Connect with us

Economics

Reduce Your Money Anxiety With The Stackin App

Good morning everyone.
Our portfolio company Stackin has released a new app focused on helping people reduce their anxiety around money.
I know this…

Published

on

Good morning everyone.

Our portfolio company Stackin has released a new app focused on helping people reduce their anxiety around money.

I know this is a big problem as my friend Morgan Housel wrote a massive financial best seller titled ‘The Psychology Of Money‘.

Tom, the CEO of Stackin, wrote this piece below introducing the app and benefits. If not for you, please share with all your genz and millennial friends.

Thanks….

I’m absolutely thrilled to announce the launch of Stackin’s financial wellness app for iOS and Android.

Stackin’ is tackling what I believe is one of the most vexatious challenges we face in our modern world — our relationship with money.

As with any relationship it requires work. And this one is a hot mess of societal expectations, social media FOMO, banal advice and all shaken up with that classic dichotomy between the person we wish we were with who we actually are.

The driving force behind this service issue is anxiety around money. On almost every metric it’s off the charts. More than twice as many Americans suffer from money anxiety than obesity. The stress caused by money anxiety wrecks relationships, careers and our health. Financial related stress is linked to increased risk of heart disease, diabetes, migraines, sleep problems, depression and more.

When we first started digging into this problem we carried the same assumptions I think of lot people do: Lack of money causes money anxiety and so the simple solution is just to get more money, right?

Well, as we got further in we ran into problems with this hypothesis. Some specific examples:

  • When we looked at the impact of the US’s extraordinary direct-to-consumer stimulus payments for the COVID pandemic we’d expected to see a corresponding drop in financial anxiety. In fact we found the opposite. People who described their financial health as “Somewhat Unhealthy” and “Very Unhealthy” rose from 13% and 9% to 21% and 17% respectively.
  • We started filtering our research into studies that looked at people in the top half of the income distribution to try and uncover drivers for the anxiety above and beyond just lack of money. Time and again we found research like this: One-third of Americans earning more than $250,000 feel like they live paycheck-to-paycheck.

It was at this point that it hit us: It wasn’t lack of money that was causing this anxiety. It was something far more personal and persistent for these individuals.

Performing user interviews we’d encounter people time and again who had taken years to get out of debt but within a short period of time found themselves right back in it. Or people who saved religiously and had investment accounts larger than a years worth of their salary, but would crumble at the first sign of an unexpected bill or go on punishing themselves to put aside every last cent they could.

We realized at this point that what we‘d uncovered was not a finance crisis, but a health crisis.

People’s beliefs around money are formed very early on in their lives. Research suggests that most are formed between the ages of 6–10 years old. These beliefs are then embedded deep in our limbic system. Similarly to other limbic responses they control our behaviors in ways that are outside our traditional consciousness. No matter how hard we can try and act in a rational manner, if this action goes against our natural limbic response our limbic response always wins.

If you grew up in a family with a history of money worries it’s likely that you’ll exhibit behavior that we title Money Protection, or if you experienced a negative change in your family’s financial circumstances early in your life more likely to exhibit Money Romance behaviors.

Without diagnosing and then working out how to manage and harness these limbic reactions we can never take back control.

This is why advice such as “just make a budget!” or “track your spending better!”, although well meaning, never helps fix the problem. In fact they can actually make the situation worse as to fail at what seem like such simple tasks can spur more negative emotion further increasing despondency and a lack of general confidence.

The final point I’d like to leave you with is perhaps one of the least well understood but most impactful in all of this.

Almost everyone working in finance tends to focus only on the left tail of changes to a person’s financial situation i.e. helping them weather negative financial shocks — receiving an unexpected bill or losing their paycheck.

But in our opinion the right hand side might actually be the more important. This is about ensuring that everyone has the attitude, perspective and behavior in place to maximize the positive changes to their financial situation.

One of my favorite statistics is that you’re more likely to go bankrupt if you win tens of millions on the lottery than if you don’t. If we don’t fix this right side then social mobility will continue to decay and millions of Americans are consigned to never reaching their full potential.

The first version of our app is now available in both the Apple and Google Play App Stores. We’d love to get as much feedback as possible so sign-up and let us know what you think.

Read More

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economics

Cardinal Health Reports Fourth Quarter and Full Year Results for Fiscal Year 2022

Cardinal Health Reports Fourth Quarter and Full Year Results for Fiscal Year 2022
PR Newswire
DUBLIN, Ohio, Aug. 11, 2022

Revenue increased 11% to $47.1 billion in the fourth quarterGAAP1 operating earnings were $36 million in the fourth quarter; G…

Published

on

Cardinal Health Reports Fourth Quarter and Full Year Results for Fiscal Year 2022

PR Newswire

  • Revenue increased 11% to $47.1 billion in the fourth quarter
  • GAAP1 operating earnings were $36 million in the fourth quarter; GAAP diluted EPS were $0.50 in the fourth quarter
  • Non-GAAP operating earnings increased 41% to $450 million in the fourth quarter; non-GAAP diluted EPS increased 36% to $1.05 in the fourth quarter
  • Generated operating cash flow of $3.1 billion in fiscal year 2022
  • Company provides fiscal year 2023 guidance and reiterates long-term targets
  • Company introduces Medical Improvement Plan, targeting Medical segment profit of at least $650 million by fiscal year 2025

DUBLIN, Ohio, Aug. 11, 2022 /PRNewswire/ -- Cardinal Health (NYSE: CAH) today reported fourth quarter fiscal year 2022 revenues of $47.1 billion, an increase of 11% from the fourth quarter of last year. GAAP operating earnings were $36 million, primarily due to a non-cash, pre-tax goodwill impairment charge of $303 million in the Medical segment. GAAP diluted earnings per share (EPS) were $0.50, primarily due to this impairment, net of tax effects. Non-GAAP operating earnings increased 41% to $450 million, primarily due to the increase in Pharmaceutical segment profit, and non-GAAP diluted EPS increased 36% to $1.05 in the quarter.

Fiscal year 2022 revenues were $181.4 billion, a 12% increase from fiscal year 2021. GAAP operating loss was $596 million due to non-cash, pre-tax goodwill impairment charges of $2.1 billion in the Medical segment. GAAP diluted loss per share was $3.35, primarily due to these impairments, net of tax effects. Non-GAAP operating earnings decreased 12% to $2.0 billion, primarily due to net inflationary impacts and global supply chain constraints in the Medical segment. Non-GAAP diluted EPS decreased 9% to $5.06 due to the decline in Medical segment profit, partially offset by an increase in Pharmaceutical segment profit, net of tax effects.

"In fiscal year 2022, Medical segment performance was significantly impacted by inflation and supply chain constraints," said Mike Kaufmann, CEO of Cardinal Health. "In addition, the Pharmaceutical segment grew 5% and we generated strong cash flow, returning $1.6 billion to our shareholders through share repurchases and dividends."

Jason Hollar, CFO of Cardinal Health, said, "Looking forward, we have confidence in our Medical Improvement Plan and our long-term targets for growth. We remain committed to the essential role our company plays in healthcare and to delivering value for our customers, employees, and investors."

Q4 and full year FY22 summary


Q4 FY22


Q4 FY21


Y/Y


FY22


FY21


Y/Y

Revenue

$47.1 billion


$42.6 billion


11 %


$181.4 billion


$162.5 billion


12 %

Operating earnings/(loss)

$36 million


$162 million


(78) %


$(596) million


$472 million


N.M.

Non-GAAP operating earnings

$450 million


$320 million


41 %


$2.0 billion


$2.3 billion


(12) %

Net earnings/(loss) attributable to Cardinal Health, Inc.

$138 million


$116 million


19 %


$(933) million


$611 million


N.M.

Non-GAAP net earnings attributable to Cardinal Health, Inc.

$289 million


$227 million


27 %


$1.4 billion


$1.6 billion


(13) %

Effective Tax Rate1

575.3 %


2.6 %




(21.2) %


(89.7) %



Non-GAAP Effective Tax Rate

25.4 %


22.6 %




22.1 %


22.8 %



Diluted EPS attributable to Cardinal Health, Inc.

$0.50


$0.40


25 %


$(3.35)


$2.08


N.M.

Non-GAAP diluted EPS attributable to Cardinal Health, Inc.

$1.05


$0.77


36 %


$5.06


$5.57


(9) %

Segment results

Pharmaceutical segment


Q4 FY22


Q4 FY21


Y/Y


FY22


FY21


Y/Y

Revenue

$43.3 billion


$38.3 billion


13 %


$165.5 billion


$145.8 billion


14 %

Segment profit

$451 million


$358 million


26 %


$1.8 billion


$1.7 billion


5 %

Fourth-quarter revenue for the Pharmaceutical segment increased 13% to $43.3 billion driven by branded pharmaceutical sales growth from existing and net new Pharmaceutical Distribution and Specialty customers.

Pharmaceutical segment profit increased 26% to $451 million in the fourth quarter, driven by generics program performance and a higher contribution from brand sales mix, partially offset by inflationary supply chain costs. Additionally, this reflects a favorable comparison due to prior year inventory adjustments.

Medical segment


Q4 FY22


Q4 FY21


Y/Y


FY22


FY21


Y/Y

Revenue

$3.8 billion


$4.2 billion


(11) %


$15.9 billion


$16.7 billion


(5) %

Segment profit

$(16) million


$(63) million


75 %


$216 million


$577 million


(63) %

Fourth-quarter revenue for the Medical segment decreased 11% to $3.8 billion, due to the divestiture of the Cordis business and lower products and distribution volumes.

Medical segment loss of $16 million in the fourth quarter was primarily due to net inflationary impacts and global supply chain constraints in products and distribution. Additionally, the favorable comparison to the prior year PPE inventory reserve was offset by a lower contribution from PPE and the divestiture of the Cordis business. 

Fiscal year 2023 outlook2,3 

Non-GAAP earnings per share

$5.05 - $5.40

Interest and other

$140M - $170M

Non-GAAP effective tax rate

23.0% - 25.0%

Diluted weighted average shares outstanding

262M - 266M

Share repurchases

$1.5B - $2.0B

Capital Expenditures

~$500M

Adjusted free cash flow

$1.5B - $2.0B

Long-term financial targets

The company reiterated its long-term targets of low to mid-single digit segment profit growth in the Pharmaceutical segment, mid to high-single digit segment profit growth in the Medical segment, and to average a double-digit combined Non-GAAP EPS growth and dividend yield. Additionally, the company is targeting Medical segment profit of at least $650 million by fiscal year 2025, based on its Medical Improvement Plan.

Leadership changes

The company separately announced that its Board of Directors has elected Jason Hollar, the company's current Chief Financial Officer, to serve as its next Chief Executive Officer, effective September 1, 2022. Mr. Hollar will succeed Mike Kaufmann, the company's CEO since January 2018. Mr. Hollar will also join the company's Board of Directors. Additionally, Patricia English, the company's current Chief Accounting Officer, will serve as interim CFO, while the company conducts an external search for a permanent CFO.

Recent highlights

  • Cardinal Health announced that it has acquired the Bendcare group purchasing organization entity, strengthening Specialty Solutions' Cornerstone RheumatologyTM GPO as a leading rheumatology-focused GPO. The company also made a minority investment in the Bendcare management services organization.
  • Cardinal Health announced the addition of a new 208,144 square foot distribution center in the Columbus, Ohio, area as part of a multi-year warehouse modernization and growth plan. The new distribution center will support the company's at-Home Solutions business, a market-leading medical supplies provider and specialized business focused on providing comfortable care in the home for people with chronic and serious health conditions.
  • Cardinal Health announced the acquisition of ScalaMed, a smart platform that transfers prescriptions directly to patients via a secure mobile app. The acquisition transfers ScalaMed's technology and assets to Outcomes™, a Cardinal Health company.
  • Cardinal Health hosted its 30th annual Retail Business Conference with more than 4,000 customers in attendance, representing 3,000 unique independent community pharmacies, highlighting the company's innovations and demonstrating its commitment to customers.
  • Cardinal Health, along with pharmaceutical distribution peers, reached an agreement with the State of Oklahoma to resolve opioid-related claims. If that and the previously announced agreement with the State of Washington are finalized, 48 of 49 eligible states will be subject to the previously disclosed broad settlement agreement. Additionally, the distributors reached an agreement to settle the opioid-related claims of the majority of West Virginia subdivisions.
  • Cardinal Health Board of Directors approved a quarterly dividend of $0.4957 per share out of the company's capital surplus. The dividend will be payable on October 15, 2022 to shareholders of record at the close of business on October 3, 2022.

Upcoming webcasted investor events

  • Morgan Stanley 20th Annual Global Healthcare Conference at 10:00am EST, September 13, 2022

Webcast

Cardinal Health will host a webcast today at 8:30 a.m. Eastern to discuss fourth quarter and full year results. To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required. 

Presentation slides and a webcast replay will be available until August 10, 2023.

About Cardinal Health

Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With 50 years in business, operations in more than 30 countries and approximately 44,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

Contacts

Media: Erich Timmerman, erich.timmerman@cardinalhealth.com and 614.757.8231
Investors: Kevin Moran, kevin.moran@cardinalhealth.com and 614.757.7942

1The GAAP effective tax rate for the fourth quarter of fiscal year 2022 and fiscal year 2022 were impacted by the goodwill impairment charges of $303 million and $2.1 billion, respectively, in the Medical segment. The net tax benefit related to these charges included in the GAAP effective tax rate is $240 million in the fourth quarter and $150 million for the full year.

The GAAP effective tax rates for the fourth quarter of fiscal year 2021 and fiscal year 2021 included net tax benefits related to the treatment of the tax impacts of the opioid litigation charges. Included in the GAAP effective tax rate for fiscal 2021 was a benefit from the net operating loss carryback primarily related to a self-insurance pre-tax loss.

2GAAP refers to U.S. generally accepted accounting principles. This news release includes GAAP financial measures as well as non-GAAP financial measures, which are financial measures not calculated in accordance with GAAP. See "Use of Non-GAAP Measures" following the attached schedules for definitions of the non-GAAP financial measures presented in this news release and see the attached schedules for reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures.

3The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation.

Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investor Relations page at ir.cardinalhealth.com. In addition, the website allows investors and other interested persons to sign up automatically to receive email alerts when the company posts news releases, SEC filings and certain other information on its website.

Cautions concerning forward-looking statements

This release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include risks arising from ongoing inflationary pressures and supply chain constraints, including the risk that our plans to mitigate such effects may not be as successful as we anticipate and the possibility that costs to source certain personal protective or other equipment, increased costs for transportation, shipping, freight and commodities, reduced price or demand for certain products may result in additional inventory reserves or disruptions and may negatively impact our ability to meet our long-term guidance; the possibility that our Medical unit goodwill could be further impaired, the increase in global interest rates or possible unfavorable changes in the U.S. statutory tax rate; competitive pressures in Cardinal Health's various lines of business; the performance of our generics program, including the amount or rate of generic deflation and our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture with CVS Health; ongoing risks associated with the distribution of opioids, including the financial impact associated with the settlements with governmental authorities, the risk that challenges to our plans to take tax deductions for opioid-related losses could adversely impact our financial results, risks arising from the Department of Justice investigation which we believe concerns our anti-diversion program and risks associated with the injunctive relief requirements under the national settlement, including the risk that we may incur higher costs or operational challenges in the implementation and maintenance of the required changes; risks associated with the manufacture and sourcing of certain products, including risks related to our ability and the ability of third-party manufacturers to import or export certain products or component parts and to comply with applicable regulations; risks associated with the competitive labor market and our ability to attract and retain employees in key roles; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals; and risks associated with our cost savings initiatives or other business initiatives, such as the Medical Improvement Plan, including the possibility that they could fail to achieve the intended results. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This release reflects management's views as of August 11, 2022. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this report can or will be achieved or completed. Cardinal Health provides definitions and reconciliations of non-GAAP financial measures and their most directly comparable GAAP financial measures at ir.cardinalhealth.com.

 

Schedule 1

Cardinal Health, Inc. and Subsidiaries
Consolidated Statements of Earnings/(Loss) (Unaudited)



Fourth  Quarter


Fiscal Year

(in millions, except per common share amounts)

2022


2021


% Change


2022


2021


% Change

Revenue

$        47,103


$        42,586


11 %


$       181,364


$       162,467


12 %

Cost of products sold

45,498


41,111


11 %


174,819


155,689


12 %

Gross margin

1,605


1,475


9 %


6,545


6,778


(3) %













Operating expenses:












Distribution, selling, general and administrative expenses

1,155


1,129


2 %


4,557


4,533


1 %

Restructuring and employee severance

45


33




101


114



Amortization and other acquisition-related costs

87


106




324


451



Impairments and (gain)/loss on disposal of assets, net 1

286


1




2,050


79



Litigation (recoveries)/charges, net 2,3

(4)


44




109


1,129



Operating earnings/(loss)

36


162


(78) %


(596)


472


N.M.













Other (income)/expense, net

30


(16)




16


(47)



Interest expense, net

34


44


(23) %


149


180


(17) %

Loss on early extinguishment of debt


13




10


14



(Gain)/Loss on sale of equity interest in naviHealth


2




(2)


2



Earnings/(loss) before income taxes

(28)


119


N.M.


(769)


323


N.M.













Provision for/(benefit from) income taxes 4,5

(165)


4


N.M.


163


(289)


N.M.

Net earnings/(loss)

137


115


19 %


(932)


612


N.M.













Less: Net earnings attributable to noncontrolling interests

1


1




(1)


(1)



Net earnings/(loss) attributable to Cardinal Health, Inc.

$            138


$            116


19 %


$           (933)


$            611


N.M.













Earnings/(Loss) per common share attributable to Cardinal Health, Inc.:












Basic

$            0.51


$            0.40


28 %


$           (3.35)

6

$            2.09


N.M.

Diluted

0.50


0.40


25 %


(3.35)

6

2.08


N.M.













Weighted-average number of common shares outstanding:












Basic

273


290




279


292



Diluted

275


293




279


294



1 Impairments and (gain)/loss on disposals of assets, net includes pre-tax goodwill impairment charges of $303 million and $2.1 billion related to the Medical segment recorded in the fourth quarter and year-to-date periods of fiscal 2022, respectively.

2 Litigation (recoveries)/charges, net includes a one-time contingent attorneys' fee of $18 million recorded during fiscal 2022 related to the finalization of the settlement agreement (the "Settlement Agreement") resulting in the settlement of the vast majority of opioid lawsuits filed by state and local governmental entities. Due to the unique nature and significance of the Settlement Agreement, and the one-time, contingent nature of the fee, this fee was included in litigation (recoveries)/charges, net.

3 Litigation (recoveries)/charges, net includes a pre-tax charge of $1.17 billion recorded in fiscal 2021 related to the opioid litigation.

4 Provision for/(benefit from) income taxes during the fourth quarter and year-to-date periods of fiscal 2022 includes the tax effects relating to the impairment charges. For the fourth quarter and year-to-date periods of fiscal 2022, the net tax benefit related to these impairments is $240 million and $150 million, respectively, and is included in the annual effective tax rate.

5 Provision for/(benefit from) from income taxes includes a tax benefit recorded during fiscal 2021 related to a net operating loss carryback. Our wholly-owned insurance subsidiary recorded a self-insurance pre-tax loss in its fiscal 2020 statutory financial statements primarily related to opioid litigation. This self-insurance pre-tax loss, which did not impact our pre-tax consolidated results, was deducted on our fiscal 2020 consolidated federal income tax return and contributed to a significant net operating loss for tax purposes. The net operating loss was carried back and adjusted our taxable income for fiscal 2015, 2016, 2017 and 2018 as permitted under the Coronavirus Aid, Relief and Economic Security ("CARES") Act. The total benefit from the net operating loss carryback was $424 million.

In addition, the amount of tax benefit increased by approximately $50 million during the fourth quarter of fiscal 2022 compared to the tax impacts that would have been recognized without the opioid litigation charge. The net tax benefit associated with the opioid litigation charges was $228 million for fiscal 2021.

6 Due to the net loss during fiscal 2022, potentially dilutive common shares have not been included in the denominator due to their anti-dilutive effect.

 

Schedule 2

Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)


(in millions)

June 30, 2022


June 30, 2021

Assets




Current assets:




Cash and equivalents

$               4,717


$               3,407

Trade receivables, net

10,561


9,103

Inventories, net

15,636


14,594

Prepaid expenses and other

2,021


2,843

Assets held for sale


1,101

Total current assets

32,935


31,048





Property and equipment, net

2,361


2,360

Goodwill and other intangibles, net

7,629


10,094

Other assets

953


951

Total assets

$              43,878


$              44,453





Liabilities and Shareholders' Equity/(Deficit)




Current liabilities:




Accounts payable

$              27,128


$              23,700

Current portion of long-term obligations and other short-term borrowings

580


871

Other accrued liabilities

2,842


2,957

Liabilities related to assets held for sale


96

Total current liabilities

30,550


27,624





Long-term obligations, less current portion

4,735


5,365

Deferred income taxes and other liabilities

9,299


9,670





Total shareholders' equity/(deficit)

(706)


1,794

Total liabilities and shareholders' equity/(deficit)

$              43,878


$              44,453

 

Schedule 3

Cardinal Health, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)



Fourth  Quarter


Fiscal Year

(in millions)

2022


2021


2022


2021

Cash flows from operating activities:








Net earnings/(loss)

$                137


$                115


$               (932)


$                612









Adjustments to reconcile net earnings/(loss) to net cash provided by operating activities:








Depreciation and amortization

179


180


692


783

Impairments and loss on sale of other investments

21



24


(Gain)/Loss on sale of equity interest in naviHealth


2


(2)


2

Impairments and (gain)/loss on disposal of assets, net

286


1


2,050


79

Loss on early extinguishment of debt


13


10


14

Share-based compensation

16


5


81


89

Provision for deferred income taxes

7


496


7


496

Provision for bad debts

22


16


68


65

Change in operating assets and liabilities, net of effects from acquisitions and divestitures:








Increase in trade receivables

(333)


(393)


(1,526)


(904)

Increase in inventories

(149)


(261)


(1,071)


(1,584)

Increase in accounts payable

2,307


1,058


3,428


2,325

Other accrued liabilities and operating items, net

499


(567)


293


452

Net cash provided by operating activities

2,992


665


3,122


2,429









Cash flows from investing activities:








Proceeds from divestitures, net of cash sold



923


Acquisition of subsidiaries, net of cash acquired

(22)



(22)


(3)

Additions to property and equipment

(164)


(126)


(387)


(400)

Proceeds from disposal of property and equipment

20



31


Purchases of investments

(40)


(4)


(78)


(22)

Proceeds from sale of investments

2


42


29


47

Proceeds from net investment hedge terminations



71


Net cash provided by/(used in) investing activities

(204)


(88)


567


(378)









Cash flows from financing activities:








Proceeds from interest rate swap terminations




18

Reduction of long-term obligations

(288)


(517)


(885)


(570)

Net tax proceeds/(withholdings) from share-based compensation

7


9


(19)


8

Dividends on common shares

(134)


(141)


(559)


(573)

Purchase of treasury shares



(1,000)


(200)

Net cash used in financing activities

(415)


(649)


(2,463)


(1,317)









Effect of exchange rates changes on cash and equivalents

(12)


3


(25)


11

Cash reclassified from/(to) assets held for sale


(23)


109


(109)









Net increase/(decrease) in cash and equivalents

2,361


(92)


1,310


636

Cash and equivalents at beginning of period

2,356


3,499


3,407


2,771

Cash and equivalents at end of period

$              4,717


$              3,407


$              4,717


$              3,407

 

Schedule 4 

Cardinal Health, Inc. and Subsidiaries
Segment Information 



Fourth Quarter










(in millions)

2022


2021


(in millions)

2022


2021

Pharmaceutical





Medical













Revenue





Revenue




Amount

$       43,337


$       38,344


Amount

$        3,769


$        4,246

Growth rate

13 %


15 %


Growth rate

(11) %


23 %










Segment profit





Segment profit 3




Amount

$           451


$           358


Amount

$           (16)


$           (63)

Growth rate

26 %


— %


Growth rate

75 %


(153) %

Segment profit margin

1.04 %


0.93 %


Segment profit margin

(0.42) %


(1.50) %

 

Fiscal Year










(in millions)

2022


2021


(in millions)

2022


2021

Pharmaceutical





Medical













Revenue





Revenue




Amount

$     165,491


$     145,796


Amount

$       15,887


$       16,687

Growth rate

14 %


6 %


Growth rate

(5) %


8 %










Segment profit 1,2





Segment profit 3




Amount

$        1,770


$        1,684


Amount

$           216


$           577

Growth rate

5 %


(4) %


Growth rate

(63) %


(13) %

Segment profit margin

1.07 %


1.15 %


Segment profit margin

1.36 %


3.46 %

The sum of the components and certain computations may reflect rounding adjustments.

1 Pharmaceutical segment profit includes opioid-related litigation defense and compliance costs, but does not include a one-time contingent attorneys' fee of $18 million incurred during fiscal 2022 related to the finalization of the Settlement Agreement.

2 Pharmaceutical segment profit during fiscal 2022 was positively impacted by a $16 million judgment for lost profits related to an ordinary course intellectual property rights claim.

3 Medical segment profit/(loss) for the fourth quarter and year-to-date periods of fiscal 2021 includes a reserve of $197 million to reduce the carrying value of certain personal protective equipment to its net realizable value.

 

Schedule 5

Cardinal Health, Inc. and Subsidiaries
GAAP / Non-GAAP Reconciliation1









Earnings/









Gross




Operating

(Loss)

Provision for/


Net



Diluted



Margin


SG&A2


Earnings

Before

(Benefit  from)


Earnings3

Effective


EPS 3

(in millions, except per common share amounts)

Gross

Growth


Growth

Operating

Growth

Income

Income

Net

Growth

Tax

Diluted

Growth

Margin

Rate

SG&A 2

Rate

Earnings

Rate

Taxes

Taxes

Earnings 3

Rate

Rate

EPS 3

Rate

Fourth Quarter 2022

GAAP

$  1,605

9 %

$  1,155

2 %

$         36

(78) %

$        (28)

$             (165)

$        138

19 %

575.3 %

$    0.50

25 %

Restructuring and employee severance



45


45

13

32



0.12


Amortization and other acquisition-related costs



87


87

22

65



0.23


Impairments and (gain)/loss on disposal of assets, net 4



286


286

226

60



0.22


Litigation (recoveries)/charges, net



(4)


(4)

2

(6)



(0.02)


Non-GAAP

$  1,605

11 %

$  1,155

2 %

$       450

41 %

$       386

$               98

$        289

27 %

25.4 %

$    1.05

36 %
















Fourth Quarter 2021

GAAP

$  1,475

(7) %

$  1,129

(1) %

$       162

(40) %

$       119

$                 4

$        116

N.M.

2.6 %

$    0.40

N.M.

Surgical gown recall costs/(income)

(24)


2


(26)


(26)

(7)

(19)



(0.06)


Restructuring and employee severance



33


33

8

25



0.08


Amortization and other acquisition-related costs



106


106

32

74



0.25


Impairments and (gain)/loss on disposal of assets, net



1


1

3

(2)



(0.02)


Litigation (recoveries)/charges, net 5



44


44

22

22



0.07


Loss on early extinguishment of debt




14

3

11



0.04


(Gain)/Loss on sale of equity interest in naviHealth




2

1

1



0.01


Non-GAAP

$  1,451

(8) %

$  1,132

(1) %

$       320

(28) %

$       292

$               66

$        227

(26) %

22.6 %

$    0.77

(26) %

1For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.

2Distribution, selling, general and administrative expenses. 

3Attributable to Cardinal Health, Inc.

4Impairments and (gain)/loss on disposals of assets, net includes a pre-tax goodwill impairment charge of $303 million related to our Medical segment recorded in the fourth quarter of fiscal 2022. For the fourth quarter of fiscal 2022, the net tax benefit related to year-to-date impairments is $240 million and is included in the annual effective tax rate.

5Litigation (recoveries)/charges, net includes a pre-tax charge of $1.17 billion recorded in fiscal 2021 related to the opioid litigation. The amount of tax benefit increased by approximately $50 million during the fourth quarter ended June 30, 2021 compared to the tax impacts that would have been recognized without the opioid litigation charge. The net tax benefit associated with the opioid litigation charges was $228 million for fiscal 2021.

The sum of the components and certain computations may reflect rounding adjustments.

We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred.

 

Schedule 5

Cardinal Health, Inc. and Subsidiaries
GAAP / Non-GAAP Reconciliation1









Earnings/









Gross




Operating

(Loss)

Provision for/


Net



Diluted



Margin


SG&A2

Operating

Earnings

Before

(Benefit  from)

Net

Earnings3

Effective


EPS 3


Gross

Growth


Growth

Earnings/

Growth

Income

Income

Earnings/

Growth

Tax

Diluted

Growth

(in millions, except per common share amounts)

Margin

Rate

SG&A 2

Rate

(Loss)

Rate

Taxes

Taxes

(Loss) 3

Rate

Rate

EPS 3,4

Rate

Fiscal Year 2022

GAAP

$  6,545

(3) %

$  4,557

1 %

$       (596)

N.M.

$      (769)

$               163

$       (933)

N.M.

(21.2) %

$   (3.35)

N.M.

Surgical gown recall costs/(income)

1



1


1

1




Restructuring and employee severance



101


101

26

75



0.27


Amortization and other acquisition-related costs



324


324

84

240



0.87


Impairments and (gain)/loss on disposal of assets, net 5



2,050


2,050

107

1,943



6.93


Litigation (recoveries)/charges, net 6,7



109


109

21

88



0.31


Loss on early extinguishment of debt




10

3

7



0.03


(Gain)/Loss on sale of equity interest in naviHealth




(2)

(2)




Non-GAAP

$  6,547

(3) %

$  4,557

1 %

$      1,990

(12) %

$     1,824

$               404

$      1,419

(13) %

22.1 %

$    5.06

(9) %
















Fiscal Year 2021

GAAP

$  6,778

(1) %

$  4,533

(1) %

$        472

N.M.

$       323

$              (289)

$        611

N.M.

(89.7) %

$    2.08

N.M.

Surgical gown recall costs/(income)

(24)


4


(28)


(28)

(7)

(21)



(0.07)


State opioid assessment related to prior fiscal years


(38)


38


38

9

29



0.10


Restructuring and employee severance



114


114

27

87



0.29


Amortization and other acquisition-related costs



451


451

118

333



1.13


Impairments and (gain)/loss on disposal of assets, net



79


79

15

64



0.21


Litigation (recoveries)/charges, net 8



1,129


1,129

606

523



1.78


Loss on early extinguishment of debt




14

3

11



0.04


(Gain)/Loss on sale of equity interest in naviHealth






2

1

1



0.01


Non-GAAP

$  6,754

(2) %

$  4,499

(1) %

$      2,255

(5) %

$     2,122

$               483

$      1,637

2 %

22.8 %

$    5.57

2 %

1For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.

2Distribution, selling, general and administrative expenses. 

3Attributable to Cardinal Health, Inc.

4For fiscal 2022, GAAP diluted loss per share attributable to Cardinal Health, Inc. ("GAAP diluted EPS") and the EPS impact from the GAAP to non-GAAP per share reconciling items is calculated using a weighted average of 279 million common shares, which excludes potentially dilutive securities from the denominator due to their anti-dilutive effects resulting from our GAAP net loss for the period. For fiscal 2022, non-GAAP diluted EPS is calculated using a weighted average of 280 million common shares, which includes potentially dilutive shares.

5 Impairments and (gain)/loss on disposals of assets, net includes pre-tax goodwill impairment charges of $2.1 billion related to our Medical segment recorded in fiscal 2022. For fiscal 2022, the net tax benefit related to these impairments is $150 million and is included in the annual effective tax rate.

6 Litigation (recoveries)/charges, net for fiscal 2022 does not include a $16 million judgement for lost profits related to an ordinary course intellectual property claim, which positively impacted Pharmaceutical segment profit.

7 Litigation (recoveries)/charges, net includes a one-time contingent attorneys' fee of $18 million recorded during fiscal 2022 related to the finalization of the Settlement Agreement resulting in the settlement of the vast majority of opioid lawsuits filed by state and local governmental entities. Due to the unique nature and significance of the Settlement Agreement, and the one-time, contingent nature of the fee, this fee was included in litigation (recoveries)/charges, net.

8 Litigation (recoveries)/charges, net includes a pre-tax charge of $1.17 billion recorded in fiscal 2021 related to the opioid litigation. The net tax benefit associated with the opioid litigation charges was $228 million for fiscal 2021.

Litigation(recoveries)/charges, net also includes a tax benefit recorded during fiscal 2021 related to a net operating loss carryback. Our wholly-owned insurance subsidiary recorded a self-insurance pre-tax loss in its fiscal 2020 statutory financial statements primarily related to opioid litigation. This self-insurance pre-tax loss, which did not impact our pre-tax consolidated results, was deducted on our fiscal 2020 consolidated federal income tax return and contributed to a significant net operating loss for tax purposes. The net operating loss was carried back and adjusted our taxable income for fiscal 2015, 2016, 2017 and 2018 as permitted under the Coronavirus Aid, Relief and Economic Security ("CARES") Act. The total net benefit was $424 million; however, for purposes of reconciling Non-GAAP financial measures, we allocated $389 million of the benefit to litigation (recoveries)/charges, net, which is excluded from non-GAAP measures, based on the relative amount of the self-insurance pre-tax loss related to opioid litigation claims versus separate tax adjustments. The tax benefit allocated to the separate tax adjustments of $35 million is included in non-GAAP measures.

The sum of the components and certain computations may reflect rounding adjustments.

We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred.

 

Schedule 6

Cardinal Health, Inc. and Subsidiaries
GAAP / Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow



Fiscal Year

(in millions)

2022

GAAP - Cash Flow Categories


Net cash provided by operating activities

$       3,122

Net cash provided by investing activities

567

Net cash used in financing activities

(2,463)

Effect of exchange rates changes on cash and equivalents

(25)

Cash reclassified from assets held for sale

109

Net increase in cash and equivalents

$       1,310



Non-GAAP Adjusted Free Cash Flow


Net cash provided by operating activities

$       3,122

Additions to property and equipment

(387)

Payments related to matters included in litigation (recoveries)/charges, net

511

Other significant and unusual or non-recurring items


U.S. federal tax refund from net operating loss carryback

(966)



Non-GAAP Adjusted Free Cash Flow

$       2,280



For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.




 

Cardinal Health, Inc. and Subsidiaries

Use of Non-GAAP Measures

This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").

In addition to analyzing our business based on financial information prepared in accordance with GAAP, we use these non-GAAP financial measures internally to evaluate our performance, engage in financial and operational planning, and determine incentive compensation because we believe that these measures provide additional perspective on and, in some circumstances are more closely correlated to, the performance of our underlying, ongoing business. We provide these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on our financial and operating results on a year-over-year basis and in comparing our performance to that of our competitors. However, the non-GAAP financial measures that we use may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The non-GAAP financial measures disclosed by us should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth below should be carefully evaluated.

Exclusions from Non-GAAP Financial Measures

Management believes it is useful to exclude the following items from the non-GAAP measures presented in this report for its own and for investors' assessment of the business for the reasons identified below:

  • LIFO charges and credits are excluded because the factors that drive last-in first-out ("LIFO") inventory charges or credits, such as pharmaceutical manufacturer price appreciation or deflation and year-end inventory levels (which can be meaningfully influenced by customer buying behavior immediately preceding our fiscal year-end), are largely out of our control and cannot be accurately predicted. The exclusion of LIFO charges and credits from non-GAAP metrics facilitates comparison of our current financial results to our historical financial results and to our peer group companies' financial results. We did not recognize any LIFO charges or credits during the periods presented.
  • Surgical gown recall costs or income includes inventory write-offs and certain remediation and supply disruption costs, net of related insurance recoveries, arising from the January 2020 recall of select Association for the Advancement of Medical Instrumentation ("AAMI") Level 3 surgical gowns and voluntary field actions (a recall of some packs and a corrective action allowing overlabeling of other packs) for Presource Procedure Packs containing affected gowns. Income from surgical gown recall costs represents insurance recoveries of these certain costs. We have excluded these costs from our non-GAAP metrics to allow investors to better understand the underlying operating results of the business and to facilitate comparison of our current financial results to our historical financial results and to our peer group companies' financial results.
  • State opioid assessments related to prior fiscal years is the portion of state assessments for prescription opioid medications that were sold or distributed in periods prior to the period in which the expense is incurred. This portion is excluded from non-GAAP financial measures because it is retrospectively applied to sales in prior fiscal years and inclusion would obscure analysis of the current fiscal year results of our underlying, ongoing business. Additionally, while states' laws may require us to make payments on an ongoing basis, the portion of the assessment related to sales in prior periods are contemplated to be one-time, nonrecurring items. Income from state opioid assessments related to prior fiscal years represents reversals of accruals when the underlying assessments were invalidated by a Court or reimbursed by manufacturers.
  • Restructuring and employee severance costs are excluded because they are not part of the ongoing operations of our underlying business.
  • Amortization and other acquisition-related costs, which include transaction costs, integration costs, and changes in the fair value of contingent consideration obligations, are excluded because they are not part of the ongoing operations of our underlying business and to facilitate comparison of our current financial results to our historical financial results and to our peer group companies' financial results. Additionally, costs for amortization of acquisition-related intangible assets are non-cash amounts, which are variable in amount and frequency and are significantly impacted by the timing and size of acquisitions, so their exclusion facilitates comparison of historical, current and forecasted financial results. We also exclude other acquisition-related costs, which are directly related to an acquisition but do not meet the criteria to be recognized on the acquired entity's initial balance sheet as part of the purchase price allocation. These costs are also significantly impacted by the timing, complexity and size of acquisitions.
  • Impairments and gain or loss on disposal of assets are excluded because they do not occur in or reflect the ordinary course of our ongoing business operations and are inherently unpredictable in timing and amount, and in the case of impairments, are non-cash amounts, so their exclusion facilitates comparison of historical, current and forecasted financial results.
  • Litigation recoveries or charges, net are excluded because they often relate to events that may have occurred in prior or multiple periods, do not occur in or reflect the ordinary course of our business and are inherently unpredictable in timing and amount. During fiscal 2022, we incurred a one-time contingent attorneys' fee of $18 million related to the finalization of the Settlement Agreement resulting in the settlement of the vast majority of opioid lawsuits filed by state and local governmental entities. Due to the unique nature and significance of the Settlement Agreement, and the one-time, contingent nature of the fee, this fee was included in litigation recoveries or charges, net. Additionally, during fiscal 2022 our Pharmaceutical segment profit was positively impacted by a $16 million judgment for lost profits. This judgment was the result of an ordinary course intellectual property rights claim and, therefore, is not adjusted in calculating the litigation recoveries or charges, net adjustment. During fiscal 2021, we incurred a tax benefit related to a carryback of a net operating loss. Some pre-tax amounts, which contributed to this loss, relate to litigation charges. As a result, we allocated substantially all of the tax benefit to litigation charges.
  • Loss on early extinguishment of debt is excluded because it does not typically occur in the normal course of business and may obscure analysis of trends and financial performance. Additionally, the amount and frequency of this type of charge is not consistent and is significantly impacted by the timing and size of debt extinguishment transactions.
  • (Gain)/Loss on sale of equity interest in naviHealth was incurred in connection with the sale of our remaining equity interest in naviHealth in fiscal 2020. The equity interest was retained in connection with the initial sale of our majority interest in naviHealth during fiscal 2019. We exclude this significant gain because gains or losses on investments of this magnitude do not typically occur in the normal course of business and are similar in nature to a gain or loss from a divestiture of a majority interest, which we exclude from non-GAAP results. The gain on the initial sale of our majority interest in naviHealth in fiscal 2019 was also excluded from our non-GAAP measures.

The tax effect for each of the items listed above is determined using the tax rate and other tax attributes applicable to the item and the jurisdiction(s) in which the item is recorded. The gross, tax and net impact of each item are presented with our GAAP to non-GAAP reconciliations.

Non-GAAP adjusted free cash flow: We provide this non-GAAP financial measure as a supplemental metric to assist readers in assessing the effects of items and events on our cash flow on a year-over-year basis and in comparing our performance to that of our peer group companies. In calculating this non-GAAP metric, certain items are excluded from net cash provided by operating activities because they relate to significant and unusual or non-recurring events and are inherently unpredictable in timing and amount. We believe adjusted free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, debt repayments, dividend payments, share repurchases, strategic acquisitions, or other strategic uses of cash. A reconciliation of our GAAP financial results to Non-GAAP adjusted free cash flow is provided in Schedule 6 of the financial statement tables included with this release.

Forward Looking Non-GAAP Measures

In this document, the Company presents certain forward-looking non-GAAP metrics. The Company does not provide outlook on a GAAP basis because the items that the Company excludes from GAAP to calculate the comparable non-GAAP measure can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities. Additionally, management does not forecast many of the excluded items for internal use and therefore cannot create or rely on outlook done on a GAAP basis.

The occurrence, timing and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact the Company's fiscal 2022 GAAP results. Over the past five fiscal years, the excluded items have impacted the Company's EPS from $0.75 to $18.06, which includes a $17.54 charge related to the opioid litigation we recognized in fiscal 2020. The excluded items for fiscal 2022 year to date period impacted the Company's EPS by $8.41.

Definitions

Growth rate calculation: growth rates in this report are determined by dividing the difference between current-period results and prior-period results by prior-period results.

Interest and Other, net: other(income)/expense, net plus interest expense, net.

Segment Profit: segment revenue minus (segment cost of products sold and segment distribution, selling, general and administrative expenses).

Segment Profit margin: segment profit divided by segment revenue. 

Non-GAAP gross margin: gross margin, excluding LIFO charges/(credits) and surgical gown recall costs/(income).

Non-GAAP distribution, selling, general and administrative expenses or Non-GAAP SG&A: distribution, selling, general and administrative expenses, excluding surgical gown recall costs/(income) and state opioid assessment related to prior fiscal years.

Non-GAAP operating earnings: operating earnings/(loss) excluding (1) LIFO charges/(credits), (2) surgical gown recall costs/(income), (3) state opioid assessment related to prior fiscal years, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, and (7) litigation (recoveries)/charges, net.

Non-GAAP earnings before income taxes: earnings/(loss) before income taxes excluding (1) LIFO charges/(credits), (2) surgical gown recall costs/(income), (3) state opioid assessment related to prior fiscal years, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, (7) litigation (recoveries)/charges, net, (8) loss on early extinguishment of debt and (9) (gain)/loss on sale of equity interest in naviHealth.

Non-GAAP net earnings attributable to Cardinal Health, Inc.: net earnings/(loss) attributable to Cardinal Health, Inc. excluding (1) LIFO charges/(credits), (2) surgical gown recall costs/(income), (3) state opioid assessment related to prior fiscal years, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, (7) litigation (recoveries)/charges, net, (8) loss on early extinguishment of debt and (9) (gain)/loss on sale of equity interest in naviHealth, each net of tax.

Non-GAAP effective tax rate: provision for/(benefit from) income taxes adjusted for (1) LIFO charges/(credits), (2) surgical gown recall costs/(income), (3) state opioid assessment related to prior fiscal years, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, (7) litigation (recoveries)/charges, net, (8) loss on early extinguishment of debt and (9) (gain)/loss on sale of equity interest in naviHealth, each net of tax, divided by (earnings/(loss) before income taxes adjusted for the first nine items).

Non-GAAP diluted earnings per share attributable to Cardinal Health, Inc.: non-GAAP net earnings attributable to Cardinal Health, Inc. divided by diluted weighted-average shares outstanding.

Non-GAAP adjusted free cash flow: net cash provided by operating activities less payments related to additions to property and equipment, excluding settlement payments and receipts related to matters included in litigation (recoveries)/charges, net, as defined above, or other significant and unusual or non-recurring cash payments or receipts. For example, the U.S. federal income tax refund of $966 million for the tax benefit from the net operating loss carryback related to a self-insurance pre-tax loss was excluded from the Company's fiscal 2022 non-GAAP adjusted free cash flow.

 

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/cardinal-health-reports-fourth-quarter-and-full-year-results-for-fiscal-year-2022-301604223.html

SOURCE Cardinal Health

Read More

Continue Reading

Economics

Webb Fontaine Announces Launch of Niger National Single Window (NNSW) to Bolster Trade

Webb Fontaine Announces Launch of Niger National Single Window (NNSW) to Bolster Trade
PR Newswire
DUBAI, UAE, Aug. 11, 2022

The launch is expected to bolster trade and increase the country’s revenues
DUBAI, UAE, Aug. 11, 2022 /PRNewswire/ — Web…

Published

on

Webb Fontaine Announces Launch of Niger National Single Window (NNSW) to Bolster Trade

PR Newswire

The launch is expected to bolster trade and increase the country's revenues

DUBAI, UAE, Aug. 11, 2022 /PRNewswire/ -- Webb Fontaine and the Niger Chamber of Commerce and Industry, along with its partners, marked the launch of the Niger National Single Window platform through a ceremony held at the Chamber of Commerce and Industry of Niger. The Single Window platform will bolster foreign trade and increase Niger's revenues, while improving the overall speed and efficiency of trade. 

The event took place in the presence of Yayé Djibo, representing the office of the President of the Republic of Niger, Colonel Diori Hamani from the General Directorate of Customs and Ousmane Mahaman, Secretary General of the Chamber of Commerce and Industry of Niger (CCIN).

Created by decree n°2021-210/PRN/MF/MC/PSP on March 26, 2021, powered by Webb Fontaine's technology, NNSW provides a contactless, cashless, and paperless trade ecosystem reducing the time and cost of doing business for Niger traders and empowering them to compete globally.

The NNSW platform is capable of incorporating multiple processes related to the smooth operation of trade and Customs involving governmental and private organizations. The platform enables Niger traders to electronically connect with multiple governmental and non-governmental agencies involved in international trade to obtain the necessary licences, permits, certificates, and other trade documents required for international trade.

The development of the NNSW platform started in 2021 and is now operational with its first pre-clearance module.

"We are honoured to be the official technology partner of Niger, working in close collaboration with the Government to implement the Single Window for Trade. Webb Fontaine's latest technologies will help transform Niger's trade environment, modernising and streamlining all trade processes, while increasing trust amongst stakeholders".
Samy Zayani, Chief Commercial Officer, Webb Fontaine

The Niger trade community can now carry out clearance processes online, in an efficient and effective manner. The platform offers a single point of entry for all import, export, and transit operations in Niger.

"Webb Fontaine's goal and mission is to assist and train the trade community in using the new NNSW platform, and will soon open an internet centre to further power the adoption of the new platform".
Ali Karim Alio, Managing Director of Webb Fontaine Niger

"The Niger National Single Window is a much-awaited upgrade that will strengthen Niger's position as a trading partner and also bolster its international trade. The dematerialisation of trade procedures has become even more important in the post-COVID world as the pandemic has highlighted that the supply and logistics chains can bear the brunt of a global crisis and create newer crisis in its wake. It is crucial for Niger to work in tandem with other economies and grow its trade, the development of NNSW platform marks an important milestone for. I am delighted that Niger is joining the global trade movement".
Ousmane Mahaman, Secretary General of the Chamber of Commerce and Industry of Niger

NNSW can be accessed here guce.gouv.ne/en/

Photo - https://mma.prnewswire.com/media/1876513/CCIN_Presidium.jpg
Photo - https://mma.prnewswire.com/media/1876514/CCIN_Internet_Room.jpg

View original content to download multimedia:https://www.prnewswire.com/news-releases/webb-fontaine-announces-launch-of-niger-national-single-window-nnsw-to-bolster-trade-301604208.html

SOURCE Webb Fontaine

Read More

Continue Reading

Government

Ivana Trump’s Money Lessons for Older Americans.

Ivana Trump, the first wife of Donald Trump, was recently found dead in her Manhattan residence. She was 73.

Known throughout her life as a dynamo socialite…

Published

on

Ivana Trump, the first wife of Donald Trump, was recently found dead in her Manhattan residence. She was 73.

Known throughout her life as a dynamo socialite and dealmaker in heels, her death from a blunt trauma from a fall down the stairs in her multi-story townhome, was a shock to residents who perceived her as vibrant and full of life. So, her passing got me thinking about Ivana Trump’s money lessons for older Americans.

Listen, it’s tough to age, but don’t let the process get you down. It’s too hard to get back up! Get it?

Seriously, a great challenge is an acceptance of growing older. Aging can be a tough pill to swallow. Especially for those who are known for the travails of their younger days. I have friends who explain as they age, they ‘disappear.’ I hate to hear this.

Personally, I’m living my best self and wouldn’t change a thing. However, Ageism is a real societal challenge. Based on numerous surveys, white papers, and reports from health organizations, those who are 60 and older are subject to negative stereotyping and discrimination in the workplace. Also, to younger generations, they do disappear in a manner of speaking.

But I have news for you. I think that’s about to change for you ‘seasoned’ folks.

During the pandemic, the Labor Force Participation Rate collapsed and has yet to recover. For those who need a reminder, the LFPR represents the people age 16 and older employed or seeking employment. Older Americans decided to accelerate retirement. Younger cohorts decided to go out on their own or sit back – satiated by government stimulus.

I think many older Americans will seek to unravel their retirement decision and return to the workforce. Also, I believe they’ll be welcomed with open arms by employers eager for a generation that is timely, responsible, and willing to work!

Let’s kick Ageism where it hurts. Right in the work ethic!

One money lesson I’ve learned from Ivana Trump about older Americans is that the entire world is wrinkling.

According to Peter Zeihan in his latest book – The End of The World is just the Beginning, population, and spending shrinkages are realities the entire globe must embrace. Demographics outline that mass-consumption-driven economies have already peaked.

By 2030, the world will be populated with twice as many retirees. Therefore, we all better internalize the fact that we’re getting older and financially and emotionally prepare accordingly. Long-term, poor demographics are deflationary.

In my opinion, Ivana Trump refused to accept aging. Thus, I consider Ivana Trump’s money lessons for older Americans applicable to all of us. 

Regardless of her immense wealth, she must have encountered anguish when it comes to getting older. Sure having money doesn’t hurt. Suffering in luxury isn’t bad. However, aging doesn’t care about a net worth statement.

Denial of aging is real and one of Ivana Trump’s best money lessons for older Americans.

Who needs comprehensive studies to understand that denial of getting older is a reality? I see it in myself as I dramatically changed my diet and amped up my physical workouts years ago to fight or slow the inevitable.

Frankly, my graying hairline stresses me out. 

I engage with people regularly who aren’t ready to deal with how someday they may move slower, forget things often and work through periodic illness or injury. Older clients and their adult children have a tough time facing that mom and dad are grayer, smaller, and frailer than they used to be.

Per a July 2022 analysis from the Center for Retirement Research, older Americans and retirees poorly assess the risks they face in retirement. Health and longevity risks (the risk of living longer than expected and exhausting financial resources) are underestimated.

Per the study: Perceived longevity risk and health risk rank lower because retirees are pessimistic about their survival probabilities and often underestimate their health costs in late life.

I cannot tell you how many clients inform me how sure they are about dying early. How do they know? So, I always ask the following question –

“What if you don’t?”

Ivana Trump’s friends were concerned about her home’s beautiful but dangerous staircase. They were worried about her falling. She had an elevator and rarely used it. The stairs at her home were steep, the carpet was worn. Although she had trouble walking, she regularly took the stairs. She had the money to remove or replace the carpet; the elevator would have been perfect, but she rarely used it.

Why?

In her halcyon days, Ivana was New York royalty. Young, vibrant. She could accomplish anything. How can someone like that stare into the mirror and face vincibility? How can you? Can I? Acceptance is the first step to a rich life as we age, to feel comfortable in different but richer skins.

That acceptance opens the door to preparation – eating right, exercising regularly, and preparing for the risks of aging through comprehensive planning and open communication with family and friends.

If I deny aging, then I’ll force everyone around me to deny it too. Or, at the least, family members and friends will discuss issues concerning me behind my back. Who wants that? Older Americans must be open to listening.

This leads to my next financial lesson for older Americans from Ivana Trump.

Communication. Another one of the money lessons Ivana Trump has for older Americans.

I wonder how many times Ivana was advised (perhaps delicately) by Ivanka and the other kids to update her place for aging, move to a one-story, or take the damn elevator. Whatever it is, would Ivana listen or just carry on like it was the 1980s? In her mind, it may have been decades ago, but her aging body lived in the here and now.

There’s a nuance and empathy to communicating with older loved ones.

Remember, they were young like you once. Listen to your special older Americans. Never be condescending. A good idea may be to bring in an objective third party such as your financial advisor to assist with the discussions. I’ve witnessed adult children infantilize their parents, and that never works. Imagine approaching Ivana with that tone! Not good!

Remember, even mild cognitive impairment can drive a communication wedge between you, and your aging loved one. However, don’t give up sparking conversation. I work with clients who consistently need to nuance their speech with their parents. They get their points across eventually. Impaired older relatives eventually take action, but the process is like chipping away at an iceberg with a butter knife.

Don’t give up!

Genworth, a leader in long-term care insurance and research, maintains an impactful Conversation Starters page with helpful tips about what to talk about and how to maintain a dialogue. Check it out.

Use your financial plan to motivate others.

How can you discuss long-term care issues with loved ones if you’re personally in denial about aging? A risk mitigation plan as part of a comprehensive financial strategy validates your commitment to preparation. Actions forge your conversations with credibility.

According to AARP’s most recent Home and Community Preference Survey, 77% of adults 50 and older want to remain in their homes or age in place. The number has been consistent for over a decade. Aging in place requires planning – whether it’s to eventually downsize to a one-story home, renovate kitchen and baths or install easy access ramps for items of mobility such as wheelchairs. It would be worth practicing financial openness and sharing this information with aging parents. In other words, if you’re preparing for these expenses, they should be too.

Don’t forget long-term care insurance as one of Ivana Trump’s money lessons for older Americans.

Ivana didn’t need long-term care insurance. You probably need to consider it.

Unfortunately, nearly half of individuals who apply for traditional long-term care insurance after age 70 have their applications declined by an insurer, according to Jesse Slome, director of the American Association for Long-Term Care Insurance. However, loved ones in good health in their 50s and 60s can still consider long-term care insurance. The sweet spot for looking into long-term care coverage is generally between ages 55 and 65, per Jesse Slome.

Three out of every five financial plans I create reflect deficiencies in meeting long-term care expenses. Medical insurance like Medicare does not cover long-term care expenses – a common misperception. Nearly 60% of people surveyed in various studies falsely believe that Medicare covers long-term care expenses.

The Genworth Cost of Care Survey has been tracking long-term care costs across 440 regions across the United States since 2004.

Genworth’s results assume an annual 3% inflation rate. In today’s dollars, a home-health aide who assists with cleaning, cooking, and other responsibilities for those who seek to age in place or require temporary assistance with daily living activities can cost over $54,912 a year in the Houston area. We use a 4.25-4.5% inflation rate for financial planning purposes to reflect recent median annual costs for assisted living and nursing home care. Candidly, I fear that I’ll need to increase this inflation rate in 2023.

As I examine long-term care policies issued recently vs. those 10 years or later, it’s glaringly obvious that coverage isn’t as comprehensive, and costs are more prohibitive.

One option is to consider a reverse mortgage, specifically a home equity conversion mortgage. The horror stories about these products are overblown. The most astute planners and academics understand how incorporating the equity from a primary residence in a retirement income strategy can help with the burden of long-term care costs. Those who talk down these products are speaking out of lack of knowledge and falling easily for pervasive false narratives.

Reverse mortgages have several layers of costs (nothing like they were in the past), and it pays for consumers to shop around for the best deals. Also, to qualify for a reverse mortgage, the homeowner must be 62, the home must be a primary residence, and the debt limited to mortgage debt. There are several ways to receive payouts.

One of the smartest strategies is to establish a reverse mortgage line of credit at age 62, leave it untapped, and allow it to grow along with the home’s value. 

The line may be tapped for long-term care expenses if needed or to mitigate the sequence of poor return risk in portfolios. Simply, in years where portfolios are down, the reverse mortgage line is used for income while portfolios recover. Once assets recover, rebalancing proceeds or gains may be used to repay the reverse mortgage loan, restoring the line of credit.

RIA’s approach to helping older Americans age comfortably in place.

Our planning software allows our team to consider a reverse mortgage in the analysis. Those plans have a high probability of success. We explain that income is as necessary as water regarding retirement. For many retirees, converting the glacier of a home into the water of income using a reverse mortgage will be required for retirement survival and especially long-term care expenses.

Ivana Trump’s money lessons for older Americans are lessons for us all, regardless of age.

Planning to age gracefully and healthfully will lead to a prosperous retirement attitude.

As George Burns said: You can’t help getting older, but you don’t have to get old.

The longer I live, the more I realize how true that quote is.

The post Ivana Trump’s Money Lessons for Older Americans. appeared first on RIA.

Read More

Continue Reading

Trending