Significant Operating Margin Expansion
VALLEY FORGE, Pa.--(BUSINESS WIRE)--July 24,
2008--AmerisourceBergen Corporation (NYSE:ABC) today reported that in
its fiscal year 2008 third quarter ended June 30, 2008, total revenue
increased 10 percent to a record $18.0 billion, diluted earnings per
share from continuing operations were $0.70 including $0.03 in special
charges, up 4 percent, and the Pharmaceutical Distribution operating
margin increased 10 basis points.
AmerisourceBergen also announced that the Company has signed an
agreement to sell its PMSI workers' compensation business to H.I.G.
Capital, LLC for approximately $40 million, plus a contingency payment
of up to an additional $10 million and subject to adjustments at
closing. As a result, AmerisourceBergen is taking a non-cash charge of
$222 million in the June quarter of fiscal 2008. The Company expects
to complete the transaction by the end of September this year. In
addition, results for the current and prior fiscal year for PMSI,
including the charge, have been reclassified as a discontinued
operation.
Fiscal Third Quarter Highlights
-- Record total revenue of $18.0 billion, up 10 percent.
-- Diluted earnings per share from continuing operations of
$0.70, including $0.03 in special charges, a 4 percent
increase; and up 30 percent when excluding PharMerica LTC in
the third quarter of fiscal 2007 and special items in the same
period of fiscal years 2007 and 2008.
-- Pharmaceutical Distribution operating margin of 1.14 percent,
up 10 basis points.
-- Cash flow from operations of $131 million.
-- $159 million of share repurchases.
Fiscal First Nine Months Highlights
-- Record total revenue of $53.0 billion, up 7 percent.
-- Record diluted earnings per share from continuing operations
of $2.16, including $0.03 in special charges, a 13 percent
increase; and up 24 percent when excluding PharMerica LTC in
fiscal 2007 and special items in the same period of fiscal
years 2007 and 2008.
-- Pharmaceutical Distribution operating margin of 1.19 percent,
up 4 basis points.
-- Cash flow from operations of $223 million.
-- $554 million in share repurchases.
"Our outstanding June quarter results in continuing operations
were driven by excellent performance across the core distribution
businesses, including our specialty business," said R. David Yost,
AmerisourceBergen's President and Chief Executive Officer.
"Above-market revenue growth, solid manufacturer price appreciation,
and outstanding expense management all played a key role in delivering
the results. This superior performance was achieved in a
pharmaceutical market that was soft by historical standards. Our
working capital management remains exceptional; we improved our
liquidity in the quarter; and we continue to have a strong balance
sheet."
Commenting on the sale of PMSI, Yost said, "We were very
disappointed with PMSI's performance in this quarter, and after
re-evaluating our alternatives, we decided to sell the PMSI workers'
compensation business in order to focus our full attention on our
pharmaceutical distribution and related businesses and allow H.I.G. to
focus on the opportunities at PMSI.
"Based on our strong performance, we have raised our expectations
for diluted earnings per share from continuing operations for fiscal
year 2008 to a range of $2.81 to $2.89 from the previous range of
$2.77 to $2.87. This guidance includes $0.03 of special charges and no
contribution from PMSI."
Consolidated Results
-- Total revenue was $18.0 billion in the third quarter of fiscal
2008 compared to $16.3 billion for the same period last year,
a 10 percent increase, reflecting an 11 percent increase in
the Pharmaceutical Distribution Segment.
-- Despite the 22 percent increase in operating income in the
Pharmaceutical Distribution Segment, consolidated operating
income in the fiscal 2008 third quarter decreased 3 percent to
$197.5 million from $202.9 million in the previous fiscal
year's third quarter. Special charges in the fiscal year
2008's third quarter, primarily for employee severance as the
Company continues to streamline its organization, had a $7.9
million negative impact on consolidated operating income. In
the previous fiscal year's third quarter, special items had a
net positive impact of $28.4 million and PharMerica Long-Term
Care (LTC), which was spun off in July 2007, contributed $6.1
million.
-- The effective tax rate for the third quarter of fiscal 2008
was 37.6 percent, compared to 34.8 percent in the previous
fiscal year's third quarter. The Company expects its ongoing
effective tax rate to be slightly above 38 percent.
-- Diluted earnings per share from continuing operations were up
4 percent to $0.70 in the third quarter of fiscal 2008
compared to $0.67 in the previous fiscal year's third quarter.
-- Excluding the benefits in the third quarter of fiscal year
2007 of $0.02 from PharMerica LTC and $0.09 in special items,
as well as the $0.03 special charge in the same quarter of
2008, AmerisourceBergen's diluted earnings per share from
continuing operations in the third quarter of fiscal year 2008
increased 30 percent.
-- Average diluted shares outstanding for the third quarter of
fiscal year 2008 were 161 million, down 27 million shares from
the previous fiscal year's third quarter due to share
repurchases, net of option exercises.
-- In the first nine months of fiscal 2008, total revenue was
$53.0 billion, a 7 percent increase over the $49.4 billion in
total revenue in the previous fiscal year's first nine months.
-- For the first nine months of fiscal 2008 diluted earnings per
share from continuing operations were $2.16 compared to $1.91
for the same period of the previous fiscal year, a 13 percent
increase, and up 24 percent when excluding PharMerica LTC in
fiscal 2007 and special items in the same period of both
fiscal years 2007 and 2008. In the first nine months of fiscal
2008, diluted earnings per share from continuing operations
were reduced by $0.03 from the net impact of special items. In
the prior year nine-month period, earnings per share from
continuing operations benefited $0.06 per diluted share due to
the net impact of special items, and the PharMerica LTC
business added $0.08 to diluted earnings per share in the
period.
AmerisourceBergen consists of the following two reportable
segments: Pharmaceutical Distribution (which includes the operations
of AmerisourceBergen Drug Corporation, Specialty Group, Packaging
Group and Bellco Health) and Other (which includes PharMerica
Long-Term Care through July 31, 2007, and excludes PMSI, which has
been reclassified to discontinued operations in all periods
presented).
Pharmaceutical Distribution Segment Results
-- Total revenue of $18.0 billion in the third quarter of fiscal
2008 was up 11 percent compared to the same quarter in the
previous fiscal year, due to an 8 percent increase in
AmerisourceBergen Drug Corporation revenue, primarily from its
institutional customers, and a 3 percent contribution from
Bellco Health, which was acquired at the beginning of the
fiscal year. Specialty Group total revenue was up 4 percent.
-- Gross profit as a percentage of total revenue increased 1
basis point to 2.77 percent in the fiscal 2008 third quarter
compared to the same period in the previous year driven by
solid price appreciation, including branded pharmaceuticals
and select generic drug increases, and increased contribution
from generic drugs. The LIFO charge in the fiscal 2008 third
quarter was $5.0 million compared with a $1.7 million credit
in the previous year's third quarter. For the first nine
months of fiscal 2008, the LIFO charge was $17.7 million
compared to a $7.1 million charge in the same period last
year.
-- Operating expenses as a percentage of total revenue in the
fiscal third quarter of 2008 were 1.63 percent, down 10 basis
points from the same period in the previous fiscal year, due
to improved productivity and the benefits of the Company's
streamlined organization. Almost all of the year-over-year
dollar increase in expenses in the quarter was due to the
Bellco acquisition.
-- Operating income increased a robust 22 percent to $205.4
million in the fiscal 2008 third quarter compared with the
previous year's third quarter due to excellent revenue growth,
improved gross profit and exceptional expense management.
-- As a percentage of total revenue, the operating margin in the
fiscal 2008 third quarter was 1.14 percent, a 10 basis point
increase over the same period in the previous fiscal year.
Other Segment Results
-- In the fiscal 2008 third quarter, the Other Segment had no
results because the PMSI workers' compensation business was
reclassified as a discontinued operation. In the third quarter
of 2007, the Other Segment included PharMerica LTC, which
contributed revenue of $306.7 million and operating income of
$6.1 million.
Fiscal Year 2008 Expectations
"We have raised our expectations for diluted earnings per share
from continuing operations for fiscal year 2008 to a range of $2.81 to
$2.89 from the previous range of $2.77 to $2.87," said Yost. "This new
range implies a fourth quarter fiscal 2008 range of $0.65 to $0.73.
The midpoint of the new expectations for fiscal year 2008, excluding
the $0.03 of special charges in fiscal 2008, represents a 22 percent
increase over the $2.36 per share from continuing operations for
fiscal year 2007, which excludes the $0.09 benefit from special items
and the $0.08 contribution from PharMerica LTC in fiscal year 2007.
The fiscal year 2008 range reflects no contributions from PMSI because
it is classified as a discontinued operation and includes $0.03 of
special charges.
"Our revenue assumptions supporting our diluted earnings per share
from continuing operations expectations in fiscal year 2008 remain
unchanged in a range of 7 percent to 9 percent, and we expect to be at
the low end of the range. Our assumption for operating margin
expansion in the Pharmaceutical Distribution Segment improves to the
low to mid single-digit basis point range from the low single-digit
basis point range.
"In the first nine months of fiscal 2008, we repurchased $554
million of our shares and expect to use the majority of the $144
million remaining in our current share repurchase authorization during
the remainder of this fiscal year, substantially exceeding our
original expectation of repurchasing $400 million to $500 million of
our shares in fiscal year 2008. We continue to expect free cash flow
for fiscal year 2008 in the range of $450 million to $525 million,
which includes capital expenditures in the $125 million range."
Fiscal Year 2009 Preview
Looking ahead to fiscal year 2009, Yost commented, "Although we
are in the middle of our detailed planning process for fiscal year
2009, I remain confident that even if pharmaceutical market growth is
in the 2 percent to 3 percent range next year, we see a clear path to
delivering low double-digit diluted earnings per share from continuing
operations growth in fiscal year 2009 through continued expense
management, operating margin expansion and strong cash generation. As
in the past, we expect to announce our diluted earnings per share
expectations for fiscal year 2009 when we release our fiscal year 2008
results, currently scheduled for October 30, 2008."
Conference Call
The Company will host a conference call to discuss its results at
11:00 a.m. Eastern Time on July 24, 2008. Participating in the
conference call will be: R. David Yost, President and Chief Executive
Officer and Michael D. DiCandilo, Executive Vice President, Chief
Financial Officer and Chief Operating Officer for AmerisourceBergen
Drug Corporation.
To access the live conference call via telephone:
Dial in: (612) 332-0806, 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
1:00 p.m. July 24, 2008 until 11:59 p.m. July 31, 2008. 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: 953331
(320) 365-3844 from outside the U.S., access code: 953331
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations
page at http://www.amerisourcebergen.com.
About AmerisourceBergen
AmerisourceBergen 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 reimbursement and pharmaceutical consulting services. With more
than $70 billion in annualized revenue, AmerisourceBergen is
headquartered in Valley Forge, PA, and employs approximately 11,200
people. AmerisourceBergen is ranked #28 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: changes in pharmaceutical market growth
rates; competitive pressures; the loss of one or more key customer or
supplier relationships; changes in customer mix; customer or 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, (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),
or (iv) the commencement of any administrative actions by the board of
pharmacy of any state seeking to suspend, revoke or otherwise restrict
the ability of any of the Company's distribution facilities or
businesses to distribute or dispense pharmaceuticals in such state;
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, reimbursement practices and/or labeling
for the pharmaceuticals we distribute, including
erythropoiesis-stimulating agents (ESAs) used to treat anemia
patients; price inflation in branded pharmaceuticals and price
deflation in generics; 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; the inability of the Company
to complete the divestiture of its PMSI workers' compensation
business; an increase in the impairment charge related to PMSI if the
divestiture is not completed; any disruption to or other adverse
effects on the Company related to its exit from the PMSI workers'
compensation business and classification of that business as a
