Expects Fiscal 2015 Adjusted Diluted EPS from Continuing
Operations to be in the range of $4.36 to $4.50
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Oct. 30, 2014--
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its
fiscal year 2014 fourth quarter ended September 30, 2014, adjusted
diluted earnings per share from continuing operations increased 35.8
percent to $1.10. Revenue increased 29.1 percent to $31.6 billion in the
quarter. On the basis of U.S. generally accepted accounting principles
(GAAP), diluted earnings per share from continuing operations were $0.29
for the September quarter of fiscal 2014. In the tables that follow, we
present our GAAP results as well as a reconciliation of GAAP income from
continuing operations to adjusted non-GAAP income from continuing
operations.
“We delivered exceptional performance in our September quarter,
completing a very strong year driven by the onboarding of substantial
new business, and outstanding operational and financial results,” said
Steven H. Collis, AmerisourceBergen President and Chief Executive
Officer. “We generated excellent free cash flow, improved our balance
sheet, and returned funds to shareholders. Over the course of the full
year, we made important progress on our strategic objectives by
investing in our people, in our infrastructure, and in assets that help
expand our international presence. We enter fiscal 2015 with strong
momentum and in excellent position to continue to shape healthcare
delivery on an increasingly global basis.”
The comments below compare adjusted results from continuing operations,
which exclude:
-
Warrant expense;
-
Gains on antitrust litigation settlements;
-
LIFO expense;
-
Acquisition related intangibles amortization;
-
Employee severance, litigation, and other expenses; and
-
Loss on early retirement of debt.
In addition, we calculate our adjusted earnings per share for each
period using a diluted weighted average share count, which excludes the
accounting dilution resulting from the impact of the unexercised equity
warrants, and the impact from the shares repurchased under our special
$650 million share repurchase program. Solely in connection with the
special share repurchase program, we issued $600 million of 1.15% senior
notes due in May 2017. The interest expense incurred relating to this
borrowing is also excluded from the non-GAAP presentation.
Summary of Adjusted Quarterly Results
-
Revenue: In the fourth quarter of fiscal
2014, revenue was $31.6 billion, up 29.1 percent compared to the same
quarter in the previous fiscal year, reflecting a 33 percent increase
in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 13 percent
increase in AmerisourceBergen Specialty Group (ABSG) revenue.
-
Gross Profit: Gross profit in the fiscal
2014 fourth quarter was $926.9 million, a 28.7 percent increase over
the same period in the previous year, driven by strong overall revenue
growth and generic sales in ABDC. Gross profit as a percentage of
revenue decreased 1 basis point to 2.93 percent, primarily due to the
increase in lower margin brand business, which was offset in part by
an increase in the contribution from the sale of generic products.
-
Operating Expenses: In the fourth quarter
of fiscal 2014, operating expenses were $503.1 million, up 27.5
percent over the same period in the last fiscal year. The increase in
operating expenses in the quarter was due primarily to costs
associated with onboarding the new Walgreen Co. business, an increase
in employee incentive compensation, and expenses relating to the
launch of the AmerisourceBergen Foundation. Operating expenses as a
percentage of revenue in the fiscal 2014 fourth quarter were 1.59
percent compared with 1.61 percent for the same period in the previous
fiscal year.
-
Operating Income: In the fiscal 2014
fourth quarter, operating income of $423.8 million was up 30.1 percent
versus the prior year, driven primarily by the increase in gross
profit. Operating income as a percentage of revenue increased 1 basis
point to 1.34 percent in the fiscal 2014 fourth quarter compared to
the previous year’s fourth quarter.
-
Tax Rate: The effective tax rate for the
fourth quarter of fiscal 2014 was 37.5 percent, slightly lower than
the previous fiscal year’s fourth quarter. Going forward, we expect
our annualized effective tax rate to be approximately 37.0 percent.
-
Earnings Per Share: Diluted earnings per
share from continuing operations were up 35.8 percent to $1.10 in the
fourth quarter of fiscal year 2014 compared to $0.81 in the previous
fiscal year’s fourth quarter, driven by the strong increase in
operating income.
-
Shares Outstanding: Diluted weighted
average shares outstanding for the fourth quarter of fiscal year 2014
were 230.9 million, a 1.8 percent decrease versus the prior year due
to share repurchases, offset in part by option exercises.
Segment Discussion
The Pharmaceutical Distribution segment includes both AmerisourceBergen
Drug Corporation and AmerisourceBergen Specialty Group. Other includes
AmerisourceBergen Consulting Services (ABCS) and World Courier.
Pharmaceutical Distribution Segment
In the fourth fiscal quarter of 2014, Pharmaceutical Distribution
revenues were $31.0 billion, an increase of 29 percent compared to the
same quarter in the prior year. ABDC revenues increased 33 percent, due
primarily to the onboarding of all of the new Walgreens branded
pharmaceuticals business and a substantial portion of their generic
pharmaceuticals business, and increased branded pharmaceutical sales to
our other large customers. ABSG revenues increased 13 percent, driven by
strong performance in our blood products, vaccine, and specialty
distribution businesses. Intrasegment revenues between ABDC and ABSG
have been eliminated in the presentation of total Pharmaceutical
Distribution revenue. Total intrasegment revenues were $1.1 billion and
$934.2 million in the quarters ended September 30, 2014 and 2013,
respectively.
