Exhibit 99.1
News Release | ||
AmerisourceBergen Corporation | ||
P.O. Box 959 | ||
Valley Forge, PA 19482 |
Contact: | Michael N. Kilpatric | |
610-727-7118 | ||
mkilpatric@amerisourcebergen.com |
AMERISOURCEBERGEN REPORTS RECORD QUARTERLY
DILUTED EARNINGS PER SHARE OF $0.68
VALLEY FORGE, PA, April 25, 2007 —AmerisourceBergen Corporation (NYSE:ABC) today reported results for its fiscal second quarter ended March 31, 2007. The following results are presented in accordance with U.S. generally accepted accounting principles (GAAP).
Fiscal Second Quarter Highlights
• | Diluted earnings per share from continuing operations of $0.68, up 11 percent. |
• | Operating revenue of $15.3 billion, up 9 percent. |
• | Pharmaceutical Distribution operating margin of 1.35 percent, up 8 basis points. |
• | Cash flow from operations of $423 million, above expectations. |
Fiscal First Six Months Highlights
• | Diluted earnings per share from continuing operations of $1.30, up 20 percent. |
• | Operating revenue of $31.0 billion, up 12 percent. |
• | Pharmaceutical Distribution operating margin of 1.30 percent, up 14 basis points. |
• | Cash flow from operations of $711 million. |
• | Capital deployment: $365 million in share repurchases, more than $405 million in acquisitions closed or under agreement, and dividend doubled. |
“Our March quarter, historically our strongest, again produced outstanding results, driven by strong performance in our traditional drug and specialty distribution businesses,” said R. David Yost, AmerisourceBergen’s Chief Executive Officer. “Our 9 percent operating revenue growth was in line with expectations. Our excellent earnings per share performance is a result of that revenue growth, expanding margins in distribution, and our disciplined use of cash. During the quarter, we committed more than $260 million in capital with the agreements to acquire Bellco Health and Xcenda. In
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addition, we bought back $35 million of our shares. We retain significant financial flexibility with a strong balance sheet and solid cash position.”
Discussion of Results
AmerisourceBergen’s operating revenue was $15.3 billion in the second quarter of fiscal 2007 compared to $14.0 billion for the same period last year, a 9 percent increase. Bulk deliveries in the quarter increased 5 percent to $1.23 billion from $1.17 billion in last fiscal year’s second quarter.
Consolidated operating income in the quarter increased 12 percent to $220.9 million, primarily due to increased gross margin in the Pharmaceutical Distribution segment. In addition, a $1.8 million gain from settlements of pharmaceutical manufacturer antitrust litigation cases, less $0.1 million of net charges for facility consolidations, employee severance and other costs, had a net positive $1.6 million impact on consolidated operating income in the fiscal 2007 second quarter. In the previous fiscal year’s second quarter, the net positive impact of antitrust litigation settlements and charges for facility consolidations, employee severance and other costs was $5.8 million.
Other income of $5.8 million for the second quarter of fiscal 2006 included $6.5 million relating to the sale of a small investment and an eminent domain settlement.
The effective tax rate in the second quarter of fiscal 2007 was 38.5 percent up from 34.5 percent in the previous fiscal year’s second quarter, which included $5.5 million of favorable tax adjustments. The Company expects the tax rate for the remaining quarters in fiscal 2007 to be between 37 percent and 38 percent.
Diluted earnings per share from continuing operations were $0.68 in the second quarter of fiscal 2007, compared to $0.61 in the previous fiscal year’s second quarter, an 11 percent increase. Included in the results for the second quarter of fiscal 2007 is a gain from the antitrust litigation settlements as well as a charges for facility consolidations, employee severance and other costs, which resulted in a charge, net of tax, of $0.3 million or zero cents per diluted share.
Special items in the second quarter of fiscal 2006, which included gains from antitrust litigation settlements, an investment sale and an eminent domain settlement, and the tax adjustments, less the charges for facility consolidations, employee severance and other costs, resulted in a benefit, net of tax, of $13.6 million or $0.06 per diluted share.
Diluted average shares outstanding for the second quarter of fiscal year 2007 were 191.8 million, down 19 million from the previous fiscal year’s second quarter due to share repurchases, net of option exercises.
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For the first six months of fiscal 2007, AmerisourceBergen’s operating revenue was $31.0 billion compared to $27.6 billion for the same period last year, a 12 percent increase. Bulk deliveries in the first half of the fiscal year decreased 1 percent to $2.3 billion.
Consolidated operating income in the first six months of the fiscal year increased 18 percent to $429.8 million due to operating income growth in the Pharmaceutical Distribution segment.
For the first six months of fiscal 2007 diluted earnings per share from continuing operations were $1.30, compared to $1.08 in the previous year’s first six months, a 20 percent increase.
“For the fiscal 2007 second quarter, excellent operating performance in the Pharmaceutical Distribution segment more than offset the lower than expected performance in the PharMerica segment,” said Kurt J. Hilzinger, AmerisourceBergen’s President and Chief Operating Officer.
“Our Drug Corporation, which provides pharmaceutical distribution and related services to pharmacies, led distribution performance in the quarter with solid margin expansion. Performance under our fee-for-service agreements, continued strong sales of generic pharmaceuticals, and price appreciation were gross margin drivers in the quarter. Benefits from Optimiz®, our program to enhance the efficiency of our distribution center network, continued to improve our cost structure. Our pending acquisition of Bellco Health, a pharmaceutical distributor, is expected to enhance our capability in the distribution segment.
“With operating revenues up 27 percent, our Specialty Group, which focuses on the distribution of specialty pharmaceuticals to physicians and the services that support that market, continued its strong growth. Its market-leading oncology businesses as well as other distribution businesses to physicians continue to drive growth faster than the overall pharmaceutical market.
“Our Packaging Group continued to perform well. In the quarter, Anderson Packaging began packaging five new products for branded manufacturers and American Health Packaging launched 11 new proprietary generic product offerings for various customers. We continued to invest in this business during the quarter with the approval of a new 260,000-square-foot facility for Anderson in Rockford, Illinois.
“Our PharMerica segment earnings lagged in the second quarter due to lower than expected performance in the PMSI workers’ compensation business, primarily because of increased competitive pressure on customer pricing. The Long Term Care business grew revenues 5 percent in the quarter, and remains on track to meet our expectations for the fiscal year.”
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Segment Review
AmerisourceBergen operates in two segments, Pharmaceutical Distribution and PharMerica. Pharmaceutical Distribution includes the operations of AmerisourceBergen Drug Corporation (ABDC), Specialty Group (ABSG) and Packaging Group (ABPG), and PharMerica includes the PharMerica Long Term Care (LTC) institutional pharmacy business and PMSI, the workers’ compensation business. Intersegment sales of $231.6 million in the second quarter of fiscal 2007 from AmerisourceBergen Drug Corporation to PharMerica, which are included in the Pharmaceutical Distribution segment’s operating revenue, are eliminated for consolidated reporting purposes.
Pharmaceutical Distribution Segment
Operating revenue of $15.1 billion in the second quarter of fiscal 2007 was up 9 percent compared to the same quarter in the previous fiscal year as above market distribution growth in ABSG drove operating revenues to the high end of overall market growth. Pharmaceutical Distribution customer mix in the second quarter of fiscal 2007 was 62 percent institutional and 38 percent retail.
For the segment, gross profit as a percentage of operating revenue in the second quarter of fiscal 2007 was 3.23 percent compared to 3.16 percent in the same period in the prior fiscal year. The increase was driven by margin expansion in ABDC as a result of strong performance under fee-for-service agreements, generic sales growth that was above overall market growth, and price appreciation. This offset a decline in ABSG’s gross margin due to its business mix, as its lower margin distribution businesses grew faster than its higher margin service businesses. Operating expenses as a percentage of operating revenue for the segment in the fiscal 2007 second quarter were 1.87 percent, down from 1.89 percent in the prior year’s second quarter, reflecting continuing operating leverage.
Segment operating income for the fiscal 2007 second quarter was $203.9 million, a 16 percent increase over the same period in fiscal 2006. Operating income as a percentage of operating revenue in the second quarter of 2007 was 1.35 percent, up eight basis points over the same quarter last fiscal year.
PharMerica
PharMerica’s operating revenue for the second quarter of fiscal 2007 was $431.4 million, compared with $412.7 million in the previous year’s second quarter, up 5 percent due to the growth in LTC. In the second quarter of fiscal 2007, LTC operating revenues were $316.8 million and PMSI operating revenues were $114.6 million. Operating income for the second quarter of fiscal 2007 was $15.4 million, down from the same quarter last fiscal year, with LTC contributing $6.8 million and PMSI contributing $8.6 million. Operating income as a percentage of revenue was 3.56 percent in the
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second quarter of fiscal 2007, down from the 3.92 percent in last year’s second quarter due to PMSI’s relatively flat revenue growth and competitive pressures.
Looking Ahead
“In April 2007, we received an antitrust litigation settlement that will provide a gain of $0.06 per diluted share in the third fiscal quarter of 2007, which net of anticipated special charges over the last half of the fiscal year, is expected to provide a benefit of $0.05 per diluted share in the 2007 fiscal year,” said Yost. “As a result, we are raising our GAAP diluted earnings per share expectations for fiscal 2007 by $0.05 to a range of $2.50 to $2.65 from a range of $2.45 to $2.60. The PharMerica Long-Term Care business, which the Company continues to expect to spin off on a tax-free basis to our shareholders by the end of June 2007, continues to represent $0.09 to $0.11 of our earnings expectations for all of fiscal year 2007. Our diluted earnings per share guidance for fiscal 2007 continues to assume operating revenue growth of 9 percent to 11 percent and reflects operating margin expansion in the high single-digit basis point range for the Pharmaceutical Distribution segment.”
“With our operating cash generation coming in ahead of expectations at the end of six months, we are raising our expectation for free cash flow in fiscal year 2007 by $150 million to a range of $575 million to $650 million from the previous range of $425 million to $500 million. Capital expenditures, which are included in the free cash flow expectation, remain unchanged in the $100 million to $125 million range,” continued Yost. “We also continue to expect to repurchase $450 million to $500 million of our common shares during fiscal 2007.”
Conference Call
The Company will host a conference call to discuss its results at 11:00 a.m. Eastern Daylight Time on April 25, 2007. Participating in the conference call will be: R. David Yost, Chief Executive Officer; Kurt J. Hilzinger, President and Chief Operating Officer; and Michael D. DiCandilo, Executive Vice President and Chief Financial Officer.
To access the live conference call via telephone:
Dial in: (612) 288-0337, no access code required.
To access the live webcast:
Go to the Quarterly Webcasts section on the Investor Relations page athttp://www.amerisourcebergen.com.
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A replay of the telephone call and webcast will be available from 2:30 p.m. April 25, 2007 until 11:59 p.m. May 2, 2007. The Webcast replay will be available for 30 days.
To access the replay via telephone:
Dial in: | 800-475-6701 from within the U.S., access code: 869797 | |
(320) 365-3844 from outside the U.S., access code: 869797 |
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations page athttp://www.amerisourcebergen.com.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is one of the world’s largest pharmaceutical services companies serving the United States, Canada and selected global markets. Servicing both pharmaceutical manufacturers and healthcare providers in the pharmaceutical supply channel, the Company provides drug distribution and related services designed to reduce costs and improve patient outcomes. AmerisourceBergen’s service solutions range from pharmacy automation and pharmaceutical packaging to pharmacy services for skilled nursing and assisted living facilities, reimbursement and pharmaceutical consulting services, and physician education. With more than $64 billion in annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs more than 13,000 people. AmerisourceBergen is ranked #29 on the Fortune 500 list. For more information, go to www.amerisourcebergen.com.
Forward-Looking Statements
This news release may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: competitive pressures; the loss of one or more key customer or supplier relationships; customer defaults or insolvencies; changes in customer mix; supplier defaults or insolvencies; changes in pharmaceutical manufacturers’ pricing and distribution policies or practices; adverse resolution of any contract or other disputes with customers (including departments and agencies of the U.S. Government) or suppliers; regulatory changes (including increased government regulation of the pharmaceutical supply channel); changes in U.S. government policies (including reimbursement changes arising from federal legislation, including the Medicare Modernization Act and the Deficit Reduction Act of 2005); changes in regulatory or private medical guidelines and/or reimbursement practices for the pharmaceuticals we distribute; price inflation in branded pharmaceuticals and price deflation in generics; declines in the amounts of market share rebates offered by pharmaceutical manufacturers to the PharMerica Long-Term Care business, declines in the amounts of rebates that the PharMerica Long-Term Care business can retain, and/or the inability of the business to offset the rebate reductions that have already occurred or any rebate reductions that may occur in the future; any disruption to or other adverse effects upon the PharMerica Long-Term Care business caused by the announcement of the Company’s agreement to combine the PharMerica Long-Term Care business with the institutional pharmacy business of Kindred Healthcare, Inc. into a new public company that will be owned 50% by the Company’s shareholders (the “PharMerica LTC Transaction”); the inability of the Company to successfully complete
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the PharMerica LTC Transaction; fluctuations in market interest rates; operational or control issues arising from the Company’s outsourcing of information technology activities; success of integration, restructuring or systems initiatives; fluctuations in the U.S. dollar—Canadian dollar exchange rate and other foreign exchange rates; economic, business, competitive and/or regulatory developments in Canada, the United Kingdom and elsewhere outside of the United States; acquisition of businesses that do not perform as we expect or that are difficult for us to integrate or control; changes in tax legislation or adverse resolution of challenges to our tax positions; and other economic, business, competitive, legal, tax, regulatory and/or operational factors affecting the business of the Company generally. Certain additional factors that management believes could cause actual outcomes and results to differ materially from those described in forward-looking statements are set forth (i) in Item 1A (Risk Factors) in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2006 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act of 1934.
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AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Three Months Ended March 31, 2007 | % of Operating Revenue | Three Months Ended March 31, 2006 | % of Operating Revenue | % Change | ||||||||||||
Revenue: | ||||||||||||||||
Operating revenue | $ | 15,283,761 | 100.00 | % | $ | 14,049,175 | 100.00 | % | 9 | % | ||||||
Bulk deliveries to customer warehouses | 1,228,780 | 1,171,504 | 5 | % | ||||||||||||
Total revenue | 16,512,541 | 15,220,679 | 8 | % | ||||||||||||
Cost of goods sold | 15,906,098 | 14,659,916 | 9 | % | ||||||||||||
Gross profit | 606,443 | 3.97 | % | 560,763 | 3.99 | % | 8 | % | ||||||||
Operating expenses: | ||||||||||||||||
Distribution, selling and administrative | 363,367 | 2.38 | % | 339,113 | 2.41 | % | 7 | % | ||||||||
Depreciation and amortization | 22,049 | 0.14 | % | 20,149 | 0.14 | % | 9 | % | ||||||||
Facility consolidations, employee severance, and other | 135 | — | 3,577 | 0.03 | % | -96 | % | |||||||||
Operating income | 220,892 | 1.45 | % | 197,924 | 1.41 | % | 12 | % | ||||||||
Other loss (income) | 376 | — | (5,826 | ) | -0.04 | % | -106 | % | ||||||||
Interest expense, net | 9,889 | 0.06 | % | 7,344 | 0.05 | % | 35 | % | ||||||||
Income from continuing operations before income taxes | 210,627 | 1.38 | % | 196,406 | 1.40 | % | 7 | % | ||||||||
Income taxes | 81,131 | 0.53 | % | 67,816 | 0.48 | % | 20 | % | ||||||||
Income from continuing operations | 129,496 | 0.85 | % | 128,590 | 0.92 | % | 1 | % | ||||||||
Income from discontinued operations, net of tax | — | (411 | ) | |||||||||||||
Net income | $ | 129,496 | 0.85 | % | $ | 129,001 | 0.92 | % | — | |||||||
Earnings per share: | ||||||||||||||||
Basic | ||||||||||||||||
Continuing operations | $ | 0.69 | $ | 0.62 | 11 | % | ||||||||||
Discontinued operations | — | — | ||||||||||||||
Net income | $ | 0.69 | $ | 0.62 | 11 | % | ||||||||||
Diluted | ||||||||||||||||
Continuing operations | $ | 0.68 | $ | 0.61 | 11 | % | ||||||||||
Discontinued operations | — | — | ||||||||||||||
Net income | $ | 0.68 | $ | 0.61 | 11 | % | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 188,772 | 208,050 | ||||||||||||||
Diluted | 191,797 | 210,771 |
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Six Months Ended March 31, 2007 | % of Operating Revenue | Six Months Ended March 31, 2006 | % of Operating Revenue | % Change | ||||||||||||
Revenue: | ||||||||||||||||
Operating revenue | $ | 30,980,300 | 100.00 | % | $ | 27,585,029 | 100.00 | % | 12 | % | ||||||
Bulk deliveries to customer warehouses | 2,257,634 | 2,288,797 | -1 | % | ||||||||||||
Total revenue | 33,237,934 | 29,873,826 | 11 | % | ||||||||||||
Cost of goods sold | 32,036,848 | 28,784,685 | 11 | % | ||||||||||||
Gross profit | 1,201,086 | 3.88 | % | 1,089,141 | 3.95 | % | 10 | % | ||||||||
Operating expenses: | ||||||||||||||||
Distribution, selling and administrative | 720,328 | 2.33 | % | 670,972 | 2.43 | % | 7 | % | ||||||||
Depreciation and amortization | 44,849 | 0.14 | % | 41,236 | 0.15 | % | 9 | % | ||||||||
Facility consolidations, employee severance, and other | 6,158 | 0.02 | % | 12,404 | 0.04 | % | -50 | % | ||||||||
Operating income | 429,751 | 1.39 | % | 364,529 | 1.32 | % | 18 | % | ||||||||
Other loss (income) | 442 | — | (5,043 | ) | -0.02 | % | -109 | % | ||||||||
Interest expense, net | 18,032 | 0.06 | % | 13,856 | 0.05 | % | 30 | % | ||||||||
Income from continuing operations before income taxes | 411,277 | 1.33 | % | 355,716 | 1.29 | % | 16 | % | ||||||||
Income taxes | 159,594 | 0.52 | % | 129,150 | 0.47 | % | 24 | % | ||||||||
Income from continuing operations | 251,683 | 0.81 | % | 226,566 | 0.82 | % | 11 | % | ||||||||
Loss from discontinued operations, net of tax | — | 298 | ||||||||||||||
Net income | $ | 251,683 | 0.81 | % | $ | 226,268 | 0.82 | % | 11 | % | ||||||
Earnings per share: | ||||||||||||||||
Basic | ||||||||||||||||
Continuing operations | $ | 1.32 | $ | 1.09 | 21 | % | ||||||||||
Discontinued operations | — | — | ||||||||||||||
Net income | $ | 1.32 | $ | 1.09 | 21 | % | ||||||||||
Diluted | ||||||||||||||||
Continuing operations | $ | 1.30 | $ | 1.08 | 20 | % | ||||||||||
Discontinued operations | — | — | ||||||||||||||
Rounding | — | (0.01 | ) | |||||||||||||
Net income | $ | 1.30 | $ | 1.07 | 21 | % | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 190,607 | 208,160 | ||||||||||||||
Diluted | 193,409 | 210,570 |
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, 2007 | September 30, 2006 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 778,382 | $ | 1,261,268 | ||
Short-term investment securities available-for-sale | 830,455 | 67,840 | ||||
Accounts receivable, net | 3,633,713 | 3,427,139 | ||||
Merchandise inventories | 4,602,195 | 4,422,055 | ||||
Prepaid expenses and other | 30,065 | 32,105 | ||||
Total current assets | 9,874,810 | 9,210,407 | ||||
Property and equipment, net | 525,572 | 509,746 | ||||
Other long-term assets | 3,186,390 | 3,063,767 | ||||
Total assets | $ | 13,586,772 | $ | 12,783,920 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 7,301,994 | $ | 6,499,264 | ||
Current portion of long-term debt | 833 | 1,560 | ||||
Other current liabilities | 888,116 | 958,364 | ||||
Total current liabilities | 8,190,943 | 7,459,188 | ||||
Long-term debt, less current portion | 1,199,138 | 1,093,931 | ||||
Other long-term liabilities | 102,007 | 89,644 | ||||
Stockholders’ equity | 4,094,684 | 4,141,157 | ||||
Total liabilities and stockholders’ equity | $ | 13,586,772 | $ | 12,783,920 | ||
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended March 31, 2007 | Six Months Ended March 31, 2006 | |||||||
Operating Activities: | ||||||||
Net income | $ | 251,683 | $ | 226,268 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | 106,168 | 106,437 | ||||||
Changes in operating assets and liabilities | 352,956 | 369,933 | ||||||
Net cash provided by operating activities | 710,807 | 702,638 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (57,397 | ) | (60,149 | ) | ||||
Cost of acquired companies, net of cash acquired | (144,649 | ) | (238,427 | ) | ||||
Proceeds from sales of property and equipment | 4,103 | 2,199 | ||||||
Proceeds from sale-leaseback transactions | — | 28,143 | ||||||
Proceeds from sale of equity investment and eminent domain settlement | — | 7,582 | ||||||
Net short-term investment activity | (762,615 | ) | (515,987 | ) | ||||
Net cash used in investing activities | (960,558 | ) | (776,639 | ) | ||||
Financing Activities: | ||||||||
Net borrowings | 107,802 | 124,916 | ||||||
Deferred financing costs and other | (1,920 | ) | (992 | ) | ||||
Purchases of common stock | (396,193 | ) | (132,226 | ) | ||||
Exercises of stock options | 77,290 | 97,804 | ||||||
Cash dividends on common stock | (19,193 | ) | (10,464 | ) | ||||
Purchases of common stock for employee stock purchase plan | (921 | ) | (1,037 | ) | ||||
Net cash (used in) provided by financing activities | (233,135 | ) | 78,001 | |||||
(Decrease) increase in cash and cash equivalents | (482,886 | ) | 4,000 | |||||
Cash and cash equivalents at beginning of period | 1,261,268 | 966,553 | ||||||
Cash and cash equivalents at end of period | $ | 778,382 | $ | 970,553 | ||||
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended March 31, | |||||||||||
Operating Revenue | 2007 | 2006 | % Change | ||||||||
Pharmaceutical Distribution | $ | 15,084,048 | $ | 13,877,560 | 9 | % | |||||
PharMerica | 431,360 | 412,685 | 5 | % | |||||||
Intersegment eliminations | (231,647 | ) | (241,070 | ) | -4 | % | |||||
Operating revenue | $ | 15,283,761 | $ | 14,049,175 | 9 | % | |||||
Three Months Ended March 31, | |||||||||||
Operating Income | 2007 | 2006 | % Change | ||||||||
Pharmaceutical Distribution | $ | 203,910 | $ | 175,951 | 16 | % | |||||
PharMerica | 15,364 | 16,171 | -5 | % | |||||||
Facility consolidations, employee severance, and other | (135 | ) | (3,577 | ) | -96 | % | |||||
Gain on antitrust litigation settlements | 1,753 | 9,379 | -81 | % | |||||||
Operating income | $ | 220,892 | $ | 197,924 | 12 | % | |||||
Percentages of operating revenue: | |||||||||||
Pharmaceutical Distribution | |||||||||||
Gross profit | 3.23 | % | 3.16 | % | |||||||
Operating expenses | 1.87 | % | 1.89 | % | |||||||
Operating income | 1.35 | % | 1.27 | % | |||||||
PharMerica | |||||||||||
Gross profit | 27.37 | % | 27.48 | % | |||||||
Operating expenses | 23.81 | % | 23.56 | % | |||||||
Operating income | 3.56 | % | 3.92 | % | |||||||
AmerisourceBergen Corporation | |||||||||||
Gross profit | 3.97 | % | 3.99 | % | |||||||
Operating expenses | 2.52 | % | 2.58 | % | |||||||
Operating income | 1.45 | % | 1.41 | % |
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Six Months Ended March 31, | |||||||||||
Operating Revenue | 2007 | 2006 | % Change | ||||||||
Pharmaceutical Distribution | $ | 30,577,171 | $ | 27,225,713 | 12 | % | |||||
PharMerica | 867,245 | 821,943 | 6 | % | |||||||
Intersegment eliminations | (464,116 | ) | (462,627 | ) | — | ||||||
Operating revenue | $ | 30,980,300 | $ | 27,585,029 | 12 | % | |||||
Six Months Ended March 31, | |||||||||||
Operating Income | 2007 | 2006 | % Change | ||||||||
Pharmaceutical Distribution | $ | 398,043 | $ | 314,827 | 26 | % | |||||
PharMerica | 34,223 | 34,678 | -1 | % | |||||||
Facility consolidations, employee severance, and other | (6,158 | ) | (12,404 | ) | -50 | % | |||||
Gain on antitrust litigation settlements | 3,643 | 27,428 | -87 | % | |||||||
Operating income | $ | 429,751 | $ | 364,529 | 18 | % | |||||
Percentages of operating revenue: | |||||||||||
Pharmaceutical Distribution | |||||||||||
Gross profit | 3.13 | % | 3.07 | % | |||||||
Operating expenses | 1.83 | % | 1.91 | % | |||||||
Operating income | 1.30 | % | 1.16 | % | |||||||
PharMerica | |||||||||||
Gross profit | 27.77 | % | 27.64 | % | |||||||
Operating expenses | 23.83 | % | 23.42 | % | |||||||
Operating income | 3.95 | % | 4.22 | % | |||||||
AmerisourceBergen Corporation | |||||||||||
Gross profit | 3.88 | % | 3.95 | % | |||||||
Operating expenses | 2.49 | % | 2.63 | % | |||||||
Operating income | 1.39 | % | 1.32 | % |
AMERISOURCEBERGEN CORPORATION
EARNINGS PER SHARE
(In thousands, except per share data)
(unaudited)
Basic earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the periods presented. Diluted earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the periods presented plus the dilutive effect of stock options and restricted stock.
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||||
Income from continuing operations | $ | 129,496 | $ | 128,590 | $ | 251,683 | $ | 226,566 | |||||
Weighted average common shares outstanding—basic | 188,772 | 208,050 | 190,607 | 208,160 | |||||||||
Effect of dilutive securities—stock options and restricted stock | 3,025 | 2,721 | 2,802 | 2,410 | |||||||||
Weighted average common shares outstanding—diluted | 191,797 | 210,771 | 193,409 | 210,570 | |||||||||
Earnings per share: | |||||||||||||
Basic | |||||||||||||
Continuing operations | $ | 0.69 | $ | 0.62 | $ | 1.32 | $ | 1.09 | |||||
Discontinued operations | — | — | — | — | |||||||||
Net income | $ | 0.69 | $ | 0.62 | $ | 1.32 | $ | 1.09 | |||||
Diluted | |||||||||||||
Continuing operations | $ | 0.68 | $ | 0.61 | $ | 1.30 | $ | 1.08 | |||||
Discontinued operations | — | — | — | — | |||||||||
Rounding | — | — | — | (0.01 | ) | ||||||||
Net income | $ | 0.68 | $ | 0.61 | $ | 1.30 | $ | 1.07 | |||||