $2.4 billion -- led by strong momentum in distribution revenue on
health-systems contracts. The effect of the latex charge and margin pressure on
manufactured products caused operating earnings to decline 14 percent to $138
million versus $160 million last year. Excluding the latex charge, operating
earnings were $154 million, a decline of 4 percent versus the prior year. The
profitability of manufactured products was negatively affected
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CARDINAL HEALTH ANNOUNCES FIRST QUARTER RESULTS
PAGE 3
by competitive pricing on a large group purchase organization contract and
rising costs of raw materials used in manufacturing.
Strong sales gains, new product introductions, ongoing cost reduction
initiatives and continued strength in operations outside the U.S. are expected
to contribute to improved earnings during the second half of the fiscal year in
this segment. With these improvements, the company expects Medical Products and
Services' earnings to return to growth rates that increase faster than revenue.
PHARMACEUTICAL TECHNOLOGIES AND SERVICES
- ----------------------------------------
Revenue and earnings comparisons within the Pharmaceutical Technologies and
Services no longer measure the effect of foreign currency at a constant exchange
rate, which negatively affected results for the quarter.
Revenues increased 9 percent during the quarter to $705 million, driven by
growth in nuclear pharmacy services, Intercare operations and improvements in
the company's Somerset, N.J. development facility. Adjusting for the impact of
the constant foreign currency exchange rates, revenues for the first quarter
increased 11 percent.
Operating earnings declined 24 percent to $81 million for the first quarter.
Excluding the effect of constant foreign currency exchange rates, operating
earnings declined 20 percent. Decreased earnings were the result of weakness in
certain sterile manufacturing operations and short-term earnings declines in
packaging services.
Weakness in sterile manufacturing was the result of a decline in the core
blow/fill/seal business and continued regulatory delays in the start up of new
operations in Humacao, Puerto Rico. Costs associated with delays in Humacao
totaled $5 million for the quarter, but these issues are expected to be resolved
by the end of the second quarter.
Partially offsetting earnings decreases in the blow/fill/seal and Humacao
operations, the company's Albuquerque, N.M. sterile manufacturing operation
continued to see strong demand and improved efficiency during the quarter, which
is expected to lead the way for a significant contribution to the second half of
2005. Packaging services and pharmaceutical development are also expected to
produce strong earnings growth for the balance of the year based on both the
outlook for demand and efficiency initiatives underway.
CLINICAL TECHNOLOGIES AND SERVICES
- ----------------------------------
Results for this new segment, which include Cardinal Health's Alaris(R)
products, Pyxis(R) products and Clinical Services and Consulting organizations,
are being reported for the first time this quarter and replace the company's
former Automation and Information Services segment. This new segment, which is
expected to exceed $2 billion in revenues for the fiscal year, brings together
extensive clinical expertise and market-leading products and services to help
hospitals improve patient safety and clinical outcomes.
Segment results for the quarter were affected by a one-time purchase-accounting
adjustment to reflect the market value of Alaris inventory. This adjustment
increased the value of Alaris inventory and effectively lowered first-quarter
earnings by $20.6 million. In addition, the company said results for this
segment will no longer include interest income
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CARDINAL HEALTH ANNOUNCES FIRST QUARTER RESULTS
PAGE 4
from leases previously sold to a third party. This change negatively affects
comparisons to prior results.
Revenues for the segment were $524 million for the quarter and operating
earnings reached $46 million, or $67 million excluding the inventory adjustment.
Revenues for Alaris products and Clinical Services and Consulting were strong,
with solid operating earnings in both businesses excluding the impact of the
Alaris inventory adjustment. Revenue and earnings both declined for Pyxis
products, which negatively affected overall segment results.
Clinical Technologies and Services results are expected to improve during the
year through new Pyxis product introductions, better rationalization of existing
product lines and efficiencies resulting from the formation of the segment. Over
the long-term, segment growth will be driven by innovative product and service
offerings that draw on the vast clinical resources assembled in this
organization.
CONFERENCE CALL AND INVESTOR MEETING
Cardinal Health has scheduled a conference call for Fri., Nov. 5 at 10 a.m.
Eastern Standard Time to discuss its first quarter results and provide a
management update for invited analysts and investment professionals. To access
the conference call, management update and the corresponding slide presentation,
go to the Investor Relations page at www.cardinalhealth.com. The conference call
and management update may also be accessed by calling 706-634-5100, passcode
1995153. An audio replay will be available until 11:30 p.m. on Nov. 9 at
706-645-9291, passcode 1995153. A transcript and audio replay will also be
available at www.cardinalhealth.com.
