Accendra Health (ACH) Q4 2013 earnings summary

Executive summary

• FY 2013 revenue rose 2.3% to $9.07B, with a full year of Movianto activity lifting results while domestic demand remained pressured. Adjusted diluted EPS was $1.90, up from $1.85.

• Q4 revenue was $2.319B, net income $27.9M, and diluted EPS $0.44.

Financial highlights

• FY revenue was $9.072B; GAAP operating earnings were $198.1M and net income was $110.9M.

• Adjusted operating earnings were $210.5M versus $206.9M; adjusted net income was $119.7M versus $117.2M.

• Acquisition-related and exit/realignment charges were $12.4M pre-tax in 2013, or $8.9M after tax; adjusted EPS excluded $0.14 per diluted share.

Outlook and guidance

• Expected approximately $2.5M of additional 2014 exit and realignment charges for domestic activities initiated through year-end 2013.

• Quarterly dividend increased 4.2% to $0.25 per share in February 2014; quarterly cash dividends were expected to continue, subject to Board discretion and financial conditions.

• Available operating cash and the revolving facility were expected to fund working capital, capex, debt and lease payments, dividends, repurchases, and other cash needs.