Omnicare : Omnicare Reports First-Quarter 2013 Financial Results

       Omnicare : Omnicare Reports First-Quarter 2013 Financial Results

CINCINNATI, April 24, 2013 - Omnicare, Inc. (NYSE:OCR) reported today
financial results for its first quarter ended March 31, 2013.

First-Quarter Highlights:

  *Gross profit of $371 million; 121 basis-point expansion in gross margin
    rate

  *Adjusted cash earnings per diluted share 11.1% higher to $0.90; GAAP
    earnings per diluted share of $0.51 

  *Cash flows from operations of $109 million 

"We are pleased to begin 2013 with a solid quarter," said John L. Workman,
Omnicare's Chief Executive Officer. "As we made further progress toward our
goal of achieving sustainable net organic growth within Long-Term Care, we
continued to reduce costs, largely through the utilization of low-cost generic
alternatives. These cost improvements, coupled with another strong quarterly
performance from our Specialty Care Group and the ongoing benefits of our
efficient allocation of capital, helped drive our double-digit adjusted cash
earnings per diluted share increase."

First-Quarter Results

Financial results for the quarter ended March 31, 2013, as compared with the
same prior-year period, were as follows:

  *Net sales was $1,525 million versus $1,593 million 

  *Gross profit was $371 million as compared with $368 million 

  *GAAP earnings per diluted share was $0.51 versus $0.48 

  *Adjusted cash earnings per diluted share (see "per share" discussion below
    and attached supplemental information) was $0.90 versus $0.81 

  *Adjusted EBITDA was $172 million versus $170 million 

Cash flows from operations for the quarter ended March 31, 2013 were $109
million versus $100 million in the comparable prior-year quarter. 

"We remain encouraged by the steps we have taken operationally," said Nitin
Sahney, Omnicare's President and Chief Operating Officer. "As we continue to
make refinements designed to optimize our Long-Term Care platforms, we have
begun to generate some early benefits, particularly as a result of our sales
transformational strategy and structural modifications to account management.
Within our Specialty Care Group, we continue to see favorable client
responses to our commercialization services for specialty products, with each
of these platforms generating double-digit first-quarter growth."

Financial Position

Omnicare concluded the first quarter of 2013 with no borrowings outstanding on
its revolving credit facility and $510 million in cash on its balance sheet. 

As of March 31, 2013, the Company had approximately $220 million of
availability under its current share repurchase authorization. Omnicare was
unable to repurchase shares in the open market during the first quarter of
2013 due to the ongoing Accelerated Share Repurchase (ASR) agreement. The ASR
is expected to reach final settlement during the second quarter of 2013.

"The first quarter was another period of strong cash flows," said Rocky Kraft,
Omnicare's Chief Financial Officer. "While our ability to return capital to
stockholders was limited in the first quarter due to the ongoing ASR
agreement, we made additional investments in the business while improving our
financial position. We expect to remain opportunistic with respect to capital
allocation, redeploying our cash flows in a manner we believe is most aligned
with enhancing stockholder value."

To facilitate comparisons and to enhance the understanding of core operating
performance, discussions in this news release include financial measures that
are adjusted from the comparable amounts under GAAP to exclude the impact of
the special items discussed elsewhere herein, and to present results on a
continuing operations basis. For a detailed presentation of reconciling items
and related definitions and components, please refer to the attached schedules
or to reconciliation schedules posted at the Investor Relations section of
Omnicare's website at http://ir.omnicare.com. Additionally, the Company will
make supplemental slides available in the same section on its website today
that will include the number of scripts dispensed, beds served, and other
information relevant to Omnicare's operations.

