VALLEY FORGE, Pa.--(BUSINESS WIRE)--Apr. 25, 2013--
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its
fiscal year 2013 second quarter, ended March 31, 2013, diluted earnings
per share from continuing operations were $0.87, a 4 percent increase.
Revenue in the quarter was $20.5 billion, up 4 percent. The Company also
reaffirmed its expectations for fiscal year 2013 adjusted diluted
earnings per share from continuing operations in the range of $3.04 to
$3.14, though likely in the lower half of the range. All the results are
presented in accordance with U.S. generally accepted accounting
principles (GAAP).
Fiscal Second Quarter Highlights
-
Revenue of $20.5 billion, up 4.1 percent.
-
Diluted earnings per share from continuing operations of $0.87, a 3.6
percent increase.
-
Gross profit of $717.0 million, up 5.5 percent.
-
Cash flow from operations of $985.4 million.
Fiscal First Six Months Highlights
-
Revenue of $41.6 billion, up 4.8 percent.
-
Diluted earnings per share from continuing operations of $1.61, up
11.0 percent.
-
Gross profit of $1.4 billion, up 10.0 percent.
-
Cash flow from operations of $743.7 million.
-
Share repurchases of $284.7 million.
“We are off to a solid start in the first half of our fiscal year,” said
Steven H. Collis, AmerisourceBergen President and Chief Executive
Officer. “In addition, during the quarter, we took several steps to
enhance the long-term growth prospects for AmerisourceBergen, including
the announcement of agreements of sale for AndersonBrecon and our
Canadian distribution business, and most significantly, a new strategic
long-term relationship with Walgreen Co. and Alliance Boots GmbH. We are
very excited about the opportunities that lie ahead for our core
businesses, and the prospects for new business development we see on a
global basis. Over the next few quarters, our drug wholesale business
will significantly expand as we start servicing all the pharmaceutical
products for the largest U.S. drug store chain. Moreover, our global
partnership provides an unprecedented platform to innovate by leveraging
on each company’s respective strengths to unlock value in the
pharmaceutical supply chain to the benefit of all our stakeholders.”
Summary of Quarterly Results
-
Revenue: Revenue was $20.5 billion in the
second quarter of fiscal 2013, a 4.1 percent increase over the same
quarter in the previous fiscal year, driven by a 3.9 percent increase
in AmerisourceBergen Drug Corporation (ABDC) revenue, a 3.9 percent
increase in AmerisourceBergen Specialty Group (ABSG) revenue, and a
46.9 percent increase in our manufacturer services businesses,
reported in Other.
-
Gross Profit: Gross profit in the fiscal
2013 second quarter was $717.0 million, a 5.5 percent increase over
the year-ago same period driven primarily by contributions from the
recent addition of World Courier, which was offset in part by a
decline in gross profit in ABDC and ABSG. Gross profit as a percentage
of revenue was 3.49 percent, a 4 basis point improvement over the same
period in the previous year.
-
Operating Expenses: For the second
quarter of fiscal 2013, operating expenses were $366.9 million
compared with $302.7 million in the prior fiscal year’s second
quarter, a 21.2 percent increase. The increase in operating expenses
was primarily due to the operating expenses of World Courier, which
were not in the prior year quarter, and increased depreciation and
amortization costs. Compared to the prior year, operating expenses as
a percentage of revenue in the fiscal second quarter of 2013 were up
25 basis points to 1.79 percent.
-
Operating Income: In the fiscal 2013
second quarter, operating income decreased 7.1 percent to $350.1
million, due to the increase in operating expenses which was offset in
part by the increase in gross profit. Operating income as a percentage
of revenue decreased 20 basis points to 1.71 percent in the period
compared with the previous year’s second quarter.
-
Tax Rate: The effective tax rate for the
second quarter of fiscal 2013 was 38.3 percent, compared to 38.1
percent in the previous fiscal year’s second quarter. Going forward,
we expect our annualized effective tax rate to be approximately 38.2
percent.
-
Earnings Per Share: Diluted earnings per
share from continuing operations were up 3.6 percent to $0.87 in the
second quarter of fiscal 2013 compared to $0.84 in the previous fiscal
year’s second quarter. Diluted earnings per share growth was driven by
the 10.6 percent reduction in diluted average shares outstanding.
-
Shares Outstanding: Diluted average
shares outstanding for the second quarter of fiscal year 2013 were
234.6 million, down 27.8 million shares from the previous fiscal
year’s second quarter due primarily to share repurchases, net of
option exercises over the last twelve months.
Segment Discussion
The Pharmaceutical Distribution segment includes both AmerisourceBergen
Drug Corporation and AmerisourceBergen Specialty Group. Other includes
AmerisourceBergen Consulting Services (ABCS) and World Courier. The
results of operations of AndersonBrecon and AmerisourceBergen Canada
Corporation as well as the estimated loss on sale of AmerisourceBergen
Canada Corporation, are reported as discontinued operations.
Pharmaceutical Distribution Segment
In the second fiscal quarter of 2013, Pharmaceutical Distribution
revenues were $20.1 billion, an increase of 3 percent compared to the
same quarter in the prior year. ABDC revenues increased 4 percent, due
primarily to an increase in sales volume resulting from the October 2012
implementation of the large PBM customer contract, offset in part by the
loss of a food and drug retail group purchasing organization customer.
ABSG revenues increased 4 percent, which was driven by strong
performance in our third party logistics, blood products, vaccine, and
physician office distribution businesses. Intrasegment revenues between
ABDC and ABSG have been eliminated in the presentation of total
Pharmaceutical Distribution revenue. Total intrasegment revenues were
$764.3 million and $660.1 million in the quarters ended March 31, 2013
and 2012, respectively.
Operating income of $328.6 million in the March quarter of fiscal 2013
decreased 9 percent compared to the same period in the previous year
driven by a 23 basis point decline in operating margin due to a shift in
customer mix towards lower margin business in both ABDC and ABSG,
disappointing performance in our oncology business, and fewer new
generic launches to offset those impacts.
Other
Revenues included in Other were $435.4 million in the second quarter of
fiscal 2013, including significant contributions from World Courier,
which was not included in the same quarter in the previous year. Gross
profit and operating expenses also increased significantly compared to
the prior year quarter due to the inclusion of operating results from
World Courier. Operating income increased 5 percent to $25.0 million in
the second quarter of fiscal 2013, due to contributions from World
Courier offset by a decline in operating income in ABCS.
Fiscal Year 2013 Expectations
“Looking ahead, the Company expects adjusted diluted earnings per share
from continuing operations in fiscal year 2013 to be in the lower half
of the range of $3.04 to $3.14, excluding certain expenses related to
our new strategic long-term relationship with Walgreens and Alliance
Boots, including the warrants issued, and the expected LIFO charge from
onboarding of additional branded inventory.” said Steven H. Collis,
AmerisourceBergen President and Chief Executive Officer. “Excluding the
two items mentioned above, we now expect revenue growth in the 11
percent to 13 percent range; operating income decline in the 3 percent
to 5 percent range; an operating margin decline in the range of 24 to 29
basis points; and free cash flow in the range of $100 million to $200
million, which includes capital expenditures of at least $220 million.
Subject to market conditions, we continue to expect to spend
approximately $400 million to repurchase our common shares in fiscal
year 2013.”
Adjusted Fiscal Year 2012 Financial Results
As a result of the pending sale of AmerisourceBergen Canada Corporation
and the classifying of its operating results as discontinued operations,
the Company will retroactively adjust its financial results for fiscal
year 2012. Total consolidated revenues for AmerisourceBergen in fiscal
2012 will be adjusted to $78.1 billion, consolidated operating income
will be adjusted to $1.3 billion, and GAAP diluted earnings per share
from continuing operations will be adjusted to $2.96. We expect to
provide further details, including adjusted quarterly consolidated
results via a Form 8-K filing shortly after we file our Form 10-Q for
the quarter ended March 31, 2013.
Conference Call
The Company will host a conference call to discuss its results at 11:00
a.m. Eastern Standard Time on April 25, 2013. Participating in the
conference call will be: Steven H. Collis, President and Chief Executive
Officer; and Tim G. Guttman, Senior Vice President and Chief Financial
Officer.
To access the live conference call via telephone:
Dial in: The dial-in number for the live call will be 612-332-0107. No
access code is needed.
To access the live webcast:
Go to 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 25, 2013 until 11:59 p.m.May 2, 2013. The Webcast replay
will be available for 30 days.
To access the telephone replay from within the US, dial 800-475-6701.
From outside the US, dial 320-365-3844. The access code for the replay
is 288282.
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at http://www.amerisourcebergen.com.
Upcoming Conferences
AmerisourceBergen management will be attending the Bank of America
Healthcare Conference in Las Vegas, NV on May 14, 2013, the UBS
Healthcare conference in New York, NY on May 20, 2013, and the Goldman
Sachs Healthcare Conference in Rancho Palos Verde, CA on June 12, 2013.
About AmerisourceBergen
AmerisourceBergen is one of the world's largest pharmaceutical services
companies serving the United States, Canada and selected global markets.
Servicing both healthcare providers and pharmaceutical manufacturers 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 niche
premium logistics and pharmaceutical packaging to reimbursement and
pharmaceutical consulting services. With over $80 billion in annualized
revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and
employs approximately 13,000 people. AmerisourceBergen is ranked #29 on
the Fortune 500 list. For more information, go to www.amerisourcebergen.com.
Cautionary Note Regarding Forward-Looking
Statements
Certain of the statements contained in this press release are
"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. Words such as “expect,” “likely,” “outlook,” “forecast,” “would,”
“could,” “should,” “can,” “will,” “project,” “intend,” “plan,”
“continue,” “sustain,” “synergy”, “on track,” “believe,” “seek,”
“estimate,” “anticipate,” “may,” ”possible,” “assume,” variations of
such words and similar expressions are intended to identify such
forward-looking statements. These statements are based on management's
current expectations and are subject to uncertainty and change in
circumstances. These statements are not guarantees of future
performance, are based on assumptions that could prove incorrect or
could cause actual results to vary materially from those indicated.
Among the factors that could cause actual results to differ materially
from those projected, anticipated or implied are the following: changes
in pharmaceutical market growth rates; the loss of one or more key
customer or supplier relationships; changes in customer mix; customer
delinquencies, defaults or insolvencies; supplier defaults or
insolvencies; changes in pharmaceutical manufacturers' pricing and
distribution policies or practices; adverse resolution of any contract
or other dispute with customers or suppliers; federal and state
government enforcement initiatives to detect and prevent suspicious
orders of controlled substances and the diversion of controlled
substances; qui tam litigation for alleged violations of fraud
and abuse laws and regulations and/or any other laws and regulations
governing the marketing, sale, purchase, and/or dispensing of
pharmaceutical products or services and any related litigation,
including shareholder derivative lawsuits; changes in federal and state
legislation or regulatory action affecting pharmaceutical product
pricing or reimbursement policies, including under Medicaid and
Medicare; changes in regulatory or clinical medical guidelines and/or
labeling for the pharmaceutical products we distribute, including
certain anemia products; price inflation in branded pharmaceuticals and
price deflation in generics; greater or less than anticipated benefit
from launches of the generic versions of previously patented
pharmaceutical products; significant breakdown or interruption of our
information technology systems; our inability to realize the anticipated
benefits of the implementation of an enterprise resource planning (ERP)
system; interest rate and foreign currency exchange rate fluctuations;
risks associated with international business operations, including
non-compliance with the U.S. Foreign Corrupt Practices Act, anti-bribery
laws and economic sanctions and import laws and regulations; economic,
business, competitive and/or regulatory developments outside of the
United States; risks associated with the strategic, long-term
relationship among Walgreen Co., Alliance Boots GmbH, and
AmerisourceBergen, including the failure to obtain the required U.S. and
foreign antitrust regulatory approvals for the equity investments by
Walgreens and Alliance Boots in AmerisourceBergen, the occurrence of any
event, change or other circumstance that could give rise to the
