AmerisourceBergen Reports Record Revenue and Diluted Earnings Per Share; Diluted Earnings Per Share Increase 19 Percent And Record Operating Revenue Exceeds $12 Billion.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)--April 26, 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 record results for its fiscal second quarter ended March 31, 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 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 Second Quarter 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 $1.23, including special charges of $0.01, up 19 percent. -- Record net income of $142.2 million, up 22 percent. -- 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 $12.3 billion, up 10 percent. Fiscal First Six Months Highlights -- Record diluted earnings per share of $2.17, including special charges of $0.02, up 16 percent -- Record net income of $250.6 million, up 20 percent -- Record operating revenue of $24.6 billion, up 10 percent "Solid growth and operational focus resulted in another outstanding quarter," 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. "Operating revenue growth continued at a double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. rate, while, as expected, inventory was lower in the quarter. Our disciplined approach to our business also drove our 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 down 43 basis points, and strong working capital management contributed to significantly lower interest expense to deliver excellent earnings per share growth." Discussion of Results Diluted earnings per share for the second quarter of fiscal 2004 were $1.23, a 19 percent increase over the $1.03 in the prior year's second quarter. Included in these results is a $1.4 million special charge, net of tax, in the second quarter of fiscal 2004 and a $2.4 million special charge, net of tax, in the same period of the previous fiscal year. Both the charges are for facility consolidations 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 . The earnings per share impact of these items was a decrease of $0.01 in the second quarter of fiscal 2004 and a decrease of $0.02 in the last fiscal year's second quarter. AmerisourceBergen's operating revenue was $12.3 billion in the second quarter of fiscal 2004 compared to $11.2 billion for the same period last year, a 10 percent increase. Bulk deliveries in the quarter increased 7 percent to $1.0 billion. For the first six months of fiscal 2004, diluted earnings per share were $2.17, a 16 percent increase over the $1.87 in the same six-month period last year. Special charges related to facility consolidations and employee severance in the first six months of fiscal 2004 and in the same period of fiscal 2003 resulted in a decrease in earnings per share of $0.02 and $0.01, respectively. Operating revenue in the first six months of fiscal 2004 increased 10 percent to $24.6 billion from $22.3 billion in the same period of the previous fiscal year. Bulk deliveries to customer warehouses were down 7 percent, reflecting the impact of the conversion of bulk business to operating revenue in fiscal 2003. "All of our business units continued to build momentum in the quarter with an especially strong performance by 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 as it reached $5 billion in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue," 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. . "During the quarter, we again benefited from our merger integration cost savings and remain confident of delivering, by the end of this fiscal year, the $150 million in annual 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. cost savings we announced at the time of the merger. "The building of our new distribution center network continues on schedule and on budget. We have announced the final two new distribution centers in Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , and Bethlehem, Pennsylvania Bethlehem is a city in Lehigh and Northampton Counties in the Lehigh Valley region of eastern Pennsylvania, in the United States. As of the 2000 census, the city had a total population of 71,329, making it the eighth largest municipality in Pennsylvania. . 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. , facility is set to open this summer followed by the new 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. , distribution center in the fall. Completion of the six new distribution centers will facilitate additional consolidation and cost savings in the years ahead." "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, operational discipline and expense reduction drove 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. to a 17% increase and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: to a second quarter record," 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 $210.8 million in the second quarter of fiscal 2004 from AmerisourceBergen Drug Corporation 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 2004 increased to $12.2 billion compared with $11.0 billion in the second quarter of fiscal year 2003, a 10 percent increase. Pharmaceutical Distribution customer mix in the second quarter of fiscal 2004 was 60 percent institutional and 40 percent retail. 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, continued to grow significantly faster than operating revenue from retail 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 leadership positions 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 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, continued to add capacity and new customers in the quarter. The Company's Technology Group, which provides patient safety and pharmacy automation solutions to healthcare providers, gained added 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. as orders continued to build in the quarter. For the segment, gross profit as a percentage of operating revenue in the second quarter of fiscal 2004 was 3.80 percent, compared to 4.11 percent in the same period in the prior fiscal year, down 31 basis points. Customer mix, a strong competitive environment, and a reduction in deal and other buying opportunities impacted gross margins. Total operating expenses as a percentage of operating revenue in the second quarter of fiscal 2004 were 1.89 percent, a 26 basis point improvement over the same quarter last year. The improvement was driven by customer mix, merger integration cost savings and a net reduction in expense accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. primarily from lower employee benefit costs. Operating income was $232.4 million in the second quarter of fiscal 2004, up 7 percent from $216.5 million for the same quarter last year. For the second quarter of fiscal 2004, operating income as a percentage of operating revenue was 1.91 percent, a 6 basis point decrease from the second quarter of fiscal 2003. PharMerica PharMerica's operating revenue for the second quarter of fiscal 2004 was $392.1 million, compared with $397.1 million in the previous year's second quarter. Operating income for the second quarter of fiscal 2004 was $28.2 million, up 17 percent from $24.1 million for the same quarter last year due to continued expense reduction. Operating income as a percentage of operating revenue increased 112 basis points in the quarter ended March 31, 2004 to 7.19 percent from 6.07 percent in the prior year. Looking Ahead "Our earnings expectations for fiscal year 2004, which reflect the loss of a major customer next month, remain unchanged," said Yost. "We expect fiscal 2004 diluted earnings per share, excluding special items, to be in the range of $4.10 per share to $4.20 per share." In response to the major customer loss, Yost indicated that AmerisourceBergen has revised its distribution network rebuilding plan and will 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 instead of three distribution centers by October October: see month. 2004. The Company will continue to build six 300,000-square-foot distribution centers. The highly automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. new network is on schedule to be completed in fiscal 2007. About fiscal 2005, Yost said, "Following the anniversary of our customer loss in May 2005, we expect to return 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. financial performance goals, which include growing revenues with the market at a double-digit rate and growing diluted earnings per share at 15 percent or more annually, excluding special items." Conference Call The Company will host a conference call to discuss its results at 11:00 a.m. Eastern Standard Time on April 26, 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: (888) 428-4480 from inside the U.S., no access code required or (651) 291-5254 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.com. A replay of the telephone call and webcast will be available from 3:00 p.m. April 26, 2004 until 11:59 p.m. May 3, 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: 722054 (320) 365-3844 from outside the U.S., access code: 722054 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 $47 billion in annualized 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 future financial and operating results of AmerisourceBergen and the benefits and other aspects of the 2001 merger between 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. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: competitive pressures; the loss of one or more key customer relationships; customer insolvencies; changes in customer mix; changes in pharmaceutical manufacturers' pricing and distribution policies; regulatory 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; failure to integrate the businesses of AmeriSource and Bergen Brunswig successfully; failure to obtain and retain expected synergies from the merger of AmeriSource and Bergen Brunswig; and other economic, business, competitive, regulatory and/or 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 % of Months Ended % of
March 31, Operating March 31, Operating %
2004 Revenue 2003 Revenue Change
----------- ------- ----------- ------- ------
Revenue:
Operating
revenue $12,344,654 100.00% $11,213,959 100.00% 10%
Bulk
deliveries to
customer
warehouses 1,018,919 948,582 7%
----------- -----------
Total revenue 13,363,573 12,162,541
Cost of goods sold 12,781,125 11,581,352 10%
----------- -----------
Gross profit 582,448 4.72% 581,189 5.18% 0%
Operating expenses:
Distribution,
selling and
administrative 303,266 2.46% 323,563 2.89% -6%
Depreciation
and
amortization 18,618 0.15% 17,069 0.15% 9%
Facility
consolidations
and employee
severance 2,216 0.02% 4,005 0.04% -45%
----------- -----------
Operating income 258,348 2.09% 236,552 2.11% 9%
Equity in
(income)/losses
of affiliates and
other (3,663) -0.03% 5,733 0.05% N/A
Interest expense 30,871 0.25% 38,399 0.34% -20%
----------- -----------
Income before taxes 231,140 1.87% 192,420 1.72% 20%
Income taxes 88,988 0.72% 76,006 0.68% 17%
----------- -----------
Net income $142,152 1.15% $116,414 1.04% 22%
=========== ===========
Earnings per share:
Basic $1.27 $1.06 20%
Diluted $1.23 $1.03 19%
Weighted average
common shares
outstanding:
Basic 111,847 109,438
Diluted 117,946 115,756
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 %
2004 Revenue 2003 Revenue Change
----------- ------- ----------- ------- ------
Revenue:
Operating
revenue $24,610,333 100.00% $22,320,864 100.00% 10%
Bulk deliveries
to customer
warehouses 2,108,353 2,276,210 -7%
----------- -----------
Total revenue 26,718,686 24,597,074
Cost of goods sold 25,609,064 23,494,460 9%
----------- -----------
Gross profit 1,109,622 4.51% 1,102,614 4.94% 1%
Operating expenses:
Distribution,
selling and
administrative 601,593 2.44% 641,245 2.87% -6%
Depreciation
and
amortization 35,436 0.14% 34,338 0.15% 3%
Facility
consolidations
and employee
severance 3,769 0.02% 2,624 0.01% 44%
----------- -----------
Operating income 468,824 1.90% 424,407 1.90% 10%
Equity in
(income)/losses
of affiliates and
other (1,076) 0.00% 5,916 0.03% N/A
Interest expense 62,378 0.25% 72,784 0.33% -14%
----------- -----------
Income before taxes 407,522 1.66% 345,707 1.55% 18%
Income taxes 156,896 0.64% 136,554 0.61% 15%
----------- -----------
Net income $250,626 1.02% $209,153 0.94% 20%
=========== ===========
Earnings per share:
Basic $2.24 $1.93 16%
Diluted $2.17 $1.87 16%
Weighted average
common shares
outstanding:
Basic 111,738 108,101
Diluted 117,948 114,566
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
March 31, September 30, March 31,
2004 2003 2003
------------ ------------ ------------
Current assets:
Cash and cash equivalents $663,764 $800,036 $225,956
Accounts receivable, net 2,848,634 2,295,437 2,163,665
Merchandise inventories 5,606,439 5,733,837 6,898,825
Prepaid expenses and
other 29,403 29,208 16,211
------------ ------------ ------------
Total current
assets 9,148,240 8,858,518 9,304,657
Long-term assets 3,278,818 3,181,607 3,018,982
------------ ------------ ------------
Total assets $12,427,058 $12,040,125 $12,323,639
============ ============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $5,499,671 $5,393,769 $5,782,858
Current portion of
long-term debt 71,405 61,430 60,948
Other current liabilities 845,336 800,903 744,518
------------ ------------ ------------
Total current
liabilities 6,416,412 6,256,102 6,588,324
Long-term debt, less current
portion 1,683,269 1,722,724 2,000,790
Other liabilities 64,422 55,982 42,571
Stockholders' equity 4,262,955 4,005,317 3,691,954
------------ ------------ ------------
Total liabilities
and stockholders'
equity $12,427,058 $12,040,125 $12,323,639
============ ============ ============
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Six Months
Ended Ended
March 31, March 31,
2004 2003
--------- ---------
Operating Activities:
Net income $250,626 $209,153
Non-cash items 72,796 83,272
Changes in operating assets and liabilities (301,404) (907,696)
--------- ---------
Net cash provided by (used in) operating
activities 22,018 (615,271)
--------- ---------
Investing Activities:
Capital expenditures (85,335) (35,162)
Cost of acquired companies, net of cash
acquired, and other (45,710) (32,631)
--------- ---------
Net cash used in investing activities (131,045) (67,793)
--------- ---------
Financing Activities:
Net borrowings under revolving credit and
receivables securitization facilities - 124,000
Net (repayments) borrowings of long-term debt (30,000) 119,934
Exercise of stock options 8,542 12,666
Cash dividends on common stock (5,607) (5,432)
Other (180) (5,488)
--------- ---------
Net cash (used in) provided by financing
activities (27,245) 245,680
--------- ---------
Decrease in cash and cash equivalents (136,272) (437,384)
Cash and cash equivalents at beginning of
period 800,036 663,340
--------- ---------
Cash and cash equivalents at end of period $663,764 $225,956
========= =========
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended March 31,
-----------------------------------
Operating Revenue 2004 2003 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $12,163,350 $11,009,646 10%
PharMerica 392,078 397,095 -1%
Intersegment eliminations (210,774) (192,782) -9%
------------ ------------
Operating revenue $12,344,654 $11,213,959 10%
============ ============
Three Months Ended March 31,
-----------------------------------
Operating Income 2004 2003 % Change
---------------------------------- -----------------------------------
Pharmaceutical Distribution $232,383 $216,456 7%
PharMerica 28,181 24,101 17%
Facility consolidations and
employee severance (2,216) (4,005) 45%
------------ ------------
Operating income $258,348 $236,552 9%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.80% 4.11%
Operating expenses 1.89% 2.15%
Operating income 1.91% 1.97%
PharMerica
Gross profit 30.58% 32.35%
Operating expenses 23.40% 26.28%
Operating income 7.19% 6.07%
AmerisourceBergen Corporation
Gross profit 4.72% 5.18%
Operating expenses 2.63% 3.07%
Operating income 2.09% 2.11%
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
Six Months Ended March 31,
-----------------------------------
Operating Revenue 2004 2003 % Change
--------------------------------- -----------------------------------
Pharmaceutical Distribution $24,253,874 $21,909,216 11%
PharMerica 794,518 799,937 -1%
Intersegment eliminations (438,059) (388,289) -13%
------------ ------------
Operating revenue $24,610,333 $22,320,864 10%
============ ============
Six Months Ended March 31,
-----------------------------------
Operating Income 2004 2003 % Change
--------------------------------- -----------------------------------
Pharmaceutical Distribution $415,919 $379,391 10%
PharMerica 56,674 47,640 19%
Facility consolidations and
employee severance (3,769) (2,624) -44%
------------ ------------
Operating income $468,824 $424,407 10%
============ ============
Percentages of operating revenue:
Pharmaceutical Distribution
Gross profit 3.57% 3.85%
Operating expenses 1.85% 2.12%
Operating income 1.71% 1.73%
PharMerica
Gross profit 30.77% 32.26%
Operating expenses 23.64% 26.31%
Operating income 7.13% 5.96%
AmerisourceBergen Corporation
Gross profit 4.51% 4.94%
Operating expenses 2.60% 3.04%
Operating income 1.90% 1.90%
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 Six Months Ended
March 31, March 31,
2004 2003 2004 2003
--------- --------- --------- ---------
Net income $142,152 $116,414 $250,626 $209,153
Interest expense - convertible
subordinated notes, net of
income taxes 2,530 2,489 5,060 4,978
--------- --------- --------- ---------
Income available to common
stockholders $144,682 $118,903 $255,686 $214,131
========= ========= ========= =========
Weighted average common shares
outstanding - basic 111,847 109,438 111,738 108,101
Effect of dilutive securities:
Options to purchase
common stock 435 654 546 801
Convertible subordinated
notes 5,664 5,664 5,664 5,664
--------- --------- --------- ---------
Weighted average common shares
outstanding - diluted 117,946 115,756 117,948 114,566
========= ========= ========= =========
Earnings per share:
Basic $1.27 $1.06 $2.24 $1.93
Diluted $1.23 $1.03 $2.17 $1.87
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