Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q1 FY2019 Earnings Presentation
16 slides from Cardinal Health's earnings presentation, Nov 8, 2018
Slide 1: Q1 FY19 Cardinal Health, Inc. Earnings Call
Q1 FY19 CARDINAL HEALTH, INC. EARNINGS CALL NOVEMBER 8, 2018 1
Slide 2: Forward-looking statements and GAAP reconciliation
Forward-looking statements and GAAP reconciliation Cautions Concerning Forward-Looking Statements This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be ident
Slide 3: Q1 results
Q1 results 3
Slide 4: Q1 FY19 financial summary
Q1 FY19 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q1 FY19 Q1 FY19 Revenue $35,213 N/A % change 8% Gross Margin $1,667 N/A % change 0% SG&A $1,155 $1,126 % change 9% 6% Operating Earnings $816 $542 % change 211% (11)% Interest & Other1 $80 N/A % change (4)% Net Earnings2 $593 $396 % chang
Slide 5: Q1 FY19 pharmaceutical segment results
Q1 FY19 pharmaceutical segment results Q1 FY19 ($M) Q1 FY18 ($M) YoY change Revenue $31,416 $28,920 9% Segment profit $409 $467 (12)% Segment profit margin 1.30% 1.61% -31 bps Drivers: Revenue + Pharmaceutical and Specialty distribution customers - Divestiture of company’s China distribution busines
Slide 6: Q1 FY19 medical segment results
Q1 FY19 medical segment results Q1 FY19 ($M) Q1 FY18 ($M) YoY change Revenue $3,801 $3,724 2% Segment profit $135 $129 5% Segment profit margin 3.55% 3.45% +10 bps Drivers: Revenue + New and existing customers Segment profit + Prior year comparison of Patient Recovery fair value step up of inventory
Slide 7: FY19 outlook
FY19 outlook 7
Slide 8: FY19 financial expectations
FY19 financial expectations FY19 outlook FY18 actual Low-single digit Revenue $136.8B percentage growth Non-GAAP EPS $4.90 to $5.15 $5.00 Non-GAAP ETR 25% - 28% 29.3% Diluted weighted average shares 302M – 307M 315M outstanding Interest and other $340M - $360M $352M Capital expenditures $360M - $390
Slide 9: FY19 segment outlook
FY19 segment outlook Segment Revenue Profit Low-single digit High-single to low-double Pharmaceutical percentage growth digit percentage decline Low-single digit Mid to high-single digit Medical percentage growth percentage growth 9 © 2018 Cardinal Health. All Rights Reserved.
Slide 10: Q1 FY19 trailing five quarters
Q1 FY19 trailing five quarters GAAP TO NON-GAAP RECONCILIATION STATEMENTS AND SUPPLEMENTAL FINANCIAL INFORMATION 10
Slide 11: Trailing five quarters segment analysis
Q1 FY19 trailing five quarters segment analysis Pharmaceutical segment Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Revenue 28,920 31,146 29,720 31,455 31,416 ($M) Segment Profit ($M) 467 514 596 416 409 Medical segment Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Revenue 3,724 4,044 3,916 3,898 3,801 ($M) Se
Slide 12: GAAP / Non-GAAP Reconciliation (First Quarter 2019)
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Gross Operating Earnings/(Loss) Provision for/ 2 Margin SG&A Operating Earnings Before (Benefit from) Net Net Effective Diluted 3 3 Gross Growth Growth Earnings/ Growth Income Income Earnings/ Earnings Tax Diluted EPS 2 3 3 Margi
Slide 13: GAAP / Non-GAAP Reconciliation (Fiscal Year 2018)
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Gross Operating Earnings/(Loss) Provision for/ Margin Operating Earnings Before (Benefit from) Net Net Effective Diluted 2 2 Gross Growth Earnings/ Growth Income Income Earnings/ Earnings Tax Diluted EPS 2 2 Margin Rate (Loss) Ra
Slide 14: Segment Information
Cardinal Health, Inc. and Subsidiaries Segment Information First Quarter First Quarter (in millions) 2019 2018 (in millions) 2019 2018 Pharmaceutical Medical Revenue Revenue Amount $ 31,416 $ 28,920 Amount $ 3,801 $ 3,724 Growth rate 9% 1% Growth rate 2% 14 % Segment profit Segment profit 1 Amount $
Slide 15: Forward Looking non-GAAP Measures
Cardinal Health, Inc. and Subsidiaries Forward Looking non-GAAP Measures In this document, the Company presents certain forward-looking non-GAAPmetrics. The Company does not provide outlook on a GAAPbasis because changes in the items that the Company excludes from GAAPto calculate the comparable non
Slide 16: Definitions
Cardinal Health, Inc. and Subsidiaries Definitions Interest and Other, net: other (income)/expense, net plus interest expense, net. Non-GAAP Diluted EPS attributable to Cardinal Health, Inc. or "Non-GAAP Diluted EPS" or "Non-GAAP Diluted Earnings Per Share": non-GAAP net earnings attributable to Car