Summary
Cardinal Health, Inc. (CAH) filed an 8-K on January 26, 2006, to report its financial results for the quarter and six months ended December 31, 2005. This filing primarily serves to furnish the press release containing these results (Exhibit 99.01) and related management discussions (Exhibit 99.02), as well as a slide presentation for an upcoming conference call (Exhibit 99.03). Of significant note for investors, the company disclosed an agreement-in-principle with the SEC staff to settle an ongoing investigation. This potential settlement involves a $35 million penalty, for which Cardinal Health has recorded a total reserve of $35 million, with an additional $10 million set aside in the current quarter. While this represents progress, the company cautions that definitive documentation, commission acceptance, and the final terms are still uncertain.
Key Highlights
- 1Cardinal Health announced its financial results for the second quarter and first six months of fiscal year 2006, ending December 31, 2005.
- 2The company is furnishing its earnings press release (Exhibit 99.01) and management's discussion on non-GAAP financial measures (Exhibit 99.02).
- 3A slide presentation for a conference call to discuss these results is also being furnished (Exhibit 99.03).
- 4Cardinal Health has reached an agreement-in-principle with the SEC staff to settle an ongoing investigation.
- 5The proposed settlement includes a $35 million penalty.
- 6The company recorded an additional $10 million reserve in the December 31, 2005 quarter for the SEC settlement, bringing the total reserve to $35 million (including the $25 million from FY2005).
- 7Cardinal Health explicitly states that there is no assurance of a successful resolution or that the reserved amount will be sufficient, and the timing and final terms of any settlement are unpredictable.