Raises Expectations for Fiscal 2015 Adjusted Diluted EPS from
Continuing Operations to be in the range of $4.85 to $4.95
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Apr. 30, 2015--
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its
fiscal year 2015 second quarter ended March 31, 2015, adjusted diluted
earnings per share from continuing operations increased 36.8 percent to
$1.45. Revenue increased 14.8 percent to $32.7 billion in the quarter.
On the basis of U.S. generally accepted accounting principles (GAAP),
diluted loss per share from continuing operations was $2.33 for the
March quarter of fiscal 2015. In the tables that follow, we present our
GAAP results as well as GAAP to non-GAAP reconciliations.
The Company also announced that its Board of Directors has authorized a
new special $1 billion share repurchase program as part of the
Company’s previously announced warrant hedging strategy. The special
program will be used to mitigate the potentially dilutive effect on the
ownership interests of the Company’s then-existing stockholders that may
result from the issuance of common stock upon the exercise of the
warrants held by affiliates of Walgreens Boots Alliance.
Share repurchases under the special program are expected to take place
over an extended period of time, subject to market conditions. As
previously disclosed, the Company will exclude the impact of the share
repurchases under the special programs from its presentation of adjusted
diluted earnings per share from continuing operations until the warrants
are exercised or expire. The exclusion of the special share repurchases
prior to warrant exercise is consistent with the Company’s
exclusion of the accounting dilution resulting from the impact of the
warrants in the calculation of the Company’s adjusted diluted earnings
per share.
“We have had excellent results in the first half of fiscal 2015, with
tremendous financial performance and important progress made against our
strategic objectives,” said Steven H. Collis, AmerisourceBergen
President and Chief Executive Officer. “During the March quarter, we
completed the acquisition of MWI Veterinary Supply, and in April, we
extended our contract with our large pharmacy benefit management
customer for an additional year. The performance of our core businesses
has driven outstanding cash generation, and the strength of our
positions in key growing markets gives me great confidence that we will
continue to take advantage of the many opportunities that lie ahead in
the remainder of the fiscal year and beyond.”
The comments below compare adjusted results from continuing operations,
which exclude:
-
Warrant expense;
-
Gains on antitrust litigation settlements;
-
LIFO expense;
-
Acquisition related intangibles amortization; and
-
Employee severance, litigation, and other expenses.
In addition, we calculate our adjusted earnings per share for each
period using a diluted weighted average share count, which excludes the
accounting dilution resulting from the impact of the unexercised equity
warrants, and the impact from the shares repurchased under our special
share repurchase programs. We previously issued $600 million of 1.15%
senior notes due in May 2017 to fund our initial special share
repurchase program. The interest expense incurred relating to this
borrowing is also excluded from the non-GAAP presentation.
Summary of Adjusted Quarterly Results
-
Revenue: In the second quarter of fiscal
2015, revenue was $32.7 billion, up 14.8 percent compared to the same
quarter in the previous fiscal year, reflecting a 13 percent increase
in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 25 percent
increase in AmerisourceBergen Specialty Group (ABSG) revenue.
-
Gross Profit: Gross profit in the fiscal
2015 second quarter was $1.0 billion, a 25.3 percent increase over the
same period in the previous year, driven by strong revenue growth in
brand and generic pharmaceuticals in ABDC, strong revenue growth in
ABSG, and the addition of approximately one month of results from MWI.
Gross profit as a percentage of revenue increased 27 basis points to
3.19 percent.
-
Operating Expenses: In the second quarter
of fiscal 2015, operating expenses were $488.9 million, up 17.8
percent over the same period in the last fiscal year. The increase in
operating expenses in the quarter was driven by additional costs to
support the increase in revenue growth and the addition of MWI.
Operating expenses as a percentage of revenue in the fiscal 2015
second quarter were 1.50 percent compared with 1.46 percent for the
same period in the previous fiscal year.
-
Operating Income: In the fiscal 2015
second quarter, operating income of $552.7 million was up 32.7 percent
versus the prior year, as our gross profit growth exceeded our
operating expense growth. Operating income as a percentage of revenue
increased 23 basis points to 1.69 percent in the fiscal 2015 second
quarter compared to the previous year’s second quarter.
-
Tax Rate: The effective tax rate for the
second quarter of fiscal 2015 was 35.7 percent, down from 38.2 percent
in the previous fiscal year’s second quarter, as growth in our
international businesses, including our global manufacturer services
business in Switzerland, has changed the mix of our domestic and
foreign taxable income. We currently expect our annualized effective
tax rate to be between 36 and 37 percent for the full year.
-
Earnings Per Share: Diluted earnings per
share from continuing operations were up 36.8 percent to $1.45 in the
second quarter of fiscal year 2015 compared to $1.06 in the previous
fiscal year’s second quarter, driven by the increase in operating
income.
