SAN FRANCISCO — McKesson on Tuesday reported fiscal year revenues of $122.5 billion, relatively flat as compared with the prior fiscal year. Full-year adjusted earnings per diluted share was $6.33, compared to $6.38 in the prior year.
“We took important strategic and operational actions during the quarter, and while these actions impacted our fourth-quarter financial results, I believe they leave the company well-positioned for continued success going forward,” stated John Hammergren, chairman and CEO of McKesson. “Turning to our operating results, I am pleased with the strong performance of our distribution solutions segment in the fourth quarter, which capped off another outstanding year in the segment. In addition to the strong operating performance in our distribution solutions segment, we had another great year of cash flow performance and deployed a record level of capital for acquisitions and share repurchases, creating further value for our shareholders.”
During the fourth quarter, McKesson completed the acquisition of PSS World Medical. Also during the fourth quarter, McKesson repurchased $800 million of its common stock.
For the year, McKesson generated cash from operations of $2.5 billion, and ended the year with cash and cash equivalents of $2.5 billion and a gross debt-to-capital ratio of 40.8%. During the year, McKesson spent $1.9 billion on acquisitions, repurchased $1.2 billion of its common stock, paid $194 million in dividends, and had internal capital spending of $406 million.
“The strength of our balance sheet and cash flow performance continue to provide opportunities to create value for our shareholders through our portfolio approach to capital deployment,” Hammergren added. “In the fourth quarter we completed the acquisition of PSS and have begun the process of bringing together the best of our combined businesses to help our customers improve efficiency and deliver better care to their patients. In addition, our strong cash flow allowed us to repurchase shares of common stock valued at more than $1.2 billion in Fiscal 2013. We plan to continue our portfolio approach to capital deployment with a mix of acquisitions, share repurchases, dividends and internal investments.”