Omnicare repays $89.1 million of debt in 2008

By Jennifer Lanning Drey

Portland, Ore., Feb. 26 - Omnicare Inc. repaid $89.1 million of debt during 2008, including $39.1 million of debt repaid in the fourth quarter, David Froesel Jr., chief financial officer of Omnicare, reported Thursday during the company's fourth-quarter earnings conference call.

The company ended 2008 with cash and cash equivalents of $215 million and no borrowings outstanding on its revolving credit facility.

"In 2008, we strengthened our balance sheet, generated strong cash flow and return to year-over-year earnings growth," Froesel said.

In the fourth quarter, Omnicare generated operating cash flow of $106.3 million, up 43% from the prior-year period. Full-year cash flow from operations was $438.2 million.

Fourth-quarter uses of cash included $25 million in cash outlays for acquisitions, including deferred payments from prior acquisitions, and capital expenditures of $14.1 million.

EBITDA was $120.8 million in the fourth quarter, versus $31.8 million in the same quarter of 2007.

"As we look to 2009, despite the challenging economic environment, we believe Omnicare is positioned to continue as a strong cash flow generator and to maintain the financial strength and flexibility necessary to pursue its growth plans," Froesel said.

Omnicare is a Covington, Ky.-based provider of pharmaceutical care for the elderly.

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