Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q1 FY2020 Earnings Presentation
15 slides from Cardinal Health's earnings presentation, Nov 7, 2019
Slide 1: Q1 FY20 Cardinal Health, Inc. Earnings Call
Q1 FY20 CARDINAL HEALTH, INC. EARNINGS CALL NOVEMBER 7, 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: Q1 results
Q1 results 3
Slide 4: Q1 FY20 financial summary
Q1 FY20 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q1 FY20 Q1 FY20 Revenue $37,341 N/A % change 6% Gross Margin $1,679 N/A % change 1% SG&A $1,107 $1,102 % change (4)% (2)% Operating Earnings/(Loss)1 $(5,264) $577 % change N.M. 6% Interest & Other2 $80 N/A % change 0% Net Earnings/Loss 1,
Slide 5: Q1 FY20 Pharmaceutical segment results
Q1 FY20 Pharmaceutical segment results Q1 FY20 ($M) Q1 FY19 ($M) YoY change Revenue $33,428 $31,416 6% Segment profit $398 $409 -3% Segment profit margin 1.19% 1.30% -11 bps Drivers: Revenue + Pharmaceutical Distribution + Specialty Solutions Segment profit - Pharmaceutical Distribution customer con
Slide 6: Q1 FY20 Medical segment results
Q1 FY20 Medical segment results Q1 FY20 ($M) Q1 FY19 ($M) YoY change Revenue $3,917 $3,801 3% Segment profit $170 $135 26% Segment profit margin 4.33% 3.55% 78 bps Drivers: Revenue + Products and distribution + Cardinal Health at Home - Divestiture of the naviHealth business Segment profit + Cost sa
Slide 7: FY20 outlook
FY20 outlook 7
Slide 8: FY20 financial expectations
FY20 financial expectations FY20 outlook FY19 actual Non-GAAP EPS $4.85 - $5.10 $5.28 Interest and other $295M - $315M $309M Non-GAAP ETR 24.0% - 26.0% 22.1% Diluted weighted average 292M - 297M 301M shares outstanding Incremental cost savings >$130M $133M Capital expenditures $320M - $360M $328M 8
Slide 9: FY20 segment outlook
FY20 segment outlook Segment Revenue Profit Mid-single digit High-single to low-double Pharmaceutical percentage growth digit percentage decline Low-single digit Low-double digit Medical percentage growth percentage growth 9 © 2019 Cardinal Health. All Rights Reserved.
Slide 10: GAAP to non-GAAP reconciliation statements and supplemental financial information
Q1 FY20 GAAP TO NON-GAAP RECONCILIATION STATEMENTS AND SUPPLEMENTAL FINANCIAL INFORMATION 10
Slide 11: GAAP / Non-GAAP Reconciliation (First Quarter 2020)
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation 1 Earnings/ Net Operating (Loss) Provision for/ Earnings/ Diluted SG&A 2 Operating Earnings Before (Benefit from) Net (Loss)3 Effective EPS3 Growth Earnings/ Growth Income Income Earnings/ Growth Tax Diluted Growth SG&A 2 Rate (Lo
Slide 12: GAAP / Non-GAAP Reconciliation (Fiscal Year 2019)
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 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 mil
Slide 13: Segment Information
Cardinal Health, Inc. and Subsidiaries Segment Information First Quarter (in millions) 2020 2019 (in millions) 2020 2019 Pharmaceutical Medical Revenue Revenue Amount $ 33,428 $ 31,416 Amount $ 3,917 $ 3,801 Grow th rate 6% 9% Grow th rate 3% 2% Segment profit Segment profit Amount $ 398 $ 409 Amoun
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 Interest and Other, net: other (income)/expense, net plus interest expense, net. Non-GAAP diluted earnings/(loss) per share attributable to Cardinal Health, Inc.: non-GAAP net earnings/(loss) attributable to Cardinal Health, Inc. divided by diluted