AmerisourceBergen Reports Record Earnings Per Share Before Special Charges of $.88 for the September Quarter and $3.29, a 42 Percent Increase, for Fiscal Year 2002.Business Editors/Health & Medical Writers 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.--(BUSINESS WIRE)--Nov. 5, 2002 Company Moved Quickly To Maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. Benefits Of Year-Ago Merger 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 record results for its fiscal fourth quarter and fiscal year ended September September: see month. 30, 2002. Fiscal Fourth Quarter Highlights -- Record diluted earnings per share of $.88 before special charges. -- Record operating revenue of $10.4 billion, up 14 percent, pro forma. -- Operating margin of 1.91 percent, up 12 basis points, pro forma. -- Return On Committed Capital (ROCC) of 25.5 percent. Fiscal 2002 Highlights -- Record 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 of $3.29 before special charges. -- Record 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. of $40.2 billion, up 16 percent, pro forma forma, adj/n minor elements between the members of a botanical species. . -- Cost saving synergies captured ahead of schedule. -- 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: seven distribution centers and two 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. operations. -- 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 more than $500 million. "This was an exceptional year at AmerisourceBergen," 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. "During fiscal 2002, we successfully merged two great companies and created the industry leader in the pharmaceutical supply channel; a Company with the scale and dedication to maximize shareholder value, deliver the highest customer service, and provide new and innovative solutions to suppliers and customers in the channel. "Our success is a reflection of the dedication and hard work of our associates. They made it happen on the firing line. The financial result was a more than 40 percent increase in earnings per share and $40 billion in revenue for the year. Combined with our 25.5 percent ROCC ROCC Range Operations Control Center ROCC Regional Operations Control Center ROCC Rail Operations Control Center ROCC Residents of Color Council ROCC Royal Oak Community Coalition (Michigan) , we exceeded our key financial goals. "From the beginning, it has not been about being the biggest, but the best. In one year, we have laid a solid foundation, and we have only begun to tap the potential of AmerisourceBergen. With our number one position in the market, a growing array of services and products, and a commitment to maximize our synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. opportunities, we remain dedicated to increasing value for our shareholders, customers, suppliers and associates." Discussion of Results AmeriSource Health Corporation and Bergen Bergen, city, Norway Bergen (bĕr`gən), city (1995 pop. 221,645), capital of Hordaland co., SW Norway, situated on inlets of the North Sea. It is Norway's second largest city and a major shipping center. Brunswig Corporation merged on August 29, 2001 to form AmerisourceBergen Corporation. Under purchase accounting rules, AmerisourceBergen's fiscal 2002 fourth quarter and annual results are compared with the fiscal 2001 historical fourth quarter and yearly results which encompass the full year of former AmeriSource and approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one month of former Bergen. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma data included in this news release refers to the combined predecessor predecessor - parent companies' operating results in the previous year's fourth quarter and fiscal year, adjusted to eliminate amortization of goodwill and merger-related special charges. Both former companies had the same fiscal year ending September 30. Diluted earnings per share before special charges for the fourth quarter of fiscal 2002 were $0.88, a 38 percent increase over the prior year's fourth quarter. Income before special charges for the fourth quarter of fiscal 2002 increased to $97.3 million from $47.2 million in the same period last year. Special charges, consisting of merger integration costs, were $2.3 million, net of tax, in the quarter. Net income and diluted earnings per share for the quarter were $95.0 million and $0.86, respectively. AmerisourceBergen's operating revenue, which excludes bulk deliveries to customer warehouses, was $10.4 billion in the fourth quarter of fiscal 2002 compared to $5.5 billion for the same period last year. Fiscal 2002 fourth quarter operating revenue increased 14 percent over fiscal 2001 fourth quarter pro forma operating revenue of $9.1 billion. For the 2002 fiscal year, diluted earnings per share before special charges were $3.29, a 42 percent increase over the prior year. Income before special charges for the year increased to $359.6 million from $137.0 million last year. Special charges, consisting of merger integration costs, were $14.6 million, net of tax, in fiscal year 2002. Operating revenue for the fiscal year ended September 30, 2002 was $40.2 billion compared to $15.8 billion in the prior year, and represents a 16 percent increase over pro forma operating revenue of $34.6 billion in fiscal year 2001. Net income and diluted earnings per share for the 2002 fiscal year were $344.9 million and $3.16, respectively. The following discussion of results, including segment data, does not include the impact of special charges. "In the fiscal 2002 fourth quarter, our outstanding performance was driven by our continual focus on customer service, synergy cost savings ahead of internal expectations, and strong working capital management," 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 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. . "The result was a double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" expansion in operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , record earnings per share and a ROCC of 25.5 percent. "In pharmaceutical distribution we consolidated four distribution centers in the September quarter bringing the total number of consolidations in the fiscal year to seven, in line with the schedule we set at the beginning of the fiscal year. Our new generic Generic Describes the characteristics and/or experience of the total universe of a coupon of MBS sector type; that is, in contrast to a specific pool or collateral group, as in a specific CMO issue. pharmaceutical program, PROGenerics(TM), also contributed to the quarter's strong performance. "With the integration of the key functional areas now nearly complete, in fiscal 2003 we will continue to work toward building our new distribution network and introducing new offerings to our customers in the pharmaceutical supply channel. We expect to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. six larger distribution centers in the coming fiscal year as well as begin building a number of new facilities and expanding others. Retail and institutional customers will see new programs to solve challenges such as staffing shortages, cost constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. and dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. accuracy. "In our 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. segment, strong revenue growth in the fiscal 2002 fourth quarter of 14 percent, pro forma, reflects continued solid performance by PharMerica's 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. business, as well as improved growth in the long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. business," said Hilzinger. "The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of a single information technology platform, continued receivable and operating discipline, and the positive impact of the new generic pharmaceutical program, drove PharMerica's performance in the quarter." Segment Review AmerisourceBergen operates in two segments: Pharmaceutical Distribution (which includes the AmerisourceBergen Drug Company and 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 . operations) and PharMerica (which includes the institutional 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 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 $201.2 million in the fourth quarter of fiscal 2002 from AmerisourceBergen Drug Company 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 2002 increased to $10.2 billion compared with $5.5 billion in the previous year's fourth quarter. Operating revenue increased 14 percent over fiscal 2001 fourth quarter pro forma revenue of $8.9 billion. Pharmaceutical Distribution customer mix in the fourth quarter of fiscal 2002 was 54 percent institutional and 46 percent retail, and for fiscal year 2002 the mix was 53 percent institutional and 47 percent retail. Both customer groups had double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in the quarter and year. 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. was $174.6 million in the fourth quarter of fiscal 2002, up from $94.8 million for the same quarter last year, and improved 22 percent compared to pro forma operating income of $143.2 million in the same period last year. For the fiscal 2002 fourth quarter, operating income as a percentage of operating revenue was 1.72 percent, an 11 basis point improvement from the prior year's fourth quarter on a pro forma basis. Lower gross margins, which reflect the Company's customer mix and the competitive environment, were more than offset by lower total 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. as a percentage of operating revenue. Total operating expenses as a percentage of operating revenue in the fiscal 2002 fourth quarter were 2.20 percent, a 31 basis point improvement over the same quarter last year on a pro forma basis driven by synergy cost savings, customer mix and operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. . AmerisourceBergen Specialty Group, 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. revenue of more than $2.5 billion, continued its strong quarterly performance, building significant positions 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. , blood plasma blood plasma n. The yellow or gray-yellow, protein-containing fluid portion of blood in which the blood cells and platelets are normally suspended. , injectables and vaccine vaccine Preparation containing either killed or weakened live microorganisms or their toxins, introduced by mouth, by injection, or by nasal spray to stimulate production of antibodies against an infectious agent. distribution as well as growing its manufacturing services business. PharMerica PharMerica's operating revenue for the fourth quarter of fiscal 2002 increased to $386.1 million from $116.7 million in the previous year's fourth quarter. Operating revenue in the quarter increased 14 percent over pro forma operating revenue of $338.1 million in the same period last year. Operating income for the fourth quarter of fiscal 2002 was $22.9 million up from $6.5 million for the same quarter last year, and improved 22 percent over the prior year's pro forma fourth quarter operating income of $18.7 million. Operating income as a percentage of operating revenue increased 40 basis points in the quarter ended September 30, 2002 to 5.92 percent from 5.52 percent on a pro forma basis in the prior year. Looking Ahead "For fiscal 2003, we expect another year of strong performance with earnings per share growth of 20 percent excluding special charges, ROCC well ahead of our 20 percent 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. target, and revenue growth in line with projected market growth of 11 percent to 14 percent," said Yost. "We remain confident in our ability to achieve annual cost saving synergies of $150 million by the end of fiscal year 2004, followed by additional synergy capture through completion of our distribution network." Conference Call The Company will host a conference call to discuss the results at 11:00 a.m. Eastern Standard Time on November November: see month. 5, 2002. Participating in the conference call will be: R. David Yost, Chief Executive Officer; Kurt J. Hilzinger, President & 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 & Chief Financial Officer.
To access the live conference call via telephone:
Dial in: 877-777-1972 from inside the U.S. no access code required
or 612-332-7515 from outside the U.S. 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.net. A replay of the telephone call and webcast will be available from 4:15 p.m. November 5, 2002 until 11:59 p.m. November 12, 2002.
To access the replay via telephone:
Dial in: 800-475-6701 from within the U.S., access code: 654935
320-365-3844 from outside the U.S., access code: 654935
To access the archived webcast: Go to the Quarterly Webcasts section on the Investor Relations page at http://www.amerisourcebergen.net. About AmerisourceBergen AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical services company 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. dedicated solely to the pharmaceutical supply chain. It is the leading distributor of pharmaceutical products and services to the hospital systems and acute care market, 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. care facilities, independent community pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major , and regional chain pharmacies. The Company is also a leader in the institutional pharmacy marketplace. With more than $40 billion in annualized operating revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs more than 13,000 people serving over 25,000 customers. 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 future financial and operating results of AmerisourceBergen and the benefits and 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 the forward-looking statements: the risk that the businesses of AmeriSource and Bergen Brunswig will not be integrated successfully; failure to obtain and retain expected synergies; and other economic, business, competitive 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. 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. 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 2001, its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. for fiscal 2002, and the joint proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement-prospectus for the merger filed on August 1, 2001. 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 Months
Ended % of Ended % of
September Operating September Operating %
30, 2002 Revenue 30, 2001 Revenue Change
----------- ------- ---------- ------- ------
Revenue:
Operating revenue $10,357,502 100.00% $5,516,347 100.00% 88%
Bulk deliveries to
customer warehouses 1,243,418 367,884
----------- ----------
Total revenue 11,600,920 5,884,231
Cost of goods sold 11,072,301 5,617,654 97%
----------- ----------
Gross profit 528,619 5.10% 266,577 4.83% 98%
Operating expenses:
Distribution,
selling and
administrative 314,184 3.03% 156,103 2.83% 101%
Depreciation and
amortization 16,962 0.16% 9,209 0.17% 84%
Facility
consolidations
and employee
severance -- 0.00% 10,912 0.20% -100%
Merger costs 3,859 0.04% 12,206 0.22% -68%
Environmental
remediation -- 0.00% (2,716) -0.05% -100%
----------- ----------
Operating income 193,614 1.87% 80,863 1.47% 139%
Equity in losses
of affiliates
and other 4,460 0.04% 6,285 0.11% -29%
Interest expense 31,663 0.31% 17,823 0.32% 78%
----------- ----------
Income before
taxes 157,491 1.52% 56,755 1.03% 177%
Income taxes 62,531 0.60% 22,172 0.40% 182%
----------- ----------
Net income $94,960 0.92% $34,583 0.63% 175%
=========== ==========
Earnings per share:
Basic $0.89 $0.49
Diluted $0.86 $0.48
Weighted average
common shares
outstanding:
Basic 106,225 70,628
Diluted 113,134 77,613
----------------------------------------------------------------------
Pro forma results excluding merger costs in the three months ended
September 30, 2002 and merger costs and costs related to facility
consolidations and employee severance and environmental remediation
included in the three months ended September 30, 2001:
Operating income $197,473 $101,265
Net income $97,287 $47,230
Earnings per share:
Basic $0.92 $0.67
Diluted $0.88 $0.64
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Fiscal Fiscal
Year Ended % of Year Ended % of
September Operating September Operating %
30, 2002 Revenue 30, 2001 Revenue Change
----------- ------- ----------- ------- ------
Revenue:
Operating revenue $40,240,714 100.00% $15,822,635 100.00% 154%
Bulk deliveries
to customer
warehouses 4,994,080 368,718
------------ ------------
