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Nasdaq:ESRX
Express
Scripts, Inc. is a pharmacy benefit management (PBM) company in North America.
The Company provides a range of services to its clients, which include
health maintenance organizations (HMOs), health insurers, third-party administrators,
employers, union-sponsored benefit plans, workers’ compensation plans and
government health programs. The Company operates in two segments: Pharmacy
Benefit Management Services (PBM) and Specialty and Ancillary Services
(SAAS). Its PBM services include retail network pharmacy management; retail
drug card programs; home delivery pharmacy services; benefit design consultation;
drug utilization review; drug formulary management programs, and compliance
and therapy management programs for its clients. On June 30, 2008, the
Company completed the sale of CuraScript Infusion Pharmacy, Inc. On July
22, 2008, it completed the acquisition of the Pharmacy Services Division
of Medical Services Company.
http://www.express-scripts.com/
Express
Scripts Reports Strong Third Quarter Earnings
2009
Earnings Guidance Increased
ST.
LOUIS, Oct. 28 /PRNewswire-FirstCall/ -- Express Scripts, Inc. (Nasdaq:
ESRX) announced third quarter net income from continuing operations of
$196.9 million, or $0.71 per diluted share. Excluding non-recurring items
in the quarter, including a legal settlement and items related to the previously
announced acquisition of WellPoint's pharmacy benefit management business
("NextRx"), earnings was $0.81 per diluted share. These earnings for the
quarter include $0.18 per share of dilution related to the pre-close debt
and equity issuances which were completed in the second quarter of 2009.
Excluding all aforementioned items, the Company had earnings of $0.99,
which compares to third quarter 2008 results of $0.81, a 22% increase.
"Our
third quarter results reflect an unwavering commitment to our business
model of alignment. Our world-class clinical offerings enabled by our unique
behavior centric approach, provides a value proposition unmatched in the
marketplace," stated George Paz, president, chief executive officer and
chairman. "Our results are a testament to our ability to provide plan sponsors
and patients a pharmacy benefit that optimizes health outcomes while driving
out waste."
Third
Quarter 2009 Highlights (2009 data reflected on an adjusted basis. See
Table 2)
-- Total adjusted claims of 126.3 million, up 2% from 2008
-- Gross profit increased 18% from 2008
-- EBITDA per adjusted claim was $3.38, an increase of 18% from 2008
-- Record cash flow from continuing operations of $395.3 million,
up 62%
from 2008
Guidance
The
Company previously provided 2009 earnings per diluted share guidance in
a range of $3.72 to $3.82, which excluded any impact related to the NextRx
transaction. Due to strong underlying fundamentals in the core business,
the Company now believes 2009 earnings on the same basis will be in a range
of $3.76 to $3.82, representing 21% to 23% growth over 2008.
The
following factors are not reflected in the guidance range above:
-- NextRx results post-close
-- 2009 financing costs related to the NextRx transaction of $0.41
per
diluted share
-- Estimated net non-recurring items for the year, mainly pertaining
to the
NextRx transaction, in a range of $0.36 to $0.38 per diluted share
The
Company anticipates closing the NextRx transaction in the next four to
six weeks. As previously stated, the Company expects the transaction will
be moderately accretive, excluding amortization costs, in 2010; however
the Company will provide full 2010 guidance with its fourth quarter earnings
release.
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