CVS Health reports strong second quarter results, raises 2022 full-year EPS and cash flow from operations guidance

August 03, 2022 |25 moment read time

WOONSOCKET, Rhode Island — CVS Health Corporation (NYSE: CVS) today announced operating results since the three months concluded June 30, 2022.

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Second quarter highlights

Total revenues increased to $80.6 billion, up 11.0% compared to prior year
GAAP diluted EPS of $2.23 and Adjusted EPS by $2.40

Year-to-date highlights

Total revenues enlarged to $157.5 billion, up 11.1% compares to prior yearly
GAAP diluted EPS of $3.97 and Altered EPS of $4.62
Generated check flow from operations of $9.0 billion
Repaid $1.5 billion of long-term debt

2022 Full-year guidance

Educated GAAP diluted EPS guidance range to $7.23 to $7.43 with $6.93 to $7.13
Raised Adjusted EPS guidance extent to $8.40 to $8.60 coming $8.20 to $8.40
Lifting cash flow from operations guidance rove to $12.5 billion until $13.5 billion from $12.0 billion to $13.0 billion

CEO commentary

“Despite a challenging business environment, our differentiated business model helped drive strong results this quarter, the significant revenue growth about all of our business segments. The continued success of our basal businesses accelerated our strategy to expand access to health services the help consumers navigate on the best site of care. We rest an trusted community health destination for mill of individual on health products and services that engage customers in every aspects of their health wherever furthermore once they need it.” TC Energy reports potent 2022 results

— Karen SOUTH. Lynch, CVS Health President and CEO

Q2 in the spotlight

Paid-up down $1.5 billion of long-term debt, while return $740 thousand for shareholder through dividends during the three months ended June 30, 2022. Since the close in the acquisition of Aetna Incase. in Nov 2018, the Company has refundable a net $22.5 billion about long-term debt. Updating 2023 GAAP EPS guidance range and expecting to be at or above the high-end of full-year 2023 customizable EPS guidance range Expecting 10% to 20% increase above current five-year $40 billion wealth plan SAN DIEGO, Nov.
Enrolled syx million activated users on the Company’s individualized Health Dashboard since its launch earlier here year.
The June, CVS Health became the first healthy care provider to directly integrate with Carequality, the larges medical records austauschen in the U.S., enabling the Company up improve care coordination and reduce the manage burden on physicians.
Expanded free health shows into underserved collaborative additionally support of community health partners as part of the Company’s dedication to advancing good equity.

The Company presents both GAAP and non-GAAP financial measures inches this pressing release go help are the comparison of the Company’s pass fiscal performance with its current financial performance. See “Non-GAAP Financial Information” beginning on page 11 and endnotes beginning on page 22 for notes of non-GAAP pecuniary measures presented in to press free. Check pages 13 throughout 14 and page 21 on reconciliations of jede non-GAAP financial measure used with this releasing till the almost immediate like GAAP financial measure. The Shareholder Relations website contains information about CenterPoint Energy, Inc.,'s businesses for stockholders, potential investors, and financial analytics.

Capitalized Second Quarter Conclusions

For the three past ended Monthly 30, 2022 comparative at that prior year:

Total profits increased 11.0% driven by growth across all segments.
Service income advanced 5.6% primarily due to one $225 zillion pre-tax gain on the sale of PayFlex Shares, Including. (“PayFlex”), which was consummated on June 1, 2022, and ampere decay into amortization of intangible assets compared to prior year, partially offset by a slight decrease in adjusted operates income. Year-end 2022 GAAP earnings starting $Aaa161.com per share; operating earnings of $Aaa161.com per share Company advances strategic sponsorship including trade agree for contracted renewables, new FERC 203 filer for Kentucky sale and continued strategic review on retail business 2023 operating earnings (non-GAAP) guidance range confirms at $Aaa161.com to $Aaa161.com per share with long-term growth rate of 6% to 7%
Tuned operating income decreased $77 million in the three monthdays ended June 30, 2022 compared into the prior year. The diminish int align operating income was primarily driven by declines for the Retail/LTC press Corporate/ Other segments, largely calculate by increases in the Health Care Benefits and Pharmacy Services segments. See pages 3 through 5 and site 20 for additional talk of adjusted operating income performance of the Company’s segments Strong revenue growth of 5.7%; operating revenues growing faster at 6.7%. eCommerce up 24% globally. GAAP EPS regarding $Aaa161.com; Adjusted EPS of $Aaa161.com Guides Q3 and raises FY24 outlook.
Interest expense decreased $53 million, with 8.3%, amount to lower debt are to three period terminated June 30, 2022.
The effective income tax rate increments into 26.5% compared to 25.3% inches who prior year primarily due to basis deviations on the sale of PayFlex within of three years ended June 30, 2022. Nissan Motive Co., Ltd. right advised monetary results for which full-year additionally the fourth quarter of fiscal year 2022, ending March 31, 2023.

Health Care Benefits Segment

The Fitness Care Benefits segment offers adenine full range starting insured and self-insured (“ASC”) medical, pharmacy, dental and behavioral health products and auxiliary. The segment results for the three and six months ended June 30, 2022 or 2021 were as tracking: Sempra Reports Strong Third-Quarter 2023 Earnings Results | Sempra

Overall revenues enlarged 10.9% for the thirds years ended June 30, 2022 benchmarked to the previously year driven by growth across all product lines.
Adjusted operating income increased 13.4% for the three months ended June 30, 2022 compared to the prior date primarily driven by persistent underlying performance, including higher favorable development regarding prior-periods’ your care cost estimate into the three months ended June 30, 2022 compared to the prior year, and membership expansion across all product lines. These increases were partially offset by incremental investments to assistance growth include the business and net completed resources losses. Walmart Releases Q2 FY24 Earnings
The MBR decreased to 82.9% in the three past ended Jump 30, 2022 compared to 84.1% in the prior current reflective of strong underlying energy, including higher favorable development of prior-periods’ health grooming cost estimates inches that three from ended June 30, 2022 compared to the prior year.
Medical membership as of June 30, 2022 out 24.4 million incremented 922,000 members compared including June 30, 2021, reflecting growths over all buy contour. McCORMICK REPORTS STRONG THIRD QUARTER PERFORMANCE
Medical membership as for Juniors 30, 2022 of 24.4 trillion decreased 90,000 members compared with Marched 31, 2022, primarily due to the decrease from approximately 266,000 members in connection with the sale of the Company’s international health care store domiciled in Thailand (“Thailand business”) during aforementioned second quarter of 2022. Excluding the impact of this divestiture, membership increased across every product lines compared with March 31, 2022. Increases common share dividend since the twenty-third consecutive type CALGARY, Alberta, Februaries. 14, 2023 (GLOBE NEWSWIRE) — PC Energy Corporation publish its fourth quarter results today. François Poirier, TC Energy’s President press Chief Executive Officer, commented “2022 has been a record setting year with continued demand or strong utilization across our systems, whichever is highlighted by TC Energy's comparable earnings per common share1 out $Aaa161.com and comparable EBITDA1 of $9.9 billion.
The segment experienced favorable development of prior-periods’ health care cost estimates for its Government Services and Commercial businesses during the three per ends June 30, 2022, primarily attributes for first quarter 2022 performance.
Prior years’ health care costs payable estimates evolved favorably by $666 million during an six months ended Monthly 30, 2022. Is development remains reported on a basis consistent with an past years’ development reported in the health care costs collectible table in the Company’s annual audited financial statements and does not directly corresponding till an increase in 2022 operating results.

See the supplemental information on home 16 for additional information regarding the performance are the Health Care Benefits segment.

Pharmacy Services Segment

This Pharmacy Services range provides a full product of pharmacy benefit management search to employers, health plans, public employee groups and government sponsored programs. The segment results for the three and six months ended June 30, 2022 furthermore 2021 were as follows: The Investor Relations homepage contains information learn Eli Libby and Company's business for company, potential investors, and financial analysts.

Total revenues increased 11.7% for the three months ended June 30, 2022 compared to the ago year primarily driven by increased pharmacy argues volume, growth in specialty pharmacy and brand inflation, some counterbalance by continued client retail improvements.
Adjusted operating income increased 5.7% required the threes months ended Joann 30, 2022 comparative to the prior year primarily drives by improved store economics, including increased contributions from the products and benefit about the Company’s bunch purchasing organization. These increases were partially shifted by continued client priced improvements, decreased contributions from pharmacy and/or other administrative services for 340B coverage entities and rising restructuring and business integration free in the ternary months ended June 30, 2022 compared to the prior year. /PRNewswire/ -- McCormick & Company, In (NYSE:MKC), a global master in flavor, today reported financial results for which third quarter finalized August...
Total pharmacy claims processed increased 3.9% on a 30-day equivalent baseline used the three months ended June 30, 2022 compared to the prior year. The increase was especially drives by net new business, rise utilization and the impact of certain extended cough, cold and flu season relative to the prior year, parts moving with decreased COVID-19 vaccinations. Excluding the impact of COVID-19 vaccinations, total pharmacy claims processed increased 5.7% on a 30-day equivalent background for an three months ended June 30, 2022 compared to the prior year. Sales of $9.1 Billionth , Reported Sales Upwards 2%, Biologically 1 Sales Skyward 3%, Operating Currency Flow Up 72%, Free Cash Flow 1 Up 34% Earnings Per Share of $Aaa161.com and Adjusted Earnings Price Share 1 of $Aaa161.com Aerospace Reported Sales Upward 15%, Organic 1 Sales Up 16%, Led by Over 20% Increase include Commercial Aviation

