Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CAREFUSION Corp | d292530d8k.htm |
| EX-99.1 - NEWS RELEASE - CAREFUSION Corp | d292530dex991.htm |
| EX-99.3 - INFORMATION RELATED TO THE USE OF NON-GAAP FINANCIAL MEASURES - CAREFUSION Corp | d292530dex993.htm |
 Exhibit 99.2 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
2
Forward-Looking Statements, GAAP
Reconciliation and New Reporting Segments
“Safe
Harbor”
Statement
under
the
Private
Securities
Litigation
Reform
Act
of
1995:
This
presentation
contains
forward-looking
statements
addressing
expectations,
prospects,
estimates
and
other
matters
that
are
dependent
upon
future
events
or
developments.
The
matters
discussed
in
these
forward-looking
statements
are
subject
to
risks
and
uncertainties
that
could
cause
actual
results
to
differ
materially
from
those
projected,
anticipated
or
implied.
The
most
significant
of
these
uncertainties
are
described
in
CareFusion’s
Form
10-K,
Form
10-Q
and
Form
8-K
reports
(including
all
amendments
to
those
reports)
and
exhibits
to
those
reports,
and
include
(but
are
not
limited
to)
the
following:
we
may
be
unable
to
effectively
enhance
our
existing
products
or
introduce
and
market
new
products
or
may
fail
to
keep
pace
with
advances
in
technology;
we
are
subject
to
complex
and
costly
regulation;
cost
containment
efforts
of
our
customers,
purchasing
groups,
third-party
payers
and
governmental
organizations
could
adversely
affect
our
sales
and
profitability;
current
economic
conditions
have
and
may
continue
to
adversely
affect
our
results
of
operations
and
financial
condition;
we
may
be
unable
to
realize
any
benefit
from
our
cost
reduction
and
restructuring
efforts
and
our
profitability
may
be
hurt
or
our
business
otherwise
might
be
adversely
affected;
we
may
be
unable
to
protect
our
intellectual
property
rights
or
may
infringe
on
the
intellectual
property
rights
of
others;
defects
or
failures
associated
with
our
products
and/or
our
quality
system
could
lead
to
the
filing
of
adverse
event
reports,
recalls
or
safety
alerts
and
negative
publicity
and
could
subject
us
to
regulatory
actions;
we
are
currently
operating
under
an
amended
consent
decree
with
the
FDA
and
our
failure
to
comply
with
the
requirements
of
the
amended
consent
decree
may
have
an
adverse
effect
on
our
business;
and
our
success
depends
on
our
key
personnel,
and
the
loss
of
key
personnel
or
the
transition
of
key
personnel,
including
our
chief
executive
officer,
could
disrupt
our
business.
This
presentation
reflects
management’s
views
as
of
February
2,
2012.
Except
to
the
extent
required
by
applicable
law,
we
undertake
no
obligation
to
update
or
revise
any
forward-looking
statement.
Non-GAAP
Financial
Measures:
The
financial
information
included
in
this
presentation
includes
Non-GAAP
financial
measures.
Reconciliations
can
be
found
on
slides
18
and
19
of
this
presentation.
In
addition,
definitions
and
reconciling
information
can
be
found
on
CareFusion’s
website
at
www.carefusion.com
under
the
Investors
tab.
New
Reporting
Segments:
Commencing
with
the
quarter
ended
September
30,
2011,
CareFusion
began
reporting
financial
results
based
on
its
two
new
operating
and
reportable
segments,
Medical
Systems
and
Procedural
Solutions.
The
financial
information
contained
in
this
presentation
reflects
these
new
segments,
which
replaced
the
Critical
Care
Technologies
and
Medical
Technologies
and
Services
segments
under
which
the
company
had
previously
reported.
The
Medical
Systems
segment
includes
the
company’s
Dispensing
Technologies,
Infusion
Systems
and
Respiratory
Technologies
business
lines.
The
Procedural
Solutions
segment
includes
the
company’s
Infection
Prevention,
Medical
Specialties
and
Specialty
Disposables
business
lines.
The
company
has
separately
provided
summary
historical
financial
data
for
the
new
reportable
segments
in
a
report
on
Form
8-K
filed
with
the
Securities
and
Exchange
Commission
on
November
2,
2011.
Previously reported results have been adjusted to reflect the impact of the
re-segmentation of CareFusion’s businesses and the divestiture of the
International Surgical Products (ISP) business. The ISP business was divested in April 2011, and has been classified as
discontinued operations. Comparisons to prior periods exclude the historical results of
the ISP business. |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
3
Today’s Speakers
•
Kieran Gallahue, Chairman and Chief Executive
Officer
•
Jim Hinrichs, Chief Financial Officer |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
Agenda
4 |
 Q2 and 1H Fiscal
2012 Results |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
Q2 FY12 Year-Over-Year
Quarterly Review
GAAP
Adjusted
$M
% Change
$M
% Change
Revenue
$915
3%
$915
3%
Operating Expenses
$314
(3)%
$307
4%
Operating Income
$143
17%
$150
-
%
Income From Continuing
Operations
$95
30%
$99
4%
Diluted EPS From Continuing
Operations
$0.42
31%
$0.44
5%
6
1
% Change over prior year period.
