On May 8, CVS/Caremark
- The merger between CVS and Caremark closed on March 22, so the results reflect 10 days of the consolidated company.
- Merger and integration expenses are estimated to have shortened earnings by $25.3 million, lowering shareholder profits a penny.
- While increasing demand for generic drugs curtailed the top line, revenue still posted an impressive 32.1% surge.
- Front-end comparable sales rose a solid 6.6%, driven primarily by health and beauty products, digital photo services, and private label and proprietary brand sales.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$13,184.6 |
$9,979.2 |
32.1% |
|
Net Profit |
$405.4 |
$326.1 |
24.3% |
|
EPS |
$0.43 |
$0.39 |
10.3% |
|
Diluted Shares |
939.8 |
848.5 |
10.8% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
25.4% |
26.6% |
(1.2) |
|
Operating Margin |
5.6% |
5.6% |
(0.0) |
|
Net Margin |
3.1% |
3.3% |
(0.2) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$738.2 |
$387.1 |
90.7% |
|
Accounts Rec. |
$4,485.4 |
$2,015.0 |
122.6% |
|
Inventory |
$7,427.1 |
$5,704.8 |
30.2% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,371.1 |
$2,437.6 |
38.3% |
|
Long-Term Debt |
$2,895.4 |
$1,592.2 |
81.8% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$707.7 |
$171.7 |
312.2% |
|
Capital Expenditures |
$311.9 |
$283.7 |
9.9% |
|
Free Cash Flow |
$395.8 |
($112.0) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
