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CAH · CARDINAL HEALTH INC

35 filings

10-K

CAH 10-K Annual Reports

CARDINAL HEALTH INC - 35 annual reports

Filing record · 2016–202610-K1110-Q328-K120

2026
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2026
Cardinal Health Inc. reported strong fiscal year 2026 results, demonstrating significant revenue growth and improved profitability. Total revenue increased by 14% to $254.2 billion, driven by robust performance in the Pharmaceutical and Specialty Solutions (Pharma) segment, which saw a 15% revenue increase. The Global Medical Products and Distribution (GMPD) segment experienced a more modest 1% revenue increase, while the Other segments collectively grew by 26% due to acquisitions in at-Home Solutions and expansion in Nuclear and Precision Health Solutions. Non-GAAP operating earnings saw a substantial 30% increase, reaching $3.6 billion, and non-GAAP diluted EPS grew by 37% to $11.26. This growth was underpinned by contributions from branded and specialty pharmaceuticals, the generics program, and strategic acquisitions like Solaris Health and Advanced Diabetes Supply Group (ADS). The company also managed a significant goodwill impairment of $184 million related to its Navista & ION reporting unit, impacting GAAP operating earnings but offset by increased non-GAAP performance. Operationally, Cardinal Health continued to strengthen its balance sheet, with cash and equivalents increasing to $4.9 billion. The company deployed substantial capital in fiscal 2026, investing $1.9 billion in the Solaris Health acquisition and $1.4 billion in share repurchases, alongside returning capital to shareholders through dividends. Despite increased interest expenses related to new debt financing, the company maintained compliance with its leverage covenants. The company also addressed ongoing litigation, including opioid settlements, and managed various regulatory and tariff-related dynamics. Looking ahead, Cardinal Health is focused on integrating its acquisitions and further optimizing its operations, while navigating a dynamic industry landscape.
Aug 11, 2026
2025
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2025
Cardinal Health, Inc. reported a decline in total revenue for fiscal year 2025 to $222.6 billion, a 2% decrease attributed primarily to the expiration of significant contracts with OptumRx. Despite the revenue dip, both GAAP and non-GAAP operating earnings saw substantial increases, with GAAP operating earnings up 83% to $2.3 billion and non-GAAP operating earnings rising 15% to $2.8 billion. This improvement was driven by strong performance in branded and specialty pharmaceuticals, as well as contributions from recent strategic acquisitions, including those in the managed services organization (MSO) space and in-home solutions. The company actively deployed capital in fiscal 2025, with $5.3 billion allocated to acquisitions, $765 million for share repurchases, and $400 million for debt repayment. Additionally, Cardinal Health returned $494 million to shareholders through dividends. Significant acquisitions like GI Alliance, Integrated Oncology Network, and Advanced Diabetes Supply Group are expected to contribute to future growth, although they also increased amortization and acquisition-related costs. The company maintained a strong liquidity position with $3.9 billion in cash and equivalents at the end of the fiscal year.
Aug 12, 2025
2024
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2024
Cardinal Health, Inc. reported strong revenue growth of 11% to $226.8 billion for fiscal year 2024, driven primarily by its Pharmaceutical and Specialty Solutions segment. Despite this top-line expansion, the company experienced a significant goodwill impairment charge of $675 million related to its Global Medical Products and Distribution (GMPD) segment, which fully impaired the goodwill for that segment. Non-GAAP diluted EPS showed substantial growth, increasing by 29% to $7.53, reflecting improved operational performance excluding these non-recurring charges. The company also announced the expiration of its pharmaceutical distribution contracts with OptumRx at the end of June 2024, which is expected to negatively impact fiscal 2025 results. However, the recent acquisition of Specialty Networks for $1.2 billion is anticipated to bolster the Pharmaceutical and Specialty Solutions segment. Cardinal Health maintained its focus on capital deployment, returning capital to shareholders through share repurchases and dividends, while managing its debt obligations and accruing significant reserves for opioid-related litigation.
Aug 14, 2024
2023
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2023
Cardinal Health, Inc. reported a significant increase in revenue for fiscal year 2023, reaching $205.0 billion, driven primarily by its Pharmaceutical segment. The company's consolidated GAAP operating earnings improved to $727 million from a loss of $596 million in the prior year, largely benefiting from litigation recoveries. On a non-GAAP basis, operating earnings increased by 3% to $2.1 billion, reflecting growth in the Pharmaceutical segment's profit, partially offset by a decline in the Medical segment's profit. The company faced challenges in its Medical segment, which saw a 5% decrease in revenue due to lower volumes and unfavorable product mix, compounded by ongoing inflationary impacts. Significant goodwill impairment charges totaling $1.2 billion were recognized in the Medical segment during fiscal 2023, following a $2.1 billion charge in fiscal 2022, reflecting revised long-term financial plan assumptions. The company continues to manage substantial long-term liabilities, including a significant accrual for opioid litigation, with payments expected through 2038. Financially, Cardinal Health returned $2.0 billion to shareholders through share repurchases and paid $525 million in dividends in fiscal 2023. The company maintained a strong liquidity position, with cash and equivalents of $4.0 billion at year-end. Looking ahead, the company expects continued inflationary impacts in the Medical segment, albeit at a reduced level, and anticipates sales growth in its branded medical products.