discontinued operation; the incurrence of additional costs, expenses
or liabilities in the future related to discontinued operations; the
inability of the Company to successfully complete any other
transaction that the Company may wish to pursue from time to time;
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, 2007 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 Ended % of Months Ended % of
June 30, Total June 30, Total %
2008 Revenue 2007 Revenue Change
------------ ------- ------------ ------- ------
Revenue:
Operating revenue $17,507,497 $ 15,289,657 15%
Bulk deliveries to
customer
warehouses 489,169 1,054,319 -54%
------------ ------------
Total revenue 17,996,666 100.00% 16,343,976 100.00% 10%
Cost of goods sold 17,498,621 15,773,173 11%
------------ ------------
Gross profit 498,045 2.77% 570,803 3.49% -13%
Operating expenses:
Distribution,
selling and
administrative 271,098 1.51% 341,855 2.09% -21%
Depreciation and
amortization 21,557 0.12% 22,595 0.14% -5%
Facility
consolidations,
employee severance
and other 7,865 0.04% 3,496 0.02% 125%
------------ ------------
Operating income 197,525 1.10% 202,857 1.24% -3%
Other loss 768 - 3,516 0.02% -78%
Interest expense, net 15,966 0.09% 6,313 0.04% 153%
------------ ------------
Income from continuing
operations before
income taxes 180,791 1.00% 193,028 1.18% -6%
Income taxes 68,026 0.38% 67,147 0.41% 1%
------------ ------------
Income from continuing
operations 112,765 0.63% 125,881 0.77% -10%
(Loss) income from
discontinued
operations, net of
tax (220,785) 4,027
------------ ------------
Net (loss) income $ (108,020) $ 129,908
============ ============
Basic earnings per
share:
Continuing
operations $ 0.71 $ 0.68 4%
Discontinued
operations (1.38) 0.02
Rounding (0.01) -
------------ ------------
Total $ (0.68) $ 0.70
============ ============
Diluted earnings per
share:
Continuing
operations $ 0.70 $ 0.67 4%
Discontinued
operations (1.37) 0.02
------------ ------------
Total $ (0.67) $ 0.69
============ ============
Weighted average
common shares
outstanding:
Basic 159,532 185,172
Diluted (1) 161,117 187,951
(1) Includes the dilutive effect of stock options and restricted
stock.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Nine Nine
Months Ended % of Months Ended % of
June 30, Total June 30, Total %
2008 Revenue 2007 Revenue Change
------------ ------- ------------ ------- ------
Revenue:
Operating revenue $50,857,011 $46,067,640 10%
Bulk deliveries to
customer
warehouses 2,174,876 3,311,953 -34%
------------ ------------
Total revenue 53,031,887 100.00% 49,379,593 100.00% 7%
Cost of goods sold 51,512,338 47,662,277 8%
------------ ------------
Gross profit 1,519,549 2.87% 1,717,316 3.48% -12%
Operating expenses:
Distribution,
selling and
administrative 821,404 1.55% 1,031,651 2.09% -20%
Depreciation and
amortization 63,550 0.12% 64,248 0.13% -1%
Facility
consolidations,
employee severance
and other 9,426 0.02% 9,654 0.02% -2%
------------ ------------
Operating income 625,169 1.18% 611,763 1.24% 2%
Other loss 513 - 3,958 0.01% -87%
Interest expense, net 51,081 0.10% 24,324 0.05% 110%
------------ ------------
Income from continuing
operations before
income taxes 573,575 1.08% 583,481 1.18% -2%
Income taxes 219,573 0.41% 218,430 0.44% 1%
------------ ------------
Income from continuing
operations 354,002 0.67% 365,051 0.74% -3%
(Loss) income from
discontinued
operations, net of
tax (218,350) 16,540
------------ ------------
Net income $ 135,652 $ 381,591
============ ============
Basic earnings per
share:
Continuing
operations $ 2.18 $ 1.93 13%
Discontinued
operations (1.35) 0.09
Rounding 0.01 -
------------ ------------
Total $ 0.84 $ 2.02
============ ============
Diluted earnings
per share:
Continuing
operations $ 2.16 $ 1.91 13%
Discontinued
operations (1.33) 0.09
Rounding - (0.01)
------------ ------------
Total $ 0.83 $ 1.99
============ ============
Weighted average
common shares
outstanding:
Basic 162,047 188,795
Diluted (1) 163,977 191,590
(1) Includes the dilutive effect of stock options and restricted
stock.
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
June 30, September 30,
2008 2007
------------ -------------
Current assets:
Cash and cash equivalents $ 583,086 $ 640,204
Short-term investment securities
available-for-sale - 467,419
Accounts receivable, net 3,667,083 3,415,772
Merchandise inventories 4,116,250 4,097,811
Prepaid expenses and other 27,420 31,828
Assets held for sale 53,952 284,818
------------ -------------
Total current assets 8,447,791 8,937,852
Property and equipment, net 521,223 493,647
Other long-term assets 3,019,326 2,878,565
------------ -------------
Total assets $ 11,988,340 $ 12,310,064
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,039,074 $ 6,964,594
Current portion of long-term debt 1,872 476
Other current liabilities 809,783 872,703
Liabilities held for sale 20,773 26,337
------------ -------------
Total current liabilities 7,871,502 7,864,110
Long-term debt, less current portion 1,231,199 1,227,077
Other long-term liabilities 161,674 119,157
Stockholders' equity 2,723,965 3,099,720
------------ -------------
Total liabilities and stockholders'
equity $ 11,988,340 $ 12,310,064
============ =============
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Nine
Months Ended Months Ended
June 30, June 30,
2008 2007
------------ ------------
Operating Activities:
Net income $ 135,652 $ 381,591
Loss (income) from discontinued operations 218,350 (16,540)
------------ ------------
Income from continuing operations 354,002 365,051
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities 140,558 133,730
Changes in operating assets and
liabilities (279,987) 558,585
------------ ------------
Net cash provided by operating
activities - continuing operations 214,573 1,057,366
Net cash provided by operating
activities - discontinued operations 8,382 22,961
------------ ------------
Net cash provided by operating activities 222,955 1,080,327
------------ ------------
Investing Activities:
Capital expenditures (80,621) (79,026)
Cost of acquired companies, net of cash
acquired (162,220) (85,652)
Proceeds from sales of property and
equipment 1,417 6,443
Proceeds from sales of other assets 1,176 4,852
Net short-term investment activity 467,419 (886,360)
------------ ------------
Net cash provided by (used in)
investing activities - continuing
operations 227,171 (1,039,743)
Net cash used in investing activities -
discontinued operations (1,273) (88,497)
------------ ------------
Net cash provided by (used in) investing
activities 225,898 (1,128,240)
------------ ------------
Financing Activities:
Net borrowings 13,762 103,679
Deferred financing costs and other (1,373) (3,078)
Purchases of common stock (553,675) (888,390)
Exercises of stock options 72,220 89,958
Cash dividends on common stock (36,748) (28,515)
------------ ------------
Net cash used in financing activities -
continuing operations (505,814) (726,346)
Net cash used in financing activities -
discontinued operations (157) -
------------ ------------
Net cash used in financing activities (505,971) (726,346)
------------ ------------
Decrease in cash and cash equivalents (57,118) (774,259)
Cash and cash equivalents at beginning of
period 640,204 1,261,268
------------ ------------
Cash and cash equivalents at end of period $ 583,086 $ 487,009
============ ============
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended June 30,
----------------------------------
Total Revenue 2008 2007 % Change
----------------------------------- ----------------------------------
Pharmaceutical Distribution $17,996,666 $16,248,832 11%
Other - 306,670 N/M
Intersegment eliminations - (211,526) N/M
------------ ------------
Total revenue $17,996,666 $16,343,976 10%
============ ============
Three Months Ended June 30,
----------------------------------
Operating Income 2008 2007 % Change
----------------------------------- ----------------------------------
Pharmaceutical Distribution $ 205,390 $ 168,312 22%
Other - 6,122 N/M
Facility consolidations, employee
severance and other (7,865) (3,496) -125%
Gain on antitrust litigation
settlements - 31,919 N/M
------------ ------------
Operating income $ 197,525 $ 202,857 -3%
============ ============
Percentages of total revenue:
Pharmaceutical Distribution
Gross profit 2.77% 2.76%
Operating expenses 1.63% 1.73%
Operating income 1.14% 1.04%
Other
Gross profit N/A 29.38%
Operating expenses N/A 27.38%
Operating income N/A 2.00%
AmerisourceBergen Corporation
Gross profit 2.77% 3.49%
Operating expenses 1.67% 2.25%
Operating income 1.10% 1.24%
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Nine Months Ended June 30,
----------------------------------
Total Revenue 2008 2007 % Change
----------------------------------- ----------------------------------
Pharmaceutical Distribution $53,031,887 $49,083,637 8%
Other - 941,385 N/M
Intersegment eliminations - (645,429) N/M
------------ ------------
Total revenue $53,031,887 $49,379,593 7%
============ ============
Nine Months Ended June 30,
----------------------------------
Operating Income 2008 2007 % Change
----------------------------------- ----------------------------------
Pharmaceutical Distribution $ 633,010 $ 564,631 12%
Other - 21,224 N/M
Facility consolidations, employee
severance and other (9,426) (9,654) 2%
Gain on antitrust litigation
settlements 1,585 35,562 -96%
------------ ------------
Operating income $ 625,169 $ 611,763 2%
============ ============
Percentages of total revenue:
Pharmaceutical Distribution
Gross profit 2.86% 2.86%
Operating expenses 1.67% 1.71%
Operating income 1.19% 1.15%
Other
Gross profit N/A 29.36%
Operating expenses N/A 27.10%
Operating income N/A 2.25%
AmerisourceBergen Corporation
Gross profit 2.87% 3.48%
Operating expenses 1.69% 2.24%
Operating income 1.18% 1.24%
CONTACT: AmerisourceBergen Corporation
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation