StreetInsider.com  Oct 15  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/CVS+Caremark+%28CVS%29+Enters+Settlement+with+DoJ+Over+Longs+Drug+Stores+Acquisition/7793727.html for the full story.
Navivest Stocks and Options Blog  Sep 13  Comment 
Walgreens (WAG) on Friday evening, offered $3 billion or $75 per share, including the assumption of roughly $200 million in debt, for all the shares of Longs Drugs Stores (LDG). This is an all cash offer. The offer counters a $71.50 bid that...
Net Lease News  Aug 16  Comment 
The Modesto Bee - August 13, 2008 Longs Drug Stores, a regional drugstore chain based in Walnut Creek, is being acquired by industry giant CVS Caremark Corp., based in Woonsocket, R.I.The $2.9 billion acquisition will make CVS Caremark the largest...
Navivest Stocks and Options Blog  Aug 12  Comment 
CVS Caremark (CVS) announced on Tuesday 08/12/08, that it will be acquiring Longs Drug Stores (LDG). Longs (LDG) has about 490 stores in the western United States and Hawaii. The deal is valued at $71.50 all cash per share, or $2.9 billion,...
Jutia Group  Jul 3  Comment 
The portfolio continues to do well, although we did need to liquidate a few positions (LDG, MRK, MINI, OMNI). The good news is that three out of the four were sold for nice profits.DNR continues to stand out among the pack, extending gains out to...
Jutia Group  May 31  Comment 
The Jutia Portfolio has done quite well over the past month or so. Holders of IP, LDG, MRK, and DNR should be quite satisfied with their gains of 8.39%, 26.70%, 19.12%, and 9.49% respectively. These are great returns, especially since the first...
Jutia Group  Apr 15  Comment 
Although there have not been many momentum plays to promote, we have found success with Merck (MRK) and Denbury (DNR). Although this does not provide for maximum diversification it does enable the portfolio to have quality plays with reduced risk...
Jutia Group  Feb 8  Comment 
The Company operates in two business segments: retail drug stores and, through its RxAmerica subsidiary, pharmacy benefit services. Through its retail drug store segment, the Company is recognized retail drug store chains on the West Coast of the...




 
TOP CONTRIBUTORS


Long's Drug Store

Acquisition

Longs Drug Stores was acquired in 2008 by CVS Caremark Corporation (CVS).

Company Overview

Longs Drug Stores operated 510 Retail Drug Stores in California, Nevada, Washington, and Hawaii as of July 10, 2008[1]. In addition, LDG also provides pharmacy benefit management (PBM) service and medicare beneficiary prescription drug plans under the name RxAmerica. LDG's revenues increased to $1.41 billion for the quarter ended May 1st, up from $1.30 billion the previous year, a change of $110 million, or 8.5%

Error creating thumbnail
LDG Revenues and Operating Income[2]
Error creating thumbnail
Revenue Distribution by Segment‎[3]

Retail Drug Stores (93% of Revenues)

The retail drug stores generated $4.9 billion in the fiscal year ending January 31, 2008. The sources of revenues within this segment come from front-end products and from pharmacy products. LDG sells a wide-selection of nationally-advertised brand name and private brand merchandise, these items comprise LDGs front end sales; included in this category are over-the-counter medication, health and beauty products, photographs and photo processing, sporting goods, automotive-related products, abd health and beauty items. The pramacy product revenues come from the sale of pharmacueticals.

Error creating thumbnail
Sales Distribution in Retail Pharmacy Segment[4]
Stores as of... January 31, 2008 January 25, 2007 January 26, 2006
California 447 437 402
Hawaii 37 32 31
Nevada 24 17 17
Arizona 0 12 15
Washington 0 12 15
Colorado 0 9 9
Oregon 0 2 2
Total 510 509 479

Pharmacy Benefits Services; Operating under RxAmerica (7% of Revenues)

Long's also operates a Pharmacy Benefits Services under the name RxAmerica. While it accounts for less than 10% of LDG's revenues, it is important because it diversifies their business both in terms of geography and industry. RxAmerica provided prescription drug plans to about 450,000 people in the previous fiscal year in all states and the District of Columbia. The RxAmerica segment has grown rapidly from the previous year due to a growth in the existing client base and he ith revenues increasing 73.9% from 2007. new clients.[5] [image:Revenue_PBS.bmp|thumb|350px||right|100|Revenue Distribution in RxAmerica Segment[6]]]

Trends and Forces

Competition

The retail drug industry in which LDG operates is highly competitive. LDG competes with both local drug stores, national chains, on-line retailers, supermarkets, and mass merchandisers.


CVS (CVS)

Rite Aid (RAD)

Walgreen Company (WAG)

$, in thousands Stores in Arizona, California, Hawaii and Nevada Total Revenues 2006 Operating Income 2007 Operating Income 2006 Network Revenues 2007 Network Revenues 2006 Home Delivery Revenues 2007 Home Delivery Revenues 2006 Total PBM Claims 2007 Total PBM Claims 2006
Longs Drug Stores 510
Walgreens 773
CVS CareMark
RiteAid (RAD) 612


You may also be interested in articles related to Longs Drug Stores (LDG):




References

  1. LDG Earnings Release
  2. LDG Form 10-K 2007
  3. LDG Form 10-K 2007
  4. LDG Form 10-K 2007
  5. LDG Form 10-K 2007
  6. LDG Form 10-K 2007
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki