(BW)(CA-BERGEN-BRUNSWIG)(BBC) Bergen Brunswig Reports Record Third
Quarter Revenues and Operating Earnings
ORANGE, Calif.--(BUSINESS WIRE)--July 26, 2001--
Earnings from Continuing Operations Increase 78%
Revenues from Continuing Operations Increase to $5.5 Billion
Bergen Brunswig Corporation (NYSE:BBC) today announced results for the
period ended June 30, 2001 -- the Company's third quarter of fiscal 2001.
For the third quarter, revenues from continuing operations, excluding bulk
shipments, increased 14% to a record $5.5 billion, which compares to $4.8
billion last year. Operating earnings from continuing operations rose to a
record $98.6 million for the quarter, up 34% from the year-ago period. Earnings
before interest, taxes, depreciation and amortization (EBITDA) were $115.7
million for the quarter, an increase of 23% from last year's third quarter
EBITDA.
Net earnings and earnings from continuing operations were $35.2 million for
the third quarter, up 78% from last year's earnings from continuing operations
of $19.7 million. Last year's net loss for the quarter, including losses from
discontinued operations and dispositions related to the sale of Bergen Brunswig
Medical Corporation and Stadtlander, was $239.4 million.
Diluted earnings per share from continuing operations were $0.26 compared to
$0.15 for the third quarter last year, an increase of 73%. Diluted loss per
share including discontinued operations and dispositions was $1.78 for the third
quarter of last year. Weighted average diluted shares outstanding were 137.3
million in fiscal 2001 versus 134.5 million for the third quarter last year.
For the nine months ended June 30, 2001 revenues from continuing operations,
excluding bulk shipments, increased 10% to $15.2 billion which compares to $13.9
billion last year. Operating earnings from continuing operations rose 22% to
$264.3 million for the first nine months of fiscal 2001 compared to $217.4
million for the same period a year ago. EBITDA from continuing operations
increased 13% in the first nine months of fiscal 2001 to $315.6 million from
$279.4 million for the same period last year.
For the nine months, net earnings and earnings from continuing operations
were $84.7 million, up 32% from last year's earnings from continuing operations
of $64.3 million. Last year's net loss of $207.5 million included losses from
discontinued operations and dispositions.
Diluted earnings per share from continuing operations were $0.62 for the
nine months compared to $0.48 for the first nine months of fiscal 2000, an
increase of 29%. Diluted loss per share including discontinued operations and
dispositions was $1.54 for the first nine months of last year. Weighted average
diluted shares outstanding were 136.8 million for the first nine months of
fiscal 2001 versus 134.5 million for the first nine months of fiscal 2000.
"Last year at this time we stated our resolve to focus on our core expertise
in both our major business segments, pharmaceutical distribution and PharMerica,
in a concerted effort to enhance shareowner value," commented Robert E. Martini,
Bergen's Chairman of the Board and CEO. "We have done just that. Our current
quarter's results show record revenues and operating earnings as well as FIFO
operating margin improvements and demonstrate that our strategies are
succeeding.
"While many industries have been adversely affected by changes in the
economy, the healthcare industry is generally recession-resistant. We continue
to see positive trends in our business as the demand for pharmaceutical products
increases, generic drug usage grows as branded products come off patent, lower
interest rates prevail, and our operations become increasingly efficient. All in
all, we believe the economic climate continues to shift in our favor."
Segment Review
Pharmaceutical Distribution Segment
This segment, comprised of Bergen Brunswig Drug Company (BBDC) and Bergen
Brunswig Specialty Group (BBSG), increased revenues 14% in the third quarter to
$5.3 billion and 10% to $14.8 billion for the nine months. Operating earnings
for the pharmaceutical distribution segment increased 12% to $102.5 million for
the quarter. For the nine month period, operating earnings increased 9% to
$275.8 million.
Bergen Brunswig Drug Company
BBDC reported a 12% revenue increase for the quarter, reporting a record
$4.9 billion. For the nine months, revenues were $13.6 billion, an 8% increase
over the prior year.
"We are very pleased to report our third consecutive quarter of sales,
earnings and operating expense margin improvement, despite difficult revenue
comparisons to last year," said Brent R. Martini, President, BBDC. "Our
customer, supplier and internal initiatives are favorably impacting
profitability."
During the quarter, BBDC renewed several prime vendor contracts. Raley's
signed a five-year $3 billion prime vendor contract with BBDC that includes a
two year extension. BBDC has served Raley's, which operates supermarkets in
California, Nevada, and New Mexico, for nearly 10 years, and the signing of this
contract exemplifies the strong, long-term nature of its relationships with its
customers.
BBDC also announced an exclusive five-year contract with Big A Drug Stores,
which includes 15 Drug Emporium stores recently acquired by the Big A chain,
providing $80 million in incremental revenues to Bergen annually. Additionally,
BBDC renewed its contract with May's Drug Stores, which is expected to generate
$100 million in revenues to Bergen annually. BBDC will continue to be the
primary provider for pharmaceuticals to May's 39 stores in Northeast Oklahoma
and Southwest Missouri.
During the quarter, the Drug Company and Longs Drug Stores successfully
opened the first central fill facility to be jointly operated by a wholesaler
and a retailer. The success of this new operation demonstrates BBDC's commitment
to create and implement logistical solutions for its customers.
This central fill facility, Escalante Solutions, is now processing
prescriptions for selected Longs stores in Northern California and Nevada.
Escalante uses Automed(TM) robotic technology and PDX software solutions to help
alleviate capacity issues caused by a growing pharmacist shortage and strong
prescription growth. Escalante Solutions promotes accuracy in prescription
filling and productivity improvements in the pharmacy operation, allowing
community pharmacists to spend more time counseling patients.
BBDC continued to expand its Internet based applications and offerings.
iBergen(SM), the Company's Internet portal for pharmaceutical services, was
enhanced to include manufacturer and new product announcements, stock quotes,
newsfeeds, on-line product information and generic usage analysis tools. In
addition, the Company unveiled its first personalized community and content area
on the site, designed for the unique needs of its GNP customers. The area is
known as the GNP Community and serves the Company's more than 2000 independent
Good Neighbor Pharmacies. BBDC enhanced the Catalog & Order Entry application on
iBergen through a new version release, and introduced iScan(TM), a powerful
barcode system. iScan optimizes the supply chain by providing efficiencies and
accuracy in productivity through receiving and accounts payable matching. iScan
is currently in use by select customers and will provide a technology platform
for expanding barcode capabilities.
Enhancements to the Drug Company's electronic solutions for retail pharmacy
introduced at its fifth annual Healthcare Congress and Manufacturers' Exposition
held recently in Las Vegas were received enthusiastically by attendees. A
Generic Summit was added to complement last year's successful Branded Rx Summit,
providing an opportunity for one-on-one information exchange between pharmacists
and major generic manufacturers. The 27 continuing education courses held over a
two-day period had record attendance and included courses on subjects as diverse
as the use of the Internet in retail pharmacy to compounding of special
prescriptions.
Bergen Brunswig Specialty Group
BBSG delivered a 41% revenue gain for the quarter to $441.6 million and 34%
to $1.2 billion for the nine months, relative to the prior year.
Growth was again driven by the unit's oncology division, which exceeded
financial expectations and increased sales by more than 60% relative to last
year. Much of the oncology division's success can be attributed to consistent
execution in its core operations and sustained market penetration by its sales
staff. Additional factors include uninterrupted membership growth of its
physician services partner which added over 95 new accounts in the quarter.
Additionally, BBSG's vaccine business, Besse Medical, also contributed
significantly to sales growth by increasing its sales 35% for the quarter,
relative to last year. Much of the growth continues to be driven by the group's
focus on the biotech markets, particularly in the area of rheumatology. The
vaccine market continues to be challenged by manufacturing problems resulting in
limited availability of many key vaccines and other injectable products.
BBSG's manufacturing services increased year-over-year sales by 30%,
contributing to the specialty group's success in the quarter.
PharMerica Segment revenues were $336.8 million for the third quarter and
$1.0 billion for the nine months ending June 30, 2001, representing an increase
of 5% and 6% over the prior periods, respectively. PharMerica's operating
earnings increased to $16.0 million for the third quarter of fiscal 2001, which
compares to an operating loss of $1.7 million for the same quarter a year ago.
For the nine months operating earnings increased 225% to $47.3 million.
PharMerica's EBITDA increased 155% to $23.5 million for the third quarter,
compared to last year's EBITDA of $9.2 million. For the nine months ended June
30, 2001, EBITDA increased 47% compared to last year, to $69.8 million.
Operating expenses, as a percent of sales, were 30% for this year's third
quarter comparing favorably to last year's 37%. For the nine months, operating
expenses as a percent of sales improved to 31% compared to 36% last year.
Improvement in bad debt expense and lower goodwill amortization were the primary
reasons for these results; however, PharMerica's long term care business
continues to see improvements in administrative and other expenses as well.
In the third quarter, PharMerica extended its agreement with its largest
customer, Beverly Enterprises, through March of 2006. Beverly Enterprises
represents approximately 24% of the Company's LTC revenue base. PharMerica is
committed to partnering with Beverly, and its other major customers, to remove
costs from the pharmacy delivery system while improving service and patient
outcomes.
PharMerica has experienced cash collections for the third quarter and on a
year-to-date basis of 103% of revenues and 100% of revenues, respectively. Gross
and net days sales outstanding (DSO) for PharMerica were 72 and 50 days,
respectively, at June 30, 2001. The gross and net DSOs were 90 and 71 days,
respectively, at June 30, 2000.
PMSI, PharMerica's workers compensation and catastrophic care business that
provides PBM services along with home delivery of pharmaceutical and medical
products, continues to report substantial growth. Revenues for this division
grew 37% in this year's third quarter compared to last year's third quarter. On
a year-to-date basis, PMSI's revenues this year have increased 36%. PMSI
continues to add new customers, principally the larger insurance carriers,
reflecting the success of its business model in the marketplace.
Summary
"The strength of this quarter's financial results for each of our businesses
illustrates the wisdom of our business strategies," commented Neil F. Dimick,
Bergen's Chief Financial Officer. "BBDC's sales growth is back in double digits;
each of BBSG's divisions is experiencing rapid growth, led by its oncology unit;
and PharMerica's earnings have stabilized and improved.
"We're confident that we will be able to meet our expectations for revenues
and earnings growth of 10% and 30% respectively."
AmeriSource Bergen Merger
The merger of AmeriSource Health Corporation and Bergen Brunswig
Corporation, announced March 19, 2001, continues to move towards an expected
completion date in late August of this year.
"The integration process has proceeded as planned between the two companies
and the operating efficiencies have been confirmed as anticipated. We are
expecting to close the transaction after the FTC and the shareholders approve
the merger," said Dimick.
Conference Call Today
The senior management of Bergen Brunswig will hold a conference call today
at 11:00 a.m. PDT to discuss the quarter in more detail. To access the call dial
(913) 981-5532 ten minutes prior to the call. The Company will also make a
replay available ending August 1, 2001 at noon PDT. The toll-free replay number
is (888) 203-1112. The pass code for both calls is 537789.
The call will also be available via webcast at www.vcall.com.
About Bergen Brunswig
Bergen Brunswig Corporation, headquartered in Orange County, California, is
a leading supplier of pharmaceuticals and specialty healthcare products as well
as information management solutions and consulting services. With $22 billion in
annualized operating revenues, Bergen's customers include the nation's
healthcare providers (hospitals, nursing homes, physicians), drug stores,
manufacturers and patients. Though its subsidiary companies, Bergen provides
product distribution, logistics, pharmacy management programs, and Internet
fulfillment strategies designed to reduce costs and improve patient outcomes
across the entire healthcare spectrum. Bergen Brunswig press releases are
available on the Company's website at www.bergenbrunswig.com.
Safe Harbor Statement
Except for historical information, all other information set forth in this
press release, such as earnings forecasts and earnings rate projections,
consists of "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These "forward-looking statements" are
subject to risks, uncertainties and other factors which could cause actual
results to differ materially from those projected or implied. Such statements
may be identified by the use of forward-looking language such as "may," "will,"
"should," "expect," "anticipate," "estimate," "believe," "think," "continue" or
the negatives or other variations thereof or other similar terminology. Such
risks and uncertainties include the risks described in exhibit 99(a) to the
Company's Annual Report on Form 10-K for the year ended September 30, 2000 and
in other reports and exhibits filed with the Securities and Exchange Commission.
These risks and uncertainties include, but are not limited to, the costs and
difficulties related to the integration of acquired businesses, the loss or
disruption of one or more key customer or supplier relationships, changes in the
distribution outsourcing pattern for pharmaceutical products and/or services,
the ability to obtain general financing or financing rates that would be
compatible with the Company's business operations, and the costs and other
effects of governmental regulation and legal and administrative proceedings. The
Company assumes no obligation to update the information in the release.
Additional Information
In connection with their proposed merger, AmeriSource-Bergen, together with
AmeriSource and Bergen Brunswig, filed a preliminary joint proxy
statement/prospectus with the Securities and Exchange Commission. INVESTORS AND
SECURITY HOLDERS ARE ADVISED TO READ THE DEFINITIVE JOINT PROXY
STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT
INFORMATION. Investors and security holders may obtain a free copy of the
definitive joint proxy statement/prospectus (when available) and other documents
filed by AmeriSource-Bergen (as well as by AmeriSource and Bergen Brunswig) at
the Securities and Exchange Commission's web site at www.sec.gov. The definitive
joint proxy statement/prospectus and such other documents may also be obtained
for free from AmeriSource or from Bergen Brunswig by directing such request to
AmeriSource Health Corporation, General Counsel, 1300 Morris Drive, Suite 100,
Chesterbrook, Pennsylvania 19087-5594, Telephone: (610) 727-7000; or to Bergen
Brunswig Corporation, Attention: Corporate Secretary, 4000 Metropolitan Drive,
Orange, California 92868-3510, Telephone: (714) 385-4000.
Participants in Solicitation
AmeriSource and Bergen Brunswig and their respective directors, executive
officers and other members of their management and employees may be deemed to be
participants in the solicitation of proxies from their respective stockholders
in connection with the proposed merger. Information concerning AmeriSource's
participants in the solicitation is set forth in AmeriSource's Current Report on
Form 8-K filed with the Securities and Exchange Commission on March 19, 2001,
and information concerning Bergen Brunswig's participants in the solicitation is
set forth in Bergen Brunswig's Current Report on Form 8-K filed with the
Securities and Exchange Commission on March 19, 2001.
Bergen Brunswig Corporation
Index to Press Release Exhibits
For the Third Quarter and Nine Months Ended June 30, 2001
A. Summary of Consolidated Sales and Earnings for the Third Quarter and Nine
Months Ended June 30, 2001 and 2000
B. Condensed Consolidated Balance Sheets as of June 30, 2001 and September
30, 2000
C. Summary of Consolidated Sales and Earnings from Continuing Operations for
the Third Quarter Ended June 30, 2001 and 2000
D. Summary of Consolidated Sales and Earnings from Continuing Operations for
the Nine Months Ended June 30, 2001 and 2000
E. Summary of Consolidated Sales, Operating Earnings and EBITDA by Business
Segment for the Third Quarter Ended June 30, 2001 and 2000
F. Summary of Consolidated Sales, Operating Earnings and EBITDA by Business
Segment for the Nine Months Ended June 30, 2001 and 2000
G. Key Operating Ratios for the Third Quarter and Nine Months Ended June 30,
2001 and 2000
Bergen Brunswig Corporation
Summary of Consolidated Sales and Earnings
(Unaudited)
(in thousands except Third Quarter Ended Nine Months Ended
per share amounts) June 30, June 30,
2001 2000 2001 2000
Net sales and other revenues:
Excluding bulk shipments
to customers'
warehouses $ 5,476,264 $ 4,805,443 $15,240,338 $13,888,268
Bulk shipments to
customers' warehouses 1,197,183 993,010 3,187,009 3,109,046
------------------------------------------------
Total net sales and
other revenues 6,673,447 5,798,453 18,427,347 16,997,314
Cost of sales 6,342,576 5,479,143 17,462,795 16,062,786
------------------------------------------------
Gross profit 330,871 319,310 964,552 934,528
Distribution, selling,
general and
administrative expenses 232,234 245,607 700,264 717,079
------------------------------------------------
Operating earnings from
continuing operations 98,637 73,703 264,288 217,449
Net interest expense 32,540 31,974 101,674 80,627
------------------------------------------------
Earnings from continuing
operations before taxes
on income and distributions
on preferred securities of
subsidiary trust 66,097 41,729 162,614 136,822
Taxes on income from
continuing operations 27,387 18,490 67,319 61,935
------------------------------------------------
Earnings from continuing
operations before
distributions on
preferred securities of
subsidiary trust 38,710 23,239 95,295 74,887
Distributions on preferred
securities of subsidiary
trust, net of income tax
benefits (3,526) (3,526) (10,578) (10,578)
------------------------------------------------
Earnings from continuing
operations 35,184 19,713 84,717 64,309
Discontinued operations,
net of income tax benefit:
Loss from operations - (8,199) - (20,850)
Loss on dispositions - (250,962) - (250,962)
------------------------------------------------
Net earnings (loss) $ 35,184 $ (239,448) $ 84,717 $ (207,503)
- -----------------------------------------------------------------------
Earnings (loss) per share:
Basic:
Continuing operations$ .26 $ .15 $ .63 $ .48
Discontinued operations:
Loss from operations - (.06) - (.15)
Loss on dispositions - (1.87) - (1.87)
------------------------------------------------
Net earnings (loss)$ .26 $ (1.78) $ .63 $ (1.54)
------------------------------------------------
Diluted:
Continuing operations$ .26 $ .15 $ .62 $ .48
Discontinued operations:
Loss from operations - (.06) - (.15)
Loss on dispositions - (1.87) - (1.87)
------------------------------------------------
Net earnings (loss)$ .26 $ (1.78) $ .62 $ (1.54)
------------------------------------------------
Weighted average number of
shares outstanding:
Basic 135,369 134,507 135,168 134,417
Diluted 137,327 134,519 136,824 134,491
- -----------------------------------------------------------------------
A
Bergen Brunswig Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, September 30,
(in thousands) 2001 2000
- ----------------------------------------------------------------------
Assets
Cash and cash equivalents $ 60,804 $ 94,032
Accounts and notes receivable(a) 1,280,629 1,232,300
Inventories 2,619,495 2,067,335
Other current assets 34,082 123,859
- ----------------------------------------------------------------------
Total current assets 3,995,010 3,517,526
Goodwill -- net 663,268 658,640
Net property and other assets 352,095 395,258
- ----------------------------------------------------------------------
Total assets $ 5,010,373 $ 4,571,424
- ----------------------------------------------------------------------
Liabilities and Shareowners' Equity
Accounts payable $ 2,428,002 $ 2,017,130
Current portion of long-term debt 54,335 22,364
Current portion of other long-term
obligations 1,172 1,388
Other current liabilities 334,933 411,132
- ----------------------------------------------------------------------
Total current liabilities 2,818,442 2,452,014
Long-term debt, net of current portion(a) 1,058,465 1,067,282
Other long-term obligations, net of
current portion 23,957 28,879
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust
holding solely debt securities of the
Company 300,000 300,000
Shareowners' equity 809,509 723,249
- ----------------------------------------------------------------------
Total liabilities and shareowners'
equity $ 5,010,373 $ 4,571,424
- ----------------------------------------------------------------------
(a) Reduced by net proceeds of $340,000 and $168,000 at June 30, 2001 and
September 30, 2000, respectively, from the sale of receivables under the
Company's Receivables Securitization program.
B
Bergen Brunswig Corporation
Summary of Consolidated Sales and Earnings
From Continuing Operations
(Unaudited)
(in thousands except Third Quarter Ended
per share amounts) June 30, Change
2001 2000 Amount Percent
------------------------------------------
Net sales and other revenues:
Excluding bulk shipments to
customers' warehouses $5,476,264 $4,805,443 $ 670,821 14 %
Bulk shipments to customers'
warehouses 1,197,183 993,010 204,173 21 %
----------------------------------
Total net sales and other
revenues 6,673,447 5,798,453 874,994 15 %
Cost of sales 6,342,576 5,479,143 863,433 16 %
----------------------------------
Gross profit -- LIFO 330,871 319,310 11,561 4 %
Distribution, selling, general
and administrative expenses 232,234 245,607 (13,373) (5)%
----------------------------------
Operating earnings from
continuing operations 98,637 73,703 24,934 34 %
Net interest expense 32,540 31,974 566 2 %
----------------------------------
Earnings from continuing
operations before taxes
on income and distributions
on preferred securities of
subsidiary trust 66,097 41,729 24,368 58 %
Taxes on income from
continuing operations 27,387 18,490 8,897 48 %
----------------------------------
Earnings from continuing
operations before
distributions on preferred
securities of subsidiary trust 38,710 23,239 15,471 67 %
Distributions on preferred
securities of subsidiary
trust, net of income tax
benefit (3,526) (3,526) - -
----------------------------------
Earnings from continuing
operations $ 35,184 $ 19,713 $ 15,471 78 %
- -----------------------------------------------------------------------
As a Percent of Revenue Excluding
Bulk Shipments:
Gross profit 6.04% 6.64% (0.60)
Distribution, selling, general
and administrative expenses 4.24% 5.11% (0.87)
Operating earnings from continuing
operations 1.80% 1.53% 0.27
Net interest expense 0.59% 0.67% (0.08)
Earnings from continuing operations
before taxes on income and
distributions on preferred
securities of subsidiary trust 1.21% 0.87% 0.34
- -----------------------------------------------------------------------
Earnings per share from continuing operations:
Basic $ .26 $ .15 $ .11 73 %
Diluted $ .26 $ .15 $ .11 73 %
- -----------------------------------------------------------------------
Weighted average number of shares outstanding:
Basic 135,369 134,507
Diluted 137,327 134,519
- ----------------------------------------------------
C
Bergen Brunswig Corporation
Summary of Consolidated Sales and Earnings
From Continuing Operations
(Unaudited)
(in thousands except Nine Months Ended
per share amounts) June 30, Change
2001 2000 Amount Percent
-------------------------------------------
Net sales and other revenues:
Excluding bulk shipments to
customers' warehouses $15,240,338 $13,888,268 $ 1,352,070 10 %
Bulk shipments to customers'
warehouses 3,187,009 3,109,046 77,963 3 %
------------------------------------
Total net sales and other
revenues 18,427,347 16,997,314 1,430,033 8 %
Cost of sales 17,462,795 16,062,786 1,400,009 9 %
------------------------------------
Gross profit -- LIFO 964,552 934,528 30,024 3 %
Distribution, selling,
general and administrative
expenses 700,264 717,079 (16,815) (2)%
------------------------------------
Operating earnings from
continuing operations 264,288 217,449 46,839 22 %
Net interest expense 101,674 80,627 21,047 26 %
------------------------------------
Earnings from continuing
operations before taxes on
income and distributions on
preferred securities of
subsidiary trust 162,614 136,822 25,792 19 %
Taxes on income from
continuing operations 67,319 61,935 5,384 9 %
------------------------------------
Earnings from continuing
operations before distributions
on preferred securities of
subsidiary trust 95,295 74,887 20,408 27 %
Distributions on preferred
securities of subsidiary trust,
net of income tax benefit (10,578) (10,578) - -
------------------------------------
Earnings from continuing
operations $ 84,717 $ 64,309 $ 20,408 32 %
- -----------------------------------------------------------------------
As a Percent of Revenue Excluding
Bulk Shipments:
Gross profit 6.33% 6.73% (0.40)
Distribution, selling, general
and administrative expenses 4.60% 5.16% (0.56)
Operating earnings from continuing
operations 1.73% 1.57% 0.16
Net interest expense 0.67% 0.58% 0.09
Earnings from continuing
operations before taxes on income
and distributions on preferred
securities of subsidiary trust 1.07% 0.99% 0.08
- -----------------------------------------------------------------------
Earnings per share from continuing operations:
Basic $ .63 $ .48 $ .15 31 %
Diluted $ .62 $ .48 $ .14 29 %
- -----------------------------------------------------------------------
Weighted average number of shares outstanding:
Basic 135,168 134,417
Diluted 136,824 134,491
- -----------------------------------------------------------------------
D
Bergen Brunswig Corporation
Summary of Consolidated Sales, Operating Earnings and EBITDA
From Continuing Operations
By Business Segment
(Unaudited)
(dollars in thousands) Third Quarter Ended
June 30, Change
2001 2000 Amount Percent
------------------------------------------
Net Sales and Other Revenues:
Pharmaceutical Distribution $5,315,849 $4,658,310 $ 657,539 14 %
PharMerica 336,783 320,929 15,854 5 %
Other Businesses 228 262 (34) (13)%
Corporate 235 (4) 239 N/M %
Intersegment Eliminations (176,831) (174,054) (2,777) (2)%
----------------------------------
Revenue excluding bulk
shipments 5,476,264 4,805,443 670,821 14 %
Bulk shipments of
pharmaceuticals to
customers' warehouses 1,197,183 993,010 204,173 21 %
------------------------------------------
Total $6,673,447 $5,798,453 $ 874,994 15 %
------------------------------------------
Operating Earnings (Loss):
Pharmaceutical Distribution $ 102,488 $ 91,477 $ 11,011 12 %
PharMerica 16,002 (1,684) 17,686 N/M %
Other Businesses (938) (834) (104) (12)%
Corporate (18,915) (15,256) (3,659) (24)%
Total $ 98,637 $ 73,703 $ 24,934 34 %
------------------------------------------
Operating Earnings (Loss) as a Percent of
Revenue Excluding Bulk Shipments:
Pharmaceutical Distribution 1.93% 1.96% (0.03)
PharMerica 4.75% (0.52)% 5.27
Other Businesses N/M N/M N/M
----------------------------------
Total 1.80% 1.53% 0.27
----------------------------------
Depreciation and Amortization:
Pharmaceutical Distribution $ 8,924 $ 8,882 $ 42 - %
PharMerica 7,476 10,909 (3,433) (31)%
Other Businesses 80 76 4 5 %
Corporate 614 663 (49) (7)%
----------------------------------
Total $ 17,094 $ 20,530 $ (3,436) (17)%
------------------------------------------
EBITDA:
Pharmaceutical Distribution $ 111,412 $ 100,359 $ 11,053 11 %
PharMerica 23,478 9,225 14,253 155 %
Other Businesses (858) (758) (100) (13)%
Corporate (18,301) (14,593) (3,708) (25)%
----------------------------------
Total $ 115,731 $ 94,233 $ 21,498 23 %
------------------------------------------
N/M = Not Meaningful
E
Bergen Brunswig Corporation
Summary of Consolidated Sales, Operating Earnings and EBITDA
From Continuing Operations
By Business Segment
(Unaudited)
(dollars in thousands) Nine Months Ended
June 30, Change
2001 2000 Amount Percent
-------------------------------------------
Net Sales and Other Revenues:
Pharmaceutical Distribution$14,792,711 $13,450,480 $ 1,342,231 10 %
PharMerica 1,011,873 950,429 61,444 6 %
Other Businesses 594 934 (340) (36)%
Corporate 873 574 299 52 %
Intersegment Eliminations (565,713) (514,149) (51,564) (10)%
------------------------------------
Revenue excluding bulk
shipments 15,240,338 13,888,268 1,352,070 10 %
Bulk shipments of
pharmaceuticals to
customers' warehouses 3,187,009 3,109,046 77,963 3 %
------------------------------------
Total $18,427,347 $16,997,314 $ 1,430,033 8 %
-------------------------------------------
Operating Earnings (Loss):
Pharmaceutical Distribution$ 275,790 $ 253,801 $ 21,989 9 %
PharMerica 47,267 14,550 32,717 225 %
Other Businesses (2,694) (2,457) (237) (10)%
Corporate (56,075) (48,445) (7,630) (16)%
------------------------------------
Total $ 264,288 $ 217,449 $ 46,839 22 %
-------------------------------------------
Operating Earnings (Loss) as a Percent of
Revenue Excluding Bulk Shipments:
Pharmaceutical Distribution 1.86% 1.89% (0.03)
PharMerica 4.67% 1.53% 3.14
Other Businesses N/M N/M N/M
------------------------------------
Total 1.73% 1.57% 0.16
------------------------------------
Depreciation and Amortization:
Pharmaceutical Distribution$ 26,635 $ 26,656 $ (21) - %
PharMerica 22,506 33,054 (10,548) (32)%
Other Businesses 243 227 16 7 %
Corporate 1,889 1,980 (91) (5)%
------------------------------------
Total $ 51,273 $ 61,917 $ (10,644) (17)%
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EBITDA:
Pharmaceutical Distribution$ 302,425 $ 280,457 $ 21,968 8 %
PharMerica 69,773 47,604 22,169 47 %
Other Businesses (2,451) (2,230) (221) (10)%
Corporate (54,186) (46,465) (7,721) (17)%
------------------------------------
Total $ 315,561 $ 279,366 $ 36,195 13 %
-------------------------------------------
N/M = Not Meaningful
F
Bergen Brunswig Corporation
Key Operating Ratios
From Continuing Operations
(Unaudited)
(in thousands) Third Quarter Ended Nine Months Ended
June 30, June 30,
2001 2000 2001 2000
-----------------------------------------------
Total Continuing Operations:
Revenues Excluding
Bulk Shipments $ 5,476,264 $ 4,805,443 $15,240,338 $13,888,268
Gross Profit --
FIFO Basis 335,871 320,560 972,052 938,278
% of Revenues 6.13% 6.67% 6.38% 6.76%
Gross Profit --
LIFO Basis 330,871 319,310 964,552 934,528
% of Revenues 6.04% 6.64% 6.33% 6.73%
DSG&A Expenses 232,234 245,607 700,264 717,079
% of Revenues 4.24% 5.11% 4.60% 5.16%
Operating Earnings --
FIFO Basis 103,637 74,953 271,788 221,199
% of Revenues 1.89% 1.56% 1.78% 1.60%
Operating Earnings --
LIFO Basis 98,637 73,703 264,288 217,449
% of Revenues 1.80% 1.53% 1.73% 1.57%
EBITDA -- FIFO Basis 120,731 95,483 323,061 283,116
% of Revenues 2.20% 1.99% 2.12% 2.04%
EBITDA -- LIFO Basis 115,731 94,233 315,561 279,366
% of Revenues 2.11% 1.96% 2.07% 2.01%
- -----------------------------------------------------------------------
Pharmaceutical Distribution:
Revenues Excluding
Bulk Shipments $ 5,315,849 $ 4,658,310 $14,792,711 $13,450,480
Gross Profit --
FIFO Basis 218,217 203,389 611,500 583,816
% of Revenues 4.10% 4.37% 4.13% 4.34%
Gross Profit --
LIFO Basis 213,217 202,139 604,000 580,066
% of Revenues 4.01% 4.34% 4.08% 4.31%
DSG&A Expenses 110,729 110,662 328,210 326,265
% of Revenues 2.08% 2.38% 2.22% 2.42%
Operating Earnings --
FIFO Basis 107,488 92,727 283,290 257,551
% of Revenues 2.02% 1.99% 1.91% 1.92%
Operating Earnings --
LIFO Basis 102,488 91,477 275,790 253,801
% of Revenues 1.93% 1.96% 1.86% 1.89%
EBITDA -- FIFO Basis 116,412 101,609 309,925 284,207
% of Revenues 2.19% 2.18% 2.10% 2.11%
EBITDA -- LIFO Basis 111,412 100,359 302,425 280,457
% of Revenues 2.10% 2.15% 2.04% 2.09%
- -----------------------------------------------------------------------
PharMerica:
Revenues Excluding
Bulk Shipments $ 336,783 $ 320,929 $ 1,011,873 $ 950,429
Gross Profit 117,191 116,913 359,085 352,954
% of Revenues 34.80% 36.43% 35.49% 37.14%
DSG&A Expenses 101,189 118,597 311,818 338,404
% of Revenues 30.05% 36.95% 30.82% 35.61%
Operating Earnings (Loss) 16,002 (1,684) 47,267 14,550
% of Revenues 4.75% (0.52)% 4.67% 1.53%
EBITDA 23,478 9,225 69,773 47,604
% of Revenues 6.97% 2.87% 6.90% 5.01%
Change
vs. 2000
Quarter Nine Months
Total Continuing Operations:
Revenues Excluding
Bulk Shipments 14% 10%
Gross Profit --
FIFO Basis 5% 4%
% of Revenues (0.54) (0.38)
Gross Profit --
LIFO Basis 4% 3%
% of Revenues (0.60) (0.40)
DSG&A Expenses (5)% (2)%
% of Revenues (0.87) (0.56)
Operating Earnings --
FIFO Basis 38% 23%
% of Revenues 0.33 0.18
Operating Earnings --
LIFO Basis 34% 22%
% of Revenues 0.27 0.16
EBITDA -- FIFO Basis 26% 14%
% of Revenues 0.21 0.08
EBITDA -- LIFO Basis 23% 13%
% of Revenues 0.15 0.06
- -----------------------------------------------------------------------
Pharmaceutical Distribution:
Revenues Excluding
Bulk Shipments 14% 10%
Gross Profit --
FIFO Basis 7% 5%
% of Revenues (0.27) (0.21)
Gross Profit --
LIFO Basis 5% 4%
% of Revenues (0.33) (0.23)
DSG&A Expenses 0% 1%
% of Revenues (0.30) (0.20)
Operating Earnings --
FIFO Basis 16% 10%
% of Revenues 0.03 (0.01)
Operating Earnings --
LIFO Basis 12% 9%
% of Revenues (0.03) (0.03)
EBITDA -- FIFO Basis 15% 9%
% of Revenues 0.01 (0.01)
EBITDA -- LIFO Basis 11% 8%
% of Revenues (0.05) (0.05)
- -----------------------------------------------------------------------
PharMerica:
Revenues Excluding
Bulk Shipments 5% 6%
Gross Profit 0% 2%
% of Revenues (1.63) (1.65)
DSG&A Expenses (15)% (8)%
% of Revenues (6.90) (4.79)
Operating Earnings (Loss) N/M 225%
% of Revenues 5.27 3.14
EBITDA 155% 47%
% of Revenues 4.10 1.89
G
--30--
CONTACT: Bergen Brunswig Corp., Orange
Neil Dimick, 714/385-4391
or
Donna Dolan, 714/385-4226