Now Expects Fiscal Year 2015 Adjusted Diluted EPS to be in the
range of $4.92 to $4.97
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Jul. 23, 2015--
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its
fiscal year 2015 third quarter ended June 30, 2015, adjusted diluted
earnings per share increased 18.8 percent to $1.20. Revenue increased
12.8 percent to $34.2 billion in the quarter. On the basis of U.S.
generally accepted accounting principles (GAAP), diluted earnings per
share were $0.89 for the June quarter of fiscal 2015. In the tables that
follow, we present our GAAP results as well as GAAP to non-GAAP
reconciliations.
“Strong performance in our June quarter positions us very well to meet
our financial and strategic objectives for the full year,” said Steven
H. Collis, AmerisourceBergen President and Chief Executive Officer. “Our
outstanding cash generation, the investments we have made and will
continue to make in improving our infrastructure and capabilities, and
the strength of our presence in key growing markets has put us on course
to deliver adjusted earnings per share growth of over 20 percent for the
second consecutive year. While it is still early in our planning process
and there are many moving parts, we see a pathway to building on that
performance and achieving adjusted earnings per share growth in the
low-teens range for fiscal 2016.”
The comments below compare adjusted results, which exclude:
-
Warrant expense;
-
Gains on antitrust litigation settlements;
-
LIFO expense;
-
Acquisition related intangibles amortization; and
-
Employee severance, litigation, and other expenses.
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
share repurchase programs. We previously issued $600 million of 1.15%
senior notes due in May 2017 to fund our initial special share
repurchase program. 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
2015, revenue was $34.2 billion, up 12.8 percent compared to the same
quarter in the previous fiscal year, reflecting a 9 percent increase
in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 22 percent
increase in AmerisourceBergen Specialty Group (ABSG) revenue.
-
Gross Profit: Gross profit in the fiscal
2015 third quarter was $1.0 billion, a 22.4 percent increase over the
same period in the previous year, driven by strong revenue growth in
ABDC and ABSG, and the addition of a full quarter of results from MWI
Veterinary Supply, Inc. (MWI). Gross profit as a percentage of revenue
increased 23 basis points to 2.94 percent.
-
Operating Expenses: In the third quarter
of fiscal 2015, operating expenses were $551 million, up 28.5 percent
over the same period in the last fiscal year. The increase in
operating expenses in the quarter was driven by additional costs to
support the increase in revenue growth and the addition of MWI.
Operating expenses as a percentage of revenue in the fiscal 2015 third
quarter were 1.61 percent compared with 1.41 percent for the same
period in the previous fiscal year, driven by the higher expense
profile of MWI.
-
Operating Income: In the fiscal 2015
third quarter, operating income of $455 million was up 15.7 percent
versus the prior year, driven by the increase in gross profit, which
was offset in part by the increase in operating expenses. Operating
income as a percentage of revenue increased 3 basis points to 1.33
percent in the fiscal 2015 third quarter compared to the previous
year’s third quarter.
-
Tax Rate: The effective tax rate for the
third quarter of fiscal 2015 was 35.3 percent, down from 38.0 percent
in the previous fiscal year’s third quarter, as growth in our
international businesses, including our global manufacturer services
business in Switzerland, has changed the mix of our domestic and
foreign taxable income. We expect our annualized effective tax rate to
be between 36 and 36.5 percent for the full fiscal year.
-
Earnings Per Share: Diluted earnings per
share were up 18.8 percent to $1.20 in the third quarter of fiscal
year 2015 compared to $1.01 in the previous fiscal year’s third
quarter, driven by the increase in operating income.
-
Shares Outstanding: Diluted weighted
average shares outstanding for the third quarter of fiscal year 2015
were 231.3 million, flat versus the prior year as share repurchases
offset employee stock option exercises.
Segment Discussion
The Pharmaceutical Distribution segment includes both AmerisourceBergen
Drug Corporation and AmerisourceBergen Specialty Group. Other includes
AmerisourceBergen Consulting Services, World Courier, and MWI Veterinary
Supply.
Pharmaceutical Distribution Segment
In the third fiscal quarter of 2015, Pharmaceutical Distribution
revenues were $32.8 billion, an increase of 10 percent compared to the
same quarter in the prior year. ABDC revenues increased 9 percent, due
primarily to the onboarding of the new Walgreens Boots Alliance, Inc.
generic pharmaceuticals business, and solid organic sales growth in our
independent pharmacy, alternate site, and health systems customers. ABSG
revenues increased 22 percent, which was driven by strong performance in
our blood products, vaccine and physician office distribution
businesses, the impact of manufacturer shifts of certain oncology
products from full line distribution to specialty distribution, and an
increase in sales to community oncology practices. Intrasegment revenues
between ABDC and ABSG have been eliminated in the presentation of total
Pharmaceutical Distribution revenue. Total intrasegment revenues were
$1.6 billion and $1.1 billion in the quarters ended June 30, 2015 and
2014, respectively.
Operating income of $377.8 million in the June quarter of fiscal 2015
increased 5 percent compared to the same period in the previous year
driven primarily by the strong revenue growth in ABSG.
Other
Revenues in Other were $1.5 billion in the third quarter of fiscal 2015,
an increase of 147 percent over the same period in the prior year due to
the addition of a full quarter of revenues from MWI. Operating income
increased 130 percent to $77 million in the third quarter of fiscal
2015, driven by the additional income from MWI.
Fiscal Year 2015 Expectations
Our updated expectations for financial performance in fiscal 2015,
including the impact of the MWI transaction, are as follows:
-
Adjusted diluted earnings per share in the range of $4.92 to $4.97, a
24 percent to 25 percent increase over fiscal 2014;
-
Revenue growth in the range of 12 percent to 13 percent;
-
Adjusted operating income growth in the 20 percent to 22 percent range;
-
Adjusted operating margin increase of 9 to 11 basis points;
-
Free cash flow generation in the range of $2.8 billion to $3.2 billion;
-
Capital expenditures in the $215 million range;
-
Regular share repurchases of approximately $300 million; and
-
Special share repurchases of approximately $750 million.
Conference Call
The Company will host a conference call to discuss the results at 11:00
a.m. Eastern Time on July 23, 2015.
Participating in the conference call will be:
Steven H. Collis, President & Chief Executive Officer
Tim G.
Guttman, Executive 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 364195.
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 in human medicine and animal health. With over $120 billion in
annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA,
and employs approximately 16,000 people. AmerisourceBergen is ranked #16
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: competition;
industry consolidation of both customers and suppliers resulting in
increasing pressure to reduce prices for our products and services;
changes in pharmaceutical market growth rates; price inflation in
branded and generic pharmaceuticals and price deflation in generics;
declining economic conditions in the United States and abroad; financial
market volatility and disruption; substantial defaults in payment,
material reduction in purchases by or the loss, bankruptcy or insolvency
of a major customer; the loss, bankruptcy or insolvency of a major
supplier; changes to the customer or supplier mix; the retention of key
customer or supplier relationships under less favorable economics or the
adverse resolution of any contract or other dispute with customers or
suppliers; interest rate and foreign currency exchange rate
fluctuations; the disruption of AmerisourceBergen's cash flow and
ability to return value to its stockholders in accordance with its past
practices; risks associated with the strategic, long-term relationship
between Walgreen Boots Alliance, Inc. and AmerisourceBergen, including
with respect to the pharmaceutical distribution agreement and/or the
global sourcing joint venture; risks associated with the potential
impact on AmerisourceBergen's earnings per share resulting from the
issuance of the warrants to subsidiaries of Walgreen Boots Alliance,
Inc. (the "Warrants"); AmerisourceBergen's inability to implement its
hedging strategy to mitigate the potentially dilutive effect of the
issuance of its common stock in accordance with the Warrants under its
special 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;
changes in the United States healthcare and regulatory environment;
increasing governmental regulations regarding the pharmaceutical supply
channel; 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
our distribution of controlled substances; increased federal scrutiny
and 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; material adverse resolution of
pending legal proceedings; declining reimbursement rates for
pharmaceuticals; the acquisition of businesses that do not perform as
expected, or that are difficult to integrate or control, including the
integration of recently-acquired MWI or ability to capture all of the
anticipated synergies related thereto; managing foreign expansion,
including non-compliance with the U.S. Foreign Corrupt Practices Act,
anti-bribery laws and economic sanctions and import laws and
regulations; malfunction, failure or breach of the sophisticated
information systems to operate as designed; risks generally associated
with data privacy regulation and the international transfer of personal
data; 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; 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, 2014 and elsewhere in that report
and (ii) in other reports.
|
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|
|
|
|
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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
|
|
%
|
|
|
2015
|
|
Revenue
|
|
2014
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$34,233,556
|
|
|
100.00
|
%
|
|
$30,348,154
|
|
|
100.00
|
%
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
33,342,092
|
|
|
|
|
29,656,150
|
|
|
|
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
891,464
|
|
|
2.60
|
%
|
|
692,004
|
|
|
2.28
|
%
|
|
28.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
502,744
|
|
|
1.47
|
%
|
|
387,611
|
|
|
1.28
|
%
|
|
29.7
|
%
|
Depreciation and amortization
|
|
68,430
|
|
|
0.20
|
%
|
|
47,334
|
|
|
0.16
|
%
|
|
44.6
|
%
|
Warrants
|
|
(14,900
|
)
|
|
-0.04
|
%
|
|
145,040
|
|
|
0.48
|
%
|
|
|
Employee severance, litigation and other
|
|
2,625
|
|
|
0.01
|
%
|
|
1,142
|
|
|
-
|
%
|
|
|
Total operating expenses
|
|
558,899
|
|
|
1.63
|
%
|
|
581,127
|
|
|
1.91
|
%
|
|
-3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
332,565
|
|
|
0.97
|
%
|
|
110,877
|
|
|
0.37
|
%
|
|
199.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
(1,534
|
)
|
|
-
|
%
|
|
(1,312
|
)
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
29,793
|
|
|
0.09
|
%
|
|
20,903
|
|
|
0.07
|
%
|
|
42.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early retirement of debt
|
|
-
|
|
|
-
|
%
|
|
32,954
|
|
|
0.11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
304,306
|
|
|
0.89
|
%
|
|
58,332
|
|
|
0.19
|
%
|
|
421.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
90,143
|
|
|
0.26
|
%
|
|
71,112
|
|
|
0.23
|
%
|
|
26.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$214,163
|
|
|
0.63
|
%
|
|
($12,780
|
)
|
|
-0.04
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.98
|
|
|
|
|
($0.06
|
)
|
|
|
|
|
Diluted
|
|
$0.89
|
|
|
|
|
($0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
219,359
|
|
|
|
|
225,727
|
|
|
|
|
|
Diluted (2) |
|
240,236
|
|
|
|
|
225,727
|
|
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $158.7 million LIFO expense charge and a $43.6 million
gain from antitrust litigation settlements in the three months
ended June 30, 2015. Includes a $133.2 million LIFO expense charge
and a $2.5 million gain from antitrust litigation settlements in
the three months ended June 30, 2014.
|
(2)
|
|
Stock options, restricted stock, restricted stock units and the
Warrants issued to Walgreens Boots Alliance were dilutive
for the three months ended June 30, 2015. As a result of the net
loss, these items were anti-dilutive in the three months ended
June 30, 2014.
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
|
|
|
|
Nine
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
June 30,
|
|
% of
|
|
June 30,
|
|
% of
|
|
%
|
|
|
2015
|
|
Revenue
|
|
2014
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$100,491,425
|
|
|
100.00
|
%
|
|
$87,980,419
|
|
|
100.00
|
%
|
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
97,935,686
|
|
|
|
|
85,870,597
|
|
|
|
|
14.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
2,555,739
|
|
|
2.54
|
%
|
|
2,109,822
|
|
|
2.40
|
%
|
|
21.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
1,361,678
|
|
|
1.36
|
%
|
|
1,128,012
|
|
|
1.28
|
%
|
|
20.7
|
%
|
Depreciation and amortization
|
|
173,932
|
|
|
0.17
|
%
|
|
135,778
|
|
|
0.15
|
%
|
|
28.1
|
%
|
Warrants
|
|
1,109,211
|
|
|
1.10
|
%
|
|
267,000
|
|
|
0.30
|
%
|
|
|
Employee severance, litigation and other
|
|
30,999
|
|
|
0.03
|
%
|
|
7,411
|
|
|
0.01
|
%
|
|
|
Total operating expenses
|
|
2,675,820
|
|
|
2.66
|
%
|
|
1,538,201
|
|
|
1.75
|
%
|
|
74.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
(120,081
|
)
|
|
-0.12
|
%
|
|
571,621
|
|
|
0.65
|
%
|
|
-121.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other loss (income) (2) |
|
11,185
|
|
|
0.01
|
%
|
|
(5,692
|
)
|
|
-0.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
70,081
|
|
|
0.07
|
%
|
|
59,209
|
|
|
0.07
|
%
|
|
18.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early retirement of debt
|
|
-
|
|
|
-
|
%
|
|
32,954
|
|
|
0.04
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
(201,347
|
)
|
|
-0.20
|
%
|
|
485,150
|
|
|
0.55
|
%
|
|
-141.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
297,827
|
|
|
0.30
|
%
|
|
268,922
|
|
|
0.31
|
%
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
(499,174
|
)
|
|
-0.50
|
%
|
|
216,228
|
|
|
0.25
|
%
|
|
-330.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
-
|
|
|
|
|
(7,546
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
($499,174
|
)
|
|
-0.50
|
%
|
|
$208,682
|
|
|
0.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
($2.27
|
)
|
|
|
|
$0.95
|
|
|
|
|
-338.9
|
%
|
Discontinued operations
|
|
-
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
Rounding
|
|
-
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
Total
|
|
($2.27
|
)
|
|
|
|
$0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
($2.27
|
)
|
|
|
|
$0.92
|
|
|
|
|
-346.7
|
%
|
Discontinued operations
|
|
-
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
Total
|
|
($2.27
|
)
|
|
|
|
$0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
219,689
|
|
|
|
|
228,477
|
|
|
|
|
|
Diluted (3) |
|
219,689
|
|
|
|
|
235,532
|
|
|
|
|
-6.7
|
%
|
|
|
|
(1)
|
|
Includes a $453.9 million LIFO expense charge and a $65.1 million
gain from antitrust litigation settlements in the nine months
ended June 30, 2015. Includes a $293.6 million LIFO expense charge
and a $24.4 million gain from antitrust litigation settlements in
the nine months ended June 30, 2014.
|
(2)
|
|
Includes a $9.1 million loss on the sale of a small technology
business.
|
(3)
|
|
As a result of the net loss, stock options, restricted stock,
restricted stock units and the Warrants issued to Walgreens Boots
Alliance were anti-dilutive for the nine months ended June 30,
2015. The dilutive effect of these items is included in the nine
months ended June 30, 2014.
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2015
|
|
|
Gross Profit
|
|
Operating Expenses
|
|
Operating Income
|
|
Interest Expense, Net
|
|
Income Before Income Taxes
|
|
Income Taxes
|
|
Net Income
|
|
Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$891,464
|
|
|
$558,899
|
|
|
$332,565
|
|
|
$29,793
|
|
|
$304,306
|
|
|
$90,143
|
|
|
$214,163
|
|
|
$0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense (1) |
|
-
|
|
|
14,900
|
|
|
(14,900
|
)
|
|
(2,159
|
)
|
|
(12,741
|
)
|
|
7,170
|
|
|
(19,911
|
)
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
(43,567
|
)
|
|
-
|
|
|
(43,567
|
)
|
|
-
|
|
|
(43,567
|
)
|
|
(17,076
|
)
|
|
(26,491
|
)
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
158,710
|
|
|
-
|
|
|
158,710
|
|
|
-
|
|
|
158,710
|
|
|
62,823
|
|
|
95,887
|
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related intangibles amortization
|
|
-
|
|
|
(19,710
|
)
|
|
19,710
|
|
|
-
|
|
|
19,941
|
|
|
7,831
|
|
|
12,110
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
-
|
|
|
(2,625
|
)
|
|
2,625
|
|
|
-
|
|
|
2,625
|
|
|
856
|
|
|
1,769
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
$1,006,607
|
|
|
$551,464
|
|
|
$455,143
|
|
|
$27,634
|
|
|
$429,274
|
|
|
$151,747
|
|
|
$277,527
|
|
|
$1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP % changes vs. prior year quarter
|
|
22.4
|
%
|
|
28.5
|
%
|
|
15.7
|
%
|
|
38.3
|
%
|
|
14.5
|
%
|
|
6.5
|
%
|
|
19.4
|
%
|
|
18.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.60
|
%
|
|
2.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
1.63
|
%
|
|
1.61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
0.97
|
%
|
|
1.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. In connection with the fiscal 2014 special $650
million share repurchase program, 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.
|
|
|
|
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
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2014
|
|
|
Gross Profit
|
|
Operating Expenses
|
|
Operating Income
|
|
Interest Expense, Net
|
|
Loss on Retirement of Debt
|
|
Income Before Income Taxes
|
|
Income Taxes
|
|
Net (loss) Income
|
|
Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$692,004
|
|
|
$581,127
|
|
|
$110,877
|
|
|
$20,903
|
|
|
($32,954
|
)
|
|
$58,332
|
|
|
$71,112
|
|
|
($12,780
|
)
|
|
$(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense (1) |
|
-
|
|
|
(145,040
|
)
|
|
145,040
|
|
|
(926
|
)
|
|
-
|
|
|
145,966
|
|
|
6,665
|
|
|
139,301
|
|
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
(2,524
|
)
|
|
-
|
|
|
(2,524
|
)
|
|
-
|
|
|
-
|
|
|
(2,524
|
)
|
|
(981
|
)
|
|
(1,543
|
)
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
133,237
|
|
|
-
|
|
|
133,237
|
|
|
-
|
|
|
-
|
|
|
133,237
|
|
|
50,564
|
|
|
82,673
|
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related intangibles amortization
|
|
-
|
|
|
(5,701
|
)
|
|
5,701
|
|
|
-
|
|
|
-
|
|
|
5,701
|
|
|
2,170
|
|
|
3,531
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
-
|
|
|
(1,142
|
)
|
|
1,142
|
|
|
-
|
|
|
-
|
|
|
1,142
|
|
|
439
|
|
|
703
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early retirement of debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
32,954
|
|
|
32,954
|
|
|
12,458
|
|
|
20,496
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
$822,717
|
|
|
$429,244
|
|
|
$393,473
|
|
|
$19,977
|
|
|
$-
|
|
|
$374,808
|
|
|
$142,427
|
|
|
$232,381
|
|
|
$1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. In connection with the fiscal 2014 special $650
million share repurchase program, 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.
|
|
|
|
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
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30, 2015
|
|
|
Gross Profit
|
|
Operating Expenses
|
|
Operating (Loss) Income
|
|
Interest Expense, Net
|
|
(Loss) Income Before Income Taxes
|
|
Income Taxes
|
|
(Loss) Income From Continuing Operations
|
|
Diluted Earnings Per Share From Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$2,555,739
|
|
|
$2,675,820
|
|
|
($120,081
|
)
|
|
$70,081
|
|
|
($201,347
|
)
|
|
$297,827
|
|
|
($499,174
|
)
|
|
$(2.27
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense (1) |
|
-
|
|
|
(1,109,211
|
)
|
|
1,109,211
|
|
|
(6,459
|
)
|
|
1,115,670
|
|
|
21,468
|
|
|
1,094,202
|
|
|
4.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
(65,050
|
)
|
|
-
|
|
|
(65,050
|
)
|
|
-
|
|
|
(65,050
|
)
|
|
(25,403
|
)
|
|
(39,647
|
)
|
|
(0.17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
453,878
|
|
|
-
|
|
|
453,878
|
|
|
-
|
|
|
453,878
|
|
|
177,249
|
|
|
276,629
|
|
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related intangibles amortization
|
|
-
|
|
|
(34,478
|
)
|
|
34,478
|
|
|
-
|
|
|
35,279
|
|
|
13,777
|
|
|
21,502
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
-
|
|
|
(30,999
|
)
|
|
30,999
|
|
|
-
|
|
|
30,999
|
|
|
11,774
|
|
|
19,225
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
$2,944,567
|
|
|
$1,501,132
|
|
|
$1,443,435
|
|
|
$63,622
|
|
|
$1,369,429
|
|
|
$496,692
|
|
|
$872,737
|
|
|
$3.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP % changes vs. prior year period
|
|
23.8
|
%
|
|
20.4
|
%
|
|
27.4
|
%
|
|
9.2
|
%
|
|
26.8
|
%
|
|
20.6
|
%
|
|
30.6
|
%
|
|
32.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.54
|
%
|
|
2.93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
2.66
|
%
|
|
1.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
-0.12
|
%
|
|
1.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amount of Warrant expense deductible for income
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. In connection with the fiscal 2014 special $650
million share repurchase program, 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.
|
|
|
|
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
|
|
|
GAAP TO NON-GAAP RECONCILIATIONS
|
|
|
(in thousands, except per share data)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30, 2014
|
|
|
|
|
Gross Profit
|
|
Operating Expenses
|
|
Operating Income
|
|
Interest Expense, Net
|
|
Loss on Retirement of Debt
|
|
Income Before Income Taxes
|
|
Income Taxes
|
|
Income From Continuing
Operations
|
|
Diluted Earnings Per Share From Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$2,109,822
|
|
|
$1,538,201
|
|
|
$571,621
|
|
|
$59,209
|
|
|
($32,954
|
)
|
|
$485,150
|
|
|
$268,922
|
|
|
$216,228
|
|
|
$0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense (1) |
|
-
|
|
|
(267,000
|
)
|
|
267,000
|
|
|
(926
|
)
|
|
-
|
|
|
267,926
|
|
|
19,295
|
|
|
248,631
|
|
|
1.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
(24,396
|
)
|
|
-
|
|
|
(24,396
|
)
|
|
-
|
|
|
-
|
|
|
(24,396
|
)
|
|
(9,224
|
)
|
|
(15,172
|
)
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
293,647
|
|
|
-
|
|
|
293,647
|
|
|
-
|
|
|
-
|
|
|
293,647
|
|
|
111,014
|
|
|
182,633
|
|
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related intangibles amortization
|
|
-
|
|
|
(17,484
|
)
|
|
17,484
|
|
|
-
|
|
|
-
|
|
|
17,484
|
|
|
6,611
|
|
|
10,873
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
-
|
|
|
(7,411
|
)
|
|
7,411
|
|
|
-
|
|
|
-
|
|
|
7,411
|
|
|
2,802
|
|
|
4,609
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early retirement of debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
32,954
|
|
|
32,954
|
|
|
12,458
|
|
|
20,496
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
$2,379,073
|
|
|
$1,246,306
|
|
|
$1,132,767
|
|
|
$58,283
|
|
|
$-
|
|
|
$1,080,176
|
|
|
$411,878
|
|
|
$668,298
|
|
|
$2.86
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 income
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. In connection with the fiscal 2014 special $650
million share repurchase program, 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.
|
|
|
|
(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 DILUTED SHARES OUTSTANDING (GAAP TO NON-GAAP)
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding
|
|
219,359
|
|
|
225,727
|
|
219,689
|
|
228,477
|
|
|
|
|
|
|
|
|
|
|
Stock option, restricted stock, and restricted stock unit dilution
|
|
4,878
|
|
|
-
|
|
-
|
|
4,834
|
|
|
|
|
|
|
|
|
|
|
Warrant dilution
|
|
15,999
|
|
|
-
|
|
-
|
|
2,221
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares outstanding
|
|
240,236
|
|
|
225,727
|
|
219,689
|
|
235,532
|
|
|
|
|
|
|
|
|
|
|
Warrant dilution (1) |
|
(15,999
|
)
|
|
-
|
|
-
|
|
(2,221
|
)
|
|
|
|
|
|
|
|
|
|
Shares repurchased under a special share repurchase program (1) |
|
7,060
|
|
|
414
|
|
5,669
|
|
139
|
|
|
|
|
|
|
|
|
|
|
Stock option, restricted stock, and restricted stock unit dilution (2) |
|
-
|
|
|
4,533
|
|
4,968
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares outstanding
|
|
231,297
|
|
|
230,674
|
|
230,326
|
|
233,450
|
|
|
|
|
(1) For the non-GAAP presentation, diluted weighted
average common shares outstanding have been adjusted to exclude
the impact of the Warrants and the shares repurchased under
special share repurchase programs, which were established to
mitigate the potentially dilutive effect of the Warrants and
supplement our previously executed hedging strategy.
|
|
|
|
|
(2) For the non-GAAP presentation, diluted weighted
average common shares outstanding have been adjusted to include
the impact of the stock options, restricted stock, and restricted
stock units that were anti-dilutive for the GAAP presentation.
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
WARRANT COVERAGE INFORMATION
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
2016 Warrant Coverage:
|
|
6/30/2015 (1)
|
|
7/22/2015 (2)
|
Shares from 2016 Capped Calls
|
|
11.2
|
|
|
10.4
|
|
Share Repurchases (3)
|
|
8.5
|
|
|
9.3
|
|
2015 Call Options (4)
|
|
3.0
|
|
|
3.0
|
|
Total Shares Covered
|
|
22.7
|
|
|
22.7
|
|
|
|
|
|
|
2016 Warrant Shares
|
|
22.7
|
|
|
22.7
|
|
2016 Warrant Coverage
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 Warrant Coverage:
|
|
|
|
|
Shares from 2017 Capped Calls
|
|
10.3
|
|
|
9.4
|
|
Share Repurchases (3)
|
|
0.8
|
|
|
-
|
|
2015 Call Options (4)
|
|
-
|
|
|
-
|
|
Total Shares Covered
|
|
11.1
|
|
|
9.4
|
|
|
|
|
|
|
2017 Warrant Shares
|
|
22.7
|
|
|
22.7
|
|
2017 Warrant Coverage
|
|
48.7
|
%
|
|
41.6
|
%
|
|
|
|
(1)
|
|
Based on June 30, 2015 closing stock price of $106.34.
|
|
|
|
(2)
|
|
Based on July 22, 2015 closing stock price of $114.95.
|
|
|
|
(3)
|
|
Includes three million Call Options exercised between April 2015
and June 2015.
|
|
|
|
(4)
|
|
Assumes the Company successfully exercises the remaining three
million Call Options between July 2015 and October 2015, for a
total cost of approximately $280 million.
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
Revenue
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$32,758,828
|
|
|
$29,812,837
|
|
|
9.9
|
%
|
Other
|
|
1,532,907
|
|
|
620,275
|
|
|
147.1
|
%
|
Intersegment eliminations
|
|
(58,179
|
)
|
|
(84,958
|
)
|
|
-31.5
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$34,233,556
|
|
|
$30,348,154
|
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
Operating income
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$377,771
|
|
|
$359,795
|
|
|
5.0
|
%
|
Other
|
|
77,372
|
|
|
33,678
|
|
|
129.7
|
%
|
Total segment operating income
|
|
455,143
|
|
|
393,473
|
|
|
|
Gains on antitrust litigation settlements
|
|
43,567
|
|
|
2,524
|
|
|
|
LIFO expense
|
|
(158,710
|
)
|
|
(133,237
|
)
|
|
|
Acquisition related intangibles amortization
|
|
(19,710
|
)
|
|
(5,701
|
)
|
|
|
Warrant expense
|
|
14,900
|
|
|
(145,040
|
)
|
|
|
Employee severance, litigation and other
|
|
(2,625
|
)
|
|
(1,142
|
)
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$332,565
|
|
|
$110,877
|
|
|
199.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
2.28
|
%
|
|
2.32
|
%
|
|
|
Operating expenses
|
|
1.12
|
%
|
|
1.11
|
%
|
|
|
Operating income
|
|
1.15
|
%
|
|
1.21
|
%
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Gross profit
|
|
17.01
|
%
|
|
21.19
|
%
|
|
|
Operating expenses
|
|
11.96
|
%
|
|
15.76
|
%
|
|
|
Operating income
|
|
5.05
|
%
|
|
5.43
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.60
|
%
|
|
2.28
|
%
|
|
|
Operating expenses
|
|
1.63
|
%
|
|
1.91
|
%
|
|
|
Operating income
|
|
0.97
|
%
|
|
0.37
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.94
|
%
|
|
2.71
|
%
|
|
|
Operating expenses
|
|
1.61
|
%
|
|
1.41
|
%
|
|
|
Operating income
|
|
1.33
|
%
|
|
1.30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30,
|
Revenue
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$97,504,075
|
|
|
$86,367,923
|
|
|
12.9
|
%
|
Other
|
|
3,214,977
|
|
|
1,796,910
|
|
|
78.9
|
%
|
Intersegment eliminations
|
|
(227,627
|
)
|
|
(184,414
|
)
|
|
23.4
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$100,491,425
|
|
|
$87,980,419
|
|
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30,
|
Operating (loss) income
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$1,256,747
|
|
|
$1,019,506
|
|
|
23.3
|
%
|
Other
|
|
186,688
|
|
|
113,261
|
|
|
64.8
|
%
|
Total segment operating income
|
|
1,443,435
|
|
|
1,132,767
|
|
|
27.4
|
%
|
Gains on antitrust litigation settlements
|
|
65,050
|
|
|
24,396
|
|
|
|
LIFO expense
|
|
(453,878
|
)
|
|
(293,647
|
)
|
|
|
Acquisition related intangibles amortization
|
|
(34,478
|
)
|
|
(17,484
|
)
|
|
|
Warrant expense
|
|
(1,109,211
|
)
|
|
(267,000
|
)
|
|
|
Employee severance, litigation and other
|
|
(30,999
|
)
|
|
(7,411
|
)
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
($120,081
|
)
|
|
$571,621
|
|
|
-121.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
2.41
|
%
|
|
2.29
|
%
|
|
|
Operating expenses
|
|
1.12
|
%
|
|
1.11
|
%
|
|
|
Operating income
|
|
1.29
|
%
|
|
1.18
|
%
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Gross profit
|
|
18.58
|
%
|
|
22.17
|
%
|
|
|
Operating expenses
|
|
12.78
|
%
|
|
15.87
|
%
|
|
|
Operating income
|
|
5.81
|
%
|
|
6.30
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.54
|
%
|
|
2.40
|
%
|
|
|
Operating expenses
|
|
2.66
|
%
|
|
1.75
|
%
|
|
|
Operating (loss) income
|
|
-0.12
|
%
|
|
0.65
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.93
|
%
|
|
2.70
|
%
|
|
|
Operating expenses
|
|
1.49
|
%
|
|
1.42
|
%
|
|
|
Operating income
|
|
1.44
|
%
|
|
1.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
June 30,
|
|
September 30,
|
|
|
2015
|
|
2014
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$2,555,183
|
|
$1,808,513
|
Accounts receivable, net
|
|
7,596,558
|
|
6,312,883
|
Merchandise inventories
