Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q2 FY2019 Earnings Presentation
16 slides from Cardinal Health's earnings presentation, Feb 7, 2019
Slide 1: Q2 FY19 Cardinal Health, Inc. Earnings Call
Q2 FY19 CARDINAL HEALTH, INC. EARNINGS CALL FEBRUARY 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: Q2 results
Q2 results 3
Slide 4: Q2 FY19 financial summary
Q2 FY19 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q2 FY19 Q2 FY19 Revenue $37,740 N/A % change 7% Gross Margin $1,730 N/A % change (7)% SG&A $1,064 $1,093 % change (6)% (3)% Operating Earnings $504 $637 % change 26% (13)% Interest & Other1 $97 N/A % change 18% Net Earnings2 $280 $385 % c
Slide 5: Q2 FY19 pharmaceutical segment results
Q2 FY19 pharmaceutical segment results Q2 FY19 ($M) Q2 FY18 ($M) YoY change Revenue $33,740 $31,146 8% Segment profit $443 $514 (14)% Segment profit margin 1.31% 1.65% -34 bps Drivers: Revenue + Pharmaceutical Distribution and Specialty Solutions customers - Divestiture of the China distribution bus
Slide 6: Q2 FY19 medical segment results
Q2 FY19 medical segment results Q2 FY19 ($M) Q2 FY18 ($M) YoY change Revenue $4,006 $4,044 (1)% Segment profit $188 $220 (14)% Segment profit margin 4.70% 5.43% -73 bps Drivers: Revenue - Divestitures of the China distribution and naviHealth businesses + Existing customers Segment profit - Increased
Slide 7: FY19 outlook
FY19 outlook 7
Slide 8: FY19 financial expectations
FY19 financial expectations FY19 outlook FY18 actual Mid-single digit Revenue $136.8B percentage growth Non-GAAP EPS $4.97 to $5.17 $5.00 Non-GAAP ETR 25% - 27% 29.3% Diluted weighted average shares 300M – 302M 315M outstanding Interest and other $340M - $360M $352M Capital expenditures $360M - $390
Slide 9: FY19 segment outlook
FY19 segment outlook Segment Revenue Profit Mid to high-single digit High-single to low-double Pharmaceutical percentage growth digit percentage decline Mid to high-single digit Medical Approximately flat percentage growth Bold numbers indicate updates to FY19 financial guidance 9 © 2019 Cardinal He
Slide 10: Q2 FY19 trailing five quarters
Q2 FY19 trailing five quarters GAAP TO NON-GAAP RECONCILIATION STATEMENTS AND SUPPLEMENTAL FINANCIAL INFORMATION 10
Slide 11: Q2 FY19 trailing five quarters segment analysis
Q2 FY19 trailing five quarters segment analysis Pharmaceutical segment Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Revenue 31,146 29,720 31,455 31,416 33,740 ($M) Segment Profit ($M) 514 596 416 409 443 Medical segment Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Revenue 4,044 3,916 3,898 3,801 4,006 ($M) Se
Slide 12: GAAP / Non-GAAP Reconciliation (Second Quarter 2019)
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Gross Operating Earnings/(Loss) Provision for/ 2 Margin SG&A Earnings Before (Benefit from) Net Effective Diluted 3 3 Gross Growth Growth Operating Growth Income Income Net Earnings Tax Diluted EPS 2 3 3 Margin Rate SG&A Rate Ear
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 Earnings Before (Benefit from) Net Net Effective Diluted 2 2 Gross Growth Operating Growth Income Income Earnings/ Earnings Tax Diluted EPS 2 2 Margin Rate Earnings Rate Taxes
Slide 14: Segment Information
Cardinal Health, Inc. and Subsidiaries Segment Information Second Quarter (in millions) 2019 2018 (in millions) 2019 2018 Pharmaceutical Medical Revenue Revenue Amount $ 33,740 $ 31,146 Amount $ 4,006 $ 4,044 Growth rate 8% 5% Growth rate (1)% 19 % Segment profit Segment profit Amount $ 443 $ 514 Am
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.: non-GAAP net earnings attributable to Cardinal Health, Inc. divided by diluted weighted-average shares outst