St. Louis, MO – Express Scripts Holding Company (Nasdaq: ESRX) announced 2017 second quarter net income of $801.8 million or $1.37 per diluted share. 2017 second quarter adjusted earnings per diluted share was $1.73.*
“We leverage the power and potential of our independent model to succeed in the areas of healthcare that patients and clients value most,” said Tim Wentworth, President and CEO, Express Scripts. “In just the past quarter, we launched two new ways to deliver more value directly to members at the point of sale, increased our ability to lower drug prices via a new group purchasing organization agreement, acquired a leading workers’ compensation benefits company, and introduced novel SafeGuardRx solutions to address complex, expensive illnesses. These are just a few highlights, but they underline the unique value of our flexibility, innovation and independence: only Express Scripts can partner with anyone in the supply chain at any time to deliver better value to patients, clients and shareholders.”
“We are currently developing a multi-year, enterprise-wide initiative to transform our organization by the end of 2021,” added Eric Slusser, Chief Financial Officer. “We are investing to deliver an improved experience with better engagement and greater efficiency, which will evolve the way we do business with patients, providers and our clients. Based on our work to date, we estimate the initiative will deliver savings of approximately $550 million to $600 million annually by 2021. This initiative will also allow us to continue tackling the challenges plan sponsors face in an increasingly complex healthcare environment with an industry-leading cost position,” said Slusser.
Second Quarter 2017 Results
The following compares second quarter 2017 and 2016 operating results:
- Adjusted claims of 350.0 million, flat – See Table 1
- GAAP net income of $801.8 million, up 11%
- GAAP earnings per diluted share of $1.37, up 21%
- EBITDA of $1,824.1 million, up 1% – See Table 3
- EBITDA per adjusted claim of $5.21, up 1% – See Table 3
- Adjusted net income of $1,011.6 million, up 1% – See Tables 5 and 5A
- Adjusted earnings per diluted share of $1.73, up 10% – See Table 4
- Net cash flow provided by operating activities of $1,081.2 million, up 146%
As expected, revenue and operating income of $52.6 million related to the Anthem contract was realized in the second quarter of 2017 compared to $106.6 million in the second quarter of 2016 due to the structure of the contract. See the table in the full release for 2017 second quarter financial results attributable to Anthem.
The Company increased its guidance for 2017 adjusted earnings per diluted share from a range of $6.90 to $7.04 to a range of $6.95 to $7.05, which represents growth of 10% over 2016 adjusted earnings per diluted share results at the mid-point of the range.
The Company expects total adjusted claims for the third quarter of 2017 to be in the range of 340 million to 350 million. Adjusted earnings per diluted share for the third quarter of 2017 is estimated to be in the range of $1.88 to $1.92, which represents growth of 8% to 10% over the third quarter of 2016.
Additional details on this guidance can be found in Table 6. For a discussion of the financial measures presented herein which are not calculated or presented in accordance with U.S. generally accepted accounting principles (“GAAP”), see “Supplemental Information Regarding Non-GAAP Financial Measures” in the full release.
The complete results release is available: Express Scripts 2017 Second Quarter Results
Source: Express Scripts