termination, cross-termination or modification of any of the transaction
documents among the parties (including, among others, the distribution
agreement or the generics agreement), an impact on our earnings per
share resulting from the issuance of the warrants, an inability to
realize anticipated benefits (including benefits resulting from
participation in the Walgreens Boots Alliance Development GmbH joint
venture), the disruption of AmerisourceBergen’s cash flow and ability to
return value to its stockholders in accordance with its past practices,
disruption of or changes in vendor, payer and customer relationships and
terms, and the reduction of AmerisourceBergen’s operational, strategic
or financial flexibility; the acquisition of businesses that do not
perform as we expect or that are difficult for us to integrate or
control; our inability to successfully complete any other transaction
that we may wish to pursue from time to time; changes in tax laws or
legislative initiatives that could adversely affect our tax positions
and/or our tax liabilities or adverse resolution of challenges to our
tax positions; increased costs of maintaining, or reductions in our
ability to maintain, adequate liquidity and financing sources;
volatility and deterioration of the capital and credit markets; and
other economic, business, competitive, legal, tax, regulatory and/or
operational factors affecting our business 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, 2012 and
elsewhere in that report and (ii) in other reports filed by the Company
pursuant to the Securities Exchange Act of 1934. You are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date they are made. Except to the extent required by law,
AmerisourceBergen does not undertake, and expressly disclaims, any duty
or obligation to publicly update any forward-looking statement after the
date of this report, whether as a result of new information, future
events, changes in assumptions or otherwise.
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
|
Three
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
March 31,
|
|
% of
|
|
March 31,
|
|
% of
|
|
%
|
|
|
2013
|
|
Revenue
|
|
2012
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$20,523,668
|
|
|
100.00
|
%
|
|
$19,708,371
|
|
|
100.00
|
%
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
19,806,679
|
|
|
|
|
19,028,630
|
|
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1)
|
|
716,989
|
|
|
3.49
|
%
|
|
679,741
|
|
|
3.45
|
%
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
323,536
|
|
|
1.58
|
%
|
|
262,421
|
|
|
1.33
|
%
|
|
23.3
|
%
|
Depreciation and amortization
|
|
39,868
|
|
|
0.19
|
%
|
|
31,233
|
|
|
0.16
|
%
|
|
27.6
|
%
|
Warrants (2)
|
|
3,761
|
|
|
0.02
|
%
|
|
-
|
|
|
-
|
%
|
|
|
Employee severance, litigation and other, net (3)
|
|
(299
|
)
|
|
-
|
%
|
|
9,027
|
|
|
0.05
|
%
|
|
|
Total operating expenses
|
|
366,866
|
|
|
1.79
|
%
|
|
302,681
|
|
|
1.54
|
%
|
|
21.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
350,123
|
|
|
1.71
|
%
|
|
377,060
|
|
|
1.91
|
%
|
|
-7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other loss (income)
|
|
749
|
|
|
-
|
%
|
|
(131
|
)
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
18,510
|
|
|
0.09
|
%
|
|
23,375
|
|
|
0.12
|
%
|
|
-20.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
330,864
|
|
|
1.61
|
%
|
|
353,816
|
|
|
1.80
|
%
|
|
-6.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
126,721
|
|
|
0.62
|
%
|
|
134,673
|
|
|
0.68
|
%
|
|
-5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
204,143
|
|
|
0.99
|
%
|
|
219,143
|
|
|
1.11
|
%
|
|
-6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
(158,509
|
)
|
|
|
|
(7,038
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$45,634
|
|
|
0.22
|
%
|
|
$212,105
|
|
|
1.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$0.89
|
|
|
|
|
$0.85
|
|
|
|
|
4.7
|
%
|
Discontinued operations
|
|
(0.69
|
)
|
|
|
|
(0.03
|
)
|
|
|
|
|
Total
|
|
$0.20
|
|
|
|
|
$0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$0.87
|
|
|
|
|
$0.84
|
|
|
|
|
3.6
|
%
|
Discontinued operations
|
|
(0.68
|
)
|
|
|
|
(0.03
|
)
|
|
|
|
|
Total
|
|
$0.19
|
|
|
|
|
$0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
230,422
|
|
|
|
|
258,162
|
|
|
|
|
|
Diluted (4)
|
|
234,587
|
|
|
|
|
262,363
|
|
|
|
|
-10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $3.5 million gain from antitrust litigation settlements
in the three months ended March 31, 2013.
|
(2)
|
|
Expense related to common stock warrants issued to Walgreens and
Alliance Boots in connection with the March 19, 2013 announced
agreements and arrangements.
|
(3)
|
|
Includes the net reversal of $(4.5) million of employee severance
and other restructuring costs and $4.2 million of deal-related
transaction costs in the three months ended March 31, 2013.
Includes $6.1 million of employee severance costs and $2.9 million
of deal-related transaction costs in the three months ended March
31, 2012.
|
(4)
|
|
Includes the dilutive effect of stock options, restricted stock,
and restricted stock units.
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
|
|
|
|
Six
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
March 31,
|
|
% of
|
|
March 31,
|
|
% of
|
|
%
|
|
|
2013
|
|
Revenue
|
|
2012
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$41,583,479
|
|
|
100.00
|
%
|
|
$39,689,556
|
|
|
100.00
|
%
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
40,205,662
|
|
|
|
|
38,436,553
|
|
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1)
|
|
1,377,817
|
|
|
3.31
|
%
|
|
1,253,003
|
|
|
3.16
|
%
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
644,236
|
|
|
1.55
|
%
|
|
519,606
|
|
|
1.31
|
%
|
|
24.0
|
%
|
Depreciation and amortization
|
|
78,552
|
|
|
0.19
|
%
|
|
60,348
|
|
|
0.15
|
%
|
|
30.2
|
%
|
Warrants (2)
|
|
3,761
|
|
|
0.01
|
%
|
|
-
|
|
|
-
|
%
|
|
|
Employee severance, litigation and other (3)
|
|
1,705
|
|
|
-
|
%
|
|
12,586
|
|
|
0.03
|
%
|
|
|
Total operating expenses
|
|
728,254
|
|
|
1.75
|
%
|
|
592,540
|
|
|
1.49
|
%
|
|
22.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
649,563
|
|
|
1.56
|
%
|
|
660,463
|
|
|
1.66
|
%
|
|
-1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other loss (income)
|
|
726
|
|
|
-
|
%
|
|
(132
|
)
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
37,035
|
|
|
0.09
|
%
|
|
45,661
|
|
|
0.12
|
%
|
|
-18.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
611,802
|
|
|
1.47
|
%
|
|
614,934
|
|
|
1.55
|
%
|
|
-0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
233,038
|
|
|
0.56
|
%
|
|
234,199
|
|
|
0.59
|
%
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
378,764
|
|
|
0.91
|
%
|
|
380,735
|
|
|
0.96
|
%
|
|
-0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
(164,519
|
)
|
|
|
|
(6,514
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$214,245
|
|
|
0.52
|
%
|
|
$374,221
|
|
|
0.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$1.64
|
|
|
|
|
$1.47
|
|
|
|
|
11.6
|
%
|
Discontinued operations
|
|
(0.71
|
)
|
|
|
|
(0.03
|
)
|
|
|
|
|
Rounding
|
|
-
|
|
|
|
|
0.01
|
|
|
|
|
|
Total
|
|
$0.93
|
|
|
|
|
$1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$1.61
|
|
|
|
|
$1.45
|
|
|
|
|
11.0
|
%
|
Discontinued operations
|
|
(0.70
|
)
|
|
|
|
(0.02
|
)
|
|
|
|
|
Rounding
|
|
-
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
Total
|
|
$0.91
|
|
|
|
|
$1.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
231,409
|
|
|
|
|
258,316
|
|
|
|
|
|
Diluted (4)
|
|
235,307
|
|
|
|
|
262,729
|
|
|
|
|
-10.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $15.8 million gain from antitrust litigation
settlements in the six months ended March 31, 2013.
|
(2)
|
|
Expense related to common stock warrants issued to Walgreens and
Alliance Boots in connection with the March 19, 2013 announced
agreements and arrangements.
|
(3)
|
|
Includes $4.7 million of deal-related transaction costs and the
net reversal of $(3.0) million of employee severance and other
restructuring costs in the six months ended March 31, 2013.
Includes $6.1 million of employee severance costs and $6.5 million
of deal-related transaction costs in the six months ended March
31, 2012.
|
(4)
|
|
Includes the dilutive effect of stock options, restricted stock,
and restricted stock units.
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
March 31,
|
|
September 30,
|
|
|
2013
|
|
2012
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$1,347,297
|
|
$1,066,608
|
Accounts receivable, net
|
|
4,180,449
|
|
3,784,620
|
Merchandise inventories
|
|
5,662,556
|
|
5,472,010
|
Prepaid expenses and other
|
|
72,707
|
|
72,374
|
Assets held for sale
|
|
461,775
|
|
662,851
|
Total current assets
|
|
11,724,784
|
|
11,058,463
|
|
|
|
|
|
Property and equipment, net
|
|
762,237
|
|
743,685
|
Other long-term assets
|
|
3,624,410
|
|
3,640,108
|
|
|
|
|
|
Total assets
|
|
$16,111,431
|
|
$15,442,256
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$10,362,227
|
|
$9,492,589
|
Other current liabilities
|
|
1,468,186
|
|
1,533,290
|
Liabilities held for sale
|
|
212,238
|
|
239,707
|
Total current liabilities
|
|
12,042,651
|
|
11,265,586
|
|
|
|
|
|
Long-term debt
|
|
1,396,272
|
|
1,395,931
|
|
|
|
|
|
Other long-term liabilities
|
|
326,228
|
|
325,897
|
|
|
|
|
|
Stockholders' equity
|
|
2,346,280
|
|
2,454,842
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$16,111,431
|
|
$15,442,256
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Six
|
|
Six
|
|
|
Months Ended
|
|
Months Ended
|
|
|
March 31,
|
|
March 31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
Net income
|
|
$214,245
|
|
|
$374,221
|
|
Loss from discontinued operations
|
|
164,519
|
|
|
6,514
|
|
Income from continuing operations
|
|
378,764
|
|
|
380,735
|
|
Adjustments to reconcile income from continuing operations to net
cash provided by operating activities
|
|
141,401
|
|
|
119,324
|
|
Changes in operating assets and liabilities
|
|
178,059
|
|
|
242,318
|
|
Net cash provided by operating activities - continuing operations
|
|
698,224
|
|
|
742,377
|
|
Net cash provided by (used in) operating activities - discontinued
operations
|
|
45,431
|
|
|
(74,253
|
)
|
Net cash provided by operating activities
|
|
743,655
|
|
|
668,124
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(88,377
|
)
|
|
(63,481
|
)
|
Cost of acquired companies, net of cash acquired
|
|
-
|
|
|
(257,658
|
)
|
Other
|
|
81
|
|
|
-
|
|
Net cash used in investing activities - continuing operations
|
|
(88,296
|
)
|
|
(321,139
|
)
|
Net cash used in investing activities - discontinued operations
|
|
(9,643
|
)
|
|
(24,717
|
)
|
Net cash used in investing activities
|
|
(97,939
|
)
|
|
(345,856
|
)
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
Net borrowings
|
|
-
|
|
|
444,290
|
|
Purchases of common stock
|
|
(284,691
|
)
|
|
(328,504
|
)
|
Exercises of stock options
|
|
65,850
|
|
|
71,084
|
|
Cash dividends on common stock
|
|
(98,203
|
)
|
|
(67,429
|
)
|
Debt issuance costs and other
|
|
(6,086
|
)
|
|
(10,523
|
)
|
Net cash (used in) provided by financing activities - continuing
operations
|
|
(323,130
|
)
|
|
108,918
|
|
Net cash (used in) provided by financing activities - discontinued
operations
|
|
(41,897
|
)
|
|
69,918
|
|
Net cash (used in) provided by financing activities
|
|
(365,027
|
)
|
|
178,836
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
280,689
|
|
|
501,104
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
1,066,608
|
|
|
1,825,990
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$1,347,297
|
|
|
$2,327,094
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Revenue
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$20,133,717
|
|
|
$19,454,919
|
|
|
3
|
%
|
Other (1)
|
|
435,384
|
|
|
296,401
|
|
|
47
|
%
|
Intersegment eliminations
|
|
(45,433
|
)
|
|
(42,949
|
)
|
|
6
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$20,523,668
|
|
|
$19,708,371
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Operating Income
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$328,635
|
|
|
$362,363
|
|
|
-9
|
%
|
Other (1)
|
|
24,950
|
|
|
23,724
|
|
|
5
|
%
|
Warrants
|
|
(3,761
|
)
|
|
-
|
|
|
N/M
|
|
Employee severance, litigation and other
|
|
299
|
|
|
(9,027
|
)
|
|
N/M
|
|
|
|
|
|
|
|
|
Operating income
|
|
$350,123
|
|
|
$377,060
|
|
|
-7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
2.98
|
%
|
|
3.24
|
%
|
|
|
Operating expenses
|
|
1.35
|
%
|
|
1.38
|
%
|
|
|
Operating income
|
|
1.63
|
%
|
|
1.86
|
%
|
|
|
|
|
|
|
|
|
|
Other (1)
|
|
|
|
|
|
|
Gross profit
|
|
26.87
|
%
|
|
16.77
|
%
|
|
|
Operating expenses
|
|
21.14
|
%
|
|
8.77
|
%
|
|
|
Operating income
|
|
5.73
|
%
|
|
8.00
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation
|
|
|
|
|
|
|
Gross profit
|
|
3.49
|
%
|
|
3.45
|
%
|
|
|
Operating expenses
|
|
1.79
|
%
|
|
1.54
|
%
|
|
|
Operating income
|
|
1.71
|
%
|
|
1.91
|
%
|
|
|
|
|
|
|
|
|
|
(1) Other for the three months ended March 31, 2013 is comprised of
the AmerisourceBergen Consulting Services ("ABCS") operating segment
and the World Courier Group, Inc. operating segment. Other for the
three months ended March 31, 2012 is comprised solely of the ABCS
operating segment.
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
Revenue
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$40,809,925
|
|
|
$39,258,232
|
|
|
4
|
%
|
Other (1)
|
|
863,274
|
|
|
505,726
|
|
|
71
|
%
|
Intersegment eliminations
|
|
(89,720
|
)
|
|
(74,402
|
)
|
|
21
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$41,583,479
|
|
|
$39,689,556
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
Operating Income
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$609,520
|
|
|
$639,719
|
|
|
-5
|
%
|
Other (1)
|
|
45,509
|
|
|
33,330
|
|
|
37
|
%
|
Warrants
|
|
(3,761
|
)
|
|
-
|
|
|
N/M
|
|
Employee severance, litigation and other
|
|
(1,705
|
)
|
|
(12,586
|
)
|
|
N/M
|
|
|
|
|
|
|
|
|
Operating income
|
|
$649,563
|
|
|
$660,463
|
|
|
-2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
2.81
|
%
|
|
2.99
|
%
|
|
|
Operating expenses
|
|
1.32
|
%
|
|
1.36
|
%
|
|
|
Operating income
|
|
1.49
|
%
|
|
1.63
|
%
|
|
|
|
|
|
|
|
|
|
Other (1)
|
|
|
|
|
|
|
Gross profit
|
|
26.71
|
%
|
|
16.01
|
%
|
|
|
Operating expenses
|
|
21.44
|
%
|
|
9.42
|
%
|
|
|
Operating income
|
|
5.27
|
%
|
|
6.59
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation
|
|
|
|
|
|
|
Gross profit
|
|
3.31
|
%
|
|
3.16
|
%
|
|
|
Operating expenses
|
|
1.75
|
%
|
|
1.49
|
%
|
|
|
Operating income
|
|
1.56
|
%
|
|
1.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other for the six months ended March 31, 2013 is comprised of
the AmerisourceBergen Consulting Services ("ABCS") operating segment
and the World Courier Group, Inc. operating segment. Other for the
six months ended March 31, 2012 is comprised solely of the ABCS
operating segment.
|
|
Source: AmerisourceBergen Corporation
AmerisourceBergen Corporation
Barbara Brungess, 610-727-7199
bbrungess@amerisourcebergen.com