EX-99 2 q1-04financials.htm FINANCIALS

Exhibit 99.1



EXPRESS SCRIPTS, INC.
Unaudited Consolidated Statement of Operations

Three Months Ended
March 31,
(in thousands, except share data) 2004 2003

Revenues 1		     $ 3,627,815   $ 3,223,981  
Cost of revenues 1    3,406,028    3,014,368  
   Gross profit    221,787    209,613  
Selling, general and administrative    95,244    101,786  
Operating income    126,543    107,827  
Other (expense) income:  
   Undistributed loss from joint venture    (1,340 )  (1,539 )
   Interest income    824    868  
   Interest expense    (12,710 )  (10,702 )
     (13,226 )  (11,373 )
Income before income taxes    113,317    96,454  
Provision for income taxes    43,354    36,805  
Income before cumulative effect of accounting change    69,963    59,649  
Cumulative effect of accounting change, net of tax    -    (1,028 )
Net income   $ 69,963   $ 58,621  
Basic earnings per share:  
   Before cumulative effect of accounting change   $ 0.90   $ 0.77  
   Cumulative effect of accounting change    -    (0.01 )
   Net income   $ 0.90   $ 0.76  
Weighted average number of common shares  
   outstanding during the period - Basic EPS    77,333    77,547  
Diluted earnings per share:  
   Before cumulative effect of accounting change   $ 0.89   $ 0.75  
   Cumulative effect of accounting change    -    (0.01 )
   Net income   $ 0.89   $ 0.74  
Weighted average number of common shares  
   outstanding during the period - Diluted EPS    78,571    79,075  
1 Excludes estimated retail pharmacy co-payments of $1,400,225 and $1,333,683, respectively. These are amounts we instructed retail pharmacies to collect from members. We have no information regarding actual co-payments collected.

EXPRESS SCRIPTS, INC.
Unaudited Consolidated Balance Sheet

(in thousands, except share data) March 31,
2004 		December 31,
2003
Assets            
Current assets:  
   Cash and cash equivalents   $ 300,857   $ 396,040  
   Receivables, net    1,092,043    1,011,154  
   Inventories    128,603    116,375  
   Deferred taxes    17,156    15,346  
   Prepaid expenses and other current assets    23,287    21,220  
        Total current assets    1,561,946    1,560,135  
Property and equipment, net    177,783    177,312  
Goodwill, net    1,699,010    1,421,493  
Other intangible assets, net    259,056    232,059  
Other assets    21,847    18,175  
        Total assets   $ 3,719,642   $ 3,409,174  
Liabilities and Stockholders' Equity  
Current liabilities:  
   Claims and rebates payable   $ 1,224,384   $ 1,178,321  
   Accounts payable    253,999    232,290  
   Accrued expenses    216,549    215,797  
   Current maturities of long-term debt    22,084    -  
        Total current liabilities    1,717,016    1,626,408  
Long-term debt    582,947    455,018  
Other liabilities    141,422    133,755  
        Total liabilities    2,441,385    2,215,181  
Stockholders' equity:  
   Preferred stock, $0.01 par value per share, 5,000,000 shares authorized,  
      and no shares issued and outstanding    -    -  
   Common Stock, $0.01 par value per share, 181,000,000 shares  
      authorized, and 79,786,000 and 79,795,000 shares issued and  
      outstanding, respectively    797    798  
   Additional paid-in capital    476,707    484,663  
   Unearned compensation under employee compensation plans    (22,728 )  (23,302 )
   Accumulated other comprehensive income    3,655    3,638  
   Retained earnings    934,513    864,550  
     1,392,944    1,330,347  
   Common Stock in treasury at cost, 1,855,000 and 2,223,000  
      shares, respectively    (114,687 )  (136,354 )
        Total stockholders' equity    1,278,257    1,193,993  
        Total liabilities and stockholders' equity   $ 3,719,642   $ 3,409,174  



EXPRESS SCRIPTS, INC.
Unaudited Consolidated Statement of Cash Flows

Three Months Ended
March 31,
(in thousands) 2004 2003
Cash flows from operating activities:            
   Net income   $ 69,963   $ 58,621  
   Adjustments to reconcile net income to net cash  
      provided by operating activities excluding
      the effect of the acquisition:		  
        Depreciation and amortization    15,705    13,163  
        Non-cash adjustments to net income    21,764    11,629  
        Net changes in operating assets and liabilities    (9,647 )  11,023  
Net cash provided by operating activities    97,785    94,436  
Cash flows from investing activities:  
   Purchases of property and equipment    (7,739 )  (9,195 )
   Acquisition, net of cash acquired, and investment in joint venture    (331,810 )  2,804  
   Other    (905 )  7  
Net cash used in investing activities    (340,454 )  (6,384 )
Cash flows from financing activities:  
   Proceeds from long-term debt    675,000    -  
   Repayment of long-term debt    (525,000 )  (25,000 )
   Treasury stock acquired    (9,891 )  -  
   Deferred financing fees    (6,029 )  -  
   Net proceeds from employee stock plans    13,541    1,939  
Net cash provided by (used in) financing activities    147,621    (23,061 )
Effect of foreign currency translation adjustment    (135 )  896  
Net (decrease) increase in cash and cash equivalents    (95,183 )  65,887  
Cash and cash equivalents at beginning of period    396,040    190,654  
Cash and cash equivalents at end of period   $ 300,857   $ 256,541