MALVERN, Pa.--(BUSINESS WIRE)--Oct. 21, 1999--AmeriSource Health
Corporation (NYSE: AAS -news), one of the nation's leading pharmaceutical
distributors, announced preliminary earnings results for its fourth
quarter ended September 30, 1999.
All results have been restated to reflect the
pooling-of-interests method of accounting for the acquisition of C. D.
Smith Healthcare. Preliminary results show that operating revenue was
$2.57 billion in the quarter.
Excluding the impact of approximately $200 million in revenue
resulting from the acquisition of C. D. Smith Healthcare, this
represents a 16% increase over the prior year fourth quarter.
While the Company continued to gain incremental market share
throughout the quarter, operating revenue was slightly less than
expected partly due to delays in new business conversions attributable
to customer reluctance to change their pharmaceutical wholesaler
service provider prior to the millennium; and, a later than expected
start up on several new accounts.
AmeriSource expects to report fully diluted earnings per share of
$.43 to $.45 for the fourth quarter of fiscal 1999 before the effects
of the previously announced special charges in fiscal 1999 relating to
the merger of C.D. Smith and the extinguishment of long-term debt. The
analyst forecasts for the fourth quarter range from $.45 to $.50 per
share.
The AmeriSource numbers are still preliminary and are subject to
final adjustments.
Subsequent to the close of the quarter, one of the Company's
regional chain customers announced a reorganization under Chapter 11
of the U.S. Bankruptcy code. AmeriSource is anticipating an additional
bad debt expense of approximately $2.2 million in the fourth quarter
relating to the outstanding receivables of this customer. The
estimated results reflect this charge of approximately $.03 per share.
The Company expects to recognize a LIFO credit for the fourth
quarter of approximately $1.0 million versus a credit of $7.8 million
in the same quarter of fiscal 1998. For the fiscal year ended
September 30, 1999, AmeriSource expects a LIFO charge of $2.8 million
versus a $4.6 million credit reported in the prior year.
R. David Yost, AmeriSource President and CEO said, ``Our
underlying fundamentals continue to be strong and we remain bullish on
AmeriSource and the industry going into fiscal 2000. The quality of
the Company's earnings showed strong improvement during the quarter
and for the year.
Excluding the one-time charges relating to C. D. Smith, we are
very encouraged by the fact that FIFO operating income, one of our key
internal management metrics, advanced more than 25% for the quarter
even after absorbing the anticipated $2.2 million bad debt reserve,
thereby validating the strength of our business.``
At this time, the Company is still in the process of assessing
the quarter's financial results and has no further details to provide
until the final results are released on November 3, 1999 following
completion of the regular annual audit. Investors can expect
management to conduct its regularly scheduled conference call and
presentation via the Internet on November 3rd at 11:00 a.m.
ET.
The URL address to view the presentation is www.vcall.com.
AmeriSource Health Corporation is a Fortune 200 company with
revenue of $8.7 billion for fiscal year 1998. The Company is one of
the nation's leading wholesale pharmaceutical distributors and serves
the healthcare industry from a nationwide network of 25 strategically
located distribution centers. News and additional information about
the company are available at www.amerisource.com.
Certain information contained in this press release includes
forward-looking statements (as defined in Section 27A of the
Securities Act and Section 21E of the Exchange Act) that reflect the
Company's current views with respect to future events and financial
performance.
Certain factors such as competitive pressures, success of
restructuring initiatives, continued industry consolidation, changes
in customer mix, changes in pharmaceutical manufacturers' pricing and
distribution policy, the loss of one or more key customer or supplier
relationships and other matters contained in the Company's Form 10-K
for fiscal year 1998 and other public documents could cause actual
results to differ materially from those in the forward-looking
statements.
The Company assumes no obligation to update the matters discussed
in this press release.
Contact: AmeriSource Health Corporation
MaryBeth Alvin Director, Investor Relations
610/993-3411
malvin@amerisource.com