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Home > News/Media > News releases
Cardinal Health Reports Record First-Quarter Revenues and Earnings
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DUBLIN, Ohio, Oct. 23 /PRNewswire/ -- Cardinal Health, Inc. (NYSE: CAH), a leading provider of products and services supporting the health-care industry, today reported another strong quarter, posting records in four key financial measures -- revenues, earnings, and returns on sales and committed capital -- for its fiscal 2002 first quarter ended September 30, 2001. The company grew net earnings by 30 percent before special items to $254 million on $9.9 billion of operating revenues, up 16 percent from the year-ago quarter. Earnings per share rose 28 percent before special items to $0.55. The quality of the company's earnings and asset management also improved, with return on sales rising 22 basis points to 4.18 percent and return on committed capital increasing 310 basis points to 29.6 percent, both first-quarter records.
"This was another record-setting quarter for Cardinal Health," said Robert D. Walter, chairman and chief executive officer. "It demonstrates the strength and diversity of our portfolio, the continued strong demand for our products and services and the attractiveness of our industry and our position in it. Our financial formula continues to deliver. We achieve excellent growth at the top line and accelerate that growth at the operating earnings and net earnings levels through disciplined financial management and strategic focus on profitable growth."
Financial Highlights
Unless noted otherwise, the following discussion excludes special items. Fiscal 2002 results also reflect the adoption of Statement of Financial Accounting Standards Board No. 142, which eliminated goodwill amortization beginning July 1, 2001. To facilitate comparison with the prior-year period in the discussion below, we have made a pro forma adjustment, eliminating goodwill amortization from the fiscal 2001 quarter.
- Net earnings rose 23 percent to a first-quarter record $254 million from $207 million a year ago. Earnings per diluted share rose 20 percent over the year-earlier period to a record $0.55 from $0.46.
- Operating earnings rose 18 percent to a first-quarter record $412 million from $349 million a year ago. This growth was driven by strong performances in each of the company's four business segments, with particularly strong growth in the company's Pharmaceutical Distribution and Provider Services, and Automation and Information segments.
- Operating revenues, a key driver of the company's improved operating earnings, increased 16 percent to a first-quarter record $9.9 billion from $8.5 billion in the year-earlier period.
- The company achieved gross-margin improvement in three of its four segments, while continuing to control costs effectively companywide.
- Cardinal improved first-quarter selling, general and administrative expenses as a percent of sales by a significant 26 basis points versus the prior-year period. As a result of these efforts, combined with strong revenue growth, return on sales improved in every segment and set a first-quarter record for the company as a whole.
- The company also continued its emphasis on strategic investment spending, funding research and development as well as specific projects in several businesses. These investments in future growth, which are charged against current earnings, totaled more than $20 million in the first quarter.
- Cardinal Health continued to leverage interest expense in the quarter. Effective asset management and lower interest rates resulted in a 15 percent decline in interest cost. Initiatives to improve tax efficiency also were effective; the company's tax rate declined 50 basis points to 33.8 percent in the first quarter versus prior year.
- Return on committed capital increased to record levels, up 310 basis points to 29.6 percent due to strong operating earnings and excellent asset management. Accounts receivable days outstanding improved to 20 days, versus 22 days a year ago. The company's ratio of net debt to total capital was managed to a low 20 percent, a substantial decrease from 28 percent a year ago.
- The company used $481 million of operating cash flow in the quarter, reflecting its normal seasonal inventory build as well as initiatives to augment inventories in support of its commitment to emergency- response readiness. The company reaffirmed its goal of generating $800 million to $900 million in operating cash flow for the full year.
Business-Segment Results
Cardinal Health reported well-balanced, strong growth in revenues and operating earnings across each of its four reporting segments. In addition to record performance in each segment, the company is achieving substantial new revenues in customer contracts that involve multiple Cardinal businesses and segments. In the first quarter, for example, the company signed 12 of these multiyear cross-selling agreements representing approximately $300 million in total annual revenues, more than a third of which are incremental. First- quarter contracts included notable new business with St. Joseph Health System (Orange, California) and Charleston Area Medical Center (Charleston, West Virginia).
Pharmaceutical Distribution and Provider Services
The Pharmaceutical Distribution and Provider Services segment, which represents 51 percent of Cardinal's operating earnings, recorded another outstanding quarter, with first-quarter records in revenues, operating earnings and returns on sales and committed capital. Total revenues in this segment grew 17 percent to $8.0 billion. Revenues from the pharmaceutical-distribution portion of the segment grew 19 percent and continued to outpace the industry in all customer categories, led by strong gains with chain stores and health systems. The balance of the segment, made up of specialty distribution and a range of provider services, grew revenues 9 percent over prior year.
The segment posted first-quarter operating earnings of $222 million, up 24 percent over the fiscal 2001 first quarter. Return on sales improved to 2.79 percent from 2.63 percent in the prior year. Gross margins improved 5 basis points to 5.21 percent and operating expenses, fully burdened with corporate expenses, declined 11 basis points to a first-quarter low of 2.42 percent. Vendor margin opportunities, strong expense controls, and synergies from the acquisition of Bindley Western Industries in February 2001 were the main drivers of the performance in this segment.
Strong earnings and exceptional working capital management drove the return on committed capital to 29.1 percent, a significant improvement over 24.6 percent a year ago. This was especially notable given the normal seasonal inventory investment made in this segment, and an $85 million incremental inventory build to support emergency-response readiness. A strong improvement in profitability and return on committed capital at Owen Healthcare also contributed to the positive returns in this segment.
Highlights
- Cardinal Health's merger integration with Bindley Western Industries is proceeding smoothly and contributing to the company's earnings performance. The company has consolidated six of 16 distribution centers, with another four to be consolidated in the next 90 days.
- Cardinal's past investments in facilities and information systems that support purchasing, warehousing and sales provide a flexible and scalable platform that is facilitating the large-scale integration of Bindley's operations. Purchasing systems have already been consolidated and are beginning to provide buying and operational efficiencies. The expected merger synergies are on track to achieve the estimated $100 million.
Medical-Surgical Products and Services
Cardinal Health's medical-surgical products segment, which represents 29 percent of Cardinal's operating earnings, posted record first-quarter revenues, operating earnings, and return on sales, on strong sales of surgical products and services. The segment grew worldwide revenues by 10 percent in the quarter to $1.5 billion. The segment continued to manage expenses effectively, with sales, general and administrative expenses declining by 146 basis points to an all-time low 13.03 percent of revenues in the quarter versus 14.49 percent a year ago.
As a result, operating earnings rose 15 percent over prior year to $127 million, and return on sales grew 38 basis points to 8.39 percent. These results include one month of incremental revenues from the August 2000 acquisition of Bergen Brunswig Medical Corporation (BBMC), which was accounted for using purchase accounting. Strong earnings growth, asset management and operating cash flow drove continued improvement in return on committed capital, which rose 220 basis points to a record 33.7 percent from 31.5 percent a year ago.
Highlights
- The segment continued to see sales growth of Allegiance's corporately manufactured products during the quarter, both in existing accounts and in new customers that came with the BBMC merger. Virtually all manufactured product categories grew in the quarter with particular strength in sales of medical gloves, surgical instruments and other devices. In total, sales of self-manufactured products were up 9 percent.
- The integration of BBMC continues to progress on schedule. To date, the company has realized more than 40 percent of its expected $30 million in synergies from new revenues and lower costs. The balance will be achieved over the next two fiscal years, as announced previously. Fourteen of 29 BBMC facilities have been consolidated or fully integrated into Allegiance.
- The company continues to see increased demand and sales momentum for its medical-surgical distribution business. Allegiance was named as one of two national authorized distribution agents for Novation, the supply company of VHA Inc. and the University HealthSystem Consortium that manages more than $15 billion in annual purchases for more than 7,000 health-care institutions. The purchasing group had previously authorized four national distributors. In the coming quarters, Cardinal expects substantial new business with Novation hospitals as well as continued strong sales to alternate-site providers. Two recent examples: The company signed major multiyear distribution agreements with Northwestern Memorial Hospital (Chicago) and University of Wisconsin Hospital and Clinics (Madison).
Pharmaceutical Technologies and Services
First-quarter revenues in this segment gained 11 percent to $301 million on strong demand for drug-delivery technologies and packaging services. The segment, which represents 13 percent of Cardinal's operating earnings, achieved its largest gains from products that utilize the company's sterile-liquid and controlled-release pharmaceutical technologies, and its proprietary packaging offerings.
