Bergen Brunswig Reports 4th Quarter and 1999 Fiscal Year Results.ORANGE, Calif.--(BUSINESS WIRE)--November 4, 1999-- -- Company Takes Special, Non-Cash Charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $53.7 Million for PharMerica and Stadtlander Receivables -- -- Board of Directors Declares Regular Quarterly Cash Dividend of $.075 -- 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. ) today announced results for its fourth quarter and fiscal year ended September 30, 1999. For the fourth quarter, revenues increased 23% to $4.5 billion, which compares to $3.7 billion last year. For the fiscal year, revenues grew 26% to $17.2 billion which compares to $13.7 billion last year. Excluding acquisitions, revenues increased 16% and 21% for the 1999 fourth quarter and fiscal year, respectively. As previously announced, earnings were impacted by lower than expected results at Stadtlander and PharMerica and by a LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack reserve provision for Bergen Brunswig Drug Company (BBDC BBDC Brantley Capital Corporation (Cleveland, OH) BBDC before bottom dead center (referring to a piston in a engine) BBDC Banting and Best Diabetes Centre BBDC Beijing Benz-DaimlerChrysler Automotive Co, Ltd ) of $15.7 million in the quarter and $18.2 million for the fiscal year. In addition, the Company has taken a $53.7 million charge related to receivables at its Stadtlander and PharMerica subsidiaries. Excluding the LIFO reserve provision for the fourth quarter and fiscal year, as well as the receivables charge in the fourth quarter of fiscal 1999 and the special charges in fiscal 1998, the Company reported the following FIFO (First In First Out) A storage method that retrieves the item stored for the longest time. Contrast with LIFO. See traffic engineering methods. FIFO - first-in first-out results:
-- Net earnings were $12.9 million for the fourth quarter versus
last year's $22.7 million. Diluted earnings per share were $.10
for the fourth quarter versus $.22 for the fourth quarter last
year.
-- Net earnings were $113.5 million for the fiscal year versus last
year's $100.8 million, a 13% increase. Diluted earnings per share
were $.95 for the 1999 fiscal year versus $.98 for the 1998
fiscal year.
Including the receivables charge for fiscal 1999 and the special
charges for fiscal 1998 relating to the write-down of goodwill and
restructuring expenses for Bergen Brunswig Medical Corporation, the
abandonment of software, and merger-related expenses, the Company
reported the following results on a LIFO basis:
-- A net loss of $28.5 million for the fourth quarter of fiscal 1999
compared with last year's net loss of $64.2 million. Diluted loss
per share was $.21 for the fourth quarter of fiscal 1999 versus a
loss of $.63 in last year's fourth quarter.
-- Net earnings were $70.6 million for the 1999 fiscal year compared
with last year's net earnings of $3.1 million. Diluted earnings
per share were $.59 for the 1999 fiscal year versus $.03 for the
1998 fiscal year.
On a LIFO basis, but excluding the receivables charge, 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 were $.03 for the 1999 fourth quarter and $.87 for the 1999 fiscal year and within the range of guidance given in the October 14, 1999 press release. "Despite a difficult business environment 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. sector and problems identified at Stadtlander subsequent to our acquisition, we kept the momentum strong in our core drug distribution business producing fiscal year revenue and FIFO 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 growth of 21% and 22%, respectively, at BBDC," stated Robert 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. of Bergen Brunswig Corporation. "Overall, we are not satisfied with our performance, which has been affected by our acquisitions, and we have taken immediate and definitive actions which we anticipate will bring our profitability back to acceptable levels. We now believe that by taking the receivables charge this quarter, we should be adequately reserved for receivables outstanding at Stadtlander and PharMerica and we move forward into fiscal 2000 with confidence that these issues continue to be addressed on a proactive basis. To that end, we have implemented profit improvement initiatives at PharMerica and we now believe the long-term care industry is starting to show signs of stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders . "Our objective for fiscal 2000 is to grow consolidated revenues at a mid to high-teens level, and earnings per share at the low to mid-teens level. By maximizing our core strengths while positioning the Company to take advantage of new e-commerce opportunities, we believe fiscal 2000 will be a transitional year in which we focus on improving our operating performance and returning shareowner share·own·er n. See shareholder. Noun 1. shareowner - someone who holds shares of stock in a corporation shareholder, stockholder investor - someone who commits capital in order to gain financial returns value." Segment Review Bergen Brunswig Drug Company (BBDC) increased revenues 18% for the quarter and 21% for the fiscal year. BBDC remains Bergen's largest subsidiary, representing 81% of total fourth quarter sales and continues its strong operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. control with 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 declining 14 basis points in the fourth quarter and 21 basis points for the fiscal year. BBDC continued its high on-time delivery and order processing accuracy rates for the fiscal year. Importantly, J.M. Blanco Blanco (meaning the color white in Spanish) is an adjective often used in Spanish surnames. Below is a list of famous people and places associated with the word. , which was acquired in February, is performing ahead of plan and the acceptance of Bergen's 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) and PharmaHealth(TM) programs has exceeded expectations, enabling the Company to leverage its presence in the Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. market. Several noteworthy agreements were obtained during the quarter. Some of the more significant agreements include:
-- Prime vendor agreement with SaveMart Supermarkets, one of the
strongest chains in central and northern California, expected to
generate revenues of more than $100 million in incremental new
revenue to Bergen over a three-year contract period.
-- Three-year agreement with BJC Health System in the Midwest and
Promina Health System in the Southeast, two of the nation's
leading integrated healthcare delivery networks and flagship
members of the Novation group purchasing organization, whose
combined purchases are expected to generate more than $450
million in revenues to Bergen over the life of the contracts.
These agreements attest to Bergen's consistency of service and
willingness to look for logistic opportunities with its
customers.
-- Two-year agreement with the Health Resources and Service
Administration (HRSA), a division of the U.S. Department of
Health and Human Services, is the first national prime vendor
program to be awarded by HRSA's Office of Drug Pricing. This
award is proof of Bergen's expertise in reducing supply channel
costs among government agencies.
-- Three-year primary source contract with Pharmacy Services Inc.
(PSI), a cooperative buying group for independent pharmacies
affiliated with the Michigan Pharmacists Association. This
contract, which is expected to generate more than $600 million in
revenue over the life of the contract, expands beyond product
distribution, offering value-added service opportunities to
current and new customers in Michigan and Ohio. The continuation
of this long relationship with PSI demonstrates Bergen's
commitment to the independent pharmacy market and this new
contract along with Bergen's GNP branding program, Internet
opportunities and now central fill initiative all combine to
bring excitement to the marketplace.
At the same time, BBDC has undertaken a three-point plan to build
upon its demonstrated successes while maximizing the strengths of its
management team in order to increase revenues and improve operational
efficiencies. BBDC's priorities for fiscal 2000 are as follows:
-- Develop the highest quality, lowest cost distribution network for
business-to-business and direct to consumer fulfillment.
-- Develop cost saving/margin enhancing logistics solutions for its
retail and health systems clients.
-- Deliver effective share/brand movement services.
Bergen Brunswig Specialty Company (BBSC) -- Bergen's second largest subsidiary, comprising ASD ASD abbr. atrial septal defect ASD Atrial septal defect, see there Specialty Healthcare, Stadtlander Drug Company and Integrated Commercialization Solutions (ICS (1) (Internet Connection Sharing) A Windows feature that enables two or more computers to share one Internet connection. First introduced in Windows 98 Second Edition, sharing is accomplished with network address translation (NAT), which is the common method. ) - delivered a 92% revenue increase for the fourth quarter and a 131% increase for the year. BBSC's profitability was impacted by bad debt and lower than anticipated gross margin at Stadtlander. To address the collection of receivables going forward, Stadtlander is implementing a new accounts receivable software Financial software that deals with money owed to the organization. It provides reports on aging (amounts uncollected over time) and collection reports as well as credit memos and payment history. system, together with new operational procedures The detailed methods by which headquarters and units carry out their operational tasks. , in an effort to improve its order processing which should result in lower bad debt experience. Specifically, Stadtlander has outsourced certain customer collection activities and successfully engaged the Lash Group, a Bergen subsidiary, to obtain reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. sources for indigent indigent 1) n. a person so poor and needy that he/she cannot provide the necessities of life (food, clothing, decent shelter) for himself/herself. 2) n. one without sufficient income to afford a lawyer for defense in a criminal case. patients. The Company continues to make improvements and anticipates full implementation of these procedures within the next six months. The goals of the new systems and processes are to reduce Stadtlander's days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). to under 50 days from 70 days at year end, and substantially lower Stadtlander's bad debt experience by the end of fiscal year 2000. One of the highlights during the fourth quarter included an exclusive three-year agreement signed with Johns Hopkins Noun 1. Johns Hopkins - United States financier and philanthropist who left money to found the university and hospital that bear his name in Baltimore (1795-1873) Hopkins 2. Comprehensive Transplant transplant or graft Partial or complete organ or other body part removed from one site and attached at another. It may come from the same or a different person or an animal. One from the same person—most often a skin graft—is not rejected. Center. Under this agreement, Stadtlander now manages an on-site pharmacy and will dispense dispense /dis·pense/ (-pens´) to prepare medicines for and distribute them to their users. dis·pense v. To prepare and give out medicines. transplant pharmaceuticals at the hospital as well as have the opportunity to provide traditional home delivery services for Johns Hopkins patients receiving medication at home. Additionally, Stadtlander recently obtained contracts for prison business in the states of Illinois and Indiana, yielding a patient gain of 17,100. The Company expects each of these recent agreements to contribute positively to Stadtlander's profitability. ASD continues to benefit from growth in the specialty pharmaceutical market, especially within the 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. sector. ASD's exclusive and enhanced relationship with International Oncology Network (ION) remains a positive contributor. ION now has almost 1,300 members which encompasses approximately 500 practices, up nearly 150% since last year's fourth quarter. PharMerica, Bergen's institutional pharmacy provider which was acquired on April 26, 1999, reported revenues of $287 million for the fourth quarter. This compares to $290 million in PharMerica's September 1998 quarter. Since acquired, PharMerica contributed $475 million in revenue to Bergen for the 1999 fiscal year (before inter-company eliminations). For the twelve-month period ending September 30, 1999, PharMerica's revenues were $1.150 billion compared to $1.024 billion for the twelve-month period ended September 30, 1998 (excluding the Corrections business which was sold to Stadtlander July 2, 1998), a 12% increase. PharMerica's Medicare Part A revenues decreased 36% since June 1999 and 47% since March 1999; however, while down substantially from the previous quarters, PharMerica did see a stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. trend during the fourth quarter. PharMerica has made several management changes to support its growth and potential for success in the future. To provide a better focus on the long-term care marketplace and continue the growth of PMSI PMSI Purchase-Money Security Interest (generally a lien resulting from a purchase such as a car loan) PMSI Physician Micro Systems, Inc. PMSI Programme de Médicalisation des Systèmes d'Information Hospitaliers PMSI Popular Mortgage Servicing, Inc. , PharMerica has separated the responsibilities for sales and marketing of these two entities, providing dedicated resources to each. Additionally, PharMerica has taken billing and receivables, which used to report to field operations, and reassigned the responsibility to its senior financial executive. A proven Bergen controller has joined the PharMerica senior finance team to strengthen its resources. Also, joining PharMerica's senior management team will be Bergen's former vice president of operations who will become senior vice president of operations, assuming purchasing, operational and logistics responsibilities. PharMerica's cost reduction and profit improvement efforts have produced the following results:
-- PharMerica reduced its workforce from 7,016 in June to 6,670 as
of September and consolidated six long-term care pharmacy
locations during the past six months.
-- Days sales outstanding have improved by five days since June 30,
1999.
-- Long-term care and assisted living beds increased by almost 5,000
during the September 1999 quarter. At the same time, bed
turnover, as a result of competitive pricing, has begun to
subside.
