Tim G. Guttman
morning, Thanks, Steve. everyone, you would release refer thank GAAP I of you complete reconciliation with a that financial rates non-GAAP on noted. for and adjusted discussion unless quarters, and and past ask focus to for the and Good are against our only our joining results. our Consistent us. our to earnings quarter adjusted are growth remarks my comparisons otherwise results, that made prior-year results will
and importantly, improving especially distribution compliance to this mentioned, generic we levels, businesses. Steve progress very we're like Scripts our such customers and, pleased grow as several fiscal year, made services specialty key As areas with resigning the continuing in key Express
successfully Our what has navigate continued allowed to challenging environment. us in remained execution a has healthcare
We our morning consistently to to in combined with provide enable are overall main will This execute sustainable three strategy, growth. us that ability that commentary will I confident drive areas.
First, will our consolidated and performance. fourth I segment highlight quarter
spend few I area third will on our cover I And full year a XXXX performance. fiscal Next, fiscal expectations. the minutes XXXX are will
increase We begin with the at line expectations. EPS QX with an quarter diluted in adjusted finished XXXX with X% Let's results. our and $X.XX, our of
comprehensive efforts highlighted, no to PharMEDium operations were Sugar resulted including hurricanes. Texas. revenues about Land, preparations our and our As teams' issues these by we're of should was associates impacted, the These safety rapid response our facility our major with Overall, from events, Steve coordinated in the pleased for shipments extremely and EPS in $X.XX. I facilities. from our we estimate, recent impacted our mention slightly
X%, having the up Our business consolidated compared day last to billion, less in revenues $XX while one were year. quarter
consistent headwind U.S. hepatitis quarter, experience continued also this with C market lower We the trends. to overall from revenues unfortunately a
Operating hep As operating C adjusting operating our adjusted $XXX been an million, also would was income million from one the and four income; less down growth illustration, or have excluding with points. day, X%. margin revenue this business headwind for basis our $X up our X.X%,
had The dampened more we centers new quarter. five slightly income bringing in expenses operating OpEx expected accounting the operating associated expected, As with one-third distribution than increase. fourth our our higher on-line costs growth, the of for
Moving below income income taxes. the operating line,
in previous compensation. change favorable of insignificant XXXX highlight up had tax September quarter I points regarding year's this some adjusted current should from that last the fiscal Our This tax rate rate. also basis rule the income quarter accounting expense. was about a last September year. the tax Unlike a our quarter current headwind share-based the true-up year, adjustment XXX caused XX.X% for from current quarter, the an benefit quarters on for had
the decreased X% just net headwind. as about income result I the including covered, items to adjusted million, of $XXX tax Our primarily a
we shares. share million shares $XXX board X.X million and our repurchase the end XXX Our about remaining X% of quarter, million million adjusted to the with count on diluted authorization. share $XXX current about September repurchased we decreased shares worth year-over-year In or year
cash to over Moving flow.
pleased we a with This much heightened and This record the results. inventory our of of nearly and cash our better as our focus of turns. levels our finishes a was quarter. consolidated billion, anticipated We also on QX mix result extremely revenue flow are than a review free $X.X
our Next, segment cover let and me results. switch
businesses. September with reference and the morning, conjunction call Drug highlighted this effective This Legacy I'll make Drug me be I our will a to operating highlight Specific as Legacy press Specialty the last XXXX. release and in into let single segments in our any Specialty combined conference XX, and that Before start, time transformation operating company efforts the segment, we
our two our moved between segments. businesses reportable we of Additionally,
low TheraCom businesses segment. within our to a the Services high consulting moved, our group moved with revenue was that of distribution, One the business segment margins and other Distribution Pharmaceutical
only As will operating review that, prior results on have changes we for segment a had all segment and highlighted had of result solid our mentioned Total X%; by continued With generic but customers. this C be we certain periods. Distribution. Legacy restated up $X.X business segment business lower and up we hepatitis revenues not earlier, Company growth begin Pharmaceutical revenue to results changes impact to have in these with revenues as reported lap fully disproportionately can impacted from XX-K. the immaterial an conversions X%. were billion Drug brand our be did large the These
previously an point just the customers this prescription inflation to and growth the As And, drug past, basis three segment always brand example, revenue revenues that been associated lower conversions. generic volume. brand should from the retain been drugs out XXX to we offset lost a year. share. inflation large the conversion provided revenue holding But not with points with of had year-over-year converted impactful has I less top certain do upon partial the In
physician distributes leading revenue Growth and growth over MS, Ophthalmology Legacy Oncology degree, Specialty driven primarily percent; lesser Plasma. volumes which by of Our this performance. in consecutive business practices market to XXth was of level quarter specialty a XX% drugs of the and in increased notably just continued to especially with
see continue and and growth to essentially growth. We indications strong flat. $XXX operating to due income overall and expanded Immuno-oncology volume revenue million drugs market Segment was from
Group contribution impacted by offset Drug growth the which lower with Our was the negatively from way Drug expected company. Legacy business. our Specialty excellent company the Two led items
item, these online therefore the OpEx in centers. some in increase the of spring we The to sequential with QX The primarily Aid first that anticipated business. would the go-live Drug Rite progress incremental business. the ahead the onboarding new second Walgreen's an distribution QC been had quarter procedures. of go-live timing are opening of original new order had the DCs due volumes with the throughput to having date item, PharMEDium dates highlighted was deceleration business QX, for to so shipping and coincide have burdened DCs with last while in And at we higher company experienced the OpEx five of specifically XXXX increasing their pleased our the DCs, best-in-class bring eventually Despite
in year-over-year the terms performance. of However, was still business down
in Some challenges. a making of this as hurricane. we Distribution lower demand services macro headwind Houston is Texas related despite Overall, Pharmaceutical PharMEDium's the industry facility progress result are of timing to segment at the
We continue order including pro-generics to growth lines order shipped, see in lines.
and the move effectively which of investments, standpoint, under a income have We made X%. in efficient at our three about we've Production customers of growth, MWI had businesses. their revenue a record quarter. the in had businesses growth. degree operate volume key Animal. modernized group more Companion enabling distribution redefining and Animal to an network, $X.X shipments $XX experience just Other All on billion most the includes income health. that around From animal center World MWI, focus record and had a quarter XX%. the Courier technology this can customer World meaningfully up to to In AmerisourceBergen up now This an contributed strong million segment. especially We to revenue the commercialization Courier, and and Consulting and operating businesses in were lesser revenues operating services global of total number
with solid now of items. full to a lower this points our financial market MWI three like year business leaders fiscal in negative includes revenues. to the undisputed was fundamental some growth just C XXXX basis a X%, profit there I'd due the in to Overall, we pleased year consolidated the few the core Hepatitis Revenue; impact in and continue a typically a their XXX sectors. As lowest QX effective cover full being remain be their is quarter. All businesses seasonality Other. very reminder, with
overall than two X.X%. the days comparison. would prior year, had our Additionally, the for been growth fiscal unusual for year less revenue business items, have making current Adjusting these an two
we stay a flat business fiscal days. terms As XXXX, note, of in will in
year XX%. Our total just with largest billion, customer, our ABC represented just the of of ABSG, revenue Legacy Walgreens, over revenues. under our business, growth XX% $XX.X finished Specialty at
year for business. this outstanding Another
for roughly of a was flat income total year, down billion. adjusted X% the Our ending almost operating $X about at
Our at points. decrease margin finished X.XX%, six a adjusted operating of basis
fiscal We year, order headwinds up our and customer X%, to and we practices forward to due a tough lines in market enough changes operating we up grew execution EPS and and EPS fully an maintain strong ability free environment we our in executed manufacturer EPS; from our This especially made as diluted over healthcare benefited pricing rates. finish this and significant well, XXXX. exceptionally with is income $XXX from cash our customer made the cash full rate a reduced year in from billion. a operational had navigating this litigation current resulted offset of September. to million the the number highlighted environment. profit business, share flow, priority extremely XXXX wasn't PROGenerics in free just Unfortunately, XX% of this over carried improvement renewals area. our adjusted net flow cash Free of And While count. at fiscal flow $X was level, tax about gross key earlier; $X.XX, lower end despite payment compliance
XXX% the sheet. with of flow strong was year in about fiscal billion free litigation which cash billion was great income. We net $X ended cash, roughly the offshore. total Excluding financial a enter $X.X We of XXXX balance held and adjusted flexibility our our with payment,
are positioned our invest in opportunities well is if well two continue and opportunistic we Our strategic present times, business to debt themselves. to under adjusted leverage be and
fiscal let's XXXX turn to Now expectations.
start working key through working guidance on items, comment will the assumptions. Before I I specific three
First, with brand let's start manufactured pricing. drug
includes inflation at right During fewer this in quarter. at fiscal have assumption our increases these price fiscal as finished for X%. reduced brand think about XXXX, XXXX on our we rates X%, Based we brand and to fourth lower trends to X% inflation our and
buy side rate a not generic which drug trends that Next, deflation generic positive. manufactured worsened, indicate Current is pricing. has the
drugs. offset, over brand, This continued which long-term, level to our calculated business stable specifically percentage generic to headwind the a for elevated rate, presents we in range. for volumes that margins single-digit and high increasing specialty deflation and remains our work is optimizing Our the achieved primarily need through
metrics Walgreens will XXXX, relatively negative X% Rite will to which buy growth third transition Aid Other X% key the fiscal stores and an our generic standpoint, same time be gross finally, X% overall a launches a the the generic includes both drug range. provide from the to specific our and previous X% we Distribution to for over year-over-year. expected happen the expect forecasting on in to the third growth period to our working of range XXXX. in quarter. the we guidance Consolidated side And onboarding Pharmaceutical fiscal fiscal Revenues; one: grow of gross negative grow flat commentary, profit; we to end we X%. extended range. Services specific to continue consolidated are guidance deflation be This PROGenerics the but We priorities are segment From assumption, repeat to don't revenue expect can our near profit, finish now X% For contribution remain volumes. that
cost However, And successfully effectively. be business. compensation. to we expect generic the than appropriately that pace fiscal price onboard Aid at efficiently XXXX. new Two: drugs Three: continue to source four: and XXXX will fair fiscal slower Rite receive a
fiscal from As DC always, XXXX. mismatch growth or with expenses our rate we such are run pricing the costs X% certain in these offset we fully help in Consequently, of either the will new savings OpEx costs we expected expenses; will expect and pressures. before range duplicate of last quarter X% efficiencies. revenues as IT additional manufacturer to operating technology optimized fiscal assumed have objective as a Consolidated items that it's operating in XXXX, mentioned
U.S. managing operating diligent and our efficiencies, for expect X%. to which and we grow always, adjustment between gain market. OpEx streamline operating X% evolving imperative in continually remain ways we an healthcare income; and rapidly is income in a As look to Consolidated
to due X primarily meaning mix, growth operating margin our rates down to points customers. largest Our within higher be X will basis
lower segment in contracts offset Importantly, to more standpoint customer transition Pharmaceutical a pricing midst of following. efforts from we the contributions from our we balanced Distribution to to remain generics. the expect Services; help
have benefit new expect and will As it's Aid Rite a ABC Walgreens will World fiscal is result, between however growth of given onboarding Commercialization for for growth projecting and schedule, the all continued will segment MWI the this from Health; anticipated new to so also that Services X%. the operating likely business, Animal benefit pharmacies. We're remain we key and and group quarter income forward. be the strong going the differentiator The segment's only the full X% Courier. a fourth
do growth expenses to will business, group's each the year system our However, consulting Lash slow wins the to our operating timing of technology the due X% Consulting, to associated in like one new XXXX, for X% implementation. full of normal running overall nature new business. our it requires fiscal expected Fusion is with we any contract expect maintain and The consulting business. of Lash that is the and the including growing to course ultimately Fusion
capacity As customers. existing new forecast in we year, we including the building are the on our customer impact the platform will converting have
for Lash transition a business during projecting this are period. ramp Fusion more We limited
patient a is enable game Lash, are competitive partners, at return significant that be and XXXX we fiscal also and beyond. growth to manufacturer this level system changer. ramp for a a normal and fiscal highly will support is will Fusion valued by Our provide group in of confident our It because of better best-in-class system advantage XXXX end Consulting And its experience. business that the of patient our a
below Moving line, tax the rate. operating income
Our guidance from XXXX tax fiscal to about credits higher year tax one-time to rate won't rate a versus assumes This is due XX% of adjusted tax a R&D that full slightly XX%. benefits share generally Share enough repeat to impact initiatives. guidance of repurchases; tax a modest exercises. from in offset buybacks, mix income, assumes employee continued our by U.S. offset fiscal dilutive higher somewhat the XXXX,
XXXX we our $X.XX deployment, cash in with EPS; depending and flow, on competing As always, expect we conditions. market of thoughtful be Adjusted of the will our range $X.XX. to uses to EPS to adjusted look capital be our cash fiscal
our Let adjusted EPS progression. me cover quarterly
this cash we conversion flow, that $X.X expect growth fiscal we customers, the which World let each to the the Courier logistics address sales, our XXXX cash between flow; we In to have metrics, important the closing, and Roughly projects Revenue system during spend better our and gradual be Switching backbone second being most market. us and healthcare critical first, our excluding fiscal and completion relates primarily CapEx due $X.X two and discussed, driver like Aid that is strategic much order-entry We We billion. generic XXXX billion our are expected most new of for be can half flow; fiscal to cash carried stores of key be of of million. investing investments the and Free new ABC system actively to the to than that be over first distinct our want are XXXX centers Fusion about our XXXX. CapEx will fiscal be growth expect the The the technology previously XX% half the system, benefit growth, and, is distribution are Rite from remaining evolving Nova, advancing of free just range. in part, reiterate discussed. EPS a the partner $XXX their projects of completed for to growth. to to as to of our move customer business. drivers mix nonrecurring which Order, within which business our of EPS brand cash onboarding our Walgreens include items, me to
deliver our Our systems XXXX, forward we enabling are ABC. deliver innovative proud in ABC, looking in fiscal and accomplishments appreciate interest continuing for people, are are our us We and of XXXX. importantly shareholders. and for to to AmerisourceBergen We to fiscal differentiate services and your in our customers at
Q&A. start Keri is here Now to our
