CVS 2000 Annual Report Download - page 4

The year 2000 was an exceptional year for CVS by any measure. We achieved con-
tinued strong financial results, including record sales,operating profit and net earnings.
We also made significant strides toward our goal of being the most customer-focused,
innovative and convenient healthcare service retailer in America, with four comple-
mentary and growing healthcare businesses—CVS/pharmacy, ProCare, PharmaCare,
and CVS.com—serving the needs of all our customers.
Excellent Financial Performance and
Shareholder Returns
Net sales for the year reached a record $20.1 bil-
lion, up 13% from $17.7 billion in 1999 (on a compa-
rable 52-week basis), while same store sales surged
11% and led the industry. Net earnings, excluding a
one-time gain of $19 million related to a litigation
settlement, advanced to a record $735 million, or
$1.80 per share, up 18% from $1.52 per share in 1999
on a comparable 52-week basis.We continue to gen-
erate significant free cash flow, reaching $384 million
in 2000, ahead of our goal and significantly higher
than the $233 million we reported in 1999. This out-
standing performance solidified our track record of
meeting or beating Wall Street’s expectations every
quarter since we became a stand-alone public com-
pany in the Fall of 1996, and has translated into
excellent returns for our shareholders.
For the year, CVS’ share price climbed more than 50%, compared with a 6% decline
in the Dow Jones Industrial Average, and a 10% decline in the S&P 500 Index. In con-
trast to 1999, when investors flocked to technology stocks and, more specifically, to
pure-play Internet stocks, investors have now come back to companies such as CVS
that offer the best of both worlds: old economy fundamentals with above average
growth and new economy innovation.
America’s Pharmacy Leader
The drugstore industry remains extremely vibrant, possessing
perhaps the most compelling growth demographics in all of
retail—and CVS is America’s #1 Pharmacy. With 4,133 locations,
we operate more drugstores than any other company in the U.S.
Our pharmacy business continues to register phenomenal same
store sales growth, up nearly 18% in 2000. In fact, more
prescriptions are filled at CVS/pharmacy than at any other
retailer. The $140 billion pharmacy industry will continue to
be among the fastest-growing segments of the retail sector,
To Our Shareholders
CVS pharmacists filled approximately 300 million
prescriptions in 2000, providing pharmacy
counseling to millions of customers.
“We are a recognized
leader in our industry and
believe CVS is better
positioned than at any
time in the Company’s
history to capitalize on
the significant opportunities
in healthcare.”
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CVS Corporation