EX-99 3 q302-ex.txt UNAUDITED FIN INFO EXHIBIT 99.1 EXPRESS SCRIPTS, INC. UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ----------------------------- --------------------------- 2002 2001 2002 2001 -------------- ------------- ------------ ------------- Revenues $ 3,426,198 $ 2,381,252 $9,577,905 $ 6,719,135 Cost of revenues 3,214,736 2,236,799 8,979,682 6,279,499 ------------ ------------- ----------- ------------- Gross profit (1) 211,462 144,453 598,223 439,636 Selling, general and administrative (1) 112,162 84,222 329,860 266,610 ------------ ------------- ----------- ------------- Operating income 99,300 60,231 268,363 173,026 ------------ ------------- ----------- ------------- Other (expense) income : Undistributed loss from joint venture (1,224) (435) (3,294) (1,093) Interest income 1,391 1,837 3,770 5,521 Interest expense (11,753) (8,417) (31,535) (26,190) ------------ ------------- ----------- ------------- (11,586) (7,015) (31,059) (21,762) ------------ ------------- ----------- ------------- Income before income taxes 87,714 53,216 237,304 151,264 Provision for income taxes 33,777 20,653 90,698 60,378 ------------ ------------- ----------- ------------- Income before extraordinary items 53,937 32,563 146,606 90,886 Extraordinary items, net of taxes (495) (372) (495) (372) ------------ ------------- ----------- ------------- Net income $ 53,442 $ 32,191 $ 146,111 $ 90,514 ============ ============= =========== ============= Basic earnings per share (2): Before extraordinary items $ 0.70 $ 0.41 $ 1.88 $ 1.16 Extraordinary items $ (0.01) $ - $ (0.01) $ - ------------ ------------- ----------- ------------- Net income $ 0.69 $ 0.41 $ 1.87 $ 1.16 ============ ============= =========== ============= Weighted average number of common shares outstanding during the period - basic (2) 77,829 78,382 77,962 77,978 ============ ============= =========== ============= Diluted earnings per share (2): Before extraordinary items $ 0.68 $ 0.40 $ 1.84 $ 1.13 Extraordinary items $ (0.01) $ - $ (0.01) $ - ------------ ------------- ----------- ------------- Net income $ 0.67 $ 0.40 $ 1.83 $ 1.13 ============ ============= =========== ============= Weighted average number of common shares outstanding during the period - diluted (2) 79,449 80,612 79,786 80,156 ============ ============= =========== ============= Reconciliation of prior year under FAS 142 Goodwill amortization, net of tax $ 6,543 $ 19,625 Net income before extraordinary items $ 39,106 $ 110,511 Extraordinary items, net of tax $ (372) $ (372) Net income $ 38,734 $ 110,139 Net income before extraordinary items per share: Basic $ 0.50 $ 1.42 Diluted $ 0.49 $ 1.38 Net income per share: Basic $ 0.49 $ 1.41 Diluted $ 0.48 $ 1.37 EBITDA (3) $ 112,498 $ 80,869 $ 334,836 $ 231,864 ============ ============= =========== ============= SEE NOTES TO UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
EXPRESS SCRIPTS, INC. NOTES TO UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands) General: Certain reclassifications have been made to prior years financial statements to conform with the current quarter's presentation. (1) Includes depreciation and amortization expense of: 3 MONTHS ENDED 9 MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------- --------------------- 2002 2001 2002 2001 --------- ---------- ---------- ---------- Gross Profit $ 5,691 $ 4,506 $ 22,663 $ 11,557 Selling, general and administrative $ 7,507 $ 16,132 $ 43,810 $ 47,281 (2) Earnings per share and weighted average shares outstanding have been restated to reflect the two-for-one stock split effective June 22, 2001. (3) EBITDA is earnings before other income (expense), taxes, depreciation and amortization, or operating income plus depreciation and amortization. EBITDA is presented because it is a widely accepted indicator of a company's ability to incur and service indebtedness. EBITDA, however, should not be considered as an alternative to net income as a measure of operating performance, as an alternative to cash flow or a measure of liquidity. In addition, our calculation of EBITDA may not be identical to that used by other companies. EXPRESS SCRIPTS, INC. UNAUDITED CONSOLIDATED BALANCE SHEET (in thousands) SEPTEMBER 30, DECEMBER 31, 2002 2001 --------------- --------------- ASSETS Current assets Cash and cash equivalents $ 161,598 $ 177,715 Receivables, net 994,787 883,827 Inventories 123,671 122,375 Other current assets 37,460 29,286 --------------- --------------- Total current assets 1,317,516 1,213,203 Property and equipment, net 156,647 165,263 Goodwill, net 1,381,833 942,280 Other intangible assets, net 251,926 165,349 Other assets 16,144 14,150 --------------- --------------- Total assets $ 3,124,066 $ 2,500,245 =============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Claims and rebate payable $ 1,011,136 $ 910,360 Other current liabilities 431,527 335,257 --------------- --------------- Total current liabilities 1,442,663 1,245,617 Long-term debt 620,884 346,119 Other long-term liabilities 89,741 76,512 --------------- --------------- Total liabilities 2,153,288 1,668,248 Total stockholders' equity 970,778 831,997 --------------- --------------- Total liabilities and stockholders' equity $ 3,124,066 $ 2,500,245 =============== =============== EXPRESS SCRIPTS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) 9 MONTHS ENDED SEPTEMBER 30, ----------------------------- 2002 2001 ------------- ------------- Cash flow from operating activities: Net income $ 146,111 $ 90,514 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 66,473 58,838 Other 98,254 18,700 ------------ ------------- Net cash provided by operating activities: 10,838 168,052 ------------ ------------- Cash flows from investing and financing activities: Purchases of property and equipment (32,472) (36,830) Acquisitions and joint venture (521,103) (19,582) Treasury stock acquired (66,840) (27,055) Repayment of long-term debt (150,000) (50,000) Proceeds from long-term debt 425,000 - Other 18,460 17,031 ------------ ------------- Net cash used in investing and financing activities (326,955) (116,436) ------------ ------------- Net (decrease) increase in cash and cash equivalents (16,117) 51,616 Cash and cash equivalents at beginning of period 177,715 53,204 ------------ ------------- Cash and cash equivalents at end of period $ 161,598 $ 104,820 ============ =============