McKesson Reports Fiscal 2021 Fourth-Quarter and Full-Year Results
McKesson Corporation (NYSE:MCK) reported Q4 and FY21 results, showing FY21 revenues of $238.2 billion, a 3% increase. Q4 revenues were $59.1 billion, up 1%. Adjusted earnings per diluted share rose 15% for FY21 to $17.21. However, the company faced a significant loss of $28.26 per diluted share from continuing operations due to an $8.1 billion opioid-related liability. McKesson expects FY22 adjusted earnings per diluted share between $18.85 and $19.45, reflecting projected revenue growth of 3% to 6% and continued strong cash flow generation.
- FY21 adjusted earnings per diluted share increased by 15% to $17.21.
- Generated $3.9 billion in Free Cash Flow in FY21.
- Q4 Adjusted Earnings per diluted share increased by 18% to $5.05.
- Anticipates FY22 adjusted earnings per diluted share between $18.85 and $19.45.
- Reported a loss of $28.26 per diluted share from continuing operations, including an $8.1 billion expense accrual for opioid-related claims.
- Q4 earnings per diluted share decreased by 29% compared to the previous year.
McKesson Corporation (NYSE:MCK) today reported results for the fourth quarter and fiscal year ended March 31, 2021.
Fiscal 2021 Fourth-Quarter and Year-to-Date Result Summary
|
|
Fourth-Quarter |
|
Year-to-Date |
||||||||||||||||||
($ in millions, except per share amounts) |
|
FY21 |
|
FY20 |
|
Change |
|
FY21 |
|
FY20 |
|
Change |
||||||||||
Revenues |
|
$ |
59,142 |
|
|
$ |
58,535 |
|
|
1 |
% |
|
$ |
238,228 |
|
|
$ |
231,051 |
|
|
3 |
% |
Income (loss) from Continuing Operations1 |
|
666 |
|
|
1,015 |
|
|
(34 |
) |
|
(4,538 |
) |
|
906 |
|
|
(601 |
) |
||||
Adjusted Earnings1,2 |
|
810 |
|
|
745 |
|
|
9 |
|
|
2,788 |
|
|
2,716 |
|
|
3 |
|
||||
Earnings (loss) per Diluted Share1 |
|
4.15 |
|
|
5.82 |
|
|
(29 |
) |
|
(28.26 |
) |
|
4.99 |
|
|
(666 |
) |
||||
Adjusted Earnings per Diluted Share1,2 |
|
5.05 |
|
|
4.27 |
|
|
18 |
|
|
17.21 |
|
|
14.95 |
|
|
15 |
|
||||
1Reflects continuing operations attributable to McKesson, net of tax |
||||||||||||||||||||||
2Represents a non-GAAP financial measure; refer to the reconciliations of non-GAAP financial measures included in accompanying schedules |
||||||||||||||||||||||
“Our notable performance in fiscal 2021 reflects the continued momentum in our businesses and is a testament to the leadership role McKesson plays in the healthcare supply chain. McKesson’s differentiated capabilities make us the partner of choice for our customers and government entities in their COVID-19 response efforts. I am proud of our employees and what we have accomplished together,” said Brian Tyler, chief executive officer. “Despite the dynamic macro environment, the business demonstrated strong execution as we grew Adjusted Earnings per diluted share by
“As we enter fiscal 2022, our top priorities remain the safety of our employees, the success of our customers, and fulfilling our leadership responsibility as the centralized distributor of COVID-19 vaccines and ancillary supplies in the U.S.,” Mr. Tyler continued. “We have positioned the business for long-term growth through strategic investments in the areas of oncology and biopharma services and successful transformation of our operating model. Our accomplishments in fiscal 2021 are the foundation for the future and we remain confident in our ability to create long-term value for our shareholders.”
Fourth-quarter revenues were
Fourth-quarter earnings per diluted share from continuing operations was
Fourth-quarter Adjusted Earnings per diluted share was
Full-year Adjusted Earnings per diluted share was
For the full year, McKesson returned
Business Highlights
- U.S. Pharmaceutical’s operational excellence and scaled distribution network was highlighted by the successful distribution of over 150 million COVID-19 vaccines through April 30, 2021.
