Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q3 FY2020 Earnings Presentation
15 slides from Cardinal Health's earnings presentation, May 11, 2020
Slide 1: Q3 FY20 Cardinal Health, Inc. Earnings Call
Q3 FY20 CARDINAL HEALTH, INC. EARNINGS CALL MAY 11, 2020
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: Q3 results
Q3 results 3
Slide 4: Q3 FY20 financial summary
Q3 FY20 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q3 FY20 Q3 FY20 Revenue $39,157 N/A % change 11% Gross Margin $1,885 $1,884 % change 7% 7% SG&A $1,165 $1,165 % change 6% 6% Operating Earnings $562 $719 % change 30% 8% Interest & Other 1 $79 N/A % change 28% Net Earnings 2 $350 $474 % c
Slide 5: Q3 FY20 Pharmaceutical segment results
Q3 FY20 Pharmaceutical segment results Q3 FY20 ($M) Q3 FY19 ($M) YoY change Revenue $35,112 $31,361 12% Segment profit $534 $536 0% Segment profit margin 1.52% 1.71% -19 bps Drivers: Revenue + Pharmaceutical Distribution1 + Specialty Solutions Segment profit + Generics program - Pharmaceutical Distr
Slide 6: Q3 FY20 Medical segment results
Q3 FY20 Medical segment results Q3 FY20 ($M) Q3 FY19 ($M) YoY change Revenue $4,051 $3,871 5% Segment profit $178 $155 15% Segment profit margin 4.39% 4.01% 38 bps Drivers: Revenue + Products and distribution + Cardinal Health at Home Segment profit + Products and distribution, including benefits fr
Slide 7: FY20 outlook
FY20 outlook 7
Slide 8: FY20 financial expectations
FY20 financial expectations FY20 outlook FY19 actual Non-GAAP EPS $5.20 - $5.40 $5.28 Interest and other $260M - $280M $309M Non-GAAP ETR 24.0% - 26.0% 22.1% Diluted weighted average 293M - 296M 301M shares outstanding Incremental cost savings >$130M $133M Capital expenditures $320M - $360M $328M Th
Slide 9: FY20 segment outlook
FY20 segment outlook Segment Revenue Profit Mid-single digit Mid-single digit Pharmaceutical percentage decline percentage growth Previously low-single digit percentage decline Low-single digit Low-double digit Medical percentage growth percentage growth Bold indicates updates to the FY20 segment ou
Slide 10: Q3 FY20 GAAP to Non-GAAP Reconciliation Statements and Supplemental Financial Information
Q3 FY20 GAAP TO NON-GAAP RECONCILIATION STATEMENTS AND SUPPLEMENTAL FINANCIAL INFORMATION 10
Slide 11: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Gross Operating Earnings/ Net Diluted Margin SG&A 2 Earnings Before Provision for Earnings3 Effective EPS3 Gross Growth Growth Operating Growth Income Income Net Growth Tax Diluted Growth Margin Rate SG&A 2 Rate Earnings Rate Tax
Slide 12: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries 1 GAAP / Non-GAAP Reconciliation Operating Earnings Provision for/ Earnings Before (Benefit From) Net Effective Diluted 2 Operating Growth Income Income Net Earnings Tax Diluted EPS2 2 2 Earnings Rate Taxes Taxes Earnings Growth Rate Rate EPS Growth Rate (in mi
Slide 13: Segment Information
Cardinal Health, Inc. and Subsidiaries Segment Information Third Quarter (in millions) 2020 2019 (in millions) 2020 2019 Pharmaceutical Medical Revenue Revenue Amount $ 35,112 $ 31,361 Amount $ 4,051 $ 3,871 Grow th rate 12 % 6% Grow th rate 5% (1)% Segment profit Segment profit Amount $ 534 $ 536 A
Slide 14: 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-GAAP metrics. The Company does not provide outlook on a GAAP basis because the items that the Company excludes from GAAP to calculate the comparable non-GAAP me
Slide 15: Definitions
Cardinal Health, Inc. and Subsidiaries Definitions Growth rate calculation: growth rates are determined by dividing the difference between current-period results and prior-period results by prior-period results. Interest and Other, net: other (income)/expense, net plus interest expense, net. Segment