Summary
McKesson Corporation's 2012 10-K filing details a strong year of revenue growth, primarily driven by its Distribution Solutions segment, which accounted for 97% of total revenues. The company reported a 10% increase in revenue to $122.7 billion, with significant contributions from the acquisition of US Oncology. Gross profit also saw a 10% increase, benefiting from higher generic drug sales and improved margins in both segments. Operating expenses rose due to the US Oncology acquisition and increased employee compensation, but were partly offset by lower litigation charges compared to the prior year. The company demonstrated a commitment to shareholder returns through substantial share repurchases, including a significant Accelerated Share Repurchase (ASR) program. McKesson's financial position remained robust, with strong operating cash flow supporting its activities and a stable debt-to-capital ratio.
Financial Highlights
59 data points| Revenue | $122.32B |
| Cost of Revenue | $115.92B |
| Gross Profit | $6.40B |
| R&D Expenses | $402.00M |
| SG&A Expenses | $3.73B |
| Operating Expenses | $4.28B |
| Operating Income | $2.12B |
| Net Income | $1.40B |
| EPS (Basic) | $5.70 |
| EPS (Diluted) | $5.59 |
| Shares Outstanding (Basic) | 246.00M |
| Shares Outstanding (Diluted) | 251.00M |
Key Highlights
- 1McKesson Corporation reported a 10% increase in total revenues, reaching $122.7 billion for the fiscal year ended March 31, 2012.
- 2The Distribution Solutions segment continues to be the primary revenue driver, accounting for 97% of total revenues, with strong performance driven by market growth and the acquisition of US Oncology.
- 3Gross profit increased by 10% to $6.6 billion, with gross profit margin improving slightly to 5.35% due to higher generic drug sales and contributions from US Oncology.
- 4The company actively returned capital to shareholders, repurchasing approximately $1.85 billion of its common stock during the fiscal year, including a $1.2 billion ASR program.
- 5Operating expenses were impacted by the US Oncology acquisition and higher employee costs, but also benefited from a reduction in Average Wholesale Price (AWP) litigation charges compared to the prior year.
- 6Net income increased by 17% to $1.4 billion, or $5.59 per diluted share, reflecting revenue growth and effective cost management.
- 7McKesson maintained a strong liquidity position, with net cash provided by operating activities totaling $2.95 billion.