Omnicare, a Fortune 500 company that provides pharmaceutical care for the elderly, has reported a net income of $31.7 million for the fourth quarter of 2008, compared with a net loss of $20.8 million for the same period in 2007.
The company’s earnings per diluted share was 27 cents for the fourth quarter of 2008, versus a net loss per share of 17 cents for the same quarter in 2007. Sales were $1,598.1 million for the 2008 quarter, compared with $1,556.8 million for the same period in 2007.
Joel Gemunder, Omnicare’s president and chief executive officer, said, “In addition to the benefit of certain favorable trends in the pharmaceutical marketplace, the fourth quarter saw strong performance in our institutional pharmacy and specialty pharmacy businesses, progress in our productivity improvement and cost reduction initiatives, including the Omnicare Full Potential Plan, as well as a sequential increase in the number of beds served.”
For the full year, net income was $156.1 million as compared with $114.1 million in 2007. Sales reached $6,310.6 million for 2008, compared with $6,220 million in 2007.
The company’s cash flow from operations for the quarter ended December 31, 2008 increased to $106.3 million from $74.3 million in the comparable prior-year quarter. Full-year 2008 cash flow from operations was $438.2 million, as compared to $505.5 million for the full year 2007.
During 2008, the company repaid $89.1 million in debt, and at December 31, 2008 had $217 million in cash on its balance sheet. Total debt to total capital at December 31, 2008 was 44.4%, down approximately 180 basis points from December 31, 2007.
Omnicare's pharmacy services business generated revenues of $1,549.0 million for the fourth quarter of 2008 as compared with sales of $1,507.8 million in the fourth quarter of 2007.
The company's CRO business generated revenues of $49.1 million on a GAAP basis for the fourth quarter of 2008 as compared with the $49.0 million in revenues generated in the same prior-year quarter.
Mr Gemunder, said: “Given the strategies we have in place, the advantages of our scale position and the ongoing trends in the pharmaceutical marketplace, we believe we are positioned for continued growth. As a result, we expect Omnicare’s diluted earnings per share, as adjusted to exclude special items such as the impact of newly adopted accounting rules, to be in the range of $2.50 to $2.70 for the full year 2009.
“Further, we also believe there is significant opportunity for Omnicare in increasing access to drug therapy for the broader population through our hospice pharmacy and specialty pharmacy services businesses."
