Company Now Expects Fiscal Year 2013 Adjusted Diluted EPS from
Continuing Operations in the Range of $3.06 to $3.11
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Jul. 24, 2013--
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its
fiscal year third quarter ended June 30, 2013, adjusted diluted earnings
per share from continuing operations were $0.73, which excludes LIFO
expense of $122.1 million and warrant expense of $35.8 million. On the
basis of U.S. generally accepted accounting principles (GAAP), diluted
earnings per share from continuing operations were $0.27 in the quarter.
Revenue in the quarter was $21.9 billion, up 13.3 percent. The Company
also narrowed the range of its expectations for the full fiscal year
2013 adjusted diluted earnings per share from continuing operations to
$3.06 to $3.11 from its previous range of $3.04 to $3.14.
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 June quarter and the
first nine months of fiscal 2013. Fiscal 2012 results are presented on a
GAAP basis only, and include a LIFO expense of $4.7 million in the June
quarter, and $11.4 million for the first nine months of fiscal 2012.
There was no warrant expense in fiscal 2012.
“In our June quarter, AmerisourceBergen delivered solid performance and
made significant progress on strategic initiatives,” said Steven H.
Collis, AmerisourceBergen President and Chief Executive Officer. “We
completed two previously announced divestitures, obtained the required
regulatory approvals on certain aspects of our new strategic long-term
relationship with Walgreen Co. and Alliance Boots GmbH, and have begun
to prepare our network for the onboarding of the new Walgreens
distribution contract in September. In addition, we recently enhanced
our financial flexibility by increasing the borrowing capacity of our
revolver and our securitization programs. Not only are we on track to
meet our objectives for the full fiscal year, but we have taken
important steps to strengthen our ability to generate sustainable long
term growth that benefits all of our stakeholders.”
The comments below compare adjusted results for fiscal 2013 to GAAP
results for fiscal 2012.
Summary of Quarterly Results
-
Revenue: Revenue was $21.9 billion in the
third quarter of fiscal 2013, a 13.3 percent increase over the same
quarter in the previous fiscal year, driven by a 16 percent increase
in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 5 percent
increase in AmerisourceBergen Specialty Group (ABSG) revenue.
-
Gross Profit: Gross profit in the fiscal
2013 third quarter was $684.5 million, a 2.5 percent increase over the
year-ago same period, driven by contributions from one incremental
month of World Courier results in the third quarter of fiscal 2013,
offset by lower contributions from our Pharmaceutical Distribution
Segment. The World Courier acquisition anniversaried in May 2013.
Gross profit as a percentage of revenue decreased 34 basis points to
3.12 percent over the same period in the previous year.
-
Operating Expenses: For the third quarter
of fiscal 2013, operating expenses were $392.0 million compared with
$343.5 million in the prior fiscal year’s third quarter, a 14.1
percent increase. The increase in operating expenses was due primarily
to World Courier, and deal related transaction costs, primarily
related to professional fees relating to the Walgreens and Alliance
Boots transaction. In the fiscal third quarter of 2013, operating
expenses as a percentage of revenue were 1.79 percent, up 1 basis
point from the same period in the previous fiscal year.
-
Operating Income: In the fiscal 2013
third quarter, operating income decreased 9.8 percent to $292.5
million, due to lower gross profit in our Pharmaceutical Distribution
segment, and deal related transaction costs. Operating income as a
percentage of revenue decreased 34 basis points to 1.34 percent in the
period compared with the previous year’s third quarter.
-
Tax Rate: The adjusted effective tax rate
for the third quarter of fiscal 2013 was 37.4 percent, compared to
37.7 percent in the previous fiscal year’s third quarter.
-
Earnings Per Share: Adjusted diluted
earnings per share from continuing operations were down 1.4 percent to
$0.73 in the third quarter of fiscal 2013 compared to $0.74 in the
previous fiscal year’s third quarter. While income from continuing
operations decreased 9.9 percent, adjusted diluted earnings per share
only decreased 1.4 percent due to the 7.8 percent reduction in diluted
weighted average shares outstanding.
-
Shares Outstanding: Diluted weighted
average shares outstanding for the third quarter of fiscal year 2013
were 235.7 million, down 20.1 million shares from the previous fiscal
year’s third quarter due primarily to share repurchases, net of option
exercises over the last twelve months.
Segment Discussion
The Pharmaceutical Distribution segment includes both AmerisourceBergen
Drug Corporation and AmerisourceBergen Specialty Group. Other includes
AmerisourceBergen Consulting Services (ABCS) and World Courier. The
results of operations from AndersonBrecon and AmerisourceBergen Canada
Corporation, both of which were sold in the third quarter of fiscal
2013, are reported as discontinued operations.
Pharmaceutical Distribution Segment
In the third fiscal quarter of 2013, Pharmaceutical Distribution
revenues were $21.5 billion, an increase of 13 percent compared to the
same quarter in the prior year. ABDC revenues increased 16 percent, due
primarily to the previously announced contract with our large PBM
customer, and a smaller negative impact from brand to generic
conversions. ABSG revenues increased 5 percent, which was driven by
strong performance in our blood products, vaccine and physician office
distribution businesses partially offset by a revenue decline in our
oncology business. Intrasegment revenues between ABDC and ABSG have been
eliminated in the presentation of total Pharmaceutical Distribution
revenue. Total intrasegment revenues were $810.1 million and $673.3
million in the quarters ended June 30, 2013 and 2012, respectively.
Operating income of $287.2 million in the June quarter of fiscal 2013
decreased 7 percent compared to the same period in the previous year
driven by a 28 basis point decline in operating margin due to a shift in
customer mix towards lower margin business in both ABDC and ABSG,
disappointing performance in our oncology business, and fewer new
generic launches to offset those impacts.
Other
Revenues in Other increased 17% and were $466.7 million in the third
quarter of fiscal 2013, including significant contributions from an
incremental month of World Courier operating results compared to the
prior year. Gross profit and expenses also increased compared to the
prior year due primarily to contributions from World Courier. Operating
income increased significantly to $25.1 million in the third quarter of
2013, with the majority of the increase provided by improved World
Courier performance.
Fiscal Year 2013 Expectations
“Looking ahead, the Company now expects adjusted diluted earnings per
share from continuing operations in fiscal year 2013 to be in the range
of $3.06 to $3.11,” said Steven H. Collis, AmerisourceBergen President
and Chief Executive Officer. “We continue to expect revenue growth in
the 11 percent to 13 percent range; operating income decline in the 3
percent to 5 percent range; an operating margin decline in the range of
24 to 29 basis points; and free cash flow in the range of $100 million
to $200 million, which includes capital expenditures of approximately
$240 million. We have repurchased $401 million in shares through June
30, 2013, in line with our expectations for the full fiscal year.”
Conference Call
The Company will host a conference call to discuss the results at 11:00
a.m. Eastern Time on July 24, 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) 288-0329. No access
code is required for the call. 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 297735.
About AmerisourceBergen
AmerisourceBergen is one of the world's largest pharmaceutical services
companies serving the United States, Canada and selected global markets.
Servicing both healthcare providers and pharmaceutical manufacturers 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 niche
premium logistics and pharmaceutical packaging to reimbursement and
pharmaceutical consulting services. With over $80 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.
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; changes in customer mix; customer
delinquencies, defaults or insolvencies; supplier defaults or
insolvencies; changes in 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; 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; 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.
|
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|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
|
Three
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
June 30,
|
|
% of
|
|
June 30,
|
|
% of
|
|
%
|
|
|
2013
|
|
Revenue
|
|
2012
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$21,906,648
|
|
100.00
|
%
|
|
$19,326,807
|
|
|
100.00
|
%
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
21,344,198
|
|
|
|
18,658,941
|
|
|
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
562,450
|
|
2.57
|
%
|
|
667,866
|
|
|
3.46
|
%
|
|
-15.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
331,173
|
|
1.51
|
%
|
|
303,812
|
|
|
1.57
|
%
|
|
9.0
|
%
|
Depreciation and amortization
|
|
41,138
|
|
0.19
|
%
|
|
35,533
|
|
|
0.18
|
%
|
|
15.8
|
%
|
Warrants (2) |
|
35,815
|
|
0.16
|
%
|
|
-
|
|
|
-
|
%
|
|
|
Employee severance, litigation and other, net (3) |
|
19,678
|
|
0.09
|
%
|
|
4,135
|
|
|
0.02
|
%
|
|
|
Total operating expenses
|
|
427,804
|
|
1.95
|
%
|
|
343,480
|
|
|
1.78
|
%
|
|
24.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
134,646
|
|
0.61
|
%
|
|
324,386
|
|
|
1.68
|
%
|
|
-58.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other loss (income)
|
|
525
|
|
-
|
%
|
|
(4,785
|
)
|
|
-0.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
18,190
|
|
0.08
|
%
|
|
23,771
|
|
|
0.12
|
%
|
|
-23.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
115,931
|
|
0.53
|
%
|
|
305,400
|
|
|
1.58
|
%
|
|
-62.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
51,821
|
|
0.24
|
%
|
|
115,223
|
|
|
0.60
|
%
|
|
-55.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
64,110
|
|
0.29
|
%
|
|
190,177
|
|
|
0.98
|
%
|
|
-66.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
104,329
|
|
|
|
(8,906
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$168,439
|
|
0.77
|
%
|
|
$181,271
|
|
|
0.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$0.28
|
|
|
|
$0.75
|
|
|
|
|
-62.7
|
%
|
Discontinued operations
|
|
0.45
|
|
|
|
(0.04
|
)
|
|
|
|
|
Rounding
|
|
-
|
|
|
|
0.01
|
|
|
|
|
|
Total
|
|
$0.73
|
|
|
|
$0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$0.27
|
|
|
|
$0.74
|
|
|
|
|
-63.5
|
%
|
Discontinued operations
|
|
0.44
|
|
|
|
(0.03
|
)
|
|
|
|
|
Total
|
|
$0.71
|
|
|
|
$0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
231,002
|
|
|
|
252,116
|
|
|
|
|
|
Diluted (4) |
|
235,669
|
|
|
|
255,725
|
|
|
|
|
-7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $6.0 million gain from antitrust litigation settlements
and a $122.1 million LIFO expense charge in the three months ended
June 30, 2013. Includes a $4.7 million LIFO expense charge in the
three months ended June 30, 2012.
|
(2)
|
|
Expense related to common stock warrants issued to Walgreens and
Alliance Boots in connection with the previously announced
transaction.
|
(3)
|
|
Includes $1.6 million of restructuring costs and $18.1 million of
deal-related transaction costs, primarily related to professional
fees with respect to the Walgreens / Alliance Boots transaction,
in the three months ended June 30, 2013. Includes $4.1 million of
deal-related transaction costs in the three months ended June 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 June 30, 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
|
|
|
|
Nine
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
June 30,
|
|
% of
|
|
June 30,
|
|
% of
|
|
%
|
|
|
2013
|
|
Revenue
|
|
2012
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$63,490,127
|
|
|
100.00
|
%
|
|
$59,016,363
|
|
|
100.00
|
%
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
61,549,860
|
|
|
|
|
57,095,494
|
|
|
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
1,940,267
|
|
|
3.06
|
%
|
|
1,920,869
|
|
|
3.25
|
%
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
975,409
|
|
|
1.54
|
%
|
|
823,418
|
|
|
1.40
|
%
|
|
18.5
|
%
|
Depreciation and amortization
|
|
119,690
|
|
|
0.19
|
%
|
|
95,881
|
|
|
0.16
|
%
|
|
24.8
|
%
|
Warrants (2) |
|
39,576
|
|
|
0.06
|
%
|
|
-
|
|
|
-
|
%
|
|
|
Employee severance, litigation and other (3) |
|
21,383
|
|
|
0.03
|
%
|
|
16,721
|
|
|
0.03
|
%
|
|
|
Total operating expenses
|
|
1,156,058
|
|
|
1.82
|
%
|
|
936,020
|
|
|
1.59
|
%
|
|
23.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
784,209
|
|
|
1.24
|
%
|
|
984,849
|
|
|
1.67
|
%
|
|
-20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other loss (income)
|
|
1,251
|
|
|
-
|
%
|
|
(4,917
|
)
|
|
-0.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
55,225
|
|
|
0.09
|
%
|
|
69,432
|
|
|
0.12
|
%
|
|
-20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
727,733
|
|
|
1.15
|
%
|
|
920,334
|
|
|
1.56
|
%
|
|
-20.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
284,859
|
|
|
0.45
|
%
|
|
349,422
|
|
|
0.59
|
%
|
|
-18.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
442,874
|
|
|
0.70
|
%
|
|
570,912
|
|
|
0.97
|
%
|
|
-22.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
(60,190
|
)
|
|
|
|
(15,420
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$382,684
|
|
|
0.60
|
%
|
|
$555,492
|
|
|
0.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$1.91
|
|
|
|
|
$2.23
|
|
|
|
|
-14.3
|
%
|
Discontinued operations
|
|
(0.26
|
)
|
|
|
|
(0.06
|
)
|
|
|
|
|
Total
|
|
$1.65
|
|
|
|
|
$2.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$1.88
|
|
|
|
|
$2.19
|
|
|
|
|
-14.2
|
%
|
Discontinued operations
|
|
(0.26
|
)
|
|
|
|
(0.06
|
)
|
|
|
|
|
Rounding
|
|
0.01
|
|
|
|
|
-
|
|
|
|
|
|
Total
|
|
$1.63
|
|
|
|
|
$2.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
231,273
|
|
|
|
|
256,260
|
|
|
|
|
|
Diluted (4) |
|
235,428
|
|
|
|
|
260,404
|
|
|
|
|
-9.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $21.7 million gain from antitrust litigation
settlements and a $123.0 million LIFO expense charge in the nine
months ended June 30, 2013. Includes a $11.4 million LIFO expense
charge in the nine months ended June 30, 2012.
|
(2)
|
|
Expense related to common stock warrants issued to Walgreens and
Alliance Boots in connection with the previously announced
transaction.
|
(3)
|
|
Includes $22.8 million of deal-related transaction costs,
primarily related to professional fees with respect to the
Walgreens / Alliance Boots transaction, and the net reversal of
$(1.4) million of employee severance and other restructuring costs
in the nine months ended June 30, 2013. Includes $6.1 million of
employee severance costs and $10.6 million of deal-related
transaction costs in the nine months ended June 30, 2012.
|
(4)
|
|
Includes the dilutive effect of stock options, restricted stock,
and restricted stock units. The Warrants were anti-dilutive in the
nine months ended June 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 June 30, 2013
|
|
|
|
|
|
|
|
|
Adjusted
|
|
%
|
|
|
GAAP
|
|
LIFO Expense
|
|
Warrant Expense
|
|
Non-GAAP
|
|
Change (1)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$21,906,648
|
|
$-
|
|
|
$-
|
|
|
$21,906,648
|
|
13.3
|
%
|
Cost of goods sold
|
|
21,344,198
|
|
(122,077
|
)
|
|
-
|
|
|
21,222,121
|
|
13.7
|
%
|
Gross profit
|
|
562,450
|
|
122,077
|
|
|
-
|
|
|
684,527
|
|
2.5
|
%
|
Operating expenses
|
|
427,804
|
|
-
|
|
|
(35,815
|
)
|
|
391,989
|
|
14.1
|
%
|
Operating income
|
|
134,646
|
|
122,077
|
|
|
35,815
|
|
|
292,538
|
|
-9.8
|
%
|
Other loss
|
|
525
|
|
-
|
|
|
-
|
|
|
525
|
|
|
Interest expense, net