As previously disclosed, Cardinal Health's annual meeting of shareholders is
scheduled for Dec. 8 in Dublin, Ohio.
ABOUT CARDINAL HEALTH
CARDINAL HEALTH, INC. (www.cardinalhealth.com) is the leading provider of
products and services supporting the health care industry. Cardinal Health
develops, manufactures, packages and markets products for patient care; develops
drug-delivery technologies; distributes pharmaceuticals and medical, surgical
and laboratory supplies; and offers consulting and other services that improve
quality and efficiency in health care. Headquartered in Dublin, Ohio, Cardinal
Health employs more than 55,000 people on six continents and produces annual
revenues of more than $65 billion. Cardinal Health is ranked No.17 on the
current Fortune 500 list and named one of the best U.S. companies by Forbes
magazine for 2004.
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Except for historical information, all other information in this news release
consists of forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected, anticipated or implied. The most significant of
these uncertainties are described in Cardinal Health's Form 10-K, Form 8-K and
Form 10-Q reports (including all amendments to those reports) and exhibits to
those reports, and include (but are not limited to) the costs, difficulties, and
uncertainties related to the integration of
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CARDINAL HEALTH ANNOUNCES FIRST QUARTER RESULTS
PAGE 4
acquired businesses, the loss of one or more key customer or supplier
relationships or changes to the terms of those relationships, changes in the
distribution patterns or reimbursement rates for health-care products and/or
services, the results, consequences, effects or timing of any inquiry or
investigation by any regulatory authority or any legal and administrative
proceedings, the impact of previously announced restatements, and general
economic and market conditions. Cardinal Health undertakes no obligation to
update or revise any forward-looking statement.
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CARDINAL HEALTH, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
FIRST QUARTER
---------------------------------------------
September September
2004 2003 % Change
---------------------------------------------
Revenue $17,796.0 $15,388.2 16%
Cost of products sold 16,709.5 14,315.4 17%
---------- ----------
Gross margin 1,086.5 1,072.8 1%
Selling, general and administrative expenses 693.1 547.6 27%
Special items - merger charges 16.9 8.6 N.M.
- other 15.0 4.6 N.M.
---------- ----------
Operating earnings 361.5 512.0 (29)%
Interest expense and other 41.2 28.0 47%
---------- ----------
Earnings before income taxes, discontinued operations and
cumulative effect of change in accounting 320.3 484.0 (34)%
Provision for income taxes 102.5 160.5 (36)%
---------- ----------
Earnings from continuing operations before cumulative effect of
change in accounting 217.8 323.5 (33)%
Loss from discontinued operations (net of tax $2.8 and $1.1 for the
quarters ending September 30, 2004 and 2003, respectively) (4.5) (1.8) N.M.
Cumulative effect of change in accounting - (38.5) N.M.
---------- ----------
Net earnings $ 213.3 $ 283.2 N.M.
========== ==========
Basic earnings per Common Share:
Continuing operations $ 0.50 $ 0.73 (32)%
Discontinued operations (0.01) - N.M.
Cumulative effect of change in accounting - (0.09) N.M.
---------- ----------
Net basic earnings per Common Share $ 0.49 $ 0.64 N.M.
========== ==========
Diluted earnings per Common Share:
Continuing operations $ 0.50 $ 0.72 (31)%
Discontinued operations (0.01) - N.M.
Cumulative effect of change in accounting - (0.09) N.M.
---------- ----------
Net diluted earnings per Common Share $ 0.49 $ 0.63 N.M.
========== ==========
Weighted average number of shares outstanding:
Basic 431.7 440.5
Diluted 434.7 446.4
- ---------------------------------------------------------------------------------------------------------------------------
The following table summarizes the impact of special items on net earnings and
diluted earnings per Common Share in the quarters in which they were recorded:
Current Year Prior Year
------------------------ ------------------------
Net Diluted Net Diluted
Earnings EPS Earnings EPS
------------------------ ------------------------
Impact of special items - merger charges $ (10.6) $ (0.03) $ (5.4) $ (0.01)
- other (9.4) (0.02) (3.3) (0.01)
------- -------- ------ --------
Impact of special items $ (20.0) $ (0.05) $ (8.7) $ (0.02)
======= ======== ====== ========
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CARDINAL HEALTH, INC.