Aug 15, 2023
2022
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2022
Cardinal Health, Inc. reported total revenue of $181.4 billion for fiscal year 2022, representing a 12% increase from the prior year, primarily driven by growth in its Pharmaceutical segment. Despite revenue growth, the company incurred a GAAP operating loss of $596 million, largely due to a significant $2.1 billion pre-tax goodwill impairment charge related to its Medical segment. The non-GAAP operating earnings decreased by 12% to $2.0 billion, primarily impacted by inflationary pressures and supply chain constraints in the Medical segment. A substantial development during the year was the effective date of the National Settlement for opioid lawsuits, involving up to approximately $6.0 billion in payments over 18 years. The company's liquidity remains strong, with cash and equivalents increasing to $4.7 billion, supported by operating activities and the divestiture of the Cordis business.
Aug 11, 2022
2021
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2021
Cardinal Health, Inc. reported total revenue of $162.5 billion for fiscal year 2021, marking a 6% increase over the prior year. This growth was primarily driven by the Pharmaceutical segment, which saw increased sales from pharmaceutical distribution and specialty solutions. The company's GAAP operating earnings significantly improved from a loss of $4.1 billion in fiscal 2020 to earnings of $472 million in fiscal 2021. However, this turnaround was heavily influenced by a substantial reduction in litigation charges related to opioid settlements. Non-GAAP operating earnings saw a modest decrease of 5% to $2.3 billion, impacted by COVID-19 related inventory reserves in the Medical segment and volume declines in the Pharmaceutical segment's generics program. Looking ahead, Cardinal Health has made strides in resolving its opioid-related legal liabilities by entering into a proposed settlement agreement that, if finalized, would see payments of up to $6.37 billion spread over 18 years. The company also completed the divestiture of its Cordis business in August 2021, which is expected to reduce annual revenue by approximately $800 million. Despite operational challenges like COVID-19 impacts and increased supply chain costs, the company's liquidity remains strong, with cash and equivalents increasing to $3.4 billion.
Aug 16, 2021
2020
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2020
Cardinal Health, Inc. reported a significant shift in its financial performance for the fiscal year ended June 29, 2020. While the company saw a 5% increase in total revenue to $152.9 billion, primarily driven by its Pharmaceutical segment, its reported GAAP operating loss widened considerably to $4.1 billion. This substantial loss was largely attributed to a $5.63 billion pre-tax charge related to an estimated liability for lawsuits and claims concerning the distribution of prescription opioid pain medications. Despite this significant one-time charge, the company's non-GAAP operating earnings saw a slight increase of 1% to $2.38 billion, reflecting ongoing cost-saving measures and growth in specialty solutions, partially offset by customer contract renewals and the impact of COVID-19. Operationally, the Pharmaceutical segment experienced revenue growth, while the Medical segment saw a slight decline, impacted by the pandemic's effect on elective medical procedures. Cardinal Health maintained a solid liquidity position, with cash and equivalents increasing to $2.8 billion. The company also continued its capital deployment strategies, including dividend payments and share repurchases. However, the substantial opioid litigation charge presents a significant financial overhang and a key area of focus for investors moving forward.
Aug 13, 2020
2019
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2019
Cardinal Health, Inc. reported total revenue of $145.5 billion for fiscal year 2019, representing a 6% increase from the prior year, largely driven by its Pharmaceutical segment. While overall revenue grew, the company's non-GAAP operating earnings saw a 9% decline, attributed to challenges in the Pharmaceutical segment's generics program and customer contract renewals, alongside performance issues in the Medical segment's branded products. Despite the decline in non-GAAP operating earnings, Cardinal Health's Non-GAAP diluted EPS increased by 6% to $5.28, benefiting from a lower effective tax rate and reduced share count. The company generated strong operating cash flow of $2.7 billion and ended the year with a robust cash balance of $2.5 billion. Significant events during the year included the divestiture of its naviHealth business, contributing a pre-tax gain of $508 million, and the company's ongoing efforts in cost-saving initiatives, with expected charges of $120-145 million in fiscal year 2020. Investors should note the ongoing opioid litigation as a significant risk factor, with potential material adverse effects on the company's financial condition and operations.
Aug 20, 2019
2018
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2018
Cardinal Health Inc. reported significant financial shifts in fiscal year 2018, marked by a substantial decrease in reported GAAP operating earnings due to a $1.4 billion goodwill impairment charge in its Medical segment, along with increased acquisition-related costs and litigation charges. Despite these GAAP impacts, the company highlighted a more modest 7% decline in non-GAAP operating earnings, driven by performance in its Pharmaceutical segment and acquisition contributions. Revenue saw a 5% increase, reaching $136.8 billion, largely attributed to growth in pharmaceutical distribution and specialty pharmaceutical customers, further bolstered by the acquisition of the Patient Recovery Business. However, the company also announced expected decreases in fiscal 2019 Pharmaceutical segment profit due to customer contract renewals and the loss of a major customer. Efforts to control costs and integrate acquisitions are key focus areas for the coming year.
Aug 22, 2018
2017
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2017
Cardinal Health, Inc. reported robust revenue growth of 7% to $130.0 billion for fiscal year 2017, driven primarily by its Pharmaceutical segment. However, operating earnings saw a decrease of 14% on a GAAP basis and 4% on a non-GAAP basis, attributed to generic pharmaceutical customer pricing changes and the loss of a major distribution customer. Despite the earnings dip, the company maintained a strong financial position with cash and equivalents increasing significantly due to debt issuance and operating cash flow, partially offset by strategic investments. A major development during the year was the acquisition of Medtronic's Patient Recovery Business for $6.1 billion, which is expected to bolster the Medical segment's portfolio and revenue in the upcoming fiscal year, although it also introduced increased amortization and interest expenses. The company demonstrated a commitment to shareholder returns through a 16% increase in quarterly dividends and ongoing share repurchases. Looking ahead, Cardinal Health anticipates continued challenges in its Pharmaceutical segment due to pricing pressures but expects the Medtronic acquisition to drive growth in the Medical segment. The company's risk factors highlight competitive pressures, regulatory scrutiny, and the potential impact of economic conditions and customer concentration, particularly with its largest customer, CVS.
Aug 10, 2017
2016
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2016
Cardinal Health, Inc. reported a significant 19% increase in revenue for fiscal year 2016, reaching $121.5 billion, primarily driven by strong performance in its Pharmaceutical segment, bolstered by new and existing distribution customers, and complemented by strategic acquisitions. The company also saw a healthy increase in both GAAP and non-GAAP operating earnings, growing by 14% and 17% respectively. Diluted earnings per share also experienced robust growth, with GAAP EPS up 20% to $4.32 and non-GAAP EPS up 20% to $5.24. Key to this growth were significant acquisitions, including Cordis, Harvard Drug Group, and naviHealth, which expanded the company's Medical segment capabilities and its pharmaceutical distribution reach. Despite these investments, which led to a decrease in cash and equivalents, the company maintained a strong liquidity position through its credit facilities. Management anticipates continued growth, though with moderating profit growth in the Pharmaceutical segment for fiscal year 2017 due to customer pricing changes and the loss of a large customer.
Aug 12, 2016
2015
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2015
Cardinal Health Inc. reported robust growth in fiscal year 2015, with total revenue increasing by 13% to $102.5 billion. This expansion was primarily driven by strong performance in its Pharmaceutical segment, fueled by sales growth from existing and new customers, alongside increased sales of branded pharmaceuticals and newly launched hepatitis C treatments. The Medical segment also contributed positively, with revenue growth attributed to acquisitions. The company highlighted significant strategic moves, including the acquisition of Harvard Drug Group for $1.1 billion and the pending acquisition of Johnson & Johnson's Cordis business for $1.9 billion, aimed at strengthening its core offerings and expanding its market reach. Financially, Cardinal Health demonstrated improved profitability, with GAAP operating earnings up 15% to $2.2 billion and GAAP diluted EPS rising 7% to $3.61. The company also returned value to shareholders through share repurchases and increased dividends. Despite the positive trajectory, the company noted the ongoing impact of the Walgreens contract expiration, which negatively affected revenue growth, and highlighted the increasing impact of acquisition-related costs on future earnings.
Aug 13, 2015
2014
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2014
Cardinal Health Inc.'s (CAH) 2014 10-K report highlights a year of significant revenue decline primarily due to the expiration of its large contract with Walgreens. Despite this, the company demonstrated resilience, with a substantial increase in operating earnings and earnings from continuing operations, largely driven by the absence of a significant goodwill impairment charge from the prior year. The company's strategic focus remains on its two core segments: Pharmaceutical and Medical, with ongoing efforts to enhance efficiency and reduce costs for healthcare providers. Key developments include the formation of a generic pharmaceutical sourcing joint venture with CVS Caremark, Red Oak Sourcing, aiming to leverage combined purchasing power. The Medical segment saw expansion through the acquisition of Access Closure Inc., adding to its portfolio of self-manufactured products. Cardinal Health continues to manage its capital effectively through share repurchases and dividend payments, while maintaining a strong liquidity position. Investors should note the company's significant reliance on its largest customer, CVS, which accounted for 28% of fiscal 2014 revenue.
Aug 13, 2014
2013
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2013
Cardinal Health Inc. reported a challenging fiscal year 2013, marked by a significant 6% revenue decline to $101.1 billion, largely attributed to the expiration of its pharmaceutical distribution contract with Express Scripts and ongoing brand-to-generic pharmaceutical conversions. Despite this revenue decrease, the company saw an 8% increase in gross margin to $4.9 billion, driven by strong performance in its pharmaceutical segment's generic programs. However, operating earnings were substantially impacted, falling 44% to $1.0 billion, primarily due to an $829 million non-cash goodwill impairment charge related to its Nuclear Pharmacy Services division. The company also completed a major acquisition of AssuraMed for $2.07 billion, which is expected to expand its reach in serving homecare providers and patients. A significant event impacting the upcoming fiscal year is the non-renewal of the pharmaceutical distribution contract with Walgreens, which represented approximately 20% of fiscal 2013 revenue. Management anticipates an adverse impact from this contract expiration but is implementing cost reduction measures to mitigate it. The company expects a positive net after-tax benefit to cash flow from operating activities exceeding $500 million in fiscal 2014 as a result of the expected working capital changes following the Walgreens contract expiration.
Aug 20, 2013
2012
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2012
Cardinal Health Inc. (CAH) reported robust revenue growth in fiscal year 2012, reaching $107.6 billion, driven by strong performance in its Pharmaceutical segment and contributions from acquisitions. The company's operating earnings increased by 18% to $1.8 billion. Key drivers included effective generic pharmaceutical programs and strategic acquisitions that bolstered both revenue and profit. Despite overall growth, the company faces significant customer concentration, with its top two customers, CVS and Walgreens, accounting for a substantial portion of its revenue. The upcoming expiration of major contracts, particularly with Express Scripts, Inc., which provided $9.0 billion in revenue in fiscal 2012, poses a notable risk. The company is also navigating regulatory scrutiny, including a settlement with the DEA regarding controlled substance distribution at its Lakeland, Florida facility, which resulted in a suspension of its registration for these substances until May 2014. The company's financial health remains solid, with increased cash and equivalents and ongoing capital deployment through dividends and share repurchases.
Aug 22, 2012
2011
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2011
Cardinal Health Inc.'s 2011 10-K filing reports robust revenue growth, reaching $102.6 billion, driven primarily by its Pharmaceutical segment. The company achieved significant growth through strategic acquisitions, including Kinray, Yong Yu, and P4 Healthcare, which expanded its reach in the U.S. retail independent pharmacy market, established a presence in China, and strengthened its specialty pharmaceutical services, respectively. These acquisitions contributed $2.9 billion in revenue and $61 million in operating earnings in fiscal year 2011. The company experienced a 26% increase in Pharmaceutical segment profit, attributed to strong performance in generic drug programs, new product launches, and favorable branded manufacturer agreements. Conversely, the Medical segment saw a 14% decrease in profit, impacted by rising commodity costs for manufactured products. Despite these segment-specific challenges, the overall consolidated operating earnings increased by 16% to $1.5 billion, reflecting effective cost management and strategic execution. The company also continued its commitment to shareholder returns, increasing its quarterly dividend by 11% and repurchasing shares.
Aug 26, 2011
2010-A
CARDINAL HEALTH INC Annual Report (Amendment), Year Ended Jun 30, 2010
This filing is an amendment (10-K/A) to Cardinal Health, Inc.'s Annual Report on Form 10-K for the fiscal year ended June 30, 2010. The primary purpose of this amendment is to provide XBRL (Extensible Business Reporting Language) formatted financial data, which was omitted from the original filing. It does not introduce new financial information or materially alter the original report's content regarding the company's performance or financial position for the fiscal year 2010. Investors should refer to the original 10-K filing for comprehensive financial details and management's discussion and analysis.
Sep 2, 2010
2010
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2010
Cardinal Health, Inc. (CAH) reported its fiscal year 2010 results, marked by a significant transition following the spin-off of its CareFusion Corporation business in August 2009. The company is now focused on two core segments: Pharmaceutical and Medical. Revenue for the fiscal year reached $98.5 billion, a 3% increase over the prior year. Pharmaceutical segment revenue grew by 2% to $89.8 billion, driven by pharmaceutical price appreciation and volume growth, though this was partially offset by customer losses and pricing changes on renewed contracts. The Medical segment saw a 7% revenue increase to $8.75 billion, primarily due to higher volumes and new products. Net earnings from continuing operations for fiscal 2010 were $587 million, or $1.62 per diluted share, a decrease from $758 million in fiscal 2009, attributed to factors like pricing changes in the Pharmaceutical segment and strategic investments. The company's financial position strengthened, with cash and equivalents increasing to $2.8 billion from $1.2 billion, driven by operating cash flow. Cardinal Health also continued its capital allocation strategy, including dividend payments, share repurchases, and strategic acquisitions, notably the acquisition of Healthcare Solutions Holding, LLC in July 2010.
Aug 26, 2010
2009
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2009
Cardinal Health's fiscal 2009 10-K (year ended June 30, 2009) shows a company with roughly $99.5 billion in revenue, up 9%, driven largely by pharmaceutical price appreciation and volume growth in its Healthcare Supply Chain Services segment. Profitability softened: operating earnings fell 10% to $1.89 billion, mainly on $164 million of restructuring charges and a $53 million drop in gross margin, and diluted EPS declined 11% to $3.18. Gross margin was pressured by customer discounts, hospital capital spending deferrals, and Alaris product recalls and FDA-related remediation in the Clinical and Medical Products segment. Balance sheet metrics remained solid, with $1.8 billion in cash, shareholders' equity of $8.7 billion, and operating cash flow of about $1.6 billion. The central event is the planned spin-off of the clinical and medical products businesses as CareFusion, distributed on August 31, 2009 at 0.5 CareFusion shares per Cardinal share. After the spin-off, Cardinal will be a narrower pharmaceutical and medical distribution company, with two reportable segments (Pharmaceutical and Medical) and a retained stake of up to 19.9% in CareFusion that must be sold within five years. Cardinal is also restructuring its capital structure: CareFusion is raising about $1.4 billion to fund a cash distribution to Cardinal, which will go toward a debt tender offer of up to $1.2 billion and repayment of maturing debt. Moody's downgraded Cardinal's commercial paper to P-3 and carries a negative outlook, and the company announced a $500 million buyback to replace the cancelled $2.0 billion program. Investors should weigh a concentrated customer base (CVS and Walgreens are 21% and 23% of revenue, and the top five customers are 54%), thin pharmaceutical distribution margins, and significant tax exposure, including unrecognized tax benefits of $849 million and proposed IRS adjustments totaling about $777 million. Some of these risks are reduced by the spin-off, but the transaction itself carries conditions, including a private letter ruling from the IRS and investment-grade ratings, and it changes the company's diversification and earnings profile.
