Express Scripts 2009 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 of the 2009 Express Scripts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

Express Scripts 2009 Annual Report
(5) Includes retail pharmacy co-payments of $3,132.1, $3,153.6, $3,554.5, $4,012.7, and $5,691.3 for the years ended December 31, 2009, 2008, 2007,
2006, and 2005, respectively. We changed our accounting policy for member co-payments during the third quarter of 2008 to include member co-
payments to retail pharmacies in revenue and cost of revenue. The table reflects the change in our accounting policy for all periods presented.
(6) Primarily includes the results of operations from the discontinued operations of IP, which was acquired as part of the Priority acquisition on October
14, 2005.
(7) Earnings per share and weighted average shares outstanding have been restated to reflect the two-for-one stock splits effective June 22, 2007 and June
24, 2005, respectively.
(8) Excluded from the network claims are manual claims and drug formulary only claims where we only administer the client’s formulary.
(9) Other prescriptions filled represent: (a) drugs distributed through patient assistance programs (b) drugs distributed where we have been selected by the
pharmaceutical manufacturer as part of a limited distribution network and (c) Emerging Market claims.
(10) EBITDA from continuing operations is earnings before other income (expense), interest, taxes, depreciation and amortization, or alternatively
calculated operating income plus depreciation and amortization. EBITDA is presented because it is a widely accepted indicator of a company’s ability
to service indebtedness and is frequently used to evaluate a company’s performance. EBITDA, however, should not be considered as an alternative to
net income, as a measure of operating performance, as an alternative to cash flow, as a measure of liquidity or as a substitute for any other measure
computed in accordance with accounting principles generally accepted in the United States. In addition, our definition and calculation of EBITDA
may not be comparable to that used by other companies.
We have provided below a reconciliation of EBITDA from continuing operations to net income as we believe it is
the most directly comparable measure calculated under Generally Accepted Accounting Principles:
EBITDA from Continuing Operations
Year Ended December 31,
(in millions)
2009
2008
2007
2006
2005
Net income from continuing operations
$ 826.5
$ 779.6
$ 600.5
$ 475.4
$ 399.6
Income taxes
482.8
434.0
344.2
266.8
214.3
Depreciation and amortization
109.9
97.7
97.5
99.8
84.3
Interest expense, net
189.1
64.6
96.2
82.0
26.0
Undistributed loss from joint venture
-
0.3
1.3
1.6
2.4
Non-operating charges, net
-
2.0
18.6
-
-
EBITDA from continuing operations
1,608.3
1,378.2
1,158.3
925.6
726.6
44