Bergen Brunswig reports record revenues and a 14% increase in operating earnings for its fiscal 1995 third quarter.ORANGE, Calif.--(BUSINESS WIRE)--July 25, 1995--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 results for its fiscal 1995 third quarter ended June 30, 1995. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and other revenues reached $2.2 billion, a 15% increase over last year's third quarter revenues of $1.9 billion. 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 increased 14% to $35.8 million compared to last year's $31.5 million. Net earnings climbed to $16.9 million, a 12% gain from the prior year's quarter of $15.0 million. Earnings per share advanced 8% to $.42 from last year's $.39. For the nine months ended June 30, 1995, net sales and other revenues grew to $6.2 billion, a 12% increase over last year's $5.6 billion. Operating earnings rose to $104.3 million, a growth of 20% from the same period last year of $86.7 million. Net earnings advanced to $48.3 million, a 21% increase over last year's $39.9 million. Earnings per share increased 18% to $1.22 compared to last year's $1.03. Operating earnings and net earnings for the nine months ended June 30, 1994, and the foregoing percentage comparisons reflect an earthquake-related charge of $1.4 million and $0.8 million, respectively, or $.02 per share. Earnings per share figures for all periods reflect the 5% stock dividend the Company issued March 1, 1995. Commenting on the results of the third quarter, 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. , said, "We are extremely pleased with the growth of our top line sales, which reflects our intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: marketing efforts and increased business from new and existing customers. "We reduced 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 for the quarter, with a decrease of 16 basis points to 4.09%. For the nine months, operating expenses as a percentage of sales have decreased 14 basis points -- offsetting the gross profit margin 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. deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. and increasing operating earnings margin 12 basis points." Mr. Martini continued, "We are rapidly progressing in our ability to be a significant source in an Integrated Healthcare Network (IHN IHN Interfaith Hospitality Network IHN Infectious Hematopoietic Necrosis (Salmon disease) IHN In His Name IHN Integrated Healthcare Network IHN Integrated Habitat Network ) with the building of our medical-surgical supply division, Durr Medical. During the quarter, we consolidated recently acquired Biddle & Crowther Company into our Durr Medical operations in a successful move that was smooth and transparent to the customer. Earlier this month, we announced a definitive agreement to acquire Colonial Healthcare Supply Co., a $180 million medical-surgical supply distributor centered in the Midwest. Both the Biddle & Crowther and Colonial transactions strengthen our Durr Medical geographic presence nationally, an important aspect for IHN development. "In June, we commenced operations at our New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. Regional Distribution Center, located in Mansfield just outside of Boston, giving us a formidable entry in this strategically important area. We are extremely pleased with the progress this distribution center is exhibiting, with results exceeding our expectations." Bergen Brunswig Corporation, 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. revenues in excess of $8.5 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. Additionally, Bergen is the only pharmaceutical distributor that also supplies medical and surgical products on a national basis. Bergen's specialty wholesaling division, Alternate Site Distributors, furnishes pharmaceuticals and 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. products to clinic and physician accounts.
Bergen Brunswig Corporation
Summary of Consolidated Sales and Earnings
(Unaudited)
(in thousands except share and per share amounts)
Three Months Ended Nine Months Ended
June 30, June 30,
1995 1994 1995 1994(a)
Net sales and
other revenues $2,157,361 $1,878,548 $6,225,440 $5,558,933
Costs and expenses:
Cost of sales 2,033,311 1,767,176 5,857,899 5,229,558
Distribution,
selling, general
and administrative
expenses 88,268 79,872 263,204 242,696
Total costs and expenses 2,121,579 1,847,048 6,121,103 5,472,254 Operating earnings 35,782 31,500 104,337 86,679 Net interest expense 6,688 5,020 21,082 16,393 Earnings before taxes on income 29,094 26,480 83,255 70,286 Taxes on income 12,219 11,453 34,967 30,399 Net earnings $16,875 $15,027 $48,288 $39,887 Average number of common and common equivalent shares(b) 40,049,920 38,916,047 39,728,822 38,541,085 Earnings per share(b) $.42 $.39 $1.22 $1.03 (a) Includes earthquake-related charge of $775 ($1,366 before taxes on income), equivalent to $.02 per share. (b) 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, the assumed conversion of the weighted average number of shares of Class B Common Stock outstanding during each period through the conversion date of February 24, 1994 and the assumed exercise of employees' stock options. CONTACT: Bergen Brunswig, Orange Lisa Riordan, 800/840-5131 |
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