Summary
Cardinal Health, Inc. (CAH) reported solid revenue growth of 16% year-over-year for the third quarter of fiscal year 2003, reaching $13.3 billion. This growth was driven by all business segments, particularly the Pharmaceutical Technologies and Services segment which saw a 57% increase, bolstered by the recent Syncor acquisition. Diluted earnings per share from continuing operations rose to $0.74, up from $0.64 in the prior year, reflecting improved operational performance. The company also announced a significant $1 billion share repurchase program authorized in August 2003, which led to a substantial decrease in cash and equivalents and treasury shares. While the company is navigating ongoing legal proceedings and an SEC inquiry related to vitamin manufacturer recoveries, management expresses confidence in its financial position and outlook, anticipating future growth through continued acquisitions and operational efficiencies.
Key Highlights
- 1Total operating revenue increased by 16% to $13.3 billion for the three months ended September 30, 2003, compared to $11.4 billion in the prior year period.
- 2Diluted earnings per share from continuing operations rose to $0.74 from $0.64 in the comparable prior year period.
- 3The Pharmaceutical Technologies and Services segment experienced a significant 57% revenue growth, largely due to the acquisition of Syncor.
- 4A $1 billion share repurchase program was authorized, resulting in the repurchase of approximately 17.0 million shares.
- 5Cash and equivalents decreased significantly from $1.7 billion to $992 million, primarily due to the share repurchases.
- 6The company is actively managing various legal proceedings, including antitrust claims related to vitamin manufacturers and shareholder litigation concerning the Syncor acquisition, while noting no individually material expected impact.
- 7Cardinal Health received a request for information from the SEC related to the accounting treatment of $22 million recovered from vitamin manufacturers.