CVS Corporation First Quarter Diluted EPS Increased 17.5% to $0.47.Business Editors WOONSOCKET Woonsocket (w  nsŏk`ĭt, w n–), city (1990 pop. 43,877), Providence co., N R.I. , R.I.--(BUSINESS WIRE)--May 9, 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 first quarter of 2000. Net earnings for the first quarter of 2000, increased 16.2% to $191.3 million, or $0.47 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 $164.6 million, or $0.40 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 April 1, 2000 increased 11.8% to $4.7 billion, up from $4.2 billion during the 13-week period ended March 27, 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 for the quarter, on a comparable 13-week basis, rose 8.8% 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 15.2%. Pharmacy sales were 62% of total sales for the quarter and 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 88% of pharmacy sales. During the first quarter of 2000, CVS opened 29 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. 58 others. As of April 1, 2000, CVS operated 4,078 stores in 27 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). . "I am extremely pleased with our first quarter performance," 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 and Chief Executive Officer. "Our results reflect improving gross margin trends in both the front of our stores and the pharmacy, excellent expense management, and continued productivity 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 investments in technology. We were able to achieve these results despite the weak flu season
On March 6, the Company announced that its Board of Directors had authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to $1 billion of its common stock. During the first quarter, the Company repurchased a total of 3.2 million shares at an average price of $32 1/4 for a total investment of just over $100 million. This had no material impact on earnings per share in the first quarter. 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
April 1, March 27,
In millions, except per share amounts 2000 1999
Net sales $ 4,739.5 $ 4,240.5
Cost of goods sold,
buying and warehousing costs 3,439.5 3,071.1
Gross margin 1,300.0 1,169.4
Selling, general and administrative expenses 893.3 808.2
Depreciation and amortization 71.8 68.0
Total operating expenses 965.1 876.2
Operating profit 334.9 293.2
Interest expense, net 16.1 14.3
Earnings before income tax provision 318.8 278.9
Income tax provision 127.5 114.3
Net earnings 191.3 164.6
Preference dividends, net of income tax benefit 3.8 3.6
Net earnings available to common shareholders $ 187.5 $ 161.0
Basic earnings per common share:
Net earnings $ 0.48 $ 0.41
Weighted average basic common
shares outstanding 391.1 390.5
Diluted earnings per common share:
Net earnings $ 0.47 $ 0.40
Weighted average diluted common
shares outstanding 407.1 408.2
Dividends declared per common share $ 0.0575 $ 0.0575
CVS Corporation
Consolidated Condensed Balance Sheets
In millions, except share (Unaudited)
amounts April 1, January 1,
2000 2000
Assets:
Cash and cash equivalents $ 236.6 $ 230.0
Accounts receivable, net 702.5 699.3
Inventories 3,658.3 3,445.5
Deferred income taxes 137.9 139.4
Other current assets 121.6 93.8
Total current assets 4,856.9 4,608.0
Property and equipment, net 1,678.9 1,601.0
Goodwill, net 738.4 706.9
Deferred charges and
other assets 416.8 359.5
Total assets $ 7,691.0 $ 7,275.4
Liabilities:
Accounts payable $ 1,284.1 $ 1,454.2
Accrued expenses 1,013.2 967.4
Short-term borrowings 922.8 451.0
Current portion of long-term debt 17.3 17.3
Total current liabilities 3,237.4 2,889.9
Long-term debt 558.2 558.5
Deferred income taxes 23.0 27.2
Other long-term liabilities 121.5 120.1
Shareholders' equity:
Preference stock, series one ESOP
convertible, par value $1.00:
authorized 50,000,000 shares;
issued and outstanding 5,093,000
shares at April 1, 2000 and
5,164,000 shares at January 1, 2000 272.2 276.0
Common stock, par value $0.01:
authorized 1,000,000,000 shares;
issued 403,396,000 shares at
April 1, 2000 and 403,047,000
shares at January 1, 2000 4.0 4.0
Treasury stock, at cost: 14,156,000
shares at April 1, 2000 and
11,169,000 shares at
January 1, 2000 (360.3) (258.5)
Guaranteed ESOP obligation (257.0) (257.0)
Capital surplus 1,379.9 1,371.7
Retained earnings 2,712.1 2,543.5
Total shareholders' equity 3,750.9 3,679.7
Total liabilities and
shareholders' equity $ 7,691.0 $ 7,275.4
CVS Corporation
Consolidated Condensed Statements of Cash Flows
(Unaudited)
13 Weeks Ended
In millions April 1, 2000 March 27, 1999
Cash flows from operating activities:
Net earnings $ 191.3 $ 164.6
Adjustments required to reconcile
net earnings to net cash provided by
(used in) operating activities:
Depreciation and amortization 71.8 68.0
Deferred income taxes and other
non-cash items 5.8 2.7
Change in assets and liabilities,
excluding acquisitions and
dispositions:
Increase in accounts receivable, net (3.2) (49.1)
Increase in inventories (212.8) (96.1)
(Increase) decrease in other current
assets (28.5) 7.0
Increase in deferred charges and
other assets (52.6) (61.2)
Decrease in accounts payable (170.1) (48.3)
Increase in accrued expenses 51.3 42.1
Increase (decrease) in other
long-term liabilities 1.3 (15.2)
Net cash (used in) provided by
operating activities (145.7) 14.5
Cash flows from investing activities:
Additions to property and equipment (140.5) (117.8)
Acquisitions, net of cash (55.6) (1.7)
Proceeds from sale or disposal of
assets 3.1 25.5
Net cash used in investing activities (193.0) (94.0)
Cash flows from financing activities:
Additions to short-term borrowings 471.8 (248.7)
Proceeds from exercise of stock options 1.1 6.9
(Reductions in) additions to long-term
debt (0.3) 299.8
Dividends paid (22.5) (22.5)
Purchase of treasury shares (104.8)
Net cash provided by financing
activities 345.3 35.5
Net increase (decrease) in cash and
cash equivalents 6.6 (44.0)
Cash and cash equivalents at beginning
of period 230.0 180.8
Cash and cash equivalents at end of
period $ 236.6 $ 136.8
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