|
|
9,639,961
|
|
8,593,852
|
Prepaid expenses and other
|
|
110,332
|
|
84,957
|
Total current assets
|
|
19,902,034
|
|
16,800,205
|
|
|
|
|
|
Property and equipment, net
|
|
958,687
|
|
899,582
|
Other long-term assets
|
|
6,472,783
|
|
3,832,396
|
|
|
|
|
|
Total assets
|
|
$27,333,504
|
|
$21,532,183
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$19,348,994
|
|
$15,592,834
|
Short-term debt
|
|
7,370
|
|
-
|
Other current liabilities
|
|
1,760,927
|
|
1,657,326
|
Total current liabilities
|
|
21,117,291
|
|
17,250,160
|
|
|
|
|
|
Long-term debt
|
|
3,742,781
|
|
1,995,632
|
|
|
|
|
|
Other long-term liabilities
|
|
897,808
|
|
329,492
|
|
|
|
|
|
Stockholders' equity
|
|
1,575,624
|
|
1,956,899
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$27,333,504
|
|
$21,532,183
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Nine
|
|
Nine
|
|
|
Months Ended
|
|
Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
Net (loss) income
|
|
($499,174
|
)
|
|
$208,682
|
|
Loss from discontinued operations
|
|
-
|
|
|
7,546
|
|
(Loss) income from continuing operations
|
|
(499,174
|
)
|
|
216,228
|
|
Adjustments to reconcile (loss) income from continuing operations
to net cash provided by operating activities (1)
|
|
1,314,045
|
|
|
456,446
|
|
Changes in operating assets and liabilities, excluding the effects
of acquisitions and divestitures:
|
|
|
|
|
Accounts receivable
|
|
(868,708
|
)
|
|
(535,806
|
)
|
Merchandise inventories (2) |
|
(700,331
|
)
|
|
(1,002,589
|
)
|
Accounts payable, accrued expenses, and income taxes
|
|
3,531,365
|
|
|
1,475,627
|
|
Other
|
|
(16,932
|
)
|
|
30,135
|
|
Net cash provided by operating activities - continuing operations
|
|
2,760,265
|
|
|
640,041
|
|
Net cash used in operating activities - discontinued operations
|
|
-
|
|
|
(7,546
|
)
|
Net cash provided by operating activities
|
|
2,760,265
|
|
|
632,495
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(157,089
|
)
|
|
(198,670
|
)
|
Cost of acquired companies, net of cash acquired
|
|
(2,606,524
|
)
|
|
(9,103
|
)
|
Cost of equity investments
|
|
-
|
|
|
(117,794
|
)
|
Other
|
|
18,974
|
|
|
6,366
|
|
Net cash used in investing activities
|
|
(2,744,639
|
)
|
|
(319,201
|
)
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
Net borrowings
|
|
1,753,291
|
|
|
566,402
|
|
Purchases of common stock (3) |
|
(800,299
|
)
|
|
(570,593
|
)
|
Exercises of stock options
|
|
178,146
|
|
|
109,694
|
|
Cash dividends on common stock
|
|
(192,054
|
)
|
|
(161,558
|
)
|
Purchases of call options
|
|
(180,000
|
)
|
|
(211,397
|
)
|
Other
|
|
(28,040
|
)
|
|
(14,984
|
)
|
Net cash provided by (used in) financing activities
|
|
731,044
|
|
|
(282,436
|
)
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
746,670
|
|
|
30,858
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
1,808,513
|
|
|
1,231,006
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$2,555,183
|
|
|
$1,261,864
|
|
|
|
|
(1)
|
|
Adjustments include non-cash warrant expense of $1,109.2 million
and $267.0 million for the nine months ended June 30, 2015 and
2014, respectively.
|
|
|
|
(2)
|
|
Merchandise inventories include LIFO expense of $453.9 million and
$293.6 million for the nine months ended June 30, 2015 and 2014,
respectively.
|
|
|
|
(3)
|
|
Includes purchases made under the special share repurchase program
totaling $555.7 million in the nine months ended June 30, 2015,
which includes $18.0 million of fiscal 2014 purchases that cash
settled in October 2014. Additional purchases made in June 2015
under the special program totaling $14.3 million cash settled in
July 2015.
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150723005256/en/
Source: AmerisourceBergen Corporation
AmerisourceBergen Corporation
Barbara Brungess
Vice
President, Corporate & Investor Relations
610-727-7199
bbrungess@amerisourcebergen.com