AmerisourceBergen Corporation (NYSE: ABC) today reported that in its fiscal year 2021 third quarter ended June 30, 2021, revenue increased 17.7 percent year-over-year to $53.4 billion. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $1.40 for the June quarter of fiscal 2021, compared to $1.41 in the prior year quarter. Adjusted diluted EPS, which is a non-GAAP measure that excludes items described below, increased 16.8 percent to $2.16 in the fiscal third quarter.
AmerisourceBergen is updating its outlook for fiscal year 2021. The Company does not provide forward-looking guidance on a GAAP basis, as discussed below in Fiscal Year 2021 Expectations. Adjusted diluted EPS guidance has been raised from the previous range of $8.90 to $9.10 to a range of $9.15 to $9.30, reflecting growth of 16 percent to 18 percent versus the previous fiscal year.
"During the third quarter, AmerisourceBergen continued to capitalize on our differentiated, pharmaceutical-centric value proposition and successfully executed on our key strategic initiatives including completing the acquisition of Alliance Healthcare," said Steven H. Collis, Chairman, President and Chief Executive Officer of AmerisourceBergen. "We are proud of the execution by our teams to deliver these results and pleased to increase financial guidance for fiscal 2021 to reflect the continued strong performance across our businesses."
"AmerisourceBergen's purpose-driven teams continue to provide critical pharmaceutical distribution services and innovative pharmaceutical services to customers across our global footprint," Mr. Collis continued. "By providing differentiated value to our stakeholders, focusing on our customers, expanding on our leadership in specialty distribution, and executing, innovating, and supporting pharmaceutical innovation globally, we are well positioned to create long-term stakeholder value as we remain united in our responsibility to create healthier futures."
Third Quarter Fiscal Year 2021 Summary Results
|
GAAP |
Adjusted (Non-GAAP) |
Revenue |
$53.4B |
$53.4B |
Gross Profit |
$1.9B |
$1.6B |
Operating Expenses |
$1,267M |
$996M |
Operating Income |
$621M |
$631M |
Interest Expense, Net |
$51M |
$51M |
Effective Tax Rate |
48.5% |
21.0% |
Net Income Attributable to ABC |
$292M |
$452M |
Diluted Earnings Per Share |
$1.40 |
$2.16 |
Diluted Shares Outstanding |
209M |
209M |
Below, AmerisourceBergen presents descriptive summaries of the Company’s GAAP and adjusted (non-GAAP) quarterly results. In the tables that follow, GAAP results and GAAP to non-GAAP reconciliations are presented. For more information related to non-GAAP financial measures, including adjustments made in the periods presented, please refer to the "Supplemental Information Regarding non-GAAP Financial Measures" following the tables.
Third Quarter GAAP Results
Third Quarter Adjusted (non-GAAP) Results
Segment Discussion
The Company's operations are comprised of the Pharmaceutical Distribution Services reportable segment and other operating segments that are not significant enough to require separate reportable segment disclosure and, therefore, have been included in Other for the purpose of the reportable segment presentation. Other consists of operating segments that focus on global commercialization services, animal health (MWI Animal Health or "MWI"), and international pharmaceutical wholesale and related service operations (Alliance Healthcare). The operating segments that focus on global commercialization services include AmerisourceBergen Consulting Services ("ABCS") and World Courier.
Pharmaceutical Distribution Services Segment
Pharmaceutical Distribution Services revenue was $49.3 billion in the third quarter of fiscal 2021, an increase of 13.2 percent compared to the same quarter in the prior fiscal year primarily due to increased sales of specialty products, including COVID-19 treatments, and overall market growth. Segment operating income of $483.9 million in the third quarter of fiscal 2021 was up 13.4 percent compared to the same period in the previous fiscal year as a result of strong performance across our distribution businesses including increased sales of specialty products.
Other
Revenue in Other was $4.1 billion in the third quarter of fiscal 2021, an increase of 128.0 percent compared to the same period in the prior fiscal year primarily due to the acquisition of Alliance Healthcare and growth in the other operating segments: MWI, World Courier, and ABCS. Operating income in Other increased 77.2 percent to $146.9 million in the third quarter of fiscal 2021 primarily due to the acquisition of Alliance Healthcare and growth at MWI and World Courier.
Recent Company Highlights & Milestones
Fiscal Year 2021 Expectations
The Company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available or cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.
Fiscal Year 2021 Expectations on an Adjusted (non-GAAP) Basis
In June 2021, AmerisourceBergen updated its fiscal year 2021 financial guidance for revenue, adjusted diluted EPS and weighted average shares following the closing of the Alliance Healthcare acquisition to reflect the expected contribution from Alliance Healthcare and the weighted average share count impact of the 2 million shares of AmerisourceBergen common stock that the Company delivered to Walgreens at the closing of the transaction.
AmerisourceBergen is now updating its fiscal year 2021 financial guidance to reflect the Company’s continued strong performance across its businesses. The Company now expects:
Additional expectations now include:
Pharmaceutical Distribution Services operating income growth to be in the low-double digit percent range, up from growth in the high-single digit percent range;
Other, which is comprised of Alliance Healthcare and the Global Commercialization Services & Animal Health businesses, operating income to be approximately $610 to $620 million, up from growth in the low-double digit percent range; and
All other previously communicated aspects of the Company's fiscal year 2021 financial guidance and assumptions remain the same.
Dividend Declaration
The Company's Board of Directors declared a quarterly cash dividend of $0.44 per common share, payable September 7, 2021, to stockholders of record at the close of business on August 16, 2021.
Opioid Litigation
On July 21, 2021, AmerisourceBergen announced that it and the two other national pharmaceutical distributors have negotiated a comprehensive proposed settlement agreement that, if all conditions are satisfied, would result in the resolution of a substantial majority of opioid lawsuits filed by state and local governmental entities.
Conference Call & Slide Presentation
The Company will host a conference call to discuss the results at 8:30 a.m. ET on August 4, 2021. A slide presentation for investors has also been posted on the Company's website at investor.amerisourcebergen.com. Participating in the conference call will be:
The dial-in number for the live call will be (844) 808-6694. From outside the United States, dial +1 (412) 317-5282. No access code is required. The live call will also be webcast via the Company’s website at investor.amerisourcebergen.com. Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.
Replays of the call will be made available via telephone and webcast. A replay of the webcast will be posted on investor.amerisourcebergen.com approximately one hour after the completion of the call and will remain available for one year. The telephone replay will also be available approximately one hour after the completion of the call and will remain available for seven days. To access the telephone replay from within the U.S., dial (877) 344-7529. From Canada, dial +1 (855) 669-9658. From outside the United States and Canada, dial +1 (412) 317-0088. The access code for the replay is 10157948.
About AmerisourceBergen
AmerisourceBergen fosters a positive impact on the health of people and communities around the world by advancing the development and delivery of pharmaceuticals and healthcare products. As a leading global healthcare company, with a foundation in pharmaceutical distribution and solutions for manufacturers, pharmacies and providers, we create unparalleled access, efficiency and reliability for human and animal health. Our 41,000 global team members power our purpose: We are united in our responsibility to create healthier futures. AmerisourceBergen is ranked #8 on the Fortune 500 with more than $200 billion in annual revenue. Learn more at investor.amerisourcebergen.com.
AmerisourceBergen's Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"). Words such as "expect," "likely," "outlook," "forecast," "would," "could," "should," "can," "project," "intend," "plan," "continue," "sustain," "synergy," "on track," "believe," "seek," "estimate," "anticipate," "may," "possible," "assume," variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated. Among the factors that could cause actual results to differ materially from those projected, anticipated, or implied are the following: unfavorable trends in brand and generic pharmaceutical pricing, including in rate or frequency of price inflation or deflation; competition and industry consolidation of both customers and suppliers resulting in increasing pressure to reduce prices for our products and services; changes in the United States healthcare and regulatory environment, including changes that could impact prescription drug reimbursement under Medicare and Medicaid; increasing governmental regulations regarding the pharmaceutical supply channel; declining reimbursement rates for pharmaceuticals; continued federal and state government enforcement initiatives to detect and prevent suspicious orders of controlled substances and the diversion of controlled substances; continued prosecution or suit by federal, state and other governmental entities of alleged violations of laws and regulations regarding controlled substances, including due to failure to achieve a global resolution of the multi-district opioid litigation and other related state court litigation, and any related disputes, including shareholder derivative lawsuits; increased federal scrutiny and litigation, including qui tam litigation, for alleged violations of laws and regulations governing the marketing, sale, purchase and/or dispensing of pharmaceutical products or services, and associated reserves and costs; failure to comply with the Corporate Integrity Agreement; material adverse resolution of pending legal proceedings; the retention of key customer or supplier relationships under less favorable economics or the adverse resolution of any contract or other dispute with customers or suppliers; changes to customer or supplier payment terms, including as a result of the COVID-19 impact on such payment terms; the integration of the Alliance Healthcare business into the Company being more difficult, time consuming or costly than expected; the Company’s or Alliance Healthcare’s failure to achieve expected or targeted future financial and operating performance and results; the effects of disruption from the acquisition and related strategic transactions on the respective businesses of the Company and Alliance Healthcare and the fact that the acquisition and related strategic transactions may make it more difficult to establish or maintain relationships with employees, suppliers and other business partners; the acquisition of businesses, including the acquisition of the Alliance Healthcare businesses and related strategic transactions, that do not perform as expected, or that are difficult to integrate or control, or the inability to capture all of the anticipated synergies related thereto or to capture the anticipated synergies within the expected time period; risks associated with the strategic, long-term relationship between Walgreens Boots Alliance, Inc. and the Company, including with respect to the pharmaceutical distribution agreement and/or the global generic purchasing services arrangement; managing foreign expansion, including non-compliance with the U.S. Foreign Corrupt Practices Act, anti-bribery laws, economic sanctions and import laws and regulations; financial market volatility and disruption; changes in tax laws or legislative initiatives that could adversely affect the Company's tax positions and/or the Company's tax liabilities or adverse resolution of challenges to the Company's tax positions; substantial defaults in payment, material reduction in purchases by or the loss, bankruptcy or insolvency of a major customer, including as a result of COVID-19; the loss, bankruptcy or insolvency of a major supplier, including as a result of COVID-19; financial and other impacts of COVID-19 on our operations or business continuity; changes to the customer or supplier mix; malfunction, failure or breach of sophisticated information systems to operate as designed; risks generally associated with data privacy regulation and the international transfer of personal data; natural disasters or other unexpected events, such as additional pandemics, that affect the Company’s operations; the impairment of goodwill or other intangible assets (including any additional impairments with respect to foreign operations), resulting in a charge to earnings; the Company's ability to manage and complete divestitures; the disruption of the Company's cash flow and ability to return value to its stockholders in accordance with its past practices; interest rate and foreign currency exchange rate fluctuations; declining economic conditions in the United States and abroad; and other economic, business, competitive, legal, tax, regulatory and/or operational factors affecting the Company's business generally. Certain additional factors that management believes could cause actual outcomes and results to differ materially from those described in forward-looking statements are set forth (i) in Item 1A (Risk Factors), in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
|
|
Three
|
|
% of Revenue |
|
Three
|
|
% of Revenue |
|
% Change |
||||||||
Revenue |
|
$ |
53,405,695 |
|
|
|
|
|
$ |
45,366,777 |
|
|
|
|
17.7 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold |
|
51,517,489 |
|
|
|
|
|
44,141,061 |
|
|
|
|
16.7 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit 1 |
|
1,888,206 |
|
|
|
3.54 |
% |
|
1,225,716 |
|
|
2.70 |
% |
|
54.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||||||
Distribution, selling, and administrative 2 |
|
913,414 |
|
|
|
1.71 |
% |
|
666,885 |
|
|
1.47 |
% |
|
37.0 |
% |
||
Depreciation and amortization |
|
127,101 |
|
|
|
0.24 |
% |
|
95,415 |
|
|
0.21 |
% |
|
33.2 |
% |
||
Employee severance, litigation, and other 3 |
|
226,964 |
|
|
|
|
|
58,585 |
|
|
|
|
|
|||||
Total operating expenses |
|
1,267,479 |
|
|
|
2.37 |
% |
|
820,885 |
|
|
1.81 |
% |
|
54.4 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
620,727 |
|
|
|
1.16 |
% |
|
404,831 |
|
|
0.89 |
% |
|
53.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other (income) loss, net 4 |
|
(4,141 |
) |
|
|
|
|
1,073 |
|
|
|
|
|
|||||
Interest expense, net |
|
51,338 |
|
|
|
|
|
37,748 |
|
|
|
|
36.0 |
% |
||||
Loss on early retirement of debt |
|
— |
|
|
|
|
|
22,175 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
573,530 |
|
|
|
1.07 |
% |
|
343,835 |
|
|
0.76 |
% |
|
66.8 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense 5 |
|
278,082 |
|
|
|
|
|
56,567 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
295,448 |
|
|
|
0.55 |
% |
|
287,268 |
|
|
0.63 |
% |
|
2.8 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net (income) loss attributable to noncontrolling interests |
|
(3,326 |
) |
|
|
|
|
2,171 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to AmerisourceBergen Corporation |
|
$ |
292,122 |
|
|
|
0.55 |
% |
|
$ |
289,439 |
|
|
0.64 |
% |
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.42 |
|
|
|
|
|
$ |
1.42 |
|
|
|
|
— |
% |
||
Diluted |
|
$ |
1.40 |
|
|
|
|
|
$ |
1.41 |
|
|
|
|
(0.7 |
)% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
206,156 |
|
|
|
|
|
203,654 |
|
|
|
|
1.2 |
% |
||||
Diluted |
|
208,912 |
|
|
|
|
|
205,544 |
|
|
|
|
1.6 |
% |
________________________________________
1 Includes a $113.9 million LIFO credit and a $147.4 million gain from antitrust litigation settlements in the three months ended June 30, 2021. Includes a $6.1 million LIFO expense in the three months ended June 30, 2020.
2 Includes $12.5 million of PharMEDium shutdown costs in the three months ended June 30, 2020.
3 Includes a $6.7 million of employee severance, a $124.3 million legal accrual related to our proposed opioid litigation settlement, $28.9 million of litigation costs related to legal fees in connection with opioid lawsuits and investigations, and $67.0 million of other costs in connection with acquisition-related deal and integration costs, business transformation efforts, and other restructuring initiatives in the three months ended June 30, 2021. Includes $6.5 million of employee severance, $31.4 million of litigation costs related to legal fees in connection with opioid lawsuits and investigations, and $20.7 million of other costs in connection with business transformation efforts, acquisition-related deal and integration costs, and other restructuring initiatives in the three months ended June 30, 2020.
4 Includes $6.2 million of income on the currency remeasurement of deferred tax assets relating to Swiss tax reform in the three months ended June 30, 2021.
5 Includes $127.6 million of expense relating to UK tax reform and $9.0 million of expense relating to Swiss tax reform in the three months ended June 30, 2021.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
|
|
Nine
|
|
% of Revenue |
|
Nine
|
|
% of Revenue |
|
% Change |
|||||||||
Revenue |
|
$ |
155,076,422 |
|
|
|
|
|
$ |
140,649,158 |
|
|
|
|
|
10.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of goods sold |
|
150,202,605 |
|
|
|
|
|
136,804,121 |
|
|
|
|
|
9.8 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit 1 |
|
4,873,817 |
|
|
|
3.14 |
% |
|
3,845,037 |
|
|
|
2.73 |
% |
|
26.8 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Distribution, selling, and administrative 2 |
|
2,378,563 |
|
|
|
1.53 |
% |
|
2,046,251 |
|
|
|
1.45 |
% |
|
16.2 |
% |
||
Depreciation and amortization |
|
327,451 |
|
|
|
0.21 |
% |
|
293,725 |
|
|
|
0.21 |
% |
|
11.5 |
% |
||
Employee severance, litigation, and other 3 |
|
375,501 |
|
|
|
|
|
165,626 |
|
|
|
|
|
|
|||||
Impairment of PharMEDium assets |
|
— |
|
|
|
|
|
361,652 |
|
|
|
|
|
|
|||||
Total operating expenses |
|
3,081,515 |
|
|
|
1.99 |
% |
|
2,867,254 |
|
|
|
2.04 |
% |
|
7.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
1,792,302 |
|
|
|
1.16 |
% |
|
977,783 |
|
|
|
0.70 |
% |
|
83.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other loss, net 4 |
|
4,901 |
|
|
|
|
|
2,806 |
|
|
|
|
|
|
|||||
Interest expense, net |
|
119,478 |
|
|
|
|
|
103,176 |
|
|
|
|
|
15.8 |
% |
||||
Loss on early retirement of debt |
|
— |
|
|
|
|
|
22,175 |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
|
1,667,923 |
|
|
|
1.08 |
% |
|
849,626 |
|
|
|
0.60 |
% |
|
96.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income tax expense (benefit) 5 |
|
559,763 |
|
|
|
|
|
(595,321 |
) |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income |
|
1,108,160 |
|
|
|
0.71 |
% |
|
1,444,947 |
|
|
|
1.03 |
% |
|
(23.3 |
)% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to noncontrolling interests |
|
(5,926 |
) |
|
|
|
|
(7,591 |
) |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to AmerisourceBergen Corporation |
|
$ |
1,102,234 |
|
|
|
0.71 |
% |
|
$ |
1,437,356 |
|
|
|
1.02 |
% |
|
(23.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic |
|
$ |
5.37 |
|
|
|
|
|
$ |
7.01 |
|
|
|
|
|
(23.4 |
)% |
||
Diluted |
|
$ |
5.31 |
|
|
|
|
|
$ |
6.95 |
|
|
|
|
|
(23.6 |
)% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic |
|
205,255 |
|
|
|
|
|
205,017 |
|
|
|
|
|
0.1 |
% |
||||
Diluted |
|
207,679 |
|
|
|
|
|
206,714 |
|
|
|
|
|
0.5 |
% |
________________________________________
1 Includes a $160.6 million LIFO credit and a $147.4 million gain from antitrust litigation settlements in the nine months ended June 30, 2021. Includes a $43.2 million LIFO expense, $12.6 million of PharMEDium remediation and shutdown costs, and an $8.5 million gain from antitrust litigation settlements in the nine months ended June 30, 2020.
2 Includes $49.0 million of PharMEDium remediation and shutdown costs and a $12.2 million adjustment to Profarma's estimate of contingent consideration related to the purchase price of one of its prior business acquisitions in the nine months ended June 30, 2020.
3 Includes $6.7 million of employee severance, a $141.4 million legal accrual related to our proposed opioid litigation settlement, $85.9 million of litigation costs related to legal fees in connection with opioid lawsuits and investigations, and $141.5 million of other costs in connection with acquisition-related deal and integration costs, business transformation efforts, and other restructuring initiatives in the nine months ended June 30, 2021. Includes $32.4 million of employee severance, $86.9 million of litigation costs related to legal fees in connection with opioid lawsuits and investigations, and $46.4 million of other costs in connection with business transformation efforts, other restructuring initiatives, and acquisition-related deal and integration costs in the nine months ended June 30, 2020.
4 Includes a $1.1 million expense on the currency remeasurement of deferred tax assets relating to Swiss tax reform in the nine months ended June 30, 2021.
5 Includes $127.6 million of expense relating to UK tax reform, $64.0 million of expense relating to Swiss tax reform, and a $20.4 million adjustment of discrete tax benefits primarily attributable to the income tax deductions resulting from the permanent shutdown of the PharMEDium business in the nine months ended June 30, 2021. Includes $741.0 million of discrete tax benefits primarily attributable to the income tax deductions resulting from the shutdown of the PharMEDium business in the nine months ended June 30, 2020.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
|
|
Three Months Ended June 30, 2021 |
|
|||||||||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating
|
|
Income
|
|
Income Tax Expense |
|
Net Income Attributable to Noncontrolling Interests |
|
Net Income Attributable to ABC |
|
Diluted
|
|
|||||||||||||||||||||||
GAAP |
|
$ |
1,888,206 |
|
|
$ |
1,267,479 |
|
|
$ |
620,727 |
|
|
$ |
573,530 |
|
|
$ |
278,082 |
|
|
$ |
(3,326 |
) |
|
$ |
292,122 |
|
|
$ |
1.40 |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Gains from antitrust litigation settlements |
|
(147,432 |
) |
|
— |
|
|
(147,432 |
) |
|
(147,432 |
) |
|
(15,266 |
) |
|
— |
|
|
(132,166 |
) |
|
(0.63 |
) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
LIFO credit |
|
(113,920 |
) |
|
— |
|
|
(113,920 |
) |
|
(113,920 |
) |
|
(6,692 |
) |
|
— |
|
|
(107,228 |
) |
|
(0.51 |
) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Acquisition-related intangibles amortization |
|
— |
|
|
(44,282 |
) |
|
44,282 |
|
|
44,282 |
|
|
(4,355 |
) |
|
(890 |
) |
|
47,747 |
|
|
0.23 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Employee severance, litigation, and other 1 |
|
— |
|
|
(226,964 |
) |
|
226,964 |
|
|
226,964 |
|
|
6,034 |
|
|
— |
|
|
220,930 |
|
|
1.06 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Tax reform 2 |
|
— |
|
|
— |
|
|
— |
|
|
(6,243 |
) |
|
(136,588 |
) |
|
— |
|
|
130,345 |
|
|
0.62 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Adjusted Non-GAAP |
|
$ |
1,626,854 |
|
|
$ |
996,233 |
|
|
$ |
630,621 |
|
|
$ |
577,181 |
|
|
$ |
121,215 |
|
|
$ |
(4,216 |
) |
|
$ |
451,750 |
|
|
$ |
2.16 |
|
3 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Adjusted Non-GAAP % change vs. prior year |
|
32.0 |
% |
|
37.5 |
% |
|
24.3 |
% |
|
23.1 |
% |
|
37.3 |
% |
|
|
|
18.8 |
% |
|
16.8 |
% |
|
||||||||||||||||
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
||
Gross profit |
|
3.54 |
% |
|
3.05 |
% |
Operating expenses |
|
2.37 |
% |
|
1.87 |
% |
Operating income |
|
1.16 |
% |
|
1.18 |
% |
________________________________________
1 Includes a $124.3 million legal expense accrual related to our proposed opioid litigation settlement.
2 Includes $127.6 million of expense relating to UK tax reform, $9.0 million of expense relating to Swiss tax reform, and $6.2 million of income on the currency remeasurement of the related deferred tax assets, which is recorded within Other (Income) Loss.
3 The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
|
|
Three Months Ended June 30, 2020 |
|
||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating
|
|
Income
|
|
Income Tax Expense |
|
Net Loss (Income) Attributable to Noncontrolling Interests |
|
Net Income Attributable to ABC |
|
Diluted
|
|
||||||||||||||
GAAP |
|
$ |
1,225,716 |
|
$ |
820,885 |
|
|
$ |
404,831 |
|
$ |
343,835 |
|
$ |
56,567 |
|
|
$ |
2,171 |
|
|
$ |
289,439 |
|
|
$ |
1.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gains from antitrust litigation settlements |
|
— |
|
— |
|
|
— |
|
— |
|
(15 |
) |
|
— |
|
|
15 |
|
|
— |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
LIFO expense |
|
6,061 |
|
— |
|
|
6,061 |
|
6,061 |
|
1,555 |
|
|
— |
|
|
4,506 |
|
|
0.02 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
PharMEDium shutdown costs |
|
432 |
|
(12,504 |
) |
|
12,936 |
|
12,936 |
|
3,264 |
|
|
— |
|
|
9,672 |
|
|
0.05 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Acquisition-related intangibles amortization |
|
— |
|
(25,109 |
) |
|
25,109 |
|
25,109 |
|
6,276 |
|
|
(437 |
) |
|
18,396 |
|
|
0.09 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Employee severance, litigation, and other |
|
— |
|
(58,585 |
) |
|
58,585 |
|
58,585 |
|
14,583 |
|
|
— |
|
|
44,002 |
|
|
0.21 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Impairment of PharMEDium assets |
|
— |
|
— |
|
|
— |
|
— |
|
638 |
|
|
— |
|
|
(638 |
) |
|
— |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Contingent consideration adjustment |
|
— |
|
— |
|
|
— |
|
— |
|
(22 |
) |
|
(1,833 |
) |
|
(1,811 |
) |
|
(0.01 |
) |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss on early retirement of debt |
|
— |
|
— |
|
|
— |
|
22,175 |
|
5,449 |
|
|
— |
|
|
16,726 |
|
|
0.08 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted Non-GAAP |
|
$ |
1,232,209 |
|
$ |
724,687 |
|
|
$ |
507,522 |
|
$ |
468,701 |
|
$ |
88,295 |
|
|
$ |
(99 |
) |
|
$ |
380,307 |
|
|
$ |
1.85 |
|
|
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
Gross profit |
|
2.70% |
|
2.72% |
Operating expenses |
|
1.81% |
|
1.60% |
Operating income |
|
0.89% |
|
1.12% |
________________________________________
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
|
|
Nine Months Ended June 30, 2021 |
|
|||||||||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating
|
|
Income
|
|
Income Tax Expense |
|
Net Income Attributable to Noncontrolling Interests |
|
Net Income Attributable to ABC |
|
Diluted
|
|
|||||||||||||||||||||||
GAAP |
|
$ |
4,873,817 |
|
|
$ |
3,081,515 |
|
|
$ |
1,792,302 |
|
|
$ |
1,667,923 |
|
|
$ |
559,763 |
|
|
$ |
(5,926 |
) |
|
$ |
1,102,234 |
|
|
$ |
5.31 |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Gains from antitrust litigation settlements |
|
(147,432 |
) |
|
— |
|
|
(147,432 |
) |
|
(147,432 |
) |
|
(15,266 |
) |
|
— |
|
|
(132,166 |
) |
|
(0.64 |
) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
LIFO credit |
|
(160,565 |
) |
|
— |
|
|
(160,565 |
) |
|
(160,565 |
) |
|
(16,625 |
) |
|
— |
|
|
(143,940 |
) |
|
(0.69 |
) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Acquisition-related intangibles amortization |
|
— |
|
|
(94,289 |
) |
|
94,289 |
|
|
94,289 |
|
|
3,043 |
|
|
(1,764 |
) |
|
89,482 |
|
|
0.43 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Employee severance, litigation, and other 1 |
|
— |
|
|
(375,501 |
) |
|
375,501 |
|
|
375,501 |
|
|
36,502 |
|
|
— |
|
|
338,999 |
|
|
1.63 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Certain discrete tax benefits 2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
20,425 |
|
|
— |
|
|
(20,425 |
) |
|
(0.10 |
) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Tax reform 3 |
|
— |
|
|
— |
|
|
— |
|
|
1,086 |
|
|
(191,607 |
) |
|
— |
|
|
192,693 |
|
|
0.93 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Adjusted Non-GAAP |
|
$ |
4,565,820 |
|
|
$ |
2,611,725 |
|
|
$ |
1,954,095 |
|
|
$ |
1,830,802 |
|
|
$ |
396,235 |
|
|
$ |
(7,690 |
) |
|
$ |
1,426,877 |
|
|
$ |
6.87 |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Adjusted Non-GAAP % change vs. prior year |
|
17.3 |
% |
|
17.8 |
% |
|
16.7 |
% |
|
16.7 |
% |
|
22.9 |
% |
|
|
|
14.8 |
% |
|
14.3 |
% |
|
||||||||||||||||
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
Gross profit |
|
3.14% |
|
2.94% |
Operating expenses |
|
1.99% |
|
1.68% |
Operating income |
|
1.16% |
|
1.26% |
________________________________________
1 Includes a $141.4 million legal expense accrual related to our proposed opioid litigation settlement.
2 Represents an adjustment of discrete tax benefits primarily attributable to the income tax deductions resulting from the permanent shutdown of the PharMEDium business.
3 Includes $127.6 million of expense relating to UK tax reform, $64.0 million of expense relating to Swiss tax reform, and a $1.1 million loss on the currency remeasurement of the related deferred tax assets, which is recorded within Other Loss.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
|
|
Nine Months Ended June 30, 2020 |
|
||||||||||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax (Benefit) Expense |
|
Net Income Attributable to Noncontrolling Interests |
|
Net Income Attributable to ABC |
|
Diluted Earnings Per Share |
|
||||||||||||||||||||||||
GAAP |
|
$ |
3,845,037 |
|
|
|
$ |
2,867,254 |
|
|
|
$ |
977,783 |
|
|
|
$ |
849,626 |
|
|
|
$ |
(595,321 |
) |
|
|
$ |
(7,591 |
) |
|
|
$ |
1,437,356 |
|
|
|
$ |
6.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Gains from antitrust litigation settlements |
|
(8,546 |
) |
|
|
— |
|
|
|
(8,546 |
) |
|
|
(8,546 |
) |
|
|
(2,100 |
) |
|
|
— |
|
|
|
(6,446 |
) |
|
|
(0.03 |
) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
LIFO expense |
|
43,195 |
|
|
|
— |
|
|
|
43,195 |
|
|
|
43,195 |
|
|
|
10,614 |
|
|
|
— |
|
|
|
32,581 |
|
|
|
0.16 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
PharMEDium shutdown and remediation costs |
|
12,556 |
|
|
|
(49,015 |
) |
|
|
61,571 |
|
|
|
61,571 |
|
|
|
15,128 |
|
|
|
— |
|
|
|
46,443 |
|
|
|
0.22 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Acquisition-related intangibles amortization |
|
— |
|
|
|
(85,345 |
) |
|
|
85,345 |
|
|
|
85,345 |
|
|
|
20,971 |
|
|
|
(1,308 |
) |
|
|
63,066 |
|
|
|
0.31 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Employee severance, litigation, and other |
|
— |
|
|
|
(165,626 |
) |
|
|
165,626 |
|
|
|
165,626 |
|
|
|
40,697 |
|
|
|
— |
|
|
|
124,929 |
|
|
|
0.60 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Impairment of PharMEDium assets |
|
— |
|
|
|
(361,652 |
) |
|
|
361,652 |
|
|
|
361,652 |
|
|
|
88,865 |
|
|
|
— |
|
|
|
272,787 |
|
|
|
1.32 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Contingent consideration adjustment |
|
— |
|
|
|
12,153 |
|
|
|
(12,153 |
) |
|
|
(12,153 |
) |
|
|
(2,987 |
) |
|
|
5,678 |
|
|
|
(3,488 |
) |
|
|
(0.02 |
) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loss on early retirement of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,175 |
|
|
|
5,449 |
|
|
|
— |
|
|
|
16,726 |
|
|
|
0.08 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Certain discrete tax benefits 1 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
741,015 |
|
|
|
— |
|
|
|
(741,015 |
) |
|
|
(3.58 |
) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Adjusted Non-GAAP |
|
$ |
3,892,242 |
|
|
|
$ |
2,217,769 |
|
|
|
$ |
1,674,473 |
|
|
|
$ |
1,568,491 |
|
|
|
$ |
322,331 |
|
|
|
$ |
(3,221 |
) |
|
|
$ |
1,242,939 |
|
|
|
$ |
6.01 |
|
|
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
Gross profit |
|
2.73% |
|
2.77% |
Operating expenses |
|
2.04% |
|
1.58% |
Operating income |
|
0.70% |
|
1.19% |
________________________________________
1 Includes $741.0 of discrete tax benefits primarily attributable to the income tax deductions resulting from the shutdown of the PharMEDium business.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
|
|
Three Months Ended June 30, |
|||||||||||||
Revenue |
|
2021 |
|
|
|
2020 |
|
|
|
% Change |
|||||
Pharmaceutical Distribution Services |
|
$ |
49,312,013 |
|
|
|
$ |
43,579,119 |
|
|
|
13.2 |
% |
||
Other |
|
4,128,266 |
|
|
|
1,810,533 |
|
|
|
128.0 |
% |
||||
Intersegment eliminations |
|
(34,584 |
) |
|
|
(22,875 |
) |
|
|
|
|||||
|
|
|
|
|
|
|
|||||||||
Revenue |
|
$ |
53,405,695 |
|
|
|
$ |
45,366,777 |
|
|
|
17.7 |
% |
||
|
|
Three Months Ended June 30, |
|||||||||||||
Operating income |
|
2021 |
|
|
|
2020 |
|
|
|
% Change |
|||||
Pharmaceutical Distribution Services |
|
$ |
483,914 |
|
|
|
$ |
426,643 |
|
|
|
13.4 |
% |
||
Other |
|
146,869 |
|
|
|
82,875 |
|
|
|
77.2 |
% |
||||
Intersegment eliminations |
|
(162 |
) |
|
|
(1,996 |
) |
|
|
|
|||||
Total segment operating income |
|
630,621 |
|
|
|
507,522 |
|
|
|
24.3 |
% |
||||
|
|
|
|
|
|
|
|||||||||
Gains from antitrust litigation settlements |
|
147,432 |
|
|
|
— |
|
|
|
|
|||||
LIFO credit (expense) |
|
113,920 |
|
|
|
(6,061 |
) |
|
|
|
|||||
PharMEDium shutdown costs |
|
— |
|
|
|
(12,936 |
) |
|
|
|
|||||
Acquisition-related intangibles amortization |
|
(44,282 |
) |
|
|
(25,109 |
) |
|
|
|
|||||
Employee severance, litigation, and other |
|
(226,964 |
) |
|
|
(58,585 |
) |
|
|
|
|||||
Operating income |
|
$ |
620,727 |
|
|
|
$ |
404,831 |
|
|
|
|
|||
|
|
|
|
|
|
|
|||||||||
Percentages of revenue: |
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|||||||||
Pharmaceutical Distribution Services |
|
|
|
|
|
|
|||||||||
Gross profit |
|
2.14 |
|
% |
|
2.08 |
|
% |
|
|
|||||
Operating expenses |
|
1.16 |
|
% |
|
1.10 |
|
% |
|
|
|||||
Operating income |
|
0.98 |
|
% |
|
0.98 |
|
% |
|
|
|||||
|
|
|
|
|
|
|
|||||||||
Other |
|
|
|
|
|
|
|||||||||
Gross profit |
|
13.92 |
|
% |
|
18.17 |
|
% |
|
|
|||||
Operating expenses |
|
10.37 |
|
% |
|
13.59 |
|
% |
|
|
|||||
Operating income |
|
3.56 |
|
% |
|
4.58 |
|
% |
|
|
|||||
|
|
|
|
|
|
|
|||||||||
AmerisourceBergen Corporation (GAAP) |
|
|
|
|
|
|
|||||||||
Gross profit |
|
3.54 |
|
% |
|
2.70 |
|
% |
|
|
|||||
Operating expenses |
|
2.37 |
|
% |
|
1.81 |
|
% |
|
|
|||||
Operating income |
|
1.16 |
|
% |
|
0.89 |
|
% |
|
|
|||||
|
|
|
|
|
|
|
|||||||||
AmerisourceBergen Corporation (Non-GAAP) |
|
|
|
|
|
|
|||||||||
Adjusted gross profit |
|
3.05 |
|
% |
|
2.72 |
|
% |
|
|
|||||
Adjusted operating expenses |
|
1.87 |
|
% |
|
1.60 |
|
% |
|
|
|||||
Adjusted operating income |
|
1.18 |
|
% |
|
1.12 |
|
% |
|
|
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
|
|
Nine Months Ended June 30, |
|||||||||||||
Revenue |
|
2021 |
|
|
|
2020 |
|
|
|
% Change |
|||||
Pharmaceutical Distribution Services |
|
$ |
146,905,854 |
|
|
|
$ |
135,178,617 |
|
|
|
8.7 |
% |
||
Other |
|
8,273,312 |
|
|
|
5,534,110 |
|
|
|
49.5 |
% |
||||
Intersegment eliminations |
|
(102,744 |
) |
|
|
(63,569 |
) |
|
|
|
|||||
|
|
|
|
|
|
|
|||||||||
Revenue |
|
$ |
155,076,422 |
|
|
|
$ |
140,649,158 |
|
|
|
10.3 |
% |
||
|
|
Nine Months Ended June 30, |
|||||||||||||
Operating income |
|
2021 |
|
|
|
2020 |
|
|
|
% Change |
|||||
Pharmaceutical Distribution Services |
|
$ |
1,569,014 |
|
|
|
$ |
1,381,434 |
|
|
|
13.6 |
% |
||
Other |
|
391,696 |
|
|
|
295,614 |
|
|
|
32.5 |
% |
||||
Intersegment eliminations |
|
(6,615 |
) |
|
|
(2,575 |
) |
|
|
|
|||||
Total segment operating income |
|
1,954,095 |
|
|
|
1,674,473 |
|
|
|
16.7 |
% |
||||
|
|
|
|
|
|
|
|||||||||
Gains from antitrust litigation settlements |
|
147,432 |
|
|
|
8,546 |
|
|
|
|
|||||
LIFO credit (expense) |
|
160,565 |
|
|
|
(43,195 |
) |
|
|
|
|||||
PharMEDium shutdown and remediation costs |
|
— |
|
|
|
(61,571 |
) |
|
|
|
|||||
Acquisition-related intangibles amortization |
|
(94,289 |
) |
|
|
(85,345 |
) |
|
|
|
|||||
Employee severance, litigation, and other |
|
(375,501 |
) |
|
|
(165,626 |
) |
|
|
|
|||||
Impairment of PharMEDium assets |
|
— |
|
|
|
(361,652 |
) |
|
|
|
|||||
Contingent consideration adjustment |
|
— |
|
|
|
12,153 |
|
|
|
|
|||||
Operating income |
|
$ |
1,792,302 |
|
|
|
$ |
977,783 |
|
|
|
|
|||
|
|
|
|
|
|
|
|||||||||
Percentages of revenue: |
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|||||||||
Pharmaceutical Distribution Services |
|
|
|
|
|
|
|||||||||
Gross profit |
|
2.19 |
|
% |
|
2.11 |
|
% |
|
|
|||||
Operating expenses |
|
1.12 |
|
% |
|
1.09 |
|
% |
|
|
|||||
Operating income |
|
1.07 |
|
% |
|
1.02 |
|
% |
|
|
|||||
|
|
|
|
|
|
|
|||||||||
Other |
|
|
|
|
|
|
|||||||||
Gross profit |
|
16.39 |
|
% |
|
18.78 |
|
% |
|
|
|||||
Operating expenses |
|
11.65 |
|
% |
|
13.44 |
|
% |
|
|
|||||
Operating income |
|
4.73 |
|
% |
|
5.34 |
|
% |
|
|
|||||
|
|
|
|
|
|
|
|||||||||
AmerisourceBergen Corporation (GAAP) |
|
|
|
|
|
|
|||||||||
Gross profit |
|
3.14 |
|
% |
|
2.73 |
|
% |
|
|
|||||
Operating expenses |
|
1.99 |
|
% |
|
2.04 |
|
% |
|
|
|||||
Operating income |
|
1.16 |
|
% |
|
0.70 |
|
% |
|
|
|||||
|
|
|
|
|
|
|
|||||||||
AmerisourceBergen Corporation (Non-GAAP) |
|
|
|
|
|
|
|||||||||
Adjusted gross profit |
|
2.94 |
|
% |
|
2.77 |
|
% |
|
|
|||||
Adjusted operating expenses |
|
1.68 |
|
% |
|
1.58 |
|
% |
|
|
|||||
Adjusted operating income |
|
1.26 |
|
% |
|
1.19 |
|
% |
|
|
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
|
June 30, |
|
September 30, |
||||
|
2021 |
|
2020 |
||||
ASSETS |
|
|
|
||||
|
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,553,217 |
|
|
$ |
4,597,746 |
|
Accounts receivable, net |
17,695,170 |
|
|
13,846,301 |
|
||
Inventories |
14,996,364 |
|
|
12,589,278 |
|
||
Right to recover assets |
1,215,839 |
|
|
1,344,649 |
|
||
Income tax receivable |
254,065 |
|
|
488,428 |
|
||
Prepaid expenses and other |
545,111 |
|
|
189,300 |
|
||
Total current assets |
37,259,766 |
|
|
33,055,702 |
|
||
|
|
|
|
||||
Property and equipment, net |
2,143,080 |
|
|
1,484,808 |
|
||
Goodwill and other intangible assets |
14,570,548 |
|
|
8,592,826 |
|
||
Deferred income taxes |
289,040 |
|
|
361,640 |
|
||
Other long-term assets |
1,668,502 |
|
|
779,854 |
|
||
|
|
|
|
||||
Total assets |
$ |
55,930,936 |
|
|
$ |
44,274,830 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|||||||
|
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
36,502,816 |
|
|
$ |
31,705,055 |
|
Other current liabilities |
2,631,413 |
|
|
1,646,763 |
|
||
Short-term debt |
455,609 |
|
|
501,259 |
|
||
Total current liabilities |
39,589,838 |
|
|
33,853,077 |
|
||
|
|
|
|
||||
Long-term debt |
6,647,183 |
|
|
3,618,261 |
|
||
|
|
|
|
||||
Accrued income taxes |
283,735 |
|
|
284,845 |
|
||
Deferred income taxes |
1,671,696 |
|
|
686,485 |
|
||
Other long-term liabilities |
1,058,767 |
|
|
472,855 |
|
||
Accrued litigation liability |
6,271,276 |
|
|
6,198,943 |
|
||
|
|
|
|
||||
Total equity (deficit) |
408,441 |
|
|
(839,636) |
|
||
|
|
|
|
||||
Total liabilities and stockholders' equity (deficit) |
$ |
55,930,936 |
|
|
$ |
44,274,830 |
|
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
Nine Months Ended June 30, |
||||||||
|
2021 |
|
|
2020 |
|
||||
Operating Activities: |
|
|
|
||||||
Net income |
$ |
1,108,160 |
|
|
|
$ |
1,444,947 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities 1 |
599,953 |
|
|
|
822,005 |
|
|
||
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|
|
|
||||||
Accounts receivable |
(116,845 |
) |
|
|
(436,237 |
) |
|
||
Inventories |
(594,708 |
) |
|
|
(910,828 |
) |
|
||
Accounts payable |
242,419 |
|
|
|
824,105 |
|
|
||
Other, net 2 |
417,790 |
|
|
|
(836,184 |
) |
|
||
Net cash provided by operating activities |
1,656,769 |
|
|
|
907,808 |
|
|
||
|
|
|
|
||||||
Investing Activities: |
|
|
|
||||||
Capital expenditures |
(273,407 |
) |
|
|
(251,101 |
) |
|
||
Cost of acquired companies, net of cash acquired |
(5,536,717 |
) |
|
|
— |
|
|
||
Cost of equity investments |
(162,620 |
) |
|
|
(34,830 |
) |
|
||
Other, net |
2,516 |
|
|
|
7,824 |
|
|
||
Net cash used in investing activities |
(5,970,228 |
) |
|
|
(278,107 |
) |
|
||
|
|
|
|
||||||
Financing Activities: |
|
|
|
||||||
Net borrowings (repayments) 3 |
2,620,315 |
|
|
|
(10,960 |
) |
|
||
Payment of premium on early retirement of debt |
— |
|
|
|
(21,448 |
) |
|
||
Purchases of common stock |
(82,150 |
) |
|
|
(420,449 |
) |
|
||
Exercises of stock options |
164,297 |
|
|
|
137,748 |
|
|
||
Cash dividends on common stock |
(274,041 |
) |
|
|
(256,764 |
) |
|
||
Other |
(30,965 |
) |
|
|
(11,750 |
) |
|
||
Net cash provided by (used in) financing activities |
2,397,456 |
|
|
|
(583,623 |
) |
|
||
|
|
|
|
||||||
(Decrease) increase in cash and cash equivalents |
(1,916,003 |
) |
|
|
46,078 |
|
|
||
|
|
|
|
||||||
Cash, cash equivalents, and restricted cash at beginning of period |
4,597,746 |
|
|
|
3,374,194 |
|
|
||
|
|
|
|
||||||
Cash, cash equivalents, and restricted cash at end of period |
$ |
2,681,743 |
|
|
|
$ |
3,420,272 |
|
|
________________________________________
1 Includes an impairment of PharMEDium assets of $361.7 million in the nine months ended June 30, 2020.
2 Includes a $590.2 million increase in income tax receivable for the nine months ended June 30, 2020 primarily as a result of recognizing certain discrete tax benefits.
3 Includes proceeds from the issuance of the Company's $1,525 million of 0.737% senior notes, $1,000 million of 2.700% senior notes, and $500 million of term loan, all of which were used to finance a portion of the June 2021 acquisition of Alliance Healthcare.
SUPPLEMENTAL INFORMATION REGARDING
NON-GAAP FINANCIAL MEASURES
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses the non-GAAP financial measures described below. The non-GAAP financial measures should be viewed in addition to, and not in lieu of, financial measures calculated in accordance with GAAP. These supplemental measures may vary from, and may not be comparable to, similarly titled measures by other companies.
The non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company’s operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The presented non-GAAP financial measures exclude items that management does not believe reflect the Company’s core operating performance because such items are outside the control of the Company or are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. We have included the following non-GAAP earnings-related financial measures in this release:
In addition, the Company updated its non-GAAP fiscal year 2021 guidance for diluted earnings per share, operating expense, operating income and adjusted free cash flow, and has previously provided non-GAAP fiscal year 2021 guidance for effective income tax rate. The guidance for each metric excludes the same or similar items as those that are excluded from the historical non-GAAP financial measures, as well as significant items that are outside the control of the Company or inherently unusual, non-operating, unpredictable, non-recurring or non-cash in nature. For fiscal year 2021, we have defined the non-GAAP financial measure of adjusted free cash flow as net cash provided by operating activities, excluding other significant unpredictable or non-recurring cash payments or receipts relating to legal settlements, minus capital expenditures. For the nine months ended June 30, 2021 adjusted free cash flow of $1,235.9 million consisted of net cash provided by operating activities of $1,656.8 million minus capital expenditures of $273.4 million and the gains from antitrust litigation settlements of $147.4 million. The Company does not provide forward looking guidance on a GAAP basis for such metrics because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, LIFO expense (credit) is largely dependent upon the future inflation or deflation of brand and generic pharmaceuticals, which is out of the Company’s control, and acquisition-related intangibles amortization depends on the timing and amount of future acquisitions, which cannot be reasonably estimated. Similarly, the timing and amount of litigation settlements is unpredictable and non-recurring.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210804005182/en/
Bennett S. Murphy
Senior Vice President, Investor Relations
610-727-3693
[email protected]