ABC - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the Amerisource Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Bennett Murphy, Head of Investor Relations. Please go ahead, sir.

Bennett Murphy

Thank you. you discuss joining quarter AmerisourceBergen’s thank conference for results. and to call fiscal morning, all us for this Good XXXX second I’m Relations. Vice Senior Bennett President, Murphy, Investor CEO; Steve And today President Collis, and Jim Chairman, and joining CFO. Cleary, are President me Vice Executive and

to we and measures accompany are investor.amerisourcebergen.com. on website are today’s also of call, financial We’ve Reconciliations today’s to our release at a press to be available today’s will On provided slide also non-GAAP in discussing measures. these GAAP release presentation posted press our website.

business make to, During non-GAAP on financial call, and basis, we this flow. adjusted operating EPS, conference forward-looking will statements an cash limited about our free and including, income not but expectations

uncertainty and Forward-looking change. expectations statements are based to management’s on current subject and are

of forward-looking we today’s assumptions, call discussion on a the XX-K. refer filings, our company. and any risks release, and press call the assumes be most key update statements of to AmerisourceBergen to including rebroadcast permission recent SEC without our cannot express this this obligation you no For

have to possible questions order remarks us ask get management. We participant participants many your after you hour. one for ask the limit opportunity by that in questions to today’s within to You the as as to per

to turn I’ll the that, With call Steve. over

Steve Collis

you, Thank Bennett today’s everyone on morning to and call. good

of first saw call behind our year morning’s and XXXX. main for of areas. half earnings focus first the quarter from will you second fiscal half As a release, two performance AmerisourceBergen excellent us, the delivered on this With I strong

over suppliers will detail our talk of positioned and associates, more the for we remainder actions also our discuss pandemic; will to in our about to the then and the and AmerisourceBergen customers, shareholders for will AmerisourceBergen’s results our and we how outlook Jim First, year. long-term our for is communities. the discuss COVID-XX deliver value response second, in

AmerisourceBergen XXXX proud I’ve with actions response never to regard COVID in of we and the taken our the pandemic. First, to associates. been have

of frontline In and We and has by have and our and time-off paramount we associates, of paid support associates. challenges. dependent key to helping to are steps to associates have third-party wellbeing our our for quarantine frontline navigate associates intensified enhanced our are to associates backup values purpose and the new or manufacturer the which foundational measures cleaning our or for associates supporting guided leading in included been is family and health, and and our turn, of and for the safety enhanced our company customers healthcare. support protocols care.. provider additional innovating have care taking safety weekly These in prioritized several AmerisourceBergen’s supporting protecting cleaners, ability bonuses The associates important elements members, from support been

across the highlighted necessity of and imagine, been complexity we has can To As key is services experts company. and the amplified you and challenges. effectively new up force that and as providers these response on, made our challenges and manufacturers address and leaders task head of internal an established efficiently solutions increased navigate help

of distribution government Our are which individual continuity force by task meets also advising innovation us robustness force enabled help and and associates. has the quickly our business plans, implement with the officials. been of and our leaders technology to teams move our and talent Task network,

medications to continuity invoked We and month, to other seamlessly COVID-XX history perform volume demonstrated flexibility. our the capabilities, a caution, for location. technological of temporary giving Last AmerisourceBergen enhanced to measures spot. hot ability they to has distribution of temporarily patients extensive businesses centers in operational out strength The business our the us centers. our and sanitation investing to we transferred our AmerisourceBergen distribution and in closure our need. when given of provide we region largest closed abundance this significant plan proximity access We infrastructure of at the an one has used its the

quickly also remotely. We in AmerisourceBergen distancing to was shift the made This suitable roles we and all infrastructure. moved strong not and protect result IT measures types our associates. achieved of important close significant possible working network The to collaboration technology. the distribution site lead non-frontline able measure of were as center, would to a investments and without proactive have leadership be

diligently we of maintain worked needs. the to and our varying are and demand On to teams side, pharmaceutical that supply understanding commercial forecasting address supply sourcing the to sustainability have ensure inventory necessary

to in to regular a engagements. keep We This amplified stakeholders have continuity have has approach providers. we And from a it meet proactive and and of period coordination increased our all alignment is to maintain when demand with communication best made vital. priority communications and supply been

our to held reach teams to Outline resources in chain. participants. customers. And and have events the supply and Our response. are calm, example our continuity have factors numerous influencing town and to of thousands virtual transparent a articulate the halls facilitated customer These order discuss business patient-focused good of available response AmerisourceBergen’s

have by by I associates. and the AmerisourceBergen comps, been innovation inspired uncertain daily these dedication, Despite thoughtfulness displayed

these in firsthand importance especially in AmerisourceBergen’s our resiliency the that position, reinforce and climate. provide critical of economic We purpose-driven in the any plays to given healthcare system. solutions is organization, and AmerisourceBergen It role times strategic our services seen the have vital ability like confidence

pillars. focused providing much years, on the into of strategic four have visibility our we time with investors analysts AmerisourceBergen’s Over and

connect around changed are we the way now the remain set way While working, AmerisourceBergen way we communicate, we key has differentiators that the the world and the constant. us apart

in they underscore them of you positioning. our strategic remind me why confidence our Let and

portfolio segment. key First, anchor each with of diverse have customers in relationships a we

creating nurtured example national and their of things groups customer community chaotic, Pharmacy, been front their crucial media, partners group pharmacy retailers drive-through care community ranging partners customers, at-risk providing long-standing have in even our health exemplary collaborative patients physicians. hand done making at most the on a diverse packages customers, an sanitizer showcasing Good independent need members play by keeping have These to utilization are and for a pharmaceutical is built from and or our getting and ensure patients tirelessly services relationships they the and Neighbor they to settings line channels. from job on the working types us where States of variety via have health. of in capitalize of these with of We to systems part to distribution across one in touch community An continue with United improving whether the social care enable when

continue market-leading maintain where services, drive long-term we pharmaceutical trends and and in positions Second, demographic distribution will to growth. specialty innovation

help of our testing existing operating improved in will believe referrals. patients. practices of period environment, practices the serve doctors to provider social some necessary operability During of complexity of we’ve understanding them meet the – distancing, of their navigate in working the this been We to there new delays are this seeing that for patients with customers enable needs and complex availability efficient more and these ability the to natural

help same partners to community able are provide distancing. patient to teams slowdown patients due We therapies. analytics physician the closely vital time, to their to to working be practices navigate them have in temporary our At continue ensure manufacturer to access support worked pharmaceutical our with social efforts advanced the commercialization closely with visits to

insurance that partners of eligible supporting due been unemployed COVID-XX. access has therapy despite maintain patients helps to to program our business Lash health Our loss

services of supporting provide World has been Additionally, the on to direct-to-patient shift into the asset hospitals out and lowering of trial a clinical capability home, key the in and pharmacies. healthcare thereby burden Courier’s hospitals

trade we provide center and partners, a that us its ability As customer-focused network, foundational by Navigating unparalleled in to are complexity IT of capabilities and AmerisourceBergen, third solutions thrives our services our specialized as solutions. powers innovative in invest as to proactively Courier distribution complexity market. to key increases, be World is capital guided innovate dedicate its and and it our capabilities expenditures best-in-class the evidenced foresight differentiator,

analytics we are physician example our areas evaluate concern. strategic to community One are using to practices for Infodat, advanced such potential solution, tool of and is financial our provide Physician leveraging intelligence customers. monitor the a

to such delays services monitor and claims patient current analyses situation, Telehealth providing we COVID-XX, potential and the impacted Given payments. by new in are volume, as to transition areas processing

At business operations In their strength critically engage to illustrate MWI, and our of a tools communication technology that virtually recognized become with These to their and core the series has for for remote important. need practices enable curbside team a for improved practices veterinarian announced examples provide response, AmerisourceBergen. the client patients.

talent, our expertise resources ability Our facilitate and to comprehensive provide solutions.

be strong AmerisourceBergen and financial corporate continues a advancing steward Finally, culture on health. to maintaining a and talent focus strong with

have culture on in recent unparalleled value and been these Our all our weeks, stakeholders. display for full talent delivering

same flow the on to with individuals of the the especially stability company capital our environment balance heard that sheet provide navigate all from the work organization strongest AmerisourceBergen great one purpose with across to the a cash and of in current AmerisourceBergen like unchanged stakeholders. values, We proud effectively provides for and generation. focus value they history This times are health order long-term a in appropriately to for financial financial during organization to and need. our and remains deploy the our and firepower societal priority flexibility with the strength continue continued At on company and of have time,

Now turn for quarter outlook second over our XXXX. I and to Jim. discuss will results call the revised Jim fiscal to

Jim Cleary

unless made our results. Thanks, on My focus will financial non-GAAP to refer remarks Steve. comparisons today March earnings and quarter a please good against only our otherwise of release. noted prior discussion for GAAP are everyone. year morning, the adjusted And our rates Growth results,

to I on outlook half reflect of want I results financial moment our first second and the the second the quarter year, a COVID-XX take Before pandemic. for to discuss AmerisourceBergen revised and

call, I been deliver be to proposition with and my reached are I success and On earnings over several across never provider partners. November prouder these I past our February, to said and value AmerisourceBergen. the manufacturer of incredible we culture weeks, AmerisourceBergen fundamental company. the part to the our five-year our for mark businesses And associates, have

the did then find unprecedented now, I the circumstances, not we in fundamental know ourselves remains truth unchanged. While

