AmerisourceBergen Reports Record March Quarter as Early Synergy Capture and Interest Savings Drive Results.Business Editors 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)--April 25, 2002 March Quarter EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Up 53 Percent To $0.87 Before Special Charges 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 second quarter and six months ended March 31, 2002. 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 second quarter and six-month results are compared with the fiscal 2001 second quarter and six-month results of AmeriSource only. 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 discussion reflects comparisons to the combined companies' operating results in the previous year's second quarter and first six months, adjusted to eliminate amortization of goodwill. Both former companies had the same fiscal year ending September September: see month. 30. 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 before special charges for the quarter were $0.87, a 53 percent increase over the previous year's second quarter. Income before the special charges for the second quarter increased to $94.7 million from $31.5 million in the same period last year. The special charges, consisting of merger integration costs, were $2.9 million, net of tax, in the quarter. Net income and diluted earnings per share for the quarter were $91.9 million and $0.84, respectively. 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. , which excludes bulk deliveries to customer warehouses, was $9.9 billion in the second quarter compared to $3.5 billion for the same period last year. Second quarter operating revenue increased 17 percent over fiscal 2001 second quarter pro forma operating revenue of $8.5 billion. For the first six months of fiscal 2002, diluted earnings per share before special charges were $1.54, a 44 percent increase over the prior year. Operating revenue for the six-month period was $19.6 billion compared to $6.8 billion in the prior year, and represents an 18 percent increase over pro forma operating revenue of $16.6 billion in the first half of fiscal 2001. Net income and diluted earnings per share for the six-month period were $159.8 million and $1.48, respectively. For the second quarter of fiscal 2002, interest expense, including pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern distributions on preferred securities of subsidiary trust, was $38.8 million, reflecting effective asset management and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rates. The following discussion of results, including segment data, does not include the impact of the special charges in the second quarter and first six months of fiscal 2002. 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 President and Chief Executive Officer, said, "This was an outstanding performance by AmerisourceBergen, reflecting our ability to rapidly leverage the cost saving and scale synergies of our new company. We have succeeded in capturing merger synergies earlier than we expected. Improved capital management and a historically low interest rate environment also positively impacted the Company's performance. These factors drove operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: expansion, record earnings per share, significant cash generation, and a very strong return on committed capital (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) ). "I am very pleased with the progress we are making in bringing these two companies together. 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 and our discipline in both capital usage and expense control will continue to drive our results." Segment Discussion AmerisourceBergen operates in two segments: Pharmaceutical Distribution (which includes 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 . ) 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. , AmerisourceBergen's 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 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 $192.1 million in the second quarter of fiscal 2002 from AmerisourceBergen Drug Company to PharMerica, which are included in the pharmaceutical distribution segment operating revenue, are eliminated for 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: reporting purposes. Pharmaceutical Distribution Segment Operating revenue in the second quarter of fiscal 2002 increased to $9.8 billion compared with $3.5 billion in the previous year's second quarter. Operating revenue increased 17 percent over fiscal 2001 second quarter pro forma revenues of $8.3 billion. Pharmaceutical distribution customer mix in the second quarter of fiscal 2002 was 52 percent institutional and 48 percent retail. AmerisourceBergen is the market leader in pharmaceutical distribution to hospital systems and acute care facilities, 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 and mail order 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 store pharmacies. 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 $176.0 million in the second quarter of fiscal year 2002, up from $64.4 million for the same quarter last year, and improved 22 percent compared to pro forma operating income of $144.7 million in the same period last year. For the fiscal 2002 second quarter, operating income, as a percentage of operating revenue, was 1.80 percent, a six basis point improvement from 1.74 percent in the prior year's second quarter on a pro forma basis, as lower gross margins 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. 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 well over $2 billion, had another very strong quarter, 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. 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 businesses. "We are pleased with both the pace and progress of our integration work. Our detailed planning and disciplined execution has allowed us to put the right people, organization and resources in place to quickly capture integration cost savings ahead of our internal schedule," 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 Executive Vice 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. . "During the quarter, we completed on schedule the information technology integration work that will allow us 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. five additional distribution centers by the end of September. The first of these, in Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. , is on track to be completed this week. "At the end of the quarter, we launched 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), which provides significant value for both our customers and participating manufacturers, and will further contribute to our profitability in the second half of the year." PharMerica PharMerica's operating revenue for the second quarter of fiscal 2002 was $359.8 million, representing a 6 percent increase over pro forma operating revenue of $339.9 million in the same period last year. Operating income for the second quarter was $19.5 million, a 21 percent increase over the prior year's pro forma second quarter operating income of $16.1 million. Operating income as a percentage of operating revenue increased 69 basis points in the quarter to 5.43 percent from 4.74 percent on a pro forma basis in the prior year. "Cost savings from expense control, driven by the favorable impact of a single information technology platform and continued accounts receivables accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying discipline, improved PharMerica's performance in the quarter," said Hilzinger. Looking Ahead "We expect continued strong performance for AmerisourceBergen with revenue growth for fiscal year 2002 in the range of 15 percent to 17 percent and ROCC in excess of 20 percent," said Yost. "We are increasing our diluted earnings per share estimate for fiscal year 2002, excluding the impact of merger-related special charges, from $3.00 to $3.15. The increase in earnings expectations for the year reflects the strong performance of our businesses in the second quarter, continued low interest rates, and our ongoing focus on cost improvement. We remain confident in our ability to achieve annual cost saving synergies of $150 million by the end of fiscal year 2004." Conference Call The Company will host a conference call to discuss the results at 11:00 am Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time on April 25, 2002. Participating in the conference call will be: R. David Yost, President & Chief Executive Officer; Kurt J. Hilzinger, Executive Vice 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: 888/428-4473 from inside the U.S. no access code required or 651/291-0561 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 2:30 pm April 25, 2002 until 11:59 pm May 2, 2002. To access the replay via telephone: Dial in: 800/475-6701 from within the U.S., access code: 634155 320/365-3844 from outside the U.S., access code: 634155 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/acute care market, alternate care and mail order facilities, independent community pharmacies, and regional chain pharmacies. The Company is also a leader in the institutional pharmacy marketplace. With more than $39 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 press 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. The forward-looking statements herein include statements addressing future financial and operating results of AmerisourceBergen and the benefits and other aspects of the 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, Form 10-Q Form 10-Q See 10-Q. for the first quarter of fiscal 2002, and AmeriSource's and Bergen's 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 dated August 1, 2001. AmerisourceBergen, AmeriSource and Bergen Brunswig are under no obligation to (and expressly disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any such obligation to) update or alter their 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 % of Months Ended % of
March 31, Operating March 31, Operating %
2002 Revenue 2001 Revenue Change
---------- ------ ---------- ------ ----
Revenue:
Operating
revenue $9,918,609 100.00% $3,480,685 100.00% 185%
Bulk
deliveries
to
customer
warehouses 1,025,658 313 -
---------- ----------
Total revenue 10,944,267 3,480,998 214%
Cost of goods
sold 10,429,774 3,329,829 213%
---------- ----------
Gross profit 514,493 5.19% 151,169 4.34% 240%
Operating
expenses:
Distribution,
selling and
administrative 304,576 3.07% 82,462 2.37% 269%
Depreciation
and
amortization 14,402 0.15% 4,281 0.12% 236%
Merger costs 4,741 0.05% - 0.00% -
---------- ----------
Operating
income 190,774 1.92% 64,426 1.85% 196%
Equity in
(income)
losses of
affiliates
and other (354) 0.00% 1,801 0.05% -120%
Interest
expense 32,734 0.33% 11,793 0.34% 178%
---------- ----------
Income before
taxes and
distributions
on preferred
securities of
subsidiary
trust 158,394 1.60% 50,832 1.46% 212%
Income taxes 62,891 0.63% 19,316 0.55% 226%
---------- ----------
Income before
distributions
on preferred
securities
of subsidiary
trust 95,503 0.96% 31,516 0.91% 203%
Distributions on
preferred
securities of
subsidiary
trust, net of
income tax
benefit of
$2,389 3,629 0.04% - 0.00% -
---------- ----------
Net income $ 91,874 0.93% $ 31,516 0.91% 192%
========== ==========
Earnings
per share:
Basic $ 0.88 $ 0.60
Diluted $ 0.84 $ 0.57
Weighted
average
common
shares
outstanding:
Basic 104,404 52,701
Diluted 111,704 59,349
----------------------------------------------------------------------
Pro forma results excluding merger costs in the three months ended
March 31, 2002:
Operating
income $ 195,515 $ 64,426
Net income $ 94,734 $ 31,516
Earnings per
share:
Basic $ 0.91 $ 0.60
Diluted $ 0.87 $ 0.57
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
Six Six
Months Ended % of Months Ended % of
March 31, Operating March 31, Operating %
2002 Revenue 2001 Revenue Change
------------ --------- ------------ --------- ------
Revenue:
Operating
revenue $19,604,885 100.00% $6,787,436 100.00% 189%
Bulk
deliveries
to customer
warehouses 2,408,162 757 --
----------- ----------
Total revenue 22,013,047 6,788,193 224%
Cost of
goods sold 21,027,121 6,499,591 224%
----------- ----------
Gross profit 985,926 5.03% 288,602 4.25% 242%
Operating
expenses:
Distribution,
selling
and
administrative 602,168 3.07% 162,107 2.39% 271%
Depreciation
and
amortization 29,449 0.15% 8,175 0.12% 260%
Merger costs 12,238 0.06% -- 0.00% --
----------- ----------
Operating
income 342,071 1.74% 118,320 1.74% 189%
Equity in
losses
of affiliates
and
other 1,377 0.01% 2,575 0.04% -47%
Interest
expense 63,709 0.32% 22,669 0.33% 181%
----------- ----------
Income
before
taxes
and
distributions
on preferred
securities of
subsidiary
trust 276,985 1.41% 93,076 1.37% 198%
Income taxes 109,969 0.56% 35,369 0.52% 211%
----------- ----------
Income before
distributions
on
preferred
securities
of subsidiary
trust 167,016 0.85% 57,707 0.85% 189%
Distributions
on
preferred
securities
of
subsidiary
trust,
net of
income tax
benefit
of $4,777 7,259 0.04% -- 0.00% --
----------- ----------
Net income $159,757 0.81% $57,707 0.85% 177%
=========== ==========
Earnings per
share:
Basic $1.54 $1.10
Diluted $1.48 $1.07
Weighted average
common shares
outstanding:
Basic 104,070 52,528
Diluted 111,443 56,939
----------------------------------------------------------------------
Pro forma results excluding merger costs in the six months ended March
31, 2002:
Operating income $354,309 $118,320
Net income $167,137 $57,707
Earnings per share:
