Exhibit 99.1
News Release
[LETTERHEAD OF AMERISOURCEBERGEN CORPORATION]
Contact: Michael N. Kilpatric
610-727-7118
mkilpatric@amerisource.com
AMERISOURCEBERGEN REPORTS RECORD EARNINGS PER SHARE BEFORE
SPECIAL CHARGES OF $.88 FOR THE SEPTEMBER QUARTER
AND $3.29, A 42 PERCENT INCREASE, FOR FISCAL YEAR 2002
Company Moved Quickly To Maximize Benefits Of Year-Ago Merger
VALLEY FORGE, PA, November 5, 2002 -- AmerisourceBergen Corporation (NYSE:ABC)
today reported record results for its fiscal fourth quarter and fiscal year
ended September 30, 2002.
Fiscal Fourth Quarter Highlights
. Record diluted earnings per share of $.88 before special charges.
. Record operating revenue of $10.4 billion, up 14 percent, pro forma.
. Operating margin of 1.91 percent, up 12 basis points, pro forma.
. Return On Committed Capital (ROCC) of 25.5 percent.
Fiscal 2002 Highlights
. Record diluted earnings per share of $3.29 before special charges.
. Record operating revenue of $40.2 billion, up 16 percent, pro forma.
. Cost saving synergies captured ahead of schedule.
. Consolidated seven distribution centers and two specialty operations.
. Cash flow from operations of more than $500 million.
"This was an exceptional year at AmerisourceBergen," said R. David Yost,
AmerisourceBergen's Chief Executive Officer. "During fiscal 2002, we
successfully merged two great companies and created the industry leader in the
pharmaceutical supply channel; a Company with the scale and dedication to
maximize shareholder value, deliver the highest customer service, and provide
new and innovative solutions to suppliers and customers in the channel.
"Our success is a reflection of the dedication and hard work of our
associates. They made it happen on the firing line. The financial result was a
more than 40 percent increase in earnings per share and $40 billion in revenue
for the year. Combined with our 25.5 percent ROCC, we exceeded our key financial
goals.
"From the beginning, it has not been about being the biggest, but the best.
In one year, we have laid a solid foundation, and we have only begun to tap the
potential of AmerisourceBergen. With our number one position in the market, a
growing array of services and products, and a commitment to maximize our synergy
opportunities, we remain dedicated to increasing value for our shareholders,
customers, suppliers and associates." Discussion of Results
AmeriSource Health Corporation and Bergen Brunswig Corporation merged
on August 29, 2001 to form AmerisourceBergen Corporation. Under purchase
accounting rules, AmerisourceBergen's fiscal 2002 fourth quarter and annual
results are compared with the fiscal 2001 historical fourth quarter and yearly
results which encompass the full year of former AmeriSource and approximately
one month of former Bergen. Pro forma data included in this news release refers
to the combined predecessor companies' operating results in the previous year's
fourth quarter and fiscal year, adjusted to eliminate amortization of goodwill
and merger-related special charges. Both former companies had the same fiscal
year ending September 30.
Diluted earnings per share before special charges for the fourth
quarter of fiscal 2002 were $0.88, a 38 percent increase over the prior year's
fourth quarter. Income before special charges for the fourth quarter of fiscal
2002 increased to $97.3 million from $47.2 million in the same period last year.
Special charges, consisting of merger integration costs, were $2.3 million, net
of tax, in the quarter. Net income and diluted earnings per share for the
quarter were $95.0 million and $0.86, respectively.
AmerisourceBergen's operating revenue, which excludes bulk deliveries
to customer warehouses, was $10.4 billion in the fourth quarter of fiscal 2002
compared to $5.5 billion for the same period last year. Fiscal 2002 fourth
quarter operating revenue increased 14 percent over fiscal 2001 fourth quarter
pro forma operating revenue of $9.1 billion.
For the 2002 fiscal year, diluted earnings per share before special
charges were $3.29, a 42 percent increase over the prior year. Income before
special charges for the year increased to $359.6 million from $137.0 million
last year. Special charges, consisting of merger integration costs, were $14.6
million, net of tax, in fiscal year 2002. Operating revenue for the fiscal year
2
ended September 30, 2002 was $40.2 billion compared to $15.8 billion in the
prior year, and represents a 16 percent increase over pro forma operating
revenue of $34.6 billion in fiscal year 2001. Net income and diluted earnings
per share for the 2002 fiscal year were $344.9 million and $3.16, respectively.
The following discussion of results, including segment data, does not
include the impact of special charges.
"In the fiscal 2002 fourth quarter, our outstanding performance was
driven by our continual focus on customer service, synergy cost savings ahead of
internal expectations, and strong working capital management," said Kurt J.
Hilzinger, AmerisourceBergen President and Chief Operating Officer. "The result
was a double digit expansion in operating margin, record earnings per share and
a ROCC of 25.5 percent.
"In pharmaceutical distribution we consolidated four distribution
centers in the September quarter bringing the total number of consolidations in
the fiscal year to seven, in line with the schedule we set at the beginning of
the fiscal year. Our new generic pharmaceutical program, PROGenerics(TM), also
contributed to the quarter's strong performance.
"With the integration of the key functional areas now nearly complete,
in fiscal 2003 we will continue to work toward building our new distribution
network and introducing new offerings to our customers in the pharmaceutical
supply channel. We expect to consolidate six larger distribution centers in the
coming fiscal year as well as begin building a number of new facilities and
expanding others. Retail and institutional customers will see new programs to
solve challenges such as staffing shortages, cost constraints and dispensing
accuracy.
"In our PharMerica segment, strong revenue growth in the fiscal 2002
fourth quarter of 14 percent, pro forma, reflects continued solid performance by
PharMerica's workers' compensation business, as well as improved growth in the
long-term care business," said Hilzinger. "The favorable impact of a single
information technology platform, continued receivable and operating discipline,
and the positive impact of the new generic pharmaceutical program, drove
PharMerica's performance in the quarter."
Segment Review
AmerisourceBergen operates in two segments: Pharmaceutical
Distribution (which includes the AmerisourceBergen Drug Company and
AmerisourceBergen Specialty Group operations) and PharMerica (which includes the
institutional pharmacy and workers'
3
compensation fulfillment businesses). Intersegment sales of $201.2 million in
the fourth quarter of fiscal 2002 from AmerisourceBergen Drug Company to
PharMerica, which are included in the Pharmaceutical Distribution segment
operating revenue, are eliminated for consolidated reporting purposes.
Pharmaceutical Distribution Segment
Operating revenue in the fourth quarter of fiscal 2002 increased to
$10.2 billion compared with $5.5 billion in the previous year's fourth quarter.
Operating revenue increased 14 percent over fiscal 2001 fourth quarter pro forma
revenue of $8.9 billion.
Pharmaceutical Distribution customer mix in the fourth quarter of
fiscal 2002 was 54 percent institutional and 46 percent retail, and for fiscal
year 2002 the mix was 53 percent institutional and 47 percent retail. Both
customer groups had double-digit growth in the quarter and year.
Operating income was $174.6 million in the fourth quarter of fiscal
2002, up from $94.8 million for the same quarter last year, and improved 22
percent compared to pro forma operating income of $143.2 million in the same
period last year. For the fiscal 2002 fourth quarter, operating income as a
percentage of operating revenue was 1.72 percent, an 11 basis point improvement
from the prior year's fourth quarter on a pro forma basis. Lower gross margins,
which reflect the Company's customer mix and the competitive environment, were
more than offset by lower total operating expenses as a percentage of operating
revenue.
Total operating expenses as a percentage of operating revenue in the
fiscal 2002 fourth quarter were 2.20 percent, a 31 basis point improvement over
the same quarter last year on a pro forma basis driven by synergy cost savings,
customer mix and operating leverage.
AmerisourceBergen Specialty Group, with annualized revenue of more
than $2.5 billion, continued its strong quarterly performance, building
significant positions in oncology, blood plasma, injectables and vaccine
distribution as well as growing its manufacturing services business.
PharMerica
PharMerica's operating revenue for the fourth quarter of fiscal 2002
increased to $386.1 million from $116.7 million in the previous year's fourth
quarter. Operating revenue in the quarter increased 14 percent over pro forma
operating revenue of $338.1 million in the same period last year.
4
Operating income for the fourth quarter of fiscal 2002 was $22.9
million up from $6.5 million for the same quarter last year, and improved 22
percent over the prior year's pro forma fourth quarter operating income of $18.7
million. Operating income as a percentage of operating revenue increased 40
basis points in the quarter ended September 30, 2002 to 5.92 percent from 5.52
percent on a pro forma basis in the prior year.
Looking Ahead
"For fiscal 2003, we expect another year of strong performance with
earnings per share growth of 20 percent excluding special charges, ROCC well
ahead of our 20 percent long-term target, and revenue growth in line with
projected market growth of 11 percent to 14 percent," said Yost. "We remain
confident in our ability to achieve annual cost saving synergies of $150 million
by the end of fiscal year 2004, followed by additional synergy capture through
completion of our distribution network."
Conference Call
The Company will host a conference call to discuss the results at
11:00 a.m. Eastern Standard Time on November 5, 2002. Participating in the
conference call will be: R. David Yost, Chief Executive Officer; Kurt J.
Hilzinger, President & Chief Operating Officer; and Michael D. DiCandilo, Senior
Vice President & Chief Financial Officer.
To access the live conference call via telephone:
Dial in: 877-777-1972 from inside the U.S. no access code required
or 612-332-7515 from outside the U.S. no access code required.
To access the live webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.net.
A replay of the telephone call and webcast will be available from 4:15 p.m.
November 5, 2002 until 11:59 p.m. November 12, 2002.
To access the replay via telephone:
Dial in: 800-475-6701 from within the U.S., access code: 654935
320-365-3844 from outside the U.S., access code: 654935
To access the archived webcast:
5
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.net.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical services
company in the United States dedicated solely to the pharmaceutical supply
chain. It is the leading distributor of pharmaceutical products and services to
the hospital systems and acute care market, alternate care facilities,
independent community pharmacies, and regional chain pharmacies. The Company is
also a leader in the institutional pharmacy marketplace. With more than $40
billion in annualized operating revenue, AmerisourceBergen is headquartered in
Valley Forge, PA, and employs more than 13,000 people serving over 25,000
customers.
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. Forward-looking statements may
include statements addressing future financial and operating results of
AmerisourceBergen and the benefits and aspects of the 2001 merger between
AmeriSource Health Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual results to differ
materially from those described in the forward-looking statements: the risk that
the businesses of AmeriSource and Bergen Brunswig will not be integrated
successfully; failure to obtain and retain expected synergies; and other
economic, business, competitive and/or regulatory factors affecting the business
of AmerisourceBergen generally.
More detailed information about these factors is set forth in
AmerisourceBergen's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for fiscal 2001, its Quarterly Reports
on Form 10-Q for fiscal 2002, and the joint proxy statement-prospectus for the
merger filed on August 1, 2001.
AmerisourceBergen is under no obligation to (and expressly disclaims any such
obligation to) update or alter any forward-looking statements whether as a
result of new information, future events or otherwise.
###
6
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Three Three
Months Ended % of Months Ended % of
September 30, Operating September 30, Operating %
2002 Revenue 2001 Revenue Change
------------- ------------- ------------- ------------- -----------
Revenue:
Operating revenue $10,357,502 100.00% $5,516,347 100.00% 88%
Bulk deliveries to customer warehouses 1,243,418 367,884
------------- -------------
Total revenue 11,600,920 5,884,231
Cost of goods sold 11,072,301 5,617,654 97%
------------- -------------
Gross profit 528,619 5.10% 266,577 4.83% 98%
Operating expenses:
Distribution, selling and administrative 314,184 3.03% 156,103 2.83% 101%
Depreciation and amortization 16,962 0.16% 9,209 0.17% 84%
Facility consolidations and employee severance - 0.00% 10,912 0.20% -100%
Merger costs 3,859 0.04% 12,206 0.22% -68%
Environmental remediation - 0.00% (2,716) -0.05% -100%
------------- -------------
Operating income 193,614 1.87% 80,863 1.47% 139%
Equity in losses of affiliates and other 4,460 0.04% 6,285 0.11% -29%
Interest expense 31,663 0.31% 17,823 0.32% 78%
------------- -------------
Income before taxes 157,491 1.52% 56,755 1.03% 177%
Income taxes 62,531 0.60% 22,172 0.40% 182%
------------- -------------
Net income $ 94,960 0.92% $ 34,583 0.63% 175%
============= =============
Earnings per share:
Basic $ 0.89 $ 0.49
Diluted $ 0.86 $ 0.48
Weighted average common shares outstanding:
Basic 106,225 70,628
Diluted 113,134 77,613
Pro forma results excluding merger costs in the three months ended September 30, 2002 and merger costs and
costs related to facility consolidations and employee severance and environmental remediation included in the
three months ended September 30, 2001:
Operating income $ 197,473 $ 101,265
Net income $ 97,287 $ 47,230
Earnings per share:
Basic $ 0.92 $ 0.67
Diluted $ 0.88 $ 0.64
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Fiscal Fiscal
Year Ended % of Year Ended % of
September 30, Operating September 30, Operating %
2002 Revenue 2001 Revenue Change
------------- ------------- ------------- ------------- -----------
Revenue:
Operating revenue $40,240,714 100.00% $15,822,635 100.00% 154%
Bulk deliveries to customer warehouses 4,994,080 368,718
------------- -------------
Total revenue 45,234,794 16,191,353
Cost of goods sold 43,210,320 15,491,235 179%
------------- -------------
Gross profit 2,024,474 5.03% 700,118 4.42% 189%
Operating expenses:
Distribution, selling and administrative 1,220,651 3.03% 397,848 2.51% 207%
Depreciation and amortization 61,151 0.15% 21,589 0.14% 183%
Facility consolidations and employee severance - 0.00% 10,912 0.07% -100%
Merger costs 24,244 0.06% 13,109 0.08% 85%
Environmental remediation - 0.00% (2,716) -0.02% -100%
------------- -------------
Operating income 718,428 1.79% 259,376 1.64% 177%
Equity in losses of affiliates and other 5,647 0.01% 10,866 0.07% -48%
Interest expense 140,734 0.35% 47,853 0.30% 194%
------------- -------------
Income before taxes 572,047 1.42% 200,657 1.27% 185%
Income taxes 227,106 0.56% 76,861 0.49% 195%
------------- -------------
Net income $ 344,941 0.86% $ 123,796 0.78% 179%
============= =============
Earnings per share:
Basic $ 3.29 $ 2.16
Diluted $ 3.16 $ 2.10
Weighted average common shares outstanding:
Basic 104,935 57,185
Diluted 112,228 62,807
Pro forma results excluding merger costs in the year ended September 30, 2002 and merger costs and
costs related to facility consolidations and employee severance and environmental remediation included in the
year ended September 30, 2001:
Operating income $ 742,672 $ 280,681
Net income $ 359,560 $ 137,003
Earnings per share:
Basic $ 3.43 $ 2.40
Diluted $ 3.29 $ 2.31
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
September 30, September 30, $
2002 2001 Change
------------- ------------- ----------
Current assets:
Cash and cash equivalents $ 663,340 $ 297,626 $ 365,714
Accounts receivable, net 2,222,156 2,142,663 79,493
Merchandise inventories 5,437,878 5,056,257 381,621
Prepaid expenses and other 26,263 15,956 10,307
------------- ------------- ----------
Total current assets 8,349,637 7,512,502 837,135
Long-term assets 2,863,375 2,778,743 84,632
------------- ------------- ----------
Total assets $11,213,012 $10,291,245 $ 921,767
============= ============= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,367,837 $ 4,991,884 $ 375,953
Current portion of long-term debt 60,819 2,468 58,351
Other current liabilities 670,861 538,101 132,760
------------- ------------- ----------
Total current liabilities 6,099,517 5,532,453 567,064
Long-term debt, less current portion 1,756,494 1,871,911 (115,417)
Other liabilities 40,663 48,317 (7,654)
Stockholders' equity 3,316,338 2,838,564 477,774
------------- ------------- ----------
Total liabilities and stockholders' equity $11,213,012 $10,291,245 $ 921,767
============= ============= ==========
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
-------------------------------------------------------------------------------------
Actual Actual Pro forma Actual % Pro forma %
Operating Revenue 2002 2001 2001 (1) Change Change
- -------------------------- -------------------------------------------------------------------------------------
Pharmaceutical Distribution $10,172,674 $5,463,754 $8,885,145 86% 14%
PharMerica 386,061 116,719 338,135 231% 14%
Intersegment Eliminations (201,233) (64,126) (170,596) 214% 18%
------------------ ----------- -------------
Operating revenue $10,357,502 $5,516,347 $9,052,684 88% 14%
================== =========== =============
Three Months Ended September 30,
-------------------------------------------------------------------------------------
Actual Actual Pro forma Actual % Pro forma %
Operating Income (2) 2002 2001 2001 (1) Change Change
- -------------------------- -------------------------------------------------------------------------------------
Pharmaceutical Distribution $ 174,622 $ 94,793 $ 143,197 84% 22%
PharMerica 22,851 6,472 18,679 253% 22%
------------------ ----------- -------------
Operating income $ 197,473 $ 101,265 $ 161,876 95% 22%
================== =========== =============
Percentages of operating revenue (2):
Pharmaceutical Distribution
Gross profit 3.92% 4.15% 4.12%
Operating expenses 2.20% 2.42% 2.51%
Operating income 1.72% 1.73% 1.61%
PharMerica
Gross profit 33.71% 34.06% 34.51%
Operating expenses 27.79% 28.51% 28.99%
Operating income 5.92% 5.55% 5.52%
AmerisourceBergen Corporation
Gross profit 5.10% 4.83% 5.33%
Operating expenses 3.20% 3.00% 3.54%
Operating income 1.91% 1.84% 1.79%
(1) Represents the combination of AmerisourceBergen Corporation's financial
information for the quarter ended September 30, 2001, and Bergen
Brunswig Corporation's historical financial information for the period
from July 1, 2001 to August 29, 2001. (See discussion under Pro Forma
Information Appendix - A(1)).
(2) Excludes merger costs in the three months ended September 30, 2002 and
merger costs and costs related to facility consolidations and employee
severance and environmental remediation included in the three months
ended September 30, 2001.
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Fiscal Year Ended September 30,
-------------------------------------------------------------------------------------
Actual Actual Pro forma Actual % Pro forma %
Operating Revenue 2002 2001 2001 (1) Change Change
- -------------------------- -------------------------------------------------------------------------------------
Pharmaceutical Distribution $39,539,858 $15,770,042 $33,985,611 151% 16%
PharMerica 1,475,028 116,719 1,350,008 1164% 9%
Intersegment Eliminations (774,172) (64,126) (736,309) 1107% 5%
------------------ ----------- -------------
Operating revenue $40,240,714 $15,822,635 $34,599,310 154% 16%
================== =========== =============
Fiscal Year Ended September 30,
-------------------------------------------------------------------------------------
Actual Actual Pro forma Actual % Pro forma %
Operating Income (2) 2002 2001 2001 (1) Change Change
- -------------------------- -------------------------------------------------------------------------------------
Pharmaceutical Distribution $ 659,208 $ 274,209 $ 551,827 140% 19%
PharMerica 83,464 6,472 68,856 1190% 21%
------------------ ----------- -------------
Operating income $ 742,672 $ 280,681 $ 620,683 165% 20%
================== =========== =============
Percentages of operating revenue (2):
Pharmaceutical Distribution
Gross profit 3.87% 4.19% 4.13%
Operating expenses 2.20% 2.45% 2.51%
Operating income 1.67% 1.74% 1.62%
PharMerica
Gross profit 33.49% 34.06% 35.24%
Operating expenses 27.83% 28.51% 30.14%
Operating income 5.66% 5.55% 5.10%
AmerisourceBergen Corporation
Gross profit 5.03% 4.42% 5.44%
Operating expenses 3.19% 2.65% 3.64%
Operating income 1.85% 1.77% 1.79%
(1) Represents the combination of AmerisourceBergen Corporation's previously
reported financial information for the fiscal year ended September 30,
2001, and Bergen Brunswig Corporation's historical financial information
for the period from October 1, 2000 to August 29, 2001. (See discussion
under Pro Forma Information Appendix - A(1)).
(2) Excludes merger costs in the year ended September 30, 2002 and merger
costs and costs related to facility consolidations and employee
severance and environmental remediation included in the year ended
September 30, 2001.
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 period plus the dilutive effect of
stock options. Additionally, the diluted earnings per share calculation
considers the convertible subordinated notes as if converted and, therefore, the
effect of interest expense related to those notes is added back to net income in
determining income available to common stockholders.
Three months ended Fiscal year ended
September 30, September 30,
2002 2001 2002 2001
-------- -------- -------- ---------
Net income $ 94,960 $ 34,583 $344,941 $ 123,796
Interest expense - convertible subordinated notes, net of income taxes 2,481 2,513 9,923 8,112
-------- -------- -------- ---------
Income available to common stockholders $ 97,441 $ 37,096 $354,864 $ 131,908
======== ======== ======== =========
Weighted average common shares outstanding 106,225 70,628 104,935 57,185
Effect of dilutive securities:
Options to purchase common stock 1,245 1,321 1,629 1,076
Convertible subordinated notes 5,664 5,664 5,664 4,546
-------- -------- -------- ---------
Weighted average common shares outstanding - diluted 113,134 77,613 112,228 62,807
======== ======== ======== =========
Earnings per share:
Basic $ 0.89 $ 0.49 $ 3.29 $ 2.16
Diluted $ 0.86 $ 0.48 $ 3.16 $ 2.10
Appendix - A(1)
Pro Forma Information
The historical consolidated financial summary and summary segment information
for the three-months and year ended September 30, 2001, included in this press
release, reflect only the results of AmeriSource Health Corporation, as
predecessor to the Company, through August 29, 2001 and the results of
AmerisourceBergen Corporation for the period from August 29, 2001 through
September 30, 2001 (collectively, the "Historical Results"). In order to enhance
comparability, the following schedules as well as the summary segment
information include fiscal 2001 financial data on a pro forma basis. Within
these schedules, pro forma refers to the Historical Results combined with the
results of Bergen Brunswig Corporation through August 29, 2001. The pro forma
information for fiscal 2001 has not been prepared in accordance with generally
accepted accounting principles and does not represent consolidated results as if
the merger had occurred at the beginning of the periods presented. To enhance
comparability of financial information between fiscal years, the pro forma
information for fiscal 2001 excludes the amortization of goodwill and special
items related to the merger and environmental remediation and reflects the full
allocation of Bergen Brunswig Corporation's former Corporate segment to the
Pharmaceutical Distribution and PharMerica segments. The pro forma information
is not necessarily indicative of the actual results which might have occurred
had the operations and management of AmeriSource Health Corporation and Bergen
Brunswig Corporation been combined at the beginning of fiscal 2001.
Appendix - A(2)
AmerisourceBergen
Pro forma combined condensed financial information
(dollars in thousands)
(unaudited)
-------------------------------------------------------------------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
----------------------------------------------------------------------------
First Second Third Fourth Fiscal Year (3)
Quarter (1) Quarter (1) Quarter (1) Quarter (2)
-------------------------------------------------------------------------------------------------------------------------------
Operating revenue $8,083,535 $8,467,976 $8,995,115 $9,052,684 $34,599,310
============================================================================
Gross profit $ 442,249 $ 480,035 $ 475,810 $ 482,647 $ 1,880,741
Distribution, selling and administrative (4) 293,608 303,730 295,462 304,703 1,197,503
Depreciation 13,891 14,337 14,296 14,641 57,165
Amortization (5) 1,553 1,140 1,270 1,427 5,390
----------------------------------------------------------------------------
Operating income $ 133,197 $ 160,828 $ 164,782 $ 161,876 $ 620,683
============================================================================
Gross profit to operating revenue 5.47% 5.67% 5.29% 5.33% 5.44%
Operating expenses to operating revenue 3.82% 3.77% 3.46% 3.54% 3.64%
Operating income to operating revenue 1.65% 1.90% 1.83% 1.79% 1.79%
(1) Represents the combination of AmeriSource Health Corporation's and
Bergen Brunswig Corporation's previously reported financial
information. (See discussion under Pro Forma Information Appendix -
A(1)).
(2) Represents the combination of AmerisourceBergen Corporation's financial
information for the quarter ended September 30, 2001, and Bergen
Brunswig Corporation's historical financial information for the period
from July 1, 2001 to August 29, 2001. (See discussion under Pro Forma
Information Appendix - A(1)).
(3) Represents the combination of AmerisourceBergen Corporation's
previously reported financial information for the fiscal year ended
September 30, 2001, and Bergen Brunswig Corporation's historical
financial information for the period from October 1, 2000 to August 29,
2001. (See discussion under Pro Forma Information Appendix - A(1)).
(4) Excludes special items in the third and fourth quarters related to the
merger and environmental remediation.
(5) Excludes amortization of goodwill.
Appendix - A(3)
AmerisourceBergen - Pharmaceutical Distribution
Pro forma combined condensed financial information
(dollars in thousands)
(unaudited)
-------------------------------------------------------------------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
-------------------------------------------------------------------------
First Second Third Fourth Fiscal Year (3)
Quarter (1) Quarter (1) Quarter (1) Quarter (2)
-------------------------------------------------------------------------------------------------------------------------------
Operating revenue $7,929,966 $8,335,337 $8,835,163 $8,885,145 $33,985,611
=========================================================================
Gross profit $ 322,096 $ 358,294 $ 358,619 $ 365,948 $ 1,404,957
Distribution, selling and administrative (4), (5) 195,464 202,915 200,042 211,501 809,922
Depreciation 9,426 9,962 9,916 10,278 39,582
Amortization (6) 1,116 703 835 972 3,626
-------------------------------------------------------------------------
Operating income $ 116,090 $ 144,714 $ 147,826 $ 143,197 $ 551,827
=========================================================================
Gross profit to operating revenue 4.06% 4.30% 4.06% 4.12% 4.13%
Operating expenses to operating revenue 2.60% 2.56% 2.39% 2.51% 2.51%
Operating income to operating revenue 1.46% 1.74% 1.67% 1.61% 1.62%
(1) Represents the combination of AmeriSource Health Corporation's and
Bergen Brunswig Corporation's previously reported financial
information. (See discussion under Pro Forma Information Appendix -
A(1)).
(2) Represents the combination of AmerisourceBergen Corporation's financial
information for the quarter ended September 30, 2001, and Bergen
Brunswig Corporation's historical financial information for the period
from July 1, 2001 to August 29, 2001. (See discussion under Pro Forma
Information Appendix - A(1)).
(3) Represents the combination of AmerisourceBergen Corporation's
previously reported financial information for the fiscal year ended
September 30, 2001, and Bergen Brunswig Corporation's historical
financial information for the period from October 1, 2000 to August 29,
2001. (See discussion under Pro Forma Information Appendix - A(1)).
(4) Excludes special items in the third and fourth quarters related to the
merger and environmental remediation.
(5) Expenses previously reported in the Corporate segment for Bergen
Brunswig Corporation have been fully allocated to the Pharmaceutical
Distribution and PharMerica segments for comparative purposes within
this schedule.