AmerisourceBergen’s solutions been have efficiency we navigate stage well more as talent, company businesses center and The stability purpose for to important need challenges and the we paramount. have and provide access increased partners has complexity. vital our and taken and the new never healthcare positioned and so enable

Our purpose privileged part are it. of be and a company and feel our culture to our I guiding

partners. evolving upstream We downstream have resources been and of capabilities needs the leverage our and to to able internal meet significant

years, prioritized of capital AmerisourceBergen other before we are many already benefiting the from has the investments internal deployment. that Steve investment all Over detailed now.

the tools, AmerisourceBergen say continuity to continued infrastructure simply that ensure results will our enabled in patient access. validate businesses. our investments that business I the resources robust plans talent amassed and The So has

discuss in and areas morning. this will our to I now main expectations. financial provide two commentary results Turning

First, quarterly fiscal cover to XXXX and second, I I performance consolidated will and segment quickly adjusted revision cover our guidance. will our the

on commentary impacts my the will environment, of Given of and that COVID-XX. current I qualitative in understanding color valuable various quantitative the much focus is

we to second XX%, with Beginning a increase adjusted our quarter lesser $X.XX, income and, primarily diluted results, higher a operating quarter share with due lower extent, to of EPS count. finished an of the

in billion, expenses increased and segment consolidated Services Distribution $XX Our to X% Gross $XX.X $XXX to X%, million. was Group. Other, our Animal increased Services strong up million driven $X.X both & revenue billion. X% Health the Pharmaceutical by profit Commercialization or operating revenue over growth Global Consolidated

operating was certain up prior range. the to the with XXXX expect flat operating X%, low growth $XXX was driven quarter. the of While growth our the we expense items, fiscal operating to in single-digit onetime quarter year margin be million, operating in full income Consolidated expense timing year by

March the January, prior the in business, decision of our benefited after from the the operating PharMEDium the losses noted January which in permanently I results quarter $XX March of exit million year to removal XXXX adjusted from As quarter. incurred

nearly a on of impact fiscal without grown $X Net tailwind. to comparison year-over-year line. the expense The have Operating continues income the to have new accounting X% still XXXX standard decreased interest million adoption interest lease that million. expense would $XX in favorable

We interest higher-than-expected the on have in of benefited first cash the from year. income half balances

income. significant a Federal recent expect the of benefit from to Reserve rate interest cuts, Given have as not we do

with line the to year, we at the March expense quarter. quarterly Looking interest be relatively of expect the in balance net

taxes. income to now Moving

income adjusted prior compared quarter. year the rate Our XX.X%, to tax was flat

share have XXX approximately repurchased to $XXX count diluted year-to-date, Our decreased million shares. million X% of Fiscal our we shares.

in balance, held fiscal of Regarding adjusted was free for on with flow cash, cash our We billion. year free right million, and $XXX track quarter guidance of us putting with flow full adjusted and in our which ended cash billion had free cash cash dollar-denominated the $X.X U.S. we year-to-date, generally holdings. offshore approximately of $XXX $X.X flow million

This review of completes consolidated a our results.

to and many was largest $XX strong The with segment customers, their at we overall the our experienced in segment revenue cover specialty benefit In of growth. COVID-XX, Now I’ll Pharmaceutical profit. its increased continued revenue onset billion, demand resulting segment our from as quarter, the growth customers of Distribution up of results. some growth continued X%. increased pharmaceutical in Services, gross Beginning distribution market and purchases higher of

significant incurred income we However, elevated no also operating million. to impact about increased expenses, operating X% operating was to consequently, income. there Segment $XXX and

maintaining businesses customer continued We to leading distribution relationships. our specialty a from and of portfolio physician benefit services strong

by gross $XXX growth operating operating operating profit group total the at with turn MWI. The that delivering focus now three AmerisourceBergen Courier, in consulting Commercialization will which up driven World Health, $X.X Services part all was expenses. by In up income of I to segment, had revenue billion, and segments & primarily including includes businesses the Courier, on Animal double-digit Other quarter, Global and MWI growth. XX% higher World million, X%, offset

of now turn This our fiscal I completes so the results revised will quarter guidance. review our to XXXX second

in we performance the execution we morning’s EPS first and to normally, of we down businesses to would be our range raising this lowering from previous our guidance. year of after XXXX said range our are As half, $X.XX to release, of the in $X.XX, And press $X.XX. adjusted guidance full the a fiscal $X.XX

However, given the to impacts the of of second potential year. for half we must revise these times, guidance COVID-XX unprecedented the reflect

patient the main of duration year the As at we for the potential half is the look factor second outcomes year, of the magnitude of the and impacting range disruption.

our potential various AmerisourceBergen analyzed for resilient. disruption businesses units. Overall, and and on COVID-XX impacts manageable the are weighted have the feel probability current we business related that strongly is We our

weekly mix monitoring business also are and impacts. understand We volume to trends product

growth line distribution April overall trends provide some our insight for and oncology. full sales and were with encouraging

soften beginning for non-oncology class began Our necessary the that those saw and sales to in end of April, testing month. towards delay delays will anticipate but significant the physician pharmaceuticals. sales business physician-administered of the weekly year-over-year of diagnoses of decline trade, We the future in physician declines

be our sales the which Pharmaceutical some within of then volumes. to that occur speed certain our quarter, in are is of businesses, of guidance do return our beyond include guidance impacted significant debt in range throughout businesses any by the to not and pull-forward to and called in Factors Additionally, these in current Global a services because Health our EPS our adjusted of Factors will related range rebound assumptions. we COVID-related on quarter March the a of MWI, guidance double-digit fourth on impact include Animal expect currently EPS bad full a the of fourth of I decline the higher impacts COVID-XX factors & not the businesses. third Commercialization lower our quarter. also that magnitude the earlier, and that businesses growth magnitude incorporated expense revised us out move particular, factors Overall, into our our

to the growth distribution range. Services income, single for in year Commercialization mid- be guidance Operating mid-single-digit percent pharmaceutical low range. expected are: digit now full growth the level percent single-digit at to the Operating consolidated income both low Animal in our decline is low- the & in Other, Global Health to in revenue resulting businesses The to range. ranges percent

to cash care. There approximately cash balance continued sheet The of change supports million XXX expectation access Finally, billion million guidance to so XXX fiscal flow outstanding AmerisourceBergen’s the buyback $X.X patient year. year, and to given health to between XXX our previous for on million we our approximately from share shares, far are our of ensuring is no lowering free flow weighted ability for and focus expectation shares the for this shares adjusted down XXXX. our of

protecting doing patient for services is In partners is providing closing, to and enable solutions access the and communication, long businesses what our individuals remains and especially focused on is still enhance appreciate learned environment. our seek But to be path in as value we the that this appropriate best, hopefully, our forward. the stakeholders. country, to associates, creating and states, there much supporting AmerisourceBergen guidance all will color and long-term unprecedented continued transparency key as additional and contemplate to update you

We strategy and are differentiated positively company centric our by across with positioned guided you are interest and And purpose, culture our our for your talent relationships by significant by we our AmerisourceBergen. strategic importantly, driven and by our financial and well pharmaceutical our businesses strength. Thank customers. deep in

Now over I will back to turn the Steve. call

Steve Collis

Thank you, Jim.

AmerisourceBergen’s I to Q&A, responsible citizenship. for over call minute corporate the discuss a to take turning Before to commitment want

As we communities and to around operations corporate create advance sustainable social world. to futures AmerisourceBergen governance on associates, citizen focus healthy the highlighted report, published our healthier environmental, our and inspired in enables recently initiatives XXXX

commitment continues has we the is disruption make and a our communities us to and as world associates served The a many the and weeks Our for around past brought been influences health change. as to several of challenges. of every world the guide vital decision have period

Our lives altered been health and and the been reinforced. of has well-being importance have dramatically

you of tell months, as and capabilities and coming all While tell as happen element and that heightened business period of in can weeks will awareness I exactly for stakeholders. emerge I well you create we the enhanced will the what every cannot value solutions we from each with this a over our

guided this, nurses, been teamwork leadership impressed exceptional particular, I’d by to COVID-XX. futures. by in united distribution Thank by responsibility all our caused devotion the Please front true stay concerns those our associates made create you lines Thanks powered throughout of address our pharmacist your for this are and to been interest AmerisourceBergen. profoundly and healthy. healthier the associates, talent potential and safe purpose and proactively the to have like possible. and powerful on we our AmerisourceBergen in able associates the determination being is of in by and to rapidly to I whose staying collaborative center thank, and we have organization. adapt

over begin the to Q&A. turn now I will operator the to call

Operator

Instructions] go first comes Today’s ahead. question [Operator Gill JPMorgan. Please from with Lisa

Lisa Gill

Thanks. epidemic. been doing We Steve, that I XXXX, Good XXXX. and are morning. you on know time. XXXX, and and things Thank to for through here XXXX, lived long I everyone that this the team around a frontline of both you Steve have

in talked As you this, potential how post your your about back looking getting think COVID-XX, quarter? at into guidance, this thinking to you you are we utilization, periods, about recessionary those rebound thinking pharmaceutical have about environment fourth start about the what

if can about for any I you’re And there, margins delivery to business do that speaking, of generally does about we trends then talked talk in the pharmacy. more the think mean home back. trends? on we Again, home, concerns specialty order you with one that you market see for the But trends if prescriptions shifts? into coming mail do about delivered people getting think what seeing is the that for oncology that versus PBMs coming how the

we telemedicine, to as understand know to As weak. really that’s the going you non-oncology this care think we kind I think a your I world visits, about to but virtual with still trends But lot change about to April, anticipation is of want things think about down starts COVID-XX. what’s start like forward? there there, as just break how

