Walgreen Co. (NYSE: WAG) (Nasdaq: WAG) today announced earnings and sales results for the fourth quarter and fiscal year 2013 ended Aug. 31.
Net earnings determined in accordance with generally accepted accounting principles (GAAP) for the fiscal 2013 fourth quarter were $657 million, an 86.4 percent increase from $353 million in the same quarter a year ago. Net earnings per diluted share for the quarter increased 75.9 percent to 69 cents, compared with 39 cents per diluted share in the year-ago quarter.
Adjusted fiscal 2013 fourth quarter net earnings were $702 million, a 26.9 percent increase from $553 million in the same quarter a year ago. Adjusted net earnings per diluted share for the quarter increased 15.9 percent to 73 cents, compared with 63 cents per diluted share in the year-ago quarter. This year’s adjusted fourth quarter results exclude the negative impact of 5 cents per diluted share in acquisition related amortization, 4 cents per diluted share in Alliance Boots related tax, 1 cent per diluted share in other acquisition related costs and 1 cent per diluted share in costs associated with the company’s change in prescription drug wholesalers. Also excluded is the positive impact of 6 cents per diluted share in fair value adjustments and amortization related to the company’s warrants to purchase AmerisourceBergen’s common stock, and 1 cent per diluted share from the quarter’s LIFO income.
GAAP and adjusted net earnings in this year’s quarter include 3 cents per diluted share in net gains from certain litigation matters.Last year’s adjusted fourth quarter results exclude the negative impact of 9 cents per diluted share related to the company’s transaction with Alliance Boots GmbH, 10 cents per diluted share from the quarter’s LIFO provision and 5 cents per diluted share in acquisition-related amortization costs. “We had a solid quarter across our entire business. We saw improvement in our daily living business resulting from the investments we made and enhanced execution. We also saw continued strength in our pharmacy business as we increased our retail pharmacy market share for the fiscal year to 19.1 percent, and we continued to make great progress on controlling selling, general and administrative costs,” said Walgreens President and CEO Greg Wasson. “We closed the year with record sales and record free cash flow, and we were pleased to be able to return more than $1 billion to shareholders during fiscal 2013 as we increased our dividend for the 38th consecutive year.”