VALLEY FORGE, Pa.--(BUSINESS WIRE)--July 25,
2006--AmerisourceBergen Corporation (NYSE:ABC) today reported results
for its fiscal third quarter ended June 30, 2006. The following
results are presented in accordance with U.S. generally accepted
accounting principles (GAAP). All prior year share and per share
amounts referenced in this news release were adjusted to reflect the
Company's December 2005 two-for-one stock split.
Fiscal Third Quarter Highlights
-- Diluted earnings per share from continuing operations of
$0.58, including a $0.01 benefit from special items, up 21
percent.
-- Record operating revenue of $14.4 billion, up 15 percent.
-- Cash flow from operations of $178 million.
Fiscal Nine Month Highlights
-- Diluted earnings per share from continuing operations of
$1.65, up 31 percent.
-- Record operating revenue of $42.0 billion, up 13 percent.
-- Cash flow from operations of $881 million.
"Our June quarter results were excellent with pharmaceutical
distribution continuing its strong performance and PharMerica
improving," said R. David Yost, AmerisourceBergen's Chief Executive
Officer. "Our record operating revenue was again above our
expectations, and our outstanding earnings per share performance was
driven by solid results in pharmaceutical distribution, including
continued strong growth in our specialty business, improvement in
PharMerica and our significant reduction in interest expense. With
nearly $1.7 billion in cash, our balance sheet continues to be strong
and our financial flexibility significant."
Discussion of Results
AmerisourceBergen's operating revenue was a record $14.4 billion
in the third quarter of fiscal 2006 compared to $12.6 billion for the
same period last year, a 15 percent increase. Bulk deliveries in the
quarter were $1.2 billion, up 1 percent over last fiscal year's third
quarter.
Consolidated operating income in the fiscal 2006 third quarter
increased 12 percent to $188.8 million, primarily due to the strong
revenue growth in both reported segments. Consolidated operating
income was positively impacted by a gain in gross profit of $4.6
million from pharmaceutical manufacturer antitrust litigation cases.
Facility consolidations, employee severance and other expenses had a
net positive impact of $86,000, which included a $17.3 million gain
from the sale of the former Bergen Brunswig headquarters building in
Orange, California, offset by $17.2 million in expenses. Of the $17.2
million in expenses, $13.9 million was for an increase in a
compensation accrual due to an adverse decision in an
employment-related dispute with a former Bergen Brunswig chief
executive officer whose employment was terminated well before the
start of the merger discussions that created AmerisourceBergen.
In the prior year's fiscal third quarter, consolidated operating
income benefited from a net gain of $7.8 million including a gain from
a manufacturer antitrust case, a charge due to a generic manufacturer
bankruptcy, and a write-down of certain automation inventory, all
reflected in gross profit. Facility consolidations and employee
severance expenses in the year-ago quarter resulted in a charge of
$3.7 million.
In the third quarter of fiscal 2006, the Company had approximately
$600,000 of net interest income compared with $11.3 million in net
interest expense in the prior year's third quarter, reflecting an
increase in cash invested at higher interest rates and reduced
interest rates on the Company's long-term debt.
The effective tax rate for the third quarter of fiscal 2006 was
36.9 percent, up slightly from 36.4 percent in the previous fiscal
year's third quarter. Going forward, the Company expects the quarterly
tax rate to be between 37 percent and 38 percent.
Diluted earnings per share from continuing operations were $0.58
in the third quarter of fiscal 2006, compared to $0.48 in the previous
fiscal year's third quarter, a 21 percent increase. Special items in
the third quarter of fiscal 2006, which include the gains from the
antitrust litigation and the facility consolidations, employee
severance and other expenses, resulted in a benefit, net of tax, of
$2.9 million, or $0.01 per diluted share. In the same period of the
previous fiscal year, there were $2.6 million of special items, net of
tax, which increased diluted earnings per share by $0.01.
Diluted average shares outstanding for the third quarter of fiscal
year 2006 were 207.3 million, down 1.5 million from the previous
fiscal year's third quarter due to share repurchases, net of option
exercises. Total outstanding shares at the end of June were 201.2
million. The Company repurchased $374 million of its stock in the June
quarter, and in the first nine months of fiscal 2006 has repurchased
$506 million of its stock, exceeding its target for the fiscal year of
$400 million to $450 million.
Cash generated from operations in the third quarter of fiscal year
2006 was $178 million and in the first nine months of fiscal 2006 was
$881 million.
For the first nine months of fiscal 2006, AmerisourceBergen's
operating revenue was $42.0 billion compared to $37.0 billion for the
same period last year, a 13 percent increase. Bulk deliveries in the
nine-month period of the current fiscal year decreased 2 percent to
$3.5 billion.
Consolidated operating income in the first nine months of the
fiscal year increased 15 percent over the previous fiscal year's
nine-month period to $553.4 million primarily due to strong revenue
growth in both segments.
For the first nine months of fiscal 2006, diluted earnings per
share from continuing operations were $1.65, a 31 percent increase
from $1.26, before the cumulative effect of a change in accounting, in
the same nine-month period last year.
"In the quarter, another solid performance in Pharmaceutical
Distribution was aided by improving performance in PharMerica," said
Kurt J. Hilzinger, AmerisourceBergen's President and Chief Operating
Officer. "Drug Corporation's revenue growth was again driven by our
larger, lower-margin customers and new business, while contributions
from our fee-for-service agreements and generic pharmaceuticals
programs continued to be the primary drivers of gross margin. Our
Canadian operations also contributed to performance, and
AmerisourceBergen Canada announced an agreement to purchase Rep-Pharm,
Inc., a distributor whose addition is expected to increase annual
Canadian operating revenue to $1.4 billion, making the Company the
second largest distributor in Canada.
"Optimiz(R), our program to enhance the efficiency of our
distribution center network, continued to improve our cost structure,
and the last of six new large distribution centers under the program
became operational in Bethlehem, PA, during the quarter. Our
customer-focused Transform program to improve value to the customer
and deliver better margins for the Drug Corporation also aided
performance.
"Our Specialty Group, which had more than $9 billion in revenue
over the last twelve months, continued to grow faster than the broader
pharmaceutical marketplace. Its market-leading oncology businesses
continued their strong revenue and earnings performance, while the
Group's other distribution businesses benefited from, among other
things, new distribution agreements for biotech drugs.
"The Packaging Group continued to expand its growing pipeline of
contract packaging programs for manufacturers and to broaden its
compliance packaging solutions for healthcare providers. The
integration of Brecon Pharmaceuticals Limited, a contract and clinical
trials packager located in Wales, United Kingdom, which was acquired
in the previous quarter, is proceeding smoothly. Brecon expands the
Group's geographical reach to include packaging for the European and
Asian markets.
"Our PharMerica segment improved in the third quarter even as its
long-term care pharmacy business continues to be in a transition year
due to the implementation of Medicare Part D. Revenues increased 8
percent over the previous fiscal year's third quarter, due to the
long-term care business's ability to capitalize on its national
footprint and deploy new technology offerings to customers."
Segment Review
AmerisourceBergen operates in two reportable segments:
Pharmaceutical Distribution (which includes the operations of
AmerisourceBergen Drug Corporation, Specialty Group, and Packaging
Group) and PharMerica (which includes the long-term care pharmacy and
workers' compensation businesses). Intersegment sales of $211.4
million in the third quarter of fiscal 2006 from AmerisourceBergen
Drug Corporation to PharMerica, which are included in the
Pharmaceutical Distribution segment operating revenue, are eliminated
for consolidated reporting purposes.
Pharmaceutical Distribution Segment
Record operating revenue of $14.2 billion in the third quarter of
fiscal 2006 was up 15 percent compared to the same quarter in the
previous fiscal year.
Strong growth in the Drug Corporation, primarily in large accounts
and new business, coupled with continued strong performance in the
Specialty Group, drove operating revenues above the Company's
expectations. Pharmaceutical Distribution customer mix in the third
quarter of fiscal 2006 was 59 percent institutional and 41 percent
retail.
For the segment, gross profit as a percentage of operating revenue
in the third quarter of fiscal 2006 was 3.03 percent, compared to 2.96
percent in the same period in the prior fiscal year. Operating
expenses as a percentage of operating revenue in the fiscal 2006 third
quarter were 1.93 percent, slightly higher than the 1.91 percent in
the prior year's third quarter, reflecting the impact of acquisitions.
Segment operating income for the fiscal 2006 third quarter was
$156.7 million, a 20 percent increase over the same period in fiscal
2005. Operating income as a percentage of operating revenue in the
third quarter of fiscal 2006 was 1.10 percent, ahead of the 1.05
percent in the same quarter last fiscal year, and in the first nine
months of fiscal 2006 was 1.14 percent, a 10 basis point increase over
the first nine months of fiscal 2005. In the fiscal 2005 third
quarter, segment operating income was negatively impacted by a charge
of $13.5 million for a generic manufacturer's bankruptcy and product
rationalization in the Company's technology business.
PharMerica Segment
PharMerica's revenue for the third quarter of fiscal 2006 was a
record $424.0 million, an 8 percent increase over the previous year's
third quarter. Operating income for the third quarter of fiscal 2006
was $27.5 million, a 33 percent increase over the $20.6 million for
the same quarter last year, reflecting improved cost control and a
reduction in a sales tax liability of $3.2 million in the workers'
compensation business. Operating income as a percentage of revenue was
6.48 percent in the third quarter of fiscal 2006, well above internal
expectations. For the first nine months of fiscal 2006, operating
income as a percentage of revenue was 4.99 percent, and the Company
now expects operating margin to be at the higher end of its previously
announced 4 percent to 5 percent range for fiscal year 2006.
Looking Ahead
"We expect the fiscal year 2006 operating revenue growth to be in
a range of 12 percent to 13 percent, an increase from our previous
range of 10 percent to 12 percent, which assumes 9 percent to 11
percent growth in the fiscal fourth quarter," said Yost. "Our expected
slower growth in the coming quarter partially reflects the loss of two
accounts totaling $1.5 billion in annualized revenue which moved to
another distributor sooner than expected after they were acquired by a
company supplied by a competitor.
"We also are increasing, as well as narrowing, the range on our
expectations for diluted earnings per share on a GAAP basis in the
2006 fiscal year to a range of $2.16 to $2.24 from the previous range
of $2.06 to $2.21. This fiscal 2006 guidance assumes a fiscal fourth
quarter range of $0.51 to $0.59 with no net impact from special items
in the quarter. The new fiscal year guidance range also reflects the
net benefit of $0.11 from special items including litigation gains;
facility consolidations, severance and other costs; and the fiscal
second quarter tax adjustments and investment gains, all recognized in
the first nine months of fiscal 2006. Expectations for fiscal 2006
diluted earnings per share continue to include the impact of $0.04 to
$0.05 for equity compensation expense. For fiscal 2006, we expect
operating margins from the Pharmaceutical Distribution segment to be
at the lower end of our previously stated range of 1.15 percent to
1.25 percent due to customer mix.
"Our expectation for cash flow from operations for fiscal 2006 is
being raised to a range of $700 million to $800 million from the
previous estimate of $600 million to $700 million.
"We repurchased $506 million of our stock during the first nine
months of fiscal 2006, exceeding our target for the fiscal year. With
$244 million remaining on our current share repurchase program, we
expect to continue to be active, depending on market conditions,
during the fourth fiscal quarter."
Yost concluded, "As is our normal practice, we will provide
guidance for fiscal year 2007 in early November when we release the
results for fiscal year 2006."
Conference Call
The Company will host a conference call to discuss its results at
11:00 a.m. Eastern Daylight Time on July 25, 2006. Participating in
the conference call 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.
To access the live conference call via telephone:
Dial in: 651-291-5254, no access code required.
To access the live webcast:
Go to the Quarterly Webcasts section on 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. July 25, 2006 until 11:59 p.m. August 1, 2006. The Webcast replay
will be available for 30 days.
To access the replay via telephone:
Dial in: (800) 475-6701 from within the U.S., access code: 835590
(320) 365-3844 from outside the U.S., access code: 835590
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is one of the world's largest
pharmaceutical services companies serving the United States, Canada
and selected global markets. 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 $59
billion in annualized revenue, AmerisourceBergen is headquartered in
Valley Forge, PA, and employs more than 13,000 people.
AmerisourceBergen is ranked #27 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); declines in the amounts of market share rebates
offered by pharmaceutical manufacturers to the PharMerica long-term
care business, declines in the amounts of rebates that the PharMerica
Long-Term Care business can retain, and/or the inability of the
business to offset the rebate reductions that have already occurred or
any rebate reductions that may occur in the future; market interest
rates; operational or control issues arising from AmerisourceBergen's
outsourcing of information technology activities; the Pharmaceutical
Distribution segment's ability to continue to successfully 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 and other foreign exchange rates;
economic, business, competitive and/or regulatory developments in
Canada, the United Kingdom and elsewhere outside of the United States;
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 2005.
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.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Three Three
Months Ended % of Months Ended % of
June 30, Operating June 30, Operating %
2006 Revenue 2005 Revenue Change
------------ --------- ------------ --------- ------
Revenue:
Operating
revenue $14,446,280 100.00% $12,603,893 100.00% 15%
Bulk deliveries
to customer
warehouses 1,240,035 1,228,073 1%
------------ ------------
Total revenue 15,686,315 13,831,966 13%
Cost of goods
sold 15,129,136 13,329,897 13%
------------ ------------
Gross profit 557,179 3.86% 502,069 3.98% 11%
Operating
expenses:
Distribution,
selling and
administrative 346,394 2.40% 310,112 2.46% 12%
Depreciation
and
amortization 22,027 0.15% 19,602 0.16% 12%
Facility
consolidations,
employee
severance, and
other (86) 0.00% 3,747 0.03% -102%
------------ ------------
Operating income 188,844 1.31% 168,608 1.34% 12%
Other loss 87 0.00% 291 0.00% -70%
Interest (income)
expense, net (584) 0.00% 11,271 0.09% -105%
------------ ------------
Income from
continuing
operations
before income
taxes 189,341 1.31% 157,046 1.25% 21%
Income taxes 69,873 0.48% 57,202 0.45% 22%
------------ ------------
Income from
continuing
operations 119,468 0.83% 99,844 0.79% 20%
Loss from
discontinued
operations, net
of tax - 5,067
------------ ------------
Net income $119,468 0.83% $94,777 0.75% 26%
============ ============
Earnings per
share:
Basic
Continuing
operations $0.58 $0.48 21%
Discontinued
operations - (0.02)
------------ ------------
Net income $0.58 $0.46 26%
============ ============
Diluted
Continuing
operations $0.58 $0.48 21%
Discontinued
operations - (0.02)
Rounding - (0.01)
------------ ------------
Net income $0.58 $0.45 29%
============ ============
Weighted average
common shares
outstanding:
Basic 204,830 207,564
Diluted 207,335 208,840
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Nine Nine
Months Ended % of Months Ended % of
June 30, Operating June 30, Operating %
2006 Revenue 2005 Revenue Change
------------ --------- ------------ --------- ------
Revenue:
Operating
revenue $42,031,309 100.00% $37,047,741 100.00% 13%
Bulk deliveries
to customer
warehouses 3,528,832 3,611,227 -2%
------------ ------------
Total revenue 45,560,141 40,658,968 12%
Cost of goods
sold 43,913,821 39,200,558 12%
------------ ------------
Gross profit 1,646,320 3.92% 1,458,410 3.94% 13%
Operating
expenses:
Distribution,
selling and
administrative 1,017,366 2.42% 900,183 2.43% 13%
Depreciation
and
amortization 63,263 0.15% 60,303 0.16% 5%
Facility
consolidations,
employee
severance, and
other 12,318 0.03% 10,717 0.03% 15%
Impairment
charge - 0.00% 5,259 0.01% N/A
------------ ------------
Operating income 553,373 1.32% 481,948 1.30% 15%
Other income (4,956) -0.01% (1,150) 0.00% N/A
Interest expense,
net 13,272 0.03% 47,868 0.13% -72%
Loss on early
retirement of
debt - 1,015 0.00% N/A
------------ ------------
Income from
continuing
operations
before income
taxes and
cumulative
effect of change
in accounting 545,057 1.30% 434,215 1.17% 26%
Income taxes 199,023 0.47% 163,636 0.44% 22%
------------ ------------
Income from
continuing
operations
before
cumulative
effect of change
in accounting 346,034 0.82% 270,579 0.73% 28%
Loss from
discontinued
operations, net
of tax 298 15,263
Cumulative effect
of change in
accounting, net
of tax - 10,172
------------ ------------
Net income $345,736 0.82% $245,144 0.66% 41%
============ ============
Earnings per
share:
Basic
Continuing
operations $1.67 $1.27 31%
Discontinued
operations - (0.07)
Cumulative
effect of
change in
accounting - (0.05)
------------ ------------
Net income $1.67 $1.15 45%
============ ============
Diluted
Continuing
operations $1.65 $1.26 31%
Discontinued
operations - (0.07)
Cumulative
effect of
change in
accounting - (0.05)
------------ ------------
Net income $1.65 $1.14 45%
============ ============
Weighted average
common shares
outstanding:
Basic 207,061 212,632
Diluted 209,503 217,522
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
June 30, September 30,
2006 2005
------------- -------------
Current assets:
Cash and cash equivalents $1,658,340 $966,553
Short-term investment securities
available-for-sale - 349,130
Accounts receivable, net 3,146,606 2,640,646
Merchandise inventories 4,471,178 4,003,690
Prepaid expenses and other 28,451 27,673
------------- -------------
Total current assets 9,304,575 7,987,692
Property and equipment, net 512,623 514,758
Other long-term assets 3,049,844 2,878,724
------------- -------------
Total assets $12,867,042 $11,381,174
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,529,909 $5,292,253
Current portion of long-term debt 2,545 1,232
Other current liabilities 907,540 758,611
------------- -------------
Total current liabilities 7,439,994 6,052,096
Long-term debt, less current portion 1,082,212 951,479
Other long-term liabilities 114,556 97,242
Stockholders' equity 4,230,280 4,280,357
------------- -------------
Total liabilities and stockholders'
equity $12,867,042 $11,381,174
============= =============
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Nine
Months Ended Months Ended
June 30, June 30,
2006 2005
------------- -------------
Operating Activities:
Net income $345,736 $245,144
Adjustments to reconcile net income to
net cash provided by operating
activities 136,904 137,746
Changes in operating assets and
liabilities 398,222 867,660
------------- -------------
Net cash provided by operating activities 880,862 1,250,550
------------- -------------
Investing Activities:
Capital expenditures (89,174) (163,592)
Cost of acquired companies, net of
cash acquired (248,718) (3,460)
Proceeds from sale-leaseback
transactions 28,143 22,211
Proceeds from sale of discontinued
operations - 3,560
Proceeds from sales of property and
equipment 49,612 -
Proceeds from sale of equity
investment and eminent domain
settlement 7,582 -
Net short-term investment activity 349,130 (309,160)
------------- -------------
Net cash provided by (used in) investing
activities 96,575 (450,441)
------------- -------------
Financing Activities:
Net borrowings (repayments) 123,817 (280,000)
Purchases of common stock (505,964) (786,192)
Exercise of stock options 115,714 91,773
Cash dividends on common stock (15,570) (7,992)
Deferred financing costs and other (3,647) (4,470)
------------- -------------
Net cash used in financing activities (285,650) (986,881)
------------- -------------
Increase (decrease) in cash and cash
equivalents 691,787 (186,772)
Cash and cash equivalents at beginning of
period 966,553 871,343
------------- -------------
Cash and cash equivalents at end of
period $1,658,340 $684,571
============= =============
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended June 30,
------------------------------------
Operating Revenue 2006 2005 % Change
--------------------------------- ------------------------------------
Pharmaceutical Distribution $14,233,624 $12,426,079 15%
PharMerica 424,026 393,031 8%
Intersegment eliminations (211,370) (215,217) 2%
------------ ------------
Operating revenue $14,446,280 $12,603,893 15%
============ ============
Three Months Ended June 30,
------------------------------------
Operating Income 2006 2005 % Change
--------------------------------- ------------------------------------
Pharmaceutical Distribution $156,718 $130,486 20%
PharMerica 27,483 20,600 33%
Facility consolidations, employee
severance, and other 86 (3,747) 102%
Gain on antitrust litigation
settlements 4,557 21,269 -79%
------------ ------------
Operating income $188,844 $168,608 12%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.03% 2.96%
Operating expenses 1.93% 1.91%
Operating income 1.10% 1.05%
PharMerica
Gross profit 28.47% 28.67%
Operating expenses 21.99% 23.43%
Operating income 6.48% 5.24%
AmerisourceBergen Corporation
Gross profit 3.86% 3.98%
Operating expenses 2.55% 2.65%
Operating income 1.31% 1.34%
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Nine Months Ended June 30,
------------------------------------
Operating Revenue 2006 2005 % Change
--------------------------------- ------------------------------------
Pharmaceutical Distribution $41,459,337 $36,536,623 13%
PharMerica 1,245,969 1,169,742 7%
Intersegment eliminations (673,997) (658,624) -2%
------------ ------------
Operating revenue $42,031,309 $37,047,741 13%
============ ============
Nine Months Ended June 30,
------------------------------------
Operating Income 2006 2005 % Change
--------------------------------- ------------------------------------
Pharmaceutical Distribution $471,545 $381,736 24%
PharMerica 62,161 76,094 -18%
Facility consolidations, employee
severance, and other (12,318) (10,717) -15%
Gain on antitrust litigation
settlements 31,985 40,094 -20%
Impairment charge - (5,259) N/A
------------ ------------
Operating income $553,373 $481,948 15%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.05% 2.97%
Operating expenses 1.92% 1.92%
Operating income 1.14% 1.04%
PharMerica
Gross profit 27.92% 28.54%
Operating expenses 22.93% 22.03%
Operating income 4.99% 6.51%
AmerisourceBergen Corporation
Gross profit 3.92% 3.94%
Operating expenses 2.60% 2.64%
Operating income 1.32% 1.30%
AMERISOURCEBERGEN CORPORATION
EARNINGS PER SHARE
(In thousands, except per share data)
(unaudited)
Basic earnings per share is computed on the basis of the weighted
average number of shares of common stock outstanding during the
periods presented. Diluted earnings per share is computed on the basis
of the weighted average number of shares of common stock outstanding
during the period plus the dilutive effect of stock options and
restricted stock. Additionally, the diluted calculation for the nine
months ended June 30, 2005 considers the convertible subordinated
notes as if converted during the period that the notes were
outstanding and, therefore, the after-tax effect of interest expense
related to those notes is added back to income from continuing
operations in determining income from continuing operations available
to common stockholders for that period.
Three Months Ended Nine Months Ended
June 30, June 30,
2006 2005 2006 2005
--------- -------- --------- ---------
Income from continuing
operations before cumulative
effect of change in accounting $119,468 $99,844 $346,034 $270,579
Interest expense - convertible
subordinated notes, net of
income taxes - - - 2,539
--------- -------- --------- ---------
Income from continuing
operations available to common
stockholders $119,468 $99,844 $346,034 $273,118
========= ======== ========= =========
Weighted average common shares
outstanding - basic 204,830 207,564 207,061 212,632
Effect of dilutive securities:
Stock options and restricted
stock 2,505 1,276 2,442 1,026
Convertible subordinated
notes - - - 3,864
--------- -------- --------- ---------
Weighted average common shares
outstanding - diluted 207,335 208,840 209,503 217,522
========= ======== ========= =========
Earnings per share:
Basic
Continuing operations $0.58 $0.48 $1.67 $1.27
Discontinued operations - (0.02) - (0.07)
Cumulative effect of change
in accounting - - - (0.05)
--------- -------- --------- ---------
Net income $0.58 $0.46 $1.67 $1.15
========= ======== ========= =========
Diluted
Continuing operations $0.58 $0.48 $1.65 $1.26
Discontinued operations - (0.02) - (0.07)
Cumulative effect of change
in accounting - - - (0.05)
Rounding - (0.01) - -
--------- -------- --------- ---------
Net income $0.58 $0.45 $1.65 $1.14
========= ======== ========= =========
CONTACT: AmerisourceBergen Corporation, Valley Forge
Michael N. Kilpatric, 610-727-7118
[email protected]
SOURCE: AmerisourceBergen Corporation