What the Analysts are
saying about CVS:
"We believe CVS epitomizes the applica-
tion of `best practices' in the drugstore
industry: It boasts highly productive
stores, technical skills to rival Walgreen,
and an expansionist aggression to rival
Rite Aid...In this company we find all of
the elements of a vertically integrated
local healthcare provider that we consid-
er desirable in this sector...CVS is the
growth stock without peer in this group."
J.P. Morgan
April 3, 1997
"In our view, management has already
proven its ability to operate highly
successful drugstores, having achieved
the dominant position in most of its
core markets and above-average sales
productivity."
Bear Stearns
July 10, 1997
"We continue to recommend CVS as a
core holding in the drug store group. We
have remained long time supporters of
CVS and expect that this industry leading
drug chain will significantly improve the
operations of Revco, extract sizable cost
savings ($100 million) and deliver supe-
rior earnings growth of 20% or more
through 1999."
Donaldson, Lufkin & Jenrette
July 24, 1997
"All in all, the Revco merger was orches-
trated perfectly with CVS buying the best
multiregional chain left in the industry.
There are opportunities for CVS to
improve Revco's sales productivity lead-
ing us to believe the earnings momentum
story here at CVS will continue for some
time. Our confidence in this no non-
sense, highly capable management team
also supports our positive feelings here."
A.G. Edwards
June 17, 1997
Ticker: CVS
Exchange:NYSE
Current Price: $56
52-week range:
$57.94-35.68
Market Cap: $9.6 billion
Investor Contact:
Nancy Christal
Vice President, Investor Relations
CVS Corporation
670 White Plains Road, Suite 210
Scarsdale, New York 10583
(914) 722-4704
Fax (914) 722-0847
Corporate Headquarters
One CVS Drive
Woonsocket, Rhode Island 02895
(401) 765-1500
Internet: http://www.cvs.com
Analysts Reporting on CVS:
A.G. Edwards
Midwest Research
Bear Stearns
Morgan Stanley Dean Witter
Credit Suisse First Boston
Raymond James
Donaldson Lufkin & Jenrette
Robinson Humphrey
Goldman Sachs
Salomon Brothers
J.P. Morgan
Sanford Bernstein
Merrill Lynch
William Blair
Historical Financial Results
CVS Stand-alone
CAGR
CVS/Revco
1994
1995
1996
94-96
1996
Dollars in millions
Sales
$4,330
$4,865
$5,528
13.0%
$10,945
EBITDA
1
289
340
410
19.7
775
EBIT
1
228
274
338
21.7
592
Same Store Sales
6.1%
8.8%
10.9%
--
8.7%
Rx Same Store Sales
11.5%
13.9%
16.9%
--
13.3%
Number of Stores
1,328
1,366
1,408
--
4,014
Year-to-Date Results -- CVS/Revco Combined
Six Months
Percentage
1997
Change
Total Sales
$6.3 billion
20.8%
EBIT
1
$373 million
24.6%
EPS
1
$1.09
29.5%
Total Comp Sales
11.0%
--
Rx Comp Sales
17.5%
--
1
Before one-time charges.
30
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