|
|
18,190
|
|
-
|
|
|
-
|
|
|
18,190
|
|
-23.5
|
%
|
Income before income taxes
|
|
115,931
|
|
122,077
|
|
|
35,815
|
|
|
273,823
|
|
-10.3
|
%
|
Income taxes (2) |
|
51,821
|
|
47,451
|
|
|
3,137
|
|
|
102,409
|
|
-11.1
|
%
|
Income from continuing operations
|
|
$64,110
|
|
$74,626
|
|
|
$32,678
|
|
|
$171,414
|
|
-9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$0.27
|
|
$0.32
|
|
|
$0.14
|
|
|
$0.73
|
|
-1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
235,669
|
|
235,669
|
|
|
235,669
|
|
|
235,669
|
|
-7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
Adjusted
|
|
%
|
|
|
GAAP
|
|
LIFO Expense
|
|
Warrant Expense
|
|
Non-GAAP
|
|
Change (1)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$63,490,127
|
|
$-
|
|
|
$-
|
|
|
$63,490,127
|
|
7.6
|
%
|
Cost of goods sold
|
|
61,549,860
|
|
(123,029
|
)
|
|
-
|
|
|
61,426,831
|
|
7.6
|
%
|
Gross profit
|
|
1,940,267
|
|
123,029
|
|
|
-
|
|
|
2,063,296
|
|
7.4
|
%
|
Operating expenses
|
|
1,156,058
|
|
-
|
|
|
(39,576
|
)
|
|
1,116,482
|
|
19.3
|
%
|
Operating income
|
|
784,209
|
|
123,029
|
|
|
39,576
|
|
|
946,814
|
|
-3.9
|
%
|
Other loss
|
|
1,251
|
|
-
|
|
|
-
|
|
|
1,251
|
|
|
Interest expense, net
|
|
55,225
|
|
-
|
|
|
-
|
|
|
55,225
|
|
-20.5
|
%
|
Income before income taxes
|
|
727,733
|
|
123,029
|
|
|
39,576
|
|
|
890,338
|
|
-3.3
|
%
|
Income taxes (2) |
|
284,859
|
|
47,813
|
|
|
4,267
|
|
|
336,939
|
|
-3.6
|
%
|
Income from continuing operations
|
|
$442,874
|
|
$75,216
|
|
|
$35,309
|
|
|
$553,399
|
|
-3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$1.88
|
|
$0.32
|
|
|
$0.15
|
|
|
$2.35
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
235,428
|
|
235,428
|
|
|
235,428
|
|
|
235,428
|
|
-9.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Note - No adjustments have been made to prior year GAAP continuing
operations for the three and nine month periods ended June 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
|
|
|
|
|
|
|
June 30,
|
|
September 30,
|
|
|
2013
|
|
2012
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$1,567,585
|
|
$1,066,608
|
Accounts receivable, net
|
|
4,585,488
|
|
3,784,619
|
Merchandise inventories
|
|
5,895,089
|
|
5,472,010
|
Prepaid expenses and other
|
|
90,911
|
|
72,374
|
Assets held for sale
|
|
-
|
|
662,853
|
Total current assets
|
|
12,139,073
|
|
11,058,464
|
|
|
|
|
|
Property and equipment, net
|
|
777,091
|
|
743,684
|
Other long-term assets
|
|
3,663,168
|
|
3,640,108
|
|
|
|
|
|
Total assets
|
|
$16,579,332
|
|
$15,442,256
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$11,009,224
|
|
$9,492,589
|
Other current liabilities
|
|
1,432,424
|
|
1,533,291
|
Liabilities held for sale
|
|
-
|
|
239,706
|
Total current liabilities
|
|
12,441,648
|
|
11,265,586
|
|
|
|
|
|
Long-term debt
|
|
1,396,439
|
|
1,395,931
|
|
|
|
|
|
Other long-term liabilities
|
|
323,051
|
|
325,897
|
|
|
|
|
|
Stockholders' equity
|
|
2,418,194
|
|
2,454,842
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$16,579,332
|
|
$15,442,256
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Nine
|
|
Nine
|
|
|
Months Ended
|
|
Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
Net income
|
|
$382,684
|
|
|
$555,492
|
|
Loss from discontinued operations
|
|
60,190
|
|
|
15,420
|
|
Income from continuing operations
|
|
442,874
|
|
|
570,912
|
|
Adjustments to reconcile income from continuing operations to net
cash provided by operating activities
|
|
207,560
|
|
|
181,947
|
|
Changes in operating assets and liabilities
|
|
84,605
|
|
|
138,284
|
|
Net cash provided by operating activities - continuing operations
|
|
735,039
|
|
|
891,143
|
|
Net cash provided by (used in) operating activities - discontinued
operations
|
|
84,025
|
|
|
(131,088
|
)
|
Net cash provided by operating activities
|
|
819,064
|
|
|
760,055
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(137,927
|
)
|
|
(92,881
|
)
|
Proceeds from sales of businesses
|
|
331,630
|
|
|
-
|
|
Cost of acquired companies, net of cash acquired
|
|
-
|
|
|
(778,755
|
)
|
Other
|
|
523
|
|
|
23
|
|
Net cash provided by (used in) investing activities - continuing
operations
|
|
194,226
|
|
|
(871,613
|
)
|
Net cash used in investing activities - discontinued operations
|
|
(11,672
|
)
|
|
(34,712
|
)
|
Net cash provided by (used in) investing activities
|
|
182,554
|
|
|
(906,325
|
)
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
Net borrowings
|
|
-
|
|
|
444,290
|
|
Purchases of common stock
|
|
(401,091
|
)
|
|
(514,258
|
)
|
Exercises of stock options
|
|
132,766
|
|
|
91,092
|
|
Cash dividends on common stock
|
|
(147,005
|
)
|
|
(100,081
|
)
|
Other
|
|
(34,773
|
)
|
|
(10,528
|
)
|
Net cash used in financing activities - continuing operations
|
|
(450,103
|
)
|
|
(89,485
|
)
|
Net cash (used in) provided by financing activities - discontinued
operations
|
|
(50,538
|
)
|
|
65,513
|
|
Net cash used in financing activities
|
|
(500,641
|
)
|
|
(23,972
|
)
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
500,977
|
|
|
(170,242
|
)
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
1,066,608
|
|
|
1,825,990
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$1,567,585
|
|
|
$1,655,748
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Revenue
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$21,490,543
|
|
|
$18,985,491
|
|
|
13%
|
|
Other (1) |
|
466,710
|
|
|
397,452
|
|
|
17%
|
|
Intersegment eliminations
|
|
(50,605
|
)
|
|
(56,136
|
)
|
|
-10%
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$21,906,648
|
|
|
$19,326,807
|
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Operating Income
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$165,079
|
|
|
$307,345
|
|
|
-46%
|
|
LIFO
|
|
122,077
|
|
|
-
|
|
|
N/M
|
|
Adjusted Pharmaceutical Distribution
|
|
287,156
|
|
|
307,345
|
|
|
-7%
|
|
Other (1) |
|
25,060
|
|
|
21,176
|
|
|
18%
|
|
LIFO
|
|
(122,077
|
)
|
|
-
|
|
|
N/M
|
|
Warrants
|
|
(35,815
|
)
|
|
-
|
|
|
N/M
|
|
Employee severance, litigation and other
|
|
(19,678
|
)
|
|
(4,135
|
)
|
|
N/M
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$134,646
|
|
|
$324,386
|
|
|
-58%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2013
|
|
Three Months Ended June 30, 2012
|
Percentages of revenue:
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP (2) |
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
2.06
|
%
|
|
2.63
|
%
|
|
3.05
|
%
|
Operating expenses
|
|
1.30
|
%
|
|
1.30
|
%
|
|
1.44
|
%
|
Operating income
|
|
0.77
|
%
|
|
1.34
|
%
|
|
1.62
|
%
|
|
|
|
|
|
|
|
Other (1) |
|
|
|
|
|
|
Gross profit
|
|
25.51
|
%
|
|
N/A
|
|
|
22.15
|
%
|
Operating expenses
|
|
20.14
|
%
|
|
N/A
|
|
|
16.82
|
%
|
Operating income
|
|
5.37
|
%
|
|
N/A
|
|
|
5.33
|
%
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation
|
|
|
|
|
|
|
Gross profit
|
|
2.57
|
%
|
|
3.12
|
%
|
|
3.46
|
%
|
Operating expenses
|
|
1.95
|
%
|
|
1.79
|
%
|
|
1.78
|
%
|
Operating income
|
|
0.61
|
%
|
|
1.34
|
%
|
|
1.68
|
%
|
|
|
|
|
|
|
|
(1)
|
|
Other for the three months ended June 30, 2013 is comprised of the
AmerisourceBergen Consulting Services ("ABCS") operating segment
and the World Courier Group, Inc. operating segment. Other for the
three months ended June 30, 2012 is comprised of the ABCS
operating segment and the World Courier Group, Inc. operating
segment (beginning May 1, 2012).
|
|
|
|
|
(2)
|
|
Margin percentages in the prior year period do not include any
non-GAAP adjustments.
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30,
|
|
Revenue
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$62,300,468
|
|
|
$58,243,723
|
|
|
7%
|
|
Other (1) |
|
|
1,329,984
|
|
|
903,178
|
|
|
47%
|
|
Intersegment eliminations
|
|
|
(140,325
|
)
|
|
(130,538
|
)
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$63,490,127
|
|
|
$59,016,363
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30,
|
|
Operating Income
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$774,599
|
|
|
$947,064
|
|
|
-18%
|
|
LIFO
|
|
|
123,029
|
|
|
-
|
|
|
N/M
|
|
Adjusted Pharmaceutical Distribution
|
|
|
897,628
|
|
|
947,064
|
|
|
-5%
|
|
Other (1) |
|
|
70,569
|
|
|
54,506
|
|
|
29%
|
|
LIFO
|
|
|
(123,029
|
)
|
|
-
|
|
|
N/M
|
|
Warrants
|
|
|
(39,576
|
)
|
|
-
|
|
|
N/M
|
|
Employee severance, litigation and other
|
|
(21,383
|
)
|
|
(16,721
|
)
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$784,209
|
|
|
$984,849
|
|
|
-20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30, 2013
|
|
Nine Months Ended June 30, 2012
|
Percentages of revenue:
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP (2) |
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.55
|
%
|
|
2.75
|
%
|
|
3.01
|
%
|
Operating expenses
|
|
|
1.31
|
%
|
|
1.31
|
%
|
|
1.38
|
%
|
Operating income
|
|
|
1.24
|
%
|
|
1.44
|
%
|
|
1.63
|
%
|
|
|
|
|
|
|
|
|
Other (1) |
|
|
|
|
|
|
|
Gross profit
|
|
|
26.29
|
%
|
|
N/A
|
|
|
18.71
|
%
|
Operating expenses
|
|
|
20.98
|
%
|
|
N/A
|
|
|
12.68
|
%
|
Operating income
|
|
|
5.31
|
%
|
|
N/A
|
|
|
6.03
|
%
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation
|
|
|
|
|
|
|
|
Gross profit
|
|
|
3.06
|
%
|
|
3.25
|
%
|
|
3.25
|
%
|
Operating expenses
|
|
|
1.82
|
%
|
|
1.76
|
%
|
|
1.59
|
%
|
Operating income
|
|
|
1.24
|
%
|
|
1.49
|
%
|
|
1.67
|
%
|
|
|
|
|
|
|
|
|
(1)
|
|
Other for the nine months ended June 30, 2013 is comprised of the
AmerisourceBergen Consulting Services ("ABCS") operating segment
and the World Courier Group, Inc. operating segment. Other for the
nine months ended June 30, 2012 is comprised of the ABCS operating
segment and the World Courier Group, Inc. operating segment
(beginning May 1, 2012).
|
|
|
|
|
(2)
|
|
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