Total revenue 45,234,794 16,191,353
Cost of goods sold 43,210,320 15,491,235 179%
------------ ------------
Gross profit 2,024,474 5.03% 700,118 4.42% 189%
Operating expenses:
Distribution,
selling and
administrative 1,220,651 3.03% 397,848 2.51% 207%
Depreciation and
amortization 61,151 0.15% 21,589 0.14% 183%
Facility
consolidations
and employee
severance - 0.00% 10,912 0.07% -100%
Merger costs 24,244 0.06% 13,109 0.08% 85%
Environmental
remediation - 0.00% (2,716) -0.02% -100%
------------ ------------
Operating income 718,428 1.79% 259,376 1.64% 177%
Equity in losses
of affiliates
and other 5,647 0.01% 10,866 0.07% -48%
Interest expense 140,734 0.35% 47,853 0.30% 194%
------------ ------------
Income before taxes 572,047 1.42% 200,657 1.27% 185%
Income taxes 227,106 0.56% 76,861 0.49% 195%
------------ ------------
Net income $344,941 0.86% $123,796 0.78% 179%
============ ============
Earnings per share:
Basic $3.29 $2.16
Diluted $3.16 $2.10
Weighted average
common shares
outstanding:
Basic 104,935 57,185
Diluted 112,228 62,807
----------------------------------------------------------------------
Pro forma results excluding merger costs in the year ended September
30, 2002 and merger costs and costs related to facility consolidations
and employee severance and environmental remediation included in the
year ended September 30, 2001:
Operating income $742,672 $280,681
Net income $359,560 $137,003
Earnings per share:
Basic $3.43 $2.40
Diluted $3.29 $2.31
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
September 30, September 30, $
2002 2001 Change
---------- ---------- ---------
Current assets:
Cash and cash
equivalents $663,340 $297,626 $365,714
Accounts
receivable, net 2,222,156 2,142,663 79,493
Merchandise
inventories 5,437,878 5,056,257 381,621
Prepaid expenses
and other 26,263 15,956 10,307
---------- ---------- ---------
Total current
assets 8,349,637 7,512,502 837,135
Long-term assets 2,863,375 2,778,743 84,632
---------- ---------- ---------
Total assets $11,213,012 $10,291,245 $921,767
=========== =========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,367,837 $4,991,884 $375,953
Current portion of
long-term debt 60,819 2,468 58,351
Other current
liabilities 670,861 538,101 132,760
---------- ---------- ---------
Total current
liabilities 6,099,517 5,532,453 567,064
Long-term debt, less
current portion 1,756,494 1,871,911 (115,417)
Other liabilities 40,663 48,317 (7,654)
Stockholders' equity 3,316,338 2,838,564 477,774
---------- ---------- ---------
Total liabilities
and stockholders'
equity $11,213,012 $10,291,245 $921,767
=========== =========== =========
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
------------------------------------------------------
Pro
Operating Actual Actual Pro forma Actual % forma %
Revenue 2002 2001 2001 (1) Change Change
--------------- ------------------------------------------------------
Pharmaceutical
Distribution $10,172,674 $5,463,754 $8,885,145 86% 14%
PharMerica 386,061 116,719 338,135 231% 14%
Intersegment
Eliminations (201,233) (64,126) (170,596) 214% 18%
----------- ---------- ----------
Operating
revenue $10,357,502 $5,516,347 $9,052,684 88% 14%
=========== ========== ==========
Three Months Ended September 30,
------------------------------------------------------
Pro
Operating Actual Actual Pro forma Actual % forma %
Income (2) 2002 2001 2001 (1) Change Change
--------------- ------------------------------------------------------
Pharmaceutical
Distribution $174,622 $94,793 $143,197 84% 22%
PharMerica 22,851 6,472 18,679 253% 22%
-------- -------- --------
Operating
income $197,473 $101,265 $161,876 95% 22%
======== ======== ========
Percentages of operating revenue (2):
Pharmaceutical
Distribution
Gross profit 3.92% 4.15% 4.12%
Operating
expenses 2.20% 2.42% 2.51%
Operating
income 1.72% 1.73% 1.61%
PharMerica
Gross profit 33.71% 34.06% 34.51%
Operating
expenses 27.79% 28.51% 28.99%
Operating
income 5.92% 5.55% 5.52%
AmerisourceBergen
Corporation
Gross profit 5.10% 4.83% 5.33%
Operating
expenses 3.20% 3.00% 3.54%
Operating
income 1.91% 1.84% 1.79%
(1) Represents the combination of AmerisourceBergen Corporation's
financial information for the quarter ended September 30, 2001,
and Bergen Brunswig Corporation's historical financial information
for the period from July 1, 2001 to August 29, 2001. (See
discussion under Pro Forma Information Appendix - A(1)).
(2) Excludes merger costs in the three months ended September 30, 2002
and merger costs and costs related to facility consolidations and
employee severance and environmental remediation included in the
three months ended September 30, 2001.
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Fiscal Year Ended September 30,
------------------------------------------------------
Pro
Operating Actual Actual Pro forma Actual % forma %
Revenue 2002 2001 2001 (1) Change Change
--------------- ------------------------------------------------------
Pharmaceutical
Distribution $39,539,858 $15,770,042 $33,985,611 151% 16%
PharMerica 1,475,028 116,719 1,350,008 1164% 9%
Intersegment
Eliminations (774,172) (64,126) (736,309) 1107% 5%
----------- ----------- -----------
Operating
revenue $40,240,714 $15,822,635 $34,599,310 154% 16%
=========== =========== ===========
Fiscal Year Ended September 30,
------------------------------------------------------
Pro
Operating Actual Actual Pro forma Actual % forma %
Income (2) 2002 2001 2001 (1) Change Change
--------------- ------------------------------------------------------
Pharmaceutical
Distribution $659,208 $274,209 $551,827 140% 19%
PharMerica 83,464 6,472 68,856 1190% 21%
-------- -------- --------
Operating
income $742,672 $280,681 $620,683 165% 20%
======== ======== ========
Percentages of operating revenue (2):
Pharmaceutical
Distribution
Gross profit 3.87% 4.19% 4.13%
Operating
expenses 2.20% 2.45% 2.51%
Operating
income 1.67% 1.74% 1.62%
PharMerica
Gross profit 33.49% 34.06% 35.24%
Operating
expenses 27.83% 28.51% 30.14%
Operating
income 5.66% 5.55% 5.10%
AmerisourceBergen
Corporation
Gross profit 5.03% 4.42% 5.44%
Operating
expenses 3.19% 2.65% 3.64%
Operating
income 1.85% 1.77% 1.79%
(1) Represents the combination of AmerisourceBergen Corporation's
previously reported financial information for the fiscal year
ended September 30, 2001, and Bergen Brunswig Corporation's
historical financial information for the period from October 1,
2000 to August 29, 2001. (See discussion under Pro Forma
Information Appendix - A(1)).
(2) Excludes merger costs in the year ended September 30, 2002 and
merger costs and costs related to facility consolidations and
employee severance and environmental remediation included in the
year ended September 30, 2001.
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,
2002 2001 2002 2001
------- ------- ------- -------
Net income $94,960 $34,583 $344,941 $123,796
Interest expense -
convertible
subordinated
notes, net of
income taxes 2,481 2,513 9,923 8,112
------- ------- ------- -------
Income available
to common
stockholders $97,441 $37,096 $354,864 $131,908
======= ======= ======== ========
Weighted average
common shares
outstanding 106,225 70,628 104,935 57,185
Effect of
dilutive
securities:
Options to
purchase
common stock 1,245 1,321 1,629 1,076
Convertible
subordinated
notes 5,664 5,664 5,664 4,546
------- ------- ------- -------
Weighted average
common shares
outstanding -
diluted 113,134 77,613 112,228 62,807
======= ======= ======= =======
Earnings per share:
Basic $0.89 $0.49 $3.29 $2.16
Diluted $0.86 $0.48 $3.16 $2.10
Appendix - A(1)
Pro Forma Information
The historical consolidated financial summary and summary segment
information for the three-months and year ended September 30, 2001,
included in this press release, reflect only the results of
AmeriSource Health Corporation, as predecessor to the Company, through
August 29, 2001 and the results of AmerisourceBergen Corporation for
the period from August 29, 2001 through September 30, 2001
(collectively, the "Historical Results"). In order to enhance
comparability, the following schedules as well as the summary segment
information include fiscal 2001 financial data on a pro forma basis.
Within these schedules, pro forma refers to the Historical Results
combined with the results of Bergen Brunswig Corporation through
August 29, 2001. The pro forma information for fiscal 2001 has not
been prepared in accordance with generally accepted accounting
principles and does not represent consolidated results as if the
merger had occurred at the beginning of the periods presented. To
enhance comparability of financial information between fiscal years,
the pro forma information for fiscal 2001 excludes the amortization of
goodwill and special items related to the merger and environmental
remediation and reflects the full allocation of Bergen Brunswig
Corporation's former Corporate segment to the Pharmaceutical
Distribution and PharMerica segments. The pro forma information is not
necessarily indicative of the actual results which might have occurred
had the operations and management of AmeriSource Health Corporation
and Bergen Brunswig Corporation been combined at the beginning of
fiscal 2001.
Appendix - A(2)
AmerisourceBergen
Pro forma combined condensed financial information
(dollars in thousands)
(unaudited)
----------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
--------------------------------------------------------
First Second Third Fourth Fiscal
Quarter Quarter Quarter Quarter Year (3)
(1) (1) (1) (2)
----------------------------------------------------------------------
Operating
revenue $8,083,535 $8,467,976 8,995,115 $9,052,684 $34,599,310
========================================================
Gross profit $442,249 $480,035 $475,810 $482,647 $1,880,741
Distribution,
selling and
administrative
(4) 293,608 303,730 295,462 304,703 1,197,503
Depreciation 13,891 14,337 14,296 14,641 57,165
Amortization
(5) 1,553 1,140 1,270 1,427 5,390
--------------------------------------------------------
Operating
income $133,197 $160,828 $164,782 $161,876 $620,683
========================================================
Gross profit
to operating
revenue 5.47% 5.67% 5.29% 5.33% 5.44%
Operating
expenses to
operating
revenue 3.82% 3.77% 3.46% 3.54% 3.64%
Operating
income to
operating
revenue 1.65% 1.90% 1.83% 1.79% 1.79%
(1) Represents the combination of AmeriSource Health Corporation's
and Bergen Brunswig Corporation's previously reported
financial information. (See discussion under Pro Forma
Information Appendix - A(1)).
(2) Represents the combination of AmerisourceBergen Corporation's
financial information for the quarter ended September 30,
2001, and Bergen Brunswig Corporation's historical financial
information for the period from July 1, 2001 to August 29,
2001. (See discussion under Pro Forma Information Appendix -
A(1)).
(3) Represents the combination of AmerisourceBergen Corporation's
previously reported financial information for the fiscal year
ended September 30, 2001, and Bergen Brunswig Corporation's
historical financial information for the period from October
1, 2000 to August 29, 2001. (See discussion under Pro Forma
Information Appendix - A(1)).
(4) Excludes special items in the third and fourth quarters
related to the merger and environmental remediation.
(5) Excludes amortization of goodwill.
Appendix - A(3)
AmerisourceBergen - Pharmaceutical Distribution
Pro forma combined condensed financial information
(dollars in thousands)
(unaudited)
----------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
--------------------------------------------------------
First Second Third Fourth Fiscal
Quarter Quarter Quarter Quarter Year (3)
(1) (1) (1) (2)
----------------------------------------------------------------------
Operating
revenue $7,929,966 $8,335,337 $8,835,163 $8,885,145 $33,985,611
=======================================================
Gross profit $322,096 $358,294 $358,619 $365,948 $1,404,957
Distribution,
selling and
administrative
(4), (5) 195,464 202,915 200,042 211,501 809,922
Depreciation 9,426 9,962 9,916 10,278 39,582
Amortization
(6) 1,116 703 835 972 3,626
--------------------------------------------------------
Operating
income $116,090 $144,714 $147,826 $143,197 $551,827
========================================================
Gross profit
to operating
revenue 4.06% 4.30% 4.06% 4.12% 4.13%
Operating
expenses to
operating
revenue 2.60% 2.56% 2.39% 2.51% 2.51%
Operating
income to
operating
revenue 1.46% 1.74% 1.67% 1.61% 1.62%
(1) Represents the combination of AmeriSource Health Corporation's
and Bergen Brunswig Corporation's previously reported
financial information. (See discussion under Pro Forma
Information Appendix - A(1)).
(2) Represents the combination of AmerisourceBergen Corporation's
financial information for the quarter ended September 30,
2001, and Bergen Brunswig Corporation's historical financial
information for the period from July 1, 2001 to August 29,
2001. (See discussion under Pro Forma Information Appendix -
A(1)).
