OREANDA-NEWS. May 22, 2014. McKesson Corporation (NYSE:MCK) reported that revenues for the fourth quarter ended March 31, 2014 were USD38.1 billion, up 25% compared to USD 30.5 billion a year ago.  On the basis of U.S. generally accepted accounting principles (“GAAP”), fourth-quarter earnings per diluted share from continuing operations was USD 1.56 compared to USD 1.11 a year ago. 

For the fiscal year, McKesson had revenues of USD 137.6 billion compared to USD 122.1 billion a year ago.  Full-year GAAP earnings per diluted share from continuing operations was USD 5.83 compared to USD 5.62 a year ago.

Fourth-quarter Adjusted Earnings per diluted share was USD 2.55, up 72% compared to USD 1.48 a year ago.  Full-year Adjusted Earnings per diluted share was USD 8.35, up 31% compared to USD 6.38 for the prior year.  The results of Celesio did not have a material impact on fourth-quarter or full-year adjusted earnings per share.  McKesson’s share of Celesio’s net income for the two months ended March 31, 2014 was offset by a charge to cost of sales associated with the reversal of a step-up to fair value of Celesio’s inventory at the date of acquisition.

“I am pleased with our fourth-quarter results led by solid execution across the Distribution Solutions and Technology Solutions segments,” said John H. Hammergren, chairman and chief executive officer. “For the full year, we had strong growth in adjusted earnings, up 31% from the prior year, and a record year for operating cash flow generated by the business.  These results were driven primarily by outstanding performance in the Distribution Solutions segment and disciplined working capital management across the company.  Additionally, during the fourth-quarter, we secured the acquisition of Celesio which marks an important step for McKesson as we expand to serve our customers and manufacturing partners with global scale.”

For the year, McKesson generated cash from operations of USD 3.1 billion, and ended the year with cash and cash equivalents of USD 4.2 billion.  During the year, McKesson spent USD 4.6 billion on acquisitions, paid USD 214 million in dividends, and had internal capital spending of USD 415 million.
 
“The strength of our balance sheet and our ability to deliver excellent cash flow results reflect the health of our businesses, and during the fourth quarter we successfully funded the Celesio acquisition while maintaining our investment-grade rating,” Hammergren commented.  “We have a strong track record of creating long-term value for shareholders through our portfolio approach to capital deployment and plan to continue that approach through a mix of acquisitions, share repurchases, dividends and internal investments.”