McKesson Reports Record Income, Up 67%, in Third Quarter; Growth Is Driven by 80% Increase in Health Care Profit.SAN FRANCISCO--(BW HealthWire)--Jan. 20, 1998--McKesson Corporation (NYSE NYSE See: New York Stock Exchange :MCK MCK McKinsey & Company (consulting firm) MCK Mohawk Council of Kahnawake (Quebec) MCK Mon Colle Knights (children's TV show) MCK Mirror Classes Kit MCK Maintenance Check ) today reported record revenues and earnings resulting from the continued strong performance of its core U.S. Health Care business. Net income of $42.0 million for the company's third fiscal 1998 quarter ended December December: see month. 31, 1997, was up 67 percent compared to net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before special items of $25.2 million in the third quarter a year ago. McKesson McKesson Corporation (NYSE: MCK) is a large United States-based corporation specializing in the distribution of health care systems, medical supplies and pharmaceutical products. had earnings 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 of 43 cents for the quarter, an increase of 48 percent from 29 cents per diluted share before special items a year ago. Per share amounts reflect a two-for-one stock split that took effect January January: see month. 2, 1998. Total revenues for the third quarter increased 34 percent from the prior year, to $4.7 billion. "Our base U.S. pharmaceutical distribution business continued its outstanding performance with strong internal growth and excellent operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improvement," said Mark A. Pulido, president and chief executive officer. "We are nearing the completion of the integration of FoxMeyer, well ahead of schedule." "Our focus on health care, revenue momentum, increasing efficiency, investments in new technologies and strategic initiatives, strong balance sheet and financial discipline, combined with the continuing positive fundamentals of the U.S. health care industry, position McKesson well for continued growth," Pulido added. U.S. Health Care Revenue Up 38%, With 14% Internal Growth in Pharmaceutical Segment U.S. Health Care revenues increased 38 percent in the third quarter versus a year ago, reaching a record $4.2 billion, reflecting both internal growth and the effect of acquisitions. Pharmaceutical distribution revenues increased 23 percent, including 14 percent internal growth. Revenues in the third quarter a year ago included revenues from the FoxMeyer business acquired in November November: see month. 1996. McKesson's U.S. pharmaceutical distribution revenues for the third quarter were comprised of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 32 percent institutions, 33 percent retail chains and 35 percent independents. Internal revenue growth in the quarter was particularly strong in the institutional and chain sectors. "The year-over-year internal growth in our U.S. pharmaceutical business is particularly impressive considering our very strong internal growth rate of 20 percent in the third quarter a year ago," noted Pulido. The quarterly growth in revenues reflects significant new customers signed in late fiscal 1997 and early fiscal 1998 such as, H.E.B. Stores, ShopKo Stores ShopKo Stores, Inc. is a chain of retail stores based in Ashwaubenon, Wisconsin, outside of Green Bay, behind Bay Park Square shopping mall which has ShopKo as one of its anchor tenants. The company employs approximately 16,000 people and has a presence in 13 states. and Sisters of the Sorrowful sor·row·ful adj. Affected with, marked by, causing, or expressing sorrow. See Synonyms at sad. sor  row·ful·ly adv. Mother. The
growth also reflects expanding business with leading organizations such
as the University HealthSystem Consortium (UHC UHC UnitedHealthcareUHC United Health Care UHC University Hospitals of Cleveland UHC United Hitech Corporation UHC Udvar-Hazy Center (National Air and Space Museum) UHC University Health/System Consortium UHC Unburned Hydrocarbons ), VHA VHA Veterans Health Administration VHA Variable Housing Allowance VHA Villages Homeowners Association VHA Voluntary Hospitals Association VHA Virtual Home Agent VHA Very High Altitude VHA Vapor Hazard Area VHA Vermont Holstein-Friesian Association , Mercy MERCY, Practice. To be in mercy, signifies to be liable to punishment at the discretion of the judge. MERCY, crim. law. The total or partial remission of a punishment to which a convict is subject. When the whole punishment is remitted, it is called a pardon; (q.v. Resource Management, Phar-Mor Phar-Mor was a United States chain of discount drug stores, based in Youngstown, Ohio, and founded by Michael I. Monus (usually called Mickey Monus) and David S. Shapira in 1982. and Costco Costco Wholesale Corporation (NASDAQ: COST) is the largest membership warehouse club chain in the world based on sales