CVS Corporation Reports Solid Third Quarter 2004 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 third quarter sales and earnings for the quarter ended October October: see month. 2, 2004. 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 third quarter ended October 2, 2004 increased 24.0% to $7.91 billion, up from $6.38 billion during the third quarter of 2003, reflecting the impact of the acquisition on July July: see month. 31, 2004, of 1,268 Eckerd Eckerd may refer to:
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 (i.e., sales from stores open more than one year) for the quarter rose 5.2%, while pharmacy same store sales rose 6.8% 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 1.8%. Same store sales do not include the sales results of the acquired drugstores mentioned above. The 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 August 2005. Total pharmacy sales represented 71.0% of total company sales for the quarter. Third party prescription sales were 93.8% of pharmacy sales for the quarter. Net earnings for the third quarter decreased 1.7% to $184.6 million or $0.44 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 $187.8 million or $0.46 per diluted share in the third quarter of 2003. The Company estimates that the Eckerd acquisition had a negative impact of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.07 per diluted share in the third quarter of 2004. The Company's third quarter results compared to last year were driven by increased selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the integration of the acquired businesses, offset in part by continued strong margin performance. "The third quarter was another strong quarter for CVS. The core business is thriving thrive intr.v. thrived or throve , thrived or thriv·en , thriv·ing, thrives 1. To make steady progress; prosper. 2. , and the integration of Eckerd's store and PBM PBM - play by mail. See play by electronic mail. businesses is ahead of schedule," 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 CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CVS Corporation. "We delivered healthy sales growth and better-than-expected gross margin improvement, resulting in solid earnings performance," concluded Mr. Ryan Ryan may refer to: Places
For the third quarter, CVS acquired 1,268 drugstores, opened 49 new stores, closed 140 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. 37 others. As of October 2, 2004, CVS operated 5,383 retail and specialty pharmacy stores in 36 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 (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 Investor Relations Investor relations The process by which the corporation communicates with its investors. web site at http://investor.CVS.com. There you can hear the call live or listen to an archive of the call, which will be available for a one-week period following the call. CVS is America's #1 retail pharmacy, operating over 5,000 retail and specialty pharmacy stores in 36 states and the District of Columbia. 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 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 and specialty pharmacy subsidiary, PharmaCare(R)Management
Services. General information about CVS is available through the
Investor Relations portion of the Company's website, at
http://investor.CVS.com.
- Tables Follow -
CVS CORPORATION
Consolidated Condensed Statements of Operations
(Unaudited)
In millions, except 13 Weeks Ended 39 Weeks Ended
per share amounts October 2, September October 2, September
2004 27, 2003 2004 27, 2003
----------------------------------------------------------------------
Net sales $ 7,909.4 $ 6,378.1 $ 21,671.1 $ 19,135.8
Cost of goods sold, buying
and warehousing costs 5,838.6 4,719.5 16,002.1 14,237.9
----------------------------------------------------------------------
Gross margin 2,070.8 1,658.6 5,669.0 4,897.9
Selling, general and
administrative expenses 1,636.2 1,256.1 4,252.1 3,659.1
Depreciation
and amortization 118.6 85.8 308.1 253.8
----------------------------------------------------------------------
Total operating expenses 1,754.8 1,341.9 4,560.2 3,912.9
----------------------------------------------------------------------
Operating profit 316.0 316.7 1,108.8 985.0
Interest expense, net 15.8 11.8 29.6 37.1
----------------------------------------------------------------------
Earnings before income tax
provision 300.2 304.9 1,079.2 947.9
Income tax provision 115.6 117.1 415.5 364.0
----------------------------------------------------------------------
Net earnings 184.6 187.8 663.7 583.9
Preference dividends, net of
income tax benefit 3.6 3.7 10.9 11.0
----------------------------------------------------------------------
Net earnings available to
common shareholders $ 181.0 $ 184.1 $ 652.8 $ 572.9
----------------------------------------------------------------------
Basic earnings per common
share:
Net earnings $ 0.45 $ 0.47 $ 1.64 $ 1.45
----------------------------------------------------------------------
Weighted average basic common
shares outstanding 399.6 394.8 398.0 394.1
----------------------------------------------------------------------
Diluted earnings per common
share:
Net earnings $ 0.44 $ 0.46 $ 1.59 $ 1.42
----------------------------------------------------------------------
Weighted average diluted
common shares outstanding 416.5 408.3 414.6 407.0
----------------------------------------------------------------------
Dividends declared
per common share $ 0.06625 $ 0.0575 $ 0.19875 $ 0.1725
----------------------------------------------------------------------
Diluted earnings per common share is computed by dividing (i) net earnings, after accounting for the difference between the dividends on the ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (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 options are exercised and the ESOP preference stock is converted into common stock. The dilutive earnings adjustment was $1.3 million and $1.6 million for the thirteen weeks ended October 2, 2004 and September September: see month. 27, 2003 respectively. The dilutive earnings adjustment was $4.0 million and $4.8 million for the thirty-nine weeks ended October 2, 2004 and September 27, 2003 respectively.
CVS CORPORATION
Consolidated Condensed Balance Sheets
(Unaudited)
In millions, except share and October 2, January 3,
per share amounts 2004 2004
----------------------------------------------------------------------
Assets:
Cash and cash equivalents $ 354.4 $843.2
Accounts receivable, net 1,578.9 1,349.6
Inventories 5,412.4 4,016.5
Deferred income taxes 246.3 252.1
Other current assets 105.7 35.1
----------------------------------------------------------------------
Total current assets 7,697.7 6,496.5
Property and equipment, net 3,503.0 2,542.1
Goodwill 1,868.1 889.0
Intangible assets, net 876.5 403.7
Deferred income taxes 176.5 --
Other assets 223.7 211.8
----------------------------------------------------------------------
Total assets $ 14,345.5 $ 10,543.1
----------------------------------------------------------------------
Liabilities:
Accounts payable $ 2,309.9 $ 1,666.4
Accrued expenses 1,561.3 1,499.6
Short-term debt 956.5 --
Current portion of long-term debt 23.3 323.2
----------------------------------------------------------------------
Total current liabilities 4,851.0 3,489.2
Long-term debt 1,952.3 753.1
Deferred income taxes -- 41.6
Other long-term liabilities 828.1 237.4
Shareholders' equity:
Preference stock, series one ESOP convertible,
par value $1.00:
authorized 50,000,000 shares; issued and
outstanding 4,379,000 shares at October 2,
2004 and 4,541,000 shares
at January 3, 2004 234.0 242.7
Common stock, par value $0.01: authorized
1,000,000,000 shares;
issued 413,436,000 shares at October 2, 2004
and 410,187,000 shares at January 3, 2004 4.1 4.1
Treasury stock, at cost: 13,560,000 shares at
October 2, 2004 and 14,803,000 shares at
January 3, 2004 (392.9) (428.6)
Guaranteed ESOP obligation (163.2) (163.2)
Capital surplus 1,658.3 1,557.2
Retained earnings 5,431.2 4,846.5
Accumulated other comprehensive loss (57.4) (36.9)
----------------------------------------------------------------------
Total shareholders' equity 6,714.1 6,021.8
----------------------------------------------------------------------
Total liabilities and shareholders' equity $ 14,345.5 $ 10,543.1
----------------------------------------------------------------------
CVS CORPORATION
Condensed Statements of Cash Flows
(Unaudited)
39 Weeks Ended
October 2, September 27,
In millions 2004 2003
----------------------------------------------------------------------
Cash flows from operating activities:
Net earnings $ 663.7 $ 583.9
Adjustments required to reconcile
net earnings to net cash provided
by operating activities:
Depreciation and amortization 308.1 253.8
Deferred income taxes and other noncash
items (40.2) 30.4
Change in operating assets and liabilities,
providing/(requiring)
cash, net of effects from acquisitions:
Accounts receivable, net 125.4 (41.7)
Inventories (432.2) (5.5)
Other current assets (42.0) 1.4
Other assets 1.3 (11.1)
Accounts payable 159.2 (8.3)
Accrued expenses (148.5) (35.7)
Other long-term liabilities 123.8 (10.5)
----------------------------------------------------------------------
Net cash provided by operating activities 718.6 756.7
----------------------------------------------------------------------
Cash flows from investing activities:
Additions to property and equipment (812.1) (760.2)
Proceeds from sale-leaseback transactions 52.0 155.2
Acquisitions (net of cash acquired) and
investments (2,307.0) (87.7)
Cash outflow from hedging activities (32.8) --
Proceeds from sale or disposal of assets 14.7 7.8
----------------------------------------------------------------------
Net cash used in investing activities (3,085.2) (684.9)
----------------------------------------------------------------------
Cash flows from financing activities:
Additions to / (reductions in)
short-term debt 956.5 (4.8)
Dividends paid (79.0) (68.0)
Additions to long-term debt 1,200.0 --
Reductions in long-term debt (300.7) (0.5)
Proceeds from exercise of stock options 101.0 28.4
----------------------------------------------------------------------
Net cash provided by (used in) financing
activities 1,877.8 (44.9)
----------------------------------------------------------------------
Net (decrease) increase in cash and cash
equivalents (488.8) 26.9
Cash and cash equivalents
at beginning of period 843.2 700.4
----------------------------------------------------------------------
Cash and cash equivalents at end of period $ 354.4 $ 727.3
----------------------------------------------------------------------
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