x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
31-1001351
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(I.R.S. Employer
Identification No.)
|
100 East RiverCenter Boulevard
Covington, Kentucky
|
41011
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Number of Shares
|
Date
|
||||
Common Stock, $1 par value
|
115,808,485 |
June 30, 2011
|
OMNICARE, INC. AND
|
|||||
SUBSIDIARY COMPANIES
|
|||||
FORM 10-Q QUARTERLY REPORT JUNE 30, 2011
|
|||||
INDEX
|
|||||
PAGE
|
|||||
PART 1 – FINANCIAL INFORMATION
|
|||||
ITEM 1.
|
FINANCIAL STATEMENTS (UNAUDITED)
|
||||
Consolidated Statements of Income -
|
|||||
Three and six months ended – June 30, 2011 and 2010
|
3
|
||||
Consolidated Balance Sheets -
|
|||||
June 30, 2011 and December 31, 2010
|
4
|
||||
Consolidated Statements of Cash Flows -
|
|||||
Six months ended – June 30, 2011 and 2010
|
5
|
||||
Notes to Consolidated Financial Statements
|
6
|
||||
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
28
|
|||
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK
|
35
|
|||
ITEM 4.
|
CONTROLS AND PROCEDURES
|
35
|
|||
PART II – OTHER INFORMATION
|
|||||
ITEM 1.
|
LEGAL PROCEEDINGS
|
36
|
|||
ITEM 1A.
|
RISK FACTORS
|
36
|
|||
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
36
|
|||
ITEM 6.
|
EXHIBITS
|
36
|
Three months ended,
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net sales
|
$ | 1,555,906 | $ | 1,491,425 | $ | 3,081,477 | $ | 2,983,796 | ||||||||
Cost of sales
|
1,219,513 | 1,164,170 | 2,410,124 | 2,315,197 | ||||||||||||
Gross profit
|
336,393 | 327,255 | 671,353 | 668,599 | ||||||||||||
Selling, general and administrative expenses
|
192,474 | 185,919 | 382,641 | 368,690 | ||||||||||||
Provision for doubtful accounts
|
24,357 | 20,986 | 48,887 | 42,928 | ||||||||||||
Settlement, litigation and other related charges
|
19,816 | 29,361 | 25,829 | 34,867 | ||||||||||||
Other miscellaneous charges
|
2,332 | 5,285 | 4,221 | 11,050 | ||||||||||||
Operating income
|
97,414 | 85,704 | 209,775 | 211,064 | ||||||||||||
Investment income
|
255 | 1,105 | 551 | 2,769 | ||||||||||||
Interest expense
|
(27,996 | ) | (39,712 | ) | (56,801 | ) | (68,320 | ) | ||||||||
Amortization of discount on convertible notes
|
(5,989 | ) | (7,473 | ) | (11,862 | ) | (14,804 | ) | ||||||||
Income from continuing operations before income taxes
|
63,684 | 39,624 | 141,663 | 130,709 | ||||||||||||
Income tax expense
|
27,403 | 15,879 | 56,227 | 49,523 | ||||||||||||
Income from continuing operations
|
36,281 | 23,745 | 85,436 | 81,186 | ||||||||||||
Loss from discontinued operations
|
(37,728 | ) | (12,146 | ) | (57,579 | ) | (18,735 | ) | ||||||||
Net income (loss)
|
$ | (1,447 | ) | $ | 11,599 | $ | 27,857 | $ | 62,451 | |||||||
Earnings (loss) per common share - Basic:
|
||||||||||||||||
Continuing operations
|
$ | 0.32 | $ | 0.20 | $ | 0.75 | $ | 0.69 | ||||||||
Discontinued operations
|
(0.33 | ) | (0.10 | ) | (0.51 | ) | (0.16 | ) | ||||||||
Net income (loss)
|
$ | (0.01 | ) | $ | 0.10 | $ | 0.24 | $ | 0.53 | |||||||
Earnings (loss) per common share - Diluted:
|
||||||||||||||||
Continuing operations
|
$ | 0.32 | $ | 0.20 | $ | 0.74 | $ | 0.69 | ||||||||
Discontinued operations
|
(0.33 | ) | (0.10 | ) | (0.50 | ) | (0.16 | ) | ||||||||
Net income (loss)
|
$ | (0.01 | ) | $ | 0.10 | $ | 0.24 | $ | 0.53 | |||||||
Dividends per common share
|
$ | 0.0400 | $ | 0.0225 | $ | 0.0725 | $ | 0.0450 | ||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
113,487 | 117,434 | 113,806 | 117,598 | ||||||||||||
Diluted
|
114,701 | 118,116 | 115,081 | 118,285 | ||||||||||||
Comprehensive income (loss)
|
$ | (981 | ) | $ | 9,310 | $ | 24,944 | $ | 61,187 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 521,610 | $ | 494,484 | ||||
Restricted cash
|
2,403 | 2,019 | ||||||
Accounts receivable, less allowances of $400,845 (2010-$401,027)
|
1,001,182 | 1,011,823 | ||||||
Inventories
|
356,597 | 418,965 | ||||||
Deferred income tax benefits
|
157,194 | 150,644 | ||||||
Other current assets
|
233,433 | 332,607 | ||||||
Current assets of discontinued operations
|
2,373 | 47,254 | ||||||
Total current assets
|
2,274,792 | 2,457,796 | ||||||
Properties and equipment, at cost less accumulated depreciation of $302,226 (2010-$284,533)
|
201,477 | 204,717 | ||||||
Goodwill
|
4,250,201 | 4,234,821 | ||||||
Identifiable intangible assets, less accumulated amortization of $228,152 (2010-$219,107)
|
241,348 | 259,809 | ||||||
Other noncurrent assets
|
145,464 | 156,941 | ||||||
Noncurrent assets of discontinued operations
|
12,772 | 49,329 | ||||||
Total noncurrent assets
|
4,851,262 | 4,905,617 | ||||||
Total assets
|
$ | 7,126,054 | $ | 7,363,413 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 223,930 | $ | 233,396 | ||||
Accrued employee compensation
|
45,540 | 59,417 | ||||||
Deferred revenue
|
2,642 | 2,352 | ||||||
Current debt
|
3,503 | 3,537 | ||||||
Other current liabilities
|
203,267 | 273,191 | ||||||
Current liabilities of discontinued operations
|
5,900 | 22,361 | ||||||
Total current liabilities
|
484,782 | 594,254 | ||||||
Long-term debt, notes and convertible debentures (Note 5)
|
1,955,977 | 2,106,758 | ||||||
Deferred income tax liabilities
|
784,199 | 737,383 | ||||||
Other noncurrent liabilities
|
100,596 | 109,074 | ||||||
Total noncurrent liabilities
|
2,840,772 | 2,953,215 | ||||||
Total liabilities
|
3,325,554 | 3,547,469 | ||||||
Commitments and contingencies (Note 8)
|
||||||||
Stockholders' equity:
|
||||||||
Preferred stock, no par value, 1,000,000 shares authorized, none issued and outstanding
|
- | - | ||||||
Common stock, $1 par value, 200,000,000 shares authorized, 131,250,100 shares issued (2010-129,634,300 shares issued)
|
131,250 | 129,634 | ||||||
Paid in capital (Note 5)
|
2,467,706 | 2,424,978 | ||||||
Retained earnings
|
1,599,271 | 1,579,672 | ||||||
Treasury stock, at cost-15,441,600 shares (2010-13,011,700 shares )
|
(407,818 | ) | (333,554 | ) | ||||
Accumulated other comprehensive income
|
10,091 | 15,214 | ||||||
Total stockholders' equity
|
3,800,500 | 3,815,944 | ||||||
Total liabilities and stockholders' equity
|
$ | 7,126,054 | $ | 7,363,413 |
Six months ended
|
||||||||
June 30,
|
||||||||
2011
|
2010
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 27,857 | $ | 62,451 | ||||
Loss from discontinued operations
|
57,579 | 18,735 | ||||||
Adjustments to reconcile net income to net cash flows from operating activities:
|
||||||||
Depreciation expense
|
23,935 | 22,835 | ||||||
Amortization expense
|
40,630 | 45,065 | ||||||
Debt redemption costs, net
|
(1,266 | ) | 2,060 | |||||
Tender premium
|
- | (7,323 | ) | |||||
Changes in assets and liabilities, net of effects from acquisition and divestiture of businesses:
|
||||||||
Accounts receivable, net of provision for doubtful accounts
|
12,616 | 46,649 | ||||||
Inventories
|
62,750 | 9,030 | ||||||
Other current and noncurrent assets
|
120,370 | (18,264 | ) | |||||
Accounts payable
|
(12,819 | ) | (40,645 | ) | ||||
Accrued employee compensation
|
(13,683 | ) | (11,174 | ) | ||||
Deferred revenue
|
290 | (293 | ) | |||||
Current and noncurrent liabilities
|
(37,384 | ) | 23,823 | |||||
Net cash flows from operating activities of continuing operations
|
280,875 | 152,949 | ||||||
Net cash flows from operating activities of discontinued operations
|
420 | 628 | ||||||
Net cash flows from operating activities
|
281,295 | 153,577 | ||||||
Cash flows from investing activities:
|
||||||||
Acquisition of businesses, net of cash received
|
(19,521 | ) | (11,855 | ) | ||||
Divestiture of businesses, net
|
10,599 | - | ||||||
Capital expenditures
|
(18,223 | ) | (11,489 | ) | ||||
Other
|
(2,516 | ) | 9,979 | |||||
Net cash flows used in investing activities of continuing operations
|
(29,661 | ) | (13,365 | ) | ||||
Net cash flows used in investing activities of discontinued operations
|
(413 | ) | (235 | ) | ||||
Net cash flows used in investing activities
|
(30,074 | ) | (13,600 | ) | ||||
Cash flows from financing activities:
|
||||||||
Net payments on revolving credit facilities and Term A loan
|
- | (125,000 | ) | |||||
Proceeds from long-term borrowings and obligations
|
400,000 | |||||||
Payments on long-term borrowings and obligations
|
(175,664 | ) | (218,478 | ) | ||||
Fees paid for financing arrangements
|
- | (17,028 | ) | |||||
Increase in cash overdraft balance
|
4,413 | 3,127 | ||||||
Proceeds (payments) for stack awards and exercise of stock options, net of stock tendered in payment
|
26,538 | (5,241 | ) | |||||
Payments for Omnicare common stock repurchase (Note 2)
|
(70,061 | ) | (49,154 | ) | ||||
Dividends paid
|
(8,258 | ) | (5,343 | ) | ||||
Other
|
(1,056 | ) | (3,266 | ) | ||||
Net cash flows used in financing activities of continuing operations
|
(224,088 | ) | (20,383 | ) | ||||
Net cash flows used in financing activities of discontinued operations
|
- | - | ||||||
Net cash flows used in financing activities
|
(224,088 | ) | (20,383 | ) | ||||
Net increase (decrease) in cash and cash equivalents
|
27,133 | 119,594 | ||||||
Less increase in cash and cash equivalents of discontinued operations
|
7 | 393 | ||||||
Increase (decrease) in cash and cash equivalents of continuing operations
|
27,126 | 119,201 | ||||||
Cash and cash equivalents at beginning of period
|
494,484 | 275,707 | ||||||
Cash and cash equivalents at end of period
|
$ | 521,610 | $ | 394,908 |
June 30, 2011
|
||||||||||||
Current and 0-180 Days Past-Due
|
181 Days and Over Past-Due
|
Total
|
||||||||||
Medicare (Part D and Part B), Medicaid and Third-Party payors
|
$ | 256,741 | $ | 195,890 | $ | 452,631 | ||||||
Facility payors
|
388,557 | 309,123 | 697,680 | |||||||||
Private Pay payors
|
86,302 | 165,414 | 251,716 | |||||||||
Total gross accounts receivable
|
$ | 731,600 | $ | 670,427 | $ | 1,402,027 | ||||||
December 31, 2010
|
||||||||||||
Medicare (Part D and Part B), Medicaid and Third-Party payors
|
$ | 260,788 | $ | 185,934 | $ | 446,722 | ||||||
Facility payors
|
389,887 | 312,996 | 702,883 | |||||||||
Private Pay payors
|
96,047 | 167,198 | 263,245 | |||||||||
Total gross accounts receivable
|
$ | 746,722 | $ | 666,128 | $ | 1,412,850 |
Based on
|
||||||||||||||||
Fair Value at June 30, 2011
|
Quoted Prices in Active Markets (Level 1)
|
Other Observable Inputs (Level 2)
|
Unobservable Inputs
(Level 3)
|
|||||||||||||
Rabbi trust assets
|
$ | 4,492 | $ | 4,492 | $ | - | $ | - | ||||||||
7.75% interest rate swap agreement - fair value hedge
|
6,075 | - | 6,075 | - | ||||||||||||
Derivatives
|
- | - | - | - | ||||||||||||
Total
|
$ | 6,075 | $ | 0 | $ | 6,075 | $ | - | ||||||||
Based on
|
||||||||||||||||
Fair Value at December 31, 2010
|
Quoted Prices in Active Markets (Level 1)
|
Other Observable Inputs (Level 2)
|
Unobservable Inputs
(Level 3)
|
|||||||||||||
Rabbi trust assets
|
$ | 85,741 | $ | 85,741 | $ | - | $ | - | ||||||||
7.75% interest rate swap agreement - fair value hedge
|
$ | (829 | ) | $ | - | $ | (829 | ) | $ | - | ||||||
6.875% interest rate swap agreement - fair value hedge
|
(3,461 | ) | - | (3,461 | ) | - | ||||||||||
Derivatives
|
- | - | - | - | ||||||||||||
Total
|
$ | (4,290 | ) | $ | - | $ | (4,290 | ) | $ | - |
Fair Value of Financial Instruments
|
||||||||||||||||
June 30, 2011
|
December 31, 2010
|
|||||||||||||||
Financial Instrument
|
Book Value
|
Fair Value
|
Book Value
|
Fair Value
|
||||||||||||
6.125% senior subordinated notes, due 2013, gross
|
$ | 75,000 | $ | 75,100 | $ | 250,000 | $ | 251,300 | ||||||||
6.875% senior subordinated notes, due 2015
|
525,000 | 544,000 | 525,000 | 535,500 | ||||||||||||
7.75% senior subordinated notes, due 2020, gross
|
400,000 | 431,000 | 400,000 | 415,500 | ||||||||||||
3.75% convertible senior subordinated notes, due 2025
|
||||||||||||||||
Carrying value
|
357,345 | - | 353,505 | - | ||||||||||||
Unamortized debt discount
|
217,655 | - | 221,495 | - | ||||||||||||
Principal amount
|
575,000 | 770,500 | 575,000 | 636,400 | ||||||||||||
4.00% junior subordinated convertible debentures, due 2033
|
||||||||||||||||
Carrying value
|
202,455 | - | 201,282 | - | ||||||||||||
Unamortized debt discount
|
142,545 | - | 143,718 | - | ||||||||||||
Principal amount
|
345,000 | 331,800 | 345,000 | 266,900 | ||||||||||||
3.25% convertible senior debentures, due 2035
|
||||||||||||||||
Carrying value
|
377,686 | - | 370,837 | - | ||||||||||||
Unamortized debt discount
|
74,814 | - | 81,663 | - | ||||||||||||
Principal amount
|
452,500 | 431,000 | 452,500 | 427,600 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Cumulative foreign currency translation adjustments
|
$ | 11,398 | $ | 15,239 | ||||
Unrealized gain on fair value of investments
|
(285 | ) | 997 | |||||
Pension and postemployment benefits
|
(1,022 | ) | (1,022 | ) | ||||
Total accumulated other comprehensive income, net
|
$ | 10,091 | $ | 15,214 |
Three months ended,
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Acquisition and other related costs
|
$ | 2,332 | $ | (164 | ) | $ | 4,221 | $ | 63 | |||||||
Restructuring and other related charges
|
- | 3,489 | - | 6,994 | ||||||||||||
Stock option expense
|
- | 1,293 | - | 2,576 | ||||||||||||
Debt related costs
|
- | 446 | - | 446 | ||||||||||||
Repack matters - SG&A
|
- | 221 | - | 971 | ||||||||||||
Subtotal - other miscellaneous charges
|
2,332 | 5,285 | 4,221 | 11,050 | ||||||||||||
Repack matters - COS
|
- | 466 | - | 909 | ||||||||||||
Total - other miscellaneous charges, net
|
$ | 2,332 | $ | 5,751 | $ | 4,221 | $ | 11,959 |
Three months ended,
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net sales - Non-Core Disposal Group ("NCDG")
|
$ | 6,600 | $ | 14,885 | $ | 15,686 | $ | 32,099 | ||||||||
Net sales - CRO Services
|
6,700 | 27,350 | 32,146 | 57,093 | ||||||||||||
Net sales - total discontinued
|
13,300 | 42,235 | 47,832 | 89,192 | ||||||||||||
Loss from operations of NCDG, pretax
|
(876 | ) | (2,816 | ) | (1,155 | ) | (7,471 | ) | ||||||||
Loss from operations of CRO Services, pretax
|
(2,426 | ) | (3,716 | ) | (4,921 | ) | (8,978 | ) | ||||||||
Loss from operations - total discontinued, pretax
|
(3,302 | ) | (6,532 | ) | (6,076 | ) | (16,449 | ) | ||||||||
Income tax benefit - NCDG
|
348 | 1,105 | 455 | 2,981 | ||||||||||||
Income tax benefit - CRO Services
|
985 | 1,765 | 1,923 | 3,217 | ||||||||||||
Income tax benefit - total discontinued
|
1,333 | 2,870 | 2,378 | 6,198 | ||||||||||||
Loss from operations of NCDG, aftertax
|
(528 | ) | (1,711 | ) | (700 | ) | (4,490 | ) | ||||||||
Loss from operations of CRO Services, aftertax
|
(1,441 | ) | (1,951 | ) | (2,998 | ) | (5,761 | ) | ||||||||
Loss from operations - total discontinued, aftertax
|
(1,969 | ) | (3,662 | ) | (3,698 | ) | (10,251 | ) | ||||||||
Impairment loss on NCDG, pretax
|
(5,065 | ) | (10,343 | ) | (5,065 | ) | (10,343 | ) | ||||||||
Impairment loss on CRO Services, pretax
|
(10,882 | ) | - | (51,773 | ) | - | ||||||||||
Income tax (expense) benefit of impairment loss on NCDG
|
(9,679 | ) | 1,859 | (9,679 | ) | 1,859 | ||||||||||
Income tax (expense) benefit of impairment loss on CRO Services
|
(10,133 | ) | - | 12,636 | - | |||||||||||
Impairment loss on total discontinued, aftertax
|
(35,759 | ) | (8,484 | ) | (53,881 | ) | (8,484 | ) | ||||||||
Loss from discontinued operations of NCDG
|
(15,272 | ) | (10,195 | ) | (15,444 | ) | (12,974 | ) | ||||||||
Loss from discontinued operations of CRO Services
|
(22,456 | ) | (1,951 | ) | (42,135 | ) | (5,761 | ) | ||||||||
Loss from discontinued operations - total
|
$ | (37,728 | ) | $ | (12,146 | ) | $ | (57,579 | ) | $ | (18,735 | ) |
Total
|
||||
Goodwill balance as of December 31, 2010
|
$ | 4,234,821 | ||
Goodwill acquired in the six months ended June 30, 2011
|
4,033 | |||
Other
|
11,347 | |||
Goodwill balance as of June 30, 2011
|
$ | 4,250,201 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Revolving loans, due 2015
|
$ | - | $ | - | ||||
6.125% senior subordinated notes, due 2013
|
75,000 | 250,000 | ||||||
6.875% senior subordinated notes, due 2015
|
525,000 | 525,000 | ||||||
7.75% senior subordinated notes, due 2020
|
400,000 | 400,000 | ||||||
3.75% convertible senior subordinated notes, due 2025
|
575,000 | 575,000 | ||||||
4.00% junior subordinated convertible debentures, due 2033
|
345,000 | 345,000 | ||||||
3.25% convertible senior debentures, due 2035
|
452,500 | 452,500 | ||||||
Capitalized lease and other debt obligations
|
15,919 | 13,961 | ||||||
Subtotal
|
2,388,419 | 2,561,461 | ||||||
(Subtract) interest rate swap agreements
|
6,075 | (4,290 | ) | |||||
(Subtract) unamortized debt discount
|
(435,014 | ) | (446,876 | ) | ||||
(Subtract) current portion of debt
|
(3,503 | ) | (3,537 | ) | ||||
Total long-term debt, net
|
$ | 1,955,977 | $ | 2,106,758 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Carrying value of equity component
|
$ | 619,223 | $ | 619,223 | ||||
Principal amount of convertible debt
|
$ | 1,372,500 | $ | 1,372,500 | ||||
Unamortized debt discount
|
(435,014 | ) | (446,876 | ) | ||||
Net carrying value of convertible debt
|
$ | 937,486 | $ | 925,624 |
Three months ended June 30,
|
||||||||||||
Income
|
Common Shares
|
Per Common
|
||||||||||
2011:
|
(Numerator)
|
(Denominator)
|
Share Amounts
|
|||||||||
Basic EPS
|
||||||||||||
Income from continuing operations
|
$ | 36,281 | $ | 0.32 | ||||||||
Loss from discontinued operations
|
(37,728 | ) | (0.33 | ) | ||||||||
Net loss
|
(1,447 | ) | 113,487 | $ | (0.01 | ) | ||||||
Effect of Dilutive Securities
|
||||||||||||
4.00% junior subordinated convertible debentures
|
72 | 275 | ||||||||||
Stock options, warrants and awards
|
- | 939 | ||||||||||
Diluted EPS
|
||||||||||||
Income from continuing operations plus assumed conversions
|
36,353 | $ | 0.32 | |||||||||
Loss from discontinued operations
|
(37,728 | ) | (0.33 | ) | ||||||||
Net loss plus assumed conversions
|
$ | (1,375 | ) | 114,701 | $ | (0.01 | ) | |||||
2010:
|
||||||||||||
Basic EPS
|
||||||||||||
Income from continuing operations
|
$ | 23,745 | $ | 0.20 | ||||||||
Loss from discontinued operations
|
(12,146 | ) | (0.10 | ) | ||||||||
Net income
|
11,599 | 117,434 | $ | 0.10 | ||||||||
Effect of Dilutive Securities
|
||||||||||||
4.00% junior subordinated convertible debentures
|
72 | 275 | ||||||||||
Stock options, warrants and awards
|
- | 407 | ||||||||||
Diluted EPS
|
||||||||||||
Income from continuing operations plus assumed conversions
|
23,817 | $ | 0.20 | |||||||||
Loss from discontinued operations
|
(12,146 | ) | (0.10 | ) | ||||||||
Net income plus assumed conversions
|
$ | 11,671 | 118,116 | $ | 0.10 |
Six months ended June 30,
|
||||||||||||
Income
|
Common Shares
|
Per Common
|
||||||||||
2011:
|
(Numerator)
|
(Denominator)
|
Share Amounts
|
|||||||||
Basic EPS
|
||||||||||||
Income from continuing operations
|
$ | 85,436 | $ | 0.75 | ||||||||
Loss from discontinued operations
|
(57,579 | ) | (0.51 | ) | ||||||||
Net income
|
27,857 | 113,806 | $ | 0.24 | ||||||||
Effect of Dilutive Securities
|
||||||||||||
4.00% junior subordinated convertible debentures
|
144 | 275 | ||||||||||
Stock options, warrants and awards
|
- | 1,000 | ||||||||||
Diluted EPS
|
||||||||||||
Income from continuing operations plus assumed conversions
|
85,580 | $ | 0.74 | |||||||||
Loss from discontinued operations
|
(57,579 | ) | (0.50 | ) | ||||||||
Net income plus assumed conversions
|
$ | 28,001 | 115,081 | $ | 0.24 | |||||||
2010:
|
||||||||||||
Basic EPS
|
||||||||||||
Income from continuing operations
|
$ | 81,186 | $ | 0.69 | ||||||||
Loss from discontinued operations
|
(18,735 | ) | (0.16 | ) | ||||||||
Net income
|
62,451 | 117,598 | $ | 0.53 | ||||||||
Effect of Dilutive Securities
|
||||||||||||
4.00% junior subordinated convertible debentures
|
144 | 275 | ||||||||||
Stock options, warrants and awards
|
- | 412 | ||||||||||
Diluted EPS
|
||||||||||||
Income from continuing operations plus assumed conversions
|
81,330 | $ | 0.69 | |||||||||
Loss from discontinued operations
|
(18,735 | ) | (0.16 | ) | ||||||||
Net income plus assumed conversions
|
$ | 62,595 | 118,285 | $ | 0.53 |
Three months ended June 30,
|
||||||||||||||||||||
Guarantor
|
Non-Guarantor
|
Consolidating/Eliminating
|
Omnicare, Inc.
|
|||||||||||||||||
2011:
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
and Subsidiaries
|
|||||||||||||||
Net sales
|
$ | - | $ | 1,523,824 | $ | 32,082 | $ | - | $ | 1,555,906 | ||||||||||
Cost of sales
|
- | 1,197,232 | 22,281 | - | 1,219,513 | |||||||||||||||
Gross profit
|
- | 326,592 | 9,801 | - | 336,393 | |||||||||||||||
Selling, general and administrative expenses
|
2,307 | 185,164 | 5,003 | - | 192,474 | |||||||||||||||
Provision for doubtful accounts
|
- | 23,881 | 476 | - | 24,357 | |||||||||||||||
Settlement, litigation and other related charges
|
- | 19,816 | - | - | 19,816 | |||||||||||||||
Other misellaneous charges
|
- | 2,332 | - | - | 2,332 | |||||||||||||||
Operating income (loss)
|
(2,307 | ) | 95,399 | 4,322 | - | 97,414 | ||||||||||||||
Investment income
|
147 | 108 | - | - | 255 | |||||||||||||||
Interest expense, including amortization
|
||||||||||||||||||||
of discount on convertible notes
|
(33,710 | ) | (275 | ) | - | - | (33,985 | ) | ||||||||||||
Income (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
(35,870 | ) | 95,232 | 4,322 | - | 63,684 | ||||||||||||||
Income tax (benefit) expense
|
(13,443 | ) | 39,158 | 1,688 | - | 27,403 | ||||||||||||||
Income (loss) from continuing operations
|
(22,427 | ) | 56,074 | 2,634 | - | 36,281 | ||||||||||||||
Loss from discontinued operations
|
- | (36,297 | ) | (1,431 | ) | - | (37,728 | ) | ||||||||||||
Equity of net income (loss) of subsidiaries
|
20,980 | - | - | (20,980 | ) | - | ||||||||||||||
Net income (loss)
|
$ | (1,447 | ) | $ | 19,777 | $ | 1,203 | $ | (20,980 | ) | $ | (1,447 | ) | |||||||
2010:
|
||||||||||||||||||||
Net sales
|
$ | - | $ | 1,456,614 | $ | 34,811 | $ | - | $ | 1,491,425 | ||||||||||
Cost of sales
|
- | 1,137,926 | 26,244 | - | 1,164,170 | |||||||||||||||
Gross profit
|
- | 318,688 | 8,567 | - | 327,255 | |||||||||||||||
Selling, general and administrative expenses
|
1,118 | 181,151 | 3,650 | - | 185,919 | |||||||||||||||
Provision for doubtful accounts
|
- | 20,422 | 564 | - | 20,986 | |||||||||||||||
Settlement, litigation and other related charges
|
- | 29,361 | - | - | 29,361 | |||||||||||||||
Other miscellaneous charges
|
- | 5,285 | - | - | 5,285 | |||||||||||||||
Operating income (loss)
|
(1,118 | ) | 82,469 | 4,353 | - | 85,704 | ||||||||||||||
Investment income
|
193 | 912 | - | - | 1,105 | |||||||||||||||
Interest expense, including amortization
|
||||||||||||||||||||
of discount on convertible notes
|
(46,651 | ) | (534 | ) | - | - | (47,185 | ) | ||||||||||||
Income (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
(47,576 | ) | 82,847 | 4,353 | - | 39,624 | ||||||||||||||
Income tax (benefit) expense
|
(17,656 | ) | 31,695 | 1,840 | - | 15,879 | ||||||||||||||
Income (loss) from continuing operations
|
(29,920 | ) | 51,152 | 2,513 | - | 23,745 | ||||||||||||||
Income (loss) from discontinued operations
|
- | (12,320 | ) | 174 | - | (12,146 | ) | |||||||||||||
Equity of net income (loss) of subsidiaries
|
41,519 | - | - | (41,519 | ) | - | ||||||||||||||
Net income (loss)
|
$ | 11,599 | $ | 38,832 | $ | 2,687 | $ | (41,519 | ) | $ | 11,599 |
Six months ended June 30,
|
||||||||||||||||||||
Non-
|
Consolidating/
|
Omnicare,
|
||||||||||||||||||
Guarantor
|
Guarantor
|
Eliminating
|
Inc. and
|
|||||||||||||||||
2011:
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Subsidiaries
|
|||||||||||||||
Net sales
|
$ | - | $ | 3,016,728 | $ | 64,749 | $ | - | $ | 3,081,477 | ||||||||||
Cost of sales
|
- | 2,365,369 | 44,755 | - | 2,410,124 | |||||||||||||||
Gross profit
|
- | 651,359 | 19,994 | - | 671,353 | |||||||||||||||
Selling, general and administrative expenses
|
5,907 | 367,964 | 8,770 | - | 382,641 | |||||||||||||||
Provision for doubtful accounts
|
- | 47,932 | 955 | - | 48,887 | |||||||||||||||
Settlement, litigation and other related charges
|
- | 25,829 | - | - | 25,829 | |||||||||||||||
Other misellaneous charges
|
- | 4,221 | - | - | 4,221 | |||||||||||||||
Operating income (loss)
|
(5,907 | ) | 205,413 | 10,269 | - | 209,775 | ||||||||||||||
Investment income
|
363 | 188 | - | - | 551 | |||||||||||||||
Interest expense, including amortization
|
||||||||||||||||||||
of discount on convertible notes
|
(68,057 | ) | (600 | ) | (6 | ) | - | (68,663 | ) | |||||||||||
Income (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
(73,601 | ) | 205,001 | 10,263 | - | 141,663 | ||||||||||||||
Income tax (benefit) expense
|
(27,615 | ) | 79,870 | 3,972 | - | 56,227 | ||||||||||||||
Income (loss) from continuing operations
|
(45,986 | ) | 125,131 | 6,291 | - | 85,436 | ||||||||||||||
Loss from discontinued operations
|
- | (55,032 | ) | (2,547 | ) | - | (57,579 | ) | ||||||||||||
Equity of net income (loss) of subsidiaries
|
73,843 | - | - | (73,843 | ) | - | ||||||||||||||
Net income (loss)
|
$ | 27,857 | $ | 70,099 | $ | 3,744 | $ | (73,843 | ) | $ | 27,857 | |||||||||
2010:
|
||||||||||||||||||||
Net sales
|
$ | - | $ | 2,913,904 | $ | 69,892 | $ | - | $ | 2,983,796 | ||||||||||
Cost of sales
|
- | 2,262,324 | 52,873 | - | 2,315,197 | |||||||||||||||
Gross profit
|
- | 651,580 | 17,019 | - | 668,599 | |||||||||||||||
Selling, general and administrative expenses
|
3,796 | 357,703 | 7,191 | - | 368,690 | |||||||||||||||
Provision for doubtful accounts
|
- | 41,787 | 1,141 | - | 42,928 | |||||||||||||||
Settlement, litigation and other related charges
|
- | 34,867 | - | - | 34,867 | |||||||||||||||
Other miscellaneous charges
|
- | 11,050 | - | - | 11,050 | |||||||||||||||
Operating income (loss)
|
(3,796 | ) | 206,173 | 8,687 | - | 211,064 | ||||||||||||||
Investment income
|
386 | 2,383 | - | - | 2,769 | |||||||||||||||
Interest expense, including amortization
|
||||||||||||||||||||
of discount on convertible notes
|
(82,324 | ) | (800 | ) | - | - | (83,124 | ) | ||||||||||||
Income (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
(85,734 | ) | 207,756 | 8,687 | - | 130,709 | ||||||||||||||
Income tax (benefit) expense
|
(31,816 | ) | 78,117 | 3,222 | - | 49,523 | ||||||||||||||
Income (loss) from continuing operations
|
(53,918 | ) | 129,639 | 5,465 | - | 81,186 | ||||||||||||||
Loss from discontinued operations
|
- | (16,738 | ) | (1,997 | ) | - | (18,735 | ) | ||||||||||||
Equity of net income of subsidiaries
|
116,369 | - | - | (116,369 | ) | - | ||||||||||||||
Net income (loss)
|
$ | 62,451 | $ | 112,901 | $ | 3,468 | $ | (116,369 | ) | $ | 62,451 |
Non-
|
Consolidating/
|
Omnicare,
|
||||||||||||||||||
Guarantor
|
Guarantor
|
Eliminating
|
Inc. and
|
|||||||||||||||||
As of June 30, 2011 (Unaudited):
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Subsidiaries
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 467,342 | $ | 36,946 | $ | 17,322 | $ | - | $ | 521,610 | ||||||||||
Restricted cash
|
- | 2,403 | - | - | 2,403 | |||||||||||||||
Accounts receivable, net (including intercompany)
|
- | 988,237 | 91,773 | (78,828 | ) | 1,001,182 | ||||||||||||||
Inventories
|
- | 349,496 | 7,101 | - | 356,597 | |||||||||||||||
Deferred income tax benefits, net-current
|
- | 155,620 | 2,177 | (603 | ) | 157,194 | ||||||||||||||
Other current assets
|
9,286 | 209,336 | 14,811 | - | 233,433 | |||||||||||||||
Current assets of discontinued operations
|
- | 1,281 | 1,092 | - | 2,373 | |||||||||||||||
Total current assets
|
476,628 | 1,743,319 | 134,276 | (79,431 | ) | 2,274,792 | ||||||||||||||
Properties and equipment, net
|
- | 196,746 | 4,731 | - | 201,477 | |||||||||||||||
Goodwill
|
- | 4,169,083 | 81,118 | - | 4,250,201 | |||||||||||||||
Identifiable intangible assets, net
|
- | 234,283 | 7,065 | - | 241,348 | |||||||||||||||
Other noncurrent assets
|
43,971 | 101,378 | 115 | - | 145,464 | |||||||||||||||
Noncurrent assets of discontinued operations
|
- | 5,176 | 7,596 | - | 12,772 | |||||||||||||||
Investment in subsidiaries
|
5,582,615 | - | - | (5,582,615 | ) | - | ||||||||||||||
Total assets
|
$ | 6,103,214 | $ | 6,449,985 | $ | 234,901 | $ | (5,662,046 | ) | $ | 7,126,054 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
Current liabilities - continuing operations
|
||||||||||||||||||||
(including intercompany)
|
$ | 34,250 | $ | 501,772 | $ | 21,688 | $ | (78,828 | ) | $ | 478,882 | |||||||||
Current liabilities - discontinued operations
|
- | 4,765 | 1,135 | - | 5,900 | |||||||||||||||
Long-term debt, notes and convertible debentures
|
1,943,561 | 12,416 | - | - | 1,955,977 | |||||||||||||||
Deferred income tax liabilities
|
324,903 | 444,582 | 15,317 | (603 | ) | 784,199 | ||||||||||||||
Other noncurrent liabilities
|
- | 100,596 | - | - | 100,596 | |||||||||||||||
Stockholders' equity
|
3,800,500 | 5,385,854 | 196,761 | (5,582,615 | ) | 3,800,500 | ||||||||||||||
Total liabilities and stockholders' equity
|
$ | 6,103,214 | $ | 6,449,985 | $ | 234,901 | $ | (5,662,046 | ) | $ | 7,126,054 | |||||||||
As of December 31, 2010 (unaudited):
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 460,778 | $ | 17,598 | $ | 16,108 | $ | - | $ | 494,484 | ||||||||||
Restricted cash
|
- | 2,019 | - | - | 2,019 | |||||||||||||||
Accounts receivable, net (including intercompany)
|
- | 997,585 | 25,085 | (10,847 | ) | 1,011,823 | ||||||||||||||
Inventories
|
- | 411,256 | 7,709 | - | 418,965 | |||||||||||||||
Deferred income tax benefits, net-current
|
- | 145,886 | 5,198 | (440 | ) | 150,644 | ||||||||||||||
Other current assets
|
538 | 319,268 | 12,801 | - | 332,607 | |||||||||||||||
Current assets of discontinued operations
|
- | 41,366 | 5,888 | - | 47,254 | |||||||||||||||
Total current assets
|
461,316 | 1,934,978 | 72,789 | (11,287 | ) | 2,457,796 | ||||||||||||||
Properties and equipment, net
|
- | 200,442 | 4,275 | - | 204,717 | |||||||||||||||
Goodwill
|
- | 4,154,723 | 80,098 | - | 4,234,821 | |||||||||||||||
Identifiable intangible assets, net
|
- | 250,843 | 8,966 | - | 259,809 | |||||||||||||||
Other noncurrent assets
|
47,695 | 108,938 | 308 | - | 156,941 | |||||||||||||||
Noncurrent assets of discontinued operations
|
- | 40,952 | 8,377 | - | 49,329 | |||||||||||||||
Investment in subsidiaries
|
5,763,499 | - | - | (5,763,499 | ) | - | ||||||||||||||
Total assets
|
$ | 6,272,510 | $ | 6,690,876 | $ | 174,813 | $ | (5,774,786 | ) | $ | 7,363,413 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
Current liabilities - continuing operations
|
||||||||||||||||||||
(including intercompany)
|
$ | 36,203 | $ | 525,819 | $ | 20,718 | $ | (10,847 | ) | $ | 571,893 | |||||||||
Current liabilities - discontinued operations
