AmerisourceBergen Reports Quarterly and Year-End Results, Including Strong Cash Flow from Operations, and Affirms Guidance for Fiscal 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. -- Company Generates $825 Million in Cash from Operations in Fiscal 2004 AmerisourceBergen AmerisourceBergen NYSE: ABC is a Chesterbrook, PA based Drug Wholesale company that was formed by the merger of Bergen Brunswig and AmeriSource in 2001. They provide drug distribution and related services designed to reduce costs and improve patient outcomes, distribute a line 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. ) today reported results for its fiscal fourth quarter and year ended September September: see month. 30, 2004. The following results are presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Fiscal Fourth Quarter Highlights --Diluted earnings per share of $0.81, including special charges of $0.01, down 22 percent. --Operating Revenue of $12.1 billion, up 4 percent. --Cash flow from operations of $164 million. --Record low interest expense of $23.5 million. --Record low total debt to total capital ratio of 24.9 percent. Fiscal Year Highlights --Diluted earnings per share of $4.06, including net special items of $0.03, up 4 percent. --Operating Revenue of $48.9 billion, up 7 percent. --Net income of $468.4 million, up 6 percent. --Cash flow from operations of $825 million. "We are disappointed with our performance for the quarter and the year, as a lack of price increases in the quarter and the loss of a major customer in the June June: see month. quarter significantly reduced earnings," 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. "However, our disciplined working capital management delivered excellent cash generation and the strongest balance sheet in our history. Net of two large customer losses in fiscal 2004, our Company is building positive momentum, and we anticipate returning to our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. 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 growth target by the September quarter of 2005. We remain enthusiastic about our future, and see excellent opportunities as we complete our new distribution network and look to leverage the added pharmaceutical utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of the Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. Modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, Act in 2006." Discussion of Results AmerisourceBergen's 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. was $12.1 billion in the fourth quarter of fiscal 2004 compared to $11.7 billion for the same period last year, a 4 percent increase. Bulk deliveries in the quarter increased 37 percent to $1.2 billion. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: 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. in the quarter declined 26 percent to $171.6 million. Lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in both reported segments were unable to offset the impact of fewer manufacturer drug price increases in the pharmaceutical distribution segment and competitive pressure in both the pharmaceutical distribution and PharMerica PharMerica is a publicly-traded Fortune 1000 company formed in January 2007 from the merger of Kindred Healthcare's pharmacy business with a subsidiary of AmerisourceBergen. segments. Interest expense in the fourth quarter of fiscal 2004 was a record low $23.5 million compared to $34.7 million in the prior year's fourth quarter, a 32 percent decrease driven by significantly lower average inventory levels in the quarter. Diluted earnings per share for the fourth quarter of fiscal 2004 were $0.81, a decrease of 22 percent compared to the $1.04 in the prior year's fourth quarter. Included in the fiscal 2004 fourth quarter results is a $1.3 million charge, net of tax, related to facility consolidation and employee severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs. The previous fiscal year's fourth quarter included a similar $1.5 million charge, net of tax. The earnings per share impact of these items was a decrease of $0.01 in each fiscal fourth quarter. As of September 30, 2004 the Company had completed $145 million of its $500 million 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 as of today the program is approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 80 percent complete. Operating revenue in fiscal 2004 increased 7 percent to $48.9 billion from $45.5 billion in the previous fiscal year. Bulk deliveries to customer warehouses were up 5 percent to $4.3 billion. Consolidated operating income for fiscal 2004 increased 1 percent to $890.4 million as the reduction in operating expenses offset a decline of 3 percent in gross profit. For the fiscal year ended September 30, 2004, diluted earnings per share were $4.06, a 4 percent increase over the $3.89 in the previous fiscal year. The net impact of the gain from an antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement and charges related to the early retirement of debt and facility consolidations and employee severance costs in fiscal 2004 increased earnings per share by $0.03. Charges related to early retirement of debt and facility consolidations and employee severance costs in fiscal year 2003 decreased earnings per share by $0.07. Cash generated from operations in fiscal 2004 was $825 million compared to $355 million last fiscal year. The Company's total debt to total capital ratio was a record low 24.9 percent. "With tough market and industry conditions, fiscal 2004 was below our standard," said Kurt Kurt is a given name. Its principal English variant is Curt, while others include Cord, Curd, and Kort. It originated as a short form of Curtis, Konrad (Conrad), and Kunibert. J. Hilzinger, AmerisourceBergen's President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "As one would expect, significant activities are underway to improve performance and better position us for the years ahead. "During fiscal 2004, we continued to expand our offerings in pharmaceutical services. Our Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. Group was a bright spot in the year, with revenues exceeding $5.5 billion for the first time and commercialization services continuing to expand. Our Technology Group and Packaging Group gained traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. with the introduction of a number of new products and services. "In the Drug Corporation, we continued to build our new distribution center network. The program remains on schedule and on budget. Our new Sacramento, California “Sacramento” redirects here. For other uses, see Sacramento (disambiguation). Sacramento is the capital of the State of California and the county seat of Sacramento County. , and 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. , facilities are fully operational. We anticipate having all of our six new distribution centers completed in 2006, and now expect to have less than 30 distribution centers in our final network configuration. Coupled with our new warehouse management system, the new network will drive additional cost savings and improved customer service in the years ahead." "In our PharMerica segment, we continue to face a difficult competitive pricing environment with revenue down for the year due to customer losses last fall. However, operational discipline and expense reduction drove operating income up and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was well to over 7 percent for the year," said Hilzinger. Segment Review AmerisourceBergen operates in two segments: Pharmaceutical Distribution (which includes the operations of AmerisourceBergen Drug Corporation and the AmerisourceBergen Specialty, Packaging and Technology groups) and PharMerica (which includes the long term care pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. 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. fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. businesses). Intersegment sales of $225.7 million in the fourth quarter of fiscal 2004 from AmerisourceBergen Drug Corporation to PharMerica, which are included in the Pharmaceutical Distribution segment operating revenue, are eliminated for consolidated reporting purposes. Pharmaceutical Distribution Segment Operating revenue in the fourth quarter of fiscal 2004 increased to $12.0 billion compared with $11.5 billion in the fourth quarter of fiscal year 2003, a 4 percent increase. In May, the Company stopped servicing the Department of Veterans Affairs Veterans Affairs is a term of the business that deals with the relation between a government and its veteran communities, usually administered by the designated government agency. (VA) pharmaceutical distribution contract and in August stopped supplying Advance PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. , a pharmacy benefits manager acquired by a competitor that was not an AmerisourceBergen customer. The contract losses reduced sales 10 percent in the quarter, lowering the segment's overall revenue growth rate. Lower price appreciation and a strong competitive environment, including the VA impact, also reduced gross and operating margins in the quarter. The Company recorded a LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack credit of $27 million in the quarter, compared to a $14 million credit in the same quarter of the prior year, due to the significantly fewer price increases in the quarter. Pharmaceutical Distribution customer mix in the fourth quarter of fiscal 2004 was 56 percent institutional and 44 percent retail. Operating revenue from retail customers grew faster than operating revenue from institutional customers, which includes mail order and alternate alternate /al·ter·nate/ (awl´ter-nit) 1. following in turns. 2. pertaining to every other one in a series. 3. occurring in place of another; acting as a substitute. site facilities, hospitals and specialty pharmaceutical customers. AmerisourceBergen Specialty Group  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . continued its excellent performance. The Group continues to build on its leadership position in the distribution of products and services to physicians in numerous disease states, including its industry leading position in oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. . The Group also continues to grow its manufacturer services businesses, including third party logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. , reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. consulting and physician education. AmerisourceBergen Packaging Group, which includes product packaging for manufacturers and repackaging for healthcare providers, added capacity and new customers in the quarter. The Company's Technology Group, which provides pharmacy automation and patient safety solutions to healthcare providers, continued to build its order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. . For the segment, gross profit as a percentage of operating revenue in the fourth quarter of fiscal 2004 was 3.14 percent, compared to 3.86 percent in the same period in the prior fiscal year. Total operating expenses as a percentage of operating revenue in the fourth quarter of fiscal 2004 were 1.98 percent, an 11 basis point improvement over the same quarter last year. Operating income was $140.0 million in the fourth quarter of fiscal 2004, a 31 percent decline from $204.0 million for the same quarter last year, and as a percentage of operating revenue, was 1.17 percent, a 60 basis point decrease from the fourth quarter of fiscal 2003. PharMerica PharMerica's operating revenue for the fourth quarter of fiscal 2004 was $390.4 million, compared with $408.4 million in the previous year's fourth quarter reflecting the previously announced loss of several customers last fall and a competitive pricing environment. Operating income for the fourth quarter of fiscal 2004 was $33.8 million, up 17 percent from $28.9 million for the same quarter last year due to a $26 million decline in operating expenses. Lower expenses were in part the result of a $12 million reduction in sales and use tax Sales and use tax refers to:
n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reductions and a reduction in bad debt expense also reduced expenses in the segment. Looking To Fiscal 2005 "Our expectations and assumptions for fiscal 2005 remain unchanged from our announcement on October October: see month. 5, 2004," said Yost. "We anticipate operating revenue and operating income to be essentially flat for fiscal 2005, and diluted earnings per share for fiscal 2005 of 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. Our guidance is based on low double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth for the U.S. pharmaceutical market, including approximately 5 percent in price appreciation in the fiscal year." Conference Call The Company will host a conference call to discuss its results at 11:00 a.m. Eastern Standard Time on November November: see month. 2, 2004. Participating in the conference call will be: R. David Yost, Chief Executive Officer; Kurt J. Hilzinger, President and Chief Operating Officer; and Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. D. DiCandilo, Senior Vice President and Chief Financial Officer. To access the live conference call via telephone: Dial in: (612) 326-1011, no access code required. To access the live webcast: Go to the Quarterly Webcasts section on the Investor Relations Investor relations The process by which the corporation communicates with its investors. page at http://www.amerisourcebergen.com. A replay of the telephone call and webcast will be available from 3:00 p.m. November 2, 2004 until 11:59 p.m. November 9, 2004. The Webcast replay will be available for 30 days. To access the replay via telephone:
Dial in: (800) 475-6701 from within the U.S., access code: 746975
(320) 365-3844 from outside the U.S., access code: 746975
