Cardinal Health Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Cardinal Health Inc. has filed its Q2 2024 10-Q report, detailing financial performance for the six months ending December 31, 2023.</b>

AI Summary

CARDINAL HEALTH INC (CAH) filed a Quarterly Report (10-Q) with the SEC on February 1, 2024. Cardinal Health Inc. filed its quarterly report (10-Q) for the period ending December 31, 2023. The filing covers the period from July 1, 2023, to December 31, 2023. The company's fiscal year ends on June 30. The filing was made on February 1, 2024. Cardinal Health Inc. is incorporated in Ohio.

Why It Matters

For investors and stakeholders tracking CARDINAL HEALTH INC, this filing contains several important signals. This filing provides investors with the latest financial data and operational updates for Cardinal Health Inc., crucial for assessing its current performance and future outlook. Understanding the details within this 10-Q is essential for stakeholders to make informed investment decisions regarding Cardinal Health Inc.'s stock.

Risk Assessment

Risk Level: low — CARDINAL HEALTH INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical reporting requirements.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Cardinal Health Inc.'s performance trends and identify any emerging risks or opportunities.

Key Numbers

• 20231231 — Period End Date (Conformed period of report)
• 20240201 — Filing Date (Filed as of date)
• 0630 — Fiscal Year End (Fiscal year end)
• Q2 — Quarter (Filing quarter)

Key Players & Entities

• CARDINAL HEALTH INC (company) — Filer name
• 0000721371 (company) — Central Index Key
• OH (company) — State of incorporation
• 20231231 (date) — Conformed period of report
• 20240201 (date) — Filed as of date
• 20231231 (date) — Period end date
• 2024-02-01 (date) — Filing date
• 7000 CARDINAL PLACE (company) — Business address street 1

Forward-Looking Statements

• Cardinal Health will continue to manage its capital structure through share repurchases or dividends. (CARDINAL HEALTH INC) — medium confidence, target: 2024-06-30

FAQ

Industry Context

Cardinal Health Inc. operates in the healthcare sector, primarily as a distributor of pharmaceuticals and medical products, and a provider of healthcare services.

Regulatory Implications

The company is subject to various U.S. Securities and Exchange Commission (SEC) regulations, including the requirement to file quarterly reports (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements within the 10-Q for revenue, net income, and cash flow trends.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Identify any new risk factors or changes in existing risk factors disclosed in the filing.

Key Dates

• 2024-02-01: 10-Q Filing — Filing of the quarterly report for the period ending December 31, 2023.
• 2023-12-31: Reporting Period End — End date of the financial reporting period covered by the 10-Q.
• 2023-07-01: Reporting Period Start — Start date of the financial reporting period covered by the 10-Q.

Year-Over-Year Comparison

This filing represents the standard quarterly report for the period ending December 31, 2023, following previous filings by Cardinal Health Inc.

Key Financial Figures

• $57.4 billion — increased 12 percent and 11 percent to $57.4 billion and $112.2 billion, respectively, prima
• $112.2 b — ent and 11 percent to $57.4 billion and $112.2 billion, respectively, primarily due to b
• $482 million — nts. We had GAAP operating earnings of $482 million during the three months ended December
• $119 million — r 31, 2023 and a GAAP operating loss of $119 million during the three months ended December
• $709 million — d December 31, 2022, which reflects the $709 million pre-tax goodwill impairment charge rela
• $468 million — 022. We had GAAP operating earnings of $468 million and $18 million during the six months e
• $18 million — operating earnings of $468 million and $18 million during the six months ended December 31
• $581 million — and 2022, respectively, which included $581 million and $863 million pre-tax goodwill impai
• $863 million — tively, which included $581 million and $863 million pre-tax goodwill impairment charges rel
• $45 million — fit related to the impairment charge is $45 million and is included in the annual effective
• $65 million — creased approximately by an incremental $65 million and will increase the provision for inc
• $863 m — impairment charges of $709 million and $863 million, respectively, related to the Med
• $68 million — related to these impairment charges was $68 million and was included in the annual effectiv
• $118 million — creased approximately by an incremental $118 million and $140 million for the three and six
• $140 million — tely by an incremental $118 million and $140 million for the three and six months ended Dece

Filing Documents

• cah-20231231.htm (10-Q) — 1454KB
• a24q2_10qx123123xexhibit101.htm (EX-10.1) — 24KB
• a24q2_10qx123123xexhibit311.htm (EX-31.1) — 10KB
• a24q2_10qx123123xexhibit312.htm (EX-31.2) — 10KB
• a24q2_10qx123123xexhibit321.htm (EX-32.1) — 6KB
• a24q2_10qx123123xexhibit991.htm (EX-99.1) — 41KB
• cah-20231231_g1.jpg (GRAPHIC) — 31KB
• cah-20231231_g2.jpg (GRAPHIC) — 27KB
• cah-20231231_g3.jpg (GRAPHIC) — 25KB
• cah-20231231_g4.jpg (GRAPHIC) — 35KB
• cah-20231231_g5.jpg (GRAPHIC) — 30KB
• cah-20231231_g6.jpg (GRAPHIC) — 26KB
• 0001628280-24-002813.txt (&nbsp;) — 7785KB
• cah-20231231.xsd (EX-101.SCH) — 50KB
• cah-20231231_cal.xml (EX-101.CAL) — 52KB
• cah-20231231_def.xml (EX-101.DEF) — 302KB
• cah-20231231_lab.xml (EX-101.LAB) — 681KB
• cah-20231231_pre.xml (EX-101.PRE) — 486KB
• cah-20231231_htm.xml (XML) — 914KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 2 Explanation and Reconciliation of Non-GAAP Financial Measures 16

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 20

Controls and Procedures

Controls and Procedures 20

Legal Proceedings

Legal Proceedings 21

Risk Factors

Risk Factors 21 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 21 Financial Statemen ts 23 Exhibits 42 Form 10-Q Cross Reference Index 43

Signatures

Signatures 44 About Cardinal Health Cardinal Health, Inc., an Ohio corporation formed in 1979, is a global healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices and patients in the home. We provide pharmaceuticals and medical products and cost-effective solutions that enhance supply chain efficiency. We connect patients, providers, payers, pharmacists and manufacturers for integrated care coordination and better patient management. We manage our business and report our financial results in two segments: Pharmaceutical and Medical. As used in this report, "we," "our," "us," and similar pronouns refer to Cardinal Health, Inc. and its majority-owned and consolidated subsidiaries, unless the context requires otherwise. Our fiscal year ends on June 30. References to fiscal 2024 and fiscal 2023 and to FY24 and FY23 are to the fiscal years ending or ended June 30, 2024 and June 30, 2023, respectively.

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 (this "Form 10-Q") (including information incorporated by reference) includes "forward-looking statements" addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. Many forward-looking statements appear in Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), but there are others in this Form 10-Q, which may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and expense accruals. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those made, projected or implied. The most significant of these risks and uncertainties are described in this Form 10-Q, including Exhibit 99.1, and in "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (our "2023 Form 10-K"). Forward-looking statements in this Form 10-Q speak only as of the date of this document. Except to the extent required by applicable law, we undertake no obligation to update or revise any forward-looking statement. Non-GAAP Financial Measures In the "Overview of Consolidated Results" section of MD&A, we use financial measures that are derived from our consolidated financial data but are not presented in our condensed consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). These measures are considered "non-GAAP financial measures" under the United States Securities and Exchange Commission ("SEC") rules. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are includ

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations The discussion and analysis presented below is concerned with material changes in financial condition and results of operations, including amounts and certainty of cash flows from operations and from outside sources, between the periods specified in our condensed consolidated balance sheets at December 31, 2023 and June 30, 2023, and in our condensed consolidated statements of earnings/(loss) for the three and six months ended December 31, 2023 and 2022. All comparisons presented are with respect to the prior-year period, unless stated otherwise. This discussion and analysis should be read in conjunction with the MD&A included in our 2023 Form 10-K. 2 Cardinal Health | Q2 Fiscal 2024 Form 10-Q MD&A Overview Overview of Consolidated Results Revenue During the three and six months ended December 31, 2023, revenue increased 12 percent and 11 percent to $57.4 billion and $112.2 billion, respectively, primarily due to branded and specialty pharmaceutical sales growth from existing customers. GAAP and Non-GAAP Operating Earnings/(Loss) Three Months Ended December 31, Six Months Ended December 31, (in millions) 2023 2022 Change 2023 2022 Change GAAP operating earnings/(loss) $ 482 $ (119) N.M. $ 468 $ 18 N.M. Surgical gown recall income (1) — (1) — Shareholder cooperation agreement costs — 2 — 8 Restructuring and employee severance 28 17 53 46 Amortization and other acquisition-related costs 63 71 127 142 Impairments and (gain)/loss on disposal of assets, net 1 710 538 863 Litigation (recoveries)/charges, net (11) (207) (52) (180) Non-GAAP operating earnings $ 562 $ 467 20 % $ 1,133 $ 891 27 % The sum of the components and certain computations may reflect rounding adjustments. We had GAAP operating earnings of $482 million during the three months ended December 31, 2023 and a GAAP operating los

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View this 10-Q filing on SEC EDGAR