8-KRegulation FD

CVS HEALTH Corp 8-K Report, Regulation FD Disclosure (Sep 11, 2023)

Filed September 11, 2023For Securities:CVS

Summary

CVS Health Corporation (CVS) filed an 8-K on September 11, 2023, to announce upcoming investor meetings and a webcast scheduled for September 12, 2023. During these events, senior management will reaffirm the company's previously issued full-year 2023 financial guidance. This includes maintaining the projected GAAP diluted EPS range of $6.53 to $6.75 and the Adjusted EPS range of $8.50 to $8.70. Furthermore, the company confirmed its full-year 2023 cash flow from operations guidance remains between $12.5 billion and $13.5 billion. The filing also provided a detailed reconciliation of projected GAAP diluted EPS to projected Adjusted EPS, outlining the specific non-GAAP adjustments. These include amortization of intangible assets, net realized capital losses, acquisition-related transaction and integration costs for Signify Health and Oak Street Health, restructuring charges related to streamlining the organization and terminating certain initiatives, office real estate optimization charges, and a loss on assets held for sale concerning the long-term care business. Investors should note that the Adjusted EPS is a non-GAAP measure and should be considered alongside GAAP measures, as defined by the company.

Key Highlights

  • 1CVS Health reaffirms its full-year 2023 GAAP diluted EPS guidance of $6.53 to $6.75.
  • 2Full-year 2023 Adjusted EPS guidance remains unchanged at $8.50 to $8.70.
  • 3The company reiterates its full-year 2023 cash flow from operations guidance of $12.5 billion to $13.5 billion.
  • 4Investor meetings and a webcast are scheduled for September 12, 2023, to discuss financial outlook.
  • 5Detailed reconciliation of GAAP EPS to Adjusted EPS is provided, including adjustments for amortization, capital losses, acquisition costs, restructuring, real estate optimization, and loss on assets held for sale.
  • 6Acquisition-related costs specifically mention Signify Health and Oak Street Health.
  • 7Restructuring charges are attributed to streamlining operations and terminating certain initiatives.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce upcoming investor meetings and a webcast where CVS Health's senior management will reaffirm the company's previously issued full-year 2023 financial guidance for GAAP diluted EPS, Adjusted EPS, and cash flow from operations.

No, CVS Health is reaffirming its existing full-year 2023 financial guidance. The projected GAAP diluted EPS range remains $6.53 to $6.75, the Adjusted EPS range is $8.50 to $8.70, and the cash flow from operations is expected to be between $12.5 billion and $13.5 billion.

The significant non-GAAP adjustments include amortization of intangible assets, net realized capital losses, acquisition-related transaction and integration costs (specifically for Signify Health and Oak Street Health), restructuring charges, office real estate optimization charges, and a loss on assets held for sale related to the long-term care business. The filing also details the tax impact of these adjustments.

CVS Health defines Adjusted EPS by excluding items such as amortization of intangible assets, net realized capital gains or losses, acquisition-related costs, restructuring charges, real estate optimization charges, and losses on assets held for sale from its GAAP net income. The company uses these non-GAAP measures to analyze underlying business performance. Investors are cautioned that non-GAAP measures should not be considered a substitute for, or superior to, GAAP measures and may not be comparable to similarly titled measures reported by other companies.