Net profits for long-term care pharmacy Omnicare Inc. (NYSE:OCR) rose to $18.7 million, or $0.17 per share, in the quarter ended June 30, 2012, compared to the same quarter in 2011 when the company lost $1.4 million and $0.01 per share due to discontinued operations.
Gross profits rose 9.2% to $367.3 million, while net sales decreased about 1.3% to $1.54 billion.
Omnicare, which provides drugs for the senior care industry through its long-term care division, attributed its positive net profits in part to efficiencies achieved through generic drug development and introduction, but says there is further room for improvement.
“While our strong quarterly results demonstrate the progress we have made as an organization, we believe we have opportunity to further leverage our platform,” said John Workman, Omnicare’s interim CEO, in the earnings statement. “Looking ahead, we are committed to increasing utilization of our technology offering and clinical programs through a renewed focus on operational excellence.”
Omnicare’s Long-Term Care group saw net sales drop 6.7% to to $1,202.8 million compared to $1,289.4 million in the same period in 2011, which Nitin Sahney, the pharmacy’s COO, attributed to “seasonably weaker utilization.” However, adjusted operation income from continuing operations rose 16.1% to $150.8 million.
In 2009, Omnicare began divesting itself of certain home healthcare and related ancillary business that were deemed “non-strategic in nature.” Accordingly, the company recorded a $57.6 million loss in discontinued operations in the six months ended June 30, 2011.
Looking forward, Omnicare adjusted its guidance for the full-year 2012 to $3.22 to $3.28 cash earnings per diluted share from its previous guidance of $3.10 to $3.20. It also expects cash flows from operations to range between $425 million to $525 million, an increase from previous expectations of between $400 million to $500 million. The expectation for revenue stayed the same at $6.1 billion to $6.2 billion.
View Omnicare’s earnings report for the second quarter of 2012.
Written by Alyssa Gerace