BERGEN BRUNSWIG REPORTS 20% INCREASE IN REVENUES AND 15% INCREASE IN NET EARNINGS FOR ITS FIRST QUARTER OF FISCAL 1996.ORANGE, Calif.--(BUSINESS WIRE)--Jan. 23, 1996--Bergen Brunswig Corporation (NYSE NYSE See: New York Stock Exchange :BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. ) announced today a 20% growth in revenues and a 15% increase in net earnings for its first quarter ended December December: see month. 31, 1995. Revenues climbed to $2.4 billion compared with $2.0 billion for the same period last year and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before advanced to $35.0 million over last year's $30.2 million. Net earnings rose to $15.6 million from $13.5 million last year. On a per share basis, earnings grew 11% to $.39 versus last year's $.35. "We are very pleased with our operating performance this quarter," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. E. Martini, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our robust top line growth signals our healthy position in this competitive environment, with nearly all of the revenue gain driven by new contracts and increased volume from existing customers. We continue to place strong emphasis on reducing costs, and as a result, 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 sales decreased 14 basis points during the quarter to 4.18%. We have been encouraged in our ability to offset the pressure from declining gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. in drug distribution and hold the Company's net earnings margin within two basis points from last year and achieve a 15% growth in net earnings." Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. R. Roden Roden can mean:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. further added, "Each of our operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , while accomplishing strategic goals independently, has begun to work in concert with each other as part of our IntePlex(tm) initiative, marketing the Company as the one-stop-shop resource. This paid off recently for our medical-surgical supply subsidiary, Durr Medical, as they secured their first contract with the Department of Defense (DOD (1) (Dial On Demand) A feature that allows a device to automatically dial a telephone number. For example, an ISDN router with dial on demand will automatically dial up the ISP when it senses IP traffic destined for the Internet. ) for prime vendor status in five geographic regions. The DOD is our Drug Company's third largest managed care customer, and with the integration of our systems, the DOD recognized that they can expect the same high quality service levels with Durr as they already have with the Drug Company. In addition, Durr Medical and Alternate Site Distributors were awarded a joint contract for a customer in the Texas market. We will be utilizing this strategy going forward in building Durr Medical's revenue stream. In our drug operations, the Good Neighbor Pharmacy Good Neighbor Pharmacy is a retailers' cooperative network of over 2,700 independently owned and operated pharmacies. It has a business affiliation with AmerisourceBergen (Bergen Brunswig Drug Company), which sponsors the network and owns the name "Good Neighbor Pharmacy". (R)(GNP GNP See: Gross National Product ) voluntary program continues to grow, bringing our total member stores to nearly 4,000. Additionally, we recently appointed a new Executive Vice President, Chuck Carpenter, to integrate the Supplier Relations and Operations functions of our drug operations, which will strengthen our repackaging efforts and improve our supplier resource capabilities." Bergen Brunswig Corporation, a Fortune 500 Company with 1995 revenues of $8.4 billion, is the nation's largest supplier of pharmaceuticals to the managed care market and the second largest wholesaler to the retail 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. market. Bergen's new subsidiary, IntePlex, focuses on the integration of the Company's pharmaceutical, medical-surgical supply, and oncology/plasma products divisions for one-stop-shop capabilities in the integrated healthcare marketplace. Bergen serves the retail market through distribution to chain store accounts and independent pharmacies An independent pharmacy is a retail pharmacy that is not directly affiliated with any chain pharmacy, such as CVS/pharmacy, Walgreens or Eckerd. However, owners of independent pharmacies will often form alliances with other independents and use their power in numbers to bargain for -- nearly 4,000 of which participate in its GNP program. Bergen Brunswig Corporation's operating entities include: Bergen Brunswig Drug Company, Durr Medical, Alternate Site Distributors, and IntePlex.
Bergen Brunswig Corporation
Summary of Consolidated Sales and Earnings
(Unaudited)
(in thousands except share First Quarter Ended
and per share amounts) December 31,
1995 1994
Net sales and other revenues $2,377,362 $1,983,863 Costs and expenses: Cost of sales 2,243,135 1,867,920 Distribution, selling, general and administrative expenses 99,254 85,792 Total costs and expenses 2,342,389 1,953,712 Operating earnings 34,973 30,151 Net interest expense 8,030 6,791 Earnings before taxes on income 26,943 23,360 Taxes on income 11,316 9,811 Net earnings $15,627 $13,549 Average number of common and common equivalent shares(a) 40,086,995 39,167,216 Earnings per share(a) $ .39 $.35
(a) Gives effect to the 5% stock dividend declared January 26, 1995.
Earnings per common and common equivalent share are based on the
weighted average number of shares of Class A Common Stock
outstanding during each period and the assumed exercise of
employees' stock options.
Bergen Brunswig Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands) December 31, September 30,
1995 1995
Assets Cash and cash equivalents $124,669 $64,400 Accounts and notes receivable 576,098 603,830 Inventories 1,155,230 1,158,465 Other current assets 11,505 17,190
Total current
assets 1,867,502 1,843,885
Net property and other assets 558,255 561,645
Total assets $2,425,757 $2,405,530
Liabilities and Shareowners' Equity Accounts payable $1,168,363 $1,140,466 Other current liabilities 217,758 187,944
Total current
liabilities 1,386,121 1,328,410
Long-term obligations 508,837 557,771 Shareowners' equity 530,799 519,349
Total liabilities and
shareowners' equity $2,425,757 $2,405,530
CONTACT: Bergen Brunswig Corporation Lisa Riordan, 800/840-5131 |
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