EX-99 4 fin-q18k02.txt FINANCIALS EXHIBIT 99.2 EXPRESS SCRIPTS, INC. Table 1 Unaudited Operating Statistics (in thousands, except per claim)
3 MONTHS 3 MONTHS 3 MONTHS 3 MONTHS 3 MONTHS ENDED ENDED ENDED ENDED ENDED 03/31/2002 12/31/2001 09/30/2001 06/30/2001 03/31/2001 ---------- ---------- ---------- ---------- ---------- DRUG SPENDING Drug spend - PBM $ 4,693,670 $ 4,486,130 $ 3,914,546 $ 3,856,119 $ 3,652,074 Specialty Dist. (SDS) 290,081 251,746 183,299 172,918 166,692 ------------ ------------ ------------ ------------ ----------- Total $ 4,983,751 $ 4,737,876 $ 4,097,845 $ 4,029,037 $ 3,818,766 ============ ============ ============ ============ =========== REVENUE DETAIL PBM revenues (1) $ 2,722,559 $ 2,590,515 $ 2,367,019 $ 2,228,852 $ 2,068,128 (2) Non-PBM revenues 26,510 19,132 14,233 18,491 22,412 ------------ ------------ ------------ ------------ ----------- Total revenues $ 2,749,069 $ 2,609,647 $ 2,381,252 $ 2,247,343 $ 2,090,540 ============ ============ ============ ============ =========== PER CLAIM Network revenue/claim $ 23.95 $ 23.40 $ 24 $ 22.46 $ 20.70 Mail revenue/claim $ 130.91 $ 123.75 $ 122.37 $ 126.06 $ 124.65 CLAIMS DETAIL Network 80,112 79,967 70,373 71,311 72,345 SDS 666 581 500 436 371 Mail 6,039 5,714 5,404 4,879 4,496 ------------ ------------ ------------ ------------ ----------- Total claims 86,817 86,262 76,277 76,626 77,212 ============ ============ ============ ============ =========== Adjusted claims (3) 98,895 97,690 87,085 86,384 86,204 ============ ============ ============ ============ =========== MARGIN ANALYSIS Gross profit margin (5) 5.8% 6.0% 6.1% 6.7% 6.9% (4) EBITDA margin (5) 3.4% 3.3% 3.4% 3.4% 3.5% (4) PER ADJUSTED CLAIM Drug spend $ 50.39 $ 48.50 $ 47.06 $ 46.64 $ 44.30 Gross profit (5) $ 1.62 $ 1.60 $ 1.66 $ 1.74 $ 1.68 EBITDA (5) $ 0.94 $ 0.87 $ 0.93 $ 0.89 $ 0.86 SEE NOTES TO UNAUDITED OPERATING STATISTICS SELECTED RATIO ANALYSIS TABLE 2 AS OF AS OF AS OF AS OF AS OF 03/31/2002 12/31/2001 09/30/2001 06/30/2000 03/31/2001 ---------- ---------- ---------- ---------- ---------- Debt to EBITDA ratio (5) 1.0x 1.1x 1.1x 1.4x 1.4x Interest coverage ratio 10.2x 9.3x 8.4x 7.5x 6.6x Debt to enterprise value 7.2% 8.7% 7.4% 8.4% 10.5% Debt to capitalization 28.3% 29.4% 29.8% 33.3% 34.5%
EXPRESS SCRIPTS, INC. Notes UNAUDITED OPERATING STATISTICS (excludes non-recurring items) General: Certain reclassifications have been made to prior years and prior quarter's financial statements to conform with the current quarter's presentation (1) Our PBM revenues generally include administrative fees, dispensing fees and ingredient costs of pharmaceuticals dispensed from retail pharmacies included in one of our networks or from one of our mail pharmacies, and the associated costs are recorded in cost of revenues (the Gross Basis). Where we only administer the contracts between our clients and the clients' retail pharmacy networks we record as revenues only the administrative fee we received from our activities (the Net Basis). (2) This increase primarily reflects the transfer of clients to pharmacy networks managed by us (Gross Basis -- see footnote 1); higher utilization and drug costs; and new membership. (3) Adjusted claims represent network claims plus mail claims, which are multiplied by 3, as mail claims are typically 90 day scripts and network claims are generally 30 day scripts. (4) Margin analysis is not indicative of profitability -- margins are greatly impacted by the transfer of clients to pharmacy networks managed by us (Gross Basis) from the clients' network (Net Basis). When we process claims for a client's pharmacy network, all we record as revenue is an administrative fee (Net Basis). When a client is transferred to one of our networks, we charge the administrative fee and a fee for managing the pharmacy network. In addition, we gross up revenues and cost of revenues to include the ingredient cost (Gross Basis). Thus, while the margin percentage appears to decline because revenues are grossed up for the ingredient cost, our actual profit per claim and net income improves due to the fee we receive for managing the pharmacy network. (5) Excludes non-recurring items in the first quarter of 2002.