Omnicare ends first-quarter 2014 with $347 million cash on hand

By Lisa Kerner

Charlotte, N.C., April 23 - Omnicare, Inc. ended the quarter with no borrowings outstanding on its revolving credit facility, $14 million in standby letters of credit and $347 million in cash on hand, according to chief financial officer Rocky Kraft.

"The cash balance did not factor in outstanding settlement amounts of approximately $120 million, which we expect to pay in 2014," said Kraft during the company's first-quarter 2014 earnings conference call on Wednesday.

Also during the quarter, Omnicare returned $115 million to shareholders in share repurchases and dividends, according to Kraft.

Omnicare repurchased 1.6 million shares for a total of $95 million in Q1 and has $405 million remaining under its share authorization as of March 31.

When asked about short-term debt paydown, Kraft said the only debt coming due this year is "relatively modest" and associated with Omnicare's term loan.

"During the first quarter, our strong working capital management and solid earnings growth yielded an impressive level of operating cash flows," said Kraft.

Cash flows from continuing operations increased 61% to $172 million, year over year.

Financial highlights

Net sales increased 7.7% to $1.6 billion from the prior-year period, while adjusted EBITDA was up 10.4% to $178 million.

Adjusted cash earnings per diluted share from continuing operations rose 8.3% to $0.91.

Gross profit was up slightly at $358 million, compared to $350 million for the first quarter last year.

Omnicare is a Cincinnati-based provider of pharmaceutical services to patients and providers.

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