|
- | 11,645 | 10,716 | - | 22,361 | |||||||||||||||
Long-term debt, notes and convertible debentures
|
2,096,333 | 10,425 | - | - | 2,106,758 | |||||||||||||||
Deferred income tax liabilities
|
319,740 | 404,493 | 13,590 | (440 | ) | 737,383 | ||||||||||||||
Other noncurrent liabilities
|
4,290 | 104,784 | - | - | 109,074 | |||||||||||||||
Stockholders' equity
|
3,815,944 | 5,633,710 | 129,789 | (5,763,499 | ) | 3,815,944 | ||||||||||||||
Total liabilities and stockholders' equity
|
$ | 6,272,510 | $ | 6,690,876 | $ | 174,813 | $ | (5,774,786 | ) | $ | 7,363,413 |
Six months ended June 30,
|
||||||||||||||||
Non-
|
Omnicare,
|
|||||||||||||||
Guarantor
|
Guarantor
|
Inc. and
|
||||||||||||||
2011:
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Subsidiaries
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net cash flows (used in) from operating activities
|
$ | (52,090 | ) | $ | 330,115 | $ | 3,270 | $ | 281,295 | |||||||
Cash flows from investing activities:
|
||||||||||||||||
Acquisition of businesses, net of cash received
|
- | (19,521 | ) | - | (19,521 | ) | ||||||||||
Divestiture of businesses, net
|
- | 10,599 | - | 10,599 | ||||||||||||
Capital expenditures
|
- | (17,042 | ) | (1,181 | ) | (18,223 | ) | |||||||||
Other
|
- | (2,923 | ) | (6 | ) | (2,929 | ) | |||||||||
Net cash flows used in investing activities
|
- | (28,887 | ) | (1,187 | ) | (30,074 | ) | |||||||||
Cash flows from financing activities:
|
||||||||||||||||
Payments on long-term borrowings and obligations
|
(175,664 | ) | - | - | (175,664 | ) | ||||||||||
Increase (decrease) in cash overdraft balance
|
(2,546 | ) | 6,959 | - | 4,413 | |||||||||||
Payments for Omnicare common stock repurchase
|
(70,061 | ) | - | - | (70,061 | ) | ||||||||||
Dividends paid
|
(8,258 | ) | - | - | (8,258 | ) | ||||||||||
Other
|
315,183 | (288,830 | ) | (871 | ) | 25,482 | ||||||||||
Net cash flows from (used in) financing activities
|
58,654 | (281,871 | ) | (871 | ) | (224,088 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents
|
6,564 | 19,357 | 1,212 | 27,133 | ||||||||||||
Less increase (decrease) in cash and cash equivalents of
|
||||||||||||||||
discontinued operations
|
- | 9 | (2 | ) | 7 | |||||||||||
Increase (decrease) in cash and cash equivalents of
|
||||||||||||||||
continuing operations
|
6,564 | 19,348 | 1,214 | 27,126 | ||||||||||||
Cash and cash equivalents at beginning of period
|
460,778 | 17,598 | 16,108 | 494,484 | ||||||||||||
Cash and cash equivalents at end of period
|
$ | 467,342 | $ | 36,946 | $ | 17,322 | $ | 521,610 | ||||||||
2010:
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net cash flows (used in) from operating activities
|
$ | (54,151 | ) | $ | 199,967 | $ | 7,761 | $ | 153,577 | |||||||
Cash flows from investing activities:
|
||||||||||||||||
Acquisition of businesses, net of cash received
|
- | (11,855 | ) | - | (11,855 | ) | ||||||||||
Capital expenditures
|
- | (11,056 | ) | (433 | ) | (11,489 | ) | |||||||||
Other
|
- | 9,747 | (3 | ) | 9,744 | |||||||||||
Net cash flows used in investing activities
|
- | (13,164 | ) | (436 | ) | (13,600 | ) | |||||||||
Cash flows from financing activities:
|
||||||||||||||||
Net payments on revolving credit facilities and Term A loan
|
(125,000 | ) | - | - | (125,000 | ) | ||||||||||
Proceeds from long-term borrowings and obligations
|
400,000 | - | - | 400,000 | ||||||||||||
Payments on long-term borrowings and obligations
|
(218,478 | ) | - | - | (218,478 | ) | ||||||||||
Fees paid for financing arrangements
|
(17,028 | ) | - | - | (17,028 | ) | ||||||||||
Increase in cash overdraft balance
|
5,067 | (1,940 | ) | - | 3,127 | |||||||||||
Payments for Omnicare common stock repurchase
|
(49,154 | ) | - | - | (49,154 | ) | ||||||||||
Dividends paid
|
(5,343 | ) | - | - | (5,343 | ) | ||||||||||
Other
|
189,131 | (193,717 | ) | (3,921 | ) | (8,507 | ) | |||||||||
Net cash flows used in financing activities
|
179,195 | (195,657 | ) | (3,921 | ) | (20,383 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents
|
125,044 | (8,854 | ) | 3,404 | 119,594 | |||||||||||
Less increase in cash and cash equivalents of
|
||||||||||||||||
discontinued operations
|
- | 393 | - | 393 | ||||||||||||
Increase (decrease) in cash and cash equivalents of
|
||||||||||||||||
continuing operations
|
125,044 | (9,247 | ) | 3,404 | 119,201 | |||||||||||
Cash and cash equivalents at beginning of period
|
230,866 | 32,202 | 12,639 | 275,707 | ||||||||||||
Cash and cash equivalents at end of period
|
$ | 355,910 | $ | 22,955 | $ | 16,043 | $ | 394,908 |
Three months ended June 30,
|
||||||||||||||||||||
Non-
|
Consolidating/
|
Omnicare,
|
||||||||||||||||||
Guarantor
|
Guarantor
|
Eliminating
|
Inc. and
|
|||||||||||||||||
2011:
|
Parent
|
Subsidiary
|
Subsidiaries
|
Adjustments
|
Subsidiaries
|
|||||||||||||||
Net sales
|
$ | - | $ | - | $ | 1,555,906 | $ | - | $ | 1,555,906 | ||||||||||
Cost of sales
|
- | - | 1,219,513 | - | 1,219,513 | |||||||||||||||
Gross profit
|
- | - | 336,393 | - | 336,393 | |||||||||||||||
Selling, general and administrative expenses
|
2,307 | 323 | 189,844 | - | 192,474 | |||||||||||||||
Provision for doubtful accounts
|
- | - | 24,357 | - | 24,357 | |||||||||||||||
Settlement, litigation and other related charges
|
- | - | 19,816 | - | 19,816 | |||||||||||||||
Other miscellaneous charges
|
- | - | 2,332 | - | 2,332 | |||||||||||||||
Operating income (loss)
|
(2,307 | ) | (323 | ) | 100,044 | - | 97,414 | |||||||||||||
Investment income
|
147 | - | 108 | - | 255 | |||||||||||||||
Interest expense, including amortization
|
- | |||||||||||||||||||
of discount on convertible notes
|
(33,710 | ) | - | (275 | ) | - | (33,985 | ) | ||||||||||||
Income (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
(35,870 | ) | (323 | ) | 99,877 | - | 63,684 | |||||||||||||
Income tax (benefit) expense
|
(13,443 | ) | (121 | ) | 40,967 | - | 27,403 | |||||||||||||
Income (loss) from continuing operations
|
(22,427 | ) | (202 | ) | 58,910 | - | 36,281 | |||||||||||||
Loss from discontinued operations
|
- | - | (37,728 | ) | - | (37,728 | ) | |||||||||||||
Equity of net income (loss) of subsidiaries
|
20,980 | - | - | (20,980 | ) | - | ||||||||||||||
Net income (loss)
|
$ | (1,447 | ) | $ | (202 | ) | $ | 21,182 | $ | (20,980 | ) | $ | (1,447 | ) | ||||||
2010:
|
||||||||||||||||||||
Net sales
|
$ | - | $ | - | $ | 1,491,425 | $ | - | $ | 1,491,425 | ||||||||||
Cost of sales
|
- | - | 1,164,170 | - | 1,164,170 | |||||||||||||||
Gross profit
|
- | - | 327,255 | - | 327,255 | |||||||||||||||
Selling, general and administrative expenses
|
1,118 | 336 | 184,465 | - | 185,919 | |||||||||||||||
Provision for doubtful accounts
|
- | - | 20,986 | - | 20,986 | |||||||||||||||
Settlement, litigation and other related charges
|
- | - | 29,361 | - | 29,361 | |||||||||||||||
Other miscellaneous charges
|
- | - | 5,285 | - | 5,285 | |||||||||||||||
Operating income (loss)
|
(1,118 | ) | (336 | ) | 87,158 | - | 85,704 | |||||||||||||
Investment income
|
193 | - | 912 | - | 1,105 | |||||||||||||||
Interest expense, including amortization
|
||||||||||||||||||||
of discount on convertible notes
|
(46,651 | ) | - | (534 | ) | - | (47,185 | ) | ||||||||||||
Income (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
(47,576 | ) | (336 | ) | 87,536 | - | 39,624 | |||||||||||||
Income tax (benefit) expense
|
(17,656 | ) | (125 | ) | 33,660 | - | 15,879 | |||||||||||||
Income (loss) from continuing operations
|
(29,920 | ) | (211 | ) | 53,876 | - | 23,745 | |||||||||||||
Loss from discontinued operations
|
- | - | (12,146 | ) | - | (12,146 | ) | |||||||||||||
Equity of net income of subsidiaries
|
41,519 | - | - | (41,519 | ) | - | ||||||||||||||
Net income (loss)
|
$ | 11,599 | $ | (211 | ) | $ | 41,730 | $ | (41,519 | ) | $ | 11,599 |
Six months ended June 30,
|
||||||||||||||||||||
Non-
|
Consolidating/
|
Omnicare,
|
||||||||||||||||||
Guarantor
|
Guarantor
|
Eliminating
|
Inc. and
|
|||||||||||||||||
2011:
|
Parent
|
Subsidiary
|
Subsidiaries
|
Adjustments
|
Subsidiaries
|
|||||||||||||||
Net sales
|
$ | - | $ | - | $ | 3,081,477 | $ | - | $ | 3,081,477 | ||||||||||
Cost of sales
|
- | - | 2,410,124 | - | 2,410,124 | |||||||||||||||
Gross profit
|
- | - | 671,353 | - | 671,353 | |||||||||||||||
Selling, general and administrative expenses
|
5,907 | 669 | 376,065 | - | 382,641 | |||||||||||||||
Provision for doubtful accounts
|
- | - | 48,887 | - | 48,887 | |||||||||||||||
Settlement, litigation and other related charges
|
- | - | 25,829 | - | 25,829 | |||||||||||||||
Other miscellaneous charges
|
- | - | 4,221 | - | 4,221 | |||||||||||||||
Operating income (loss)
|
(5,907 | ) | (669 | ) | 216,351 | - | 209,775 | |||||||||||||
Investment income
|
363 | - | 188 | - | 551 | |||||||||||||||
Interest expense, including amortization
|
||||||||||||||||||||
of discount on convertible notes
|
(68,057 | ) | - | (606 | ) | - | (68,663 | ) | ||||||||||||
Income (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
(73,601 | ) | (669 | ) | 215,933 | - | 141,663 | |||||||||||||
Income tax (benefit) expense
|
(27,615 | ) | (251 | ) | 84,093 | - | 56,227 | |||||||||||||
Income (loss) from continuing operations
|
(45,986 | ) | (418 | ) | 131,840 | - | 85,436 | |||||||||||||
Loss from discontinued operations
|
- | - | (57,579 | ) | - | (57,579 | ) | |||||||||||||
Equity of net income (loss) of subsidiaries
|
73,843 | - | - | (73,843 | ) | - | ||||||||||||||
Net income (loss)
|
$ | 27,857 | $ | (418 | ) | $ | 74,261 | $ | (73,843 | ) | $ | 27,857 | ||||||||
2010:
|
||||||||||||||||||||
Net sales
|
$ | - | $ | - | $ | 2,983,796 | $ | - | $ | 2,983,796 | ||||||||||
Cost of sales
|
- | - | 2,315,197 | - | 2,315,197 | |||||||||||||||
Gross profit
|
- | - | 668,599 | - | 668,599 | |||||||||||||||
Selling, general and administrative expenses
|
3,796 | 635 | 364,259 | - | 368,690 | |||||||||||||||
Provision for doubtful accounts
|
- | - | 42,928 | - | 42,928 | |||||||||||||||
Settlement, litigation and other related charges
|
- | - | 34,867 | - | 34,867 | |||||||||||||||
Other miscellaneous charges
|
- | - | 11,050 | - | 11,050 | |||||||||||||||
Operating income (loss)
|
(3,796 | ) | (635 | ) | 215,495 | - | 211,064 | |||||||||||||
Investment income
|
386 | - | 2,383 | - | 2,769 | |||||||||||||||
Interest expense, including amortization
|
||||||||||||||||||||
of discount on convertible notes
|
(82,324 | ) | - | (800 | ) | - | (83,124 | ) | ||||||||||||
Income (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
(85,734 | ) | (635 | ) | 217,078 | - | 130,709 | |||||||||||||
Income tax (benefit) expense
|
(31,816 | ) | (236 | ) | 81,575 | - | 49,523 | |||||||||||||
Income (loss) from continuing operations
|
(53,918 | ) | (399 | ) | 135,503 | - | 81,186 | |||||||||||||
Loss from discontinued operations
|
- | - | (18,735 | ) | - | (18,735 | ) | |||||||||||||
Equity of net income of subsidiaries
|
116,369 | - | - | (116,369 | ) | - | ||||||||||||||
Net income (loss)
|
$ | 62,451 | $ | (399 | ) | $ | 116,768 | $ | (116,369 | ) | $ | 62,451 |
Non-
|
Consolidating/
|
Omnicare,
|
||||||||||||||||||
Guarantor
|
Guarantor
|
Eliminating
|
Inc. and
|
|||||||||||||||||
As of June 30, 2011 (Unaudited):
|
Parent
|
Subsidiary
|
Subsidiaries
|
Adjustments
|
Subsidiaries
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 467,342 | $ | - | $ | 54,268 | $ | - | $ | 521,610 | ||||||||||
Restricted cash
|
- | - | 2,403 | - | 2,403 | |||||||||||||||
Accounts receivable, net (including intercompany)
|
- | 122 | 1,001,182 | (122 | ) | 1,001,182 | ||||||||||||||
Inventories
|
- | - | 356,597 | - | 356,597 | |||||||||||||||
Deferred income tax benefits, net-current
|
- | - | 157,797 | (603 | ) | 157,194 | ||||||||||||||
Other current assets
|
9,286 | - | 224,147 | - | 233,433 | |||||||||||||||
Current assets of discontinued operations
|
- | - | 2,373 | - | 2,373 | |||||||||||||||
Total current assets
|
476,628 | 122 | 1,798,767 | (725 | ) | 2,274,792 | ||||||||||||||
Properties and equipment, net
|
- | 14 | 201,463 | - | 201,477 | |||||||||||||||
Goodwill
|
- | 19 | 4,250,182 | - | 4,250,201 | |||||||||||||||
Identifiable intangible assets, net
|
- | - | 241,348 | - | 241,348 | |||||||||||||||
Other noncurrent assets
|
43,971 | - | 101,493 | - | 145,464 | |||||||||||||||
Noncurrent assets of discontinued operations
|
- | - | 12,772 | - | 12,772 | |||||||||||||||
Investment in subsidiaries
|
5,582,615 | - | - | (5,582,615 | ) | - | ||||||||||||||
Total assets
|
$ | 6,103,214 | $ | 155 | $ | 6,606,025 | $ | (5,583,340 | ) | $ | 7,126,054 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
Current liabilities - continuing operations
|
||||||||||||||||||||
(including intercompany)
|
$ | 34,250 | $ | 34 | $ | 444,720 | $ | (122 | ) | $ | 478,882 | |||||||||
Current liabilities - discontinued operations
|
- | - | 5,900 | - | 5,900 | |||||||||||||||
Long-term debt, notes and convertible debentures
|
1,943,561 | - | 12,416 | - | 1,955,977 | |||||||||||||||
Deferred income tax liabilities
|
324,903 | - | 459,899 | (603 | ) | 784,199 | ||||||||||||||
Other noncurrent liabilities
|
- | - | 100,596 | - | 100,596 | |||||||||||||||
Stockholders' equity
|
3,800,500 | 121 | 5,582,494 | (5,582,615 | ) | 3,800,500 | ||||||||||||||
Total liabilities and stockholders' equity
|
$ | 6,103,214 | $ | 155 | $ | 6,606,025 | $ | (5,583,340 | ) | $ | 7,126,054 | |||||||||
As of December 31, 2010 (unaudited):
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 460,778 | $ | - | $ | 33,706 | $ | - | $ | 494,484 | ||||||||||
Restricted cash
|
- | - | 2,019 | - | 2,019 | |||||||||||||||
Accounts receivable, net (including intercompany)
|
- | 68 | 1,011,755 | - | 1,011,823 | |||||||||||||||
Inventories
|
- | - | 418,965 | - | 418,965 | |||||||||||||||
Deferred income tax benefits, net-current
|
- | - | 151,084 | (440 | ) | 150,644 | ||||||||||||||
Other current assets
|
538 | - | 332,069 | - | 332,607 | |||||||||||||||
Current assets of discontinued operations
|
- | - | 47,254 | - | 47,254 | |||||||||||||||
Total current assets
|
461,316 | 68 | 1,996,852 | (440 | ) | 2,457,796 | ||||||||||||||
Properties and equipment, net
|
- | 16 | 204,701 | - | 204,717 | |||||||||||||||
Goodwill
|
- | 19 | 4,234,802 | - | 4,234,821 | |||||||||||||||
Identifiable intangible assets, net
|
- | - | 259,809 | - | 259,809 | |||||||||||||||
Other noncurrent assets
|
47,695 | - | 109,246 | - | 156,941 | |||||||||||||||
Noncurrent assets of discontinued operations
|
- | - | 49,329 | - | 49,329 | |||||||||||||||
Investment in subsidiaries
|
5,763,499 | - | - | (5,763,499 | ) | - | ||||||||||||||
Total assets
|
$ | 6,272,510 | $ | 103 | $ | 6,854,739 | $ | (5,763,939 | ) | $ | 7,363,413 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
Current liabilities - continuing operations
|
||||||||||||||||||||
(including intercompany)
|
$ | 36,203 | $ | - | $ | 535,690 | $ | - | $ | 571,893 | ||||||||||
Current liabilities - discontinued operations
|
- | - | 22,361 | - | 22,361 | |||||||||||||||
Long-term debt, notes and convertible debentures
|
2,096,333 | - | 10,425 | - | 2,106,758 | |||||||||||||||
Deferred income tax liabilities
|
319,740 | - | 418,083 | (440 | ) | 737,383 | ||||||||||||||
Other noncurrent liabilities
|
4,290 | - | 104,784 | - | 109,074 | |||||||||||||||
Stockholders' equity
|
3,815,944 | 103 | 5,763,396 | (5,763,499 | ) | 3,815,944 | ||||||||||||||
Total liabilities and stockholders' equity
|
$ | 6,272,510 | $ | 103 | $ | 6,854,739 | $ | (5,763,939 | ) | $ | 7,363,413 |
Six months ended June 30,
|
||||||||||||||||
Non-
|
Omnicare,
|
|||||||||||||||
Guarantor
|
Guarantor
|
Inc. and
|
||||||||||||||
2011:
|
Parent
|
Subsidiary
|
Subsidiaries
|
Subsidiaries
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net cash flows (used in) from operating activities
|
$ | (52,090 | ) | $ | - | $ | 333,385 | $ | 281,295 | |||||||
Cash flows from investing activities:
|
||||||||||||||||
Acquisition of businesses, net of cash received
|
- | - | (19,521 | ) | (19,521 | ) | ||||||||||
Divestiture of businesses, net
|
- | - | 10,599 | 10,599 | ||||||||||||
Capital expenditures
|
- | - | (18,223 | ) | (18,223 | ) | ||||||||||
Other
|
- | - | (2,929 | ) | (2,929 | ) | ||||||||||
Net cash flows used in investing activities
|
- | - | (30,074 | ) | (30,074 | ) | ||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Payments on long-term borrowings and obligations
|
(175,664 | ) | - | - | (175,664 | ) | ||||||||||
Increase (decrease) in cash overdraft balance
|
(2,546 | ) | - | 6,959 | 4,413 | |||||||||||
Payments for Omnicare common stock repurchase
|
(70,061 | ) | - | - | (70,061 | ) | ||||||||||
Dividends paid
|
(8,258 | ) | - | - | (8,258 | ) | ||||||||||
Other
|
315,183 | - | (289,701 | ) | 25,482 | |||||||||||
Net cash flows from (used in) financing activities
|
58,654 | - | (282,742 | ) | (224,088 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents
|
6,564 | - | 20,569 | 27,133 | ||||||||||||
Less increase in cash and cash equivalents of
|
- | |||||||||||||||
discontinued operations
|
- | - | 7 | 7 | ||||||||||||
Increase (decrease) in cash and cash equivalents of
|
||||||||||||||||
continuing operations
|
6,564 | - | 20,562 | 27,126 | ||||||||||||
Cash and cash equivalents at beginning of period
|
460,778 | - | 33,706 | 494,484 | ||||||||||||
Cash and cash equivalents at end of period
|
$ | 467,342 | $ | - | $ | 54,268 | $ | 521,610 | ||||||||
2010:
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net cash flows (used in) from operating activities
|
$ | (54,151 | ) | $ | - | $ | 207,728 | $ | 153,577 | |||||||
Cash flows from investing activities:
|
||||||||||||||||
Acquisition of businesses, net of cash received
|
- | - | (11,855 | ) | (11,855 | ) | ||||||||||
Capital expenditures
|
- | - | (11,489 | ) | (11,489 | ) | ||||||||||
Other
|
- | - | 9,744 | 9,744 | ||||||||||||
Net cash flows used in investing activities
|
- | - | (13,600 | ) | (13,600 | ) | ||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Net payments on revolving credit facilities and Term A loan
|
(125,000 | ) | - | - | (125,000 | ) | ||||||||||
Proceeds from long-term borrowings and obligaitons
|
400,000 | - | - | 400,000 | ||||||||||||
Payments on long-term borrowings and obligations
|
(218,478 | ) | - | - | (218,478 | ) | ||||||||||
Fees paid for financing arrangements
|
(17,028 | ) | - | - | (17,028 | ) | ||||||||||
Increase in cash overdraft balance
|
5,067 | - | (1,940 | ) | 3,127 | |||||||||||
Payments for Omnicare common stock repurchase
|
(49,154 | ) | - | - | (49,154 | ) | ||||||||||
Dividends paid
|
(5,343 | ) | - | - | (5,343 | ) | ||||||||||
Other
|
189,131 | - | (197,638 | ) | (8,507 | ) | ||||||||||
Net cash flows from (used in) financing activities
|
179,195 | - | (199,578 | ) | (20,383 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents
|
125,044 | - | (5,450 | ) | 119,594 | |||||||||||
Less increase in cash and cash equivalents of
|
||||||||||||||||
discontinued operations
|
- | - | 393 | 393 | ||||||||||||
Increase (decrease) in cash and cash equivalents of
|
||||||||||||||||
continuing operations
|
125,044 | - | (5,843 | ) | 119,201 | |||||||||||
Cash and cash equivalents at beginning of period
|
230,866 | - | 44,841 | 275,707 | ||||||||||||
Cash and cash equivalents at end of period
|
$ | 355,910 | $ | - | $ | 38,998 | $ | 394,908 |
Three months ended,
|
Six months ended,
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net sales
|
$ | 1,555,906 | $ | 1,491,425 | $ | 3,081,477 | $ | 2,983,796 | ||||||||
Gross profit
|
336,393 | 327,255 | 671,353 | 668,599 | ||||||||||||
Selling, general and administrative expenses
|
192,474 | 185,919 | 382,641 | 368,690 | ||||||||||||
Provision for doubtful accounts
|
24,357 | 20,986 | 48,887 | 42,928 | ||||||||||||
Investment income
|
255 | 1,105 | 551 | 2,769 | ||||||||||||
Interest expense
|
(27,996 | ) | (39,712 | ) | (56,801 | ) | (68,320 | ) | ||||||||
Effective income tax rate
|
43.0 | % | 40.1 | % | 39.7 | % | 37.9 | % | ||||||||
Income from continuing operations
|
$ | 36,281 | $ | 23,745 | $ | 85,436 | $ | 81,186 | ||||||||
Discontinued operations
|
(37,728 | ) | (12,146 | ) | (57,579 | ) | (18,735 | ) | ||||||||
Net income (loss)
|
$ | (1,447 | ) | $ | 11,599 | $ | 27,857 | $ | 62,451 | |||||||
Earnings (loss) per common share - Basic:(a)
|
||||||||||||||||
Continuing operations
|
$ | 0.32 | $ | 0.20 | $ | 0.75 | $ | 0.69 | ||||||||
Discontinued operations
|
(0.33 | ) | (0.10 | ) | (0.51 | ) | (0.16 | ) | ||||||||
Net income (loss)
|
$ | (0.01 | ) | $ | 0.10 | $ | 0.24 | $ | 0.53 | |||||||
Earnings (loss) per common share - Diluted:(a)
|
||||||||||||||||
Continuing operations
|
$ | 0.32 | $ | 0.20 | $ | 0.74 | $ | 0.69 | ||||||||
Discontinued operations
|
(0.33 | ) | (0.10 | ) | (0.50 | ) | (0.16 | ) | ||||||||
Net income (loss)
|
$ | (0.01 | ) | $ | 0.10 | $ | 0.24 | $ | 0.53 | |||||||
EBITDA from continuing operations(b)
|
$ | 124,180 | $ | 110,696 | $ | 262,478 | $ | 264,160 | ||||||||
EBITDA from continuing operations reconciliation to net cash flows from operating activities:
|
||||||||||||||||
EBITDA from continuing operations(b)
|
$ | 124,180 | $ | 110,696 | $ | 262,478 | $ | 264,160 | ||||||||
(Subtract)/Add:
|
||||||||||||||||
Interest expense, net of investment income
|
(27,741 | ) | (38,607 | ) | (56,250 | ) | (65,551 | ) | ||||||||
Income tax provision
|
(27,403 | ) | (15,879 | ) | (56,227 | ) | (49,523 | ) | ||||||||
Debt redemption costs, net
|
(187 | ) | 2,060 | (1,266 | ) | 2,060 | ||||||||||
Tender premium
|
- | (7,323 | ) | - | (7,323 | ) | ||||||||||
Changes in assets and liabilities, net of effects
|
||||||||||||||||
from acquisition and divestitures of businesses
|
68,097 | (15,690 | ) | 132,140 | 9,126 | |||||||||||
Net cash flows from operating activities
|
||||||||||||||||
of continuing operations
|
136,946 | 35,257 | 280,875 | 152,949 | ||||||||||||
Net cash flows from operating activities
|
||||||||||||||||
of discontinued operations
|
(26 | ) | 303 | 420 | 628 | |||||||||||
Net cash flows from operating activities
|
$ | 136,920 | $ | 35,560 | $ | 281,295 | $ | 153,577 |
(a)
|
Earnings (loss) per share is reported independently for each amount presented. Accordingly, the sum of the individual amounts may not necessarily equal the separately calculated amounts for the corresponding period.
|
(b)
|
“EBITDA” from continuing operations represents earnings before interest (net of investment income), income taxes, depreciation and amortization. Omnicare uses EBITDA primarily as an indicator of the Company’s ability to service its debt, and believes that certain investors find EBITDA to be a useful financial measure for the same purpose. However, EBITDA does not represent net cash flows from operating activities, as defined by U.S. GAAP, and should not be considered as a substitute for operating cash flows as a measure of liquidity. The Company’s calculation of EBITDA may differ from the calculation of EBITDA by others.
|
Three months ended,
|
Six months ended,
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Settlement, litigation and other related charges (i)
|
$ | 19,816 | $ | 29,361 | $ | 25,829 | $ | 34,867 | ||||||||
Other miscellaneous charges, net (ii)
|
2,332 | 5,751 | 4,221 | 11,959 | ||||||||||||
Amortization of discount on convertible notes (iii)
|
5,989 | 7,473 | 11,862 | 14,804 | ||||||||||||
Debt redemption costs (iii)
|
- | 9,384 | 1,079 | 9,384 | ||||||||||||
Total
|
$ | 28,137 | $ | 51,969 | $ | 42,991 | $ | 71,014 |
(i)
|
See further discussion at the “Commitments and Contingencies” note of the Notes to Consolidated Financial Statements.
|
(ii)
|
See further discussion at the “Other Miscellaneous Charges” caption of the “Significant Accounting Policies” note of the Notes to Consolidated Financial Statements.
|
(iii)
|
See further discussion at the “Debt” note of the Notes to Consolidated Financial Statements.
|
Total
|
Less Than 1 Year
|
1-3 Years
|
4-5 Years
|
After 5 Years
|
||||||||||||||||
Debt obligations
|
$ | 2,372,500 | $ | - | $ | 75,000 | $ | 525,000 | $ | 1,772,500 | ||||||||||
Capital lease obligations
|
15,919 | 3,503 | 8,472 | 3,944 | - | |||||||||||||||
Operating lease obligations
|
125,099 | 29,397 | 50,613 | 29,008 | 16,081 | |||||||||||||||
Purchase obligations
|
38,631 | 33,311 | 5,320 | - | - | |||||||||||||||
Other current obligations
|
233,644 | 233,644 | - | - | - | |||||||||||||||
Other long-term obligations
|
100,596 | - | 67,744 | 20,408 | 12,444 | |||||||||||||||
Subtotal
|
2,886,389 | 299,855 | 207,149 | 578,360 | 1,801,025 | |||||||||||||||
Future interest costs relating to debt
|
||||||||||||||||||||
and capital lease obligations
|
1,298,455 | 108,621 | 211,686 | 187,165 | 790,983 | |||||||||||||||
Total contractual cash obligations (a)
|
$ | 4,184,844 | $ | 408,476 | $ | 418,835 | $ | 765,525 | $ | 2,592,008 |
(a)
|
In addition, the Company has contractual cash obligations of approximately $1.2 million related to discontinued operations at June 30, 2011, primarily related to operating lease obligations.
|
Period
|
Total Number of Shares Purchased(a)
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(b)
|
||||||||||||
April 1 - 30, 2011
|
3 | $ | 31.99 | - | $ | 68,426 | ||||||||||
May 1 - 31, 2011
|
720 | 31.65 | 700 | 146,276 | ||||||||||||
June 1 - 30, 2011
|
550 | 31.42 | 550 | 128,997 | ||||||||||||
Total
|
1,273 | $ | 31.52 | 1,250 | $ | 128,997 | ||||||||||
(a) During the second quarter of 2011, the Company purchased 23 shares of Omnicare common stock in connection with its employee benefit plans, including any purchases associated with the vesting of restricted stock awards. These purchases were not made pursuant to a publicly announced repurchase plan or program.
|
||||||||||||||||
(b) On May 3, 2010, Omnicare announced that the Company’s Board of Directors (“BOD”) authorized a two-year program to repurchase, from time to time, shares of Omnicare’s outstanding common stock having an aggregate value of up to $200 million. On May 26, 2011, the BOD approved an additional $100 million of share repurchase authorization extending until December 31, 2012. In the six months ended June 30, 2011, the Company repurchased approximately 2.3 million shares at an aggregate cost of approximately $70 million, for a cumulative amount of approximately 6.7 million shares and approximately $171 million through June 30, 2011. Accordingly, the Company had approximately $129 million of combined share repurchase authority remaining as of June 30, 2011.
|
Date: July 26, 2011
|
By:
|
/s/ John L. Workman
|
John L. Workman
|
||
President and
|
||
Chief Financial Officer
|
||
(Principal Financial and
|
||
Accounting Officer)
|
Number and Description of Exhibit
(Numbers Coincide with Item 601 of Regulation S-K)
|
Document Incorporated by Reference from a Previous Filing, Filed Herewith or Furnished Herewith, as Indicated Below
|
|||
(3.1)
|
Restated Certificate of Incorporation of Omnicare, Inc. (as amended)
|
Form 10-K
March 27, 2003
|
||
(3.2)
|
Fourth Amended and Restated By-Laws of Omnicare, Inc.
|
Form 8-K
February 22, 2011
|
||
(12)
|
Statement of Computation of Ratio of Earnings to Fixed Charges
|
Filed Herewith
|
||
(31.1)
|
Rule 13a-14(a) Certification of Chief Executive Officer of Omnicare, Inc. in accordance with Section 302 of the Sarbanes-Oxley Act of 2002
|
Filed Herewith
|
||
(31.2)
|
Rule 13a-14(a) Certification of Chief Financial Officer of Omnicare, Inc. in accordance with Section 302 of the Sarbanes-Oxley Act of 2002
|
Filed Herewith
|
||
(32.1)
|
Section 1350 Certification of Chief Executive Officer of Omnicare, Inc. in accordance with Section 906 of the Sarbanes-Oxley Act of 2002*
|
Furnished Herewith
|
||
(32.2)
|
Section 1350 Certification of Chief Financial Officer of Omnicare, Inc. in accordance with Section 906 of the Sarbanes-Oxley Act of 2002*
|
Furnished Herewith
|
||
(101)
|
The following materials from the Omnicare, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Statements of Income, (ii) the Consolidated Balance Sheets, (iii) the Consolidated Statement of Cash Flows and (iv) the Notes to Consolidated Financial Statements
|
As provided in Rule 406T of Regulation S-T, this information is furnished herewith and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934
|
Statement of Computation of Ratio of Earnings to Fixed Charges
|
||||||||||||||||
Omnicare, Inc. and Subsidiary Companies
|
||||||||||||||||
(in thousands, except ratios)
|
||||||||||||||||
Unaudited
|
||||||||||||||||
Three months ended,
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Income from continuing operations before income taxes
|
$ | 63,684 | (1) | $ | 39,624 | (1) | $ | 141,663 | (1) | $ | 130,709 | (1) | ||||
Add fixed charges:
|
||||||||||||||||
Interest expense
|
26,593 | 26,871 | 52,901 | 54,238 | ||||||||||||
Amortization of discount on convertible notes (3)
|
5,989 | 7,473 | 11,862 | 14,804 | ||||||||||||
Amortization of debt issuance expense
|
1,403 | 3,457 | 2,821 | 4,698 | ||||||||||||
Interest expense-special items
|
- | 9,384 | 1,079 | 9,384 | ||||||||||||
Interest portion of rent expense
|
4,786 | 5,103 | 10,155 | 10,434 | ||||||||||||
Adjusted income
|
$ | 102,455 | $ | 91,912 | $ | 220,481 | $ | 224,267 | ||||||||
Fixed charges:
|
||||||||||||||||
Interest expense
|
$ | 26,593 | $ | 26,871 | $ | 52,901 | $ | 54,238 | ||||||||
Amortization of discount on convertible notes (3)
|
5,989 | 7,473 | 11,862 | 14,804 | ||||||||||||
Amortization of debt issuance expense
|
1,403 | 3,457 | 2,821 | 4,698 | ||||||||||||
Interest expense-special items
|
- | 9,384 | 1,079 | 9,384 | ||||||||||||
Interest portion of rent expense
|
4,786 | 5,103 | 10,155 | 10,434 | ||||||||||||
Fixed charges
|
$ | 38,771 | $ | 52,288 | $ | 78,818 | $ | 93,558 | ||||||||
Ratio of earnings to fixed charges(2)
|
2.6 | x | 1.8 | x | 2.8 | x | 2.4 | x |
Three months ended,
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Settlements, litigation and other related charges (a)
|
19,816 | 29,361 | 25,829 | 34,867 | ||||||||||||
Other miscellaneous charges (b)
|
2,332 | 5,751 | 4,221 | 11,959 | ||||||||||||
Total - non-interest expense special items
|
$ | 22,148 | $ | 35,112 | $ | 30,050 | $ | 46,826 | ||||||||
Interest expense special items (c)
|
$ | - | $ | 9,384 | $ | 1,079 | $ | 9,384 | ||||||||
(a) See the "Commitments and Contingencies" note of the Notes to the Consolidated Financial Statements.
|
||||||||||||||||
(b) See further discussion at the “Other Miscellaneous Charges” caption of the “Significant Accounting Policies” note of the Notes to Consolidated Financial Statements.
|
||||||||||||||||
(c) See the "Debt" note of the Notes to the Consolidated Financial Statements.
|
1.
|
I have reviewed this report on Form 10-Q of the Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
Date: July 26, 2011
|
||
By:
|
/s/ John G. Figueroa
|
|
John G. Figueroa
|
||
Chief Executive Officer
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have;
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
Date: July 26, 2011
|
||
By:
|
/s/ John L. Workman
|
|
John L. Workman
|
||
President and
|
||
Chief Financial Officer
|
|
1.
|
The Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2011 (the “Periodic Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
|
2.
|
The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: July 26, 2011
|
||
By:
|
/s/ John G. Figueroa
|
|
John G. Figueroa
|
||
Chief Executive Officer
|
||
|
1.
|
The Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2011 (the “Periodic Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
|
2.
|
The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: July 26, 2011
|
||
By:
|
/s/ John L. Workman
|
|
John L. Workman
|
||
President and
|
||
Chief Financial Officer
|