Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q3 FY2019 Earnings Presentation
16 slides from Cardinal Health's earnings presentation, May 9, 2019
Slide 1: Q3 FY19 Cardinal Health, Inc. Earnings Call
Q3 FY19 CARDINAL HEALTH, INC. EARNINGS CALL MAY 9, 2019 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: Q3 results
Q3 results 3
Slide 4: Q3 FY19 financial summary
Q3 FY19 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q3 FY19 Q3 FY19 Revenue $35,228 N/A % change 5% Gross Margin $1,764 N/A % change (8)% SG&A $1,097 N/A % change (3)% Operating Earnings $432 $667 % change (21)% (15)% Interest & Other1 $62 N/A % change (24)% Net Earnings2 $296 $475 % chang
Slide 5: Q3 FY19 pharmaceutical segment results
Q3 FY19 pharmaceutical segment results Q3 FY19 ($M) Q3 FY18 ($M) YoY change Revenue $31,361 $29,720 6% Segment profit $536 $596 (10)% Segment profit margin 1.71% 2.00% -29 bps Drivers: Revenue + Pharmaceutical Distribution and Specialty Solutions customers Segment profit - Impact from the company’s
Slide 6: Q3 FY19 medical segment results
Q3 FY19 medical segment results Q3 FY19 ($M) Q3 FY18 ($M) YoY change Revenue $3,871 $3,916 (1)% Segment profit $155 $199 (22)% Segment profit margin 4.01% 5.09% -108 bps Drivers: Revenue - Divestitures of the China distribution and naviHealth businesses + Existing customers Segment profit - Cardinal
Slide 7: FY19 outlook
FY19 outlook 7
Slide 8: FY19 segment outlook
FY19 segment outlook Segment Revenue Profit Mid to high-single digit High-single to low-double Pharmaceutical percentage growth digit percentage decline Low to mid-single digit Medical Approximately flat percentage decline Bold indicates updates to the FY19 financial guidance provided on February 7,
Slide 9: FY19 financial expectations
FY19 financial expectations FY19 outlook FY18 actual Mid-single digit Revenue $136.8B percentage growth Non-GAAP EPS $5.02 to $5.17 $5.00 Non-GAAP ETR 23.5% - 25.5% 29.3% Diluted weighted average shares 300M – 302M 315M outstanding Interest and other $330M - $350M $352M Capital expenditures $310M -
Slide 10: Q3 FY19 trailing five quarters
Q3 FY19 trailing five quarters GAAP TO NON-GAAP RECONCILIATION STATEMENTS AND SUPPLEMENTAL FINANCIAL INFORMATION 10
Slide 11: Trailing five quarters segment analysis
Q3 FY19 trailing five quarters segment analysis Pharmaceutical segment Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Revenue 29,720 31,455 31,416 33,740 31,361 ($M) Segment Profit ($M) 596 416 409 443 536 Medical segment Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Revenue 3,916 3,898 3,801 4,006 3,871 ($M) Se
Slide 12: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation 1 Operating Earnings Earnings Before Provision for Net Effective Diluted Operating Growth Income Income Net 2 Tax Diluted 2 Earnings EPS Earnings Rate Taxes Taxes 2 Growth Rate Rate 2,3,4 Growth Rate Earnings EPS (in millions, exc
Slide 13: GAAP / Non-GAAP Reconciliation Fiscal Year 2018
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation 1 Operating Earnings/(Loss) Provision for/ Operating Earnings Before (Benefit from) Net Net Effective Diluted Earnings/ Growth Income Income Earnings/ Earnings2 Tax Diluted EPS 2 2 2 (Loss) Rate Taxes Taxes (Loss) Growth Rate Rate
Slide 14: Segment Information
Cardinal Health, Inc. and Subsidiaries Segment Information Third Quarter (in millions) 2019 2018 (in millions) 2019 2018 Pharmaceutical Medical Revenue Revenue Amount $ 31,361 $ 29,720 Amount $ 3,871 $ 3,916 Growth rate 6% 5% Growth rate (1)% 15 % Segment profit Segment profit Amount $ 536 $ 596 Amo
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-GAAP metrics. The Company does not provide outlook on a GAAP basis because changes in the items that the Company excludes from GAAP to calculate the comparable
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.: non-GAAP net earnings attributable to Cardinal Health, Inc. divided by diluted weighted-average shares outst