Now Expects Fiscal 2014 Adjusted Diluted EPS from Continuing
Operations to be in the range of $3.64 to $3.74
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Apr. 24, 2014--
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its
fiscal year 2014 second quarter ended March 31, 2014, adjusted diluted
earnings per share from continuing operations increased 19.1 percent to
$1.06. Revenue increased 38.6 percent to $28.5 billion in the quarter.
On the basis of U.S. generally accepted accounting principles (GAAP),
diluted earnings per share from continuing operations were $0.76 for the
March 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 strong performance in our March quarter, as we continued
to onboard substantial new business, and made significant progress
against our strategic objectives,” said Steven H. Collis,
AmerisourceBergen President and Chief Executive Officer. “With excellent
operational performance and improving working capital trends that helped
generate tremendous free cash flow in the quarter, we have good momentum
heading into the second half of our fiscal year. In addition, we
continued to make important investments in our business for the
long-term, including signing a definitive agreement to acquire a
minority stake in Profarma Distribuidora de Produtos Farmacêuticos S.A.
of Brazil, and returned funds to shareholders through repurchasing over
$250 million of our common stock.”
The comments below compare adjusted results from continuing operations,
which exclude:
-
Gains on antitrust litigation settlements;
-
LIFO expense;
-
Acquisition related intangibles amortization;
-
Warrant expense; and
-
Employee severance, litigation, and other expenses.
In addition, we calculate our adjusted earnings per share for each
period using a diluted weighted average share count, which excludes the
accounting dilution resulting from the impact of the unexercised equity
warrants.
Summary of Adjusted Quarterly Results
-
Revenue: In the second quarter of fiscal
2014, revenue was $28.5 billion, up 38.6 percent compared to the same
quarter in the previous fiscal year, reflecting a 46 percent increase
in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 10 percent
increase in AmerisourceBergen Specialty Group (ABSG) revenue.
-
Gross Profit: Gross profit in the fiscal
2014 second quarter was $831.6 million, a 16.6 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 56 basis points to 2.92 percent, primarily due to a
substantial increase in lower margin brand business.
-
Operating Expenses: In the second quarter
of fiscal 2014, operating expenses were $415.0 million, up 16.1
percent over the same period in the last fiscal year. The increase in
operating expenses in the quarter was due primarily to costs
associated with onboarding the new Walgreen Co. business. Operating
expenses as a percentage of revenue in the fiscal 2014 second quarter
were 1.46 percent compared with 1.74 percent for the same period in
the previous fiscal year.
-
Operating Income: In the fiscal 2014
second quarter, operating income of $416.6 million was up 17.0 percent
versus the prior year, as the percentage increase in gross profit was
slightly higher than the percentage increase in operating expenses.
Operating income as a percentage of revenue decreased 27 basis points
to 1.46 percent in the fiscal 2014 second quarter compared to the
previous year’s second quarter.
-
Tax Rate: The effective tax rate for the
second quarter of fiscal 2014 was 38.2 percent, in line with the
previous fiscal year’s second quarter. Going forward, we expect our
annualized effective tax rate to be in the low 38 percent range.
-
Earnings Per Share: Diluted earnings per
share from continuing operations were up 19.1 percent to $1.06 in the
second quarter of fiscal year 2014 compared to $0.89 in the previous
fiscal year’s second quarter, driven primarily by the increase in
operating income.
-
Shares Outstanding: Diluted weighted
average shares outstanding for the second quarter of fiscal year 2014
were 234.3 million, a slight decrease versus the prior year as share
repurchases offset 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 second fiscal quarter of 2014, Pharmaceutical Distribution
revenues were $27.9 billion, an increase of 39 percent compared to the
same quarter in the prior year. ABDC revenues increased 46 percent, due
primarily to the onboarding of all of the new Walgreens branded
pharmaceuticals business and a portion of their generic pharmaceuticals
business, and increased branded pharmaceutical sales to our other large
customers. ABSG revenues increased 10 percent, which was driven by
strong performance in our blood products, vaccine and physician office
distribution businesses. Intrasegment revenues between ABDC and ABSG
have been eliminated in the presentation of total Pharmaceutical
Distribution revenue. Total intrasegment revenues were $976.3 million
and $760.9 million in the quarters ended March 31, 2014 and 2013,
respectively.
Operating income of $372.9 million in the March quarter of fiscal 2014
increased 16 percent compared to the same period in the previous year
due to the new Walgreens branded and generic pharmaceuticals business in
ABDC, strong contributions from generics overall, and solid performance
in ABSG, as a flat performance in our community oncology business was
offset by strong performance in our blood products and vaccine
distribution businesses.
Other
Revenues in Other were $572.5 million in the second quarter of fiscal
2014, an increase of 11 percent over the same period in the prior year.
Operating income increased 25 percent to $43.6 million in the second
quarter of fiscal 2014, driven by strong performance in World Courier.
Fiscal Year 2014 Expectations
AmerisourceBergen now expects adjusted diluted earnings per share from
continuing operations in fiscal year 2014 to be in the range of $3.64 to
$3.74, a 13 percent to 17 percent increase over fiscal 2013. We continue
to expect revenue growth in the range of 30 percent to 34 percent, and
operating income growth in the 12 percent to 16 percent range. We
continue to expect adjusted operating margin to decline in the 20 to 23
basis points range due to the onboarding of significant new lower margin
business and growth in brand pharmaceutical business with our large
customers. We continue to expect to generate free cash flow in the range
of $500 to $700 million, with capital expenditures in the $300 million
range, and to spend approximately $500 million in share repurchases,
subject to market conditions.
Conference Call
The Company will host a conference call to discuss the results at 11:00
a.m. Eastern Time on April 24, 2014.
Participating in the conference call will be:
Steven H. Collis, President & Chief Executive Officer
Tim G.
Guttman, Senior Vice President & Chief Financial Officer
The dial-in number for the live call will be (651) 291-0618. 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 323936.
About AmerisourceBergen
AmerisourceBergen is one of the largest global pharmaceutical sourcing
and distribution services companies, helping both healthcare providers
and pharmaceutical and biotech manufacturers improve patient access to
products and enhance patient care. With services ranging from drug
distribution and niche premium logistics to reimbursement and
pharmaceutical consulting services, AmerisourceBergen delivers
innovative programs and solutions across the pharmaceutical supply
channel. With over $100 billion in annualized revenue, AmerisourceBergen
is headquartered in Valley Forge, PA, and employs approximately 13,000
people. AmerisourceBergen is ranked #32 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
our 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 our
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 our information technology systems; our
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 our earnings per share resulting from the
issuance of 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; our
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 our tax positions and/or our tax
liabilities or adverse resolution of challenges to our tax positions;
increased costs of maintaining, or reductions in our 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 our operations; and other economic,
business, competitive, legal, tax, regulatory and/or operational factors
affecting our 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
|
|
|
|
|
|
|
|
|
March 31,
|
|
% of
|
|
March 31,
|
|
% of
|
|
%
|
|
|
|
|
|
2014
|
|
Revenue
|
|
2013
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
28,455,903
|
|
|
100.00
|
%
|
|
$
|
20,523,668
|
|
|
100.00
|
%
|
|
38.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
27,726,310
|
|
|
|
|
|
19,806,679
|
|
|
|
|
40.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
|
|
|
729,593
|
|
|
2.56
|
%
|
|
|
716,989
|
|
|
3.49
|
%
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
|
376,341
|
|
|
1.32
|
%
|
|
|
323,536
|
|
|
1.58
|
%
|
|
16.3
|
%
|
|
Depreciation and amortization
|
|
|
44,494
|
|
|
0.16
|
%
|
|
|
39,868
|
|
|
0.19
|
%
|
|
11.6
|
%
|
|
Warrants
|
|
|
|
|
5,663
|
|
|
0.02
|
%
|
|
|
3,761
|
|
|
0.02
|
%
|
|
|
|
Employee severance, litigation and other
|
|
|
1,967
|
|
|
0.01
|
%
|
|
|
(299
|
)
|
|
-
|
%
|
|
|
Total operating expenses
|
|
|
|
428,465
|
|
|
1.51
|
%
|
|
|
366,866
|
|
|
1.79
|
%
|
|
16.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
301,128
|
|
|
1.06
|
%
|
|
|
350,123
|
|
|
1.71
|
%
|
|
-14.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) loss
|
|
|
|
(3,783
|
)
|
|
-0.01
|
%
|
|
|
749
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
19,474
|
|
|
0.07
|
%
|
|
|
18,510
|
|
|
0.09
|
%
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
285,437
|
|
|
1.00
|
%
|
|
|
330,864
|
|
|
1.61
|
%
|
|
-13.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
105,360
|
|
|
0.37
|
%
|
|
|
126,721
|
|
|
0.62
|
%
|
|
-16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
180,077
|
|
|
0.63
|
%
|
|
|
204,143
|
|
|
0.99
|
%
|
|
-11.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
|
|
(158,509
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
180,077
|
|
|
0.63
|
%
|
|
$
|
45,634
|
|
|
0.22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.78
|
|
|
|
|
$
|
0.89
|
|
|
|
|
-12.4
|
%
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
|
(0.69
|
)
|
|
|
|
|
|
Total
|
|
|
|
$
|
0.78
|
|
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.76
|
|
|
|
|
$
|
0.87
|
|
|
|
|
-12.6
|
%
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
|
(0.68
|
)
|
|
|
|
|
|
Total
|
|
|
|
$
|
0.76
|
|
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
229,409
|
|
|
|
|
|
230,422
|
|
|
|
|
|
|
Diluted (2) |
|
|
|
|
236,268
|
|
|
|
|
|
234,587
|
|
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes a $0.8 million gain from antitrust
litigation settlements and a $102.8 million LIFO expense in the
three months ended March 31, 2014. Includes a $3.5 million gain from
antitrust litigation settlements and a $0.2 million LIFO credit in
the three months ended March 31, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
|
|
|
|
Six
|
|
|
|
|
|
|
|
|
|
Months Ended
|
|
|
|
Months Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
% of
|
|
March 31,
|
|
% of
|
|
%
|
|
|
|
|
|
|
2014
|
|
Revenue
|
|
2013
|
|
Revenue
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
57,632,265
|
|
|
100.00
|
%
|
|
$
|
41,583,479
|
|
|
100.00
|
%
|
|
38.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
56,214,447
|
|
|
|
|
|
40,205,662
|
|
|
|
|
39.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
|
|
|
1,417,818
|
|
|
2.46
|
%
|
|
|
1,377,817
|
|
|
3.31
|
%
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
|
740,401
|
|
|
1.28
|
%
|
|
|
644,236
|
|
|
1.55
|
%
|
|
14.9
|
%
|
|
Depreciation and amortization
|
|
|
88,444
|
|
|
0.15
|
%
|
|
|
78,552
|
|
|
0.19
|
%
|
|
12.6
|
%
|
|
Warrants
|
|
|
|
|
121,960
|
|
|
0.21
|
%
|
|
|
3,761
|
|
|
0.01
|
%
|
|
|
|
Employee severance, litigation and other
|
|
|
6,269
|
|
|
0.01
|
%
|
|
|
1,705
|
|
|
-
|
%
|
|
|
Total operating expenses
|
|
|
|
957,074
|
|
|
1.66
|
%
|
|
|
728,254
|
|
|
1.75
|
%
|
|
31.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
460,744
|
|
|
0.80
|
%
|
|
|
649,563
|
|
|
1.56
|
%
|
|
-29.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) loss
|
|
|
|
(4,380
|
)
|
|
-0.01
|
%
|
|
|
726
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
38,306
|
|
|
0.07
|
%
|
|
|
37,035
|
|
|
0.09
|
%
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
426,818
|
|
|
0.74
|
%
|
|
|
611,802
|
|
|
1.47
|
%
|
|
-30.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
197,810
|
|
|
0.34
|
%
|
|
|
233,038
|
|
|
0.56
|
%
|
|
-15.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
229,008
|
|
|
0.40
|
%
|
|
|
378,764
|
|
|
0.91
|
%
|
|
-39.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
|
(7,546
|
)
|
|
|
|
|
(164,519
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
221,462
|
|
|
0.38
|
%
|
|
$
|
214,245
|
|
|
0.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
1.00
|
|
|
|
|
$
|
1.64
|
|
|
|
|
-39.0
|
%
|
|
Discontinued operations
|
|
|
(0.03
|
)
|
|
|
|
|
(0.71
|
)
|
|
|
|
|
|
Rounding
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
-
|
|
|
|
|
|
|
Total
|
|
|
|
$
|
0.96
|
|
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.97
|
|
|
|
|
$
|
1.61
|
|
|
|
|
-39.8
|
%
|
|
Discontinued operations
|
|
|
(0.03
|
)
|
|
|
|
|
(0.70
|
)
|
|
|
|
|
|
Total
|
|
|
|
$
|
0.94
|
|
|
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
229,852
|
|
|
|
|
|
231,409
|
|
|
|
|
|
|
Diluted (2) |
|
|
|
|
236,650
|
|
|
|
|
|
235,307
|
|
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes a $21.9 million gain from antitrust
litigation settlements and a $160.4 million LIFO expense in the six
months ended March 31, 2014. Includes a $15.8 million gain from
antitrust litigation settlements and a $1.0 million LIFO expense in
the six months ended March 31, 2013.