-- Eight long-term care pharmacies were converted over to the AS400
platform during the quarter, with plans to convert another 38
over the next 15 months. This common platform will enhance the
quality and timeliness of key operational data available to
management from PharMerica's data warehouse; improve PharMerica's
ability to standardize and implement best practices; and lower
the cost of system support and future software enhancements.
-- Outsourcing of delivery service has been initiated. To date, 25
pharmacies have converted their fleets with a plan to outsource
delivery services for all pharmacies by the end of fiscal 2000.
Bergen Brunswig Medical Company (BBMC), the Company's medical-surgical supply subsidiary, grew revenues 13% during the year, of which 9% was from acquisitions and 4% from internal growth. Operating earnings were substantially improved quarter over quarter and for the full year. The increase was primarily the result of lower goodwill amortization as well as a continued focus on operating expense control. During the fourth quarter, BBMC successfully implemented the first phase of its "Best of Best" preferred product offering resulting in beneficial cost saving opportunities for its customers. The program is also producing both gross margin enhancement as well as operating expense reduction opportunities for BBMC through its focus on preferred supplier relations and improved inventory efficiencies. BBMC expects to increase the number of preferred product categories in the Best of Best program throughout the first half of 2000. BBMC also continued to secure its position and increase revenue penetration with key national group purchasing organizations A group purchasing organization is an entity that leverages the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members. Many GPOs are funded by administrative fees that are actually paid by the vendors. (GPO) and their members including Novation The substitution of a new contract for an old one. The new agreement extinguishes the rights and obligations that were in effect under the old agreement. A novation ordinarily arises when a new individual assumes an obligation to pay that was incurred by the original party , Consorta and the Department of Defense. Distribution facility consolidation and improvement took place throughout the year allowing BBMC to enhance its service to customers with increased capacity and improved efficiencies. Early in the year, BBMC successfully consolidated its Indianapolis, Indiana “Indianapolis” redirects here. For other uses, see Indianapolis (disambiguation). Indianapolis (IPA: [ˌɪndiəˈnæpəlɪs]) is the capital city of the U.S. and Jacksonville, Florida “Jacksonville” redirects here. For other uses, see Jacksonville (disambiguation). Jacksonville is the largest city in the state of Florida and the county seat of Duval County. operations into upgraded facilities in the Mid-west and Southeast, respectively. During the fourth quarter, BBMC relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. its Spokane, Washington Spokane (pronounced [spoʊ̯ˈkæn]) is a city located in Eastern Washington. The seat of Spokane County, Spokane is the metropolitan center of the Inland Northwest, the second largest city in Washington state, and facility to a new larger facility and within the first three months of fiscal year 2000, BBMC plans to move its facilities to new state of the art locations in Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. ; Honolulu, Hawaii For the city and county of Honolulu, see City & County of Honolulu. “Honolulu” redirects here. For other uses, see Honolulu (disambiguation). Honolulu is the capital as well as the most populous community of the State of Hawaii, United States. ; and Durham, North Carolina Durham is a city in the U.S. state of North Carolina. It is the county seat of Durham CountyGR6 and is the fourth-largest city in the state by population. . These facilities will accommodate revenue growth and operating efficiencies through additional capacity, better racking systems and enhanced inventory management processes. Finally, during the fourth quarter, BBMC realigned its management and organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. to facilitate its fiscal 2000 objectives. The new organization will enhance BBMC's ability to meet its objectives to grow profitably, understand and meet customer needs and improve operating efficiency. Internet Initiatives Bergen is taking the lead in bringing value to its customers by providing them with meaningful Internet opportunities and presence. For example, BBDC is providing its independent pharmacy 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 customers with branding and revenue opportunities through strategic partnerships with HealthCentral/ePills.com - one of the leading healthcare content sites and featuring Dr. Dean Edell Doctor Dean Edell (born 1942) is an American physician and broadcaster in the United States who hosts the Dr. Dean Edell radio program, a syndicated radio talk show which is on the air daily on weekday afternoons. -- more.com - one of the largest online health, beauty and wellness stores -- and iFlourish.com - the Andersen Consulting See Accenture. venture. These partnerships give Bergen's 2,000+ GNP/PlusCare customers a competitive edge in the e-commerce marketplace as BBDC has taken the extra step to make them a part of its Internet 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. contracts. In addition, BBDC launched myGNP.com, offering website presence to individual GNP GNP See: Gross National Product stores. Additionally, Bergen commenced Internet fulfillment operations at the end of June and fulfills both over-the-counter and pharmaceutical products from facilities in Louisville, Kentucky  “Louisville” redirects here. For other uses, see Louisville (disambiguation). and Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada. With over 20,000 SKUs immediately available to pick, pack and ship, on-line consumers can receive products within 24 hours of placing their order. BBSC will become an active participant in the Internet auction space as ASD launches Pharmabid.com later this month. Pharmabid.com, the healthcare industry's first Internet pharmaceutical auction site, will provide licensed physicians, physician assistants, and healthcare providers with a vehicle for purchasing pharmaceutical products at prices that are determined by the competitive market. Pharmabid.com will also offer pharmaceutical manufacturers a mechanism for reducing inventory of products with a limited shelf life. Pharmabid.com will offer healthcare providers real-time access to critical products at competitive market prices. Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Bergen and certain of its officers have been named as defendants in several shareholder lawsuits filed recently. The Company believes these claims are without merit and intends to vigorously defend against them. Dividend Declared The Board of Directors has declared a regular quarterly cash dividend of $.075 per share on Class A Common Stock, payable on December 1, 1999 to shareowners of record at the close of business on November 16, 1999. About Bergen Brunswig Bergen Brunswig Corporation, headquartered in Orange County, California Orange County is a county in Southern California, United States. Its county seat is Santa Ana. According to the 2000 Census, its population was 2,846,289, making it the second most populous county in the state of California, and the fifth most populous in the United States. , is a leading supplier of pharmaceuticals, medical-surgical supplies and specialty healthcare products as well as information management solutions and 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" . Bergen's customers include the nation's healthcare providers (hospitals, nursing homes, physicians), drug stores, manufacturers and patients. Through its subsidiaries, Bergen provides product distribution; logistics; pharmacy management programs; and Internet fulfillment strategies designed to reduce costs and improve patient outcomes across the entire healthcare spectrum. Bergen Brunswig press releases are available on the Company's website at www.bergenbrunswig.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Except for historical information, all other information set forth in this press release, such as earnings forecasts and earnings rate projections, consists of "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These "forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those projected or implied. Such statements may be identified by the use of forward-looking language such as "may," "will," "should," "expect," "anticipate," "estimate," "believe," "think," "continue," or the negatives or other variations thereof or other similar terminology. Such risks and uncertainties include the risks described in exhibit 99 to the Company's Quarterly Report on Form 10Q for the quarter ended June 30, 1999 and in other reports and exhibits filed with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, the costs and difficulties related to the integration of acquired businesses, the loss or disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of one or more key customer or supplier relationships, changes in the distribution outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. pattern for pharmaceutical products and/or services, and the costs and other effects of governmental regulation and legal and administrative proceedings An administrative proceeding is a non-judicial determination of fault or guilt and may include in some cases penalties of various forms. A "Captain's Mast", held by a commanding officer of a warship is one such proceeding. . The Company assumes no obligation to update the information in this release. Conference Call Today The senior management of Bergen Brunswig will hold a conference call today at 2:00pm EST EST electroshock therapy. EST abbr. electroshock therapy to discuss the quarter in more detail. To access the call, dial (212) 346-0259 approximately 10 minutes prior to the call. The Company will also make a replay available until 5:00pm EST on November 9, 1999. The replay number is (800) 633-8284 and the pass code is 1 3 4 3 9 1 1 0. -0-
