What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to reaffirm CVS Health's previously announced full-year 2022 financial guidance during upcoming investor meetings. It confirms the company's outlook for earnings per share (both GAAP and Adjusted) and cash flow from operations.

How does the sale of PayFlex Holdings, Inc. affect CVS Health's reported earnings?

The sale of PayFlex Holdings, Inc., which closed on June 1, 2022, will result in a gain that will increase CVS Health's GAAP net income for 2022. However, this gain will be excluded from the calculation of Adjusted EPS for the full year.

What are the key non-GAAP adjustments mentioned in the filing?

The key non-GAAP adjustments affecting the company's performance metrics include amortization of intangible assets, a legal settlement accrual of $484 million to resolve opioid claims with the State of Florida, and a loss on the sale of its international health care business in Thailand. The tax impact of these adjustments is also accounted for.

Should investors rely solely on the Adjusted EPS figures provided?

Investors should consider both GAAP and non-GAAP financial measures. While Adjusted EPS provides insight into underlying business performance by excluding certain items, it is a non-GAAP measure and should not be considered a substitute for or superior to GAAP financial measures. The company's definitions of its non-GAAP measures may also differ from those of other companies.

CVS 8-K: Regulation FD

Summary

CVS Health Corporation (CVS) filed an 8-K on June 9, 2022, to reaffirm its previously issued full-year 2022 financial guidance. The company's senior management team will be meeting with investors throughout June 2022 and will reiterate their outlook for the year. This filing confirms the guidance for GAAP diluted Earnings Per Share (EPS) in the range of $6.93 to $7.13, Adjusted EPS of $8.20 to $8.40, and cash flow from operations between $12.0 billion and $13.0 billion. The report also provides details on non-GAAP financial measures, specifically Adjusted EPS, and outlines the adjustments made, including the exclusion of amortization of intangible assets, a legal settlement accrual related to opioid claims with the State of Florida, and a loss on the sale of its international health care business in Thailand. Notably, the gain from the recent sale of PayFlex Holdings, Inc. will be excluded from Adjusted EPS but will impact GAAP net income. Investors should note that this information is forward-looking and management does not assume a duty to update these statements.

Key Highlights

1CVS Health reaffirms its full-year 2022 financial guidance for GAAP EPS, Adjusted EPS, and cash flow from operations.
2Full-year 2022 GAAP diluted EPS guidance remains between $6.93 and $7.13.
3Full-year 2022 Adjusted EPS guidance is reaffirmed at $8.20 to $8.40.
4Full-year 2022 cash flow from operations guidance is confirmed to be in the range of $12.0 billion to $13.0 billion.
5The company will exclude the gain from the sale of PayFlex Holdings, Inc. from its Adjusted EPS calculation for 2022.
6The guidance includes adjustments for a $484 million legal settlement accrual with the State of Florida for opioid claims and a loss on the sale of its Thailand business.
7This 8-K filing is for informational purposes related to investor meetings and does not alter previous financial reporting.

CVS HEALTH Corp 8-K Report, Regulation FD Disclosure (Jun 9, 2022)

Summary

Key Highlights

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