CONSOLIDATED BALANCE SHEETS
(IN MILLIONS)
(UNAUDITED)
SEPTEMBER 30, June 30, September 30,
2004 2004 2003
------------- ----------- -------------
ASSETS
CURRENT ASSETS
Cash and equivalents $ 1,152.4 $ 1,096.0 $ 992.0
Trade receivables 3,368.1 3,432.7 2,996.1
Current portion of investment in sales-type leases 207.3 202.1 196.0
Inventories 8,199.6 7,471.3 8,130.6
Prepaid expenses and other 814.7 795.4 732.2
Assets held for sale from discontinued operations 44.9 60.4 163.0
----------- ----------- -----------
Total current assets 13,787.0 13,057.9 13,209.9
----------- ----------- -----------
Property and equipment - net 2,399.9 2,364.0 2,079.9
Investment in sales-type leases 585.6 546.0 594.0
Other assets 5,496.6 5,401.2 2,637.7
----------- ----------- -----------
TOTAL ASSETS $ 22,269.1 $ 21,369.1 $ 18,521.5
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable - banks and current portion of
long-term obligations $ 362.4 $ 860.6 $ 217.1
Accounts payable 7,687.5 6,432.4 6,157.0
Other accrued liabilities 1,887.0 2,021.3 1,589.7
Liabilities from discontinued operations 55.4 55.1 62.2
----------- ----------- -----------
Total current liabilities 9,992.3 9,369.4 8,026.0
----------- ----------- -----------
Long-term obligations, less current portion 2,892.6 2,834.7 2,507.0
Deferred taxes and other liabilities 1,165.2 1,188.7 995.0
Total shareholders' equity 8,219.0 7,976.3 6,993.5
----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 22,269.1 $ 21,369.1 $ 18,521.5
=========== =========== ===========
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CARDINAL HEALTH, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in millions)
THREE MONTHS ENDED
---------------------------
SEPTEMBER 30,
---------------------------
2004 2003
---------- ----------
Cash Flows From Operating Activities:
Earnings from continuing operations before cumulative
effect of change in accounting $ 217.8 $ 323.5
Adjustments to reconcile earnings from continuing operations
before cumulative effect of change in accounting
to net cash from operations:
Depreciation and amortization 92.5 68.7
Change in operating assets and liabilities, net of
effects from acquisitions:
(Increase)/decrease in trade receivables 79.4 (210.5)
Increase in inventories (723.0) (620.5)
Increase in net investment in sales-type leases (44.8) (60.9)
Increase in accounts payable 1,247.7 866.9
Other operating items - net 23.7 (73.1)
---------- ----------
Net cash provided by operating activities 893.3 294.1
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of subsidiaries, net of cash acquired (264.9) (15.0)
Proceeds from sale of property, equipment, and other assets 4.2 2.5
Additions to property and equipment (107.5) (77.8)
Proceeds from sale of discontinued operations 2.8 --
---------- ----------
Net cash used in investing activities (365.4) (90.3)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in commercial paper and short-term debt (635.6) (0.1)
Net change in long-term obligations 147.3 32.4
Proceeds from issuance of Common Shares 29.8 45.3
Purchase of Treasury Stock -- (1,000.0)
Dividends on Common Shares (12.9) (13.4)
---------- ----------
Net cash used in financing activities (471.4) (935.8)
---------- ----------
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS 56.5 (732.0)
Cash and Equivalents at Beginning of Period 1,096.0 1,724.0
---------- ----------
CASH AND EQUIVALENTS AT END OF PERIOD $ 1,152.5 $ 992.0
========== ==========
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CARDINAL HEALTH, INC. - FIRST QUARTER FY 2005 BUSINESS ANALYSIS
($ MILLIONS)
- -------------------------------------------------------------------------------
PHARMACEUTICAL DISTRIBUTION AND PROVIDER SERVICES
2005 2004
---- ----
. REVENUE
-------
- Amount $14,402 $12,442
- Growth Rate 16% 17%
- Mix 80% 80%
. OPERATING EARNINGS
------------------
- Amount $ 163 $ 231
- Growth Rate (29)% (3)%
- Mix 38% 41%
- Ratio to Revenue 1.13% 1.86%
- -------------------------------------------------------------------------------
MEDICAL PRODUCTS AND SERVICES
2005 2004
---- ----
.. REVENUE
-------
- Amount $2,393 $2,148
- Growth Rate 11% 13%
- Mix 13% 14%
.. OPERATING EARNINGS
------------------
- Amount $ 138 $ 160
- Growth Rate (14)% 12%
- Mix 32% 28%
- Ratio to Revenue 5.78% 7.47%
- -------------------------------------------------------------------------------
PHARMACEUTICAL TECHNOLOGIES AND SERVICES
2005 2004
---- ----
. REVENUE
-------
- Amount $ 705 $ 647
- Growth Rate 9% 52%
- Mix 4% 4%
. OPERATING EARNINGS
------------------
- Amount $ 81 $ 106
- Growth Rate (24)% 47%
- Mix 19% 19%
- Ratio to Revenue 11.46% 16.44%
- -------------------------------------------------------------------------------
CLINICAL TECHNOLOGIES AND SERVICES
2005 2004
---- ----
. REVENUE
-------
- Amount $ 524 $ 335
- Growth Rate 57% 2%
- Mix 3% 2%
. OPERATING EARNINGS
------------------
- Amount $ 46 $ 68
- Growth Rate (32)% 18%
- Mix 11% 12%
- Ratio to Revenue 8.76% 20.19%
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CARDINAL HEALTH, INC. - FIRST QUARTER FY 2005 BUSINESS ANALYSIS
($ MILLIONS)
TOTAL
2005 2004
---- ----
. REVENUE
- Amount $17,796 $15,388 Excluding Special Items
------------------------------
- Growth Rate 16% 18%
2005 2004
---- ----
. OPERATING EARNINGS
- Amount $ 362 $ 512 $393 $525
- Growth Rate (29)% 12% (25)% 10%
. RATIO TO REVENUE
- Gross Margin 6.10% 6.97%
- Expenses 3.89% 3.56%
- Special Items 0.18% 0.09%
- Operating Earnings 2.03% 3.32% 2.21% 3.41%
. NET EARNINGS *
- Amount $ 218 $ 324 $238 $332
- Growth Rate (33)% 15% (28)% 12%
- Ratio to Revenue 1.22% 2.10% 1.34% 2.16%
. PRODUCTIVITY
- Margin per Expense Dollar $ 1.57 $ 1.96
. ASSET MANAGEMENT
- Operating Cash Flow $ 893 $ 294
- Free Cash Flow $ 777 $ 205
- Return on Invested Capital 4.62% 6.93% 4.99% 7.11%
* THE NET EARNINGS SECTION IS PRESENTED BEFORE DISCONTINUED OPERATIONS AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING.
SEE THE GAAP/NON-GAAP RECONCILIATION FOR THE CALCULATIONS AND DEFINITIONS
SUPPORTING THE BALANCES EXCLUDING SPECIAL ITEMS.
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CARDINAL HEALTH, INC. - FIRST QUARTER FISCAL 2005 AND
2004 ASSET MANAGEMENT ANALYSIS
($ MILLIONS)
2005 2004
---- ----
. RECEIVABLE DAYS 16.8 17.5
. DAYS INVENTORY ON HAND 39 45
. CASH $1,152 $ 992
. DEBT $3,255 $2,724
. EQUITY $8,219 $6,993
. NET DEBT/TOTAL CAPITAL 20% 20%
. TANGIBLE NET WORTH $3,200 $4,653
. RETURN ON EQUITY 10.8% 17.6%
EXCLUDING SPECIAL CHARGES 11.7% 18.1%
. TAX RATE 32.0% 33.2%
EXCLUDING SPECIAL CHARGES 32.5% 33.2%
SEE THE GAAP/NON-GAAP RECONCILIATION FOR THE CALCULATIONS AND DEFINITIONS
SUPPORTING THE BALANCES EXCLUDING SPECIAL ITEMS.
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- -------------------------------------------------------------------------------
CARDINAL HEALTH, INC. - BUSINESS ANALYSIS RECONCILIATION
($ MILLIONS)
- -------------------------------------------------------------------------------
FIRST QUARTER FISCAL 2005
EXCLUDING
GAAP* SPECIAL SPECIAL
BASIS ITEMS ITEMS
----- ------- ---------
.. SPECIAL ITEMS
-------------
- Merger related costs $ 16 $ 16 -
- Other $ 15 $ 15 -
.. OPERATING EARNINGS
------------------
- Amount $ 362 $ 31 $ 393
- Growth rate (29)% (25)%
- Ratio to revenue
(Return on Sales) 2.03% 2.21%
.. NET EARNINGS**
--------------
- Amount $ 218 $ 20 $ 238
- Growth rate (33)% (28)%
- Ratio to revenue 1.22% 1.34%
- Diluted EPS $0.50 $0.05 $0.55
.. INCOME TAX PROVISION
--------------------
-Income tax provision $ 102 $ 11 $ 113
- -------------------------------------------------------------------------------
FIRST QUARTER FISCAL 2004
EXCLUDING
GAAP* SPECIAL SPECIAL
BASIS ITEMS ITEMS
----- ------- ---------
.. SPECIAL ITEMS
-------------
- Merger related costs $ 9 $ 9 -
- Other $ 4 $ 4 -
.. OPERATING EARNINGS
------------------
- Amount $ 512 $ 13 $ 525
- Growth rate 12% 10%
- Ratio to revenue
(Return on Sales) 3.32% 3.41%
.. NET EARNINGS**
--------------
- Amount $ 324 $ 8 $ 332
- Growth rate 15% 12%
- Ratio to revenue 2.10% 2.16%
- Diluted EPS $0.72 $0.02 $0.74
.. INCOME TAX PROVISION
--------------------
- Income tax provision $ 161 $ 5 $ 166
</Table>
* GAAP - AMOUNTS THAT CONFORM WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
** THE NET EARNINGS SECTION IS PRESENTED BEFORE DISCONTINUED OPERATIONS AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING.
DEFINITIONS:
Return on equity (excluding special items) = (Earnings from continuing
operations + special items after tax) / average shareholders' equity
Note: Average shareholders' equity used in the return on equity calculation was
$8.1 billion and $7.4 billion in the first quarter of fiscal 2005 and
2004, respectively.
EFFECTIVE TAX RATE (EXCLUDING SPECIAL ITEMS) = (Income tax provision + tax
effect of special items) / (earnings before income taxes + special items)
GROWTH RATE (EXCLUDING SPECIAL ITEMS) = (Current quarter earnings excluding
special items - prior year quarter earnings excluding special items) / prior
year quarter earnings excluding special items
RATIO TO REVENUE (EXCLUDING SPECIAL ITEMS) = Current quarter earnings excluding
special items / operating revenue
FREE CASH FLOW = Operating cash flow - net property activity - dividends
RETURN ON INVESTED CAPITAL (EXCLUDING SPECIAL ITEMS) = [Operating earnings
excluding special items annualized x (1 - effective tax rate, excluding special
items)] / average (equity + debt + unrecorded goodwill)
Note: Average unrecorded goodwill used in return on invested capital calculation
was $9.7 billion in fiscal 2005 and fiscal 2004.
NET DEBT TO TOTAL CAPITAL = Net debt / (net debt + shareholders' equity)
Note: Net debt = long-term obligations + short-term obligations + notes payable
banks - cash
###
- -------------------------------------------------------------------------------
CARDINAL HEALTH, INC. - GAAP / NON-GAAP RECONCILIATION - SEGMENT ANALYSIS
- -------------------------------------------------------------------------------
($ Millions)
FIRST QUARTER FY 2005
------------------------------------------------------------------------------
Alaris EXCLUDING
Inventory NON-
GAAP Litigation Purchase Alaris PTS RECURRING
BASIS * Reserve Accounting Acquisition Acquisitions ITEMS
- ---------------------------------------------------------------------------------------------------------------------------
MEDICAL PRODUCTS AND SERVICES:
- Operating Earnings 138 16 -- -- -- 154
- Growth Rate (14)% (4)%
PHARMACEUTICAL TECHNOLOGIES AND SERVICES:
- Revenues 705 -- -- -- -- 705
- Growth Rate 9% 11%
- Revenues 705 -- -- -- (58) 647
- Growth Rate 9% 4%
- Operating Earnings 81 -- -- -- -- 81
- Growth Rate (24)% (20)%
- Operating Earnings 81 -- -- -- (10) 71
- Growth Rate (24)% (28)%
CLINICAL TECHNOLOGIES AND SERVICES:
- Revenues 524 -- -- (150) -- 374
- Growth Rate 57% 13%
- Operating Earnings 46 -- 21 -- -- 67
- Growth Rate (32)% 6%
- ---------------------------------------------------------------------------------------------------------------------------
FIRST QUARTER FY 2004
------------------------------------------------------------
EXCLUDING
Foreign Interest NON-
GAAP Currency Income PTS RECURRING
BASIS * Adjustment Adjustment Dispositions ITEMS
- --------------------------------------------------------------------------------------------------------
MEDICAL PRODUCTS AND SERVICES:
- Operating Earnings 160 -- -- 160
- Growth Rate
PHARMACEUTICAL TECHNOLOGIES AND SERVICES:
- Revenues 647 (14) -- 633
- Growth Rate
- Revenues 647 (14) -- (13) 620
- Growth Rate
- Operating Earnings 106 (5) -- 101
- Growth Rate
- Operating Earnings 106 (5) -- (2) 99
- Growth Rate
CLINICAL TECHNOLOGIES AND SERVICES:
- Revenues 335 -- (5) 330
- Growth Rate
- Operating Earnings 68 -- (5) 63
- Growth Rate
- --------------------------------------------------------------------------------------------------------
* GAAP - Amounts that conform with generally accepted accounting principles.
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