To access the archived webcast: Go to the Quarterly Webcasts section on the Investor Relations page at http://www.amerisourcebergen.com. About AmerisourceBergen AmerisourceBergen (NYSE:ABC) is one of the largest pharmaceutical services companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . 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 medication /med·i·ca·tion/ (med?i-ka´shun) 1. medicine (1). 2. impregnation with a medicine. 3. administration of a medicine or other remedy. 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 Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , and physician education. With more than $48 billion in 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 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. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results may vary materially from the expectations contained in the forward-looking statements. Forward-looking statements may include statements addressing AmerisourceBergen's future financial and operating results. 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 or practices; regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes; changes in U.S. government policies (including changes in government policies pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to drug reimbursement); changes in market interest rates; and other economic, business, competitive, regulatory and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. 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.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Three Three
Months Ended Months Ended
September % of September % of
30, Operating 30, Operating %
2004 Revenue 2003 Revenue Change
------------ --------- ------------ --------- ------
Revenue:
Operating
revenue $12,145,286 100.00% $11,733,254 100.00% 4%
Bulk deliveries
to customer
warehouses 1,243,388 906,329 37%
------------ ------------
Total revenue 13,388,674 12,639,583
Cost of goods
sold 12,894,843 12,055,417 7%
------------ ------------
Gross profit 493,831 4.07% 584,166 4.98% -15%
Operating
expenses:
Distribution,
selling and
administrative 299,539 2.47% 330,934 2.82% -9%
Depreciation and
amortization 20,524 0.17% 20,313 0.17% 1%
Facility
consolidations
and employee
severance 2,198 0.02% 2,426 0.02% -9%
------------ ------------
Operating income 171,570 1.41% 230,493 1.96% -26%
Other
(income)/loss (251) 0.00% 457 0.00% N/A
Interest expense 23,482 0.19% 34,726 0.30% -32%
------------ ------------
Income before
taxes 148,339 1.22% 195,310 1.66% -24%
Income taxes 56,350 0.46% 75,780 0.65% -26%
------------ ------------
Net income $91,989 0.76% $119,530 1.02% -23%
============ ============
Earnings per
share:
Basic $0.83 $1.07 -22%
Diluted $0.81 $1.04 -22%
Weighted average
common shares
outstanding:
Basic 110,962 111,503
Diluted 116,991 117,896
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Fiscal Fiscal
Year Ended Year Ended
September % of September % of
30, Operating 30, Operating %
2004 Revenue 2003 Revenue Change
--------------------- ------------ -----------------
Revenue:
Operating
revenue $48,870,615 100.00% $45,536,689 100.00% 7%
Bulk deliveries
to customer
warehouses 4,308,339 4,120,639 5%
------------ ------------
Total revenue 53,178,954 49,657,328
Cost of goods
sold 50,999,772 47,410,169 8%
------------ ------------
Gross profit 2,179,182 4.46% 2,247,159 4.93% -3%
Operating
expenses:
Distribution,
selling and
administrative 1,205,465 2.47% 1,284,132 2.82% -6%
Depreciation and
amortization 75,766 0.16% 70,991 0.16% 7%
Facility
consolidations
and employee
severance 7,517 0.02% 8,930 0.02% -16%
------------ ------------
Operating income 890,434 1.82% 883,106 1.94% 1%
Other
(income)/loss (6,236) -0.01% 8,015 0.02% N/A
Interest expense 112,705 0.23% 144,744 0.32% -22%
Loss on early
retirement of
debt 23,592 0.05% 4,220 0.01% 459%
------------ ------------
Income before
taxes 760,373 1.56% 726,127 1.59% 5%
Income taxes 291,983 0.60% 284,898 0.63% 2%
------------ ------------
Net income $468,390 0.96% $441,229 0.97% 6%
============ ============
Earnings per
share:
Basic $4.20 $4.03 4%
Diluted $4.06 $3.89 4%
Weighted average
common shares
outstanding:
Basic 111,617 109,513
Diluted 117,779 115,954
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
September 30, September 30,
2004 2003
------------- --------------
Current assets:
Cash and cash equivalents $871,343 $800,036
Accounts receivable, net 2,260,973 2,295,437
Merchandise inventories 5,135,830 5,733,837
Prepaid expenses and other 27,243 29,208
------------- --------------
Total current assets 8,295,389 8,858,518
Long-term assets 3,358,614 3,181,607
------------- --------------
Total assets $11,654,003 $12,040,125
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,947,037 $5,393,769
Current portion of long-term debt 181,360 61,430
Other current liabilities 875,511 800,903
------------- --------------
Total current liabilities 6,003,908 6,256,102
Long-term debt, less current portion 1,257,111 1,722,724
Other liabilities 53,939 55,982
Stockholders' equity 4,339,045 4,005,317
------------- --------------
Total liabilities and stockholders'
equity $11,654,003 $12,040,125
============= ==============
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Fiscal Fiscal
Year Ended Year Ended
September 30, September 30,
2004 2003
------------- -------------
Operating Activities:
Net income $468,390 $441,229
Non-cash items 151,460 271,192
Changes in operating assets and
liabilities 205,231 (357,606)
------------- -------------
Net cash provided by operating activities 825,081 354,815
------------- -------------
Investing Activities:
Capital expenditures (189,278) (90,554)
Cost of acquired companies, net of cash
acquired, and other (68,546) (111,255)
Proceeds from sale-leaseback transaction 15,602 -
------------- -------------
Net cash used in investing activities (242,222) (201,809)
------------- -------------
Financing Activities:
Net long-term debt repayments (368,425) (38,989)
Exercise of stock options 15,151 42,564
Cash dividends on common stock (11,197) (10,995)
Treasury shares purchased (144,756) -
Other (2,325) (8,890)
------------- -------------
Net cash used in financing activities (511,552) (16,310)
------------- -------------
Increase in cash and cash equivalents 71,307 136,696
Cash and cash equivalents at beginning of
period 800,036 663,340
------------- -------------
Cash and cash equivalents at end of period $871,343 $800,036
============= =============
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
-----------------------------------
Operating Revenue 2004 2003 % Change
---------------------------------- ------------ ------------ ---------
Pharmaceutical Distribution $11,980,562 $11,536,052 4%
PharMerica 390,405 408,380 -4%
Intersegment eliminations (225,681) (211,178) -7%
------------ ------------
Operating revenue $12,145,286 $11,733,254 4%
============ ============
Three Months Ended September 30,
-----------------------------------
Operating Income 2004 2003 % Change
---------------------------------- ------------ ------------ ---------
Pharmaceutical Distribution $140,002 $204,025 -31%
PharMerica 33,766 28,894 17%
Facility consolidations and
employee severance (2,198) (2,426) 9%
------------ ------------
Operating income $171,570 $230,493 -26%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.14% 3.86%
Operating expenses 1.98% 2.09%
Operating income 1.17% 1.77%
PharMerica
Gross profit 30.02% 33.92%
Operating expenses 21.37% 26.84%
Operating income 8.65% 7.08%
AmerisourceBergen Corporation
Gross profit 4.07% 4.98%
Operating expenses 2.65% 3.01%
Operating income 1.41% 1.96%
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Fiscal Year Ended September 30,
-----------------------------------
Operating Revenue 2004 2003 % Change
---------------------------------- ------------ ------------ ---------
Pharmaceutical Distribution $48,171,178 $44,731,200 8%
PharMerica 1,575,255 1,608,203 -2%
Intersegment eliminations (875,818) (802,714) -9%
------------ ------------
Operating revenue $48,870,615 $45,536,689 7%
============ ============
Fiscal Year Ended September 30,
-----------------------------------
Operating Income 2004 2003 % Change
---------------------------------- ------------ ------------ ---------
Pharmaceutical Distribution $738,100 $788,193 -6%
PharMerica 121,846 103,843 17%
Facility consolidations and
employee severance (7,517) (8,930) 16%
Gain on litigation settlement 38,005 - N/A
------------ ------------
Operating income $890,434 $883,106 1%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.45% 3.85%
Operating expenses 1.92% 2.09%
Operating income 1.53% 1.76%
PharMerica
Gross profit 30.45% 32.69%
Operating expenses 22.72% 26.23%
Operating income 7.74% 6.46%
AmerisourceBergen Corporation
Gross profit 4.46% 4.93%
Operating expenses 2.64% 3.00%
Operating income 1.82% 1.94%
AMERISOURCEBERGEN CORPORATION
EARNINGS PER SHARE
(In thousands, except per share data)
(unaudited)
Basic earnings per share is computed on the basis of the weighted
average number of shares of common stock outstanding during the
periods presented. Diluted earnings per share is computed on the
basis of the weighted average number of shares of common stock
outstanding during the period plus the dilutive effect of stock
options. Additionally, the diluted earnings per share calculation
considers the convertible subordinated notes as if converted and,
therefore, the effect of interest expense related to those notes is
added back to net income in determining income available to common
stockholders.
Three Months Ended Fiscal Year Ended
September 30, September 30,
2004 2003 2004 2003
---------- --------- --------- ---------
Net income $91,989 $119,530 $468,390 $441,229
Interest expense - convertible
subordinated notes, net of
income taxes 2,551 2,518 10,141 9,997
---------- --------- --------- ---------
Income available to common
stockholders $94,540 $122,048 $478,531 $451,226
========== ========= ========= =========
Weighted average common shares
outstanding - basic 110,962 111,503 111,617 109,513
Effect of dilutive securities:
Options to purchase
common stock 365 729 498 777
Convertible subordinated
notes 5,664 5,664 5,664 5,664
---------- --------- --------- ---------
Weighted average common shares
outstanding - diluted 116,991 117,896 117,779 115,954
========== ========= ========= =========
Earnings per share:
Basic $0.83 $1.07 $4.20 $4.03
Diluted $0.81 $1.04 $4.06 $3.89
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