10-KPeriod: FY2022

CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2022

Filed August 11, 2022For Securities:CAH

Summary

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.

Financial Highlights

49 data points
Beta

Revenue

$181.33B

3.6% Gross Margin

Net Income

-$938.00M

-0.5% Net Margin

EPS (Diluted)

$-3.37

Total Assets

$43.88B

Cash & Equivalents

$4.75B

Free Cash Flow

$2.79B

Financial Statements
Beta
Revenue$181.33B
Cost of Revenue$174.84B
Gross Profit$6.48B
SG&A Expenses$4.51B
Operating Income-$607.00M
Interest Expense$147.00M
Net Income-$938.00M
EPS (Basic)$-3.37
EPS (Diluted)$-3.37
Shares Outstanding (Basic)279.00M
Shares Outstanding (Diluted)279.00M

Key Highlights

  • 1Total revenue increased by 12% to $181.4 billion, driven by the Pharmaceutical segment.
  • 2Reported a GAAP operating loss of $596 million, primarily due to a $2.1 billion goodwill impairment charge in the Medical segment.
  • 3Non-GAAP operating earnings decreased by 12% to $2.0 billion, reflecting inflationary impacts and supply chain constraints in the Medical segment.
  • 4The company made significant progress on the opioid litigation, with the National Settlement becoming effective, involving up to $6.0 billion in payments over 18 years.
  • 5Cash and equivalents increased to $4.7 billion, indicating a strong liquidity position.
  • 6Divested the Cordis business, impacting Medical segment revenue and profit.
  • 7Continued to pay dividends and engage in share repurchases, returning capital to shareholders.

Frequently Asked Questions

Cardinal Health's revenue grew by 12% to $181.4 billion, primarily driven by sales growth in its Pharmaceutical segment, specifically from pharmaceutical distribution and specialty pharmaceutical customers.

The $2.1 billion goodwill impairment charge in the Medical segment was primarily due to adverse financial results stemming from inflationary impacts, global supply chain constraints, and lower volumes in personal protective equipment (PPE). An increase in the risk-free interest rate used in valuation also contributed.

The National Settlement for the majority of opioid lawsuits became effective on April 2, 2022. Cardinal Health expects to pay up to approximately $6.0 billion over 18 years as part of this settlement, which also includes injunctive relief related to controlled substance anti-diversion programs.

The divestiture of the Cordis business adversely impacted the Medical segment's revenue by approximately $700 million and profit by $70 million in fiscal year 2022. It also led to a decrease in amortization of acquisition-related intangible assets.