We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
AmerisourceBergen Corp | NYSE:ABC | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 179.98 | 0 | 01:00:00 |
Revenues of $47.4 billion for the Second Quarter, a 9.5% Percent Increase Year-Over-Year Second Quarter GAAP Diluted EPS of $4.64 and Adjusted Diluted EPS of $2.40 Adjusted Diluted EPS Guidance Range Revised to $7.35 to $7.65 for Fiscal 2020
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its fiscal year 2020 second quarter ended March 31, 2020, revenue increased 9.5 percent to $47.4 billion. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $4.64 for the March quarter of fiscal 2020, compared to $0.13 in the prior year quarter. Adjusted diluted EPS, which is a non-GAAP measure that excludes items described below, increased 13.7 percent to $2.40 in the fiscal second quarter.
The Company revised its adjusted diluted EPS guidance for fiscal 2020 to a range of $7.35 to $7.65, from $7.55 to $7.80 previously. The Company does not provide forward-looking guidance on a GAAP basis, as discussed below in Fiscal Year 2020 Expectations.
"While we are pleased to report another quarter of strong revenue and adjusted diluted EPS growth in the second quarter of fiscal 2020, we are even prouder of the impressive work being done across our company to ensure continued patient access to pharmaceuticals in the midst of the COVID-19 pandemic," said Steven H. Collis, Chairman, President and Chief Executive Officer of AmerisourceBergen.
AmerisourceBergen’s protocols to protect and support the health and wellness of its associates have been enhanced during the COVID-19 pandemic and the Company has business continuity plans in place that are designed to help ensure the continued operation of critical business functions.
"I have been inspired by the actions of our associates to be innovative and solution-oriented to meet the complex needs of our upstream and downstream partners," Mr. Collis continued. "AmerisourceBergen's diligence, actions and thoughtfulness in navigating this pandemic have been guided by our purpose of being united in our responsibility to create healthier futures and have proven vital for all our stakeholders."
Second Quarter Fiscal Year 2020 Summary Results
GAAP
Adjusted (Non-GAAP)
Revenue
$47.4B
$47.4B
Gross Profit
$1.4B
$1.4B
Operating Expenses
$1,079M
$745M
Operating Income
$310M
$672M
Interest Expense, Net
$34M
$34M
Effective Tax Rate
(251.6)%
21.5%
Net Income Attributable to ABC
$960M
$497M
Diluted Earnings Per Share
$4.64
$2.40
Diluted Shares Outstanding
207M
207M
Below, AmerisourceBergen presents descriptive summaries of the Company’s GAAP and adjusted (non-GAAP) quarterly results. In the tables that follow, GAAP results and GAAP to non-GAAP reconciliations are presented. For more information related to non-GAAP financial measures, including adjustments made in the periods presented, please refer to the Supplemental Information Regarding non-GAAP Financial Measures following the tables.
Second Quarter GAAP Results
Second Quarter Adjusted (non-GAAP) Results
The comments below compare adjusted results, which exclude: gain from antitrust litigation settlements; LIFO expense/credit; PharMEDium remediation and shutdown costs; New York State Opioid Stewardship Act; contingent consideration adjustment; acquisition-related intangibles amortization; employee severance, litigation, and other; impairment of PharMEDium's assets; certain discrete tax benefits; and a gain on the sale of an equity investment.
Segment Discussion
The Company's operations are comprised of the Pharmaceutical Distribution Services reportable segment and other operating segments that are not significant enough to require separate reportable segment disclosure and, therefore, have been included in Other for the purpose of reportable segment presentation. Other consists of operating segments that focus on global commercialization services and animal health and includes AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Animal Health (MWI).
Pharmaceutical Distribution Services Segment
Pharmaceutical Distribution Services revenue was $45.6 billion, an increase of 9.3 percent compared to the same quarter in the prior fiscal year primarily due to organic growth of some of its largest customers, increased specialty product sales and overall market growth. Segment operating income of $563.1 million in the second quarter of fiscal 2020 was up 8.9 percent compared to the same period in the previous fiscal year, primarily due to the increase in gross profit resulting from the growth in revenue.