Aug 27, 2009
2008
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2008
Cardinal Health's fiscal 2008 10-K (year ended June 30, 2008) shows a company with $91.1 billion in revenue, up 5%, but earnings that fell sharply from the prior year's inflated level. Net earnings were $1.30 billion, down 33%, and diluted EPS was $3.57, down 25%. The decline is largely a comparison effect: fiscal 2007 included a $1.1 billion after-tax gain on the PTS Business sale and a $600 million shareholder litigation charge. Operating earnings rose 54% to $2.12 billion, mainly because the prior-year litigation charge did not recur. Underlying margins were pressured: Healthcare Supply Chain Services—Pharmaceutical segment profit fell 14% on repriced customer contracts, bulk-customer mix shifts, and the loss of non-bulk customers tied to DEA license suspensions. The Clinical and Medical Products businesses were the bright spot, with segment profit rising 29% in Clinical Technologies and 52% in Medical Products, though the latter was helped by the Viasys acquisition. The company is also at a strategic inflection point. On August 7, 2008, management said it is exploring a possible tax-free spin-off of the Clinical and Medical Products businesses, with a decision expected within 60 to 90 days. Capital returns were heavy in fiscal 2008: about $1.2 billion of share repurchases plus $173 million of dividends, and the quarterly dividend was raised 17% to $0.14. Management expects lower repurchases in fiscal 2009, partly because of the separation review. Balance sheet risk is rising. Total assets were $23.4 billion, long-term debt was $3.7 billion, and the company faces potential IRS adjustments of roughly $777 million ($179 million plus $598 million) on transfer pricing and receivables-sale deductions, which it says it will contest. Key risks for investors include customer concentration (CVS and Walgreens are 22% and 19% of revenue), pharmaceutical pricing pressure, DRA-related Medicaid reimbursement changes, regulatory exposure from DEA and FDA matters, and the SEC investigation of individuals still ongoing. Overall, the filing points to a stable but lower-growth core distribution business, a higher-margin medical products franchise that may be separated, and meaningful tax and regulatory overhangs.
Aug 27, 2008
2007-A
CARDINAL HEALTH INC Annual Report (Amendment), Year Ended Jun 30, 2007
Cardinal Health Inc. (CAH) reported strong revenue growth in fiscal year 2007, reaching $86.9 billion, a 9% increase from the prior year. This growth was primarily driven by its Pharmaceutical Supply Chain Services segment, which accounted for approximately 86% of total segment revenue, and supported by increased volume from both bulk and non-bulk customers, as well as pharmaceutical price appreciation. However, the company experienced a significant decrease in operating earnings, down 26% to $1.4 billion, largely due to substantial "special items" totaling $772 million. These special items were predominantly driven by litigation settlement reserves ($655 million) and in-process research and development expenses related to acquisitions. Despite the decline in operating earnings, net earnings saw a substantial increase of 93% to $1.9 billion, primarily due to a $1.1 billion after-tax gain from the divestiture of its PTS Business. The company also actively returned capital to shareholders through $3.8 billion in share repurchases and increased dividend payments.
May 8, 2008
2007
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2007
Cardinal Health Inc. (CAH) reported significant revenue growth of 9% to $86.9 billion in fiscal year 2007, driven primarily by its Pharmaceutical Supply Chain Services segment. However, operating earnings saw a substantial decline of 26% to $1.4 billion, largely impacted by $772 million in special items, including significant reserves for litigation settlements. The company also completed the divestiture of its PTS Business for $3.2 billion, using the proceeds for share repurchases and recording an $1.1 billion after-tax gain. Strategic acquisitions in respiratory care (Viasys) and infection management (MedMined) also bolstered its product offerings.
Aug 24, 2007
2006
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2006
Cardinal Health Inc. reported record revenue of $81.4 billion for the fiscal year ended June 30, 2006, a 10% increase year-over-year, driven by growth across all four reportable segments. The company highlighted an 8% increase in operating earnings to $2.0 billion and a 14% rise in diluted earnings per share from continuing operations to $2.90. A significant transition to a fee-for-service model in the Pharmaceutical Distribution segment was completed, which is expected to moderate earnings seasonality and volatility. However, the company is also managing the impact of ongoing SEC and U.S. Attorney investigations, for which it has reserved $35 million, and significant shareholder litigation, though the ultimate outcome and financial impact are currently unpredictable. Despite these legal and regulatory challenges, the company continues to focus on operational improvements and strategic acquisitions, demonstrating resilience in its core distribution and services businesses.
Sep 1, 2006
2005-A
CARDINAL HEALTH INC Annual Report (Amendment), Year Ended Jun 30, 2005
This filing is an amendment (10-K/A) to Cardinal Health Inc.'s (CAH) 2005 annual report, covering the period ending June 29, 2005, and filed on November 7, 2005. As an amendment, it primarily serves to provide updated or supplementary information to the original filing. The document lists various exhibits, including financial statement schedules and significant agreements such as wholesale supply agreements with major pharmacy chains (CVS Pharmacy, Inc.) and prime vendor agreements with pharmacy benefit managers (Express Scripts, Inc.). It also details numerous credit agreements, stock incentive plans, and employment agreements for key executives. For investors, this filing offers transparency into the company's contractual relationships with its key customers and partners, as well as its executive compensation and corporate governance structures. While it does not present new financial results directly, it provides context for the financial performance reported in the main 10-K by detailing the underlying agreements that drive revenue and operational activity. Investors should note the confidentiality requests for certain commercial and financial information within these agreements, which limits full public disclosure but is standard practice.
Nov 8, 2005
2005
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2005
Cardinal Health's fiscal 2005 10-K (year ended June 30, 2005) shows a company with revenue up 15% to $74.9 billion, but earnings under pressure: operating earnings fell 25% to $1.76 billion and diluted EPS dropped 28% to $2.41, driven by lower branded pharmaceutical manufacturer compensation, Pyxis product weakness, Humacao facility problems, $264 million of special items (restructuring, SEC/internal review costs, a $25 million SEC reserve), and $118 million of asset impairments. Net earnings were $1.05 billion versus $1.47 billion a year earlier. Cash flow from operations was strong at $2.85 billion, helped by a $550 million receivables sales program, and the company returned capital through $500 million of buybacks in fiscal 2005, a new $1.0 billion authorization, and a dividend increase to $0.06 per quarter. The filing's most important investor issues are governance and legal. The company is under a formal SEC investigation and a U.S. Attorney (SDNY) inquiry tied to revenue classification, cash discount timing, and reserve accounting, following restatements of fiscal 2000 to 2004. Two internal reviews are substantially complete, and settlement talks with the SEC have begun, with a $25 million reserve recorded. Multiple securities class actions and ERISA suits are pending, and management changed substantially, including a new CFO, Chief Ethics and Compliance Officer, and Chief Accounting Officer. Management reports effective internal controls as of June 30, 2005, though the auditor noted significant deficiencies not rising to material weaknesses. Structural risk is also rising. The Pharmaceutical Distribution segment, the largest unit, is shifting from inflation-based manufacturer compensation to fee-for-service terms, which reduces earnings volatility but cuts margins. Customer concentration is high: CVS is about 21% of revenue and Walgreens about 10%. A large Specialty Distribution customer representing about 16% of that segment's revenue plans to self-distribute from January 2006. Credit ratings are BBB/Baa3/BBB with negative outlooks at S&P and Fitch, and the company plans to repatriate $500 million of foreign earnings under the AJCA.
Sep 12, 2005
2004
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2004
Cardinal Health, Inc.'s 2004 10-K filing reveals a year marked by significant events, most notably an ongoing SEC investigation and a U.S. Attorney inquiry into the company's accounting practices. This led to a restatement of financial statements for fiscal years 2000 through 2003 and the first three quarters of fiscal 2004. The restatements stemmed from issues related to revenue classification, accelerated recognition of cash discounts, timing of revenue recognition in the Automation and Information Services segment, and various balance sheet reserve adjustments. Despite these accounting challenges, Cardinal Health continued to grow its revenue by 15% to $65.1 billion, driven by strong performance across its diversified business segments, including Pharmaceutical Distribution and Provider Services, Medical Products and Services, and Pharmaceutical Technologies and Services. The company also completed a major acquisition of ALARIS Medical Systems for approximately $2.1 billion, expanding its offerings in intravenous medication safety. The company is also navigating a critical transition in its Pharmaceutical Distribution business model, shifting towards a fee-for-service compensation structure with manufacturers, which presents both opportunities and uncertainties.
Oct 26, 2004
2003
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2003
Cardinal Health, Inc. (CAH) presents its 2003 10-K filing, detailing a robust fiscal year characterized by significant revenue growth and strategic expansion through acquisitions. The company operates across four key segments: Pharmaceutical Distribution and Provider Services, Medical Products and Services, Pharmaceutical Technologies and Services, and Automation and Information Services. Revenue growth was driven by increased sales volume, new customer contracts, and pharmaceutical price increases, with the Pharmaceutical Technologies and Services segment showing particularly strong growth, partly due to the acquisition of Syncor. Despite overall positive performance, the company faced challenges including changes in vendor supply chain management policies, which impacted inventory margins in the pharmaceutical distribution segment, and ongoing litigation, notably related to latex gloves and Syncor's acquisition. Cardinal Health is actively managing these challenges while continuing its strategy of growth through acquisitions and operational efficiencies, aiming to maintain its position as a leading provider of healthcare products and services.
Sep 29, 2003
2002
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2002
Cardinal Health, Inc. (CAH) demonstrated robust growth in fiscal year 2002, with a 15% increase in total operating revenue, reaching $44.4 billion. This growth was driven by strong performance across its four key segments: Pharmaceutical Distribution and Provider Services, Medical-Surgical Products and Services, Pharmaceutical Technologies and Services, and Automation and Information Services. The company continued its acquisitive growth strategy, completing several acquisitions that expanded its service offerings and market reach. Despite overall revenue growth, the company experienced a slight decrease in gross margin percentage due to a higher mix of lower-margin pharmaceutical distribution revenue and competitive pricing pressures in its medical-surgical segment. Significant special charges related to integration and restructuring activities impacted net earnings, though the company maintained solid operating earnings. Cardinal Health remains a dominant player in the healthcare supply chain, well-positioned for future growth through strategic acquisitions and operational efficiencies.
Sep 30, 2002
2000
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2000
Cardinal Health, Inc.'s 2000 10-K filing reveals a company undergoing significant growth and diversification through a series of strategic acquisitions. The company operates across four key segments: Pharmaceutical Distribution and Provider Services, Medical-Surgical Products and Services, Pharmaceutical Technologies and Services, and Automation and Information Services. Fiscal year 2000 saw substantial revenue growth, driven primarily by its pharmaceutical distribution business, with expanding services and product lines aimed at improving healthcare efficiency and quality. Despite strong revenue performance, the company experienced a slight decline in gross margins, largely attributed to a shift in revenue mix towards lower-margin pharmaceutical distribution. However, management has focused on cost controls and productivity gains, which have helped reduce selling, general, and administrative expenses as a percentage of revenue. The company also navigated a complex period of integration costs related to its numerous acquisitions, which impacted net earnings but were viewed as necessary investments for long-term expansion. Cardinal Health maintained a strong liquidity position and continued its aggressive acquisition strategy, signaling a commitment to further market consolidation and service expansion.
Sep 6, 2000
1999
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 1999
Cardinal Health's fiscal 1999 10-K (year ended June 30, 1999) shows a company growing rapidly on the back of pharmaceutical distribution and serial pooling-of-interests acquisitions. Operating revenue rose 19% to $21.48 billion and total revenue reached $25.03 billion, while net earnings grew 7% to $456.3 million. However, diluted EPS of $1.64 was reduced by $0.42 from merger-related costs and special charges totaling $146.6 million pre-tax, so underlying profitability is somewhat better than reported results. Gross margin slipped to 12.03% from 12.33%, mainly because the low-margin Pharmaceutical Distribution segment saw margin compression from competitive pricing, offset by stronger margins in Pharmaceutical Services and Medical-Surgical Products. The balance sheet strengthened, with shareholders' equity up 17% to $3.46 billion and total assets of $8.29 billion, while long-term obligations declined to $1.22 billion. Cash flow from operations fell sharply to $345.7 million from $552.1 million, driven by heavy working capital investment in inventories (up $318.5 million) and sales-type leases (up $282.3 million). Investors should watch this cash conversion gap, along with the 39.9% effective tax rate, which rose from 35.6% partly due to non-deductible merger costs. Key forward-looking items include a pending pooling-of-interests merger with Automatic Liquid Packaging, roughly $100 million of additional expected merger integration costs, the resolution of antitrust chargeback litigation (the wholesaler defendants were dismissed, subject to a pending rehearing petition), and about 430 natural rubber latex glove lawsuits assumed through Allegiance, for which the company cannot estimate potential liability.
Sep 2, 1999
1997-A
CARDINAL HEALTH INC Annual Report (Amendment), Year Ended Jun 30, 1997
Cardinal Health's FY1997 (fiscal year ended June 30, 1997) Form 10-K/A is a restatement filing that revises previously reported results to reflect the PCI pooling retroactively, shift certain merger and restructuring costs into the period incurred, reclassify some charges into SG&A, defer manufacturers' incentives against inventory, and eliminate a stale tax reserve. Restated FY1997 net revenues were $10.97 billion (up 17%), net earnings were $184.6 million, and fully diluted EPS was $1.69, compared with $181.1 million and $1.66 previously reported. Restated FY1997 total assets were $3.09 billion and shareholders' equity was $1.33 billion. The restatement changed the reported FY1997 earnings only modestly, but it shifted costs across periods and restated FY1996 earnings down to $127.2 million from $117.6 million. Operationally, growth was driven by pharmaceutical distribution and pharmacy management services, including a new Kmart pharmaceutical services agreement and opportunities created by the weakened financial condition of a major competitor. Gross margin narrowed to 8.20% from 8.61% because of the mix shift toward lower-margin pharmaceutical distribution, while SG&A improved to 4.70% of revenues. Merger-related costs of about $50.9 million (after restatement) reduced after-tax earnings by $36.6 million, or $0.34 per share. The balance sheet is conservative relative to its size: long-term debt was $283.9 million, cash was $243 million, working capital was $1.1 billion, and the company had $400 million of shelf debt capacity available. The main forward-looking issue is the pending mergers. Bergen Brunswig, announced August 23, 1997, would be a stock-for-stock pooling of roughly 40 million Cardinal shares plus about $386 million of assumed debt, and it would bring large integration charges that cannot yet be estimated. A smaller MediQual pooling, expected to close in early calendar 1998, would add about 0.6 million shares. Investors should weigh the restated base results against those charges and the integration risk.
Jan 7, 1998
1997
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 1997
Cardinal Health's fiscal 1997 10-K (year ended June 30, 1997) shows a company growing rapidly through acquisitions and internal expansion. Net revenues rose 19% to $10.97 billion from $9.25 billion, and net earnings increased 54% to $181.1 million, or $1.66 fully diluted EPS, up from $1.14. Those results absorbed $57.0 million of pre-tax merger-related costs (about $0.37 per share after tax) tied to the Owen and PCI mergers, so underlying earnings growth was stronger than reported. Gross margin slipped to 8.25% from 8.36% as lower-margin pharmaceutical distribution grew faster, but SG&A fell to 4.68% of revenue from 5.19%, lifting operating earnings to $334.4 million from $226.5 million. The balance sheet strengthened. Shareholders' equity rose to $1.33 billion from $1.04 billion, driven by earnings and employee stock plans, and the company retired $100 million of 8% notes while carrying about $284 million of long-term debt. Working capital grew to $1.095 billion, though inventories (up $180 million) and receivables absorbed cash, and operating cash flow fell to just $39 million. Management points to the Kmart relationship and the financial deterioration of a major competitor as drivers of growth. The most consequential items for investors are the two pending pooling-of-interests mergers: Bergen Brunswig, which would add roughly 40 million shares and assume about $386 million of debt, and MediQual, which would add about 0.6 million shares. Ongoing antitrust litigation over chargeback pricing is a contingent risk, which the company says it believes will not be material. The company also disclosed heavy customer concentration, with Kmart at 13% of revenue.
Sep 29, 1997
1996
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 1996
Cardinal Health's fiscal 1996 10-K (year ended June 30, 1996) shows a company growing revenue steadily while absorbing a sizable merger-related charge. Net revenues rose about 10% to $8.86 billion from $8.02 billion, driven mainly by internal growth in pharmaceutical wholesaling, new and existing customers, and price increases. Reported net earnings fell to $111.9 million, or $1.73 per share, from $137.5 million, or $2.14 per share, in fiscal 1995. The decline reflects $67.3 million of pre-tax unusual items ($47.8 million after tax) tied mainly to the Medicine Shoppe and Pyxis mergers. Excluding those items, earnings were about $159.7 million, or $2.47 per share, which is a meaningful improvement. Gross margin improved to 8.07% from 7.79%, helped by the higher-margin pharmacy management business, while the effective tax rate rose to 44.6%. The balance sheet strengthened. Shareholders' equity grew to $930.7 million, total assets reached $2.68 billion, and cash and equivalents rose to $287.8 million. Working capital increased to $854.1 million. Long-term debt increased, largely because of a $150 million 6% note offering in January 1996, and total long-term obligations stood at $371 million, with $106 million classified as current. Investors should note that the company is heavily dependent on a few customers: Kmart accounted for about 12% of net revenues, and the two largest customers accounted for roughly 25% of trade receivables. The company also faces antitrust litigation over chargeback pricing. A federal summary judgment was granted in its favor, but the plaintiffs have appealed. Looking forward, the pending PCI Services acquisition, expected to close in fall 1996 as a stock-for-stock pooling-of-interests deal that issues about 2.1 million shares, continues the company's strategy of expanding into higher-margin health care services. Management says it has adequate capital resources to meet its needs. The main questions for investors are whether revenue growth can keep pace with acquisition-related costs and whether margins can improve further as the integration of the recent mergers is completed.
Aug 26, 1996
1995
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 1995
Cardinal Health, Inc. (NYSE: CAH) reported a strong fiscal 1995 (year ended June 30, 1995), with net sales up 35% to $7.81 billion (internal growth of 25%, plus the Humiston-Keeling and Behrens acquisitions) and net earnings rising to $85.0 million, or $2.01 per share, from $33.9 million, or $0.86 per share, in fiscal 1994. Fiscal 1994 included $35.9 million of pre-tax Whitmire merger costs, so on a comparable basis earnings grew roughly 35% (fiscal 1994 excluding unusual items was $63.0 million, or $1.60 per share). The company is a national full-service drug wholesaler whose economics are thin: gross margin fell to 5.95% from 6.13% and 6.42% in the prior two years, although SG&A improved to 3.85% of sales, and the company attributes the margin decline to competition and a shift toward high-volume customers such as K-Mart, which accounted for about 11% of sales. Balance sheet growth was substantial. Total assets rose to $1.84 billion from $1.40 billion, inventories reached $1.07 billion, and shareholders' equity increased to $548.2 million, helped by a September 1994 public offering that raised about $70 million in net proceeds for the company. Working capital grew to $601.3 million. Operating cash flow was only $10.5 million, however, because receivables and inventory growth absorbed most of the cash generated by earnings and payables. Long-term debt was roughly flat at $209 million, and the company had $322 million of unused credit lines, which management considers adequate for its needs. The filing also flags a pending $26.9 million-to-date merger integration, a proposed all-stock acquisition of Medicine Shoppe International for 6.0 to 6.8 million shares (up to 7.2 million), and the Brand Name Prescription Drug antitrust litigation. Management believes the litigation will not have a material adverse effect, and a Judgment Sharing Agreement caps the company's joint and several exposure at the lesser of 1% of any judgment or $1 million.
Sep 21, 1995
1994
CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 1994
Cardinal Health, Inc. (CAH) reported fiscal year ended June 30, 1994 (a transition period following its change from a March to June fiscal year-end) with net sales of $5.79 billion, up 25% from the prior twelve-month period, driven by roughly 20% internal growth plus the PRN and Solomons acquisitions. Net earnings available to common shares were $33.9 million, or $0.86 per share, down from $39.3 million ($1.14) a year earlier, as the company absorbed $35.9 million in pre-tax Whitmire merger costs in the third quarter. Excluding these unusual items, pro forma operating earnings rose to $121.9 million and pro forma net earnings to $63.0 million ($1.60 per share), indicating underlying profitability held up well. Gross margin compressed to 6.13% from 6.42%, reflecting more competitive pricing and a higher mix of large-volume customers, though management expects the decline to moderate. Results should be read with caution: the effective tax rate jumped to 50.3% due to nondeductible merger costs, and the company faces a pending antitrust class action over chargeback pricing. The balance sheet strengthened materially. Shareholders' equity rose to $368.5 million from $247.9 million, largely from the conversion of $75 million of convertible debentures into common shares. Long-term debt fell to $210.1 million, and the company now has a $321 million line-of-credit capacity with $296 million unused. Working capital grew to $471.1 million, though inventories (up $233 million) and receivables absorbed substantial cash, producing negative operating cash flow of $74.9 million for the year. The company also has a pending public offering of 5.25 million Class A shares, of which 1.6 million are primary, and it continues an active acquisition program, having closed Humiston-Keeling and Behrens in July 1994.
Sep 2, 1994