CVS Corporation Reports Record Second Quarter Diluted EPS Of $0.40 Quarterly Net Earnings Rise 22.5%, Leading to Record First Half Results.WOONSOCKET Woonsocket (w  nsŏk`ĭt, w n–), city (1990 pop. 43,877), Providence co., N R.I. , R.I. -- 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 NYSESee: New York Stock Exchange : CVS), today announced record revenues and earnings for the quarter ended July July: see month. 1, 2006. Net earnings for the quarter increased 22.5% to $337.9 million or $0.40 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, compared with net earnings of $275.9 million or $0.33 per diluted share in the second quarter of 2005. The Company estimates that the acquisition of 701 standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. Sav-on and Osco OSCO Oklahoma Scholastic Chess Organization drugstores on June June: see month. 2, 2006, had a negative impact of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one and a half cents HALF CENT, money. A copper coin of the United States, of the value of one two-hundredth part of a dollar, or five mills. It weighs eighty-four grains. Act of January 18, 1837, s. 12, 4 Sharswood's cont. of Story's L. U. S. 2523, 4. Vide Money. per diluted share in the second quarter of 2006. The Company's second quarter results compared to last year were driven by significant sales growth, improved gross margins and solid expense control in the core business offset, in part, by costs attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the integration of the acquired business. Net earnings for the first half of 2006 increased 18.0% to $667.5 million or $0.78 per diluted share, compared with net earnings of $565.6 million or $0.67 per diluted share in the first half of 2005. 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, stated: "The second quarter was another milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. quarter for the company. Not only did we complete the acquisition of 701 Sav-on and Osco standalone drugstores and negotiate a deal to purchase MinuteClinic, the leader in retail-based health clinics, but we also delivered record-breaking Adj. 1. record-breaking - surpassing any previously established record; "a record-breaking high jump"; "record-breaking crowds" best - (superlative of `good') having the most positive qualities; "the best film of the year"; "the best solution"; "the best time for financial results. Sales growth was strong across all markets in both the front and 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. , and we continued to improve our operating efficiencies. Mr. Ryan Ryan may refer to: Places
n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the opportunities we see there to improve sales and profitability over the medium- and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ." CVS previously reported that net revenues for the second quarter of 2006, increased 15.8% to $10.6 billion, up from $9.1 billion during the second quarter of 2005. 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 (sales from stores open more than one year) for the quarter rose 8.8%, while pharmacy same store sales rose 9.1% and front-end front-end adj. 1. Of or relating to the initial phase of a project: a front-end investment. 2. Of or relating to the forward parts of a vehicle: a front-end alignment. same store sales increased 8.1%. Same store sales do not include the sales results of the drugstores acquired on June 2, 2006. These acquired stores will be included in same store sales following the one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants anniversary of the acquisition, beginning in fiscal July 2007. The Company estimates the Easter Easter [A.S. Eastre, name of a spring goddess], chief Christian feast, commemorating the resurrection of Jesus after his crucifixion. In the West, Easter is celebrated on the Sunday following the full moon next after the vernal equinox (see calendar); thus, it shift (April 16th this year versus March 27th last year) had a positive impact of approximately 200 basis points on front-end same store sales in the quarter. Total pharmacy sales represented 69.5% of total company revenues, while third party prescription sales were 94.3% of pharmacy sales, in the second quarter of 2006. Excluding the impact of the acquisition, during the first six months of 2006, CVS opened 61 new stores, 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. 70 stores and closed 28 stores. As of July 1, 2006, CVS operated 6,205 retail and specialty pharmacy stores in 44 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 Company will be holding a conference call today for the investment community at 8:30am (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) to discuss the quarterly results. An audio webcast of the conference call will be broadcast simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics through the Investor Relations Investor relations The process by which the corporation communicates with its investors. portion of the CVS website for all interested parties. To access the webcast, visit http://investor.CVS.com. This webcast will be archived and available on the web site for a one-month period following the conference call. CVS is America's largest retail pharmacy, operating over 6,100 retail and specialty pharmacy stores. With more than 40 years of dynamic growth in the retail pharmacy industry, CVS is committed to being the easiest pharmacy retailer for customers to use. CVS has created innovative approaches to serve the healthcare needs of all customers through its CVS/pharmacy CVS/pharmacy (also CVS) is a pharmacy and convenience store chain in the United States. CVS is also the largest pharmacy chain in the United States, based on the number of stores. (R) stores; its recently acquired stores; its online pharmacy  This article or section may deal primarily with the U.S. and may not present a worldwide view. , CVS.com(R); and its pharmacy benefit management A Pharmacy Benefit Manager (PBM) is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. , mail
order and specialty pharmacy subsidiary, PharmaCare(R). General
information about CVS is available through the Investor Relations
portion of the Company's website, at http://investor.CVS.com, as
well as through the press room portion of the Company's website, at
www.cvs.com/pressroom.
This press release contains 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 that could cause actual results to differ materially. For these statements, the Company claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company strongly recommends that you become familiar with the specific risks and uncertainties outlined under the caption "Cautionary Statement Concerning Forward-Looking Statements" in its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended April 1, 2006.
CVS CORPORATION
Consolidated Condensed Statements of Operations
(Unaudited)
13 Weeks Ended 26 Weeks Ended
In millions, except per share July 1, July 2, July 1, July 2,
amounts 2006 2005 2006 2005
----------------------------------------------------------------------
Net revenues $10,561.4 $9,121.6 $20,540.6 $18,303.8
Cost of goods sold, buying and
warehousing costs 7,717.0 6,704.2 15,047.2 13,505.6
----------------------------------------------------------------------
Gross profit 2,844.4 2,417.4 5,493.4 4,798.2
Selling, general and
administrative expenses 2,066.3 1,792.1 3,999.4 3,535.2
Depreciation and amortization 183.1 147.6 338.5 285.5
----------------------------------------------------------------------
Total operating expenses 2,249.4 1,939.7 4,337.9 3,820.7
----------------------------------------------------------------------
Operating profit 595.0 477.7 1,155.5 977.5
Interest expense, net 38.4 28.3 59.5 56.3
----------------------------------------------------------------------
Earnings before income tax
provision 556.6 449.4 1,096.0 921.2
Income tax provision 218.7 173.5 428.5 355.6
----------------------------------------------------------------------
Net earnings 337.9 275.9 667.5 565.6
Preference dividends, net of
income tax benefit 3.5 3.5 7.0 7.0
----------------------------------------------------------------------
Net earnings available to
common shareholders $334.4 $272.4 $660.5 $558.6
----------------------------------------------------------------------
Basic earnings per common
share:
Net earnings $0.41 $0.34 $0.81 $0.69
----------------------------------------------------------------------
Weighted average basic common
shares outstanding 818.9 810.9 817.9 808.8
----------------------------------------------------------------------
Diluted earnings per common
share: (1)
Net earnings $0.40 $0.33 $0.78 $0.67
----------------------------------------------------------------------
Weighted average diluted
common shares outstanding 850.6 841.9 849.7 839.6
----------------------------------------------------------------------
Dividends declared per common
share $0.03875 $0.03625 $0.07750 $0.07250
----------------------------------------------------------------------
(1) Diluted earnings per common share is computed by dividing (i)
net earnings, after accounting for the difference between the
dividends on the ESOP preference stock and common stock and after
making adjustments for the incentive compensation plans by (ii) Basic
shares plus the additional shares that would be issued assuming that
all dilutive stock awards are exercised and the ESOP preference stock
is converted into common stock. The dilutive earnings adjustment was
$1.1 million and $1.0 million for the thirteen weeks ended July 1,
2006 and July 2, 2005, respectively. The dilutive earnings adjustment
was $2.1 million for the twenty-six weeks ended July 1, 2006 and July
2, 2005.
