CVS Caremark Corp.

Symbol: CVS

One CVS Drive
Woonsocket, RI 02895
United States - Map
Phone: 401-765-1500
Fax: 401-762-2137

Website: CVS.com

Index Membership: S&P 100; S&P 500; S&P 1500 Super Comp

Industry: Drug stores

News releases - read news releases for CVS Caremark

CVS Caremark Corp. Summary:
CVS Corporation is a leader in the retail drugstore industry in the United States with net revenues of $43.8 billion in 2006. As of December 30, 2006, they operated 6,202 retail and specialty pharmacy stores in 43 states and the District of Columbia, which are more pharmacy stores than any other retailer. They currently operate in 77 of the top 100 U.S. drugstore markets and hold the number one or number two market share in 58 of these markets. Overall, they hold the number one or number two market share position in 75% of the markets in which their retail pharmacies operate. Current operations are grouped into two businesses: Retail Pharmacy and Pharmacy Benefit Management (“PBM”).

CVS Caremark Corp. Financial Summary:
Net earnings for the third quarter ended September 29, 2007, increased 142.6% to $689.5 million or $0.45 per diluted share, compared with net earnings of $284.2 million or $0.33 per diluted share in the comparable 2006 period. Net earnings for the nine months ended September 29, 2007 increased 91.4% to $1,822.0 million or $1.36 per diluted share, compared with net earnings of $951.7 million or $1.11 per diluted share in the comparable 2006 period. The Company estimates merger and integration costs associated with the March 22, 2007 merger between CVS Corporation and Caremark Rx, Inc. negatively impacted diluted earnings per share by approximately $0.01 and $ 0.04 for the third quarter and first nine months of 2007, respectively.

Net revenues for the third quarter ended September 29, 2007, increased $9.3 billion to $20.5 billion, up from $11.2 billion during the comparable 2006 period. Same store sales (sales from stores open more than one year) in its CVS/pharmacy division for the third quarter ended September 29, 2007, rose 5.0% over the prior year period. Pharmacy same store sales rose 4.3% and were negatively impacted by approximately 580 basis points due to recent generic introductions, while front-end same store sales increased 6.5%.

For the third quarter, CVS Caremark opened 37 new stores, closed 8 stores and one mail order pharmacy and relocated 41 others. As of September 29, 2007 the Company operated 6,206 retail pharmacy stores, 53 specialty pharmacy stores, 22 specialty mail order pharmacies and 9 mail order pharmacies in 44 states and the District of Columbia.

CVS Caremark Corp. Business Summary:
Current operations are grouped into two businesses: Retail Pharmacy and Pharmacy Benefit Management (“PBM”).

Retail Pharmacy: As of December 30, 2006, the Retail Pharmacy business included 6,150 retail drugstores, of which 6,058 operated a pharmacy, online retail website, and retail healthcare clinics. The retail drugstores are located in 40 states and the District of Columbia. CVS sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards and convenience foods, which are referred to as “front store” products.

Pharmacy Benefit Management: The PBM business provides a full range of prescription benefit management services to managed care and other organizations. These
services include mail order pharmacy, specialty pharmacy, plan design and administration, formulary management and claims processing, as well as providing
reinsurance services in conjunction with prescription drug benefit policies. The PBM business operates under the PharmaCare Management Services name, and ranks as
the fourth largest, full service PBM in the nation.