Company Expects Diluted Earnings Per Share for Fiscal Year 2008 to
Range from $2.77 to $2.95
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Nov. 1,
2007--AmerisourceBergen Corporation (NYSE:ABC) today reported that in
its fiscal fourth quarter ended September 30, 2007, diluted earnings
per share from continuing operations were $0.63, which was negatively
impacted by a $0.10 write-down to market value of tetanus-diphtheria
vaccine inventory and positively impacted by a net $0.03 benefit from
special items.
The PharMerica Long-Term Care business, which the Company spun-off
on July 31, 2007, is included in the fourth quarter and fiscal year
2007 results from continuing operations, representing $0.01 and $0.08
of diluted earnings per share, respectively.
Fiscal Fourth Quarter Highlights
-- Operating revenue of $15.3 billion, up 4.5 percent.
-- Diluted earnings per share from continuing operations of
$0.63, a 3 percent increase.
-- $0.10 per diluted share write-down to market value of
tetanus-diphtheria vaccine inventory.
-- Net $0.03 per diluted share benefit from special items.
-- Cash flow from operations of $128 million.
-- $546 million of share repurchases.
Fiscal Year 2007 Highlights
-- Record operating revenue of $61.7 billion, up 9 percent.
-- Diluted earnings per share from continuing operations of
$2.63, up 16 percent.
-- Net $0.09 per diluted share benefit from special items.
-- Pharmaceutical Distribution Segment operating income increase
of 14 percent; operating margin of 1.20 percent, up 5 basis
points.
-- Cash flow from operations of $1.2 billion, above expectations.
-- $1.4 billion of share repurchases, above expectations.
-- Merchandise inventories were down 7 percent with a 9 percent
operating revenue increase.
"We delivered outstanding performance for the 2007 fiscal year,
exceeding the diluted earnings per share expectations we originally
announced for the fiscal year last November, despite the impact from
the write-down of tetanus-diphtheria vaccine inventory within the
specialty business in the fourth fiscal quarter," said R. David Yost,
AmerisourceBergen's President and Chief Executive Officer. "In the
fourth quarter and the fiscal year, performance of our traditional
drug distribution business was outstanding, driven by our ability to
leverage our contracts with branded manufacturers, drive generic
sales, and lower our expense ratios through our newly completed
distribution network. Although our specialty distribution business
faced some tough head winds in the anemia drug market and with the
tetanus-diphtheria vaccine write-down late in the fiscal year, its
market leading position and robust service offerings in the
distribution of specialty drugs to physicians delivered a 23 percent
increase in operating revenue and contributed to the overall success
of fiscal 2007. In addition, we generated more than double the cash we
originally forecasted for fiscal 2007 through our strong working
capital management, and we used our cash to make acquisitions and
repurchase $1.4 billion of our stock in the fiscal year. Our balance
sheet continues to be strong and our financial flexibility remains
significant."
"We expect those same attributes to allow us to continue to grow
in line with our long-term goals in fiscal 2008," he continued. "Our
annual long-term goal continues to be to grow diluted earnings per
share in the 15 percent range by growing operating revenue in line
with pharmaceutical market growth, expanding operating margins in the
Pharmaceutical Distribution Segment by single digit basis points, and
generating free cash flows approximating net income."
Consolidated Results
-- Consolidated operating income in the fiscal 2007 fourth
quarter decreased 7 percent to $181.0 million, due to a $28
million write-down to market value of tetanus-diphtheria
vaccine inventory in the Pharmaceutical Distribution Segment,
poor performance in the Other Segment, and higher than normal
bad debt expense. These negative impacts were partially offset
by the net positive impact of $7.6 million from "facility
consolidations, employee severance and other," which included
a gain of $10.4 million from a favorable decision by an
appeals court in an employment-related dispute with a former
Bergen Brunswig chief executive officer whose employment was
terminated long before the creation of AmerisourceBergen and
charges of $2.8 million primarily associated with the spin-off
of the Company's PharMerica Long-Term Care business. In the
prior year's fiscal fourth quarter, consolidated operating
income was negatively impacted by $7.8 million of "facility
consolidations, employee severance and other," offset by an
$8.9 million gain from the settlement of pharmaceutical
manufacturer antitrust litigation cases. Consolidated
operating income for fiscal year 2007 was $820.3 million, up
10 percent over the previous fiscal year.
