Delaware | 1-16671 | 23-3079390 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
1300 Morris Drive Chesterbrook, PA |
19087 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
AMERISOURCEBERGEN CORPORATION | ||||||||
Date: July 28, 2011 | By: | /s/ Michael D. DiCandilo | ||||||
Name: | Michael D. DiCandilo | |||||||
Title: | Executive Vice President | |||||||
and Chief Financial Officer |
AmerisourceBergen Corporation P.O. Box 959 Valley Forge, PA 19482 |
Contact:
|
Barbara Brungess | |
610-727-7199 | ||
bbrungess@amerisourcebergen.com |
| Revenue of $20.2 billion, up 2.9 percent. |
| Diluted earnings per share of $0.66, a 15.8 percent increase. |
| Gross margin of 3.24 percent, up 24 basis points. |
| Operating margin of 1.57 percent, up 13 basis points. |
| Cash Flow from Operations of $231 million. |
| Share repurchases of $145 million. |
| Revenue of $59.8 billion, up 2.7 percent. |
| Diluted earnings per share of $2.00, a 16.3 percent increase. |
| Gross margin of 3.21 percent, an 18 basis point increase. |
| Operating margin of 1.60 percent, a 13 basis point increase. |
| Cash Flow from Operations of $808 million. |
| Share repurchases of $400 million. |
| Revenue: Revenue was $20.2 billion in the third quarter of fiscal 2011, a 2.9 percent increase over the same quarter in the previous fiscal year, driven by a 4 percent increase in AmerisourceBergen Drug Corporation (ABDC) revenue and offset by the expected decline in AmerisourceBergen Specialty Group (ABSG) revenue, which was down 2 percent. The increase in ABDC revenue was driven by alternate site and independent customer growth. The decline in ABSG revenue was primarily due to the previously disclosed September 2010 discontinuation of an $800 million annual revenue contract in its third party logistics business. |
| Gross Profit: Gross profit in the fiscal 2011 third quarter was $653.6 million, an 11.1 percent increase over the year-ago same period, with a larger than expected contribution from specialty generics driving the majority of the increase. Gross profit as a percentage of revenue increased 24 basis points to 3.24 percent over the same period in the previous year. The current and prior year quarters included litigation gains of $1.2 million and $19.1 million, respectively. The LIFO charge in the fiscal 2011 third quarter was $11.4 million, consistent with an $11.3 million charge in the previous years third quarter. |
| Operating Expenses: For the third quarter of fiscal 2011, operating expenses were $336.4 million compared with $306.5 million in the prior fiscal years third quarter, a 9.8 percent increase. The increase in operating expenses was due to the expected increase in information technology costs, an increase in consulting expenses, an acceleration in pension expenses due to executive retirements, and an increase in incentive compensation expenses. Operating expenses in the fiscal third quarter of 2010 were favorably impacted by $4.4 million due to the reversal of a litigation accrual. In the fiscal third quarter of 2011, operating expenses as a percentage of revenue were 1.67 percent, up 11 basis points from the same period in the previous fiscal year. |
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| Operating Income: In the fiscal 2011 third quarter, operating income increased 12.5 percent to $317.2 million, due to the increase in gross profit. Operating income as a percentage of revenue increased 13 basis points to 1.57 percent in the period compared with the previous years third quarter. |
| Tax Rate: The effective tax rate for the third quarter of fiscal 2011 was 38.2 percent, compared to 38.1 percent in the previous fiscal years third quarter. |
| Earnings Per Share: Diluted earnings per share were up 15.8 percent to $0.66 in the third quarter of fiscal 2011 compared to $0.57 in the previous fiscal years third quarter, which included a $0.05 benefit from special items, which were primarily gains from litigation settlements. Excluding these litigation gains, diluted earnings per share were up 26.9 percent. |
| Shares Outstanding: Diluted average shares outstanding for the third quarter of fiscal year 2011 were 279.0 million, down 7.7 million shares from the previous fiscal years third quarter due primarily to share repurchases, net of option exercises over the last twelve months. |
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Dial in:
|
888-568-0124 from within the U.S. | |
203-369-3459 from outside the U.S. |
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Three | Three | |||||||||||||||||||
Months Ended | Months Ended | |||||||||||||||||||
June 30, | % of | June 30, | % of | % | ||||||||||||||||
2011 | Revenue | 2010 | Revenue | Change | ||||||||||||||||
Revenue |
$ | 20,161,022 | 100.00 | % | $ | 19,602,120 | 100.00 | % | 2.9 | % | ||||||||||
Cost of goods sold |
19,507,441 | 19,013,750 | 2.6 | % | ||||||||||||||||
Gross profit (1) |
653,581 | 3.24 | % | 588,370 | 3.00 | % | 11.1 | % | ||||||||||||
Operating expenses: |
||||||||||||||||||||
Distribution, selling and administrative |
308,806 | 1.53 | % | 289,288 | 1.48 | % | 6.7 | % | ||||||||||||
Depreciation and amortization |
27,616 | 0.14 | % | 21,625 | 0.11 | % | 27.7 | % | ||||||||||||
Facility consolidations, employee severance and other (2) |
| | % | (4,397 | ) | -0.02 | % | |||||||||||||
Total operating expenses |
336,422 | 1.67 | % | 306,516 | 1.56 | % | 9.8 | % | ||||||||||||
Operating income |
317,159 | 1.57 | % | 281,854 | 1.44 | % | 12.5 | % | ||||||||||||
Other loss |
62 | | % | 488 | | % | ||||||||||||||
Interest expense, net |
18,605 | 0.09 | % | 17,901 | 0.09 | % | 3.9 | % | ||||||||||||
Income before income taxes |
298,492 | 1.48 | % | 263,465 | 1.34 | % | 13.3 | % | ||||||||||||
Income taxes |
114,073 | 0.57 | % | 100,260 | 0.51 | % | 13.8 | % | ||||||||||||
Net income |
$ | 184,419 | 0.91 | % | $ | 163,205 | 0.83 | % | 13.0 | % | ||||||||||
Earnings per share: |
||||||||||||||||||||
Basic |
$ | 0.67 | $ | 0.58 | 15.5 | % | ||||||||||||||
Diluted |
$ | 0.66 | $ | 0.57 | 15.8 | % | ||||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||||||
Basic |
273,492 | 281,195 | ||||||||||||||||||
Diluted (3) |
279,015 | 286,693 |
(1) | Includes a $1.2 million gain and a $19.1 million gain from antitrust litigation settlements in the three months ended June 30, 2011 and 2010, respectively. | |
(2) | Represents the reversal of a $4.4 million legal accrual in the three months ended June 30, 2010. | |
(3) | Includes the dilutive effect of stock options, restricted stock, and restricted stock units. |
Nine | Nine | |||||||||||||||||||
Months Ended | Months Ended | |||||||||||||||||||
June 30, | % of | June 30, | % of | % | ||||||||||||||||
2011 | Revenue | 2010 | Revenue | Change | ||||||||||||||||
Revenue |
$ | 59,809,888 | 100.00 | % | $ | 58,238,606 | 100.00 | % | 2.7 | % | ||||||||||
Cost of goods sold |
57,888,739 | 56,474,798 | 2.5 | % | ||||||||||||||||
Gross profit (1) |
1,921,149 | 3.21 | % | 1,763,808 | 3.03 | % | 8.9 | % | ||||||||||||
Operating expenses: |
||||||||||||||||||||
Distribution, selling and administrative |
882,971 | 1.48 | % | 849,018 | 1.46 | % | 4.0 | % | ||||||||||||
Depreciation and amortization |
79,004 | 0.13 | % | 63,109 | 0.11 | % | 25.2 | % | ||||||||||||
Facility consolidations, employee severance and other (2) |
