CVS Health To Host 2014 Analyst Day For The Investment Community

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WOONSOCKET, R.I., Dec. 5, 2014 /PRNewswire/ --CVS Health Corporation (NYSE:CVS) will hold its annual Analyst Day in New York City on Tuesday, December 16, 2014, beginning at 8:00 a.m. (ET). Senior members of the CVS Health leadership team will provide an in-depth review of the company's strategies to drive long-term growth and enhance shareholder value. The company will also provide 2015 earnings guidance during the event.

An audio and video webcast of the event will be broadcast simultaneously on the Investor Relations portion of the CVS Health website for all interested parties, and will be archived and available for a one-year period. Presentations and accompanying material will also be available on the website shortly before the event begins. To access the webcast or an archive of the event, visit http://investors.cvshealth.com.

About CVS Health

CVS Health is a pharmacy innovation company helping people on their path to better health. Through our 7,700 retail pharmacies, more than 900 walk-in medical clinics, a leading pharmacy benefits manager with nearly 65 million plan members, and expanding specialty pharmacy services, CVS Health enables people, businesses and communities to manage health in more affordable, effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at www.cvshealth.com.

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SOURCE CVS Health Corporation

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CVS Health Provides 2015 Guidance and Outlines Plans for Sustainable Enterprise Growth at Annual Analyst Day

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WOONSOCKET, R.I., Dec. 16, 2014 /PRNewswire/ --

Announces 27% Dividend Increase and
New $10 Billion Share Repurchase Authorization

Highlights of 2015 Guidance:

  • Adjusted EPS expected to be in the range of $5.05 to $5.19, up 12.5% to 15.75% (excluding the loss on early extinguishment of debt in 2014)
  • GAAP diluted EPS from continuing operations expected to be in the range of $4.77 to $4.91
  • Free cash flow expected to be between $5.9 billion and $6.2 billion
  • Cash from operations expected to be between $7.6 billion and $7.9 billion
  • Expect to complete approximately $6 billion in share repurchases

Declaring that it is positioned for today and preparing for tomorrow, CVS Health (NYSE: CVS) outlined the steps the company is taking to continue to meet the changing needs of payors, providers and customers at its annual Analyst Day in New York City today. The company also provided 2015 guidance and reviewed its 5-year steady state targets, highlighting how CVS Health plans to thrive while creating value for all of its stakeholders.

"We are winning in the marketplace and driving solid and sustainable growth," said Larry Merlo, president and chief executive officer of CVS Health. "We foresaw the changes ahead in the health care landscape and we built a suite of assets that will enable us to continue to capitalize on the opportunities created. Only CVS Health has an integrated enterprise model that brings differentiated, channel-agnostic solutions to the marketplace that our competitors simply cannot match. Our deep clinical expertise and insights across the enterprise enable us to deliver superior outcomes at a lower cost."

At the meeting, Dave Denton, executive vice president and chief financial officer, reaffirmed the company's guidance for 2014 and outlined CVS Health's guidance for 2015.The company expects to deliver adjusted earnings per share from continuing operations of $5.05 to $5.19 in 2015, an increase of 12.5% to 15.75% (excluding the loss on early extinguishment of debt in 2014), and GAAP diluted earnings per share from continuing operations of $4.77 to $4.91 per share.The company also expects to generate substantial free cash flow of $5.9 billion to $6.2 billion in 2015, and cash from operations of $7.6 billion to $7.9 billion in 2015.This guidance assumes the completion of $6 billion in share repurchases during 2015.

"We've established a solid track record of delivering on our promises, and our results prove that out. Looking ahead, we are targeting solid, long-term enterprise growth and expect to generate a significant amount of cash that will be available to enhance returns," said Denton. "Some of that cash will be used to invest in the business, such as through strategic, bolt-on acquisitions that drive continued share gains. The rest will be returned to our shareholders through dividends and value-enhancing share repurchases."

