CARDINAL HEALTH INC Quarterly Report for Q3 Ended Mar 31, 2021

Summary

Cardinal Health Inc. reported flat revenue of $39.3 billion for the third quarter of fiscal year 2021, mirroring the prior year's results which included an unusual surge in pharmaceutical sales due to early COVID-19 purchasing. For the nine-month period, revenue saw a 3% increase to $119.9 billion, driven by pharmaceutical distribution and specialty solutions, though partially offset by COVID-19 related volume declines. The company's non-GAAP operating earnings remained stable year-over-year for the nine months, but saw a slight decrease of 4% for the quarter. Significant litigation charges related to opioid lawsuits continue to impact GAAP earnings, although a substantial tax benefit from a net operating loss carryback provided a boost to the nine-month GAAP results. The company is progressing with the divestiture of its Cordis business, expected to close in the first quarter of fiscal 2022, and has sufficient liquidity to manage its operations and obligations.

Key Highlights

• 1Revenue remained flat at $39.3 billion for the three months ended March 31, 2021, compared to the prior year.
• 2Nine-month revenue increased by 3% to $119.9 billion, driven by pharmaceutical distribution and specialty solutions.
• 3Non-GAAP operating earnings showed a slight decrease of 4% year-over-year for the quarter, but were flat for the nine-month period.
• 4The company recorded a significant tax benefit of $419 million related to a net operating loss carryback under the CARES Act during the nine-month period.
• 5Cardinal Health has entered into an agreement to sell its Cordis business for $927 million, with an expected closing in Q1 fiscal 2022.
• 6The company maintained a healthy cash and equivalents balance of $3.5 billion as of March 31, 2021.
• 7Opioid litigation charges continue to significantly impact GAAP results, though a settlement framework is under negotiation.

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