Actionable news
0
All posts from Actionable news
Actionable news in ESRX: Express Scripts Holding Company,

Express Scripts Holding: Ben Bier, Vice President, Investor Relations

The following excerpt is from the company's SEC filing.

(314) 810-3115

investor.relations@express-scripts.com

Express Scripts Announces 3rd Quarter Results; Increases 2015 Guidance Range

ST. LOUIS, October 27, 2015

Express Scripts Holding Company (Nasdaq: ESRX) announced 2015 third quarter net income attributable to Express Scripts stockholders of $661.7 million, or $0.97 per diluted share. Adjusted earnings per diluted share, as detailed in Table 4, were $1.45 for the third quarter.

With the rising cost of prescription drugs, we are continuing our mission to make medicine more affordable and accessible for clients and patients, said George Paz, Chairman and CEO. Our innovative solutions, focused scale, specialized care and unmatched leadership manages cost more favorably for payers while improving health outcomes of our patients. Effective pharmacy benefit management has never been more critical to ensuring a cost-effective healthcare system in our country, and Express Scripts uniquely delivers.

We are confident in the upper range of our expected retention rate, a reflection of the trust clients have in Express Scripts, said Tim Wentworth, President. Our core capabilities are differentiated and are in greater demand in the marketplace. Accredo, our specialty pharmacy, is one of our leading differentiators providing the best, most convenient care for patients with complex diseases. Our pharma services organization continues to provide differentiated value to manufacturers who want to bring innovative drugs to market in the safest way possible. It is clear that our unique collection of cost-saving solutions and our business model of client alignment position us well for continued growth.

Third Quarter 2015 Review

The following compares third quarter 2015 and 2014 operating results:

Adjusted claims of 328.3 million, flat See Table 1

Adjusted EBITDA of $1,808.3 million, up 4% See Table 3

Adjusted EBITDA per adjusted claim of $5.51, up 4% See Table 3

GAAP net income of $661.7 million, up 14%

Adjusted net income of $989.8 million, up 3% See Tables 5 and 5A

GAAP diluted earnings per share of $0.97, up 24%

Adjusted diluted earnings per share of $1.45, up 12% - See Table 4

Net cash flow provided by operating activities of $793.0 million, up 82%

All net income, earnings per share, adjusted EBITDA, adjusted EBITDA per adjusted claim, adjusted net income and adjusted earnings per share amounts are presented as attributable to Express Scripts, excluding non-controlling interest representing the share allocated to members of our consolidated affiliates.

The Company raised and narrowed its adjusted diluted earnings per share guidance from a range of $5.46 to $5.54 to a range of $5.51 to $5.55, which represents growth of 13% to 14% over 2014. Additional details on this guidance can be found in Table 6 including items excluded from the range.

The Company expects the following for the fourth quarter of 2015:

Estimated Quarter Ending

December 31, 2015

Year Over Year Change

333 million to 353 million

(1%) to 5%

$1.54 to $1.58

11% to 14%

2016 Business Outlook

The Company is increasing its retention rate for the 2015 selling season from a range of 95% - 97% to a range of 96% - 97% (excluding Coventry). Although 2016 claims volume will be determined by retention rate, organic growth and new sales, the Companys current estimate for 2016 adjusted claims remains unchanged in the range of 1,255 million to 1,295 million.

About Express Scripts

Express Scripts puts medicine within reach of tens of millions of people by aligning with plan sponsors, taking bold action and delivering patient-centered care to make better health more affordable and accessible.

Headquartered in St. Louis, Express Scripts provides integrated pharmacy benefit management services, including network-pharmacy claims processing, home delivery pharmacy care, specialty pharmacy care, specialty benefit management, benefit-design consultation, drug utilization review, formulary management, and medical and drug data analysis services. Express Scripts also distributes a full range of biopharmaceutical products and provides extensive cost-management and patient-care services.

For more information, visit

Lab.Express-Scripts.com

or follow

@ExpressScripts

on Twitter.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements, including, but not limited to, our 2015 guidance and our statements related to the Companys plans, objectives, expectations (financial and otherwise) or intentions. Actual results may differ materially from those projected or suggested in any forward-looking statements. Factors that may impact these forward-looking statements can be found in Part I, Item 2 Managements Discussion and Analysis of Financial Condition and Results of Operations in the Companys Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on October 27, 2015, and Item 1A Risk Factors in the Companys Annual Report on Form 10-K filed with the SEC on February 23, 2015. A copy of these documents can be found at the Investor Information section of Express Scripts web site at

http://www.express-scripts.com/corporate.

We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

EXPRESS SCRIPTS HOLDING COMPANY

Unaudited Consolidated Statement of Operations

Three Months Ended

September 30,

Nine Months Ended

(in millions, except per share data)

Revenues

25,222.6

25,778.5

75,576.4

74,574.5

Cost of revenues

23,049.1

23,705.5

69,437.7

68,743.4

Gross profit

2,173.5

2,073.0

6,138.7

5,831.1

Selling, general and administrative

1,007.3

1,088.6

3,013.2

3,171.5

Operating income

1,166.2

3,125.5

2,659.6

Other (expense) income:

Interest income and other

Interest expense and other

(128.4

(201.6

(377.1

(460.8

(120.6

(186.1

(358.0

(423.9

Income before income taxes

1,045.6

2,767.5

2,235.7

Provision for income taxes

1,046.9

Net income

1,720.6

1,446.3

Less: Net income attributable to non-controlling interest

Net income attributable to Express Scripts

1,702.9

1,425.8

Weighted-average number of common shares outstanding during the period:

Diluted

Earnings per share:

Includes retail pharmacy co-payments of $2,161.5 million and $2,418.3 million for the three months ended September 30, 2015 and 2014, respectively, and $7,118.2 million and $7,894.7 million for the nine months ended September 30, 2015 and 2014, respectively.

Unaudited Consolidated Balance Sheet

(in millions)

Assets

Current assets:

Cash and cash equivalents

1,832.6

Receivables, net

7,391.1

5,979.8

Inventories

1,730.4

2,113.2

Deferred taxes

Prepaid expenses and other current assets

Total current assets

10,274.4

10,568.1

Property and equipment, net

1,343.1

1,584.0

Goodwill

29,277.9

29,280.9

Other intangible assets, net

10,961.5

12,255.2

Other assets

Total assets

51,996.5

53,798.9

Liabilities and stockholders equity

Current liabilities:

Claims and rebates payable

8,738.6

8,488.2

Accounts payable

3,273.0

3,137.3

Accrued expenses

2,353.0

2,836.1

Current maturities of long-term debt

1,649.2

2,555.3

Total...


More