), which sells drugs to long-term care facilities and nursing
homes, reported fourth quarter and fiscal 2011 adjusted (excluding
one-time expenses) earnings per share of 58 cents and $2.13,
respectively, beating the corresponding Zacks Consensus Estimates
of 56 cents and $2.12.
Reported net income from continuing operations, for the quarter,
was $38.3 million (or 34 cents per share) compared with a loss of
$57.1 million (or 50 cents per share) in the year-ago quarter.
The company earned $31.2 million (or 27 cents per share), in the
reported quarter compared with a loss of $65.3 million (or 57 cents
per share), a year earlier, after taking into account extraordinary
The results for the fourth quarter include the effect of special
items amounting to about $38.7 million on a pre-tax basis compared
with $167.2 million a year ago.
Sales were $1,557.1 million in the fourth quarter, up 1.7% year
over year, sailing past the Zacks Consensus Estimate of $1,524
million. Revenues were $6,182.9 million in fiscal 2011, up 2.5%
year over year, beating the Zacks Consensus Estimate of $6,030.7
By segment, net sales of the Long Term Care Group were $5,124
million in fiscal 2011, down 1% year over year. Net sales of the
Specialty Care Group were $1,044.2 million, up 24.5%.
Adjusted gross profit was $359.7 million in the fourth quarter,
up 7.6% year over year. Adjusted EBITDA from continuing operations
stood at $162.9 million, up 10.4% year over year.
Balance Sheet, Cash Flow and Other
Omnicare had cash and cash equivalents of $582.6 million, as of
December 31, 2011, up 17.3% year over year. Long-term debt
(including notes and convertible debentures) was large at almost $2
billion, down 6.6% on a year-over-year basis. Total debt-to-capital
ratio, as of December 31, 2011, was 34.5%, down about 110 basis
points since December 31, 2010.
The company recorded $101 million in cash flows (from continuing
operations) in the fourth quarter taking its total, for fiscal
2011, to $549 million, the highest in the history of the
Omnicare repurchased about 0.7 million shares in the fourth
quarter for $20 million. The company had $58.9 million available
under its recent share repurchase authorization.
Omnicare anticipates revenues, for fiscal 2012, between $6.1
billion and $6.2 billion. It expects adjusted earnings per share in
a range of $3.10 to $3.20. The company forecasts operating cash
flows (from continuing operations) in the range of $400 million to
Omnicare is a market leader in providing pharmaceutical care for
the elderly. The industry is essential to serving the needs of the
long-term care population. It competes with
) in certain niche segments.
The company has cut down costs and increased efficiency through
its Full Potential Plan. However, the beneficial effects are partly
offset by pressure from reimbursement cuts. Over the long term,
Omnicare will be able to offset some of these reimbursement cuts
through better purchasing. Generics coming to market in the next
few quarters present a major profitability opportunity due to
Omnicare's greater exposure to the institutional pharmacy channel
than in past years.
OMNICARE INC (
): Free Stock Analysis Report
PHARMERICA CORP (
): Free Stock Analysis Report
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