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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
    
FORM 10-Q

(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019
or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to_________

Commission File Number: 001-01011

cvshealtha10.jpg
CVS HEALTH CORPORATION
(Exact name of registrant as specified in its charter)
Delaware

05-0494040
(State or other jurisdiction of incorporation)
 
(IRS Employer Identification No.)
 
One CVS Drive,
Woonsocket,
Rhode Island
 
02895
 (Address of principal executive offices)
 
 (Zip Code)
 
 
 
 
 
Registrant’s telephone number, including area code:     
 
(401)
765-1500
Former name or former address, if changed since last report:
 
N/A
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
CVS
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

There were 1,300,496,722 shares of the registrant’s voting common stock with a par value of $0.01 per share outstanding at July 30, 2019.




TABLE OF CONTENTS
Page
 
 
 
Part I
Financial Information
 
 
 
 
Item 1.
Item 2.
Item 3.
Item 4.
 
 
 
Part II
Other Information
 
 
 
 
Item 1.
Item 1A.
Item 2.
Item 3
Item 4.
Item 5.
Item 6.
 
 
 
 
 



Form 10-Q Table of Contents

Part I.
Financial Information

Item 1.
Financial Statements

Index to Condensed Consolidated Financial Statements

 
 
 
Page
Condensed Consolidated Statements of Operations (Unaudited) for the three and six months ended June 30, 2019 and 2018
 
 
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the three and six months ended June 30, 2019 and 2018
 
 
Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2019 and December 31, 2018
 
 
Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2019 and 2018
 
 
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) for the three months ended June 30, 2019 and 2018 and the three months ended March 31, 2019 and 2018
 
 
Notes to Condensed Consolidated Financial Statements (Unaudited)
 
 
Report of the Independent Registered Public Accounting Firm
 
 



1

Index to Condensed Consolidated Financial Statements

CVS Health Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
In millions, except per share amounts
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
Products
$
45,531

 
$
45,652

 
$
88,874

 
$
89,701

Premiums
15,791

 
751

 
32,073

 
2,057

Services
1,816

 
305

 
3,588

 
643

Net investment income
293

 
214

 
542

 
264

Total revenues
63,431

 
46,922

 
125,077

 
92,665

Operating costs:
 
 
 
 
 
 
 
Cost of products sold
38,970

 
38,876

 
76,217

 
76,381

Benefit costs
13,087

 
631

 
26,546

 
1,960

Goodwill impairment

 
3,921

 

 
3,921

Operating expenses
8,042

 
4,867

 
16,292

 
9,780

Total operating costs
60,099

 
48,295

 
119,055

 
92,042

Operating income (loss)
3,332

 
(1,373
)
 
6,022

 
623

Interest expense
772

 
689

 
1,554

 
1,212

Other expense (income)
(31
)
 
3

 
(62
)
 
6

Income (loss) before income tax provision
2,591

 
(2,065
)
 
4,530

 
(595
)
Income tax provision
660

 
497

 
1,172

 
969

Income (loss) from continuing operations
1,931

 
(2,562
)
 
3,358

 
(1,564
)
Loss from discontinued operations, net of tax

 
(1
)
 

 
(1
)
Net income (loss)
1,931

 
(2,563
)
 
3,358

 
(1,565
)
Net (income) loss attributable to noncontrolling interests
5

 

 
(1
)
 

Net income (loss) attributable to CVS Health
$
1,936

 
$
(2,563
)
 
$
3,357

 
$
(1,565
)
 
 
 
 
 
 
 
 
Basic earnings (loss) per share:
 
 
 
 
 
 
 
Income (loss) from continuing operations attributable to CVS Health
$
1.49

 
$
(2.52
)
 
$
2.58

 
$
(1.54
)
Loss from discontinued operations attributable to CVS Health
$

 
$

 
$

 
$

Net income (loss) attributable to CVS Health
$
1.49

 
$
(2.52
)
 
$
2.58

 
$
(1.54
)
  Weighted average shares outstanding
1,301

 
1,018

 
1,299

 
1,017

Diluted earnings (loss) per share:
 
 
 
 
 
 
 
Income (loss) from continuing operations attributable to CVS Health
$
1.49

 
$
(2.52
)
 
$
2.58

 
$
(1.54
)
Loss from discontinued operations attributable to CVS Health
$

 
$

 
$

 
$

Net income (loss) attributable to CVS Health
$
1.49

 
$
(2.52
)
 
$
2.58

 
$
(1.54
)
  Weighted average shares outstanding
1,302

 
1,018

 
1,302

 
1,017

Dividends declared per share
$
0.50

 
$
0.50

 
$
1.00

 
$
1.00

 
 
 
 
 
 
 
 

See accompanying notes to condensed consolidated financial statements (unaudited).

2

Index to Condensed Consolidated Financial Statements

CVS Health Corporation
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
In millions
2019
 
2018
 
2019
 
2018
Net income (loss)
$
1,931

 
$
(2,563
)
 
$
3,358

 
$
(1,565
)
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Net unrealized investment gains
251

 

 
585

 

Foreign currency translation adjustments
3

 
(27
)
 
4

 
(26
)
Net cash flow hedges
(3
)
 
(4
)
 
(7
)
 
339

Other comprehensive income (loss)
251

 
(31
)
 
582

 
313

Comprehensive income (loss)
2,182

 
(2,594
)
 
3,940

 
(1,252
)
Comprehensive (income) loss attributable to noncontrolling interests
5

 

 
(1
)
 

Comprehensive income (loss) attributable to CVS Health
$
2,187

 
$
(2,594
)
 
$
3,939

 
$
(1,252
)
 
 
 
 
 
 
 
 

See accompanying notes to condensed consolidated financial statements (unaudited).

3

Index to Condensed Consolidated Financial Statements

CVS Health Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
In millions, except per share amounts
June 30,
2019
 
December 31,
2018
Assets:
 
 
 
Cash and cash equivalents
$
6,063

 
$
4,059

Investments
2,462

 
2,522

Accounts receivable, net
18,174

 
17,631

Inventories
15,511

 
16,450

Other current assets
4,691

 
4,581

Total current assets
46,901

 
45,243

Long-term investments
16,973

 
15,732

Property and equipment, net
11,483

 
11,349

Operating lease right-of-use assets
20,865

 

Goodwill
79,485

 
78,678

Intangible assets, net
34,163

 
36,524

Separate accounts assets
4,271

 
3,884

Other assets
4,763

 
5,046

Total assets
$
218,904

 
$
196,456

 
 
 
 
Liabilities:
 
 
 
Accounts payable
$
9,160

 
$
8,925

Pharmacy claims and discounts payable
11,937

 
11,365

Health care costs payable
6,889

 
6,147

Policyholders’ funds
2,907

 
2,939

Accrued expenses
10,562

 
10,711

Other insurance liabilities
1,788

 
1,937

Current portion of operating lease liabilities
1,793

 

Short-term debt
446

 
720

Current portion of long-term debt
3,894

 
1,265

Total current liabilities
49,376

 
44,009

Long-term operating lease liabilities
18,849

 

Long-term debt
66,941

 
71,444

Deferred income taxes
7,375

 
7,677

Separate accounts liabilities
4,271

 
3,884

Other long-term insurance liabilities
7,965

 
8,119

Other long-term liabilities
2,528

 
2,780

Total liabilities
157,305

 
137,913

 
 
 
 
Shareholders’ equity:
 
 
 
Preferred stock, par value $0.01: 0.1 shares authorized; none issued or outstanding

 

Common stock, par value $0.01: 3,200 shares authorized; 1,724 shares issued and 1,299 shares outstanding at June 30, 2019 and 1,720 shares issued and 1,295 shares outstanding at December 31, 2018 and capital surplus
45,719

 
45,440

Treasury stock, at cost: 425 shares at June 30, 2019 and December 31, 2018
(28,257
)
 
(28,228
)
Retained earnings
43,136

 
40,911

Accumulated other comprehensive income
684

 
102

Total CVS Health shareholders’ equity
61,282

 
58,225

Noncontrolling interests
317

 
318

Total shareholders’ equity
61,599

 
58,543

Total liabilities and shareholders’ equity
$
218,904

 
$
196,456

 
 
 
 


See accompanying notes to condensed consolidated financial statements (unaudited).

4

Index to Condensed Consolidated Financial Statements

CVS Health Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
Six Months Ended
June 30,
In millions
2019
 
2018
Cash flows from operating activities:
 
 
 
Cash receipts from customers
$
120,808

 
$
87,977

Cash paid for inventory and prescriptions dispensed by retail network pharmacies
(70,567
)
 
(70,763
)
Insurance benefits paid
(25,992
)
 
(1,737
)
Cash paid to other suppliers and employees
(14,497
)
 
(8,471
)
Interest and investment income received
512

 
194

Interest paid
(1,502
)
 
(560
)
Income taxes paid
(1,476
)
 
(1,351
)
Net cash provided by operating activities
7,286

 
5,289

 
 
 
 
Cash flows from investing activities:
 
 
 
Proceeds from sales and maturities of investments
3,786

 
37

Purchases of investments
(4,062
)
 
(53
)
Purchases of property and equipment
(1,289
)
 
(912
)
Acquisitions (net of cash acquired)
(250
)
 
(556
)
Proceeds from sale of subsidiary

 
725

Other
14

 
7

Net cash used in investing activities
(1,801
)
 
(752
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Net repayments of short-term debt
(275
)
 
(1,276
)
Proceeds from issuance of long-term debt

 
39,376

Repayments of long-term debt
(1,899
)
 
(1
)
Derivative settlements

 
446

Dividends paid
(1,306
)
 
(1,018
)
Proceeds from exercise of stock options
111

 
130

Payments for taxes related to net share settlement of equity awards
(80
)
 
(37
)
Other
7

 

Net cash provided by (used in) financing activities
(3,442
)
 
37,620

Net increase in cash, cash equivalents and restricted cash
2,043

 
42,157

Cash, cash equivalents and restricted cash at the beginning of the period
4,295

 
1,900

Cash, cash equivalents and restricted cash at the end of the period
$
6,338

 
$
44,057

 
 
 
 


5

Index to Condensed Consolidated Financial Statements

CVS Health Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
 
 
 
 
Six Months Ended
June 30,
In millions
2019
 
2018
Reconciliation of net income (loss) to net cash provided by operating activities:
 
 
 
Net income (loss)
$
3,358

 
$
(1,565
)
Adjustments required to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Depreciation and amortization
2,183

 
1,291

Goodwill impairment

 
3,921

Stock-based compensation
226

 
110

Deferred income taxes and other noncash items
(42
)
 
252

Change in operating assets and liabilities, net of effects from acquisitions:
 
 
 
Accounts receivable, net
(681
)
 
(1,059
)
Inventories
939

 
369

Other assets
(314
)
 
(174
)
Accounts payable and pharmacy claims and discounts payable
917

 
1,045

Health care costs payable and other insurance liabilities
496

 
224

Other liabilities
204

 
875

Net cash provided by operating activities
$
7,286

 
$
5,289

 
 
 
 

See accompanying notes to condensed consolidated financial statements (unaudited).


6

Index to Condensed Consolidated Financial Statements

CVS Health Corporation
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
 
 
 
Attributable to CVS Health
 
 
 
Number of shares outstanding
 
Common
 
 
Accumulated
Total
 
 
 
 
Stock and
 
 
Other
CVS Health
 
Total
 
Common
Treasury
 
Capital
Treasury
Retained
Comprehensive
Shareholders’
Noncontrolling
Shareholders’
In millions
Shares
Shares (1)
 
Surplus (2)
Stock (1)
Earnings
Income (Loss)
Equity
Interests
Equity
Balance at December 31, 2018
1,720

(425
)
 
$
45,440

$
(28,228
)
$
40,911

$
102

$
58,225

$
318

$
58,543

Adoption of new accounting standard (Note 1)


 


178


178


178

Net income


 


1,421


1,421

6

1,427

Other comprehensive income


 



331

331


331

Stock option activity, stock awards and other
2


 
175




175


175

Purchase of treasury shares, net of ESPP issuances

1

 

7



7


7

Common stock dividends


 


(651
)

(651
)

(651
)
Other decreases in noncontrolling interests


 





(4
)
(4
)
Balance at March 31, 2019
1,722

(424
)
 
45,615

(28,221
)
41,859

433

59,686

320

60,006

Net income (loss)


 


1,936


1,936

(5
)
1,931

Other comprehensive income (Note 8)


 



251

251


251

Stock option activity, stock awards and other
2


 
104




104


104

Purchase of treasury shares, net of ESPP issuances

(1
)
 

(36
)


(36
)

(36
)
Common stock dividends


 


(659
)

(659
)

(659
)
Other increases in noncontrolling interests


 





2

2

Balance at June 30, 2019
1,724

(425
)
 
$
45,719

$
(28,257
)
$
43,136

$
684

$
61,282

$
317

$
61,599

 
 
 
 
 
 
 
 
 
 
 
_____________________________________________ 
(1)
Treasury shares include 1 million shares held in trust as of June 30, 2019, March 31, 2019 and December 31, 2018. Treasury stock includes $29 million related to shares held in trust as of June 30, 2019, March 31, 2019 and December 31, 2018.
(2)
Common stock and capital surplus includes the par value of common stock of $17 million as of June 30, 2019, March 31, 2019 and December 31, 2018.





















7

Index to Condensed Consolidated Financial Statements

CVS Health Corporation
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
 
 
 
Attributable to CVS Health
 
 
 
Number of shares outstanding
 
Common
 
 
Accumulated
Total
 
 
 
 
Stock and
 
 
Other
CVS Health
 
Total
 
Common
Treasury
 
Capital
Treasury
Retained
Comprehensive
Shareholders’
Noncontrolling
Shareholders’
In millions
Shares
Shares (1)
 
Surplus (2)
Stock (1)
Earnings
Income (Loss)
Equity
Interests
Equity
Balance at December 31, 2017
1,712

(698
)
 
$
32,096

$
(37,796
)
$
43,556

$
(165
)
$
37,691

$
4

$
37,695

Adoption of new accounting standards (3)


 


(6
)
(7
)
(13
)

(13
)
Net income


 


998


998


998

Other comprehensive income


 



344

344


344

Stock option activity, stock awards and other
2


 
112




112


112

Purchase of treasury shares, net of ESPP issuances


 

49



49


49

Common stock dividends


 


(508
)

(508
)

(508
)
Balance at March 31, 2018
1,714

(698
)
 
32,208

(37,747
)
44,040

172

38,673

4

38,677

Net loss


 


(2,563
)

(2,563
)

(2,563
)
Other comprehensive income (loss) (Note 8)


 



(31
)
(31
)

(31
)
Stock option activity, stock awards and other
2


 
73




73


73

Purchase of treasury shares, net of ESPP issuances

(1
)
 

(33
)


(33
)

(33
)
Common stock dividends


 


(512
)

(512
)

(512
)
Balance at June 30, 2018
1,716

(699
)
 
$
32,281

$
(37,780
)
$
40,965

$
141

$
35,607

$
4

$
35,611

 
 
 
 
 
 
 
 
 
 
 
_____________________________________________ 
(1)
Treasury shares include 1 million shares held in trust as of June 30, 2018, March 31, 2018 and December 31, 2017. Treasury stock includes $31 million related to shares held in trust as of June 30, 2018, March 31, 2018 and December 31, 2017.
(2)
Common stock and capital surplus includes the par value of common stock of $17 million as of June 30, 2018, March 31, 2018 and December 31, 2017.
(3)
Reflects the adoption of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which resulted in a reduction to retained earnings of $13 million and the adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which resulted in a reduction to accumulated other comprehensive income and an increase to retained earnings of $7 million.


See accompanying notes to condensed consolidated financial statements (unaudited).


8

Index to Condensed Consolidated Financial Statements

Notes to Condensed Consolidated Financial Statements

1.
Significant Accounting Policies

Description of business 

CVS Health Corporation, together with its subsidiaries (collectively, “CVS Health,” the “Company,” “we,” “our” or “us”), is the nation’s premier health innovation company helping people on their path to better health. Whether in one of its pharmacies or through its health services and plans, CVS Health is pioneering a bold new approach to total health by making quality care more affordable, accessible, simple and seamless. CVS Health is community-based and locally focused, engaging consumers with the care they need when and where they need it. The Company has approximately 9,900 retail locations, approximately 1,100 walk-in medical clinics, a leading pharmacy benefits manager with more than 102 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year and expanding specialty pharmacy services. CVS Health also serves an estimated 38 million people through traditional, voluntary and consumer-directed health insurance products and related services, including rapidly expanding Medicare Advantage offerings and a leading standalone Medicare Part D prescription drug plan (“PDP”). The Company believes its innovative health care model increases access to quality care, delivers better health outcomes and lowers overall health care costs.

On November 28, 2018 (the “Aetna Acquisition Date”), the Company acquired Aetna Inc. (“Aetna”). As a result of the acquisition of Aetna (the “Aetna Acquisition”), the Company added the Health Care Benefits segment. Certain aspects of Aetna’s operations, including products for which the Company no longer solicits or accepts new customers, such as large case pensions and long-term care insurance products, are included in the Company’s Corporate/Other segment.

Effective for the first quarter of 2019, the Company realigned the composition of its segments to correspond with changes to its operating model and reflect how its Chief Operating Decision Maker (the “CODM”) reviews information and manages the business. As a result of this realignment, the Company’s SilverScript® PDP moved from the Pharmacy Services segment to the Health Care Benefits segment. In addition, the Company moved Aetna’s mail order and specialty pharmacy operations from the Health Care Benefits segment to the Pharmacy Services segment. Segment financial information for the three and six months ended June 30, 2018, has been retrospectively adjusted to reflect these changes.

The Company has four reportable segments: Pharmacy Services, Retail/LTC, Health Care Benefits and Corporate/Other, which are described below.

Pharmacy Services Segment
The Pharmacy Services segment provides a full range of pharmacy benefit management (“PBM”) solutions, including plan design offerings and administration, formulary management, retail pharmacy network management services, mail order pharmacy, specialty pharmacy and infusion services, clinical services, disease management services and medical spend management. The Pharmacy Services segment’s clients are primarily employers, insurance companies, unions, government employee groups, health plans, PDPs, Medicaid managed care plans, plans offered on public health insurance exchanges (“Public Exchanges”) and private health insurance exchanges, other sponsors of health benefit plans and individuals throughout the United States. The Pharmacy Services segment operates retail specialty pharmacy stores, specialty mail order pharmacies, mail order dispensing pharmacies, compounding pharmacies and branches for infusion and enteral nutrition services.

Retail/LTC Segment
The Retail/LTC segment sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products, cosmetics and personal care products, provides health care services through its MinuteClinic® walk-in medical clinics and conducts long-term care (“LTC”) pharmacy operations, which distribute prescription drugs and provide related pharmacy consulting and other ancillary services to chronic care facilities and other care settings. As of June 30, 2019, the Retail/LTC segment operated approximately 9,900 retail locations, approximately 1,100 MinuteClinic® locations as well as online retail pharmacy websites, LTC pharmacies and onsite pharmacies.

Health Care Benefits Segment
The Health Care Benefits segment is one of the nation’s leading diversified health care benefits providers, serving an estimated 38 million people as of June 30, 2019. The Health Care Benefits segment has the information and resources to help members, in consultation with their health care professionals, make more informed decisions about their health care. The Health Care Benefits segment offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, medical management capabilities, Medicare Advantage and Medicare Supplement plans, PDPs, Medicaid health care management services, workers’ compensation administrative services

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and health information technology products and services. The Health Care Benefits segment’s customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers (“providers”), governmental units, government-sponsored plans, labor groups and expatriates. The Company refers to insurance products (where it assumes all or a majority of the risk for medical and dental care costs) as “Insured” and administrative services contract products (where the plan sponsor assumes all or a majority of the risk for medical and dental care costs) as “ASC.”

Corporate/Other Segment
The Company presents the remainder of its financial results in the Corporate/Other segment, which consists of:

Management and administrative expenses to support the overall operations of the Company, which include certain aspects of executive management and the corporate relations, legal, compliance, human resources, information technology and finance departments and acquisition-related transaction and integration costs; and
Products for which the Company no longer solicits or accepts new customers such as its large case pensions and long-term care insurance products.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of CVS Health Corporation and its subsidiaries have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. In accordance with such rules and regulations, certain information and accompanying note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted, although the Company believes the disclosures included herein are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, which are included in Exhibit 13.1 to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018 (the “2018 Form 10‑K”).
 
In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. Because of the influence of various factors on the Company’s operations, including business combinations, certain holidays and other seasonal influences, net income for any interim period may not be comparable to the same interim period in previous years or necessarily indicative of income for the full year.