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CVS Caremark Reports Record Results in Fourth Quarter and Fiscal 2009
Date:2/8/2010
change in the Company's fiscal year end from the Saturday nearest December 31 of each year to December 31 of each year to better reflect the Company's position in the health care, rather than the retail, industry. As you review the Company's operating performance, please consider that the fourth quarter of 2009 and 2008 include 92 days and 95 days, respectively, and the fiscal years ended December 31, 2009 and 2008 include 365 days and 368 days, respectively. (2) Pharmacy network net revenues, claims processed and generic dispensing rates do not include Maintenance Choice, which are included within the mail choice category. (3) Mail choice is defined as claims filled at a Pharmacy Services mail facility, which includes specialty mail claims, as well as 90-day claims filled at retail under the Maintenance Choice(TM) program. (4) Pharmacy network is defined as claims filled at retail pharmacies, including CVS/pharmacy stores. (5) Excluding the impact of RxAmerica, the mail choice penetration rate would have been 26.1% and 26.2% for the fourth quarter of 2009 and for the fiscal year ended December 31, 2009, respectively. (6) The fourth quarter and fiscal year ended December 31, 2008 have been revised to conform to the current presentation of our reportable segments.
EBITDA and EBITDA per Adjusted Claim
(Unaudited)
The Company defines EBITDA as income before interest, taxes, depreciation and amortization. We define EBITDA per adjusted claim as EBITDA divided by adjusted pharmacy claims. Adjusted pharmacy claims normalize the claims volume statistic for the difference in average days' supply for mail and retail claims. Adjusted pharmacy claims are calculated by multiplying 90-day claims (the majority of total mail
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