AmerisourceBergen Expects Diluted Earnings Per Share to Be Between $3.95 and $4.05 for FY 2004, Excluding Special Items, and Between $4.20 and $4.30 for FY 2005.VALLEY FORGE Valley Forge, on the Schuylkill River, SE Pa., NW of Philadelphia. There, during the American Revolution, the main camp of the Continental Army was established (Dec., 1777–June, 1778) under the command of Gen. George Washington. , Pa. -- AmerisourceBergen Corporation (NYSE NYSE See: New York Stock Exchange :ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. ), a leading pharmaceutical services company, today announced that, due to lower than anticipated pharmaceutical price increases in the September quarter of 2004, it expects earnings per diluted share for the fiscal year ended September 30, 2004 to be between $3.95 and $4.05, excluding special items. The Company also announced that it anticipates diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for fiscal 2005 to be between $4.20 and $4.30. Fiscal 2005 to fiscal 2004 comparisons are expected to be weakest in the first part of the year, with the September quarter of fiscal 2005 expected to post a diluted earnings per share increase of 15 percent or more over the same quarter in 2004. "We are clearly disappointed in our fiscal 2004 performance in what has been a challenging time for our industry," said R. David Yost David Harold Yost (born January 7, 1969) is an American actor known for his role on the television series Mighty Morphin Power Rangers. Biography Early life , AmerisourceBergen's Chief Executive Officer. "We are taking actions now to improve results and position AmerisourceBergen for what we believe is a bright future. We will provide added detail on fiscal 2004 when we report our full results on November 2, 2004. "Our guidance for fiscal 2005 is based on our recently completed detailed budgeting process, and reflects the expectation that the U.S. pharmaceutical market will grow at a low double-digit rate including price appreciation for the fiscal year of approximately 5 percent. Operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for fiscal 2005 are anticipated to be approximately the same as in fiscal 2004, with our share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program and expected lower interest expense providing the anticipated diluted earnings per share growth in fiscal 2005. Our continued discipline in capital management is expected to deliver strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of $375 million to $475 million in fiscal 2005." On August 13, 2004, AmerisourceBergen announced a $500 million common stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. Through September 30, 2004, the Company has used approximately $145 million to repurchase outstanding shares of common stock. AmerisourceBergen expects to complete the remaining portion of the program by the end of fiscal year 2005. "Our expectations continue to reflect the impact of the Veterans Administration and AdvancePCS account losses in 2004 and the potential impact on our physician customers of the new Medicare drug reimbursement regulations," Yost explained. "Our Specialty Group, which includes our physician customers, is expected to grow in line with the U.S. pharmaceutical market. "The PharMerica segment, which includes our institutional pharmacy to long term care and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. businesses, is expected to grow revenue in fiscal 2005 at a high single-digit rate with operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. slightly below fiscal 2004 levels, as we confront a increasingly competitive market and invest significant capital. We expect to invest more than $30 million in the segment to consolidate operations and add new customer-interface technology designed to improve our competitive advantage and position these businesses for future growth. "Total capital expenditures for the Company are expected to be between $175 million and $200 million in fiscal 2005 as we continue to implement our Optmiz(TM) program. The Optimiz program is our multi-year effort to create a distribution center network that will position us as the low-cost leader and provide ample capacity for the accelerated industry growth following the 2006 implementation of the Medicare Modernization Act. During fiscal 2005, we expect to open new, large, state-of-the-art distribution centers in Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. ; Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. ; and Chicago, Illinois, as well as consolidate an additional four distribution centers. We expect to have a total of 32 distribution centers at the end of the fiscal year in our drug distribution business, down from 51 in fiscal 2001." "While fiscal 2005 will be a challenging year for AmerisourceBergen, we remain excited about the growth opportunities in pharmaceutical services and will continue to invest in our current businesses," Yost said. "Although our fiscal 2005 guidance includes no acquisitions, we will continue to pursue our disciplined acquisition strategy." About AmerisourceBergen AmerisourceBergen (NYSE:ABC) is one of the largest pharmaceutical services companies in the United States. Servicing both pharmaceutical manufacturers and healthcare providers in the pharmaceutical supply channel, the Company provides drug distribution and related services designed to reduce costs and improve patient outcomes. AmerisourceBergen's service solutions range from pharmacy automation, bedside medication safety systems, and pharmaceutical packaging to pharmacy services for skilled nursing and assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. facilities, reimbursement and pharmaceutical consulting services, and physician education. With more than $47 billion in 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. operating revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs more than 14,000 people. AmerisourceBergen is ranked #22 on the Fortune 500 list. For more information, go to www.amerisourcebergen.com. FORWARD-LOOKING STATEMENTS This news release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. Forward-looking statements may include statements addressing future financial and operating results of AmerisourceBergen and the benefits and other aspects of the 2001 merger between AmeriSource Health Corporation and Bergen Brunswig Corporation. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: competitive pressures; the loss of one or more key customer relationships; customer insolvencies; changes in customer mix; changes in pharmaceutical manufacturers' pricing and distribution policies; regulatory changes; changes in U.S. government policies; failure to integrate the businesses of AmeriSource and Bergen Brunswig successfully; failure to obtain and retain expected synergies from the merger of AmeriSource and Bergen Brunswig; and other economic, business, competitive, regulatory and/or operational factors affecting the business of AmerisourceBergen generally. More detailed information about these factors is set forth in AmerisourceBergen's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal 2003. AmerisourceBergen is under no obligation to (and expressly disclaims any such obligation to) update or alter any forward looking statements whether as a result of new information, future events or otherwise. |
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