This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Express Scripts Inc. (ESRX: chart) on February 22, 2008.

Chairman, CEO and President: George Paz
CFO and Sr. VP: Edward J. Stiften
VP IR: David Myers

Key Investors Issues

- The earnings per share were flat at 54 cents over the prior year quarter.
- Quarterly revenue of $4.69 billion represents an increase of 4% over last year.
- For fiscal 2007, the company reported net income of $567.8 million or $2.15 per share.

Fourth Quarter Fiscal 2007 Financial Highlights

Express Scripts reported net income of $138.5 million or 54 cents per diluted share.

Excluding non recurring items in both years, earnings per diluted share was a record 68 cents, a 33% increase over 51 cents per diluted share last year. All per share amounts have been adjusted to reflect the company''s 2-for-1 stock split, which was effective June 22, 2007. Cash flow from operations for the fourth quarter was a record $329 million compared to $306 million for the same period last year.

Gross profit for the fourth quarter increased 13% to $465 million from $409.7 million last year.

The increase reflects lower retail and home delivery drug purchasing costs and higher generic utilization. Generic utilization reached a record 63.7% compared to 59.7% last year. These increases were partially offset by a non-recurring inventory charge. Gross profit per adjusted claim was a record $3.60, a 14% increase over $3.15 for the same quarter last year.

Adjusted operating income increased 23% to $297.7 million from $242.4 million last year.

Adjusted PBM operating income excludes legal expenses of $6 million, which are higher than a normal quarter due to developments in some open cases. Adjusted operating income for the SAAS segment, which excludes the non-recurring charges, was impacted by the milder than normal flu season, and severance and other costs incurred to integrate the operations and administrative functions of the SAAS segment within the PBM segment. The combination of the PBM and specialty offerings contributed to strong adjusted operating income for the PBM segment, which increased 29% to $286.8 million from $222.2 million last year.

Higher generic utilization and lower retail and home delivery drug purchasing costs translated into strong EBITDA growth.

Adjusted EBITDA from continuing operations increased 20% to $320.9 million from $267.4 million last year, and on a per adjusted claim basis set a record at $2.49, a 21% increase over $2.06 in the fourth quarter of 2006.

The company is reviewing the strategic fit of the infusion business in its product portfolio.

As a result of this review, the company is in the process of selling this business unit, which has been reclassified to discontinued operations for all current and prior periods. Accordingly, the results for the quarter and year are segregated between continuing and discontinued operations.

The company reported a net loss from discontinued operations of $27.6 million, or 11 cents per diluted share in the fourth quarter.

Excluding non-recurring impairment and restructuring costs, the adjusted loss was $3.7 million or 1 cent per diluted share.

Fiscal 2007 Financial Highlights

The company reported net income of $567.8 million, or $2.15 per diluted share. Excluding non-recurring items in both years, earnings per diluted share was a record $2.35, a 42% increase over $1.65 per diluted share last year. The company reported record cash flow from operations of $827.3 million compared to $658.6 million in 2006.

Total adjusted claims for 2007 were 507 million.