This excerpt taken from the CVS 8-K filed Nov 1, 2007.
ROSE 37% TO $0.45
WOONSOCKET, RHODE ISLAND, November 1, 2007 - CVS Caremark Corporation (NYSE: CVS), today announced record revenues and earnings for the quarter ended September 29, 2007.
Net earnings for the third quarter ended September 29, 2007, increased 142.6% to $689.5 million or $0.45 per diluted share, compared with net earnings of $284.2 million or $0.33 per diluted share in the comparable 2006 period. Net earnings for the nine months ended September 29, 2007 increased 91.4% to $1,822.0 million or $1.36 per diluted share, compared with net earnings of $951.7 million or $1.11 per diluted 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 $ 0.04 for the third quarter and first nine months of 2007, respectively.
Tom Ryan, President and Chief Executive Officer of CVS Caremark said, I am very pleased with our strong results in the third quarter. Our sales growth, coupled with significant improvements in gross margin across our PBM and retail segments, led to solid improvement in operating margins. We continued to benefit from the increased utilization of generic drugs, improved purchasing synergies, and margin-enhancing strategies in the front end of our stores. This terrific performance across the board resulted in exceptional growth in our earnings.
Mr. Ryan continued, I could not be more pleased with our progress, which is clearly enabled by our teams dedication to and enthusiasm for what our future holds. Our unique position to broadly reach consumers and improve care while helping payers lower health care costs is resonating strongly with clients, and should pave the way for market share gains and healthy long-term growth for our company.
Net revenues for the third quarter ended September 29, 2007, increased $9.3 billion to $20.5 billion, up from $11.2 billion during the comparable 2006 period. Same store sales (sales from stores open more than one year) in its CVS/pharmacy division for the third quarter ended September 29, 2007, rose 5.0% over the prior year period. Pharmacy same store sales rose 4.3% and were negatively impacted by approximately 580 basis points due to recent generic introductions, while front-end same store sales increased 6.5%.
For the third quarter, CVS Caremark opened 37 new stores, closed 8 stores and one mail order pharmacy and relocated 41 others. As of September 29, 2007 the Company operated 6,206 retail pharmacy stores, 53 specialty pharmacy stores, 22 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 (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 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 June 30, 2007.