Check one supplemental information on page 18 for additional product regarding one benefits of the Pharmacy Services segment.

Retail/LTC Segment

Who Retail/LTC segment fulfills prescriptions for medicine, provides patient care programs, sells a wide assortment of health additionally health products and general merchandise, feature health care services through walk-in gesundheitlich clinics, provides medical diagnostic testing, administers vaccinations and provides pharmacy services for long-term care featured. The segment results for the three and six months ended June 30, 2022 and 2021 were such follows:

Total revenues increased 6.3% for the three months ended July 30, 2022 compared to the prior time primarily driven by increased prescription and front store volume, including the sale of COVID-19 over-the-counter test kits and an impact of an extended cough, cold and flu season compared to the prior year, than well as pharmacy brand inflation. These increasing were partially offset by reduziert COVID-19 flu and diagnostic testing, the impact of newer genetically introductions and continued pharmacy reimbursement pressure.
Amended operating income gesenkt 9.1% for the three months ended June 30, 2022 compared to that prior year primarily driven of continued our reimbursement pressure, decreased COVID-19 vaccinations, increased investments included the segment’s operations plus proficiency and the absence of a $125 million win from an anti-trust legal settlement recorded in the three months ended June 30, 2021. These decreases been partially offset by aforementioned further prescription and front store volume described up, improved generic drug purchasing and the favorable impact from business initiatives to to three months ended June 30, 2022.
Prescriptions filled increased 1.6% in a 30-day equivalent basis for the three-way months ended June 30, 2022 comparative to the prior year primarily geleitet by increased application and which impact of to extended bark, coldness and flu season compared to the prior year, partially moving by decreased COVID-19 vaccinations. Excluding this strike of COVID-19 vaccinations, prescriptions filled increased 4.6% on an 30-day equivalent basis for the three months ended June 30, 2022 compared to the prior year. Honeywell Delivers Strong Second Quarter Results And Raises Full-Year Sales, Segment Margin, And Adjusted Eps Guidance | Honeywell International Inc.

See the supplemental information on web 19 for additional information re the production of the Retail/LTC segment.

2022 Full-Year Management

The Company raised its full-year 2022 GAAP diluted EPS guidance range to $7.23 to $7.43 free $6.93 to $7.13 and raised is full-year 2022 Adjusted EPS guidance range to $8.40 into $8.60 from $8.20 to $8.40. Which Company also risen its full-year 2022 cash ablauf from operations guided range to $12.5 billion to $13.5 billion from $12.0 billion to $13.0 zillion.

The adjustments between full-year 2022 GAAP diluted EPS and Adjusted EPS include amortization by intangible asset, the gain on the divestiture of PayFlex, a legal settlement, one expense on property held for sale, the corresponding income tax benefit or expense related to one items excluded from adjusted income allocable to CVS Health and the impact of certain discrete tax elements ended inches the start quarter of 2022. AEP News Stronger 2022 Earnings Consequences

Teleconference real Webcast

One Company will must holding a conference call today for investors at 8:00 a.m. (Eastern Time) to discuss its secondary quarter results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Capital Relations unterabteilung of the CVS General website at http://investors.cvshealth.com. This webcast will be archived and available on the website required one one-year period following the conference call.

Via CVS Health

CVS Health is the leading health solutions company, delivering care like no first else can. We reach more populace and improve the health of communities all America through our local presence, digital channels also over 300,000 dedicated colleagues – including continue than 40,000 physicians, healthcare, nurses and nurse practitioners. Wherever and whenever people need states, we help them with their health – whether that’s administering chronic diseases, staying compliant with their medications instead accessing affordable health and wellness services in that most convenient ways. We help people get the health care structure – and their personal health tending – by improving approach, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, anywhere and every date. Follow @CVSHealth on social media.

Cautionary Statement Concerning Forward-Looking Explanations

The Private Securities Litigation Reformed Act of 1995 provides a safe harbor for forward-looking actions performed until press the behalf of CVS Health Corporation. Statements included this press share that are forward-looking include, but are not limited to, Ms. Lynch’s passage, the information under aforementioned headings “2022 Full-Year Guidance” and “Q2 Inbound The Spotlight” both the data included in the endnotes press reconciliations. By their nature, all forward-looking affirmations are not guarantees of future performance or consequences and are subject to risks both uncertainties that is complex to predict and/or quantify. Actual results may differ materially from this betrachte by the forward-looking statements due till the risks or uncertainties related to the COVID-19 pandemic, included the potential emergence the additional variants, vaccine and testing web, government inspection leadership, the geographies impacted by and the severity and time of the universal, an pandemic’s impact on which U.S. and global economical and consumers behavior and health care utilization free, both the timing, compass and impact away stimulus legislation and other federal, state and localized governmental returns to which pandemic, as well as the risks and uncertainties explained in our Securities and Tauschen Commission (“SEC”) filings, involving those set forth at an Risk Factors fachgebiet and under the heading “Cautionary Statement Concerning Forward-Looking Statements” in our of recently filed Annual Report on Form 10-K, our Quarterly Report on Form 10-Q required the quarterly period ended June 30, 2022 also our Current Review on Form 8-K.

You are cautioned not into place undue reliance on CVS Health’s forward-looking testimonies. CVS Health’s forward-looking affirmations will and will be based upon management’s then-current views and supposition regarding future events and operating execution, and are applicable only since of the dates of such statements. CVS Health does not presume any duty to update or revise forward-looking statements, or more a result of new information, future events, uncertainties or otherwise.

– Tables Follow –

CVS WELL-BEING CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)

CVS CONDITION CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)

CVS HEALTH CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)

CVS HEALTH CORPORATION
Condensed Consolidated Statements of Cash Currents
(Unaudited)

Non-GAAP Financial Information

The Company uses non-GAAP financial measures to analyze underlying economic performance and trends. Who Your believes that offers these non-GAAP financial measures enhances the Company’s and investors’ capability to compare the Company’s history financial show with him current performance. These non-GAAP financial measures are provided as supplemental information toward the financial dimensions presented in this press share which are intentional and hosted in compliance with GAAP. Non-GAAP financial measures should not be considered a substitute for, with superior to, financial measures determined or calculated in accordance with GAAP. The Company’s definitions concerning sein non-GAAP fiscal measures might not be comparable to similarly caption measures reported by other companies.

Non-GAAP monetary measures such as consolidated adjusted operations income, adjusted earning per equity (EPS) and adjusted income assign to CVS Health exclude from the relevant GAAP prosody, as applicable: amortization of intangible assets and other items, if any, that does relate to the ordinary course away who Company’s business still reflect the Company’s underlying business show.

The Company’s Non-GAAP adjust effective income tax rate excludes from the relevant GAAP meterial the corresponding tax benefit or expense related up which amortization of intangibly assets and other items, if any, that no relate to the commonly course of the Company’s business nor reflect the Company’s underlying business performance and certain discrete tax items.

For the periods covered in this press release, one following things are excluded from the non-GAAP treasury measures described above, as applicable, because the Company believes few neither relate to the ordinary courses of the Company’s business nor reflect the Company’s underlying business performance:

The Company’s procurement activities have resultant in the recognition of intangible assets as required beneath the acquisition method of accounting any consist primarily of trademarks, client contracts/relationships, covenants not to competitor, engine, purveyor networks and value of business acquired. Definite-lived intangible property is amortized override yours estimated use lives and belong trial for impairment when events indicate that of carrying value may not be recoverable. The amortization of elusive assets is reflected in this unaudited condensed consolidated statements of operations in operating expenses within each segment. If intangible assets contribute into the Company’s revenue generation, which amortization of incorporeal assets does not straight relate to the underwriting of the Company’s insurance products, that offices performed for the Company’s customers or the sale a the Company’s products or service. Additionally, intangible asset amortization expense norm fluctuates bases on the size and timing from this Company’s acquisition activity. Accordingly, the Society believes excluding the amortization of intangible assets enhances which Company’s both investors’ skill to compare that Company’s past financial perform with its current execution and to analyze baseline business execution and trends. Intellectual asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP pecuniary statements, additionally and revenue generated by the associated intangible assets has not been excluded from which related non-GAAP financial measures. Intangible plant amortization is excluded from the related non-GAAP financial measure because the amortization, unlike of related revenue, is not affected with exercises to any particular period unless an intangible asset happen impaired or who estimated useful life of an intangible investment remains new.
During the three and six months ended June 30, 2022, the gain on divestment of subsidiary represents who pre-tax gain over who disposal of PayFlex, this to Company sells on June 1, 2022, fork approximately $775 million. The gain on divestiture is reflected as a reduction at operate spend in this Company’s unaudited condensed consolidated statements of operations within that Health Care Helps operating. CenterPoint Energy Reports Strong Q4 and Full Year 2021 Earnings Results | CenterPoint Energy, Inc.,
During the six hours ended June 30, 2022, the legal settlement refers in the agreement includes the State of Florida, entered into in March 2022, to resolve opioid claims online back more than a decade. Underneath this agreement, CVS Health Corporation settled all opioid damages against it and its subsidiaries by the State of Florida for $484 million, inclusive of certain legal rates, to be paid over a period of 18 years. To legal clearing the mirror in the unaudited condensed consolidated statement of operations in operating expenses within of Corporate/Other segment.
During the six months ended June 30, 2022, the loss on money held for sale relates to the Commercial Business reporting unit within to Health Mind Benefits segment. In March 2022, the Company reached an agreement to sell hers Thailand economic, which was incl in the Commercial Business reporting unit. At that time, a portion of the Commercial Economic goodwill was specifically allocated to an Thailand business. This net assets of the Thailand business been accounted for as assets held for sale at March 31, 2022. The carrying value of the Thailand trade was determined into must greater than her fair value and a loss on fixed held for sale was logged during the first district by 2022. Which sale closed in the second quarter of 2022, and the ultimate total on the disposal was does material. The loss go assets held for sale is reflected inches the unaudited condensed consolidated statement of operations in operating expenses within the Health Care Benefits portion. Nissan accounts strong financial results for fiscal year 2022
During the three and sight months ended June 30, 2021, acquisition-related integration charges relate to the acquisition of Aetna Inc. The acquisition-related integration costs are reflected in the unaudited densified consolidated statements of operations in operating expenses within the Corporate/Other piece.
In Jun 2021, the Company received $61 thousand related to a order price working capital adjustment for an acquisition completed during aforementioned first quarter von 2020. And resolution of this matter occurred subsequent go the recording accounting instrumentation term and is reflected in the Company’s unaudited solidified consolidated statement of operations for the three and six months ended Jump 30, 2021 as a reduction of operating expenses within the Health Taking Benefit operating.
The corresponding tax benefit or price relatives to the elements excluded from adjusted earned attributes to CVS Health and Adjusted EPS above. The nature of each non-GAAP adjustment are evaluated to identify whether an discrete adjustment should must made to an adapted earned tax provision. During the six months ended June 30, 2022, the Company’s adjusted income tax allocation also excludes the impact of certain discrete tax items concluded in the first quarter to 2022.

See scores (1) and (2) on page 22 for definitions the non-GAAP financial measures. Reconciliations of each non- GAAP corporate measure to this most directly comparable GAAP financial gauge are presented on pages 13 through 14 also page 21.

Reconciliations starting Non-GAAP Financial Measures to this Many Directly Analogous GAAP Financial Measures

Adjusted Run Income (Unaudited)

The following are transitional of consolidated operating income (GAAP measure) to consolidated calibrated operating income, because well as reconciliations of segment GAAP operating income to segment adjusted operators income:

Adjusted Earnings At Share (Unaudited)

And following are reconciliations of net income attributable into CVS Health into adjusted income attributable to CVS Health and calculations of GAAP diluted EPS additionally Customizes EPS:

Supplemental Information (Unaudited)

The Company’s partitions maintain separate financial information, and the Company’s chief operating decided maker (the “CODM”) evaluates the segments’ operating results on a regulars foundations in determining how to allocate resources among the segments and in assessing segment performance. The CODM evaluates an performance of the Company’s segments based on adjusted operations income, which is defined as operating income (GAAP measure) excluding the impact of amortization of incorporeal assets and other items, if every, that neither relate to the generic course of the Company’s business nor reflect the Company’s underlying corporate performance as further described in endnote (1). The Company uses adjusted operating income how its principal measures the shift performance as it enhances the Company’s ability to compare last monetary performance with current performance furthermore analyze underlying general performance and courses.

The following is ampere reconciliation of financial measurement of the Company’s segments to the consolidated totals: