Please note that this communication does not constitute an offer to buy or solicitation of an offer to sell any securities. A tender offer to purchase all issued and outstanding shares of common stock for PharMerica Corporation, is being made pursuant to a tender offer statement on schedule TO, including the offer to purchase, letter of transmittal, and other related tender offer materials that was filed on September 7, 2011 by Omnicare with the SEC.Investors and security holders of PharMerica are able to obtain free copies of these documents and other documents filed with the SEC by Omnicare, through the website maintained by the SEC or by directly request to the corporate secretary of Omnicare. For simplicity sake, and the focus on what we believe are the best indicators of our operating performance, we will discuss results from continuing operations and we’ll also exclude special items for all periods in our discussion today. A reconciliation of this non-GAAP information has been attached to our earnings release and is also available on our Web site. Also on our Web site, we have posted supplemental slides, which are intended to accompany our remarks this morning. Before turning the call over to John, I would like to remind analysts to limit themselves to one question and one follow up during our question-and-answer session so others may ask their questions. With that, it is my pleasure to turn the call over to John Figueroa. John Figueroa Thanks Patrick, and good morning everyone, and thank you for joining us today on our call. Before we provide our prospective on our third quarter results and the key drivers behind our continued success through the start for the second half of the year, I’d like to give an update on where we stand with our $15 per-share offer for PharMerica. Following our remarks, we’ll be happy to answer your questions.
As most of you know, we recently extended our $15 per-share tender offer for PharMerica. We are pleased with the initial response from PharMerica’s investors, reflecting a 47% participation rate in that offer.A large number of PharMerica shareholders sent a clear message that they are supportive of the offer, and would prefer our two great companies to negotiate a neutrally acceptable transaction without further delay. While it remains our strong preference to negotiate a neutrally acceptable transaction with PharMerica, we will continue to move forward with the regulatory approval process. We are determined, but disciplined and look forward to bringing our companies together soon. With respect to the regulatory approval process, we are working closely with the Federal Trade Commission to comply with their second request. I do not have a timeline for when we expect to complete the process at this point. However, we would not pursue a transaction unless we believe we could close expeditiously. I believe the institutional pharmacy industry has been very competitive throughout history. And that the combination of our two company’s would not alter that. I believe the time for the transaction of this kind is now. Any significant delay could result in both company’s losing the opportunity to realize the full strategic and cost savings benefit of such a combination. I believe it is consistent with the country’s effort to lower overall healthcare cost, and is expected to help customers manage and respond to on-going industry pressures. And with the inherent demand within our industry, due to the aging population, I believe we have an obligation to accelerate the efficiency of our industry while improving health outcomes for the residents we serve. Now, turning to the third quarter. We are pleased with our solid third quarter results, which reflect the progress we are making to becoming more operationally driven, and customer-focused company. We continue to execute on our operating objectives, while establishing new ones. And we remain focused on continuing to drive enhanced value for our shareholders, customers, and other important stakeholders.
For the quarter, we generated adjusted EPS of $0.54, which represented both a sequential increase and improvement from the comparable prior year period. This represents our second consecutive quarter of year-over-year growth in quarterly EPS, which underscores the continued progress we are achieving in executing our operating plan.Our third quarter results were driven largely by an improved operating leverage with both gross margin and operating margin expanding approximately 80 basis points sequentially. We also continued to generate very robust cash flows, with cash flows from continuing operations 22% higher sequentially, and 44% greater than the third quarter of last year. Read the rest of this transcript for free on seekingalpha.com