-
Shares Outstanding: Diluted weighted
average shares outstanding for the second quarter of fiscal year 2015
were 230.4 million, a 1.7 percent decrease versus the prior year as
share repurchases more than offset option exercises.
Segment Discussion
The Pharmaceutical Distribution segment includes both AmerisourceBergen
Drug Corporation and AmerisourceBergen Specialty Group. Other includes
AmerisourceBergen Consulting Services, World Courier, and MWI Veterinary
Supply.
Pharmaceutical Distribution Segment
In the second fiscal quarter of 2015, Pharmaceutical Distribution
revenues were $31.8 billion, an increase of 14 percent compared to the
same quarter in the prior year. ABDC revenues increased 13 percent, due
primarily to the onboarding of the new Walgreens generic pharmaceuticals
business, strong sales of products that treat hepatitis C, and solid
organic sales growth in our independent pharmacy, alternate site, and
health systems customers. ABSG revenues increased 25 percent, which was
driven by strong performance in our blood products, vaccine and
physician office distribution businesses, the impact of manufacturer
shifts of certain oncology products from full line distribution to
specialty distribution, strong performance in our third party logistics
business, and an increase in sales to community oncology practices.
Intrasegment revenues between ABDC and ABSG have been eliminated in the
presentation of total Pharmaceutical Distribution revenue. Total
intrasegment revenues were $1.6 billion and $1.0 billion in the quarters
ended March 31, 2015 and 2014, respectively.
Operating income of $488.6 million in the March quarter of fiscal 2015
increased 31 percent compared to the same period in the previous year
driven by the strong revenue growth in both ABDC and ABSG.
Other
Revenues in Other were $986.1 million in the second quarter of fiscal
2015, an increase of 72 percent over the same period in the prior year
due to the addition of approximately one month of revenues from MWI.
Operating income increased 47 percent to $64.2 million in the second
quarter of fiscal 2015, driven by the additional income from MWI.
Fiscal Year 2015 Expectations
Our updated expectations for financial performance in fiscal 2015,
including the impact of the MWI transaction, are as follows:
-
Adjusted diluted earnings per share from continuing operations in the
range of $4.85 to $4.95, a 22 percent to 25 percent increase over
fiscal 2014, and an increase over prior guidance of $4.53 to $4.63;
-
Revenue growth in the range of 12 percent to 13 percent;
-
Adjusted operating income growth in the 19 percent to 21 percent range;
-
Adjusted operating margin increase of 8 to 10 basis points;
-
Free cash flow generation in the range of $2.0 billion to $2.3 billion;
-
Capital expenditures in the $250 million range;
-
Regular share repurchases of approximately $200 million; and
-
Special share repurchases of approximately $600 million.
Conference Call
The Company will host a conference call to discuss the results at 11:00
a.m. Eastern Time on April 30, 2015.
Participating in the conference call will be:
|
Steven H. Collis, President & Chief Executive Officer
|
Tim G. Guttman, Executive Vice President & Chief Financial Officer
|
|
The dial-in number for the live call will be (612) 332-1210. No access
code is required. The live call will also be webcast via the Company’s
website at www.amerisourcebergen.com.
Users are encouraged to log on to the webcast approximately 10 minutes
in advance of the scheduled start time of the call.
Replays of the call will be made available via telephone and webcast. A
replay of the webcast will be posted on www.amerisourcebergen.com
approximately two hours after the completion of the call and will remain
available for thirty days. The telephone replay will also be available
approximately two hours after the completion of the call and will remain
available for seven 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 357616.
About AmerisourceBergen
AmerisourceBergen is one of the largest global pharmaceutical sourcing
and distribution services companies, helping both healthcare providers
and pharmaceutical and biotech manufacturers improve patient access to
products and enhance patient care. With services ranging from drug
distribution and niche premium logistics to reimbursement and
pharmaceutical consulting services, AmerisourceBergen delivers
innovative programs and solutions across the pharmaceutical supply
channel in human medicine and animal health. With over $120 billion in
annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA,
and employs approximately 16,000 people. AmerisourceBergen is ranked #28
on the Fortune 500 list. For more information, go to www.amerisourcebergen.com.
AmerisourceBergen's 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
and 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: competition;
industry consolidation of both customers and suppliers resulting in
increasing pressure to reduce prices for our products and services;
changes in pharmaceutical market growth rates; price inflation in
branded and generic pharmaceuticals and price deflation in generics;
declining economic conditions in the United States and abroad; financial
market volatility and disruption; substantial defaults in payment,
material reduction in purchases by or the loss, bankruptcy or insolvency
of a major customer; the loss, bankruptcy or insolvency of a major
supplier; changes to the customer or supplier mix; the retention of key
customer or supplier relationships under less favorable economics or the
adverse resolution of any contract or other dispute with customers or
suppliers; interest rate and foreign currency exchange rate
fluctuations; the disruption of AmerisourceBergen's cash flow and
ability to return value to its stockholders in accordance with its past
practices; risks associated with the strategic, long-term relationship
between Walgreen Boots Alliance, Inc. and AmerisourceBergen, including
with respect to the pharmaceutical distribution agreement and/or the
global sourcing joint venture; risks associated with the potential
impact on AmerisourceBergen's earnings per share resulting from the
issuance of the warrants to subsidiaries of Walgreen Boots Alliance,
Inc. (the "Warrants"); AmerisourceBergen's inability to implement its
hedging strategy to mitigate the potentially dilutive effect of the
issuance of its common stock in accordance with the Warrants under its
special share repurchase program due to its financial performance, the
current and future share price of its common stock, its expected cash
flows, competing priorities for capital, and overall market conditions;
changes in the United States healthcare and regulatory environment;
increasing governmental regulations regarding the pharmaceutical supply
channel; federal and state government enforcement initiatives to detect
and prevent suspicious orders of controlled substances and the diversion
of controlled substances; federal and state prosecution of alleged
violations of related laws and regulations, and any related litigation,
including shareholder derivative lawsuits or other disputes relating to
our distribution of controlled substances; increased federal scrutiny
and 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; material adverse resolution of
pending legal proceedings; declining reimbursement rates for
pharmaceuticals; the acquisition of businesses that do not perform as
expected, or that are difficult to integrate or control, including the
integration of recently-acquired MWI or ability to capture all of the
anticipated synergies related thereto; managing foreign expansion,
including non-compliance with the U.S. Foreign Corrupt Practices Act,
anti-bribery laws and economic sanctions and import laws and
regulations; malfunction, failure or breach of the sophisticated
information systems to operate as designed; risks generally associated
with data privacy regulation and the international transfer of personal
data; changes in tax laws or legislative initiatives that could
adversely affect AmerisourceBergen's tax positions and/or
AmerisourceBergen's tax liabilities or adverse resolution of challenges
to AmerisourceBergen's tax positions; natural disasters or other
unexpected events that affect AmerisourceBergen's operations; and other
economic, business, competitive, legal, tax, regulatory and/or
operational factors affecting AmerisourceBergen's 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)
and Item 1 (Business) in the Company’s Annual Report on Form 10-K for
the fiscal year ended September 30, 2014 and elsewhere in that report
and (ii) in other reports.
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
|
Three
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
March 31,
|
|
% of
|
|
March 31,
|
|
% of
|
|
%
|
|
|
2015
|
|
Revenue
|
|
2014
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$32,669,267
|
|
|
100.00
|
%
|
|
$28,455,903
|
|
|
100.00
|
%
|
|
14.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
31,757,291
|
|
|
|
|
27,726,310
|
|
|
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
911,976
|
|
|
2.79
|
%
|
|
729,593
|
|
|
2.56
|
%
|
|
25.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
442,443
|
|
|
1.35
|
%
|
|
376,341
|
|
|
1.32
|
%
|
|
17.6
|
%
|
Depreciation and amortization
|
|
56,205
|
|
|
0.17
|
%
|
|
44,494
|
|
|
0.16
|
%
|
|
26.3
|
%
|
Warrants
|
|
752,706
|
|
|
2.30
|
%
|
|
5,663
|
|
|
0.02
|
%
|
|
|
Employee severance, litigation and other
|
|
24,871
|
|
|
0.08
|
%
|
|
1,967
|
|
|
0.01
|
%
|
|
|
Total operating expenses
|
|
1,276,225
|
|
|
3.91
|
%
|
|
428,465
|
|
|
1.51
|
%
|
|
197.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
(364,249
|
)
|
|
-1.11
|
%
|
|
301,128
|
|
|
1.06
|
%
|
|
-221.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other loss (income) (2) |
|
11,405
|
|
|
0.03
|
%
|
|
(3,783
|
)
|
|
-0.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
22,946
|
|
|
0.07
|
%
|
|
19,474
|
|
|
0.07
|
%
|
|
17.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
(398,600
|
)
|
|
-1.22
|
%
|
|
285,437
|
|
|
1.00
|
%
|
|
-239.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
114,790
|
|
|
0.35
|
%
|
|
105,360
|
|
|
0.37
|
%
|
|
9.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
($513,390
|
)
|
|
-1.57
|
%
|
|
$180,077
|
|
|
0.63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
($2.33
|
)
|
|
|
|
$0.78
|
|
|
|
|
-398.7
|
%
|
Diluted
|
|
($2.33
|
)
|
|
|
|
$0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
220,243
|
|
|
|
|
229,409
|
|
|
|
|
|
Diluted (3) |
|
220,243
|
|
|
|
|
236,268
|
|
|
|
|
-6.8
|
%
|
|
|
|
(1)
|
|
Includes a $151.1 million LIFO expense charge and a $21.5 million
gain from antitrust litigation settlements in the three months
ended March 31, 2015. Includes a $102.8 million LIFO expense
charge and a $0.8 million gain from antitrust litigation
settlements in the three months ended March 31, 2014.
|
(2)
|
|
Includes a $7.8 million loss on the sale of a small technology
business.
|
(3)
|
|
Stock options, restricted stock, restricted stock units and the
Warrants issued to Walgreens Boots Alliance were
anti-dilutive for the three months ended March 31, 2015. The
dilutive effect of these items is included in the three months
ended March 31, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
|
|
|
|
Six
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
March 31,
|
|
% of
|
|
March 31,
|
|
% of
|
|
%
|
|
|
2015
|
|
Revenue
|
|
2014
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$66,257,869
|
|
|
100.00
|
%
|
|
$57,632,265
|
|
|
100.00
|
%
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
64,593,594
|
|
|
|
|
56,214,447
|
|
|
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
1,664,275
|
|
|
2.51
|
%
|
|
1,417,818
|
|
|
2.46
|
%
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
858,934
|
|
|
1.30
|
%
|
|
740,401
|
|
|
1.28
|
%
|
|
16.0
|
%
|
Depreciation and amortization
|
|
105,502
|
|
|
0.16
|
%
|
|
88,444
|
|
|
0.15
|
%
|
|
19.3
|
%
|
Warrants
|
|
1,124,111
|
|
|
1.70
|
%
|
|
121,960
|
|
|
0.21
|
%
|
|
821.7
|
%
|
Employee severance, litigation and other
|
|
28,374
|
|
|
0.04
|
%
|
|
6,269
|
|
|
0.01
|
%
|
|
352.6
|
%
|
Total operating expenses
|
|
2,116,921
|
|
|
3.19
|
%
|
|
957,074
|
|
|
1.66
|
%
|
|
121.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
(452,646
|
)
|
|
-0.68
|
%
|
|
460,744
|
|
|
0.80
|
%
|
|
-198.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other loss (income) (2) |
|
12,719
|
|
|
0.02
|
%
|
|
(4,380
|
)
|
|
-0.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
40,288
|
|
|
0.06
|
%
|
|
38,306
|
|
|
0.07
|
%
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
(505,653
|
)
|
|
-0.76
|
%
|
|
426,818
|
|
|
0.74
|
%
|
|
-218.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
207,684
|
|
|
0.31
|
%
|
|
197,810
|
|
|
0.34
|
%
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
(713,337
|
)
|
|
-1.08
|
%
|
|
229,008
|
|
|
0.40
|
%
|
|
-411.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
-
|
|
|
|
|
(7,546
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
($713,337
|
)
|
|
-1.08
|
%
|
|
$221,462
|
|
|
0.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
($3.24
|
)
|
|
|
|
$1.00
|
|
|
|
|
-424.0
|
%
|
Discontinued operations
|
|
-
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
Rounding
|
|
-
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
Total
|
|
($3.24
|
)
|
|
|
|
$0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
($3.24
|
)
|
|
|
|
$0.97
|
|
|
|
|
-434.0
|
%
|
Discontinued operations
|
|
-
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
Total
|
|
($3.24
|
)
|
|
|
|
$0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
219,854
|
|
|
|
|
229,852
|
|
|
|
|
|
Diluted (3) |
|
219,854
|
|
|
|
|
236,650
|
|
|
|
|
-7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $295.2 million LIFO expense charge and a $21.5 million
gain from antitrust litigation settlements in the six months ended
March 31, 2015. Includes a $160.4 million LIFO expense charge and
a $21.9 million gain from antitrust litigation settlements in the
six months ended March 31, 2014.
|
(2)
|
|
Includes a $7.8 million loss on the sale of a small technology
business.
|
(3)
|
|
Stock options, restricted stock, restricted stock units and the
Warrants issued to Walgreens Boots Alliance were
anti-dilutive for the six months ended March 31, 2015. The
dilutive effect of these items is included in the six months ended
March 31, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2015
|
|
|
|
Gross Profit
|
|
Operating Expenses
|
|
Operating (Loss) Income
|
|
Interest Expense, Net
|
|
(Loss) Income Before Income Taxes
|
|
Income Taxes
|
|
Net (Loss) Income
|
|
Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$911,976
|
|
|
$1,276,225
|
|
|
$(364,249
|
)
|
|
$22,946
|
|
|
$(398,600
|
)
|
|
$114,790
|
|
|
$(513,390
|
)
|
|
$(2.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense (1) |
|
-
|
|
|
(752,706
|
)
|
|
752,706
|
|
|
(2,160
|
)
|
|
754,866
|
|
|
7,157
|
|
|
747,709
|
|
|
3.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
(21,483
|
)
|
|
-
|
|
|
(21,483
|
)
|
|
-
|
|
|
(21,483
|
)
|
|
(8,328
|
)
|
|
(13,155
|
)
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
151,144
|
|
|
-
|
|
|
151,144
|
|
|
-
|
|
|
151,144
|
|
|
58,930
|
|
|
92,214
|
|
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related intangibles amortization
|
|
-
|
|
|
(9,736
|
)
|
|
9,736
|
|
|
-
|
|
|
10,008
|
|
|
3,892
|
|
|
6,116
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
-
|
|
|
(24,871
|
)
|
|
24,871
|
|
|
-
|
|
|
24,871
|
|
|
9,568
|
|
|
15,303
|
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
$1,041,637
|
|
|
$488,912
|
|
|
$552,725
|
|
|
$20,786
|
|
|
$520,806
|
|
|
$186,009
|
|
|
$334,797
|
|
|
$1.45
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP % changes vs. prior year quarter
|
25.3
|
%
|
|
17.8
|
%
|
|
32.7
|
%
|
|
6.7
|
%
|
|
29.9
|
%
|
|
21.5
|
%
|
|
35.1
|
%
|
|
36.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.79
|
%
|
|
3.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
3.91
|
%
|
|
1.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
-1.11
|
%
|
|
1.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amount of Warrant expense deductible for tax
purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants. In connection with the fiscal 2014 special $650
million share repurchase program, the Company issued $600 million of
1.15% senior notes due in May 2017. The interest expense incurred
relating to this borrowing has been excluded from the non-GAAP
presentation.
|
|
(2) The sum of the components may not equal the total due
to rounding.
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014
|
|
|
Gross Profit
|
|
Operating Expenses
|
|
Operating Income
|
|
Income Before Income Taxes
|
|
Income Taxes
|
|
Net Income
|
|
Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$729,593
|
|
|
$428,465
|
|
|
$301,128
|
|
|
$285,437
|
|
|
$105,360
|
|
|
$180,077
|
|
|
$0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense (1) |
|
-
|
|
|
(5,663
|
)
|
|
5,663
|
|
|
5,663
|
|
|
6,315
|
|
|
(652
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
(849
|
)
|
|
-
|
|
|
(849
|
)
|
|
(849
|
)
|
|
(361
|
)
|
|
(488
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
102,828
|
|
|
-
|
|
|
102,828
|
|
|
102,828
|
|
|
38,862
|
|
|
63,966
|
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related intangibles amortization
|
|
-
|
|
|
(5,825
|
)
|
|
5,825
|
|
|
5,825
|
|
|
2,207
|
|
|
3,618
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
-
|
|
|
(1,967
|
)
|
|
1,967
|
|
|
1,967
|
|
|
750
|
|
|
1,217
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
$831,572
|
|
|
$415,010
|
|
|
$416,562
|
|
|
$400,871
|
|
|
$153,133
|
|
|
$247,738
|
|
|
$1.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.56
|
%
|
|
2.92
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
1.51
|
%
|
|
1.46
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
1.06
|
%
|
|
1.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amount of Warrant expense deductible for tax
purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants.
