CVS 2001 Annual Report Download - page 33

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2001 Annual Report
Five-Year Financial Summary
200 1 2000 1999 1998 1997
In millions, e xce pt pe r share amounts ( 5 2 weeks) ( 52 weeks) ( 53 weeks) ( 5 2 weeks) (52 wee ks)
St at ement of operations data:
Net sales $ 22,241.4 $ 20,087.5 $ 18,098.3 $ 15,273.6 $ 13,749.6
Gro ss margin( 1 ) 5,691.0 5,361.7 4,861.4 4,129.2 3,718.3
Selling, general and administrative expenses 4,256.3 3,761.6 3,448.0 2,949.0 2,776.0
Depreciatio n and amo rtizatio n 320 .8 296.6 277.9 249.7 238.2
Merger, restruc turing and o ther
nonrecurring c harges and ( gains) 343 .3 ( 1 9. 2) —178.6 422.4
To tal o perating expenses 4,920.4 4,039.0 3,725.9 3,377.3 3,436.6
Operating pro fit ( 2 ) 770 .6 1,322.7 1,135. 5 751.9 281.7
Other expense ( inco me) , net 61.0 79.3 59.1 60.9 44. 1
Inco me tax pro visio n 296 .4 497.4 441.3 306.5 149.2
Earnings fro m co ntinuing o perations
before extrao rdinary item ( 3 ) $ 41 3.2 $ 746.0 $ 635.1 $ 384.5 $ 88.4
Per common share dat a:
Earnings fro m co ntinuing o perations
before extrao rdinary item: ( 3 )
Basic $ 1.02 $ 1.87 $ 1.59 $ 0.96 $ 0.20
Diluted 1.00 1.83 1.55 0.95 0.19
Cash dividends per co mmon share 0.230 0.230 0.230 0.225 0. 220
Balance sheet and ot her data:
To tal assets $ 8,628 .2 $ 7,949.5 $ 7,275.4 $ 6,686.2 $ 5,920.5
Lo ng-term debt 810 .4 536.8 558.5 275.7 290.4
To tal shareho lders’ equity 4,566.9 4,304.6 3,679.7 3,110.6 2,626.5
Number of stores ( at end o f period) 4,191 4,133 4,098 4,122 4,094
( 1) Gross margin inc ludes the pre-tax effect o f the follo wing no nrec urring charges: ( i) in 2001, $5. 7 millio n ( $3.6 million after-tax) related to the markdo wn o f certain invento ry c o ntaine d
in the sto res clo sing as part of the Actio n Plan, disc ussed in No te 2 to the Co nso lidate d Financial Stateme nts, to its ne t realizable value, ( ii) in 1998, $10.0 millio n ( $5.9 millio n after-
tax) related to the markdown of no nc o mpatible Arbo r Drugs, Inc. merchandise and ( iii) in 1997, $75.0 millio n ($49.9 millio n after-tax) related to the markdo wn of nonc o mpatible Revco
D.S., Inc. merchandise.
( 2) Operating profit includes the pre- tax effect of the c harges discussed in No te (1) above and the fo llowing merger, restructuring, and o ther no nrec urring charges and g ains: ( i) in 2001,
$34 6.8 million ( $226. 9 millio n after- tax) related to restruc turing and asset impairment co sts associated with the Action Plan and $3.5 millio n ($2.1 millio n after-tax) no nrec urring gain
resulting from the net effect of the $50.3 millio n o f settlement proc ee ds received fro m vario us lawsuits against c ertain manufacturers o f brand name presc riptio n drugs which was o ffset
by the Co mpany’s co ntributio n of $46.8 millio n of these settlement proc ee ds to the CVS Charitable Trust, Inc. to fund future c haritable giving, ( ii) in 2000, $19.2 millio n ($11.5 millio n
afte r-tax) no nrecurring g ain representing partial payment o f o ur share of the settleme nt pro ceeds fro m a c lass actio n lawsuit against c ertain manufacturers o f brand name presc riptio n
drugs, ( iii) in 1998, $147.3 millio n ( $101.3 millio n after-tax) c harge related to the me rger of CVS and Arbo r and $31.3 millio n ($18.4 millio n after-tax) of nonrecurring c o sts incurred in
co nnec tio n with eliminating Arbo r’s info rmatio n te chno lo g y systems and Revco ’s no nc o mpatible sto re merchandise fixtures and ( iv) in 1997, $337.1 millio n ( $229.8 millio n after-tax)
charge related to the merger o f CVS and Revco o n May 29, 1997, $54.3 millio n ( $32.0 millio n afte r-tax) of no nrec urring co sts incurred in co nnectio n with eliminating Revco ’s informatio n
tec hno logy systems and no nco mpatible sto re merchandise fixtures and $31.0 millio n ( $19.1 millio n afte r-tax) charge related to the restructuring o f Big B, Inc.
( 3) Earnings from co ntinuing o perations befo re extrao rdinary item and e arnings per co mmo n share fro m co ntinuing o peratio ns befo re extrao rdinary item include the after-tax effect o f the
charges and gains disc ussed in No tes ( 1) and ( 2) above.