Other
Revenue in Other was $1.9 billion in the second quarter of fiscal 2020, an increase of 12.7 percent compared to the same period in the prior fiscal year, due to growth at all three operating segments: MWI, ABCS and World Courier. Operating income in Other increased 8.4 percent to $108.3 million in the second quarter of fiscal 2020. This increase was primarily due to the performance of MWI and World Courier.
Recent Company Highlights & Milestones
Fiscal Year 2020 Expectations
The Company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available or cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.
Fiscal Year 2020 Expectations on an Adjusted (non-GAAP) Basis
AmerisourceBergen has updated its fiscal year 2020 financial guidance to reflect the Company’s continued strong performance and opportunistic share repurchases in the second quarter and incorporate potential impacts of COVID-19 in the second half of the fiscal year. The Company now expects:
Additional expectations now include:
All other previously communicated aspects of the Company's fiscal year 2020 financial guidance and assumptions remain the same.
Dividend Declaration
The Company's Board of Directors declared a quarterly cash dividend of $0.42 per common share, payable June 1, 2020, to stockholders of record at the close of business on May 18, 2020.
New Share Repurchase Authorization
In May 2020, AmerisourceBergen's Board of Directors authorized a new share repurchase program allowing the Company to purchase up to $500 million of its outstanding shares of common stock, subject to market conditions. As of March 31, 2020, the Company had $68.8 million remaining under the share repurchase program authorized in October 2018.
Conference Call & Slide Presentation
The Company will host a conference call to discuss the results at 8:30 a.m. ET on May 7, 2020. A slide presentation for investors has also been posted on the Company's website at investor.amerisourcebergen.com. Participating in the conference call will be:
The dial-in number for the live call will be (866) 270-1533. From outside the United States, dial (412) 317-0797. No access code is required. The live call will also be webcast via the Company’s website at investor.amerisourcebergen.com. Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.
Replays of the call will be made available via telephone and webcast. A replay of the webcast will be posted on investor.amerisourcebergen.com approximately one hour after the completion of the call and will remain available for one year. The telephone replay will also be available approximately one hour after the completion of the call and will remain available for seven days. To access the telephone replay from within the U.S., dial (877) 344-7529. From Canada, dial (855) 669-9658. From outside the United States and Canada, dial (412) 317-0088. The access code for the replay is 10142230.
Upcoming Investor Events
AmerisourceBergen management will be participating in the following investor conference in the coming months:
Please check the website for updates regarding the timing of the live presentation webcasts, if any, and for replay information.
About AmerisourceBergen
AmerisourceBergen provides pharmaceutical products, value-driving services and business solutions that improve access to care. Tens of thousands of healthcare providers, veterinary practices and livestock producers trust us as their partner in the pharmaceutical supply chain. Global manufacturers depend on us for services that drive commercial success for their products. Through our daily work—and powered by our 22,000 associates—we are united in our responsibility to create healthier futures. AmerisourceBergen is ranked #10 on the Fortune 500, with more than $175 billion in annual revenue. The company is headquartered in Valley Forge, Pa. and has a presence in 50+ countries. Learn more at investor.amerisourcebergen.com.
AmerisourceBergen's Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained in this press release are "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. Words such as "expect," "likely," "outlook," "forecast," "would," "could," "should," "can," "project," "intend," "plan," "continue," "sustain," "synergy," "on track," "believe," "seek," "estimate," "anticipate," "may," "possible," "assume," variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated. Among the factors that could cause actual results to differ materially from those projected, anticipated, or implied are the following: unfavorable trends in brand and generic pharmaceutical pricing, including in rate or frequency of price inflation or deflation; competition and industry consolidation of both customers and suppliers resulting in increasing pressure to reduce prices for our products and services; changes in the United States healthcare and regulatory environment, including changes that could impact prescription drug reimbursement under Medicare and Medicaid; increasing governmental regulations regarding the pharmaceutical supply channel and pharmaceutical compounding; declining reimbursement rates for pharmaceuticals; continued federal and state government enforcement initiatives to detect and prevent suspicious orders of controlled substances and the diversion of controlled substances; continued prosecution or suit by federal, state and other governmental entities of alleged violations of laws and regulations regarding controlled substances, including due to failure to achieve a global resolution of the multi-district opioid litigation and other related state court litigation, and any related disputes, including shareholder derivative lawsuits; increased federal scrutiny and litigation, including qui tam litigation, for alleged violations of laws and regulations governing the marketing, sale, purchase and/or dispensing of pharmaceutical products or services, and associated reserves and costs; failure to comply with the Corporate Integrity Agreement; material adverse resolution of pending legal proceedings; the retention of key customer or supplier relationships under less favorable economics or the adverse resolution of any contract or other dispute with customers or suppliers; changes to customer or supplier payment terms, including as a result of the COVID-19 impact on such payment terms; risks associated with the strategic, long-term relationship between Walgreens Boots Alliance, Inc. and the Company, including principally with respect to the pharmaceutical distribution agreement and/or the global generic purchasing services arrangement; changes in tax laws or legislative initiatives that could adversely affect the Company's tax positions and/or the Company's tax liabilities or adverse resolution of challenges to the Company's tax positions; regulatory or enforcement action in connection with our former compounded sterile preparations (CSP) business or the related consent decree; managing foreign expansion, including non-compliance with the U.S. Foreign Corrupt Practices Act, anti-bribery laws, economic sanctions and import laws and regulations; financial market volatility and disruption; the loss, bankruptcy or insolvency of a major supplier, including as a result of COVID-19; substantial defaults in payment, material reduction in purchases by or the loss, bankruptcy or insolvency of a major customer, including as a result of COVID-19; financial and other impacts of COVID-19 on our operations or business continuity; changes to the customer or supplier mix; malfunction, failure or breach of sophisticated information systems to operate as designed; risks generally associated with data privacy regulation and the international transfer of personal data; natural disasters or other unexpected events that affect the Company’s operations; the impairment of goodwill or other intangible assets (including any additional impairments with respect to foreign operations), resulting in a charge to earnings; the acquisition of businesses that do not perform as expected, or that are difficult to integrate or control, or the inability to capture all of the anticipated synergies related thereto or to capture the anticipated synergies within the expected time period; the Company's ability to manage and complete divestitures; the disruption of the Company's cash flow and ability to return value to its stockholders in accordance with its past practices; interest rate and foreign currency exchange rate fluctuations; declining economic conditions in the United States and abroad; and other economic, business, competitive, legal, tax, regulatory and/or operational factors affecting the Company's business generally. Certain additional factors that management believes could cause actual outcomes and results to differ materially from those described in forward-looking statements are set forth (i) in Item 1A (Risk Factors), in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2019 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Three Months Ended March 31, 2020
% of Revenue
Three Months Ended March 31, 2019
% of Revenue
% Change
Revenue
$
47,417,639
$
43,319,602
9.5%
Cost of goods sold
46,029,532
41,894,846
9.9%
Gross profit 1
1,388,107
2.93%
1,424,756
3.29%
(2.6)%
Operating expenses:
Distribution, selling, and administrative 2
693,413
1.46%
628,036
1.45%
10.4%
Depreciation and amortization
93,795
0.20%
123,766
0.29%
(24.2)%
Employee severance, litigation, and other 3
67,732
55,389
Impairment of PharMEDium assets
223,652
570,000
Total operating expenses
1,078,592
2.27%
1,377,191
3.18%
(21.7)%
Operating income
309,515
0.65%
47,565
0.11%
550.7%
Other income 4
(1,109
)
(14,494
)
Interest expense, net
34,421
43,275
(20.5)%
Income before income taxes
276,203
0.58%
18,784
0.04%
1,370.4%
Income tax benefit 5
(694,908
)
(9,289
)
Net income
971,111
2.05%
28,073
0.06%
3,359.2%
Net income attributable to noncontrolling interest
(10,834
)
(938
)
Net income attributable to AmerisourceBergen Corporation
$
960,277
2.03%
$
27,135
0.06%
3,438.9%
Earnings per share:
Basic
$
4.68
$
0.13
3,500.0%
Diluted
$
4.64
$
0.13
3,469.2%
Weighted average common shares outstanding:
Basic
205,370
210,934
(2.6)%
Diluted
207,062
212,563
(2.6)%
________________________________________
1
Includes a $23.9 million LIFO expense, a $0.1 million gain from antitrust litigation settlements, and $5.0 million of PharMEDium shutdown costs in the three months ended March 31, 2020. Includes a $66.8 million LIFO credit, a $52.0 million gain from antitrust litigation settlements, and $12.3 million of PharMEDium remediation costs in the three months ended March 31, 2019.
2
Includes $27.5 million of PharMEDium shutdown costs and a $12.2 million adjustment to Profarma's estimate of contingent consideration related to the purchase price of one of its prior business acquisitions in the three months ended March 31, 2020.
3
Includes $25.0 million of employee severance, $30.8 million of litigation costs related to legal fees in connection with opioid lawsuits and investigations, and $11.9 million of other costs in connection with business transformation efforts, other restructuring initiatives, and acquisition-related deal and integration costs in the three months ended March 31, 2020. Includes $14.0 million of employee severance, $13.8 million of litigation costs related to legal fees in connection with opioid lawsuits and investigations, and $27.5 million of other costs in connection with acquisition-related deal and integration costs, business transformation efforts, and other restructuring initiatives in the three months ended March 31, 2019.
4
Includes a $13.7 million gain on the sale of an equity investment in the three months ended March 31, 2019.
5
Includes $741.0 million of discrete tax benefits primarily attributable to the income tax deductions resulting from the shutdown of the PharMEDium business in the three months ended March 31, 2020.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Six Months Ended March 31, 2020
% of Revenue
Six Months Ended March 31, 2019
% of Revenue
% Change
Revenue
$
95,282,381
$
88,712,054
7.4%
Cost of goods sold
92,663,060
85,989,718
7.8%
Gross profit 1
2,619,321
2.75%
2,722,336
3.07%
(3.8)%
Operating expenses:
Distribution, selling, and administrative 2
1,379,366
1.45%
1,284,621
1.45%
7.4%
Depreciation and amortization
198,310
0.21%
246,266
0.28%
(19.5)%
Employee severance, litigation, and other 3
107,041
96,061
Impairment of PharMEDium assets
361,652
570,000
Total operating expenses
2,046,369
2.15%
2,196,948
2.48%
(6.9)%
Operating income
572,952
0.60%
525,388
0.59%
9.1%
Other loss (income) 4
1,733
(11,397
)
Interest expense, net
65,428
85,445
(23.4)%
Income before income taxes
505,791
0.53%
451,340
0.51%
12.1%
Income tax (benefit) expense 5
(651,888
)
31,514
Net income
1,157,679
1.21%
419,826
0.47%
175.8%
Net (income) loss attributable to noncontrolling interest
(9,762
)
961
Net income attributable to AmerisourceBergen Corporation
$
1,147,917
1.20%
$
420,787
0.47%
172.8%
Earnings per share:
Basic
$
5.58
$
1.99
180.4%
Diluted
$
5.54
$
1.97
181.2%
Weighted average common shares outstanding:
Basic
205,693
211,503
(2.7)%
Diluted
207,293
213,275
(2.8)%
________________________________________
1
Includes a $37.1 million LIFO expense, an $8.5 million gain from antitrust litigation settlements, and $12.1 million of PharMEDium remediation and shutdown costs in the six months ended March 31, 2020. Includes a $139.3 million gain from antitrust litigation settlements, a $69.8 million LIFO credit, $30.2 million of PharMEDium remediation costs, and a $22.0 million reversal of a prior period assessment relating to the New York State Opioid Stewardship Act in the six months ended March 31, 2019.
2
Includes $36.5 million of PharMEDium remediation and shutdown costs and a $12.2 million adjustment to Profarma's estimate of contingent consideration related to the purchase price of one of its prior business acquisitions in the six months ended March 31, 2020.
3
Includes $25.8 million of employee severance, $55.5 million of litigation costs related to legal fees in connection with opioid lawsuits and investigations, and $25.7 million of other costs in connection with business transformation efforts, other restructuring initiatives, and acquisition-related deal and integration costs in the six months ended March 31, 2020. Includes $18.8 million of employee severance, $28.4 million of litigation costs related to legal fees in connection with opioid lawsuits and investigations, and $48.9 million of other costs in connection with acquisition-related deal and integration costs, business transformation efforts, and other restructuring initiatives in the six months ended March 31, 2019.
4
Includes a $13.7 million gain on the sale of an equity investment in the six months ended March 31, 2019.