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31, 2015
|
|
|
|
Gross Profit
|
|
Operating Expenses
|
|
Operating (Loss) Income
|
|
Interest Expense, Net
|
|
(Loss) Income Before Income Taxes
|
|
Income Taxes
|
|
(Loss) Income From Continuing Operations
|
|
Diluted Earnings Per Share From Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$1,664,275
|
|
|
$2,116,921
|
|
|
($452,646
|
)
|
|
$40,288
|
|
|
($505,653
|
)
|
|
$207,684
|
|
|
($713,337
|
)
|
|
$(3.24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense (1) |
|
-
|
|
|
(1,124,111
|
)
|
|
1,124,111
|
|
|
(4,300
|
)
|
|
1,128,411
|
|
|
14,297
|
|
|
1,114,114
|
|
|
4.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
(21,483
|
)
|
|
-
|
|
|
(21,483
|
)
|
|
-
|
|
|
(21,483
|
)
|
|
(8,328
|
)
|
|
(13,155
|
)
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
295,168
|
|
|
-
|
|
|
295,168
|
|
|
-
|
|
|
295,168
|
|
|
114,426
|
|
|
180,742
|
|
|
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related intangibles amortization
|
|
-
|
|
|
(14,768
|
)
|
|
14,768
|
|
|
-
|
|
|
15,338
|
|
|
5,946
|
|
|
9,392
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
-
|
|
|
(28,374
|
)
|
|
28,374
|
|
|
-
|
|
|
28,374
|
|
|
10,918
|
|
|
17,456
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
$1,937,960
|
|
|
$949,668
|
|
|
$988,292
|
|
|
$35,988
|
|
|
$940,155
|
|
|
$344,943
|
|
|
$595,212
|
|
|
$2.59
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP % changes vs. prior year period
|
|
24.5
|
%
|
|
16.2
|
%
|
|
33.7
|
%
|
|
-6.1
|
%
|
|
33.3
|
%
|
|
28.0
|
%
|
|
36.5
|
%
|
|
39.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.51
|
%
|
|
2.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
3.19
|
%
|
|
1.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
-0.68
|
%
|
|
1.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amount of Warrant expense deductible for income
tax purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants. In connection with the fiscal 2014 special $650
million share repurchase program, the Company issued $600 million of
1.15% senior notes due in May 2017. The interest expense incurred
relating to this borrowing has been excluded from the non-GAAP
presentation.
|
|
(2) The sum of the components may not equal the total due
to rounding.
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31, 2014
|
|
|
Gross Profit
|
|
Operating Expenses
|
|
Operating Income
|
|
Income Before Income Taxes
|
|
Income Taxes
|
|
Income From Continuing Operations
|
|
Diluted Earnings Per Share From Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$1,417,818
|
|
|
$957,074
|
|
|
$460,744
|
|
|
$426,818
|
|
|
$197,810
|
|
|
$229,008
|
|
|
$0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense (1) |
|
-
|
|
|
(121,960
|
)
|
|
121,960
|
|
|
121,960
|
|
|
12,630
|
|
|
109,330
|
|
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
(21,872
|
)
|
|
-
|
|
|
(21,872
|
)
|
|
(21,872
|
)
|
|
(8,243
|
)
|
|
(13,629
|
)
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
160,410
|
|
|
-
|
|
|
160,410
|
|
|
160,410
|
|
|
60,450
|
|
|
99,960
|
|
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related intangibles amortization
|
|
-
|
|
|
(11,783
|
)
|
|
11,783
|
|
|
11,783
|
|
|
4,441
|
|
|
7,342
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
-
|
|
|
(6,269
|
)
|
|
6,269
|
|
|
6,269
|
|
|
2,363
|
|
|
3,906
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
$1,556,356
|
|
|
$817,062
|
|
|
$739,294
|
|
|
$705,368
|
|
|
$269,451
|
|
|
$435,917
|
|
|
$1.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.46
|
%
|
|
2.70
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
1.66
|
%
|
|
1.42
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
0.80
|
%
|
|
1.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amount of Warrant expense deductible for income
tax purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants.
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF DILUTED SHARES OUTSTANDING (GAAP TO NON-GAAP)
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding
|
|
220,243
|
|
|
229,409
|
|
|
219,854
|
|
|
229,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock option, restricted stock, and restricted stock unit dilution
|
|
-
|
|
|
4,863
|
|
|
-
|
|
|
4,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant dilution
|
|
-
|
|
|
1,996
|
|
|
-
|
|
|
1,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares outstanding
|
|
220,243
|
|
|
236,268
|
|
|
219,854
|
|
|
236,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant dilution (1) |
|
-
|
|
|
(1,996
|
)
|
|
-
|
|
|
(1,813
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares repurchased under a special share repurchase program (1) |
|
5,112
|
|
|
-
|
|
|
4,974
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock option, restricted stock, and restricted stock unit dilution (2) |
|
5,036
|
|
|
-
|
|
|
5,013
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares outstanding
|
|
230,391
|
|
|
234,272
|
|
|
229,841
|
|
|
234,837
|
|
|
(1) For the non-GAAP presentation, diluted weighted
average common shares outstanding have been adjusted to exclude the
impact of the Warrants and the shares repurchased under a special
$650 million share repurchase program, which was established to
mitigate the potentially dilutive effect of the Warrants and
supplements our previously executed hedging strategy.
|
|
(2) For the non-GAAP presentation, diluted weighted
average common shares outstanding have been adjusted to include the
impact of the stock options, restricted stock, and restricted stock
units that were anti-dilutive for the GAAP presentation.
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Revenue
|
|
|
2015
|
|
|
2014
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$31,762,523
|
|
|
|
$27,932,495
|
|
|
|
13.7
|
%
|
Other
|
|
|
986,069
|
|
|
|
572,503
|
|
|
|
72.2
|
%
|
Intersegment eliminations
|
|
|
(79,325
|
)
|
|
|
(49,095
|
)
|
|
|
61.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$32,669,267
|
|
|
|
$28,455,903
|
|
|
|
14.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Operating (loss) income
|
|
|
2015
|
|
|
2014
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$488,575
|
|
|
|
$372,929
|
|
|
|
31.0
|
%
|
Other
|
|
|
64,150
|
|
|
|
43,633
|
|
|
|
47.0
|
%
|
Total segment operating income
|
|
|
552,725
|
|
|
|
416,562
|
|
|
|
|
|
Gains on antitrust litigation settlements
|
|
|
21,483
|
|
|
|
849
|
|
|
|
|
|
LIFO expense
|
|
|
(151,144
|
)
|
|
|
(102,828
|
)
|
|
|
|
|
Acquisition related intangibles amortization
|
|
|
(9,736
|
)
|
|
|
(5,825
|
)
|
|
|
|
|
Warrant expense
|
|
|
(752,706
|
)
|
|
|
(5,663
|
)
|
|
|
|
|
Employee severance, litigation and other
|
|
|
(24,871
|
)
|
|
|
(1,967
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
($364,249
|
)
|
|
|
$301,128
|
|
|
|
-221.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.67
|
%
|
|
|
2.49
|
%
|
|
|
|
|
Operating expenses
|
|
|
1.14
|
%
|
|
|
1.15
|
%
|
|
|
|
|
Operating income
|
|
|
1.54
|
%
|
|
|
1.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
19.52
|
%
|
|
|
23.82
|
%
|
|
|
|
|
Operating expenses
|
|
|
13.02
|
%
|
|
|
16.20
|
%
|
|
|
|
|
Operating income
|
|
|
6.51
|
%
|
|
|
7.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.79
|
%
|
|
|
2.56
|
%
|
|
|
|
|
Operating expenses
|
|
|
3.91
|
%
|
|
|
1.51
|
%
|
|
|
|
|
Operating income
|
|
|
-1.11
|
%
|
|
|
1.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
3.19
|
%
|
|
|
2.92
|
%
|
|
|
|
|
Operating expenses
|
|
|
1.50
|
%
|
|
|
1.46
|
%
|
|
|
|
|
Operating income
|
|
|
1.69
|
%
|
|
|
1.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
Revenue
|
|
|
2015
|
|
|
2014
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$64,745,247
|
|
|
|
$56,555,086
|
|
|
|
14.5
|
%
|
Other
|
|
|
1,682,070
|
|
|
|
1,176,635
|
|
|
|
43.0
|
%
|
Intersegment eliminations
|
|
|
(169,448
|
)
|
|
|
(99,456
|
)
|
|
|
70.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$66,257,869
|
|
|
|
$57,632,265
|
|
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
Operating (loss) income
|
|
|
2015
|
|
|
2014
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$878,976
|
|
|
|
$659,711
|
|
|
|
33.2
|
%
|
Other
|
|
|
109,316
|
|
|
|
79,583
|
|
|
|
37.4
|
%
|
Total segment operating income
|
|
|
988,292
|
|
|
|
739,294
|
|
|
|
33.7
|
%
|
Gains on antitrust litigation settlements
|
|
|
21,483
|
|
|
|
21,872
|
|
|
|
|
|
LIFO expense
|
|
|
(295,168
|
)
|
|
|
(160,410
|
)
|
|
|
|
|
Acquisition related intangibles amortization
|
|
|
(14,768
|
)
|
|
|
(11,783
|
)
|
|
|
|
|
Warrant expense
|
|
|
(1,124,111
|
)
|
|
|
(121,960
|
)
|
|
|
|
|
Employee severance, litigation and other
|
|
|
(28,374
|
)
|
|
|
(6,269
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
($452,646
|
)
|
|
|
$460,744
|
|
|
|
-198.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.47
|
%
|
|
|
2.28
|
%
|
|
|
|
|
Operating expenses
|
|
|
1.12
|
%
|
|
|
1.11
|
%
|
|
|
|
|
Operating income
|
|
|
1.36
|
%
|
|
|
1.17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
20.02
|
%
|
|
|
22.69
|
%
|
|
|
|
|
Operating expenses
|
|
|
13.52
|
%
|
|
|
15.92
|
%
|
|
|
|
|
Operating income
|
|
|
6.50
|
%
|
|
|
6.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.51
|
%
|
|
|
2.46
|
%
|
|
|
|
|
Operating expenses
|
|
|
3.19
|
%
|
|
|
1.66
|
%
|
|
|
|
|
Operating (loss) income
|
|
|
-0.68
|
%
|
|
|
0.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.92
|
%
|
|
|
2.70
|
%
|
|
|
|
|
Operating expenses
|
|
|
1.43
|
%
|
|
|
1.42
|
%
|
|
|
|
|
Operating income
|
|
|
1.49
|
%
|
|
|
1.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
September 30,
|
|
|
|
