Catamaran Q2 Profit Rises; Lifts 2014 Outlook - Quick Facts

(RTTNews) - Catamaran Corp. (CCT.TO, CTRX), a provider of pharmacy benefit management services and technology, reported the second-quarter 2014 net income attributable to the company of $71.4 million or $0.34 per share up from $63.4 million, or $0.31 per share in the same quarter last year.

Net income attributable to the company increased mainly due to increased revenue as a result of new customer implementations and additional income generated as a result of the Restat acquisition. These increase were partially offset by increases in SG&A expense, interest expense and amortization of intangible assets.

Quarterly adjusted earnings per share increased 10% to $0.54 per share from $0.49 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue increased 58% to $5.4 billion from last year's 3.4 billion, mainly due to organic growth driven by increased claim volume added through new customer implementations, including the continued implementation of the Cigna contract, as well as additional claim volume related to the Restat acquisition. Additionally, revenue increased as a result of increased specialty claim volume, which carries a higher revenue per claim rate compared to the Company's general book of business. Wall Street expected revenues of $5.01 billion.

Looking ahead for 2014, the company now expects the company expects GAAP earnings per share to be in the range of $1.40 to $1.50, adjusted earnings per share of $2.12 to $2.22, and on projected revenue of $20.5 billion to $21.0 billion. Wall Street currently is looking for fiscal year 2014 earnings of $2.19 per share on annual revenues of $20.74 billion.

The company said in May that it expected earnings per share to be in the range of $1.38 to $1.50, and adjusted earnings per share of $2.10 to $2.22, on projected revenues of $20 billion to $21 billion for 2014.