This excerpt taken from the CVS 8-K filed Jan 31, 2008.
AND $2.07 ON AN ADJUSTED BASIS
WOONSOCKET, RHODE ISLAND, January 31, 2008CVS Caremark Corporation (NYSE: CVS), today announced record revenues and earnings for the fourth quarter and fiscal year ended December 29, 2007.
Net earnings for the fourth quarter ended December 29, 2007, increased 95.3% to $815.0 million or $0.55 per diluted share, compared with net earnings of $417.2 million or $0.49 per diluted share in the comparable 2006 period. Adjusted diluted earnings per share for the fourth quarter ended December 29, 2007 were $0.58, compared with $0.52 per share in the comparable 2006 period. Net earnings for the full year 2007 increased 92.6% to $2.6 billion or $1.92 per diluted share, compared with net earnings of $1.4 billion or $1.60 per diluted share in 2006. Adjusted diluted earnings per share for the full year ended December 29, 2007 were $2.07, compared with $1.72 per share in the comparable 2006 period.
The Company estimates merger and integration costs associated with the March 22, 2007 merger between CVS Corporation and Caremark Rx, Inc. negatively impacted diluted earnings per share by approximately $0.01 and $0.05 for the fourth quarter and full year 2007, respectively.
Tom Ryan, Chairman, President and Chief Executive Officer of CVS Caremark said, 2007 was a milestone year for CVS Caremark, and we accomplished a great deal across our business units. At the same time, we remained focused on service, execution, and expense control, which yielded exceptional financial performance. Solid revenue growth and improved gross margins in both the Retail and PBM segments drove expanded operating margins and healthy earnings growth. We attained our goal of generating $2 billion in free cash flow, and launched a $5 billion share repurchase program, slated to be fully complete by the end of the first quarter of this year.
Mr. Ryan continued, We also set the stage for significant future growth with the completion of our transformational merger. From this platform, we are creating a unique and differentiated position in the marketplace, which will enable us to reduce the costs and complexities of healthcare for payors and consumers, while improving health outcomes.
I am extremely proud of the dedicated individuals across our company who accomplished our 2007 goals. With our industry-leading team and our unparalleled expertise, I see a very significant opportunity to gain share and create new sources of revenue, concluded Mr. Ryan.
Net revenues for the thirteen-week period ended December 29, 2007, increased $9.8 billion to $21.9 billion, up from $12.1 billion during the thirteen-week period ended December 30, 2006. Same store sales (sales from stores open more than one year) in the Companys CVS/pharmacy division for the fourth quarter rose 3.4% over the prior year period. Pharmacy same store sales rose 3.6% and were negatively impacted by approximately 450 basis points due to recent generic introductions, while front-end same store sales increased 2.9%. For the full year, total revenue for the fifty-two week period ended December 29, 2007, increased 74.2% to a record $76.3 billion, compared to $43.8 billion in 2006. Same store sales in the Companys CVS/pharmacy division increased 5.3% for the year, while pharmacy same store sales increased 5.2% and front-end same store sales increased 5.3%.
For the year, CVS Caremark opened 139 new retail pharmacy stores and 1 new specialty pharmacy store; closed 44 retail pharmacy stores, 1 mail service pharmacy and 2 specialty mail order pharmacies. In addition, the Company relocated 136 retail pharmacy stores and 1 specialty pharmacy store. As of December 29, 2007 the Company operated 6,245 retail pharmacy stores, 56 specialty pharmacy stores, 20 specialty mail order pharmacies and 9 mail order pharmacies in 44 states and the District of Columbia.
The Company will be holding a conference call today for the investment community at 8:30 am (ET) to discuss its quarterly results. An audio webcast of the conference call will be broadcast simultaneously through the Investor Relations 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 Caremark is the largest provider of prescriptions and related healthcare services in the nation. The Company fills or manages more than 1 billion prescriptions annually. Through its unmatched breadth of service offerings, CVS Caremark is transforming the delivery of healthcare services in the U.S. The Company is uniquely positioned to effectively manage costs and improve healthcare outcomes through its more than 6,200 CVS/pharmacy stores; its pharmacy benefit management, mail order and specialty pharmacy division, Caremark Pharmacy Services; its retail-based health clinic subsidiary, MinuteClinic; and its online pharmacy, CVS.com. General information about CVS Caremark is available through the Investor Relations portion of the Companys website, at http://investor.CVS.com, as well as through the press room portion of the Companys website, at www.cvs.com/pressroom.
This press release contains certain forward-looking statements 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 for forward-looking statements contained in the Private Securities Litigation Reform Act 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 for the quarter ended September 29, 2007.