Catamaran Corporation Announces Record Setting Results for 2012

       Catamaran Corporation Announces Record Setting Results for 2012

PR Newswire

LISLE, IL, Feb. 28, 2013

-Record setting year reaches $9.9 billion in revenue and $116.7 million in net
income-

-Quarterly revenue of $3.3 billion and EBITDA of $146.6 million reach all time
highs-

-2013 Revenue and EPS (fully-diluted) expected to grow 45% and 74%-

LISLE, IL, Feb. 28, 2013 /PRNewswire/ -  Catamaran Corporation ("Catamaran" or
the "Company") (NASDAQ: CTRX, TSX: CCT), a leading provider of pharmacy
benefit management ("PBM") services and technology, announces its financial
results for the three-month and twelve-month periods ended December31, 2012.

2012 Financial Highlights

  *Revenue increased 100% on a year over year basis to $9.9 billion during
    2012, compared to $5.0 billion in 2011
  *Gross profit increased 137% to $733.4 million during 2012, compared to
    $309.5 million in 2011
  *SG&A includes $44.2 million in transaction and integration related
    expenses, or $0.17 per share (fully-diluted), related to the Catalyst
    merger in 2012
  *Net income attributable to the Company of $116.7 million, or $0.70 per
    share (fully-diluted), in 2012, compared to $91.8 million, or $0.73 per
    share (fully-diluted) in 2011
  *EBITDA¹ increased 118% to $362.7 million during 2012, compared to $166.4
    million in 2011
  *Adjusted EPS¹ (fully-diluted) increased 46% to $1.19 in 2012, compared to
    $0.82 in 2011
  *Cash flow from operations increased $155.1 million to $249.7 million
    during 2012, compared to $94.7 million in 2011
  *Repaid $200 million of $1.4 billion borrowed in July to partially finance
    Catalyst acquisition
  *Adjusted prescription claim volume¹ for the PBM segment increased 117% to
    198.9 million in 2012, compared to 91.7 million in 2011
  *Transaction processing volume for the HCIT segment increased 17% to 464.2
    million during 2012, compared to 396.9 million in 2011
  *Generic dispensing rate increased to an industry leading 83% for Q4 2012,
    compared to 79% for Q4 2011

2012 Corporate Highlights

  *Completed the acquisition of HealthTran, a full-service PBM, in January
    2012
  *Completed the merger with Catalyst Health Solutions, Inc. ("Catalyst"), a
    full-service PBM, in July 2012
  *Re-branded the Company as Catamaran Corporation from SXC Health Solutions
    Corp.
  *Issued 12.0 million common shares in a public offering in May 2012
    yielding $519.1 million in net proceeds
  *Ranked 11^th in Fortune magazine's Top 100 Fastest-Growing Companies, the
    third consecutive year Catamaran has been ranked in this category by
    Fortune magazine
  *Company's Employer Group Waiver Plan received a five-star rating from the
    Centers for Medicare & Medicaid Services

"This past year  has been a  transformative period for  Catamaran, led by  the 
merger with Catalyst which doubled our size. Throughout this period, we  never 
lost sight of our goals and operational plan, which was the foundation for the
results we  achieved in  2012. Our  operational excellence,  coupled with  the 
successful progression  of our  integrations, yielded  another record  setting 
year. The dramatic changes embarked upon  by Catamaran in 2012, combined  with 
the financial savings and clinical results we delivered to our customers, have
created a number of new opportunities  for the Company. The entire Company  is 
focused on continuing to deliver superior results, and we are well  positioned 
to take advantage of our growth and enhanced capabilities in 2013," said  Mark 
Thierer, Chairman and CEO of Catamaran.

Financial Review

Revenue and Gross Profit segmented by PBM and HCIT:
Catamaran evaluates segment  performance based  on revenue  and gross  profit. 
Reconciliations of  the  Company's  business segments,  PBM  and  Health  Care 
Information Technology ("HCIT"), to the consolidated financial statements  for 
the three-month  and  twelve-month  periods ended  December31,  2012  are  as 
follows:

Three months ended December 31, (in thousands)
                                                                          
                     PBM                        HCIT                    Consolidated
           2012         2011        2012       2011        2012         2011    
Revenue  $ 3,292,056   $ 1,348,094   $  37,484   $  30,420   $ 3,329,540   $ 1,378,514 
Cost of                                                                        
revenue    3,046,365     1,271,776      17,583      17,372     3,063,948     1,289,148 
Gross                                                                          
profit    $   245,691    $    76,318    $  19,901    $  13,048    $   265,592    $    89,366 
Gross                                                                          
profit
%                7.5 %          5.7 %       53.1 %       42.9 %          8.0 %          6.5 %
                                                                          
                                                                          
Year ended December 31, (in thousands)
                                                                          
                     PBM                        HCIT                    Consolidated
           2012         2011        2012       2011        2012         2011    
Revenue  $ 9,785,084   $ 4,859,243   $ 155,036   $ 116,253   $ 9,940,120   $ 4,975,496 
Cost of                                                                        
revenue    9,141,029     4,602,662      65,715      63,346     9,206,744     4,666,008 
Gross                                                                          
profit    $   644,055    $   256,581    $  89,321    $  52,907    $   733,376    $   309,488 
Gross                                                                          
profit
%                6.6 %          5.3 %       57.6 %       45.5 %          7.4 %          6.2 %

PBM Revenue
PBM revenue  increased by  $4.9 billion,  or  101% to  $9.8 billion  in  2012, 
compared to $4.9 billion for the same period in 2011. PBM revenue increased by
$1.9 billion, or 144% to $3.3 billion in Q4 0212, compared to $1.3 billion  in 
Q4 2011. The  increase in revenue  for both  periods is primarily  due to  the 
recent merger  with  Catalyst, which  was  completed  on July  2,  2012,  and 
contributed $3.2 billion and  $1.6 billion in additional  revenue in 2012  and 
Q4, 2012,  respectively,  as  well  as  organic growth  as  a  result  of  the 
implementation of new customer contracts in 2012.

HCIT Revenue
Total HCIT revenue increased $38.8 million, or 33% to $155.0 million in  2012, 
compared to $116.3 million for the same period in 2011. HCIT revenue increased
$7.1 million, or 23% to $37.5 million in Q4 2012, compared to $30.4 million in
Q4 2011. The  increase in both  periods was  primarily due to  an increase  in 
transaction volume or rates from existing customers, plus additional  revenues 
earned from Catalyst and  HealthTran customers acquired  that are included  in 
the HCIT segment.

Consolidated Gross Profit
Gross profit increased  $423.9 million,  or 137%  to $733.4  million in  2012, 
compared to $309.5  million in  2011. Gross profit  was $265.6  million in  Q4 
2012, compared to $89.4 million  in Q4 2011. The  increase in both periods  is 
mainly due to an increase in PBM revenue generated from the recent merger with
Catalyst, organic growth as a result of new customer contract  implementations 
in  2012  and  the  acquisition  of  HealthTran.  Consolidated  gross   profit 
percentage increased from 6.2% of revenue in 2011 to 7.4% of revenue in  2012. 
Consolidated gross profit percentage increased from 6.5% in Q4 2011 to 8.0% in
Q4 2012.  The  increases  were  the result  of  synergies  realized  from  the 
integrations  of  Catalyst   and  HealthTran   customers,  increased   generic 
utilization and improved mail and specialty volume during 2012.

Selling, General and Administrative ("SG&A") Costs
SG&A costs  increased $223.7  million,  or 153%  to  $369.5 million  in  2012, 
compared to  $145.8  million in  2011.  SG&A costs  for  Q4 2012  were  $114.4 
million, compared to $41.7 million in  Q4 2011. SG&A costs have increased  due 
to the addition of operating costs related to the Company's recent merger with
Catalyst and acquisition of HealthTran during 2012, as well as transaction and
integration costs  incurred  related  to  increased  headcount  and  operating 
expenses as a result of the merger with Catalyst totaling approximately  $44.2 
million in 2012.

Amortization
Total amortization expense increased $113.7 million to $130.1 million in 2012,
compared to $16.4 million in 2011.  Amortization expense was $59.4 million  in 
Q4 2012, compared to $5.3 million in Q4 2011. The increase in both periods is
primarily due to  the amortization  of the  intangible asset  acquired in  the 
recent merger with Catalyst.

Interest and other expense, net
Interest and other expense,  net increased $24.4 million  to $26.7 million  in 
2012, from $2.3 million  in 2011. Interest and  other expense, net, was  $11.6 
million in Q4 2012, compared to $0.3 million in Q4 2011. The increase in  both 
periods is driven  by an increase  in interest expense,  compared to the  same 
periods in 2011 related to the $1.4 billion utilized from the Company's credit
facility to partially finance the merger with Catalyst.

Income Taxes
The  Company  recognized  income  tax  expense  of  $69.3  million  for  2012, 
representing an effective  tax rate of  36.4%, compared to  $46.5 million,  or 
33.6% in 2011. The Company recognized  income tax expense of $26.0 million  in 
Q4 2012,  representing an  effective  tax rate  of  35.2%, compared  to  $13.4 
million, or  33.5% in  Q4 2011.  The Company's  effective tax  rate  increased 
during each period primarily due to costs related to the merger with Catalyst.

Net Income and EPS attributable to the Company
The Company executed a two-for-one stock  split on October 1, 2012. All  share 
and per share data presented in this release have been retroactively  adjusted 
to reflect this stock split. The Company reported 2012 net income attributable
to the Company of $116.7 million, or $0.70 per share (fully-diluted), compared
to $91.8 million,  or $0.73  per share  (fully-diluted) in  2011. The  Company 
reported net income attributable to the Company of $42.5 million, or $0.21 per
share (fully-diluted) in  Q4 2012,  compared to  $26.7 million,  or $0.21  per 
share (fully-diluted)  in Q4  2011.  Net income  attributable to  the  Company 
increased during both periods  as a result of  the addition of the  HealthTran 
and Catalyst books  of business  and new customer  implementations during  the 
year. These  increases  were  offset  by  increased  headcount  and  operating 
expenses, increased interest expense as  a result of the Company's  borrowings 
utilized to  partially finance  the merger  with Catalyst,  costs incurred  to 
complete the merger and an increase in amortization expense as a result of  an 
intangible asset  acquired in  the  merger. EPS  attributable to  the  Company 
decreased in 2012 compared to  the same period in  2011, primarily due to  an 
increase in  the  number of  common  shares outstanding  as  a result  of  the 
Company's issuance of approximately 12 million common shares in May 2012 in  a 
public offering  and the  issuance  of approximately  66.8 million  shares  to 
complete the  merger  with  Catalyst.  EPS attributable  to  the  Company  was 
unchanged during Q4 2012 as compared to Q4 2011, mainly due to an increase  in 
net income attributable to the Company offset by an increase in the number  of 
common shares as described above.

Adjusted EPS¹ (fully-diluted), which  excludes all amortization of  intangible 
assets of  $130.1  million, net  of  tax, increased  46%  to $1.19  per  share 
(fully-diluted) in 2012, compared to $0.82 per share (fully-diluted) in  2011. 
Adjusted EPS was $0.39 per share (fully-diluted) in Q4 2012, compared to $0.24
per share (fully-diluted) in Q4 2011.

EBITDA¹
EBITDA for 2012 increased $196.3 million, or 118% to $362.7 million,  compared 
to $166.4  million  in 2011.  EBITDA  for Q4  2012  increased 203%  to  $146.6 
million, compared to $48.3 million for Q4  2011. The EBITDA growth was due  to 
additional business  generated from  the recent  merger with  Catalyst,  other 
recent acquisitions and their  associated synergies, as  well as new  contract 
implementations, offset  in part  by  costs related  to the  merger  including 
transaction and integration expenses.

Cash Flow from Operations
For 2012,  the  Company generated  $249.7  million of  cash  from  operations, 
compared to $94.7 million  of cash from operations  during the same period  in 
2011. The Company generated $102.3 million of cash flow from operations in  Q4 
2012, compared  to  $10.2  million  during  Q4  2011.  Cash  from  operating 
activities increased during  both periods  mainly due  to an  increase in  net 
income, net of  non-cash items. The  increased transaction volume  in the  PBM 
segment, propelled by new customer implementations during 2012, as well as the
additional business  generated  as  a  result of  the  Company's  merger  with 
Catalyst and  other  recent  acquisitions,  were  also  drivers  of  increased 
operating cash flow during 2012.

2013 Full Year Financial Guidance
Catamaran has set the following 2013 full year financial targets.

  *Revenue of $14.2 to $14.6 billion
  *EBITDA^1 of $660 to $670 million
  *GAAP EPS (fully-diluted) of $1.18 to $1.25
  *Adjusted EPS^1 (fully-diluted) of $1.81 to $1.88 (excluding all
    amortization of intangible assets)

Notice of Conference Call
Catamaran will host a conference call on Thursday, February28, 2013, at  8:30 
a.m. ET to discuss its financial results. Mark Thierer, Chairman and CEO,  and 
Jeff Park, EVP and CFO, will co-chair the call. This call is being webcast and
can be accessed from the IR Events page of the Catamaran Corporation web  site 
at www.catamaranrx.com. An archived replay  of the webcast will be  available 
for 90 days.

^1Non-GAAP Financial Measures
Catamaran reports its financial results in accordance with generally  accepted 
accounting principles in  the United States  ("GAAP"). Catamaran's  management 
also evaluates and makes operating decisions using various other measures. Two
such measures  are  Adjusted EPS  and  EBITDA, which  are  non-GAAP  financial 
measures. Catamaran's  management believes  that  these two  measures  provide 
useful supplemental  information  regarding  the  performance  of  Catamaran's 
business operations.

Adjusted EPS  adds  back the  impact  of all  intangible  assets  amortization 
expenses, net of tax. Amortization of intangible asset expense arises from the
acquisition of intangible  assets in  connection with  the Company's  business 
acquisitions. The Company excludes intangible assets amortization expense from
EPS because  it believes:  (i) the  amount of  such expenses  in any  specific 
period may not directly correlate to the underlying performance of Catamaran's
business operations and;  (ii) such  expenses can  vary significantly  between 
periods as a result  of new acquisitions and  full amortization of  previously 
acquired intangible  assets.  Investors should  note  that the  use  of  these 
intangible assets contributes to revenue in  the periods presented as well  as 
future periods and should  also note that such  expenses will recur in  future 
periods.

EBITDA is a non-GAAP measure that management believes is a useful supplemental
measure of  operating  performance.  EBITDA  consists  of  earnings  prior  to 
amortization, depreciation, interest and other expense, net, income taxes  and 
adjustments to remove the applicable depreciation and interest expense  impact 
of the non-controlling interests. Management believes it is useful to  exclude 
amortization, depreciation,  interest  and other  expense,  net, as  they  are 
essentially amounts that cannot be influenced by management in the short term.

The 2013 full year EBITDA guidance was computed using the Company's  estimated 
2013 earnings before amortization,  depreciation, interest and other  expense, 
net and income taxes. The 2013 full year Adjusted EPS guidance was computed by
taking the Company's  GAAP EPS  (fully-diluted) guidance and  adding back  the 
expected impact of all 2013  amortization expense totaling approximately  $195 
million, less estimated 2013 income taxes  at an estimated effective tax  rate 
of 32-33%.

Adjusted  prescription   claim   volume  equals   Catamaran's   mail   service 
prescriptions  multiplied   by   three,   plus  its   retail   and   specialty 
prescriptions. The  mail  service prescriptions  are  multiplied by  three  to 
adjust for the fact that they typically include approximately three times  the 
amount of product days supplied compared with retail prescriptions.

Management believes that Adjusted EPS, EBITDA and adjusted prescription  claim 
volume provide  useful supplemental  information to  management and  investors 
regarding the performance of the Company's business operations and  facilitate 
comparisons to its  historical operating  results. Management  also uses  this 
information internally for forecasting and  budgeting as it believes that  the 
measures are  indicative  of  the  Company's  core  operating  results.  Note, 
however, that these items  are performance measures only,  and do not  provide 
any measure  of  the Company's  cash  flow or  liquidity.  Non-GAAP  financial 
measures should not be  considered as a substitute  for measures of  financial 
performance in accordance with GAAP, and investors and potential investors are
encouraged to review the reconciliations of  Adjusted EPS and EBITDA to  their 
most directly comparable GAAP measure.

Adjusted EPS and EBITDA do not have standardized meanings prescribed by  GAAP. 
The Company's method of  calculating these items may  differ from the  methods 
used by other companies and, accordingly,  may not be comparable to  similarly 
titled measures used by other companies.

Reconciliations of  EBITDA  to net  income  and GAAP  EPS  (fully-diluted)  to 
Adjusted EPS (fully-diluted) are shown below:

EBITDA Reconciliation   Three Months Ended December  Years Ended December 31,
                                                31,
(in thousands)              2012           2011        2012         2011
                               (unaudited)                (unaudited)
Net income attributable   $    42,529    $  26,684   $  116,658   $  91,786
to the Company (GAAP)
Add:                                                                   
  Amortization of             59,407        5,260      130,116      16,385
   intangible assets
  Depreciation of              7,288        2,676       20,234       9,492
   property and
   equipment
  Interest and other          11,619          302       26,682       2,277
   expense, net
  Income tax expense          26,008       13,418       69,316      46,508
  Adjustments related          (260)            —        (276)           —
   to non-controlling
   interests
EBITDA                    $   146,591    $  48,340   $  362,730   $ 166,448

Adjusted EPS Reconciliation                                                                         
(in                                                                                                
thousands,
except per
share data)
                   Three Months Ended December 31,                   Years Ended December 31,
                    2012                   2011                   2012                   2011
                           Per                   Per                   Per                   Per
             Operational   Diluted   Operational   Diluted   Operational   Diluted   Operational   Diluted
               Results      Share      Results      Share      Results      Share      Results      Share
                             (unaudited)                                    (unaudited)
Net income
attributable                                                                    
to the
Company        $  42,529   $ 0.21    $  26,684   $ 0.21   $  116,658   $ 0.70   $   91,786   $ 0.73
(GAAP)
Amortization      59,407     0.28        5,260     0.04      130,116     0.77       16,385     0.13
of
intangible
assets
Tax effect      (20,911)   (0.10)      (1,762)   (0.01)     (47,362)   (0.28)      (5,505)   (0.04)
of
reconciling
item
Non-GAAP net                                                                    
income
attributable   $  81,025   $ 0.39    $  30,182   $ 0.24   $  199,412   $ 1.19   $  102,666   $ 0.82
to the
Company
                                                                               

About Catamaran Corporation
Catamaran, the  industry's fastest-growing  pharmacy benefits  manager,  helps 
organizations and the communities they serve take control of prescription drug
costs. Managing more than 250 million prescriptions each year on behalf of  25 
million members, our  flexible, holistic  solutions improve  patient care  and 
empower individuals to take  charge of their health.  Processing one in  every 
five prescription  claims in  the U.S.,  Catamaran's skill  and scale  deliver 
compelling financial results and sustainable improvement in the overall health
of members. Catamaran is headquartered  in Lisle, IL. with multiple  locations 
in   the   U.S.   and   Canada.    For   more   information,   please    visit 
www.catamaranrx.com.

Forward-Looking Statements

Certain information included herein is  forward-looking within the meaning  of 
certain securities laws and is  subject to important risks, uncertainties  and 
assumptions. This forward-looking  information includes,  among other  things, 
information with respect  to the Company's  anticipated operating results  and 
the Company's objectives and  the strategies to  achieve those objectives,  as 
well  as  information   with  respect   to  the   Company's  beliefs,   plans, 
expectations, anticipations, estimates and intentions. Numerous factors  could 
cause actual results to  differ materially from  those in the  forward-looking 
statements, including without  limitation, our dependence  on, and ability  to 
retain, key customers; our ability to achieve increased market acceptance  for 
our  product  offerings  and  penetrate  new  markets;  consolidation  in  the 
healthcare industry; the existence of undetected errors or similar problems in
our software  products; our  ability to  identify and  complete  acquisitions, 
manage our growth, integrate acquisitions and achieve expected synergies  from 
acquisitions; our ability to compete successfully; potential liability for the
use of incorrect or  incomplete data; the  length of the  sales cycle for  our 
solutions and services; interruption of our operations due to outside sources;
maintaining  our  intellectual  property   rights  and  litigation   involving 
intellectual property  rights;  our ability  to  obtain, use  or  successfully 
integrate third-party  licensed  technology; compliance  with  existing  laws, 
regulations and industry initiatives and future changes in laws or regulations
in the  healthcare industry;  breach of  our security  by third  parties;  our 
dependence on the  expertise of our  key personnel; our  access to  sufficient 
capital to fund our future  requirements; potential write-offs of goodwill  or 
other intangible assets; and the outcome of any legal proceeding that has been
or may be instituted against  us. This list is  not exhaustive of the  factors 
that may  affect any  of  our forward-looking  statements  and is  subject  to 
change.

In addition, numerous factors could cause  actual results with respect to  the 
merger with Catalyst Health  Solutions, Inc. ("Catalyst"  or the "Merger")  to 
differ materially  from those  in  the forward-looking  statements,  including 
without limitation, the  possibility that the  expected efficiencies and  cost 
savings from the Merger will not be  realized, or will not be realized  within 
the  expected  time  period;  the  risk  that  the  Company's  and  Catalyst's 
businesses will not  be integrated  successfully; disruption  from the  Merger 
making it more difficult to  maintain business and operational  relationships; 
the risk of customer  attrition; and the impact  on the availability of  funds 
for other business  purposes due to  our debt service  obligations and  funds 
required to integrate Catalyst.

When relying on forward-looking information  to make decisions, investors  and 
others should carefully consider the foregoing factors and other uncertainties
and potential  events.  In  making the  forward-looking  statements  contained 
herein, the  Company  does not  assume  any significant  future  acquisitions, 
dispositions or  one-time  items. It  does  assume, however,  the  renewal  of 
certain customer  contracts.  Every  year,  the  Company  has  major  customer 
contracts that come up for renewal. In addition, the Company also assumes  new 
customer  contracts.  In   this  regard,   the  Company   is  pursuing   large 
opportunities  that  present  a  very  long  and  complex  sales  cycle  which 
substantially affects  its  forecasting  abilities. The  Company  has  assumed 
certain timing for the realization of these opportunities which it believes is
reasonable but which may  not be achieved. Furthermore,  the pursuit of  these 
larger opportunities  does not  ensure  a linear  progression of  revenue  and 
earnings since  they  may  involve  significant  up-front  costs  followed  by 
renewals and  cancellations of  existing contracts.  The Company  has  assumed 
certain revenues which may not be realized. The Company has also assumed  that 
the material factors  referred to in  the previous paragraphs  will not  cause 
such forward-looking information to differ  materially from actual results  or 
events. The foregoing  list of  factors is not  exhaustive and  is subject  to 
change and there can  be no assurance that  such assumptions will reflect  the 
actual outcome  of  such  items  or factors.  Other  factors  that  should  be 
considered are discussed  from time to  time in Catamaran's  filings with  the 
U.S. Securities and Exchange Commission, including the risks and uncertainties
discussed under the captions "Risk  Factors" and "Management's Discussion  and 
Analysis of  Financial Condition  and  Results of  Operations" in  our  Annual 
Report on  Form  10-K  and  subsequent Form  10-Qs,  which  are  available  at 
www.sec.gov.  Investors  are   cautioned  not  to   put  undue  reliance   on 
forward-looking statements. All subsequent  written and oral  forward-looking 
statements attributable  to Catamaran  or  persons acting  on our  behalf  are 
expressly qualified in their entirety by this notice. We disclaim any  intent 
or obligation to update publicly these forward-looking statements, whether  as 
a result of new information, future events or otherwise.

THE FORWARD-LOOKING  INFORMATION  CONTAINED  IN THIS  RELEASE  REPRESENTS  THE 
COMPANY'S  CURRENT  EXPECTATIONS  AND,  ACCORDINGLY,  IS  SUBJECT  TO  CHANGE. 
HOWEVER, THE COMPANY EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE
OR REVISE  ANY  FORWARD-LOOKING  INFORMATION,  WHETHER  AS  A  RESULT  OF  NEW 
INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.

                            CATAMARAN CORPORATION
                         Consolidated Balance Sheets
                      (in thousands, except share data)

                                                          December31,
                                                       2012         2011
                                                                            
                       ASSETS                                              
Current assets                                                             
 Cash and cash equivalents                          $   370,776  $   341,382
 Restricted cash                                         52,422       12,017
 Accounts receivable, net of allowance for doubtful     725,809      240,425
  accounts of $7,899 (2011 - $2,725)
 Rebates receivable                                     302,461       33,834
 Other current assets                                   101,311       35,605
              Total current assets                   1,552,779      663,263
Property and equipment, net of accumulated               105,201       21,658
depreciation of $64,048 (2011 - $43,304)
Goodwill                                               4,478,038      291,045
Other intangible assets, net of accumulated            1,198,991       69,777
amortization of $178,188 (2011 - $48,072)
Other long-term assets                                    50,118        4,564
Total assets                                         $ 7,385,127  $ 1,050,307
               LIABILITIES AND EQUITY                                      
Current liabilities                                                        
 Accounts payable                                   $   644,818  $   219,380
 Accrued expenses and other current liabilities         254,811       66,729
 Pharmacy benefit management rebates payable            302,065       59,235
 Current portion - long-term debt                        41,250            —
              Total current liabilities              1,242,944      345,344
Deferred income taxes                                    344,232       18,361
Long-term debt                                         1,132,153            —
Other long-term liabilities                               55,937       15,564
              Total liabilities                      2,775,266      379,269
                                                                          
Shareholders' equity                                                       
  Common shares: no par value, unlimited shares
 authorized; 205,399,102shares issued and                     
  outstanding at
 December31, 2012 (2011 - 124,767,322)               4,180,778      394,769
 Additional paid-in capital                              73,530       37,936
 Retained earnings                                      354,991      238,333
 Accumulated other comprehensive income (loss)          (2,191)            —
 Total shareholders' equity                           4,607,108      671,038
 Non-controlling interest                                 2,753            —
 Total equity                                         4,609,861      671,038
Total liabilities and equity                         $ 7,385,127  $ 1,050,307
                                                              

                            CATAMARAN CORPORATION
                    Consolidated Statements of Operations
               (in thousands, except share and per share data)

                           Three Months Ended             Years Ended
                               December 31,                December31,
                           2012         2011         2012         2011
                                             (unaudited)
                                                                      
Revenue                  $ 3,329,540  $ 1,378,514  $ 9,940,120  $ 4,975,496
Cost of revenue            3,063,948    1,289,148    9,206,744    4,666,008
Gross profit                 265,592       89,366      733,376      309,488
Expenses:                                                              
   Selling, general and     114,400       41,721      369,492      145,788
    administrative
   Depreciation of            6,196        1,981       16,749        6,744
    property and
    equipment
   Amortization of           59,407        5,260      130,116       16,385
    intangible assets
                            180,003       48,962      516,357      168,917
Operating income              85,589       40,404      217,019      140,571
Interest and other            11,619          302       26,682        2,277
expense, net
Income before income          73,970       40,102      190,337      138,294
taxes
Income tax expense                                                     
(benefit):
   Current                   45,237       17,816      107,241       52,402
   Deferred                (19,229)      (4,398)     (37,925)      (5,894)
                             26,008       13,418       69,316       46,508
Net income                    47,962       26,684      121,021       91,786
Less net income                5,433            —        4,363            —
attributable to
non-controlling interest
Net income attributable  $    42,529  $    26,684  $   116,658  $    91,786
to the Company
Earnings per share:                                                    
   Basic                $      0.21  $      0.21  $      0.70  $      0.74
   Diluted              $      0.21  $      0.21  $      0.70  $      0.73
Weighted average number                                                
of shares used in
computing earnings per
share:
   Basic                205,231,817  124,694,774  166,765,682  124,253,312
   Diluted              206,147,295  126,244,708  167,830,620  125,903,516
                                                         

                            CATAMARAN CORPORATION
                    Consolidated Statements of Cash Flows
                                (in thousands)

                             Three Months Ended          Years Ended
                                December 31,               December 31,
                             2012        2011        2012         2011
                                (unaudited)                   
Cash flows from operating                                               
activities:                 
Net income                  $ 47,962   $ 26,684   $ 121,021  $ 91,786
Items not involving cash:                                              
    Stock-based                 4,506       2,938       17,667       9,445
     compensation
    Depreciation of             7,288       2,676       20,234       9,492
     property and equipment
    Amortization of            59,407       5,260      130,116      16,385
     intangible assets
    Deferred lease              1,727       1,156        3,136         759
     inducements and rent
    Deferred income taxes    (19,229)     (4,398)     (37,925)     (5,894)
    Tax benefit on option     (2,183)     (1,482)     (19,397)    (10,804)
     exercises
    Deferred financing          2,493           —        4,985           —
     cost amortization
Changes in operating assets
and liabilities, net of                                                 
effects from acquisitions:  
    Accounts receivable      (48,123)    (16,469)    (134,282)   (110,528)
    Rebates receivable       (47,669)         651     (40,988)       5,267
    Restricted cash              (33)       2,954        9,305       1,773
    Other current assets       30,978     (6,143)       73,492      10,213
    Accounts payable           11,143       6,280       70,620      94,799
     Accrued expenses and
    other current               1,512     (9,501)     (36,005)    (10,806)
     liabilities
     Pharmacy benefit
    management rebates         50,593       (715)       60,929     (6,019)
     payable
    Other                       1,882         269        6,825     (1,200)
          Net cash provided
         by operating         102,254      10,160      249,733      94,668
         activities
Cash flows from investing                                               
activities:                 
    Acquisitions, net of      (1,320)    (67,641)  (1,565,705)    (79,825)
     cash acquired
    Purchases of property    (27,334)     (6,615)     (40,236)     (9,690)
     and equipment
          Net cash used in
         investing           (28,654)    (74,256)  (1,605,941)    (89,515)
         activities
Cash flows from financing                                               
activities:                 
    Proceeds from issuance      5,000           —    1,475,448           —
     of debt
     Proceeds from public
    offering, net of                —           —      519,075           —
     issuance costs
    Repayment of long-term  (105,000)           —    (616,993)           —
     debt
    Proceeds from exercise      2,025         456        7,763       5,735
     of options
    Tax benefit on option       2,183       1,482       19,397      10,804
     exercises
    Payment of financing            —     (1,595)     (18,806)     (1,595)
     costs
    Other                         (6)           —        (268)           —
          Net cash provided
         by (used in)        (95,798)         343    1,385,616      14,944
          financing
         activities
Effect of foreign exchange                      24         (14)           1
on cash balances                  (58)
(Decrease) increase in cash               (63,729)       29,394      20,098
and cash equivalents          (22,256)
Cash and cash equivalents,                 405,111      341,382     321,284
beginning of period            393,032
Cash and cash equivalents,              $ 341,382   $ 370,776  $ 341,382
end of period               $ 370,776
                                                                     
                                                                     









SOURCE Catamaran

Contact:

Tony Perkins
Investor Relations
Catamaran Corporation
(312) 261—7805
tony.perkins@catamaranrx.com