Operating income of $386.5 million in the September quarter of fiscal
2014 increased 31 percent compared to the same period in the previous
year due to the new Walgreens branded and generic pharmaceuticals
business in ABDC, and strong contributions from generics overall.
Other
Revenues in Other were $652.2 million in the fourth quarter of fiscal
2014, an increase of 26 percent over the same period in the prior year.
Operating income of $37.4 million was 25 percent higher than the fourth
quarter of the prior year, due primarily to solid performance in World
Courier offset in part by a decline in our consulting businesses.
Summary of Fiscal Year 2014
In fiscal year 2014, adjusted diluted earnings per share from continuing
operations were $3.97, an increase of 23.7% over the prior fiscal year.
Revenue of $119.6 billion was up 35.9% over the last fiscal year. Gross
profit increased 19.7% and operating income increased 20.6%, driven
primarily by the increase in revenues. Operating income margin decreased
17 basis points to 1.30% due to the new Walgreens business. Diluted
weighted average shares outstanding in fiscal 2014 were 232.8 million,
down one percent from the prior fiscal year.
Fiscal Year 2015 Expectations
AmerisourceBergen expects adjusted diluted earnings per share from
continuing operations in fiscal year 2015 to be in the range of $4.36 to
$4.50, an increase of 10 to 13 percent over fiscal 2014. We expect
revenue growth in the 7 percent to 8 percent range, and adjusted
operating income growth in the 8 percent to 10 percent range. Adjusted
operating margin is expected to be flat to up slightly in the low single
digit basis points range. We expect free cash flow to be in the range of
$1.4 to $1.7 billion, with capital expenditures in the $300 million
range for the full year. In addition, we expect to spend approximately
$400 million in share repurchases under our regular repurchase program,
and $400 million under our special repurchase program, subject to market
conditions.
Conference Call
The Company will host a conference call to discuss the results at 11:00
a.m. Eastern Time on October 30, 2014.
Participating in the conference call will be:
Steven H. Collis, President & Chief Executive Officer
Tim G.
Guttman, Senior Vice President & Chief Financial Officer
The dial-in number for the live call will be (612) 288-0329. 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 338765.
About AmerisourceBergen
AmerisourceBergen is one of the largest global pharmaceutical sourcing
and distribution services companies, helping both healthcare providers
and pharmaceutical and biotech manufacturers improve patient access to
products and enhance patient care. With services ranging from drug
distribution and niche premium logistics to reimbursement and
pharmaceutical consulting services, AmerisourceBergen delivers
innovative programs and solutions across the pharmaceutical supply
channel. With nearly $120 billion in annual revenue, AmerisourceBergen
is headquartered in Valley Forge, PA, and employs approximately 14,000
people. AmerisourceBergen is ranked #28 on the Fortune 500 list. For
more information, go to www.amerisourcebergen.com.
AmerisourceBergen's Cautionary Note Regarding Forward-Looking
Statements
Certain of the statements contained in this news release are
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Words such as “expect,” “likely,” “outlook,” “forecast,” “would,”
“could,” “should,” “can,” “will,” “project,” “intend,” “plan,”
“continue,” “sustain,” “synergy,” “on track,” “believe,” “seek,”
“estimate,” “anticipate,” “may,” “possible,” “assume,” variations of
such words, and similar expressions are intended to identify such
forward-looking statements. These statements are based on management’s
current expectations and are subject to uncertainty and change in
circumstances. These statements are not guarantees of future performance
and are based on assumptions that could prove incorrect or could cause
actual results to vary materially from those indicated. Among the
factors that could cause actual results to differ materially from those
projected, anticipated, or implied are the following: changes in
pharmaceutical market growth rates; the loss of one or more key customer
or supplier relationships; the retention of key customer or supplier
relationships under less favorable economics; changes in customer mix;
customer delinquencies, defaults or insolvencies; supplier defaults or
insolvencies; changes in branded and/or generic pharmaceutical
manufacturers’ pricing and distribution policies or practices; adverse
resolution of any contract or other dispute with customers or suppliers;
federal and state government enforcement initiatives to detect and
prevent suspicious orders of controlled substances and the diversion of
controlled substances, federal and state prosecution of alleged
violations of related laws and regulations, and any related litigation,
including shareholder derivative lawsuits or other disputes relating to
AmerisourceBergen’s distribution of controlled substances; qui tam
litigation for alleged violations of fraud and abuse laws and
regulations and/or any other laws and regulations governing the
marketing, sale, purchase and/or dispensing of pharmaceutical products
or services and any related litigation, including shareholder derivative
lawsuits; changes in federal and state legislation or regulatory action
affecting pharmaceutical product pricing or reimbursement policies,
including under Medicaid and Medicare, and the effect of such changes on
AmerisourceBergen’s customers; changes in regulatory or clinical medical
guidelines and/or labeling for the pharmaceutical products we
distribute; price inflation in branded and generic pharmaceuticals and
price deflation in generics; greater or less than anticipated benefit
from launches of the generic versions of previously patented
pharmaceutical products; significant breakdown or interruption of
AmerisourceBergen’s information technology systems; AmerisourceBergen’s
inability to realize the anticipated benefits of the implementation of
an enterprise resource planning (ERP) system; interest rate and foreign
currency exchange rate fluctuations; risks associated with international
business operations, including non-compliance with the U.S. Foreign
Corrupt Practices Act, anti-bribery laws and economic sanctions and
import laws and regulations; economic, business, competitive and/or
regulatory developments in countries where we do business and/or operate
outside of the United States; risks associated with the strategic,
long-term relationship among Walgreen Co., Alliance Boots GmbH, and
AmerisourceBergen, the occurrence of any event, change or other
circumstance that could give rise to the termination, cross-termination
or modification of any of the transaction documents among the parties
(including, among others, the distribution agreement or the generics
agreement), an impact on AmerisourceBergen’s earnings per share
resulting from the issuance of the warrants to subsidiaries of Walgreen
Co. and Alliance Boots GmbH (the “Warrants”), an inability to realize
anticipated benefits (including benefits resulting from participation in
the Walgreens Boots Alliance Development GmbH joint venture), the
disruption of AmerisourceBergen’s cash flow and ability to return value
to its stockholders in accordance with its past practices, disruption of
or changes in vendor, payer and customer relationships and terms, and
the reduction of AmerisourceBergen’s operational, strategic or financial
flexibility; the acquisition of businesses that do not perform as we
expect or that are difficult for us to integrate or control;
AmerisourceBergen’s inability to implement its hedging strategy to
mitigate the potentially dilutive effect of the issuance of shares of
its common stock upon exercise of the Warrants, including its inability
to repurchase shares of its common stock under its 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;
AmerisourceBergen’s inability to successfully complete any other
transaction that we may wish to pursue from time to time; changes in tax
laws or legislative initiatives that could adversely affect
AmerisourceBergen’s tax positions and/or AmerisourceBergen’s tax
liabilities or adverse resolution of challenges to AmerisourceBergen’s
tax positions; increased costs of maintaining, or reductions in
AmerisourceBergen’s ability to maintain, adequate liquidity and
financing sources; volatility and deterioration of the capital and
credit markets; natural disasters or other unexpected events that affect
AmerisourceBergen’s operations; and other economic, business,
competitive, legal, tax, regulatory and/or operational factors affecting
AmerisourceBergen’s business generally. Certain additional factors that
management believes could cause actual outcomes and results to differ
materially from those described in forward-looking statements are set
forth (i) in Item 1A (Risk Factors) and Item 1 (Business) in the
Company’s Annual Report on Form 10-K for the fiscal year ended September
30, 2013 and elsewhere in that report and (ii) in other reports.
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
|
Three
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
September 30,
|
|
% of
|
|
September 30,
|
|
% of
|
|
%
|
|
|
2014
|
|
Revenue
|
|
2013
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
31,588,708
|
|
100.00
|
%
|
|
$
|
24,469,040
|
|
|
100.00
|
%
|
|
29.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
30,716,164
|
|
|
|
|
23,901,488
|
|
|
|
|
28.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
|
872,544
|
|
2.76
|
%
|
|
|
567,552
|
|
|
2.32
|
%
|
|
53.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
|
459,249
|
|
1.45
|
%
|
|
|
358,303
|
|
|
1.46
|
%
|
|
28.2
|
%
|
Depreciation and amortization
|
|
|
49,512
|
|
0.16
|
%
|
|
|
42,496
|
|
|
0.17
|
%
|
|
16.5
|
%
|
Warrants
|
|
|
155,739
|
|
0.49
|
%
|
|
|
50,479
|
|
|
0.21
|
%
|
|
|
Employee severance, litigation and other
|
|
|
781
|
|
-
|
%
|
|
|
2,084
|
|
|
0.01
|
%
|
|
|
Total operating expenses
|
|
|
665,281
|
|
2.11
|
%
|
|
|
453,362
|
|
|
1.85
|
%
|
|
46.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
207,263
|
|
0.66
|
%
|
|
|
114,190
|
|
|
0.47
|
%
|
|
81.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other loss (income)
|
|
|
1,332
|
|
-
|
%
|
|
|
(1,207
|
)
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
17,653
|
|
0.06
|
%
|
|
|
18,672
|
|
|
0.08
|
%
|
|
-5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
188,278
|
|
0.60
|
%
|
|
|
96,725
|
|
|
0.40
|
%
|
|
94.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
120,476
|
|
0.38
|
%
|
|
|
46,164
|
|
|
0.19
|
%
|
|
161.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
67,802
|
|
0.21
|
%
|
|
|
50,561
|
|
|
0.21
|
%
|
|
34.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
|
462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
67,802
|
|
0.21
|
%
|
|
$
|
51,023
|
|
|
0.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.30
|
|
|
|
$
|
0.22
|
|
|
|
|
36.4
|
%
|
Discontinued operations
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
Total
|
|
$
|
0.30
|
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.29
|
|
|
|
$
|
0.22
|
|
|
|
|
31.8
|
%
|
Discontinued operations
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
Total
|
|
$
|
0.29
|
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
224,087
|
|
|
|
|
230,478
|
|
|
|
|
|
Diluted (2) |
|
|
235,074
|
|
|
|
|
235,127
|
|
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $54.4 million LIFO expense in the three months ended
September 30, 2014. Includes a $154.0 million LIFO expense and a
$1.1 million gain from antitrust litigation settlements in the
three months ended September 30, 2013.
|
(2)
|
|
Includes the dilutive effect of stock options, restricted stock,
restricted stock units and the Warrants issued to Walgreens and
Alliance Boots.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
|
|
|
|
Fiscal
|
|
|
|
|
|
|
Year Ended
|
|
|
|
Year Ended
|
|
|
|
|
|
|
September 30,
|
|
% of
|
|
September 30,
|
|
% of
|
|
%
|
|
|
2014
|
|
Revenue
|
|
2013
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
119,569,127
|
|
|
100.00
|
%
|
|
$
|
87,959,167
|
|
|
100.00
|
%
|
|
35.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
116,586,761
|
|
|
|
|
|
85,451,348
|
|
|
|
|
36.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
|
2,982,366
|
|
|
2.49
|
%
|
|
|
2,507,819
|
|
|
2.85
|
%
|
|
18.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
|
1,587,261
|
|
|
1.33
|
%
|
|
|
1,333,712
|
|
|
1.52
|
%
|
|
19.0
|
%
|
Depreciation and amortization
|
|
|
185,290
|
|
|
0.15
|
%
|
|
|
162,186
|
|
|
0.18
|
%
|
|
14.2
|
%
|
Warrants
|
|
|
422,739
|
|
|
0.35
|
%
|
|
|
90,055
|
|
|
0.10
|
%
|
|
|
Employee severance, litigation and other
|
|
|
8,192
|
|
|
0.01
|
%
|
|
|
23,467
|
|
|
0.03
|
%
|
|
|
Total operating expenses
|
|
|
2,203,482
|
|
|
1.84
|
%
|
|
|
1,609,420
|
|
|
1.83
|
%
|
|
36.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
778,884
|
|
|
0.65
|
%
|
|
|
898,399
|
|
|
1.02
|
%
|
|
-13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) loss
|
|
|
(4,360
|
)
|
|
-
|
%
|
|
|
44
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
76,862
|
|
|
0.06
|
%
|
|
|
73,897
|
|
|
0.08
|
%
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early retirement of debt
|
|
|
32,954
|
|
|
0.03
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
673,428
|
|
|
0.56
|
%
|
|
|
824,458
|
|
|
0.94
|
%
|
|
-18.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
389,398
|
|
|
0.33
|
%
|
|
|
331,023
|
|
|
0.38
|
%
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
284,030
|
|
|
0.24
|
%
|
|
|
493,435
|
|
|
0.56
|
%
|
|
-42.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
|
(7,546
|
)
|
|
|
|
|
(59,728
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
276,484
|
|
|
0.23
|
%
|
|
$
|
433,707
|
|
|
0.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.25
|
|
|
|
|
$
|
2.14
|
|
|
|
|
-41.6
|
%
|
Discontinued operations
|
|
|
(0.03
|
)
|
|
|
|
|
(0.26
|
)
|
|
|
|
|
Total
|
|
$
|
1.22
|
|
|
|
|
$
|
1.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.21
|
|
|
|
|
$
|
2.10
|
|
|
|
|
-42.4
|
%
|
Discontinued operations
|
|
|
(0.03
|
)
|
|
|
|
|
(0.25
|
)
|
|
|
|
|
Rounding
|
|
|
(0.01
|
)
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
Total
|
|
$
|
1.17
|
|
|
|
|
$
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
227,367
|
|
|
|
|
|
231,067
|
|
|
|
|
|
Diluted (2) |
|
|
235,405
|
|
|
|
|
|
235,345
|
|
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $348.1 million LIFO expense and a $24.4 million gain
from antitrust litigation settlements in the fiscal year ended
September 30, 2014. Includes a $277.0 million LIFO expense and a
$22.9 million gain from antitrust litigation settlements in the
fiscal year ended September 30, 2013.
|
(2)
|
|
Includes the dilutive effect of stock options, restricted stock,
restricted stock units and the Warrants issued to Walgreens and
Alliance Boots.
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF DILUTED SHARES OUTSTANDING (GAAP TO NON-GAAP)
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Fiscal Year Ended September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding
|
|
224,087
|
|
|
230,478
|
|
227,367
|
|
|
231,067
|
|
|
|
|
|
|
|
|
|
Stock option, restricted stock and restricted stock unit dilution
|
|
4,643
|
|
|
4,649
|
|
4,787
|
|
|
4,278
|
|
|
|
|
|
|
|
|
|
Warrant dilution
|
|
6,344
|
|
|
-
|
|
3,251
|
|
|
-
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares outstanding
|
|
235,074
|
|
|
235,127
|
|
235,405
|
|
|
235,345
|
|
|
|
|
|
|
|
|
|
Warrant dilution
|
|
(6,344
|
)
|
|
-
|
|
(3,251
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
Shares repurchased under a special share repurchase program
|
|
2,197
|
|
|
-
|
|
657
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares outstanding (1) |
|
230,927
|
|
|
235,127
|
|
232,811
|
|
|
235,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 a special $650 million
share repurchase program, which was established to mitigate the
potentially dilutive effect of the Warrants and supplements our
previously executed hedging strategy.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
|
|
|
Three Months Ended September 30, 2014
|
|
Prior Year Quarter
|
|
|
GAAP
|
|
Warrant Expense (2)
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Employee Severance, Litigation and Other
|
|
Loss on Early Retirement of Debt
|
|
Adjusted Non-GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$31,588,708
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$31,588,708
|
|
|
|
29.1
|
%
|
Cost of goods sold
|
|
30,716,164
|
|
|
-
|
|
|
40
|
|
|
(54,416
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
30,661,788
|
|
|
|
29.1
|
%
|
Gross profit
|
|
872,544
|
|
|
-
|
|
|
(40
|
)
|
|
54,416
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
926,920
|
|
|
|
28.7
|
%
|
Operating expenses
|
|
665,281
|
|
|
(155,739
|
)
|
|
-
|
|
|
-
|
|
|
(5,683
|
)
|
|
(781
|
)
|
|
-
|
|
|
503,078
|
|
|
|
27.5
|
%
|
Operating income
|
|
207,263
|
|
|
155,739
|
|
|
(40
|
)
|
|
54,416
|
|
|
5,683
|
|
|
781
|
|
|
-
|
|
|
423,842
|
|
|
|
30.1
|
%
|
Other loss
|
|
1,332
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,228
|
)
|
|
-
|
|
|
-
|
|
|
104
|
|
|
|
|
Interest expense, net
|
|
17,653
|
|
|
(2,136
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
15,517
|
|
|
|
-16.9
|
%
|
Income before income taxes
|
|
188,278
|
|
|
157,875
|
|
|
(40
|
)
|
|
54,416
|
|
|
6,911
|
|
|
781
|
|
|
-
|
|
|
408,221
|
|
|
|
32.4
|
%
|
Income taxes (1) |
|
120,476
|
|
|
7,139
|
|
|
(146
|
)
|
|
22,431
|
|
|
2,743
|
|
|
339
|
|
|
176
|
|
|
153,158
|
|
|
|
30.1
|
%
|
Income from continuing operations
|
|
$67,802
|
|
|
$150,736
|
|
|
$106
|
|
|
$31,985
|
|
|
$4,168
|
|
|
$442
|
|
|
$(176
|
)
|
|
$255,063
|
|
|
|
33.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$0.29
|
|
|
$0.66
|
|
|
$-
|
|
|
$0.14
|
|
|
$0.02
|
|
|
$-
|
|
|
$-
|
|
|
$1.10
|
|
(4)
|
|
35.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding (3) |
|
235,074
|
|
|
230,927
|
|
|
230,927
|
|
|
230,927
|
|
|
230,927
|
|
|
230,927
|
|
|
230,927
|
|
|
230,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.93%
|
|
|
|
|
Operating expenses
|
|
2.11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.59%
|
|
|
|
|
Operating income
|
|
0.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The amount of Warrant expense deductible for tax purposes is based
on the initial valuation of the Warrants. Therefore, the income
tax rate on Warrant expense will vary by quarter depending upon
the quarterly changes in the fair value of the Warrants.
|
|
|
|
(2)
|
|
Warrant expense is recorded as an operating expense. In connection
with the 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.
|
|
|
|
(3)
|
|
See Reconciliation of Diluted Shares Outstanding (GAAP to
non-GAAP).
|
|
|
|
(4)
|
|
The sum of the components may not equal the total due to rounding.
|
|
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis by,
investors.
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2013
|
|
|
GAAP
|
|
Warrant Expense
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Employee Severance, Litigation and Other
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$24,469,040
|
|
|
$-
|
|
|
|
$-
|
|
|
|
$-
|
|
|
|
$-
|
|
|
|
$-
|
|
|
$24,469,040
|
|
|
Cost of goods sold
|
|
23,901,488
|
|
|
-
|
|
|
|
1,135
|
|
|
|
(153,972
|
)
|
|
|
-
|
|
|
|
-
|
|
|
23,748,651
|
|
|
Gross profit
|
|
567,552
|
|
|
-
|
|
|
|
(1,135
|
)
|
|
|
153,972
|
|
|
|
-
|
|
|
|
-
|
|
|
720,389
|
|
|
Operating expenses
|
|
453,362
|
|
|
(50,479
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,094
|
)
|
|
|
(2,084
|
)
|
|
394,705
|
|
|
Operating income
|
|
114,190
|
|
|
50,479
|
|
|
|
(1,135
|
)
|
|
|
153,972
|
|
|
|
6,094
|
|
|
|
2,084
|
|
|
325,684
|
|
|
Other income
|
|
(1,207
|
)
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
(1,207
|
)
|
|
Interest expense, net
|
|
18,672
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
18,672
|
|
|
Income before income taxes
|
|
96,725
|
|
|
50,479
|
|
|
|
(1,135
|
)
|
|
|
153,972
|
|
|
|
6,094
|
|
|
|
2,084
|
|
|
308,219
|
|
|
Income taxes (1) |
|
46,164
|
|
|
9,471
|
|
|
|
(434
|
)
|
|
|
59,414
|
|
|
|
2,328
|
|
|
|
796
|
|
|
117,739
|
|
|
Income from continuing operations
|
|
$50,561
|
|
|
$41,008
|
|
|
|
$(701
|
)
|
|
|
$94,558
|
|
|
|
$3,766
|
|
|
|
$1,288
|
|
|
$190,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$0.22
|
|
|
$0.17
|
|
|
|
$-
|
|
|
|
$0.40
|
|
|
|
$0.02
|
|
|
|
$0.01
|
|
|
$0.81
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
235,127
|
|
|
235,127
|
|
|
|
235,127
|
|
|
|
235,127
|
|
|
|
235,127
|
|
|
|
235,127
|
|
|
235,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.94
|
%
|
|
Operating expenses
|
|
1.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.61
|
%
|
|
Operating income
|
|
0.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
(2)
|
|
The sum of the components may not equal the total due to rounding.
|
|
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis by,
investors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
|
|
|
Fiscal Year Ended September 30, 2014
|
|
Prior Year
|
|
|
GAAP
|
|
Warrant Expense (2)
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Employee Severance, Litigation and Other
|
|
Loss on Early Retirement of Debt
|
|
Adjusted Non-GAAP
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$119,569,127
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$119,569,127
|
|
|
|
35.9
|
%
|
Cost of goods sold
|
|
116,586,761
|
|
|
-
|
|
|
24,436
|
|
|
(348,063
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
116,263,134
|
|
|
|
36.5
|
%
|
Gross profit
|
|
2,982,366
|
|
|
-
|
|
|
(24,436
|
)
|
|
348,063
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,305,993
|
|
|
|
19.7
|
%
|
Operating expenses
|
|
2,203,482
|
|
|
(422,739
|
)
|
|
-
|
|
|
-
|
|
|
(23,167
|
)
|
|
(8,192
|
)
|
|
-
|
|
|
1,749,384
|
|
|
|
18.9
|
%
|
Operating income
|
|
778,884
|
|
|
422,739
|
|
|
(24,436
|
)
|
|
348,063
|
|
|
23,167
|
|
|
8,192
|
|
|
-
|
|
|
1,556,609
|
|
|
|
20.6
|
%
|
Other income
|
|
(4,360
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,228
|
)
|
|
-
|
|
|
-
|
|
|
(5,588
|
)
|
|
|
|
Interest expense, net
|
|
76,862
|
|
|
(3,062
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
73,800
|
|
|
|
-0.1
|
%
|
Loss on early retirement of debt
|
|
32,954
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(32,954
|
)
|
|
-
|
|
|
|
|
Income before income taxes
|
|
673,428
|
|
|
425,801
|
|
|
(24,436
|
)
|
|
348,063
|
|
|
24,395
|
|
|
8,192
|
|
|
32,954
|
|
|
1,488,397
|
|
|
|
22.4
|
%
|
Income taxes (1) |
|
389,398
|
|
|
26,434
|
|
|
(9,370
|
)
|
|
133,445
|
|
|
9,354
|
|
|
3,141
|
|
|
12,634
|
|
|
565,036
|
|
|
|
22.5
|
%
|
Income from continuing operations
|
|
$284,030
|
|
|
$399,367
|
|
|
$(15,066
|
)
|
|
$214,618
|
|
|
$15,041
|
|
|
$5,051
|
|
|
$20,320
|
|
|
$923,361
|
|
|
|
22.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$1.21
|
|
|
$1.73
|
|
|
$(0.06
|
)
|
|
$0.92
|
|
|
$0.06
|
|
|
$0.02
|
|
|
$0.09
|
|
|
$3.97
|
|
(4)
|
|
23.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding (3) |
|
235,405
|
|
|
232,811
|
|
|
232,811
|
|
|
232,811
|
|
|
232,811
|
|
|
232,811
|
|
|
232,811
|
|
|
232,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.76
|
%
|
|
|
|
Operating expenses
|
|
1.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.46
|
%
|
|
|
|
Operating income
|
|
0.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.30
|
%
|
|
|
|
|
|
|
(1)
|
|
The amount of Warrant expense deductible for tax purposes is based
on the initial valuation of the Warrants. Therefore, the income
tax rate on Warrant expense will vary by quarter depending upon
the quarterly changes in the fair value of the Warrants.
|
|
|
|
(2)
|
|
Warrant expense is recorded as an operating expense. In connection
with a 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.
|
|
|
|
(3)
|
|
See Reconciliation of Diluted Shares Outstanding (GAAP to
non-GAAP).
|
|
|
|
(4)
|
|
The sum of the components may not equal the total due to rounding.
|
|
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis by,
investors.
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30, 2013
|
|
|
|
GAAP
|
|
Warrant Expense
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Employee Severance, Litigation and Other
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$87,959,167
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$-
|
|
|
$87,959,167
|
|
|
Cost of goods sold
|
|
85,451,348
|
|
|
-
|
|
|
22,883
|
|
|
(277,001
|
)
|
|
-
|
|
|
-
|
|
|
85,197,230
|
|
|
Gross profit
|
|
2,507,819
|
|
|
-
|
|
|
(22,883
|
)
|
|
277,001
|
|
|
-
|
|
|
-
|
|
|
2,761,937
|
|
|
Operating expenses
|
|
1,609,420
|
|
|
(90,055
|
)
|
|
-
|
|
|
-
|
|
|
(24,387
|
)
|
|
(23,467
|
)
|
|
1,471,511
|
|
|
Operating income
|
|
898,399
|
|
|
90,055
|
|
|
(22,883
|
)
|
|
277,001
|
|
|
24,387
|
|
|
23,467
|
|
|
1,290,426
|
|
|
Other loss
|
|
44
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
44
|
|
|
Interest expense, net
|
|
73,897
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
73,897
|
|
|
Income before income taxes
|
|
824,458
|
|
|
90,055
|
|
|
(22,883
|
)
|
|
277,001
|
|
|
24,387
|
|
|
23,467
|
|
|
1,216,485
|
|
|
Income taxes (1) |
|
331,023
|
|
|
13,738
|
|
|
(8,650
|
)
|
|
107,227
|
|
|
9,246
|
|
|
8,800
|
|
|
461,384
|
|
|
Income from continuing operations
|
|
$493,435
|
|
|
$76,317
|
|
|
$(14,233
|
)
|
|
$169,774
|
|
|
$15,141
|
|
|
$14,667
|
|
|
$755,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$2.10
|
|
|
$0.32
|
|
|
$(0.06
|
)
|
|
$0.72
|
|
|
$0.06
|
|
|
$0.06
|
|
|
$3.21
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
235,345
|
|
|
235,345
|
|
|
235,345
|
|
|
235,345
|
|
|
235,345
|
|
|
235,345
|
|
|
235,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
3.14
|
%
|
|
Operating expenses
|
|
1.83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
1.67
|
%
|
|
Operating income
|
|
1.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
1.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The amount of Warrant expense deductible for tax purposes is based
on the initial valuation of the Warrants. Therefore, the income
tax rate on Warrant expense will vary by quarter depending upon
the quarterly changes in the fair value of the Warrants.
|
|
|
|
(2)
|
|
The sum of the components may not equal the total due to rounding.
|
|
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis by,
investors.
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
Revenue
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$31,016,044
|
|
|
$24,002,471
|
|
|
29.2
|
%
|
Other
|
|
652,239
|
|
|
518,576
|
|
|
25.8
|
%
|
Intersegment eliminations
|
|
(79,575
|
)
|
|
(52,007
|
)
|
|
53.0
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$31,588,708
|
|
|
$24,469,040
|
|
|
29.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
Operating Income
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$386,487
|
|
|
$295,870
|
|
|
30.6
|
%
|
Other
|
|
37,355
|
|
|
29,814
|
|
|
25.3
|
%
|
Total segment operating income
|
|
423,842
|
|
|
325,684
|
|
|
|
Gains on antitrust litigation settlements
|
|
40
|
|
|
1,135
|
|
|
|
LIFO expense
|
|
(54,416
|
)
|
|
(153,972
|
)
|
|
|
Acquisition related intangibles amortization
|
|
(5,683
|
)
|
|
(6,094
|
)
|
|
|
Warrant expense
|
|
(155,739
|
)
|
|
(50,479
|
)
|
|
|
Employee severance, litigation and other
|
|
(781
|
)
|
|
(2,084
|
)
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$207,263
|
|
|
$114,190
|
|
|
81.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
2.55
|
%
|
|
2.52
|
%
|
|
|
Operating expenses
|
|
1.30
|
%
|
|
1.29
|
%
|
|
|
Operating income
|
|
1.25
|
%
|
|
1.23
|
%
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Gross profit
|
|
20.92
|
%
|
|
22.25
|
%
|
|
|
Operating expenses
|
|
15.19
|
%
|
|
16.51
|
%
|
|
|
Operating income
|
|
5.73
|
%
|
|
5.75
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.76
|
%
|
|
2.32
|
%
|
|
|
Operating expenses
|
|
2.11
|
%
|
|
1.85
|
%
|
|
|
Operating income
|
|
0.66
|
%
|
|
0.47
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.93
|
%
|
|
2.94
|
%
|
|
|
Operating expenses
|
|
1.59
|
%
|
|
1.61
|
%
|
|
|
Operating income
|
|
1.34
|
%
|
|
1.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30,
|
Revenue
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$117,383,967
|
|
|
$86,063,531
|
|
|
36.4
|
%
|
Other
|
|
2,449,149
|
|
|
2,087,968
|
|
|
17.3
|
%
|
Intersegment eliminations
|
|
(263,989
|
)
|
|
(192,332
|
)
|
|
37.3
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$119,569,127
|
|
|
$87,959,167
|
|
|
35.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30,
|
Operating Income
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$1,405,992
|
|
|
$1,162,352
|
|
|
21.0
|
%
|
Other
|
|
150,617
|
|
|
128,074
|
|
|
17.6
|
%
|
Total segment operating income
|
|
1,556,609
|
|
|
1,290,426
|
|
|
|
Gains on antitrust litigation settlements
|
|
24,436
|
|
|
22,883
|
|
|
|
LIFO expense
|
|
(348,063
|
)
|
|
(277,001
|
)
|
|
|
Acquisition related intangibles amortization
|
|
(23,167
|
)
|
|
(24,387
|
)
|
|
|
Warrant expense
|
|
(422,739
|
)
|
|
(90,055
|
)
|
|
|
Employee severance, litigation and other
|
|
(8,192
|
)
|
|
(23,467
|
)
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$778,884
|
|
|
$898,399
|
|
|
-13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
2.36
|
%
|
|
2.64
|
%
|
|
|
Operating expenses
|
|
1.16
|
%
|
|
1.29
|
%
|
|
|
Operating income
|
|
1.20
|
%
|
|
1.35
|
%
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Gross profit
|
|
21.84
|
%
|
|
23.43
|
%
|
|
|
Operating expenses
|
|
15.69
|
%
|
|
17.29
|
%
|
|
|
Operating income
|
|
6.15
|
%
|
|
6.13
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.49
|
%
|
|
2.85
|
%
|
|
|
Operating expenses
|
|
1.84
|
%
|
|
1.83
|
%
|
|
|
Operating income
|
|
0.65
|
%
|
|
1.02
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
2.76
|
%
|
|
3.14
|
%
|
|
|
Operating expenses
|
|
1.46
|
%
|
|
1.67
|
%
|
|
|
Operating income
|
|
1.30
|
%
|
|
1.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$1,808,513
|
|
$1,231,006
|
Accounts receivable, net
|
|
6,312,883
|
|
6,051,920
|
Merchandise inventories
|
|
8,593,852
|
|
6,981,494
|
Prepaid expenses and other
|
|
84,957
|
|
129,231
|
Total current assets
|
|
16,800,205
|
|
14,393,651
|
|
|
|
|
|
Property and equipment, net
|
|
899,582
|
|
803,561
|
Other long-term assets
|
|
3,832,396
|
|
3,721,426
|
|
|
|
|
|
Total assets
|
|
$21,532,183
|
|
$18,918,638
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$15,592,834
|
|
$13,335,792
|
Other current liabilities
|
|
1,657,326
|
|
1,534,843
|
Total current liabilities
|
|
17,250,160
|
|
14,870,635
|
|
|
|
|
|
Long-term debt
|
|
1,995,632
|
|
1,396,606
|
|
|
|
|
|
Other long-term liabilities
|
|
329,492
|
|
331,652
|
|
|
|
|
|
Stockholders' equity
|
|
1,956,899
|
|
2,319,745
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$21,532,183
|
|
$18,918,638
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Fiscal
|
|
Fiscal
|
|
|
Year Ended
|
|
Year Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
Net income
|
|
$276,484
|
|
|
$433,707
|
|
Loss from discontinued operations
|
|
7,546
|
|
|
59,728
|
|
Income from continuing operations
|
|
284,030
|
|
|
493,435
|
|
Adjustments to reconcile income from continuing operations to net
cash provided by operating activities (1)
|
|
750,940
|
|
|
346,541
|
|
Changes in operating assets and liabilities, excluding the effects
of acquisitions:
|
|
|
|
|
Accounts receivable
|
|
(938,286
|
)
|
|
(2,312,518
|
)
|
Merchandise inventories (2) |
|
(956,506
|
)
|
|
(1,486,572
|
)
|
Accounts payable, accrued expenses, and income taxes
|
|
2,317,589
|
|
|
3,818,288
|
|
Other
|
|
12,932
|
|
|
(157,186
|
)
|
Net cash provided by operating activities - continuing operations
|
|
1,470,699
|
|
|
701,988
|
|
Net cash (used in) provided by operating activities - discontinued
operations
|
|
(7,546
|
)
|
|
86,137
|
|
Net cash provided by operating activities
|
|
1,463,153
|
|
|
788,125
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(264,457
|
)
|
|
(202,450
|
)
|
Proceeds from sales of businesses
|
|
-
|
|
|
329,980
|
|
Cost of equity investments
|
|
(117,794
|
)
|
|
-
|
|
Other
|
|
(1,904
|
)
|
|
1,402
|
|
Net cash (used in) provided by investing activities - continuing
operations
|
|
(384,155
|
)
|
|
128,932
|
|
Net cash used in investing activities - discontinued operations
|
|
-
|
|
|
(11,672
|
)
|
Net cash (used in) provided by investing activities
|
|
(384,155
|
)
|
|
117,260
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
Net borrowings
|
|
566,402
|
|
|
-
|
|
Purchases of common stock (3) |
|
(753,926
|
)
|
|
(484,176
|
)
|
Exercises of stock options
|
|
127,906
|
|
|
155,713
|
|
Cash dividends on common stock
|
|
(214,469
|
)
|
|
(195,716
|
)
|
Purchases of capped call options
|
|
(211,397
|
)
|
|
(157,295
|
)
|
Other
|
|
(16,007
|
)
|
|
(8,975
|
)
|
Net cash used in financing activities - continuing operations
|
|
(501,491
|
)
|
|
(690,449
|
)
|
Net cash used in financing activities - discontinued operations
|
|
-
|
|
|
(50,538
|
)
|
Net cash used in financing activities
|
|
(501,491
|
)
|
|
(740,987
|
)
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
577,507
|
|
|
164,398
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year
|
|
1,231,006
|
|
|
1,066,608
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
|
$1,808,513
|
|
|
$1,231,006
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Adjustments include non-cash warrant expense of $422.7 million and
$90.1 million for the fiscal year ended September 30, 2014 and
2013, respectively.
|
|
|
|
|
(2)
|
|
Merchandise inventories include LIFO expense of $348.1 million and
$277.0 million for the fiscal year ended September 30, 2014 and
2013, respectively.
|
|
|
|
|
(3)
|
|
Includes purchases made under the special share repurchase program
totaling $234.0 million in the fiscal year ended September 30,
2014. Additional purchases made in September 2014 under the
special program totaling $18.0 million cash settled in October
2014.
|
|
|
|

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