EX-99.02 3 l16829aexv99w02.htm EX-99.02 EX-99.02
 

Exhibit 99.02
CARDINAL HEALTH, INC. AND SUBSIDIARIES
GAAP / NON-GAAP RECONCILIATION
($ millions)
FOURTH QUARTER FISCAL 2005
                         
    GAAP*           Excluding
    Basis   Special Items   Special Items
REVENUE
                        
- Amount
   $ 19,457       —     $ 19,457  
 
                        
SPECIAL ITEMS
                        
- Restructuring charges
   $ 65     $ 65       —  
- Merger charges
     11       11       —  
- Foundation contribution
     —       —       —  
- Other
   $ 10     $ 10       —  
 
                        
OPERATING EARNINGS
                        
- Amount
   $ 500     $ 86     $ 586  
- Growth rate
     (15 )%             (6 )%
- Ratio to revenue (return on sales)
     2.56 %             3.00 %
 
                        
EARNINGS BEFORE INCOME TAXES
                        
- Amount
   $ 462     $ 86     $ 548  
 
                        
INCOME TAX PROVISION
                        
- Amount
   $ 204     $ 9     $ 213  
 
                        
EARNINGS FROM CONTINUING OPERATIONS
                        
- Amount
   $ 258     $ 76     $ 334  
- Growth rate
     (35 )%             (21 )%
- Ratio to revenue
     1.33 %             1.72 %
- Diluted EPS
   $ 0.59     $ 0.18     $ 0.77  
FISCAL 2005
                         
    GAAP*           Excluding
    Basis   Special Items   Special Items
REVENUE
                        
- Amount
   $ 74,911       —     $ 74,911  
 
                        
SPECIAL ITEMS
                        
- Restructuring charges
   $ 203     $ 203       —  
- Merger charges
     49       49       —  
- Foundation contribution
     —       —       —  
- Other
   $ 12     $ 12       —  
 
                        
OPERATING EARNINGS
                        
- Amount
   $ 1,763     $ 264     $ 2,027  
- Growth rate
     (25 )%             (16 )%
- Ratio to revenue (return on sales)
     2.35 %             2.70 %
 
                        
EARNINGS BEFORE INCOME TAXES
                        
- Amount
   $ 1,629     $ 264     $ 1,893  
 
                        
INCOME TAX PROVISION
                        
- Amount
   $ 582     $ 68     $ 650  
 
                        
EARNINGS FROM CONTINUING OPERATIONS
                        
- Amount
   $ 1,047     $ 196     $ 1,243  
- Growth rate
     (31 )%             (20 )%
- Ratio to revenue
     1.40 %             1.66 %
- Diluted EPS
   $ 2.40     $ 0.45     $ 2.85  

 

 

FOURTH QUARTER FISCAL 2004
                         
    GAAP*           Excluding
    Basis   Special Items   Special Items
REVENUE
                        
- Amount
   $ 16,923       —     $ 16,923  
 
                        
SPECIAL ITEMS
                        
- Restructuring Charges
   $ 12     $ 12       —  
- Merger Charges
     21       21       —  
- Foundation Contribution
     31       31       —  
- Other
     ($25 )     ($25 )     —  
 
                        
OPERATING EARNINGS
                        
- Amount
   $ 587     $ 39     $ 626  
- Growth Rate
     7 %             5 %
- Ratio to Revenue (Return on Sales)
     3.47 %             3.70 %
 
                        
EARNINGS BEFORE INCOME TAXES
                        
- Amount
   $ 559     $ 39     $ 598  
 
                        
INCOME TAX PROVISION
                        
- Amount
   $ 161     $ 13     $ 174  
 
                        
EARNINGS FROM CONTINUING OPERATIONS
                        
- Amount
   $ 397     $ 26     $ 423  
- Growth Rate
     11 %             8 %
- Ratio to Revenue
     2.35 %             2.50 %
- Diluted EPS
   $ 0.91     $ 0.06     $ 0.97  
FISCAL 2004
                         
    GAAP*           Excluding
    Basis   Special Items   Special Items
REVENUE
                        
- Amount
   $ 65,054       —     $ 65,054  
 
                        
SPECIAL ITEMS
                        
- Restructuring charges
   $ 37     $ 37       —  
- Merger charges
     45       45       —  
- Foundation contribution
     31       31       —  
- Other
     ($56 )     ($56 )     —  
 
                        
OPERATING EARNINGS
                        
- Amount
   $ 2,349     $ 57     $ 2,406  
- Growth rate
     7 %             8 %
- Ratio to revenue (return on sales)
     3.61 %             3.70 %
 
                        
EARNINGS BEFORE INCOME TAXES
                        
- Amount
   $ 2,238     $ 57     $ 2,295  
 
                        
INCOME TAX PROVISION
                        
- Amount
   $ 714     $ 22     $ 736  
 
                        
EARNINGS FROM CONTINUING OPERATIONS
                        
- Amount
   $ 1,525     $ 35     $ 1,560  
- Growth rate
     10 %             10 %
- Ratio to revenue
     2.34 %             2.40 %
- Diluted EPS
   $ 3.47     $ 0.08     $ 3.55  

 

 

FREE CASH FLOW
($ millions)
                                 
    Q4 FY05   Q4 FY04   Fiscal 2005   Fiscal 2004
Net cash provided by operating activities
   $ 799     $ 1,289     $ 2,850     $ 2,625  
ADD:
                                
- Proceeds from sale of property and equipment
     2       11       20       19  
LESS:
                                
- Additions to property and equipment
     (283 )     (138 )     (572 )     (410 )
- Dividends on Common Shares
     (13 )     (13 )     (51 )     (52 )
Free Cash Flow
   $ 505     $ 1,149     $ 2,247     $ 2,182  
DEFINITIONS:
 
*   GAAP — Amounts that conform with generally accepted accounting principles.
Return on equity (excluding special items) = (Earnings from continuing operations + special items after tax) /average shareholders’ equity
Note: Average shareholders’ equity used in the return on equity calculation was $8.7 billion and $7.8 billion in the fourth quarter of fiscal 2005 and 2004, respectively, and $8.4 billion and $7.5 billion for year to date of fiscal 2005 and 2004, respectively.
Effective tax rate (excluding special items) = (Income tax provision + tax effect of special items) / (earnings before income taxes + special items)
Growth rate (excluding special items) = (Current quarter earnings excluding special items — prior year quarter earnings excluding special items)/ prior year quarter earnings excluding special items
Ratio to revenue (excluding special items) = Current quarter earnings excluding special items / revenue
Return on invested capital (excluding special items) = [Operating earnings excluding special items annualized x (1-effective tax rate, excluding special items)] / average (equity +debt + unrecorded goodwill)
Note: Average unrecorded goodwill used in return on invested capital calculation was $9.7 billion in fiscal 2005 and fiscal 2004.