5
Includes $741.0 million of discrete tax benefits primarily attributable to the income tax deductions resulting from the shutdown of the PharMEDium business in the six months ended March 31, 2020.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended March 31, 2020
Gross Profit
Operating Expenses
Operating Income
Income Before Income Taxes
Income Tax (Benefit) Expense
Net Income Attributable to Noncontrolling Interest
Net Income Attributable to ABC
Diluted Earnings Per Share
GAAP
$
1,388,107
$
1,078,592
$
309,515
$
276,203
$
(694,908
)
$
(10,834
)
$
960,277
$
4.64
Gain from antitrust litigation settlements
(54
)
—
(54
)
(54
)
(111
)
—
57
—
LIFO expense
23,853
—
23,853
23,853
5,972
—
17,881
0.09
PharMEDium shutdown costs
4,989
(27,481
)
32,470
32,470
8,107
—
24,363
0.12
Acquisition-related intangibles amortization
—
(26,670
)
26,670
26,670
6,894
(435
)
19,341
0.09
Employee severance, litigation, and other
—
(67,732
)
67,732
67,732
16,978
—
50,754
0.25
Impairment of PharMEDium assets
—
(223,652
)
223,652
223,652
56,156
—
167,496
0.81
Contingent consideration adjustment
—
12,153
(12,153
)
(12,153
)
(2,965
)
7,511
(1,677
)
(0.01
)
Certain discrete tax benefits 1
—
—
—
—
741,015
—
(741,015
)
(3.58
)
Adjusted Non-GAAP
$
1,416,895
$
745,210
$
671,685
$
638,373
$
137,138
$
(3,758
)
$
497,477
$
2.40
2
Adjusted Non-GAAP % change vs. prior year quarter
7.5
%
6.2
%
8.9
%
11.2
%
11.1
%
10.7
%
13.7
%
Percentages of Revenue:
GAAP
Adjusted Non-GAAP
Gross profit
2.93%
2.99%
Operating expenses
2.27%
1.57%
Operating income
0.65%
1.42%
________________________________________
1
Includes $741.0 million of discrete tax benefits primarily attributable to the income tax deductions resulting from the shutdown of the PharMEDium business.
2
The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
Three months ended March 31, 2019
Gross Profit
Operating Expenses
Operating Income
Income Before Income Taxes
Income Tax (Benefit) Expense
Net Income Attributable to Noncontrolling Interest
Net Income Attributable to ABC
Diluted Earnings Per Share
GAAP
$
1,424,756
$
1,377,191
$
47,565
$
18,784
$
(9,289
)
$
(938
)
$
27,135
$
0.13
Gain from antitrust litigation settlements
(51,976
)
—
(51,976
)
(51,976
)
(16,980
)
—
(34,996
)
(0.16
)
LIFO credit
(66,805
)
—
(66,805
)
(66,805
)
(17,137
)
—
(49,668
)
(0.23
)
PharMEDium remediation costs
12,334
(3,563
)
15,897
15,897
4,927
—
10,970
0.05
New York State Opioid Stewardship Act
—
—
—
—
(944
)
—
944
—
Acquisition-related intangibles amortization
—
(46,594
)
46,594
46,594
13,800
(437
)
32,357
0.15
Employee severance, litigation, and other
—
(55,389
)
55,389
55,389
7,474
—
47,915
0.23
Impairment of PharMEDium assets
—
(570,000
)
570,000
570,000
145,103
—
424,897
2.00
Gain on sale of an equity investment
—
—
—
(13,692
)
(3,485
)
—
(10,207
)
(0.05
)
Adjusted Non-GAAP
$
1,318,309
$
701,645
$
616,664
$
574,191
$
123,469
$
(1,375
)
$
449,347
$
2.11
1
Percentages of Revenue:
GAAP
Adjusted Non-GAAP
Gross profit
3.29%
3.04%
Operating expenses
3.18%
1.62%
Operating income
0.11%
1.42%
________________________________________
1
The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
Six Months Ended March 31, 2020
Gross Profit
Operating Expenses
Operating Income
Income Before Income Taxes
Income Tax (Benefit) Expense
Net Income Attributable to Noncontrolling Interest
Net Income Attributable to ABC
Diluted Earnings Per Share
GAAP
$
2,619,321
$
2,046,369
$
572,952
$
505,791
$
(651,888
)
$
(9,762
)
$
1,147,917
$
5.54
Gain from antitrust litigation settlements
(8,546
)
—
(8,546
)
(8,546
)
(2,085
)
—
(6,461
)
(0.03
)
LIFO expense
37,134
—
37,134
37,134
9,059
—
28,075
0.14
PharMEDium shutdown and remediation costs
12,124
(36,511
)
48,635
48,635
11,864
—
36,771
0.18
Acquisition-related intangibles amortization
—
(60,236
)
60,236
60,236
14,695
(871
)
44,670
0.22
Employee severance, litigation, and other
—
(107,041
)
107,041
107,041
26,114
—
80,927
0.39
Impairment of PharMEDium assets
—
(361,652
)
361,652
361,652
88,227
—
273,425
1.32
Contingent consideration adjustment
—
12,153
(12,153
)
(12,153
)
(2,965
)
7,511
(1,677
)
(0.01
)
Certain discrete tax benefits 1
—
—
—
—
741,015
—
(741,015
)
(3.57
)
Adjusted Non-GAAP
$
2,660,033
$
1,493,082
$
1,166,951
$
1,099,790
$
234,036
$
(3,122
)
$
862,632
$
4.16
2
Adjusted Non-GAAP % change vs. prior year period
5.5
%
4.2
%
7.2
%
9.9
%
12.3
%
8.9
%
11.8
%
Percentages of Revenue:
GAAP
Adjusted Non-GAAP
Gross profit
2.75%
2.79%
Operating expenses
2.15%
1.57%
Operating income
0.60%
1.22%
________________________________________
1
Includes $741.0 million of discrete tax benefits primarily attributable to the income tax deductions resulting from the shutdown of the PharMEDium business.
2
The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
Six Months Ended March 31, 2019
Gross Profit
Operating Expenses
Operating Income
Income Before Income Taxes
Income Tax Expense
Net Loss Attributable to Noncontrolling Interest
Net Income Attributable to ABC
Diluted Earnings Per Share
GAAP
$
2,722,336
$
2,196,948
$
525,388
$
451,340
$
31,514
$
961
$
420,787
$
1.97
Gain from antitrust litigation settlements
(139,255
)
—
(139,255
)
(139,255
)
(35,450
)
—
(103,805
)
(0.49
)
LIFO credit
(69,834
)
—
(69,834
)
(69,834
)
(17,778
)
—
(52,056
)
(0.24
)
PharMEDium remediation costs
30,245
(6,147
)
36,392
36,392
9,264
—
27,128
0.13
New York State Opioid Stewardship Act
(22,000
)
—
(22,000
)
(22,000
)
(5,600
)
—
(16,400
)
(0.08
)
Acquisition-related intangibles amortization
—
(91,746
)
91,746
91,746
23,355
(943
)
67,448
0.32
Employee severance, litigation, and other
—
(96,061
)
96,061
96,061
24,454
—
71,607
0.34
Impairment of PharMEDium assets
—
(570,000
)
570,000
570,000
145,103
—
424,897
1.99
Gain on sale of an equity investment
—
—
—
(13,692
)
(3,485
)
—
(10,207
)
(0.05
)
Tax reform 1
—
—
—
—
36,997
—
(36,997
)
(0.17
)
Adjusted Non-GAAP
$
2,521,492
$
1,432,994
$
1,088,498
$
1,000,758
$
208,374
$
18
$
792,402
$
3.72
Percentages of Revenue:
GAAP
Adjusted Non-GAAP
Gross profit
3.07%
2.84%
Operating expenses
2.48%
1.62%
Operating income
0.59%
1.23%
________________________________________
1
Includes a measurement period adjustment of the one-time transition tax on historical foreign earnings and profits through December 31, 2017.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three months ended March 31,
Revenue
2020
2019
% Change
Pharmaceutical Distribution Services
$
45,562,670
$
41,676,164
9.3%
Other
1,876,593
1,665,429
12.7%
Intersegment eliminations
(21,624
)
(21,991
)
Revenue
$
47,417,639
$
43,319,602
9.5%
Three months ended March 31,
Operating income
2020
2019
% Change
Pharmaceutical Distribution Services
$
563,097
$
517,034
8.9%
Other
108,260
99,879
8.4%
Intersegment eliminations
328
(249
)
Total segment operating income
671,685
616,664
8.9%
Gain from antitrust litigation settlements
54
51,976
LIFO (expense) credit
(23,853
)
66,805
PharMEDium shutdown and remediation costs
(32,470
)
(15,897
)
Acquisition-related intangibles amortization
(26,670
)
(46,594
)
Employee severance, litigation, and other
(67,732
)
(55,389
)
Impairment of PharMEDium assets
(223,652
)
(570,000
)
Contingent consideration adjustment
12,153
—
Operating income
$
309,515
$
47,565
Percentages of revenue:
Pharmaceutical Distribution Services
Gross profit
2.32%
2.38%
Operating expenses
1.08%
1.14%
Operating income
1.24%
1.24%
Other
Gross profit
19.15%
19.60%
Operating expenses
13.38%
13.60%
Operating income
5.77%
6.00%
AmerisourceBergen Corporation (GAAP)
Gross profit
2.93%
3.29%
Operating expenses
2.27%
3.18%
Operating income
0.65%
0.11%
AmerisourceBergen Corporation (Non-GAAP)
Adjusted gross profit
2.99%
3.04%
Adjusted operating expenses
1.57%
1.62%
Adjusted operating income
1.42%
1.42%
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Six Months Ended March 31,
Revenue
2020
2019
% Change
Pharmaceutical Distribution Services
$
91,599,498
$
85,420,545
7.2%
Other
3,723,577
3,336,367
11.6%
Intersegment eliminations
(40,694
)
(44,858
)
Revenue
$
95,282,381
$
88,712,054
7.4%
Six Months Ended March 31,
Operating income
2020
2019
% Change
Pharmaceutical Distribution Services
$
954,791
$
890,241
7.3%
Other
212,739
198,813
7.0%
Intersegment eliminations
(579
)
(556
)
Total segment operating income
1,166,951
1,088,498
7.2%
Gain from antitrust litigation settlements
8,546
139,255
LIFO (expense) credit
(37,134
)
69,834
PharMEDium shutdown and remediation costs
(48,635
)
(36,392
)
New York State Opioid Stewardship Act
—
22,000
Acquisition-related intangibles amortization
(60,236
)
(91,746
)
Employee severance, litigation, and other
(107,041
)
(96,061
)
Impairment of PharMEDium assets
(361,652
)
(570,000
)
Contingent consideration adjustment
12,153
—
Operating income
$
572,952
$
525,388
Percentages of revenue:
Pharmaceutical Distribution Services
Gross profit
2.13%
2.19%
Operating expenses
1.09%
1.15%
Operating income
1.04%
1.04%
Other
Gross profit
19.08%
19.53%
Operating expenses
13.37%
13.57%
Operating income
5.71%
5.96%
AmerisourceBergen Corporation (GAAP)
Gross profit
2.75%
3.07%
Operating expenses
2.15%
2.48%
Operating income
0.60%
0.59%
AmerisourceBergen Corporation (Non-GAAP)
Adjusted gross profit
2.79%
2.84%
Adjusted operating expenses
1.57%
1.62%
Adjusted operating income
1.22%
1.23%
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 31,
September 30,
2020
2019
ASSETS
Current assets:
Cash and cash equivalents
$
3,691,938
$
3,374,194
Accounts receivable, net
14,210,170
12,386,879
Inventories
11,102,566
11,060,254
Right to recover asset
1,301,108
1,147,483
Income tax receivable
699,494
5,859
Prepaid expenses and other
175,374
157,385
Total current assets
31,180,650
28,132,054
Property and equipment, net
1,421,768
1,770,516
Goodwill and other intangible assets
8,639,581
9,000,343
Other long-term assets
800,263
269,067
Total assets
$
42,042,262
$
39,171,980
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
30,719,987
$
28,385,074
Other current liabilities
868,996
1,057,208
Short-term debt
522,807
139,012
Total current liabilities
32,111,790
29,581,294
Long-term debt
3,622,387
4,033,880
Accrued income taxes
279,403
284,075
Deferred income taxes
1,843,910
1,860,195
Other long-term liabilities
479,659
419,330
Total equity
3,705,113
2,993,206
Total liabilities and equity
$
42,042,262
$
39,171,980
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended March 31,
2020
2019
Operating Activities:
Net income
$
1,157,679
$
419,826
Adjustments to reconcile net income to net cash provided by operating activities 1
643,981
820,403
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Accounts receivable
(2,052,216
)
(880,805
)
Inventories
(152,359
)
(420,190
)
Accounts payable
2,395,847
1,350,728
Other 2
(997,225
)
(186,630
)
Net cash provided by operating activities
995,707
1,103,332
Investing Activities:
Capital expenditures
(144,382
)
(161,488
)
Cost of equity investments and acquired companies, net of cash acquired
(30,580
)
(52,398
)
Other
7,162
2,659
Net cash used in investing activities
(167,800
)
(211,227
)
Financing Activities:
Net borrowings (repayments)
947
(16,017
)
Purchases of common stock 3
(407,152
)
(347,959
)
Exercises of stock options
76,757
37,590
Cash dividends on common stock
(170,541
)
(170,428
)
Other
(10,174
)
(12,057
)
Net cash used in financing activities
(510,163
)
(508,871
)
Increase in cash and cash equivalents
317,744
383,234
Cash and cash equivalents at beginning of period
3,374,194
2,492,516
Cash and cash equivalents at end of period
$
3,691,938
$
2,875,750
________________________________________
1
Includes a LIFO expense of $37.1 million and an impairment of PharMEDium assets of $361.7 million in the six months ended March 31, 2020. Includes a LIFO credit of $69.8 million and an impairment of PharMEDium assets of $570.0 million in the six months ended March 31, 2019.
2
Includes a $693.6 million increase in income tax receivable for the six months ended March 31, 2020 primarily as a result of recognizing certain discrete tax benefits.
3
Purchases of common stock in the six months ended March 31, 2020 includes $14.8 million of September 2019 purchases that cash settled in October 2019. Purchases of common stock in the six months ended March 31, 2019 includes $24.0 million of September 2018 purchases that cash settled in October 2018.
SUPPLEMENTAL INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses the non-GAAP financial measures described below. The non-GAAP financial measures should be viewed in addition to, and not in lieu of, financial measures calculated in accordance with GAAP. These supplemental measures may vary from, and may not be comparable to, similarly titled measures by other companies.
The non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company’s operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The presented non-GAAP financial measures exclude items that management does not believe reflect the Company’s core operating performance because such items are outside the control of the Company or are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. We have included the following non-GAAP earnings-related financial measures in this release:
In addition, the Company has provided non-GAAP fiscal year 2020 guidance for diluted earnings per share, operating expense, operating income, and effective income tax rate that excludes the same or similar items as those that are excluded from the historical non-GAAP financial measures, as well as significant items that are outside the control of the Company or inherently unusual, non-operating, unpredictable, non-recurring or non-cash in nature. In addition, it has provided fiscal year 2020 adjusted free cash flow guidance. For fiscal year 2020, we have defined the non-GAAP financial measure of adjusted free cash flow as net cash provided by operating activities, excluding other significant unpredictable or non-recurring cash payments or receipts relating to legal settlements, minus capital expenditures. For the six months ended March 31, 2020 adjusted free cash flow of $909.4 million consisted of net cash provided by operating activities of $995.7 million, plus $66.7 million in cash payments made relating to unfavorable legal settlements, minus $8.5 million in cash payments received related to favorable legal settlements, and minus capital expenditures of $144.4 million. The Company does not provide forward looking guidance on a GAAP basis for such metrics because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, LIFO expense (credit) is largely dependent upon the future inflation or deflation of brand and generic pharmaceuticals, which is out of the Company’s control, and acquisition-related intangibles amortization depends on the timing and amount of future acquisitions, which cannot be reasonably estimated. Similarly, the timing and amount of litigation settlements is unpredictable and non-recurring.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200507005132/en/
Bennett S. Murphy Senior Vice President, Investor Relations 610-209-5691 bmurphy@amerisourcebergen.com
1 Year AmerisourceBergen Chart |
1 Month AmerisourceBergen Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions