McKesson Corporation (NYSE:MCK) Q4 2019 Earnings Conference Call - Final Transcript

May 08, 2019 • 08:00 am ET

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McKesson Corporation (NYSE:MCK) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the McKesson Q4 Earnings Call. Today's call is being recorded. At this time, I would like to turn the call over to Holly Weiss. Please go ahead, ma'am.

Executive
Holly Weiss

Thank you, Ebony. Good morning and welcome everyone to McKesson's Fourth Quarter Fiscal 2019 Earnings Call. Today, I'm joined by Brian Tyler, our Chief Executive Officer; and Britt Vitalone, our Chief Financial Officer. Brian will lead off, followed by Britt and then we will move to a question-and-answer session.

Today's discussion will include forward-looking statements, such as forecast about McKesson's operations and future results. Please refer to the cautionary statements in today's press release and our slide presentation, and to the risk factors section of our periodic SEC filings for additional information concerning risk factors that could cause our actual results to materially differ from those in our forward-looking statements.

During this call, we will discuss non-GAAP financial measures. Additional information about our non-GAAP financial measures, including a reconciliation of those measures to GAAP results is included in today's press release and presentation slides, and is also available on our website at investor.mckesson.com.

With that, let me turn it over to Brian.

Executive
Brian Tyler

Thank you, Holly, and thanks everyone for joining us on our call. Today, we're going to focus on our fiscal 2019 results and our outlook for fiscal 2020. Britt will cover our financial performance in greater detail, but first let me take a couple of minutes to discuss some of our important accomplishments and why we're so confident in McKesson's future.

During our fiscal '19, we saw increasing momentum in our strategic growth initiative, including priority areas that focused on manufacturer value proposition, specialty pharmaceuticals or biopharma services, and the expanding role of retail pharmacy in community health services, all this supported by our ongoing investments in data and analytics. We also continued to optimize our operating model to improve our cost position, and the overall speed and effectiveness of the organization.

We recently renewed our CVS agreement. This follows renewal of our Rite Aid agreement and a two-year extension of our Veterans Affairs agreement earlier in the year. We believe our strong value proposition and superior service quality were critical to allow us to continue supporting the success of these customers, and we are very pleased to continue these longstanding partnerships.

We made several changes to strengthen our leadership team including the promotion of Kirk Kaminsky as President of our US Pharmaceutical and Specialty Solutions segment; the promotion of Kevin Kettler as the President of our Europe segment; and the hiring of a new leader for our UK business. More recently, we appointed Tracy Faber as our Chief Human Resource Officer to succeed Jorge Figueredo upon his retirement later this year.

In our medical business, we acquired Medical Specialties Distributors, or MSD, which has, among other things, expanded our value proposition with manufacturers and brought specialty infusion capabilities and services. It is progressing in line with its business case. And Change Healthcare filed its S-1