|
|
|
|
(2) Includes the dilutive effect of stock options,
restricted stock, restricted stock units and the Warrants issued to
Walgreens and Alliance Boots.
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
|
|
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP)
|
|
|
(dollars in thousands, except per share data)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014
|
|
|
|
|
GAAP
|
|
Dilution of Unexercised Warrants
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Warrant Expense
|
|
Employee Severance, Litigation and Other
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
28,455,903
|
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
28,455,903
|
|
|
|
Cost of goods sold
|
|
|
27,726,310
|
|
|
|
|
|
849
|
|
|
|
(102,828
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
27,624,331
|
|
|
|
Gross profit
|
|
|
729,593
|
|
|
|
|
|
(849
|
)
|
|
|
102,828
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
831,572
|
|
|
|
Operating expenses
|
|
|
428,465
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,825
|
)
|
|
|
(5,663
|
)
|
|
|
(1,967
|
)
|
|
|
415,010
|
|
|
|
Operating income
|
|
|
301,128
|
|
|
|
|
|
(849
|
)
|
|
|
102,828
|
|
|
|
5,825
|
|
|
|
5,663
|
|
|
|
1,967
|
|
|
|
416,562
|
|
|
|
Other income
|
|
|
(3,783
|
)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,783
|
)
|
|
|
Interest expense, net
|
|
|
19,474
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,474
|
|
|
|
Income before income taxes
|
|
|
285,437
|
|
|
|
|
|
(849
|
)
|
|
|
102,828
|
|
|
|
5,825
|
|
|
|
5,663
|
|
|
|
1,967
|
|
|
|
400,871
|
|
|
|
Income taxes (1) |
|
|
105,360
|
|
|
|
|
|
(361
|
)
|
|
|
38,862
|
|
|
|
2,207
|
|
|
|
6,315
|
|
|
|
750
|
|
|
|
153,133
|
|
|
|
Income from continuing operations
|
|
$
|
180,077
|
|
|
|
|
$
|
(488
|
)
|
|
$
|
63,966
|
|
|
$
|
3,618
|
|
|
$
|
(652
|
)
|
|
$
|
1,217
|
|
|
$
|
247,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations (2) |
|
$
|
0.76
|
|
|
$
|
0.01
|
|
$
|
-
|
|
|
$
|
0.27
|
|
|
$
|
0.02
|
|
|
$
|
-
|
|
|
$
|
0.01
|
|
|
$
|
1.06
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding (2) |
|
|
236,268
|
|
|
|
234,272
|
|
|
234,272
|
|
|
|
234,272
|
|
|
|
234,272
|
|
|
|
234,272
|
|
|
|
234,272
|
|
|
|
234,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.92
|
%
|
|
|
Operating expenses
|
|
|
1.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.46
|
%
|
|
|
Operating income
|
|
|
1.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) For the reconciling items and for the non-GAAP
presentation, diluted earnings per share and diluted weighted
average common shares outstanding have been adjusted to exclude the
impact of the accounting dilution from the unexercised Warrants.
|
|
|
(3) The sum of the components may not equal the total due
to rounding.
|
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the company's
operating performance. Therefore, we believe that our 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)
|
(dollars in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013
|
|
|
|
GAAP
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Credit
|
|
Acquisition Related Intangibles Amortization
|
|
Warrant Expense
|
|
Employee Severance, Litigation and Other
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
20,523,668
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
20,523,668
|
|
|
Cost of goods sold
|
|
|
19,806,679
|
|
|
|
3,456
|
|
|
|
215
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,810,350
|
|
|
Gross profit
|
|
|
716,989
|
|
|
|
(3,456
|
)
|
|
|
(215
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
713,318
|
|
|
Operating expenses
|
|
|
366,866
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,098
|
)
|
|
|
(3,761
|
)
|
|
|
299
|
|
|
|
357,306
|
|
|
Operating income
|
|
|
350,123
|
|
|
|
(3,456
|
)
|
|
|
(215
|
)
|
|
|
6,098
|
|
|
|
3,761
|
|
|
|
(299
|
)
|
|
|
356,012
|
|
|
Other loss
|
|
|
749
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
749
|
|
|
Interest expense, net
|
|
|
18,510
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18,510
|
|
|
Income before income taxes
|
|
|
330,864
|
|
|
|
(3,456
|
)
|
|
|
(215
|
)
|
|
|
6,098
|
|
|
|
3,761
|
|
|
|
(299
|
)
|
|
|
336,753
|
|
|
Income taxes
|
|
|
126,721
|
|
|
|
(1,320
|
)
|
|
|
(82
|
)
|
|
|
2,330
|
|
|
|
1,130
|
|
|
|
(114
|
)
|
|
|
128,665
|
|
|
Income from continuing operations
|
|
$
|
204,143
|
|
|
$
|
(2,136
|
)
|
|
$
|
(133
|
)
|
|
$
|
3,768
|
|
|
$
|
2,631
|
|
|
$
|
(185
|
)
|
|
$
|
208,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$
|
0.87
|
|
|
$
|
(0.01
|
)
|
|
$
|
-
|
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
0.89
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
|
234,587
|
|
|
|
234,587
|
|
|
|
234,587
|
|
|
|
234,587
|
|
|
|
234,587
|
|
|
|
234,587
|
|
|
|
234,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
3.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
3.48
|
%
|
|
Operating expenses
|
|
|
1.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1.74
|
%
|
|
Operating income
|
|
|
1.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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, we believe that our 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)
|
(dollars in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31, 2014
|
|
|
|
GAAP
|
|
Dilution of Unexercised Warrants
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Warrant Expense
|
|
Employee Severance, Litigation and Other
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
57,632,265
|
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
57,632,265
|
|
|
Cost of goods sold
|
|
|
56,214,447
|
|
|
|
|
|
21,872
|
|
|
|
(160,410
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
56,075,909
|
|
|
Gross profit
|
|
|
1,417,818
|
|
|
|
|
|
(21,872
|
)
|
|
|
160,410
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,556,356
|
|
|
Operating expenses
|
|
|
957,074
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,783
|
)
|
|
|
(121,960
|
)
|
|
|
(6,269
|
)
|
|
|
817,062
|
|
|
Operating income
|
|
|
460,744
|
|
|
|
|
|
(21,872
|
)
|
|
|
160,410
|
|
|
|
11,783
|
|
|
|
121,960
|
|
|
|
6,269
|
|
|
|
739,294
|
|
|
Other income
|
|
|
(4,380
|
)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,380
|
)
|
|
Interest expense, net
|
|
|
38,306
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38,306
|
|
|
Income before income taxes
|
|
|
426,818
|
|
|
|
|
|
(21,872
|
)
|
|
|
160,410
|
|
|
|
11,783
|
|
|
|
121,960
|
|
|
|
6,269
|
|
|
|
705,368
|
|
|
Income taxes (1) |
|
|
197,810
|
|
|
|
|
|
(8,243
|
)
|
|
|
60,450
|
|
|
|
4,441
|
|
|
|
12,630
|
|
|
|
2,363
|
|
|
|
269,451
|
|
|
Income from continuing operations
|
|
$
|
229,008
|
|
|
|
|
$
|
(13,629
|
)
|
|
$
|
99,960
|
|
|
$
|
7,342
|
|
|
$
|
109,330
|
|
|
$
|
3,906
|
|
|
$
|
435,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations (2) |
|
$
|
0.97
|
|
|
$
|
0.01
|
|
$
|
(0.06
|
)
|
|
$
|
0.43
|
|
|
$
|
0.03
|
|
|
$
|
0.47
|
|
|
$
|
0.02
|
|
|
$
|
1.86
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding (2) |
|
|
236,650
|
|
|
|
234,838
|
|
|
234,838
|
|
|
|
234,838
|
|
|
|
234,838
|
|
|
|
234,838
|
|
|
|
234,838
|
|
|
|
234,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.70
|
%
|
|
Operating expenses
|
|
|
1.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.42
|
%
|
|
Operating income
|
|
|
0.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) For the reconciling items and for the non-GAAP
presentation, diluted earnings per share and diluted weighted
average common shares outstanding have been adjusted to exclude the
impact of the accounting dilution from the unexercised Warrants.
|
|
|
(3) The sum of the components may not equal the total due
to rounding.
|
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the company's
operating performance. Therefore, we believe that our 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)
|
|
(dollars in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31, 2013
|
|
|
|
GAAP
|
|
Gain on Antitrust Litigation Settlements
|
|
LIFO Expense
|
|
Acquisition Related Intangibles Amortization
|
|
Warrant Expense
|
|
Employee Severance, Litigation and Other
|
|
Adjusted Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
41,583,479
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
41,583,479
|
|
|
Cost of goods sold
|
|
|
40,205,662
|
|
|
|
15,764
|
|
|
|
(952
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
40,220,474
|
|
|
Gross profit
|
|
|
1,377,817
|
|
|
|
(15,764
|
)
|
|
|
952
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,363,005
|
|
|
Operating expenses
|
|
|
728,254
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,197
|
)
|
|
|
(3,761
|
)
|
|
|
(1,705
|
)
|
|
|
710,591
|
|
|
Operating income
|
|
|
649,563
|
|
|
|
(15,764
|
)
|
|
|
952
|
|
|
|
12,197
|
|
|
|
3,761
|
|
|
|
1,705
|
|
|
|
652,414
|
|
|
Other loss
|
|
|
726
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
726
|
|
|
Interest expense, net
|
|
|
37,035
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
37,035
|
|
|
Income before income taxes
|
|
|
611,802
|
|
|
|
(15,764
|
)
|
|
|
952
|
|
|
|
12,197
|
|
|
|
3,761
|
|
|
|
1,705
|
|
|
|
614,653
|
|
|
Income taxes
|
|
|
233,038
|
|
|
|
(5,978
|
)
|
|
|
362
|
|
|
|
4,638
|
|
|
|
1,130
|
|
|
|
644
|
|
|
|
233,834
|
|
|
Income from continuing operations
|
|
$
|
378,764
|
|
|
$
|
(9,786
|
)
|
|
$
|
590
|
|
|
$
|
7,559
|
|
|
$
|
2,631
|
|
|
$
|
1,061
|
|
|
$
|
380,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$
|
1.61
|
|
|
$
|
(0.04
|
)
|
|
$
|
-
|
|
|
$
|
0.03
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
1.62
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
|
235,307
|
|
|
|
235,307
|
|
|
|
235,307
|
|
|
|
235,307
|
|
|
|
235,307
|
|
|
|
235,307
|
|
|
|
235,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
3.31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
3.28
|
%
|
|
Operating expenses
|
|
|
1.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1.71
|
%
|
|
Operating income
|
|
|
1.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1.57
|
%
|
|
(1) 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, we believe that our presentation
of non-GAAP financial measures provides useful supplementary
information to, and facilitates additional analysis by, investors.
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
March 31,
|
|
September 30,
|
|
|
|
2014
|
|
2013
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
696,730
|
|
$
|
1,231,006
|
|
Accounts receivable, net
|
|
|
6,506,412
|
|
|
6,051,920
|
|
Merchandise inventories
|
|
|
8,493,269
|
|
|
6,981,494
|
|
Prepaid expenses and other
|
|
|
63,616
|
|
|
129,231
|
|
Total current assets
|
|
|
15,760,027
|
|
|
14,393,651
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
850,847
|
|
|
803,561
|
Other long-term assets
|
|
|
3,750,373
|
|
|
3,721,426
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
20,361,247
|
|
$
|
18,918,638
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
14,909,626
|
|
$
|
13,335,792
|
|
Other current liabilities
|
|
|
1,590,305
|
|
|
1,534,843
|
|
Total current liabilities
|
|
|
16,499,931
|
|
|
14,870,635
|
|
|
|
|
|
|
Long-term debt
|
|
|
1,396,948
|
|
|
1,396,606
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
318,853
|
|
|
331,652
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
2,145,515
|
|
|
2,319,745
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
20,361,247
|
|
$
|
18,918,638
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Revenue
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$
|
27,932,495
|
|
|
$
|
20,054,159
|
|
|
39
|
%
|
Other
|
|
|
572,503
|
|
|
|
514,942
|
|
|
11
|
%
|
Intersegment eliminations
|
|
|
(49,095
|
)
|
|
|
(45,433
|
)
|
|
8
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
28,455,903
|
|
|
$
|
20,523,668
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Operating Income
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$
|
372,929
|
|
|
$
|
321,077
|
|
|
16
|
%
|
Other
|
|
|
43,633
|
|
|
|
34,935
|
|
|
25
|
%
|
Gain on antitrust litigation settlements
|
|
|
849
|
|
|
|
3,456
|
|
|
|
LIFO (expense) credit
|
|
|
(102,828
|
)
|
|
|
215
|
|
|
|
Acquisition related intangibles amortization
|
|
|
(5,825
|
)
|
|
|
(6,098
|
)
|
|
|
Warrant expense
|
|
|
(5,663
|
)
|
|
|
(3,761
|
)
|
|
|
Employee severance, litigation and other
|
|
|
(1,967
|
)
|
|
|
299
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
301,128
|
|
|
$
|
350,123
|
|
|
-14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
|
2.49
|
%
|
|
|
2.93
|
%
|
|
|
Operating expenses
|
|
|
1.15
|
%
|
|
|
1.33
|
%
|
|
|
Operating income
|
|
|
1.34
|
%
|
|
|
1.60
|
%
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Gross profit
|
|
|
23.82
|
%
|
|
|
24.40
|
%
|
|
|
Operating expenses
|
|
|
16.20
|
%
|
|
|
17.61
|
%
|
|
|
Operating income
|
|
|
7.62
|
%
|
|
|
6.78
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
|
2.56
|
%
|
|
|
3.49
|
%
|
|
|
Operating expenses
|
|
|
1.51
|
%
|
|
|
1.79
|
%
|
|
|
Operating income
|
|
|
1.06
|
%
|
|
|
1.71
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
|
2.92
|
%
|
|
|
3.48
|
%
|
|
|
Operating expenses
|
|
|
1.46
|
%
|
|
|
1.74
|
%
|
|
|
Operating income
|
|
|
1.46
|
%
|
|
|
1.73
|
%
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
Revenue
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$
|
56,555,086
|
|
|
$
|
40,653,207
|
|
|
39
|
%
|
Other
|
|
|
1,176,635
|
|
|
|
1,019,992
|
|
|
15
|
%
|
Intersegment eliminations
|
|
|
(99,456
|
)
|
|
|
(89,720
|
)
|
|
11
|
%
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
57,632,265
|
|
|
$
|
41,583,479
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
Operating Income
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
$
|
659,711
|
|
|
$
|
587,754
|
|
|
12
|
%
|
Other
|
|
|
79,583
|
|
|
|
64,660
|
|
|
23
|
%
|
Gain on antitrust litigation settlements
|
|
|
21,872
|
|
|
|
15,764
|
|
|
|
LIFO expense
|
|
|
(160,410
|
)
|
|
|
(952
|
)
|
|
|
Acquisition related intangibles amortization
|
|
|
(11,783
|
)
|
|
|
(12,197
|
)
|
|
|
Warrant expense
|
|
|
(121,960
|
)
|
|
|
(3,761
|
)
|
|
|
Employee severance, litigation and other
|
|
|
(6,269
|
)
|
|
|
(1,705
|
)
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
460,744
|
|
|
$
|
649,563
|
|
|
-29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
Gross profit
|
|
|
2.28
|
%
|
|
|
2.74
|
%
|
|
|
Operating expenses
|
|
|
1.11
|
%
|
|
|
1.30
|
%
|
|
|
Operating income
|
|
|
1.17
|
%
|
|
|
1.45
|
%
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Gross profit
|
|
|
22.69
|
%
|
|
|
24.23
|
%
|
|
|
Operating expenses
|
|
|
15.92
|
%
|
|
|
17.89
|
%
|
|
|
Operating income
|
|
|
6.76
|
%
|
|
|
6.34
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
|
2.46
|
%
|
|
|
3.31
|
%
|
|
|
Operating expenses
|
|
|
1.66
|
%
|
|
|
1.75
|
%
|
|
|
Operating income
|
|
|
0.80
|
%
|
|
|
1.56
|
%
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
Gross profit
|
|
|
2.70
|
%
|
|
|
3.28
|
%
|
|
|
Operating expenses
|
|
|
1.42
|
%
|
|
|
1.71
|
%
|
|
|
Operating income
|
|
|
1.28
|
%
|
|
|
1.57
|
%
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Six
|
|
Six
|
|
|
Months Ended
|
|
Months Ended
|
|
|
March 31,
|
|
March 31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
Net income
|
|
$
|
221,462
|
|
|
$
|
214,245
|
|
Loss from discontinued operations
|
|
|
7,546
|
|
|
|
164,519
|
|
Income from continuing operations
|
|
|
229,008
|
|
|
|
378,764
|
|
Adjustments to reconcile income from continuing operations to net
cash
|
|
|
|
|
provided by operating activities
|
|
|
231,572
|
|
|
|
141,401
|
|
Changes in operating assets and liabilities
|
|
|
(340,381
|
)
|
|
|
178,059
|
|
Net cash provided by operating activities - continuing operations
|
|
|
120,199
|
|
|
|
698,224
|
|
Net cash (used in) provided by operating activities - discontinued
operations
|
|
|
(7,546
|
)
|
|
|
45,431
|
|
Net cash provided by operating activities
|
|
|
112,653
|
|
|
|
743,655
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
|
(125,392
|
)
|
|
|
(88,377
|
)
|
Other
|
|
|
(2,743
|
)
|
|
|
81
|
|
Net cash used in investing activities - continuing operations
|
|
|
(128,135
|
)
|
|
|
(88,296
|
)
|
Net cash used in investing activities - discontinued operations
|
|
|
-
|
|
|
|
(9,643
|
)
|
Net cash used in investing activities
|
|
|
(128,135
|
)
|
|
|
(97,939
|
)
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
Purchases of common stock
|
|
|
(251,961
|
)
|
|
|
(284,691
|
)
|
Exercises of stock options
|
|
|
59,675
|
|
|
|
65,850
|
|
Cash dividends on common stock
|
|
|
(108,397
|
)
|
|
|
(98,203
|
)
|
Purchases of capped call options
|
|
|
(211,397
|
)
|
|
|
-
|
|
Other
|
|
|
(6,714
|
)
|
|
|
(6,086
|
)
|
Net cash used in financing activities - continuing operations
|
|
|
(518,794
|
)
|
|
|
(323,130
|
)
|
Net cash used in financing activities - discontinued operations
|
|
|
-
|
|
|
|
(41,897
|
)
|
Net cash used in financing activities
|
|
|
(518,794
|
)
|
|
|
(365,027
|
)
|
|
|
|
|
|
(Decrease) increase in cash and cash equivalents
|
|
|
(534,276
|
)
|
|
|
280,689
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
1,231,006
|
|
|
|
1,066,608
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
696,730
|
|
|
$
|
1,347,297
|
|

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