Now Expects Fiscal Year 2016 Adjusted
Diluted EPS to be in the range of $5.73 to $5.83
AmerisourceBergen Corporation (NYSE:ABC) today reported that in
its fiscal year 2016 first quarter ended December 31, 2015,
adjusted diluted earnings per share increased 11.4 percent to
$1.27. Revenue increased 9.3 percent to $36.7 billion in the
quarter. On the basis of U.S. generally accepted accounting
principles (GAAP), diluted earnings per share were $1.46 for the
December quarter of fiscal 2016. In the tables that follow, we
present our GAAP results as well as GAAP to non-GAAP
reconciliations.
“I am pleased with the solid performance we delivered in the
December quarter,” said Steven H. Collis, President and Chief
Executive Officer of AmerisourceBergen. “Our recent acquisitions,
MWI Veterinary Supply (MWI) and PharMEDium, as well as strong
contributions from our specialty business and our international
businesses helped overcome a challenging year over year comparison
and a sharper than expected decline in generic inflation.”
The comments below compare adjusted results, which exclude:
- Warrant expense;
- Gains on antitrust litigation
settlements;
- LIFO expense;
- Acquisition-related intangibles
amortization;
- Employee severance, litigation and
other expenses; and
- A pension settlement charge.
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 share repurchase programs. We
previously issued $600 million of 1.15% senior notes due in May
2017 to fund our initial special share repurchase program. 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 2016, revenue was $36.7 billion, up
9.3 percent compared to the same quarter in the previous fiscal
year, reflecting a 7 percent increase in Pharmaceutical
Distribution revenue, and a 127 percent increase in revenue within
Other.
- Gross
Profit: Gross profit in the fiscal 2016 first quarter was
$1.1 billion, a 17.6 percent increase over the same period in the
previous year, driven primarily by the addition of MWI, which was
acquired in February 2015. Gross profit as a percentage of revenue
increased 20 basis points to 2.87 percent from the prior year
quarter.
- Operating
Expenses: In the first quarter of fiscal 2016, operating
expenses were $579 million, up 25.6 percent over the same period in
the last fiscal year. The increase in operating expenses in the
quarter was primarily driven by the addition of MWI and additional
costs to support the revenue growth of our businesses. Operating
expenses as a percentage of revenue in the fiscal 2016 first
quarter were 1.58 percent compared with 1.37 percent for the same
period in the previous fiscal year, driven by the higher expense
profile of MWI.
- Operating
Income: In the fiscal 2016 first quarter, operating income
of $475 million was up 9.1 percent versus the prior year, driven by
the increase in gross profit, which was offset in part by the
increase in operating expenses. Operating income as a percentage of
revenue decreased 1 basis point to 1.29 percent in the fiscal 2016
first quarter compared to the previous year’s first quarter.
- Interest
Expense: In the fiscal 2016 first quarter, interest expense
of $29 million was up 88.9 percent versus the prior year quarter
due to the increase in variable-rate borrowings to partially fund
the acquisitions of MWI and PharMEDium.
- Tax Rate:
The effective tax rate for the first quarter of fiscal 2016 was
34.6 percent, down from 37.9 percent in the previous fiscal year’s
first quarter, reflecting the favorable impact of growth in our
international businesses.
- Earnings Per
Share: Diluted earnings per share were up 11.4 percent to
$1.27 in the first quarter of fiscal year 2016 compared to $1.14 in
the previous fiscal year’s first quarter, driven primarily by the
increase in operating income and offset in part by the increase in
interest expense.
- Shares
Outstanding: Diluted weighted average shares outstanding for
the first quarter of fiscal year 2016 were 229.9 million, a slight
increase versus the prior year.
Segment Discussion
The Pharmaceutical Distribution segment includes both
AmerisourceBergen Drug Corporation and AmerisourceBergen Specialty
Group. Other includes AmerisourceBergen Consulting Services, World
Courier, and MWI.
Pharmaceutical Distribution
Segment
In the first fiscal quarter of 2016, Pharmaceutical Distribution
revenues were $35.2 billion, an increase of 7 percent compared to
the same quarter in the prior year. ABDC revenues increased 5
percent, due primarily to solid organic sales growth from our chain
retail, independent pharmacy, and health systems customers. ABSG
revenues increased 15 percent, which was driven by strong
performance in our oncology business (including an increase in
sales to community oncologists), and by sales growth in our blood
products, vaccine and physician office distribution businesses.
Intrasegment revenues between ABDC and ABSG have been eliminated in
the presentation of total Pharmaceutical Distribution revenue.
Total intrasegment revenues were $1.7 billion and $1.6 billion in
the quarters ended December 31, 2015 and 2014, respectively.
Operating income of $380 million in the December quarter of
fiscal 2016 was down 3 percent compared to the same period in the
previous year due to a lower contribution from generic inflation
and the impact of previously announced customer renewals.
Other
Revenues in Other were $1.6 billion in the first quarter of
fiscal 2016, an increase of 127 percent over the same period in the
prior year due to the addition of MWI, which was acquired in
February of 2015. Operating income increased 112 percent to $96
million in the first quarter of fiscal 2016, driven by the
additional income from MWI.
Fiscal Year 2016
Expectations
“This morning, we announced that we signed a distribution
agreement with a new customer, Publix, the impact of which was
included in our previously disclosed fiscal 2016 expectations. In
January 2016, we signed an early renewal and long-term contract
extension with our largest independent pharmacy group purchasing
organization customer, Compliant Pharmacy Alliance Cooperative,”
said Mr. Collis. “While this strategic renewal was not contemplated
in our prior expectations, it strengthens our position in a key
customer segment for many years to come.”
“Looking ahead, the decline in generic inflation, the early
contract renewal, and a reduction in our expectations regarding the
contribution from generic launches over the course of the year will
make it difficult for us to achieve the high end of our original
adjusted earnings per share range for fiscal 2016. Therefore, we
now expect our adjusted diluted earnings per share to be in the
range of $5.73 to $5.83 for fiscal 2016.”
Other assumptions for financial performance in fiscal 2016 now
include:
- Revenue growth in the range of 8
percent to 10 percent;
- Adjusted operating margin increase of 3
to 5 basis points;
- Effective tax rate of about 33.5
percent;
- Free cash flow generation in the range
of $2.3 billion to $2.7 billion;
- Capital expenditures in the $400
million range;
- Modest share repurchases under the
regular and special programs, as well as special share repurchases
to satisfy previously disclosed hedging programs, all subject to
market conditions.
Conference Call
The Company will host a conference call to discuss the results
at 11:00 a.m. Eastern Time on February 4, 2016.
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) 234-9960. 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 U.S.,
dial (800) 475-6701. From outside the U.S., dial (320) 365-3844.
The access code for the replay is 383092.
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 in human and animal health. With
over $135 billion in annual revenue, AmerisourceBergen is
headquartered in Valley Forge, PA, and employs approximately 18,000
people. AmerisourceBergen is ranked #16 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 press release 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: competition;
industry consolidation of both customers and suppliers resulting in
increasing pressure to reduce prices for our products and services;
changes in pharmaceutical market growth rates; price inflation in
branded and generic pharmaceuticals, and price deflation in
generics; declining economic conditions in the United States and
abroad; financial market volatility and disruption; substantial
defaults in payment, material reduction in purchases by or the
loss, bankruptcy or insolvency of a major customer; the loss,
bankruptcy or insolvency of a major supplier; 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; changes in any of the economic models used by any of our
suppliers to set pricing and/or other terms for the purchase of
pharmaceuticals; 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; risks associated with the strategic, long-term
relationship between Walgreen Boots Alliance, Inc. and
AmerisourceBergen, including with respect to the pharmaceutical
distribution agreement and/or the global sourcing arrangement;
risks associated with the potential impact on AmerisourceBergen's
earnings per share resulting from the issuance of the warrants to
subsidiaries of Walgreen Boots Alliance, Inc. (the "Warrants");
AmerisourceBergen's inability to fully implement its hedging
strategy to mitigate the potentially dilutive effect of the
issuance of its common stock in accordance with the Warrants 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; changes in the United States
healthcare and regulatory environment; increasing governmental
regulations regarding the pharmaceutical supply channel and
pharmaceutical compounding; 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; increased federal scrutiny and 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; material adverse
resolution of pending legal proceedings; declining reimbursement
rates for pharmaceuticals; the acquisition of businesses that do
not perform as expected, or that are difficult to integrate or
control, including the integration of MWI and PharMEDium, or the
inability to capture all of the anticipated synergies related
thereto; managing foreign expansion, including non-compliance with
the U.S. Foreign Corrupt Practices Act, anti-bribery laws and
economic sanctions and import laws and regulations; 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; 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; the
impairment of goodwill or other intangible assets, resulting in a
charge to earnings; errors in the production, labeling or packaging
of products compounded by our compounded sterile preparations (CSP)
business; 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), in the Company’s Annual
Report on Form 10-K for the fiscal year ended September 30, 2015
and elsewhere in that report and (ii) in other reports filed by the
Company pursuant to the Securities Exchange Act.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY (In thousands, except per share data) (unaudited)
Three Three Months Ended Months Ended December 31, %
of December 31, % of % 2015 Revenue 2014 Revenue Change
Revenue $ 36,709,046 $ 33,588,602 9.3 % Cost of goods sold
35,744,169 32,836,303 8.9 %
Gross profit (1) 964,877 2.63 % 752,299 2.24 % 28.3 %
Operating expenses: Distribution, selling and administrative
528,296 1.44 % 416,491 1.24 % 26.8 % Depreciation and amortization
81,438 0.22 % 49,297 0.15 % 65.2 % Warrants 467,375 1.27 % 371,405
1.11 % 25.8 % Employee severance, litigation and other 18,868 0.05
% 3,503 0.01 % Pension settlement charge 48,731 0.13
% - - % Total operating expenses 1,144,708 3.12 %
840,696 2.50 % 36.2 % Operating loss (179,831 ) -0.49 %
(88,397 ) -0.26 % 103.4 % Other (income) loss (310 ) - %
1,314 - % Interest expense, net 30,879 0.08 %
17,342 0.05 % 78.1 % Loss before income taxes
(210,400 ) -0.57 % (107,053 ) -0.32 % 96.5 % Income tax
(benefit) expense (540,777 ) -1.47 % 92,894
0.28 % Net income (loss) $ 330,377 0.90 %
($199,947 ) -0.60 % Earnings per share: Basic $ 1.60
($0.91 ) 275.8 % Diluted $ 1.46 ($0.91 ) 260.4 % Weighted
average common shares outstanding: Basic 206,180 219,456 -6.0 %
Diluted (2) 226,718 219,456 3.3 % (1) Includes a $101.6
million LIFO expense charge and a $12.8 million gain from antitrust
litigation settlements in the three months ended December 31, 2015.
Includes a $144.0 million LIFO expense charge in the three months
ended December 31, 2014. (2) As a result of the net loss in
the three months ended December 31, 2014, stock options, restricted
stock, restricted stock units and the Warrants issued to Walgreens
Boots Alliance, Inc. were anti-dilutive.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share
data) (unaudited) Three Months Ended December 31, 2015
Gross Profit
OperatingExpenses
Operating(Loss)Income
InterestExpense, Net
(Loss) IncomeBefore IncomeTaxes
Income Tax(Benefit)Expense
Net Income
DilutedEarnings PerShare
GAAP $ 964,877 $ 1,144,708 ($179,831 ) $ 30,879 ($210,400 )
($540,777 ) $ 330,377 $ 1.46 Warrant expense (1) - (467,375
) 467,375 (2,155 ) 469,530 629,189 (159,659 ) (0.71 ) Gain
on antitrust litigation settlements (12,791 ) - (12,791 ) - (12,791
) (4,521 ) (8,270 ) (0.04 ) LIFO expense 101,562 - 101,562 -
101,562 35,901 65,661 0.29 Acquisition-related intangibles
amortization - (31,210 ) 31,210 - 31,238 11,042 20,196 0.09
Employee severance, litigation and other - (18,868 ) 18,868 -
18,868 6,670 12,198 0.05 Pension settlement charge - (48,731
) 48,731 - 48,731 17,226 31,505 0.14
Adjusted Non-GAAP $ 1,053,648 $
578,524 $ 475,124 $ 28,724 $ 446,738 $
154,730 $
292,008
$ 1.27
(2)
Adjusted Non-GAAP % changes vs. prior year period 17.6 %
25.6 % 9.1 % 88.9 % 6.5 % -2.6 % 12.1 % 11.4 % Percentages
of Revenue: GAAP
AdjustedNon-GAAP
Gross profit 2.63 % 2.87 % Operating expenses 3.12 % 1.58 %
Operating income -0.49 % 1.29 % (1) The Company received a
private letter ruling from the Internal Revenue Service in November
2015, which entitles it to an income tax deduction equal to the
fair value of the Warrants on the date of exercise. As a result,
the Company recognized a tax benefit adjustment of approximately
$456 million, which represented the estimated tax deduction for the
increase in the fair value of the Warrants from the issuance date
through September 30, 2015. An additional tax benefit of
approximately $173 million was recognized primarily related to the
change in the fair value of the Warrants during the three months
ended December 31, 2015. In connection with the fiscal 2014 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. (2) The sum of the components do 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. The non-GAAP
financial measures should be viewed in addition to, and not in lieu
of, financial measures calculated in accordance with GAAP.
AMERISOURCEBERGEN CORPORATION GAAP TO NON-GAAP
RECONCILIATIONS (in thousands, except per share data) (unaudited)
Three
Months Ended December 31, 2014 Gross Profit
OperatingExpenses
Operating(Loss)Income
InterestExpense, Net
(Loss) IncomeBefore IncomeTaxes
Income TaxExpense
Net (Loss)Income
DilutedEarnings PerShare
GAAP $ 752,299 $ 840,696 ($88,397 ) $ 17,342 ($107,053 ) $
92,894 ($199,947 ) $ (0.91 ) Warrant expense (1) - (371,405
) 371,405 (2,140 ) 373,545 7,140 366,405 1.64 LIFO expense
144,024 - 144,024 - 144,024 55,496 88,528 0.39
Acquisition-related intangibles amortization - (5,032 ) 5,032 -
5,330 2,054 3,276 0.01 Employee severance, litigation and
other - (3,503 ) 3,503 - 3,503 1,350 2,153 0.01
Adjusted Non-GAAP $
896,323 $ 460,756 $ 435,567 $ 15,202 $
419,349 $ 158,934 $ 260,415 $ 1.14
Percentages of Revenue: GAAP
AdjustedNon-GAAP
Gross profit 2.24 % 2.67 % Operating expenses 2.50 % 1.37 %
Operating income -0.26 % 1.30 % (1) During the three months
ended December 31, 2014, the amount of Warrant expense deductible
for income tax purposes was based on the initial valuation of the
Warrants. In connection with the fiscal 2014 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. 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. The non-GAAP
financial measures should be viewed in addition to, and not in lieu
of, financial measures calculated in accordance with GAAP.
AMERISOURCEBERGEN CORPORATION RECONCILIATION OF
DILUTED SHARES OUTSTANDING (GAAP TO NON-GAAP) (In thousands)
(unaudited) Three Months Ended December 31,
2015 2014 Basic shares outstanding 206,180 219,456
Stock option, restricted stock, and restricted stock unit dilution
3,858 - Warrant dilution 16,680 - GAAP diluted
shares outstanding 226,718 219,456 Warrant dilution (1)
(16,680) - Shares repurchased under special share repurchase
programs (1) 19,904 4,839 Stock option, restricted stock,
and restricted stock unit dilution (2) - 4,990
Non-GAAP diluted shares outstanding 229,942 229,285 (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 special share repurchase
programs, which were established to mitigate the potentially
dilutive effect of the Warrants and supplement the Company's
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 WARRANT COVERAGE INFORMATION (in
millions) (unaudited)
2016 Warrant
Coverage:
December 31, 2015 (1)
Shares from 2016 Capped Calls 11.5 Share Repurchases 11.2 Total
Shares Covered 22.7 2016 Warrant Shares 22.7
2016 Warrant
Coverage 100%
2017 Warrant
Coverage:
Shares from 2017 Capped Calls 10.5 Share Repurchases 8.9 Total
Shares Covered 19.4 2017 Warrant Shares 22.7
2017 Warrant
Coverage 85% (1) Based on December 31, 2015
closing stock price of $103.71.
Estimated Number of Shares to be Received
UponExercise of Capped Calls(at various illustrative ABC share
prices)(in millions)
IllustrativeABC SharePrice (2)
2016CappedCalls
2017CappedCalls
$85 13.3 12.8 $90 13.2 12.1 $95 12.6 11.4 $100 12.0 10.9
$105 11.4 10.3 $110 10.9 9.9 $115 10.4 9.4 $120 10.0 9.1 (2)
An ABC share price below $85 will increase the number of shares to
be received up to a maximum of 13.6 million shares for the 2016 and
2017 Capped Calls, respectively. AMERISOURCEBERGEN
CORPORATION SUMMARY SEGMENT INFORMATION (dollars in thousands)
(unaudited) Three Months Ended December 31,
Revenue 2015 2014 % Change Pharmaceutical Distribution $
35,194,679 $ 32,982,724 6.7 % Other 1,577,815 696,001 126.7 %
Intersegment eliminations (63,448 ) (90,123 ) -29.6 %
Revenue $ 36,709,046 $ 33,588,602 9.3 %
Three Months Ended December 31, Operating loss
2015 2014 % Change Pharmaceutical Distribution $ 379,559 $
390,401 -2.8 % Other 95,565 45,166
111.6 % Total segment operating income 475,124 435,567 9.1 %
Gains on antitrust litigation settlements 12,791 - LIFO expense
(101,562 ) (144,024 ) Acquisition-related intangibles amortization
(31,210 ) (5,032 ) Warrant expense (467,375 ) (371,405 ) Employee
severance, litigation and other (18,868 ) (3,503 ) Pension
settlement charge (48,731 ) - Operating
loss ($179,831 ) ($88,397 )
Percentages of revenue: Pharmaceutical Distribution Gross
profit 2.19 % 2.28 % Operating expenses 1.11 % 1.10 % Operating
income 1.08 % 1.18 % Other Gross profit 17.85 % 20.73 %
Operating expenses 11.80 % 14.24 % Operating income 6.06 % 6.49 %
AmerisourceBergen Corporation (GAAP) Gross profit 2.63 %
2.24 % Operating expenses 3.12 % 2.50 % Operating loss -0.49 %
-0.26 % AmerisourceBergen Corporation (Non-GAAP) Gross
profit 2.87 % 2.67 % Operating expenses 1.58 % 1.37 % Operating
income 1.29 % 1.30 % AMERISOURCEBERGEN
CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
(unaudited) ASSETS December 31, September 30, 2015
2015 Current assets: Cash and cash equivalents $ 978,090 $
2,167,442 Accounts receivable, net 8,380,652 8,222,951 Merchandise
inventories 10,863,974 9,755,094 Prepaid expenses and other
138,959 189,001 Total current assets 20,361,675 20,334,488
Property and equipment, net 1,059,501 979,251 Goodwill and
other intangible assets 9,052,837 6,123,944 Other long-term assets
281,789 298,474 Total assets $ 30,755,802 $
27,736,157 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $ 22,536,323 $
20,886,439 Other current liabilities 1,488,018
1,814,326 Total current liabilities 24,024,341 22,700,765
Long-term debt 4,393,317 3,493,048 Other long-term
liabilities 1,038,125 908,824 Stockholders' equity
1,300,019 633,520 Total liabilities and stockholders'
equity $ 30,755,802 $ 27,736,157
AMERISOURCEBERGEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (in thousands) (unaudited) Three Three Months
Ended Months Ended December 31, December 31, 2015 2014
Operating Activities: Net income (loss) $ 330,377 ($199,947 )
Adjustments to reconcile net income (loss) to net cash provided by
operating activities (1) 11,157 420,754 Changes in operating assets
and liabilities, excluding the effects of acquisitions: Accounts
receivable (76,261 ) (766,718 ) Merchandise inventories (2)
(1,086,296 ) (2,096,578 ) Accounts payable, accrued expenses, and
income taxes 1,522,332 3,529,971 Other 49,539
9,482 Net cash provided by operating activities
750,848 896,964 Investing Activities:
Capital expenditures (90,110 ) (52,557 ) Cost of acquired
companies, net of cash acquired (2,726,632 ) (24,604 ) Net proceeds
from investment in available-for-sale securities 47,693 - Other
(3,438 ) 5 Net cash used in investing
activities (2,772,487 ) (77,156 ) Financing
Activities: Net borrowings 1,008,544 - Purchases of common stock
(3) (118,575 ) (300,213 ) Exercises of stock options 33,980 40,164
Cash dividends on common stock (71,199 ) (64,025 ) Other
(20,463 ) (5,491 ) Net cash provided by (used in) financing
activities 832,287 (329,565 )
(Decrease) increase in cash and cash equivalents (1,189,352 )
490,243 Cash and cash equivalents at beginning of period
2,167,442 1,808,513 Cash and
cash equivalents at end of period $ 978,090 $ 2,298,756
(1) Adjustments include non-cash warrant expense of
$467.4 million and $371.4 million for the three months ended
December 31, 2015 and 2014, respectively.
(2) Merchandise inventories include LIFO
expense of $101.6 million and $144.0 million for the three months
ended December 31, 2015 and 2014, respectively.
(3) Includes purchases made under special share repurchase
programs totaling $118.6 million in the three months ended December
31, 2015. Includes purchases made under special share repurchase
programs 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160204005358/en/
AmerisourceBergen CorporationBarbara
BrungessVice President, Corporate & Investor
Relations610-727-7199bbrungess@amerisourcebergen.com
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