Segment Information

Financial results for the Long-Term Care Group for the first quarter ended
March 31, 2013 were as follows:

  *Net sales of $1,155 million were 10.9% lower than $1,296 million in the
    same prior-year period

  *Adjusted operating income of $155 million increased 0.6% from $154 million
    in the same prior-year period

Financial results for the Specialty Care Group for the first quarter ended
March 31, 2013 were as follows:

  *Net sales of $369 million were 25.9% higher than $293 million in the same
    prior-year period

  *Adjusted operating income of $38 million increased 26.0% from $30 million
    in the same prior-year period

Special Items

The results for the first quarter of 2013 and 2012 include the impact of
special items and cash EPS adjustments as follows:

                                      Three months ended
                        March 31, 2013                  March 31, 2012
                                  Per diluted      After-tax     Per diluted
                After-tax impact     share          impact          share
Special Items
Adj.                 $20.1M          $0.19          $17.7M          $0.15
Cash EPS Adj.        $22.0M          $0.20          $20.9M          $0.18

The special items and cash EPS adjustments have been described in further
detail in the "Footnotes and Definitions to Financial Information" section
elsewhere herein.

Outlook

For the full year 2013, Omnicare reaffirmed its previous expectations as the
following:

                                                              Current Guidance
Revenue                                                        $6.1B to $6.2B
Adjusted cash earnings per diluted share (excluding special
items)                                                         $3.47 to $3.57
Cash flows from operations                                     $450M to $500M

Webcast Today

Omnicare will hold a conference call to discuss its first-quarter 2013
financial results today, Wednesday, April 24, at 9:00 a.m. ET. A live webcast
of the conference call and supplemental slides will be accessible from the
Investor Relations section of Omnicare's website at http://ir.omnicare.com.
An archived replay will be made available on the website following the
conclusion of the conference call.

About Omnicare

Omnicare, Inc., a Fortune 400 company based in Cincinnati, Ohio, provides
comprehensive pharmaceutical services to patients and providers across North
America. As the market-leader in professional pharmacy, related consulting
and data management services for skilled nursing, assisted living and other
chronic care institutions, Omnicare leverages its unparalleled clinical
insight into the geriatric market along with some of the industry's most
innovative technological capabilities to the benefit of its long-term care
customers. Omnicare also provides key commercialization services for the
bio-pharmaceutical industry and end-of-life disease management through its
Specialty Care Group. For more information, visit www.omnicare.com.

Forward-looking Statements

In addition to historical information, this report contains certain statements
that constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
include, but are not limited to, all statements regarding the intent, belief
or current expectations regarding the matters discussed or incorporated by
reference in this document (including statements as to
"beliefs,""expectations,""anticipations,""intentions" or similar words) and
all statements which are not statements of historical fact. Such
forward-looking statements, together with other statements that are not
historical, are based on management's current expectations and involve known
and unknown risks, uncertainties, contingencies and other factors that could
cause results, performance or achievements to differ materially from those
stated. The most significant of these risks and uncertainties are described in
the Company's Form 10-K, Form 10-Q and Form 8-K reports filed with the
Securities and Exchange Commission and include, but are not limited to:
overall economic, financial, political and business conditions; trends in the
long-term healthcare and pharmaceutical industries; the ability to attract new
clients and service contracts and retain existing clients and service
contracts; the ability to consummate pending acquisitions on favorable terms
or at all; trends for the continued growth of the Company's businesses; trends
in drug pricing; delays and reductions in reimbursement by the government and
other payors to customers and to the Company; the overall financial condition
of the Company's customers and the ability of the Company to assess and react
to such financial condition of its customers; the ability of vendors and
business partners to continue to provide products and services to the Company;
the successful integration of acquired companies and realization of
contemplated synergies; the continued availability of suitable acquisition
candidates; the ability to attract and retain needed management; competition
for qualified staff in the healthcare industry; variations in demand for the
Company's products and services; variations in costs or expenses; the ability
to implement productivity, consolidation and cost reduction efforts and to
realize anticipated benefits; the potential impact of legislation, government
regulations, and other government action and/or executive orders, including
those relating to Medicare Part D, including its implementing regulations and
any subregulatory guidance, reimbursement and drug pricing policies and
changes in the interpretation and application of such policies, including
changes in calculation of average wholesale price; discontinuation of
reporting average wholesale price, and/or implementation of new pricing
benchmarks; legislative and regulatory changes impacting long term care
pharmacies; government budgetary pressures and shifting priorities; federal
and state budget shortfalls; efforts by payors to control costs; changes to or
termination of the Company's contracts with pharmaceutical benefit managers,
Medicare Part D Plan sponsors and/or commercial health insurers or to the
proportion of the Company's business covered by specific contracts; the
outcome of disputes and litigation; potential liability for losses not covered
by, or in excess of, insurance; the impact of executive separations; the
impact of benefit plan terminations; the impact of differences in actuarial
assumptions and estimates as compared to eventual outcomes; events or
circumstances which result in an impairment of assets, including but not
limited to, goodwill and identifiable intangible assets; the final outcome of
divestiture activities; market conditions; the outcome of audit, compliance,
administrative, regulatory, or investigatory reviews; volatility in the market
for the Company's stock and in the financial markets generally; access to
adequate capital and financing; changes in tax laws and regulations; changes
in accounting rules and standards; the impacts of potential cybersecurity
risks and/or incidents; and costs to comply with the Company's Corporate
Integrity Agreement. Should one or more of these risks or uncertainties
materialize or should underlying assumptions prove incorrect, the Company's
actual results, performance or achievements could differ materially from those
expressed in, or implied by, such forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. Except as otherwise required by law,
the Company does not undertake any obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

                                #   #   #

Contact:
Patrick C. Lee
(513) 719-1507
patrick.lee@omnicare.com

Omnicare, Inc. and Subsidiary Companies
Summary Consolidated Statements of Income, GAAP Basis
($000s, except per share amounts)
Unaudited

                                                    Three months ended
                                              March31, 2013   March31, 2012
Net sales                                     $   1,525,003      $ 1,593,068
Cost of sales                                     1,154,179        1,224,968
Gross profit                                        370,824          368,100
Selling, general and administrative expenses        201,826          200,124
Provision for doubtful accounts                      24,226           24,431
Settlement, litigation and other related
charges                                              22,619            7,203
Other charges                                         4,006           11,512
Operating income                                    118,147          124,830
Interest expense, net of investment income          (29,459 )        (30,834 )
Income from continuing operations before
income taxes                                         88,688           93,996
Income tax provision                                 34,334           38,257
Net income                                           54,354           55,739
Earnings (loss) per common share - Diluted:   $        0.51      $      0.48
Weighted average number of common shares
outstanding:
Diluted                                             107,466          116,500

The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.

Omnicare, Inc and Subsidiary Companies
Consolidated Balance Sheets
(000s)
Unaudited

                                                  March31,     December31,
                                                     2013           2012
ASSETS
Current assets:
Cash and cash equivalents                        $   509,818     $   454,213
Restricted cash                                            5           1,066
Accounts receivable, less allowances                 840,383         857,052
Inventories                                          382,658         385,698
Deferred income tax benefits                         115,785         136,186
Other current assets                                 279,476         254,644
Total current assets                               2,128,125       2,088,859
Properties and equipment, at cost less
accumulated depreciation
                                                292,794         282,660
Goodwill                                           4,256,959       4,256,959
Identifiable intangible assets, less accumulated
amortization                                         187,263         196,873
Other noncurrent assets                              147,211         163,913
Total noncurrent assets                            4,884,227       4,900,405
Total assets                                     $ 7,012,352     $ 6,989,264
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                 $   186,710     $   200,125
Accrued employee compensation                         47,707          73,791
Current debt                                         233,919          27,713
Other current liabilities                            203,839         180,385
Total current liabilities                            672,175         482,014
Long-term debt, notes and convertible debentures   1,817,991       2,030,030
Deferred income tax liabilities                      910,040         914,660
Other noncurrent liabilities                          61,909          56,848
Total noncurrent liabilities                       2,789,940       3,001,538
Total liabilities                                  3,462,115       3,483,552
Stockholders' equity                               3,550,237       3,505,712
Total liabilities and stockholders' equity       $ 7,012,352     $ 6,989,264

The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.

Omnicare, Inc and Subsidiary Companies
Condensed Consolidated Statements of Cash Flows, GAAP Basis
(000s)
Unaudited

                                                             March31, 2013
                                                           Three months ended
Cash flows from operating activities:
Net income                                                 $        54,354
Adjustments to reconcile net income to net cash flows from
operating activities:
Depreciation                                                        13,807
Amortization                                                        19,915
Changes in certain assets and liabilities, net of effects
from acquisition and divestiture of businesses:
Accounts receivable, net of provision for doubtful
accounts                                                            16,666
Inventories                                                          3,040
Current and noncurrent assets                                      (13,218 )
Accounts payable                                                    (3,642 )
Accrued employee compensation                                      (26,073 )
Current and noncurrent liabilities                                  44,046
Net cash flows from operating activities                           108,895
Cash flows from investing activities:
Capital expenditures                                               (23,129 )
Other                                                                  854
Net cash flows used in investing activities                        (22,275 )
Cash flows from financing activities:
Payments on term loans                                              (5,313 )
Payments on long-term borrowings and obligations                    (1,684 )
Decrease in cash overdraft balance                                  (9,774 )
Payments for Omnicare common stock repurchases                        (302 )
Proceeds for stock awards and exercise of stock options,
net of stock tendered in payment                                       445
Dividends paid                                                     (14,479 )
Other                                                                   92
Net cash flows used in financing activities                        (31,015 )
Net increase in cash and cash equivalents                           55,605
Cash and cash equivalents at beginning of period                   454,213
Cash and cash equivalents at end of period                 $       509,818

The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.

Omnicare, Inc. and Subsidiary Companies
Reconciliation Statement and Definitions, Non-GAAP Basis
($000s, except per share amounts)
Unaudited

                                                    Three months ended
                                              March31, 2013   March31, 2012
Adjusted earnings per share ("EPS") from
continuing operations:
Diluted earnings per share from continuing
operations                                    $       0.51       $      0.48
Special Items: (a)
Settlement, litigation and other related
charges                                               0.13              0.04
Other charges                                         0.02              0.08
Amortization of discount on convertible notes         0.03              0.03
Total Special Items                                   0.19              0.15
Cash EPS Adjustments                                  0.20              0.18
Adjusted cash earnings per diluted share from
continuing operations                         $       0.90       $      0.81
Adjusted earnings before interest, income
taxes ("EBIT", "Operating income"),
depreciation and amortization ("EBITDA") from
continuing operations:
EBIT from continuing operations               $    118,147       $   124,830
Depreciation and amortization                       33,722            32,461
Amortization of discount on convertible notes       (6,069 )          (6,350 )
EBITDA from continuing operations                  145,800           150,941
Special items (a)                                   26,625            18,715
Adjusted EBITDA from continuing operations         172,425           169,656
EBITDA from continuing operations to net cash
flows from operating activities:
EBITDA from continuing operations                  145,800           150,941
(Subtract)/Add:
Interest expense, net of investment income
and amortization of discount on convertible
notes                                              (23,390 )         (24,484 )
Income tax provision                               (34,334 )         (38,257 )
Write off of debt issuance costs, net                    -               103
Changes in certain assets and liabilities,
net of effects from acquisition and
  divestitures of businesses                      20,819            12,114
Net cash flows from operating activities of
continuing operations                         $    108,895       $   100,417
Segment Reconciliations - Long-Term Care
Group ("LTC")
Adjusted Operating Income - LTC:
Operating income from continuing operations        129,699           137,979
Special items (a)                                   25,371            16,215
Adjusted operating income from continuing
operations - LTC                                   155,070           154,194
Segment Reconciliations - Specialty Care
Group ("SCG")
Adjusted Operating Income - SCG:
Operating income from continuing operations         37,995            30,149
Special items (a)                                        -                 -
Adjusted operating income from continuing
operations - SCG                                    37,995            30,149

The footnotes and definitions presented at the separate "Footnotes and
Definitions to Financial Information" pages are an integral part of this
financial information.

Omnicare, Inc. and Subsidiary Companies
Footnotes and Definitions to Financial Information
(000s, except per share amounts and unless otherwise stated)
Unaudited

Footnotes:
Non-GAAP Information:
Omnicare,  Inc.  ("Omnicare"  or  the  "Company")  management  believes   that 
presenting certain  non-GAAP  financial  measures,  which  exclude  items  not 
considered part  of the  core operating  results of  the Company  and  certain 
non-cash charges and  also includes  certain tax  deduction amounts  ("Special 
Items"), enhances investors' understanding of how Omnicare management assesses
the performance of the Company's business. Omnicare management uses  non-GAAP 
measures  for  budgeting  purposes,   measuring  actual  results,   allocating 
resources and  in  determining employee  incentive  compensation.  Omnicare's 
method of calculating non-GAAP financial results may differ from those used by
other companies and, therefore, comparability may be limited.

a.Financial results  included  Special Items  and  Cash EPS  adjustments  as 
    described below:

                                 Q1 2013                     Q1 2012
                          Pretax   After Tax ^(8)     Pretax   After Tax ^(8)
EBIT:
Settlement, litigation
and other related
charges ^ (1)            $ 22,619     $   13,913     $  7,203     $    4,430
Other charges
Acquisition and other
related costs ^(2)            537            330        3,109          1,912
Disposition of
businesses ^(3)                 -              -        5,903          5,903
Separation costs ^(4)       3,469          2,134        2,500          1,537
Subtotal - Other
charges                     4,006          2,464       11,512          9,352
Subtotal - EBIT Special
Items                      26,625         16,377       18,715         13,782
Interest Expense:
Amortization of
discount on convertible
notes ^(5)                  6,069          3,733        6,350          3,906
Subtotal - Interest
Expense Special Items       6,069          3,733        6,350          3,906
Subtotal - Special
Items                      32,694         20,110       25,065         17,688
Cash EPS Items:
Amortization of
intangibles                 9,599          5,904       10,753          6,613
Goodwill amortization
tax deduction ^(6)              -          9,447            -         10,859
Convertible debt tax
deduction ^ (7)                 -          6,626            -          3,437
Subtotal - Cash EPS
Items                       9,599         21,977       10,753         20,909
Grand Total - Special
Items                    $ 42,293     $   42,087     $ 35,818     $   38,597

1.Operating income includes settlement, litigation and other related charges
    for resolution of certain large customer disputes, regulatory matters with
    various states and  regulatory agencies,  qui tam  lawsuits and  purported 
    class and derivative actions against the Company. Additionally,  Omnicare 
    has made,  and  will  continue  to make,  disclosures  to  the  applicable 
    governmental  agencies  of  amounts,  if  any,  determined  to   represent 
    over-payments from the  respective programs and,  where applicable,  those 
    amounts, as well as any  amounts relating to certain inspections,  audits, 
    inquiries and investigations activity are  included in the pretax  special 
    item reflected in the table.  

2.Operating income includes  acquisition and other  related costs  primarily 
    related to professional fees  and acquisition related restructuring  costs 
    for acquisitions. 

3.In 2012 the Company completed the disposition of its Canadian pharmacy and
    the Company's  pharmacy operational  software  business, which  were  not 
    considered,  individually  or  in   the  aggregate,  significant  to   the 
    operations of Omnicare. The Company recorded a charge on the  disposition 
    of these businesses in the three months ended March 31, 2012.

4.Operating income  includes separation  related  costs for  certain  former 
    employees.

5.The Company recorded  non-cash interest expense  from the amortization  of 
    debt discount on its convertible notes.

6.The tax benefit of being able to deduct goodwill amortization. 

7.The tax benefit  of being able  to deduct higher  interest expense on  our 
    convertible debt than what is actually paid.

8.The tax effect  was calculated  by multiplying  the tax-deductible  pretax 
    amounts by the appropriate effective tax rate.

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Source: Omnicare via Thomson Reuters ONE
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