AmerisourceBergen Reports $0.62 in Diluted EPS, a 9% Percent Increase, and Revenue of $20.4 Billion for the December Quarter
Company Reaffirms Fiscal Year 2012 EPS Guidance Range of
Fiscal First Quarter Highlights
$20.4 billion, up 2.4 percent.
Diluted earnings per share of
$0.62, an 8.8 percent increase.
- Operating expense ratio of 1.51 percent, down 2 basis points.
- Operating margin of 1.40 percent, up 1 basis point.
Cash flow from operations of
Share repurchases of
“We are off to a good start in our fiscal year 2012, with December
quarter results in line with our expectations, and excellent progress
being made on the integration of our recent acquisitions,” said
Revenue: Revenue was
$20.4 billionin the first quarter of fiscal 2012, a 2.4 percent increase over the same quarter in the previous fiscal year, driven by a 3.9 percent increase in AmerisourceBergen Specialty Group(ABSG) revenue, and a 2.1 percent increase in AmerisourceBergen Drug Corporation(ABDC) revenue. Strong performance in third party logistics in ABSG and in the retail and institutional segments in ABDC was offset in part by the previously announced loss of a large retail customer. Recent acquisitions, particularly the addition of TheraCom, contributed 0.6 percent of revenue growth in the quarter.
Gross Profit: Gross profit in the fiscal
2012 first quarter was
$593.1 million, a 2.2 percent increase over the year-ago same period. Gross profit as a percentage of revenue decreased 1 basis point to 2.91 percent over the same period in the previous year. In the same period last year, gross profit of $580.2 millionincluded a non-recurring $12 millionbenefit in connection with a customer being acquired by a third party, which was offset in the fiscal 2012 quarter by contributions from recent acquisitions. The LIFO charge in the fiscal 2012 first quarter was $3.2 millioncompared with a $9.9 millioncharge in the previous year’s first quarter.
Operating Expenses: For the first quarter
of fiscal 2012, operating expenses were
$308.2 millioncompared with $303.5 millionin the prior fiscal year’s first quarter, a 1.6 percent increase. Operating expenses in the quarter included $3.6 millionof acquisition-related transaction expenses. Compared to the prior year, operating expenses as a percentage of revenue in the fiscal first quarter of 2012 were down 2 basis points to 1.51 percent.
Operating Income: In the fiscal 2012
first quarter, operating income increased 2.9 percent to
$284.9 million, due primarily to the increase in gross profit. Operating income as a percentage of revenue increased 1 basis point to 1.40 percent in the period compared with the previous year’s first quarter.
- Tax Rate: The effective tax rate for the first quarter of fiscal 2012 was 38.2 percent, compared to 38.1 percent in the previous fiscal year’s first quarter. We continue to expect our annualized effective tax rate to be approximately 38.4 percent.
Earnings Per Share: Diluted earnings per
share were up 8.8 percent to
$0.62in the first quarter of fiscal 2012 compared to $0.57in the previous fiscal year’s first quarter. Earnings per share growth exceeded the 1.0 percent growth in net income due to the 6 percent reduction in diluted average shares outstanding.
- Shares Outstanding: Diluted average shares outstanding for the first quarter of fiscal year 2012 were 263.1 million, down 17.6 million shares from the previous fiscal year’s first quarter due primarily to share repurchases, net of option exercises over the last twelve months.
Fiscal Year 2012 Expectations
“Looking ahead, the Company continues to expect diluted earnings per
share in fiscal year 2012 to be in the range of
The Company will host a conference call to discuss its results at
To access the live conference call via telephone:
Dial in: The dial-in number for the live call will be 612-332-0226. No access code is needed.
To access the live webcast:
A replay of the telephone call and webcast will be available from
To access the telephone replay from within the US, dial 800-475-6701. From outside the US, dial 320-365-3844. The access code for the replay is 231917.
To access the archived webcast:
Certain of the statements contained in this press release are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. These statements are based on management's current expectations
and are subject to uncertainty and change in circumstances. Among the
factors that could cause actual results to differ materially from those
projected, anticipated or implied are the following: changes in
pharmaceutical market growth rates; the loss of one or more key customer
or supplier relationships; changes in customer mix; customer
delinquencies, defaults or insolvencies; supplier defaults or
insolvencies; changes in pharmaceutical manufacturers' pricing and
distribution policies or practices; adverse resolution of any contract
or other dispute with customers or suppliers; federal and state
government enforcement initiatives to detect and prevent suspicious
orders of controlled substances and the diversion of controlled
substances; qui tam litigation for alleged violations of
fraud and abuse laws and regulations and/or any other laws and
regulations governing the marketing, sale and purchase of pharmaceutical
products or any related litigation, including shareholder derivative
lawsuits; changes in federal and state legislation or regulatory action
affecting pharmaceutical product pricing or reimbursement policies,
|(In thousands, except per share data)|
|Months Ended||Months Ended|
|December 31,||% of||December 31,||% of||%|
|Cost of goods sold||19,767,552||19,308,377||2.4||%|
|Distribution, selling and administrative||273,865||1.35||%||278,033||1.40||%||-1.5||%|
|Depreciation and amortization||30,755||0.15||%||25,433||0.13||%||20.9||%|
|Employee severance, litigation and other (1)||3,559||0.02||%||-||-||%|
|Total operating expenses||308,179||1.51||%||303,466||1.53||%||1.6||%|
|Interest expense, net||22,591||0.11||%||19,144||0.10||%||18.0||%|
|Income before income taxes||262,324||1.29||%||259,289||1.30||%||1.2||%|
|Earnings per share:|
|Weighted average common shares outstanding:|
|(1) Represents acquisition costs related to business combinations.|
|(2) Includes the dilutive effect of stock options, restricted stock, and restricted stock units.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|December 31,||September 30,|
|Cash and cash equivalents||$||2,370,335||$||1,825,990|
|Accounts receivable, net||3,724,456||3,837,203|
|Prepaid expenses and other||36,631||87,896|
|Total current assets||11,955,780||11,217,623|
|Property and equipment, net||793,604||772,916|
|Other long-term assets||3,228,882||2,992,132|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Current portion of long-term debt||392,081||392,089|
|Other current liabilities||1,265,277||1,260,916|
|Total current liabilities||11,246,377||10,855,120|
|Long-term debt, less current portion||1,536,939||972,863|
|Other long-term liabilities||290,351||287,830|
|Total liabilities and stockholders' equity||$||15,978,266||$||14,982,671|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Months Ended||Months Ended|
|December 31,||December 31,|
Adjustments to reconcile net income to net cash provided by (used in) operating activities
|Changes in operating assets and liabilities||212,361||(320,711||)|
|Net cash provided by (used in) operating activities||431,703||(99,200||)|
|Cost of acquired companies, net of cash acquired||(250,501||)||-|
|Net cash used in investing activities||(298,639||)||(50,091||)|
|Purchases of common stock||(128,042||)||(185,362||)|
|Exercises of stock options||16,450||46,982|
|Cash dividends on common stock||(33,708||)||(27,735||)|
|Debt issuance costs and other||(6,535||)||(282||)|
|Net cash provided by (used in) financing activities||411,281||(107,996||)|
|Increase (decrease) in cash and cash equivalents||544,345||(257,287||)|
|Cash and cash equivalents at beginning of period||1,825,990||1,658,182|
|Cash and cash equivalents at end of period||$||2,370,335||$||1,400,895|
Barbara Brungess, 610-727-7199