2015
|
|
|
2014
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$2,336,979
|
|
|
$1,808,513
|
Accounts receivable, net
|
|
|
7,560,122
|
|
|
6,312,883
|
Merchandise inventories
|
|
|
9,517,312
|
|
|
8,593,852
|
Prepaid expenses and other
|
|
|
142,410
|
|
|
84,957
|
Total current assets
|
|
|
19,556,823
|
|
|
16,800,205
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
955,558
|
|
|
899,582
|
Other long-term assets
|
|
|
6,493,149
|
|
|
3,832,396
|
|
|
|
|
|
|
|
Total assets
|
|
|
$27,005,530
|
|
|
$21,532,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$18,395,154
|
|
|
$15,592,834
|
Short-term debt
|
|
|
64,205
|
|
|
-
|
Other current liabilities
|
|
|
1,766,547
|
|
|
1,657,326
|
Total current liabilities
|
|
|
20,225,906
|
|
|
17,250,160
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
3,942,517
|
|
|
1,995,632
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
920,852
|
|
|
329,492
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
1,916,255
|
|
|
1,956,899
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$27,005,530
|
|
|
$21,532,183
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
|
|
|
Six
|
|
|
|
Months Ended
|
|
|
Months Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
($713,337
|
)
|
|
|
$221,462
|
|
Loss from discontinued operations
|
|
|
-
|
|
|
|
7,546
|
|
(Loss) income from continuing operations
|
|
|
(713,337
|
)
|
|
|
229,008
|
|
Adjustments to reconcile (loss) income from continuing operations
to net cash provided by operating activities (1)
|
|
|
1,263,253
|
|
|
|
231,572
|
|
Changes in operating assets and liabilities, excluding the effects
of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(810,902
|
)
|
|
|
(495,495
|
)
|
Merchandise inventories (2) |
|
|
(611,235
|
)
|
|
|
(1,486,055
|
)
|
Accounts payable, accrued expenses, and income taxes
|
|
|
2,566,923
|
|
|
|
1,612,833
|
|
Other
|
|
|
(56,018
|
)
|
|
|
28,336
|
|
Net cash provided by operating activities - continuing operations
|
|
|
1,638,684
|
|
|
|
120,199
|
|
Net cash used in operating activities - discontinued operations
|
|
|
-
|
|
|
|
(7,546
|
)
|
Net cash provided by operating activities
|
|
|
1,638,684
|
|
|
|
112,653
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(105,201
|
)
|
|
|
(125,392
|
)
|
Cost of acquired companies, net of cash acquired
|
|
|
(2,603,918
|
)
|
|
|
(9,103
|
)
|
Other
|
|
|
19,666
|
|
|
|
6,360
|
|
Net cash used in investing activities
|
|
|
(2,689,453
|
)
|
|
|
(128,135
|
)
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
Net borrowings
|
|
|
2,010,781
|
|
|
|
-
|
|
Purchases of common stock (3) |
|
|
(316,480
|
)
|
|
|
(251,961
|
)
|
Exercises of stock options
|
|
|
141,895
|
|
|
|
59,675
|
|
Cash dividends on common stock
|
|
|
(128,119
|
)
|
|
|
(108,397
|
)
|
Purchases of capped call options
|
|
|
(100,000
|
)
|
|
|
(211,397
|
)
|
Other
|
|
|
(28,842
|
)
|
|
|
(6,714
|
)
|
Net cash provided by (used in) financing activities
|
|
|
1,579,235
|
|
|
|
(518,794
|
)
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
528,466
|
|
|
|
(534,276
|
)
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
1,808,513
|
|
|
|
1,231,006
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
$2,336,979
|
|
|
|
$696,730
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments include non-cash warrant expense of
$1,124.1 million and $122.0 million for the six months ended March
31, 2015 and 2014, respectively.
|
|
(2) Merchandise inventories include LIFO expense of
$295.2 million and $160.4 million for the six months ended March
31, 2015 and 2014, respectively.
|
|
(3) Includes purchases made under the special share
repurchase program totaling $150.2 million in the six months ended
March 31, 2015, which includes $18.0 million of fiscal 2014
purchases that cash settled in October 2014.
|
|
Source: AmerisourceBergen Corporation
AmerisourceBergen Corporation
Barbara Brungess
Vice
President, Corporate & Investor Relations
610-727-7199
bbrungess@amerisourcebergen.com