Catalyst Health Solutions, Inc. (NASDAQ: CHSI), today announced its financial results for the fourth quarter and year ended December 31, 2011.
Fourth Quarter Year-Over-Year Highlights:
- Revenue increased 38% to $1.54 billion
- Adjusted earnings per diluted share increased 23% to $0.69
- GAAP earnings per diluted share were $0.39
Full Year 2011 Highlights:
- Revenue increased 42% to $5.33 billion
- Adjusted earnings per diluted share increased 23% to $2.37
- GAAP earnings per diluted share were $1.39
- Executed strategic acquisition of Walgreens Health Initiatives (WHI) in June
- Completed integration of FutureScripts, achieved financial targets
- Continued expansion of Generic Advantage Plan, Catalyst Mobile and Retail 90 offering to provide cost savings to clients and members
“We are pleased with the Company’s performance,” stated David T. Blair, Chairman and Chief Executive Officer of Catalyst. “This was a transformational year for the Company as we made significant investments to scale the business and position Catalyst to benefit from the changing market dynamics. During the quarter, we made great progress on the integration of WHI and continue to be on-track for our stated financial goals. With favorable industry trends and client demands for transparency, combined with our value proposition and clinical excellence, Catalyst continues to be well positioned to drive meaningful long-term earnings growth.”Fourth Quarter Results Revenue for the fourth quarter increased by $428.0 million, or 38%, to $1.54 billion from $1.12 billion in the prior year’s comparable quarter. The increase relates to additional prescription volume from WHI, volume from new clients and price inflation on brand drugs, partially offset by increased generic utilization. Total prescription volume, after adjusting for the difference in days supply between 90-day prescriptions (mail and retail) and traditional 30-day retail prescriptions, was up 30% to 32.1 million for the quarter versus 24.6 million for the same period in 2010, excluding administrative services only (ASO) claims. ASO claims increased significantly with the acquisition of WHI to 21.1 million in the fourth quarter of 2011 from 120 thousand in the prior year period. Due to the limited nature of services or contractual responsibilities, ASO claims are accounted for on a net basis in revenue. Adjusted mail-order penetration decreased to 10% from 12% due to the change in mix with the WHI client base included in the fourth quarter volume. Generic utilization increased to 75% from 73% in the fourth quarter of 2010.