Now Expects Fiscal 2014 Adjusted Diluted EPS from Continuing
Operations to be in the range of $3.89 to $3.94
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Jul. 24, 2014--
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its
fiscal year 2014 third quarter ended June 30, 2014, adjusted diluted
earnings per share from continuing operations increased 29.5% percent to
$1.01. Revenue increased 38.5 percent to $30.3 billion in the quarter.
On the basis of U.S. generally accepted accounting principles (GAAP),
diluted loss per share from continuing operations was $0.06 for the June
quarter of fiscal 2014. In the tables that follow, we present our GAAP
results as well as a reconciliation of GAAP (loss) income from
continuing operations to adjusted non-GAAP income from continuing
operations.
“We delivered very strong performance in our June quarter, driven by the
onboarding of substantial new business, and excellent operational and
financial results,” said Steven H. Collis, AmerisourceBergen President
and Chief Executive Officer. “In addition, we made important progress
with our strategic objectives, and continued to make significant
long-term investments in our business. We finalized our agreement to
acquire a minority stake in Profarma Distribuidora de Produtos
Farmacêuticos S.A., and launched the specialty joint venture in Brazil.
We generated substantial free cash flow, continued to take steps to
improve our balance sheet, and positioned ourselves well to meet or
exceed our financial objectives for the full fiscal year.”
The comments below compare adjusted results from continuing operations,
which exclude:
-
Warrant expense;
-
Gains on antitrust litigation settlements;
-
LIFO expense;
-
Acquisition related intangibles amortization;
-
Employee severance, litigation, and other expenses; and
-
Loss on early retirement of debt.
In addition, we calculate our adjusted earnings per share for each
period using a diluted weighted average share count, which excludes the
accounting dilution resulting from the impact of the unexercised equity
warrants, and the impact from the shares repurchased under our special
$650 million share repurchase program. Solely in connection with the
special share repurchase program, we issued $600 million of 1.15% senior
notes due in May 2017. The interest expense incurred relating to this
borrowing is also excluded from the non-GAAP presentation.
Summary of Adjusted Quarterly Results
-
Revenue: In the third quarter of fiscal
2014, revenue was $30.3 billion, up 38.5 percent compared to the same
quarter in the previous fiscal year, reflecting a 45 percent increase
in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 13 percent
increase in AmerisourceBergen Specialty Group (ABSG) revenue.
-
Gross Profit: Gross profit in the fiscal
2014 third quarter was $822.7 million, a 21.2 percent increase over
the same period in the previous year, driven by strong overall revenue
growth and generic sales in ABDC. Gross profit as a percentage of
revenue decreased 39 basis points to 2.71 percent, primarily due to
the substantial increase in lower margin brand business.
-
Operating Expenses: In the third quarter
of fiscal 2014, operating expenses were $429.2 million, up 17.2
percent over the same period in the last fiscal year. The increase in
operating expenses in the quarter was due primarily to costs
associated with onboarding the new Walgreen Co. business. Operating
expenses as a percentage of revenue in the fiscal 2014 third quarter
were 1.41 percent compared with 1.67 percent for the same period in
the previous fiscal year.
-
Operating Income: In the fiscal 2014
third quarter, operating income of $393.5 million was up 26.0 percent
versus the prior year, as the percentage increase in gross profit was
higher than the percentage increase in operating expenses. Operating
income as a percentage of revenue decreased 13 basis points to 1.30
percent in the fiscal 2014 third quarter compared to the previous
year’s third quarter.
-
Tax Rate: The effective tax rate for the
third quarter of fiscal 2014 was 38.0 percent, slightly higher than
the previous fiscal year’s third quarter. Going forward, we expect our
annualized effective tax rate to be approximately 38 percent.
-
Earnings Per Share: Diluted earnings per
share from continuing operations were up 29.5 percent to $1.01 in the
third quarter of fiscal year 2014 compared to $0.78 in the previous
fiscal year’s third quarter, driven by the strong increase in
operating income.
-
Shares Outstanding: Diluted weighted
average shares outstanding for the third quarter of fiscal year 2014
were 230.7 million, a 2.1 percent decrease versus the prior year due
to share repurchases, offset in part by 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 third fiscal quarter of 2014, Pharmaceutical Distribution
revenues were $29.8 billion, an increase of 39 percent compared to the
same quarter in the prior year. ABDC revenues increased 45 percent, due
primarily to the onboarding of all of the new Walgreens branded
pharmaceuticals business and a substantial portion of their generic
pharmaceuticals business, and increased branded pharmaceutical sales to
our other large customers. ABSG revenues increased 13 percent, driven by
strong performance 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 $1.1 billion and
$809.2 million in the quarters ended June 30, 2014 and 2013,
respectively.
