This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Omnicare's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: OCR

A reconciliation of this non-GAAP information has been attached to our earnings release and is also available on our newly redesigned website. Also on our website, you will find first quarter supplemental slides and the historical data behind our adjusted cash-based EPS reporting methodology, which we'll follow during our discussion today.

[Operator Instructions] With that, it is my pleasure to turn the call over to John Figueroa.

John G. Figueroa

Thanks, Patrick. Good morning, everyone, and thank you for joining us. During today's call, I'd like to share with you some of the drivers behind our first quarter performance, as well as provide an update on the status of our core operating initiatives. John will then review our first quarter financial results and current outlook for the year. Following our remarks, we'll be happy to answer your questions.

We are pleased with our solid first quarter financial results, which reflect the continuation of our recently established earnings momentum. Our focus on becoming more operationally driven and customer focused has enabled us to become more efficient as an organization, while concurrently benefiting from the pharmaceutical market trends. I believe we have begun a successful 2012 by elevating Omnicare's growth profile and positioning our shareholders for value enhancement.

For the quarter, we generated adjusted cash EPS of $0.81, which represents a 17% increase over the first quarter of 2011. This robust earnings growth was driven largely by our ability to leverage a sales increase. With sales 4% higher on a year-over-year basis, we increased our gross profit by 10%, as we benefited from the introduction of new low-cost generic drug alternatives, while also driving more operational efficiency.

As a result, we expanded our gross margin by 115 basis points to 23.1% and we created further leverage at the operating income line as gross profit dollar growth outpaced the year-over-year increase in SG&A dollars, driving adjusted operating profit 19% higher. With SG&A expense remaining relatively even sequentially, we expanded our adjusted operating margin by 40 basis points to 9%.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs