CVS 2005 Annual Report Download - page 3

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To Our Shareholders:
The past year will certainly be remembered as one of considerable accomplishment for our company. We swiftly and successfully
completed the integration of nearly 1,100 former Eckerd stores, along with the former Eckerd Health Services, acquired in 2004. At
the same time, we opened approximately 300 new or relocated stores in both existing and new markets. Throughout this activity, we
never lost focus on our core business, as evidenced by our same store sales growth and market share gains. Our PharmaCare
pharmacy benefits manager (PBM) also hit new heights, recording total revenue of just under $3 billion.
Our company’s total sales rose 21 percent to a record $37 billion, while diluted earnings per share climbed 32 percent, to $1.45.
Same store sales, which now include the 2004 acquired stores, increased 6.5 percent, with front-end same store sales up a stellar
5.5 percent and pharmacy same store sales up 7.0 percent. I’m also pleased to report that we generated more than $650 million in
free cash flow, reflecting the quality of our growth. Our shares produced a 17.9 percent total return, far outdistancing the 4.9 percent
return posted by the S&P 500 Index.
All signs point to growth in 2006 and beyond
The nation’s largest pharmacy chain by store count, we were operating 5,420 CVS/pharmacy®locations by year-end plus 51
PharmaCare specialty pharmacies. We opened many of our new stores in important growth markets such as Chicago, Minneapolis,
Las Vegas, Los Angeles, Orange County, and Phoenix. All of those are newer markets entered by CVS during the past five years.
Our shares produced a 17.9 percent
total return, far outdistancing the
4.9 percent return posted by the
S&P 500 Index.
Chairman, President, and CEO Tom Ryan
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