volume, headquartered in Issaquah, Washington, United States,[1] with its flagship warehouse in nearby Seattle. , each of which signed renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. pharmaceutical distribution agreements with McKesson during the past six months. U.S. Health Care revenues include revenues from McKesson General Medical, which were $461.7 million in the third quarter. While not included in McKesson's results a year ago, this represents a 6 percent quarterly increase. International revenues increased in the quarter to $439.5 million from $406.9 million a year ago, led by an eight percent gain at Medis. Total revenues from Health Care Services increased 34 percent in the third quarter, to $4.6 billion. Health Care Services Operating Profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. Up 80 Percent Operating profit from Health Care Services increased to a record $97.0 million in the third quarter from $53.9 million before special items a year ago, as a result of increased operating margins for McKesson's U.S. base pharmaceutical distribution business, increased profit from its Canadian business Canadian Business is the longest-publishing business magazine in Canada. It was founded in 1928 as The Commerce of the Nation, the organ of the Canadian Chamber of Commerce. The magazine was renamed Canadian Business in 1933. and the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of acquisitions. "The operating margin for our U.S. Health Care business increased in the quarter, driven by the elimination of fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). through the rapid integration of FoxMeyer and increased efficiency on an expanding base of business," said Pulido. "During the quarter, we completed the final planned FoxMeyer distribution center closure, and converted the three remaining FoxMeyer distribution centers and all customers to McKesson systems. We will continue our focus on increased operating efficiencies and margin improvement in our U.S. pharmaceutical distribution business while we expand revenues." "We also have begun to see the effect of new business on the profit of Medis, which increased significantly in the quarter," added Pulido. "All of this has enabled us to expand operating profit at a faster rate than our revenue growth." New CoSource and AcuDose-RX Initiatives "This quarter, we introduced two new strategic initiatives," said Pulido. "CoSource(SM) from McKesson Health Systems, which comprehensively integrates pharmaceutical distribution services, automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. technologies and information systems, is designed to deliver the lowest total patient cost available while improving the quality of health care. AcuDose-Rx(TM), from McKesson Automated Healthcare, is a new unit-based cabinet that securely dispenses bar-coded unit-dose medications. They follow strategic initiatives such as Select Generics(SM) and OmniLink(SM), which have become well-established for reducing health care costs and improving the quality of patient care." In the third quarter of fiscal 1998, McKesson Automated Healthcare shipped 14 ROBOT-Rx(TM) systems, bringing its installed base to 93 systems, an increase of 30 since fiscal 1997 year end. ROBOT-Rx is a robotic ro·bot·ic adj. Relating to, characteristic of, or employing robots. 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. 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. and utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be tracking system that enables hospitals to lower pharmacy costs while significantly improving the accuracy of drug dispensing. Scaleable to small-, medium- and large-sized hospitals, ROBOT-Rx is a total solution that dispenses more than 90 percent of all unit-dose medications. Increased Revenues and Profit From Water Products McKesson Water Products' revenues increased to $64.8 million in the third quarter compared to $62.0 million in the third quarter a year ago, which included $3.5 million in revenues from Aqua-Vend(R), which was sold in March 1997. The 11 percent increase in revenues from comparable operations was driven by continuing strong grocery-sales growth following a series of new product introductions and the effect of direct delivery geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. expansion. Operating profit from McKesson's Water Products business increased 15 percent in the third quarter to $10.0 million from $8.7 million before the special item in the prior year's third quarter. Strong Financial Position At December 31, 1997, McKesson's cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has totaled $169 million, including $77 million held in trust for the company's exchangeable debentures. At the end of the third quarter, the company's net debt-to-capital ratio was 43 percent, primarily reflecting seasonal