AmerisourceBergen Reports $0.69 in Diluted EPS from Continuing Operations, a 13% Percent Increase, and Revenue of $21.5 Billion

  AmerisourceBergen Reports $0.69 in Diluted EPS from Continuing Operations, a
  13% Percent Increase, and Revenue of $21.5 Billion for the December Quarter

   Company Reaffirms Fiscal Year 2013 EPS Guidance Range of $3.06 to $3.16

Business Wire

VALLEY FORGE, Pa. -- January 24, 2013

AmerisourceBergen Corporation (NYSE:ABC) today reported that in its fiscal
year 2013 first quarter, ended December 31, 2012, diluted earnings per share
from continuing operations were $0.69, a 13 percent increase. Revenue in the
quarter was $21.5 billion, up 6 percent. The Company also reaffirmed its
expectations for fiscal year 2013 diluted earnings per share from continuing
operations in the range of $3.06 to $3.16. All the results are presented in
accordance with U.S. generally accepted accounting principles (GAAP).

Fiscal First Quarter Highlights

  *Revenue of $21.5 billion, up 5.7 percent.
  *Diluted earnings per share from continuing operations of $0.69, a 13.1
    percent increase.
  *Gross profit of $671.9 million, up 15.1 percent.
  *Operating income of $287.3 million, up 2.1 percent.
  *Share repurchases of $284.7 million.

“We are off to a solid start in our fiscal year 2013, with December quarter
results in line with our expectations,” said Steven H. Collis,
AmerisourceBergen President and Chief Executive Officer. “During the quarter,
we successfully implemented our previously announced new contract with our
largest customer, and we continued to make progress on the integration of
World Courier. As we look ahead, we are well positioned to meet our objectives
for the year and to continue to have significant financial flexibility.”

Summary of Quarterly Results

  *Revenue: Revenue was $21.5 billion in the first quarter of fiscal 2013, a
    5.7 percent increase over the same quarter in the previous fiscal year,
    driven by a 4.8 percent increase in AmerisourceBergen Drug Corporation
    (ABDC) revenue, and a 9.6 percent increase in AmerisourceBergen Specialty
    Group (ABSG) revenue.
  *Gross Profit: Gross profit in the fiscal 2013 first quarter was $671.9
    million, a 15.1 percent increase over the year-ago same period driven
    primarily by contributions from the recent addition of World Courier, and
    a $12.3 million gain from antitrust litigation settlements. Gross profit
    as a percentage of revenue was 3.13 percent, a 26 basis point improvement
    over the same period in the previous year.
  *Operating Expenses: For the first quarter of fiscal 2013, operating
    expenses were $384.7 million compared with $302.5 million in the prior
    fiscal year’s first quarter, a 27.2 percent increase. The increase in
    operating expenses was due to the operating expenses of acquisitions
    completed in fiscal 2012, and increased depreciation and amortization
    costs. Compared to the prior year, operating expenses as a percentage of
    revenue in the fiscal first quarter of 2013 were up 30 basis points to
    1.79 percent.
  *Operating Income: In the fiscal 2013 first quarter, operating income
    increased 2.1 percent to $287.3 million, due to the increase in gross
    profit, which was largely offset by the increase in operating expenses.
    Operating income as a percentage of revenue decreased 5 basis points to
    1.34 percent in the period compared with the previous year’s first
    quarter.
  *Tax Rate: The effective tax rate for the first quarter of fiscal 2013 was
    39.6 percent, compared to 38.2 percent in the previous fiscal year’s first
    quarter. Going forward, we expect our annualized effective tax rate to be
    approximately 39.5 percent.
  *Earnings Per Share: Diluted earnings per share from continuing operations
    were up 13.1 percent to $0.69 in the first quarter of fiscal 2013 compared
    to $0.61 in the previous fiscal year’s first quarter. Earnings per share
    growth exceeded the 1.4 percent growth in income from continuing
    operations due to the 10.3 percent reduction in diluted average shares
    outstanding.
  *Shares Outstanding: Diluted average shares outstanding for the first
    quarter of fiscal year 2013 were 236.0 million, down 27.1 million shares
    from the previous fiscal year’s first quarter due primarily to share
    repurchases, net of option exercises over the last twelve months.

Segment Discussion

The Pharmaceutical Distribution segment includes both AmerisourceBergen Drug
Corporation and AmerisourceBergen Specialty Group. Other includes
AmerisourceBergen Consulting Services (ABCS) and World Courier. The results of
operations from AndersonBrecon are reported as income from discontinued
operations.

Pharmaceutical Distribution Segment

In the first fiscal quarter of 2013, Pharmaceutical Distribution revenues were
$21.1 billion, an increase of 5 percent compared to the same quarter in the
prior year. ABDC revenues increased 5 percent, due primarily to an increase in
sales volume resulting from the implementation of our new contract with our
largest customer, offset in part by the loss of a food and drug retail group
purchasing organization customer. ABSG revenues increased 10 percent, which
was driven by strong performance in our third party logistics, blood products,
vaccine, and physician office distribution businesses.

Operating income of $268.6 million in the December quarter of fiscal 2013
decreased 2 percent compared to the same period in the previous year driven by
a 10 basis point decline in operating margin due to decreased contributions
from generic conversions, customer mix shift towards lower margin business in
ABDC, and disappointing performance in our Canadian distribution business, all
of which was offset in part by strong growth in certain of our higher margin
specialty distribution businesses.

Other

Revenues included in Other were $427.9 million in the first quarter of fiscal
2013, including significant contributions from recent acquisitions: World
Courier which was not included in the same quarter in the previous year; and
TheraCom, which anniversaried on November 1, 2012. Gross profit and operating
expenses also increased significantly compared to the prior year due to the
inclusion of operating results from the acquisitions completed during fiscal
2012. Operating income increased significantly to $20.6 million in the first
quarter of fiscal 2013, due to the recent acquisitions and strong performance
in our consulting business.

Fiscal Year 2013 Expectations

“Looking ahead, the Company continues to expect diluted earnings per share
from continuing operations in fiscal year 2013 to be in the range of $3.06 to
$3.16,” said Steven H. Collis, AmerisourceBergen President and Chief Executive
Officer. “Key assumptions supporting that range are: revenue growth in the 6
percent to 9 percent range; operating income growth in the 3 percent to 5
percent range; an operating margin decline in the high single to low
double-digit basis points range; and free cash flow in the range of $750
million to $850 million, which includes capital expenditures in the $180
million range. Subject to market conditions, we expect to spend approximately
$400 million to repurchase our common shares in fiscal year 2013.”

Conference Call

The Company will host a conference call to discuss its results at 11:00 a.m.
Eastern Standard Time on January 24, 2013. Participating in the conference
call will be: Steven H. Collis, President and Chief Executive Officer; and Tim
G. Guttman, Senior Vice President and Chief Financial Officer.

To access the live conference call via telephone:

Dial in: The dial-in number for the live call will be (612) 332-0802. No
access code is needed.

To access the live webcast:

Go to the Investor Relations page at http://www.amerisourcebergen.com.

A replay of the telephone call and webcast will be available from 2:30 p.m.
January 24, 2013 until 11:59 p.m. January 31, 2013. The Webcast replay will be
available for 30 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 277342.

To access the archived webcast:

Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.

About AmerisourceBergen

AmerisourceBergen is one of the world's largest pharmaceutical services
companies serving the United States, Canada and selected global markets.
Servicing both healthcare providers and pharmaceutical manufacturers in the
pharmaceutical supply channel, the Company provides drug distribution and
related services designed to reduce costs and improve patient outcomes.
AmerisourceBergen's service solutions range from niche premium logistics and
pharmaceutical packaging to reimbursement and pharmaceutical consulting
services. With over $80 billion in annualized revenue, AmerisourceBergen is
headquartered in Valley Forge, PA, and employs approximately 13,000 people.
AmerisourceBergen is ranked #29 on the Fortune 500 list. For more information,
go to www.amerisourcebergen.com.

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. These statements are
based on management's current expectations and are subject to uncertainty and
change in circumstances. 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; the loss of one or
more key customer or supplier relationships; changes in customer mix; customer
delinquencies, defaults or insolvencies; supplier defaults or insolvencies;
changes in pharmaceutical manufacturers' pricing and distribution policies or
practices; adverse resolution of any contract or other dispute with customers
or suppliers; federal and state government enforcement initiatives to detect
and prevent suspicious orders of controlled substances and the diversion of
controlled substances; 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; changes in federal and state legislation or regulatory action
affecting pharmaceutical product pricing or reimbursement policies, including
under Medicaid and Medicare; changes in regulatory or clinical medical
guidelines and/or labeling for the pharmaceutical products we distribute,
including certain anemia products; price inflation in branded pharmaceuticals
and price deflation in generics; greater or less than anticipated benefit from
launches of the generic versions of previously patented pharmaceutical
products; significant breakdown or interruption of our information technology
systems; our inability to realize the anticipated benefits of the
implementation of an enterprise resource planning (ERP) system; success of
integration, restructuring or systems initiatives; interest rate and foreign
currency exchange rate fluctuations; 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; economic, business, competitive and/or regulatory developments
outside of the United States; changes and/or potential changes in Canadian
provincial legislation affecting pharmaceutical product pricing or service
fees or regulatory action by provincial authorities in Canada to lower
pharmaceutical product pricing and service fees; the impact of divestitures or
the acquisition of businesses that do not perform as we expect or that are
difficult for us to integrate or control; our inability to successfully
complete any other transaction that we may wish to pursue from time to time;
changes in tax laws or legislative initiatives that could adversely affect our
tax positions and/or our tax liabilities or adverse resolution of challenges
to our tax positions; increased costs of maintaining, or reductions in our
ability to maintain, adequate liquidity and financing sources; volatility and
deterioration of the capital and credit markets; and other economic, business,
competitive, legal, tax, regulatory and/or operational factors affecting our
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,
2012 and elsewhere in that report and (ii) in other reports filed by the
Company pursuant to the Securities Exchange Act of 1934.

                                                                     
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
                                                                               
                                                                               
                 Three                          Three
                 Months Ended                   Months Ended
                 December 31,    % of           December 31,    % of           %
                 2012            Revenue        2011            Revenue        Change
                                                                               
Revenue          $21,466,314     100.00 %       $20,311,922     100.00 %       5.7   %
                                                                               
Cost of goods    20,794,390                    19,728,005                    5.4   %
sold
                                                                               
Gross profit     671,924         3.13   %       583,917         2.87   %       15.1  %
(1)
                                                                               
Operating
expenses:
Distribution,
selling and      342,213         1.59   %       268,893         1.32   %       27.3  %
administrative
Depreciation
and              40,523          0.19   %       30,046          0.15   %       34.9  %
amortization
Employee
severance,       1,929          0.01   %       3,559          0.02   %       -45.8 %
litigation and
other (2)
Total
operating        384,665         1.79   %       302,498         1.49   %       27.2  %
expenses
                                                                               
Operating        287,259         1.34   %       281,419         1.39   %       2.1   %
income
                                                                               
Other income     (23         )   -      %       (1          )   -      %
                                                                               
Interest         18,698         0.09   %       22,576         0.11   %       -17.2 %
expense, net
                                                                               
Income from
continuing
operations       268,584         1.25   %       258,844         1.27   %       3.8   %
before income
taxes
                                                                               
Income taxes     106,359        0.50   %       98,887         0.49   %       7.6   %
                                                                               
Income from
continuing       162,225         0.76   %       159,957         0.79   %       1.4   %
operations
                                                                               
Income from
discontinued
operations,      6,386                         2,159                         195.8 %
net of income
taxes
                                                                               
Net income       $168,611       0.79   %       $162,116       0.80   %       4.0   %
                                                                               
                                                                               
Basic earnings
per share:
Continuing       $0.70                          $0.62                          12.9  %
operations
Discontinued     0.03                          0.01        
operations
Total            $0.73                         $0.63                         15.9  %
                                                                               
Diluted
earnings per
share:
Continuing       $0.69                          $0.61                          13.1  %
operations
Discontinued     0.03                           0.01
operations
Rounding         (0.01       )                  -           
Total            $0.71                         $0.62                         14.5  %
                                                                               
Weighted
average common
shares
outstanding:
Basic            232,361                        258,461
Diluted (3)      235,992                        263,084                        -10.3 %
                                                                               

(1)  Includes a $12.3 million gain from antitrust litigation settlements in
      the three months ended December 31, 2012.
      Includes $1.4 million of employee severance and other restructuring
      costs and $0.5 million of acquisition costs related to business
(2)   combinations in the three months ended December 31, 2012. Includes $3.6M
      of acquisition costs related to business combinations in the three
      months ended December 31, 2011.
(3)   Includes the dilutive effect of stock options, restricted stock, and
      restricted stock units.

                                                         
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                                                            
                                                            
ASSETS
                                             December 31,   September 30,
                                             2012           2012
Current assets:
Cash and cash equivalents                    $417,404       $1,066,608
Accounts receivable, net                     4,361,266      3,938,597
Merchandise inventories                      5,965,563      5,689,147
Prepaid expenses and other                   54,318         73,811
Assets held for sale                         223,648        218,988
Total current assets                         11,022,199     10,987,151
                                                            
Property and equipment, net                  800,340        780,013
Other long-term assets                       3,672,993      3,676,962
                                                            
Total assets                                 $15,495,532    $15,444,126
                                                            
                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                            
Current liabilities:
Accounts payable                             $9,879,850     $9,630,110
Other current liabilities                    1,504,432      1,535,534
Liabilities held for sale                    51,455         48,838
Total current liabilities                    11,435,737     11,214,482
                                                            
Long-term debt                               1,396,107      1,446,770
                                                            
Other long-term liabilities                  326,453        326,162
                                                            
Stockholders' equity                         2,337,235      2,456,712
                                                            
Total liabilities and stockholders' equity   $15,495,532    $15,444,126
                                                            

                                                               
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                                  
                                                   Three          Three
                                                   Months Ended   Months Ended
                                                   December 31,   December 31,
                                                   2012           2011
                                                                  
Operating Activities:
Net income                                         $168,611       $162,116
Income from discontinued operations                (6,386     )   (2,159     )
Income from continuing operations                  162,225        159,957
Adjustments to reconcile income from continuing
operations to net cash (used in) provided by       68,109         53,142
operating activities
Changes in operating assets and liabilities        (481,659   )   205,931    
Net cash (used in) provided by operating           (251,325   )   419,030
activities - continuing operations
Net cash provided by operating activities -        9,618         12,673     
discontinued operations
Net cash (used in) provided by operating           (241,707   )   431,703    
activities
                                                                  
Investing Activities:
Capital expenditures                               (56,543    )   (45,531    )
Cost of acquired companies, net of cash acquired   -              (250,501   )
Other                                              23            -          
Net cash used in investing activities -            (56,520    )   (296,032   )
continuing operations
Net cash used in investing activities -            (4,859     )   (2,607     )
discontinued operations
Net cash used in investing activities              (61,379    )   (298,639   )
                                                                  
Financing Activities:
Net (repayments) borrowings                        (50,492    )   563,116
Purchases of common stock                          (284,691   )   (128,042   )
Exercises of stock options                         39,750         16,450
Cash dividends on common stock                     (49,595    )   (33,708    )
Debt issuance costs and other                      (1,090     )   (6,535     )
Net cash (used in) provided by financing           (346,118   )   411,281
activities - continuing operations
Net cash used in financing activities -            -             -          
discontinued operations
Net cash (used in) provided by financing           (346,118   )   411,281    
activities
                                                                  
(Decrease) increase in cash and cash equivalents   (649,204   )   544,345
                                                                  
Cash and cash equivalents at beginning of period   1,066,608     1,825,990  
                                                                  
Cash and cash equivalents at end of period         $417,404      $2,370,335 
                                                                  


AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
                                                                  
                                                                      
                                      Three Months Ended December 31,
Revenue                               2012           2011           % Change
                                                                      
Pharmaceutical Distribution           $21,082,711     $20,134,050     5     %
Other (1)                             427,890         209,325         104   %
Intersegment eliminations             (44,287     )   (31,453     )   41    %
                                                                      
Revenue                               $21,466,314    $20,311,922    6     %
                                                                      
                                                                      
                                                                      
                                                                      
                                      Three Months Ended December 31,
Operating Income                      2012           2011           % Change
                                                                      
Pharmaceutical Distribution           $268,629        $275,372        -2    %
Other (1)                             20,559          9,606           114   %
Employee severance, litigation and    (1,929      )   (3,559      )   -46   %
other
                                                                      
Operating income                      $287,259       $281,419       2     %
                                                                      
                                                                      
                                                                      
                                                                      
Percentages of revenue:
                                                                      
Pharmaceutical Distribution
Gross profit                          2.65        %   2.74        %
Operating expenses                    1.37        %   1.38        %
Operating income                      1.27        %   1.37        %
                                                                      
Other (1)
Gross profit                          26.55       %   14.93       %
Operating expenses                    21.75       %   10.34       %
Operating income                      4.80        %   4.59        %
                                                                      
AmerisourceBergen Corporation
Gross profit                          3.13        %   2.87        %
Operating expenses                    1.79        %   1.49        %
Operating income                      1.34        %   1.39        %
                                                                      

(1) Other for the three months ended December 31, 2012 is comprised of the
AmerisourceBergen Consulting Services ("ABCS") operating segment and the World
Courier Group, Inc. operating segment. Other for the three months ended
December 31, 2011 is comprised solely of the ABCS operating segment.


Contact:

AmerisourceBergen Corporation
Barbara Brungess, 610-727-7199
bbrungess@amerisourcebergen.com
 
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