McKesson Corporation (NYSE: MCK) today reported that revenues for the first quarter ended June 30, 2012 were $30.8 billion, up 3% compared to $30.0 billion a year ago. On the basis of U.S. generally accepted accounting principles (“GAAP”), first-quarter earnings per diluted share was $1.58 compared to $1.13 a year ago.
As previously announced, first-quarter GAAP earnings include an $81 million pre-tax gain on business combination related to the acquisition of the remaining 50% ownership interest in McKesson’s corporate headquarters building. This acquisition-related gain is excluded from the company’s calculation of Adjusted Earnings. First-quarter GAAP results also include a pre-tax charge of $16 million, recorded in the Distribution Solutions segment, to increase an existing litigation reserve for claims against McKesson relating to First DataBank’s published drug reimbursement benchmarks, commonly referred to as Average Whole Prices (“AWP”).
First-quarter Adjusted Earnings per diluted share was $1.55, up 22% compared to $1.27 a year ago.
For the first quarter, McKesson used cash in operations of $552 million, and ended the quarter with cash and cash equivalents of $2.0 billion. During the first quarter the company paid $53 million in dividends, had internal capital spending of $84 million and spent $108 million on acquisitions.“I am pleased with McKesson’s first-quarter financial results,” said John H. Hammergren, chairman and chief executive officer. “Our results this quarter represent a solid start to our fiscal year and we continue to expect that McKesson should achieve Adjusted Earnings per diluted share of $7.05 to $7.35.” Distribution Solutions revenues were up 3% for the first quarter. U.S. pharmaceutical distribution revenues were up 4% for the first quarter, primarily reflecting market growth and new business with existing customers. Canadian revenues, on a constant currency basis, decreased 4% for the first quarter primarily due to four fewer sales days. Including the unfavorable currency impact of 4%, Canadian revenues decreased 8% for the first quarter.