VALLEY FORGE, Pa., May 13, 2005 (BUSINESS WIRE) -- AmerisourceBergen Corporation (NYSE:ABC), a leading
pharmaceutical services company, today announced that its Board of
Directors has authorized the Company to repurchase up to $450 million
of its outstanding shares of common stock subject to market
conditions. As of April 30, 2005, the Company had approximately 104.2
million common shares outstanding.
The Company will repurchase the shares from time to time for cash
in open market transactions in accordance with applicable federal
securities laws and in accordance with the terms of its debt
instruments, which currently would allow the use of approximately half
of the program in fiscal 2005. The Company will hold any repurchased
shares as treasury shares, which will be available for general
corporate purposes.
"Repurchasing our shares makes sense given AmerisourceBergen's
strong cash position," said R. David Yost, AmerisourceBergen's Chief
Executive Officer. "Our expectations for fiscal 2005 remain unchanged.
We continue to expect operating revenue growth in fiscal year 2005 to
be at about $49 billion, and diluted earnings per share from
continuing operations before the cumulative effect of an accounting
change for fiscal 2005 of between $3.10 and $3.50 on a GAAP basis.
Though we begin our detailed planning process for fiscal 2006 next
month, we continue to estimate diluted earnings per share from
continuing operations in fiscal 2006 to be between $3.60 and $4.40,
also on a GAAP basis. The bottom of the range reflects pharmaceutical
market growth in the high single digits and the full-year impact of
fiscal 2005 capital deployment initiatives. The top of the range
depends on our ability to improve our pharmaceutical distribution
operating margin, expected to be in the 100 to 110 basis points range
in fiscal 2005, by 30 basis points through margin enhancement
activities."
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is one of the largest pharmaceutical
services companies in the United States. 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,
bedside medication safety systems, and pharmaceutical packaging to
pharmacy services for skilled nursing and assisted living facilities,
reimbursement and pharmaceutical consulting services, and physician
education. With more than $49 billion in operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and employs
more than 14,000 people. AmerisourceBergen is ranked #23 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. Forward-looking statements may include statements
addressing AmerisourceBergen's future financial and operating results.
The following factors, among others, could cause actual results to
differ materially from those described in any forward-looking
statements: competitive pressures; the loss of one or more key
customer relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies or practices; regulatory changes; changes in U.S. government
policies (including changes in government policies pertaining to drug
reimbursement); changes in market interest rates; and other economic,
business, competitive, regulatory and/or operational factors affecting
the business of AmerisourceBergen generally.
More detailed information about these and other risk factors is
set forth in AmerisourceBergen's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
fiscal 2004.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward looking
statements whether as a result of new information, future events or
otherwise.
SOURCE: AmerisourceBergen Corporation
AmerisourceBergen Corporation
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com