Cardinal Health Reports Fiscal 2013 Second-Quarter Results

          Cardinal Health Reports Fiscal 2013 Second-Quarter Results

- Operating earnings increase 13 percent to $506 million, or 11 percent to
$525 million on a non-GAAP basis(1)

- Diluted earnings per share from continuing operations increase 16 percent to
$0.88, or 15 percent to $0.93 on a non-GAAP basis

- Fiscal 2013 non-GAAP earnings per share guidance tightened to $3.42 to
$3.50, representing top half of prior range

PR Newswire

DUBLIN, Ohio, Feb. 5, 2013

DUBLIN, Ohio, Feb. 5, 2013 /PRNewswire/ --Cardinal Health today reported
fiscal year 2013 second-quarter revenue of $25.2 billion and a 15 percent
increase in non-GAAP diluted earnings per share (EPS) from continuing
operations to $0.93.

In addition, the company tightened its fiscal 2013 outlook for non-GAAP
diluted EPS from continuing operations to $3.42 to $3.50, which represents the
top half of the prior guidance range.

"We've now completed a strong first half to our fiscal 2013 with a good
second-quarter performance. While continued brand-to-generic conversions and
the previously announced movement of the Express Scripts contract drove a
revenue decline in the Pharmaceutical segment, excellent performance from our
generic programs and new customer wins fueled profit gains," said George
Barrett, chairman and chief executive officer of Cardinal Health. "And,
despite continued procedural softness in the industry, our Medical segment
reported double-digit growth this quarter. With our performance in the first
six months of fiscal 2013, we are now guiding to the top half of our prior
non-GAAP EPS range."

Q2 FY13 SUMMARY

                                              Q2 FY13       Q2 FY12       Y/Y
Revenue                                       $25.2 billion $27.1 billion (7%)
                                                                       

Operating Earnings                            $506 million  $449 million  13%
                                                                        
Non-GAAP Operating Earnings
                                              $525 million  $475 million  11%
                                                                        
Earnings from Continuing Operations
                                              $303 million  $264 million  15%
                                                                        
Non-GAAP Earnings from Continuing Operations
                                              $317 million  $281 million  13%
                                                                        
Diluted EPS from Continuing Operations
                                              $0.88         $0.76         16%
Non-GAAP Diluted EPS from Continuing                                    
Operations
                                              $0.93         $0.81         15%

SEGMENT RESULTS

Pharmaceutical segment

Revenue for the Pharmaceutical segment decreased 8 percent to $22.7 billion
due to the previously announced non-renewal of the Express Scripts contract as
well as expected conversions from branded pharmaceuticals to lower-priced
generics. The decline was partially offset by revenues from new pharmaceutical
distribution customers. Segment profit increased12 percent to $441 million,
largely from overall strong performance from generics programs and benefits of
customer and product mix within pharmaceutical distribution, partially offset
by the impact of continued market softness in our nuclear business.

               Q2 FY13       Q2 FY12       Y/Y
Revenue        $22.7 billion $24.7 billion (8%)
Segment Profit $441 million  $394 million  12%

Medical segment

Revenue for the Medical segment increased 3 percent to $2.5 billion,
reflecting the benefits of last year's acquisition of FutureMed and one
additional sales day year-on-year. Excluding these drivers, year-on-year
revenue growth was flat, reflecting continued softness in key U.S. markets,
particularly as it relates to procedural volume. Segment profit increased 11
percent to $94 million driven by the favorable impact of commodities,
acquisitions and preferred product mix. The increase was partially offset by
customer mix and continued volume softness.

The overall profit impact of our Medical Business Transformation for the
quarter was slightly negative, including year-over-year incremental
depreciation and program expenses, realized benefits, and a $5 million
favorable out-of-period adjustment as part of continued cleanup from the
conversion to the new platform.

               Q2 FY13      Q2 FY12      Y/Y
Revenue        $2.5 billion $2.4 billion 3%
Segment Profit $94 million  $85 million  11%

ADDITIONAL SECOND-QUARTER AND RECENT HIGHLIGHTS

  oRetained the No. 1 slot in the Gartner Fourth Annual Healthcare Supply
    Chain Top 25 ranking
  oEstablished Cardinal Health Specialty Solutions pathways program with Blue
    Cross Blue Shield of Louisiana and expanded Cardinal Health Specialty
    Solutions pathways program with Aetna to include oncologists in Michigan
  oLaunched Cardinal Health Specialty Solutions VitalPath™ Integrated
    Dispensing Solution, VitalSource™ GPO Regimen Analyzer, and PathWare™
    Decision Transaction Solutions to help improve physician practice
    efficiencies
  oNamed one of 40 of the 2013 Best Companies for Leaders by Chief Executive
    magazine
  oNamed one of the 2012 Working Mother 100 Best Companies by Working Mother
    magazine

CONFERENCE CALL

Cardinal Health will host a webcast and conference call today at 8:30 a.m.
Eastern to discuss second-quarter results. To access the call and
corresponding slide presentation, go to the Investors page at
cardinalhealth.com. The call also can be accessed by dialing 224.357.2209,
using conference ID 81032416.

There is no pre-registration for the call; however, participants are advised
to dial into the call at least 10 minutes prior to the start time.
Presentation slides and an audio replay will be archived on the website after
the conclusion of the meeting. The audio replay will be available until March
5 by dialing 855.859.2056 or 404.537.3406, using conference ID 81032416.

UPCOMING EVENTS

  oLeerink Swann Global Healthcare Conference on Feb. 13 at 10:30 a.m.
    Eastern in New York
  oCowen and Co. 33rdAnnual Health Care Conference on March 5 at 8:40 a.m.
    Eastern in Boston
  oBarclays Global Healthcare Conference on March 13 at 9:30 a.m. Eastern in
    Miami

At these events, Cardinal Health will discuss the company's diverse products
and services, company performance and strategies for continued growth. To
access more details and live webcasts of these events, go to the Investors
page at cardinalhealth.com.

About Cardinal Health

Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $108
billion health care services company that improves the cost-effectiveness of
health care. As the business behind health care, Cardinal Health helps
pharmacies, hospitals, ambulatory surgery centers and physician offices focus
on patient care while reducing costs, enhancing efficiency and improving
quality. Cardinal Health is an essential link in the health care supply chain,
providing pharmaceuticals and medical products to more than 60,000 locations
each day. The company is also a leading manufacturer of medical and surgical
products, including gloves, surgical apparel and fluid management products. In
addition, the company supports the growing diagnostic industry by supplying
medical products to clinical laboratories and operating the nation's largest
network of radiopharmacies that dispense products to aid in the early
diagnosis and treatment of disease. Ranked #21 on the Fortune 500, Cardinal
Health employs more than 30,000 people worldwide. More information about the
company may be found at cardinalhealth.com and @CardinalHealth on Twitter.

^1 See the attached tables for definitions of the non-GAAP financial measures
presented in this news release and reconciliations of the differences between
the non-GAAP financial measures and their most directly comparable GAAP
financial measures.

Cardinal Health uses its website as a channel of distribution for material
company information. Important information, including news releases, analyst
presentations and financial information regarding Cardinal Health is routinely
posted and accessible on the Investors page at cardinalhealth.com.

Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing expectations,
prospects, estimates and other matters that are dependent upon future events
or developments. These statements may be identified by words such as "expect,"
"anticipate," "intend," "plan," "believe," "will," "should," "could," "would,"
"project," "continue," "likely," and similar expressions, and include
statements reflecting future results or guidance, statements of outlook and
expense accruals. These matters are subject to risks and uncertainties that
could cause actual results to differ materially from those projected,
anticipated or implied. These risks and uncertainties include competitive
pressures in Cardinal Health's various lines of business; the loss of one or
more key customer or supplier relationships or changes to the terms of those
relationships, including our relationships with CVS Caremark Corporation and
Walgreen Co.; the timing of generic and branded pharmaceutical introductions
and the frequency or rate of pharmaceutical price appreciation or deflation;
uncertainties due to government health care reform including federal health
care reform legislation; changes in the distribution patterns or reimbursement
rates for health care products and services; the effects of any investigation
or action by any regulatory authority; changes in the cost of commodities such
as oil-based resins, cotton, latex and diesel fuel; and uncertainties
concerning Cardinal Health's ability to achieve the expected benefits of its
Medical segment's business transformation project. Cardinal Health is subject
to additional risks and uncertainties described in Cardinal Health's Form
10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This news
release reflects management's views as of Feb. 5, 2013. Except to the extent
required by applicable law, Cardinal Health undertakes no obligation to update
or revise any forward-looking statement.



Schedule 1

Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)

                                                Second Quarter
(in millions, except per Common Share amounts)  2013       2012       % Change
Revenue                                         $ 25,232   $ 27,078   (7)   %
Cost of products sold                           24,008     25,964     (8)   %
Gross margin                                    1,224      1,114      10    %
Operating expenses:
Distribution, selling, general and              699        640        9     %
administrative expenses
Restructuring and employee severance            1          2          N.M.
Acquisition-related costs                       25         22         N.M.
Impairments and loss on disposal of assets      5          1          N.M.
Litigation (recoveries)/charges, net            (12)       —          N.M.
Operating earnings                              506        449        13    %
Other income, net                               (4)        —          N.M.
Interest expense, net                           27         23         18    %
Earnings before income taxes and discontinued   483        426        14    %
operations
Provision for income taxes                      180        162        11    %
Earnings from continuing operations             303        264        15    %
Loss from discontinued operations, net of tax   —          (2)        N.M.
Net earnings                                    $ 303      $ 262      16    %
Basic earnings/(loss) per Common Share:
Continuing operations                           $ 0.89     $ 0.77     16    %
Discontinued operations                         —          (0.01)     N.M.
Net basic earnings per Common Share             $ 0.89     $ 0.76     17    %
Diluted earnings/(loss) per Common Share:
Continuing operations                           $ 0.88     $ 0.76     16    %
Discontinued operations                         —          (0.01)     N.M.
Net diluted earnings per Common Share           $ 0.88     $ 0.75     17    %
Weighted-average number of Common Shares
outstanding:
Basic                                           340        345
Diluted                                         343        349



Schedule 2

Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)

                                                Year-to-Date
(in millions, except per Common Share amounts)  2013       2012       % Change
Revenue                                         $ 51,121   $ 53,870   (5)   %
Cost of products sold                           48,739     51,672     (6)   %
Gross margin                                    2,382      2,198      8     %
Operating expenses:
Distribution, selling, general and              1,388      1,283      8     %
administrative expenses
Restructuring and employee severance            6          5          N.M.
Acquisition-related costs                       53         49         N.M.
Impairments and loss on disposal of assets      6          2          N.M.
Litigation (recoveries)/charges, net            (34)       (3)        N.M.
Operating earnings                              963        862        12    %
Other (income)/expense, net                     (12)       5          N.M.
Interest expense, net                           53         46         14    %
Earnings before income taxes and discontinued   922        811        14    %
operations
Provision for income taxes                      347        310        12    %
Earnings from continuing operations             575        501        15    %
Loss from discontinued operations, net of tax   —          (2)        N.M.
Net earnings                                    $ 575      $ 499      15    %
Basic earnings/(loss) per Common Share:
Continuing operations                           $ 1.69     $ 1.45     17    %
Discontinued operations                         —          (0.01)     N.M.
Net basic earnings per Common Share             $ 1.69     $ 1.44     17    %
Diluted earnings/(loss) per Common Share:
Continuing operations                           $ 1.67     $ 1.44     16    %
Discontinued operations                         —          (0.01)     N.M.
Net diluted earnings per Common Share           $ 1.67     $ 1.43     17    %
Weighted-average number of Common Shares
outstanding:
Basic                                           340        345
Diluted                                         344        349



Schedule 3

Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

(in millions)                                          December31,  June30,
                                                       2012          2012
                                                       (Unaudited)
Assets
Current assets:
Cash and equivalents                                   $  2,255      $ 2,274
Trade receivables, net                                 6,158         6,355
Inventories                                            8,452         7,864
Prepaid expenses and other                             996           1,017
Total current assets                                   17,861        17,510
Property and equipment, net                            1,475         1,551
Goodwill and other intangibles, net                    4,428         4,392
Other assets                                           878           807
Total assets                                           $  24,642     $ 24,260
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable                                       $  11,796     $ 11,726
Current portion of long-term obligations and other     474           476
short-term borrowings
Other accrued liabilities                              1,932         1,972
Total current liabilities                              14,202        14,174
Long-term obligations, less current portion            2,423         2,418
Deferred income taxes and other liabilities            1,475         1,424
Total shareholders' equity                             6,542         6,244
Total liabilities and shareholders' equity             $  24,642     $ 24,260



Schedule 4

Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)

                                        Second Quarter      Year-to-Date
(in millions)                           2013      2012      2013      2012
Cash flows from operating activities:
Net earnings                            $ 303     $ 262     $ 575     $ 499
Loss from discontinued operations, net  —         2         —         2
of tax
Earnings from continuing operations     303       264       575       501
Adjustments to reconcile earnings from
continuing operations to net cash
provided by/(used in) operating
activities:
Depreciation and amortization           88        78        176       156
Impairments and loss on disposal of     5         1         6         2
assets
Share-based compensation                22        22        46        42
Provision for bad debts                 8         1         9         2
Change in operating assets and
liabilities, net of effects from
acquisitions:
Decrease in trade receivables           299       236       228       167
Increase in inventories                 (329)     (1,392)   (536)     (1,553)
Increase/(decrease) in accounts payable (433)     708       31        1,118
Other accrued liabilities and operating (93)      (32)      (97)      (45)
items, net
Net cash provided by/(used in)          (130)     (114)     438       390
operating activities
Cash flows from investing activities:
Acquisition of subsidiaries, net of     (26)      —         (126)     (7)
cash acquired
Additions to property and equipment     (36)      (57)      (62)      (101)
Proceeds from maturities of             48        25        71        35
held-to-maturity securities
Purchase of held-to-maturity securities —         (11)      —         (11)
and other investments
Net cash used in investing activities   (14)      (43)      (117)     (84)
Cash flows from financing activities:
Net change in short-term borrowings     27        9         17        4
Reduction of long-term obligations      (2)       (1)       (6)       (1)
Proceeds from issuance of Common Shares 25        14        26        11
Tax disbursements from share-based      (10)      (4)       (12)      —
compensation
Dividends on Common Shares              (81)      (74)      (165)     (152)
Purchase of treasury shares             —         —         (200)     (300)
Net cash used in financing activities   (41)      (56)      (340)     (438)
Net decrease in cash and equivalents    (185)     (213)     (19)      (132)
Cash and equivalents at beginning of    2,440     2,011     2,274     1,930
period
Cash and equivalents at end of period   $ 2,255   $ 1,798   $ 2,255   $ 1,798



Schedule 5

Cardinal Health, Inc. and Subsidiaries
Total Company Business Analysis

                                                            Non-GAAP
                                    Second Quarter          Second Quarter
(in millions)                       2013        2012        2013     2012
Revenue
Amount                              $ 25,232    $ 27,078
Growth rate                         (7)      %  7        %
Operating earnings
Amount                              $ 506       $ 449       $ 525    $ 475
Growth rate                         13       %  31       %  11    %  21    %
Earnings from continuing operations
Amount                              $ 303       $ 264       $ 317    $ 281
Growth rate                         15       %  23       %  13    %  10    %
                                                            Non-GAAP
                                    Year-to-Date            Year-to-Date
(in millions)                       2013        2012        2013     2012
Revenue
Amount                              $ 51,121    $ 53,870
Growth rate                         (5)      %  8        %
Operating earnings
Amount                              $ 963       $ 862       $ 995    $ 917
Growth rate                         12       %  22       %  8     %  18    %
Earnings from continuing operations
Amount                              $ 575       $ 501       $ 598    $ 537
Growth rate                         15       %  (2)      %  11    %  10    %

Refer to the GAAP/Non-GAAP reconciliation for definitions and calculations
supporting the Non-GAAP balances.



Schedule 6

Cardinal Health, Inc. and Subsidiaries
Segment Business Analysis

                    Second Quarter                        Second Quarter
(in millions)       2013        2012        (in millions) 2013       2012
Pharmaceutical                              Medical
Revenue                                     Revenue
Amount              $ 22,747    $ 24,665    Amount        $ 2,487    $ 2,416
Growth rate         (8)      %  6        %  Growth rate   3       %  9       %
Mix                 90       %  91       %  Mix           10      %  9       %
Segment profit                              Segment
                                            profit
Amount              $ 441       $ 394       Amount        $ 94       $ 85
Growth rate         12       %  30       %  Growth rate   11      %  (18)    %
Mix                 83       %  82       %  Mix           17      %  18      %
Segment profit      1.94     %  1.60     %  Segment       3.76    %  3.50    %
margin                                      profit margin

Refer to definitions for an explanation of calculations.

Total consolidated revenue for the three months ended December31, 2012 was
$25,232 million, which included total segment revenue of $25,234 million and
Corporate revenue of $(2) million. Total consolidated revenue for the three
months ended December31, 2011 was $27,078 million, which included total
segment revenue of $27,081 million and Corporate revenue of $(3) million.
Corporate revenue consists primarily of elimination of inter-segment revenue.

Total consolidated operating earnings for the three months ended December31,
2012 were $506 million, which included total segment profit of $535 million
and Corporate costs of $(29) million. Total consolidated operating earnings
for the three months ended December31, 2011 were $449 million, which included
total segment profit of $479 million and Corporate costs of $(30) million.
Corporate includes, among other things, restructuring and employee severance,
acquisition-related costs, impairments and loss on disposal of assets,
litigation (recoveries)/charges, net and certain investment spending that are
not allocated to the segments. Medical segment profit includes a $5 million
favorable out-of-period adjustment to reflect certain vendor chargeback
billings that were delayed when we implemented our medical business
transformation.



Schedule 7

Cardinal Health, Inc. and Subsidiaries
Segment Business Analysis

                    Year-to-Date                          Year-to-Date
(in millions)       2013        2012        (in millions) 2013       2012
Pharmaceutical                              Medical
Revenue                                     Revenue
Amount              $ 46,244    $ 49,083    Amount        $ 4,879    $ 4,796
Growth rate         (6)      %  8        %  Growth rate   2       %  10      %
Mix                 90       %  91       %  Mix           10      %  9       %
Segment profit                              Segment
                                            profit
Amount              $ 841       $ 757       Amount        $ 168      $ 164
Growth rate         11       %  24       %  Growth rate   3       %  (12)    %
Mix                 83       %  82       %  Mix           17      %  18      %
Segment profit      1.82     %  1.54     %  Segment       3.44    %  3.41    %
margin                                      profit margin

Refer to definitions for an explanation of calculations.

Total consolidated revenue for the six months ended December31, 2012 was
$51,121 million, which included total segment revenue of $51,123 million and
Corporate revenue of $(2) million. Total consolidated revenue for the six
months ended December31, 2011 was $53,870 million, which included total
segment revenue of $53,879 million and Corporate revenue of $(9) million.
Corporate revenue consists primarily of elimination of inter-segment revenue.

Total consolidated operating earnings for the six months ended December31,
2012 were $963 million, which included total segment profit of $1,009 million
and Corporate costs of $(46) million. Total consolidated operating earnings
for the six months ended December31, 2011 were $862 million, which included
total segment profit of $921 million and Corporate costs of $(59) million.
Corporate includes, among other things, restructuring and employee severance,
acquisition-related costs, impairments and loss on disposal of assets,
litigation (recoveries)/charges, net and certain investment spending that are
not allocated to the segments. Medical segment profit includes an $8 million
favorable out-of-period adjustment to reflect certain vendor chargeback
billings that were delayed when we implemented our medical business
transformation. The $5 million out-of-period adjustment recorded during the
three months ended December31, 2012 included $2 million related to the three
months ended September 30, 2012.



Schedule 8

Cardinal Health, Inc. and Subsidiaries
Schedule of Notable Items

                                    Second Quarter        Year-to-Date
(in millions, except per Common     2013       2012       2013       2012
Share amounts)
Restructuring and employee          $ (1)      $ (2)      $ (6)      $ (5)
severance
Tax benefit                         1          1          2          2
Restructuring and employee          $ —        $ (1)      $ (4)      $ (3)
severance, net of tax
Decrease to diluted EPS from        $ —        $ —        $ (0.01)   $ (0.01)
continuing operations
Acquisition-Related Costs
Amortization of acquisition-related $ (22)     $ (19)     $ (43)     $ (38)
intangible assets
Tax benefit                         8          7          15         14
Amortization of acquisition-related $ (14)     $ (12)     $ (28)     $ (24)
intangible assets, net of tax
Decrease to diluted EPS from        $ (0.04)   $ (0.03)   $ (0.08)   $ (0.07)
continuing operations
Other acquisition-related costs     $ (4)      $ (3)      $ (10)     $ (12)
Tax benefit                         1          1          3          4
Other acquisition-related costs,    $ (3)      $ (2)      $ (7)      $ (8)
net of tax
Decrease to diluted EPS from        $ (0.01)   $ (0.01)   $ (0.02)   $ (0.02)
continuing operations
Total acquisition-related costs^1   $ (25)     $ (22)     $ (53)     $ (49)
Tax benefit^1                       9          8          19         17
Total acquisition-related costs,    $ (16)     $ (14)     $ (34)     $ (32)
net of tax^1
Decrease to diluted EPS from        $ (0.05)   $ (0.04)   $ (0.10)   $ (0.09)
continuing operations^1
Impairments and loss on disposal of $ (5)      $ (1)      $ (6)      $ (2)
assets
Tax benefit                         —          —          1          1
Impairments and loss on disposal of $ (5)      $ (1)      $ (5)      $ (1)
assets, net of tax
Decrease to diluted EPS from        $ (0.01)   $ —        $ (0.01)   $ —
continuing operations
Litigation recoveries/(charges),    $ 12       $ —        $ 34       $ 3
net
Tax expense                         (5)        —          (14)       (1)
Litigation recoveries/(charges),    $ 7        $ —        $ 20       $ 2
net, net of tax
Increase to diluted EPS from        $ 0.02     $ —        $ 0.06     $ 0.01
continuing operations
Other Spin-Off Costs                $ —        $ (1)      $ —        $ (2)
Tax benefit                         —          —          —          —
Other Spin-Off Costs, net of tax    $ —        $ (1)      $ —        $ (2)
Decrease to diluted EPS from        $ —        $ —        $ —        $ —
continuing operations
Weighted-average number of diluted  343        349        344        349
shares outstanding

^1 The sum of the components may not equal the total due to
rounding.

We apply varying tax rates depending on the item's nature and tax jurisdiction
where it is incurred.



Schedule 9

Cardinal Health, Inc. and Subsidiaries
Asset Management Analysis

                                              Second Quarter    Year-to-Date
                                              2013      2012    2013    2012
Days sales outstanding^1                      22.0      19.9
Days inventory on hand                        27.0      27.0
Days payable outstanding                      37.8      37.9
Net working capital days^2                    11.3      9.1
Debt to total capital                         31    %   30   %
Net debt to capital                           9     %   11   %
Return on equity                              18.9  %   18.0 %  18.1 %  17.1 %
Non-GAAP return on equity                     19.8  %   19.1 %  18.8 %  18.3 %
Effective tax rate from continuing operations 37.2  %   37.9 %  37.6 %  38.1 %
Non-GAAP effective tax rate from continuing   36.8  %   37.8 %  37.3 %  37.9 %
operations

^1 We changed our method of calculating days sales outstanding and
have revised prior-year information to conform, refer to Schedule 14.

^2 The sum of the components may not equal the total due to rounding.

Refer to the GAAP/Non-GAAP reconciliation for definitions and calculations
supporting the Non-GAAP balances. Refer to DSO, DIOH and DPO for definitions
and calculations.



Schedule 10

Cardinal Health, Inc. and Subsidiaries
GAAP / Non-GAAP Reconciliation

                      Second Quarter 2013
                                Operating Earnings     Provision Earnings   Earnings   Diluted    Diluted
                                          Before                            from       EPS        EPS
                                Earnings  Income Taxes for       from       Continuing from       from
                                                                                                  Continuing
                      Operating Growth    and          Income    Continuing Operations Continuing Operations
                                          Discontinued
(in millions, except                                                        Growth                Growth
per Common Share      Earnings  Rate      Operations   Taxes     Operations Rate       Operations Rate
amounts)
GAAP                  $  506    13    %   $    483     $  180    $   303    15     %   $  0.88    16     %
Restructuring and     1                   1            1         —                     —
employee severance
Acquisition-related   25                  25           9         16                    0.05
costs
Impairments and loss  5                   5            —         5                     0.01
on disposal of assets
Litigation
(recoveries)/charges, (12)                (12)         (5)       (7)                   (0.02)
net
Other Spin-Off Costs  —                   —            —         —                     —
Non-GAAP              $  525    11    %   $    502     $  185    $   317    13     %   $  0.93    15     %
                      Second Quarter 2012
GAAP                  $  449    31    %   $    426     $  162    $   264    23     %   $  0.76    25     %
Restructuring and     2                   2            1         1                     —
employee severance
Acquisition-related   22                  22           8         14                    0.04
costs
Impairments and loss  1                   1            —         1                     —
on disposal of assets
Litigation
(recoveries)/charges, —                   —            —         —                     —
net
Other Spin-Off Costs  1                   1            —         1                     —
Non-GAAP              $  475    21    %   $    452     $  171    $   281    10     %   $  0.81    11     %
                      Year-to-Date 2013
                                Operating Earnings     Provision Earnings   Earnings   Diluted    Diluted
                                          Before                            from       EPS        EPS
                                Earnings  Income Taxes for       from       Continuing from       from
                                                                                                  Continuing
                      Operating Growth    and          Income    Continuing Operations Continuing Operations
                                          Discontinued
(in millions, except                                                        Growth                Growth
per Common Share      Earnings  Rate      Operations   Taxes     Operations Rate       Operations Rate
amounts)
GAAP                  $  963    12    %   $    922     $  347    $   575    15     %   $  1.67    16     %
Restructuring and     6                   6            2         4                     0.01
employee severance
Acquisition-related   53                  53           19        34                    0.10
costs
Impairments and loss  6                   6            1         5                     0.01
on disposal of assets
Litigation
(recoveries)/charges, (34)                (34)         (14)      (20)                  (0.06)
net
Other Spin-Off Costs  —                   —            —         —                     —
Non-GAAP              $  995    8     %   $    953     $  355    $   598    11     %   $  1.74    13     %
                      Year-to-Date 2012
GAAP                  $  862    22    %   $    811     $  310    $   501    (2)    %   $  1.44    (1)    %
Restructuring and     5                   5            2         3                     0.01
employee severance
Acquisition-related   49                  49           17        32                    0.09
costs
Impairments and loss  2                   2            1         1                     —
on disposal of assets
Litigation
(recoveries)/charges, (3)                 (3)          (1)       (2)                   (0.01)
net
Other Spin-Off Costs  2                   2            —         2                     —
Non-GAAP              $  917    18    %   $    866     $  329    $   537    10     %   $  1.54    11     %

The sum of the components may not equal the total due to rounding.

We apply varying tax rates depending on the item's nature and tax jurisdiction
where it is incurred.



Schedule 11

Cardinal Health, Inc. and Subsidiaries
GAAP / Non-GAAP Reconciliation

                                      Second Quarter
(in millions)                         2013                 2012
GAAP return on equity                 18.9    %            18.0    %
Non-GAAP return on equity
Net earnings                          $ 303                $ 262
Restructuring and employee severance, —                    1
net of tax, in continuing operations
Acquisition-related costs, net of     16                   14
tax, in continuing operations
Impairments and loss on disposal of
assets, net of tax, in continuing     5                    1
operations
Litigation (recoveries)/charges, net, (7)                  —
net of tax, in continuing operations
Other Spin-Off Costs, net of tax, in  —                    1
continuing operations
Adjusted net earnings                 $ 317                $ 279
Annualized                            $ 1,268              $ 1,116
                                      Second     First     Second     First
                                      Quarter    Quarter   Quarter    Quarter
                                      2013       2013      2012       2012
Total shareholders' equity            $ 6,542    $ 6,281   $ 5,928    $ 5,714
Divided by average shareholders'      $ 6,411              $ 5,821
equity
Non-GAAP return on equity             19.8    %            19.1    %

We apply varying tax rates depending on the item's nature and tax jurisdiction
where it is incurred.



Schedule 12

Cardinal Health, Inc. and Subsidiaries
GAAP / Non-GAAP Reconciliation

                      Year-to-Date
(in millions)         2013                           2012
GAAP return on equity 18.1    %                      17.1    %
Non-GAAP return on
equity
Net earnings          $ 575                          $ 499
Restructuring and
employee severance,   4                              3
net of tax, in
continuing operations
Acquisition-related
costs, net of tax, in 34                             32
continuing operations
Impairments and loss
on disposal of
assets, net of tax,   5                              1
in continuing
operations
Litigation
(recoveries)/charges, (20)                           (2)
net, net of tax, in
continuing operations
Other Spin-Off Costs,
net of tax, in        —                              2
continuing operations
Adjusted net earnings $ 598                          $ 535
Annualized            $ 1,196                        $ 1,070
                      Second     First     Fourth    Second     First     Fourth
                      Quarter    Quarter   Quarter   Quarter    Quarter   Quarter
                      2013       2013      2012      2012       2012      2011
Total shareholders'   $ 6,542    $ 6,281   $ 6,244   $ 5,928    $ 5,714   $ 5,849
equity
Divided by average    $ 6,355                        $ 5,830
shareholders' equity
Non-GAAP return on    18.8    %                      18.3    %
equity

We apply varying tax rates depending on the item's nature and tax jurisdiction
where it is incurred.



Schedule 13

Cardinal Health, Inc. and Subsidiaries
GAAP / Non-GAAP Reconciliation

                                        Second Quarter        Year-to-Date
(in millions)                           2013       2012       2013     2012
GAAP effective tax rate from continuing 37.2    %  37.9    %  37.6  %  38.1  %
operations
Non-GAAP effective tax rate from
continuing operations
Earnings before income taxes and        $ 483      $ 426      $ 922    $ 811
discontinued operations
Restructuring and employee severance    1          2          6        5
Acquisition-related costs               25         22         53       49
Impairments and loss on disposal of     5          1          6        2
assets
Litigation (recoveries)/charges, net    (12)       —          (34)     (3)
Other Spin-Off Costs                    —          1          —        2
Adjusted earnings before income taxes   $ 502      $ 452      $ 953    $ 866
and discontinued operations
Provision for income taxes              $ 180      $ 162      $ 347    $ 310
Restructuring and employee severance    1          1          2        2
tax benefit
Acquisition-related costs tax benefit   9          8          19       17
Impairments and loss on disposal of     —          —          1        1
assets tax benefit
Litigation (recoveries)/charges, net    (5)        —          (14)     (1)
tax expense
Other Spin-Off Costs tax benefit        —          —          —        —
Adjusted provision for income taxes     $ 185      $ 171      $ 355    $ 329
Non-GAAP effective tax rate from        36.8    %  37.8    %  37.3  %  37.9  %
continuing operations
                                        Second Quarter
                                        2013       2012
Debt to total capital                   31      %  30      %
Net debt to capital
Current portion of long-term
obligations and other short-term        $ 474      $ 342
borrowings
Long-term obligations, less current     2,423      2,211
portion
Debt                                    $ 2,897    $ 2,553
Cash and equivalents                    (2,255)    (1,798)
Net debt                                $ 642      $ 755
Total shareholders' equity              6,542      5,928
Capital                                 $ 7,184    $ 6,683
Net debt to capital                     9       %  11      %

We apply varying tax rates depending on the item's nature and tax jurisdiction
where it is incurred.

Forward-Looking Non-GAAP Financial Measures

We present non-GAAP earnings from continuing operations and non-GAAP effective
tax rate from continuing operations (and presentations derived from these
financial measures, including per share calculations) on a forward-looking
basis. The most directly comparable forward-looking GAAP measures are earnings
from continuing operations and effective tax rate from continuing operations.
We are unable to provide a quantitative reconciliation of these
forward-looking non-GAAP measures to the most directly comparable
forward-looking GAAP measures because we cannot reliably forecast
restructuring and employee severance, acquisition-related costs, impairments
and loss on disposal of assets and litigation (recoveries)/charges, net, which
are difficult to predict and estimate and are primarily dependent on future
events. Please note that the unavailable reconciling items could significantly
impact our future financial results.



Schedule 14

Cardinal Health, Inc. and Subsidiaries

                                                  Second Quarter
(in millions)                                     2013       2012
Days sales outstanding                            22.0       19.9
Days inventory on hand
Inventories                                       $ 8,452    $ 8,889
Cost of products sold                             $ 24,008   $ 25,964
Chargeback billings                               4,113      3,627
Adjusted cost of products sold                    $ 28,121   $ 29,591
Adjusted cost of products sold divided by 90 days $ 312      $ 329
Days inventory on hand                            27.0       27.0
Days payable outstanding
Accounts payable                                  $ 11,796   $ 12,457
Cost of products sold                             $ 24,008   $ 25,964
Chargeback billings                               4,113      3,627
Adjusted cost of products sold                    $ 28,121   $ 29,591
Adjusted cost of products sold divided by 90 days $ 312      $ 329
Days payable outstanding                          37.8       37.9
Net working capital days^1                        11.3       9.1

^1 The sum of the components may not equal the total due to
rounding.

Days Sales Outstanding (DSO): trade receivables, net divided by (quarterly
revenue divided by 90 days). Beginning in the first quarter of fiscal 2013, we
changed our method of calculating DSO in order to align it with the 90-day
convention that we use in the calculation of Days Inventory on Hand and Days
Payable Outstanding.Prior to this change we calculated DSO by dividing trade
receivable, net by (monthly revenue divided by 30 days).In connection with
this change, we have revised prior year information to conform to the new
method of calculating DSO.

Days Inventory on Hand: inventory divided by ((quarterly cost of products sold
plus chargeback billings) divided by 90 days). Chargeback billings are the
difference between a product's wholesale acquisition cost and the contract
price established between the vendors and the end customer.

Days Payable Outstanding: accounts payable divided by ((quarterly cost of
products sold plus chargeback billings) divided by 90 days).

Net Working Capital Days: days sales outstanding plus days inventory on hand
less days payable outstanding. To conform to the new method of calculating
DSO, we have revised prior year information.

Cardinal Health, Inc. and Subsidiaries

Use of Non-GAAP Measures

This earnings release contains financial measures that are not calculated in
accordance with U.S. generally accepted accounting principles ("GAAP"). In
general, the measures exclude items and charges that (i) management does not
believe reflect Cardinal Health, Inc.'s (the "Company") core business and
relate more to strategic, multi-year corporate activities; or (ii) relate to
activities or actions that may have occurred over multiple or in prior periods
without predictable trends. Management uses these non-GAAP financial measures
internally to evaluate the Company's performance, evaluate the balance sheet,
engage in financial and operational planning and determine incentive
compensation.

Management provides these non-GAAP financial measures to investors as
supplemental metrics to assist readers in assessing the effects of items and
events on its financial and operating results and in comparing the Company's
performance to that of its competitors. However, 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.

The non-GAAP financial measures disclosed by the Company should not be
considered a substitute for, or superior to, financial measures calculated in
accordance with GAAP, and the financial results calculated in accordance with
GAAP and reconciliations to those financial statements set forth above should
be carefully evaluated.

Definitions

Debt: long-term obligations plus short-term borrowings.

Debt to Total Capital: debt divided by (debt plus total shareholders' equity).

Net Debt: a Non-GAAP measure defined as debt minus (cash and equivalents).

Net Debt to Capital: a Non-GAAP measure defined as net debt divided by (net
debt plus total shareholders' equity).

Non-GAAP Diluted EPS from Continuing Operations: non-GAAP earnings from
continuing operations divided by diluted weighted-average shares outstanding.

Non-GAAP Earnings from Continuing Operations: earnings from continuing
operations excluding (1) restructuring and employee severance^1, (2)
acquisition-related costs^2, (3) impairments and loss on disposal of assets^3,
(4) litigation (recoveries)/charges, net^4 and (5) Other Spin-Off Costs, each
net of tax.

Non-GAAP Effective Tax Rate from Continuing Operations: (provision for income
taxes adjusted for (1) restructuring and employee severance, (2)
acquisition-related costs, (3) impairments and loss on disposal of assets, (4)
litigation (recoveries)/charges, net and (5) Other Spin-Off Costs) divided by
(earnings before income taxes and discontinued operations adjusted for the
same five items).

Non-GAAP Operating Earnings: operating earnings excluding (1) restructuring
and employee severance, (2) acquisition-related costs, (3) impairments and
loss on disposal of assets, (4) litigation (recoveries)/charges, net and (5)
Other Spin-Off Costs.

Non-GAAP Return on Equity: (annualized net earnings excluding (1)
restructuring and employee severance, (2) acquisition-related costs, (3)
impairments and loss on disposal of assets, (4) litigation
(recoveries)/charges, net and (5) Other Spin-Off Costs, each net of tax) and
divided by average shareholders' equity.

Other Spin-Off Costs: costs incurred in connection with our Spin-Off of
CareFusion which are included in distribution, selling, general and
administrative expenses.

Return on Equity: annualized net earnings divided by average shareholders'
equity.

Revenue Mix: segment revenue divided by total segment revenue for all
segments.

Segment Profit: segment revenue minus (segment cost of products sold and
segment distribution, selling, general and administrative expenses).

Segment Profit Margin: segment profit divided by segment revenue.

Segment Profit Mix: segment profit divided by total segment profit for all
segments.

^1 Programs whereby the Company fundamentally changes its operations
such as closing and consolidating facilities, moving manufacturing of a
product to another location, production or business process sourcing, employee
severance (including rationalizing headcount or other significant changes in
personnel) and realigning operations (including substantial realignment of the
management structure of a business unit in response to changing market
conditions).

^2 Costs that consist primarily of transaction costs, integration
costs, changes in the fair value of contingent consideration obligations and
amortization of acquisition-related intangible assets.

^3 Asset impairments and losses from the disposal of assets not
eligible to be classified as discontinued operations are classified within
impairments and loss on disposal of assets within the condensed consolidated
statements of earnings.

^4 Loss contingencies related to litigation and regulatory matters
and income from favorable resolution of legal matters.





SOURCE Cardinal Health

Website: http://www.cardinalhealth.com
Contact: Media: Debbie Mitchell, +1-614-757-6225,
debbie.mitchell@cardinalhealth.com, Investors: Sally Curley, +1-614-757-7115,
sally.curley@cardinalhealth.com
 
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