Printer Friendly

BINDLEY WESTERN INDUSTRIES ANNOUNCES SIX-MONTH RESULTS

 INDIANAPOLIS, July 27 /PRNewswire/ -- Bindley Western Industries, Inc. (NASDAQ: BIND) announced today results for the six months and quarter ending June 30, 1993.
 For the six-month period, sales increased 21 percent to a record $1.608 billion from $1.334 billion in 1992, while earnings declined by six percent to $6.49 million from $6.90 million, before the cumulative effect of a benefit of $2.51 million from a change in the method of accounting for income taxes in the first quarter of 1992. Fully diluted earnings per share, before the cumulative effect of the change in accounting principle, amounted to $.55 in 1993 compared to $.70 in 1992. In 1993, there were 14.3 million average shares outstanding on a fully diluted basis compared to 10.9 million in 1992 as a result of the company's $67 million convertible subordinated debenture offering in September 1992.
 For the quarter, sales increased 18 percent to $809 million from $687 million in 1992, while earnings declined to $3.24 million from $3.80 million in the 1992 quarter. Fully diluted earnings per share declined to $.28 from $.36 in 1992.
 In commenting on the results, Chairman and CEO William E. Bindley indicated management was satisfied with the overall results. "Our internal sales growth, excluding the Charise Charles acquisition, increased by 15 percent in the quarter. More importantly, our direct store delivery business, including Charise Charles, increased by 30 percent in the quarter to $228 million and represented 28 percent of total sales. This DSD increase more than offsets the substantial decline in gross margin generated from manufacturers' price increases through forward purchasing, although continued competition for market share added to the reduction in overall gross margin. On a positive basis, we feel that the industry has probably reached the low point in manufacturers' price increases, and with a probable future inflation rate of around four percent. With a more predictable pricing environment, we should be able to adjust inventory management to permit a better return on working capital."
 He continued by saying that, "On an ongoing basis, the company is well positioned to take advantage of its recently completed $20 million investment in distribution capacity, customer service technology and cost reduction programs to permit it to compete profitably in a rapidly changing industry. In the past four years, we have invested a tremendous amount of time, money and effort in moving from a company almost totally dependent upon chain warehouse sales and forward purchasing to our current position as a major participant in the distribution of a wide range of health care products to a broad range of customers. The success of our recent acquisition of Charise Charles has given us the opportunity to be at the forefront in the biotech and alternate care markets and we expect to expand this presence in the coming months."
 He concluded by saying that, "Bindley Western is continuing to grow the more profitable segments of its business at rates t significantly higher than the industry average. As we begin to leverage the opportunities from recent acquisitions, increased productivity, potential consolidation and cost reduction programs, we are optimistic we will overcome intense sell side margin pressure. Our future results should compare favorably with 1992 and meet or exceed our expectations."
 Indianapolis-based Bindley Western, with 1992 revenues of $2.9 billion, is one of the largest drug wholesalers in the United States specializing in the distribution of ethical pharmaceuticals and related products. The firm serves customers in over 40 states through distribution centers in Altamonte Springs, Fla.; Austell, Ga.; Brockton, Mass.; Charlotte, N.C.; Dallas; Houston; Indianapolis; Middletown, Pa.; Orlando, Fla.; Phoenix; Portland, Maine; San Dimas, Calif.; and Orange, Conn.
 CONSOLIDATED STATEMENT OF EARNINGS
 (000s omitted, except share data)
 For the three month For the six month
 period ended period ended
 June 30, June 30,
 1993 1992 1993 1992
 Net sales $809,103 $686,839 $1,607,556 $1,333,954
 Other income 301 2,085 642 2,894
 Total 809,404 688,924 1,608,198 1,336,848
 Cost of products
 sold 790,553 668,876 1,570,121 1,300,725
 Selling, general
 and administrative 10,742 9,462 20,880 16,792
 Interest expense 1,431 1,916 3,873 4,911
 Depreciation and
 amortization 1,367 1,131 2,680 2,098
 Write down of account
 receivable --- 1,700 --- 1,700
 Total 804,093 683,085 1,597,554 1,326,226
 Earnings before
 income taxes 5,311 5,839 10,644 10,622
 Provision for income
 taxes 2,071 2,044 4,151 3,718
 Net earnings before
 cumulative effect of
 change in accounting
 principle $3,240 $3,795 $6,493 $6,904
 Cumulative effect of
 change in method of
 accounting for
 income taxes --- --- --- 2,510
 Net earnings $3,240 $3,795 $6,493 $9,414
 Earnings per share:
 Primary:
 Earnings before
 cumulative effect
 of change in
 method of
 accounting for

 income taxes 0.30 0.36 0.60 0.75
 Cumulative effect
 of change in
 method of
 accounting for
 income taxes 0.00 0.00 0.00 0.27
 Net earnings 0.30 0.36 0.60 1.02
 Fully diluted:
 Earnings before
 cumulative effect
 of change in method
 of accounting for
 income taxes 0.28 0.36 0.55 0.70
 Cumulative effect
 of change in
 method of
 accounting for
 income taxes 0.00 0.00 0.00 0.23
 Net earnings 0.28 0.36 0.55 0.93
 Average shares
 outstanding:
 Primary 10,901,837 10,669,918 10,396,245 9,248,776
 Fully diluted 14,302,196 10,669,918 14,296,604 10,893,552
 -0- 7/27/93
 /CONTACT: Sue Goebel of Bindley Western Industries, Inc., 317-298-9900/
 (BIND)


CO: Bindley Western Industries, Inc. ST: Indiana IN: REA SU: ERN

AR -- CL026 -- 6495 07/27/93 18:08 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 27, 1993
Words:976
Previous Article:TOP INDUSTRY EXECUTIVE JOINS CTG BOARD
Next Article:CLINTON MAKES CALL TO COMMEMORATE LANDMARK PHONE SERVICE
Topics:


Related Articles
BINDLEY WESTERN INDUSTRIES, INC. REPORTS RECORD 1991 RESULTS; SALES AND EARNINGS INCREASE BY 17 PERCENT
BINDLEY WESTERN ANNOUNCES RECORD SECOND QUARTER RESULTS- SALES INCREASE 26 PERCENT ON 31 PERCENT INCREASE IN EARNINGS
BINDLEY WESTERN INDUSTRIES ANNOUNCES THIRD QUARTER RESULTS
BINDLEY WESTERN INDUSTRIES ANNOUNCES FIRST QUARTER RESULTS; EARNINGS UP 5 PERCENT ON 23 PERCENT SALES INCREASE
BINDLEY WESTERN INDUSTRIES, INC. REPORTS 1993 RESULTS
BINDLEY WESTERN INDUSTRIES ANNOUNCES RECORD RESULTS FOR THE SECOND QUARTER AND SIX MONTH PERIODS
BINDLEY WESTERN INDUSTRIES ANNOUNCES RECORD RESULTS FOR THE SECOND QUARTER AND SIX MONTH PERIODS
Bindley Western Reports Record Results 2nd Quarter Earnings Increase 37 Percent On 49 Percent Sales Gain
Bindley Western Reports Record Results -- 3rd Quarter Earnings Increase 31 Percent on 36 Percent Sales Gain
Bindley Western Reports Record Results for 4th Quarter and Year Ending December 31, 1997

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters