VALLEY FORGE, Pa.--(BUSINESS WIRE)--Nov. 15, 2005--The Board of
Directors of AmerisourceBergen Corporation (NYSE:ABC) today announced
a 100 percent increase in the quarterly dividend rate to $0.05 per
common share from $0.025 per common share and a two-for-one stock
split of the Company's outstanding shares of common stock.
R. David Yost, AmerisourceBergen Chief Executive Officer, said,
"The doubling of the dividend and the two-for-one stock split reflect
our continued confidence in our performance and our disciplined use of
cash to deliver long-term value to our shareholders."
For the current quarter, the Company's Board declared a cash
dividend of $0.05 per share of common stock, payable December 12, 2005
to stockholders of record at the close of business on November 25,
2005.
The split will be in the form of a stock dividend, whereby each
stockholder will receive one additional share for each share owned.
The new shares will be distributed December 28, 2005 to stockholders
of record at the close of business on December 13, 2005. The Company
currently has approximately 104.3 million shares outstanding. After
the split, the Company expects to have approximately 208.6 million
shares of common stock outstanding, excluding any share repurchase or
option exercise activity between now and the split date. As a result
of the stock split, future declared quarterly cash dividends are
expected to be paid at a rate of $0.025 per common share.
AmerisourceBergen reaffirmed its fiscal 2006 expectations of
operating revenue growth in the range of 6 percent to 8 percent and
diluted earnings per share of between $3.95 and $4.25, $1.98 to $2.13
on a post-split basis. Diluted earnings per share expectations include
the impact of a $0.09, $0.045 post-split, charge for equity
compensation expense and the anticipation that litigation recovery
gains will be offset by facility consolidation and employee severance
expense. For fiscal 2006, the Company continues to expect
pharmaceutical distribution segment operating margins to be in the
range of 115 basis points to 125 basis points, and cash flow from
operations to be in the range of $500 million to $600 million.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is one of the largest pharmaceutical
services companies in the United States. Servicing both pharmaceutical
manufacturers and healthcare providers in the pharmaceutical supply
channel, the Company provides drug distribution and related services
designed to reduce costs and improve patient outcomes.
AmerisourceBergen's service solutions range from pharmacy automation
and pharmaceutical packaging to pharmacy services for skilled nursing
and assisted living facilities, reimbursement and pharmaceutical
consulting services, and physician education. With more than $54
billion in annual revenue, AmerisourceBergen is headquartered in
Valley Forge, PA, and employs more than 14,000 people.
AmerisourceBergen is ranked #23 on the Fortune 500 list. For more
information, go to www.amerisourcebergen.com.
FORWARD-LOOKING STATEMENTS
This news release may contain certain "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 changes in circumstances. Actual results may vary
materially from the expectations contained in the forward-looking
statements. Forward-looking statements may include statements
addressing AmerisourceBergen's future financial and operating results
and the benefits, efficiencies and savings to be derived from the
Company's integration plans to consolidate its distribution network.
The following factors, among others, could cause actual results to
differ materially from those described in any forward-looking
statements: competitive pressures; the loss of one or more key
customer or supplier relationships; customer defaults or insolvencies;
changes in customer mix; supplier defaults or insolvencies; changes in
pharmaceutical manufacturers' pricing and distribution policies or
practices; adverse resolution of any contract or other disputes with
customers (including departments and agencies of the U.S. Government)
or suppliers; regulatory changes; changes in U.S. government policies
(including reimbursement changes arising from the Medicare
Modernization Act); market interest rates; operational or control
issues arising from AmerisourceBergen's outsourcing of information
technology activities; success of the Pharmaceutical Distribution
segment's ability to transition its business model to fee-for-service;
success of integration, restructuring or systems initiatives;
fluctuations in the U.S. dollar - Canadian dollar exchange rate;
economic, business, competitive and/or regulatory developments in
Canada; acquisition of businesses that do not perform as we expect or
that are difficult for us to integrate or control; and other economic,
business, competitive, legal, regulatory and/or operational factors
affecting the business of AmerisourceBergen generally.
More detailed information about these and other risk factors is
set forth in AmerisourceBergen's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
fiscal 2004.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward looking
statements whether as a result of new information, future events or
otherwise.
CONTACT: AmerisourceBergen Corporation, Valley Forge
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation