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Mittwoch, 06.05.2020 12:35 von PR Newswire | Aufrufe: 100

CVS Health Reports First Quarter Results, Provides Update On COVID-19 Response 2020 Full Year EPS Guidance Remains Unchanged

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PR Newswire

WOONSOCKET, R.I., May 6, 2020

WOONSOCKET, R.I., May 6, 2020 /PRNewswire/ --

Swift and Decisive Response to COVID-19:

Support for employees, clients and communities across the country
Testing thousands every day in collaboration with federal, state and local officials
Consumer-driven health care model increases access to goods and services

First Quarter Year-over-Year Highlights:

Total revenues increased 8.3% to $66.8 billion
GAAP operating income increased 28.6% to $3.5 billion
Adjusted operating income ⁽¹⁾ increased 14.4% to $4.1 billion
GAAP diluted earnings per share of $1.53
Adjusted EPS ⁽²⁾ of $1.91
Generated cash flow from operations of $3.3 billion

2020 Full Year Guidance:

GAAP diluted EPS guidance range of $5.47 to $5.60 and Adjusted EPS⁽²⁾ guidance range of $7.04 to $7.17 remain unchanged
Cash flow from operations guidance range of $10.5 billion to $11.0 billion remains unchanged
Given the likelihood of significant variability in the impact of COVID-19 on the Company's financial statement line items and related ratios, 2020 additional detailed guidance not noted above is withdrawn

CVS Health Corporation (NYSE: CVS) today announced operating results for the three months ended March 31, 2020.

CVS Health President and CEO Larry J. Merlo stated, "We have a presence in communities across the country and interact with one in three Americans every year. We have a leading consumer brand with a diversified portfolio of essential health care businesses.

"When facing any health crisis, including this pandemic, we're uniquely positioned to understand consumer and patient needs and how to address them. This includes increasing access to medicine and virtual care, and testing thousands for the virus every day to ready our country to reopen safely. We're utilizing our innovation-driven health care model, scale and unique capabilities to benefit consumers across the health care system, and none of this could be done without the tireless dedication of our colleagues."

ARIVA.DE Börsen-Geflüster

Kurse

CVS Health Corp.

56,14 €

-0,20%

A summary of the Company's response to the COVID-19 pandemic is included on page six.

_______________

The Company presents both GAAP and non-GAAP financial measures in this press release to assist in the comparison of the Company's past financial performance with its current financial performance. See "Non-GAAP Financial Information" on page 12 and endnotes (1) and (2) on page 22 for explanations of non-GAAP financial measures presented in this press release. See pages 13 through 14 and page 21 for reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

Consolidated First Quarter Results

	Three Months Ended March 31,
*In millions, except per share amounts*	2020		2019		Change
Total revenues	$	66,755	$	61,646	$	5,109
Operating income	3,458		2,690		768
Adjusted operating income ⁽¹⁾	4,113		3,595		518
Net income	2,012		1,427		585
Diluted earnings per share	$	1.53	$	1.09	$	0.44
Adjusted EPS ⁽²⁾	$	1.91	$	1.62	$	0.29
Enterprise prescriptions ^{(3) (4)}	699.2		679.8		19.4

Total revenues increased 8.3% for the three months ended March 31, 2020 compared to the prior year primarily driven by strong underlying core growth across all segments. Revenues in the Retail/LTC and Pharmacy Services segments in the three months ended March 31, 2020 also increased as a result of the COVID-19 pandemic, which resulted in greater use of 90-day prescriptions and early refills of maintenance medications, as well as increased front store volume in the Retail/LTC segment.
Operating income increased 28.6% for the three months ended March 31, 2020 compared to the prior year primarily due to the increase in adjusted operating income described below, the absence of the $135 million store rationalization charge recorded in the three months ended March 31, 2019 and a decrease in acquisition-related integration costs of $79 million in the three months ended March 31, 2020 compared to the prior period.
Adjusted operating income increased 14.4% for the three months ended March 31, 2020 compared to the prior year. The increase in adjusted operating income was primarily due to increased volume across all segments, improved purchasing economics in the Pharmacy Services segment and the favorable impact of cost savings initiatives. These increases were partially offset by a decline in operating income in the Health Care Benefits segment, continued reimbursement pressure in the Retail/LTC segment and continued price compression in the Pharmacy Services segment. The COVID-19 pandemic increased adjusted operating income in the three months ended March 31, 2020 due to increased volume in the Retail/LTC segment, as well as reduced benefit costs due to the deferral of elective procedures and other discretionary utilization in the Health Care Benefits segment, partially offset by lower net investment income.
Net income increased 41.0% for the three months ended March 31, 2020 compared to the prior year primarily due to the higher operating income described above and lower interest expense primarily due to lower average debt in the three months ended March 31, 2020, partially offset by higher income tax expense associated with the increase in pre-tax income and the reinstatement of the non-deductible Health Insurer Fee ("HIF") for 2020.
The effective income tax rate was 27.6% for the three months ended March 31, 2020 compared to 26.4% for the three months ended March 31, 2019. The increase in the effective income tax rate was primarily due to the reinstatement of the non-deductible HIF for 2020.

Pharmacy Services Segment

The Pharmacy Services segment provides a full range of pharmacy benefit management solutions to employers, health plans, government employee groups and government sponsored programs. The segment results for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31,
*In millions*	2020		2019		Change
Total revenues	$	34,983	$	33,558	$	1,425
Operating income	1,114		850		264
Adjusted operating income ⁽¹⁾	1,181		947		234
Total pharmacy claims processed ^{(4) (5)}	541.4		481.8		59.6
Pharmacy network ⁽⁶⁾	461.1		407.7		53.4
Mail choice ⁽⁷⁾	80.3		74.1		6.2

Total revenues increased 4.2% for the three months ended March 31, 2020 compared to the prior year primarily due to growth in specialty pharmacy, brand inflation and increased total pharmacy claims volume, including greater use of 90-day prescriptions and early refills of maintenance medications as consumers prepared for the COVID-19 pandemic. The increase was partially offset by previously disclosed client losses, continued price compression and an increased generic dispensing rate.
Total pharmacy claims processed increased 12.4% on a 30-day equivalent basis for the three months ended March 31, 2020 compared to the prior year primarily driven by increased claims under the Company's agreement with IngenioRx, which began in the second quarter of 2019, and greater use of 90-day prescriptions and early refills of maintenance medications as consumers prepared for the COVID-19 pandemic.
Operating income and adjusted operating income increased 31.1% and 24.7%, respectively, for the three months ended March 31, 2020 compared to the prior year primarily driven by growth in specialty pharmacy, improved purchasing economics and an increased generic dispensing rate, partially offset by previously disclosed client losses and continued price compression. The increase in operating income also was driven by lower amortization expense in the three months ended March 31, 2020.

See the supplemental information on page 16 for additional information regarding the performance of the Pharmacy Services segment.

Retail/LTC Segment

The Retail/LTC segment fulfills prescriptions for medications, provides patient care programs, sells a wide assortment of general merchandise, provides health care services through walk-in medical clinics and provides services to long-term care facilities. The segment results for the three months ended March 31, 2020 and 2019 were as follows:

Three Months Ended
March 31,

In millions

2020

2019

Change

Total revenues

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