CVS Health highlighted its position as a pharmacy innovation company that utilizes a channel-agnostic, enterprise focus to fulfill its purpose of helping people on their path to better health while driving value for all stakeholders. In other presentations, CVS Health executives addressed how the company is preparing for the continued evolution of the health care delivery system through its pharmacy benefit management operations and unique specialty pharmacy assets as well as how the company is reinventing retail pharmacy, expanding access to care through CVS/minuteclinic and helping to create a more connected health care system to improve outcomes for patients while better managing costs for payors.

Merlo addressed how health reform has changed the payor landscape as millions of Americans have gained insurance coverage. Health reform is also driving the importance that health plans are playing in the health care marketplace now and into the future. CVS Health sees this as an opportunity to grow its enterprise share by continuing to serve these health plans through its innovative offerings, either as PBM clients or as strategic partners when the plans are not PBM clients.

In another growing trend, as specialty drug utilization is increasing and new treatments for complex conditions are coming to market at elevated price points, plan sponsors can expect to see specialty drug costs grow to nearly half of their total pharmacy spend.

"With rapid specialty pharmacy growth expected for the next several years," said Merlo, "plan sponsors will clearly need innovative solutions to stem the tide. We believe we are best-positioned, with an unmatched suite of specialty capabilities to holistically manage patients and help payors manage this spend in both the pharmacy and medical benefit."

Merlo predicted that the "retailization" of health care will continue to grow as more employers move their employees into consumer-directed health plans.

"We will be able to win in a connected health care system with our consumer-friendly offerings such as the convenience of CVS/pharmacy and the low-cost, transparent pricing model of CVS/minuteclinic. Both of these are trusted brands with name recognition to attract value-conscious consumers," said Merlo. "We are also expanding our digital offerings to better engage with customers, improve their experience and increase medication adherence. With the growing focus on population health, there has been a desire among physicians to increase communication and coordination with their patients' pharmacists and that is an area where we can excel."

Dividend Increase and New Share Repurchase Authorization
The company also announced that its board of directors approved a 27% increase in its quarterly cash dividend, to $0.35 per share on the common stock of the company. This increase translates to $1.40 per share annually, up 30 cents per share, and keeps the company solidly on track to meet its 2018 dividend payout ratio target of 35%. The quarterly dividend is payable on February 2, 2015, to holders of record on January 22, 2015.

In addition, the company announced that its board of directors approved a new share repurchase program for up to $10 billion of the company's outstanding common stock, reflecting the board's ongoing commitment to returning value to shareholders. The share repurchase authorization, which is effective immediately and is expected to be completed over a multi-year period, permits the company to effect the repurchases from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions. Combined with approximately $2.7 billion that remains on the share repurchase program approved by the board of directors in December of 2013, this new $10 billion share repurchase authorization makes available a total of approximately $12.7 billion for share repurchases.

Webcast
The company will simultaneously broadcast an audio and video webcast of the meeting for all interested parties through the Investor Relations section of the CVS Health website at http://cvshealth.com/investors. This webcast and supporting materials will be archived and available on the website for a one-year period following the meeting.

About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health. Through our 7,800 retail pharmacies, more than 900 walk-in medical clinics, a leading pharmacy benefits manager with nearly 65 million plan members, and expanding specialty pharmacy services, we enable people, businesses and communities to manage health in more affordable, effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at www.cvshealth.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. By their nature, all forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission filings, including those set forth in the Risk Factors section in our Annual Report on Form 10-K for the year ended December 31, 2013 and under the section entitled "Cautionary Statement Concerning Forward-looking Statements" in our most recently filed Quarterly Report on Form 10-Q.

Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, namely Free Cash Flow and Adjusted Earnings Per Share or "Adjusted EPS." In accordance with SEC regulations, you can find the definitions of the non-GAAP items mentioned, as well as the reconciliations to comparable GAAP measures, on the Investor Relations section of our website at http://cvshealth.com/investors.

Contacts:
Nancy Christal
Investor Relations
914.722.4704

Carolyn Castel
Corporate Communications
401.770.5717

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SOURCE CVS Health

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CVS Health To Host 2015 Analyst Day For The Investment Community

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WOONSOCKET, R.I., Dec. 4, 2015 /PRNewswire/ -- CVS Health Corporation (NYSE:CVS) will hold its annual Analyst Day inNew York CityonWednesday, December 16, 2015, beginning at8:00 a.m. (ET). Senior members of the CVS Health leadership team will provide an in-depth review of the company's strategies to drive long-term growth and enhance shareholder value. The company will also discuss 2016 earnings guidance during the event.

An audio and video webcast of the event will be broadcast simultaneously on the Investor Relations portion of the CVS Health website for all interested parties, and will be archived and available for a one-year period. Presentations and accompanying material will also be available on the website shortly before the event begins. To access the webcast or an archive of the event, visit http://investors.cvshealth.com.

About CVS Health

CVS Health is a pharmacy innovation company helping people on their path to better health. Through our more than 7,800 retail pharmacies, nearly 1,000 walk-in medical clinics, a leading pharmacy benefits manager with more than 70 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, CVS Health enables people, businesses and communities to manage health in more affordable, effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at www.cvshealth.com.

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SOURCE CVS Health

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CVS Health Raises Midpoint of 2016 Outlook at Annual Analyst Day; Announces 21% Dividend Increase for 2016; Reiterates Five-year Steady State Financial Targets

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Extensive Suite of Leading Assets with the Right Strategy for an Evolving Health Care Market;

Company Is Demonstrating Value for Patients, Payors, Providers and Shareholders; Always Looking Ahead for the Next Innovation to Help Solve the Cost-Quality-Access Conundrum in Health Care Continues to Generate Substantial Cash and Employ Disciplined Capital Allocation Practices; Remains Well-positioned to Drive Long-term, Sustainable Enterprise Growth

Provides 2016 Guidance, Raising Low End of Preliminary Range by $0.05 per Share:

  • Adjusted EPS expected to be in the range of $5.73 to $5.88, up 11.25% to 14.25%
  • GAAP diluted EPS from continuing operations expected to be in the range of $5.28 to $5.43
  • Free cash flow expected to be between $5.3 billion and $5.6 billion
  • Cash from operations expected to be between $7.6 billion and $7.9 billion
  • Expect to complete approximately $4 billion in share repurchases
  • Announced dividend increase of 21% to $1.70 per share annually

WOONSOCKET, R.I., December 16, 2015 – At its annual Analyst Day in New York City today, CVS Health (NYSE:CVS) raised the midpoint of its earnings outlook for 2016 and reiterated its five-year steady state targets, demonstrating how the Company is providing value for patients, payors, providers and shareholders in an evolving health care market.

“Over the past several years, CVS Health has been preparing for the changes in the health care landscape by expanding our extensive suite of leading assets and capabilities,” said Larry J. Merlo, president and chief executive officer of CVS Health. “We are now positioned more broadly than ever with the right strategy across the health care continuum to create real value by enhancing access, driving better health outcomes and reducing overall health care costs. We are the only health care company that is truly channel-agnostic, and we can help drive superior health outcomes as people move through the continuum of care. Our consumer expertise gives us an edge in the increasingly consumer-directed health care environment.”

Merlo declared, “We’ve built a one-of-a-kind company and we’re not standing still. Over the past year we have made long-term, value-enhancing investments and introduced innovative new products. We continued to add to our competitive advantage, expanding our core pharmacy business while broadening our reach into new health care channels. We have become an integrated health care enterprise and we manage the business through an enterprise lens. We hold leading positions in multiple interrelated health care and pharmacy areas, including retail pharmacy, pharmacy benefits management, specialty, infusion, clinical programs, retail clinics, medical claims editing and long-term care. No one is better positioned than CVS Health to respond to the health care challenges that millions of Americans face throughout their lifetimes.”

Key accomplishments in 2015 include strong financial expectations consistent with previous guidance; a strong 2016 selling season for the pharmacy benefit management business with $11.5 billion in net new business and a client retention rate of 98%; superior specialty revenue growth of approximately 33%, outperforming the rapidly-growing specialty market; enhanced generic sourcing through the Red Oak Sourcing venture with Cardinal Health; the acquisition of Omnicare, a leader in long term care pharmacy; the transaction to acquire and operate Target’s pharmacies and retail clinics; continued advancement of the company’s front store growth strategies with a focus on enhancing health and beauty offerings, store brands, personalization and digital; and elevated awareness of the CVS Health brand introduced last year.

“We know that prescription utilization is projected to continue to grow due to the aging population and a higher incidence of chronic disease,” Merlo said. “But we must also keep in mind that this spend has value as pharmacy care is the most cost-effective line of defense against mounting health care costs. Furthermore, we have more ways in which we can engage patients and help drive medication adherence, thus improving health outcomes and lowering overall health care costs.”

In order to address the high cost of prescription drugs, CVS Health will deliver more than $6.4 billion in incremental savings for PBM clients from 2012 through 2016 through formulary management strategies. Growth in pharmacy costs for our clients through September of this year slowed to 6.4%, as compared to 11.8% for full year 2014.

In addition, CVS Health is driving shareholder value with strong earnings and cash flow and disciplined capital allocation. At the meeting, Dave Denton, executive vice president and chief financial officer, reaffirmed the company’s guidance for 2015 and outlined details for CVS Health's guidance for 2016. He also reiterated the 5-year steady state targets he provided at the company’s Analyst Day in December of 2013.

2016 Guidance and Five-year Financial Targets

The company raised the midpoint of its 2016 outlook and now expects Adjusted EPS to be in the range of $5.73 to $5.88, reflecting solid year-over-year growth of 11.25% to 14.25%. The bottom end of the range was increased by $0.05 per share from the preliminary outlook provided on the company’s third quarter earnings call. This Adjusted EPS guidance excludes the effect of acquisition-related integration costs, and it assumes the completion of $4 billion in share repurchases during 2016. The Company expects to deliver free cash flow of $5.3 to $5.6 billion and cash flow from operations of $7.6 to $7.9. This free cash flow guidance includes approximately $500 million of acquisition-related cash outflows.

Dividend Increase

The company also announced that its board of directors approved a 21% increase in its quarterly cash dividend, to $0.425 per share on the common stock of the Company. The increase translates to $1.70 per share annually, up $0.30 per share. The increased quarterly dividend will be payable on February 2, 2016, to shareholders of record on January 22, 2016. This marks the company’s thirteenth consecutive year of dividend increases; since 2011, the compounded annual growth rate in dividends has been 28%.

“We continued to deliver on our promises in 2015, and our 2016 guidance is no exception”, said Dave Denton. “Our outlook for 2016 is nicely in line with the five-year steady state targets we provided in December of 2013, and we continue to target solid enterprise growth and the generation of a significant amount of cash that will be available to enhance returns. We will continue to utilize our free cash flow to drive returns for our shareholders through value-enhancing investments, dividends, and share repurchases.”

“Our strategic framework for enterprise growth is centered on growing our core pharmacy business while entering into new spaces in the health care market,” Merlo added. “While adding capabilities to enhance our core business, we will deepen relationships with payors and providers, enhance patient engagement, continue innovation in drug procurement and supply chain efficiencies and execute opportunistic bolt on acquisitions.”

Merlo concluded, “We remain very optimistic about the opportunities that the evolving health care market is creating for CVS Health. I firmly believe that we have the right strategy in this evolving market to capitalize on these opportunities and drive long-term, sustainable enterprise growth and shareholder value.”

Audio and Video Webcast

The company simultaneously broadcast an audio and video webcast of the meeting through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast and supporting materials will be archived and available on the website for a one-year period following the meeting.

About CVS Health

CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 7,900 retail drugstores, more than 1,000 walk-in medical clinics, a leading pharmacy benefits manager with more than 70 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, the Company enables people, businesses and communities to manage health in more affordable, effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. By their nature, all forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission filings, including those set forth in the Risk Factors section and under the section entitled “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, namely Free Cash Flow and Adjusted EPS. In accordance with SEC regulations, you can find the definitions of the Non-GAAP items mentioned, as well as the reconciliations to comparable GAAP measures, on the Investor Relations section of our website.

Contacts:

Nancy Christal
Investor Relations
401.770.3614

Carolyn Castel
Corporate Communications
401.770.5717
carolyn.castel@CVSHealth.com

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