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McKesson Corp. Reports Operating Results (10-Q)

October 25, 2012 | About:
10qk

10qk

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McKesson Corp. (MCK) filed Quarterly Report for the period ended 2012-09-30.

Mckesson Corporation has a market cap of $21.29 billion; its shares were traded at around $93.16 with a P/E ratio of 13.5 and P/S ratio of 0.2. The dividend yield of Mckesson Corporation stocks is 0.9%. Mckesson Corporation had an annual average earning growth of 12.4% over the past 10 years. GuruFocus rated Mckesson Corporation the business predictability rank of 4.5-star.

Highlight of Business Operations:

Net income for the second quarter of 2013 increased 35% to $401 million and for the first six months of 2013 increased 34% to $781 million compared to the same periods a year ago. Diluted earnings per common share for the second quarter of 2013 increased 42% to $1.67 and for the first six months of 2013 increased 41% to $3.25 compared to the same periods a year ago. Diluted earnings per common share for 2013 also benefited from our repurchase of common stock.

Operating expenses and operating expenses as a percentage of revenues decreased in 2013 compared to the same periods a year ago primarily due to a higher AWP litigation charge in 2012, partially offset by an increase associated with the addition of the Katz Assets. Operating expenses and operating expenses as a percentage of revenues for the first six months of 2013 was also favorably impacted by the gain on business combination, partially offset by our continued investment in research and development activities and higher employee compensation and benefits costs. During the second quarters of 2013 and 2012, we recorded pre-tax litigation charges relating to our AWP litigation of $44 million and $118 million, and for the first six months of 2013 and 2012, $60 million and $118 million.

For the second quarters of 2013 and 2012, operating profit includes AWP litigation charges of $44 million and $118 million, and for the first six months of 2013 and 2012, $60 million and $118 million. These charges were recorded in operating expenses.

Net Income: Net income was $401 million and $296 million for the second quarters of 2013 and 2012, or $1.67 and $1.18 per diluted common share. Net income was $781 million and $582 million for the first six months of 2013 and 2012, or $3.25 and $2.31 per diluted common share. Net income and diluted earnings per common share for the second quarter and first six months of 2013 include an after-tax charge of $27 million and $37 million, or $0.11 and $0.15 per diluted share, and for the second quarter and first six months of 2012, include an after-tax charge of $77 million, or $0.31 per diluted share, due to the AWP litigation. Net income and diluted earnings per common share for first six months of 2013 include an after-tax credit of $51 million, or $0.21 per diluted share, due to the gain on business combination.

Operating activities provided cash of $459 million and $1,395 million during the first six months of 2013 and 2012. Operating activities for 2013 include $438 million of payments made for AWP litigation settlements. Cash flows from operations can be significantly impacted by factors such as the timing of receipts from customers, inventory receipts and payments to vendors. Additionally, working capital is a function of sales activity and inventory requirements.

Read the The complete Report

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10qk
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