2
Adjusted amounts are non-GAAP financial measures that exclude items primarily
related to nonrecurring restructuring and acquisition integration charges and
nonrecurring items related to the spinoff. Additionally, in the case
of adjusted income from continuing operations and adjusted diluted earnings per
share from continuing operations, nonrecurring tax items are also excluded.
1
1
2
2
2
2 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
Q2 FY12 Year-Over-Year
Quarterly Segment Review
GAAP
Adjusted
Medical Systems
$M
% Change
$M
% Change
Revenues
$571
9%
$571
9%
Segment Profit
$121
27%
$124
12%
Procedural Solutions
$M
% Change
$M
% Change
Revenues
$344
(5)%
$344
(5)%
Segment Profit
$22
(19)%
$26
(33)%
7
1
% Change over prior year period.
2
Adjusted segment profit is a non-GAAP financial measure that excludes items
primarily related to nonrecurring restructuring and acquisition integration
charges and nonrecurring items relating to the spinoff.
2
2
1
1
1
1 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
Q2 FY12 Year-Over-Year
Quarterly Sub-Segment Revenues
$ in millions
Q2 FY12
Q2 FY11
% Change
Medical Systems
$571
$523
9%
Dispensing Technologies
$257
$229
12%
Infusion Systems
$239
$223
7%
Respiratory Technologies
$69
$65
6%
Other
$6
$6
-
%
Procedural Solutions
$344
$363
(5)%
Infection Prevention
$142
$142
-
%
Medical Specialties
$79
$78
1%
Specialty Disposables
$65
$73
(11)%
Other
$58
$70
(17)%
Total CareFusion
$915
$886
3%
8 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
1H FY12 Year-Over-Year
Review
GAAP
Adjusted
$M
% Change
$M
% Change
Revenue
$1,759
4%
$1,759
4%
Operating Expenses
$633
(4)%
$615
4%
Operating Income
$251
25%
$269
-
%
Income From Continuing
Operations
$162
49%
$175
10%
Diluted EPS From Continuing
Operations
$0.72
47%
$0.78
10%
9
1
% Change over prior year period.
2
Adjusted amounts are non-GAAP financial measures that exclude items primarily
related to nonrecurring restructuring and acquisition integration charges
and nonrecurring items related to the spinoff. Additionally,
in the case of adjusted income from continuing operations and adjusted diluted
earnings per share from continuing operations, nonrecurring tax items are
also excluded. 1
1
2
2
2
2 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
1H FY12 Year-Over-Year
Segment Review
GAAP
Adjusted
Medical Systems
$M
% Change
$M
% Change
Revenues
$1,080
9%
$1,080
9%
Segment Profit
$209
28%
$219
9%
Procedural Solutions
$M
% Change
$M
% Change
Revenues
$679
(4)%
$679
(4)%
Segment Profit
$42
11%
$50
(25)%
10
1
% Change over prior year period.
2
Adjusted segment profit is a non-GAAP financial measure that excludes items
primarily related to nonrecurring restructuring and acquisition integration
charges and nonrecurring items relating to the spinoff.
2
2
1
1
1
1 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
1H FY12 Year-Over-Year
Sub-Segment Revenues
$ in millions
1H FY12
1H FY11
% Change
Medical Systems
$1,080
$991
9%
Dispensing Technologies
$494
$434
14%
Infusion Systems
$445
$415
7%
Respiratory Technologies
$129
$130
(1)%
Other
$12
$12
-
%
Procedural Solutions
$679
$706
(4)%
Infection Prevention
$280
$277
1%
Medical Specialties
$157
$156
1%
Specialty Disposables
$131
$143
(8)%
Other
$111
$130
(15)%
Total CareFusion
$1,759
$1,697
4%
11 |
 Updated Fiscal
2012 Guidance |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
Updated FY12 Financial Guidance
February 2, 2012
Previous FY12 Outlook
Updated FY12 Outlook
Total Revenue
3-5% growth over FY11 revenue of
$3.5B on a constant currency basis
3-5% growth over FY11 revenue of
$3.5B on a constant currency basis
Adjusted Operating
Margin
~18%
~17.1%
Adjusted Effective Tax
Rate
27 –
29%
24 –
26%
Adjusted Diluted EPS
From Continuing
Operations
$1.75 -
$1.90
$1.75 -
$1.85
Diluted Weighted
Average Shares
Outstanding
~226M
~227M
Capital Expenditures
$130M -
$140M
$130M -
$140M
13
1
Provided
by
CareFusion
on
November
7,
2011;
updated
on
January
9,
2012
to
lower
the
bottom
end
of
the
adjusted
diluted
EPS
range
by
$0.05,
to
a
new
range of $1.75 -
$1.90.
2
Provided by CareFusion on February 2, 2012.
3
Adjusted amounts are non-GAAP financial measures that exclude items primarily
related to nonrecurring restructuring and acquisition integration charges and
nonrecurring items related to the spinoff.
2
1
3
3
3 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
FY12 Revenue and Adjusted EPS
Guidance and Assumptions
•
Guidance
O
Revenue growth of 3 to 5 percent over FY11 revenues of
$3.5B on a constant currency basis
O
Adjusted diluted EPS of $1.75 to $1.85
•
Assumptions
O
CareFusion markets grow low single digits; expect to do
better in markets where we are growing share at a faster
rate than the underlying market
O
Revenue and earnings weighted to 2H FY12
14 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
FY12 Medical Systems Segment-
Related Assumptions vs. FY11 Results
•
Revenues grow on a percentage basis by mid to
high single digits
O
Dispensing Technologies:
Revenues grow on a
percentage basis by low double digits
•
Assumes contributions from Rowa for approximately 11 months
of the year
O
Infusion
Systems:
Revenues
grow
on
a
percentage
basis
by mid single digits
•
Discounted infusion pump installations impact revenue growth
and margins in Q1 through Q4
•
2H FY12 margins benefit as dedicated disposable revenue
increases
O
Respiratory Technologies:
Revenues on a percentage
basis are flat
15 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
FY12 Procedural Solutions Segment-
Related Assumptions vs. FY11 Results
•
Revenues on a percentage basis are flat to down
low single digits
O
Infection
Prevention:
Revenues
grow
on
a
percentage
basis
by
low to mid single
digits
O
Medical
Specialties:
Revenues
grow
on
a
percentage
basis
by
low
to
mid
single
digits
O
Specialty Disposables:
Revenues on a percentage basis
are down mid to high single digits
O
OnSite Services Divestiture:
Negatively impacts
Procedural Solutions revenue by $32 million
16 |
 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
Q2 FY12 Non-GAAP Reconciliations
$ in millions
Q2 FY12
GAAP
Nonrecurring
Items
1
Q2 FY12
Adjusted
1
Operating Expenses
$314
$(7)
$307
Operating Income
$143
$7
$150
Income From Continuing Operations
$95
$4
$99
Diluted EPS From Continuing
Operations
$0.42
$0.02
$0.44
Medical Systems Segment Profit
$121
$3
$124
Procedural Solutions Segment Profit
$22
$4
$26
18
1
The nonrecurring items in the table above include items primarily related to
restructuring and acquisition integration charges and items related to the spinoff.
Additionally, in the case of income from continuing operations and diluted earnings
per share from continuing operations, nonrecurring items also include tax
items.
2
Diluted
earnings
per
share
calculations
are
performed
separately
for
each
component
presented.
Therefore,
the
sum
of
the
per
share
components
from
the
table may not equal the per share amounts presented.
Note: A full GAAP to non-GAAP reconciliation can be found on CareFusion’s
website at www.carefusion.com under the
Investors tab. A discussion of the reasons
why
management
believes
that
the
presentation
of
non-GAAP
financial
measures
provides
useful
information
to
investors
regarding
the
company’s
financial condition and results of operations is included in Exhibit 99.3 of Form
8-K filed by the company on February 2, 2012. 2 |
 ©
2012 CareFusion Corporation or one of its subsidiaries. All rights reserved.
1H FY12 Non-GAAP Reconciliations
$ in millions
1H FY12
GAAP
Nonrecurring
Items
1
1H FY12
Adjusted
1
Operating Expenses
$633
$(18)
$615
Operating Income
$251
$18
$269
Income From Continuing Operations
$162
$13
$175
Diluted EPS From Continuing
Operations
$0.72
$0.06
$0.78
Medical Systems Segment Profit
$209
$10
$219
Procedural Solutions Segment Profit
$42
$8
$50
19
1
The nonrecurring items in the table above include items primarily related to
restructuring and acquisition integration charges and items related to the spinoff.
Additionally, in the case of income from continuing operations and diluted earnings
per share from continuing operations, nonrecurring items also include tax
items.
2
Diluted
earnings
per
share
calculations
are
performed
separately
for
each
component
presented.
Therefore,
the
sum
of
the
per
share
components
from
the
table may not equal the per share amounts presented.
Note: A full GAAP to non-GAAP reconciliation can be found on CareFusion’s
website at www.carefusion.com under the
Investors tab. A discussion of the reasons
why
management
believes
that
the
presentation
of
non-GAAP
financial
measures
provides
useful
information
to
investors
regarding
the
company’s
financial condition and results of operations is included in Exhibit 99.3 of Form
8-K filed by the company on February 2, 2012. 2 |