Summary
McKesson Corporation's 2013 10-K filing reveals a company with robust operations primarily driven by its Distribution Solutions segment, which accounts for the vast majority of its revenue. The company experienced stable revenues year-over-year, with total revenues reaching $122.455 billion for the fiscal year ending March 31, 2013. This stability was maintained despite some customer losses and price deflation in the generics market, offset by market growth and strategic acquisitions, notably the acquisition of PSS World Medical. Profitability showed strength, with gross profit increasing due to higher generics income, business acquisitions, and improved buy margins, though partially offset by decreased sell margins and product alignment charges. The company also continued its share repurchase program, returning value to shareholders, and maintained a solid financial position with adequate liquidity. Despite facing various legal proceedings and regulatory challenges inherent in the healthcare industry, McKesson demonstrated resilience, with management expressing confidence in its internal controls and future prospects.
Financial Highlights
59 data points| Revenue | $122.20B |
| Cost of Revenue | $115.31B |
| Gross Profit | $6.88B |
| R&D Expenses | $433.00M |
| SG&A Expenses | $4.11B |
| Operating Expenses | $4.53B |
| Operating Income | $2.35B |
| Net Income | $1.34B |
| EPS (Basic) | $5.71 |
| EPS (Diluted) | $5.59 |
| Shares Outstanding (Basic) | 235.00M |
| Shares Outstanding (Diluted) | 239.00M |
Key Highlights
- 1McKesson reported stable revenues of $122.455 billion for the fiscal year ended March 31, 2013, largely driven by its Distribution Solutions segment.
- 2Gross profit increased by 6% year-over-year, with gross profit margin improving to 5.70% due to higher generics income, acquisitions, and buy margins.
- 3The company actively repurchased its common stock, with a total authorization of $1.1 billion outstanding at March 31, 2013, indicating a commitment to shareholder returns.
- 4Significant acquisitions were made, including PSS World Medical for approximately $1.9 billion, aimed at expanding its Medical-Surgical business.
- 5The Technology Solutions segment saw revenue growth, though it faced impairment charges related to software products.
- 6McKesson highlighted its ongoing participation in legal proceedings, particularly concerning Average Wholesale Price (AWP) litigation, with several state settlements reached during the fiscal year.
- 7The company maintained effective internal controls over financial reporting, as audited by Deloitte & Touche LLP.