(6) Excludes amortization of goodwill.
Appendix - A(4)
AmerisourceBergen - PharMerica
Pro forma combined condensed financial information
(dollars in thousands)
(unaudited)
-------------------------------------------------------------------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
----------------------------------------------------------------------------
First Second Third Fourth Fiscal Year (3)
Quarter (1) Quarter (1) Quarter (1) Quarter (2)
-------------------------------------------------------------------------------------------------------------------------------
Operating revenue $ 335,166 $ 339,924 $ 336,783 $ 338,135 $ 1,350,008
=========================================================================
Gross profit $ 120,153 $ 121,741 $ 117,191 $ 116,699 $ 475,784
Distribution, selling and administrative (4), (5) 98,144 100,815 95,420 93,202 387,581
Depreciation 4,465 4,375 4,380 4,363 17,583
Amortization (6) 437 437 435 455 1,764
-------------------------------------------------------------------------
Operating income $ 17,107 $ 16,114 $ 16,956 $ 18,679 $ 68,856
=========================================================================
Gross profit to operating revenue 35.85% 35.81% 34.80% 34.51% 35.24%
Operating expenses to operating revenue 30.74% 31.07% 29.76% 28.99% 30.14%
Operating income to operating revenue 5.10% 4.74% 5.03% 5.52% 5.10%
(1) Represents the combination of AmeriSource Health Corporation's and
Bergen Brunswig Corporation's previously reported financial
information. (See discussion under Pro Forma Information Appendix -
A(1)).
(2) Represents the combination of AmerisourceBergen Corporation's financial
information for the quarter ended September 30, 2001, and Bergen
Brunswig Corporation's historical financial information for the period
from July 1, 2001 to August 29, 2001. (See discussion under Pro Forma
Information Appendix - A(1)).
(3) Represents the combination of AmerisourceBergen Corporation's
previously reported financial information for the fiscal year ended
September 30, 2001, and Bergen Brunswig Corporation's historical
financial information for the period from October 1, 2000 to August 29,
2001. (See discussion under Pro Forma Information Appendix - A(1)).
(4) Excludes special items in the third and fourth quarters related to the
merger and environmental remediation.
(5) Expenses previously reported in the Corporate segment for Bergen
Brunswig Corporation have been fully allocated to the Pharmaceutical
Distribution and PharMerica segments for comparative purposes within
this schedule.
(6) Excludes amortization of goodwill.
Appendix - A(5)
AmerisourceBergen - Intersegment Eliminations
Pro forma combined condensed financial information
(dollars in thousands)
(unaudited)
-------------------------------------------------------------------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
----------------------------------------------------------------------------
First Second Third Fourth Fiscal Year (3)
Quarter (1) Quarter (1) Quarter (1) Quarter (2)
-------------------------------------------------------------------------------------------------------------------------------
Operating revenue ($181,597) ($207,285) ($176,831) ($170,596) ($736,309)
=========================================================================
Gross profit $0 $0 $0 $0 $0
Distribution, selling and administrative - - - - -
Depreciation - - - - -
Amortization - - - - -
-------------------------------------------------------------------------
Operating income $0 $0 $0 $0 $0
=========================================================================
(1) Represents the combination of AmeriSource Health Corporation's and
Bergen Brunswig Corporation's previously reported financial
information. (See discussion under Pro Forma Information Appendix -
A(1)).
(2) Represents the combination of AmerisourceBergen Corporation's
financial information for the quarter ended September 30, 2001, and
Bergen Brunswig Corporation's historical financial information for the
period from July 1, 2001 to August 29, 2001. (See discussion under Pro
Forma Information Appendix - A(1)).
(3) Represents the combination of AmerisourceBergen Corporation's
previously reported financial information for the fiscal year ended
September 30, 2001, and Bergen Brunswig Corporation's historical
financial information for the period from October 1, 2000 to August 29,
2001. (See discussion under Pro Forma Information Appendix - A(1)).