CVS CORPORATION
Consolidated Condensed Balance Sheets
(Unaudited)
July 1, Dec. 31,
In millions, except share and per share amounts 2006 2005
----------------------------------------------------------------------
Assets:
Cash and cash equivalents $532.3 $513.4
Accounts receivable, net 2,031.5 1,839.6
Inventories 6,638.8 5,719.8
Deferred income taxes 235.6 241.1
Other current assets 111.5 78.8
----------------------------------------------------------------------
Total current assets 9,549.7 8,392.7
Property and equipment, net 5,839.5 3,952.6
Goodwill 3,464.6 1,789.9
Intangible assets, net 1,076.8 802.2
Deferred income taxes 149.3 122.5
Other assets 221.5 223.5
----------------------------------------------------------------------
Total assets $20,301.4 $15,283.4
----------------------------------------------------------------------
Liabilities:
Accounts payable $2,707.1 $2,467.5
Accrued expenses 1,415.7 1,521.4
Short-term debt 4,461.2 253.4
Current portion of long-term debt 48.1 341.6
----------------------------------------------------------------------
Total current liabilities 8,632.1 4,583.9
Long-term debt 1,780.2 1,594.1
Other long-term liabilities 807.1 774.2
Shareholders' equity:
Preference stock, series one ESOP convertible,
par value $1.00: authorized 50,000,000 shares;
issued and outstanding 4,077,000 shares at
July 1, 2006 and 4,165,000 shares at
December 31, 2005 217.9 222.6
Common stock, par value $0.01: authorized
1,000,000,000 shares; issued 842,537,000
shares at July 1, 2006 and 838,841,000
shares at December 31, 2005 8.4 8.4
Treasury stock, at cost: 23,118,000 shares at
July 1, 2006 and 24,533,000 shares at
December 31, 2005 (337.1) (356.5)
Guaranteed ESOP obligation (114.0) (114.0)
Capital surplus 2,048.6 1,922.4
Retained earnings 7,342.8 6,738.6
Accumulated other comprehensive loss (84.6) (90.3)
----------------------------------------------------------------------
Total shareholders' equity 9,082.0 8,331.2
----------------------------------------------------------------------
Total liabilities and shareholders' equity $20,301.4 $15,283.4
----------------------------------------------------------------------
CVS CORPORATION
Consolidated Condensed Statements of Cash Flows
(Unaudited)
26 Weeks Ended
July 1, July 2,
In millions 2006 2005
----------------------------------------------------------------------
Cash flows from operating activities:
Cash receipts from revenues $20,357.6 $18,361.8
Cash paid for inventory (14,670.4)(13,314.0)
Cash paid to other suppliers and employees (4,416.8) (4,083.8)
Interest received 7.7 3.2
Interest paid (84.7) (65.8)
Income taxes paid (469.8) (300.3)
----------------------------------------------------------------------
Net cash provided by operating activities 723.6 601.1
----------------------------------------------------------------------
Cash flows from investing activities:
Additions to property and equipment (662.8) (731.7)
Proceeds from sale-leaseback transactions -- 7.3
Acquisitions (net of cash acquired) and other
investments (3,996.4) 63.7
Proceeds from sale or disposal of assets 14.8 8.7
----------------------------------------------------------------------
Net cash used in investing activities (4,644.4) (652.0)
----------------------------------------------------------------------
Cash flows from financing activities:
Additions to/ (reductions in) short-term debt 4,207.8 (10.6)
Dividends paid (63.3) (58.5)
Proceeds from exercise of stock options 83.2 130.6
Excess tax benefits from stock based
compensation 17.9 --
Additions to long-term debt -- 16.5
Reductions in long-term debt (305.9) (5.3)
----------------------------------------------------------------------
Net cash provided by financing activities 3,939.7 72.7
----------------------------------------------------------------------
Net increase in cash and cash equivalents 18.9 21.8
Cash and cash equivalents at beginning of period 513.4 392.3
----------------------------------------------------------------------
Cash and cash equivalents at end of period $532.3 $414.1
----------------------------------------------------------------------
Reconciliation of net earnings to net cash
provided by operating activities:
Net earnings $667.5 $565.6
Adjustments required to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 338.5 285.5
Stock based compensation 31.8 --
Deferred income taxes and other noncash items 37.6 42.3
Change in operating assets and liabilities,
providing/(requiring) cash, net of effects from
acquisitions:
Accounts receivable, net (183.1) 57.9
Inventories (161.0) 94.1
Other current assets (30.2) (27.0)
Other assets 1.9 5.1
Accounts payable 239.7 (223.9)
Accrued expenses (194.4) (170.2)
Other long-term liabilities (24.7) (28.3)
----------------------------------------------------------------------
Net cash provided by operating activities 723.6 601.1
----------------------------------------------------------------------
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion