McKesson Corporation (NYSE:MCK) Q2 2019 Earnings Conference Call - Final Transcript

Oct 25, 2018 • 08:00 am ET


McKesson Corporation (NYSE:MCK) Q2 2019 Earnings Conference Call - Final Transcript


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Please standby, we are about to begin. Good day everyone. Welcome to the McKesson Q2 Earnings Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Mr. Craig Mercer. Please go ahead, sir.

Craig Mercer

Thank you, Alan. Good morning. And welcome to the McKesson fiscal 2019 second quarter earnings call. I am joined today by John Hammergren, McKesson's Chairman and CEO; Brian Tyler, our recently appointed President and Chief Operating Officer; and Britt Vitalone, McKesson's Executive Vice President and Chief Financial Officer.

John will first provide a business update with Brian making some introductory comments and then Britt will review the financial results for the quarter. After Britt's 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)

Thank you, and here is John Hammergren.

John Hammergren

Thanks, Craig, and thanks everyone for joining us on our call. For the second quarter, we achieved total company revenues of $53 billion and adjusted earnings per diluted share of $3.60. We are narrowing and raising the low end of our fiscal 2019 adjusted earnings range to $13.20 per diluted share to $13.80 per diluted share, from the previous $13 per diluted share to $13.80 per diluted share.

I would like to take a moment to provide an update on our Board of Directors and leadership team. Our Board of Directors welcomed Dominic Caruso as a new Independent Director in September. As the former Chief Financial Officer of Johnson & Johnson, Dominic brings with him significant financial and healthcare experience, which further strengthens the diverse backgrounds and perspectives we have on our Board.

Also, I'd like to welcome Brian Tyler to this call, following his appointment as President and Chief Operating Officer, reporting directly to me. Many of you are familiar with Brian, as he has regularly presented at previous Investor Day events in Boston and has led nearly all of our businesses during his 21-year tenure at McKesson.

I'll now ask Brian to talk about his vision around leading our global operations. Brian?

Brian Tyler

Thank you, John, and good morning, everyone. Well, I am very excited about the opportunities that lie ahead of us. Clearly, there's a lot of work ongoing and work to be done. We have an impressive range of capabilities to build upon, combined with a great track record of execution. Having led corporate strategy and business development in many of our business units, I am very energized about leading our operations, as well as our strategic growth initiative.

We have faced and overcome many challenges during my time at McKesson. I continue to be encouraged by this company's resilience, its ability to navigate, evolving market conditions and our strategic focus to improve long-term performance.

Our enterprise-wide multiyear growth strategy, including priority areas that focus on manufacture value proposition, specialty pharmaceuticals and the role of retail pharmacy, all supported by data analytics, a promising areas of innovation, and importantly, we