-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 /CNW/ - 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 December 31, 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 11th 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
December 31, 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
-
EBITDA1 of $660 to $670 million
-
GAAP EPS (fully-diluted) of $1.18 to $1.25
-
Adjusted EPS1 (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, February 28, 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 31,
|
|
Years Ended December 31,
|
(in thousands)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(unaudited)
|
|
(unaudited)
|
Net income attributable to the Company (GAAP)
|
$
|
42,529
|
|
$
|
26,684
|
|
$
|
116,658
|
|
$
|
91,786
|
Add:
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
59,407
|
|
5,260
|
|
130,116
|
|
16,385
|
|
Depreciation of property and equipment
|
7,288
|
|
2,676
|
|
20,234
|
|
9,492
|
|
Interest and other expense, net
|
11,619
|
|
302
|
|
26,682
|
|
2,277
|
|
Income tax expense
|
26,008
|
|
13,418
|
|
69,316
|
|
46,508
|
|
Adjustments related to non-controlling interests
|
(260)
|
|
—
|
|
(276)
|
|
—
|
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
|
|
Operational
Results
|
|
Per
Diluted
Share
|
|
Operational
Results
|
|
Per
Diluted
Share
|
|
Operational
Results
|
|
Per
Diluted
Share
|
|
Operational
Results
|
|
Per
Diluted
Share
|
|
(unaudited)
|
|
(unaudited)
|
Net income attributable to the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company (GAAP)
|
$
|
42,529
|
|
$
|
0.21
|
|
$
|
26,684
|
|
$
|
0.21
|
|
$
|
116,658
|
|
$
|
0.70
|
|
$
|
91,786
|
|
$
|
0.73
|
Amortization of intangible assets
|
59,407
|
|
0.28
|
|
5,260
|
|
0.04
|
|
130,116
|
|
0.77
|
|
16,385
|
|
0.13
|
Tax effect of reconciling item
|
(20,911)
|
|
(0.10)
|
|
(1,762)
|
|
(0.01)
|
|
(47,362)
|
|
(0.28)
|
|
(5,505)
|
|
(0.04)
|
Non-GAAP net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to the Company
|
$
|
81,025
|
|
$
|
0.39
|
|
$
|
30,182
|
|
$
|
0.24
|
|
$
|
199,412
|
|
$
|
1.19
|
|
$
|
102,666
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
December 31,
|
|
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 accounts of $7,899
(2011 - $2,725)
|
725,809
|
|
240,425
|
|
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 depreciation of $64,048 (2011
- $43,304)
|
105,201
|
|
21,658
|
Goodwill
|
4,478,038
|
|
291,045
|
Other intangible assets, net of accumulated amortization of $178,188
(2011 - $48,072)
|
1,198,991
|
|
69,777
|
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;
205,399,102 shares issued and outstanding at
|
|
|
|
|
|
December 31, 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
December 31,
|
|
Years Ended
December 31,
|
|
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 administrative
|
114,400
|
|
41,721
|
|
369,492
|
|
145,788
|
|
Depreciation of property and equipment
|
6,196
|
|
1,981
|
|
16,749
|
|
6,744
|
|
Amortization of intangible assets
|
59,407
|
|
5,260
|
|
130,116
|
|
16,385
|
|
180,003
|
|
48,962
|
|
516,357
|
|
168,917
|
Operating income
|
85,589
|
|
40,404
|
|
217,019
|
|
140,571
|
Interest and other expense, net
|
11,619
|
|
302
|
|
26,682
|
|
2,277
|
Income before income taxes
|
73,970
|
|
40,102
|
|
190,337
|
|
138,294
|
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 attributable to non-controlling interest
|
5,433
|
|
—
|
|
4,363
|
|
—
|
Net income attributable to the Company
|
$
|
42,529
|
|
$
|
26,684
|
|
$
|
116,658
|
|
$
|
91,786
|
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
December 31,
|
|
Years Ended
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 compensation
|
4,506
|
|
2,938
|
|
17,667
|
|
9,445
|
|
Depreciation of property and equipment
|
7,288
|
|
2,676
|
|
20,234
|
|
9,492
|
|
Amortization of intangible assets
|
59,407
|
|
5,260
|
|
130,116
|
|
16,385
|
|
Deferred lease inducements and rent
|
1,727
|
|
1,156
|
|
3,136
|
|
759
|
|
Deferred income taxes
|
(19,229)
|
|
(4,398)
|
|
(37,925)
|
|
(5,894)
|
|
Tax benefit on option exercises
|
(2,183)
|
|
(1,482)
|
|
(19,397)
|
|
(10,804)
|
|
Deferred financing cost amortization
|
2,493
|
|
—
|
|
4,985
|
|
—
|
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 liabilities
|
1,512
|
|
(9,501)
|
|
(36,005)
|
|
(10,806)
|
|
Pharmacy benefit management rebates payable
|
50,593
|
|
(715)
|
|
60,929
|
|
(6,019)
|
|
Other
|
1,882
|
|
269
|
|
6,825
|
|
(1,200)
|
|
|
Net cash provided by operating activities
|
102,254
|
|
10,160
|
|
249,733
|
|
94,668
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Acquisitions, net of cash acquired
|
(1,320)
|
|
(67,641)
|
|
(1,565,705)
|
|
(79,825)
|
|
Purchases of property and equipment
|
(27,334)
|
|
(6,615)
|
|
(40,236)
|
|
(9,690)
|
|
|
Net cash used in investing activities
|
(28,654)
|
|
(74,256)
|
|
(1,605,941)
|
|
(89,515)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance of debt
|
5,000
|
|
—
|
|
1,475,448
|
|
—
|
|
Proceeds from public offering, net of issuance costs
|
—
|
|
—
|
|
519,075
|
|
—
|
|
Repayment of long-term debt
|
(105,000)
|
|
—
|
|
(616,993)
|
|
—
|
|
Proceeds from exercise of options
|
2,025
|
|
456
|
|
7,763
|
|
5,735
|
|
Tax benefit on option exercises
|
2,183
|
|
1,482
|
|
19,397
|
|
10,804
|
|
Payment of financing costs
|
—
|
|
(1,595)
|
|
(18,806)
|
|
(1,595)
|
|
Other
|
(6)
|
|
—
|
|
(268)
|
|
—
|
|
|
Net cash provided by (used in) financing activities
|
(95,798)
|
|
343
|
|
1,385,616
|
|
14,944
|
Effect of foreign exchange on cash balances
|
(58)
|
|
24
|
|
(14)
|
|
1
|
(Decrease) increase in cash and cash equivalents
|
(22,256)
|
|
(63,729)
|
|
29,394
|
|
20,098
|
Cash and cash equivalents, beginning of period
|
393,032
|
|
405,111
|
|
341,382
|
|
321,284
|
Cash and cash equivalents, end of period
|
$ 370,776
|
|
$ 341,382
|
|
$ 370,776
|
|
$ 341,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE: Catamaran