Expects Fiscal 2014 Adjusted Diluted EPS from Continuing
Operations to be in the range of $3.60 to $3.73
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Oct. 31, 2013--
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its
fiscal year 2013 fourth quarter ended September 30, 2013, adjusted
diluted earnings per share from continuing operations increased 2.6
percent to $0.79, which excludes LIFO expense and warrant expense (net
of related tax impact). Revenue increased 28.3 percent to $24.5 billion
in the quarter. For the fiscal year 2013, adjusted diluted earnings per
share from continuing operations increased 6.1 percent to $3.14.
Revenues increased 12.7 percent to $88.0 billion for the fiscal year. On
the basis of U.S. generally accepted accounting principles (GAAP),
diluted earnings per share from continuing operations were $0.22 for the
September quarter and $2.10 for fiscal 2013.
In the tables that follow, we present our GAAP results as well as a
reconciliation of GAAP income from continuing operations to non-GAAP
adjusted income from continuing operations for the September quarter and
the fiscal year 2013. Fiscal 2012 results are presented on a GAAP basis
only, and include a LIFO credit of $10.7 million in the September
quarter, and an expense of $0.7 million for fiscal year 2012. There was
no warrant expense in fiscal 2012.
“In our September quarter, we delivered strong results and successfully
implemented the first phase of our new expanded contract with Walgreen
Co.,” said Steven H. Collis, AmerisourceBergen President and Chief
Executive Officer. “Our performance in the quarter and the full year,
combined with the opportunities we have on the horizon, drive strong
momentum heading into fiscal 2014. Our innovative programs and services,
strategic relationship with Walgreens and Alliance Boots GmbH,
operational excellence and financial discipline give us great confidence
in our ability to continue to deliver tremendous value to our customers,
suppliers, associates and shareholders.”
The comments below compare adjusted results from continuing
operations for 2013 to GAAP results for 2012.
Summary of Quarterly Results
-
Revenue: In the fourth quarter of fiscal
2013, revenue was $24.5 billion, up 28.3 percent compared to the same
quarter in the previous fiscal year, reflecting a 34 percent increase
in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 12 percent
increase in AmerisourceBergen Specialty Group (ABSG) revenue.
-
Gross Profit: Gross profit in the fiscal
2013 fourth quarter was $721.5 million, a 1.1 percent increase over
the same period in the previous year driven by revenue growth and
strong performance in generic pharmaceuticals in ABDC, offset by a
substantial increase in lower margin business. Gross profit in the
fiscal 2013 fourth quarter also included a $1.1 million gain from
antitrust litigation settlements, compared with a $14.8 million gain
in the same period a year ago. Gross profit as a percentage of revenue
decreased 79 basis points to 2.95 percent.
-
Operating Expenses: In the fourth quarter
of fiscal 2013, operating expenses were $402.9 million, up 2.0 percent
over the same period in the last fiscal year. The increase in
operating expenses in the quarter was due primarily to expenses
associated with on-boarding the new Walgreens business. Operating
expenses in the fourth quarter of fiscal 2013 and 2012 included
employee severance, litigation and other costs totaling $2.1 million
and $27.4, million respectively. Operating expenses as a percentage of
revenue in the fiscal 2013 fourth quarter were 1.65 percent compared
with 2.07 percent in the same period in the previous fiscal year.
-
Operating Income: In the fiscal 2013
fourth quarter, operating income of $318.6 million was flat versus the
prior year, as the increase in gross profit was offset by the increase
in operating expenses. Operating income as a percentage of revenue
decreased 37 basis points to 1.30 percent in the fiscal 2013 fourth
quarter compared with the previous year’s fourth quarter.
-
Tax Rate: The adjusted effective tax rate
for the fourth quarter of fiscal 2013 was 38.2 percent, up from 35.8
percent in the previous fiscal year’s fourth quarter. Going forward,
we expect our annualized adjusted effective tax rate to be in the low
38 percent range.
-
Earnings Per Share: Adjusted diluted
earnings per share from continuing operations were up 2.6 percent to
$0.79 in the fourth quarter of fiscal year 2013 compared to $0.77 in
the previous fiscal year’s fourth quarter, reflecting a reduction in
diluted weighted average shares outstanding, and offset in part by a
2.3 percent decline in income from continuing operations.
-
Shares Outstanding: Diluted weighted
average shares outstanding for the fourth quarter of fiscal year 2013
were 235.1 million, down 4.6 percent from the previous fiscal year’s
fourth quarter due primarily to share repurchases, net of option
exercises.
Segment Discussion
The Pharmaceutical Distribution segment includes both AmerisourceBergen
Drug Corporation and AmerisourceBergen Specialty Group. Other includes
AmerisourceBergen Consulting Services (ABCS) and World Courier.
Pharmaceutical Distribution Segment
In the fourth fiscal quarter of 2013, Pharmaceutical Distribution
revenues were $24.1 billion, an increase of 29 percent compared to the
same quarter in the prior year. ABDC revenues increased 34 percent, due
primarily to the on-boarding of the new Walgreens branded
pharmaceuticals business and increased sales to our large PBM customer.
ABSG revenues increased 12 percent, which was driven by strong
performance in third party logistics and in our blood products, vaccine
and physician office distribution businesses. Intrasegment revenues
between ABDC and ABSG have been eliminated in the presentation of total
Pharmaceutical Distribution revenue. Total intrasegment revenues were
$934.2 million and $684.7 million in the quarters ended September 30,
2013 and 2012, respectively.
Operating income of $298.8 million in the September quarter of 2013
decreased 9 percent compared to the same period in the previous year due
to additional expenses associated with on-boarding the new Walgreens
branded pharmaceuticals business, a shift in customer mix towards lower
margin business in both ABDC and ABSG, a decline in performance in our
oncology business, and fewer new generic launches to offset those
impacts.
Other
Revenues in Other were $433.6 million in the fourth quarter of fiscal
2013, an increase of 3 percent over the same period in the prior year.
Operating income increased 24 percent to $21.9 million in the fourth
quarter of fiscal 2013, with the majority of the increase provided by
the strong performance in our consulting businesses.
Summary of Fiscal Year 2013
In fiscal year 2013, adjusted diluted earnings per share from continuing
operations were $3.14, up 6.1 percent over the prior fiscal year GAAP
diluted earnings per share. Revenue of $88.0 billion increased 12.7
percent over the last fiscal year. Operating income decreased 2.9
percent in fiscal 2013, driven primarily by an increase in operating
expenses, and a shift in customer mix to lower margin business.
Operating income margin decreased 23 basis points to 1.44 percent.
Diluted weighted average shares outstanding in fiscal 2013 were 235.3
million, down 8.4 percent from the year-ago same period. The results of
operations from AndersonBrecon and AmerisourceBergen Canada Corporation,
both of which were divested in the third quarter of fiscal 2013, have
been reported as discontinued operations.
Fiscal Year 2014 Expectations
Going forward, the Company will report adjusted earnings that exclude:
-
LIFO charges and credits;
-
Warrant expense;
-
Acquisition related expenses and intangibles amortization;
-
Special one-time employee severance, litigation, and other expenses;
and
-
Gains from antitrust litigation settlements.
In addition, we will calculate our adjusted earnings per share for each
period using a diluted weighted average share count which will exclude
the accounting dilution resulting from the impact of the unexercised
equity warrants.
On this new basis, the adjusted diluted earnings per share from
continuing operations for fiscal 2013 were $3.21, up $0.07 from the
reported adjusted earnings per share of $3.14. Employee severance,
litigation and other of $23.5 million and intangibles amortization of
$24.4 million, offset by gains from antitrust litigation settlements of
$22.9 million, collectively, contributed to the $0.07 difference in
adjusted earnings per share. There was no accounting dilution to our
share count in fiscal 2013 resulting from the unexercised warrants.
Looking ahead, the Company expects adjusted diluted earnings per share
from continuing operations in fiscal year 2014 to be in the range of
$3.60 to $3.73, a 12 percent to 16 percent increase over the revised
$3.21 in fiscal 2013. Key assumptions supporting that range are:
-
revenue growth in the range of 28 percent to 31 percent;
-
operating income growth in the 12 percent to 16 percent range;
-
operating margin decline in the high teens basis points range due to
the on-boarding of significant new lower margin business;
-
free cash flow in the range of $500 to $700 million, with capital
expenditures in the $300 million range; and
-
approximately $500 million in share repurchases, with the majority
occurring in the second half of fiscal 2014, subject to market
conditions.
Conference Call
The Company will host a conference call to discuss the results at 11:00
a.m. Eastern Time on October 31, 2013.
Participating in the conference call will be:
Steven H. Collis, President & Chief Executive Officer
Tim G. Guttman, Senior Vice President & Chief Financial Officer
The dial-in number for the live call will be (612) 234-9960. 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 304743.
About AmerisourceBergen
AmerisourceBergen is one of the largest global pharmaceutical services
companies, helping both healthcare providers and pharmaceutical and
biotech manufacturers ensure patient access to products and better
health outcomes. 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. With nearly $100 billion in
annualized revenue, AmerisourceBergen is headquartered in Valley Forge,
PA, and employs approximately 13,000 people. AmerisourceBergen is ranked
#32 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: changes in
pharmaceutical market growth rates; the loss of one or more key customer
or supplier relationships; the retention of key customer or supplier
relationships under less favorable economics; changes in customer mix;
customer delinquencies, defaults or insolvencies; supplier defaults or
insolvencies; changes in branded and/or generic pharmaceutical
manufacturers' pricing and distribution policies or practices; adverse
resolution of any contract or other dispute with customers or suppliers;
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; 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, including shareholder derivative lawsuits; changes in
federal and state legislation or regulatory action affecting
pharmaceutical product pricing or reimbursement policies, including
under Medicaid and Medicare, and the effect of such changes on our
customers; changes in regulatory or clinical medical guidelines and/or
labeling for the pharmaceutical products we distribute, including
certain anemia products; price inflation in branded pharmaceuticals and
price deflation in generics; greater or less than anticipated benefit
from launches of the generic versions of previously patented
pharmaceutical products; significant breakdown or interruption of our
information technology systems; our inability to realize the anticipated
benefits of the implementation of an enterprise resource planning (ERP)
system; interest rate and foreign currency exchange rate fluctuations;
risks associated with international business operations, including
non-compliance with the U.S. Foreign Corrupt Practices Act, anti-bribery
laws and economic sanctions and import laws and regulations; economic,
business, competitive and/or regulatory developments outside of the
United States; risks associated with the strategic, long-term
relationship among Walgreen Co., Alliance Boots GmbH and
AmerisourceBergen, the occurrence of any event, change or other
circumstance that could give rise to the termination, cross-termination
or modification of any of the transaction documents among the parties
(including, among others, the distribution agreement or the generics
agreement), an impact on our earnings per share resulting from the
issuance of the Warrants, an inability to realize anticipated benefits
(including benefits resulting from participation in the Walgreens Boots
Alliance Development GmbH joint venture), the disruption of
AmerisourceBergen’s cash flow and ability to return value to its
stockholders in accordance with its past practices, disruption of or
changes in vendor, payer and customer relationships and terms, and the
reduction of AmerisourceBergen’s operational, strategic or financial
flexibility; the acquisition of businesses that do not perform as we
expect or that are difficult for us to integrate or control; our
inability to successfully complete any other transaction that we may
wish to pursue from time to time; changes in tax laws or legislative
initiatives that could adversely affect our tax positions and/or our tax
liabilities or adverse resolution of challenges to our tax positions;
increased costs of maintaining, or reductions in our ability to
maintain, adequate liquidity and financing sources; volatility and
deterioration of the capital and credit markets; and other economic,
business, competitive, legal, tax, regulatory and/or operational factors
affecting our 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) in the Company's Annual Report on
Form 10-K for the fiscal year ended September 30, 2012 and elsewhere in
that report and (ii) in other reports filed by the Company pursuant to
the Securities Exchange Act of 1934. You are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date they are made. Except to the extent required by law,
AmerisourceBergen does not undertake, and expressly disclaims, any duty
or obligation to publicly update any forward-looking statement after the
date of this report, whether as a result of new information, future
events, changes in assumptions or otherwise.
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
|
Three
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
September 30,
|
|
% of
|
|
September 30,
|
|
% of
|
|
%
|
|
|
2013
|
|
Revenue
|
|
2012
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$24,469,040
|
|
|
100.00
|
%
|
|
$19,064,443
|
|
|
100.00
|
%
|
|
28.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
23,901,488
|
|
|
|
|
18,350,626
|
|
|
|
|
30.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
567,552
|
|
|
2.32
|
%
|
|
713,817
|
|
|
3.74
|
%
|
|
-20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
358,303
|
|
|
1.46
|
%
|
|
329,138
|
|
|
1.73
|
%
|
|
8.9
|
%
|
Depreciation and amortization
|
|
42,496
|
|
|
0.17
|
%
|
|
38,494
|
|
|
0.20
|
%
|
|
10.4
|
%
|
Warrants (2) |
|
50,479
|
|
|
0.21
|
%
|
|
-
|
|
|
-
|
%
|
|
|
Employee severance, litigation and other, net (3) |
|
2,084
|
|
|
0.01
|
%
|
|
27,419
|
|
|
0.14
|
%
|
|
|
Total operating expenses
|
|
453,362
|
|
|
1.85
|
%
|
|
395,051
|
|
|
2.07
|
%
|
|
14.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
114,190
|
|
|
0.47
|
%
|
|
318,766
|
|
|
1.67
|
%
|
|
-64.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
(1,207
|
)
|
|
-
|
%
|
|
(910
|
)
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
18,672
|
|
|
0.08
|
%
|
|
23,137
|
|
|
0.12
|
%
|
|
-19.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
96,725
|
|
|
0.40
|
%
|
|
296,539
|
|
|
1.56
|
%
|
|
-67.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
46,164
|
|
|
0.19
|
%
|
|
106,090
|
|
|
0.56
|
%
|
|
-56.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
50,561
|
|
|
0.21
|
%
|
|
190,449
|
|
|
1.00
|
%
|
|
-73.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
462
|
|
|
|
|
(26,955
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$51,023
|
|
|
0.21
|
%
|
|
$163,494
|
|
|
0.86
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$0.22
|
|
|
|
|
$0.78
|
|
|
|
|
-71.8
|
%
|
Discontinued operations
|
|
-
|
|
|
|
|
(0.11
|
)
|
|
|
|
|
Total
|
|
$0.22
|
|
|
|
|
$0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$0.22
|
|
|
|
|
$0.77
|
|
|
|
|
-71.4
|
%
|
Discontinued operations
|
|
-
|
|
|
|
|
(0.11
|
)
|
|
|
|
|
Total
|
|
$0.22
|
|
|
|
|
$0.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
230,478
|
|
|
|
|
242,931
|
|
|
|
|
|
Diluted (4) |
|
235,127
|
|
|
|
|
246,485
|
|
|
|
|
-4.6
|
%
|
|
|
|
(1)
|
|
Includes a $1.1 million gain from antitrust litigation settlements
and a $154.0 million LIFO expense charge in the three months ended
September 30, 2013. Includes a $14.8 million gain from antitrust
litigation settlements and a $10.7 million LIFO credit in the
three months ended September 30, 2012.
|
(2)
|
|
Expense related to common stock warrants issued to Walgreens and
Alliance Boots in connection with the March 2013 transaction.
|
(3)
|
|
Includes $1.9 million of employee severance and other
restructuring costs and $0.2 million of deal-related transaction
costs in the three months ended September 30, 2013. Includes $27.0
million of employee severance and other restructuring costs and
$0.4 million of deal-related transaction costs in the three months
ended September 30, 2012.
|
(4)
|
|
Includes the dilutive effect of stock options, restricted stock,
and restricted stock units. The Warrants were anti-dilutive in the
three months ended September 30, 2013.
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
|
|
|
|
Fiscal
|
|
|
|
|
|
|
Year Ended
|
|
|
|
Year Ended
|
|
|
|
|
|
|
September 30,
|
|
% of
|
|
September 30,
|
|
% of
|
|
%
|
|
|
2013
|
|
Revenue
|
|
2012
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$87,959,167
|
|
|
100.00
|
%
|
|
$78,080,806
|
|
|
100.00
|
%
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
85,451,348
|
|
|
|
|
75,446,120
|
|
|
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
2,507,819
|
|
|
2.85
|
%
|
|
2,634,686
|
|
|
3.37
|
%
|
|
-4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
1,333,712
|
|
|
1.52
|
%
|
|
1,152,556
|
|
|
1.48
|
%
|
|
15.7
|
%
|
Depreciation and amortization
|
|
162,186
|
|
|
0.18
|
%
|
|
134,375
|
|
|
0.17
|
%
|
|
20.7
|
%
|
Warrants (2) |
|
90,055
|
|
|
0.10
|
%
|
|
-
|
|
|
-
|
%
|
|
|
Employee severance, litigation and other (3) |
|
23,467
|
|
|
0.03
|
%
|
|
44,140
|
|
|
0.06
|
%
|
|
|
Total operating expenses
|
|
1,609,420
|
|
|
1.83
|
%
|
|
1,331,071
|
|
|
1.70
|
%
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
898,399
|
|
|
1.02
|
%
|
|
1,303,615
|
|
|
1.67
|
%
|
|
-31.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other loss (income)
|
|
44
|
|
|
-
|
%
|
|
(5,827
|
)
|
|
-0.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
73,897
|
|
|
0.08
|
%
|
|
92,569
|
|
|
0.12
|
%
|
|
-20.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
824,458
|
|
|
0.94
|
%
|
|
1,216,873
|
|
|
1.56
|
%
|
|
-32.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
331,023
|
|
|
0.38
|
%
|
|
455,512
|
|
|
0.58
|
%
|
|
-27.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
493,435
|
|
|
0.56
|
%
|
|
761,361
|
|
|
0.98
|
%
|
|
-35.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
(59,728
|
)
|
|
|
|
(42,375
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$433,707
|
|
|
0.49
|
%
|
|
$718,986
|
|
|
0.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$2.14
|
|
|
|
|
$3.01
|
|
|
|
|
-28.9
|
%
|
Discontinued operations
|
|
(0.26
|
)
|
|
|
|
(0.17
|
)
|
|
|
|
|
Total
|
|
$1.88
|
|
|
|
|
$2.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$2.10
|
|
|
|
|
$2.96
|
|
|
|
|
-29.1
|
%
|
Discontinued operations
|
|
(0.25
|
)
|
|
|
|
(0.16
|
)
|
|
|
|
|
Rounding
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
|
|
|
Total
|
|
$1.84
|
|
|
|
|
$2.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
231,067
|
|
|
|
|
252,906
|
|
|
|
|
|
Diluted (4) |
|
235,345
|
|
|
|
|
256,903
|
|
|
|
|
-8.4
|
%
|
|
|
|
(1)
|
|
Includes a $22.9 million gain from antitrust litigation
settlements and a $277.0 million LIFO expense charge in the fiscal
year ended September 30, 2013. Includes a $14.8 million gain from
antitrust litigation settlements and a $0.7 million LIFO expense
charge in the fiscal year ended September 30, 2012.
|
(2)
|
|
Expense related to common stock warrants issued to Walgreens and
Alliance Boots in connection with the March 2013 transaction.
|
(3)
|
|
Includes $23.0 million of deal-related transaction costs,
primarily related to professional fees with respect to the
Walgreens / Alliance Boots transaction, and $0.5 million of
employee severance and other restructuring costs in the fiscal
year ended September 30, 2013. Includes $33.0 million of employee
severance and other restructuring costs and $11.1 million of
deal-related transaction costs in the fiscal year ended September
30, 2012.
|
(4)
|
|
Includes the dilutive effect of stock options, restricted stock,
and restricted stock units. The Warrants were anti-dilutive in the
fiscal year ended September 30, 2013.
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
(dollars in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
Adjusted
|
|
%
|
|
|
GAAP
|
|
LIFO Expense
|
|
Warrant Expense
|
|
Non-GAAP
|
|
Change (1)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$24,469,040
|
|
|
$-
|
|
|
$-
|
|
|
$24,469,040
|
|
|
28.3
|
%
|
Cost of goods sold
|
|
23,901,488
|
|
|
(153,972
|
)
|
|
-
|
|
|
23,747,516
|
|
|
29.4
|
%
|
Gross profit
|
|
567,552
|
|
|
153,972
|
|
|
-
|
|
|
721,524
|
|
|
1.1
|
%
|
Operating expenses
|
|
453,362
|
|
|
-
|
|
|
(50,479
|
)
|
|
402,883
|
|
|
2.0
|
%
|
Operating income
|
|
114,190
|
|
|
153,972
|
|
|
50,479
|
|
|
318,641
|
|
|
-
|
%
|
Other income
|
|
(1,207
|
)
|
|
-
|
|
|
-
|
|
|
(1,207
|
)
|
|
|
Interest expense, net
|
|
18,672
|
|
|
-
|
|
|
-
|
|
|
18,672
|
|
|
-19.3
|
%
|
Income before income taxes
|
|
96,725
|
|
|
153,972
|
|
|
50,479
|
|
|
301,176
|
|
|
1.6
|
%
|
Income taxes (2) |
|
46,164
|
|
|
59,414
|
|
|
9,471
|
|
|
115,049
|
|
|
8.4
|
%
|
Income from continuing operations
|
|
$50,561
|
|
|
$94,558
|
|
|
$41,008
|
|
|
$186,127
|
|
|
-2.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$0.22
|
|
|
$0.40
|
|
|
$0.17
|
|
|
$0.79
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
235,127
|
|
|
235,127
|
|
|
235,127
|
|
|
235,127
|
|
|
-4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30, 2013
|
|
|
|
|
|
|
|
|
Adjusted
|
|
%
|
|
|
GAAP
|
|
LIFO Expense
|
|
Warrant Expense
|
|
Non-GAAP
|
|
Change (1)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$87,959,167
|
|
|
$-
|
|
|
$-
|
|
|
$87,959,167
|
|
|
12.7
|
%
|
Cost of goods sold
|
|
85,451,348
|
|
|
(277,001
|
)
|
|
-
|
|
|
85,174,347
|
|
|
12.9
|
%
|
Gross profit
|
|
2,507,819
|
|
|
277,001
|
|
|
-
|
|
|
2,784,820
|
|
|
5.7
|
%
|
Operating expenses
|
|
1,609,420
|
|
|
-
|
|
|
(90,055
|
)
|
|
1,519,365
|
|
|
14.1
|
%
|
Operating income
|
|
898,399
|
|
|
277,001
|
|
|
90,055
|
|
|
1,265,455
|
|
|
-2.9
|
%
|
Other loss
|
|
44
|
|
|
-
|
|
|
-
|
|
|
44
|
|
|
|
Interest expense, net
|
|
73,897
|
|
|
-
|
|
|
-
|
|
|
73,897
|
|
|
-20.2
|
%
|
Income before income taxes
|
|
824,458
|
|
|
277,001
|
|
|
90,055
|
|
|
1,191,514
|
|
|
-2.1
|
%
|
Income taxes (2) |
|
331,023
|
|
|
107,227
|
|
|
13,738
|
|
|
451,988
|
|
|
-0.8
|
%
|
Income from continuing operations
|
|
$493,435
|
|
|
$169,774
|
|
|
$76,317
|
|
|
$739,526
|
|
|
-2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$2.10
|
|
|
$0.72
|
|
|
$0.32
|
|
|
$3.14
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
235,345
|
|
|
235,345
|
|
|
235,345
|
|
|
235,345
|
|
|
-8.4
|
%
|
|
Note - No adjustments have been made to prior year GAAP continuing
operations for the three and twelve month periods ended September
30, 2012.
|
|
|
|
(1)
|
|
Percentage change in comparison to prior year operating results,
which do not include any non-GAAP adjustments.
|
|
|
|
(2)
|
|
The income tax rate applicable to warrant expense is lower than
our normal income tax rate as a portion of the warrant expense is
not tax deductible. The income tax rate on warrant expense will
vary by quarter depending upon the expected quarterly changes in
the fair value of the Warrants.
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
2013
|
|
2012
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$1,231,006
|
|
$1,066,608
|
Accounts receivable, net
|
|
6,051,920
|
|
3,784,619
|
Merchandise inventories
|
|
6,981,494
|
|
5,472,010
|
Prepaid expenses and other
|
|
129,231
|
|
72,374
|
Assets held for sale
|
|
-
|
|
662,853
|
Total current assets
|
|
14,393,651
|
|
11,058,464
|
|
|
|
|
|
Property and equipment, net
|
|
803,561
|
|
743,684
|
Other long-term assets
|
|
3,721,426
|
|
3,640,108
|
|
|
|
|
|
Total assets
|
|
$18,918,638
|
|
$15,442,256
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$13,335,792
|
|
$9,492,589
|
Other current liabilities
|
|
1,534,843
|
|
1,533,291
|
Liabilities held for sale
|
|
-
|
|
239,706
|
Total current liabilities
|
|
14,870,635
|
|
11,265,586
|
|
|
|
|
|
Long-term debt
|
|
1,396,606
|
|
1,395,931
|
|
|
|
|
|
Other long-term liabilities
|
|
331,652
|
|
325,897
|
|
|
|
|
|
Stockholders' equity
|
|
2,319,745
|
|
2,454,842
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$18,918,638
|
|
$15,442,256
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Fiscal
|
|
Fiscal
|
|
|
Year Ended
|
|
Year Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
Net income
|
|
$433,707
|
|
|
$718,986
|
|
Loss from discontinued operations
|
|
59,728
|
|
|
42,375
|
|
Income from continuing operations
|
|
493,435
|
|
|
761,361
|
|
Adjustments to reconcile income from continuing operations to net
cash provided by operating activities
|
|
346,541
|
|
|
241,621
|
|
Changes in operating assets and liabilities
|
|
(137,988
|
)
|
|
413,975
|
|
Net cash provided by operating activities - continuing operations
|
|
701,988
|
|
|
1,416,957
|
|
Net cash provided by (used in) operating activities - discontinued
operations
|
|
86,137
|
|
|
(111,508
|
)
|
Net cash provided by operating activities
|
|
788,125
|
|
|
1,305,449
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(202,450
|
)
|
|
(133,292
|
)
|
Proceeds from sales of businesses
|
|
329,980
|
|
|
-
|
|
Cost of acquired companies, net of cash acquired
|
|
-
|
|
|
(775,670
|
)
|
Other
|
|
1,402
|
|
|
23
|
|
Net cash provided by (used in) investing activities - continuing
operations
|
|
128,932
|
|
|
(908,939
|
)
|
Net cash used in investing activities - discontinued operations
|
|
(11,672
|
)
|
|
(39,010
|
)
|
Net cash provided by (used in) investing activities
|
|
117,260
|
|
|
(947,949
|
)
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
Net borrowings
|
|
-
|
|
|
51,964
|
|
Purchases of common stock
|
|
(484,176
|
)
|
|
(1,162,246
|
)
|
Exercises of stock options
|
|
155,713
|
|
|
115,224
|
|
Cash dividends on common stock
|
|
(195,716
|
)
|
|
(132,760
|
)
|
Purchases of capped call options
|
|
(157,295
|
)
|
|
-
|
|
Other
|
|
(8,975
|
)
|
|
(10,658
|
)
|
Net cash used in financing activities - continuing operations
|
|
(690,449
|
)
|
|
(1,138,476
|
)
|
Net cash (used in) provided by financing activities - discontinued
operations
|
|
(50,538
|
)
|
|
21,594
|
|
Net cash used in financing activities
|
|
(740,987
|
)
|
|
(1,116,882
|
)
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
164,398
|
|
|
(759,382
|
)
|
|
|
|
|
|
Cash and cash equivalents at beginning of year
|
|
1,066,608
|
|
|
1,825,990
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
|
$1,231,006
|
|
|
$1,066,608
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Revenue
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$24,087,482
|
|
|
$18,696,821
|
|
|
29
|
%
|
|
Other (1) |
|
|
433,565
|
|
|
421,566
|
|
|
3
|
%
|
|
Intersegment eliminations
|
|
|
(52,007
|
)
|
|
(53,944
|
)
|
|
-4
|
%
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$24,469,040
|
|
|
$19,064,443
|
|
|
28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Operating Income
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$144,856
|
|
|
$328,572
|
|
|
-56
|
%
|
|
LIFO
|
|
|
153,972
|
|
|
-
|
|
|
N/M
|
|
|
Adjusted Pharmaceutical Distribution (2) |
|
|
298,828
|
|
|
328,572
|
|
|
-9
|
%
|
|
Other (1) |
|
|
21,897
|
|
|
17,613
|
|
|
24
|
%
|
|
LIFO
|
|
|
(153,972
|
)
|
|
-
|
|
|
N/M
|
|
|
Warrants
|
|
|
(50,479
|
)
|
|
-
|
|
|
N/M
|
|
|
Employee severance, litigation and other
|
|
|
(2,084
|
)
|
|
(27,419
|
)
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$114,190
|
|
|
$318,766
|
|
|
-64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2013
|
|
Three Months Ended September 30, 2012
|
Percentages of revenue:
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP (3) |
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1.91
|
%
|
|
2.55
|
%
|
|
|
3.27
|
%
|
Operating expenses
|
|
|
1.31
|
%
|
|
1.31
|
%
|
|
|
1.51
|
%
|
Operating income
|
|
|
0.60
|
%
|
|
1.24
|
%
|
|
|
1.76
|
%
|
|
|
|
|
|
|
|
|
|
Other (1) |
|
|
|
|
|
|
|
|
Gross profit
|
|
|
24.90
|
%
|
|
N/A
|
|
|
|
24.30
|
%
|
Operating expenses
|
|
|
19.85
|
%
|
|
N/A
|
|
|
|
20.12
|
%
|
Operating income
|
|
|
5.05
|
%
|
|
N/A
|
|
|
|
4.18
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.32
|
%
|
|
2.95
|
%
|
|
|
3.74
|
%
|
Operating expenses
|
|
|
1.85
|
%
|
|
1.65
|
%
|
|
|
2.07
|
%
|
Operating income
|
|
|
0.47
|
%
|
|
1.30
|
%
|
|
|
1.67
|
%
|
|
(1) Other is comprised of the AmerisourceBergen Consulting Services
("ABCS") operating segment and the World Courier Group, Inc.
operating segment.
|
|
(2) Includes a $1.1 million gain from antitrust litigation
settlements in the three months ended September 30, 2013. Includes a
$14.8 million gain from antitrust litigation settlements and a $10.7
million LIFO credit in the three months ended September 30, 2012.
|
|
(3) Margin percentages in the prior year period do not include any
non-GAAP adjustments.
|
|
|
AMERISOURCEBERGEN CORPORATION
|
|
SUMMARY SEGMENT INFORMATION
|
|
(dollars in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30,
|
|
Revenue
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$86,387,950
|
|
|
$76,940,544
|
|
|
12
|
%
|
|
Other (1) |
|
|
1,763,549
|
|
|
1,324,744
|
|
|
33
|
%
|
|
Intersegment eliminations
|
|
|
(192,332
|
)
|
|
(184,482
|
)
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$87,959,167
|
|
|
$78,080,806
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30,
|
|
Operating Income
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$919,455
|
|
|
$1,275,636
|
|
|
-28
|
%
|
|
LIFO
|
|
|
277,001
|
|
|
-
|
|
|
N/M
|
|
|
Adjusted Pharmaceutical Distribution (2) |
|
|
1,196,456
|
|
|
1,275,636
|
|
|
-6
|
%
|
|
Other (1) |
|
|
92,466
|
|
|
72,119
|
|
|
28
|
%
|
|
LIFO
|
|
|
(277,001
|
)
|
|
-
|
|
|
N/M
|
|
|
Warrants
|
|
|
(90,055
|
)
|
|
-
|
|
|
N/M
|
|
|
Employee severance, litigation and other
|
|
|
(23,467
|
)
|
|
(44,140
|
)
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$898,399
|
|
|
$1,303,615
|
|
|
-31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30, 2013
|
|
Fiscal Year Ended September 30, 2012
|
Percentages of revenue:
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP (3) |
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.37
|
%
|
|
2.69
|
%
|
|
|
3.07
|
%
|
Operating expenses
|
|
|
1.31
|
%
|
|
1.31
|
%
|
|
|
1.41
|
%
|
Operating income
|
|
|
1.06
|
%
|
|
1.38
|
%
|
|
|
1.66
|
%
|
|
|
|
|
|
|
|
|
|
Other (1) |
|
|
|
|
|
|
|
|
Gross profit
|
|
|
25.95
|
%
|
|
N/A
|
|
|
|
20.49
|
%
|
Operating expenses
|
|
|
20.71
|
%
|
|
N/A
|
|
|
|
15.04
|
%
|
Operating income
|
|
|
5.24
|
%
|
|
N/A
|
|
|
|
5.44
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.85
|
%
|
|
3.17
|
%
|
|
|
3.37
|
%
|
Operating expenses
|
|
|
1.83
|
%
|
|
1.73
|
%
|
|
|
1.70
|
%
|
Operating income
|
|
|
1.02
|
%
|
|
1.44
|
%
|
|
|
1.67
|
%
|
|
(1) Other for the fiscal year ended September 30, 2013 is comprised
of the AmerisourceBergen Consulting Services ("ABCS") operating
segment and the World Courier Group, Inc. operating segment. Other
for the fiscal year ended September 30, 2012 is comprised of the
ABCS operating segment and the World Courier Group, Inc. operating
segment (beginning May 1, 2012).
|
|
(2) Includes a $22.9 million gain from antitrust litigation
settlements in the fiscal year ended September 30, 2013. Includes a
$14.8 million gain from antitrust litigation settlements and a $0.7
million LIFO expense charge in the fiscal year ended September 30,
2012.
|
|
(3) Margin percentages in the prior year period do not include any
non-GAAP adjustments.
|
Source: AmerisourceBergen Corporation
AmerisourceBergen Corporation
Barbara Brungess,
610-727-7199
bbrungess@amerisourcebergen.com