- McKesson continued to invest in Ontada, the company’s differentiated oncology technology and insights business and also joined MYLUNG, a collaborative real-world research consortium designed to advance precision medicine for non-small cell lung cancer patients.
- Prescription Technology Solutions finished fiscal 2021 with positive momentum and Access for More Patients (AMP) contributed to profit growth in the fourth quarter.
- Medical-Surgical Solutions played a central role in the COVID-19 response efforts, assembling and distributing the ancillary supply kits needed for COVID-19 vaccinations and distributing COVID-19 tests to healthcare provider customers.
Segment Financials
U.S. Pharmaceutical Segment
Fourth-Quarter:
-
Revenues were
$47.0 billion , an increase of3% , driven by market growth and higher volumes from retail national account customers, partially offset by the prior year acceleration in demand driven by the onset of the COVID-19 pandemic and branded to generic conversions. -
Segment Operating Profit was
$892 million . Adjusted Segment Operating Profit was$813 million , an increase of7% from a year ago, driven by the contribution from COVID-19 vaccine distribution, offset by the prior year acceleration in demand driven by the onset of the COVID-19 pandemic and higher operating costs to support oncology growth initiatives.
Full-Year:
-
Revenues were
$189.3 billion , an increase of4% , driven by market growth and higher specialty volumes, partially offset by branded to generic conversions. -
Segment Operating Profit was
$2.8 billion . Adjusted Segment Operating Profit was$2.7 billion , an increase of3% from a year ago, driven by growth in distribution of specialty products to providers and the contribution from COVID-19 vaccine distribution, offset by the prior year acceleration in demand driven by the onset of the COVID-19 pandemic and higher operating costs to support oncology growth initiatives.
Prescription Technology Solutions Segment
Fourth-Quarter:
-
Revenues were
$789 million , an increase of7% , driven by higher volumes of technology and service offerings to support biopharma customers. -
Segment Operating Profit was
$125 million . Adjusted Segment Operating Profit was$146 million , an increase of11% , driven by organic growth from access and adherence solutions including the contribution from AMP.
Full-Year:
-
Revenues were
$2.9 billion , an increase of7% , driven by higher volumes of technology and service offerings to support biopharma customers. -
Segment Operating Profit was
$395 million . Adjusted Segment Operating Profit was$467 million , flat to prior year. Organic growth from access and adherence solutions was offset by higher operating costs to support biopharma services growth initiatives.
Medical-Surgical Solutions Segment
Fourth-Quarter:
-
Revenues were
$2.7 billion , an increase of23% , driven by demand for COVID-19 tests. -
Segment Operating Profit was
$171 million . Adjusted Segment Operating Profit was$192 million , an increase of13% , driven by demand for COVID-19 tests and the contribution from kitting and distribution of ancillary supplies for the U.S. government’s COVID-19 vaccine program, partially offset by inventory charges on certain personal protective equipment (PPE) incurred to support customers through the extraordinary demand related to the COVID-19 pandemic.
Full-Year:
-
Revenues were
$10.1 billion , an increase of22% , driven by demand for COVID-19 tests and personal protective equipment in the Primary Care and Extended Care businesses. -
Segment Operating Profit was
$707 million . Adjusted Segment Operating Profit was$805 million , an increase of19% , driven by demand for COVID-19 tests and the contribution from kitting and distribution of ancillary supplies for the U.S. government’s COVID-19 vaccine program, partially offset by inventory charges on certain PPE and related products.
International Segment
Fourth-Quarter:
-
Revenues were
$8.6 billion . On an FX-adjusted basis, revenues were$7.9 billion , a decline of18% , driven by the contribution of McKesson's German wholesale business to a joint venture with Walgreens Boots Alliance. -
Segment Operating Profit was
$76 million . On an FX-adjusted basis, Adjusted Segment Operating Profit was$126 million , a decline of8% .
