Diplomat Pharmacy, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company announced net sales were $1,155,069,000 compared to $1,144,838,000 for the same period a year ago. Income from operations was $2,866,000 compared to $6,805,000 for the same period a year ago. Loss before income taxes was $1,714,000 compared to income before income taxes of $468,000 for the same period a year ago. Net income attributable to the company was $6,536,000 or $0.09 per basic and diluted share compared to net loss attributable to the company of $1,098,000 or $0.02 per basic and diluted share for the same period a year ago. EBITDA was $20,744,000 compared to $16,401,000 for the same period a year ago. Adjusted EBITDA was $26,593,000 compared to $26,077,000 for the same period a year ago. Adjusted non-GAAP net income was $12,341,000 compared to $5,641,000 for the same period a year ago. Adjusted EPS was $0.18 compared to $0.08 for the same period a year ago. The increase in revenue was principally driven by acquisitions completed in 2017. The increase in net income was driven by a $10.0 million improvement in income taxes primarily driven by the Tax Cuts and Jobs Act (the Tax Act) due to the impact of the federal tax rate reduction reducing the company's net deferred tax liabilities, the revenue and gross profit explanations above, and a one-time $4.7 million impairment expense that occurred in the prior year period.

For the full year, the company announced net sales were $4,485,230,000 compared to $4,410,388,000 for the same period a year ago. Income from operations was $18,565,000 compared to $47,077,000 for the same period a year ago. Income before income taxes was $8,062,000 compared to $36,215,000 for the same period a year ago. Net income attributable to the company was $15,510,000 or $0.23 per basic and diluted share compared to $28,273,000 or $0.42 per diluted share for the same period a year ago. Net cash provided by operating activities was $135,254,000 compared to $31,326,000 for the same period a year ago. Expenditures for property and equipment was $6,652,000 compared to $6,217,000 for the same period a year ago. Expenditures for capitalized software for internal use was $3,505,000 compared to $12,595,000 for the same period a year ago. EBITDA was $85,666,000 compared to $96,086,000 for the same period a year ago. Adjusted EBITDA was $101,760,000 compared to $107,357,000 for the same period a year ago. Adjusted non-GAAP net income was $57,442,000 compared to $51,354,000 for the same period a year ago. Adjusted EPS was $0.84 compared to $0.75 for the same period a year ago. The company ended the year with $654 million of net debt, which represents approximately 3.8x the high-end of 2018 adjusted EBITDA range.

The company provided earnings guidance for the full year ending December 31, 2018. For the full-year 2018, the company expects net income attributable to the company between $4.5 million and $13.0 million, diluted EPS between $0.06 and $0.17, adjusted EPS between $0.87 and $0.97. EPS and adjusted EPS expectations assume approximately 74,900,000 weighted average common shares outstanding on a diluted basis and a tax rate of 24% and 27%, for the low- and high-end of the range, respectively, for the full year 2018, which could differ materially. Depreciation and amortization expected to be between $96,912,000 and $95,526,000. Interest expense expected to be $39,672,000 to $37,172,000. EBITDA expected to be between $142,505,000 and $150,506,000. Adjusted non-GAAP net income expected to be between $65,510,000 and $72,331,000.

The company expects to continue to be a strong cash generator, which will allow the company to be below 3x EBITDA in 2019.