EX-99.1 2 exhibit99_1.htm EXHIBIT 99.1 exhibit99_1.htm
Exhibit 99.1

ITEM 6. - SELECTED FINANCIAL DATA

The following table summarizes certain selected financial data and should be read in conjunction with our consolidated financial statements and related notes thereto and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included at Exhibit 99.3 and Exhibit 99.2.  All amounts disclosed herein relate to the Company’s continuing operations unless otherwise stated.


Five-Year Summary of Selected Financial Data
                              
Omnicare, Inc. and Subsidiary Companies
                              
(in thousands, except per share data)
                              
   
For the years ended and at December 31,
  
   
2010 (a)
    
2009 (a)
    
2008 (a)
    
2007 (a)
    
2006 (a)
  
INCOME STATEMENT DATA:(b)
                              
Net sales
   $ 6,030,670     $ 6,001,053     $ 5,992,450     $ 5,894,572     $ 6,183,690  
                                         
Income from continuing operations
   $ 14,464     $ 234,695     $ 131,301     $ 91,016     $ 163,393  
Discontinued operations
     (120,573 )     (22,772 )     9,172       8,589       6,825  
Net income (loss)
   $ (106,109 )   $ 211,923     $ 140,473     $ 99,605     $ 170,218  
                                         
Earnings (loss) per common share data - Basic (c):
                                        
Continuing operations
   $ 0.12     $ 2.00     $ 1.12     $ 0.76     $ 1.38  
Discontinued operations
     (1.04 )     (0.19 )     0.08       0.07       0.06  
Net income
   $ (0.91 )   $ 1.81     $ 1.20     $ 0.83     $ 1.44  
                                         
Earnings (loss) per common share data - Diluted (c):
                                        
Continuing operations
   $ 0.13     $ 2.00     $ 1.11     $ 0.75     $ 1.34  
Discontinued operations
     (1.03 )     (0.19 )     0.08       0.07       0.06  
Net income
   $ (0.91 )   $ 1.80     $ 1.19     $ 0.82     $ 1.39  
                                         
Dividends per common share
   $ 0.11     $ 0.09     $ 0.09     $ 0.09     $ 0.09  
                                         
Weighted average number of common shares outstanding:
                                        
Basic
     116,348       117,094       117,466       119,380       118,480  
Diluted
     116,927       117,777       118,313       121,258       122,536  
                                         
                                         
BALANCE SHEET DATA (at end of period):
                                        
Cash and cash equivalents
   $ 494,484     $ 275,707     $ 214,666     $ 274,200     $ 137,631  
Working capital (current assets less current liabilities)
     1,863,542       1,601,790       1,731,225       1,803,990       1,872,427  
Goodwill
     4,234,821       4,152,255       4,091,971       4,179,192       4,063,313  
Total assets
     7,363,413       7,324,104       7,450,245       7,583,370       7,387,126  
Long-term debt (excluding current portion), net of swaps (d)
     2,106,758       1,980,239       2,352,822       2,416,113       2,525,030  
Stockholders' equity (d)
     3,815,944       3,875,993       3,654,869       3,540,823       3,427,022  
                                         
OTHER FINANCIAL DATA:
                                        
Net cash flows from operating activities of continuing operations
   $ 368,903     $ 480,715     $ 433,589     $ 500,007     $ 110,069  
EBITDA from continuing operations(e)
     310,164       579,456       489,026       432,519       580,589  
Net cash flows used by investing activities of continuing operations
     (125,506 )     (142,646 )     (281,221 )     (192,603 )     (124,814 )
Capital expenditures(f)
     (23,517 )     (29,231 )     (57,041 )     (40,985 )     (29,193 )
Net cash flows from financing activities of continuing operations
     (18,652 )     (275,929 )     (208,706 )     (173,747 )     (59,638 )

See the related notes to Five-Year Summary of Selected Financial Data on the following pages.
 
 
 
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(a)
Certain amounts for all periods presented have been recast to present the Company’s Contract Research Services business (“CRO Services”) and Tidewater Group Purchasing Organization (“Tidewater”) as discontinued operations.  See the “Description of Business and Summary of Significant Accounting Policies” note of the Notes to Consolidated Financial Statements in Exhibit 99.3 of this filing.

(b)
The following aftertax charges are included in net income for the years ended December 31 (in thousands):
 

 
   
2010
    
2009
    
2008
    
2007
    
2006
  
Restructuring and other related charges
   $ 11,257     $ 11,439     $ 20,870     $ 15,643     $ 17,010  
Settlement, litigation and other related charges
     85,016       53,589       68,724       26,380       100,507  
Goodwill and other asset impairment charges
     13,900       -       -       -       -  
Separation, employee benefit plan termination and related costs
     40,553       -       -       -       -  
Amortization of discount on convertible notes
     18,495       17,309       16,220       15,037       13,940  
Provision for doubtful accounts
     30,371       -       -       -       -  
Debt redemption loss and costs - total
     26,077       -       -       -       -  
Other expense
     7,182       3,646       3,940       10,669       25,150  
       Total
   $ 232,851     $ 85,983     $ 109,754     $ 67,729     $ 156,607  
                                         
Total tax impact (1)
   $ 116,816     $ 45,150     $ 55,981     $ 41,137     $ 57,853  
                                         
For the 2010, 2009 and 2008 years data above, see the respective note at Exhibit 99.3 of this Filing. For the 2007 and 2006 years data, see that year's
  
consolidated financial statements for additional information on the nature of these charges.
                          
                                         
(1) The tax effect was calculated by multiplying the tax-deductible pretax amounts by the appropriate effective tax rate.
                  

(c)
Earnings per share for continuing operations, discontinued operations and net income are 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.
(d)  
In the second quarter of 2010, the Company completed its offering of $400 million aggregate principal amount of 7.75% senior subordinated notes due 2020 (the “7.75% Notes”).  A portion of the net proceeds from the issuance of the 7.75% Notes was used to purchase all $225 million of the Company’s 6.75% Senior Subordinated Notes due 2013 (the “6.75% Notes”).  In the fourth quarter of 2010, the Company completed its offering of $575 million of aggregate principal amount of 3.75% Convertible Senior Subordinated Notes due 2025 (the “3.75% Convertible Notes”).  A portion of the net proceeds were used to purchase $525 million of the Company’s 3.25% Convertible Debentures.  See the “Debt” note of the Notes to Consolidated Financial Statements in Exhibit 99.3, of this Filing for further information on these transactions.
(e)  
“EBITDA” 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 United States Generally Accepted Accounting Principles (“U.S. GAAP”), and should not be considered as a substitute for operating cash flows as a measure of liquidity.  Omnicare’s calculation of EBITDA may differ from the calculation of EBITDA by others.  The following is a reconciliation of EBITDA to net cash flows from operating activities for the years ended December 31 (in thousands):

 
 
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2010
    
2009
    
2008
    
2007
    
2006
  
EBITDA from continuing operations
   $ 310,164     $ 579,456     $ 489,026     $ 432,519     $ 580,589  
(Subtract)/add:
                                        
Interest expense, net of
                                        
  investment income
     (126,110 )     (110,223 )     (133,269 )     (154,351 )     (158,700 )
Income tax provision
     (19,044 )     (96,856 )     (88,309 )     (57,888 )     (125,433 )
Write-off of debt issuance costs
     6,636       -       -       -       -  
Debt redemption tender offer premiums
     (7,591 )     -       -       -       -  
Goodwill and other asset impairment charges
     22,884       -       -       -       -  
Benefit plan termination and related costs
     25,187       -       -       -       -  
Loss on debt extinguishment
     25,552       -       -       -       -  
Changes in assets and liabilities, net of effects from acquisition and divestiture of businesses
     108,273       17,680       110,100       249,809       (259,822 )
Deferred tax provision
     22,952       90,658       56,041       29,918       73,435  
Net cash flows from operating activities of continuing operations
     368,903       480,715       433,589       500,007       110,069  
                                         
Net cash flows from operating activities of discontinued operations
     (288 )     3,079       4,608       5,522       (1,549 )
Net cash flows from operating activities
   $ 368,615     $ 483,794     $ 438,197     $ 505,529     $ 108,520  

(f)  
Primarily represents the purchase of computer equipment and software; machinery and equipment; and furniture, fixtures and leasehold improvements.
 
 
 
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