Full-Year:
-
Revenues were
$36.0 billion . On an FX-adjusted basis, revenues were$34.9 billion , a decline of9% , driven by the contribution of McKesson's German wholesale business to a joint venture with Walgreens Boots Alliance. -
Segment Operating Loss was (
$37) million , primarily driven by a GAAP-only pre-tax long-lived asset impairment charge of$115 million . On an FX-adjusted basis, Adjusted Segment Operating Profit was$466 million , an increase of1% .
Company Updates
-
McKesson’s commitment to transform its operating model resulted in annual pre-tax cost savings in excess of
$400 million , achieving the company’s three-year target of$400 million to$500 million by the end of Fiscal 2021. - Susan Shiff joined McKesson as president of Ontada, the company's oncology technology and insights business within the U.S. Pharmaceutical segment.
- As part of the company’s strategy and actions towards better health for people and the planet, McKesson committed to set science-based targets to reduce the company’s greenhouse gas emissions.
Fiscal 2022 Outlook
McKesson expects full-year fiscal 2022 Adjusted Earnings per diluted share of
The fiscal 2022 outlook is based on the following key assumptions and expectations and is subject to risks and uncertainties such as those described in the Cautionary Statements below:
Fiscal 2022 Outlook |
||
Revenues |
|
|
Adjusted Operating Profit |
|
|
Adjusted Effective Tax Rate |
|
|
Adjusted Earnings per Diluted Share1 |
|
|
Share repurchases |
|
Approximately |
Free Cash Flow |
|
|
1Reflects continuing operations attributable to McKesson, net of tax |
||
Note: Percentages represent year-over-year change versus fiscal 2021 |
||
Additional modeling considerations will be provided in the earnings call presentation.
Other remaining businesses
Other reflects equity earnings and charges for retrospective periods for the company's previous investment in Change Healthcare, which was separated from the company during the fourth quarter of fiscal 2020.
Conference Call Details
The company has scheduled a conference call for today, Thursday, May 6th at 4:30 PM ET to discuss the company’s financial results. A live audio webcast of the conference call will be available on McKesson’s Investor Relations website at http://investor.mckesson.com. An archive of the conference call will also be available on the company’s Investor Relations website at http://investor.mckesson.com.
Upcoming Investor Events
McKesson management will be participating in the following investor conferences:
- BofA Securities Virtual 2021 Healthcare Conference, May 13, 2021
- Goldman Sachs 42nd Annual Global Healthcare Conference, June 8, 2021
Audio webcasts will be available live and archived on the company’s Investor Relations website at http://investor.mckesson.com. A complete listing of upcoming events for the investment community, including details and updates, will be available on the company’s Investor Relations website.
Non-GAAP Financial Measures
GAAP refers to the U.S. generally accepted accounting principles. This press release includes GAAP financial measures as well as Non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted Other Income, Adjusted Equity Income from Change Healthcare, Adjusted Income Tax Expense, Adjusted Earnings, Adjusted Earnings per Diluted Share, Adjusted Segment Operating Profit, Adjusted Segment Operating Profit Margin, Adjusted Corporate Expenses, Adjusted Operating Profit, FX-Adjusted results and Free Cash Flow which are financial measures not calculated in accordance with GAAP. Refer to the “Supplemental Non-GAAP Financial Information” section of the accompanying financial statement tables for the definitions and usefulness of the Company’s Non-GAAP financial measures and the attached schedules for reconciliations of the differences between the Non-GAAP financial measures and their most directly comparable GAAP financial measures.
The Company does not provide forward-looking guidance on a GAAP basis as McKesson is unable to provide a quantitative reconciliation of this forward-looking Non-GAAP measure to the most directly comparable forward-looking GAAP measure, without unreasonable effort, because McKesson cannot reliably forecast LIFO inventory-related adjustments, gains from antitrust legal settlements, restructuring, impairment and related charges, and other adjustments, which are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially.
Cautionary Statements
Except for historical information contained in this press release, matters discussed may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve risks and uncertainties that could cause actual results to differ materially from those in those statements. It is not possible to identify all such risks and uncertainties. The reader should not place undue reliance on forward-looking statements, such as financial performance forecasts, which speak only as of the date they are first made. Except to the extent required by law, the company undertakes no obligation to publicly update forward-looking statements. Forward-looking statements may be identified by their use of terminology such as “believes”, “expects”, “anticipates”, “may”, “will”, “should”, “seeks”, “approximately”, “intends”, “plans”, “estimates” or the negative of these words or other comparable terminology. The discussion of financial trends, strategy, plans, assumptions or intentions may also include forward-looking statements. We encourage investors to read the important risk factors described in the company’s Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission.
These risk factors include, but are not limited to: we experience costly and disruptive legal disputes and settlements, including regarding our role in distributing controlled substances such as opioids; we might experience losses not covered by insurance; we might be adversely impacted by changes in tax legislation or challenges to our tax positions; we from time to time record significant charges from impairment to goodwill, intangibles and other assets or investments; we experience cybersecurity incidents and might experience significant computer system compromises or data breaches; we might experience significant problems with information systems or networks; we may be unsuccessful in retail pharmacy profitability; we might be harmed by large customer purchase reductions, payment defaults or contract non-renewal; our contracts with government entities involve future funding and compliance risks; we might be harmed by changes in our relationships or contracts with suppliers; we might be adversely impacted by healthcare reform such as changes in pricing and reimbursement models; we might be adversely impacted by changes or disruptions in product supply and we have experienced and may experience difficulties in sourcing products and changes in pricing due to the effects of the COVID-19 pandemic on supply chains; we might be adversely impacted as a result of our distribution of generic pharmaceuticals; we might be adversely impacted by an economic slowdown (including the effects we have experienced from the COVID-19 pandemic) or recession and by disruption in capital and credit markets that might impede our access credit, increase our borrowing costs and impair the financial soundness of our customers and suppliers; we might be adversely impacted by fluctuations in foreign currency exchange rates; we might be adversely impacted by events outside of our control, such as widespread public health issues (including the effects we have experienced from the COVID-19 pandemic), natural disasters, political events and other catastrophic events; we may be adversely affected by global climate change or by legal, regulatory or market responses to such change; and we face uncertainties and risks related to vaccination distribution and related ancillary supply kit programs.
About McKesson Corporation
McKesson Corporation is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information solutions. McKesson partners with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare to help provide the right medicines, medical products and healthcare services to the right patients at the right time, safely and cost-effectively. United by our ICARE shared principles, our employees work every day to innovate and deliver opportunities that make our customers and partners more successful - all for the better health of patients. McKesson has been named a “Most Admired Company” in the healthcare wholesaler category by FORTUNE, a “Best Place to Work” by the Human Rights Campaign Foundation, and a top military-friendly company by Military Friendly. For more information, visit https://www.mckesson.com/.
Schedule 1 |
|||||||||||||||||||||||||
McKESSON CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP (unaudited) (in millions, except per share amounts) |
|||||||||||||||||||||||||
|
Three Months Ended March 31, |
|
|
|
Years Ended March 31, |
|
|
||||||||||||||||||
|
2021 |
|
|
2020 |
|
|
Change |
|
2021 |
|
|
2020 |
|
|
Change |
||||||||||
Revenues |
$ |
59,142 |
|
|
|
$ |
58,535 |
|
|
|
1 |
% |
|
$ |
238,228 |
|
|
|
$ |
231,051 |
|
|
|
3 |
% |
Cost of sales |
(55,845 |
) |
|
|
(55,199 |
) |
|
|
1 |
|
|
(226,080 |
) |
|
|
(219,028 |
) |
|
|
3 |
|
||||
Gross profit |
3,297 |
|
|
|
3,336 |
|
|
|
(1 |
) |
|
12,148 |
|
|
|
12,023 |
|
|
|
1 |
|
||||
Selling, distribution, general, and administrative expenses |
(2,224 |
) |
|
|
(2,403 |
) |
|
|
(7 |
) |
|
(8,849 |
) |
|
|
(9,182 |
) |
|
|
(4 |
) |
||||
Claims and litigation charges, net |
— |
|
|
|
— |
|
|
|
NM |
|
|
(7,936 |
) |
|
|
(82 |
) |
|
|
NM |
|
||||
Goodwill impairment charges |
— |
|
|
|
— |
|
|
|
NM |
|
|
(69 |
) |
|
|
(2 |
) |
|
|
NM |
|
||||
Restructuring, impairment, and related charges, net |
(63 |
) |
|
|
(64 |
) |
|
|
(2 |
) |
|
(334 |
) |
|
|
(268 |
) |
|
|
25 |
|
||||
Total operating expenses |
(2,287 |
) |
|
|
(2,467 |
) |
|
|
(7 |
) |
|
(17,188 |
) |
|
|
(9,534 |
) |
|
|
80 |
|
||||
Operating income (loss) |
1,010 |
|
|
|
869 |
|
|
|
16 |
|
|
(5,040 |
) |
|
|
2,489 |
|
|
|
(302 |
) |
||||
Other income, net |
71 |
|
|
|
27 |
|
|
|
163 |
|
|
223 |
|
|
|
12 |
|
|
|
NM |
|
||||
Equity earnings and charges from investment in Change Healthcare Joint Venture |
— |
|
|
|
370 |
|
|
|
(100 |
) |
|
— |
|
|
|
(1,108 |
) |
|
|
(100 |
) |
||||
Interest expense |
(52 |
) |
|
|
(65 |
) |
|
|
(20 |
) |
|
(217 |
) |
|
|
(249 |
) |
|
|
(13 |
) |
||||
Income (loss) from continuing operations before income taxes |
1,029 |
|
|
|
1,201 |
|
|
|
(14 |
) |
|
(5,034 |
) |
|
|
1,144 |
|
|
|
(540 |
) |
||||
Income tax benefit (expense) |
(316 |
) |
|
|
(129 |
) |
|
|
145 |
|
|
695 |
|
|
|
(18 |
) |
|
|
NM |
|
||||
Income (loss) from continuing operations |
713 |
|
|
|
1,072 |
|
|
|
(33 |
) |
|
(4,339 |
) |
|
|
1,126 |
|
|
|
(485 |
) |
||||
Income (loss) from discontinued operations, net of tax |
— |
|
|
|
6 |
|
|
|
(100 |
) |
|
(1 |
) |
|
|
(6 |
) |
|
|
(83 |
) |
||||
Net income (loss) |
713 |
|
|
|
1,078 |
|
|
|
(34 |
) |
|
(4,340 |
) |
|
|
1,120 |
|
|
|
(488 |
) |
||||
Net income attributable to noncontrolling interests |
(47 |
) |
|
|
(57 |
) |
|
|
(18 |
) |
|
(199 |
) |
|
|
(220 |
) |
|
|
(10 |
) |
||||
Net income (loss) attributable to McKesson Corporation |
$ |
666 |
|
|
|
$ |
1,021 |
|
|
|
(35 |
)% |
|
$ |
(4,539 |
) |
|
|
$ |
900 |
|
|
|
(604 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings (loss) per common share attributable to McKesson Corporation (a) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted (b) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Continuing operations |
$ |
4.15 |
|
|
|
$ |
5.82 |
|
|
|
(29 |
)% |
|
$ |
(28.26 |
) |
|
|
$ |
4.99 |
|
|
|
(666 |
)% |
Discontinued operations |
— |
|
|
|
0.03 |
|
|
|
(100 |
) |
|
— |
|
|
|
(0.04 |
) |
|
|
(100 |
) |
||||
Total |
$ |
4.15 |
|
|
|
$ |
5.85 |
|
|
|
(29 |
)% |
|
$ |
(28.26 |
) |
|
|
$ |
4.95 |
|
|
|
(671 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Basic |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Continuing operations |
$ |
4.19 |
|
|
|
$ |
5.86 |
|
|
|
(28 |
)% |
|
$ |
(28.26 |
) |
|
|
$ |
5.01 |
|
|
|
(664 |
)% |
Discontinued operations |
— |
|
|
|
0.03 |
|
|
|
(100 |
) |
|
— |
|
|
|
(0.03 |
) |
|
|
(100 |
) |
||||
Total |
$ |
4.19 |
|
|
|
$ |
5.89 |
|
|
|
(29 |
)% |
|
$ |
(28.26 |
) |
|
|
$ |
4.98 |
|
|
|
(667 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Dividends declared per common share |
$ |
0.42 |
|
|
|
$ |
0.41 |
|
|
|
|
|
$ |
1.67 |
|
|
|
$ |
1.62 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted |
160.5 |
|
|
|
174.5 |
|
|
|
(8 |
)% |
|
160.6 |
|
|
|
181.6 |
|
|
|
(12 |
)% |
||||
Basic |
158.8 |
|
|
|
173.3 |
|
|
|
(8 |
) |
|
160.6 |
|
|
|
180.6 |
|
|
|
(11 |
) |
||||
(a) |
Certain computations may reflect rounding adjustments. |
|
(b) |
Net loss per diluted share for the year ended March 31, 2021 is calculated by excluding dilutive securities from the denominator due to their antidilutive effects. |
NM Computation not meaningful
Refer to our applicable filings with the SEC for additional disclosures including our Quarterly Reports on Form 10-Q for fiscal 2021 and 2020 as well as our Annual Reports on Form 10-K for fiscal 2021 and 2020.
Schedule 2 |
|||||||||||||||||||||||||
McKESSON CORPORATION RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions, except per share amounts) |
|||||||||||||||||||||||||
|
Three Months Ended March 31, |
|
|
|
|
Years Ended March 31, |
|
|
|||||||||||||||||
|
2021 |
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
Change |
|||||||||
Income (loss) from continuing operations (GAAP) |
$ |
713 |
|
|
|
$ |
1,072 |
|
|
|
(33 |
)% |
|
$ |
(4,339 |
) |
|
|
$ |
1,126 |
|
|
|
(485 |
)% |
Net income attributable to noncontrolling interests (GAAP) |
(47 |
) |
|
|
(57 |
) |
|
|
(18 |
) |
|
(199 |
) |
|
|
(220 |
) |
|
|
(10 |
) |
||||
Income (loss) from continuing operations attributable to McKesson Corporation (GAAP) |
666 |
|
|
|
1,015 |
|
|
|
(34 |
)% |
|
(4,538 |
) |
|
|
906 |
|
|
|
(601 |
)% |
||||
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Amortization of acquisition-related intangibles (1) |
102 |
|
|
|
183 |
|
|
|
(44 |
) |
|
423 |
|
|
|
730 |
|
|
|
(42 |
) |
||||
Transaction-related expenses and adjustments (2) (3) (4) |
22 |
|
|
|
(364 |
) |
|
|
106 |
|
|
106 |
|
|
|
303 |
|
|
|
(65 |
) |
||||
LIFO inventory-related adjustments |
77 |
|
|
|
(138 |
) |
|
|
156 |
|
|
(38 |
) |
|
|
(252 |
) |
|
|
(85 |
) |
||||
Gains from antitrust legal settlements |
(181 |
) |
|
|
— |
|
|
|
NM |
|
(181 |
) |
|
|
(22 |
) |
|
|
723 |
|
|||||
Restructuring, impairment, and related charges, net (5) |
63 |
|
|
|
65 |
|
|
|
(3 |
) |
|
337 |
|
|
|
264 |
|
|
|
28 |
|
||||
Claims and litigation charges, net (6) (7) (8) |
— |
|
|
|
— |
|
|
|
NM |
|
7,936 |
|
|
|
82 |
|
|
|
NM |
||||||
Other adjustments, net (9) (10) (11) (12) |
— |
|
|
|
23 |
|
|
|
(100 |
) |
|
124 |
|
|
|
1,351 |
|
|
|
(91 |
) |
||||
Income tax effect on pre-tax adjustments |
61 |
|
|
|
(39 |
) |
|
|
256 |
|
(1,377 |
) |
|
|
(646 |
) |
|
|
113 |
|
|||||
Net income attributable to noncontrolling interests effect on other adjustments, net (11) |
— |
|
|
|
— |
|
|
|
NM |
|
(4 |
) |
|
|
— |
|
|
|
NM |
||||||
Adjusted Earnings (Non-GAAP) |
$ |
810 |
|
|
|
$ |
745 |
|
|
|
9 |
% |
|
$ |
2,788 |
|
|
|
$ |
2,716 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted weighted-average common shares outstanding |
160.5 |
|
|
|
174.5 |
|
|
|
(8 |
)% |
|
162.0 |
|
|
|
181.6 |
|
|
|
(11 |
)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings (loss) per diluted common share from continuing operations attributable to McKesson Corporation (GAAP) (a) (b) |
$ |
4.15 |
|
|
|
$ |
5.82 |
|
|
|
(29 |
)% |
|
$ |
(28.26 |
) |
|
|
$ |
4.99 |
|
|
|
(666 |
)% |
After-tax adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Amortization of acquisition-related intangibles |
0.51 |
|
|
|
0.79 |
|
|
|
(35 |
) |
|
2.02 |
|
|
|
3.06 |
|
|
|
(34 |
) |
||||
Transaction-related expenses and adjustments |
0.13 |
|
|
|
(2.14 |
) |
|
|
106 |
|
|
0.62 |
|
|
|
0.98 |
|
|
|
(37 |
) |
||||
LIFO inventory-related adjustments |
0.36 |
|
|
|
(0.58 |
) |
|
|
162 |
|
|
(0.17 |
) |
|
|
(1.03 |
) |
|
|
(83 |
) |
||||
Gains from antitrust legal settlements |
(0.84 |
) |
|
|
— |
|
|
|
NM |
|
(0.83 |
) |
|
|
(0.09 |
) |
|
|
822 |
|
|||||
Restructuring, impairment, and related charges, net |
0.30 |
|
|
|
0.28 |
|
|
|
7 |
|
|
1.71 |
|
|
|
1.16 |
|
|
|
47 |
|
||||
Claims and litigation charges, net |
0.45 |
|
|
|
— |
|
|
|
NM |
|
41.22 |
|
|
|
0.33 |
|
|
|
NM |
||||||
Other adjustments, net |
(0.01 |
) |
|
|
0.10 |
|
|
|
(110 |
) |
|
0.66 |
|
|
|
5.55 |
|
|
|
(88 |
) |
||||
Adjusted Earnings per Diluted Share (Non-GAAP) (b) (c) |
$ |
5.05 |
|
|
|
$ |
4.27 |
|
|
|
18 |
% |
|
$ |
17.21 |
|
|
|
$ |
14.95 |
|
|
|
15 |
% |
(a) |
Certain computations may reflect rounding adjustments. |
|
(b) |
We calculate loss per diluted common share from continuing operations attributable to McKesson Corporation (GAAP) for the year ended March 31, 2021 using a weighted average of 160.6 million common shares, which excludes dilutive securities from the denominator due to their antidilutive effect when calculating a net loss per diluted share. We calculate adjusted earnings per diluted share (Non-GAAP) for the year ended March 31, 2021 on a fully diluted basis, using a weighted average of 162.0 million common shares. Because we show the GAAP to Non-GAAP per share reconciling items on a fully diluted basis, any footing differences in those items are due to different weighted average share counts. This methodology results in per share difference of |
|
(c) |
Adjusted earnings per diluted share on an FX-adjusted basis for the three months and year ended March 31, 2021 was |
NM Computation not meaningful
Refer to the section entitled "Financial Statement Notes" of this release.
For more information relating to the Adjusted Earnings (Non-GAAP), Adjusted Earnings per Diluted Share (Non-GAAP), and FX-Adjusted (Non-GAAP) definitions, refer to the section entitled “Supplemental Non-GAAP Financial Information” of this release.
Schedule 2 (continued) |
|||||||||||||||||||||||||
McKESSON CORPORATION RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) |
|||||||||||||||||||||||||
|
Three Months Ended March 31, |
|
|
|
Years Ended March 31, |
|
|
||||||||||||||||||
|
2021 |
|
|
2020 |
|
|
Change |
|
2021 |
|
|
2020 |
|
|
Change |
||||||||||
Gross profit (GAAP) |
$ |
3,297 |
|
|
|
$ |
3,336 |
|
|
|
(1 |
)% |
|
$ |
12,148 |
|
|
|
$ |
12,023 |
|
|
|
1 |
% |
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Transaction-related expenses and adjustments |
— |
|
|
|
1 |
|
|
|
(100 |
) |
|
— |
|
|
|
1 |
|
|
|
(100 |
) |
||||
LIFO inventory-related adjustments |
77 |
|
|
|
(138 |
) |
|
|
156 |
|
|
(38 |
) |
|
|
(252 |
) |
|
|
(85 |
) |
||||
Gains from antitrust legal settlements |
(181 |
) |
|
|
— |
|
|
|
NM |
|
|
(181 |
) |
|
|
(22 |
) |
|
|
723 |
|
||||
Restructuring, impairment, and related charges, net |
— |
|
|
|
1 |
|
|
|
(100 |
) |
|
3 |
|
|
|
(4 |
) |
|
|
175 |
|
||||
Adjusted Gross Profit (Non-GAAP) |
$ |
3,193 |
|
|
|
$ |
3,200 |
|
|
|
— |
% |
|
$ |
11,932 |
|
|
|
$ |
11,746 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total operating expenses (GAAP) |
$ |
(2,287 |
) |
|
|
$ |
(2,467 |
) |
|
|
(7 |
)% |
|
$ |
(17,188 |
) |
|
|
$ |
(9,534 |
) |
|
|
80 |
% |
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Amortization of acquisition-related intangibles |
101 |
|
|
|
119 |
|
|
|
(15 |
) |
|
422 |
|
|
|
462 |
|
|
|
(9 |
) |
||||
Transaction-related expenses and adjustments (4) |
21 |
|
|
|
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "McKesson Reports Fiscal 2021 Fourth-Quarter and Full-Year Results FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What were McKesson's Q4 2021 revenue results?",
"acceptedAnswer": {
"@type": "Answer",
"text": "McKesson reported Q4 revenues of $59.1 billion, a 1% increase from the previous year."
}
},
{
"@type": "Question",
"name": "How did McKesson perform in the fiscal year 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "For FY21, McKesson generated revenues of $238.2 billion, marking a 3% growth compared to FY20."
}
},
{
"@type": "Question",
"name": "What was McKesson's earnings per diluted share for FY21?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The adjusted earnings per diluted share for FY21 were $17.21, an increase of 15% from the previous year."
}
},
{
"@type": "Question",
"name": "What is McKesson's outlook for FY22?",
"acceptedAnswer": {
"@type": "Answer",
"text": "McKesson anticipates FY22 adjusted earnings per diluted share between $18.85 and $19.45, with 3% to 6% revenue growth."
}
}
]
}
FAQ
What were McKesson's Q4 2021 revenue results?
McKesson reported Q4 revenues of $59.1 billion, a 1% increase from the previous year.
How did McKesson perform in the fiscal year 2021?
For FY21, McKesson generated revenues of $238.2 billion, marking a 3% growth compared to FY20.
What was McKesson's earnings per diluted share for FY21?
The adjusted earnings per diluted share for FY21 were $17.21, an increase of 15% from the previous year.
What is McKesson's outlook for FY22?
McKesson anticipates FY22 adjusted earnings per diluted share between $18.85 and $19.45, with 3% to 6% revenue growth.
McKesson Corporation
NYSE:MCKMCK RankingsMCK Latest NewsMCK Stock Data
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Medical Distribution
Wholesale-drugs, Proprietaries & Druggists' Sundries
United States of America
IRVING
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