CVS Corporation Announces Record Sales and Earnings in Second Quarter; Diluted EPS Increased 15% to $0.46; Company Achieves Continued Solid Operating Margin Expansion.Business Editors WOONSOCKET Woonsocket (w  nsŏk`ĭt, w n–), city (1990 pop. 43,877), Providence co., N R.I. , R.I.--(BUSINESS WIRE)--Aug. 1, 2000
CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. Corporation (NYSE NYSE See: New York Stock Exchange : CVS), the nation's largest retail provider of prescriptions, today announced record sales and earnings for the second quarter of 2000. Net earnings for the second quarter of 2000, increased 14.7% to $186.5 million, or $0.46 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $162.6 million, or $0.40 per diluted share during the prior year period. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , net earnings increased 15.5% to $377.8 million, or $0.93 per diluted share, from $327.2 million, or $0.80 per diluted share during the prior year period. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the 13-week period ended July July: see month. 1, 2000 increased 13.3% to $4.9 billion, up from $4.4 billion during the 13-week period ended June June: see month. 26, 1999. For the 26 weeks ended July 1, 2000, net sales increased 12.5% to $9.7 billion up from $8.6 billion during the 26 weeks ended June 26, 1999. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of rose 12.2% for the quarter and 10.5% for the year-to-date period while pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. same store sales rose 18.6% for the quarter and 16.9% for the year-to-date period. Pharmacy sales were 62% of total sales for both the quarter and year-to-date period. Third party prescription prescription In property law, the effect of the lapse of time in creating and destroying rights. Acquisitive prescription allows an individual, after unequivocal possession for a specific period, to acquire an interest in real property, such as an easement, but not the sales were 89% of pharmacy sales for both the quarter and year-to-date period. During the second quarter of 2000, CVS opened 33 new stores and relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. 55 others. As of July 1, 2000, CVS operated 4,082 retail and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. pharmacy stores in 29 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . "The second quarter was another solid quarter, in which we once again delivered strong sales growth coupled with operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: expansion," said Tom Ryan
Tom Ryan (born August 3 1986), who plays under the pseudonym Ogre 2, is a professional gamer from Pickerington, Ohio, USA. , Chairman, President and Chief Executive Officer. "Our operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. leverage reflects both the strength of our sales and the improvements derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from our continued investments in technology. These trends continue to fuel our operating margin expansion," concluded Ryan Ryan may refer to: Places
The Company will be holding a conference call today for the investment community at 10:30am (EST EST electroshock therapy. EST abbr. electroshock therapy ) to discuss the quarterly results. The call will be simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. on the Company's web site for all interested parties. You may visit the Company's web site at http://www.CVS.com to hear the call live, or to listen to an archive (1) A file that contains one or more compressed files. Most archive formats are also capable of storing folders in order to reconstruct the file/folder relationship when decompressed. See archive formats. of the call as well as access general information about CVS, including corporate background and press releases. This press release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's Securities and Exchange Commission filings.
CVS Corporation
Consolidated Condensed Statements of Operations
(Unaudited)
13 weeks ended 26 weeks ended
In millions, except July 1, June 26, July 1, June 26,
per share amounts 2000 1999 2000 1999
======================================================================
Net sales $ 4,942.8 $ 4,362.4 $ 9,682.3 $ 8,602.9
Cost of goods sold, buying
and warehousing costs 3,607.0 3,172.0 7,046.5 6,243.1
----------------------------------------------------------------------
Gross margin 1,335.8 1,190.4 2,635.8 2,359.8
Selling, general and
administrative expenses 928.5 831.5 1,821.8 1,639.7
Depreciation and amortization 73.4 68.7 145.2 136.7
----------------------------------------------------------------------
Total operating expenses 1,001.9 900.2 1,967.0 1,776.4
----------------------------------------------------------------------
Operating profit 333.9 290.2 668.8 583.4
Interest expense, net 23.0 14.5 39.1 28.8
----------------------------------------------------------------------
Earnings before income
tax provision 310.9 275.7 629.7 554.6
Income tax provision 124.4 113.1 251.9 227.4
----------------------------------------------------------------------
Net earnings 186.5 162.6 377.8 327.2
Preference dividends, net
of income tax benefit 3.7 3.6 7.5 7.2
----------------------------------------------------------------------
Net earnings available to
common shareholders $ 182.8 $ 159.0 $ 370.3 $ 320.0
======================================================================
Basic earnings per
common share:
Net earnings $ 0.47 $ 0.41 $ 0.95 $ 0.82
----------------------------------------------------------------------
Weighted average basic
common shares outstanding 390.3 391.1 390.7 390.8
======================================================================
Diluted earnings per
common share:
Net earnings $ 0.46 $ 0.40 $ 0.93 $ 0.80
----------------------------------------------------------------------
Weighted average diluted
common shares outstanding 408.0 408.7 407.2 408.8
======================================================================
Dividends declared per
common share $ 0.0575 $ 0.0575 $ 0.1150 $ 0.1150
======================================================================
CVS Corporation
Consolidated Condensed Balance Sheets
(Unaudited)
July 1, January 1,
In millions, except share amounts 2000 2000
======================================================================
Assets:
Cash and cash equivalents $ 182.5 $ 230.0
Accounts receivable, net 759.1 699.3
Inventories 3,500.1 3,445.5
Deferred income taxes 144.5 139.4
Other current assets 135.2 93.8
----------------------------------------------------------------------
Total current assets 4,721.4 4,608.0
Property and equipment, net 1,778.3 1,601.0
Goodwill, net 741.3 706.9
Other assets 435.5 359.5
----------------------------------------------------------------------
Total assets $ 7,676.5 $ 7,275.4
======================================================================
Liabilities:
Accounts payable $ 1,103.9 $ 1,454.2
Accrued expenses 956.2 967.4
Short-term borrowings 970.9 451.0
Current portion of long-term debt 17.3 17.3
----------------------------------------------------------------------
Total current liabilities 3,048.3 2,889.9
Long-term debt 558.0 558.5
Deferred income taxes 27.2 27.2
Other long-term liabilities 110.4 120.1
Shareholders' equity:
Preference stock, series one ESOP
convertible, par value $1.00: authorized
50,000,000 shares; issued and outstanding
5,061,000 shares at July 1, 2000 and
5,164,000 shares at January 1, 2000 270.5 276.0
Common stock, par value $0.01: authorized
1,000,000,000 shares; issued 405,787,000
shares at July 1, 2000 and 403,047,000
shares at January 1, 2000 4.1 4.0
Treasury stock, at cost: 15,120,000
shares at July 1, 2000 and 11,051,000
shares at January 1, 2000 (402.3) (258.5)
Guaranteed ESOP obligation (257.0) (257.0)
Capital surplus 1,441.2 1,371.7
Retained earnings 2,876.1 2,543.5
----------------------------------------------------------------------
Total shareholders' equity 3,932.6 3,679.7
----------------------------------------------------------------------
Total liabilities and shareholders' equity $ 7,676.5 $ 7,275.4
======================================================================
CVS Corporation
Consolidated Condensed Statements of Cash Flows
(Unaudited)
26 Weeks Ended
July 1, June 26,
In millions 2000 1999
======================================================================
Cash flows from operating activities:
Net earnings $ 377.8 $ 327.2
Adjustments required to reconcile
net earnings to net cash (used in)
provided by operating activities:
Depreciation and amortization 145.2 136.7
Deferred income taxes and other
non-cash items 3.7 4.2
Change in assets and liabilities,
excluding acquisitions and dispositions:
(Increase) in accounts receivable, net (59.8) (76.7)
(Increase) decrease in inventories (54.6) 82.8
(Increase) decrease in other current assets (16.0) 1.5
(Increase) in other assets (59.9) (69.2)
(Decrease) in accounts payable (350.3) (246.7)
Increase (decrease) in accrued expenses 7.6 (11.8)
(Decrease) in other long-term liabilities (9.9) (31.4)
----------------------------------------------------------------------
Net cash (used in) provided by
operating activities (16.2) 116.6
======================================================================
Cash flows from investing activities:
Additions to property and equipment (306.4) (276.3)
Acquisitions, net of cash (90.4) (16.7)
Proceeds from sale or disposal of assets 6.3 26.0
----------------------------------------------------------------------
Net cash used in investing activities (390.5) (267.0)
======================================================================
Cash flows from financing activities:
Additions to (reductions in)
short-term borrowings 520.0 (68.3)
Proceeds from exercise of stock options 34.2 15.3
(Reductions in) additions to long-term debt (0.5) 299.8
Dividends paid (45.0) (44.9)
Purchase of treasury shares (149.5) --
----------------------------------------------------------------------
Net cash provided by financing activities 359.2 201.9
======================================================================
Net (decrease) increase in cash
and cash equivalents (47.5) 51.5
Cash and cash equivalents at
beginning of period 230.0 180.8
----------------------------------------------------------------------
Cash and cash equivalents at end of period $ 182.5 $ 232.3
======================================================================
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