-- The effective tax rate for the fourth quarter of fiscal 2007
was 35.6 percent, down from 37.6 percent in the previous
fiscal year's fourth quarter primarily due to the favorable
resolution of certain tax matters. The effective tax rate for
fiscal year 2007 was 37.1 percent. Going forward, the Company
expects the effective tax rate to be between 37 percent and 38
percent.
-- Diluted earnings per share from continuing operations were up
3 percent to $0.63 in the fourth quarter of fiscal 2007
compared to $0.61 in the previous fiscal year's fourth
quarter, and were up 16 percent to $2.63 in the fiscal 2007
from $2.26 in the previous fiscal year.
-- The PharMerica Long-Term Care business, which was spun-off in
July 2007, contributed diluted earnings per share of $0.01 and
$0.08 in the 2007 fiscal fourth quarter and year,
respectively, compared to $0.03 and $0.10 in the prior year's
fourth quarter and fiscal year.
-- Diluted average shares outstanding for the fourth quarter of
fiscal year 2007 were 176.9 million, down nearly 25 million
from the previous fiscal year's fourth quarter due to share
repurchases, net of option exercises. For fiscal year 2007,
diluted average shares outstanding were 187.9 million.
-- A $24.6 million loss, net of tax, from discontinued operations
in the fourth quarter of fiscal 2007 resulted from an adverse
decision in litigation related to the contingent earn-out
provisions within the acquisition agreement for our former
Bridge Medical business, which the Company sold in fiscal
2005.
AmerisourceBergen operates in two reportable segments:
Pharmaceutical Distribution (which includes the operations of
AmerisourceBergen Drug Corporation, Specialty Group, and Packaging
Group) and Other (which includes PharMerica Long-Term Care until July
31, 2007 and PMSI). Intersegment sales of $83.1 million in the fourth
quarter of fiscal 2007 from AmerisourceBergen Drug Corporation to
PharMerica Long-Term Care and PMSI, which are included in the
Pharmaceutical Distribution Segment operating revenue, are eliminated
for consolidated reporting purposes.
Pharmaceutical Distribution Segment Results
-- Operating revenue of $15.2 billion in the fourth quarter of
fiscal 2007 was up 5 percent compared to the same quarter in
the previous fiscal year. Revenue in the quarter increased 4
percent in the Drug Corporation and 7 percent in the Specialty
Group. Specialty Group revenue growth, which was 23 percent
for the year, was negatively impacted in the quarter, as
expected, by the anniversary of a large distribution contract
and a large new product introduction as well as the decline in
the anemia drug market. Segment operating revenue for fiscal
year 2007 was $60.9 billion up 9 percent from the prior fiscal
year.
-- Anemia drugs represented 5 percent of Segment revenues in the
fiscal year 2007 fourth quarter, reflecting a decrease of 26
percent compared with the previous year's fourth quarter and a
15 percent decrease sequentially from the third quarter of
fiscal 2007.
-- Segment operating income was down 4 percent in the fourth
quarter, but up 14 percent for fiscal year 2007 compared with
the previous year's fourth quarter and fiscal year. Very
strong performance by the Drug Corporation positively impacted
the fiscal 2007 fourth quarter due to excellent performance
under the Company's branded manufacturer contracts; strong
branded manufacturer price increases; an increase in sales in
PRxO(R)Generics, its proprietary generics program; and solid
operating leverage. This performance was offset by a $28
million write-down to market value of tetanus-diphtheria
vaccine inventory in the Specialty Group, and a $13 million
increase in bad debt expense over the previous year's fourth
quarter due primarily to a regional chain in the West.
Other Segment Results
-- The Company spun off the PharMerica Long-Term Care business on
July 31, 2007. In the fourth quarter of fiscal year 2007,
PharMerica contributed $104.3 million in revenue and $2.7
million of operating income, respectively, compared to $305.0
million and $8.5 million in the previous fiscal year's fourth
quarter. For fiscal year 2007 revenues were $1.0 billion and
operating income was $25.0 million.
-- In the fiscal 2007 fourth quarter, PMSI contributed $112.2
million in revenue and $4.1 million of operating income
compared to $117.4 million and $13.1 million, respectively, in
the previous fiscal year's fourth quarter. The decline in
operating income in the fiscal 2007 fourth quarter was due to
a significant increase in operating expenses including bad
debt expenses and costs related to the ongoing IT
infrastructure and customer-facing projects. For fiscal 2007,
revenue was $461.4 million and operating income was $28.2
million. PMSI's performance was below the Company's
expectations for the quarter and the fiscal year, and the
business is implementing an aggressive turnaround plan and
receiving greater AmerisourceBergen management focus in fiscal
year 2008.
Fiscal Year 2008 Expectations
"Looking ahead, we expect fiscal 2008 performance to meet or
exceed our long-term goals," said Yost. "Although this fiscal year's
December quarter is expected to be a difficult comparison due to the
strength of the same quarter in the prior year, we expect fiscal year
2008 diluted earnings per share to be in the range of $2.77 to $2.95.
This diluted earnings per share range represents an increase of about
13 percent to 20 percent over the $2.46 per share from continuing
operations for fiscal year 2007, which excludes the $0.09 benefit from
special items and the $0.08 contribution from PharMerica Long-Term
Care in fiscal year 2007.
"Including the acquisition in October of Bellco Health, key
assumptions supporting our diluted earnings per share expectations in
fiscal 2008 are: operating revenue growth of between 5 percent and 7
percent; operating margin expansion by single digit basis points in
the Pharmaceutical Distribution Segment; and free cash flow in the
range of $450 million to $525 million, which includes capital
expenditures in the $125 million range. Also, subject to the approval
of our Board of Director and market conditions, we expect to spend
$400 million to $500 million to repurchase our common shares in fiscal
2008."
Conference Call
The Company will host a conference call to discuss its results at
11:00 a.m. Eastern Standard Time on November 1, 2007. Participating in
the conference call will be: R. David Yost, President and Chief
Executive Officer and Michael D. DiCandilo, Executive Vice President
and Chief Financial Officer.
To access the live conference call via telephone:
----------------------------------------------------------------------
Dial in: 612-332-0342, 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. November 1, 2007 until 11:59 p.m. November 8, 2007. 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: 890077
(320) 365-3844 from outside the U.S., access code: 890077
To access the archived webcast:
----------------------------------------------------------------------
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.
About AmerisourceBergen
AmerisourceBergen 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 reimbursement and pharmaceutical consulting services. With more
than $66 billion in annual revenue, AmerisourceBergen is headquartered
in Valley Forge, PA, and employs more than 11,500 people.
AmerisourceBergen is ranked #29 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. 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 (including
increased government regulation of the pharmaceutical supply channel);
government enforcement initiatives (including (i) the imposition of
increased obligations upon pharmaceutical distributors to detect and
prevent suspicious orders of controlled substances (ii) the
commencement of further administrative actions by the U. S. Drug
Enforcement Administration seeking to suspend or revoke the license of
any of the Company's distribution facilities to distribute controlled
substances, or (iii) the commencement of any enforcement actions by
any U.S. Attorney alleging violation of laws and regulations regarding
diversion of controlled substances and suspicious order monitoring);
changes in U.S. government policies (including reimbursement changes
arising from federal legislation, including the Medicare Modernization
Act and the Deficit Reduction Act of 2005); changes in regulatory or
clinical medical guidelines and/or reimbursement practices for the
pharmaceuticals we distribute, including erythropoiesis-stimulating
agents (ESAs) used to treat anemia patients; price inflation in
branded pharmaceuticals and price deflation in generics; the inability
of the Company to successfully complete any transaction that the
Company may wish to pursue from time to time; fluctuations in market
interest rates; operational or control issues arising from the
Company's outsourcing of information technology activities; 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; changes in tax
legislation or adverse resolution of challenges to our tax positions;
and other economic, business, competitive, legal, tax, regulatory
and/or operational factors affecting the business of the Company
generally. Certain additional factors that management believes could
cause actual outcomes and results to differ materially from those
described in forward-looking statements are set forth (i) in Item 1A
(Risk Factors) in the Company's Annual Report on Form 10-K for the
fiscal year ended September 30, 2006 and elsewhere in that report and
(ii) in other reports filed by the Company pursuant to the Securities
Exchange Act of 1934.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Three Three
Months Ended % of Months Ended % of
Sept. 30, Operating Sept. 30, Operating %
2007 Revenue 2006 Revenue Change
------------ --------- ------------ --------- ------
Revenue:
Operating
revenue $15,297,123 100.00% $14,641,631 100.00% 4%
Bulk deliveries
to customer
warehouses 1,093,327 1,001,373 9%
------------ ------------
Total revenue 16,390,450 15,643,004 5%
Cost of goods
sold 15,862,020 15,057,509 5%
------------ ------------
Gross profit 528,430 3.45% 585,495 4.00% -10%
Operating
expenses:
Distribution,
selling and
administrative 332,898 2.18% 359,611 2.46% -7%
Depreciation and
amortization 22,094 0.14% 22,746 0.16% -3%
Facility
consolidations,
employee
severance, and
other (7,582) -0.05% 7,805 0.05% N/M
------------ ------------
Operating income 181,020 1.18% 195,333 1.33% -7%
Other (income)
loss (954) -0.01% 569 - N/M
Interest expense,
net 7,931 0.05% (808) -0.01% N/M
------------ ------------
Income from
continuing
operations
before income
taxes 174,043 1.14% 195,572 1.34% -11%
Income taxes 61,866 0.40% 73,594 0.50% -16%
------------ ------------
Income from
continuing
operations 112,177 0.73% 121,978 0.83% -8%
Loss from
discontinued
operations, net
of tax 24,601 -
------------ ------------
Net income $ 87,576 0.57% $ 121,978 0.83% -28%
============ ============
Earnings per
share:
Basic
Continuing
operations $ 0.64 $ 0.61 5%
Discontinued
operations (0.14) -
------------ ------------
Net income $ 0.50 $ 0.61 -18%
============ ============
Diluted
Continuing
operations $ 0.63 $ 0.61 3%
Discontinued
operations (0.14) -
Rounding 0.01 -
------------ ------------
Net income $ 0.50 $ 0.61 -18%
============ ============
Weighted average
common shares
outstanding:
Basic 174,467 198,936
Diluted 176,902 201,357
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Fiscal Fiscal
Year Ended % of Year Ended % of
Sept. 30, Operating Sept. 30, Operating %
2007 Revenue 2006 Revenue Change
----------- --------- ----------- --------- ------
Revenue:
Operating
revenue $61,669,032 100.00% $56,672,940 100.00% 9%
Bulk deliveries
to customer
warehouses 4,405,280 4,530,205 -3%
----------- -----------
Total revenue 66,074,312 61,203,145 8%
Cost of goods sold 63,747,573 58,971,330 8%
----------- -----------
Gross profit 2,326,739 3.77% 2,231,815 3.94% 4%
Operating expenses:
Distribution,
selling and
administrative 1,413,103 2.29% 1,376,977 2.43% 3%
Depreciation and
amortization 91,222 0.15% 86,009 0.15% 6%
Facility
consolidations,
employee
severance, and
other 2,072 - 20,123 0.04% -90%
----------- -----------
Operating income 820,342 1.33% 748,706 1.32% 10%
Other loss (income) 3,004 - (4,387) -0.01% N/M
Interest expense,
net 32,288 0.05% 12,464 0.02% 159%
----------- -----------
Income from
continuing
operations before
income taxes 785,050 1.27% 740,629 1.31% 6%
Income taxes 291,282 0.47% 272,617 0.48% 7%
----------- -----------
Income from
continuing
operations 493,768 0.80% 468,012 0.83% 6%
Loss from
discontinued
operations, net of
tax 24,601 298
----------- -----------
Net income $469,167 0.76% $467,714 0.83% 0%
=========== ===========
Earnings per share:
Basic
Continuing
operations $2.67 $2.28 17%
Discontinued
operations (0.13) -
Rounding (0.01) -
----------- -----------
Net income $2.53 $2.28 11%
=========== ===========
Diluted
Continuing
operations $2.63 $2.26 16%
Discontinued
operations (0.13) -
Rounding - (0.01)
----------- -----------
Net income $2.50 $2.25 11%
=========== ===========
Weighted average
common shares
outstanding:
Basic 185,181 205,009
Diluted 187,886 207,446
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
September 30, September 30,
2007 2006
------------- -------------
Current assets:
Cash and cash equivalents $ 640,204 $ 1,261,268
Short-term investment
securities available-for-
sale 467,419 67,840
Accounts receivable, net 3,468,199 3,427,139
Merchandise inventories 4,101,502 4,422,055
Prepaid expenses and other 32,817 32,105
------------- -------------
Total current assets 8,710,141 9,210,407
Property and equipment, net 506,984 509,746
Other long-term assets 3,088,780 3,063,767
------------- -------------
Total assets $12,305,905 $12,783,920
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,988,782 $ 6,499,264
Current portion of long-term
debt 476 1,560
Other current liabilities 863,619 958,364
------------- -------------
Total current liabilities 7,852,877 7,459,188
Long-term debt, less current
portion 1,227,298 1,093,931
Other long-term liabilities 126,010 89,644
Stockholders' equity 3,099,720 4,141,157
------------- -------------
Total liabilities and
stockholders' equity $12,305,905 $12,783,920
============= =============
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Fiscal Fiscal
Year Ended Year Ended
September 30, September 30,
2007 2006
------------- --------------
Operating Activities:
Net income $ 469,167 $ 467,714
Adjustments to reconcile net income to
net cash provided by operating
activities 220,961 221,430
Changes in operating assets and
liabilities 517,776 118,121
------------- --------------
Net cash provided by operating activities 1,207,904 807,265
------------- --------------
Investing Activities:
Capital expenditures (118,051) (113,132)
Cost of acquired companies, net of cash
acquired (170,089) (296,224)
Proceeds from sales of property and
equipment 8,077 49,639
Proceeds from sale-leaseback
transactions - 28,143
Proceeds from sales of other assets 5,205 7,582
Net short-term investment activity (399,579) 281,290
------------- --------------
Net cash used in investing activities (674,437) (42,702)
------------- --------------
Financing Activities:
Net borrowings 101,753 134,888
Proceeds from PharMerica Long-Term Care
distribution 125,000 -
Deferred financing costs and other (2,649) (2,941)
Purchases of common stock (1,434,385) (717,714)
Exercises of stock options 94,620 138,046
Cash dividends on common stock (37,248) (20,595)
Purchases of common stock for employee
stock purchase plan (1,622) (1,532)
------------- --------------
Net cash used in financing activities (1,154,531) (469,848)
------------- --------------
(Decrease) increase in cash and cash
equivalents (621,064) 294,715
Cash and cash equivalents at beginning of
year 1,261,268 966,553
------------- --------------
Cash and cash equivalents at end of year $ 640,204 $1,261,268
============= ==============
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
-----------------------------------
Operating Revenue 2007 2006 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $15,163,660 $14,448,215 5%
Other
PharMerica Long-Term Care 104,277 304,973 -66%
PMSI 112,237 117,366 -4%
------------ ------------
Total Other 216,514 422,339 -49%
------------ ------------
Intersegment eliminations (83,051) (228,923) -64%
------------ ------------
Operating revenue $15,297,123 $14,641,631 4%
============ ============
Three Months Ended September 30,
-----------------------------------
Operating Income 2007 2006 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $ 166,335 $ 172,657 -4%
Other
PharMerica Long-Term Care 2,720 8,456 -68%
PMSI 4,108 13,128 -69%
------------ ------------
Total Other 6,828 21,584 -68%
------------ ------------
Facility consolidations, employee
severance, and other 7,582 (7,805) N/M
Gain on antitrust litigation
settlements 275 8,897 -97%
------------ ------------
Operating income $ 181,020 $ 195,333 -7%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.10% 3.16%
Operating expenses 2.01% 1.97%
Operating income 1.10% 1.20%
Other
PharMerica Long-Term Care
Gross profit 29.49% 30.32%
Operating expenses 26.88% 27.55%
Operating income 2.61% 2.77%
PMSI
Gross profit 23.78% 22.94%
Operating expenses 20.12% 11.76%
Operating income 3.66% 11.19%
Total Other
Gross profit 26.53% 28.27%
Operating expenses 23.38% 23.16%
Operating income 3.15% 5.11%
AmerisourceBergen Corporation
Gross profit 3.45% 4.00%
Operating expenses 2.27% 2.66%
Operating income 1.18% 1.33%
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Fiscal Year Ended September 30,
-----------------------------------
Operating Revenue 2007 2006 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $60,935,344 $55,907,552 9%
Other
PharMerica Long-Term Care 1,045,662 1,211,548 -14%
PMSI 461,370 456,760 1%
------------ ------------
Total Other 1,507,032 1,668,308 -10%
------------ ------------
Intersegment eliminations (773,344) (902,920) -14%
------------ ------------
Operating revenue $61,669,032 $56,672,940 9%
============ ============
Fiscal Year Ended September 30,
-----------------------------------
Operating Income 2007 2006 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $ 733,388 $ 644,202 14%
Other
PharMerica Long-Term Care 24,996 32,325 -23%
PMSI 28,193 51,420 -45%
------------ ------------
Total Other 53,189 83,745 -36%
------------ ------------
Facility consolidations, employee
severance, and other (2,072) (20,123) -90%
Gain on antitrust litigation
settlements 35,837 40,882 -12%
------------ ------------
Operating income $ 820,342 $ 748,706 10%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.08% 3.08%
Operating expenses 1.88% 1.93%
Operating income 1.20% 1.15%
Other
PharMerica Long-Term Care
Gross profit 29.37% 29.47%
Operating expenses 26.98% 26.81%
Operating income 2.39% 2.67%
PMSI
Gross profit 23.34% 24.13%
Operating expenses 17.23% 12.87%
Operating income 6.11% 11.26%
Total Other
Gross profit 27.53% 28.01%
Operating expenses 24.00% 22.99%
Operating income 3.53% 5.02%
AmerisourceBergen Corporation
Gross profit 3.77% 3.94%
Operating expenses 2.44% 2.62%
Operating income 1.33% 1.32%
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 periods presented plus the dilutive effect of
stock options and restricted stock.
Three Months Ended Fiscal Year Ended
September 30, September 30,
2007 2006 2007 2006
--------- -------- --------- ---------
Income from continuing
operations $112,177 $121,978 $493,768 $468,012
========= ======== ========= =========
Weighted average common shares
outstanding - basic 174,467 198,936 185,181 205,009
Effect of dilutive securities -
stock options and restricted
stock 2,435 2,421 2,705 2,437
--------- -------- --------- ---------
Weighted average common shares
outstanding - diluted 176,902 201,357 187,886 207,446
========= ======== ========= =========
Earnings per share:
Basic
Continuing operations $ 0.64 $ 0.61 $ 2.67 $ 2.28
Discontinued operations (0.14) - (0.13) -
Rounding - - (0.01) -
--------- -------- --------- ---------
Net income $ 0.50 $ 0.61 $ 2.53 $ 2.28
========= ======== ========= =========
Diluted
Continuing operations $ 0.63 $ 0.61 $ 2.63 $ 2.26
Discontinued operations (0.14) - (0.13) -
Rounding 0.01 - - (0.01)
--------- -------- --------- ---------
Net income $ 0.50 $ 0.61 $ 2.50 $ 2.25
========= ======== ========= =========
CONTACT: AmerisourceBergen Corporation
Michael N. Kilpatric
610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation