{"id":523808,"date":"2021-08-05T06:58:19","date_gmt":"2021-08-05T10:58:19","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/cardinal-health-reports-fourth-quarter-and-full-year-results-for-fiscal-year-2021\/"},"modified":"2021-08-05T06:58:19","modified_gmt":"2021-08-05T10:58:19","slug":"cardinal-health-reports-fourth-quarter-and-full-year-results-for-fiscal-year-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/cardinal-health-reports-fourth-quarter-and-full-year-results-for-fiscal-year-2021\/","title":{"rendered":"Cardinal Health reports fourth quarter and full year results for fiscal year 2021"},"content":{"rendered":"
\n

– Revenue increased 16% to $42.6 billion in the fourth quarter<\/h2>\n

– GAAP(1) operating earnings decreased 40% to $162 million and non-GAAP operating earnings decreased 28% to $320 million in the fourth quarter, due to a COVID-19-related inventory reserve related to certain PPE in the Medical segment<\/h2>\n

– GAAP diluted EPS were $0.40 and non-GAAP diluted EPS were $0.77 for the fourth quarter<\/h2>\n

– Generated operating cash flow of $665 million in the fourth quarter, ending the year with $2.4 billion of operating cash flow<\/h2>\n

– Increasing enterprise cost savings target by an additional $250 million to $750 million by fiscal year 2023<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n DUBLIN, Ohio<\/span>, Aug. 5, 2021<\/span> \/PRNewswire\/ —\u00a0Cardinal Health (NYSE: CAH) today reported that fourth-quarter fiscal 2021 revenue increased 16% to $42.6 billion<\/span>. This increase includes the favorable prior year comparison from reduced pharmaceutical demand related to COVID-19. Fiscal year 2021 revenues were $162.5 billion<\/span>, a 6% increase from fiscal year 2020.<\/p>\n

\n

\n
\n \"Cardinal
\n <\/a>\n <\/p>\n<\/p><\/div>\n

Both GAAP and Non-GAAP operating earnings during the fourth quarter and fiscal year 2021 were adversely impacted by a $197 million<\/span> COVID-19-related inventory reserve related to certain Personal Protective Equipment (PPE) in the Medical segment. Fourth-quarter and full year GAAP diluted earnings per share (EPS) were also negatively impacted by $149 million<\/span> and $1.17 billion<\/span> pre-tax charges, respectively, related to opioid lawsuits brought by states and local governmental entities.<\/p>\n

Fourth-quarter GAAP operating earnings decreased 40% to $162 million<\/span> and GAAP diluted EPS decreased to $0.40<\/span>. Non-GAAP operating earnings decreased 28% to $320 million<\/span> and Non-GAAP diluted EPS decreased 26% to $0.77<\/span> in the quarter. <\/p>\n

Fiscal year 2021 GAAP operating earnings were $472 million<\/span> and non-GAAP operating earnings decreased 5% to $2.3 billion<\/span>. GAAP diluted EPS for fiscal year 2021 were $2.08<\/span>, while non-GAAP diluted EPS were $5.57<\/span>.<\/p>\n

“We’re disappointed with our fourth quarter results. Throughout the past year we have been taking action to drive performance, and we will continue to move forward with urgency,” said Mike Kaufmann<\/span>, CEO of Cardinal Health. “For example, we divested the Cordis business, extended our Red Oak Sourcing agreement with CVS Health, identified $250 million<\/span> of additional cost savings opportunities and made important leadership changes. With the actions we’ve taken to date and our plans for fiscal year 2022, we feel confident in our strategy, and are encouraged by the tailwinds behind our growth areas and strong cash flow generation.”<\/p>\n

\n Q4 and full year FY21 summary<\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Q4 FY21<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Q4 FY20<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Y\/Y<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n \u00a0FY21<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n \u00a0FY20<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Y\/Y<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $42.6 billion<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $36.7 billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 16%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $162.5 billion<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $152.9 billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 6%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating earnings\/(loss)<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $162 million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $270 million<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (40)%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $472 million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $(4.1) billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n N.M<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-GAAP operating earnings<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $320 million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $442 million<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (28)%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $2.3 billion<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $2.4 billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (5)%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net earnings\/(loss) attributable to Cardinal Health, Inc.<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $116 million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $656 million<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n N.M.<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $611 million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $(3.7) billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n N.M.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-GAAP net earnings attributable to Cardinal Health, Inc.<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $227 million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $305 million<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (26)%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $1.6 billion<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.6 billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Effective Tax Rate<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2.6%<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 19.4%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n (89.7)%<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2.1%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Non-GAAP Effective Tax Rate<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 22.6%<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 26.4%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 22.8%<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 25.1 %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Diluted EPS attributable to Cardinal Health, Inc.<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $0.40<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $2.23<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n N.M.<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $2.08<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $(12.61)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n N.M.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-GAAP diluted EPS attributable to Cardinal Health, Inc.<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $0.77<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.04<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (26)%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $5.57<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $5.45<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n COVID-19
<\/b>The COVID-19 pandemic adversely affected fiscal year 2021 results. The company estimates that COVID-19 had a total net negative impact to both GAAP and non-GAAP operating earnings of approximately $300 million<\/span> in fiscal year 2021, or approximately $200 million<\/span> on a year-over-year basis.<\/p>\n

\n Segment results<\/b>\n <\/p>\n

\n
\n Pharmaceutical segment<\/i>
\n <\/b>\n <\/p>\n

\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Q4 FY21<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Q4 FY20<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Y\/Y<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n FY21<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n FY20<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Y\/Y<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 38.3<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n \u00a0billion<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 33.2<\/span>\n <\/p>\n<\/td>\n

\n

\n \u00a0billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 15%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 145.8<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n \u00a0billion<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 137.5<\/span>\n <\/p>\n<\/td>\n

\n

\n \u00a0billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 6%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment profit<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 358<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n \u00a0million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 359<\/span>\n <\/p>\n<\/td>\n

\n

\n \u00a0million<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n \u2014%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 1,684<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n \u00a0million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,753<\/span>\n <\/p>\n<\/td>\n

\n

\n \u00a0million<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (4)%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Fourth-quarter revenue for the Pharmaceutical segment increased 15% to $38.3 billion<\/span> driven primarily by sales growth from large Pharmaceutical Distribution and Specialty Solutions customers. This increase also includes the favorable prior year comparison from reduced pharmaceutical demand related to COVID-19.<\/p>\n

Pharmaceutical segment profit was flat at $358 million<\/span> in the fourth quarter.\u00a0This reflects COVID-19-related volume recovery in the Nuclear and Precision Health Solutions business, offset by the adverse impact of Pharmaceutical Distribution customer contract renewals.<\/p>\n

\n
\n Medical segment<\/i>
\n <\/b>\n <\/p>\n

\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Q4 FY21<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Q4 FY20<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Y\/Y<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n FY21<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n FY20<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Y\/Y<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 4.2<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n \u00a0billion<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.5<\/span>\n <\/p>\n<\/td>\n

\n

\n \u00a0billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 23%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 16.7<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n \u00a0billion<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 15.4<\/span>\n <\/p>\n<\/td>\n

\n

\n \u00a0billion<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 8%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment profit<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n (63)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n \u00a0million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 120<\/span>\n <\/p>\n<\/td>\n

\n

\n \u00a0million<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (153)%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 577<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n \u00a0million<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 663<\/span>\n <\/p>\n<\/td>\n

\n

\n \u00a0million<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (13)%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Fourth-quarter revenue for the Medical segment increased 23% to $4.2 billion<\/span>, driven by a net positive impact from COVID-19 on products and distribution. This increase was primarily due to a recovery in elective procedure volumes and the positive pricing impact of PPE. <\/p>\n

Medical segment loss of $63 million<\/span> in the fourth quarter was due to an adverse impact from COVID-19.\u00a0This was primarily due to an inventory reserve on certain PPE products, partially offset by a recovery in elective procedure volumes. Additionally, benefits from cost savings initiatives were offset by elevated supply chain costs. <\/p>\n

\n Tax rate
<\/b>The GAAP effective tax rates for the fourth quarter of fiscal year 2021, fiscal year 2021 and fiscal year 2020 included net tax benefits related to the treatment of the tax impacts of the opioid litigation charges. Included in the GAAP effective tax rate for fiscal 2021 was a benefit from the net operating loss carryback primarily related to a self-insurance pre-tax loss.<\/p>\n

\n Fiscal year 2022 outlook1\u00a0\u00a0 <\/sup><\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n

\n Non-GAAP earnings per share<\/span>\n <\/p>\n<\/td>\n

\n

\n $5.60 – $5.90<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Interest and other<\/span>\n <\/p>\n<\/td>\n

\n

\n $150M – $180M<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-GAAP effective tax rate<\/span>\n <\/p>\n<\/td>\n

\n

\n 23.5% – 25.5%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Diluted weighted average shares outstanding\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 287M – 292M<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Capital Expenditures<\/span>\n <\/p>\n<\/td>\n

\n

\n $400M – $450M<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Fiscal year 2022 non-GAAP EPS guidance reflects a net tailwind related to COVID-19 of approximately $200 million<\/span> compared to the prior year. Additionally, the company expects incremental investments of approximately $120 million<\/span> in technology enhancements to drive growth and efficiencies, as well as an approximate $80 million<\/span> negative impact to operating earnings due to the Cordis divestiture. Fiscal year 2022 non-GAAP EPS guidance reflects share repurchases in the range of $500 million<\/span> to $1.0 billion<\/span>.<\/p>\n

The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See “Use of Non-GAAP Measures” following the attached schedules for additional explanation.<\/p>\n

\n Recent highlights<\/b>\n <\/p>\n