Unaudited Pro Forma Condensed Combined Statements of Operations. The following adjustments were made in the preparation of the Unaudited Pro Forma Condensed Combined Statements of Operations for the Three Months Ended March 31, 2023, and the Year Ended December 31, 2022:
Unaudited Pro Forma Condensed Combined Statements of Operations. (G) Revenues and Cost of revenues Adjustments have been included in the unaudited pro forma condensed combined statements of operations to eliminate revenues and cost of revenues from transactions between Express Scripts and Medco. Express Scripts and Medco’s pharmacies may be included in the pharmacy networks of the other respective company in order to fulfill members’ prescriptions for certain drugs that are under limited or exclusive distribution contracts with manufacturers.
Unaudited Pro Forma Condensed Combined Statements of Operations. (A) Revenue Represents revenue of approximately $184.2 million for the period July 1, 2010 to September 12, 2010 as derived using historical financial information of FutureScripts. Additionally, the amortization of the customer contract intangible assets related to the PBM Agreement of approximately $6.3 million is being recorded as an offset to revenues. Under existing U.S. GAAP standards, amortization of intangibles that arise in connection with consideration given to a customer by a vendor is characterized as a reduction of revenues.
Unaudited Pro Forma Condensed Combined Statements of Operations. (E) Depreciation and amortization
Unaudited Pro Forma Condensed Combined Statements of Operations. For the Nine Months Ended September 30, 2016 (Amounts in thousands, except per share amounts)
Unaudited Pro Forma Condensed Combined Statements of Operations. For the Year Ended December 31, 2010 (In thousands, except per share data) Catalyst Health Solutions, Inc. Walgreens Health Initiatives, Inc. Pro Forma Adjustments Pro Forma Combined Revenue $ 3,764,092 $ 105,780 $ 1,190,643 (O) $ 5,060,515 Direct expenses 3,529,843 — 1,190,643 (O) 4,720,486 Selling, general and administrative expenses 101,745 121,136 8,434 (P) 231,315 Total operating expenses 3,631,588 121,136 1,199,077 4,951,801 Operating income (loss) 132,504 (15,356 ) (8,434 ) 108,714 Interest income 937 2,972 (70 ) (Q) 3,839 Interest expense (3,027 ) — (5,096 ) (R) (8,123 ) Income (loss) before income taxes 130,414 (12,384 ) (13,600 ) 104,430 Income tax expense (benefit) 49,457 (33 ) (9,532 ) (S) 39,892 Net income (loss) $ 80,957 $ (12,351 ) $ (4,068 ) $ 64,538 Net income per share, basic $ 1.85 $ 1.33 Net income per share, diluted $ 1.82 $ 1.32 Weighted average shares of common stock outstanding, basic 43,855 4,500 (T) 48,355 Weighted average shares of common stock outstanding, diluted 44,536 4,500 (T) 49,036 See accompanying notes to unaudited pro forma condensed financial statements.
Unaudited Pro Forma Condensed Combined Statements of Operations. (O) Revenue / Direct expenses Based on Walgreen Co.’s revenue recognition policies, WHI historical revenue is primarily presented on a basis net of pharmacy reimbursement costs in accordance with Financial Accounting Standards Board ASC Topic 605-45, Revenue Recognition, primarily as a result of WHI acting as an agent in administering pharmacy reimbursement contracts and does not assume credit risk. Subsequent to the acquisition, Catalyst will assume the credit risk for certain transactions due to the operational nature of our business. In light of these operating practices, we expect these revenue streams to be presented on a gross basis in the continuing financial statements of the Company. Therefore, we are adjusting revenue and direct expenses to present certain WHI PBM customer contracts on a gross basis to reflect the gross presentation. Although this adjustment results in a higher revenue contribution from such contracts, there is no impact on client- level or overall gross profit. This change in facts and circumstances is directly attributable to the acquisition of WHI by Catalyst and is expected to have a continuing impact on the on-going operations of the Company.
Unaudited Pro Forma Condensed Combined Statements of Operations. The following adjustments were made in the preparation of the pro forma statements of operations for the three months ended March 31, 2024, and 2023, the year ended December 31, 2023, and the trailing twelve months ended March 31, 2024, as applicable:
