Cardinal Health Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Cardinal Health Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

CARDINAL HEALTH INC (CAH) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Cardinal Health Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the third quarter of the fiscal year. The company's fiscal year ends on June 30. The filing was made on May 2, 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 an update on the company's financial performance and position during the third quarter of its fiscal year. As a publicly traded company, Cardinal Health Inc. is required to submit these reports to the SEC, ensuring transparency for shareholders and the market.

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 unusual disclosures that would suggest a high-risk event.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand Cardinal Health Inc.'s performance and outlook for the remainder of the fiscal year.

Key Numbers

• 2024-03-31 — Report period end date (Conformed period of report)
• 2024-05-02 — Filing date (Filed as of date)
• 0630 — Fiscal year end (Fiscal year end)
• 5122 — Standard Industrial Classification (Standard Industrial Classification)

Key Players & Entities

• CARDINAL HEALTH INC (company) — Filer name
• 0000721371 (company) — Central Index Key
• OH (company) — State of incorporation
• 7000 CARDINAL PLACE (company) — Business address street 1
• DUBLIN (company) — Business address city
• 43017 (company) — Business address zip
• 6147573033 (company) — Business phone
• CARDINAL DISTRIBUTION INC (company) — Former company name

FAQ

Industry Context

Cardinal Health Inc. operates in the wholesale drug and healthcare products distribution industry. This sector is crucial for the supply chain of pharmaceuticals and medical supplies.

Regulatory Implications

As a public company, Cardinal Health Inc. is subject to the reporting requirements of the Securities Exchange Act of 1934, including the filing of quarterly reports (10-Q).

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key performance indicators.
2. Review any new risk factors or legal proceedings disclosed in the filing.
3. Examine management's discussion and analysis of financial condition and results of operations.

Key Dates

• 2024-03-31: Period End Date — Marks the end of the reporting period for the 10-Q filing.
• 2024-05-02: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the period ending March 31, 2024, following the previous fiscal year-end reporting.

Key Financial Figures

• $54.9 billion — e increased 9 percent and 10 percent to $54.9 billion and $167.1 billion, respectively, prima
• $167.1 b — ent and 10 percent to $54.9 billion and $167.1 billion, respectively, primarily due to b
• $367 million — nts. We had GAAP operating earnings of $367 million and $572 million during the three month
• $572 million — operating earnings of $367 million and $572 million during the three months ended March 31,
• $835 million — ch 31, 2024 and 2023, respectively, and $835 million and $590 million during the nine months
• $590 million — 023, respectively, and $835 million and $590 million during the nine months ended March 31,
• $90 million — charges related to the GMPD segment of $90 million during the three months ended March 31,
• $671 million — ree months ended March 31, 2024 and the $671 million and $863 million during the nine months
• $863 million — March 31, 2024 and the $671 million and $863 million during the nine months ended March 31,
• $193 million — ee months ended March 31, 2024 reflects $193 million of litigation charges recognized in con
• $105 million — h were partially offset by a benefit of $105 million related to opioid-related prepayments.
• $671 m — l impairment charges of $90 million and $671 million, respectively, related to the GMP
• $56 million — x benefit related to the impairments is $56 million and is included in the annual effective
• $36 million — the nine months ended March 31, 2024 is $36 million and will reverse in the fourth quarter
• $68 million — x benefit related to the impairment was $68 million and was included in the annual effectiv

Filing Documents

• cah-20240331.htm (10-Q) — 1566KB
• a10-qex1011xltiamendment.htm (EX-10.1 1) — 4KB
• aex1012formofnqsoagreement.htm (EX-10.1 2) — 69KB
• aex1013formofpsuagreement.htm (EX-10.1 3) — 86KB
• aex1014formofrsuagreement.htm (EX-10.1 4) — 69KB
• a10-qex102amendmentno1tomip.htm (EX-10.2) — 6KB
• a24q3_10qx33124xexhibit311.htm (EX-31.1) — 10KB
• a24q3_10qx33124xexhibit312.htm (EX-31.2) — 10KB
• a24q3_10qx33124xexhibit321.htm (EX-32.1) — 6KB
• a24q3_10qx33124xexhibit991.htm (EX-99.1) — 41KB
• cah-20240331_g1.jpg (GRAPHIC) — 29KB
• cah-20240331_g2.jpg (GRAPHIC) — 27KB
• cah-20240331_g3.jpg (GRAPHIC) — 24KB
• cah-20240331_g4.jpg (GRAPHIC) — 23KB
• cah-20240331_g5.jpg (GRAPHIC) — 34KB
• 0000721371-24-000038.txt (&nbsp;) — 8844KB
• cah-20240331.xsd (EX-101.SCH) — 52KB
• cah-20240331_cal.xml (EX-101.CAL) — 56KB
• cah-20240331_def.xml (EX-101.DEF) — 337KB
• cah-20240331_lab.xml (EX-101.LAB) — 700KB
• cah-20240331_pre.xml (EX-101.PRE) — 532KB
• cah-20240331_htm.xml (XML) — 1077KB

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 19

Controls and Procedures

Controls and Procedures 19

Legal Proceedings

Legal Proceedings 20

Risk Factors

Risk Factors 20 Unregistered Sales of Equity Securities and Use of Proceeds 20 Financial Statemen ts 21 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. Effective January 1, 2024, we began operating under an updated organizational structure and re-aligned our financial reporting structure under two reportable segments: Pharmaceutical and Specialty Solutions ("PSS") segment and Global Medical Products and Distribution ("GMPD") segment. All remaining operating segments that are not significant enough to require separate reportable segment disclosures are included in Other, which is comprised of Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight Logistics. 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 March 31, 2024 (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"), our Forms 10-Q for the quarters ending September 30, 2023 and December 31, 2023, and other SEC filings made since June 30, 2023. 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

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 March 31, 2024 and June 30, 2023, and in our condensed consolidated statements of earnings for the three and nine months ended March 31, 2024 and 2023. All comparisons presented are with respect to the prior-year period, unless stated otherwise. Our previously reported segment results have been recast to conform to our new reporting structure and reflect changes in the elimination of inter-segment revenue and allocated corporate technology and shared function expenses, which are driven by the reporting structure change. The discussion and analysis in this Form 10-Q should be read in conjunction with the MD&A included in our 2023 Form 10-K. 2 Cardinal Health | Q3 Fiscal 2024 Form 10-Q MD&A Overview Overview of Consolidated Results Revenue During the three and nine months ended March 31, 2024, revenue increased 9 percent and 10 percent to $54.9 billion and $167.1 billion, respectively, primarily due to branded and specialty pharmaceutical sales growth from existing customers. GAAP and Non-GAAP Operating Earnings Three Months Ended March 31, Nine Months Ended March 31, (in millions) 2024 2023 Change 2024 2023 Change GAAP operating earnings $ 367 $ 572 (36) % $ 835 $ 590 42 % Shareholder cooperation agreement costs 1 — 1 8 Restructuring and employee severance 53 16 106 62 Amortization and other acquisition-related costs 80 74 207 216 Impairments and (gain)/loss on disposal of assets, net 84 20 622 883 Litigation (recoveries)/charges, net 81 (76) 29 (256) Non-GAAP operating earnings $ 666 $ 606 10 % $ 1,799

View Full Filing

View this 10-Q filing on SEC EDGAR