VALLEY FORGE, Pa., Apr 26, 2006 (BUSINESS WIRE) -- AmerisourceBergen Corporation (NYSE:ABC) today reported
results for its fiscal second quarter ended March 31, 2006. The
following results are presented in accordance with U.S. generally
accepted accounting principles (GAAP). All prior year share and per
share amounts referenced in this news release were adjusted to reflect
the Company's December 2005 two-for-one stock split.
Fiscal Second Quarter Highlights
-- Diluted earnings per share from continuing operations of
$0.61, including a $0.06 benefit from special items, up 33
percent.
-- Record operating revenue of $14.0 billion, up 15 percent.
-- Cash flow from operations of $472 million.
Fiscal First Six Months Highlights
-- Diluted earnings per share from continuing operations of
$1.08, including a $0.09 benefit from special items, up 38
percent.
-- Record operating revenue of $27.6 billion, up 13 percent.
-- Cash flow from operations of $703 million.
"Our outstanding performance in the March quarter continues our
commitment to deliver solid and consistent growth," said R. David
Yost, AmerisourceBergen's Chief Executive Officer. "Our record $14.0
billion in operating revenue was well above our expectations, and our
outstanding earnings per share performance is the result of successful
implementation of new fee-for-service agreements and generic
opportunities, continued strong growth in our specialty business, and
our significant financial leverage. We also completed three
acquisitions in the quarter. With $1.8 billion in cash and short-term
investments, our balance sheet continues to be strong and our
financial flexibility significant."
Discussion of Results
AmerisourceBergen's operating revenue was a record $14.0 billion
in the second quarter of fiscal 2006 compared to $12.2 billion for the
same period last year, a 15 percent increase. Bulk deliveries in the
quarter increased 24 percent to $1.2 billion from $0.95 billion in
last fiscal year's second quarter.
Consolidated operating income in the fiscal 2006 second quarter
increased 10 percent to $197.9 million, primarily due to the
performance of the Pharmaceutical Distribution segment. In addition, a
$9.4 million gain from the settlement of a pharmaceutical manufacturer
antitrust litigation case, less $3.6 million of charges for facility
consolidations, employee severance, and transition costs related to
the outsourcing of information technology, had a net $5.8 million
positive impact on consolidated operating income in the fiscal 2006
second quarter. In the previous fiscal year's second quarter, charges
for facility consolidations and employee severance were $1.8 million
and the Company incurred an impairment charge of $5.3 million.
Included in other income of $5.8 million for the second quarter of
fiscal 2006 is $6.5 million relating to the sale of a small investment
and an eminent domain settlement.
Net interest expense in the second quarter of fiscal 2006 was a
low $7.3 million compared to $14.5 million in the prior year's second
quarter, a 49 percent decrease.
The effective tax rate for the second quarter of fiscal 2006 was
34.5 percent, down from 38.4 percent in the previous fiscal year's
second quarter, primarily due to $5.5 million of favorable tax
adjustments in the quarter. Without the adjustments, the tax rate in
the fiscal year 2006 second quarter would have been 37.3 percent,
still down from the prior year's second quarter due to the shift of
the Company's invested cash to more tax-free investments. The Company
expects the tax rate for the remaining six months of fiscal 2006 to be
between 37 percent and 38 percent.
Diluted earnings per share from continuing operations were $0.61
in the second quarter of fiscal 2006, compared to $0.46 in the
previous fiscal year's second quarter, a 33 percent increase. Special
items in the second quarter of fiscal 2006, which include the gain
from the antitrust litigation, the investment sale and the eminent
domain settlement, and the tax adjustments, less the charge for
facility consolidation, employee severance and information technology
transition costs, resulted in a benefit, net of tax, of $13.5 million
or $0.06 per diluted share. In the same period of the previous fiscal
year, there were $4.4 million of special charges, net of tax, which
decreased diluted earnings per share by $0.02.
Diluted average shares outstanding for the second quarter of
fiscal year 2006 were 210.8 million, down nearly 10 million from the
previous fiscal year's second quarter due to share repurchases.
Cash generated from operations in the second quarter of fiscal
year 2006 was $472 million and in the first six months of fiscal 2006
was $703 million.
For the first six months of fiscal 2006, AmerisourceBergen's
operating revenue was $27.6 billion compared to $24.4 billion for the
same period last year, a 13 percent increase. Bulk deliveries in the
first half of the fiscal year decreased 4 percent to $2.3 billion.
Consolidated operating income in the first six months of the
fiscal year increased 16 percent to $364.5 million primarily due to
improved gross margin in the Pharmaceutical Distribution segment.
For the first six months of fiscal 2006, diluted earnings per
share from continuing operations were $1.08, compared to $0.78, before
the cumulative effect of a change in accounting, in the same six-month
period last year.
"For the fiscal 2006 second quarter, excellent operating
performance in the Pharmaceutical Distribution segment more than
offset the weak performance in PharMerica," said Kurt J. Hilzinger,
AmerisourceBergen's President and Chief Operating Officer.
"Strong revenues from our larger, lower-margin customers and new
business drove the Drug Corporation's revenue growth, while
contributions from our fee-for-service agreements and generic
pharmaceuticals programs were the primary drivers of gross margin.
Benefits from Optimiz(R), our program to enhance the efficiency of our
distribution center network, continued to improve our cost structure
and remains on schedule and on budget. Our customer-focused Transform
program to improve value to the customer and deliver better margins
for the Drug Corporation was also a contributor in the quarter. During
the quarter we also purchased a Western Canadian distributor to expand
our operations in Canada.
"With annualized operating revenue of more than $8.5 billion, our
Specialty Group continued its strong growth and performance. Its
market-leading oncology businesses, which continue to grow faster than
the overall pharmaceutical market, its other distribution businesses
in such areas as plasma and nephrology, and its manufacturing
services, including reimbursement consulting, all contributed to the
Group's accelerating revenue and earnings performance. In February,
the Group completed the acquisition of Network for Medical
Communications & Research, a provider of accredited physician
education and analytical research in oncology.
"The Packaging Group continued to deliver solid results on its
growing pipeline of contract packaging programs for manufacturers and
to expand its compliance packaging solutions for healthcare providers.
In March, the Group acquired Brecon Pharmaceuticals, a contract and
clinical trials packager located in Wales, United Kingdom. The
addition will expand the Group's geographical reach to include
packaging for the European and Asian markets.
"Our PharMerica segment continued to be negatively impacted in the
second quarter as its business model transitions under Medicare Part
D. Revenue, however, improved 6 percent over the previous fiscal
year's second quarter, due to the long-term care business' ability to
capitalize on its national footprint and deploy new technology
offerings to customers."
Segment Review
AmerisourceBergen operates in two reportable segments:
Pharmaceutical Distribution (which includes the operations of
AmerisourceBergen Drug Corporation, Specialty Group, and Packaging
Group) and PharMerica (which includes the long-term care pharmacy and
workers' compensation businesses). Intersegment sales of $241.1
million in the second quarter of fiscal 2006 from AmerisourceBergen
Drug Corporation to PharMerica, which are included in the
Pharmaceutical Distribution segment operating revenue, are eliminated
for consolidated reporting purposes.
Pharmaceutical Distribution Segment
Record operating revenue of $13.9 billion in the second quarter of
fiscal 2006 was up 15 percent compared to the same quarter in the
previous fiscal year.
Strong growth in the Drug Corporation, primarily in large accounts
and new business, coupled with continued strong performance in the
Specialty Group, drove operating revenues above the Company's
expectations. Pharmaceutical Distribution customer mix in the second
quarter of fiscal 2006 was 59 percent institutional and 41 percent
retail.
For the segment, gross profit as a percentage of operating revenue
in the second quarter of fiscal 2006 was 3.16 percent compared to 3.21
percent in the same period in the prior fiscal year. Operating
expenses as a percentage of operating revenue in the fiscal 2006
second quarter were 1.89 percent, down 0.04 percent from 1.93 percent
in the prior year's second quarter.
Segment operating income for the fiscal 2006 second quarter was
$176.0 million, a 14 percent increase over the same period in fiscal
2005. Operating income as a percentage of operating revenue in the
second quarter of fiscal 2006 was 1.27 percent, slightly below the
1.28 percent in the same quarter last fiscal year, and in the first
six months of fiscal 2006 was 1.16 percent, an increase over the 1.04
percent in the first half of fiscal 2005.
PharMerica
PharMerica's revenue for the second quarter of fiscal 2006 was a
record $412.7 million, a 6 percent increase over the previous year's
second quarter. Operating income for the second quarter of fiscal 2006
was $16.2 million, compared to $32.0 million for the same quarter last
year, reflecting increased bad debt expense and the cost of
implementing Medicare Part D. Operating income as a percentage of
revenue was 3.92 percent in the second quarter of fiscal 2006, below
expectations. The second quarter of the previous fiscal year benefited
from a $4.0 million reduction in sales tax liability. The Company
continues to expect operating margins to be in the 4 percent to 5
percent range for fiscal year 2006.
Looking Ahead
"With the anticipation that operating revenue will be
approximately $14 billion in each of the remaining two quarters of
this fiscal year, we expect the fiscal year 2006 operating revenue
growth to be in a range of 10 percent to 12 percent, an increase from
our previous range of 7 percent to 9 percent," said Yost. "We also are
increasing our expectations for diluted earnings per share from
continuing operations on a GAAP basis in the 2006 fiscal year to a
range of $2.06 to $2.21 from the previous range of $1.98 to $2.13.
This increase reflects the expected net benefit of $0.08 from special
items including litigation gains; facility consolidation, severance
and information technology transition charges; and the second
quarter's investment sale, eminent domain settlement, and tax
adjustments. Fiscal 2006 diluted earnings per share from continuing
operations expectations continue to include the impact of a $0.04 to
$0.05 charge for equity compensation expense. Our expectation for cash
flow from operations for fiscal 2006 is being raised to a range $600
million to $700 million from the previous anticipation of $500 million
to $600 million.
"For fiscal 2006, we continue to expect operating margins from the
Pharmaceutical Distribution segment to be in the range of 1.15 percent
to 1.25 percent. With the operating revenue growth in the segment
coming primarily from our largest customers, it is likely that the
higher we may be in the operating revenue growth range the lower we
will be in the operating margin range."
AmerisourceBergen has repurchased $132 million of its stock during
the first half of fiscal 2006 and continues to expect to repurchase a
total of approximately $400 million to $450 million of its stock
during fiscal 2006.
Conference Call
he Company will host a conference call to discuss its results at
11:00 a.m. Eastern Daylight Time on April 26, 2006. Participating in
the conference call will be: R. David Yost, Chief Executive Officer;
Kurt J. Hilzinger, President and Chief Operating Officer; and Michael
D. DiCandilo, Executive Vice President and Chief Financial Officer.
o access the live conference call via telephone:
Dial in: 612-288-0318, no access code required.
To access the live webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.
A replay of the telephone call and webcast will be available from 2:30
p.m. April 26, 2006 until 11:59 p.m. May 3, 2006. The Webcast replay
will be available for 30 days.
To access the replay via telephone:
Dial in: (800) 475-6701 from within the U.S., access code: 825083
(320) 365-3844 from outside the U.S., access code: 825083
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is one of the world's largest
pharmaceutical services companies serving the United States, Canada
and selected global markets. 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 13,000 people.
AmerisourceBergen is ranked #27 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); further declines in the amounts of market share
rebates offered by pharmaceutical manufacturers to the PharMerica
long-term care business and/or the inability of the business to offset
the rebate reductions that have already occurred, market interest
rates; operational or control issues arising from AmerisourceBergen's
outsourcing of information technology activities; the Pharmaceutical
Distribution segment's ability to continue to successfully 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 and other foreign exchange rates;
economic, business, competitive and/or regulatory developments in
Canada, the United Kingdom and elsewhere outside of the United States;
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 2005.