Steve Collis

around I must meeting. the meeting started think you doubt, look, was at hold, me change Lisa, we thank Hi, to end most May it example, our in-person, long Yes. been one time this, Board our prepared of virtual when a question. still to hoping you. we have there’s in reluctant no asked But could because Q&A I of We for a

more – we sustained, society recent need don’t me you this So faced no part been more to doubt on. that in which there’s anything the than memory, serious has

enough than people that. parting on more have are We

to Patients most form healthcare, in the take are think resilient. proven They’ve look, efficient of to I want be healthcare. to their prescriptions. continue very prescriptions

a we good start business. So really with that, that’s

physicians’ Some trends, offices. it’s to obviously, for of difficult been to the people get

come I are that A more much grocery who a a store, serious willing people go serious they to the to of friend when to visit to think cardiologist, have issues. interesting. it’s led not been is issue, mine, and somewhat but willing me they’re said,

trends. I what priority. should they’ve I offices, to about getting think call physical acceleration wellness back months. do in So go they’ve to I that hope years is this is their first about the of people two therapists, thing thinking been they experienced think be earnings when reopening, there’s that on health – two physicians’ dentists, will their back as a just and their digital Microsoft years, But of a – said couple two their

it that, heard of to can’t acceptance. example, described from one for I will state said expect But restrictions, years think in be on Telehealth, another. COVID, Telehealth that XX much Having post I’ve trend. more there we as

acceleration. going regular I to as that we’ll to generally opposed think that order part much thinking more important. about be And mail of e-commerce is as be that digital

be thinking I about AmerisourceBergen talk how transformation. that of we’ll veterinarians, community of three physicians, oncologists physicians. all to the be about – them community and community specialty with about pharmacy, thinking So digital that, pillars We’ll for assist

our it. getting the going come through some positioned strategy prepared – we’re the into being groups, we AmerisourceBergen and better crisis, as comment about part the well be that, of fact, when positioned we’ll smartest that. of And that’s as this well we In been company, for out we’ve in were ready of people thinking

our customer you diverse look at I need base. also to think

segment. We every in are with customers anchor represented

And of the for so pharmacy community high-margin mail it’s that, business shipping course, do course, of we will to benefit. a business Yes, than sites. order I XXX us, admit,

we capital don’t as in specialized course, experience But a very But expect occur of Of emerge. first some be we the base and that’s very customers with On I once associated think, some the slowed come medical significant some medicines to visits the those of slowdown. referenced. that that logic think with prescriptions specialty, and I – into that. will very down. first different believe, We’ve do and new bring back, lot business important of do even e-commerce. it’s to seen a true, to working We those we some things patient starts seen there’s trend patient again, have metrics and

resume The Again, there’s The expect softness patients. believe, the or the reemergence is a lower been areas. weakness a certain continue, operations, we believe pathology diagnosis new – related factor up key has to a And has to well. restrictions a open new positive if gating trend oncology, that for in of really will and towards hotspots we Oncology report those all hospitals, areas for and are longer to a further to are normal we be continuing holding us. been getting, would starting of up.

on chat. So a I’m we’re sure going your question, I’ve rambled excellent lot but get to voice. Thank of quite Lisa, you. to to some questions, hear more good and

Next question, please.

Operator

Next Sachs. with go question Robert Jones ahead. comes from Goldman Please

Robert Jones

as for there oncologists Great. guys the to specialist Obviously, prolonged relative just clearly guess, immune specialty have to have Thanks then broader on maybe physician-administered prescription you has give not – highlighted the there’s down, think channel? the be there can not been within visits know Steve, scripts you channel more questions. and the up you market? And how of of impact, pick expect those I The in specifically any the timing weakness us could on you I give and trended, seen be we’ve on the have marketplace. order been been the do said maybe you us magnitude an sense how pandemic. the side. the can to the Any you to but

Steve Collis

mean I I as well. I are – hope – Yes. you doing Bob,

a patient in I at distancing limitations and operating have social essentially some visits world. impacted the through mentioned, working specialty of So as been referrals practices, been have

Telehealth Our have, also understand, possible, cetera. to physicians as texting they’ve had upstairs using visits, rooms, we as as et much people waiting started to come no use and for

lead. delay sales. led pent-up world diagnosis we a the that had and. reports, of to in a believe lower weeks a visits new course, mix everyone months. we has more and of carry anticipate – large would couple on And to again, for And has It some or adapt do order demand. to more And to et it’s but cetera, So led pathology couple new and also

to and with illnesses, extremely we physicians, dealing to when be I you’re reopen to So are the pent-up physicians those vary the keep that to there working by therapy be life-saving going And kind also, have that resume have until they’re the hotspots demand areas. patients, the ER is complex once literally be state, expect certain as valuable real will and first will or a that, back states and of will analogists around feels think to less keep clock states to to up, we go think the safe going certain to it to everyone those offices.

a So resume. national we’ll see so that we are business,

treatment. of referred were treated under without to has their treatment need critical illnesses course, are probably goes because specialists. relatively with saying that those people the And it up examined, and well, holding be who by has continuing Oncology Ophthalmology been under patients been pressure.

being I able talked We’re some starting reports to pathology to the hospitals again, return. about the And and see trends of stability. normalizing or

would increased allow capable for an a physicians. operating environment testing availability of for more So

Bob. hope gets I has question, your please? that comment, Jim So a

Jim Cleary

and course, Yes. April. month about I But been additional for did a to thing month. on week we typically we I’ll see that Steve a those of given physician emphasis, additional remarks, towards oncology decline those trends color single where ophthalmology. I end within non-oncology like call, as wouldn’t wanted but single And of market, overly the to clarity. the my monitoring month about. but Steve and most of and sales but or we current specialty saw numbers this the think the an – solid the said course, recent and add, the saw prepared to was earnings we we things of mentioned, don’t put month environment, month, market, the think growth trends said, during talk the And that physician Bob, weekly sales April, provide moderate and course, And in one we are we of specialty declines as in and still want helpful of emphasize have as

Robert Jones

Thanks. helpful. That’s Yes.

Steve Collis

Next question please.

Operator

with Next go Eric Percher ahead. Research. Please Nephron from question comes

Eric Percher

we costs time. does Generics hear some an this I’d particularly to appreciate or think in increase the your as Thank for build shortages on organization resiliency know some thoughts you. diversity, resiliency? in interested your supply, input to that on at to period that creating Question lead the as more side, mission I years attempt relative be comments we to I market? the about the there’s of supply of

Jim Cleary

Yes.

importance have we increasingly the access market the focused on seen the and and importance of access So supply. of

see things our one you, year, generic and had that called which Eric, year calls that’s of on we’ve started won’t a continued out and XXXX, we fiscal call something really thing surprise that access One to trend moderation, moderation a increased is that’s to early related security. that supply of earnings of it the And but the was and and moderation the we couple generic a we seen, the environment us that recent deflation, our of to during current see benefited likely deflation. a this of is we’ve and focus too had said to part has that on

several been in the the that is last things we’ve so one months. seeing And that of

Steve Collis

we spending Eric, – lot time. Yes, a it’s are of

and emphasizing API has with this I’ve right, sourced proud side, extremely XXX% We we everything needed and our ABC WBAD, of us didn’t supply for looking history, over of where And so assist done generic seen front manufactured inventory like to. I’m they’ve we proud the this thoughtfully. I’ve ensure And crisis the CEOs quality strong partner, partners. on along hard And upped spoken Presidents our predictability get crisis. work also as patients and partners. they’ve partners the you’ve but they we’re group. through up. have a think were manufacturing extremely I working expertly all, And couple manufacturer, and step all of chain our before, price. to they of work in that we’re ready said a and lines, when First of we They to that so hit. to we been of are have

Next question, please.

Operator

with comes question go next Please from Santangelo Our Guggenheim. Glen ahead.

Glen Santangelo

speaking your of on lot with balance just focus I the wanted investors, there’s take of Steve, kind In to get here. a always sheet.

but M&A the it that get first maybe your updated always on be is on starting the seems And opioid that be to here curious into attractive. how given actions for think capital shift more taking helpful. on may while and of investment, based and any be be updates the still so about I’d to litigation And your there I curious yield, take priority look I’d the internal also maybe given repo the thoughts a sort is deployment. consideration appreciate current just dividend, you in outstanding the appetite Thanks. landscape, all market’s would environment

Steve Collis

continuity over That right? why IT, said would over than that’s thing that you which used when that Thanks. worried But productive incredibly we’ve plan get and is investments. I’ll our true, that But regulation being this. very Dave not priority a year the internal you that how I reiterate be those what that been invest say it’s me, don’t that like, businesses. is for you’re we’ve is is And really it ever about culture. we say, you And you say, Washington, maybe to has reimbursement, that is is say what up just important. communications always infrastructure, question business landed the a are to to to is true, much fortuitous my XX became worried been happens invested investments distribution first his. important apparent more in thing communicable our other was think and about well has something incredibly and I other detailed really lot remember Jim to in

best have our we’ve working at site that them. meetings internet ability have has throughout the we where have town people. we investments and this we The And great a had period. the to we we’ve have still constant that’s had support of communication people one because And able had to been but of over be XX% X,XXX associates hall home, our have to quite

So that’s important. I think very

As far as look to at always goes, open are it. M&A we

good M&A people, customer We’ve commercialization need the good We that of offer we our has interest technology, the very area. haven’t bases. much really there. been seen lot A in value good – in services is

think when then least just And should additive and And very, PE we has equal literally very to been be at our acquisitions, look see businesses that we don’t own that. often at market the robust. we policy. they And

over broad But I’ll that’s now to asked on been a hand Jim you hasn’t just opioid question. just So litigation. because me say let anything.

pandemic. the with busy been have We

something. time, So on should remain And we potential needs no front. do that very of seriously. this continue we offered necessary we parties but And taken hope believe add that we there’s hope that global is that that the company’s and framework, to essentially we’ll been the has – we will Jim be critical on substantive has the that our merits see update. at global very one settlement efforts the the focused that

Jim Cleary

is, Yes. repurchase prior Yes, a And press getting in it you as – capital authorization. most up I’ll in authorization. our what this year, today, done end fiscal used our about year on Steve, the were also, share release We so share then share $XXX million announced far towards we new know, and repurchases. of of we’ve this was deployment repurchase Glen, add

of And a as So announced in course, January today. increased also. repurchase we we our new then recently share also, aware, authorization dividend you’re

Glen Santangelo

you. thank Okay,

Operator

comes question Charles Our Cowen. go with next from Please ahead. Rhyee

Charles Rhyee

Thanks things and doing to all due the wanted bit segment other pandemic. out the questions here. the little to for a I were on here you’re that focus taking

guess You’re there by from? of that think Courier, a third guidelines more say I but revenues World here quarter. of trial MWI, with the in couple kind talking were glean most is revised issued you would about clinical where double-digit I coming fiscal FDA. the is in of a questions, from decline it’s coming it maybe some I

little it that point? that you their some are until is expect should Glen’s before modifying to Or Thanks. or at something of question opioids trials? the regroup of that maybe impact framework you curtailing on has are guidelines And terms Wondering the how is would back COVID? expect bit for answering could really countries of states still a just globally, is that. that in World impact having revisit Courier. side think settled get issue? that about missed you’d clinical kind wait doing they kind consulting the on pharmas and what from direct lastly, to to kind end, of global from And down you is that a there have more we that other And discuss impact maybe I insulated pandemic any I given Is Steve, perhaps a at then the were what

Jim Cleary

Yes.

I’ll question segments. and other the address our start, fiscal you me we had for segment, today year, you the indicated on what And that Let is had, the for the extensive question year. two low range percent businesses income the Other we’re the the largest Courier. operating be to MWI in the expecting for fiscal single-digit of are the World decline And in and segments

disclosed income by quarter. really kind will MWI It’s of focus health I’ll market quarter. there. the the animal was COVID-XX the But growth growth revenues remarks well And in really We So and a positioned. strong operating Revenue really my MWI the XX%, had be during be will impacted. Q. strong impacted

plants. are vet reduced be impacted animal due sales restaurants Production to issues supply and impacted closed chain substantially by animal Companion social packing visits distancing. hotels some impacted will be protein by of by and also to

animals. come And back production animal back – market. I MWI quicker well come will And both the companion really markets think will probably is be in than positioned strong. and but

it World international prepared because of MWI market And on Courier, a strong China other the businesses Korea the Italy by would or or the most his as of some about of stronger comes than onset it’s South doing. in looked whether we MWI things quickly of or ago, been its talked of is back any in thought months it COVID-XX If be couple or technology where presence, case Courier remarks interesting impacted back, the our really World countries had study. a that would be one operates. have ever. will of Very Steve we have

something for excels we always that knew manufacturers. World that Courier by managing complexity we really found is So what

rest manageable. And thought World is there impacts of businesses think, the up, to consulting, World of but of shipments of we will seeing like down, weights so at less we’re impact is significantly the today, we might ago. resilient as Courier, the will of some in in-home Courier they’re up. COVID-XX, couple shipments very while impacts a settings be businesses, the have And regard than number of be what the look be months the while the we and AmerisourceBergen’s With what in be rest of impact to group, would will the

Steve Collis

then said update. earlier. just just to an really what Yes. additive to update And I There’s be – no substantive

hope response. a lot efforts front. of we’ll our global we will we Thanks. to months, us potential have focused litigants three as past have that a parties merits previously ministry clearly, pandemic of that including the been and the the But probably framework, Over continue the that see on continue on said,

Next question, please?

Operator

ahead. Valiquette Next question Barclays. Steven Please go with comes from

Steven Valiquette

hope Thanks, Steve I are staying safe. you Great. and guys Jim,

right health. Just color right get color more the little of on a prescription the now And and animal impacting processing, quick et that those to Thanks. follow-up that of that press human whether a on on there on pull some much the business same bottlenecks forward how I in also to a happening guess particulars now? side. in with there, get MWI, more the cetera, animal within protein side. I around that volume all the also companion a headlines just want was little Curious was

Jim Cleary

Sure.

gone packaging forward closed for plants or of AmerisourceBergen, like two from the is at in revenue of of COVID-XX chain at pull there a market There’s really at there And oversupply then things. packaging demand like It’s has shortage that packaging for certain where supply markets an are hotels and markets. it markets are earlier, related to closed. just issues of of happened a happened and for I packaging our our of And health, commented the things animal and lot down. animal on restaurants required businesses and some the institutions certain the even other and demand really issue largely health many And this in market like markets. onset Just that impacted. a production was animal it’s MWI

production do we well back at and we both companion as as animal. come quicker come markets will do will business, so the back And think MWI look animals But than is before, really positioned. I said that

market be than it ever. stronger the So back, stronger, come when will does

Steve Collis

you. Thank

Next question, please.

Operator

Please Baird. with Eric Coldwell from question ahead. comes go next Our

Eric Coldwell

the the thanks. everybody vaccine flu flu high flu any much. on RX is early forward pull expecting topic, Thanks call, think sorry answer. the for an Number vaccine vaccine to us what if next two, we the dosages be. XQ I and if off quarter-over-quarter bit specifically into well number potential XQ, was was, prepare about season missed to you one. might be I’m remind what what forward was if from as very you’re I’m pull you exposure a timing hop revenue your as so I you just Did the but curious of can Hi, may of another to I thoughts that extremely this historic wave. this as have impact thinking quantify

Jim Cleary

environment so be the take I’ll additional of will $XX And helpful the costs, the and a also didn’t but not have income credit detail we debt QX that kind related forward, I quarter revenue customers. that bad the little onset We an we income – to reserve bit not part we gross pull we COVID-XX. forward strength color we but of we from and specific there to there operating indicated of incremental And of was first an or quantify wasn’t significant impact the established least it’s said we million more related I’ll revenue and that is that consider – to but to of impact very March believe a pull any Sure. at had profit QX. that. in provide specifically customers, the financial provide elevated operating there did

forward, important were there like distribution had but quarter, center operating what enablement, and in IT, work-from-home revenue in to March do with, things smaller for really there to frontline impact other that’s the services. which be pull then as bonuses to And income. cleaning costs an TP caused So not such some supplies associates, a

a quarter. but not profit, gross income, there reasons, revenue was on of And all so income significant operating impact for the a during pull-through those

Steve Collis

there On other to flu be on where and unusual, it is bit much we vaccine COVID comment meeting starting a area But what yesterday we is to more but a more sustained products, our little actually force, through demand. had just think direct manufacturers do could I color. don’t And vaccine, give distributors. them, are task on And sales. an with individual you some are

look it the there’s share. more prescription when distributor, to comes broad at market, you vaccine, very have high cetera. distributors, market But physician there’s If et AmerisourceBergen

a market. is bifurcated it much So more

And hope I some gives for we increased So demand color, expect that step but manufacturers will sure. also you we expect do up.

So have I more think question. we for time, one operator,

Operator

ahead. comes And Please Hill question with from go George Deutsche next our Bank.

George Hill

and And Steve morning, could and the Steve, two guess, I just ones. of taking Good of you this is Jim, through the March performed independent comments for versus of the chain of don’t oncology April, thanks context oncology question. underperformance remind end the specialty just the differentiate, you versus Thank inside for basically particularly have the around sizes the guess I – quick businesses meaningful I’m asking drug drug stores put performance kind some I they stores, would any if know Or same? versus you seen of the you. non-oncology so we kind of non-oncology the difference? the guys have can businesses. us Jim, segment,

Steve Collis

there venture so been of mail some are have which so some increased changes utilization early was in order. prescription There data,

share, scripts you we’ve well. talked forward, bit XX-day being retail really but a about pretty that market CBS think about market yesterday. shares talked I pulled But up or hold up

AmerisourceBergen be. is sector. specialty that a our growth. let for will including reiterate And adapt. should mail business our course, we me will in with And think close where customers that great settle things key long-term think, of well I will overall, be driver script is that orders positioned our And general just they anchor to the customers, belief

So the we’re at X:XX.

prouder I our are the I’ve care of thank call, working your say So that have to you plays I’m these to role AmerisourceBergen of thank indeed for today. who all to close moment want want to months, all healthier health the up. going past the managed I futures. time this crisis. take to just we been a during to that tirelessly ensure through three close world And sincerely never country help and members community the I to before the

the many you thank interest all with Have lie sympathies deep pandemic. attention and AmerisourceBergen. day, and Thank your this of a you. for good and hearts in Our victims

Operator

conference today’s call. concludes This

and may wonderful have now day. disconnect You lines, your a

Cencora (COR) 7 May 202020 Q2 Earnings call transcript