The segment also posted higher operating earnings, up 12 percent to $58 million on strong revenue and improving gross margin performances. Return on sales rose to 19.20 percent, a first-quarter record that is 24 basis points higher than a year ago. Return on committed capital was 24.5 percent versus 26.6 percent in the year-earlier period, as significant investments in anticipation of future growth have been made in this segment. The company expects to grow its return on committed capital in this segment to approximately 30 percent over the next 12 months and to approximately 35 percent in the next three years.
Highlights
- The segment benefited from strong demand for several drug-delivery technologies and contract-packaging services. In sterile-liquid technologies, for example, the company is experiencing higher demand for Pharmacia Corporation's Xalatan(R) for glaucoma and Sepracor's Xopenex(R) for asthma. Growth in the company's packaging services was driven by new contracts and increased volume in existing accounts. This segment has begun to build inventories to support an accelerated schedule of pharmaceutical launches planned for the second half of the fiscal year.
- Cardinal Health's $80-million pharmaceutical technologies and services center in New Jersey is on schedule to open in the fourth quarter of fiscal 2002. The center will showcase Cardinal's comprehensive development, engineering, manufacturing, packaging, quality, testing and regulatory services for the drug and biotechnology industry.
Automation and Information Services
This segment, which represents 7 percent of Cardinal's operating earnings, posted exceptional earnings growth on strong sales of new and existing automation products. Revenues gained 20 percent to $108 million from $90 million a year ago. Gross margins improved by 260 basis points to 66.92 percent as a result of favorable product mix and manufacturing efficiencies that were achieved as a result of a series operational improvements at Pyxis. Revenue growth and improved margins drove operating earnings up 27 percent to $30 million and return on sales up 155 basis points to 27.49 percent from 25.94 percent a year ago.
Return on committed capital also improved significantly, rising 550 basis points to 20.3 percent from 14.8 percent in the prior year, on track to achieve the company's goal of 30 percent for the full year. Robust earnings gains, improved asset management and the securitization of $150 million of Pyxis' leases during the quarter drove the improvement.
Highlights
- Pyxis had significant gains in new committed contracts and product installations. The company began the quarter with a backlog of approximately $165 million in committed contracts for systems awaiting installation. During the quarter, the company signed approximately $89 million in new committed contracts, a 41 percent increase over the year-earlier period on higher demand for MEDSTATION(R) SN and the SUPPLYSTATION(R) System 30. Installations generated $77 million of revenue in the quarter. The ending backlog of committed contracts for Pyxis rose to $177 million at September 30, 2001.
- As discussed on the company's October 10 conference call, Pyxis also made a number of operational improvements in the quarter, including shifting its manufacturing processes to a build-to-order model. The changes have already helped cut labor, shipping costs and inventory costs dramatically. These improvements are expected to be positive drivers of earnings and customer satisfaction over the next couple of years.
Summary and Fiscal 2002 Outlook
"We remain confident in Cardinal Health's continued strong performance," Walter said. "We're in an excellent industry and we have a healthy and well-balanced portfolio with improving profitability and productivity, and excellent opportunities for short- and long-term growth. We reaffirm our commitment to grow annual earnings per share 20 percent, with rising returns on sales and committed capital, and strong cash flow."
Special Items
Including merger-related charges of $7.6 million (after tax) in the first quarter (versus $6.0 million in the year-earlier period), net earnings were $246 million, an increase of 22 percent over the year-earlier quarter, and earnings per diluted share increased 20 percent to $0.53.
As discussed on October 10 (see the presentation at the Investor Center at www.cardinal.com ), Cardinal Health's results in the first quarter also include the effect of a change in accounting for the company's Pyxis Corporation subsidiary. The change involves shifting the method of recognizing revenues at Pyxis from the time products are delivered to when they are installed. The cumulative effect is an after-tax charge of $70 million, or $0.15 per diluted share, in the fiscal 2002 first quarter.
Cardinal Health, Inc. (http://www.cardinal.com) is a leading provider of products and services supporting the health-care industry. Cardinal companies develop, manufacture, package and market products for patient care; develop drug-delivery technologies; distribute pharmaceuticals, medical-surgical and laboratory supplies; and offer consulting and other services that improve quality and efficiency in health care. The company employs more than 49,000 people on five continents and produces annual revenues of more than $40 billion.
Webcast Today
Cardinal Health has scheduled an Internet "Webcast" today to discuss its first-quarter performance and outlook. To access this discussion, please visit http://www.cardinal.com and follow directions to the company's Investor Center. The conference will begin at 11 a.m. Eastern Time today. If you have difficulty accessing the call via the Internet, the company has established a call-in number at 646-862-9918 for telephone access. A replay of the Webcast will be available until 1:00 p.m. Eastern Time October 26 on the Internet at cardinal.com's Investor Center or by dialing 800-633-8284, reservation number 19770774.
Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Cardinal Health's Form 10-K, Form 8-K and Form 10-Q reports and exhibits to those reports, and include (but are not limited to) the costs, difficulties, and uncertainties related to the integration of acquired businesses, the loss of one or more key customer or supplier relationships, changes in the distribution outsourcing patterns for health-care products and/or services, the costs and other effects of governmental regulation and legal and administrative proceedings, and general economic conditions. Cardinal undertakes no obligation to update or revise any forward-looking statements.
CARDINAL HEALTH, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(in millions, except per share amounts)
FIRST QUARTER
September September
2001 2000 % Change
Revenue:
Operating Revenue $9,865.4 $8,510.9 16 %
Bulk Deliveries to Customer
Warehouses 1,908.0 2,529.0 (25)%
Total Revenue 11,773.4 11,039.9 7 %
Cost of Products Sold:
Operating Cost of Products
Sold 8,950.7 7,707.2 16 %
Cost of Products Sold - Bulk
Deliveries 1,908.0 2,528.5 (25)%
Total Cost of Products Sold 10,858.7 10,235.7 6 %
Gross Margin 914.7 804.2 14 %
S, G & A Expenses 502.4 455.3 10 %
Goodwill Amortization - 12.1 N.M.
Special Charges 12.3 12.3 N.M.
Operating Earnings 400.0 324.5 23 %
Interest Expense and Other 28.6 33.7 (15)%
Earnings Before Income Taxes 371.4 290.8 28 %
Provision for Income Taxes 125.0 100.8 24 %
Net Earnings Before Cumulative
Effect of Change in Accounting
Principle 246.4 190.0 30 %
Cumulative Effect on Prior
Years of Change in
Accounting Principle 70.1 - N.M.
Net Earnings $176.3 190.0 N.M.
Basic Earnings Per Common
Share:
Before Cumulative Effect of
Change in Accounting Principle $0.55 $0.43 28 %
Cumulative Effect of Change
in Accounting Principle (0.16) - N.M.
Net Basic Earnings Per
Common Share $0.39 $0.43 N.M.
Diluted Earnings Per Common
Share:
Before Cumulative Effect of
Change in Accounting Principle $0.53 $0.42 26 %
Cumulative Effect of Change
in Accounting Principle (0.15) - N.M.
Net Diluted Earnings Per
Common Share $0.38 $0.42 N.M.
Weighted Average Number of
Shares Outstanding:
Basic 449.6 438.9
Diluted 460.6 450.9
The following table summarizes the impact of special charges
and goodwill amortization on net earnings and diluted earnings per
Common Share in the quarters in which they were recorded:
Current Year Prior Year
Net Diluted Net Diluted
Earnings EPS Earnings EPS
Special Charges (7.6) (0.02) (6.0) (0.013)
Goodwill Amortization - - (11.0) (0.024)
Impact of Special Items and Goodwill $(7.6) $(0.02) $(17.0) $(0.04)
CARDINAL HEALTH, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
September 30, June 30, September 30,
2001 2001 2000
ASSETS
CURRENT ASSETS
Cash and Equivalents $872.0 $934.1 $573.3
Trade Receivables 2,251.6 2,408.7 2,523.9
Current Portion of Investment in
Sales-Type Leases 182.3 236.3 198.5
Inventories 7,704.7 6,286.1 5,534.4
Prepaid Expenses and Other 939.1 851.1 708.4
Total Current Assets 11,949.7 10,716.3 9,538.5
Property and Equipment - Net 1,847.9 1,838.3 1,754.2
Investment in Sales-Type Leases 539.6 671.7 579.7
Other Assets 1,384.3 1,416.1 1,334.2
TOTAL ASSETS $15,721.5 $14,642.4 $13,206.6
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Notes Payable - Banks and Current
Portion of Long-Term Obligations $25.9 $14.2 $421.1
Accounts Payable 5,663.8 5,319.9 4,479.4
Other Accrued Liabilities 1,368.2 1,240.7 1,098.6
Total Current Liabilities 7,057.9 6,574.8 5,999.1
Long-Term Obligations, Less
Current Portion 2,288.6 1,871.0 2,011.6
Deferred Taxes and Other
Liabilities 704.9 759.5 527.6
Total Shareholders' Equity 5,670.1 5,437.1 4,668.3
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $15,721.5 $14,642.4 $13,206.6
CARDINAL HEALTH, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in millions)
Three months ended
September 30,
2001 2000
Cash Flows From Operating
Activities:
Net earnings before cumulative
effect of change in accounting principle $246.4 $190.0
Adjustments to reconcile net
earnings before cumulative
effect of change in accounting
principle to net cash
from operations:
Depreciation and amortization 61.2 68.0
Change in operating assets and
liabilities, net of
effects from acquisitions:
(Increase)/decrease in trade
receivables 161.0 (129.6)
Increase in inventories (1,411.0) (779.8)
(Increase)/decrease in net
investment in sales-type leases 186.0 (11.9)
Increase in accounts payable 342.9 491.7
Other operating items - net (67.2) (210.8)
Net cash used in operating activities (480.7) (382.4)
Cash Flows From Investing Activities:
Acquisition of subsidiaries, net
of cash acquired - (239.9)
Proceeds from sale of property and
equipment 9.6 3.4
Additions to property and equipment (58.3) (53.4)
Other - -
Net cash used in investing activities (48.7) (289.9)
Cash Flows From Financing Activities:
Net change in commercial paper and
short-term debt 405.1 568.0
Net change in long-term obligations 22.7 31.5
Proceeds from issuance of Common Shares 53.3 70.4
Purchase of Treasury Stock (2.7) (2.3)
Other (11.1) (9.1)
Net cash provided by financing
activities 467.3 658.5
Net Decrease in Cash and Equivalents (62.1) (13.8)
Change in Bindley's fiscal year - 47.6
Cash and Equivalents at Beginning of Period 934.1 539.5
Cash and Equivalents at End of Period 872.0 573.3
CARDINAL HEALTH, INC. - FIRST QUARTER FY 2002 BUSINESS ANALYSIS
($ millions)
PHARMACEUTICAL DISTRIBUTION AND PROVIDER SERVICES
2002 2001 COMMENT
* REVENUE
- Amount $7,961 $6,780 Q1 RECORD
- Growth Rate 17% 23% Organic Growth
- Mix 81% 80%
* OPERATING EARNINGS
- Amount* $222 $178 Q1 RECORD
- Growth Rate* 24% 24%
- Mix* 51% 49%
* RATIO TO REVENUE
- Gross Margin 5.21% 5.16% Vendor margins
- Expenses* 2.42% 2.53% Q1 RECORD LOW
- Operating Earnings* 2.79% 2.63% Q1 RECORD
* PRODUCTIVITY
- Margin Per Expense Dollar* $2.15 $2.04
* ASSET MANAGEMENT
- Average Committed Capital $3,047 $2,890 Asset management,
BDY synergies
- Return On Committed Capital 29.1% 24.6% Q1 RECORD
- Operating Cash Flow ($703) ($378) Inventory
investments
MEDICAL-SURGICAL PRODUCTS AND SERVICES
2002 2001 COMMENT
* REVENUE
- Amount $1,510 $1,379 Q1 RECORD
- Growth Rate 10% 14% BBMC acquisition
- Mix 15% 16%
* OPERATING EARNINGS
- Amount* $127 $110 Q1 RECORD
- Growth Rate* 15% 18%
- Mix* 29% 30%
* RATIO TO REVENUE
- Gross Margin 21.42% 22.50% BBMC impact
- Expenses* 13.03% 14.49% Cost control,
BBMC synergies
- Operating Earnings* 8.39% 8.01% Q1 RECORD
* PRODUCTIVITY
- Margin Per Expense Dollar* $1.64 $1.55
* ASSET MANAGEMENT
- Average Committed Capital $1,502 $1,302 BBMC impact
- Return On Committed Capital 33.7% 31.5% RECORD
- Operating Cash Flow $30 $9
PHARMACEUTICAL TECHNOLOGIES AND SERVICES
2002 2001 COMMENT
* REVENUE
- Amount $301 $272 Q1 RECORD
- Growth Rate 11% 5%
- Mix 3% 3%
* OPERATING EARNINGS
- Amount* $58 $52 Q1 RECORD
- Growth Rate* 12% 12%
- Mix* 13% 14%
* RATIO TO REVENUE
- Gross Margin 33.82% 32.44% Product mix
- Expenses* 14.62% 13.48%
- Operating Earnings* 19.20% 18.96% Q1 RECORD
* PRODUCTIVITY
- Margin Per Expense Dollar* $2.31 $2.41
* ASSET MANAGEMENT
- Average Committed Capital $941 $750 Strategic investment
- Return On Committed Capital 24.5% 26.6%
- Operating Cash Flow $10 $9
AUTOMATION AND INFORMATION SERVICES
2002 2001 COMMENT
* REVENUE
- Amount $108 $90 Q1 RECORD
- Growth Rate 20% 29% Installation method
- Mix 1% 1%
* OPERATING EARNINGS
- Amount* $30 $23 Q1 RECORD
- Growth Rate* 27% 37%
- Mix* 7% 7%
* RATIO TO REVENUE
- Gross Margin 66.92% 64.32% Product mix,
productivity
- Expenses* 39.43% 38.38%
- Operating Earnings* 27.49% 25.94% Operational
improvements
* PRODUCTIVITY
- Margin Per Expense Dollar* $1.70 $1.68
* ASSET MANAGEMENT
- Average Committed Capital $588 $623 $150M securitization
- Return On Committed Capital 20.3% 14.8%
- Operating Cash Flow $182 ($22)Securitization,
collections
CARDINAL HEALTH, INC. - FIRST QUARTER FY 2002 BUSINESS ANALYSIS
($ millions)
TOTAL
2002 2001
* REVENUE
- Amount $9,865 $8,511 Excluding Special Charges
- Growth Rate 16% 21%
2002 2001
* OPERATING EARNINGS
- Amount* $400 $337 $412 $349
- Growth Rate* 19% 31% 18% 19%
* RATIO TO REVENUE
- Gross Margin 9.27% 9.45%
- Expenses* 5.09% 5.35%
- Special Charges 0.12% 0.14%
- Operating Earnings* 4.06% 3.96% 4.18% 4.10%
* NET EARNINGS**
- Amount* $246 $201 $254 $207
- Growth Rate* 22% 44% 23% 22%
- Ratio to Revenue* 2.50% 2.36% 2.58% 2.43%
* PRODUCTIVITY
- Margin Per Expense
Dollar* $1.82 $1.77
* ASSET MANAGEMENT
- Average Committed
Capital $5,579 $5,082
- Return On Committed
Capital 28.7% 25.5% 29.6% 26.5%
- Operating Cash Flow ($481) ($382)
- Revenue and all ratios to revenue exclude bulk deliveries to customer warehouses
- Due to the implementation of FAS No. 142 and to arrive at relevant comparisons, these lines are presented on a proforma basis for FY 2001 to exclude goodwill amortization.
- Due to the implementation of FAS No. 142 and to arrive at relevant comparisons, these lines are presented on a proforma basis for FY 2001 to exclude goodwill amortization.
** The net earnings section is presented before the cumulative effect of change in accounting principle.
CARDINAL HEALTH, INC. - FIRST QUARTER FISCAL 2002 AND 2001 ASSET MANAGEMENT ANALYSIS ($ millions) 2002 2001 COMMENT * RECEIVABLE DAYS 20 22 Q1 RECORD LOW * INVENTORY TURNS 6.0 6.1 Investment opportunities * CASH $872 $573 * DEBT $2,315 $2,433 * EQUITY $5,670 $4,668 * NET DEBT/TOTAL CAPITAL 20% 28% Q1 RECORD LOW * TANGIBLE NET WORTH $4,503 $3,540 * RETURN ON EQUITY 17.8% 16.8% EXCLUDING SPECIAL CHARGES 18.3% 17.3% Q1 RECORD * TAX RATE* 33.7% 33.6% EXCLUDING SPECIAL CHARGES* 33.8% 34.3% Tax efficiency initiatives
SOURCE Cardinal Health, Inc.
CONTACT: Investor, Stephen T. Fischbach, or +1-614-757-7067, or Media, Geoffrey D. Fenton, +1-614-757-7871, both of Cardinal Health/
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