VALLEY FORGE, Pa.--(BUSINESS WIRE)--July 26,
2007--AmerisourceBergen Corporation (NYSE:ABC) today reported results
for its fiscal third quarter ended June 30, 2007. The following
results are presented in accordance with U.S. generally accepted
accounting principles (GAAP).
Fiscal Third Quarter Highlights
-- Diluted earnings per share of $0.69, including net $0.09
benefit from special items, up 19 percent.
-- Operating revenue of $15.4 billion, up 7 percent.
-- Cash flow from operations of $370 million, above internal
expectations.
-- Early completion of $750 million share repurchase program and
announcement of a new $850 million program.
Fiscal Nine Months Highlights
-- Diluted earnings per share from continuing operations of
$1.99, including net $0.06 benefit from special items, up 21
percent.
-- Operating revenue of $46.4 billion, up 10 percent.
-- Pharmaceutical Distribution operating margin of 1.24 percent,
up 10 basis points.
-- Cash flow from operations of $1.1 billion, above internal
expectations.
-- Capital deployment: $872 million in share repurchases;
announcement of more than $400 million in acquisitions closed
or under agreement; and dividend doubled.
"Our fiscal third quarter produced solid results, as we remain on
track to exceed the performance targets we set at the beginning of the
2007 fiscal year," said R. David Yost, AmerisourceBergen's Chief
Executive Officer. "Our 7 percent operating revenue growth was led by
continued strong performance in our specialty drug distribution
business. That revenue growth, our strong generic performance in our
broad-line drug distribution business, and our disciplined use of
cash, were the primary drivers of our diluted earnings per share
performance. With our strong cash position, we repurchased more than
$500 million of our shares in the June quarter and $872 million in the
first nine months of fiscal 2007, and we continue to have significant
financial flexibility."
Discussion of Results
AmerisourceBergen's operating revenue was $15.4 billion in the
third quarter of fiscal 2007 compared to $14.4 billion for the same
period last year, a 7 percent increase. Bulk deliveries in the quarter
decreased 15 percent to $1.1 billion from $1.2 billion in last year's
fiscal third quarter.
Consolidated operating income in the quarter increased 11 percent
to $209.6 million, primarily due to increased operating income in the
Pharmaceutical Distribution segment. In addition, a $31.9 million gain
from settlements of pharmaceutical manufacturer antitrust litigation
cases, less $3.5 million of net charges for facility consolidations,
employee severance and other costs, had a net positive $28.4 million
impact on consolidated operating income in the fiscal 2007 third
quarter. In the previous fiscal year's third quarter, the positive net
impact of antitrust litigation settlements and other charges was $4.6
million. Consolidated operating expenses in fiscal 2007 third quarter
included an increase in bad debt expense of $5.0 million, primarily in
the PharMerica institutional pharmacy business, an increase in equity
compensation of $2.4 million and a reduction in incentive compensation
related to certain business units of $8.6 million.
The other loss of $3.5 million for the third quarter of fiscal
2007 was primarily related to the write down of an equity investment.
The effective tax rate in the third quarter of fiscal 2007 was
35.0 percent, which was positively impacted by certain adjustments and
a shift towards more tax-free invested cash in the quarter. The
effective tax rate was 36.9 percent in the previous fiscal year's
third quarter, and the Company expects its effective tax rate going
forward to be between 37.0 percent and 38.0 percent.
Diluted earnings per share were $0.69 in the third quarter of
fiscal 2007, compared to $0.58 in the previous fiscal year's third
quarter, a 19 percent increase. Included in the results for the third
quarter of fiscal 2007 is a gain from the antitrust litigation
settlements net of charges for facility consolidations, employee
severance and other costs of $0.09 per diluted share. The previous
fiscal year's third quarter had a net gain of $2.9 million or $0.01
per diluted share from similar items.
Diluted average shares outstanding for the third quarter of fiscal
year 2007 were 188.0 million, down 19.4 million shares or 9 percent
from the previous fiscal year's third quarter due to share
repurchases, net of option exercises.
For the first nine months of fiscal 2007, AmerisourceBergen's
operating revenue was $46.4 billion compared to $42.0 billion for the
same period last year, a 10 percent increase. Bulk deliveries in the
first nine months of the fiscal year decreased 6 percent to $3.3
billion.
