initial public offerings (IPOs) trading on American exchanges

Friday, March 15, 2019

Diplomat Pharmacy (DPLO) reported earnings on Fri 15 March 19 (b/o)

** charts before earnings **


** charts after earnings **

Diplomat Pharmacy reports Q4 (Dec) results, misses on revs; slashes previously withdrawn FY19 outlook, calls 2019 a rebuilding year
  • Reports Q4 (Dec) GAAP loss of $4.00 per share, may not be comparable to the S&P Capital IQ GAAP Consensus of $0.02; revenues rose 17.8% year/year to $1.36 bln vs the $1.41 bln S&P Capital IQ Consensus.
    • Net (loss) income attributable to Diplomat for the fourth quarter of 2018 was $(298.0) million compared to $6.5 million in the fourth quarter of 2017. This decrease was primarily driven by a $262 million non-cash impairment charge related to goodwill and definite-lived intangible assets associated with the co's PBM segment due to the effects of client losses and a reduced financial forecast, on the co's annual impairment analysis, as well as a $46 million non-cash goodwill impairment charge related to co's Specialty segment due to the effects of a reduced financial forecast, on the co's annual impairment analysis.
    • Income from operations for the fourth quarter of 2018, excluding the non-cash impairment charges, was $13.9 million, compared to $2.9 million in the fourth quarter of 2017.
  • Brian Griffin, Chairman and CEO of Diplomat, commented "While our 2018 financial results were strong, market conditions in 2019 are significantly more challenging than expected in our specialty and PBM businesses. 2019 is a rebuilding year, and we continue to focus on driving additional volumes to Diplomat by creating partnerships with health plans and hospital systems to meet the demand for better clinical outcomes and management of specialty spend. We are also committed to rebuilding our PBM business...The Company's cost structure is no longer supported by the current business environment and we are accelerating operational efficiency initiatives. I remain confident that Diplomat is making the right investments and executing the right strategy and operational initiatives to leverage our competitive strengths and position Diplomat for future growth and profitability,"
  • Co issues downside guidance for FY19, sees EPS of ($0.50-0.34) vs. ($0.18) S&P Capital IQ GAAP Consensus; sees FY19 revs of $4.7-5.0 bln vs. $5.51 bln S&P Capital IQ Consensus; sees Adjusted EBITDA between $110 and $116 million (vs. $167.8 mln for FY18)
    • The company previously issued a preliminary FY19 outlook in January, which it later withdrew. That preliminary guidance called for revs of $5.6-5.8 bln & flat to low-single-digit percent year-over-year adjusted EBITDA growth compared to the mid-point of updated 2018 guidance.

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