In millions, except per share amounts |
09.30.18 |
09.30.17 |
+/- Variance |
Net revenues
|
$47,269.6
|
$46,181.4
|
0.023564076
|
Cost of revenues (1) (3)
|
39,941.5
|
39,063.4
|
-0.022479548
|
Gross profit (3)
|
7,328.1
|
7,118.0
|
0.029515955
|
Operating expenses (2) (3)
|
4,974.5
|
4,618.9
|
-0.077004822
|
Operating profit
|
$2,353.6
|
$2,499.1
|
-0.058252186
|
Interest expense, net (4)
|
452.9
|
245.1
|
-0.848213957
|
Other expenses (7)
|
1.2
|
192.5
|
99%
|
Income before income tax provision
|
1,899.5
|
2,061.5
|
-0.078619104
|
Income tax provision (5)
|
-509.1
|
-777.2
|
0.345010156
|
Discontinued operations
|
0.1
|
0.6
|
0.862248998
|
Net income
|
1,390.5
|
1,285.0
|
0.082114335
|
Net income attributable to noncontrolling interest
|
-0.2
|
-0.1
|
NM
|
Net income attributable to CVS Health
|
1,390.3
|
1,284.9
|
0.08203134
|
Earnings allocated to participating securities
|
1.6
|
2.9
|
0.440334037
|
Income available for common shareholders
|
$1,388.6
|
$1,282.0
|
0.083232295
|
Weighted average diluted common shares outstanding (6)
|
1,022.1
|
1,020.2
|
-0.001841499
|
GAAP diluted earnings per share from continuing ops
|
$1.36
|
$1.26
|
0.081710337
|
Depreciation & Amortization
|
620.1
|
614.7
|
0.00892888
|
EBITDA
|
$2,972.5
|
$2,921.26
|
0.01755545
|
Totals may not foot due to rounding.
(1)Includes $2 million and $7 million of acquisition-related integration costs in the three and nine months ended September 30, 2017, related to the acquisition of Omnicare.
(2)Includes $70 million and $152 million of acquisition-related transaction and integration costs during the three and nine months ended September 30, 2018, respectively. Includes $4 million and $24 million of acquisition-related integration costs during the three and nine months ended September 30, 2017, respectively. In 2018, transaction and integration costs relate to the proposed acquisition of Aetna and the acquisition of Omnicare. In 2017, integration costs relate to the acquisition of Omnicare. Includes $3.9 billion and $135 million of goodwill impairment charges in the nine months ended September 30, 2018 and 2017, respectively. In 2018, the charge relates to the LTC reporting unit and in 2017 the charge relates to the RxCrossroads reporting unit both within the Retail/LTC Segment. Includes $86 million of pre-tax loss in the nine months ended September 30, 2018 on the sale of the RxCrossroads subsidiary for $725 million in January 2018. Includes $6 million and $211 million of charges primarily for noncancelable lease obligations associated with stores closed in connection with our enterprise streamlining initiative during the three and nine months ended September 30, 2017, respectively.
(3)Amounts revised to reflect a change to the company's cost allocation methodology effective January 1, 2018.
(4)The three and nine months ended September 30, 2018 include $2 million and $171 million, respectively, of bridge financing costs, plus $434 million and $979 million, respectively, of interest expense on the $40 billion of senior notes issued on March 9, 2018 and the $5 billion term loan facility, less related interest income of $209 million and $453 million, respectively, earned on the proceeds of the 2018 senior notes.
(5)The income tax provision for the three and nine months ended September 30, 2018 and 2017, include the effects of the items described in footnotes 1 through 4.
(6)There were 2 million of potential common shares in the nine months ended September 30, 2018 that were excluded from the calculation of GAAP loss per share, as the shares would have had an anti-dilutive effect as a result of the GAAP loss incurred.
(7)Includes $187 million of losses on settlements of defined benefit pension plans in the three and nine months ended September 30, 2017.
In millions, except per share amounts |
09.30.18 |
09.30.17 |
+/- Variance |
Net revenues |
$47,269.6 |
$46,181.4 |
2.4% |
Cost of revenues (1) (3) |
39,941.5 |
39,061.6 |
-2.3% |
Gross profit (3) |
7,328.1 |
7,119.8 |
2.9% |
Operating expenses (2) (3) |
$4,904.4 |
$4,608.8 |
-6.4% |
Operating profit |
$2,423.7 |
$2,511.0 |
-3.5% |
Interest expense, net (4)
|
225.5
|
245.1
|
8.0%
|
Other expenses
|
1.2
|
5.2
|
77.6%
|
Income before income tax provision
|
2,197.1
|
2,260.7
|
-2.8%
|
Amortization
|
214.9
|
205.3
|
4.7%
|
Adjusted net income before income tax provision
|
2,412.0
|
2,466.1
|
-2.2%
|
Adjusted income tax provision (5)
|
641.6
|
934.6
|
31.4%
|
Adjusted net income
|
1,770.4
|
1,531.4
|
15.6%
|
Earnings allocated to participating securities
|
-2.0
|
-3.4 |
40.1%
|
Net income attributable to noncontrolling interest
|
-0.2
|
-0.1
|
NM
|
Adjusted net income attributable to CVS Health
|
1,768.2
|
1,528.0
|
15.7%
|
Weighted average diluted common shares outstanding (6)
|
1,022.1
|
1,020.2
|
-0.2%
|
Adjusted EPS from continuing operations
|
$1.73
|
$1.50
|
15.5%
|
Depreciation & Amortization
|
620.1
|
614.3
|
1.0%
|
EBITDA
|
$3,042.7
|
$3,120.1
|
-2.5%
|
Totals may not foot due to rounding.
(1)Excludes $2 million and $7 million of acquisition-related integration costs during the three and nine months ended September 30, 2017, related to the acquisition of Omnicare.
(2)Excludes $70 million and $152 million of acquisition-related transaction and integration costs during the three and nine months ended September 30, 2018, respectively. Excludes $4 million and $24 million of acquisition-related integration costs during the three and nine months ended September 30, 2017, respectively. In 2018, transaction and integration costs relate to the proposed acquisition of Aetna and the acquisition of Omnicare. In 2017, integration costs relate to the acquisition of Omnicare. Excludes $3.9 billion and $135 million of goodwill impairment charges in both the three and nine months ended September 30, 2018 and 2017, respectively. In 2018, the charge relates to the LTC reporting unit and in 2017 the charge relates to the RxCrossroads reporting unit both within the Retail/LTC Segment. Excludes $86 million of pre-tax loss in the nine months ended September 30, 2018 on the sale of the RxCrossroads subsidiary for $725 million. Excludes $6 million and $211 million of charges primarily for noncancelable lease obligations associated with stores closed in connection with our enterprise streamlining initiative during the three and nine months ended September 30, 2017, respectively.
(3)Amounts revised to reflect a change to the company's cost allocation methodology effective January 1, 2018.
(4)The three and nine months ended September 30, 2018 exclude $2 million and $171 million, respectively, of bridge financing costs, plus $434 million and $979 million, respectively, of interest expense on the $40 billion of senior notes issued on March 9, 2018 and the $5 billion term loan facility, less related interest income of $209 million and $453 million, respectively, earned on the proceeds of the 2018 senior notes.
(5)The income tax provision for the three and nine months ended September 30, 2018 and 2017, include the effects of the items described in footnotes 1 through 4.
(6)Adjusted earnings per share for the nine months ended September 30, 2018 is calculated utilizing weighted average diluted shares outstanding, which include 2 million of potential common shares, as the impact of the potential common shares was dilutive. The potential common shares were excluded from the calculation of GAAP loss per share for the nine months ended September 30, 2018, as the shares would have had an anti-dilutive effect as a result of the GAAP loss incurred.
(7) Excludes $187 million of losses on the settlements of defined benefit pension plans in the three and nine months ended September 30, 2017.
(In millions) |
09.30.18 |
09.30.17 |
+/- Variance |
Net revenues |
$20,856.6 |
$19,593.4 |
6.4% |
Cost of revenues (1) (2) |
15,042.5 |
13,904.1 |
-8.2% |
Gross profit (2) |
5,814.1 |
5,689.4 |
2.2% |
Operating expenses (2) (3) |
4,323.2 |
4,108.5 |
-5.2% |
Operating profit (loss) (2) |
$1,490.9 |
$1,580.9 |
-5.7% |
Same-store increase (decrease) (4): |
|
|
|
Total sales |
6.7% |
-3.2% |
990 bps |
Pharmacy sales |
8.7% |
-3.4% |
1210 bps |
Front store sales |
0.8% |
-2.8% |
360 bps |
Total prescription volume |
3.2% |
-3.0% |
620 bps |
Total adjusted prescription volume (5) |
9.2% |
0.3% |
890 bps |
Net revenues increase (decrease): |
|
|
|
Total |
6.4% |
-2.7% |
917 bps |
Pharmacy revenues |
16,123.3 |
14,867.8 |
8% |
Pharmacy |
8.4% |
-2.9% |
1137 bps |
FS revenues |
4,557.0 |
4,469.6 |
2.0% |
Front store |
2.0% |
-2.1% |
404 bps |
Generic dispensing rate (5) |
87.3% |
87.2% |
11 bps |
Rx % of net revenues |
77.3% |
75.9% |
142 bps |
FS % of net revenues |
21.8% |
22.8% |
(96) bps |
Retail/LTC prescriptions filled |
241.9 |
234.2 |
3.3% |
Adjusted retail/LTC prescriptions filled (5) |
331.2 |
304.0 |
8.9% |
(In millions) |
09.30.18 |
09.30.17 |
+/- Variance |
Net revenues |
$20,856.6 |
$19,593.4 |
6.4% |
Cost of revenues (1) (2) |
15,042.5 |
13,902.2 |
-8.2% |
Gross profit (2) |
5,814.1 |
5,691.2 |
2.2% |
Operating expenses (2) (3) |
4,318.8 |
4,095.6 |
-5.5% |
Operating profit (2) |
$1,495.3 |
$1,595.6 |
-6.3% |
Other expense |
$0.0 |
($4.0) |
-100.0% |
Depreciation and amortization |
415.0 |
408.1 |
1.7% |
EBITDA |
$1,910.2 |
$1,999.7 |
-4.5% |
Same-store increase (decrease) (4): |
|
|
|
Total sales |
6.7% |
-3.2% |
990 bps |
Pharmacy sales |
8.7% |
-3.4% |
1210 bps |
Front store sales |
0.8% |
-2.8% |
360 bps |
Total prescription volume |
3.2% |
-3.0% |
620 bps |
Total adjusted prescription volume (5) |
9.2% |
0.3% |
890 bps |
Net revenues increase (decrease): |
|
|
|
Total |
6.4% |
-2.7% |
917 bps |
Pharmacy revenues |
16,123.3 |
14,867.8 |
8.4% |
Pharmacy |
8.4% |
-2.9% |
1137 bps |
FS revenues |
4,557.0 |
4,469.6 |
2.0% |
Front store |
2.0% |
-2.1% |
404 bps |
Generic dispensing rate (5) |
87.3% |
87.2% |
11 bps |
Rx % of net revenues |
77.3% |
75.9% |
142 bps |
FS % of net revenues |
21.8% |
22.8% |
(96) bps |
Retail/LTC prescriptions filled |
241.9 |
234.2 |
3.3% |
Adjusted retail/LTC prescriptions filled (5) |
331.2 |
304.0 |
8.9% |
Totals may not foot due to rounding.
(1)Excludes $2 million and $7 million of acquisition-related integration costs during the three and nine months ended September 30, 2017, related to the acquisition of Omnicare.
(2)Amounts revised to reflect a change to the company's cost allocation methodology effective January 1, 2018.
(3)Excludes $4 million and $7 million of acquisition-related integration costs during the three and nine months ended September 30, 2018, respectively, related to the acquisition of Omnicare. Excludes $7 million and $27 million of acquisition-related integration costs during the three and nine months ended September 30, 2017, respectively, related to the acquisition of Omnicare. Excludes $3.9 billion and $135 million of goodwill impairment charges in the nine months ended September 30, 2018 and 2017, respectively. In 2018, the charge relates to the LTC reporting unit and in 2017 the charge relates to the RxCrossroads reporting unit both within the Retail/LTC Segment. Excludes $86 million of pre-tax loss in the nine months ended September 30, 2018 on the sale of the RxCrossroads subsidiary for $725 million. Excludes $6 million and $211 million of charges primarily for noncancelable lease obligations associated with stores closed in connection with our enterprise streamlining initiative during the three and nine months ended September 30, 2017, respectively.
(4)Same store sales and prescriptions exclude revenues from MinuteClinic®, and revenue and prescriptions from stores in Brazil, LTC operations and, in 2017, from commercialization services provided through RxCrossroads.
(5)Includes the adjustment to convert 90-day non-specialty prescriptions to the equivalent of three 30-day prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal 30-day prescription.
(In millions) |
09.30.18 |
09.30.17 |
+/- Variance |
Net revenues |
$33,763.0 |
$32,895.8 |
2.6% |
Cost of revenues (1) |
32,025.5 |
31,263.9 |
-2.4% |
Gross profit (1) |
1,737.5 |
1,631.9 |
6.5% |
Operating expenses (1) |
392.5 |
305.2 |
-28.6% |
|
|
|
|
Operating profit (1) |
$1,345.0 |
$1,326.7 |
1.4% |
Net revenues: |
|
|
|
Mail choice |
11,811.2 |
11,589.8 |
1.9% |
Pharmacy network (2) |
21,183.2 |
20,519.2 |
3.2% |
Other (2) |
768.6 |
786.8 |
-2.3% |
Pharmacy claims processed (3): |
|
|
|
Total adjusted claims |
466.3 |
441.1 |
5.7% |
Adjusted mail choice |
71.8 |
66.9 |
7.4% |
Adjusted pharmacy network |
394.5 |
374.2 |
5.4% |
Generic dispensing rate (3): |
|
|
|
Total |
87.2% |
87.0% |
19 bps |
Mail Choice |
83.9% |
83.3% |
64 bps |
Pharmacy network |
87.8% |
87.7% |
8 bps |
Mail choice penetration rate (3) |
15.4% |
15.2% |
23 bps |
Totals may not foot due to rounding.
(1)Amounts revised to reflect a change to the company's cost allocation methodology effective January 1, 2018.
(2)Amounts revised for the three and nine months ended September 30, 2017, to reflect the reclassification of Medicare Part D premium revenues from pharmacy network revenues to other revenues.
(3)Includes the adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal prescription.
(In millions) |
09.30.18 |
09.30.17 |
+/- Variance |
Net revenues |
$33,763.0 |
$32,895.8 |
2.6% |
Cost of revenues (1) |
32,025.5 |
31,263.9 |
-2.4% |
Gross profit (1) |
1,737.5 |
1,631.9 |
6.5% |
Operating expenses (1) |
392.5 |
305.2 |
-28.6% |
Operating profit (1) |
$1,345.0 |
$1,326.7 |
1.4% |
Other expense |
$0.0 |
($1.0) |
NM |
Depreciation and amortization |
170.8 |
175.5 |
-2.6% |
EBITDA |
1,515.8 |
1,501.2 |
1.0% |
Net revenues: |
|
|
|
Mail choice |
11,811.2 |
11,589.8 |
1.9% |
Pharmacy network (2) |
21,183.2 |
20,519.2 |
3.2% |
Other (2) |
768.6 |
786.8 |
-2.3% |
Pharmacy claims processed (3): |
|
|
|
Total adjusted claims |
466.3 |
441.1 |
5.7% |
Adjusted mail choice |
71.8 |
66.9 |
7.4% |
Adjusted pharmacy network |
394.5 |
374.2 |
5.4% |
Generic dispensing rate (3): |
|
|
|
Total |
87.2% |
87.0% |
19 bps |
Mail Choice |
83.9% |
83.3% |
64 bps |
Pharmacy network
| 87.8% |
87.7% |
8 bps |
Mail choice penetration rate (3) |
15.4% |
15.2% |
23 bps |
Totals may not foot due to rounding.
(1)Amounts revised to reflect the a change to the company's cost allocation methodology effective January 1, 2018.
(2)Amounts revised for the three and nine months ended September 30, 2017, to reflect the reclassification of Medicare Part D premium revenues from pharmacy network revenues to other revenues.
(3)Includes the adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal prescription.
In millions |
09.30.18 |
09.30.17 |
+/- Variance |
Net revenues |
– |
– |
N/A |
Cost of revenues |
– |
– |
N/A |
Gross profit |
– |
– |
N/A |
Operating expenses (1) (2) |
286.0 |
222.1 |
-28.8% |
Operating loss (1) (2) |
($286.0) |
($222.1) |
-28.8% |
Totals may not foot due to rounding.
(1)Amounts revised to reflect a change to the company's cost allocation methodology effective January 1, 2018.
(2) Includes $66 million and $145 million of acquisition-related transaction and integration costs for the three and nine months ended September 30, 2018, respectively, related to the proposed acquisition of Aetna.
In millions |
09.30.18 |
09.30.17 |
+/- Variance |
Net revenues |
– |
– |
N/A |
Cost of revenues |
– |
– |
N/A |
Gross profit |
– |
– |
N/A |
Operating expenses (1) (2) |
220.2 |
225.0 |
2.1% |
Operating profit (1) (2) |
($220.2) |
($225.0) |
2.1% |
Other expense (3) |
(1.2) |
$0.0 |
N/A |
Depreciation and amortization |
34.3 |
30.7 |
11.5% |
EBITDA |
($187.1) |
($194.2) |
3.7% |
Totals may not foot due to rounding.
(1)Amounts revised to reflect a change to the company's cost allocation methodology effective January 1, 2018.
(2)Excludes $66 million and $145 million of acquisition-related transaction and integration costs for the three and nine months ended September 30, 2018, respectively, related to the proposed acquisition of Aetna.
(3)Excludes $187 million of losses on the settlements of defined benefit pension plans in the three and nine months ended September 30, 2017.
In millions |
09.30.18 |
09.30.17 |
+/- Variance |
Net revenues |
($7,349.9) |
($6,307.8) |
-16.5% |
Cost of revenues |
-7,126.5 |
-6,104.6 |
16.7% |
Gross profit |
-223.5 |
-203.3 |
-9.9% |
Operating expenses |
-27.1 |
-16.9 |
-60.5% |
Operating profit |
($196.3) |
($186.4) |
-5.3% |
Totals may not foot due to rounding.