This Day On The Street
Continue to site
ADVERTISEMENT
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

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

We also continued to generate solid cash flow with first quarter cash flow from continuing operations of $100 million or nearly 84% of our adjusted income before income taxes. And while John will discuss how that cash was allocated during the quarter, I believe we've been consistent in returning at least 25% of our cash flows to shareholders, while also looking at ways to improve our capital structure and generate attractive returns through acquisitions. We believe this disciplined approach to capital allocation, coupled with a robust cash flow characteristics of our company, provides for a compelling opportunity for our shareholders.

Turning now to our operating performance. A few items stand out. We continue to benefit from certain pharmaceutical market dynamics: further improvements in efficiency and standardization; a decline for the quarter in the number of beds served, as we had expected; and a robust growth within our specialty care group.

With respect to the pharmaceutical market dynamics, we have seen a number of high volume branded products convert to generic form during the past 6 months, and we have been effective in driving rapid conversion to these low-cost alternatives. In fact, our generic dispensing rate expanded 80 basis points during the quarter to 80.1%. And because we believe there are still a number of significant generic drugs yet to be introduced into the market and other exclusive generic drugs are soon to become multi- sourced, there is still opportunity for Omnicare, our customers and payers to capture additional savings.

I believe Omnicare's generic drug efficiencies, coupled with our unique clinical programs, enable us to generate savings that provided tremendous amount of value for our customers. In fact, we recently met with a new regional customer and evaluated their savings attributed to our therapeutic interchange programs and a brand to generic efficiency program, and this new customer was pleased to see we saved them over $250,000 in the fourth quarter alone. When we benefit from our clinical expertise and generic drug efficiencies, our customers do, too. And that is why we believe Omnicare and our customers are uniquely positioned to benefit from this generic wave we are currently writing.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs