Strong Operating Margin Expansion Drives Earnings
www.amerisource.com
AMERISOURCE HEALTH CORP.
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Three Three
Months Ended % of Months Ended % of
March 31, Operating March 31, Operating %
1999 Revenue 1998 Revenue Change
------------ --------- ------------ --------- ------
Revenue:
Operating revenue $2,167,984 100.00% $2,192,285 100.00% -1%
Bulk deliveries
to customer
warehouses 7,909 26,069
------------ ------------
Total revenue 2,175,893 2,218,354
Cost of goods sold:
Operating cost of
goods sold 2,056,758 94.87% 2,079,272 94.84% -1%
Cost of goods
sold - bulk
deliveries 7,909 26,069
------------ ------------
Total cost of
goods sold 2,064,667 2,105,341
------------ ------------
Gross profit 111,226 5.13% 113,013 5.16% -2%
Operating expenses:
Selling and
administrative 65,110 3.00% 70,687 3.22% -8%
Depreciation 3,500 0.16% 3,358 0.15% 4%
Amortization 254 0.01% 361 0.02% -30%
------------ ------------
Operating income 42,362 1.95% 38,607 1.76% 10%
Interest expense 9,510 0.44% 12,030 0.55% -21%
------------ ------------
Income before
taxes 32,852 1.52% 26,577 1.21% 24%
Taxes on income 12,484 0.58% 10,367 0.47% 20%
------------ ------------
Net income $20,368 0.94% $16,210 0.74% 26%
============ ============
Earnings per
share:(a)
Basic $0.42 $0.34
Assuming
dilution 0.41 0.33
Weighted average
common shares
outstanding: (a)
Basic 48,587 47,789
Assuming
dilution 49,420 48,481
AMERISOURCE HEALTH CORP.
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Six Six
Months Ended % of Months Ended % of
March 31, Operating March 31, Operating %
1999 Revenue 1998 Revenue Change
------------ --------- ------------ --------- ------
Revenue:
Operating
revenue $4,328,888 100.00% $4,446,845 100.00% -3%
Bulk deliveries
to customer
warehouses 16,671 51,067
------------ ------------
Total revenue 4,345,559 4,497,912
Cost of goods
sold:
Operating cost
of goods sold 4,115,969 95.08% 4,228,226 95.08% -3%
Cost of goods
sold - bulk
deliveries 16,671 51,067
------------ ------------
Total cost of
goods sold 4,132,640 4,279,293
------------ ------------
Gross profit 212,919 4.92% 218,619 4.92% -3%
Operating expenses:
Selling and
administrative 126,123 2.91% 136,452 3.07% -8%
Depreciation 7,000 0.16% 6,513 0.15% 7%
Amortization 510 0.01% 643 0.01% -21%
------------ ------------
Operating income 79,286 1.83% 75,011 1.69% 6%
Interest expense 17,651 0.41% 24,692 0.56% -29%
------------ ------------
Income before
taxes 61,635 1.42% 50,319 1.13% 22%
Taxes on income 23,422 0.54% 19,626 0.44% 19%
------------ ------------
Net income $38,213 0.88% $30,693 0.69% 25%
Earnings per share:
Basic $0.79 $0.64
Assuming
dilution 0.78 0.63
Weighted average
common shares
outstanding:
Basic 48,478 47,751
Assuming dilution 49,144 48,464
AMERISOURCE HEALTH CORP.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
ASSETS (unaudited)
March 31, Sept. 30, Increase
1999 1998 (Decrease)
-------- ---------- --------
Current assets:
Cash and cash
equivalents $119,134 $48,461 $70,673
Restricted cash 36,340 37,044 (704)
Accounts receivable, less
allowance for doubtful
accounts 480,326 458,238 22,088
Merchandise inventories 942,152 870,223 71,929
Prepaid expenses and other 3,816 4,356 (540)
-------- ---------- --------
Total current assets 1,581,768 1,418,322 163,446
Property and equipment, net 59,752 60,789 (1,037)
Other assets, less
accumulated amortization 78,005 73,171 4,834
-------- ---------- --------
Total assets $1,719,525 $1,552,282 $167,243
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $917,292 $873,181 $44,111
Accrued expenses
and other 42,518 48,532 (6,014)
Accrued income taxes 7,927 78 7,849
Deferred income taxes 100,671 93,385 7,286
-------- ---------- --------
Total current liabilities 1,068,408 1,015,176 53,232
Long-term debt:
Revolving credit facility 210,004 145,000 65,004
Receivables securitization
financing 299,965 299,948 17
Other debt 8,595 8,813 (218)
Other liabilities 8,664 8,036 628
Stockholders' equity:
Common stock and capital
in excess of par value 255,305 244,938 10,367
Retained earnings (deficit) (125,196) (163,409) 38,213
Cost of common stock in
treasury (6,220) (6,220) 0
-------- ---------- --------
Total stockholders' equity 123,889 75,309 48,580
-------- ---------- --------
Total liabilities and
stockholders' equity $1,719,525 $1,552,282 $167,243
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CONTACT: AmeriSource Health Corp.
MaryBeth M. Alvin, director, Investor Relations
610/296-4480
malvin@amerisource.com