OREANDA-NEWS. May 16, 2013. McKesson Corporation (NYSE: MCK) reported that revenues for the fourth quarter ended March 31, 2013 were USD 30.6 billion, down 3% compared to USD31.7 billion a year ago.  On the basis of U.S. generally accepted accounting principles (“GAAP”), fourth-quarter earnings per diluted share was USD 1.10 compared to USD 2.09 a year ago.

For the fiscal year, McKesson had revenues of USD 122.5 billion compared to USD 122.7 billion a year ago.  Full-year GAAP earnings per diluted share was unchanged at USD 5.59 compared to the prior year. 

Fourth-quarter Adjusted Earnings per diluted share was USD 1.45, down 31% compared to USD 2.09 a year ago.  During the quarter, McKesson undertook a number of strategic and operational actions to position the Company going forward.  As a result, fourth-quarter GAAP and Adjusted Earnings per diluted share included USD 0.76 of non-cash impairment charges and USD 0.11 of severance and facility exit charges.  Full-year Adjusted Earnings per diluted share was USD 6.33, compared to USD 6.38 in the prior year.

In connection with these actions, the Company committed to a plan to sell its 49 percent equity investment in Nadro S.A. de C.V., a privately-held pharmaceutical distributor in Mexico, which resulted in a fourth-quarter non-cash, pre-tax impairment charge of USD 191 million.

The Company’s actions also include a realignment of the Technology Solutions segment.  As part of this realignment, the Company intends to exit its International Technology and Hospital Automation businesses.  Results for these two businesses will be reported in discontinued operations beginning in the first fiscal quarter of 2014.

“We took important strategic and operational actions during the quarter and while these actions impacted our fourth quarter financial results, I believe they leave the Company well positioned for continued success going forward,” said John H. Hammergren, chairman and chief executive officer.  “Turning to our operating results, I am pleased with the strong performance of our Distribution Solutions segment in the fourth quarter, which capped off another outstanding year in the segment.  In addition to the strong operating performance in our Distribution Solutions segment, we had another great year of cash flow performance and deployed a record level of capital for acquisitions and share repurchases, creating further value for our shareholders.”

During the fourth quarter, McKesson completed the acquisition of PSS World Medical, Inc.  Also during the fourth quarter, McKesson repurchased USD 800 million of its common stock. 

For the year, McKesson generated cash from operations of USD 2.5 billion, and ended the year with cash and cash equivalents of USD 2.5 billion and a gross debt-to-capital ratio of 40.8%. 

During the year, McKesson spent USD 1.9 billion on acquisitions, repurchased USD 1.2 billion of its common stock, paid USD 194 million in dividends, and had internal capital spending of USD 406 million.

 “The strength of our balance sheet and cash flow performance continue to provide opportunities to create value for our shareholders through our portfolio approach to capital deployment,” Hammergren commented.  “In the fourth quarter we completed the acquisition of PSS and have begun the process of bringing together the best of our combined businesses to help our customers improve efficiency and deliver better care to their patients.  In addition, our strong cash flow allowed us to repurchase shares of common stock valued at more than USD 1.2 billion in Fiscal 2013.  We plan to continue our portfolio approach to capital deployment with a mix of acquisitions, share repurchases, dividends and internal investments.”