McKesson Corporation (NYSE:MCK) Q1 2018 Earnings Conference Call - Final Transcript

Jul 27, 2017 • 08:30 am ET


McKesson Corporation (NYSE:MCK) Q1 2018 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good day and welcome to the McKesson Q1 Earnings Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Craig Mercer. Please go ahead.

Craig Mercer

Thank you, Anthony. Good morning and welcome to the McKesson fiscal 2018 first quarter earnings call. I'm joined today by John Hammergren, McKesson's Chairman and CEO; and James Beer, McKesson's Executive Vice President and Chief Financial Officer. John will first provide a business update, and then James will review the financial results for the quarter. After James' comments, we will open the call for your questions. We plan to end the call promptly after one hour at 9:30 AM Eastern Time.

Before we begin, I remind listeners that during the course of this call, we will make forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties regarding the operations and future results of McKesson. In addition to the company's periodic, current and annual reports filed with the SEC, please refer to the text of our press release for a discussion of the risks associated with such forward-looking statements.

Finally, please note that on today's call, we will refer to certain non-GAAP financial measures. In particular, John and James will reference adjusted earnings, adjusted operating profit margin excluding non-controlling interests, and items excluding foreign currency exchange effects. We believe these non-GAAP measures provide useful information for investors with regard to the company's operating performance, and comparability of financial results period-over-period. Please refer to our press release announcing first quarter fiscal 2018 results for further information, and a reconciliation of the non-GAAP performance measures to the GAAP financial results.

Thank you. And here is John Hammergren.

John H. Hammergren

Thanks, Craig, and thanks everyone for joining us on our call.

Today, we reported a solid start to fiscal 2018. For the first quarter, we achieved total company revenues in excess of $51 billion, and adjusted earnings per diluted share of $2.46, consistent with our expectations. Combined with our share repurchases we completed in the first quarter, we are raising our fiscal 2018 adjusted earnings outlook to $11.80 to $12.50 per diluted share.

Before I dive into the details of the quarter, I'd like to take a moment to discuss the progress that demonstrates our continued commitment to long-term shareholder value creation. First, we continue to proactively develop our portfolio of distribution businesses. In the past quarter, we announced the signing of three acquisitions primarily in the specialties space.

We closed four acquisitions, including CoverMyMeds in early April, and we started the important work to integrate Rexall and other recent acquisitions, which are beginning to contribute to our earnings growth. Each of these acquisitions that we've announced are in the process of integrating, highlight our commitment to expand our specialty capabilities, enhance our leading technology solutions for our Distribution Solutions customers and grow our retail pharmacy footprint internationally.

Second, we continue to make progress on the strategic shift to realign our businesses to focus on distribution and