CVS Caremark Reports Third Quarter Results

                  CVS Caremark Reports Third Quarter Results

2012 GUIDANCE RAISED AND NARROWED TO REFLECT STRONG PERFORMANCE YEAR-TO-DATE
AND SOLID OUTLOOK FOR THE REMAINDER OF THE YEAR

PR Newswire

WOONSOCKET, R.I., Nov. 6, 2012

WOONSOCKET, R.I., Nov. 6, 2012 /PRNewswire/ --CVS Caremark Corporation (NYSE:
CVS) today announced operating results for the three months ended September
30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20090226/NE75914LOGO )

Third Quarter and Year-Over-Year Highlights:

  oNet revenues increased 13.3% to a record $30.2 billion, with Pharmacy
    Services up 22.2% and Retail Pharmacy up 5.5%
  oRetail Pharmacy same stores sales increased 4.3%
  oIncome from continuing operations increased 16.7%
  oAdjusted EPS increased 21.4% to $0.85; GAAP diluted EPS from continuing
    operations of $0.79

Year-to-Date Highlights:

  oFree cash flow of $4.1 billion
  oCash flow from operations of $4.9 billion

2012 Guidance:

  oFull-year Adjusted EPS raised and narrowed to $3.38 to $3.41
  oFull-year GAAP diluted EPS from continuing operations raised and narrowed
    to$3.15 to $3.18
  oConfirmed full-year free cash flow guidance of $4.6 to $4.9 billion and
    cash flow from operations of $6.2 to $6.4 billion

Revenues

Net revenues for the three months ended September 30, 2012 increased 13.3%, or
$3.6 billion, to $30.2 billion, up from $26.7 billion in the three months
ended September 30, 2011.

Revenues in the Pharmacy Services Segment increased 22.2% to $18.1 billion in
the three months ended September 30, 2012. This increase was primarily driven
by new client starts associated with our highly successful 2012 selling
season, drug cost inflation, and the growth of our Medicare Part D program.
Pharmacy network claims processed during the three months ended September 30,
2012 increased 10.0%, to 197.0 million, compared to 179.2 million in the prior
year period. The increase in pharmacy network claims was primarily due to new
client starts, as well as higher claims activity associated with our Medicare
Part D program. Mail choice claims processed during the three months ended
September 30, 2012 increased approximately 16.3% to 20.4 million compared to
17.5 million in the prior year period. The increase in the mail choice claim
volume was primarily driven by new client starts and the continued adoption of
our unique Maintenance Choice^® program.

Revenues in the Retail Pharmacy Segment increased 5.5% to $15.5 billion in the
three months ended September 30, 2012. Same store sales increased 4.3% over
the prior year period, with pharmacy same store sales increasing 5.3% over the
prior year period. The increase in pharmacy same store sales included a
significant benefit associated with Walgreens not being part of the Express
Scripts pharmacy provider network for the majority of the quarter as well as
strong underlying prescription growth. Pharmacy same store prescription
volumes rose 8.7% when 90-day scripts are counted as one script. When
converting 90-day scripts into three scripts, our same store prescription
volumes increased 11.1% in the quarter. Pharmacy same store sales were
negatively impacted by approximately 905 basis points due to recent generic
introductions. Front store same store sales increased 2.2% in the three months
ended September 30, 2012.

For the three months ended September 30, 2012, the generic dispensing rate
increased approximately 500 basis points to 79.3% in our Pharmacy Services
Segment and 420 basis points to 79.9% in our Retail Pharmacy Segment, compared
to the prior year period.

Income from Continuing Operations Attributable to CVS Caremark

Income from continuing operations attributable to CVS Caremark for the three
months ended September 30, 2012 increased $143 million, to approximately $1.0
billion, compared with $868 million during the three months ended September
30, 2011 attributable to both our Retail Pharmacy and Pharmacy Services
segments. Both segments benefited from the impact of increased generic drugs
dispensed and the continued growth of our Maintenance Choice program. Our
retail business benefited significantly from the contractual impasse between
Walgreens and Express Scripts which ended effective September 15, 2012. Our
pharmacy benefit management business benefited from the growth of our Medicare
Part D business as well as 2012 new client starts. Adjusted earnings per share
from continuing operations attributable to CVS Caremark ("Adjusted EPS") for
the three months ended September 30, 2012 and 2011 were $0.85 and $0.70,
respectively. Adjusted EPS excludes $121 million and $118 million of
intangible asset amortization related to acquisition activity in the three
months ended September 30, 2012 and 2011, respectively. GAAP earnings per
diluted share from continuing operations attributable to CVS Caremark for the
three months ended September 30, 2012 and 2011 were $0.79 and $0.65,
respectively.

