Tag Archives: Larry Merlo

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CVS Health partners with Anthem, Inc. to provide services to support new pharmacy benefit manager IngenioRx

WOONSOCKET, R.I., 2017-Oct-23 — /EPR Retail News/ — CVS Health (NYSE: CVS) announced a five-year agreement with Anthem, Inc. (NYSE: ANTM) to provide services to support IngenioRx, a new pharmacy benefit manager (PBM) announced today by Anthem. As part of the agreement, CVS Caremark will manage certain services for IngenioRx, including claims processing and prescription fulfillment. In addition, CVS Health’s bundled suite of assets, including CVS Pharmacy and MinuteClinic, allow the company to apply its expertise in patient messaging and engagement at the point-of-sale to support IngenioRx, broadening the scope of clinical services offered at the pharmacy counter to drive better outcomes. The new agreement, which goes into effect on January 1, 2020, runs through December 31, 2024.

“We believe that this agreement further validates the important role that CVS Health’s integrated and innovative pharmacy care model plays in today’s health care system and we look forward to working with Anthem and IngenioRx to provide services to help ensure coordinated, holistic care for their PBM members,” said Larry Merlo, President and Chief Executive Officer, CVS Health. “At CVS Health, we truly are the front door of health care, with nearly 5 million Americans walking into a CVS Pharmacy every day. Given our presence in the community, our pharmacists and nurse practitioners are able to engage in face-to-face personalized counseling and clinically-effective interventions that will enable us to help improve health outcomes and lower overall health care costs for Anthem and its members.”

CVS Health expects to incur implementation costs related to the transition of members, as is typical of any large, multi-year contract. These costs are expected to be immaterial to 2017 results.

About CVS Health 
CVS Health is a pharmacy innovation company helping people on their path to better health. Through its 9,700 retail locations, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 90 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Investor Contact:
Mike McGuire
(401) 770-4050
Michael.McGuire@CVSHealth.com

Media Contacts:
Christine Cramer
(401) 770-3317
Christine.Cramer@CVSHealth.com

SOURCE CVS Health

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CVS Health Q2 2017 results: Net revenues increased 4.5% to $45.7 billion

Second Quarter Year-over-year Highlights:

  • Net revenues increased 4.5% to $45.7 billion
  • GAAP diluted EPS from continuing operations of $1.07, including a $135 million, or 13 cents per share, goodwill impairment charge related to the RxCrossroads business
  • Adjusted EPS of $1.33

Year-to-date Highlights:

  • Generated cash flow from operations of $5.5 billion; free cash flow of $4.6 billion

2017 Guidance:

  • Narrowed and revised full year GAAP diluted EPS from continuing operations to $4.92 to $5.02, including the goodwill impairment charge, from $5.02 to $5.18
  • Narrowed full year Adjusted EPS to $5.83 to $5.93 from $5.77 to $5.93
  • Provided third quarter GAAP diluted EPS from continuing operations of $1.20 to $1.23
  • Provided third quarter Adjusted EPS of $1.47 to $1.50, reflecting the timing of operating profit between the third and fourth quarters related to the Medicare Part D operations
  • Confirmed full year cash flow from operations of $7.7 to $8.6 billion; free cash flow of $6.0 to $6.4 billion

WOONSOCKET, RHODE ISLAND, 2017-Aug-09 — /EPR Retail News/ — CVS Health Corporation (NYSE: CVS) today (August 8, 2017) announced operating results for the three and six months ended June 30, 2017.

President and Chief Executive Officer Larry Merlo stated, “The second quarter results we posted today keep us nicely on pace to achieve our full-year targets. Operating profit in the Retail/LTC Segment was in line with expectations while operating profit in the Pharmacy Services Segment exceeded expectations. At the same time, we have generated substantial free cash flow year-to-date and continued to return significant value to our shareholders through dividends and share repurchases. While we are pleased to report results consistent with our expectations, we won’t be satisfied until the total enterprise returns to healthy levels of earnings growth.”

Mr. Merlo continued, “Given our performance in the first half and our confidence in our expectations for the back half of this year, we are narrowing and raising the midpoint of our Adjusted EPS guidance for 2017. Additionally, our differentiated value proposition continues to resonate in the marketplace. The 2018 selling season is shaping up to be another successful one for our PBM, with solid gross and net new business achieved to date.”

Revenues

Net revenues for the three months ended June 30, 2017 increased 4.5%, or $2.0 billion, to $45.7 billion, up from $43.7 billion in the three months ended June 30, 2016.

Revenues in the Pharmacy Services Segment increased 9.5% to $32.3 billion in the three months ended June 30, 2017. This increase was primarily driven by growth in pharmacy network claim volume as well as brand inflation and specialty pharmacy volume, partially offset by increased generic dispensing and price compression. Pharmacy network claims processed during the three months ended June 30, 2017 increased 10.3% on a 30-day equivalent basis, to 376.0 million, compared to 340.9 million in the prior year. The increase in pharmacy network claim volume was primarily due to an increase in net new business. Mail choice claims processed during the three months ended June 30, 2017 increased 5.2%, on a 30-day equivalent basis, to 65.6 million, compared to 62.3 million in the prior year. The increase in the mail choice claim volume was primarily driven by continued adoption of our Maintenance Choice® offerings and an increase in specialty pharmacy claims.

Revenues in the Retail/LTC Segment decreased 2.2% to $19.6 billion in the three months ended June 30, 2017. The decrease was largely driven by a 2.6% decrease in same store sales, an increase in the generic dispensing rate and continued reimbursement pressure.

Pharmacy same store sales decreased 2.8% and were negatively impacted by approximately 410 basis points due to recent generic introductions. Same store prescription volumes remained flat, on a 30-day equivalent basis, in the three months ended June 30, 2017. The previously-announced restricted networks that exclude CVS Pharmacy had a negative impact of approximately 460 basis points on same store prescription volumes.

Front store same store sales declined 2.1% in the three months ended June 30, 2017. The shift of the Easter holiday to the second quarter in 2017 from the first quarter in 2016 had an approximately 75 basis point positive impact. Front store same store sales were negatively impacted by softer customer traffic and efforts to rationalize promotional strategies, partially offset by an increase in basket size.

For the three months ended June 30, 2017, the generic dispensing rate increased approximately 130 basis points to 87.2% in our Pharmacy Services Segment and increased approximately 150 basis points to 87.6% in our Retail/LTC Segment, compared to the prior year.

Operating Profit

Consolidated operating profit for the three months ended June 30, 2017, decreased $240 million, or 10.2%. The decrease was partially due to a goodwill impairment charge of $135 million related to the RxCrossroads reporting unit within the Retail/LTC Segment. Additionally, the previously-announced restricted networks that exclude CVS Pharmacy and continued reimbursement pressure in the Retail/LTC Segment negatively impacted operating profit. This was partially offset by growth in pharmacy network claim volume and growth in specialty pharmacy in the Pharmacy Services Segment and a $71 million decrease in acquisition-related integration costs in the three months ended June 30, 2017 versus the same quarter last year.

Net Income and Earnings Per Share

Net income for the three months ended June 30, 2017 increased $174 million or 18.8%, to $1.1 billion. The increase was primarily due to the absence of a $542 million loss on early extinguishment of debt in the current year, partially offset by the $240 million decrease in operating profit and an increase in the effective income tax rate, from 39.5% to 41.1%. The increase in the tax rate was primarily due to the nondeductible goodwill impairment charge of $135 million, or 280 basis points, partially offset by $14 million in discrete tax benefits related to the required adoption of new accounting guidance for share-based compensation on January 1, 2017.

GAAP earnings per diluted share from continuing operations (“GAAP diluted EPS”) for the three months ended June 30, 2017 was $1.07, compared to $0.86 in the prior year. Adjusted earnings per share (“Adjusted EPS”) for the three months ended June 30, 2017 and 2016, was $1.33 and $1.32, respectively. Further detail is shown in the Adjusted Earnings Per Share reconciliation later in this release.

Guidance

The Company narrowed and revised full year GAAP diluted EPS guidance to $4.92 to $5.02, including the goodwill impairment charge, from $5.02 to $5.18. The Company narrowed full year Adjusted EPS guidance to $5.83 to $5.93 from $5.77 to $5.93.

In the third quarter, the Company expects to deliver GAAP diluted EPS of $1.20 to $1.23 and Adjusted EPS of $1.47 to $1.50 which are affected by the timing of the Medicare Part D operating profit between the third and fourth quarters relative to the prior year, resulting from the variability between the quarters as members move through the risk corridor. The third quarter GAAP diluted EPS guidance also includes an estimated loss on the previously-disclosed settlement of a defined benefit pension plan.

The Company confirmed its 2017 cash flow from operations guidance of $7.7 to $8.6 billion and free cash flow guidance of $6.0 to $6.4 billion. These 2017 guidance estimates assume the completion of $5.0 billion in share repurchases.

Real Estate Program

During the three months ended June 30, 2017, the Company opened 27 new retail locations and closed three retail locations. In addition, the Company relocated 10 retail locations. As of June 30, 2017, the Company operated 9,700 retail locations, including pharmacies in Target stores, in 49 states, the District of Columbia, Puerto Rico and Brazil.

As previously disclosed, the Company intends to close a total of approximately 70 retail stores during 2017 and expects to take a cumulative charge of approximately $220 million primarily associated with the remaining lease obligations of such stores. The Company closed 63 retail stores and took a charge of $205 million in the six months ended June 30, 2017. The Company expects to close approximately seven additional retail stores during the remainder of 2017.

Teleconference and Webcast

The Company will be holding a conference call today for the investment community at 8:30 am (EDT) to discuss its quarterly results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the conference call

About the Company

CVS Health is a pharmacy innovation company helping people on their path to better health. Through its 9,700 retail locations, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 90 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. By their nature, all forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission filings, including those set forth in the Risk Factors section and under the section entitled “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Non-GAAP Financial Measures

The following provides reconciliations of certain non-GAAP financial measures presented in this Form 8-K to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company uses the non-GAAP measures “Adjusted EPS” and “Free Cash Flow” to assess and analyze underlying business performance and trends. Management believes that providing these non-GAAP measures enhances investors’ understanding of the Company’s performance.

The Company defines Adjusted Earnings per Share, or Adjusted EPS, as income from continuing operations excluding the impact of certain adjustments such as the amortization of intangible assets, acquisition-related transaction and integration costs, charges in connection with store rationalization, goodwill impairments, adjustments to legal reserves in connection with certain legal settlements, losses on early extinguishments of debt, and losses on settlements of defined benefit pension plans, divided by the Company’s weighted average diluted shares outstanding. The Company believes that this measure enhances investors’ ability to compare the Company’s past financial performance with its current performance.

The Company defines Free Cash Flow as net cash provided by operating activities less net additions to property and equipment (i.e., additions to property and equipment plus proceeds from sale-leaseback transactions). Management uses this non-GAAP financial measure for internal comparisons and finds it useful in assessing year-over-year cash flow performance.

These non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP. Adjusted EPS should be considered in addition to, rather than as a substitute for, income before income tax provision as a measure of our performance. Free Cash Flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. The Company’s definitions of Adjusted EPS and Free Cash Flow may not be comparable to similarly titled measurements reported by other companies.

Investor Contact:

Mike McGuire
Senior Vice President
Investor Relations
(401) 770-4050

Media Contact:

Carolyn Castel
Vice President
Corporate Communications
(401) 770-5717

Source: CVS Health

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CVS Health president and ceo Larry Merlo to present at the UBS Global Healthcare Conference on May 24, 2017

WOONSOCKET, R.I., 2017-May-15 — /EPR Retail News/ — CVS Health Corporation (NYSE: CVS) today (May 12, 2017 )announced that Larry Merlo, the company’s president and chief executive officer, will be speaking to investors at the UBS Global Healthcare Conference on May 24, 2017, at approximately 10:00 a.m. ET.

An audio webcast of the event will be broadcast simultaneously on the Investor Relations portion of the CVS Health website for all interested parties, and will be archived and available for a one-year period. To access the webcast or an archive of the event, visit http://investors.cvshealth.com.

About CVS Health

CVS Health is a pharmacy innovation company helping people on their path to better health. Through its nearly 9,700 retail locations, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 90 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Investor Contact:

Nancy Christal
Senior Vice President
Investor Relations
(914) 722-4704

Media Contact:

Carolyn Castel
Vice President
Corporate Communications
(401) 770-5717

Source: CVS Health

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CVS Health Charity Classic returns with new enhancements and world-class food event

WOONSOCKET, R.I., 2017-May-12 — /EPR Retail News/ — Drawing some of the biggest names in golf to the greens of the Rhode Island Country Club, the CVS Health Charity Classic has expanded this year’s event series for golf fans and non-golf fans alike. This year’s Charity Classic event series will kick off with Crave RI, a two-day food festival in Downtown Providence on June 15-16, followed by several exciting activities on June 18-19 at Rhode Island Country Club.

“We are proud to be celebrating the 19th year of the CVS Health Charity Classic with unique, new enhancements for golf fans and introducing a world-class food event for families and foodies across Rhode Island and Southeastern Massachusetts to enjoy,” said Larry Merlo, President and CEO of CVS Health. “Year after year, the world’s best golfers come out to help us support our charity partners, and this year, we’re looking forward to introducing a new format that will add even more excitement to the tournament.”

The one-day tournament on Monday, June 19th will feature 18 of the nation’s top golfers, comprised of six PGA TOUR, six LPGA Tour and six PGA TOUR Champions players. Each team will be made up of one player from each respective Tour. The top two scores from each hole per team will be counted towards its final score. The lowest team score at the end of 18 holes will be named the Champions of the 2017 CVS Health Charity Classic.

Team pairings will be released on a rolling basis as the event draws closer. The golf professionals participating at the 2017 CVS Health Charity Classic include:

PGA TOUR LPGA Tour PGA TOUR Champions
Keegan Bradley Paula Creamer Billy Andrade
Jon Curran Brooke Henderson Brad Faxon
Tony Finau Cristie Kerr Jay Haas
Bill Haas Gerina Piller Bernhard Langer
Billy Horschel Morgan Pressel Colin Montgomorie
Smylie Kaufman Lexi Thompson Mark O’Meara

In addition to the golf tournament, the CVS Health Charity Classic, which has donated more than $20 million dollars to area non-profits since 1999, will continue its tradition of giving back to the Southern New England community with a series of events, including:

  • Crave RI a two-day, family-friendly culinary celebration featuring Rhode Island’s and Massachusetts’ finest with 80 restaurants and more than 100 beer and wine profiles. Enjoy sample tastings from Matunuck Oyster Bar, Gracie’s, Newport Vineyards, Narragansett Beer and many more at the Dunkin’ Donuts Center in downtown Providence on June 15-16. All proceeds from the inaugural event will support charitable organizations across Southern New England. Tickets are on sale now at ticketmaster.com/CharityClassic, all Ticketmaster outlets, the Dunkin’ Donuts Center box office or by phone at 1-800-745-3000.
  • Pepsi Celebrity Pro-Am The CVS Health Charity Classic has partnered up with New England sports teams to bring celebrity athletes to the Charity Classic on Sunday, June 18th at the Rhode Island Country Club. The Patriots, Celtics, Bruins and Red Sox will all be represented at the first ever Pepsi Celebrity Pro-Am. Admission to the event is FREE.
  • Community Day What better way to celebrate Father’s Day than with free admission to Community Day on Sunday, June 18th? Enjoy the picturesque Rhode Island Country Club while taking in great golf and a number of other activities including interactive and engaging programs at health and wellness stations.
  • Path To Better Health A walking path around the golf course that features interactive health and wellness stations, the Path to Better Health encourages fans to participate in fun, educational and interactive health-focused activities as they walk around the golf course at Rhode Island Country Club.

“The focus of the CVS Health Charity Classic has always been to give back to our local community,” said Eileen Howard Boone, Tournament Chairwoman, CVS Health Charity Classic. “The addition of Crave RI and the inclusion of celebrity athletes provide a great opportunity for the Southern New England region to come together to support the meaningful work being done by non-profits that are providing assistance to those that need it the most.”

The CVS Health Charity Classic will again be honoring veterans by offering complimentary admission to Rhode Island Country Club for the golf tournament for all active, reserve and retired Military Service Members and their dependents. Veterans can simply present a valid Common Access Card or Retired Military Card at the gate. First responders and their families also receive free admission with a valid ID.

Single day tickets for the 2017 CVS Health Charity Classic are now on sale at ticketmaster.com/CharityClassic for $10 each. Children 17 and under are free with a ticketed adult. For additional information on tickets, fans can call 866-CVS-9441 or visit cvshealthcharityclassic.com.

About the CVS Health Charity Classic
The CVS Health Charity Classic is Rhode Island’s largest charitable event series and hosts some of the best PGA TOUR, LPGA Tour and PGA TOUR Champions professionals in the world. Since its inception in 1999, the CVS Health Charity Classic has donated more than $20 million to charities around the region, providing vital funding for a variety of critical programs serving children, families and people in transition throughout Southern New England. For more information, visit cvshealthcharityclassic.com.

CONTACT:
Patti O’Donnell
patti.odonnell@comcast.net
773-680-4701

SOURCE: CVS Health Charity Classic

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CVS Health releases its tenth annual Corporate Social Responsibility (CSR) Report

WOONSOCKET, R.I., 2017-May-11 — /EPR Retail News/ — CVS Health (NYSE: CVS) today (05.10.17) released its tenth annual Corporate Social Responsibility (CSR) Report, entitled Prescription for a Better World, providing updates on progress against the company’s 2016 CSR goals, and establishing several new performance targets.

Accomplishments in 2016 spanned the company’s strategic CSR pillars of Health in Action, Planet in Balance and Leader in Growth and illustrate its efforts to make health care more affordable, accessible and effective; provide customers with healthier and more sustainable products; and operate its business sustainably and responsibly.

New performance targets introduced in this year’s report include expanding the company’s commitment to preventing and mitigating prescription drug abuse by increasing pharmacist education and outreach to 750,000 children and families by 2020. In addition, to respond to the health care industry’s complex and ever-changing compliance landscape, the company is harnessing new technologies that help colleagues stay informed of and comply with regulations and has committed to providing more than two million hours of annual compliance training to colleagues across the enterprise.

“We’re incredibly proud of everything we accomplished in 2016 and believe that our business contributions have helped to address critical health care issues and deliver more affordable, accessible and effective care,” said Larry Merlo, President and Chief Executive Officer for CVS Health. “Our corporate social responsibility strategy supports our growing business while helping people on their path to better health and making the world a healthier place to live.”

Key highlights from the 2016 Report include:

Health in Action

  • Delivered a low-cost alternative to auto-injectable epinephrine as one way to increase the affordability of prescription drugs
  • Broadened MinuteClinic services and piloted a first-of-its-kind partnership with the U.S. Department of Veterans Affairs to offer clinic services to more than 60,000 veterans served by the Palo Alto VA. The success of the pilot resulted in the recent expansion of the program to provide quality care to veterans served by the Phoenix VA Health Care System.
  • Expanded healthier food and beverage offerings to more than 2,900 stores nationwide
  • Reached more than 170,000 students with prescription drug abuse education through the Pharmacists Teach program
  • Introduced Be The First, a five-year, $50 million initiative to help deliver the nation’s first tobacco-free generation

Planet in Balance

  • Advanced efforts to address chemicals of consumer concern by announcing the removal of parabens, phthalates and the most prevalent formaldehyde donors across nearly 600 beauty and personal care products from its store brand CVS Health, Beauty 360, Essence of Beauty, and Blade product lines
  • Published and implemented a Responsible Palm Oil Sourcing Policy and committed to sourcing 100 percent of palm oil used in CVS Health products from verified, responsible sources by 2020
  • Committed to developing a science-based emissions reduction target to align greenhouse gas emission reductions with global emissions budgets generated by climate models and joined more than 250 companies setting their emissions reduction targets in line with climate science

Leader in Growth

  • Published a Human Rights Policy that formalizes practices within our workplace and supply chain and aligns with the United Nations Guiding Principles on Business and Human Rights
  • Achieved our goal of spending $1 billion annually with diverse suppliers by 2017, one year ahead of schedule, and became one of 26 U.S.-based companies named to the Billion Dollar Roundtable, a top-level corporate advocacy organization that promotes supply-chain diversity excellence
  • Committed to expanding the company’s Registered Apprenticeships program to 3,000 participants by 2020

“Prescription for a Better World is more than the title of our report it’s a comprehensive approach to CSR that engages colleagues across our organization to make measurable progress in fulfilling our purpose,” Eileen Howard Boone, SVP of Corporate Social Responsibility and Philanthropy for CVS Health writes in the Report. “As I look ahead to the next ten years, I see so many opportunities for our CSR strategy to play an even bigger role in supporting our business and delivering value to our customers, communities and stakeholders.”

The Report was developed in accordance with the Global Reporting Initiative (GRI) G4 Guidelines, an international framework that is widely used by organizations to report on their CSR and sustainability performance. For more information on GRI, visit http://www.globalreporting.org/.

The Report is available online at http://cvshealth.com/social-responsibility/corporate-social-responsibility.

About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health. Through its nearly 9,700 retail locations, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 90 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

SOURCE: CVS Health

Contacts

Media:
Joe Goode
(401) 770-9820
Joseph.Goode@CVSHealth.com

Investor Relations:
Nancy Christal
(401) 770-3614
Nancy.Christal@CVSHealth.com

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CVS Health announces increased Net revenues by 3.0% to $44.5 billion during First Quarter

First Quarter Year-over-year Highlights:

  • Net revenues increased 3.0% to $44.5 billion
  • GAAP diluted EPS from continuing operations of $0.92; Adjusted EPS of $1.17
  • Generated cash flow from operations of $3.5 billion; free cash flow of $3.1 billion

2017 Guidance:

  • Confirmed full year GAAP diluted EPS from continuing operations of $5.02 to $5.18
  • Confirmed full year Adjusted EPS of $5.77 to $5.93
  • Provided second quarter GAAP diluted EPS from continuing operations of $1.15 to $1.19
  • Provided second quarter Adjusted EPS of $1.29 to $1.33
  • Confirmed full year cash flow from operations of $7.7 to $8.6 billion; free cash flow of $6.0 to $6.4 billion

WOONSOCKET, RHODE ISLAND, 2017-May-03 — /EPR Retail News/ —  CVS Health Corporation (NYSE: CVS) today (May 2, 2017) announced operating results for the three months ended March 31, 2017.

President and Chief Executive Officer Larry Merlo said, “2017 is off to a solid start as we posted results this quarter that surpassed our expectations. At the same time, we generated $3.1 billion of free cash and continued to return value to our shareholders through high-return investments in our business as well as dividends and share repurchases. However, while we are pleased with our financial performance versus our expectations, we won’t be satisfied until the company returns to sustainable, healthy earnings growth.”

Mr. Merlo continued, “We continue to expect 2017 to be a rebuilding year, but our goals remain clear, and we fully intend to return to healthy levels of growth. We remain confident in our model as well as our position in the evolving health care landscape, and our ability to generate significant levels of cash will continue to play an important role in driving shareholder value over the longer term.”

Revenues

Net revenues for the three months ended March 31, 2017 increased 3.0%, or $1.3 billion, to $44.5 billion, up from $43.2 billion in the three months ended March 31, 2016.

Revenues in the Pharmacy Services Segment increased 8.5% to $31.2 billion in the three months ended March 31, 2017. This increase was primarily driven by growth in pharmacy network claim volume as well as brand inflation and growth in specialty pharmacy, partially offset by increased generic dispensing and price compression. Pharmacy network claims processed during the three months ended March 31, 2017, increased 10.5%, on a 30-day equivalent basis, to 376.8 million, compared to 340.9 million in the prior year. The increase in pharmacy network claim volume was primarily due to an increase in net new business. Mail choice claims processed during the three months ended March 31, 2017, increased 4.5%, on a 30-day equivalent basis, to 63.7 million, compared to 61.0 million in the prior year. The increase in the mail choice claim volume was primarily driven by continued adoption of our Maintenance Choice® offerings and an increase in specialty pharmacy claims.

Revenues in the Retail/LTC Segment decreased 3.8% to $19.3 billion in the three months ended March 31, 2017. The decrease was largely driven by a 4.7% decrease in same store sales, continued reimbursement pressure and an increase in the generic dispensing rate.

Pharmacy same store sales decreased 4.7% and were negatively impacted by approximately 480 basis points due to recent generic introductions. Same store prescription volumes declined 1.4%, on a 30-day equivalent basis, in the three months ended March 31, 2017. The previously-discussed marketplace changes that restrict CVS Pharmacy from participating in certain networks had an approximately 460 basis point negative impact on same store prescription volumes, while the absence of leap day versus the prior year had an approximately 120 basis point negative impact on same store prescription volumes. Adjusting for both the network changes and leap day, same store prescription volumes would have been 580 basis points higher, and would have increased 4.4% in the quarter on a 30-day equivalent basis.

Front store same store sales declined 4.9% in the three months ended March 31, 2017. The absence of leap day versus the prior year had a 100 basis point negative impact on front store same store sales, while the shift of the Easter holiday to the second quarter in 2017 from the first quarter in 2016 had a 75 basis point negative impact. Front store sales were also negatively impacted by softer customer traffic and efforts to rationalize promotional strategies, partially offset by an increase in basket size.

For the three months ended March 31, 2017, the generic dispensing rate increased approximately 140 basis points to 87.0% in our Pharmacy Services Segment and increased approximately 180 basis points to 87.5% in our Retail/LTC Segment, compared to the prior year.

Operating Profit

For the three months ended March 31, 2017, consolidated operating profit decreased $392 million, or 18.0%. The decrease was due to the previously-announced restricted networks that exclude CVS Pharmacy as well as continued price compression in the Pharmacy Services Segment and continued reimbursement pressure in the Retail/LTC Segment. The decrease also reflects a charge of $199 million associated with the closure of 60 retail stores in connection with our enterprise streamlining initiative. This was partially offset by a $46 million decrease in acquisition-related integration costs in the three months ended March 31, 2017 versus the same quarter last year.

Net Income and Earnings Per Share

Net income for the three months ended March 31, 2017 decreased 16.9%, to $953 million. This was primarily driven by the decline in operating profit, partially offset by lower interest expense of $31 million related to refinancing activity in the prior year as well as the improvement in the effective income tax rate, from 39.4% to 37.3%. The decrease in the tax rate was largely driven by $19 million in discrete tax benefits related to the required adoption of new accounting guidance for share-based compensation.

GAAP earnings per diluted share from continuing operations (“GAAP diluted EPS”) for the three months ended March 31, 2017 was $0.92, compared to $1.04 in the prior year. Adjusted earnings per share (“Adjusted EPS”) for the three months ended March 31, 2017 and 2016, was $1.17 and $1.18, respectively. Further detail is shown in the Adjusted Earnings Per Share reconciliation later in this release.

Guidance

The Company confirmed its previous EPS and cash flow guidance for the full year and provided guidance for the second quarter of 2017. The Company continues to expect to deliver GAAP diluted EPS of $5.02 to $5.18 and Adjusted EPS of $5.77 to $5.93 for the full year 2017. The Company expects to deliver GAAP diluted EPS of $1.15 to $1.19 and Adjusted EPS of $1.29 to $1.33 in the second quarter of 2017. The Company also confirmed its 2017 cash flow from operations guidance of $7.7 to $8.6 billion and free cash flow guidance of $6.0 to $6.4 billion. These 2017 guidance estimates assume the completion of $5.0 billion in share repurchases.

Real Estate Program

During the three months ended March 31, 2017, the Company opened 27 new retail stores and closed 60 retail stores. In addition, the Company relocated 10 retail stores. As of March 31, 2017, the Company operated 9,676 retail stores, including pharmacies in Target stores, in 49 states, the District of Columbia, Puerto Rico and Brazil.

As previously disclosed, the Company intends to close a total of approximately 70 retail stores during 2017 and expects to take a cumulative charge of approximately $220 million primarily associated with the remaining lease obligations of such stores. The Company closed 60 of the 70 retail stores in the three months ended March 31, 2017 and took a charge of $199 million. The Company expects to close approximately ten additional stores during the remainder of 2017.

Teleconference and Webcast

The Company will be holding a conference call today for the investment community at 8:30 am (EDT) to discuss its quarterly results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the conference call.

About the Company

CVS Health is a pharmacy innovation company helping people on their path to better health. Through its nearly 9,700 retail locations, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 90 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. By their nature, all forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission filings, including those set forth in the Risk Factors section and under the section entitled “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Non-GAAP Financial Measures

The following provides reconciliations of certain non-GAAP financial measures presented in this Form 8-K to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company uses the non-GAAP measures “Adjusted EPS” and “Free Cash Flow” to assess and analyze underlying business performance and trends. Management believes that providing these non-GAAP measures enhances investors’ understanding of the Company’s performance.

The Company defines Adjusted Earnings per Share, or Adjusted EPS, as income from continuing operations excluding the impact of certain adjustments such as the amortization of intangible assets, acquisition-related transaction and integration costs, adjustments to legal reserves in connection with certain legal settlements, charges in connection with store rationalization, losses on early extinguishments of debt, and losses on settlements of defined benefit pension plans, divided by the Company’s weighted average diluted shares outstanding. The Company believes that this measure enhances investors’ ability to compare the Company’s past financial performance with its current performance.

The Company defines Free Cash Flow as net cash provided by operating activities less net additions to property and equipment (i.e., additions to property and equipment plus proceeds from sale-leaseback transactions). Management uses this non-GAAP financial measure for internal comparisons and finds it useful in assessing year-over-year cash flow performance.

These non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP. Adjusted EPS should be considered in addition to, rather than as a substitute for, income before income tax provision as a measure of our performance. Free Cash Flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. The Company’s definitions of Adjusted EPS and Free Cash Flow may not be comparable to similarly titled measurements reported by other companies.

Investor Contact:
Nancy Christal
Senior Vice President
Investor Relations
(914) 722-4704

Media Contact:
Carolyn Castel
Vice President
Corporate Communications
(401) 770-5717

Source: CVS Health

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CVS Health appoints Thomas M. Moriarty to the newly created role of chief policy and external affairs officer

CVS Health appoints Thomas M. Moriarty to the newly created role of chief policy and external affairs officer

 

WOONSOCKET, R.I., 2017-Apr-07 — /EPR Retail News/ — CVS Health (NYSE: CVS) today (April 6, 2017) announced that current executive vice president and general counsel Thomas M. Moriarty has been appointed to the newly created role of chief policy and external affairs officer for the nation’s largest pharmacy innovation company.

Moriarty will continue to report directly to President and CEO Larry Merlo, and will bring together corporate communications, legal, government affairs and public policy under one operating unit to manage the company’s external affairs in Washington, D.C. and state capitals across the country. In his expanded role, Moriarty will manage at the epicenter of corporate strategy and counsel, bringing an integrated set of capabilities to impact and shape national and state-specific public policy for CVS Health and its businesses. From this vantage point, Moriarty and his team will help promote the company’s role in reshaping a health care industry that is more accessible and affordable, and that delivers better outcomes for patients.

“Tom has been an integral member of the CVS Health executive team as chief strategy officer and general counsel, and brings a tremendous wealth of public policy expertise to his expanded responsibilities that allow us to bring greater value to the health care system,” said Larry Merlo, president and chief executive officer. “Tom’s new role will deliver an integrated approach to policy development and external engagement so the company can contribute to the public dialogue and bring forth innovative solutions to important legislative and regulatory proposals. As we work to navigate the changes in healthcare and policy over the next few years, I am pleased to have Tom leading this effort.”

“The public policy and health care landscapes in the coming months and years will be some of the most important of our time for our communities and country in terms of patient care and strengthening the delivery system,” said Moriarty. “As a company that touches more than 100 million consumers and patients at multiple points along the health care continuum each year, we have learned valuable lessons on how to drive better patient outcomes and lower health care costs. We look forward to sharing our company’s insights on important policy initiatives as we work collaboratively with elected officials and health care policy experts at the local, state and national levels.”

Moriarty joined CVS Health in 2012, and since that time has held several senior roles, including general counsel, chief strategy officer, and chairman of Red Oak Sourcing.

About CVS Health

CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 9,700 retail locations, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 90 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Media Contact:
Joe Goode
401-770-9820
Joseph.Goode@CVSHealth.com

SOURCE: CVS Health

###

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Joint Effort of CVS Health, University of Pittsburgh School of Pharmacy, and Pittsburgh Public Schools Aims to Prevent Youth Drug Abuse

PITTSBURGH, 2017-Mar-27 — /EPR Retail News/ — CVS Health (NYSE: CVS), University of Pittsburgh School of Pharmacy and the Pittsburgh Public Schools today (March 23, 2017) announced a unique public-private partnership that will bring CVS Health’s prescription drug abuse prevention program, Pharmacists Teach, to students in the Pittsburgh Public Schools, with the help of student pharmacists from the University of Pittsburgh School of Pharmacy.

In 2015, CVS Health developed the Pharmacists Teach curriculum, in coordination with the Partnership for Drug-Free Kids, to help curb the growing opioid abuse epidemic. CVS Pharmacists have delivered the program to more than 200,000 students across the country. With the help of University of Pittsburgh student pharmacists, the program will dramatically expand in the Pittsburgh area, reaching thousands of students.

“CVS Health is committed to addressing and preventing prescription drug abuse in the communities we serve, and we started the Pharmacists Teach program because we know pharmacists can provide a unique and trusted perspective on the dangers of prescription drug abuse,” said Larry Merlo, President and Chief Executive Officer of CVS Health. “I’m extremely proud we’ve been able to partner with the University of Pittsburgh School of Pharmacy to expand the reach of the Pharmacists Teach program to so many public schools in Pittsburgh. I know Pitt’s pharmacy students will bring an influential and meaningful voice to this issue for so many local teens.”

University of Pittsburgh School of Pharmacy Dean Patricia Kroboth stated that, “This partnership is about people the dedicated professionals in the Pittsburgh Public Schools, at CVS Health, and at the Pitt School of Pharmacy all working together to improve the health of our young people in our Pittsburgh community.”

“We are truly thankful to both the University of Pittsburgh School of Pharmacy and CVS Health for this valuable relationship,” said Dr. Dara Ware Allen, Assistant Superintendent, Pittsburgh Public Schools. “Through this partnership students will learn the consequences associated with the misuse of prescription drugs, while also gaining insight into the career of pharmacy through the experiences of college students not much older than themselves.”

Dozens of student pharmacists will be delivering the program to middle and high schools across the Pittsburgh Public Schools, the first large, urban school system to partner with CVS Health across an entire district. Pitt Pharmacy is also CVS Health’s first university partner in delivering these presentations. Teachers and school administrators in Pittsburgh and the surrounding areas are invited to reach out to CVS Health to schedule a presentation.

About CVS Health
CVS Health (NYSE: CVS) is a pharmacy innovation company helping people on their path to better health. Through its more than 9,700 retail locations, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 90 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

About the University of Pittsburgh School of Pharmacy
The School of Pharmacy has been developing leaders who have been driving the future of pharmacy for over 135 years. We investigate, discover, and create ways to improve patient health and, through partnerships, change practice and improve efficiency of care. Pitt Pharmacy ranks in the top ten in NIH funded research and in US News and World Report among schools of pharmacy. The School of Pharmacy leads the way in education, personalizing education and getting students to expert faster. Chartered in 1878, the School of Pharmacy is among the oldest pharmacy schools in the country.

About Pittsburgh Public Schools
The Pittsburgh Public School District is the largest of 43 school districts in Allegheny County and second largest in Pennsylvania. The District serves approximately 25,000 students in Pre-Kindergarten through Grade 12. Under the leadership of Superintendent Anthony Hamlet, Pittsburgh’s public school system is in the midst of the development of a five-year strategic plan that is aimed at creating a student-centered culture built on continuous improvement. The Pittsburgh Public Schools offers students a variety of options and opportunities that will help them succeed in school, and prepare them for whatever comes next college, career and life.

Media Contacts:
Erin Shields Britt
Corporate Communications, CVS Health
(401) 770-9237
Erin.Britt@CVSHealth.com

Courtney Caprara
UPMC Media Relations
(412) 647-6190
capraracl@upmc.edu

Jan K. Shaw
Director of Communications, Pitt Pharmacy
(412) 383-6970
shawj@pitt.edu

Ebony Pugh
Public Information Officer, Pittsburgh Public Schools
412-529-3616
epugh1@pghboe.net

SOURCE: CVS Health

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The CEO Roundtable on Cancer accredits CVS Health with the CEO Cancer Gold Standard

WOONSOCKET, R.I., 2017-Feb-15 — /EPR Retail News/ — The CEO Roundtable on Cancer has accredited CVS Health (NYSE: CVS), the nation’s largest pharmacy innovation company, with the CEO Cancer Gold Standard, recognizing its efforts to reduce the risk of cancer for its employees and covered family members. The company earned the distinguished Gold Standard accreditation for taking actions in five key areas of health and wellness to fight cancer in the workplace, including: discouraging tobacco use; encouraging physical activity; promoting healthy diet and nutrition; detecting cancer at its earliest stages; and providing access to quality care.

In 2014, CVS Health became the first and remains the only national pharmacy chain to stop the sale of cigarettes and tobacco products a leading cause of cancer and implemented a variety of smoking prevention and cessation programs for its employees.

“This is certainly an honor that recognizes our hard work in building a culture of health and wellness,” said Larry Merlo, CVS Health president and chief executive officer. “Receiving the CEO Cancer Gold Standard accreditation underscores our decision to eliminate the sale of tobacco from our retail stores and the innovative programs, resources and incentives we’ve put in place to help our colleagues achieve their best health and reduce their risk of cancer.”

The CEO Roundtable on Cancer, a nonprofit organization of CEOs, founded by former President George H.W. Bush, developed and administers the Gold Standard, a workplace accreditation program which encourages and recognizes the commitment of organizations that take concrete actions to address cancer in their workplaces. Nearly 200 private, nonprofit and government employers in a wide range of occupational categories have earned Gold Standard accreditation. In addition to the now 240,000 CVS Health employees, more than six million employees and family members are touched by the tenets of this workplace wellness and culture framework.

“We are pleased to recognize the efforts of CVS Health,” said Robert A. Bradway, chairman of the CEO Roundtable on Cancer. “I hope the leadership and powerful example set by Chief Executive Officer Larry Merlo and the team at CVS Health will encourage other employers across all industries to meet this standard of excellence in cancer prevention, early detection and quality cancer care.”

In addition to the National Cancer Institute (NCI) and the Centers for Disease Control and Prevention (CDC), 16 NCI-designated cancer centers and more than 100 other hospitals have earned Gold Standard accreditation. CEOs from many industries are keenly aware of the life-improving impact they can have on health and controlling healthcare costs when they address cancer and other chronic diseases. Gold Standard employers include: Amgen, Avis Budget Group, Dell, Harvard T.H. Chan School of Public Health, Hogan Lovells, Johnson & Johnson, Lowe’s, Novartis, the Ohio State University, SAS, State Farm, and many Blue Cross affiliates.

About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 9,700 retail locations, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 90 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

About the CEO Roundtable on Cancer
The CEO Roundtable on Cancer was founded in 2001, when former President George H.W. Bush challenged a group of executives to “do something bold and venturesome about cancer within your own corporate families.” The CEOs responded by creating and encouraging the widespread adoption of the CEO Cancer Gold Standard which calls for organizations to evaluate their health benefits and workplace culture and take extensive, concrete actions in five key areas of health and wellness to address cancer in the workplace. For more information on the CEO Cancer Gold Standard and the free web-based accreditation process, please visit www.CancerGoldStandard.org.

Media Contacts:

Joe Goode
401-770-9820
Joseph.Goode@CVSHealth.com

John Dorna
919-531-0966
John.Dornan@CEORoundtableOnCancer.org

SOURCE: CVS Health

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CVS Health Charity Classic reaches $20 million in philanthropic support to Southeastern New England nonprofits since 1999

CVS Health Charity Classic reaches $20 million in philanthropic support to Southeastern New England nonprofits since 1999

 

WOONSOCKET, R.I., 2016-Dec-22 — /EPR Retail News/ — At a celebration today (December 20, 2016) at the corporate headquarters of CVS Health, President and CEO Larry Merlo announced that the CVS Health Charity Classic has reached an important milestone a total of $20 million dollars in philanthropic support to hundreds of nonprofits in Southeastern New England since the event series’ inception in 1999. This year, the CVS Health Charity Classic donated more than $1 million dollars to nearly 100 area charities.

“The CVS Health Charity Classic has an 18-year history of supporting the meaningful work being done by nonprofits in Southeastern Massachusetts and Rhode Island,” Merlo said. “We are proud to reach this major milestone in donations made that enables us to give back to those who need it most in the areas of health care, education and social services.”

Merlo along with tournament chairperson Eileen Howard Boone and PGA Tour professionals and CVS Health Charity Classic co-chairs Billy Andrade and Brad Faxon unveiled this year’s donation to the nonprofit recipients and working charities that volunteered their time during the tournament in front of CVS Health colleagues and CVS Health Charity Classic sponsors.

Tim Wakefield, former Boston Red Sox pitcher, was on-hand to discuss how the tournament has supported the Boston Red Sox Foundation over the years.

“Support from the CVS Health Charity Classic has been instrumental in allowing us to fulfill our mission of serving the health, education, recreation and social service needs of children and families across New England,” Wakefield said. “We are grateful for our partnership and look forward to continuing to work together in the future.”

In addition to the Boston Red Sox Foundation, 90 nonprofits from Rhode Island and southeastern Massachusetts will also benefit from the CVS Health Charity Classic, including:

  1. Adopt-a-Family
  2. After Prom Barrington, Barrington High School Parents’ Association
  3. Alzheimer’s Foundation of America
  4. American Diabetes Association of New England
  5. American Heart Association
  6. American Lung Association of the Northeast
  7. American National Red Cross
  8. Amos House
  9. Arthritis Foundation, New England Region, Inc.
  10. Autism Project
  11. Barrington Arts Alive!
  12. Barrington Community School
  13. Barrington Education Foundation
  14. Barrington Public Library
  15. Bayside YMCA
  16. Blackstone Valley Prep Mayoral Academy
  17. BOKS, Build Our Kids Success
  18. Boys & Girls Club of Pawtucket
  19. Boys & Girls Club of Taunton
  20. Boys & Girls Club of Woonsocket
  21. Boys & Girls Clubs of Providence
  22. Brain Injury Association of Rhode Island
  23. Children’s Friend
  24. Children’s Wish Group of Rhode Island
  25. Citizens Scholarship Foundation of Barrington
  26. City Year Providence
  27. College Visions
  28. Community Preparatory School
  29. Confetti Foundation
  30. Crossroads Rhode Island
  31. Day One
  32. Economic Progress Institute
  33. Emma Pendleton Bradley Hospital
  34. Farm Fresh Rhode Island (Rhode Island Healthy Schools Coalition)
  35. Friends of Barrington Senior Center, Inc
  36. Gaits of Harmony
  37. Girl Scouts of Southeastern New England
  38. Girls on the Run
  39. Gloria Gemma Breast Cancer Resource Foundation
  40. Golf Fights Cancer
  41. Golf Foundation of RI Button Hole
  42. Hasbro Children’s Hospital
  43. Highlander Charter School
  44. Hockomock Area YMCA
  45. Hole in the Wall Gang Camp
  46. Home & Hospice Care of Rhode Island
  47. Inspiring Minds
  48. Juvenile Diabetes Research Foundation of RI
  49. Jewish Alliance of Greater Rhode Island
  50. Learning Center for the Deaf Inc
  51. March of Dimes
  52. Meeting Street
  53. Morgan Pressel Foundation
  54. Museum of Work and Culture
  55. Narragansett Council, Boys Scouts of America
  56. Ocean Conservancy
  57. Old Colony Habitat for Humanity
  58. Our Sisters’ School
  59. PeaceLove Foundation
  60. Plan RI
  61. Project Undercover, Inc.
  62. Providence After School Alliance (PASA)
  63. Providence Children’s Museum
  64. Resilient Kids
  65. Rhode Island Community Food Bank
  66. Rhode Island Hospital Foundation/Richard Browning Center Research Fund
  67. Rhode Island Parent Information Network
  68. Rhode Island Public Radio
  69. Rhode Islanders Sponsoring Education
  70. Ronald McDonald House of Providence
  71. Salute Military Golf Association
  72. Salvation Army
  73. San Miguel Education Center
  74. Save the Bay
  75. Serve Rhode Island
  76. Sojourner House
  77. Special Olympics Rhode Island
  78. Spurwink | RI
  79. Stadium Theatre Foundation
  80. Tap In
  81. The Learning Community Charter School
  82. The Providence Center
  83. Tides Family Services
  84. URI Foundation – Golf Team
  85. Wolf School
  86. Women’s Center of Rhode Island
  87. Woonsocket Rotary Charities Foundation Inc.
  88. Woonsocket Schools
  89. Year Up
  90. Youth Pride Inc.

“Over the past 18 years, Brad and I have witnessed firsthand how much of an impact the CVS Health Charity Classic has made on hundreds of nonprofits in this region,” said Andrade. “We are incredibly thankful for the role the tournament’s success has played in improving the lives of those in our hometown community.”

The 2017 CVS Health Charity Classic, which attracts world-class golfers each year and is the largest charitable sporting event in Rhode Island, will kick off on June 18, 2017 at Rhode Island Country Club in Barrington, R.I.

For photos and videos from today’s event and updates throughout the year, follow @CVSClassicGolf on Twitter and like CVS Health Charity Classic on Facebook.

About the CVS Health Charity Classic
The CVS Health Charity Classic is Rhode Island’s largest charitable sporting event and hosts some of the best PGA and LPGA professional golfers in the world. Funds generated by the tournament, launched in 1999, are distributed to area nonprofit organizations that provide vital funding to a range of programs serving children, families and people in transition throughout Southeastern New England.

About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 9,600 retail pharmacies, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 80 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, the Company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at www.cvshealth.com.

Media Contacts:
Mary Alfieri
CVS Health Corporate Communications
Mary.Alfieri@CVSHealth.com
401-770-9811 (O)

SOURCE: CVS Health Charity Classic

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CVS Health outlined strategies to drive growth and shareholder value at its 2016 annual Analyst Day

  • CVS Health executives highlight how the company is making care more affordable, accessible and effective, and sees compelling opportunities in a robust health care market
  • Company’s unique suite of leading assets help drive superior health outcomes at lower costs
  • Guidance for GAAP diluted EPS from continuing operations updated for charges related to streamlining initiative that is expected to deliver $3 billion in cumulative savings over 5 years; Guidance for Adjusted EPS reaffirmed for 2016 and 2017

WOONSOCKET, R.I., 2016-Dec-20 — /EPR Retail News/ — CVS Health (NYSE:CVS) held its annual Analyst Day in New York City today (December 15, 2016), outlining strategies for how the company will drive long-term growth and shareholder value. In his opening remarks, CVS Health President and CEO Larry Merlo stated, “By making care more affordable, accessible and effective, we can deliver value to all health care stakeholders, allowing us to be a partner of choice as they look to achieve their health care goals. Despite all the changes happening in health care, success will ultimately be determined by how effective you are at executing on these three objectives. And we remain confident that CVS Health is well-positioned to deliver on all three.”

“We continue to have the most extensive suite of enterprise assets”, continued Merlo. “On a standalone basis, each one would be market leading. Yet what really sets them apart is our ability, largely through technology, to integrate pharmacy care from the payor, to the provider, to the patient.” Borrowing a colloquial phrase widely used in telecommunications to refer to the final leg of delivering services to customers, Merlo declared, “We own the last mile of service in the delivery of health care. If you think about all of our enterprise assets, each one delivers care directly to the health care consumer. And keep in mind that retail pharmacy is quite often the front door to health care, with the highest frequency of patient interaction. The face-to-face interactions between patients and our 30,000 pharmacists and clinicians provide us with an unmatched ability to help change consumer behavior and drive better health outcomes at a lower cost. With increasing consumerism and what we call the “retailization” of health care, improving clinical outcomes and patient satisfaction is of significant value to our health care partners.”

Also at the meeting, Dave Denton, executive vice president and chief financial officer, reviewed the company’s expectations for 2016 and 2017 while also discussing the company’s long-term growth targets and plans to maximize shareholder value.

“Over the past three years, our strong earnings growth, solid working capital management, disciplined capital investments and sound debt management have enabled us to generate a significant amount of cash that has been made available for enhancing shareholder value, and we have done just that. We have a proven track record of success in meeting our long-term growth targets and we are targeting, on average, 10% growth in Adjusted EPS longer-term. We also expect $7 billion to $8 billion of cash to be available annually for enhancing shareholder value.”

“Given the recent changes in the marketplace and our outlook for 2017, we have put a plan in place to return to more robust levels of growth,” Denton added. “One element of this plan relates to our multi-year enterprise streamlining initiative, which aims to further improve productivity and to solidify the company’s low-cost provider status. We expect to deliver approximately $700 to $750 million in annual savings across the enterprise by 2021, with cumulative savings of nearly $3 billion over the next five years. This will also free up capital for strategic investments that can help drive the continued growth and success of the enterprise,” Denton concluded.

2016 and 2017 Guidance

GAAP diluted EPS from continuing operations for 2016 and 2017 has been updated to reflect an estimated $35 million asset impairment charge and an estimated $230 million lease obligation charge, respectively, for store rationalization related to the enterprise streamlining initiative. GAAP diluted EPS is now expected to be in the range of $4.82 to $4.88 in 2016 and $5.02 to $5.18 in 2017. The company reaffirmed its previous Adjusted EPS outlook for both 2016 and 2017. The company expects to deliver Adjusted EPS of $5.77 to $5.83 in 2016 and $5.77 to $5.93 in 2017. The Adjusted EPS guidance assumes the completion of $5 billion in share repurchases during 2017. The company reaffirmed its previous cash flow outlook for 2016, and expects to deliver cash flow from operations of $9.1 billion to $9.3 billion and free cash flow of $6.8 billion to $7.0 billion this year. In 2017, the company expects to deliver cash flow from operations of $7.7 billion to $8.6 billion and free cash flow of $6.0 billion to $6.4 billion.

The company also announced that its Board of Directors has approved an 18 percent increase in the annual dividend in 2017, an increase that translates to $2.00 per share, up 30 cents per share over 2016. This is the company’s fourteenth consecutive year with a dividend increase. In addition, as stated on the company’s third quarter earnings call, with a new $15 billion share repurchase authorization, the company now has more than $18 billion authorized to be used for share repurchases over the next few years.

In other presentations, Jon Roberts, president of CVS Caremark, addressed how CVS Health’s pharmacy benefit management business continues to be the PBM of choice with another successful selling season and is continually innovating to meet the latest health care challenges. Alan Lotvin, executive vice president of CVS Specialty, discussed how the unique integrated PBM-specialty model is best-positioned to meet the diverse and complex needs of patients, payors, and providers. Helena Foulkes, president of CVS Pharmacy, outlined how the retail pharmacy business can be the best partner for all PBMs and health plans by leveraging the company’s enterprise assets and offering a menu of bundled services that can provide significant value to payors. She also highlighted growth strategies for the front store, long-term care pharmacy and MinuteClinic businesses.

Audio and Video Webcast

The company simultaneously broadcast an audio and video webcast of the meeting through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast and supporting materials will be archived and available on the website for a one-year period following the meeting.

About CVS Health

CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 9,600 retail pharmacies, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with more than 80 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. By their nature, all forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission filings, including those set forth in the Risk Factors section and under the section entitled “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, namely Adjusted EPS and Free Cash Flow. In accordance with SEC regulations, you can find the definitions of the Non-GAAP items mentioned, as well as the reconciliations to comparable GAAP measures, further in this press release.

Non-GAAP Financial Measures

The following provides reconciliations of certain non-GAAP financial measures presented in this Form 8-K to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company uses the non-GAAP measures “Adjusted EPS” and “Free Cash Flow” to assess and analyze underlying business performance and trends. Management believes that providing these non-GAAP measures enhances investors’ understanding of the Company’s performance.

The Company defines Adjusted Earnings per Share, or Adjusted EPS, as income from continuing operations excluding the impact of the amortization of intangible assets, acquisition-related integration costs, loss on early extinguishment of debt, charge in connection with store rationalization, charge related to a disputed 1999 legal settlement and loss on settlement of defined benefit pension plan divided by the Company’s weighted average diluted shares outstanding. The Company believes that this measure enhances investors’ ability to compare the Company’s past financial performance with its current performance.

The Company defines Free Cash Flow as net cash provided by operating activities less net additions to properties and equipment (i.e., additions to property and equipment plus proceeds from sale-leaseback transactions). Management uses this non-GAAP financial measure for internal comparisons and finds it useful in assessing year-over-year cash flow performance.

These non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP. Adjusted EPS should be considered in addition to, rather than as a substitute for, income before income tax provision as a measure of our performance. Free Cash Flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. The Company’s definitions of Adjusted EPS and Free Cash Flow may not be comparable to similarly titled measurements reported by other companies.

The Company has not provided a reconciliation of the long-term Adjusted EPS and cash available for enhancing shareholder value targets announced today to GAAP EPS and net cash provided by operating activities. The Company is unable to reasonably estimate the GAAP items excluded from the multi-year, long-term Adjusted EPS and cash available for enhancing shareholder value targets.

Adjusted Earnings Per Share Guidance

(Unaudited)

The following reconciliation of estimated income before income tax provision to estimated adjusted earnings per share contains forward-looking information. All forward-looking information involves risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking information for a number of reasons as described in our Securities and Exchange Commission filings, including those set forth in the Risk Factors section and under the section entitled “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. See also “Non-GAAP Financial Measures” above for more information on how we calculate Adjusted EPS.

Free Cash Flow Guidance

(Unaudited)

The following reconciliation of net cash provided by operating activities to free cash flow contains forward-looking information. All forward-looking information involves risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking information for a number of reasons as described in our Securities and Exchange Commission filings, including those set forth in the Risk Factors section and under the section entitled “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. See also “Non-GAAP Financial Measures” above for more information on how we calculate Free Cash Flow.

Contacts:

Nancy Christal
Investor Relations
401.770.3614

Carolyn Castel
Corporate Communications
401.770.5717

Source: CVS Health

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American Pharmacists Month: CVS Health celebrates its 30,000 pharmacists this October

WOONSOCKET, R.I., 2016-Oct-04 — /EPR Retail News/ — In recognition of October’s American Pharmacists Month, CVS Health (NYSE:CVS) is celebrating the important role its nearly 30,000 pharmacists play in helping people on their path to better health. The company’s pharmacists are helping to change the way health care is delivered by increasing access, lowering costs and improving care quality in the company’s retail, mail service and specialty pharmacies across the country.

“Whether providing face-to-face consultations at the pharmacy counter or helping patients with complex conditions manage their specialty medications by phone, our pharmacists are truly the front line of health care,” said Larry Merlo, President and CEO, CVS Health. “Our pharmacists are not only trusted resources for patients, but are also key players in the evolution of CVS Health, delivering innovative products and services and enabling our patients and clients to manage health in more effective and affordable ways.”

Beyond simply filling prescriptions, CVS Health pharmacists are helping the company’s patients manage their health care through a number of programs and services.

  • As medication experts within the broader health care team, CVS Health pharmacists are helping identify potential barriers to medication adherence and offering solutions to help encourage patients to stay adherent. Pharmacists also educate patients about potential side effects and drug interactions and help identify potential gaps in care for those with complex medical conditions.
  • CVS Pharmacy and CVS Specialty pharmacists are working together to provide patients choice and flexibility in how they access their specialty medications and receive expert clinical support through the Specialty Connect program. The partnership gives patients the option to bring their specialty prescriptions to any CVS Pharmacy, while still receiving insurance guidance and dedicated clinical support by phone from a team of specialty pharmacy experts at CVS Specialty.
  • Pharmacists are providing convenient and accessible access to flu shots and other vaccinations at every CVS Pharmacy location nationwide seven days a week with no appointment needed, including evenings and weekends.
  • CVS pharmacists are helping patients understand their prescription insurance coverage options under Medicare Part D and the Affordable Care Act during open enrollment, which begins on October 15 and November 1, respectively.
  • CVS pharmacists are working to reduce prescription drug abuse through the company’s Pharmacists Teach program. This community outreach program connects pharmacists with high school health classes to share vital information about the dangers of improper drug use. CVS pharmacists have already delivered this program to more than 100,000 students across the country.

In 2016, CVS Health welcomed nearly 6,000 pharmacists from Target to the company. Noted Merlo, “These new colleagues bring a wealth of health care knowledge and expertise to our team and are spearheading our efforts to introduce Target guests to our suite of pharmacy care services and innovative digital pharmacy tools.”

In addition, CVS Health will celebrate National Pharmacy Technician Day on October 18 to recognize the company’s more than 50,000 pharmacy technicians for the valued support they provide to CVS pharmacists and pharmacy teams across the organization.

About CVS Health

CVS Health (NYSE: CVS) is a pharmacy innovation company helping people on their path to better health. Through its more than 9,600 retail pharmacies, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 80 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, the Company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

MEDIA CONTACT:

Amy Lanctot
(401) 770-2931
Amy.Lanctot@CVSHealth.com

SOURCE: CVS Health

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CVS Health president and CEO Larry Merlo to present at the Morgan Stanley Global Healthcare Conference

WOONSOCKET, R.I., 2016-Sep-01 — /EPR Retail News/ — CVS Health Corporation (NYSE: CVS) today (Aug. 31, 2016) announced that Larry Merlo, the company’s president and chief executive officer, will be speaking to investors at the Morgan Stanley Global Healthcare Conference on September 13, 2016, at approximately 8:00 a.m. ET.

An audio webcast of the event will be broadcast simultaneously on the Investor Relations portion of the CVS Health website for all interested parties, and will be archived and available for a one-year period. To access the webcast or an archive of the event, visit http://investors.cvshealth.com.

About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 9,600 retail pharmacies, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 80 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, the Company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Contact:

Carolyn Castel
carolyn.castel@cvshealth.com

SOURCE: CVS Health Corporation

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CVS Health’s executives to present at 2016 America’s Health Insurance Plans Institute and Expo in Las Vegas, Nevada

WOONSOCKET, R.I., 2016-Jun-17 — /EPR Retail News/ — CVS Health (NYSE: CVS) President and Chief Executive Officer Larry Merlo and Chief Medical Officer Troyen A. Brennan, M.D., will deliver remarks about the major public health challenges facing our country at this week’s annual America’s Health Insurance Plans (AHIP) Institute and Expo in Las Vegas, Nevada. CVS Health’s executives will discuss how innovation can create new models of patient care and delivery to address rising rates of chronic diseases while lowering health care costs for both payers and patients.

“Between now and 2030, the cumulative cost of chronic illness is projected to grow to $42 trillion and, despite all efforts to encourage Americans to live healthier lifestyles, we don’t seem to be gaining ground,” Merlo says. “I believe the way to find solutions is to look at the problems through the eyes of your customers, and at CVS Health, we are working to do just that by collaborating with stakeholders across the health care continuum including patients, caregivers, providers and payers to provide better, more cost-effective care.”

In his keynote address during the AHIP General Session on Thursday, Merlo will outline innovative patient care delivery strategies that increase health care choice, quality and access with the goal of delivering better health outcomes. Examples include the expanding role of retail health clinics, such as CVS MinuteClinic, in providing high-quality care in convenient, low-cost settings and the rapid rise in on-demand digital tools that make care and disease management easier and improve overall health care delivery. In addition, Merlo will emphasize that pharmacy care is one of the most cost-effective solutions to address rising health care costs.

“In fact, increasing medication adherence for chronic diseases such as high cholesterol, diabetes and hypertension results in significant returns of five to nine times that of the additional pharmacy spend and could drive billions in costs out of the health care system,” Merlo adds.

Merlo will also talk about the essential role pharmacists play as they work closely with providers, payers and patients to drive the use of the highest-value drugs, ensure patients understand how to take them, prevent errors, support patients during care transitions and intervene when prescriptions are not filled or problems arise.

In remarks during a separate presentation at the AHIP meeting on Friday, Brennan will describe how pharmacy benefits manager CVS Caremark is working to help control the cost of medicines through innovative plan design and is evolving to keep pace with a rapidly changing marketplace. He will also examine the factors impacting drug trend, including expensive specialty medicines as well as brand drug price inflation and utilization.

“The problem today is that even though clinically effective and lower cost generic alternatives are often available, we still see high brand utilization in certain categories, such as diabetes,” Brennan says. “The most effective thing we can do is to move people from higher cost branded drugs to their generic alternatives, which not only aligns with clinical practice guidelines but also reduces waste, saves money and can improve health outcomes.”

About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 9,600 retail pharmacies, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 80 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, the Company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Media Contacts:
Christine Cramer
CVS Health
(401) 770-3317
christine.cramer@cvshealth.com

Christina Beckerman
CVS Health
(401) 770-8868
christina.beckerman@cvshealth.com

SOURCE CVS Health

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CVS Health Corporation president and CEO Larry Merlo to present at the 34th Annual J.P. Morgan Healthcare Conference on January 12, 2016

WOONSOCKET, R.I., 2016-1-4 — /EPR Retail News/ — CVS Health Corporation (NYSE: CVS) today announced that Larry Merlo, the company’s president and chief executive officer, will be making a presentation to investors at the 34th Annual J.P. Morgan Healthcare Conference on January 12, 2016. He is scheduled to present at approximately 7:30 a.m. PT (10:30 a.m. ET).

An audio and video webcast of the event will be broadcast simultaneously on the Investor Relations portion of the CVS Health website for all interested parties, and will be archived and available for a one-year period. To access the webcast or an archive of the event, visit http://investors.cvshealth.com.

About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health.  Through our more than 9,500 retail pharmacies, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with more than 70 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, CVS Health enables people, businesses and communities to manage health in more affordable, effective ways.  This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs.  Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Investor Contact:

Nancy Christal
Senior Vice President
Investor Relations
(914) 722-4704

Media Contact:

Carolyn Castel
Vice President
Corporate Communications
(401) 770-5717

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CVS Health CEO Larry Merlo announced $1.3m donation to support dozens of charities across Rhode Island and southeastern Massachusetts

CVS Health CEO Larry Merlo announced $1.3m donation to support dozens of charities across Rhode Island and southeastern Massachusetts

WOONSOCKET, R.I., 2015-12-22 — /EPR Retail News/ — At a celebration today recognizing area non-profit organizations supported by the CVS Health Charity Classic, CVS Health President and CEO Larry Merlo announced that $1.3 million dollars will be donated from the 2015 tournament to support dozens of charities across Rhode Island and southeastern Massachusetts.

In addition, CVS Health announced dates for the 2016 CVS Health Charity Classic, which is scheduled for June 26 – 28 at Rhode Island Country Club in Barrington, R.I.

This year’s donation from the annual golf tournament, which attracts world-class golfers each year and is the largest charitable sporting event in Rhode Island, brings the total amount donated over 17 years to more than $19 million.

“Supporting organizations that make a real difference in the community and provide the support necessary to bring the CVS Health Charity Classic to life is one of the most important ways we give back in our home state,” Merlo said. “We are proud to support the meaningful work being done by these non-profits to provide assistance to those who need it most in the areas of health care, education and social services.”

Merlo, along with Tournament Chairperson Eileen Howard Boone and PGA Tour professionals and CVS Health Charity Classic co-chairs Billy Andrade and Brad Faxon, awarded the donations in front of a crowd that included CVS Health colleagues, many of the awarded non-profits, working charities that volunteer their time during the tournament and CVS Health Charity Classic sponsors.

A number of the CVS Health Charity Classic non-profit partners were on-hand to highlight how the tournament has supported their efforts throughout the year. This included a singing performance by a Boys & Girls Clubs of Providence youth and a speech by Joe Andruzzi, president of the Joe Andruzzi Foundation which supports cancer patients and their families, former New England Patriots player, Super Bowl winner and cancer survivor. “We’re very fortunate for this support from the CVS Health Charity Classic which allows us to provide assistance to more patients and families as they recover from both the physical and financial stresses of a cancer diagnosis,” said Andruzzi. “We’re truly grateful for the support we receive from such a community-minded organization, which gives us the opportunity to financially assist as many families as we can as they go through a difficult time.”

In all, 103 local non-profit organizations across Rhode Island and southeastern Massachusetts will benefit this year from the CVS Health Charity Classic. These include:

A Wish Come True, Inc.

American Diabetes Association, RI

Adopt-a-Family

ALS Rhode Island

Alzheimer’s Foundation of America

American Lung Association, Rhode Island

American Heart Association

American Red Cross

Amos House

Arthritis Foundation, RI

Arts Alive! Barrington

Bags of Hope

Boys & Girls Club of Blackstone Valley

Boys & Girls Club of Pawtucket

Boys & Girls Club of Taunton

Boys & Girls Club of Warwick

Barrington Community School

Barrington Education Foundation

Barrington Public Library

Barrington Senior Center

Barrington TAPIN

Bayside Family YMCA of Barrington

Big Brothers Big Sisters of the Ocean State

Blessings in a Backpack

Boston Red Sox Foundation

Boy Scouts of Rhode Island

Boys & Girls Clubs of Providence

Bradley Hospital

Brain Injury Association of Rhode Island

Build Our Kids’ Success (BOKS)

Button Hole Golf

Children’s Friend

Children’s Wishes of Rhode Island

Citizens Scholarship Foundation of Barrington

City Year Providence

College Visions

Community Preparatory School

Crossroads Rhode Island

Day One

Donate Life New England

Easter Seals of Rhode Island

Economic Progress Institute

Families First Rhode Island

Gabrielle Dinsmore Heart and Hope Fund

Gaits of Harmony

Girls on the Run

Gloria Gemma Breast Cancer Resource Foundation

Golf Fights Cancer

Habitat for Humanity

Hasbro Children’s Hospital Golf Invitational

Highlander Charter School

Hockomock Area YMCA

Home & Hospice Care of Rhode Island

Juvenile Diabetes Research Foundation of RI

Jewish Alliance of Greater Rhode Island

Joe Andruzzi Foundation

John E. Fogarty Foundation

March of Dimes Rhode Island Chapter

Meals on Wheels

Meeting Street

Michael H. Flanagan Foundation

Operation Gratitude

Our Sisters’ School

PASA (Providence After School Alliance)

PeaceLove Studios

Project GOAL

Providence Center Golf Tournament

Providence International Arts

Resilient Kids

Rhode Island Family Shelter

Rhode Island Community Food Bank

Rhode Island Parent Information Network

Richard A. Browning Medical Education Fund

RI Burn Foundation

RI Healthy Schools Coalition

RISE

Ronald McDonald House (RI)

Salvation Army Rhode Island

Save The Bay

Serve Rhode Island

Sojourner House

South Shore YMCA

Special Olympics Rhode Island

Spurwink|RI

St. Mary’s Home for Children

Stadium Theatre Performing Arts Centre

Station Fire Memorial Foundation

The Autism Project

The Learning Center for the Deaf

The San Miguel School Providence

Tides Family Services

Tomorrow Fund

University of Rhode Island Golf Team

VIPS (Volunteers in Providence Schools)

WaterFire Providence

Wolf School

Women’s Center of Rhode Island

Woonsocket Boys & Girls Clubs

Woonsocket Park Renovation

Woonsocket Rotary Days

YMCA of Greater Fall River

Youth Pride, Inc.

“The Charity Classic has always been about great golf and great charities,” said Faxon. “We continue to be proud of the success the tournament has had in improving the lives of so many.”

“As New England natives, Brad and I are so excited that the tournament has been able to donate more than $19 million dollars,” said Andrade. “We have had the opportunity to make a positive impact through our support of local organizations, and thanks to the dedication of many individuals, that impact will be even greater this year.”

For photos and videos from today’s event and updates throughout the year, follow @CVSClassicGolf on Twitter and like CVS Health Charity Classic on Facebook.

About the CVS Health Charity Classic
The CVS Health Charity Classic is Rhode Island’s largest charitable sporting event and hosts some of the best PGA and LPGA professional golfers in the world. Funds generated by the tournament, launched in 1999, are distributed to area nonprofit organizations that provide vital funding to a range of programs serving children, families and people in transition throughout Southeastern New England.

About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 7,900 retail drugstores, more than 1,000 walk-in medical clinics, a leading pharmacy benefits manager with more than 70 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, the Company enables people, businesses and communities to manage health in more affordable, effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.

Media Contacts

Mary Alfieri, CVS Health
(401) 770-9811
malfieri2@cvs.com

Dawn Ratte, (add)ventures
(401) 580-9597
dratte@addventures.com

SOURCE CVS Health Charity Classic

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CVS Health CEO Larry Merlo and CFO Dave Denton to speak at Morgan Stanley 2015 Global Healthcare Conference on Sep 17

WOONSOCKET, R.I., 2015-9-4 — /EPR Retail News/ — CVS Health Corporation (NYSE:  CVS) today announced that Larry Merlo, the company’s president and chief executive officer, and Dave Denton, executive vice president and chief financial officer, will be speaking to investors at the Morgan Stanley 2015 Global Healthcare Conference on September 17, 2015. They are scheduled to speak at approximately 8:00 a.m. (EDT).

An audio webcast of the presentation will be broadcast simultaneously through the Investor Relations portion of the CVS Health website for all interested parties. To access the webcast, visit http://investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the presentation.

About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health. Through its 7,800 retail pharmacies, nearly 1,000 walk-in medical clinics, a leading pharmacy benefits manager with more than 70 million plan members, and expanding specialty pharmacy services, the Company enables people, businesses and communities to manage health in more affordable, effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at www.cvshealth.com.

SOURCE CVS Health Corporation

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CVS Health to acquire Target’s pharmacy and clinic businesses for approximately $1.9 billion

  • CVS Health and Target to offer best-in-class pharmacy and medical clinic services to Target guests and plan to develop Target stores that include CVS/pharmacy
  • Transaction will expand CVS Health’s retail presence in new markets and enhance Target’s wellness offerings

Woonsocket, RI and Minneapolis, MN, 2015-6-17 — /EPR Retail News/ — CVS Health Corporation (NYSE:CVS) and Target Corporation (NYSE:TGT) announced today that they have entered into a definitive agreement for CVS Health to acquire Target’s pharmacy and clinic businesses for approximately $1.9 billion. Through this agreement, CVS Health will acquire Target’s more than 1,660 pharmacies across 47 states and operate them through a store-within-a-store format, branded as CVS/pharmacy. In addition, a CVS/pharmacy will be included in all new Target stores that offer pharmacy services. Target’s nearly 80 clinic locations will be rebranded as MinuteClinic, and CVS Health will open up to 20 new clinics in Target stores within three years of the close of the transaction. The new clinics will be part of CVS/minuteclinic’s plan to operate 1,500 clinics by 2017. In addition, CVS Health and Target plan to develop five to 10 small, flexible format stores over a two-year period following the deal close, which will each be branded as TargetExpress and include a CVS/pharmacy.

This strategic relationship brings together two leading retailers with complementary strengths, brands and cultures to enhance the health care experience for Target guests while expanding CVS Health’s retail presence in new markets, such as Seattle, Denver, Portland and Salt Lake City.  The transaction enables CVS Health to reach more patients, adding a new retail channel for its offerings, and expanding convenient options for consumers. Given CVS Health’s proven success in growing its business, the relationship is expected to benefit Target’s long-term traffic and sales growth. It also enables Target to strengthen its focus on wellness as a signature category.  Moving forward, enhanced efforts by Target will center on continuing to deliver products and experiences to help guests eat well, be active and find natural and clean label products.

“This strategic relationship with Target supports the highly complementary customer base, brand and culture we share,” said Larry Merlo, CVS Health President and CEO.  “When we introduced the new name for our company, CVS Health, we began a new era of growth with a broader health care focus and an appreciation of the rise of health care consumerism with consumer choice and accountability growing.  This relationship with Target will provide consumers with expanded options and access to our unique health care services that lead to better health outcomes and lower overall health care costs.”

“At Target, we’ve talked a lot about the evolving preferences of our guests and this partnership demonstrates that we’re committed to putting them at the forefront of everything we do,” said Brian Cornell, Target Chairman and CEO.  “By partnering with CVS Health, we will offer our guests industry leading health care services, and at the same time, sharpen our focus on elevating the way we deliver wellness products and experiences to our guests.”

Following completion of the transaction, Target guests will have access to CVS Health’s leading pharmacy care programs and medical clinic services.  Pharmacy programs, including Pharmacy Advisor, Specialty Connect and Maintenance Choice, will help consumers achieve better medication adherence through both improved convenience as well as enhanced pharmacy care counseling.  CVS Health has also committed to having a low-cost generic drug option available to Target’s cash-paying guests.  In addition, with MinuteClinic at Target locations, Target guests will have enhanced access to high-quality affordable medical care.  CVS Health customers will gain the option of an expanded, one-stop Target shopping experience, including apparel, home, fresh food and more, when seeking health care services.

The strategic relationship also unlocks future joint development opportunities.  Together, Target and CVS Health will carefully evaluate and select locations best-suited for new small format Target stores with a CVS/pharmacy inside.  Additionally, Target and CVS Health will explore innovative, new market offerings that have the potential to generate strong returns on investment and offer long-term benefits for customers and communities.

“We operate in a rapidly changing health care and regulatory environment,” added CVS Health’s Merlo.  “This requires companies like CVS Health to continually innovate, providing additional points of access, lowering costs and improving quality for both consumers and payors.”

This acquisition is consistent with each company’s stated goals of investing in core businesses that help drive growth.

CVS Health expects this transaction to generate significant sales and prescription volumes upon closing, and to generate significant operating profit over the long term. The company will finance the transaction with additional debt. In combination with CVS Health’s planned acquisition of Omnicare, this transaction will increase the company’s Adjusted Debt to EBITDA leverage ratio to approximately 3.2x. In support of reaching its leverage target of 2.7x, CVS Health is reducing its share repurchase guidance for 2015 by $1 billion, from $6 billion to $5 billion. This reduction in share repurchases reduces the company’s 2015 Adjusted Earnings Per Share guidance by approximately one cent per share and will lower 2016 Adjusted Earnings Per Share by approximately 4 cents per share.

The timing of closing the transaction is uncertain; assuming it closes near the end of the year, the transaction is expected to be approximately 6 cents dilutive to CVS Health’s Adjusted Earnings Per Share in 2016.  This includes the dilutive impact to 2016 from the lower 2015 share repurchase of approximately 4 cents per share as well as financing costs of approximately 5 cents per share; it excludes integration costs and any transaction or one-time costs associated with the deal. On the same basis, the transaction is expected to be approximately 10 cents accretive to CVS Health’s Adjusted Earnings Per Share in 2017, and at least 12 cents accretive to CVS Health’s Adjusted Earnings Per Share in 2018 and beyond.

This transaction will allow Target to continue offering this traffic-driving business in its stores and deliver a differentiated experience in support of its wellness efforts.  Target’s after-tax net proceeds from the transaction are expected to be approximately $1.2 billion, which Target expects to deploy in support of its long-standing capital priorities, including share repurchase. The transaction is expected to benefit Target’s Segment EBITDA and EBIT margins post-close, is expected to be accretive to Target’s EPS immediately following the deal close, and is expected to add half a percentage point or more to Target’s return on invested capital over time.

The transaction is subject to customary closing conditions, including necessary regulatory clearance. In-store changes will be rolled out over a period of several months thereafter, as CVS Health and Target work to ensure the smoothest possible transition for all pharmacy and clinic patients.  CVS Health is committing to offering the approximately 14,000 in-store Target health care professionals comparable positions with CVS Health as part of the transition.  Also following the deal closing, Target will further evaluate the business impact and related support needs at its headquarters locations.

Barclays served as the financial advisor to CVS Health. CVS Health was advised on transaction legal matters by Fried Frank and on regulatory matters by Dechert LLP.

Goldman Sachs acted as financial advisor to Target.  Faegre Baker Daniels LLP, Wachtell, Lipton, Rosen & Katz, and Dorsey & Whitney advised Target on legal matters.

Teleconferences and Webcasts
CVS Health will be holding a conference call today for the investment community at 8:30 am (EDT) to discuss the transaction.  The dial-in number for the call is (800) 755-1805 or, for international callers, (212) 231-2909.  An audio webcast of the call will be broadcast simultaneously on CVS Health’s website for all interested parties.  To access the webcast, please visit the investor relations section of the company’s website at http://investors.CVSHealth.com/  A replay of the call will be available for 7 days starting at 10:30 am (EDT) on June 15 through 10:30 am (EDT) on June 22.  The replay number for the call is (800) 633-8284 or, for international callers, (402) 977-9140 (passcode: 21770599).  The webcast will be archived and available on the CVS Health website for a one-year period following the conference call.

Target will hold a conference call at 9:45 a.m. EDT today. Investors and the media are invited to listen to the call at Target.com/Investors (hover over “company” then click on “events & presentations” in the “investors” column). A telephone replay of the call will be available beginning at approximately 12:30 p.m. EDT today through the end of business on June 22, 2015. The replay number is (855) 859-2056 (passcode: 66577154).

About CVS Health CVS Health (NYSE: CVS) is a pharmacy innovation company helping people on their path to better health.  Through its 7,800 retail drugstores, nearly 1,000 walk-in medical clinics, a leading pharmacy benefits manager with more than 70 million plan members, and expanding specialty pharmacy services, the Company enables people, businesses and communities to manage health in more affordable, effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs.  Find more information about how CVS Health is shaping the future of health at www.cvshealth.com.

About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at 1,795 stores and at Target.com. Since 1946, Target has given 5 percent of its profit to communities, that giving equals more than $4 million a week. For more information, visit Target.com/Pressroom. For a behind-the-scenes look at Target, visit Target.com/abullseyeview or follow @TargetNews on Twitter.

CVS Health Forward-Looking Statement
This press release contains forward-looking statements within the meaning of the federal securities laws.  By their nature, all forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission filings, including those set forth in the Risk Factors section and under the section entitled “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Target Forward-Looking Statement  
Statements by Target in this release regarding the expected benefits to Target’s long-term traffic and sales growth, Target’s expected after-tax proceeds from the transaction and the expected impact of the transaction on Target’s Segment EBIT margins, EPS and ROIC are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date they are made and are subject to risks and uncertainties that could cause Target’s actual results to differ materially. The most important risks and uncertainties include those relating to the certainty around satisfying the conditions to closing the transaction, how Target’s guests react to the transaction, the effectiveness of the ongoing relationship between Target and CVS Health, whether Target will recognize the expected benefits from the transaction and the risks described in Item 1A of Target’s Form 10-K for the fiscal year ended January 31, 2015.

media contact

Nancy Christal Investor Relations, CVS Health
p: (914) 722-4704

Carolyn Castel
Corporate Communications, CVS Health
p: (401) 770-5717

Dustee Jenkins
Public Relations
p: (612) 696-3400

John Hulbert
Investor Relations
p: (612) 761-6627