McKesson Corporation (NYSE:MCK) Q2 2018 Earnings Conference Call - Final Transcript

Oct 26, 2017 • 08:00 am ET


McKesson Corporation (NYSE:MCK) Q2 2018 Earnings Conference Call - Final Transcript


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Good day, and welcome to the McKesson Second Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Craig Mercer. Please go ahead, sir.

Craig Mercer

Thank you, Jessica. Good morning, and welcome to the McKesson fiscal 2018 second quarter earnings call. I'm joined today by John Hammergren, McKesson's Chairman and CEO; and James Beer, McKesson's EVP and CFO. 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 9:00 a.m. Eastern Time.

(Forward-Looking Cautionary 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 second 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 Hammergren

Thanks, Craig, and thanks, everyone, for joining us on our call. Today, we reported solid operational performance across our business as we make continued progress towards a strong finish to our fiscal 2018. For the second quarter, we achieved total Company revenues of $52 billion and adjusted earnings per diluted share of $3.28. And we are reiterating our fiscal 2018 adjusted earnings range of $11.80 to $12.50 per diluted share.

Before I dive into the details of the quarter, let me briefly touch upon today's announcement that Paul Julian will be retiring at the end of the calendar year. I'd like to acknowledge the tremendous contributions by Paul over the past two decades. Paul's business acumen and strategic leadership have helped us expand our market reach as well as the breadth of services and solutions we offer to our customers. His dedication and tireless commitment to our people, our customers and the industry set him apart.

Starting in McKesson Health Systems, the company's distribution business for hospitals, he led many of the businesses that now comprise our Distribution Solutions segment. Paul has had a four-decade career in health care. He has received numerous awards and throughout his career, been recognized for his many contributions. He has demonstrated exceptional character, accomplishment and leadership in the industry and in the community.

I've worked closely with Paul for many years, and he is my friend as well as a close colleague. His perspective and insights are critical to the growth and success of McKesson, including building a deep bench of talented leaders to carry McKesson into the future. On Paul's retirement, the Presidents of these businesses within Distribution Solutions will report to me. I will miss working with Paul and wish him the very best