Larry Merlo, president and CEO, stated, "I'm very pleased with our third
quarter earnings, which exceeded the high end of our guidance range by two
cents per share. We posted strong results across the enterprise, with the
Pharmacy Services Segment significantly outpacing our growth expectations. The
retail pharmacy business continued to capitalize on the market disruption
resulting from the impasse between two of our competitors, and our retention
of the prescriptions we gained during that impasse has been strong since their
dispute was resolved in mid-September. Given what we have seen to date, we are
optimistic that we will exceed our initial retention goal for the fourth
quarter and now expect to retain at least 60% of the prescriptions gained
during the impasse."

Mr. Merlo added: "We continue to deliver substantial free cash flow and to
return significant value to our shareholders. Between dividends and share
repurchases, we have returned more than $4.8 billion to our shareholders
year-to-date and we remain highly focused on enhancing shareholder returns."

Real Estate Program

During the three months ended September 30, 2012, the Company opened 45 new
retail drugstores and closed three retail drugstores. In addition, the Company
relocated 18 retail drugstores. As of September 30, 2012, the Company operated
7,500 locations, including 7,423 retail drugstores, 28 onsite pharmacies, 31
retail specialty pharmacy stores, 12 specialty mail order pharmacies and six
mail order pharmacies in 44 states, the District of Columbia and Puerto Rico.

Guidance

Given the strong third-quarter performance, the anticipated benefit from the
accelerated share repurchase program announced in September 2012, and the
Company's optimism about retaining at least 60% of the prescriptions gained
during the impasse between two of its competitors, the Company is raising and
narrowing its guidance for the full year. The Company currently expects to
achieve Adjusted EPS for 2012 in the range of $3.38 to $3.41, up from its
previous range of $3.32 to $3.38, and GAAP diluted EPS from continuing
operations in the range of $3.15 to $3.18, up from its previous range of $3.09
to $3.15. The Company reiterated its 2012 free cash flow guidance and expects
to generate between $4.6 billion and $4.9 billion for the year. Further, the
Company confirmed that it expects to generate cash flow from operations in
2012 in the range of $6.2 billion to $6.4 billion.These 2012 guidance
estimates include the completion of the accelerated share repurchase agreement
of $1.2 billion entered into on September 19, 2012.

Teleconference and Webcast

The Company will be holding a conference call today for the investment
community at 8:30 a.m. (EST) to discuss its quarterly results. An audio
webcast of the call will be broadcast simultaneously for all interested
parties through the Investor Relations section of the CVS Caremark website at
http://info.cvscaremark.com/investors. This webcast will be archived and
available on the website for a one-year period following the conference call.

About the Company

CVS Caremark is dedicated to helping people on their path to better health as
the largest integrated pharmacy company in the United States. Through the
Company's more than 7,400 CVS/pharmacy^® stores; its leading pharmacy benefit
manager serving more than 60 million plan members; and its retail health
clinic system, the largest in the nation with approximately 600 MinuteClinic^®
locations, it is a market leader in mail order, retail and specialty pharmacy,
retail clinics, and Medicare Part D Prescription Drug Plans. As a pharmacy
innovation company with an unmatched breadth of capabilities, CVS Caremark
continually strives to improve health and lower costs by developing new
approaches such as its unique Pharmacy Advisor^® program that helps people
with chronic diseases such as diabetes obtain and stay on their
medications.Find more information about how CVS Caremark is reinventing
pharmacy for better health at http://info.cvscaremark.com/.

Forward-Looking Statements

This press release contains certain forward-looking statements that are
subject to risks and uncertainties that could cause actual results to differ
materially. For these statements, the Company claims the protection of the
safe harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. The Company strongly recommends that you become
familiar with the specific risks and uncertainties outlined under the Risk
Factors section in our Annual Report on Form 10-K for the year ended December
31, 2011 and under the section entitled "Cautionary Statement Concerning
Forward-Looking Statements" in our most recently filed Quarterly Report on
Form 10-Q.

– Tables Follow –

CVS CAREMARK CORPORATION
Condensed Consolidated Statements of Income
(Unaudited)

                            Three Months Ended        Nine Months Ended
                            September 30,             September 30,
In millions, except per     2012^(1)    2011          2012^(1)     2011
share amounts
Net revenues                $ 30,227   $ 26,674     $  91,739   $  78,783
Cost of revenues            24,580      21,496        75,530       63,777
Gross profit                5,647       5,178         16,209       15,006
Operating expenses          3,833       3,594         11,284       10,633
Operating profit            1,814       1,584         4,925        4,373
Interest expense, net       134         155           397          437
Income before income tax    1,680       1,429         4,528        3,936
provision
Income tax provision        669         562           1,775        1,547
Income from continuing      1,011       867           2,753        2,389
operations
Income (loss) from
discontinued operations,    (5)         —             (7)          5
net of tax
Net income                  1,006       867           2,746        2,394
Net loss attributable to    —           1             2            3
noncontrolling interest
Net income attributable to  $  1,006   $    868  $   2,748  $   2,397
CVS Caremark
Income from continuing
operations attributable to
CVS
 Caremark:
 Income from continuing  $  1,011  $    867  $   2,753  $   2,389
operations
 Net loss attributable   —           1             2            3
to noncontrolling interest
 Income from continuing
operations attributable to  $  1,011  $    868  $   2,755  $   2,392
CVS Caremark
Basic earnings per common
share: ^                                                         
                                                      $   2.15
 Income from continuing    $  0.80   $  0.65                  $  1.77
operations attributable to
CVS Caremark
 Income (loss) from
discontinued operations     —           —             (0.01)       0.01
attributable to CVS
Caremark
 Net income attributable $   0.80  $  0.65     $   2.15   $  1.78
to CVS Caremark
 Weighted average basic  1,265       1,332         1,281        1,350
common shares outstanding
Diluted earnings per common
share: ^                                                        

Income from continuing      $  0.79   $  0.65     $  2.14    $   1.76
operations attributable to
CVS Caremark
 Income (loss) from
discontinued operations     —           —             (0.01)       0.01
attributable to CVS
Caremark
 Net income attributable $  0.79   $  0.65     $  2.13    $   1.77
to CVS Caremark
 Weighted average
diluted common shares       1,274       1,340         1,290        1,356
outstanding
Dividends declared per      $0.1625     $ 0.1250     $0.4875      $ 0.3750
common share

(1) Effective January 1, 2012, the Company changed its methods of
accounting for prescription drug inventories in the Retail Pharmacy Segment.
Additional details of this accounting change are discussed in Note 2 to the
condensed consolidated financial statements included in the Company's Form
10-Q for the quarter ended September 30, 2012.

CVS CAREMARK CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)

                                            September 30,       December 31,

In millions, except per share amounts        2012^(1)            2011
Assets:
 Cash and cash equivalents                $             $      
                                             1,233               1,413
 Short-term investments                   5                   5
 Accounts receivable, net                 6,407               6,047
 Inventories                              10,487              10,046
 Deferred income taxes                    535                 503
 Other current assets                     212                 580
 Total current assets                  18,879              18,594
 Property and equipment, net              8,369               8,467
 Goodwill                                 26,422              26,458
 Intangible assets, net                   9,801               9,869
 Other assets                             1,325               1,155
 Total assets                          $      64,796  $     
                                                                 64,543
Liabilities:
 Accounts payable                         $             $      
                                             5,091               4,370
 Claims and discounts payable             3,724               3,487
 Accrued expenses                         3,618               3,293
 Short-term debt                          825                 750
 Current portion of long-term debt        5                   56
 Total current liabilities             13,263              11,956
 Long-term debt                           9,210               9,208
 Deferred income taxes                    3,894               3,853
 Other long-term liabilities              1,513               1,445
 Commitments and contingencies
 Redeemable noncontrolling interest       —                   30
Shareholders' equity:
Preferred stock, par value $0.01: 0.1 share
authorized; none issued or                   —                   —

 outstanding
Common stock, par value $0.01: 3,200 shares
authorized; 1,662 shares

 issued and 1,246 shares
outstanding at September 30, 2012 and        17                  16

 1,640 shares issued and
1,298 shares outstanding at December 31,

2011
Treasury stock, at cost: 415 shares at
September 30, 2012 and 340                   (15,937)            (11,953)

shares at December 31, 2011
Shares held in trust: 1 share at September
30, 2012                                     (31)                (56)

 and 2 shares at December 31, 2011
Capital surplus                              28,914              28,126
Retained earnings                            24,123              22,090
Accumulated other comprehensive loss         (170)               (172)
 Total shareholders' equity               36,916              38,051
Total liabilities and shareholders' equity   $      64,796  $     
                                                                 64,543

(1) Effective January 1, 2012, the Company changed its methods of
accounting for prescription drug inventories in the Retail Pharmacy Segment.
Additional details of this accounting change are discussed in Note 2 to the
condensed consolidated financial statements included in the Company's Form
10-Q for the quarter ended September 30, 2012.

CVS CAREMARK CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)

                                            Nine Months Ended
                                            September 30,
In millions                                 2012^(1)           2011
Cash flows from operating activities:
 Cash receipts from customers            $    84,463    $  72,875
 Cash paid for inventory and
prescriptions dispensed by retail network   (67,464)           (55,625)
pharmacies
 Cash paid to other suppliers and        (10,120)           (10,092)
employees
 Interest received                       2                  3
 Interest paid                           (411)              (454)
 Income taxes paid                       (1,530)            (1,672)
Net cash provided by operating activities   4,940              5,035
Cash flows from investing activities:
 Purchases of property and equipment     (1,314)            (1,168)
 Proceeds from sale-leaseback            427                11
transactions
 Proceeds from sale of property and      —                  1
equipment
 Acquisitions (net of cash acquired) and (303)              (1,406)
other investments
 Purchase of available-for-sale          —                  (3)
investments
 Maturity of available-for-sale          —                  2
investments
 Proceeds from sale of subsidiary        7                  —
Net cash used in investing activities       (1,183)            (2,563)
Cash flows from financing activities:
 Increase in short-term debt             75                 230
 Proceeds from issuance of long-term     —                  1,463
debt
 Repayments of long-term debt            (56)               (1,149)
 Purchase of noncontrolling interest in  (26)               —
subsidiary
 Dividends paid                          (627)              (508)
 Derivative settlements                  —                  (19)
 Proceeds from exercise of stock options 677                341
 Excess tax benefits from stock-based    21                 12
compensation
 Repurchase of common stock              (4,001)            (2,553)
 Other                                   —                  (9)
Net cash used in financing activities       (3,937)            (2,192)
Net increase (decrease) in cash and cash    (180)              280
equivalents
Cash and cash equivalents at beginning of   1,413              1,427
period
Cash and cash equivalents at end of period  $      1,233  $   1,707


Reconciliation of net income to net cash
provided by operating activities:
 Net income                              $     2,746   $     2,394
 Adjustments required to reconcile net
income to net cash provided by operating

activities:
 Depreciation and amortization     1,297              1,172
 Stock-based compensation          97                 100
 Deferred income taxes and other   87                 134
noncash items
  Change in operating assets and
liabilities, net of effects from
acquisitions:
  Accounts receivable, net        (296)              (479)
  Inventories                 (586)              316
  Other current assets        425                (173)
  Other assets                (142)              (52)
  Accounts payable and claims 919                716
and discounts payable
  Accrued expenses            325                980
  Other long-term liabilities 68                 (73)
Net cash provided by operating activities   $     4,940   $     5,035

(1)Effective January 1, 2012, the Company changed its methods of
accounting for prescription drug inventories in the Retail Pharmacy Segment.
Additional details of this accounting change are discussed in Note 2 to the
condensed consolidated financial statements included in the Company's Form
10-Q for the quarter ended September 30, 2012.

Adjusted Earnings Per Share
(Unaudited)

For internal comparisons, management finds it useful to assess year-to-year
performance by adjusting diluted earnings per share for amortization, which
primarily relates to acquisition activities.

The Company defines adjusted earnings per share as income before income tax
provision plus amortization, less adjusted income tax provision, plus net loss
attributable to noncontrolling interest divided by the weighted average
diluted common shares outstanding.

The following is a reconciliation of income before income tax provision to
adjusted earnings per share:

                                   Three Months Ended      Nine Months Ended
                                   September 30,           September 30,
In millions, except per share      2012       2011         2012     2011
amounts
Income before income tax provision $      $   1,429  $      $  3,936
                                   1,680                   4,528
Amortization                       121        118          362      338
Adjusted income before income tax  1,801      1,547        4,890    4,274
provision
Adjusted income tax provision^(1)  717        608          1,916    1,679
Adjusted income from continuing    1,084      939          2,974    2,595
operations
Net loss attributable to           —          1            2        3
noncontrolling interest
Adjusted income from continuing
operations attributable to         $       $         $      $  2,598
                                   1,084      940         2,976
 CVS Caremark
Weighted average diluted common    1,274      1,340        1,290    1,356
shares outstanding
Adjusted earnings per share from
continuing operations              $       $         $     $   
                                   0.85      0.70         2.31    1.91
 attributable to CVS Caremark

(1) The adjusted income tax provision is computed using the effective
income tax rate from the consolidated statement of income.

Free Cash Flow
(Unaudited)

The Company defines free cash flow as net cash provided by operating
activities less net additions to properties and equipment (i.e., additions to
property and equipment plus proceeds from sale-leaseback transactions).

The following is a reconciliation of net cash provided by operating activities
to free cash flow:

                                             Nine Months Ended
                                             September 30,
In millions                                  2012                2011
Net cash provided by operating activities    $    4,940       $    5,035
 Subtract: Additions to property and        (1,314)             (1,168)
equipment
 Add: Proceeds from sale-leaseback          427                 11
transactions
Free cash flow                               $      4,053  $    3,878

Supplemental Information
(Unaudited)

The Company evaluates its Pharmacy Services and Retail Pharmacy segment
performance based on net revenue, gross profit and operating profit before the
effect of nonrecurring charges and gains and certain intersegment activities.
The Company evaluates the performance of its Corporate Segment based on
operating expenses before the effect of nonrecurring charges and gains and
certain intersegment activities. The following is a reconciliation of the
Company's segments to the accompanying consolidated financial statements:

             Pharmacy     Retail
                                    Corporate  Intersegment      Consolidated
             Services     Pharmacy
In millions                          Segment    Eliminations^(2)  Totals
             Segment^(1)  Segment
Three Months
Ended
 September                                                   
30, 2012:
             $       $      $      $            $  
 Net       18,079     15,504     --        (3,356)          30,227
revenues
 Gross    1,081        4,672      --         (106)             5,647
profit

Operating    784          1,305      (169)      (106)             1,814
profit
(loss)
 September
30, 2011:                                                     

 Net      14,798       14,693     --         (2,817)           26,674
revenues
 Gross    914          4,306      --         (42)              5,178
profit

Operating    657          1,123      (154)      (42)              1,584
profit
(loss)
Nine Months
Ended
 September
30, 2012:                                                     

 Net      54,802       47,373     --         (10,436)          91,739
revenues
 Gross    2,474        14,014     --         (279)             16,209
profit

Operating    1,644        4,071      (511)      (279)             4,925
profit
(loss)
 September
30, 2011:                                                     

 Net      43,000       44,106     --         (8,323)           78,783
revenues
 Gross    2,263        12,860     --         (117)             15,006
profit

Operating    1,496        3,459      (465)      (117)             4,373
profit
(loss)
Total
assets:
 September  35,565       28,614     1,282      (665)             64,796
30, 2012
 December   35,704       28,323     1,121      (605)             64,543
31, 2011
Goodwill:
 September  19,621       6,801      --         --                26,422
30, 2012 ^
 December   19,657       6,801      --         --                26,458
31, 2011

(1) Net revenues of the Pharmacy Services Segment include approximately
$2.0 billion and $1.9 billion of retail co-payments for the three months ended
September 30, 2012 and 2011, respectively, as well as $6.4 billion and $6.0
billion of retail co-payments for the nine months ended September 30, 2012 and
2011, respectively.

(2) Intersegment eliminations relate to two types of transactions: (i)
Intersegment revenues that occur when Pharmacy Services Segment customers use
Retail Pharmacy Segment stores to purchase covered products. When this occurs,
both the Pharmacy Services and Retail Pharmacy segments record the revenue on
a standalone basis, and (ii) Intersegment revenues, gross profit and operating
profit that occur when Pharmacy Services Segment customers, through the
Company's intersegment activities (such as the Maintenance Choice program),
elect to pick-up their maintenance prescriptions at Retail Pharmacy Segment
stores instead of receiving them through the mail. When this occurs, both the
Pharmacy Services and Retail Pharmacy segments record the revenue, gross
profit and operating profit on a standalone basis. Beginning in the fourth
quarter of 2011, the Maintenance Choice eliminations reflect all discounts
available for the purchase of mail order prescription drugs. The following
amounts are eliminated in consolidation in connection with the item (ii)
intersegment activity: net revenues of $841 million and $657 million for the
three months ended September 30, 2012 and 2011, respectively, and $2.5 billion
and $1.8 billion for the nine months ended September 30, 2012 and 2011,
respectively; gross profit and operating profit of $106 million and $42
million for the three months ended September 30, 2012 and 2011, respectively,
and $279 million and $117 million for the nine months ended September 30, 2012
and 2011, respectively.

Supplemental Information
(Unaudited)
Pharmacy Services Segment

The following table summarizes the Pharmacy Services Segment's performance for
the respective periods:

                                    Three Months Ended   Nine Months Ended
                                    September 30,        September 30,
In millions                         2012     2011        2012      2011
Net revenues                        $18,079  $ 14,798    $ 54,802  $  43,000
Gross profit                        1,081    914         2,474     2,263
 Gross profit % of net revenues  6.0%     6.2%        4.5%      5.3%
Operating expenses                  297      257         830       767
 Operating expense % of net     1.6%     1.7%        1.5%      1.8%
revenues
Operating profit                    784      657         1,644     1,496
 Operating profit % of net      4.3%     4.4%        3.0%      3.5%
revenues
Net revenues^(1):
 Mail choice^(2)                 $ 5,675  $  4,741  $ 17,084  $  13,715
 Pharmacy network^(3)             12,363   10,003      37,573    29,116
 Other                           41       54          145       169
Pharmacy claims processed^(1):
 Total                           217.4    196.7       654.6     563.7
 Mail choice^(2)                 20.4     17.5        61.3      52.8
 Pharmacy network^(3)            197.0    179.2       593.3     510.9
Generic dispensing rate^(1):
 Total                           79.3%    74.3%       78.0%     74.0%
 Mail choice^(2)                 73.1%    65.0%       71.1%     64.4%
 Pharmacy network^(3)            79.9%    75.3%       78.6%     75.0%
Mail choice penetration rate        22.9%    21.8%       22.9%     22.8%

(1) Pharmacy network net revenues, claims processed and generic dispensing
rates do not include Maintenance Choice, which are included within the mail
choice category.

(2) Mail choice is defined as claims filled at a Pharmacy Services' mail
facility, which includes specialty mail claims, as well as 90-day claims
filled at retail under the Maintenance Choice program.

(3) Pharmacy network is defined as claims filled at retail pharmacies,
including our retail drugstores.

EBITDA and EBITDA per Adjusted Claim
(Unaudited)

The Company defines EBITDA as earnings before interest, taxes, depreciation
and amortization. We define EBITDA per adjusted claim as EBITDA divided by
adjusted pharmacy claims. Adjusted pharmacy claims normalize the claims volume
statistic for the difference in average days' supply for mail and retail
claims. Adjusted pharmacy claims are calculated by multiplying 90-day claims
(the majority of total mail claims) by 3 and adding the 30-day claims. EBITDA
can be reconciled to operating profit, which we believe to be the most
directly comparable GAAP financial measure.

The following is a reconciliation of operating profit to EBITDA for the
Pharmacy Services Segment:

                                  Three Months Ended  Nine Months Ended
                                  September 30,       September 30,
In millions, except per adjusted  2012      2011      2012         2011
claim amounts
Operating profit                  $  784  $  657  $   1,644  $   1,496
Depreciation and amortization     130       112       380          317
EBITDA                            914       769       2,024        1,813
Adjusted claims                   255.4     229.2     769.1        661.7
EBITDA per adjusted claim         $  3.58  $  3.35  $   2.63  $   2.74

Supplemental Information
(Unaudited)

Retail Pharmacy Segment

The following table summarizes the Retail Pharmacy Segment's performance for
the respective periods:

                                         Three Months Ended  Nine Months Ended
                                         September 30,       September 30,
In millions                              2012       2011     2012      2011
Net revenues                             $15,504    $14,693  $47,373   $44,106
Gross profit                             4,672      4,306    14,014    12,860
 Gross profit % of net revenues       30.1%      29.3%    29.6%     29.2%
Operating expenses                       3,367      3,183    9,943     9,401
 Operating expense % of net revenues 21.7%      21.7%    21.0%     21.3%
Operating profit                         1,305      1,123    4,071     3,459
 Operating profit % of net revenues  8.4%       7.6%     8.6%      7.8%
Retail prescriptions filled (90 Day =    176.5      161.0    532.4     488.9
1Rx)
Retail prescriptions filled (90 Day = 3  209.8      187.5    628.3     565.5
Rx) ^ (1)
Net revenue increase:
 Total                                5.5%       3.8%     7.4%      3.9%
 Pharmacy                             6.3%       3.6%     8.6%      4.2%
 Front store                          3.7%       4.2%     4.9%      3.3%
Total prescription volume (90 Day = 1    9.6%       2.1%     8.9%      3.5%
Rx)
Total prescription volume (90 Day = 3    11.8%      4.3%     11.0%     5.6%
Rx) ^ (1)
Same store increase:
 Total sales                          4.3%       2.3%     6.1%      2.3%
 Pharmacy sales                       5.3%       2.4%     7.4%      2.8%
 Front store sales                    2.2%       2.0%     3.2%      1.1%
 Prescription volume (90 Day = 1 Rx)  8.7%       1.0%     7.8%      2.3%
 Prescription volume (90 Day = 3 Rx)  11.1%      3.1%     10.0%     4.4%
^ (1)
Generic dispensing rate                  79.9%      75.7%    79.0%     75.5%
Pharmacy % of total revenues             69.1%      68.5%    69.3%     68.5%
Third party % of pharmacy revenue        97.6%      97.9%    98.0%     97.8%

(1) Includes the adjustment to convert 90-day prescriptions to the
equivalent of three 30-day prescriptions. This adjustment reflects the fact
that these prescriptions include approximately three times the amount of
product days supplied compared to a normal prescription.

Adjusted Earnings Per Share Guidance
(Unaudited)

The following reconciliation of estimated income before income tax provision
to estimated adjusted earnings per share contains forward-looking information
that is subject to risks and uncertainties that could cause actual results to
differ materially. The Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995. The Company strongly recommends that you become familiar
with the specific risks and uncertainties outlined under the Risk Factors
section in our Annual Report on Form 10-K for the year ended December 31, 2011
and under the section entitled "Cautionary Statement Concerning
Forward-Looking Statements" in our most recently filed Quarterly Report on
Form 10-Q. For internal comparisons, management finds it useful to assess
year-to-year performance by adjusting diluted earnings per share for
amortization, which primarily relates to acquisition activities.



                                               Year Ending
In millions, except per share amounts          December 31, 2012
Income before income tax provision             $    6,626     $   6,683
Amortization                                   482               482
Adjusted income before income tax provision    7,108             7,165
Adjusted income tax provision                  2,772             2,794
Adjusted income from continuing operations     4,336             4,371
Net loss attributable to noncontrolling        2                 2
interest
Adjusted income from continuing operations     $    4,338    $   4,373
attributable to CVS Caremark
Weighted average diluted common shares         1,283             1,283
outstanding
Adjusted earnings per share from continuing
operations attributable to CVS                 $      3.38  $    3.41

Caremark

Free Cash Flow Guidance
(Unaudited)

The following reconciliation of net cash provided by operating activities to
free cash flow contains forward-looking information that is subject to risks
and uncertainties that could cause actual results to differ materially. The
Company claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
The Company strongly recommends that you become familiar with the specific
risks and uncertainties outlined under the Risk Factors section in our Annual
Report on Form 10-K for the year ended December 31, 2011 and under the section
entitled "Cautionary Statement Concerning Forward-Looking Statements" in our
most recently filed Quarterly Report on Form 10-Q. For internal comparisons,
management finds it useful to assess year-to-year cash flow performance by
adjusting cash provided by operating activities, by capital expenditures and
proceeds from sale-leaseback transactions.



                                           Year Ending
In millions                                December 31, 2012
Net cash provided by operating activities  $     6,249  $      6,423
 Subtract: Additions to property and   (2,100)          (2,025)
equipment
 Add: Proceeds from sale-leaseback     500              550
transactions
Free cash flow                             $     4,649  $      4,948



SOURCE CVS Caremark Corporation

Website: http://info.cvscaremark.com
Contact: Investor Contact: Nancy Christal, Senior Vice President, Investor
Relations, +1-914-722-4704; or Media Contact: Eileen H. Boone, Senior Vice
President, Corporate Communications & Community Relations, +1-401-770-4561
 
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