Consolidated operating income in the first nine months of the
fiscal year increased 16 percent to $639.3 million due to operating
income growth in the Pharmaceutical Distribution segment.
For the first nine months of fiscal 2007, diluted earnings per
share from continuing operations were $1.99, compared to $1.65 in the
previous year's first nine months, a 21 percent increase. Diluted
average shares outstanding for the first nine months of fiscal year
2007 were 191.6 million, down 17.9 million from the same period in the
prior fiscal year.
"For the fiscal 2007 third quarter, excellent operating
performance in the Pharmaceutical Distribution segment, more than
offset the lower than expected performance in the PharMerica segment,"
said Kurt J. Hilzinger, AmerisourceBergen's President and Chief
Operating Officer.
"In our Drug Corporation, which provides pharmaceutical
distribution and related services to pharmacies, operating income
benefited from an above market sales increase in our proprietary
generic drug program which offset in part the impact of fewer drug
price increases in the June quarter. Benefits from our Optimiz(R)
program, which enhanced the efficiency of our distribution center
network, continued to improve our cost structure in the quarter.
"With operating revenue growth significantly above market again,
our Specialty Group, which focuses on the distribution of specialty
pharmaceuticals to physicians and the services that support that
market, continued its strong growth, despite slower growth in the
anemia drug market. Its market-leading oncology businesses as well as
other distribution businesses to physicians continue to drive growth
faster than the overall pharmaceutical market.
"Our Packaging Group continued to perform well. In the quarter,
Anderson Packaging began packaging six new products for branded
manufacturers, while American Health Packaging launched 14 new
proprietary unit-dose offerings for various end-use markets. The
pipeline of new products and initiatives remains solid.
"Our PharMerica segment performance did not meet our expectations
in the June quarter. The institutional pharmacy business is expected
to be spun off, tax free, on July 31, 2007, and then be merged on a
50-50 basis with Kindred Healthcare, Inc.'s institutional pharmacy
business to form PharMerica Corporation, an independent, public
company. PMSI, our market-leading workers' compensation business, is
in active turnaround where we have added new management and are
investing in the business."
Segment Review
AmerisourceBergen operates in two segments, Pharmaceutical
Distribution and PharMerica. Pharmaceutical Distribution includes the
operations of AmerisourceBergen Drug Corporation (ABDC), Specialty
Group (ABSG) and Packaging Group (ABPG), and PharMerica includes the
PharMerica Long Term Care (LTC) institutional pharmacy business and
PMSI, the workers' compensation business. Intersegment sales of $226.2
million in the third quarter of fiscal 2007 from AmerisourceBergen
Drug Corporation to PharMerica, which are included in the
Pharmaceutical Distribution segment's operating revenue, are
eliminated for consolidated reporting purposes.
Pharmaceutical Distribution Segment
Operating revenue of $15.2 billion in the third quarter of fiscal
2007 was up 7 percent compared to the same quarter in the previous
fiscal year as above market growth in ABSG of 24 percent drove
operating revenues. ABDC revenues grew 3 percent reflecting higher
utilization of lower-priced generic drugs and the loss of a large
low-margin customer earlier in the year.
For the segment, gross profit as a percentage of operating revenue
in the third quarter of fiscal 2007 was 2.95 percent compared to 3.03
percent in the same period in the prior fiscal year. Strong generic
sales growth helped offset lower, brand-name pharmaceutical price
appreciation and a decline in ABSG's gross margin due to its business
mix, as its lower margin distribution businesses grew faster than its
higher margin service businesses. Operating expenses as a percentage
of operating revenue for the segment in the fiscal 2007 third quarter
were 1.84 percent, down from 1.93 percent in the prior year's third
quarter, reflecting continued positive impact from ABDC's Optimiz(R)
program.
Segment operating income for the fiscal 2007 third quarter was
$169.0 million, an 8 percent increase over the same period in fiscal
2006. Operating income as a percentage of operating revenue in the
third quarter of 2007 was 1.11 percent, up one basis point over the
same quarter last fiscal year. Operating margin increased 10 basis
points to 1.24 percent for the first nine months of the 2007 fiscal
year.
PharMerica
PharMerica's operating revenue for the third quarter of fiscal
2007 was flat at $423.3 million, compared with $424.0 million in the
previous year's third quarter. In the third quarter of fiscal 2007,
LTC operating revenues were $306.7 million, down slightly from the
prior-year third quarter, and PMSI operating revenues were $116.6
million, up 1 percent. Operating income for the third quarter of
fiscal 2007 was $12.1 million, down significantly from the same
quarter last fiscal year. LTC contributed $6.4 million of the
segment's operating income, down $4.6 million from the prior year's
third quarter, with the decline due primarily to a $4.0 million
increase in bad debt expense. PMSI contributed $5.7 million in
operating income to the segment, down significantly from the previous
year's third quarter due to competitive pricing pressures and the cost
of IT infrastructure and customer initiatives. In the fiscal 2006
third quarter, PMSI was positively impacted by $3.2 million in reduced
sales tax expenses.
Looking Ahead
"With one quarter remaining in the fiscal year, we are increasing
and narrowing our GAAP diluted earnings per share expectations for
fiscal 2007 to a range of $2.60 to $2.68, from the previous range of
$2.50 to $2.65," said Yost. "The new range includes a net $0.05
benefit for the year in special items, including an expected $0.01
charge in the September quarter, and continues to reflect expected
earnings of $0.09 to $0.11 from the PharMerica institutional pharmacy
business for the entire fiscal year 2007. We expect to spin off the
PharMerica institutional pharmacy business on a tax-free basis on July
31, 2007.
After the expected spinoff of our institutional pharmacy business,
the historical results of that business, including the current fiscal
year, will be reclassified to discontinued operations. At that time,
our fiscal 2007 expectations for diluted earnings per share from
continuing operations will be reduced approximately $0.10 to a range
of $2.50 to $2.58, implying a fiscal 2007 fourth quarter diluted
earnings per share from continuing operations in the range of $0.58 to
$0.66 without the institutional pharmacy business and including the
$0.01 special charge.
"For fiscal year 2007, our diluted earnings per share guidance,
with or without the institutional pharmacy business, assumes operating
revenue growth of 9 percent to 10 percent, excluding the pending
acquisition of Bellco Health, and continues to reflect operating
margin expansion in the high single-digit basis point range for the
Pharmaceutical Distribution segment.
"With our operating cash generation coming in ahead of
expectations at the end of nine months, we are raising our expectation
for free cash flow in fiscal year 2007 by $175 million to a range of
$750 million to $825 million from the previous range of $575 million
to $650 million. Capital expenditures, which are included in the free
cash flow expectation, remain unchanged in the $100 million to $125
million range."
Conference Call
The Company will host a conference call to discuss its results at
11:00 a.m. Eastern Daylight Time on July 26, 2007. Participating in
the conference call will be: R. David Yost, Chief Executive Officer;
Kurt J. Hilzinger, President and Chief Operating Officer; and Michael
D. DiCandilo, Executive Vice President and Chief Financial Officer.
To access the live conference call via telephone:
Dial in: (612) 332-0523, no access code required.
To access the live webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.
A replay of the telephone call and webcast will be available from 2:30
p.m. July 26, 2007 until 11:59 p.m. August 3, 2007. The Webcast
replay will be available for 30 days.
To access the replay via telephone:
Dial in: 800-475-6701 from within the U.S., access code: 879908
(320) 365-3844 from outside the U.S., access code: 879908
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is one of the world's largest
pharmaceutical services companies serving the United States, Canada
and selected global markets. Servicing both pharmaceutical
manufacturers and healthcare providers in the pharmaceutical supply
channel, the Company provides drug distribution and related services
designed to reduce costs and improve patient outcomes.
AmerisourceBergen's service solutions range from pharmacy automation
and pharmaceutical packaging to pharmacy services for skilled nursing
and assisted living facilities, reimbursement and pharmaceutical
consulting services, and physician education. With more than $61
billion in annual revenue, AmerisourceBergen is headquartered in
Valley Forge, PA, and employs more than 13,000 people.
AmerisourceBergen is ranked #29 on the Fortune 500 list. For more
information, go to www.amerisourcebergen.com.
Forward-Looking Statements
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These statements
are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained in the forward-looking
statements. The following factors, among others, could cause actual
results to differ materially from those described in any
forward-looking statements: competitive pressures; the loss of one or
more key customer or supplier relationships; customer defaults or
insolvencies; changes in customer mix; supplier defaults or
insolvencies; changes in pharmaceutical manufacturers' pricing and
distribution policies or practices; adverse resolution of any contract
or other disputes with customers (including departments and agencies
of the U.S. Government) or suppliers; regulatory changes (including
increased government regulation of the pharmaceutical supply channel);
government enforcement initiatives (including (i) the imposition of
increased obligations upon pharmaceutical distributors to detect and
prevent suspicious orders of controlled substances (ii) the
commencement of further administrative actions by the U. S. Drug
Enforcement Administration seeking to suspend or revoke the license of
any of the Company's distribution facilities to distribute controlled
substances, or (iii) the commencement of any enforcement actions by
any U.S. Attorney alleging violation of laws and regulations regarding
diversion of controlled substances and suspicious order monitoring);
changes in U.S. government policies (including reimbursement changes
arising from federal legislation, including the Medicare Modernization
Act and the Deficit Reduction Act of 2005); changes in regulatory or
clinical medical guidelines and/or reimbursement practices for the
pharmaceuticals we distribute; price inflation in branded
pharmaceuticals and price deflation in generics; declines in the
amounts of market share rebates offered by pharmaceutical
manufacturers to the PharMerica Long-Term Care business, declines in
the amounts of rebates that the PharMerica Long-Term Care business can
retain, and/or the inability of the business to offset the rebate
reductions that have already occurred or any rebate reductions that
may occur in the future; any disruption to or other adverse effects
upon the PharMerica Long-Term Care business caused by the announcement
of the Company's agreement to combine the PharMerica Long-Term Care
business with the institutional pharmacy business of Kindred
Healthcare, Inc. into a new public company that will be owned 50% by
the Company's shareholders (the "PharMerica LTC Transaction"); the
inability of the Company to successfully complete the PharMerica LTC
Transaction or any other transaction that the Company may wish to
pursue from time to time; fluctuations in market interest rates;
operational or control issues arising from the Company's outsourcing
of information technology activities; success of integration,
restructuring or systems initiatives; fluctuations in the U.S. dollar
- Canadian dollar exchange rate and other foreign exchange rates;
economic, business, competitive and/or regulatory developments in
Canada, the United Kingdom and elsewhere outside of the United States;
acquisition of businesses that do not perform as we expect or that are
difficult for us to integrate or control; changes in tax legislation
or adverse resolution of challenges to our tax positions; and other
economic, business, competitive, legal, tax, regulatory and/or
operational factors affecting the business of the Company 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, 2006 and elsewhere in that report and (ii) in other
reports filed by the Company pursuant to the Securities Exchange Act
of 1934.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Three Three
Months Months
Ended % of Ended % of
June 30, Operating June 30, Operating %
2007 Revenue 2006 Revenue Change
----------- --------- ------------ --------- -------
Revenue:
Operating
revenue $15,391,609 100.00% $14,446,280 100.00% 7%
Bulk deliveries
to customer
warehouses 1,054,319 1,240,035 -15%
----------- ------------
Total revenue 16,445,928 15,686,315 5%
Cost of goods sold 15,848,705 15,129,136 5%
----------- ------------
Gross profit 597,223 3.88% 557,179 3.86% 7%
Operating
expenses:
Distribution,
selling and
administrative 359,877 2.34% 346,394 2.40% 4%
Depreciation and
amortization 24,279 0.16% 22,027 0.15% 10%
Facility
consolidations,
employee
severance, and
other 3,496 0.02% (86) - N/M
----------- ------------
Operating income 209,571 1.36% 188,844 1.31% 11%
Other loss 3,516 0.02% 87 - N/M
Interest expense,
net 6,325 0.04% (584) - N/M
----------- ------------
Income before
income taxes 199,730 1.30% 189,341 1.31% 5%
Income taxes 69,822 0.45% 69,873 0.48% -
----------- ------------
Net income $129,908 0.84% $119,468 0.83% 9%
=========== ============
Earnings per
share:
Basic $0.70 $0.58 21%
Diluted $0.69 $0.58 19%
Weighted average
common shares
outstanding:
Basic 185,172 204,830
Diluted 187,951 207,335
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Nine Nine
Months Months
Ended % of Ended % of
June 30, Operating June 30, Operating %
2007 Revenue 2006 Revenue Change
----------- --------- ------------ --------- -------
Revenue:
Operating
revenue $46,371,909 100.00% $42,031,309 100.00% 10%
Bulk deliveries
to customer
warehouses 3,311,953 3,528,832 -6%
----------- ------------
Total revenue 49,683,862 45,560,141 9%
Cost of goods sold 47,885,553 43,913,821 9%
----------- ------------
Gross profit 1,798,309 3.88% 1,646,320 3.92% 9%
Operating
expenses:
Distribution,
selling and
administrative 1,080,205 2.33% 1,017,366 2.42% 6%
Depreciation and
amortization 69,128 0.15% 63,263 0.15% 9%
Facility
consolidations,
employee
severance, and
other 9,654 0.02% 12,318 0.03% -22%
----------- ------------
Operating income 639,322 1.38% 553,373 1.32% 16%
Other loss
(income) 3,958 0.01% (4,956) -0.01% N/M
Interest expense,
net 24,357 0.05% 13,272 0.03% 84%
----------- ------------
Income from
continuing
operations before
income taxes 611,007 1.32% 545,057 1.30% 12%
Income taxes 229,416 0.49% 199,023 0.47% 15%
----------- ------------
Income from
continuing
operations 381,591 0.82% 346,034 0.82% 10%
Loss from
discontinued
operations, net
of tax - 298
----------- ------------
Net income $381,591 0.82% $345,736 0.82% 10%
=========== ============
Earnings per
share:
Basic
Continuing
operations $2.02 $1.67 21%
Discontinued
operations - -
----------- ------------
Net income $2.02 $1.67 21%
=========== ============
Diluted
Continuing
operations $1.99 $1.65 21%
Discontinued
operations - -
----------- ------------
Net income $1.99 $1.65 21%
=========== ============
Weighted average
common shares
outstanding:
Basic 188,795 207,061
Diluted 191,590 209,503
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
June 30, September 30,
2007 2006
------------- -------------
Current assets:
Cash and cash equivalents $487,009 $1,261,268
Short-term investment securities
available-for-sale 954,200 67,840
Accounts receivable, net 3,549,026 3,427,139
Merchandise inventories 4,129,002 4,422,055
Prepaid expenses and other 30,944 32,105
------------- -------------
Total current assets 9,150,181 9,210,407
Property and equipment, net 528,987 509,746
Other long-term assets 3,212,052 3,063,767
------------- -------------
Total assets $12,891,220 $12,783,920
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,887,324 $6,499,264
Current portion of long-term debt 621 1,560
Other current liabilities 952,949 958,364
------------- -------------
Total current liabilities 7,840,894 7,459,188
Long-term debt, less current portion 1,212,935 1,093,931
Other long-term liabilities 101,552 89,644
Stockholders' equity 3,735,839 4,141,157
------------- -------------
Total liabilities and stockholders'
equity $12,891,220 $12,783,920
============= =============
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Nine
Months Ended Months Ended
June 30, June 30,
2007 2006
--------------- --------------
Operating Activities:
Net income $381,591 $345,736
Adjustments to reconcile net income
to net cash provided by operating
activities 139,535 140,085
Changes in operating assets and
liabilities 559,201 398,854
--------------- --------------
Net cash provided by operating
activities 1,080,327 884,675
--------------- --------------
Investing Activities:
Capital expenditures (83,700) (89,174)
Cost of acquired companies, net of
cash acquired (169,475) (248,718)
Proceeds from sales of property and
equipment 6,443 45,799
Proceeds from sale-leaseback
transactions - 28,143
Proceeds from sales of other assets 4,852 7,582
Net short-term investment activity (886,360) 325,835
--------------- --------------
Net cash (used in) provided by
investing activities (1,128,240) 69,467
--------------- --------------
Financing Activities:
Net borrowings 103,679 123,817
Deferred financing costs and other (2,157) (2,610)
Purchases of common stock (888,390) (505,964)
Exercises of stock options 89,958 115,714
Cash dividends on common stock (28,515) (15,570)
Purchases of common stock for
employee stock purchase plan (921) (1,037)
--------------- --------------
Net cash used in financing activities (726,346) (285,650)
--------------- --------------
(Decrease) increase in cash and cash
equivalents (774,259) 668,492
Cash and cash equivalents at beginning
of period 1,261,268 966,553
--------------- --------------
Cash and cash equivalents at end of
period $487,009 $1,635,045
=============== ==============
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended June 30,
-----------------------------------
Operating Revenue 2007 2006 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $15,194,513 $14,233,624 7%
PharMerica 423,273 424,026 -
Intersegment eliminations (226,177) (211,370) 7%
------------ ------------
Operating revenue $15,391,609 $14,446,280 7%
============ ============
Three Months Ended June 30,
-----------------------------------
Operating Income 2007 2006 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $169,010 $156,718 8%
PharMerica 12,138 27,483 -56%
Facility consolidations, employee
severance, and other (3,496) 86 N/M
Gain on antitrust litigation
settlements 31,919 4,557 N/M
------------ ------------
Operating income $209,571 $188,844 11%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 2.95% 3.03%
Operating expenses 1.84% 1.93%
Operating income 1.11% 1.10%
PharMerica
Gross profit 27.53% 28.47%
Operating expenses 24.66% 21.99%
Operating income 2.87% 6.48%
AmerisourceBergen Corporation
Gross profit 3.88% 3.86%
Operating expenses 2.52% 2.55%
Operating income 1.36% 1.31%
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Nine Months Ended June 30,
-----------------------------------
Operating Revenue 2007 2006 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $45,771,684 $41,459,337 10%
PharMerica 1,290,518 1,245,969 4%
Intersegment eliminations (690,293) (673,997) 2%
------------ ------------
Operating revenue $46,371,909 $42,031,309 10%
============ ============
Nine Months Ended June 30,
-----------------------------------
Operating Income 2007 2006 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $567,053 $471,545 20%
PharMerica 46,361 62,161 -25%
Facility consolidations, employee
severance, and other (9,654) (12,318) -22%
Gain on antitrust litigation
settlements 35,562 31,985 11%
------------ ------------
Operating income $639,322 $553,373 16%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.07% 3.05%
Operating expenses 1.83% 1.92%
Operating income 1.24% 1.14%
PharMerica
Gross profit 27.69% 27.92%
Operating expenses 24.10% 22.93%
Operating income 3.59% 4.99%
AmerisourceBergen Corporation
Gross profit 3.88% 3.92%
Operating expenses 2.50% 2.60%
Operating income 1.38% 1.32%
AMERISOURCEBERGEN CORPORATION
EARNINGS PER SHARE
(In thousands, except per share data)
(unaudited)
Basic earnings per share is computed on the basis of the weighted
average number of shares of common stock outstanding during the
periods presented. Diluted earnings per share is computed on the
basis of the weighted average number of shares of common stock
outstanding during the periods presented plus the dilutive effect of
stock options and restricted stock.
Three Months Ended Nine Months Ended
June 30, June 30,
2007 2006 2007 2006
--------- -------- -------- --------
Income from continuing operations $129,908 $119,468 $381,591 $346,034
========= ======== ======== ========
Weighted average common shares
outstanding - basic 185,172 204,830 188,795 207,061
Effect of dilutive securities -
stock options and restricted
stock 2,779 2,505 2,795 2,442
--------- -------- -------- --------
Weighted average common shares
outstanding - diluted 187,951 207,335 191,590 209,503
========= ======== ======== ========
Earnings per share:
Basic
Continuing operations $0.70 $0.58 $2.02 $1.67
Discontinued operations - - - -
--------- -------- -------- --------
Net income $0.70 $0.58 $2.02 $1.67
========= ======== ======== ========
Diluted
Continuing operations $0.69 $0.58 $1.99 $1.65
Discontinued operations - - - -
--------- -------- -------- --------
Net income $0.69 $0.58 $1.99 $1.65
========= ======== ======== ========
CONTACT: AmerisourceBergen Corporation
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation