December 5, 2017

Express Scripts Reports Third Quarter 2013 Results

St. Louis, MO – Express Scripts Holding Company (Nasdaq: ESRX) recently announced 2013 third quarter net income from continuing operations attributable to Express Scripts shareholders of $442.2 million, or $0.54 per diluted share. Adjusted earnings per diluted share from continuing operations attributable to Express Scripts, were $1.08 for the third quarter. The quarter reflects a reduction in the income tax rate to adjust the full year rate to 38.5%, which resulted in a $0.01 increase in diluted earnings per share.

“We continue to be positive on the long-term outlook for our industry and our Company,” stated George Paz, chairman and chief executive officer. “As the healthcare landscape continues to evolve, we are well-positioned to help clients and members successfully navigate a rapidly-changing environment full of new rules and regulations. Our breadth of client solutions across traditional pharmacy benefit management, specialty management, and Medicare Part D is unparalleled in the industry.”

Third Quarter 2013 Review

  • Adjusted claims from continuing operations of 358.1 million, down 9% from the third quarter of 2012, including the expected roll-off of claims from UnitedHealth Group
  • Adjusted EBITDA from continuing operations attributable to Express Scripts of $1.7 billion, up 3% from the third quarter of 2012
  • Adjusted EBITDA from continuing operations attributable to Express Scripts per adjusted claim of $4.63, up 13% from the third quarter of 2012
  • Interest income includes a contractual interest payment received from a client for $24.9 million that is excluded from adjusted earnings per diluted share
  • Adjusted effective income tax rate for continuing operations attributable to Express Scripts for the quarter of 37.9%, with the full year adjusted effective income tax rate for continuing operations attributable to Express Scripts expected to be approximately 38.5%
  • Net cash flow provided by operating activities from continuing operations was $1.0 billion for the quarter, up 31% from the third quarter of 2012
  • Repurchase of 11.6 million shares of common stock for $751.5 million during the quarter, leaving 51.3 million shares available under the current share repurchase program

2013 Guidance
The Company previously provided 2013 guidance on adjusted earnings per diluted share from continuing operations attributable to Express Scripts in the range of $4.26 to $4.34, or growth of 14% to 16% over 2012. Based on the Company’s performance and reduced tax rate, the Company is raising the low end of the range by $0.04. As such, the Company now anticipates achieving adjusted earnings per diluted share from continuing operations attributable to Express Scripts for 2013 in the range of $4.30 to $4.34, or 15% to 16% growth over 2012.

Due to delays in certain non-client integration activities, including the migration of all Medco’s legacy payment cycles to Express Scripts’ cycles, the Company has adjusted its 2013 cash flow guidance range to $4.0 billion to $4.5 billion from the previous range of $4.5 billion to $5.0 billion.

Adjusted earnings per diluted share from continuing operations attributable to Express Scripts for the fourth quarter is expected to be between $1.09 and $1.13.

The complete earnings release and tables are available here: Express Scripts Third Quarter 2013 Results

Source: Express Scripts

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