Company Terminates PMSI Sale Process
VALLEY FORGE, Pa.--(BUSINESS WIRE)--April 23,
2008--AmerisourceBergen Corporation (NYSE:ABC) today reported that in
its fiscal year 2008 second quarter ended March 31, 2008, diluted
earnings per share were a record $0.82, up 21 percent, and total
revenue increased 8 percent to $17.8 billion, also a record.
AmerisourceBergen also announced that it has terminated the sale
process for PMSI, its market-leading workers' compensation business,
and is turning its attention to profit improvement initiatives to
increase PMSI's performance. In discontinuing the sale process, the
Company said that the final bids did not reflect the fair value of the
business.
Fiscal Second Quarter Highlights
-- Record total revenue of $17.8 billion, up 8 percent.
-- Record diluted earnings per share of $0.82, a 21 percent
increase.
-- Pharmaceutical Distribution operating margin (based on total
revenue) of 1.34 percent, up 9 basis points.
-- Cash flow from operations of $193 million.
Fiscal First Six Months Highlights
-- Record total revenue of $35.2 billion, up 6 percent.
-- Record diluted earnings per share of $1.48, a 14 percent
increase.
-- Pharmaceutical Distribution operating margin (based on total
revenue) of 1.23 percent, up 2 basis points.
-- Cash flow from operations of $92 million.
-- $395 million in share repurchases.
"Our record-setting March quarter results were driven by
outstanding performance in our core distribution businesses due to
excellent revenue growth, solid expense management, strong price
appreciation and increased generic contributions," said R. David Yost,
AmerisourceBergen's President and Chief Executive Officer. "This
record performance was achieved despite the weaker performance in our
Other Segment. Our working capital management remains excellent, and
our balance sheet continues to be strong."
Commenting on the terminated sale process for PMSI, Yost said,
"Because the final bids did not reflect the turnaround value of the
business, which we expect to capture, we will focus on significantly
improving the business and delivering that value to shareholders. We
expect PMSI to improve in the second half of this fiscal year and
deliver significant improvement in fiscal year 2009. In the future, we
believe this business can be a strong, long-term contributor to
shareholder value as part of AmerisourceBergen."
Consolidated Results
-- The Company will now report revenue expectations and calculate
gross, expense and operating margins based on total revenue
instead of operating revenue. Due to a recently completed new
contract with an existing large institutional customer, a
majority of that customer's bulk delivery business is now
being serviced on an operating basis. As a result, the
remaining annualized bulk revenue of approximately $1.8
billion is not significant relative to total revenue. The
Company will continue to break out both bulk deliveries and
operating revenue in its financial tables.
-- Total revenue was $17.8 billion in the second quarter of
fiscal 2008 compared to $16.5 billion for the same period last
year, an 8 percent increase. The increase was driven by a 9
percent increase in the Pharmaceutical Distribution Segment,
which was slightly offset by a decrease in total revenue in
the Other Segment.
-- Consolidated operating income in the fiscal 2008 second
quarter increased 7 percent to $236.7 million from $220.9
million in the previous fiscal year's second quarter, due to
the 16 percent increase in operating income in the
Pharmaceutical Distribution Segment, which was partially
offset by a decline in the Other Segment. Special charges,
primarily for the expense of the PMSI sale process, in the
fiscal year 2008's second quarter had a $1.4 million negative
impact on consolidated operating income. In the previous
fiscal year's second quarter, special items had a net positive
impact of $1.6 million.
-- The effective tax rate for the second quarter of fiscal 2008
was 38.9 percent, compared to 38.5 percent in the previous
fiscal year's second quarter. The Company expects its
annualized effective tax rate to be slightly above 38 percent
for fiscal year 2008.
-- Diluted earnings per share were up 21 percent to $0.82 in the
second quarter of fiscal 2008 compared to $0.68 in the
previous fiscal year's second quarter.
-- In the fiscal 2007 second quarter, the PharMerica Long-Term
Care business, spun-off in July 2007, benefited that quarter
by $0.03 per diluted share. Excluding the impact of Long-Term
Care in fiscal 2007, AmerisourceBergen's diluted earnings per
share in the second quarter of fiscal year 2008 would have
increased 26 percent.
-- Average diluted shares outstanding for the second quarter of
fiscal year 2008 were 163.3 million, down nearly 29 million
shares from the previous fiscal year's second quarter due to
share repurchases, net of option exercises.
-- In the first six months of fiscal 2008, total revenue was
$35.2 billion, a 6 percent increase over the $33.2 billion in
total revenue in the previous fiscal year's first six months,
and consolidated operating income was $431.7 million and
$429.8 million in the first six months of fiscal 2008 and
2007, respectively. For the first six months of fiscal 2008
diluted earnings per share were $1.48 compared to $1.30 for
the same period of the previous fiscal year, a 14 percent
increase. In the first six months of fiscal 2007, diluted
earnings per share were reduced by $0.03 due to the net impact
of special items. In the same six-month period, the PharMerica
Long-Term Care business added $0.06 to diluted earnings per
share.
AmerisourceBergen consists of the following two reportable
segments: Pharmaceutical Distribution (which includes the operations
of AmerisourceBergen Drug Corporation, Specialty Group, Packaging
Group and Bellco Health) and Other (which includes PharMerica
Long-Term Care, through July 31, 2007, and PMSI). Intersegment sales
of $14.9 million in the second quarter of fiscal 2008 from
AmerisourceBergen Drug Corporation to PMSI, which are included in the
Pharmaceutical Distribution Segment total revenue, are eliminated for
consolidated reporting purposes.
Pharmaceutical Distribution Segment Results
-- Total revenue of $17.8 billion in the second quarter of fiscal
2008 was up 9 percent compared to the same quarter in the
previous fiscal year, due to an 8 percent increase in
AmerisourceBergen Drug Corporation revenue, primarily from its
institutional customers, and a 3 percent contribution from
Bellco Health, which was acquired at the beginning of the
fiscal year. Specialty Group total revenue was essentially
flat, because of the expected impact from lower anemia drug
sales and lost sales from the acquisition of a large Specialty
Group customer by a competitor in November 2007.
-- Gross profit as a percentage of total revenue increased 5
basis points to 3.03 percent in the fiscal 2008 second quarter
over the same period in the previous year driven by strong
price appreciation in branded pharmaceuticals and increased
contribution from generic drugs. The LIFO charge in the fiscal
2008 second quarter was $9.6 million compared with a $1.6
million charge in the previous year's second quarter,
reflecting the branded price increases.
-- Operating expenses as a percentage of total revenue in the
fiscal second quarter of 2008 were 1.69 percent down 4 basis
points from the same period in the previous fiscal year, due
to lower operating expenses in Drug Corporation despite an 8
percent increase in revenue.
-- Operating income increased a robust 16 percent in the fiscal
2008 second quarter compared with the previous year's second
quarter due to excellent revenue growth, improved gross profit
and solid expense management. As a percentage of total
revenue, the operating margin in the fiscal 2008 second
quarter was 1.34 percent, a 9 basis point increase over the
same period in the previous fiscal year.
Other Segment Results
-- In the fiscal 2008 second quarter, PMSI contributed $105.4
million in revenue and $783,000 of operating income compared
to $114.6 million and $8.6 million, respectively, in the
previous fiscal year's second quarter. The decline in
operating income in the fiscal 2008 second quarter was due to
customer losses, reductions in reimbursement and a significant
increase in operating expenses related to ongoing information
technology infrastructure and customer-facing projects. In the
second quarter of 2007, the segment also included PharMerica
Long-Term Care, which contributed revenue of $316.8 million
and operating income of $6.8 million.
-- While the Company expects improvement in PMSI's performance in
the second half of fiscal 2008 and substantial improvement in
fiscal 2009, operating margins for PMSI are now expected to be
in the 2 percent to 3 percent range for fiscal year 2008, down
from the previous expectations of 5 percent to 6 percent.
Fiscal Year 2008 Expectations
"Though remaining within our original range, we are narrowing our
expectations for fiscal year 2008 diluted earnings per share to a
range of $2.77 to $2.87 from the previous range of $2.77 to $2.95, due
primarily to the expected weaker performance of PMSI, as well as the
impact from lower sales of anemia drugs in the Specialty Group and the
slowing growth of the overall pharmaceutical market," said Yost. "This
diluted earnings per share range represents an increase of about 13
percent to 17 percent over the $2.46 per share from continuing
operations for fiscal year 2007, which continues to exclude the $0.09
benefit from special items and the $0.08 contribution from PharMerica
Long-Term Care in fiscal year 2007.
"We are increasing our expectations for the repurchase of our
common shares in fiscal year 2008. In the first half of fiscal 2008,
we repurchased $395 million of our shares and now expect to use a
substantial amount of the $302 million remaining in our current share
repurchase authorization during the remainder of this fiscal year. As
a result, we anticipate exceeding our previous expectation of
repurchasing $400 million to $500 million of our shares in fiscal year
2008. We continue to expect free cash flow for fiscal year 2008 in the
range of $450 million to $525 million, which includes capital
expenditures in the $125 million range.
"Despite the change from operating revenue to total revenue
guidance, we are retaining our key revenue and margin assumptions
supporting our diluted earnings per share expectations in fiscal year
2008: Total revenue growth assumptions remain in the range of 7
percent to 9 percent, primarily due to the expected growth of our
largest institutional customers; and we continue to expect operating
margin expansion in the Pharmaceutical Distribution Segment will be in
the low single-digit basis points range."
Fiscal Year 2009 Preview
Looking ahead to fiscal year 2009, Yost commented, "We have yet to
start our detailed planning process for fiscal year 2009. However, in
light of recently reduced pharmaceutical market growth predictions, I
want to provide some perspective on our next fiscal year. If
pharmaceutical market growth is in the 2 percent to 3 percent range,
we see a clear path to low double-digit diluted earnings per share
growth in fiscal year 2009 through operating margin expansion and
strong cash generation. As in the past, we expect to announce our
diluted earnings per share expectations for fiscal year 2009 when we
release our fiscal 2008 results, currently scheduled for October 30,
2008."
Conference Call
The Company will host a conference call to discuss its results at
11:00 a.m. Eastern Time on April 23, 2008. 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) 332-0430, 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
1:00 p.m. April 23, 2008 until 11:59 p.m. April 30, 2008. 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: 917886
(320) 365-3844 from outside the U.S., access code: 917886
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 approximately 11,200 people.
AmerisourceBergen is ranked #28 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: changes in pharmaceutical market growth
rates; competitive pressures; the loss of one or more key customer or
supplier relationships; changes in customer mix; customer or 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, (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),
or (iv) the commencement of any administrative actions by the board of
pharmacy of any state seeking to suspend, revoke or otherwise restrict
the ability of any of the Company's distribution facilities or
businesses to distribute or dispense pharmaceuticals in such state;
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, reimbursement practices and/or labeling
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; 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; any disruption to or other
adverse effects upon the PMSI workers' compensation business caused by
the Company's decision to terminate its previously-announced sale
process for PMSI; further declines in PMSI's performance due to
further customer losses, reimbursement reductions and/or competitive
pressures; the inability of the Company to successfully undertake
profit improvement initiatives and other measures to improve PMSI's
performance; the inability of the Company to successfully complete any
other transaction that the Company may wish to pursue from time to
time; 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, 2007 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
March 31, Total March 31, Total %
2008 Revenue 2007 Revenue Change
------------ ------- ------------ ------- ------
Revenue:
Operating revenue $17,294,027 $15,283,761 13%
Bulk deliveries to
customer
warehouses 552,219 1,228,780 -55%
------------ ------------
Total revenue 17,846,246 100.00% 16,512,541 100.00% 8%
Cost of goods sold 17,287,493 15,906,098 9%
------------ ------------
Gross profit 558,753 3.13% 606,443 3.67% -8%
Operating expenses:
Distribution,
selling and
administrative 297,607 1.67% 363,367 2.20% -18%
Depreciation and
amortization 23,040 0.13% 22,049 0.13% 4%
Facility
consolidations,
employee severance
and other 1,384 0.01% 135 - N/M
------------ ------------
Operating income 236,722 1.33% 220,892 1.34% 7%
Other (income) loss (992) -0.01% 376 - N/M
Interest expense, net 18,726 0.10% 9,889 0.06% 89%
------------ ------------
Income before income
taxes 218,988 1.23% 210,627 1.28% 4%
Income taxes 85,136 0.48% 81,131 0.49% 5%
------------ ------------
Net income $133,852 0.75% $129,496 0.78% 3%
============ ============
Earnings per share:
Basic $0.83 $0.69 20%
Diluted $0.82 $0.68 21%
Weighted average
common shares
outstanding:
Basic 161,218 188,772
Diluted 163,268 191,797
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Six Six
Months Ended % of Months Ended % of
March 31, Total March 31, Total %
2008 Revenue 2007 Revenue Change
------------ ------- ------------ ------- ------
Revenue:
Operating revenue $33,533,454 $30,980,300 8%
Bulk deliveries to
customer
warehouses 1,685,707 2,257,634 -25%
------------ ------------
Total revenue 35,219,161 100.00% 33,237,934 100.00% 6%
Cost of goods sold 34,152,948 32,036,848 7%
------------ ------------
Gross profit 1,066,213 3.03% 1,201,086 3.61% -11%
Operating expenses:
Distribution,
selling and
administrative 587,547 1.67% 720,328 2.17% -18%
Depreciation and
amortization 45,393 0.13% 44,849 0.13% 1%
Facility
consolidations,
employee severance
and other 1,561 - 6,158 - N/M
------------ ------------
Operating income 431,712 1.23% 429,751 1.29% -
Other (income) loss (255) - 442 - N/M
Interest expense, net 35,150 0.10% 18,032 0.05% 95%
------------ ------------
Income before income
taxes 396,817 1.13% 411,277 1.24% -4%
Income taxes 153,145 0.43% 159,594 0.48% -4%
------------ ------------
Net income $243,672 0.69% $251,683 0.76% -3%
============ ============
Earnings per share:
Basic $1.49 $1.32 13%
Diluted $1.48 $1.30 14%
Weighted average
common shares
outstanding:
Basic 163,073 190,607
Diluted 165,176 193,409
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
March 31, September 30,
2008 2007
------------- -------------
Current assets:
Cash and cash equivalents $591,360 $640,204
Short-term investment securities
available-for-sale - 467,419
Accounts receivable, net 3,648,094 3,472,358
Merchandise inventories 4,528,110 4,101,502
Prepaid expenses and other 41,192 32,817
------------- -------------
Total current assets 8,808,756 8,714,300
Property and equipment, net 529,099 506,984
Other long-term assets 3,235,121 3,088,780
------------- -------------
Total assets $12,572,976 $12,310,064
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,396,677 $6,988,782
Current portion of long-term debt 1,616 476
Other current liabilities 836,672 867,778
------------- -------------
Total current liabilities 8,234,965 7,857,036
Long-term debt, less current portion 1,223,768 1,227,298
Other long-term liabilities 166,444 126,010
Stockholders' equity 2,947,799 3,099,720
------------- -------------
Total liabilities and stockholders'
equity $12,572,976 $12,310,064
============= =============
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Six
Months Ended Months Ended
March 31, March 31,
2008 2007
------------ ------------
Operating Activities:
Net income $243,672 $251,683
Adjustments to reconcile net income to
net cash provided by operating
activities 111,484 106,168
Changes in operating assets and
liabilities (262,873) 352,956
------------ ------------
Net cash provided by operating activities 92,283 710,807
------------ ------------
Investing Activities:
Capital expenditures (55,105) (57,397)
Cost of acquired companies, net of cash
acquired (162,207) (144,649)
Proceeds from sales of property and
equipment 228 4,103
Net short-term investment activity 467,419 (762,615)
------------ ------------
Net cash provided by (used in) investing
activities 250,335 (960,558)
------------ ------------
Financing Activities:
Net borrowings 7,077 107,802
Deferred financing costs and other (901) (2,841)
Purchases of common stock (395,175) (396,193)
Exercises of stock options 22,196 77,290
Cash dividends on common stock (24,659) (19,193)
------------ ------------
Net cash used in financing activities (391,462) (233,135)
------------ ------------
Decrease in cash and cash equivalents (48,844) (482,886)
Cash and cash equivalents at beginning of
period 640,204 1,261,268
------------ ------------
Cash and cash equivalents at end of period $591,360 $778,382
============ ============
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended March 31,
----------------------------------
Total Revenue 2008 2007 % Change
----------------------------------- ----------------------------------
Pharmaceutical Distribution $17,755,838 $16,312,828 9%
Other
PharMerica Long-Term Care - 316,760 N/M
PMSI 105,351 114,600 -8%
------------ ------------
Total Other 105,351 431,360 N/M
------------ ------------
Intersegment eliminations (14,943) (231,647) N/M
------------ ------------
Total revenue $17,846,246 $16,512,541 8%
============ ============
Three Months Ended March 31,
----------------------------------
Operating Income 2008 2007 % Change
----------------------------------- ----------------------------------
Pharmaceutical Distribution $237,323 $203,910 16%
Other
PharMerica Long-Term Care - 6,804 N/M
PMSI 783 8,560 -91%
------------ ------------
Total Other 783 15,364 N/M
------------ ------------
Facility consolidations, employee
severance and other (1,384) (135) N/M
Gain on antitrust litigation
settlements - 1,753 N/M
------------ ------------
Operating income $236,722 $220,892 7%
============ ============
Percentages of total revenue:
Pharmaceutical Distribution
Gross profit 3.03% 2.98%
Operating expenses 1.69% 1.73%
Operating income 1.34% 1.25%
Other
PharMerica Long-Term Care
Gross profit N/A 29.06%
Operating expenses N/A 26.92%
Operating income N/A 2.15%
PMSI
Gross profit 20.37% 22.68%
Operating expenses 19.63% 15.21%
Operating income 0.74% 7.47%
Total Other
Gross profit 20.37% 27.37%
Operating expenses 19.63% 23.81%
Operating income 0.74% 3.56%
AmerisourceBergen Corporation
Gross profit 3.13% 3.67%
Operating expenses 1.80% 2.33%
Operating income 1.33% 1.34%
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Six Months Ended March 31,
----------------------------------
Total Revenue 2008 2007 % Change
----------------------------------- ----------------------------------
Pharmaceutical Distribution $35,035,221 $32,834,805 7%
Other
PharMerica Long-Term Care - 634,715 N/M
PMSI 213,992 232,530 -8%
------------ ------------
Total Other 213,992 867,245 N/M
------------ ------------
Intersegment eliminations (30,052) (464,116) N/M
------------ ------------
Total revenue $35,219,161 $33,237,934 6%
============ ============
Six Months Ended March 31,
----------------------------------
Operating Income 2008 2007 % Change
----------------------------------- ----------------------------------
Pharmaceutical Distribution $429,341 $398,043 8%
Other
PharMerica Long-Term Care - 15,887 N/M
PMSI 2,347 18,336 -87%
------------ ------------
Total Other 2,347 34,223 N/M
------------ ------------
Facility consolidations, employee
severance and other (1,561) (6,158) N/M
Gain on antitrust litigation
settlements 1,585 3,643 -56%
------------ ------------
Operating income $431,712 $429,751 -
============ ============
Percentages of total revenue:
Pharmaceutical Distribution
Gross profit 2.91% 2.91%
Operating expenses 1.69% 1.70%
Operating income 1.23% 1.21%
Other
PharMerica Long-Term Care
Gross profit N/A 29.35%
Operating expenses N/A 26.85%
Operating income N/A 2.50%
PMSI
Gross profit 20.89% 23.47%
Operating expenses 19.80% 15.58%
Operating income 1.10% 7.89%
Total Other
Gross profit 20.89% 27.77%
Operating expenses 19.80% 23.83%
Operating income 1.10% 3.95%
AmerisourceBergen Corporation
Gross profit 3.03% 3.61%
Operating expenses 1.80% 2.32%
Operating income 1.23% 1.29%
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 Six Months Ended
March 31, March 31,
2008 2007 2008 2007
--------- -------- -------- --------
Net income $133,852 $129,496 $243,672 $251,683
========= ======== ======== ========
Weighted average common shares
outstanding - basic 161,218 188,772 163,073 190,607
Effect of dilutive securities -
stock options and restricted
stock 2,050 3,025 2,103 2,802
--------- -------- -------- --------
Weighted average common shares
outstanding - diluted 163,268 191,797 165,176 193,409
========= ======== ======== ========
Earnings per share:
Basic $0.83 $0.69 $1.49 $1.32
Diluted $0.82 $0.68 $1.48 $1.30
CONTACT: AmerisourceBergen Corporation
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation