Walgreen – WAG – Earnings and sales results for the first quarter of fiscal year 2013

Walgreen Co. (NYSE: WAG) announced earnings and sales results for the first quarter of fiscal year 2013 ended Nov. 30.

WAG – Walgreen Co. Reports Fiscal 2013 First Quarter Results

• Company reports adjusted first quarter earnings per diluted share of 58 cents, compared with adjusted earnings per diluted share of 71 cents in year-ago quarter; GAAP earnings per diluted share of 43 cents compared with 63 cents in last year’s first quarter
• To address regulatory and audit considerations, company adopts one-quarter reporting lag for its investment in Alliance Boots, resulting in dilution of 7 cents to adjusted EPS in the first quarter, compared with an estimated accretion of 3 cents to adjusted EPS had the company used the previously announced one-month lag
• Alliance Boots business performance continues to achieve expectations, and joint synergy program is on track to deliver first-year targets
• Gross profit margins during first quarter increase 130 basis points versus year-ago quarter; comparable prescriptions filled improve 320 basis points from fourth quarter 2012
• More than 45 million people now enrolled for Balance™ Rewards loyalty program

Net earnings determined in accordance with generally accepted accounting principles (GAAP) for the fiscal 2013 first quarter were $413 million or 43 cents per diluted share, compared with $554 million or 63 cents per diluted share in the year-ago quarter.

Adjusted fiscal 2013 first quarter net earnings were $553 million or 58 cents per diluted share, compared with adjusted net earnings of $619 million or 71 cents per diluted share in the year-ago quarter. This year’s adjusted first quarter results exclude the negative impacts of 6 cents per diluted share in acquisition-related amortization costs, 4 cents per diluted share from the quarter’s LIFO provision, 3 cents per diluted share in costs related to Hurricane Sandy, and 2 cents per diluted share related to the company’s acquisition of USA Drug and related store closures.

About Walgreen  – WAG

Walgreen Co. (WAG), together with its subsidiaries, operates the drugstore chain in the United States. The Company provides its customers with access to consumer goods and services, pharmacy, and health and wellness services in communities across America. WAG offers its products and services through drugstores, as well as through mails, by telephone and online.

WAG sells prescription and non-prescription drugs, as well as general merchandises, including household items, convenience and fresh foods, photofinishing and candy. On August 2, 2012, it acquired 45% interest in Alliance Boots GmbH (Alliance Boots). In September 2012, the Company completed the purchase of a regional drugstore chain in the mid-South region of the United States. In September 2012, WP Carey & Co LLC acquired five retail stores leased to Walgreen Co. In December 2012, the Company completed a transaction giving company a ownership stake in Cystic Fibrosis Foundation Pharmacy LLC.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.