[0] Bindley Western Industries, Inc. Changing Method of Accounting for Its 1999 Acquisition of Central Pharmacy Services; To Take Annual Non-Cash Charge.Business Editors & Health/Medical Writers REPEATING... INDIANAPOLIS--(BW HealthWire)--Nov. 14, 2000 Bindley Western Industries, Inc. (NYSE NYSE See: New York Stock Exchange :BDY BDY Body BDY Boundary ) announced today that it was delaying the filing of its quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2000 to permit a restatement of its financial statements to account for its August 31, 1999 acquisition of Central Pharmacy Services under the purchase method of accounting. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Bindley Western's Executive Vice President and Chief Financial Officer, Thomas J. Salentine, "our independent accountants have advised us that a cash dividend contractually required to be paid to preferred shareholders of Central Pharmacy Services immediately prior to the acquisition may have made the pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. method of accounting unavailable for the Central Pharmacy Services acquisition. For this reason, Bindley Western has delayed the filing of its 10-Q pending completion of a restatement of our financial statements for 1997, 1998, 1999 and the first two quarters of 2000 to account for the Central Pharmacy Services acquisition as a purchase. The restatement will result in an annual non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to our earnings reflecting the amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. associated with the transaction. Additionally, the operations of Central Pharmacy Services would be eliminated from Bindley Western's financial statements prior to the date of the acquisition. Bindley Western issued 2.9 million shares of common stock and options to acquire 300,000 additional shares with a total value of approximately $55 million in the Central Pharmacy Services transaction. The restatement will not reflect any other accounting or operational issues. We expect to file the third quarter 10-Q on or before November 20, 2000 and shortly thereafter amend our other affected periodic reports." Mr. Salentine will host a conference call on Wednesday morning, November 15, 2000, at 8:00 a.m. (Eastern Time) to discuss the restatement. The call will be broadcast both live and for a two-week period over the Internet. Participants will be able to access the live call as well as the replay at the "Investor Info" page on Bindley Western's website at www.bindley.com. Certain information in this press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in Section 27A of the Securities Act and 21E of the Exchange Act. Certain factors could cause actual results to differ materially from those in the forward-looking statements. The most significant of such uncertainties are described in the Company's Forms 10-K, 10-Q and 8-K and in exhibits to those reports. Indianapolis-based Bindley Western, with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of $10 billion, is a Fortune 500 company that provides a synergistic array of cost effective pharmaceutical and supply channel management products and services from 17 distribution facilities located in 14 states and from 32 specialty pharmacies located in 15 states. Customers include independent drug stores, chain drug stores, supermarkets and mass retailers with their own pharmacies, hospitals, clinics, HMO's, and managed care organizations, all of which are dedicated to lowering the cost of healthcare and improving the quality of patient care. Information on Bindley Western is available on-line at www.bindley.com. Information on Central Pharmacy Services is available on-line at www.centralpharmacy.com. |
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