McKesson reports strong Q4, fiscal year 2012
SAN FRANCISCO — McKesson reported strong fourth-quarter and full-year results, thanks to gains across several of the company’s business segments.
Revenues for the fourth quarter ended March 31 were up 10% to $31.7 billion, compared with the year-ago period, while earnings per diluted share were $2.09, up from $1.62 in the same period last year. For fiscal year 2012, McKesson had revenues of $122.7 billion, up nearly 9.5% from fiscal year 2011. Full-year earnings per diluted share from continuing operations totaled $5.59, up 30% from the prior year.
Adjusted earnings per diluted share were $2.09 in the fourth quarter (up 17% compared with $1.78 a year ago), while full-year adjusted earnings per diluted share was $6.38 (up 20% compared with $5.31 in the prior year).
McKesson said its fourth-quarter and full-year gains were attributed to several factors, including the purchase of Katz Group, which was the company’s largest international acquisition to date. Canadian revenues were up 13% for the fourth quarter (including the unfavorable currency impact of 1%, Canadian revenues increased 12% for the quarter), while for the full year, Canadian revenues grew 3% on a constant currency basis. Including the favorable currency impact of 2%, Canadian revenues grew 5% for the full year.
"Our strong balance sheet and cash flow continue to provide us with opportunities to deploy capital to create value for our shareholders," Hammergren said. "Our acquisition of the Katz Group assets in our fiscal fourth quarter represents our largest international acquisition to date. The acquisition leverages the existing scale of our Canadian banner business and demonstrates our ongoing commitment to the health of the independent pharmacy. In addition, our continued strong cash flow allowed us to execute another accelerated share repurchase program in the fourth quarter. We plan to continue our portfolio approach to capital deployment with a mix of acquisitions, share repurchases, dividends, and internal investments."
Additional highlights included:
Distribution Solutions revenues were up 10% for the fourth quarter and 10% for the full year. U.S. pharmaceutical distribution revenues were up 10% for the fourth quarter, primarily reflecting new business with existing customers and market growth. For the full year, U.S. pharmaceutical distribution revenues also increased 10%, primarily reflecting market growth and the US Oncology acquisition;
Medical-Surgical distribution and services revenues were up 8% for the fourth quarter and 8% for the full year, primarily driven by market growth and new customers; and
Although Technology Solutions revenues were down 2% for the fourth quarter, revenues were up 4% for the full year. "I am pleased to see our Technology Solutions businesses working closely with our customers as they prepare for the requirements of Meaningful Use in the evolving landscape of healthcare IT regulation. We are committed to helping customers use IT strategically to enable better business, better care and better connectivity," Hammergren said.
Looking ahead, Hammergren said McKesson expects adjusted earnings per diluted share will be between $7.05 and $7.35 for fiscal year 2013.
Walmart expands conservation program
BENTONVILLE, Ark. — Walmart announced that its Acres for America program is conserving an additional 300 acres of land to protect and restore wildlife habitats in the heart of several U.S. cities.
In 2011, Walmart expanded its Acres for America investments to include urban conservation projects in Chicago, Los Angeles and Washington, D.C. The awards announced this week will support additional projects in Bridgeport, Conn.; Chicago; Portland, Ore.; San Diego and Washington, D.C.; and involve community volunteers in enhancing habitat quality in the wetland by restoring native vegetation, which will benefit fish and bird populations in the Tualatin River system.
"Walmart is proud to help protect and restore important natural habitats in communities that we serve," said Jennifer May-Brust, Walmart VP realty supplier management and compliance. "The Acres for America program exemplifies our commitment to sustainable development as it directly links our land use to land preservation. Our urban restoration projects often times involve volunteers, including our customers and associates, and provide a way for people to connect with and enjoy nature right in their backyard."
Ingles Markets sees growth in Q2, first half of fiscal 2012
ASHEVILLE, N.C. — Net sales for Ingles Markets experienced a spike during the second quarter and first half of fiscal year 2012, the retailer reported Monday.
For the second quarter ended March 24, Ingles Markets said net sales rose $11.3 million to $881.7 million, compared with the year-ago period, while net income dropped from $7.7 million in second quarter 2011 to $6.5 million in second quarter 2012. Excluding gasoline sales, comparable-store sales at Ingles Markets during the quarter decreased 0.1%, compared with the second quarter of the prior fiscal year.
For the first six months of fiscal 2012, net sales rose $56.8 million to $1.8 billion and net income increased 11.3% to $17.1 million, compared with the first six months of fiscal 2011. Excluding gasoline sales, where retail prices were significantly higher than the first half of fiscal year 2011, grocery segment comparable store sales increased 1.6%.
Commenting on the results, Ingles Markets CEO Robert Ingle II said the company remains "committed to providing value" to its customers and will continue to invest in improvements. He also said the company is slated to open a new distribution center next quarter, which will provide the chain with long-term benefits.
"We are pleased with our sales growth in the second quarter especially since last year’s second quarter included a lot of inclement weather that resulted in higher sales for the prior year," Ingle said. "Our grocery margins were stable compared with last year; however, our profitability was affected by lower gasoline margins compared with last year."