Bergen Brunswig Corporation
Summary of Consolidated Sales and Earnings
(Unaudited)
(in thousands except Fourth Quarter Ended Twelve Months Ended
share and per share
amounts) September 30, September 30,
--------------------------------------------------
1999 1998 1999 1998
--------------------------------------------------
Net sales and other revenues:
Excluding bulk
shipments to
customers'
warehouses $ 4,527,966 $ 3,666,166 $ 17,244,905 $ 13,720,017
Bulk shipments
to customers'
warehouses 1,185,475 978,540 4,000,633 3,401,651
---------------------------------------------------
Total net
sales and
other
revenues 5,713,441 4,644,706 21,245,538 17,121,668
---------------------------------------------------
Costs and expenses:
Cost of sales 5,392,668 4,444,895 20,146,011 16,371,403
Distribution,
selling,
general and
administrative
expenses 278,632 144,725 837,774 534,119
Special
charges (a) 53,700 100,447 53,700 110,247
---------------------------------------------------
Total costs and
expenses 5,725,000 4,690,067 21,037,485 17,015,769
--------------------------------------------------
Operating earnings
(loss) (11,559) (45,361) 208,053 105,899
Net interest expense 26,237 9,657 74,143 39,996
--------------------------------------------------
Earnings (loss)
before taxes
on income and
distributions on
preferred securities
of subsidiary trust (37,796) (55,018) 133,910 65,903
Taxes on income
(income tax
benefit) (12,785) 9,205 58,461 62,801
--------------------------------------------------
Earnings (loss)
before distributions
on preferred
securities of
subsidiary trust (25,011) (64,223) 75,449 3,102
Distributions on
preferred securities
of subsidiary trust,
net of income tax
benefit of $2,324
and $3,184,
respectively (3,526) -- (4,876) --
--------------------------------------------------
Net earnings (loss) $ (28,537) $ (64,223) $ 70,573 $ 3,102
--------------------------------------------------
Earnings (loss) per share (b):
Basic $ (.21) $ (.63) $ .60 $ .03
Diluted (c) $ (.21) $ (.63) $ .59 $ .03
--------------------------------------------------
Average number of shares (b):
Basic 134,208 101,715 117,835 101,118
Diluted 134,780 103,211 119,095 102,620
---------------------------------------------------
Pro forma results
excluding special
charges:
---------------------------------------------------
Operating earnings $ 42,141 $ 55,086 $ 261,753 $ 216,146
---------------------------------------------------
Earnings before taxes
on income and
distributions on
preferred securities
of subsidiary trust $ 15,904 $ 45,429 $ 187,610 $ 176,150
---------------------------------------------------
Net earnings $ 3,952 $ 26,803 $ 103,062 $ 103,928
---------------------------------------------------
Earnings per share (b):
Basic $ .03 $ .26 $ .87 $ 1.03
Diluted $ .03 $ .26 $ .87 $ 1.01
---------------------------------------------------
(a) Special charge for 1999 relates to a provision for doubtful
receivables. Special charges for 1998 relate to provisions for the
writedown of goodwill, merger expenses, abandonment of capitalized
software and restructuring expenses.
(b) Gives effect to the 2-for-1 stock split paid December 1,
1998.
(c) Fourth quarter 1998 actual computation is $(.62) and is
anti-dilutive.
Bergen Brunswig Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, September 30,
(in thousands) 1999 1998
-----------------------------
Assets
Cash and cash equivalents $ 116,356 $ 79,004
Accounts and notes receivable 1,478,990 920,247
Inventories 1,813,716 1,458,290
Other current assets 59,517 43,247
----------------------------
Total current assets 3,468,579 2,500,788
Goodwill- net 1,642,424 253,568
Net property and other assets 416,027 248,856
----------------------------
Total assets $5,527,030 $3,003,212
----------------------------
Liabilities and Shareowners' Equity
Accounts payable $1,693,690 $1,579,332
Other current liabilities 987,636 330,038
----------------------------
Total current liabilities 2,681,326 1,909,370
Long-term obligations 1,050,214 464,778
Company-obligated mandatorily redeemable
preferred securities of subsidiary
trust holding solely debt securities
of the company 300,000 --
Shareowners' equity 1,495,490 629,064
-----------------------------
Total liabilities and shareowners'
equity $5,527,030 $3,003,212
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