Skip this ad
Your page will load within   seconds.


CVS Front End Comps Slip In 2013 As Q4 Stumbles

For the year ended December 31, CVS Caremark posted income from continuing operations for the company of $4.6 billion up from $3.9 billion in the 2012 period. Adjusted earnings per share were $4 in fiscal 2013 versus $3.26 in the year earlier, according to the company.

Adjusted earnings per share exclude $494 million in fiscal 2013 and $486 million in fiscal 2012 related to intangible asset amortization associated with acquisition activity, the company reported. The results include a $72 million, or an approximate four cent per share, gain from a legal settlement recognized in the 2013 third quarter and the $348 million, or the approximate 17 cents per share, loss on early extinguishment of debt recognized in the 2012 fourth quarter. Excluding gains from the legal settlement and the loss on early debt extinguishment, adjusted EPS increased 15.7% in 2013 to $3.96, according to CVS. GAAP EPS for the fiscal year was $3.75, including the gain from the legal settlement, versus $3.02 in the fiscal 2012, which includes the early extinguishment of debt loss.

Total revenue in the Retail Pharmacy Segment increased 3.1% in fiscal 2013 to $65.6 billion versus the year earlier, the company asserted. Comparable store sales advanced 1.7%, with pharmacy comps up 2.6% and front end comps, including those from general merchandising including home goods, down 0.5%.

In the fourth quarter, Retail Pharmacy Segment sales increased 5.6% versus the prior-year period. Comps in the quarter gained 4% year over year, with pharmacy comps up 6.8% and front end comps down 1.9%. Softer traffic, which was partially offset by an increase in basket size, drove the comp decline, the company related.

Income from continuing operations attributable to CVS Caremark for the three months ended December 31, 2013, was $1.3 billion, compared with $1.1 billion for quarter a year earlier, the company maintained. Fourth quarter adjusted earnings per share from continuing operations came in at $1.12 in fiscal 2013 and versus $.96 in fiscal 2012.

The company stated that adjusted EPS excludes $124 million of intangible asset amortization related to acquisition activity in the fourth quarter of both 2013 and 2012. GAAP earnings per diluted share were $1.05 versus 90 cents in the prior-year fourth quarter. Both adjusted and GAAP EPS for the 2012 fourth quarter included a $348 million, or 17 cents per share, loss on early extinguishment of debt.

Fourth quarter net revenues increased 4.6% to $32.8 billion year over year, the company stated. For the fiscal year, total revenue increased 3% to $126.8 billion versus the 2012 period.