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.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Three Three
Months Ended % of Months Ended % of
March 31, Operating March 31, Operating %
2006 Revenue 2005 Revenue Change
------------ --------- ------------ --------- -----
Revenue:
Operating
revenue $14,049,175 100.00% $12,241,739 100.00% 15%
Bulk deliveries
to customer
warehouses 1,171,504 948,428 24%
------------ ------------
Total revenue 15,220,679 13,190,167 15%
Cost of goods sold 14,659,916 12,688,417 16%
------------ ------------
Gross profit 560,763 3.99% 501,750 4.10% 12%
Operating
expenses:
Distribution,
selling and
administrative 339,113 2.41% 295,246 2.41% 15%
Depreciation and
amortization 20,149 0.14% 20,152 0.16% 0%
Facility
consolidations,
employee
severance, and
other 3,577 0.03% 1,837 0.02% 95%
Impairment charge - 0.00% 5,259 0.04% N/A
------------ ------------
Operating income 197,924 1.41% 179,256 1.46% 10%
Other (income) (5,826) -0.04% (383) 0.00% N/A
Interest expense,
net 7,344 0.05% 14,519 0.12% -49%
------------ ------------
Income from
continuing
operations before
income taxes 196,406 1.40% 165,120 1.35% 19%
Income taxes 67,816 0.48% 63,407 0.52% 7%
------------ ------------
Income from
continuing
operations 128,590 0.92% 101,713 0.83% 26%
(Income) loss from
discontinued
operations, net
of tax (411) 2,291
------------ ------------
Net income $129,001 0.92% $99,422 0.81% 30%
============ ============
Earnings per share:
Basic
Continuing
operations $0.62 $0.46 35%
Discontinued
operations - (0.01)
------------ ------------
Net income $0.62 $0.45 38%
============ ============
Diluted
Continuing
operations $0.61 $0.46 33%
Discontinued
operations - (0.01)
------------ ------------
Net income $0.61 $0.45 36%
============ ============
Weighted average
common shares
outstanding:
Basic 208,050 219,290
Diluted 210,771 220,468
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Six Six
Months Ended % of Months Ended % of
March 31, Operating March 31, Operating %
2006 Revenue 2005 Revenue Change
------------ --------- ------------ --------- -----
Revenue:
Operating
revenue $27,585,029 100.00% $24,443,848 100.00% 13%
Bulk deliveries
to customer
warehouses 2,288,797 2,383,155 -4%
------------ ------------
Total revenue 29,873,826 26,827,003 11%
Cost of goods sold 28,784,685 25,870,661 11%
------------ ------------
Gross profit 1,089,141 3.95% 956,342 3.91% 14%
Operating expenses:
Distribution,
selling and
administrative 670,972 2.43% 590,071 2.41% 14%
Depreciation and
amortization 41,236 0.15% 40,701 0.17% 1%
Facility
consolidations,
employee
severance, and
other 12,404 0.04% 6,970 0.03% 78%
Impairment charge - 0.00% 5,259 0.02% N/A
------------ ------------
Operating income 364,529 1.32% 313,341 1.28% 16%
Other (income) (5,043) -0.02% (1,441) -0.01% N/A
Interest expense,
net 13,856 0.05% 36,597 0.15% -62%
Loss on early
retirement of debt - 1,015 0.00% N/A
------------ ------------
Income from
continuing
operations before
income taxes and
cumulative effect
of change in
accounting 355,716 1.29% 277,170 1.13% 28%
Income taxes 129,150 0.47% 106,434 0.44% 21%
------------ ------------
Income from
continuing
operations before
cumulative effect
of change in
accounting 226,566 0.82% 170,736 0.70% 33%
Loss from
discontinued
operations, net
of tax 298 10,196
Cumulative effect
of change in
accounting, net
of tax - 10,172
------------ ------------
Net income $226,268 0.82% $150,368 0.62% 50%
============ ============
Earnings per share:
Basic
Continuing
operations $1.09 $0.79 38%
Discontinued
operations - (0.05)
Cumulative
effect of
change in
accounting - (0.05)
Rounding - 0.01
------------ ------------
Net income $1.09 $0.70 56%
============ ============
Diluted
Continuing
operations $1.08 $0.78 38%
Discontinued
operations - (0.05)
Cumulative
effect of
change in
accounting - (0.05)
Rounding (0.01) 0.01
------------ ------------
Net income $1.07 $0.69 55%
============ ============
Weighted average
common shares
outstanding:
Basic 208,160 215,168
Diluted 210,570 221,864
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
March 31, September 30,
2006 2005
------------- -------------
Current assets:
Cash and cash equivalents $1,051,725 $966,553
Short-term investment securities
available-for-sale 783,945 349,130
Accounts receivable, net 2,990,279 2,640,646
Merchandise inventories 4,353,870 4,003,690
Prepaid expenses and other 25,294 27,673
------------- -------------
Total current assets 9,205,113 7,987,692
Property and equipment, net 524,341 514,758
Other long-term assets 3,052,114 2,878,724
------------- -------------
Total assets $12,781,568 $11,381,174
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,319,118 $5,292,253
Current portion of long-term debt 3,043 1,232
Other current liabilities 810,292 758,611
------------- -------------
Total current liabilities 7,132,453 6,052,096
Long-term debt, less current portion 1,077,533 951,479
Other long-term liabilities 104,990 97,242
Stockholders' equity 4,466,592 4,280,357
------------- -------------
Total liabilities and stockholders'
equity $12,781,568 $11,381,174
============= =============
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Six
Months Ended Months Ended
March 31, March 31,
2006 2005
------------ ------------
Operating Activities:
Net income $226,268 $150,368
Adjustments to reconcile net income to net
cash provided by operating activities 105,965 91,912
Changes in operating assets and
liabilities 370,405 950,726
------------ ------------
Net cash provided by operating activities 702,638 1,193,006
------------ ------------
Investing Activities:
Capital expenditures (60,149) (123,246)
Cost of acquired companies, net of cash
acquired (238,427) (588)
Proceeds from sale-leaseback transactions 28,143 20,732
Proceeds from sale of discontinued
operations - 3,560
Proceeds from sales of property and
equipment 6,012 -
Proceeds from sale of investment 3,769 -
Net purchases of short-term investment
securities available-for-sale (434,815) (299,745)
------------ ------------
Net cash used in investing activities (695,467) (399,287)
------------ ------------
Financing Activities:
Net debt borrowings (repayments) 124,916 (180,000)
Exercise of stock options 97,804 53,503
Cash dividends on common stock (10,464) (5,381)
Purchases of common stock (132,226) (675,348)
Deferred financing costs and other (2,029) (4,149)
------------ ------------
Net cash provided by (used in) financing
activities 78,001 (811,375)
------------ ------------
Increase (decrease) in cash and cash
equivalents 85,172 (17,656)
Cash and cash equivalents at beginning of
period 966,553 871,343
------------ ------------
Cash and cash equivalents at end of period $1,051,725 $853,687
============ ============
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended March 31,
------------------------------------
Operating Revenue 2006 2005 % Change
--------------------------------- ------------------------------------
Pharmaceutical Distribution $13,877,560 $12,068,776 15%
PharMerica 412,685 391,090 6%
Intersegment eliminations (241,070) (218,127) -11%
------------ ------------
Operating revenue $14,049,175 $12,241,739 15%
============ ============
Three Months Ended March 31,
------------------------------------
Operating Income 2006 2005 % Change
--------------------------------- ------------------------------------
Pharmaceutical Distribution $175,951 $154,381 14%
PharMerica 16,171 31,971 -49%
Facility consolidations, employee
severance, and other (3,577) (1,837) -95%
Gain on antitrust litigation
settlement 9,379 - N/A
Impairment charge - (5,259) N/A
------------ ------------
Operating income $197,924 $179,256 10%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.16% 3.21%
Operating expenses 1.89% 1.93%
Operating income 1.27% 1.28%
PharMerica
Gross profit 27.48% 29.25%
Operating expenses 23.56% 21.07%
Operating income 3.92% 8.17%
AmerisourceBergen Corporation
Gross profit 3.99% 4.10%
Operating expenses 2.58% 2.63%
Operating income 1.41% 1.46%
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Six Months Ended March 31,
------------------------------------
Operating Revenue 2006 2005 % Change
--------------------------------- ------------------------------------
Pharmaceutical Distribution $27,225,713 $24,110,544 13%
PharMerica 821,943 776,711 6%
Intersegment eliminations (462,627) (443,407) -4%
------------ ------------
Operating revenue $27,585,029 $24,443,848 13%
============ ============
Six Months Ended March 31,
------------------------------------
Operating Income 2006 2005 % Change
--------------------------------- ------------------------------------
Pharmaceutical Distribution $314,827 $251,252 25%
PharMerica 34,678 55,493 -38%
Facility consolidations, employee
severance, and other (12,404) (6,970) -78%
Gain on antitrust litigation
settlements 27,428 18,825 46%
Impairment charge - (5,259) N/A
------------ ------------
Operating income $364,529 $313,341 16%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.07% 2.97%
Operating expenses 1.91% 1.93%
Operating income 1.16% 1.04%
PharMerica
Gross profit 27.64% 28.47%
Operating expenses 23.42% 21.33%
Operating income 4.22% 7.14%
AmerisourceBergen Corporation
Gross profit 3.95% 3.91%
Operating expenses 2.63% 2.63%
Operating income 1.32% 1.28%
AMERISOURCEBERGEN CORPORATION
EARNINGS PER SHARE
(In thousands, except per share data)
(unaudited)
Basic earnings per share is computed on the basis of the weighted
average number of shares of common stock outstanding during the
periods presented. Diluted earnings per share is computed on the basis
of the weighted average number of shares of common stock outstanding
during the period plus the dilutive effect of stock options and
restricted stock. Additionally, the diluted earnings per share
calculations for the three and six months ended March 31, 2005
consider the convertible subordinated notes as if converted during the
periods that the notes were outstanding and, therefore, the effect of
interest expense related to those notes is added back to net income in
determining income from continuing operations available to common
stockholders for the periods that the notes were outstanding.
Three Months Ended Six Months Ended
March 31, March 31,
2006 2005 2006 2005
--------- --------- --------- ---------
Income from continuing
operations before cumulative
effect of change in
accounting $128,590 $101,713 $226,566 $170,736
Interest expense - convertible
subordinated notes, net of
income taxes - 28 - 2,539
--------- --------- --------- ---------
Income from continuing
operations available to
common stockholders $128,590 $101,741 $226,566 $173,275
========= ========= ========= =========
Weighted average common shares
outstanding - basic 208,050 219,290 208,160 215,168
Effect of dilutive securities:
Stock options and restricted
stock 2,721 954 2,410 900
Convertible subordinated
notes - 224 - 5,796
--------- --------- --------- ---------
Weighted average common shares
outstanding - diluted 210,771 220,468 210,570 221,864
========= ========= ========= =========
Earnings per share:
Basic
Continuing operations $0.62 $0.46 $1.09 $0.79
Discontinued operations - (0.01) - (0.05)
Cumulative effect of
change in accounting - - - (0.05)
Rounding - - - 0.01
--------- --------- --------- ---------
Net income $0.62 $0.45 $1.09 $0.70
========= ========= ========= =========
Diluted
Continuing operations $0.61 $0.46 $1.08 $0.78
Discontinued operations - (0.01) - (0.05)
Cumulative effect of
change in accounting - - - (0.05)
Rounding - - (0.01) 0.01
--------- --------- --------- ---------
Net income $0.61 $0.45 $1.07 $0.69
========= ========= ========= =========
SOURCE: AmerisourceBergen Corporation
AmerisourceBergen Corporation, Valley Forge
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com