This excerpt taken from the CVS 8-K filed Nov 3, 2005.
ROSE TO $0.30
WOONSOCKET, RHODE ISLAND, November 3, 2005 - CVS Corporation (NYSE: CVS), today announced sales and earnings for the quarter ended October 1, 2005. Net earnings for the quarter increased 36.9% to $252.7 million or $0.30 per diluted share, compared with net earnings of $184.6 million or $0.22 per diluted share in the third quarter of 2004.
The third quarter was a very solid quarter in our core business as well as our acquired stores, stated Tom Ryan, Chairman of the Board, President, and Chief Executive Officer. We achieved strong sales growth and significant gross margin improvement, which led to operating margin expansion and a 37% increase in net earnings. These results put us well on our way to finishing up a terrific year, continued Mr. Ryan.
Furthermore, early results from the turnaround of the stores we acquired last year are tracking very well, both in terms of synergies and sales. We look forward to the continued benefits of the anticipated multi-year turnaround of these assets, added Mr. Ryan.
CVS previously reported that net sales for the third quarter increased 13.4% to $9.0 billion, up from $7.9 billion during the third quarter of 2004. Same store sales (sales from stores open more than one year) for the quarter rose 5.7%, which included a positive impact of approximately 80 basis points from the inclusion of the approximately 1,100 stores acquired on July 31, 2004. Pharmacy same store sales rose 5.8%, while front-end same store sales increased 5.4%. Same store sales excluded 31 stores closed for seven or more consecutive days as a result of hurricanes Katrina and Rita. 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 third quarter, CVS opened 39 new stores, closed 17 stores and relocated 30 others. As of October 1, 2005, CVS operated 5,461 retail and specialty pharmacy stores (including 16 stores which remain closed as of October 1st as a result of hurricanes Katrina and Rita) in 37 states and the District of Columbia.
The Company will be holding a conference call today for the investment community at 8:30am (EST) 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 37 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® stores; its online pharmacy, CVS.com®; and its pharmacy benefit management, mail order and specialty pharmacy subsidiary, PharmaCare®. 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 Managements Discussion and Analysis of Financial Condition and Results of Operations ~ Cautionary Statement Concerning Forward-Looking Statements in its Quarterly Report on Form 10-Q for the period ended July 2, 2005.