Express Scripts, Inc. (Nasdaq: ESRX) announced 2011 fourth quarter and full year net income from continuing operations of $290.4 million and $1,275.8 million, or $0.59 and $2.53 per diluted share, respectively. Adjusted earnings per share, as detailed in Table 4 were $0.82 and $2.97 per diluted share for the fourth quarter and full year, respectively.
"Through our unwavering focus on innovation, service and alignment, we achieved a historically high level of client retention," stated George Paz, chairman and chief executive officer. "The pending merger with Medco will allow us to combine our complementary strengths and accelerate our clinical offerings designed to improve health outcomes while lowering healthcare costs for our clients and patients."
Fourth Quarter 2011 Review (Data reflected on an adjusted basis)
- Adjusted claims of 194.9 million, up 2% from fourth quarter 2010 driven by increases in Canada and Medicaid business
- Gross profit of $0.9 billion, up 8% from fourth quarter 2010
- Gross profit and selling general and administrative ("SG&A") expenses were impacted by the continued acceleration of projects to free up capacity for integration activities in 2012
- SG&A expenses include an unexpected $11 million charge for tax items
- EBITDA of $0.7 billion, up 8% from fourth quarter 2010
- EBITDA per adjusted claim of $3.66, up 6% from fourth quarter 2010
- Cash flow from operations of $0.5 billion, up 93% from fourth quarter 2010
Full Year 2011 Review (Data reflected on an adjusted basis)
- Adjusted claims of 751.5 million, down slightly from 2010
- Gross profit of $3.4 billion, up 7% from 2010
- EBITDA of $2.7 billion, up 10% from 2010
- EBITDA per adjusted claim of $3.54, up 11% from 2010
- Cash flow from operations of $2.2 billion, including merger-related costs, up 4% from 2010
Guidance
Although the Company will not provide 2012 guidance until after the completion of the acquisition of Medco, which is expected in the first half of 2012, the Company is reaffirming the following:
- Claims utilization and in-group attrition expected to be consistent with 2011 levels.
- Client retention, based on prescription volume, expected to be greater than 97%.
- Through strong support from clients, greater than 95% of its clients' prescription volume moved forward into 2012 without Walgreens as a network provider.
- As a result of the preceding factors and sales activity to date, which included three new signature wins, the Company expects claims growth to be in a range of 0% to 2%.