Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,553.27 37.00 0.25%
TOPIX 1,173.74 0.37 0.03%
HANG SENG 22,760.24 64.23 0.28%

CareFusion Files Fiscal 2012 Form 10-K



                    CareFusion Files Fiscal 2012 Form 10-K

PR Newswire

SAN DIEGO, Jan. 31, 2013

SAN DIEGO, Jan. 31, 2013 /PRNewswire/ -- CareFusion Corporation (NYSE: CFN)
today announced that it has filed its annual report on Form 10-K for the
fiscal year ended June 30, 2012. The company had delayed the filing to correct
its accounting for sales-type leases in its Pyxis® medication and supply
dispensing product lines.

The accounting correction resulted in immaterial revisions to CareFusion's
preliminary fourth quarter and full-year fiscal 2012 financial results, its
financial statements for fiscal years ended June 30, 2010 and 2011, and
selected financial data for the fiscal years ended June 30, 2008 through 2011.
Although the effect of these revisions was not material to these financial
statements, the cumulative impact would have been material in the fiscal year
ended June 30, 2012, which is why the company made the revisions. These
corrections are considered a restatement under generally accepted accounting
principles.

"This accounting matter did not materially affect our financial results and,
importantly, has no effect on the cash flows we receive under our lease
arrangements," said James F. Hinrichs, chief financial officer. "We are
pleased to have this work completed and remain on track to become current in
our Form 10-Q filings by our next deadline on Feb. 11."

The company intends to report its first and second quarter fiscal 2013 results
on Feb. 7.

Revised financial results

Revisions to the company's preliminary fourth quarter and full-year fiscal
2012 results reflect both the impact of the accounting modification on
sales-type leases and other accounting items recorded in the fourth quarter
because it was considered an open accounting period until CareFusion filed its
Form 10-K. This included a $7 million increase in recall reserves related to a
previously disclosed product recall.  

For the three months ended June 30, 2012, revenue was $961 million; operating
income was $155 million, or $162 million on an adjusted basis excluding
nonrecurring items; and adjusted operating income was 16.9 percent of revenue.
Operating expenses during the quarter totaled $320 million, and adjusted
operating expenses were $313 million. Income from continuing operations was
$91 million, or $0.41 per diluted share. Adjusted income from continuing
operations during the quarter was $98 million, or $0.44 per diluted share.  

For the fiscal year ended June 30, 2012, revenue was $3.6 billion; operating
income was $574 million, or $611 million on an adjusted basis excluding
nonrecurring items; and adjusted operating income was 17 percent of revenue.
Operating expenses during the year were $1.2 billion on both a reported and an
adjusted basis. Income from continuing operations was $361 million, or $1.60
per diluted share. Adjusted income from continuing operations during the year
was $390 million, or $1.72 per diluted share.

Conference call

CareFusion plans to release first and second quarter fiscal 2013 results on
Thursday, Feb. 7, following the close of trading on the New York Stock
Exchange.

The company will host a conference call on Feb. 7 at 2 p.m. PST (5 p.m. EST)
to discuss the results for its first quarter fiscal 2013, ended on Sept. 30,
2012, and second quarter fiscal 2013, ended on Dec. 31, 2012. To access the
call, visit the Investors page at www.carefusion.com/. Log on at least 15
minutes before the call begins to register and download or install any
necessary audio software.

Investors and other interested parties may also access the call by dialing
(800) 706-7748 within the U.S. or (617) 614-3473 from outside the U.S., and
use the access code 86859607. A replay of the conference call will be
available from 4 p.m. PST (7 p.m. EST) on Feb. 7 through 8:59 p.m. PST on Feb.
14 and can be accessed by dialing (888) 286-8010 in the U.S. or (617) 801-6888
from outside the U.S. and using the access code 52148625.

About CareFusion Corporation
CareFusion (NYSE: CFN) is a global corporation serving the health care
industry with products and services that help hospitals measurably improve the
safety and quality of care. The company develops market-leading technologies
including Alaris® infusion pumps, Pyxis® automated dispensing and patient
identification systems, AVEA®, AirLife™ and LTV® series ventilation and
respiratory products, ChloraPrep® products, MedMined® services for data mining
surveillance, V. Mueller® surgical instruments, and an extensive line of
products that support interventional medicine. CareFusion employs more than
15,000 people across its global operations. More information may be found at
www.carefusion.com.

Use of Non-GAAP Financial Measures by CareFusion Corporation

This CareFusion news release and the information contained herein present
non-GAAP financial measures that exclude certain amounts, as follows:
"adjusted operating expenses," "adjusted operating income," and "adjusted
segment profit," which exclude nonrecurring items primarily related to the
spinoff and nonrecurring restructuring and acquisition integration charges;
and "adjusted income from continuing operations" and "adjusted diluted
earnings per share from continuing operations," and "adjusted effective tax
rate," which exclude nonrecurring items primarily related to the spinoff,
nonrecurring restructuring and acquisition integration charges and
nonrecurring tax items. The most directly comparable GAAP financial measures
for these non-GAAP financial measures are operating expenses, operating
income, segment profit, income from continuing operations, diluted earnings
per share from continuing operations, and effective tax rate. The company has
included below unaudited adjusted financial information for the quarter ended
June 30, 2012, and the fiscal years ended June 30, 2010, 2011 and 2012,
including a reconciliation of GAAP to non-GAAP financial measures.

The company's management uses these non-GAAP financial measures to evaluate
the company's performance and provides them to investors as a supplement to
the company's reported results, as they believe this information provides
additional insight into the company's operating performance by disregarding
certain non-recurring items. These non-GAAP financial measures should not be
considered in isolation, as a substitute for, or as superior to, financial
measures calculated in accordance with GAAP, and the company's financial
results calculated in accordance with GAAP and reconciliations to those
financial statements should be carefully evaluated. The non-GAAP financial
measures used by the company may be calculated differently from, and therefore
may not be comparable to, similarly titled measures used by other
companies. While the types of items and charges excluded from the company's
non-GAAP financial measures may occur in the future, the company's management
believes that they are not reflective of the day-to-day offering of its
products and services and relate more to strategic, multi-year corporate
actions, without predictable trends, or discrete and unusual or infrequent
transactions that are not indicative of future operations or business trends. 

Cautions Concerning Forward-looking Statements
The CareFusion news release and the information contained herein present
"forward-looking statements" addressing expectations, prospects, estimates and
other matters that are dependent upon future events or developments, including
statements regarding the modified application of lease accounting principles
to the company's sales-type leases; and the timing for filing the company's
Form 10-Q for the quarter ended Sept. 30 and Form 10-Q for the quarter ended
Dec. 31.  CareFusion intends forward-looking terminology such as "believes,"
"expects," "may," "will," "should," "anticipates," "plans," or similar
expressions to identify forward-looking statements. Such statements are
subject to certain risks and uncertainties, which could cause the company's
actual results to differ materially from those anticipated by the
forward-looking statements. These risks and uncertainties include, but are not
limited to, the risk that additional information may arise during the course
of the company's lease accounting review that may require the company to make
additional adjustments; the time and effort required to complete the company's
analysis and the review by the company's independent auditors; and the time
and effort required to prepare and file its periodic reports with the SEC, as
well as other risks described more fully in Item 1A in the company's Annual
Report on Form 10-K for the fiscal year ended June 30, 2012, which are
expressly incorporated herein by reference, and other factors as may
periodically be described in the company's filings with the SEC. The
CareFusion news release and the information contained herein reflect
management's views as of Jan. 31, 2013. Except to the limited extent required
by applicable law, CareFusion undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

 

CAREFUSION CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
                       Quarter Ended                Fiscal Year Ended
                       June 30,                     June 30,
                       2012                         2012
(in millions, except   Preliminary^1   As           Preliminary^1   As
per share amounts)                     Reported^2                   Reported^2
Revenue              $ 968           $ 961        $ 3,601         $ 3,598
Cost of Products       479             486          1,788           1,794
Sold
  Gross Margin         489             475          1,813           1,804
Selling, General and
Administrative         260             267          1,026           1,033
Expenses
Research and           46              46           164             164
Development Expenses
Restructuring and
Acquisition            7               7            33              33
Integration Charges
Gain on the Sale of    -               -            -               -
Assets
  Operating Income     176             155          590             574
Interest Expense and   23              24           86              87
Other, Net
Income Before Income   153             131          504             487
Tax
Provision for Income   46              40           131             126
Tax
Income from
Continuing             107             91           373             361
Operations
Discontinued
Operations:
  Loss from the
  Disposal of
  Discontinued         (5)             (4)          (78)            (78)
  Businesses, Net of
  Tax
  Income from the
  Operations of
  Discontinued         8               9            8               10
  Businesses, Net of
  Tax
Income (Loss) from
Discontinued           3               5            (70)            (68)
Operations, Net of
Tax
Net Income           $ 110           $ 96         $ 303           $ 293
Per Share Amounts:^3
Basic Earnings
(Loss) per Common
Share:
  Continuing         $ 0.48          $ 0.41       $ 1.67          $ 1.62
  Operations
  Discontinued       $ 0.02          $ 0.02       $ (0.32)        $ (0.31)
  Operations
  Basic Earnings per $ 0.50          $ 0.43       $ 1.35          $ 1.31
  Common Share
Diluted Earnings
(Loss) per Common
Share:
  Continuing         $ 0.48          $ 0.41       $ 1.65          $ 1.60
  Operations
  Discontinued       $ 0.02          $ 0.02       $ (0.31)        $ (0.30)
  Operations
  Diluted Earnings   $ 0.49          $ 0.43       $ 1.34          $ 1.30
  per Common Share
Weighted-Average
Number of Common
Shares Outstanding:
  Basic                221.7           221.7        223.7           223.7
  Diluted              224.2           224.2        226.0           226.0
Adjusted Financial
Measures:^4,5
  Operating Expenses $ 306           $ 313        $ 1,186         $ 1,193
  Operating Income   $ 183           $ 162        $ 627           $ 611
  Income from
  Continuing         $ 114           $ 98         $ 402           $ 390
  Operations
  Diluted EPS from
  Continuing         $ 0.51          $ 0.44       $ 1.78          $ 1.72
  Operations
  Effective Tax Rate   28.7%           28.4%        25.7%           25.6%

 

^1 Preliminary financial results provided on August 9, 2012 and included on
   our Form 8-K filed on that same date.
^2 Financial results included within the fiscal 2012 Form 10-K filed on
   January 31, 2013.
   Earnings per share calculations are performed separately for each
^3 component presented. Therefore, the sum of the per share components from
   the table may not equal the per share amounts presented.
   Adjusted financial measures are non-GAAP measures that exclude certain
   nonrecurring items, as discussed above under Use of Non-GAAP Financial
^4 Measures. These measures are reconciled to comparable GAAP measures in the
   Reconciliation of Non-GAAP Financial Measures included on the pages that
   follow.
   Through June 30, 2012, the Company included the impact of acquisition
   related intangible amortization expense within its Adjusted Financial
^5 Measures. The Adjusted Financial Measures within this table and the tables
   that follow include the impact of acquisition related intangible asset
   amortization expense, which conforms to the presentation under which these
   periods were originally reported.

 

CAREFUSION CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
                             Fiscal Years Ended
                             June 30,
                             2011                      2010
(in millions, except per     As           As           As           As
share amounts)               Reported^1   Restated^2   Reported^1   Restated^2
Revenue                    $ 3,432      $ 3,440      $ 3,376      $ 3,377
Cost of Products Sold        1,671        1,672        1,685        1,686
    Gross Margin             1,761        1,768        1,691        1,691
Selling, General and         1,067        1,067        1,090        1,090
Administrative Expenses
Research and Development     146          146          148          148
Expenses
Restructuring and
Acquisition Integration      64           64           15           15
Charges
Gain on the Sale of Assets   (13)         (13)         (12)         (12)
    Operating Income         497          504          450          450
Interest Expense and         79           79           105          105
Other, Net
Income Before Income Tax     418          425          345          345
Provision for Income Tax     124          126          184          184
Income from Continuing       294          299          161          161
Operations
Discontinued Operations:
    Loss from the Disposal
    of Discontinued          (45)         (45)         (8)          (8)
    Businesses, Net of Tax
    Income (Loss) from the
    Operations of            (5)          (5)          41           41
    Discontinued
    Businesses, Net of Tax
Income (Loss) from
Discontinued Operations,     (50)         (50)         33           33
Net of Tax
Net Income                 $ 244        $ 249        $ 194        $ 194
Per Share Amounts:^3
Basic Earnings (Loss) per
Common Share:
    Continuing Operations  $ 1.32       $ 1.34       $ 0.73       $ 0.73
    Discontinued           $ (0.23)     $ (0.23)     $ 0.15       $ 0.15
    Operations
    Basic Earnings per     $ 1.09       $ 1.11       $ 0.88       $ 0.88
    Common Share
Diluted Earnings (Loss)
per Common Share:
    Continuing Operations  $ 1.30       $ 1.32       $ 0.72       $ 0.72
    Discontinued           $ (0.22)     $ (0.22)     $ 0.15       $ 0.15
    Operations
    Diluted Earnings per   $ 1.08       $ 1.10       $ 0.87       $ 0.87
    Common Share
Weighted-Average Number of
Common Shares Outstanding:
    Basic                    222.8        222.8        221.5        221.5
    Diluted                  225.1        225.1        223.0        223.0
Adjusted Financial
Measures:^4,5
    Operating Expenses     $ 1,158      $ 1,158      $ 1,175      $ 1,175
    Operating Income       $ 603        $ 610        $ 516        $ 516
    Income from Continuing $ 374        $ 379        $ 304        $ 304
    Operations
    Diluted EPS from       $ 1.66       $ 1.68       $ 1.36       $ 1.36
    Continuing Operations
    Effective Tax Rate       28.7%        28.7%        29.8%        29.8%

 

____________
^1    Financial results as previously reported in filings with the SEC and
      included in our Form 8-K filed on August 9, 2012.
^2    Financial results included within the fiscal 2012 Form 10-K filed on
      January 31, 2013.
      Earnings per share calculations are performed separately for each
^3    component presented. Therefore, the sum of the per share components from
      the table may not equal the per share amounts presented.
      Adjusted financial measures are non-GAAP measures that exclude certain
      nonrecurring items, as discussed above under Use of Non-GAAP Financial
^4    Measures. These measures are reconciled to comparable GAAP measures in
      the Reconciliation of Non-GAAP Financial Measures included on the pages
      that follow.
      Through June 30, 2012, the Company included the impact of acquisition
      related intangible amortization expense within its Adjusted Financial
^5    Measures. The Adjusted Financial Measures within this table and the
      tables that follow include the impact of acquisition related intangible
      asset amortization expense, which conforms to the presentation under
      which these periods were originally reported.

 

CAREFUSION CORPORATION
SEGMENT AND SELECT BUSINESS LINE REVENUES
(UNAUDITED)
                Quarter Ended                Fiscal Year Ended            Fiscal Year Ended         Fiscal Year Ended
                June 30,                     June 30,                     June 30,                  June 30,
                2012                         2012                         2011                      2010
(in millions)   Preliminary^1   As           Preliminary^1   As           As           As           As           As
                                Reported^2                   Reported^2   Reported^3   Restated^2   Reported^3   Restated^2
Medical
Systems
 Dispensing   $ 285           $ 278        $ 1,041         $ 1,038      $ 902        $ 910        $ 867        $ 868
 Technologies
 Infusion       266             266          955             955          889          889          840          840
 Systems
 Respiratory    88              88           295             295          267          267          338          338
 Technologies
 Other          7               7            26              26           24           24           25           25
   Total
   Medical    $ 646           $ 639        $ 2,317         $ 2,314      $ 2,082      $ 2,090      $ 2,070      $ 2,071
   Systems
Procedural
Solutions^4
 Infection    $ 145           $ 145        $ 576           $ 576        $ 568        $ 568        $ 463        $ 463
 Prevention 
 Medical        80              80           317             317          322          322          310          310
 Specialties
 Specialty      65              65           266             266          304          304          300          300
 Disposables
 Other          32              32           125             125          156          156          233          233
   Total
   Procedural $ 322           $ 322        $ 1,284         $ 1,284      $ 1,350      $ 1,350      $ 1,306      $ 1,306
   Solutions
 Total        $ 968           $ 961        $ 3,601         $ 3,598      $ 3,432      $ 3,440      $ 3,376      $ 3,377
 CareFusion

 

____________
^1    Preliminary financial results provided on August 9, 2012 and included
      in our Form 8-K filed on that same date.
^2    Financial results included within the fiscal 2012 Form 10-K filed on
      January 31, 2013.
^3    Financial results as previously reported in filings with the SEC and
      included in our Form 8-K filed on August 9, 2012.
^4    Reflects the impact of businesses reclassified to discontinued
      operations.

 

CAREFUSION CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted
Financial
Data:
                 Segment Profit
                                                                             Income
                                                                                            Diluted
(in millions,    Medical    Procedural   SG&A       Operating    Operating   from          EPS from
except per                  Solutions                                                       Continuing
share amounts)    Systems                Expenses   Expenses^7   Income      Continuing    Operations^8

                                                                              Operations
Quarter Ended
June 30, 2012
GAAP, As       $ 127      $ 28         $ 267      $ 320        $ 155       $ 91          $ 0.41
Reported^1
 Restructuring
 and             3          4            -          (7)          7           7             0.03
 Acquisition
 Integration^2
Adjusted       $ 130      $ 32         $ 267      $ 313        $ 162       $ 98          $ 0.44
Fiscal Year
Ended June 30,
2012
GAAP, As       $ 465      $ 109        $ 1,033    $ 1,230      $ 574       $ 361         $ 1.60
Reported^1
 Restructuring
 and             18         15           -          (33)         33          33            0.16
 Acquisition
 Integration^2
 Spinoff^3       3          1            (4)        (4)          4           4             0.02
 Income Tax      -          -            -          -            -           (8)           (0.04)
 Items^4
Adjusted       $ 486      $ 125        $ 1,029    $ 1,193      $ 611       $ 390         $ 1.72
Fiscal Year
Ended June 30,
2011
GAAP, As       $ 382      $ 109        $ 1,067    $ 1,277      $ 504       $ 299         $ 1.32
Restated^1
 Restructuring
 and             34         30           -          (64)         64          64            0.29
 Acquisition
 Integration^2
 Spinoff^3       31         24           (55)       (55)         55          55            0.25
 Income Tax      -          -            -          -            -           (26)          (0.12)
 Items^4
 Gain on the
 Sale of         -          -            -          -            (13)        (13)          (0.06)
 Assets^5
Adjusted       $ 447      $ 163        $ 1012     $ 1,158      $ 610       $ 379         $ 1.68
Fiscal Year
Ended June 30,
2010
GAAP, As       $ 348      $ 90         $ 1,090    $ 1,253      $ 450       $ 161         $ 0.72
Restated^1
 Restructuring
 and             5          10           -          (15)         15          15            0.07
 Acquisition
 Integration^2
 Spinoff^3       35         28           (63)       (63)         63          63            0.28
 Income Tax      -          -            -          -            -           55            0.25
 Items^4
 Interest
 Expense and     -          -            -          -            -           22            0.10
 Other, Net
 Gain on the
 Sale of         -          -            -          -            (12)        (12)          (0.05)
 Assets^6
Adjusted       $ 388      $ 128        $ 1,027    $ 1,175      $ 516       $ 304         $ 1.36

 

____________
^1      Financial results included within the fiscal 2012 Form 10-K filed on
        January 31, 2013.
        Restructuring and acquisition integration charges primarily relate to
^2      nonrecurring expenses associated with closing and consolidating
        facilities, as well as rationalizing headcount, and aligning
        operations.
^3      Spinoff charges primarily relate to nonrecurring incremental
        expenses associated with our spinoff from Cardinal Health, Inc.
        Income tax items primarily relate to the tax impact of nonrecurring
^4      restructuring and acquisition integration and spinoff charges, as well
        as nonrecurring discrete benefits or charges associated with the
        spinoff.
        The $13 million net gain on the sale of assets relates primarily to
^5      the sale of our OnSite Services business ($15 million gain), offset by
        a post closing adjustment related to the sale of our Research Services
        business ($2 million loss).
^6      The $12 million net gain on the sale of assets relates primarily to
        the sale of our Research Services business.
        Operating expenses consist of selling, general and administrative,
^7      research and development, and restructuring and acquisition
        integration expenses.
        Earnings per share calculations are performed separately for each
^8      component presented. Therefore, the sum of the per share components
        from the table may not equal the per share amounts presented.

 

CAREFUSION CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted Effective Tax Rate:
(in millions)                     GAAP            Nonrecurring   Adjusted^3
                                  As Reported^1   Items^2
Quarter Ended June 30, 2012
     Income Before Income Tax   $ 131           $ 7            $ 138
     Provision for Income Tax   $ 40            $ -            $ 40
     Effective Tax Rate^4         30.0%           2.2%           28.4%
Fiscal Year Ended June 30, 2012
     Income Before Income Tax   $ 487           $ 37           $ 524
     Provision for Income Tax   $ 126           $ 8            $ 134
     Effective Tax Rate^4         25.9%           22.0%          25.6%
                                  GAAP            Nonrecurring   Adjusted^3
                                  As Restated^1   Items^2
Fiscal Year Ended June 30, 2011
     Income Before Income Tax   $ 425           $ 106          $ 531
     Provision for Income Tax   $ 126           $ 26           $ 152
     Effective Tax Rate^4         29.9%           24.3%          28.7%
Fiscal Year Ended June 30, 2010
     Income Before Income Tax   $ 345           $ 88           $ 433
     Provision for Income Tax   $ 184           $ (55)         $ 129
     Effective Tax Rate^4         53.3%           (63.1)%        29.8%

 

____________
^1      Financial results included within the fiscal 2012 Form 10-K filed on
        January 31, 2013.
        Reflects nonrecurring charges primarily related to the spinoff,
^2      nonrecurring restructuring and acquisition integration charges, and
        nonrecurring income tax items.
^3      Adjusted financial information reflects GAAP results adjusted on a
        non-GAAP basis to exclude nonrecurring items noted.
        Effective Tax Rate calculations are performed based on whole dollar
^4      amounts, and therefore may not equal the calculations based on amounts
        rounded in millions presented in the table above.

    

SOURCE CareFusion Corporation

Website: http://www.carefusion.com
Contact: Media, Kristen Cardillo, +1-858-617-2317,
kristen.cardillo@carefusion.com, or Investors, Jim Mazzola, +1-858-617-1203,
jim.mazzola@carefusion.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement