Cardinal Health Inc CAH
Q4 2011 Earnings Call Transcript

Transcript Call Date 08/04/2011

Operator: Good day, ladies and gentlemen, and welcome to the Fourth Quarter and Full Year 2011 Cardinal Health Earnings Conference Call. My name is Tania, and I will be your conference moderator for today. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. As a reminder, this conference is being recorded for replay purposes.

I would now like to hand the presentation over to Sally Curley, SVP of Investor Relations. Please proceed.

Sally J. Curley - SVP, IR: Thank you, Tania, and welcome to Cardinal Health's fourth quarter fiscal 2011 conference call today. We will be making forward-looking statements. The matters addressed in these statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer to the SEC filings and the forward-looking statement slide at the beginning of the presentation which can be found on the Investor page of our website for a description of risks and uncertainties.

In addition, we will reference non-GAAP financial measures. Information about these measures is included at the end of the slides.

Before I turn the call over to Chairman and CEO, George Barrett, I'd like to remind you of a few upcoming investment conferences and events in which we will be webcasting. Notably, the Robert W. Baird 2011 Healthcare Conference on September 7th at 10.30 a.m. Eastern in New York and the Stifel Nicolaus Healthcare Conference on September 8th at 9.00 a.m. Eastern in Boston.

The details of these events are or will be posted on our IR section of the website. So please make sure to visit the site often for updated information. We look forward to seeing some of you at these events.

Now, I'd like to turn the call over to George.

George S. Barrett - Chairman and CEO: Thanks, Sally. Good morning, everyone, and thanks for joining us for our fourth quarter and year end call. Our fiscal 2011 was an important year for us, a year of outstanding accomplishments, exceeding all of our key company financial goals, and making great strides on both operational and strategic level. We continue to strengthen our core businesses, build new capabilities to accelerate growth and take strategic action to position us for the strong, medium and long-term.

I'll begin with the few numbers. Revenue for the fourth quarter was up 9% to $27 billion, and non-GAAP EPS was $0.59, an increase of 18% over the prior year period. Full year revenue was up 4% to $103 billion, and we ended fiscal 2011 with the non-GAAP EPS of $2.67, an increase of 20%.

Our organization did an excellent job managing working capital, generating $1.4 billion in cash from operations, while maintaining – remaining committed to returning significant value to our shareholders through a differentiated dividend payout, share repurchases, and maintaining a strong balance sheet.

Now, let me provide some color on each segment's performance in the fourth quarter, and then I'll return to some discussion on our full year results. Our Pharma segment had an exceptional quarter. Revenue increased by approximately 10% and segment profit increased by 30% versus the prior year quarter, including the contribution from Kinray and Yong Yu. Both of these acquisitions performed very well and their integration into Cardinal Health has progressed seamlessly. Strong performance in our generic programs was the key driver in the fourth quarter.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.