This excerpt taken from the CVS 8-K filed Aug 3, 2005.
CLIMBED TO $0.33
WOONSOCKET, RHODE ISLAND, August 3, 2005 - CVS Corporation (NYSE: CVS), today announced record sales and earnings for the quarter ended July 2, 2005. Net earnings for the quarter increased 17.6% to $275.9 million or $0.33 per diluted share, compared with net earnings of $234.5 million or $0.28 per diluted share in the second quarter of 2004.
The second quarter was another outstanding quarter for our company. Our performance reflected strong sales growth and share gains, both in the front store and pharmacy businesses. We also continued to benefit from better-than-expected conversion to generic drugs, stated Tom Ryan, Chairman, President, and Chief Executive Officer of CVS Corporation.
We recently achieved an important milestone as we completed the Eckerd integration, continued Mr. Ryan. Within one year of closing the deal, we have completely re-merchandised and remodeled essentially all stores. Florida and Texas, which contain many of the fastest growing drugstore markets in the country, now have over 1,000 brand new CVS/pharmacy stores reflecting our latest prototype in most cases. And the EHS business has been integrated with our PBM, and is operating under the PharmaCare name. I am optimistic that this acquisition will be an important driver of sales and earnings growth in the future, concluded Mr. Ryan.
CVS previously reported that net sales for the second quarter increased 31.4% to $9.1 billion, up from $6.9 billion during the second quarter of 2004. Same store sales (sales from stores open more than one year) for the quarter rose 5.6%, while pharmacy same store sales rose 7.4% and front-end same store sales increased 1.7%. Same store sales do not include the acquired Eckerd drugstores, which will be included in the August same store sales to be reported in early September 2005. The Company estimates the Easter shift had a negative impact of approximately 130 basis points on front-end same store sales and 80 basis points on total same store sales, for the thirteen-week period. Total pharmacy sales represented 70.6% of total company sales for the quarter. Third party prescription sales were 93.9% of pharmacy sales for the quarter.
For the second quarter, CVS opened 52 new stores, closed 22 and relocated 30 others. As of July 2, 2005, CVS operated 5,439 retail and specialty pharmacy stores in 36 states and the District of Columbia.
The Company will be holding a conference call today for the investment community at 8:30am (EDT) to discuss the 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 is Americas largest retail pharmacy, operating over 5,400 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/pharmacyâ stores; its online pharmacy, CVS.comâ; and its pharmacy benefit management, mail order and specialty pharmacy subsidiary, PharmaCareâ. General information about CVS 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 Annual Report on Form 10-K for the fiscal year ended January 1, 2005.