CVS Corporation Reports Results for First Quarter.Business Editor WOONSOCKET Woonsocket (w  nsŏk`ĭt, w n–), city (1990 pop. 43,877), Providence co., N R.I. , R.I--(BUSINESS WIRE)--May 8, 2002
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 No. 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 sales and earnings for the first quarter ended March 30, 2002. 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 first quarter ended March 30, 2002 increased 10.9% to a record $6.0 billion, up from $5.4 billion during the first quarter of 2001. 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 10.2%, while pharmacy same store sales rose 11.7% 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 7.2%. Pharmacy sales were 67% of total sales for the quarter. 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 91% of pharmacy sales for the quarter. Net earnings for the first quarter decreased 20.7% to $175.7 million, or $0.43 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 to net earnings of $221.7 million, or $0.54 per diluted share, during the first quarter of 2001. The current quarter's earnings include $0.01 per diluted share as a result of the elimination of amortization of goodwill resulting from the adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142. "First quarter results were driven by strong top line growth as we achieved the highest first quarter revenues in the Company's history", 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. "The pharmacy business had sequential One after the other in some consecutive order such as by name or number. improvement each month of the quarter, against a very strong first quarter last year. Furthermore, we achieved share gains across all categories in the front end of our business." "During April we completed the Action Plan announced last year, and are encouraged by the cost savings we are starting to realize from our streamlining efforts," continued Mr. Ryan Ryan may refer to: Places
During the first quarter, CVS opened 47 new stores, closed 247 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. 29 others. As of March 30, 2002, CVS operated 3,991 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 32 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). . As reported in a separate press release today, April sales increased 7.8% to $1.81 billion, compared to $1.68 billion in the prior year period. April sales were negatively impacted by an early 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 (March 31st this year versus April 15th last year), which shifted holiday sales from April into March. April same store sales rose 7.1%, while pharmacy same store sales increased 12.8% and front-end same store sales decreased 3.6%. For the combined March and April period, sales increased 10.4% to $4.13 billion, compared to $3.74 billion during the same two months in 2001. Same stores sales for the March/April period rose 10.1%, while pharmacy same store sales rose 12.8% and front-end same store sales increased 4.7%. The Company will be holding a conference call today for the investment community at 8:30am (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. To access the webcast, visit the Company's web site at http://www.CVS.com on the Investor Relations Investor relations The process by which the corporation communicates with its investors. page 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 which will be available for a one-week period following the call. CVS is America's No. 1 pharmacy dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. prescriptions in more stores than any other retailer. With annual revenues exceeding $22 billion, CVS has created innovative approaches to serve the healthcare needs of all of our customers through its approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4,000 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. stores; CVS ProCare ProCare is a service offered by the Apple Store that provides additional services from the Genius Bar. ProCare is an annual membership costing US$99 that provides the customer with various services to expedite the Genius Bar experience in addition to features such as backup consultation , its specialty pharmacy business; CVS.com, its online pharmacy  This article or section may deal primarily with the U.S. and may not present a worldwide view. ; and PharmaCare, 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. company.
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 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December December: see month. 29, 2001.
CVS CORPORATION
Consolidated Statements of Operations
(Unaudited)
----------------------------------------------------------------
13 Weeks Ended
March 30, March 31,
In millions, except per
share amounts 2002 2001
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Net sales $ 5,970.7 $ 5,385.9
Cost of goods sold,
buying and warehousing
costs 4,477.0 3,932.5
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Gross margin 1,493.7 1,453.4
Selling, general and
administrative expenses 1,122.2 993.4
Depreciation and
amortization 75.0 78.6
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Total operating
expenses 1,197.2 1,072.0
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Operating profit 296.5 381.4
Interest expense, net 13.1 15.7
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Earnings before income
tax provision 283.4 365.7
Income tax provision 107.7 144.0
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Net earnings 175.7 221.7
Preference dividends,
net of income tax benefit 3.7 3.7
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Net earnings available
to common shareholders $ 172.0 $ 218.0
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Basic earnings per
common share:
Net earnings $ 0.44 $ 0.56
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Weighted average basic
common shares outstanding 391.6 392.8
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---------------------------------------------- -----------------
Diluted earnings
per common share:
Net earnings $ 0.43 $ 0.54
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Weighted average diluted
common shares outstanding 404.7 411.3
---------------------------------------------- -----------------
---------------------------------------------- -----------------
Dividends declared
per common share $ 0.0575 $ 0.0575
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Note: Effective in fiscal 2002, CVS adopted Statement of Financial
Accounting Standard No. 142, "Goodwill and Other Intangible
Assets." As a result of the adoption, goodwill and other
indefinite-lived intangible assets are no longer being
amortized. Amortization of these assets in the first quarter of
2001 amounted to $7.6 million. Removing this amortization
expense and its related tax effect would have resulted in net
earnings of $228.4 million, or $0.55 per diluted share, in the
first quarter of 2001.
CVS CORPORATION
Consolidated Balance Sheets
---------------------------------------------------- ----------------
(Unaudited)
March 30, December 29,
In millions, except share
and per share amounts 2002 2001
---------------------------------------------------- ----------------
---------------------------------------------------- ----------------
Assets:
Cash and cash equivalents $ 453.5 $ 236.3
Accounts receivable, net 1,008.9 966.2
Inventories 4,098.4 3,918.6
Deferred income taxes 210.6 242.6
Other current assets 48.2 46.2
---------------------------------------------------- ----------------
---------------------------------------------------- ----------------
Total current assets 5,819.6 5,409.9
Property and equipment, net 2,025.1 1,847.3
Goodwill, net 876.4 874.9
Intangible assets, net 308.6 318.0
Other assets 181.9 178.1
---------------------------------------------------- ----------------
---------------------------------------------------- ----------------
Total assets $ 9,211.6 $ 8,628.2
---------------------------------------------------- ----------------
---------------------------------------------------- ----------------
Liabilities:
Accounts payable $ 1,515.2 $ 1,535.8
Accrued expenses 1,274.1 1,267.9
Short-term borrowings 664.8 235.8
Current portion of
long-term debt 26.4 26.4
---------------------------------------------------- ----------------
---------------------------------------------------- ----------------
Total current
liabilities 3,480.5 3,065.9
Long-term debt 810.2 810.4
Deferred income taxes 35.3 35.3
Other long-term
liabilities 149.9 149.7
Shareholders' equity:
Preference stock,
series one ESOP convertible,
par value $1.00:
authorized 50,000,000 shares;
issued and outstanding 4,790,000
shares at March 30, 2002 and
4,887,000 shares at
December 29, 2001 256.0 261.2
Common stock, par value $0.01:
authorized 1,000,000,000 shares;
issued 408,875,000 shares at
March 30, 2002 and 408,532,000
shares at December 29, 2001 4.1 4.1
Treasury stock, at cost:
16,931,000 shares at
March 30, 2002 and
17,645,000 shares at
December 29, 2001 (490.2) (510.8)
Guaranteed ESOP obligation (219.9) (219.9)
Capital surplus 1,539.8 1,539.6
Retained earnings 3,645.9 3,492.7
---------------------------------------------------- ----------------
---------------------------------------------------- ----------------
Total shareholders' equity 4,735.7 4,566.9
---------------------------------------------------- ----------------
---------------------------------------------------- ----------------
Total liabilities and
shareholders' equity $ 9,211.6 $ 8,628.2
---------------------------------------------------- ----------------
Note: Effective in fiscal 2002, CVS adopted Statement of Financial
Accounting Standard No. 142, "Goodwill and Other Intangible
Assets." As a result of the adoption, reorganization goodwill,
which was previously reported as a component of Other assets, has
been reclassified to Goodwill, net. Additionally, all other
intangible assets, have been segregated and are now classified as
Intangible assets, net.
CVS CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
----------------------------------------------------------------------
13 Weeks Ended
March 30, March 31,
In millions 2002 2001
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------------------------------------------------------- ------------
Cash flows from operating activities:
Net earnings $ 175.7 $ 221.7
Adjustments required
to reconcile net earnings
to net cash provided by
(used in) operating activities:
Depreciation and amortization 75.0 78.6
Deferred income taxes and
other noncash items 40.4 0.2
Change in operating assets and
liabilities, providing/(requiring)
cash, net of effects from acquisitions:
Accounts receivable, net (42.7) (69.2)
Inventories (179.7) (263.8)
Other current assets 2.1 (7.2)
Other assets (1.0) (3.6)
Accounts payable (20.6) (120.7)
Accrued expenses 0.4 68.8
Other long-term liabilities 0.1 1.9
------------------------------------------------------- ------------
------------------------------------------------------- ------------
Net cash provided by (used in)
operating activities 49.7 (93.3)
------------------------------------------------------- ------------
------------------------------------------------------- ------------
Cash flows from investing
activities:
Additions to property
and equipment (377.9) (126.0)
Proceeds from sale-leaseback
transactions 135.5 --
Acquisitions (net of cash
acquired) and investments (14.0) (81.5)
Proceeds from sale or
disposal of assets 2.6 6.3
------------------------------------------------------- ------------
------------------------------------------------------- ------------
Net cash used in
investing activities (253.8) (201.2)
------------------------------------------------------- ------------
------------------------------------------------------- ------------
Cash flow from financing
activities:
Additions to (reductions
in) short-term borrowings 429.0 (40.0)
Proceeds from exercise of
stock options 15.0 22.9
(Reductions in) additions
to long-term debt (0.2) 296.7
Dividends paid (22.5) (22.6)
------------------------------------------------------- ------------
Net cash provided by
financing activities 421.3 257.0
------------------------------------------------------- ------------
------------------------------------------------------- ------------
Net increase (decrease)
in cash and cash equivalents 217.2 (37.5)
Cash and cash equivalents at
beginning of period 236.3 337.3
------------------------------------------------------- ------------
------------------------------------------------------- ------------
Cash and cash equivalents
at end of period $ 453.5 $ 299.8
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