Basic $1.61 $1.10
Diluted $1.54 $1.07
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
ASSETS (Unaudited)
March 31, September 30, $
2002 2001 Change
--------- ------------- ------
Current assets:
Cash and cash equivalents $ 463,815 $ 297,626 $ 166,189
Accounts receivable, net 2,061,331 2,142,663 (81,332)
Merchandise inventories 5,295,924 5,056,257 239,667
Prepaid expenses and other 17,831 15,956 1,875
----------- ----------- -----------
Total current assets 7,838,901 7,512,502 326,399
Long-term assets 2,761,318 2,778,743 (17,425)
----------- ----------- -----------
Total assets $10,600,219 $10,291,245 $ 308,974
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,076,767 $ 4,991,884 $ 84,883
Current portion of
long-term debt 30,000 2,468 27,532
Other current
liabilities 616,625 538,101 78,524
----------- ----------- -----------
Total current
liabilities 5,723,392 5,532,453 190,939
Long-term debt, less
current portion 1,508,889 1,597,295 (88,406)
Other liabilities 43,260 48,317 (5,057)
Company-obligated
mandatorily redeemable
preferred securities
of subsidiary trust 274,952 274,616 336
Stockholders' equity 3,049,726 2,838,564 211,162
----------- ----------- -----------
Total liabilities
and stockholders'
equity $10,600,219 $10,291,245 $ 308,974
=========== =========== ===========
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
Three Months Ended March 31,
-------------------------------------------------------
Operating Actual Actual Pro forma Actual Pro forma
Revenue 2002 2001 2001 (1) % Change % Change
-------------- -------------------------------------------------------
Pharmaceutical
Distribution $9,750,903 $3,480,685 $8,335,337 180% 17%
PharMerica 359,761 - 339,924 - 6%
Intersegment
Eliminations (192,055) - (207,285) - -7%
----------- ---------- ----------- ------------------
Operating
revenue $9,918,609 $3,480,685 $8,467,976 185% 17%
=========== ========== =========== ==================
Three Months Ended March 31,
-------------------------------------------------------
Operating Actual Actual Pro forma Actual Pro forma
Income (2) 2002 2001 2001 (1) % Change % Change
-------------- -------------------------------------------------------
Pharmaceutical
Distribution $175,968 $64,426 $144,714 173% 22%
PharMerica 19,547 - 16,114 - 21%
----------- ---------- ----------- ------------------
Operating
income $195,515 $64,426 $160,828 203% 22%
=========== ========== ========== ==================
Percentages of
operating revenue (2):
Pharmaceutical
Distribution
Gross profit 4.04% 4.34% 4.30%
Operating
expenses 2.23% 2.49% 2.56%
Operating income 1.80% 1.85% 1.74%
PharMerica
Gross profit 33.52% - 35.81%
Operating
expenses 28.09% - 31.07%
Operating income 5.43% - 4.74%
AmerisourceBergen
Corporation
Gross profit 5.19% 4.34% 5.67%
Operating
expenses 3.22% 2.49% 3.77%
Operating income 1.97% 1.85% 1.90%
(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) Excludes merger costs.
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
Six Months Ended March 31,
------------------------------------------------------
Actual Actual Pro forma Actual Pro
Operating Revenue 2002 2001 2001 (1) % forma
Change %
Change
-------------- ------------------------------------------------------
Pharmaceutical
Distribution $19,272,979 $ 6,787,436 $16,265,303 184% 18%
PharMerica 715,176 - 675,090 - 6%
Intersegment
Eliminations (383,270) - (388,882) - -1%
----------- ----------- ----------- -----------
Operating
revenue $19,604,885 $ 6,787,436 $16,551,511 189% 18%
=========== =========== =========== ===========
Six Months Ended March 31,
------------------------------------------------------
Actual Actual Pro forma Actual Pro
Operating 2002 2001 2001 (1) % forma
Income (2) Change %
Change
-------------- -------------------------------------------------------
Pharmaceutical
Distribution $ 315,452 $ 118,320 $ 260,804 167% 21%
PharMerica 38,857 - 33,221 - 17%
----------- ----------- ----------- -----------
Operating
income $ 354,309 $ 118,320 $ 294,025 199% 21%
=========== =========== =========== ===========
Percentages
of operating
revenue (2):
Pharmaceutical
Distribution
Gross profit 3.87% 4.25% 4.18%
Operating
expenses 2.23% 2.51% 2.58%
Operating income 1.64% 1.74% 1.60%
PharMerica
Gross profit 33.57% - 35.83%
Operating expenses 28.14% - 30.91%
Operating income 5.43% - 4.92%
AmerisourceBergen
Corporation
Gross profit 5.03% 4.25% 5.57%
Operating expenses 3.22% 2.51% 3.80%
Operating income 1.81% 1.74% 1.78%
(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) Excludes merger costs.
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 calculations consider 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 Six months ended
March 31, March 31,
2002 2001 2002 2001
-------- -------- -------- --------
Net income $ 91,874 $ 31,516 $159,757 $ 57,707
Interest expense
- convertible
subordinated
notes, net of
income taxes 2,481 2,528 4,961 3,086
-------- -------- -------- --------
Income available
to common
stockholders $ 94,355 $ 34,044 $164,718 $ 60,793
======== ======== ======== ========
Weighted average
common shares
outstanding 104,404 52,701 104,070 52,528
Effect of
dilutive
securities:
Options to
purchase common
stock 1,636 984 1,709 988
Convertible
subordinated
notes 5,664 5,664 5,664 3,423
-------- -------- -------- --------
Weighted average
common shares
outstanding -
diluted 111,704 59,349 111,443 56,939
======== ======== ======== ========
Earnings per
share:
Basic $ 0.88 $ 0.60 $ 1.54 $ 1.10
Diluted $ 0.84 $ 0.57 $ 1.48 $ 1.07
Appendix - A(1)
Pro Forma Information
The historical consolidated financial summary and summary segment
information for the three-months and six-months ended March 31, 2001,
included in this press release, reflect only the results of
AmeriSource Health Corporation, as predecessor to the Company. 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
combined results of AmeriSource Health Corporation and Bergen Brunswig
Corporation and are not intended to be consolidated financial
statements of AmerisourceBergen prepared in accordance with generally
accepted accounting principles and do not represent consolidated
results as if the merger had occurred at the beginning of the periods
presented. In addition, they are 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.
In addition, 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.
Appendix - A(2)
AmerisourceBergen
Pro forma combined condensed financial information (1)
(dollars in thousands)
----------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
-------------------------------------------------------
First Second Third Fourth
Quarter Quarter Quarter Quarter Fiscal Year
-------------------------------------------------------
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
(2) 293,608 303,730 295,462 304,703 1,197,503
Depreciation 13,891 14,337 14,296 14,641 57,165
Amortization (3) 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) Excludes special items in the third and fourth quarters related to
the merger and enviromental remediation.
(3) Excludes amortization of goodwill.
Appendix - A(3)
AmerisourceBergen - Pharmaceutical Distribution
Pro forma combined condensed financial information (1)
(dollars in thousands)
----------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
-----------------------------------------------------------
First Second Third Fourth Fiscal
Quarter Quarter Quarter Quarter Year
----------------------------------------------------------------------
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
Distri-
bution,
selling
and
adminis-
trative
(2), (3) 195,464 202,915 200,042 211,501 809,922
Depreci-
ation 9,426 9,962 9,916 10,278 39,582
Amorti-
zation
(4) 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) Excludes special items in the fourth quarter related to the merger
and enviromental remediation.
(3) 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.
(4) Excludes amortization of goodwill.
Appendix - A(4)
AmerisourceBergen - PharMerica
Pro forma combined condensed financial information (1)
(dollars in thousands)
----------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
---------------------------------------------------
First Second Third Fourth Fiscal Year
Quarter Quarter Quarter Quarter
----------------------------------------------------------------------
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
(2), (3) 98,144 100,815 95,420 93,202 387,581
Depreciation 4,465 4,375 4,380 4,363 17,583
Amortization (4) 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) Excludes special items in the fourth quarter related to the merger
and enviromental remediation.
(3) 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.
(4) Excludes amortization of goodwill.
Appendix - A(5)
AmerisourceBergen - Intersegment Eliminations
Pro forma combined condensed financial information (1)
(dollars in thousands)
----------------------------------------------------------------------
Fiscal Year Ended September 30, 2001
----------------------------------------------------------------------
First Second Third Fourth Fiscal
Quarter Quarter Quarter Quarter Year
------------------------------------------------------
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)).
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