SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
May 3, 1999
(Date of Report)
April 28, 1999
(Date of earliest event reported)
McKESSON HBOC, INC.
(Exact name of registrant as specified in charter)
Delaware 1-13252 94-3207296
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
McKesson Plaza
One Post Street
San Francisco, CA 94104
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (415) 983-8300
Item 5. Other Events
We are filing this Current Report on Form 8-K to make generally
available certain information regarding the Registrant.
On April 28, 1998, the Registrant restated its revenues and earnings
for its fourth fiscal quarter ended March 31, 1999 and for its fiscal year.
A copy of the press release announcing those results is set forth in
Exhibit 99.1 to this Current Report on Form 8-K and is hereby incorporated
by reference herein.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99.1 Press Release issued by the Registrant on April 28, 1999
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
McKESSON HBOC, INC.
(Registrant)
Date: May 3, 1999 By: /s/ Richard H. Hawkins
-----------------------------------
Name: Richard H. Hawkins
Title: Executive Vice President and
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Title
99.1 Press Release issued by the Registrant on April 28, 1999
Exhibit 99.1
Contacts: MEDIA
Larry Kurtz
415-983-8418
INVESTORS
Janet Bley
415-983-9357
Or
Beth Dalton
770-393-6587
MCKESSON HBOC, INC., RESTATES REVENUES AND EARNINGS FOR
FOURTH QUARTER AND FULL YEAR RESULTS
SAN FRANCISCO, CALIF., APRIL 28, 1999 - McKesson HBOC, Inc. (NYSE:MCK)
(McKessonHBOC) today announced that during the course of its year end
financial audit process, the company has determined that software sales
transactions aggregating $26.2 million in the company's fourth quarter
ended March 31, 1999, and $16.0 million in the prior quarters of the fiscal
year, were improperly recorded because they were subject to contingencies,
and have been reversed. The audit process is ongoing and there is a
possibility that additional contingent sales may be identified.
"We are disappointed that these items were not identified sooner, but
the Company recognizes the importance of promptly disclosing this
information and is doing so now," said Charles W. McCall, McKessonHBOC
chairman, and Mark A. Pulido, president and chief executive officer. "Both
we and McKessonHBOC's Board of Directors and its Audit Committee are
focusing on the processes we have in place in order to determine the steps
necessary to ensure that this will not occur again."
"We reaffirm our belief in the underlying strength and opportunities
in our markets," said McCall and Pulido. "However, in light of the new
information, we believe it prudent to revise our earnings per diluted share
goal for fiscal year 2000 to $2.50. Underlying this target is the
assumption that the Healthcare Information Technology Business software
revenues will decrease from fiscal 1999."
On April 22, 1999, McKessonHBOC reported a net loss of $60.4 million
and a loss per diluted share of 22 cents for the quarter ended March 31,
1999, and net income of $237.1 million or 84 cents per diluted share for
the full year. Before special charges, the company reported earnings of
$177.2 million and earnings per diluted share of 62 cents for the fourth
quarter, and earnings of $589.5 million and earnings per diluted share of
$2.06 for the full year.
After the reversals, McKessonHBOC had a net loss of 27 cents per
diluted share for the quarter ended March 31, 1999, and earnings per
diluted share of 75 cents for the full year. After the reversals and
before special charges, McKessonHBOC had earnings of 56 cents per diluted
share in the quarter, an increase of 30 percent, and earnings of $1.97 per
diluted share for the full year, an increase of 33 percent compared to the
prior year.
After the reversals, the overall Health Care Information Technology
revenue growth rate is three percent for the quarter and 18 percent for the
year, compared to ten percent for the quarter and 21 percent for the year
before the reversals. The growth rate for software revenue after the
reversals is a decline of five percent for the quarter and a gain of 13
percent for the year, compared to increases of 21 percent for the quarter
and 22 percent for the year prior to the reversals. These reversals also
decreased the growth rates for each of the year's prior three quarters.
McKesson HBOC, Inc., a Fortune 100 corporation, is the world's largest
pharmaceutical supply management and healthcare information technology
company. McKessonHBOC provides pharmaceutical supply management and
information technologies across the entire continuum of healthcare,
including market-leading businesses in pharmaceutical and medical-surgical
distribution, information technology for healthcare providers, services for
payors and outsourcing. More information about McKessonHBOC is available
on its Word Wide Website at http://www.mckhboc.com.
Except for historical information contained herein, the matters
discussed in this press release may constitute forward-looking statements
that involve risks and uncertainties that could cause actual results to
differ materially from those projected. These statements may be identified
by their use of forward-looking terminology such as "believes," "expects,"
"may," "should," "intends," "plans," "estimates," "anticipates" and similar
words. Risks and uncertainties include the speed of integration of
acquired businesses, the effect of Year 2000 implementation, the impact of
continued competitive pressures, success of strategic initiatives,
implementation of new technologies, continued industry consolidation,
changes in customer mix, changes in pharmaceutical manufacturers' pricing
and distribution policy, the changing U.S. healthcare environment,
conclusion of the ongoing financial audit and other factors discussed from
time to time in reports filed by McKesson HBOC, Inc., with the Securities
and Exchange Commission. The company assumes no obligation to update
information contained in this press release.
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McKessonHBOC news releases are available at no charge through
McKessonHBOC's NewsOnDemand fax services. To immediately receive an index
of available releases, call 1-800-344-6495 and press 2.