(3) Represents the combination of AmerisourceBergen Corporation's
previously reported financial information for the fiscal year
ended September 30, 2001, and Bergen Brunswig Corporation's
historical financial information for the period from October
1, 2000 to August 29, 2001. (See discussion under Pro Forma
Information Appendix - A(1)).
(4) Excludes special items in the third and fourth quarters
related to the merger and environmental remediation.
(5) Expenses previously reported in the Corporate segment for
Bergen Brunswig Corporation have been fully allocated to the
Pharmaceutical Distribution and PharMerica segments for
comparative purposes within this schedule.
(6) Excludes amortization of goodwill.
Appendix - A(4)
AmerisourceBergen - PharMerica
Pro forma combined condensed financial information
(dollars in thousands)
(unaudited)
----------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
----------------------------------------------------
First Second Third Fourth Fiscal
Quarter Quarter Quarter Quarter Year (3)
(1) (1) (1) (2)
----------------------------------------------------------------------
Operating
revenue $335,166 $339,924 $336,783 $338,135 $1,350,008
====================================================
Gross profit $120,153 $121,741 $117,191 $116,699 $475,784
Distribution,
selling and
administrative
(4), (5) 98,144 100,815 95,420 93,202 387,581
Depreciation 4,465 4,375 4,380 4,363 17,583
Amortization (6) 437 437 435 455 1,764
----------------------------------------------------
Operating
income $17,107 $16,114 $16,956 $18,679 $68,856
====================================================
Gross profit to
operating
revenue 35.85% 35.81% 34.80% 34.51% 35.24%
Operating
expenses to
operating
revenue 30.74% 31.07% 29.76% 28.99% 30.14%
Operating
income to
operating
revenue 5.10% 4.74% 5.03% 5.52% 5.10%
(1) Represents the combination of AmeriSource Health Corporation's
and Bergen Brunswig Corporation's previously reported
financial information. (See discussion under Pro Forma
Information Appendix - A(1)).
(2) Represents the combination of AmerisourceBergen Corporation's
financial information for the quarter ended September 30,
2001, and Bergen Brunswig Corporation's historical financial
information for the period from July 1, 2001 to August 29,
2001. (See discussion under Pro Forma Information Appendix -
A(1)).
(3) Represents the combination of AmerisourceBergen Corporation's
previously reported financial information for the fiscal year
ended September 30, 2001, and Bergen Brunswig Corporation's
historical financial information for the period from October
1, 2000 to August 29, 2001. (See discussion under Pro Forma
Information Appendix - A(1)).
(4) Excludes special items in the third and fourth quarters
related to the merger and environmental remediation.
(5) Expenses previously reported in the Corporate segment for
Bergen Brunswig Corporation have been fully allocated to the
Pharmaceutical Distribution and PharMerica segments for
comparative purposes within this schedule.
(6) Excludes amortization of goodwill.
Appendix - A(5)
AmerisourceBergen - Intersegment Eliminations
Pro forma combined condensed financial information
(dollars in thousands)
(unaudited)
----------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
-------------------------------------------------------
First Second Third Fourth Fiscal
Quarter Quarter Quarter Quarter Year (3)
(1) (1) (1) (2)
----------------------------------------------------------------------
Operating
revenue ($181,597) ($207,285) ($176,831) ($170,596) ($736,309)
=======================================================
Gross profit $0 $0 $0 $0 $0
Distribution,
selling and
administrative -- -- -- -- --
Depreciation -- -- -- -- --
Amortization -- -- -- -- --
-------------------------------------------------------
Operating
income $0 $0 $0 $0 $0
=======================================================
(1) Represents the combination of AmeriSource Health Corporation's
and Bergen Brunswig Corporation's previously reported
financial information. (See discussion under Pro Forma
Information Appendix - A(1)).
(2) Represents the combination of AmerisourceBergen Corporation's
financial information for the quarter ended September 30,
2001, and Bergen Brunswig Corporation's historical financial
information for the period from July 1, 2001 to August 29,
2001. (See discussion under Pro Forma Information Appendix -
A(1)).
(3) Represents the combination of AmerisourceBergen Corporation's
previously reported financial information for the fiscal year
ended September 30, 2001, and Bergen Brunswig Corporation's
historical financial information for the period from October
1, 2000 to August 29, 2001. (See discussion under Pro Forma
Information Appendix - A(1)).
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