Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q1 2015 Earnings Presentation
20 slides from Cardinal Health's earnings presentation, Oct 30, 2014
Slide 1: Q1 FY2015 earnings investor/analyst call
Q1 FY2015 earnings investor/analyst call October 30, 2014 © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Slide 2: Forward-looking statements and GAAP reconciliation
Forward-looking statements and GAAP reconciliation Cautions Concerning Forward-Looking Statements This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be ident
Slide 3: Q1 FY2015 Financial summary
Q1 FY2015 Financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q1 FY15 Q1 FY14 Q1 FY15 Q1 FY14 Revenue $24,070 $24,523 % change (2)% (5)% Operating earnings $466 $471 $566 $532 % change (1)% 3% 6% 13% Ratio to revenue 1.94% 1.92% 2.35% 2.17% Earnings from continuing ops $266 $340 $340 $378 % change
Slide 4: Pharmaceutical segment business analysis
Q1 FY2015 Pharmaceutical segment business analysis Q1 FY15 Q1 FY14 % Change ($M) ($M) Revenue $21,209 $21,813 (3)% Segment profit $451 $433 4% Segment profit margin 2.13% 1.99% Highlights: • Revenue for the Pharmaceutical segment declined 3 percent to $21.2 billion due to the expiration of the Walgr
Slide 5: Medical segment business analysis
Q1 FY2015 Medical segment business analysis Q1 FY15 Q1 FY14 % Change ($M) ($M) Revenue $2,852 $2,711 5% Segment profit $113 $106 6% Segment profit margin 3.97% 3.92% Highlights: • Revenue for the Medical segment was up 5 percent to $2.9 billion, driven by strong performance from acquisitions and the
Slide 6: GAAP to non-GAAP reconciliation
Q1 FY2015 GAAP to non-GAAP reconciliation Q1 FY 2015 Q1 FY 2014 Earnings from Diluted EPS Earnings from Diluted EPS Operating Operating Continuing from Continuing Continuing from Continuing Earnings ($M) Earnings ($M) Operations ($M) Operations Operations ($M) Operations GAAP $466 $266 $0.78 $471 $3
Slide 7: FY2015 outlook
FY2015 outlook © Copyright 2014 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and 7 ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Slide 8: FY2015 financial expectations
October 30, 2014 FY2015 financial expectations FY2015 non-GAAP EPS from continuing operations: $4.10 - $4.30 © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and 8 ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Slide 9: FY15 corporate assumptions
October 30, 2014 FY15 corporate assumptions FY15 outlook FY14 actual Non-GAAP effective tax rate 36.0% - 37.0%1 35.3% Diluted weighted average 337M – 338M 345.2M shares outstanding Interest and other, net $140M - $150M $86.8M Capital expenditures ~$350M $249M Acquisition-related intangible ~$184M or
Slide 10: © Copyright 2014 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO
© Copyright 2014 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Slide 11: Q1 FY2015 trailing five quarters and GAAP to Non-GAAP reconciliation statements
Q1 FY2015 trailing five quarters and GAAP to Non-GAAP reconciliation statements © Copyright 2014 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health. 11
Slide 12: Segment analysis
Q1 FY2015 Segment analysis Pharmaceutical segment Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Revenue 21,813 19,443 18,762 20,092 21,209 ($M) Segment Profit 433 482 452 377 451 ($M) Medical segment Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Revenue 2,711 2,799 2,657 2,794 2,852 ($M) Segment Profit 106 131
Slide 13: GAAP / Non-GAAP Reconciliation First Quarter 2015
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation First Quarter 2015 Operating Earnings Before Provision Earnings Earnings from Diluted EPS Diluted EPS Earnings Income Taxes for from Continuing from from Continuing Operating Growth and Discontinued Income Continuing Operations Co
Slide 14: Total Company Business Analysis
Cardinal Health, Inc. and Subsidiaries Total Company Business Analysis Non-GAAP First Quarter First Quarter (in millions) 2015 2014 2015 2014 Revenue Amount $ 24,070 $ 24,523 Growth rate1 (2)% (5)% Operating earnings Amount $ 466 $ 471 $ 566 $ 532 Growth rate (1)% 3% 6% 13 % Earnings from continuing
Slide 15: Segment Business Analysis
Cardinal Health, Inc. and Subsidiaries Segment Business Analysis First Quarter First Quarter (in millions) 2015 2014 (in millions) 2015 2014 Pharmaceutical Medical Revenue Revenue Amount $ 21,209 $ 21,813 Amount $ 2,852 $ 2,711 Growth rate1 (3)% (7)% Growth rate 5% 13 % Segment profit Segment profit
Slide 16: GAAP / Non-GAAP Reconciliation: return on equity
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation First Quarter (in millions) 2015 2014 GAAP return on equity 16.8 % 22.1 % Non-GAAP return on equity Net earnings $ 266 $ 339 Restructuring and employee severance, net of tax, in continuing operations 12 7 Amortization and other ac
Slide 17: GAAP / Non-GAAP Reconciliation: effective tax rate
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation First Quarter (in millions) 2015 2014 GAAP effective tax rate from continuing operations1 38.9 % 23.2 % Non-GAAP effective tax rate from continuing operations Earnings before income taxes and discontinued operations $ 435 $ 442 Re
Slide 18: GAAP / Non-GAAP Reconciliation: fiscal year tax rate
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Fiscal Year (in millions) 2014 GAAP effective tax rate from continuing operations 35.3 % Non-GAAP effective tax rate from continuing operations Earnings before income taxes and discontinued operations $ 1,798 Restructuring and emp
Slide 19: GAAP / Non-GAAP Reconciliation: operating earnings
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation First Quarter (in millions) 2015 2014 Revenue $ 24,070 $ 24,523 GAAP operating earnings $ 466 $ 471 Restructuring and employee severance 19 11 Amortization and other acquisition-related costs 53 49 Impairments and loss on disposal
Slide 20: Definitions
Cardinal Health, Inc. and Subsidiaries Beginning in fiscal 2015, the Company will exclude last-in, first-out ("LIFO") inventory charges/(credits)5 from its non-GAAP earnings, for consistency with the presentation by some of its peers. The Company did not record any LIFO charges or credits in the fir