fluctuations in working capital. McKesson's tax rate for the quarter decreased to 36.5 percent compared to a tax rate of 37.5 percent for the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. . The decrease resulted from the effect of the re-financing during the quarter of Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. debt in a more tax-efficient manner. "This debt re-financing was designed to lower our after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. cost of borrowing, and will result in an expected tax rate of 37 percent for the corporation going forward," said Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a H. Hawkins, vice president and chief financial officer. Interest expense, net of interest income, increased to $25.0 million in the third quarter compared to $11.9 million in the third quarter a year ago, and to $70.3 million for the first nine months from $27.1 million a year ago. This increase resulted primarily from an increase in debt used to finance acquisitions in the second half of fiscal 1997. While total operating profit increased 71 percent in the third quarter compared to a year ago before special items, the increase in earnings per share was reduced by the issuance of new shares in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the General Medical acquisition in February February: see month. 1997, the shares underlying the convertible preferred securities issued in February 1997 and the increase in net interest expense. At December 31, 1997, after giving effect to the two-for-one stock split, McKesson had 92.6 million common shares outstanding. Average shares in the third quarter of fiscal 1998, after giving effect to the split, were 101.8 million compared to 83.7 million in the third quarter a year ago. Record Results for the First Nine Months For the first nine months of fiscal 1998, McKesson reported record revenues, income and earnings. Total revenues for the first nine months increased 52 percent from the prior year, to $13.5 billion. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 65% to $302.2 million, from $183.4 million before special items a year ago. Net income from continuing operations increased 53 percent, to $119.2 million, compared to net income from continuing operations before special items of $77.8 million for the first nine months a year ago. After giving effect to the stock split, earnings per diluted share increased 40 percent, to $1.23, from the prior year before special items. McKesson Corp., a Fortune 100 company, is the leading health care supply management company in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. through its U.S. Health Care businesses; its Canadian subsidiary, Medis Health and Pharmaceutical Services; and its interest in Mexico's Nadro. The company also owns McKesson Water Products, one of the nation's largest providers of bottled drinking water drinking water supply of water available to animals for drinking supplied via nipples, in troughs, dams, ponds and larger natural water sources; an insufficient supply leads to dehydration; it can be the source of infection, e.g. leptospirosis, salmonellosis, or of poisoning, e.g. . On September September: see month. 23, 1997, McKesson and AmeriSource Health Corporation, a leading U.S. wholesale distributor of pharmaceutical and related health care products and services, jointly announced that they had signed a definitive merger agreement providing for McKesson to acquire AmeriSource. McKesson and AmeriSource each will hold a special meeting of stockholders to vote on matters related to the proposed merger on February 9, 1998. The transaction remains subject to the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the waiting period under the Hart-Scott-Rodino Act Hart-Scott-Rodino Act Often used in risk arbitrage. Antitrust act administered by U.S. Department of Justice and the FTC that requires an investor to file a form with the government before he acquires an economic interest in the lesser amount of $15 million or 15% of the . Except for the historical information contained herein, the matters discussed in this press release may constitute 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. within the meaning of 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. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties, which include but are not limited to the speed of integration of acquired businesses, continued competitive pressures and the success of strategic initiatives, are discussed from time to time in the reports filed by McKesson with the Securities and Exchange Commission. The Company assumes no obligation to update information contained in this release. -0-
McKESSON CORPORATION
CONDENSED INCOME INFORMATION
(unaudited)
(in millions except per share amounts)
Quarter Ended December 31
---------------------------
FY98 FY97 %Chg.
------ ------ -----
Revenues $4,670.8 $3,486.6 34.0
Costs and expenses
before special items 4,602.1 3,448.1 33.5
Special items - (98.8)(1)
------- -------
Income (loss) before taxes 68.7 (60.3)
Income tax (expense) benefit (25.1) 24.2 (2)
Dividends on preferred securities
of subsidiary trust (1.6) -
------- -------
Net income (loss)
Continuing operations
Before special items 42.0 25.2 66.7
Special items - (61.3)
------- -------
Total 42.0 (36.1)
Discontinued operations - 2.1
Discontinued operations - gain
on sale of Armor All stock - 120.2
------- -------
Net income $ 42.0 $ 86.2 (51.3)
======= =======
Earnings per common share (3)
Diluted
Continuing operations
Before special items $ 0.43 $ 0.29 (4) 48.3
Special items - (0.72)
------- -------
Total 0.43 (0.43)
Discontinued operations - 0.02
Discontinued operations - gain
on sale of Armor All stock - 1.44
------- -------
Total $ 0.43 $ 1.03 (58.3)
======= =======
Basic
Continuing operations
Before special items $ 0.45 $ 0.30 50.0
Special items - (0.73)
------- -------
Total 0.45 (0.43)
Discontinued operations - 0.02
Discontinued operations - gain
on sale of Armor All stock - 1.44
------- -------
Total $ 0.45 $ 1.03 (56.3)
======= =======
Shares on which earnings
per common share were based (3)
Diluted 101.8 83.7 (4)
Basic 91.6 83.7
(1) FY 1997 includes $98.8 million in charges for restructuring,
asset impairment and other operating items in the quarter and
nine month periods and $48.2 million for the write-off of
in-process technology related to the acquisition of McKesson
Automated Healthcare, Inc. in the nine month period.
(2) FY 1997 includes taxes on income from continuing operations
before special items of $13.3 million and $46.0 million and
income tax benefits on special items of $37.5 million and
$37.5 million in the quarter and nine month periods,
respectively.
(3) Restated in accordance with Statement of Accounting Standards
No. 128 and to reflect the two for one stock split declared
October 29, 1997, distributed January 2, 1998 to stockholders
of record on December 2, 1997.
(4) Diluted EPS from continuing operations before special items for
the third quarter and nine month periods have been calculated
using 87.1 and 88.3 million diluted shares, respectively, which
include the shares arising from the assumed exercise of stock
options under the treasury stock method. Because of the loss from
continuing operations in the respective periods, such shares were
anti-dilutive and, therefore, were excluded from the computations
of per share loss from continuing operations, income from
discontinued operations and net income.
McKESSON CORPORATION
CONDENSED INCOME INFORMATION
(unaudited)
(in millions except per share amounts)
Nine Months Ended December 31
-----------------------------
FY98 FY97 %Chg.
------ ------ -----
Revenues $13,481.3 $8,888.1 51.7
Costs and expenses
before special items 13,283.1 8,764.3 51.6
Special items - (147.0)(1)
-------- -------
Income (loss) before taxes 198.2 (23.2)
Income tax (expense) benefit (74.3) (8.5)(2)
Dividends on preferred securities
of subsidiary trust (4.7) -
-------- -------
Net income (loss)
Continuing operations
Before special items 119.2 77.8 53.2
Special items - (109.5)
-------- -------
Total 119.2 (31.7)
Discontinued operations - 7.7
Discontinued operations - gain
on sale of Armor All stock - 120.2
-------- -------
Net income $ 119.2 $ 96.2 23.9
======== =======
Earnings per common share (3)
Diluted
Continuing operations
Before special items $ 1.23 $ 0.88 (4) 39.8
Special items - (1.25)
-------- -------
Total 1.23 (0.37)
Discontinued operations - 0.09
Discontinued operations - gain
on sale of Armor All stock - 1.41
-------- -------
Total $ 1.23 $ 1.13 8.8
======== =======
Basic
Continuing operations
Before special items $ 1.30 $ 0.92 41.3
Special items - (1.29)
-------- -------
Total 1.30 (0.37)
Discontinued operations - 0.09
Discontinued operations - gain
on sale of Armor All stock - 1.41
-------- -------
Total $ 1.30 $ 1.13 15.0
======== =======
Shares on which earnings
per common share were based (3)
Diluted 101.1 85.0 (4)
Basic 91.3 85.0
(1) FY 1997 includes $98.8 million in charges for restructuring,
asset impairment and other operating items in the quarter and
nine month periods and $48.2 million for the write-off of
in-process technology related to the acquisition of McKesson
Automated Healthcare, Inc. in the nine month period.
(2) FY 1997 includes taxes on income from continuing operations
before special items of $13.3 million and $46.0 million and
income tax benefits on special items of $37.5 million and
$37.5 million in the quarter and nine month periods,
respectively.
(3) Restated in accordance with Statement of Accounting Standards
No. 128 and to reflect the two for one stock split declared
October 29, 1997, distributed January 2, 1998 to stockholders
of record on December 2, 1997.
(4) Diluted EPS from continuing operations before special items for
the third quarter and nine month periods have been calculated
using 87.1 and 88.3 million diluted shares, respectively, which
include the shares arising from the assumed exercise of stock
options under the treasury stock method. Because of the loss from
continuing operations in the respective periods, such shares were
anti-dilutive and, therefore, were excluded from the computations
of per share loss from continuing operations, income from
discontinued operations and net income.
McKESSON CORPORATION
RESULTS BY BUSINESS SEGMENT
(unaudited)
(in millions)
Quarter Ended December 31
---------------------------
FY98 FY97 %Chg.
------ ------ -----
REVENUES
Health Care Services
U.S. Health Care
Pharmaceutical Dist & Serv $3,702.1 $3,015.7 22.8
Medical/Surgical Dist & Serv 461.7 -
------- -------
Total U.S. Health Care 4,163.8 3,015.7 38.1
International 439.5 406.9 8.0
------- -------
Total Health Care Services 4,603.3 3,422.6 34.5
Water Products 64.8 62.0 4.5
Corporate 2.7 2.0
------- -------
Total $4,670.8 $3,486.6 34.0
======= =======
OPERATING PROFIT (LOSS)
Health Care Services
Before special items $ 97.0 $ 53.9 80.0
Special items - (91.8)(1)
------- -------
Total Health Care Services 97.0 (37.9)
Water Products
Before special items 10.0 8.7 14.9
Special items - (7.0)(2)
------- -------
Total Water Products 10.0 1.7
------- -------
Total 107.0 (36.2)
Interest - net (25.0) (11.9)
Corporate and other (13.3) (12.2)
Income (loss) before taxes
Before special items 68.7 38.5 78.4
Special items - (98.8)
------- -------
Total 68.7 (60.3)
Income tax (expense) benefit
Before special items (25.1) (13.3)
Special items - 37.5
------- -------
Total (25.1) 24.2
Dividends on preferred securities
of subsidiary trust (1.6) -
------- -------
Net income (loss)
Continuing operations
Before special items 42.0 25.2 66.7
Special items - (61.3)
------- -------
Total
(1) FY 1997 includes $91.8 million in chargeshe acquisition of McKesson
Automated Healthcare, Inc. in the nine month period.
(2) FY 1997 reflects a write-down of $7 million for the assets of
the Aqua-Ven RESULTS BY BUSINESS SEGMENT
(unaudited)
(in millions)
Nine Months Ended December 31
-----------------------------
FY98 FY97 %Chg.
------ ------ -----
REVENUES
Health Care Services
U.S. Health Care
Pharmaceutical Dist & Serv $10,683.0 $7,507.6 42.3
Medical/Surgical Dist & Serv 1,366.9 -
-------- -------
Total U.S. Health Care 12,049.9 7,507.6 60.5
International 1,204.2 1,158.7 3.9
-------- -------
Total Health Care Services 13,254.1 8,666.3 52.9
Water Products 217.5 210.0 3.6
Corporate 9.7 11.8
-------- -------
Total $13,481.3 $8,888.1 51.7
LOSS)
Health Care Services
Before special itces 264.4 10.7
Water Products
Water Products 37.8 25.7
-------- -------
Total 302.2 36.4
Interest - net (70.3) (27.1)
Corporate and other (33.7) (32.5)
Income (loss) before taxes
Before special items 198.2 123.8 60.1
Special items - (147.0)
-------- -------
Total -------- -------
Total (74.3) (8.5)
Dividends on preferred securities
of subsidiary trust (4.7) 119.2 (31.7)
Discoems in the quarter and
nine month periods and $48.2 million for the write-off of in-
process technology related to the acquisition of McKesson
Automated Healthcare, Inc. in the nine month period.
(2) FY 1997 reflects a write-down of $7 million for the assets of
the Aqua-Vend unit.
McKESSON CORPORATION
EARNINGS PER SHARE (1)
(shares in millions)
1st 2nd 3rd 4th
Qtr Qtr Qtr Qtr Year
--- --- --- --- ----
Fiscal 1998
-----------
DILUTED EPS $0.39 $0.41 $0.43
Diluted shares 100.2 101.1 101.8
BASIC EPS $0.41 $0.44 $0.45
Basic shares 91.0 91.4 91.6
Fiscal 1997
-----------
DILUTED EPS
Continuing operations
Before special items $0.30(2)$0.29 $0.29(2)$0.41 $1.29
Special items (0.55) - (0.72) - (1.23)
---- ---- ---- ---- ----
Total (0.25) 0.29 (0.43) 0.41 0.06
Discontinued operations 0.04 0.03 0.02 0.01 0.10
Discontinued operations
- gain on sale of
Armor All stock - - 1.44 - 1.35
---- ---- ---- ---- ----
Net income (loss) ($0.21) $0.32 $1.03 $0.42 $1.51
==== ==== ==== ==== ====
Diluted shares 87.3(2) 87.3 83.7(2) 93.0 89.4
BASIC EPS
Continuing operations
Before special items $0.31 $0.30 $0.30 $0.42 $1.34
Special items (0.56) - (0.73) - (1.28)
---- ---- ---- ---- ----
Total (0.25) 0.30 (0.43) 0.42 0.06
Discontinued operations 0.04 0.03 0.02 0.01 0.10
Discontinued operations
- gain on sale of
Armor All stock - - 1.44 - 1.41
---- ---- ---- ---- ----
Net income (loss) ($0.21) $0.33 $1.03 $0.43 $1.57
==== ==== ==== ==== ====
Basic shares 87.3 84.0 83.7 87.3 85.5
(1) Restated in accordance with Statement of Accounting Standards
No. 128 and to reflect the two for one stock split declared
October 29, 1997, distributed January 2, 1998 to stockholders
of record on December 2, 1997.
(2) Diluted EPS from continuing operations before special items for
the first and third quarters have been calculated using 90.7 and
87.1 million diluted shares, respectively, which include the
shares arising from the assumed exercise of stock options under
the treasury stock method. Because of the loss from continuing
operations in the respective quarters, such shares were
anti-dilutive and, therefore, were excluded from the computations
of per share loss from continuing operations, income from
discontinued operations and net income (loss).
-0- McKesson news releases are available at no charge through McKesson's NewsOnDemand fax service. To immediately receive an index of available releases, call 1-800-344-6495 and press 2. On the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , visit us on the World Wide Web at: http://www.mckesson.com CONTACT: McKesson Corporation Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Kurtz Kurtz is the surname of several people:
Janet Janet: see Clouet, Jean. JANET - Joint Academic NETwork Bley, 415/983-9357 (Investors) |
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