CVS Corporation Reports Record Third Quarter Sales and Earnings; Comparable Diluted EPS Increased 20% to $0.36; Company Generated $269 Million in Free Cash Flow.Business Editors WOONSOCKET Woonsocket (w  nsŏk`ĭt, w n–), city (1990 pop. 43,877), Providence co., N R.I. , R.I.--(BUSINESS WIRE)--Oct. 30, 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), America's #1 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. , today announced record sales and earnings for the third quarter ended September September: see month. 30, 2000. Net earnings for the third quarter increased 30.5% to $158.7 million, or $0.39 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 $121.6 million, or $0.30 per diluted share during the prior year period. Third quarter results include a $19.2 million, or $0.03 per diluted share, nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. gain representing partial payment of the Company's share of the settlement proceeds from a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax against certain manufacturers of brand name prescription drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, . Excluding the gain, net earnings for the third quarter rose 21.1% to $147.2 million, or $0.36 per diluted share. 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 19.5% to $536.5 million, or $1.32 per diluted share, from $448.8 million, or $1.10 per diluted share during the prior year period. Excluding the gain noted above, year-to-date net earnings rose 17.0% to $525.0 million, or $1.29 per diluted share. 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 increased 14.0% to $4.9 billion during the third quarter, up from $4.3 billion during the third quarter of 1999. Year-to-date, net sales increased 13.0% to $14.6 billion up from $12.9 billion during the prior year period. 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 11.1% for the year-to-date period while pharmacy same store sales rose 18.7% for the quarter and 17.5% for the year-to-date period. Pharmacy sales were 63% of total sales for the quarter and 62% for 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. "This was a terrific quarter in which all key performance metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. moved in the right direction. We were able to translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. our strong sales growth into earnings per share that were higher than we originally anticipated," stated 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 gross margin experienced the smallest decline since 1996 and we continued to achieve excellent expense control, which enabled us to deliver healthy operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: expansion. We are well on our way to completing another year of record performance". During the third quarter, CVS opened 45 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. 53 others. As of September 30, 2000, CVS operated 4,106 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). . On September 18, the Company completed its acquisition of Stadtlander Pharmacy. Mr. 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 39 weeks ended
In millions, except Sept. 30, Sept. 25, Sept. 30, Sept. 25,
per share amounts 2000 1999 2000 1999
----------------------------------------------------------------------
Net sales $ 4,916.4 $ 4,311.8 $ 14,598.7 $ 12,914.7
Cost of goods sold,
buying and
warehousing costs 3,619.0 3,170.7 10,665.5 9,413.7
----------------------------------------------------------------------
Gross margin 1,297.4 1,141.1 3,933.2 3,501.0
Selling, general and
administrative expenses 937.7 851.3 2,759.5 2,491.1
Depreciation and
amortization 75.0 70.1 220.2 206.8
----------------------------------------------------------------------
Total operating
expenses 1,012.7 921.4 2,979.7 2,697.9
----------------------------------------------------------------------
Operating profit 284.7 219.7 953.5 803.1
Interest expense, net 20.1 13.7 59.2 42.5
----------------------------------------------------------------------
Earnings before income
tax provision 264.6 206.0 894.3 760.6
Income tax provision 105.9 84.4 357.8 311.8
----------------------------------------------------------------------
Net earnings(1) 158.7 121.6 536.5 448.8
Preference dividends,
net of income
tax benefit 3.8 3.6 11.3 10.8
----------------------------------------------------------------------
Net earnings available
to common shareholders $ 154.9 $ 118.0 $ 525.2 $ 438.0
----------------------------------------------------------------------
Basic earnings per
common share:
Net earnings(1) $ 0.40 $ 0.30 $ 1.34 $ 1.12
----------------------------------------------------------------------
Weighted average basic
common shares
outstanding 391.0 391.8 390.8 391.1
----------------------------------------------------------------------
Diluted earnings per
common share:
Net earnings(1) $ 0.39 $ 0.30 $ 1.32 $ 1.10
----------------------------------------------------------------------
Weighted average diluted
common shares
outstanding 407.5 398.1 407.3 408.5
----------------------------------------------------------------------
Dividends declared per
common share $ 0.0575 $ 0.0575 $ 0.1725 $ 0.1725
----------------------------------------------------------------------
(1) The 13 weeks ended September 30, 2000 include a $19.2 million
($11.5 million after-tax), or $0.03 per basic and diluted share,
nonrecurring gain representing partial payment of the Company's share
of the settlement proceeds from a class action lawsuit against certain
manufacturers of brand name prescription drugs. Excluding the gain,
net earnings for the third quarter rose 21.1% to $147.2 million, or
$0.36 per diluted share and 17.0% to $525.0 million, or $1.29 per
diluted share, for the 39 weeks ended September 30, 2000.
CVS Corporation
Consolidated Condensed Balance Sheets
In millions, except
share and per share (Unaudited)
amounts September 30, 2000 January 1, 2000
----------------------------------------------------------------------
Assets:
Cash and cash equivalents $ 214.9 $ 230.0
Accounts receivable, net 795.2 699.3
Inventories 3,778.7 3,445.5
Deferred income taxes 149.4 139.4
Other current assets 134.0 93.8
----------------------------------------------------------------------
Total current assets 5,072.2 4,608.0
Property and equipment, net 1,786.9 1,601.0
Goodwill, net 805.8 706.9
Other assets 456.7 359.5
----------------------------------------------------------------------
Total assets $ 8,121.6 $ 7,275.4
----------------------------------------------------------------------
Liabilities:
Accounts payable $ 1,450.4 $ 1,454.2
Accrued expenses 982.4 967.4
Short-term borrowings 902.3 451.0
Current portion of long-term debt 17.3 17.3
----------------------------------------------------------------------
Total current liabilities 3,352.4 2,889.9
Long-term debt 557.8 558.5
Deferred income taxes 27.2 27.2
Other long-term liabilities 104.3 120.1
Shareholders' equity:
Preference stock, series one ESOP
convertible, par value $1.00:
authorized 50,000,000 shares;
issued and outstanding 5,033,000
shares at September 30, 2000 and
5,164,000 shares at
January 1, 2000 269.0 276.0
Common stock, par value $0.01:
authorized 1,000,000,000 shares;
issued 406,270,000 shares at
September 30, 2000 and 403,047,000
shares at January 1, 2000 4.1 4.0
Treasury stock, at cost: 15,084,000
shares at September 30, 2000 and
11,051,000 shares at
January 1, 2000 (405.1) (258.5)
Guaranteed ESOP obligation (257.0) (257.0)
Capital surplus 1,456.5 1,371.7
Retained earnings 3,012.4 2,543.5
----------------------------------------------------------------------
Total shareholders' equity 4,079.9 3,679.7
----------------------------------------------------------------------
Total liabilities and
shareholders' equity $ 8,121.6 $ 7,275.4
----------------------------------------------------------------------
CVS Corporation
Consolidated Condensed Statements of Cash Flows
(Unaudited)
39 Weeks Ended
September 30, September 25,
In millions 2000 1999
----------------------------------------------------------------------
Cash flows from operating activities:
Net earnings $ 536.5 $ 448.8
Adjustments required to
reconcile net earnings
to net cash provided by
operating activities:
Depreciation and amortization 220.2 206.8
Deferred income taxes and
other non-cash items 11.6 8.8
Change in assets and liabilities,
excluding acquisitions and
dispositions:
(Increase) in accounts
receivable, net (56.0) (120.1)
(Increase) in inventories (318.5) (182.9)
(Increase) in other current assets (20.6) (24.6)
(Increase) in other assets (55.5) (87.3)
(Decrease) increase in accounts
payable (34.7) 136.3
Increase (decrease) in accrued
expenses 35.0 (27.8)
(Decrease) in other long-term
liabilities (15.8) (42.4)
----------------------------------------------------------------------
Net cash provided by
operating activities 302.2 315.6
----------------------------------------------------------------------
Cash flows from investing activities:
Additions to property and equipment (496.6) (484.8)
Proceeds from sale-leaseback
transactions 140.9 86.3
Acquisitions, net of cash (244.9) (21.1)
Proceeds from sale or disposal
of assets 9.2 26.5
----------------------------------------------------------------------
Net cash used in investing activities (591.4) (393.1)
----------------------------------------------------------------------
Cash flows from financing activities:
Additions to (reductions in)
short-term borrowings 451.4 (182.2)
Proceeds from exercise of stock
options 54.1 17.9
(Reductions in) additions to
long-term debt (0.7) 298.3
Dividends paid (67.5) (67.4)
Purchase of treasury shares (163.2) --
----------------------------------------------------------------------
Net cash provided by
financing activities 274.1 66.6
----------------------------------------------------------------------
Net (decrease) in cash and
cash equivalents (15.1) (10.9)
Cash and cash equivalents at
beginning of period 230.0 180.8
----------------------------------------------------------------------
Cash and cash equivalents at
end of period $ 214.9 $ 169.9
----------------------------------------------------------------------
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