Raises Expectations for Fiscal 2015 Adjusted
Diluted EPS from Continuing Operations to be in the range of $4.45
to $4.55, Excluding the Impact of the MWI Veterinary Supply, Inc.
Transaction
AmerisourceBergen Corporation (NYSE:ABC) today reported that in
its fiscal year 2015 first quarter ended December 31, 2014,
adjusted diluted earnings per share from continuing operations
increased 42.5 percent to $1.14. Revenue increased 15.1 percent to
$33.6 billion in the quarter. On the basis of U.S. generally
accepted accounting principles (GAAP), diluted loss per share from
continuing operations was $0.91 for the December quarter of fiscal
2015. In the tables that follow, we present our GAAP results as
well as a reconciliation of GAAP (loss) income from continuing
operations to adjusted non-GAAP income from continuing
operations.
“We are off to a great start in fiscal 2015, with excellent
financial and operational performance across our businesses,” said
Steven H. Collis, AmerisourceBergen President and Chief Executive
Officer. “We have also made important progress against our
strategic objectives by signing a definitive agreement to acquire
MWI Veterinary Supply, Inc. (MWI) earlier this month. We continue
to expect the transaction to close in the March quarter, and we are
very excited about the opportunities that lie ahead in our core
businesses and with MWI in the remainder of this fiscal year and
beyond.”
The comments below compare adjusted results from continuing
operations, which exclude:
- Warrant expense;
- Gains on antitrust litigation
settlements;
- LIFO expense;
- Acquisition related intangibles
amortization; and
- Employee severance, litigation, and
other expenses.
In addition, we calculate our adjusted earnings per share for
each period using a diluted weighted average share count, which
excludes the accounting dilution resulting from the impact of the
unexercised equity warrants, and the impact from the shares
repurchased under our special $650 million share repurchase
program. Solely in connection with the special share repurchase
program, we issued $600 million of 1.15% senior notes due in May
2017. The interest expense incurred relating to this borrowing is
also excluded from the non-GAAP presentation.
Summary of Adjusted Quarterly
Results
- Revenue:
In the first quarter of fiscal 2015, revenue was $33.6 billion, up
15.1 percent compared to the same quarter in the previous fiscal
year, reflecting a 15 percent increase in AmerisourceBergen Drug
Corporation (ABDC) revenue, and a 26 percent increase in
AmerisourceBergen Specialty Group (ABSG) revenue.
- Gross
Profit: Gross profit in the fiscal 2015 first quarter was
$896.3 million, a 23.7 percent increase over the same period in the
previous year, driven by strong revenue growth in brand and generic
pharmaceuticals in ABDC, and strong revenue growth in ABSG. Gross
profit as a percentage of revenue increased 19 basis points to 2.67
percent.
- Operating
Expenses: In the first quarter of fiscal 2015, operating
expenses were $460.8 million, up 14.6 percent over the same period
in the last fiscal year. The increase in operating expenses in the
quarter was driven by additional costs to support the increase in
revenue growth. Operating expenses as a percentage of revenue in
the fiscal 2015 first quarter were 1.37 percent compared with 1.38
percent for the same period in the previous fiscal year.
- Operating
Income: In the fiscal 2015 first quarter, operating income
of $435.6 million was up 35.0 percent versus the prior year, as our
gross profit growth exceeded our operating expense growth.
Operating income as a percentage of revenue increased 19 basis
points to 1.30 percent in the fiscal 2015 first quarter compared to
the previous year’s first quarter.
- Tax Rate:
The effective tax rate for the first quarter of fiscal 2015 was
37.9 percent, down from 38.2 percent in the previous fiscal year’s
first quarter. Going forward, we continue to expect our annualized
effective tax rate to be about 37 percent for the full year.
- Earnings Per
Share: Diluted earnings per share from continuing operations
were up 42.5 percent to $1.14 in the first quarter of fiscal year
2015 compared to $0.80 in the previous fiscal year’s first quarter,
driven by the increase in operating income.
- Shares
Outstanding: Diluted weighted average shares outstanding for
the first quarter of fiscal year 2015 were 229.3 million, a 2.6
percent decrease versus the prior year as share repurchases more
than offset option exercises.
Segment Discussion
The Pharmaceutical Distribution segment includes both
AmerisourceBergen Drug Corporation and AmerisourceBergen Specialty
Group. Other includes AmerisourceBergen Consulting Services and
World Courier.
Pharmaceutical Distribution
Segment
In the first fiscal quarter of 2015, Pharmaceutical Distribution
revenues were $33.0 billion, an increase of 15 percent compared to
the same quarter in the prior year. ABDC revenues increased 15
percent, due primarily to the onboarding of the new Walgreens
generic pharmaceuticals business, strong sales of products that
treat hepatitis C, and solid organic sales growth in our
independent pharmacy, health systems, and alternate site customers.
ABSG revenues increased 26 percent, which was driven by strong
performance in our blood products, vaccine and physician office
distribution businesses, the impact of manufacturer shifts of
certain oncology products from full line distribution to specialty
distribution, strong performance in our third party logistics
business, and an increase in sales to community oncology practices.
Intrasegment revenues between ABDC and ABSG have been eliminated in
the presentation of total Pharmaceutical Distribution revenue.
Total intrasegment revenues were $1.6 billion and $976.8 million in
the quarters ended December 31, 2014 and 2013, respectively.
Operating income of $390.4 million in the December quarter of
fiscal 2015 increased 36 percent compared to the same period in the
previous year driven by the strong revenue growth in both ABDC and
ABSG.
Other
Revenues in Other were $696.0 million in the first quarter of
fiscal 2015, an increase of 15 percent over the same period in the
prior year. Operating income increased 26 percent to $45.2 million
in the first quarter of fiscal 2015, driven by strong performance
in our consulting businesses and in World Courier.
Fiscal Year 2015
Expectations
Our updated expectations for financial performance in fiscal
2015, excluding the impact of the MWI transaction, include:
- Adjusted diluted earnings per share
from continuing operations in the range of $4.45 to $4.55, a 12
percent to 15 percent increase over fiscal 2014, and an increase
over prior guidance of $4.36 to $4.50;
- Revenue growth in the range of 10
percent to 11 percent;
- Adjusted operating income growth in the
9 percent to 11 percent range;
- Flat adjusted operating margin;
- Free cash flow generation in the range
of $1.8 billion to $2.0 billion;
- Capital expenditures in the $250
million range;
- Regular share repurchases of
approximately $200 million; and
- Special share repurchases of
approximately $400 million.
In addition, we expect that the acquisition of MWI will
contribute an incremental 8 cents of adjusted diluted earnings per
share in the second half of our fiscal 2015.
Conference Call
The Company will host a conference call to discuss the results
at 11:00 a.m. Eastern Time on January 28, 2015.
Participating in the conference call will be:
Steven H. Collis, President & Chief Executive Officer Tim G.
Guttman, Executive Vice President & Chief Financial Officer
The dial-in number for the live call will be (612) 288-0329. No
access code is required. The live call will also be webcast via the
Company’s website at www.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
www.amerisourcebergen.com approximately two hours after the
completion of the call and will remain available for thirty days.
The telephone replay will also be available approximately two hours
after the completion of the call and will remain available for
seven days. To access the telephone replay from within the US, dial
(800) 475-6701. From outside the US, dial (320) 365-3844. The
access code for the replay is 350338.
About AmerisourceBergen
AmerisourceBergen is one of the largest global pharmaceutical
sourcing and distribution services companies, helping both
healthcare providers and pharmaceutical and biotech manufacturers
improve patient access to products and enhance patient care. With
services ranging from drug distribution and niche premium logistics
to reimbursement and pharmaceutical consulting services,
AmerisourceBergen delivers innovative programs and solutions across
the pharmaceutical supply channel. With nearly $120 billion in
annual revenue, AmerisourceBergen is headquartered in Valley Forge,
PA, and employs approximately 14,000 people. AmerisourceBergen is
ranked #28 on the Fortune 500 list. For more information, go to
www.amerisourcebergen.com.
AmerisourceBergen's Cautionary Note Regarding Forward-Looking
Statements
Certain of the statements contained in this presentation are
"forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Words such as "expect," "likely,"
"outlook," "forecast," "would," "could," "should," "can," "will,"
"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 change in
circumstances. These statements are not guarantees of future
performance and are based on assumptions 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: changes in pharmaceutical market growth rates; price
inflation in branded and generic pharmaceuticals and price
deflation in generics; declining economic conditions, increased
costs of maintaining, or reductions in AmerisourceBergen's ability
to maintain, adequate liquidity and financing sources, and interest
rate and foreign currency exchange rate fluctuations; the
disruption of AmerisourceBergen's cash flow and ability to return
value to its stockholders in accordance with its past practices,
disruption of or changes in vendor, payer and customer
relationships and terms, and the reduction of AmerisourceBergen's
operational, strategic or financial flexibility; volatility and
disruption of the capital and credit markets; economic, business,
competitive and/or regulatory developments in countries where
AmerisourceBergen does business and/or operates outside of the
United States; supplier bankruptcies, insolvencies or other credit
failures; customer bankruptcies, insolvencies or other credit
failures; the loss of one or more key customer or supplier
relationships resulting in changes to the customer or supplier mix;
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; risks associated with
the strategic, long-term relationship between Walgreens Boots
Alliance, Inc. (including its subsidiaries Walgreen Co. and
Alliance Boots GmbH) and AmerisourceBergen, including the
occurrence of any event, change or other circumstance that could
give rise to the termination, cross-termination or modification of
any of the transaction documents among the parties (including,
among others, the distribution agreement or the generics
agreement), an impact on AmerisourceBergen's earnings per share
resulting from the issuance of the warrants to subsidiaries of
Walgreens Boots Alliance, Inc., an inability to realize anticipated
benefits (including benefits resulting from participation in the
Walgreens Boots Alliance Development GmbH joint venture),
AmerisourceBergen's inability to implement its hedging strategy to
mitigate the potentially dilutive effect of the issuance of its
common stock under its special share repurchase program due to its
financial performance, the current and future share price of its
common stock, its expected cash flows, competing priorities for
capital, and overall market conditions; increasing governmental
regulations regarding the pharmaceutical supply channel; federal
and state government enforcement initiatives to detect and prevent
suspicious orders of controlled substances and the diversion of
controlled substances, federal and state prosecution of alleged
violations of related laws and regulations, and any related
litigation, including shareholder derivative lawsuits or other
disputes relating to our distribution of controlled substances;
changes in federal and state legislation or regulatory action
affecting pharmaceutical product pricing or reimbursement policies,
including under Medicaid and Medicare, and the effect of such
changes on AmerisourceBergen's customers; frequent changes to laws
and regulations in respect of healthcare fraud and abuse and the
increased scrutiny of the federal government related thereto; qui
tam litigation for alleged violations of fraud and abuse laws and
regulations and/or any other laws and regulations governing the
marketing, sale, purchase and/or dispensing of pharmaceutical
products or services and any related litigation, including
shareholder derivative lawsuits; the acquisition of businesses that
do not perform as AmerisourceBergen expects or that are difficult
for it to integrate or control or AmerisourceBergen's inability to
successfully complete any other transaction that it may wish to
pursue from time to time; risks associated with AmerisourceBergen’s
proposed acquisition of MWI, including uncertainties as to the
timing of the tender offer and the subsequent merger, the
possibility that various conditions to the consummation of the
tender offer or the merger may not be satisfied or waived, the
effects of disruption from the transactions on the respective
businesses of AmerisourceBergen and MWI and the fact that the
announcement or pendency of the transactions may make it more
difficult to establish or maintain relationships with employees,
suppliers and other business partners; risks associated with
international business operations, including non-compliance with
the U.S. Foreign Corrupt Practices Act, anti-bribery laws and
economic sanctions and import laws and regulations; risks generally
associated with the sophisticated information systems on which
AmerisourceBergen relies, including significant breakdown or
interruption of such systems; risks generally associated with data
privacy regulation and the international transfer of personal data;
changes in tax laws or legislative initiatives that could adversely
affect AmerisourceBergen's tax positions and/or AmerisourceBergen's
tax liabilities or adverse resolution of challenges to
AmerisourceBergen's tax positions; natural disasters or other
unexpected events that affect AmerisourceBergen's operations; and
other economic, business, competitive, legal, tax, regulatory
and/or operational factors affecting AmerisourceBergen'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) and Item 1 (Business) in the Company’s
Annual Report on Form 10-K for the fiscal year ended September 30,
2014 and elsewhere in that report and (ii) in other reports.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY (In thousands, except per share data) (unaudited)
Three Three Months Ended Months Ended December 31, %
of December 31, % of % 2014 Revenue 2013 Revenue Change
Revenue $ 33,588,602 100.00 % $ 29,176,362 100.00 % 15.1 %
Cost of goods sold 32,836,303 28,488,137
15.3 % Gross profit (1) 752,299 2.24 % 688,225 2.36 %
9.3 % Operating expenses: Distribution, selling and
administrative 416,491 1.24 % 364,060 1.25 % 14.4 % Depreciation
and amortization 49,297 0.15 % 43,950 0.15 % 12.2 % Warrants
371,405 1.11 % 116,297 0.40 % 219.4 % Employee severance,
litigation and other 3,503 0.01 % 4,302
0.01 % -18.6 % Total operating expenses 840,696 2.50 % 528,609 1.81
% 59.0 % Operating (loss) income (88,397 ) -0.26 % 159,616
0.55 % -155.4 % Other loss (income) 1,314 - % (597 ) - %
Interest expense, net 17,342 0.05 %
18,832 0.06 % -7.9 % (Loss) income before income
taxes (107,053 ) -0.32 % 141,381 0.48 % -175.7 % Income
taxes 92,894 0.28 % 92,450 0.32 % - %
(Loss) income from continuing operations (199,947 ) -0.60 %
48,931 0.17 % -508.6 % Loss from discontinued operations,
net of income taxes - (7,546 ) Net
(loss) income ($199,947 ) -0.60 % $ 41,385 0.14 %
Basic earnings per share: Continuing operations
($0.91 ) $ 0.21 -533.3 % Discontinued operations -
(0.03 ) Total ($0.91 ) $ 0.18 Diluted
earnings per share: Continuing operations ($0.91 ) $ 0.21 -533.3 %
Discontinued operations - (0.03 ) Rounding -
(0.01 ) Total ($0.91 ) $ 0.17 Weighted average
common shares outstanding: Basic 219,456 230,277 Diluted (2)
219,456 237,012 -7.4 %
(1) Includes a $144.0 million LIFO expense
charge in the three months ended December 31, 2014. Includes a
$57.6 million LIFO expense charge and a $21.0 million gain from
antitrust litigation settlements in the three months ended December
31, 2013.
(2) Stock options, restricted stock,
restricted stock units and the Warrants issued to Walgreens Boots
Alliance were anti-dilutive for the three months ended December 31,
2014. The dilutive effect of these items is included in the three
months ended December 31, 2013.
AMERISOURCEBERGEN CORPORATION RECONCILIATION OF
CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS
(NON-GAAP) (in thousands, except per share data) (unaudited)
% Change vs. Prior Year
Three Months Ended December 31, 2014 Quarter Acquisition Employee
Related Severance, Warrant LIFO Intangibles Litigation and Adjusted
Adjusted GAAP
Expense (2)
Expense Amortization Other Non-GAAP
Non-GAAP Revenue $ 33,588,602 $ - $ - $ - $ - $ 33,588,602
15.1 % Cost of goods sold 32,836,303 -
(144,024 ) - - 32,692,279
14.9 % Gross profit 752,299 - 144,024 - - 896,323 23.7 %
Operating expenses 840,696 (371,405 ) -
(5,032 ) (3,503 ) 460,756 14.6 %
Operating (loss) income (88,397 ) 371,405 144,024 5,032 3,503
435,567 35.0 % Other loss 1,314 - - (298 ) - 1,016 Interest
expense, net 17,342 (2,140 ) -
- - 15,202 -19.3 % (Loss)
income before income taxes (107,053 ) 373,545 144,024 5,330 3,503
419,349 37.7 % Income taxes (1) 92,894 7,140
55,496 2,054 1,350
158,934 36.6 % (Loss) income from continuing
operations $ (199,947 ) $ 366,405 $ 88,528 $ 3,276
$ 2,153 $ 260,415 38.4 % Diluted
earnings per share from continuing operations $ (0.91 ) $ 1.64 $
0.39 $ 0.01 $ 0.01 $ 1.14
(4)
42.5 % Diluted weighted average common shares outstanding
(3) 219,456 229,285 229,285 229,285 229,285 229,285
Percentages of revenue: Gross profit 2.24 % 2.67 % Operating
expenses 2.50 % 1.37 % Operating (loss) income -0.26 % 1.30 %
(1) The amount of Warrant expense deductible for income tax
purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants. (2) Warrant expense is recorded as an
operating expense. In connection with the special $650 million
share repurchase program, the Company issued $600 million of 1.15%
senior notes due in May 2017. The interest expense incurred
relating to this borrowing has been excluded from the non-GAAP
presentation. (3) See separate table for Reconciliation of
Diluted Shares Outstanding (GAAP to non-GAAP). (4) The sum
of the components may not equal the total due to rounding.
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors. AMERISOURCEBERGEN CORPORATION
RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED
CONTINUING OPERATIONS (NON-GAAP) (in thousands, except per share
data) (unaudited)
Three Months Ended December 31, 2013 Gain on Acquisition
Employee Antitrust Related Severance, Warrant Litigation
Intangibles Litigation and Adjusted GAAP Expense Settlements LIFO
Expense Amortization Other Non-GAAP Revenue $ 29,176,362 $ -
$ - $ - $ - $ - $ 29,176,362 Cost of goods sold 28,488,137
- 21,023 (57,582 )
- - 28,451,578 Gross profit
688,225 - (21,023 ) 57,582 - - 724,784 Operating expenses
528,609 (116,297 ) - -
(5,958 ) (4,302 ) 402,052 Operating
income 159,616 116,297 (21,023 ) 57,582 5,958 4,302 322,732 Other
income (597 ) - - - - - (597 ) Interest expense, net 18,832
- - - -
- 18,832 Income before income
taxes 141,381 116,297 (21,023 ) 57,582 5,958 4,302 304,497
Income taxes (1)
92,450 6,315 (7,882 )
21,588 2,234 1,613
116,318 Income from continuing operations $ 48,931 $
109,982 $ (13,141 ) $ 35,994 $ 3,724 $ 2,689
$ 188,179 Diluted earnings per share from
continuing operations $ 0.21 $ 0.47 $ (0.06 ) $ 0.15 $ 0.02 $ 0.01
$ 0.80
(3)
Diluted weighted average common shares outstanding (2)
237,012 235,383 235,383 235,383 235,383 235,383 235,383
Percentages of revenue: Gross profit 2.36 % 2.48 % Operating
expenses 1.81 % 1.38 % Operating income 0.55 % 1.11 % (1)
The amount of Warrant expense deductible for income tax purposes is
based on the initial valuation of the Warrants. Therefore, the
income tax rate on Warrant expense will vary by quarter depending
upon the quarterly changes in the fair value of the Warrants.
(2) See separate table for Reconciliation
of Diluted Shares Outstanding (GAAP to non-GAAP).
(3) The sum of the components may not equal the total due to
rounding. Note: Management considers GAAP financial measures
as well as the presented non-GAAP financial measures in evaluating
the Company's operating performance. Therefore, the Company
believes that the presentation of non-GAAP financial measures
provides useful supplementary information to, and facilitates
additional analysis by, investors. AMERISOURCEBERGEN
CORPORATION RECONCILIATION OF DILUTED SHARES OUTSTANDING (GAAP TO
NON-GAAP) (In thousands) (unaudited)
Three Months Ended December 31, 2014 2013 Basic shares
outstanding 219,456 230,277 Stock option, restricted stock,
and restricted stock unit dilution - 5,106 Warrant dilution
- 1,629 GAAP diluted shares outstanding 219,456
237,012 Warrant dilution (1) - (1,629 ) Shares
repurchased under a special share repurchase program (1) 4,839 -
Stock option, restricted stock, and restricted stock unit
dilution (2) 4,990 - Non-GAAP diluted shares
outstanding 229,285 235,383 (1) For the non-GAAP
presentation, diluted weighted average common shares outstanding
have been adjusted to exclude the impact of the Warrants and the
shares repurchased under a special $650 million share repurchase
program, which was established to mitigate the potentially dilutive
effect of the Warrants and supplements our previously executed
hedging strategy. (2) For the non-GAAP presentation, diluted
weighted average common shares outstanding have been adjusted to
include the impact of the stock options, restricted stock, and
restricted stock units that were anti-dilutive for the GAAP
presentation. AMERISOURCEBERGEN CORPORATION SUMMARY SEGMENT
INFORMATION (dollars in thousands) (unaudited)
Three Months Ended December 31, Revenue 2014 2013 % Change
Pharmaceutical Distribution $ 32,982,724 $ 28,622,591 15.2 %
Other 696,001 604,132 15.2 % Intersegment eliminations
(90,123 ) (50,361 ) 79.0 % Revenue $ 33,588,602
$ 29,176,362 15.1 % Three
Months Ended December 31, Operating (loss) income 2014 2013 %
Change Pharmaceutical Distribution $ 390,401 $ 286,782 36.1
% Other 45,166 35,950 25.6 % Total
segment operating income 435,567 322,732 35.0 % Gains on antitrust
litigation settlements - 21,023 LIFO expense (144,024 ) (57,582 )
Acquisition related intangibles amortization (5,032 ) (5,958 )
Warrant expense (371,405 ) (116,297 ) Employee severance,
litigation and other (3,503 ) (4,302 )
Operating (loss) income ($88,397 ) $ 159,616 -155.4 %
Percentages of revenue: Pharmaceutical
Distribution Gross profit 2.28 % 2.08 % Operating expenses 1.10 %
1.07 % Operating income 1.18 % 1.00 % Other Gross profit
20.73 % 21.61 % Operating expenses 14.24 % 15.66 % Operating income
6.49 % 5.95 % AmerisourceBergen Corporation (GAAP) Gross
profit 2.24 % 2.36 % Operating expenses 2.50 % 1.81 % Operating
(loss) income -0.26 % 0.55 % AmerisourceBergen Corporation
(Non-GAAP) Gross profit 2.67 % 2.48 % Operating expenses 1.37 %
1.38 % Operating income 1.30 % 1.11 %
AMERISOURCEBERGEN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) (unaudited) ASSETS December 31,
September 30, 2014 2014 Current assets: Cash and cash equivalents $
2,298,756 $ 1,808,513 Accounts receivable, net 7,144,031 6,312,883
Merchandise inventories 10,628,342 8,593,852 Prepaid expenses and
other 73,581 84,957 Total current assets 20,144,710
16,800,205 Property and equipment, net 907,004 899,582 Other
long-term assets 3,853,202 3,832,396 Total
assets $ 24,904,916 $ 21,532,183 LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $
19,031,658 $ 15,592,834 Other current liabilities 1,773,375
1,657,326 Total current liabilities 20,805,033 17,250,160
Long-term debt 1,995,885 1,995,632 Other long-term
liabilities 335,652 329,492 Stockholders' equity
1,768,346 1,956,899 Total liabilities and
stockholders' equity $ 24,904,916 $ 21,532,183
AMERISOURCEBERGEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (in thousands) (unaudited) Three Three
Months Ended Months Ended December 31, December 31, 2014 2013
Operating Activities: Net (loss) income ($199,947 ) $ 41,385
Loss from discontinued operations - 7,546
(Loss) income from continuing operations (199,947 ) 48,931
Adjustments to reconcile (loss) income
from continuing operations to net cash provided by (used in)
operating activities (1)
420,754 174,642 Changes in operating assets and liabilities,
excluding the effects of acquisitions: Accounts receivable (766,718
) (159,120 ) Merchandise inventories (2) (2,096,578 ) (1,626,618 )
Accounts payable, accrued expenses, and income taxes 3,529,971
523,117 Other 9,482 42,951 Net cash
provided by (used in) operating activities - continuing operations
896,964 (996,097 ) Net cash used in operating activities -
discontinued operations - (7,546 ) Net cash
provided by (used in) operating activities 896,964
(1,003,643 ) Investing Activities: Capital
expenditures (52,557 ) (59,183 ) Cost of acquired companies, net of
cash acquired (24,604 ) (9,103 ) Other 5 83
Net cash used in investing activities (77,156 )
(68,203 ) Financing Activities: Net borrowings -
423,000 Purchases of common stock (3) (300,213 ) (19,652 )
Exercises of stock options 40,164 32,326 Cash dividends on common
stock (64,025 ) (54,367 ) Purchases of capped call options -
(192,995 ) Other (5,491 ) (7 ) Net cash (used in)
provided by financing activities (329,565 ) 188,305
Increase (decrease) in cash and cash equivalents
490,243 (883,541 ) Cash and cash equivalents at beginning of
period 1,808,513 1,231,006 Cash
and cash equivalents at end of period $ 2,298,756 $ 347,465
(1) Adjustments include non-cash warrant expense of
$371.4 million and $116.3 million for the three months ended
December 31, 2014 and 2013, respectively. (2) Merchandise
inventories include LIFO expense of $144.0 million and $57.6
million for the three months ended December 31, 2014 and 2013,
respectively. (3) Includes purchases made under the special
share repurchase program totaling $150.2 million in the three
months ended December 31, 2014, which includes $18.0 million of
fiscal 2014 purchases that cash settled in October 2014.
AmerisourceBergen CorporationBarbara
BrungessVice President, Corporate & Investor
Relations610-727-7199bbrungess@amerisourcebergen.com
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