VALLEY FORGE, Pa.--(BUSINESS WIRE)--Dec. 1,
2005--AmerisourceBergen Corporation (NYSE:ABC) today reaffirmed its
previous fiscal year 2006 guidance and provided additional detail on
its expectations for the December quarter. The Company is also hosting
a webcast of its Investor Day Meeting in New York City today beginning
at 12:30 pm Eastern Standard Time.
The Company continues to expect operating revenue growth in the
range of 6 percent to 8 percent and diluted earnings per share for
fiscal year 2006 of between $3.95 and $4.25, $1.98 to $2.13 after its
scheduled December 28, 2005 stock split. Diluted earnings per share
expectations include the impact of a $0.09, $0.045 post-split, charge
for equity compensation expense and the anticipation that litigation
recovery gains will be offset by facility consolidation and employee
severance expense. For fiscal 2006, the Company reaffirmed that
pharmaceutical distribution segment operating margins are expected to
be in the range of 115 basis points to 125 basis points, and cash flow
from operations to be in the range of $500 million to $600 million.
The Company previously noted that it expected the December quarter
diluted earnings per share to be below the quarterly average in fiscal
2006. AmerisourceBergen announced today that it expects diluted
earnings per share for the December quarter to be in the range of
$0.74 to $0.86, $0.37 to $0.43 on a post-split basis, which is within
the Company's internal expectations. The remaining quarters of the
fiscal year are expected to be substantially higher due to the impacts
of higher price appreciation, additional fees received from new
fee-for-service contracts signed in the December quarter, escalating
revenues, fewer shares outstanding, and the contributions from several
previously announced initiatives within AmerisourceBergen Drug
Corporation.
The stock split will be in the form of a stock dividend, whereby
each stockholder will receive one additional share for each share
owned. The new shares will be distributed December 28, 2005 to
stockholders of record at the close of business on December 13, 2005.
The Company currently has approximately 104.3 million shares
outstanding. After the split, the Company expects to have
approximately 208.6 million shares of common stock outstanding,
excluding any share repurchase or option exercise activity between now
and the split date.
AmerisourceBergen continues to expect to repurchase approximately
$400 to $450 million of its stock by the end of fiscal 2006 under its
previously announced $750 million share repurchase authorization.
AmerisourceBergen will webcast its Investor Day Meeting today
beginning at 12:30 pm Eastern Standard Time through approximately 3:00
pm. Participating in the meeting will be: R. David Yost, Chief
Executive Officer; Kurt J. Hilzinger, President and Chief Operating
Officer; and Michael D. DiCandilo, Executive Vice President and Chief
Financial Officer as well as other members of the AmerisourceBergen
management team. To access the live webcast, go to the Webcasts
section on the Investor Relations page at www.amerisourcebergen.com. A
replay of the webcast will be available for 30 days.
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
and pharmaceutical packaging to pharmacy services for skilled nursing
and assisted living facilities, reimbursement and pharmaceutical
consulting services, and physician education. With more than $54
billion in annual 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
and the benefits, efficiencies and savings to be derived from the
Company's integration plans to consolidate its distribution network.
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 or supplier relationships; customer defaults or insolvencies;
changes in customer mix; 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; changes in U.S. government policies
(including reimbursement changes arising from the Medicare
Modernization Act); market interest rates; operational or control
issues arising from AmerisourceBergen's outsourcing of information
technology activities; success of the Pharmaceutical Distribution
segment's ability to transition its business model to fee-for-service;
success of integration, restructuring or systems initiatives;
fluctuations in the U.S. dollar - Canadian dollar exchange rate;
economic, business, competitive and/or regulatory developments in
Canada; acquisition of businesses that do not perform as we expect or
that are difficult for us to integrate or control; and other economic,
business, competitive, legal, 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.
CONTACT: AmerisourceBergen Corporation
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation