Walgreen Co. Reports Fiscal 2012 Fourth Quarter an Walgreen Co. Reports Fiscal 2012 Fourth Quarter and Full Year Results
•Company reports adjusted fourth quarter earnings per diluted share of 63 cents, compared with adjusted earnings per diluted share of 66 cents in year-ago quarter; GAAP earnings per diluted share of 39 cents compared with 87 cents in last year's fourth quarter, including impact of Alliance Boots transaction this year and sale of company's pharmacy benefit management business in last year's quarter
•Fiscal 2012 sales total $71.6 billion compared with $72.2 billion in prior year, with adjusted earnings per diluted share of $2.93 compared with $2.93 in previous year; GAAP fiscal year earnings per diluted share total $2.42 compared with $2.94 in previous year
•Company generates record operating and free cash flow of $4.4 billion and $2.9 billion, respectively, in fiscal year 2012, allowing return of more than $1.9 billion to shareholders in share repurchases and dividends
•New fiscal year under way with participation in Express Scripts pharmacy network and launch of Balance™ Rewards loyalty program
DEERFIELD, Ill., Sept. 28, 2012 - Walgreen Co. (NYSE, NASDAQ: WAG) today announced earnings and sales results for the fourth quarter and fiscal year 2012 ended Aug. 31.
Net earnings determined in accordance with generally accepted accounting principles (GAAP) for the fiscal 2012 fourth quarter were $353 million or 39 cents per diluted share, compared with $792 million or 87 cents per diluted share in the year-ago quarter.
Adjusted fiscal 2012 fourth quarter net earnings were $553 million or 63 cents per diluted share, compared with adjusted net earnings of $599 million or 66 cents per diluted share in the year-ago quarter. This year's adjusted fourth quarter results exclude the negative impacts of 9 cents per diluted share related to the company's transaction with Alliance Boots GmbH, 10 cents per diluted share from the quarter's LIFO provision and 5 cents per diluted share in acquisition-related amortization costs. The company intends to account for its 45 percent investment in Alliance Boots using the equity method of accounting on a one-month lag basis. Because the closing of this investment occurred within one month of the company's fiscal year end, the results of operations of Alliance Boots GmbH are not reflected in the company's reported net earnings for the fiscal quarter or year ended Aug. 31, 2012.
Last year's adjusted fourth quarter results exclude an after-tax gain of 30 cents per diluted share associated with the company's sale of its pharmacy benefits management business, Walgreens Health Initiatives, Inc. (WHI), and the negative impacts of 4 cents per diluted share from the quarter's LIFO provision and 5 cents per diluted share in acquisition-related amortization costs.
Compared with the prior year periods, the negative impact of not being part of the Express Scripts, Inc. pharmacy provider network, net of associated cost reductions, was 6 cents per diluted share in this year's fourth quarter and 21 cents per diluted share for the entire fiscal year, which matched the company's previously stated estimate.
"This was a challenging, but very important year for Walgreens, and we finished with a tough quarter. While we controlled costs and generated strong cash flow in the fourth quarter, our performance also reflected a strategic shift in promotional spending, a continued economically challenged consumer, and the impact from Express Scripts," said Walgreens President and CEO Greg Wasson. "Entering the new fiscal year, we believe we are positioned for growth as we benefit from the launch of our Balance Rewards loyalty program, our reentry into the Express Scripts pharmacy provider network and our execution of the Alliance Boots strategic partnership."
Fiscal Year Results
Net earnings determined in accordance with GAAP for fiscal 2012 were $2.1 billion or $2.42 per diluted share. In fiscal year 2011, net earnings in accordance with GAAP were $2.7 billion or $2.94 per diluted share.
Adjusted net earnings for fiscal year 2012 were $2.6 billion or $2.93 per diluted share, compared with $2.7 billion or $2.93 per diluted share in fiscal 2011. Fiscal 2012 adjusted net earnings exclude the negative impacts of 11 cents per diluted share related to the company's transaction with Alliance Boots, 22 cents per diluted share from the year's LIFO provision and 18 cents per diluted share in acquisition-related amortization costs. Fiscal 2011 adjusted net earnings exclude 30 cents per diluted share associated with the gain on the sale of WHI and the negative impacts of 14 cents per diluted share from the year's LIFO provision and 15 cents per diluted share in acquisition-related amortization costs.
https://investor.walgreens.com/releasedetail.cfm?ReleaseID=709987
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