| | % | (4,482 | ) | -0.01 | % | |||||||||||||
Intangible asset impairments |
| | % | 700 | | % | ||||||||||||||
Total operating expenses |
961,975 | 1.61 | % | 908,345 | 1.56 | % | 5.9 | % | ||||||||||||
Operating income |
959,174 | 1.60 | % | 855,463 | 1.47 | % | 12.1 | % | ||||||||||||
Other (income) loss |
(1,747 | ) | | % | 1,033 | | % | |||||||||||||
Interest expense, net |
56,805 | 0.09 | % | 54,447 | 0.09 | % | 4.3 | % | ||||||||||||
Income before income taxes |
904,116 | 1.51 | % | 799,983 | 1.37 | % | 13.0 | % | ||||||||||||
Income taxes |
344,816 | 0.58 | % | 304,463 | 0.52 | % | 13.3 | % | ||||||||||||
Net income |
$ | 559,300 | 0.94 | % | $ | 495,520 | 0.85 | % | 12.9 | % | ||||||||||
Earnings per share: |
||||||||||||||||||||
Basic |
$ | 2.04 | $ | 1.75 | 16.6 | % | ||||||||||||||
Diluted |
$ | 2.00 | $ | 1.72 | 16.3 | % | ||||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||||||
Basic |
274,484 | 283,390 | ||||||||||||||||||
Diluted (3) |
279,837 | 288,412 |
(1) | Includes a $1.2 million gain and a $20.7 million gain from antitrust litigation settlements in the nine months ended June 30, 2011 and 2010, respectively. | |
(2) | Primarily represents the reversal of a $4.4 million legal accrual in the nine months ended June 30, 2010. | |
(3) | Includes the dilutive effect of stock options, restricted stock, and restricted stock units. |
June 30, | September 30, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 2,000,453 | $ | 1,658,182 | ||||
Accounts receivable, net |
3,907,112 | 3,827,484 | ||||||
Merchandise inventories |
5,157,796 | 5,210,098 | ||||||
Prepaid expenses and other |
55,944 | 52,586 | ||||||
Total current assets |
11,121,305 | 10,748,350 | ||||||
Property and equipment, net |
761,988 | 711,712 | ||||||
Other long-term assets |
2,972,436 | 2,974,781 | ||||||
Total assets |
$ | 14,855,729 | $ | 14,434,843 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 8,893,332 | $ | 8,833,285 | ||||
Current portion of long-term debt |
175 | 422 | ||||||
Other current liabilities |
1,114,278 | 1,072,637 | ||||||
Total current liabilities |
10,007,785 | 9,906,344 | ||||||
Long-term debt, less current portion |
1,361,889 | 1,343,158 | ||||||
Other long-term liabilities |
282,975 | 231,044 | ||||||
Stockholders equity |
3,203,080 | 2,954,297 | ||||||
Total liabilities and stockholders equity |
$ | 14,855,729 | $ | 14,434,843 | ||||
Nine | Nine | |||||||
Months Ended | Months Ended | |||||||
June 30, | June 30, | |||||||
2011 | 2010 | |||||||
Operating Activities: |
||||||||
Net income |
$ | 559,300 | $ | 495,520 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities |
268,163 | 194,719 | ||||||
Changes in operating assets and liabilities |
(19,618 | ) | (130,848 | ) | ||||
Net cash provided by operating activities |
807,845 | 559,391 | ||||||
Investing Activities: |
||||||||
Capital expenditures |
(127,473 | ) | (132,302 | ) | ||||
Other |
876 | 143 | ||||||
Net cash used in investing activities |
(126,597 | ) | (132,159 | ) | ||||
Financing Activities: |
||||||||
Net borrowings |
17,201 | 179,976 | ||||||
Purchases of common stock |
(400,253 | ) | (350,262 | ) | ||||
Exercises of stock options |
138,130 | 122,715 | ||||||
Cash dividends on common stock |
(86,920 | ) | (68,306 | ) | ||||
Debt issuance costs and other |
(7,135 | ) | (10,007 | ) | ||||
Net cash used in financing activities |
(338,977 | ) | (125,884 | ) | ||||
Increase in cash and cash equivalents |
342,271 | 301,348 | ||||||
Cash and cash equivalents at beginning of period |
1,658,182 | 1,009,368 | ||||||
Cash and cash equivalents at end of period |
$ | 2,000,453 | $ | 1,310,716 | ||||
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