Operating income of $359.8 million in the June quarter of fiscal 2014
increased 29 percent compared to the same period in the previous year
due to the new Walgreens branded and generic pharmaceuticals business in
ABDC, strong contributions from generics overall, and solid performance
in ABSG, as slightly lower performance in our community oncology
business was offset by strong performance in our blood products and
vaccine distribution businesses.
Other
Revenues in Other were $620.3 million in the third quarter of fiscal
2014, an increase of 13 percent over the same period in the prior year.
Operating income of $33.7 million was essentially flat in the third
quarter of fiscal 2014, due to solid performance in World Courier being
offset by a decline in our consulting businesses.
Fiscal Year 2014 Expectations
AmerisourceBergen now expects adjusted diluted earnings per share from
continuing operations in fiscal year 2014 to be in the range of $3.89 to
$3.94, an increase of 21 to 23 percent over fiscal 2013. We expect
revenue growth in the 35 percent range, and operating income growth in
the high-teens percentage range. Adjusted operating margin is expected
to decline in the high-teens basis points range due to the onboarding of
significant new lower margin business and growth in brand pharmaceutical
business with our large customers. We expect free cash flow to be in the
high end of the range of $500 to $700 million, with capital expenditures
in the $275 million range, and to spend approximately $500 million in
share repurchases, 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 July 24, 2014.
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 is (612) 332-0720. 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 331334.
About AmerisourceBergen
AmerisourceBergen is one of the largest global pharmaceutical sourcing
and distribution services companies, helping both healthcare providers
and pharmaceutical and biotech manufacturers improve patient access to
products and enhance patient care. 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 over $100 billion in annualized revenue, AmerisourceBergen
is headquartered in Valley Forge, PA, and employs approximately 13,000
people. AmerisourceBergen is ranked #28 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 news 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 or other disputes relating to
AmerisourceBergen’s distribution 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, and the effect of such changes on
AmerisourceBergen’s customers; changes in regulatory or clinical medical
guidelines and/or labeling for the pharmaceutical products we
distribute; price inflation in branded and generic 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
AmerisourceBergen’s information technology systems; AmerisourceBergen’s
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 in countries where we do business and/or operate
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 AmerisourceBergen’s earnings per share
resulting from the issuance of the warrants to subsidiaries of Walgreen
Co. and Alliance Boots GmbH (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;
AmerisourceBergen’s inability to implement its hedging strategy to
mitigate the potentially dilutive effect of the issuance of shares of
its common stock upon exercise of the Warrants, including its inability
to repurchase shares of its common stock under its new share repurchase
program due to its financial performance, the current and future share
price of its common stock, its expected cash flows, competing priorities
for capital, and overall market conditions; AmerisourceBergen’s
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 AmerisourceBergen’s tax
positions and/or AmerisourceBergen’s tax liabilities or adverse
resolution of challenges to AmerisourceBergen’s tax positions; increased
costs of maintaining, or reductions in AmerisourceBergen’s ability to
maintain, adequate liquidity and financing sources; volatility and
deterioration of the capital and credit markets; natural disasters or
other unexpected events that affect AmerisourceBergen’s operations; and
other economic, business, competitive, legal, tax, regulatory and/or
operational factors affecting AmerisourceBergen’s 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)
and Item 1 (Business) in the Company’s Annual Report on Form 10-K for
the fiscal year ended September 30, 2013 and elsewhere in that report
and (ii) in other reports.
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
|
Three
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
June 30,
|
|
% of
|
|
June 30,
|
|
% of
|
|
%
|
|
|
2014
|
|
Revenue
|
|
2013
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$30,348,154
|
|
|
100.00
|
%
|
|
$21,906,648
|
|
100.00
|
%
|
|
38.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
29,656,150
|
|
|
|
|
21,344,198
|
|
|
|
38.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
692,004
|
|
|
2.28
|
%
|
|
562,450
|
|
2.57
|
%
|
|
23.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
387,611
|
|
|
1.28
|
%
|
|
331,173
|
|
1.51
|
%
|
|
17.0
|
%
|
Depreciation and amortization
|
|
47,334
|
|
|
0.16
|
%
|
|
41,138
|
|
0.19
|
%
|
|
15.1
|
%
|
Warrants
|
|
145,040
|
|
|
0.48
|
%
|
|
35,815
|
|
0.16
|
%
|
|
|
Employee severance, litigation and other
|
|
1,142
|
|
|
-
|
%
|
|
19,678
|
|
0.09
|
%
|
|
|
Total operating expenses
|
|
581,127
|
|
|
1.91
|
%
|
|
427,804
|
|
1.95
|
%
|
|
35.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
110,877
|
|
|
0.37
|
%
|
|
134,646
|
|
0.61
|
%
|
|
-17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) loss
|
|
(1,312
|
)
|
|
-
|
%
|
|
525
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
20,903
|
|
|
0.07
|
%
|
|
18,190
|
|
0.08
|
%
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early retirement of debt
|
|
32,954
|
|
|
0.11
|
%
|
|
-
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
58,332
|
|
|
0.19
|
%
|
|
115,931
|
|
0.53
|
%
|
|
-49.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
71,112
|
|
|
0.23
|
%
|
|
51,821
|
|
0.24
|
%
|
|
37.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
(12,780
|
)
|
|
-0.04
|
%
|
|
64,110
|
|
0.29
|
%
|
|
-119.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of income taxes
|
|
-
|
|
|
|
|
104,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
($12,780
|
)
|
|
-0.04
|
%
|
|
$168,439
|
|
0.77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
($0.06
|
)
|
|
|
|
$0.28
|
|
|
|
-121.4
|
%
|
Discontinued operations
|
|
-
|
|
|
|
|
0.45
|
|
|
|
|
Total
|
|
($0.06
|
)
|
|
|
|
$0.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
($0.06
|
)
|
|
|
|
$0.27
|
|
|
|
-122.2
|
%
|
Discontinued operations
|
|
-
|
|
|
|
|
0.44
|
|
|
|
|
Total
|
|
($0.06
|
)
|
|
|
|
$0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
225,727
|
|
|
|
|
231,002
|
|
|
|
|
Diluted (2) |
|
225,727
|
|
|
|
|
235,669
|
|
|
|
-4.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $2.5 million gain from antitrust litigation settlements
and a $133.2 million LIFO expense in the three months ended June
30, 2014. Includes a $6.0 million gain from antitrust litigation
settlements and a $122.1 million LIFO expense in the three months
ended June 30, 2013.
|
(2)
|
|
Stock options, restricted stock, restricted stock units and the
Warrants issued to Walgreens and Alliance Boots were anti-dilutive
for the three months ended June 30, 2014. The dilutive effect of
these items is included 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
|
|
%
|
|
|
2014
|
|
Revenue
|
|
2013
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$87,980,419
|
|
|
100.00
|
%
|
|
$63,490,127
|
|
|
100.00
|
%
|
|
38.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
85,870,597
|
|
|
|
|
61,549,860
|
|
|
|
|
39.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
2,109,822
|
|
|
2.40
|
%
|
|
1,940,267
|
|
|
3.06
|
%
|
|
8.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
1,128,012
|
|
|
1.28
|
%
|
|
975,409
|
|
|
1.54
|
%
|
|
15.6
|
%
|
Depreciation and amortization
|
|
135,778
|
|
|
0.15
|
%
|
|
119,690
|
|
|
0.19
|
%
|
|
13.4
|
%
|
Warrants
|
|
267,000
|
|
|
0.30
|
%
|
|
39,576
|
|
|
0.06
|
%
|
|
|
Employee severance, litigation and other
|
|
7,411
|
|
|
0.01
|
%
|
|
21,383
|
|
|
0.03
|
%
|
|
|
Total operating expenses
|
|
1,538,201
|
|
|
1.75
|
%
|
|
1,156,058
|
|
|
1.82
|
%
|
|
33.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
571,621
|
|
|
0.65
|
%
|
|
784,209
|
|
|
1.24
|
%
|
|
-27.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) loss
|
|
(5,692
|
)
|
|
-0.01
|
%
|
|
1,251
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
59,209
|
|
|
0.07
|
%
|
|
55,225
|
|
|
0.09
|
%
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early retirement of debt
|
|
32,954
|
|
|
0.04
|
%
|
|
-
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
485,150
|
|
|
0.55
|
%
|
|
727,733
|
|
|
1.15
|
%
|
|
-33.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
268,922
|
|
|
0.31
|
%
|
|
284,859
|
|
|
0.45
|
%
|
|
-5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
216,228
|
|
|
0.25
|
%
|
|
442,874
|
|
|
0.70
|
%
|
|
-51.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
(7,546
|
)
|
|
|
|
(60,190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$208,682
|
|
|
0.24
|
%
|
|
$382,684
|
|
|
0.60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$0.95
|
|
|
|
|
$1.91
|
|
|
|
|
-50.3
|
%
|
Discontinued operations
|
|
(0.03
|
)
|
|
|
|
(0.26
|
)
|
|
|
|
|
Rounding
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
|
|
|
Total
|
|
$0.91
|
|
|
|
|
$1.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$0.92
|
|
|
|
|
$1.88
|
|
|
|
|
-51.1
|
%
|
Discontinued operations
|
|
(0.03
|
)
|
|
|
|
(0.26
|
)
|
|
|
|
|
Rounding
|
|
-
|
|
|
|
|
0.01
|
|
|
|
|
|
Total
|
|
$0.89
|
|
|
|
|
$1.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
228,477
|
|
|
|
|
231,273
|
|
|
|
|
|
Diluted (2) |
|
235,532
|
|
|
|
|
235,428
|
|
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $24.4 million gain from antitrust litigation
settlements and a $293.6 million LIFO expense in the nine months
ended June 30, 2014. Includes a $21.7 million gain from antitrust
litigation settlements and a $123.0 million LIFO expense in the
nine months ended June 30, 2013.
|
(2)
|
|
Includes the dilutive effect of stock options, restricted stock,
restricted stock units and the Warrants issued to Walgreens and
Alliance Boots.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
|
|
|
Three Months Ended June 30, 2014
|
|
Prior Year Quarter
|
|
|
GAAP
|
|
Warrants (2)
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Employee Severance, Litigation and Other
|
|
Loss on Early Retirement of Debt
|
|
Adjusted Non-GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$30,348,154
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$30,348,154
|
|
|
38.5
|
%
|
Cost of goods sold
|
|
29,656,150
|
|
|
-
|
|
|
2,524
|
|
|
(133,237
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
29,525,437
|
|
|
39.1
|
%
|
Gross profit
|
|
692,004
|
|
|
-
|
|
|
(2,524
|
)
|
|
133,237
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
822,717
|
|
|
21.2
|
%
|
Operating expenses
|
|
581,127
|
|
|
(145,040
|
)
|
|
-
|
|
|
-
|
|
|
(5,701
|
)
|
|
(1,142
|
)
|
|
-
|
|
|
429,244
|
|
|
17.2
|
%
|
Operating income
|
|
110,877
|
|
|
145,040
|
|
|
(2,524
|
)
|
|
133,237
|
|
|
5,701
|
|
|
1,142
|
|
|
-
|
|
|
393,473
|
|
|
26.0
|
%
|
Other income
|
|
(1,312
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,312
|
)
|
|
|
|
Interest expense, net
|
|
20,903
|
|
|
(926
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
19,977
|
|
|
9.8
|
%
|
Loss on early retirement of debt
|
|
32,954
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(32,954
|
)
|
|
-
|
|
|
|
|
Income before income taxes
|
|
58,332
|
|
|
145,966
|
|
|
(2,524
|
)
|
|
133,237
|
|
|
5,701
|
|
|
1,142
|
|
|
32,954
|
|
|
374,808
|
|
|
27.7
|
%
|
Income taxes (1) |
|
71,112
|
|
|
6,665
|
|
|
(981
|
)
|
|
50,564
|
|
|
2,170
|
|
|
439
|
|
|
12,458
|
|
|
142,427
|
|
|
29.7
|
%
|
(Loss) income from continuing operations
|
|
$(12,780
|
)
|
|
$139,301
|
|
|
$(1,543
|
)
|
|
$82,673
|
|
|
$3,531
|
|
|
$703
|
|
|
$20,496
|
|
|
$232,381
|
|
|
26.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations (2) |
|
-$0.06
|
|
|
$0.61
|
|
|
-$0.01
|
|
|
$0.36
|
|
|
$0.02
|
|
|
$-
|
|
|
$0.09
|
|
|
$1.01
|
(3)
|
|
29.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding (2) |
|
225,727
|
|
|
230,674
|
|
|
230,674
|
|
|
230,674
|
|
|
230,674
|
|
|
230,674
|
|
|
230,674
|
|
|
230,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.71
|
%
|
|
|
|
Operating expenses
|
|
1.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.41
|
%
|
|
|
|
Operating income
|
|
0.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amount of Warrant expense deductible for tax
purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants.
|
|
(2) Warrant expense is recorded as an operating expense.
For the reconciling items and the non-GAAP presentation, diluted
earnings per share from continuing operations and diluted weighted
average common shares outstanding have been adjusted to exclude the
impact from the shares repurchased under the special $650 million
share repurchase program (415 shares) and to include the dilutive
effect of outstanding stock options and restricted stock (4,532
shares) that were considered anti-dilutive for the GAAP
presentation. In connection with the special share repurchase
program, which was previously announced in May 2014, the Company
issued $600 million of 1.15% senior notes due in May 2017. The
interest expense incurred relating to this borrowing has been
excluded from the non-GAAP presentation.
|
|
(3) The sum of the components may not equal the total due
to rounding.
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2013
|
|
|
GAAP
|
|
Warrant Expense
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Employee Severance, Litigation and Other
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$21,906,648
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$21,906,648
|
|
|
Cost of goods sold
|
|
21,344,198
|
|
|
-
|
|
|
5,984
|
|
|
(122,077
|
)
|
|
-
|
|
|
-
|
|
|
21,228,105
|
|
|
Gross profit
|
|
562,450
|
|
|
-
|
|
|
(5,984
|
)
|
|
122,077
|
|
|
-
|
|
|
-
|
|
|
678,543
|
|
|
Operating expenses
|
|
427,804
|
|
|
(35,815
|
)
|
|
-
|
|
|
-
|
|
|
(6,096
|
)
|
|
(19,678
|
)
|
|
366,215
|
|
|
Operating income
|
|
134,646
|
|
|
35,815
|
|
|
(5,984
|
)
|
|
122,077
|
|
|
6,096
|
|
|
19,678
|
|
|
312,328
|
|
|
Other loss
|
|
525
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
525
|
|
|
Interest expense, net
|
|
18,190
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
18,190
|
|
|
Income before income taxes
|
|
115,931
|
|
|
35,815
|
|
|
(5,984
|
)
|
|
122,077
|
|
|
6,096
|
|
|
19,678
|
|
|
293,613
|
|
|
Income taxes (1) |
|
51,821
|
|
|
3,137
|
|
|
(2,238
|
)
|
|
47,451
|
|
|
2,280
|
|
|
7,360
|
|
|
109,811
|
|
|
Income from continuing operations
|
|
$64,110
|
|
|
$32,678
|
|
|
$(3,746
|
)
|
|
$74,626
|
|
|
$3,816
|
|
|
$12,318
|
|
|
$183,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$0.27
|
|
|
$0.14
|
|
|
$(0.02
|
)
|
|
$0.32
|
|
|
$0.02
|
|
|
$0.05
|
|
|
$0.78
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
235,669
|
|
|
235,669
|
|
|
235,669
|
|
|
235,669
|
|
|
235,669
|
|
|
235,669
|
|
|
235,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
3.10
|
%
|
|
Operating expenses
|
|
1.95
|
%
|
|
|
|
|
|
|
|
|
|
|
|
1.67
|
%
|
|
Operating income
|
|
0.61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
1.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amount of Warrant expense deductible for tax
purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants.
|
|
(2) The sum of the components may not equal the total due
to rounding.
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
|
|
|
Nine Months Ended June 30, 2014
|
|
Prior Year
|
|
|
GAAP
|
|
Warrants (2) |
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Employee Severance, Litigation and Other
|
|
Loss on Early Retirement of Debt
|
|
Adjusted Non-GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$87,980,419
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$87,980,419
|
|
|
38.6
|
%
|
Cost of goods sold
|
|
85,870,597
|
|
|
-
|
|
|
24,396
|
|
|
(293,647
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
85,601,346
|
|
|
39.3
|
%
|
Gross profit
|
|
2,109,822
|
|
|
-
|
|
|
(24,396
|
)
|
|
293,647
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,379,073
|
|
|
16.5
|
%
|
Operating expenses
|
|
1,538,201
|
|
|
(267,000
|
)
|
|
-
|
|
|
-
|
|
|
(17,484
|
)
|
|
(7,411
|
)
|
|
-
|
|
|
1,246,306
|
|
|
15.7
|
%
|
Operating income
|
|
571,621
|
|
|
267,000
|
|
|
(24,396
|
)
|
|
293,647
|
|
|
17,484
|
|
|
7,411
|
|
|
-
|
|
|
1,132,767
|
|
|
17.4
|
%
|
Other income
|
|
(5,692
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(5,692
|
)
|
|
|
Interest expense, net
|
|
59,209
|
|
|
(926
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
58,283
|
|
|
5.5
|
%
|
Loss on early retirement of debt
|
|
32,954
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(32,954
|
)
|
|
-
|
|
|
|
Income before income taxes
|
|
485,150
|
|
|
267,926
|
|
|
(24,396
|
)
|
|
293,647
|
|
|
17,484
|
|
|
7,411
|
|
|
32,954
|
|
|
1,080,176
|
|
|
18.9
|
%
|
Income taxes (1) |
|
268,922
|
|
|
19,295
|
|
|
(9,224
|
)
|
|
111,014
|
|
|
6,611
|
|
|
2,802
|
|
|
12,458
|
|
|
411,878
|
|
|
19.9
|
%
|
Income from continuing operations
|
|
$216,228
|
|
|
$248,631
|
|
|
$(15,172
|
)
|
|
$182,633
|
|
|
$10,873
|
|
|
$4,609
|
|
|
$20,496
|
|
|
$668,298
|
|
|
18.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations (2) |
|
$0.92
|
|
|
$1.07
|
|
|
$(0.06
|
)
|
|
$0.78
|
|
|
$0.05
|
|
|
$0.02
|
|
|
$0.09
|
|
|
$2.86
|
(3)
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding (2) |
|
235,532
|
|
|
233,450
|
|
|
233,450
|
|
|
233,450
|
|
|
233,450
|
|
|
233,450
|
|
|
233,450
|
|
|
233,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.70
|
%
|
|
|
Operating expenses
|
|
1.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.42
|
%
|
|
|
Operating income
|
|
0.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amount of Warrant expense deductible for tax
purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants.
|
|
(2) Warrant expense is recorded as an operating expense.
For the reconciling items and the non-GAAP presentation, diluted
earnings per share from continuing operations and diluted weighted
average common shares outstanding have been adjusted to exclude the
impact of the accounting dilution from the unexercised Warrants
(2,221 shares), and the impact from the shares repurchased under the
special $650 million share repurchase program (139 shares). In
connection with the special share repurchase program, which was
previously announced in May 2014, the Company issued $600 million of
1.15% senior notes due in May 2017. The interest expense incurred
relating to this borrowing has been excluded from the non-GAAP
presentation.
|
|
(3) The sum of the components may not equal the total due
to rounding.
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30, 2013
|
|
|
GAAP
|
|
Warrant Expense
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Employee Severance, Litigation and Other
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$63,490,127
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$63,490,127
|
|
|
Cost of goods sold
|
|
61,549,860
|
|
|
-
|
|
|
21,748
|
|
|
(123,029
|
)
|
|
-
|
|
|
-
|
|
|
61,448,579
|
|
|
Gross profit
|
|
1,940,267
|
|
|
-
|
|
|
(21,748
|
)
|
|
123,029
|
|
|
-
|
|
|
-
|
|
|
2,041,548
|
|
|
Operating expenses
|
|
1,156,058
|
|
|
(39,576
|
)
|
|
-
|
|
|
-
|
|
|
(18,293
|
)
|
|
(21,383
|
)
|
|
1,076,806
|
|
|
Operating income
|
|
784,209
|
|
|
39,576
|
|
|
(21,748
|
)
|
|
123,029
|
|
|
18,293
|
|
|
21,383
|
|
|
964,742
|
|
|
Other loss
|
|
1,251
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,251
|
|
|
Interest expense, net
|
|
55,225
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
55,225
|
|
|
Income before income taxes
|
|
727,733
|
|
|
39,576
|
|
|
(21,748
|
)
|
|
123,029
|
|
|
18,293
|
|
|
21,383
|
|
|
908,266
|
|
|
Income taxes (1) |
|
284,859
|
|
|
4,267
|
|
|
(8,216
|
)
|
|
47,813
|
|
|
6,918
|
|
|
8,004
|
|
|
343,645
|
|
|
Income from continuing operations
|
|
$442,874
|
|
|
$35,309
|
|
|
$(13,532
|
)
|
|
$75,216
|
|
|
$11,375
|
|
|
$13,379
|
|
|
$564,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$1.88
|
|
|
$0.15
|
|
|
$(0.06
|
)
|
|
$0.32
|
|
|
$0.05
|
|
|
$0.06
|
|
|
$2.40
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
235,428
|
|
|
235,428
|
|
|
235,428
|
|
|
235,428
|
|
|
235,428
|
|
|
235,428
|
|
|
235,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
3.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
3.22
|
%
|
|
Operating expenses
|
|
1.82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
1.70
|
%
|
|
Operating income
|
|
1.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
1.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amount of Warrant expense deductible for tax
purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants.
|
|
(2) The sum of the components may not equal the total due
to rounding.
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
Revenue
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$29,812,837
|
|
|
$21,407,853
|
|
|
39.3
|
%
|
Other
|
|
620,275
|
|
|
549,400
|
|
|
12.9
|
%
|
Intersegment eliminations
|
|
(84,958
|
)
|
|
(50,605
|
)
|
|
67.9
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$30,348,154
|
|
|
$21,906,648
|
|
|
38.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
Operating Income
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$359,795
|
|
|
$278,728
|
|
|
29.1
|
%
|
Other
|
|
33,678
|
|
|
33,600
|
|
|
0.2
|
%
|
Gain on antitrust litigation settlements
|
|
2,524
|
|
|
5,984
|
|
|
|
LIFO expense
|
|
(133,237
|
)
|
|
(122,077
|
)
|
|
|
Acquisition related intangibles amortization
|
|
(5,701
|
)
|
|
(6,096
|
)
|
|
|
Warrant expense
|
|
(145,040
|
)
|
|
(35,815
|
)
|
|
|
Employee severance, litigation and other
|
|
(1,142
|
)
|
|
(19,678
|
)
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$110,877
|
|
|
$134,646
|
|
|
-17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
2.32
|
%
|
|
2.58
|
%
|
|
|
Operating expenses
|
|
1.11
|
%
|
|
1.28
|
%
|
|
|
Operating income
|
|
1.21
|
%
|
|
1.30
|
%
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Gross profit
|
|
21.19
|
%
|
|
23.04
|
%
|
|
|
Operating expenses
|
|
15.76
|
%
|
|
16.92
|
%
|
|
|
Operating income
|
|
5.43
|
%
|
|
6.12
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.28
|
%
|
|
2.57
|
%
|
|
|
Operating expenses
|
|
1.91
|
%
|
|
1.95
|
%
|
|
|
Operating income
|
|
0.37
|
%
|
|
0.61
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.71
|
%
|
|
3.10
|
%
|
|
|
Operating expenses
|
|
1.41
|
%
|
|
1.67
|
%
|
|
|
Operating income
|
|
1.30
|
%
|
|
1.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30,
|
Revenue
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$86,367,923
|
|
|
$62,061,060
|
|
|
39.2
|
%
|
Other
|
|
1,796,910
|
|
|
1,569,392
|
|
|
14.5
|
%
|
Intersegment eliminations
|
|
(184,414
|
)
|
|
(140,325
|
)
|
|
31.4
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$87,980,419
|
|
|
$63,490,127
|
|
|
38.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30,
|
Operating Income
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$1,019,506
|
|
|
$866,482
|
|
|
17.7
|
%
|
Other
|
|
113,261
|
|
|
98,260
|
|
|
15.3
|
%
|
Gain on antitrust litigation settlements
|
|
24,396
|
|
|
21,748
|
|
|
|
LIFO expense
|
|
(293,647
|
)
|
|
(123,029
|
)
|
|
|
Acquisition related intangibles amortization
|
|
(17,484
|
)
|
|
(18,293
|
)
|
|
|
Warrant expense
|
|
(267,000
|
)
|
|
(39,576
|
)
|
|
|
Employee severance, litigation and other
|
|
(7,411
|
)
|
|
(21,383
|
)
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$571,621
|
|
|
$784,209
|
|
|
-27.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
2.29
|
%
|
|
2.69
|
%
|
|
|
Operating expenses
|
|
1.11
|
%
|
|
1.29
|
%
|
|
|
Operating income
|
|
1.18
|
%
|
|
1.40
|
%
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Gross profit
|
|
22.17
|
%
|
|
23.81
|
%
|
|
|
Operating expenses
|
|
15.87
|
%
|
|
17.55
|
%
|
|
|
Operating income
|
|
6.30
|
%
|
|
6.26
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.40
|
%
|
|
3.06
|
%
|
|
|
Operating expenses
|
|
1.75
|
%
|
|
1.82
|
%
|
|
|
Operating income
|
|
0.65
|
%
|
|
1.24
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.70
|
%
|
|
3.22
|
%
|
|
|
Operating expenses
|
|
1.42
|
%
|
|
1.70
|
%
|
|
|
Operating income
|
|
1.29
|
%
|
|
1.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
June 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$1,261,864
|
|
$1,231,006
|
Accounts receivable, net
|
|
6,133,228
|
|
6,051,920
|
Merchandise inventories
|
|
8,421,977
|
|
6,981,494
|
Prepaid expenses and other
|
|
74,317
|
|
129,231
|
Total current assets
|
|
15,891,386
|
|
14,393,651
|
|
|
|
|
|
Property and equipment, net
|
|
882,162
|
|
803,561
|
Other long-term assets
|
|
3,857,058
|
|
3,721,426
|
|
|
|
|
|
Total assets
|
|
$20,630,606
|
|
$18,918,638
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$14,809,789
|
|
$13,335,792
|
Other current liabilities
|
|
1,529,570
|
|
1,534,843
|
Total current liabilities
|
|
16,339,359
|
|
14,870,635
|
|
|
|
|
|
Long-term debt
|
|
1,995,482
|
|
1,396,606
|
|
|
|
|
|
Other long-term liabilities
|
|
309,410
|
|
331,652
|
|
|
|
|
|
Stockholders' equity
|
|
1,986,355
|
|
2,319,745
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$20,630,606
|
|
$18,918,638
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Nine
|
|
Nine
|
|
|
Months Ended
|
|
Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
Net income
|
|
$208,682
|
|
|
$382,684
|
|
Loss from discontinued operations
|
|
7,546
|
|
|
60,190
|
|
Income from continuing operations
|
|
216,228
|
|
|
442,874
|
|
Adjustments to reconcile income from continuing operations to net
cash provided by operating activities (1)
|
|
456,446
|
|
|
207,560
|
|
Changes in operating assets and liabilities, excluding the effects
of acquisitions:
|
|
|
|
|
Accounts receivable
|
|
(535,806
|
)
|
|
(835,697
|
)
|
Merchandise inventories (2) |
|
(1,002,589
|
)
|
|
(399,087
|
)
|
Accounts payable, accrued expenses, and income taxes
|
|
1,475,627
|
|
|
1,380,353
|
|
Other
|
|
30,135
|
|
|
(60,964
|
)
|
Net cash provided by operating activities - continuing operations
|
|
640,041
|
|
|
735,039
|
|
Net cash (used in) provided by operating activities - discontinued
operations
|
|
(7,546
|
)
|
|
84,025
|
|
Net cash provided by operating activities
|
|
632,495
|
|
|
819,064
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(198,670
|
)
|
|
(137,927
|
)
|
Proceeds from sales of businesses
|
|
-
|
|
|
331,630
|
|
Cost of equity investments
|
|
(117,794
|
)
|
|
-
|
|
Other
|
|
(2,737
|
)
|
|
523
|
|
Net cash (used in) provided by investing activities - continuing
operations
|
|
(319,201
|
)
|
|
194,226
|
|
Net cash used in investing activities - discontinued operations
|
|
-
|
|
|
(11,672
|
)
|
Net cash (used in) provided by investing activities
|
|
(319,201
|
)
|
|
182,554
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
Net borrowings
|
|
566,402
|
|
|
-
|
|
Purchases of common stock (3)
|
|
(570,593
|
)
|
|
(401,091
|
)
|
Exercises of stock options
|
|
109,694
|
|
|
132,766
|
|
Cash dividends on common stock
|
|
(161,558
|
)
|
|
(147,005
|
)
|
Purchases of capped call options
|
|
(211,397
|
)
|
|
(27,906
|
)
|
Other
|
|
(14,984
|
)
|
|
(6,867
|
)
|
Net cash used in financing activities - continuing operations
|
|
(282,436
|
)
|
|
(450,103
|
)
|
Net cash used in financing activities - discontinued operations
|
|
-
|
|
|
(50,538
|
)
|
Net cash used in financing activities
|
|
(282,436
|
)
|
|
(500,641
|
)
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
30,858
|
|
|
500,977
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
1,231,006
|
|
|
1,066,608
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$1,261,864
|
|
|
$1,567,585
|
|
|
|
|
|
|
|
|
(1)
|
|
Adjustments include non-cash warrant expense of $267.0 million and
$39.6 million for the nine months ended June 30, 2014 and 2013,
respectively.
|
|
|
|
|
(2)
|
|
Merchandise inventories include LIFO expense of $293.6 million and
$123.0 million for the nine months ended June 30, 2014 and 2013,
respectively.
|
|
|
|
(3)
|
|
Includes purchases made under the special share repurchase program
totaling $138.8 million. Additional purchases made in June 2014
under the special program totaling $2.9 million cash settled in
July 2014.
|
|
|
|

Source: AmerisourceBergen Corporation
AmerisourceBergen Corporation
Barbara Brungess
Vice
President, Corporate & Investor Relations
610-727-7199
bbrungess@amerisourcebergen.com