Early Access

10-QPeriod: Q3 FY2022

CARDINAL HEALTH INC Quarterly Report for Q3 Ended Mar 31, 2022

Filed May 5, 2022For Securities:CAH

Summary

Cardinal Health Inc. reported a significant increase in revenue for the third quarter of fiscal year 2022, with a 14% rise to $44.8 billion, driven by strong performance in pharmaceutical distribution. However, the company experienced a GAAP operating loss of $97 million, primarily due to substantial goodwill impairment charges in the Medical segment totaling $474 million. This impairment was largely attributed to increased inflationary pressures and ongoing global supply chain constraints impacting the Medical segment. Despite the GAAP loss, non-GAAP operating earnings decreased by 21% to $545 million, also affected by the Medical segment's performance. The company made significant progress on its opioid litigation settlement, with the agreement becoming effective in April 2022, involving a commitment of up to $6.0 billion over 18 years. Cardinal Health also repurchased $1.0 billion of its common stock during the nine-month period, demonstrating a commitment to returning capital to shareholders.

Financial Highlights

46 data points
Beta

Revenue

$44.84B

0.0% Gross Margin

Net Income

-$1.39B

-0.0% Net Margin

Total Assets

$42.11B

Cash & Equivalents

$2.36B

Free Cash Flow

-$501.00M

Financial Statements
Beta
Revenue$44.84B
Cost of Revenue$43.15B
Gross Profit$1.68B
SG&A Expenses$1.14B
Operating Income-$97.00M
Interest Expense$38.00M
Net Income-$1.39B
Shares Outstanding (Basic)275.00M
Shares Outstanding (Diluted)275.00M

Key Highlights

  • 1Total revenue increased by 14% year-over-year to $44.8 billion for the three months ended March 31, 2022.
  • 2GAAP operating loss of $97 million for the quarter, primarily due to $474 million in goodwill impairment charges for the Medical segment.
  • 3Non-GAAP operating earnings decreased by 21% to $545 million for the quarter, impacted by inflationary pressures and supply chain constraints in the Medical segment.
  • 4The company's comprehensive opioid litigation settlement agreement became effective in April 2022, with Cardinal Health committed to paying up to $6.0 billion over 18 years.
  • 5Cash and equivalents decreased to $2.4 billion from $3.4 billion at the prior fiscal year-end, with $1.0 billion deployed for share repurchases.
  • 6The divestiture of the Cordis business in August 2021 continued to impact Medical segment revenue and profit negatively.
  • 7Company reiterates its belief that it has adequate capital resources to fund its needs, including opioid settlement payments.

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