AmerisourceBergen Reports Second Quarter Fiscal Year 2014 Results

  AmerisourceBergen Reports Second Quarter Fiscal Year 2014 Results

Now Expects Fiscal 2014 Adjusted Diluted EPS from Continuing Operations to be
                        in the range of $3.64 to $3.74

Business Wire

VALLEY FORGE, Pa. -- April 24, 2014

AmerisourceBergen Corporation (NYSE:ABC) today reported that in its fiscal
year 2014 second quarter ended March 31, 2014, adjusted diluted earnings per
share from continuing operations increased 19.1 percent to $1.06. Revenue
increased 38.6 percent to $28.5 billion in the quarter. On the basis of U.S.
generally accepted accounting principles (GAAP), diluted earnings per share
from continuing operations were $0.76 for the March quarter of fiscal 2014. In
the tables that follow, we present our GAAP results as well as a
reconciliation of GAAP income from continuing operations to adjusted non-GAAP
income from continuing operations.

“We delivered strong performance in our March quarter, as we continued to
onboard substantial new business, and made significant progress against our
strategic objectives,” said Steven H. Collis, AmerisourceBergen President and
Chief Executive Officer. “With excellent operational performance and improving
working capital trends that helped generate tremendous free cash flow in the
quarter, we have good momentum heading into the second half of our fiscal
year. In addition, we continued to make important investments in our business
for the long-term, including signing a definitive agreement to acquire a
minority stake in Profarma Distribuidora de Produtos Farmacêuticos S.A. of
Brazil, and returned funds to shareholders through repurchasing over $250
million of our common stock.”

The comments below compare adjusted results from continuing operations, which
exclude:

  *Gains on antitrust litigation settlements;
  *LIFO expense;
  *Acquisition related intangibles amortization;
  *Warrant expense; 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.

Summary of Adjusted Quarterly Results

  *Revenue: In the second quarter of fiscal 2014, revenue was $28.5 billion,
    up 38.6 percent compared to the same quarter in the previous fiscal year,
    reflecting a 46 percent increase in AmerisourceBergen Drug Corporation
    (ABDC) revenue, and a 10 percent increase in AmerisourceBergen Specialty
    Group (ABSG) revenue.
  *Gross Profit: Gross profit in the fiscal 2014 second quarter was $831.6
    million, a 16.6 percent increase over the same period in the previous
    year, driven by strong overall revenue growth and generic sales in ABDC.
    Gross profit as a percentage of revenue decreased 56 basis points to 2.92
    percent, primarily due to a substantial increase in lower margin brand
    business.
  *Operating Expenses: In the second quarter of fiscal 2014, operating
    expenses were $415.0 million, up 16.1 percent over the same period in the
    last fiscal year. The increase in operating expenses in the quarter was
    due primarily to costs associated with onboarding the new Walgreen Co.
    business. Operating expenses as a percentage of revenue in the fiscal 2014
    second quarter were 1.46 percent compared with 1.74 percent for the same
    period in the previous fiscal year.
  *Operating Income: In the fiscal 2014 second quarter, operating income of
    $416.6 million was up 17.0 percent versus the prior year, as the
    percentage increase in gross profit was slightly higher than the
    percentage increase in operating expenses. Operating income as a
    percentage of revenue decreased 27 basis points to 1.46 percent in the
    fiscal 2014 second quarter compared to the previous year’s second quarter.
  *Tax Rate: The effective tax rate for the second quarter of fiscal 2014 was
    38.2 percent, in line with the previous fiscal year’s second quarter.
    Going forward, we expect our annualized effective tax rate to be in the
    low 38 percent range.
  *Earnings Per Share: Diluted earnings per share from continuing operations
    were up 19.1 percent to $1.06 in the second quarter of fiscal year 2014
    compared to $0.89 in the previous fiscal year’s second quarter, driven
    primarily by the increase in operating income.
  *Shares Outstanding: Diluted weighted average shares outstanding for the
    second quarter of fiscal year 2014 were 234.3 million, a slight decrease
    versus the prior year as share repurchases offset option exercises.

Segment Discussion

The Pharmaceutical Distribution segment includes both AmerisourceBergen Drug
Corporation and AmerisourceBergen Specialty Group. Other includes
AmerisourceBergen Consulting Services (ABCS) and World Courier.

Pharmaceutical Distribution Segment

In the second fiscal quarter of 2014, Pharmaceutical Distribution revenues
were $27.9 billion, an increase of 39 percent compared to the same quarter in
the prior year. ABDC revenues increased 46 percent, due primarily to the
onboarding of all of the new Walgreens branded pharmaceuticals business and a
portion of their generic pharmaceuticals business, and increased branded
pharmaceutical sales to our other large customers. ABSG revenues increased 10
percent, which was driven by strong performance 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 $976.3 million and
$760.9 million in the quarters ended March 31, 2014 and 2013, respectively.

Operating income of $372.9 million in the March quarter of fiscal 2014
increased 16 percent compared to the same period in the previous year due to
the new Walgreens branded and generic pharmaceuticals business in ABDC, strong
contributions from generics overall, and solid performance in ABSG, as a flat
performance in our community oncology business was offset by strong
performance in our blood products and vaccine distribution businesses.

Other

Revenues in Other were $572.5 million in the second quarter of fiscal 2014, an
increase of 11 percent over the same period in the prior year. Operating
income increased 25 percent to $43.6 million in the second quarter of fiscal
2014, driven by strong performance in World Courier.

Fiscal Year 2014 Expectations

AmerisourceBergen now expects adjusted diluted earnings per share from
continuing operations in fiscal year 2014 to be in the range of $3.64 to
$3.74, a 13 percent to 17 percent increase over fiscal 2013. We continue to
expect revenue growth in the range of 30 percent to 34 percent, and operating
income growth in the 12 percent to 16 percent range. We continue to expect
adjusted operating margin to decline in the 20 to 23 basis points range due to
the onboarding of significant new lower margin business and growth in brand
pharmaceutical business with our large customers. We continue to expect to
generate free cash flow in the range of $500 to $700 million, with capital
expenditures in the $300 million range, and to spend approximately $500
million in share repurchases, 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 April 24, 2014.

Participating in the conference call will be:

Steven H. Collis, President & Chief Executive Officer
Tim G. Guttman, Senior Vice President & Chief Financial Officer

The dial-in number for the live call will be (651) 291-0618. 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 323936.

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 over $100 billion in annualized
revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs
approximately 13,000 people. AmerisourceBergen is ranked #32 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 news 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: changes in pharmaceutical market growth rates;
the loss of one or more key customer or supplier relationships; the retention
of key customer or supplier relationships under less favorable economics;
changes in customer mix; customer delinquencies, defaults or insolvencies;
supplier defaults or insolvencies; changes in branded and/or generic
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, 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; 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, and the effect of such changes on our customers;
changes in regulatory or clinical medical guidelines and/or labeling for the
pharmaceutical products we distribute; price inflation in branded and generic
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; 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 in countries where we do business and/or
operate outside of the United States; risks associated with the strategic,
long-term relationship among Walgreen Co., Alliance Boots GmbH, and
AmerisourceBergen, 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 our
earnings per share resulting from the issuance of the Warrants, an inability
to realize anticipated benefits (including benefits resulting from
participation in the Walgreens Boots Alliance Development GmbH joint venture),
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; 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;
natural disasters or other unexpected events that affect our operations; 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) and Item 1 (Business) in the Company’s
Annual Report on Form 10-K for the fiscal year ended September 30, 2013 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
                   March 31,       % of       March 31,       % of       %
                   2014            Revenue    2013            Revenue    Change
                                                                         
Revenue            $ 28,455,903    100.00 %   $ 20,523,668    100.00 %   38.6  %
                                                                         
Cost of goods       27,726,310               19,806,679              40.0  %
sold
                                                                         
Gross profit         729,593       2.56   %     716,989       3.49   %   1.8   %
^(1)
                                                                         
Operating
expenses:
  Distribution,
  selling and        376,341       1.32   %     323,536       1.58   %   16.3  %
  administrative
  Depreciation
  and                44,494        0.16   %     39,868        0.19   %   11.6  %
  amortization
  Warrants           5,663         0.02   %     3,761         0.02   %
  Employee
  severance,        1,967        0.01   %    (299       )  -      %
  litigation and
  other
Total operating      428,465       1.51   %     366,866       1.79   %   16.8  %
expenses
                                                                         
Operating            301,128       1.06   %     350,123       1.71   %   -14.0 %
income
                                                                         
Other (income)       (3,783     )  -0.01  %     749           -      %
loss
                                                                         
Interest            19,474       0.07   %    18,510       0.09   %   5.2   %
expense, net
                                                                         
Income before        285,437       1.00   %     330,864       1.61   %   -13.7 %
income taxes
                                                                         
Income taxes        105,360      0.37   %    126,721      0.62   %   -16.9 %
                                                                         
Income from
continuing           180,077       0.63   %     204,143       0.99   %   -11.8 %
operations
                                                                         
Loss from
discontinued        -                        (158,509   )
operations, net
of income taxes
                                                                         
Net income         $ 180,077      0.63   %   $ 45,634       0.22   %
                                                                         
                                                                         
Basic earnings
per share:
  Continuing       $ 0.78                     $ 0.89                     -12.4 %
  operations
  Discontinued      -                        (0.69      )
  operations
  Total           $ 0.78                    $ 0.20       
                                                                         
Diluted
earnings per
share:
  Continuing       $ 0.76                     $ 0.87                     -12.6 %
  operations
  Discontinued      -                        (0.68      )
  operations
  Total           $ 0.76                    $ 0.19       
                                                                         
Weighted average
common shares
outstanding:
  Basic              229,409                    230,422
  Diluted            236,268                    234,587                  0.7   %
  ^(2)
                                                                         
  


  ^(1) Includes a $0.8 million gain from antitrust litigation settlements and
  a $102.8 million LIFO expense in the three months ended March 31, 2014.
  Includes a $3.5 million gain from antitrust litigation settlements and a
  $0.2 million LIFO credit in the three months ended March 31, 2013.
  ^(2) Includes the dilutive effect of stock options, restricted stock,
  restricted stock units and the Warrants issued to Walgreens and Alliance
  Boots.
  

                                                                    
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY
(In thousands, except per share data)
(unaudited)
                                                                          
                                                                          
                   Six                         Six
                   Months Ended                Months Ended
                   March 31,        % of       March 31,       % of       %
                   2014             Revenue    2013            Revenue    Change
                                                                          
Revenue            $ 57,632,265     100.00 %   $ 41,583,479    100.00 %   38.6  %
                                                                          
Cost of goods       56,214,447                40,205,662              39.8  %
sold
                                                                          
Gross profit         1,417,818      2.46   %     1,377,817     3.31   %   2.9   %
^(1)
                                                                          
Operating
expenses:
  Distribution,
  selling and        740,401        1.28   %     644,236       1.55   %   14.9  %
  administrative
  Depreciation
  and                88,444         0.15   %     78,552        0.19   %   12.6  %
  amortization
  Warrants           121,960        0.21   %     3,761         0.01   %
  Employee
  severance,        6,269         0.01   %    1,705        -      %
  litigation and
  other
Total operating      957,074        1.66   %     728,254       1.75   %   31.4  %
expenses
                                                                          
Operating            460,744        0.80   %     649,563       1.56   %   -29.1 %
income
                                                                          
Other (income)       (4,380     )   -0.01  %     726           -      %
loss
                                                                          
Interest            38,306        0.07   %    37,035       0.09   %   3.4   %
expense, net
                                                                          
Income before        426,818        0.74   %     611,802       1.47   %   -30.2 %
income taxes
                                                                          
Income taxes        197,810       0.34   %    233,038      0.56   %   -15.1 %
                                                                          
Income from
continuing           229,008        0.40   %     378,764       0.91   %   -39.5 %
operations
                                                                          
Loss from
discontinued        (7,546     )               (164,519   )
operations, net
of income taxes
                                                                          
Net income         $ 221,462       0.38   %   $ 214,245      0.52   %
                                                                          
                                                                          
Basic earnings
per share:
  Continuing       $ 1.00                      $ 1.64                     -39.0 %
  operations
  Discontinued       (0.03      )                (0.71      )
  operations
  Rounding          (0.01      )               -          
  Total            $ 0.96                     $ 0.93       
                                                                          
Diluted earnings
per share:
  Continuing       $ 0.97                      $ 1.61                     -39.8 %
  operations
  Discontinued      (0.03      )               (0.70      )
  operations
  Total            $ 0.94                     $ 0.91       
                                                                          
Weighted average
common shares
outstanding:
  Basic              229,852                     231,409
  Diluted            236,650                     235,307                  0.6   %
  ^(2)
                                                                                

 ^(1) Includes a $21.9 million gain from antitrust litigation settlements and
  a $160.4 million LIFO expense in the six months ended March 31, 2014.
  Includes a $15.8 million gain from antitrust litigation settlements and a
  $1.0 million LIFO expense in the six months ended March 31, 2013.
  ^(2) Includes the dilutive effect of stock options, restricted stock,
  restricted stock units and the Warrants issued to Walgreens and Alliance
  Boots.


  AMERISOURCEBERGEN CORPORATION
  RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)
  (dollars in thousands, except per share data)
  (unaudited)
                                                                                                              
                Three Months Ended March 31, 2014
                                 Dilution of   Gain on                      Acquisition                  Employee
                GAAP             Unexercised   Antitrust     LIFO Expense   Related        Warrant       Severance,    Adjusted
                                 Warrants      Litigation                   Intangibles    Expense       Litigation    Non-GAAP
                                               Settlements                  Amortization                 and Other
                                                                                                                                         
  Revenue       $ 28,455,903                   $ -           $ -            $  -           $ -           $ -           $ 28,455,903
  Cost of        27,726,310                  849         (102,828 )     -           -           -           27,624,331 
  goods sold
  Gross           729,593                        (849    )     102,828         -             -             -             831,572
  profit
  Operating      428,465                     -           -             (5,825  )    (5,663  )    (1,967  )    415,010    
  expenses
  Operating       301,128                        (849    )     102,828         5,825         5,663         1,967         416,562
  income
  Other           (3,783     )                   -             -               -             -             -             (3,783     )
  income
  Interest
  expense,       19,474                      -           -             -           -           -           19,474     
  net
  Income
  before          285,437                        (849    )     102,828         5,825         5,663         1,967         400,871
  income
  taxes
  Income         105,360                     (361    )    38,862        2,207       6,315       750         153,133    
  taxes ^(1)
  Income from
  continuing    $ 180,077                    $ (488    )   $ 63,966      $  3,618      $ (652    )   $ 1,217      $ 247,738    
  operations
                                                                                                                                         
  Diluted
  earnings
  per share
  from          $ 0.76           $  0.01       $ -           $ 0.27         $  0.02        $ -           $ 0.01        $ 1.06       ^(3)
  continuing
  operations
  ^(2)
                                                                                                                                         
  Diluted
  weighted
  average
  common          236,268           234,272      234,272       234,272         234,272       234,272       234,272       234,272
  shares
  outstanding
  ^(2)
                                                                                                                                         
  Percentages
  of revenue:
                                                                                                                                         
  Gross           2.56       %                                                                                           2.92       %
  profit
  Operating       1.51       %                                                                                           1.46       %
  expenses
  Operating       1.06       %                                                                                           1.46       %
  income
                                                                                                                                         

^(1) The amount of Warrant expense deductible for 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) For the reconciling items and for the non-GAAP presentation, diluted
earnings per share and diluted weighted average common shares outstanding have
been adjusted to exclude the impact of the accounting dilution from the
unexercised Warrants.
                                        
^(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, we believe that our 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)
(dollars in thousands, except per share data)
(unaudited)
                                                                                               
                Three Months Ended March 31, 2013
                                 Gain on                     Acquisition                  Employee
                GAAP             Antitrust     LIFO Credit   Related        Warrant       Severance,    Adjusted
                                 Litigation                  Intangibles    Expense       Litigation    Non-GAAP
                                 Settlements                 Amortization                 and Other
                                                                                                        
  Revenue       $ 20,523,668     $ -           $ -           $  -           $ -           $ -           $ 20,523,668
  Cost of        19,806,679     3,456       215          -           -           -           19,810,350 
  goods sold
  Gross           716,989          (3,456  )     (215    )      -             -             -             713,318
  profit
  Operating      366,866        -           -            (6,098  )    (3,761  )    299         357,306    
  expenses
  Operating       350,123          (3,456  )     (215    )      6,098         3,761         (299    )     356,012
  income
  Other loss      749              -             -              -             -             -             749
  Interest
  expense,       18,510         -           -            -           -           -           18,510     
  net
  Income
  before          330,864          (3,456  )     (215    )      6,098         3,761         (299    )     336,753
  income
  taxes
  Income         126,721        (1,320  )    (82     )     2,330       1,130       (114    )    128,665    
  taxes
  Income from
  continuing    $ 204,143       $ (2,136  )   $ (133    )   $  3,768      $ 2,631      $ (185    )   $ 208,088    
  operations
                                                                                                        
  Diluted
  earnings
  per share     $ 0.87           $ (0.01   )   $ -           $  0.02        $ 0.01        $ -           $ 0.89       ^(1)
  from
  continuing
  operations
                                                                                                        
  Diluted
  weighted
  average         234,587          234,587       234,587        234,587       234,587       234,587       234,587
  common
  shares
  outstanding
                                                                                                        
  Percentages
  of revenue:
                                                                                                        
  Gross           3.49       %                                                                            3.48       %
  profit
  Operating       1.79       %                                                                            1.74       %
  expenses
  Operating       1.71       %                                                                            1.73       %
  income
                                                                                                                     

^(1) 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, we believe that our 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)
(dollars in thousands, except per share data)
(unaudited)
                                                                                                              
                Six Months Ended March 31, 2014
                                 Dilution of   Gain on                      Acquisition                   Employee
                GAAP             Unexercised   Antitrust     LIFO Expense   Related        Warrant        Severance,    Adjusted
                                 Warrants      Litigation                   Intangibles    Expense        Litigation    Non-GAAP
                                               Settlements                  Amortization                  and Other
                                                                                                                        
  Revenue       $ 57,632,265                   $ -           $ -            $  -           $ -            $ -           $ 57,632,265
  Cost of        56,214,447                  21,872      (160,410 )     -           -            -           56,075,909 
  goods sold
  Gross           1,417,818                      (21,872 )     160,410         -             -              -             1,556,356
  profit
  Operating      957,074                     -           -             (11,783 )    (121,960 )    (6,269  )    817,062    
  expenses
  Operating       460,744                        (21,872 )     160,410         11,783        121,960        6,269         739,294
  income
  Other           (4,380     )                   -             -               -             -              -             (4,380     )
  income
  Interest
  expense,       38,306                      -           -             -           -            -           38,306     
  net
  Income
  before          426,818                        (21,872 )     160,410         11,783        121,960        6,269         705,368
  income
  taxes
  Income         197,810                     (8,243  )    60,450        4,441       12,630       2,363       269,451    
  taxes ^(1)
  Income from
  continuing    $ 229,008                    $ (13,629 )   $ 99,960      $  7,342      $ 109,330     $ 3,906      $ 435,917    
  operations
                                                                                                                        
  Diluted
  earnings
  per share
  from          $ 0.97           $  0.01       $ (0.06   )   $ 0.43         $  0.03        $ 0.47         $ 0.02        $ 1.86       ^(3)
  continuing
  operations
  ^(2)
                                                                                                                        
  Diluted
  weighted
  average
  common          236,650           234,838      234,838       234,838         234,838       234,838        234,838       234,838
  shares
  outstanding
  ^(2)
                                                                                                                        
  Percentages
  of revenue:
                                                                                                                        
  Gross           2.46       %                                                                                            2.70       %
  profit
  Operating       1.66       %                                                                                            1.42       %
  expenses
  Operating       0.80       %                                                                                            1.28       %
  income
                                                                                                                                     

^(1) The amount of Warrant expense deductible for 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) For the reconciling items and for the non-GAAP presentation, diluted
earnings per share and diluted weighted average common shares outstanding have
been adjusted to exclude the impact of the accounting dilution from the
unexercised Warrants.
                                        
^(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, we believe that our 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)
  (dollars in thousands, except per share data)
  (unaudited)
                                                                                                
                Six Months Ended March 31, 2013
                                 Gain on                     Acquisition                  Employee
                GAAP             Antitrust     LIFO          Related        Warrant       Severance,    Adjusted
                                 Litigation    Expense       Intangibles    Expense       Litigation    Non-GAAP
                                 Settlements                 Amortization                 and Other
                                                                                                        
  Revenue       $ 41,583,479     $ -           $ -           $  -           $ -           $ -           $ 41,583,479
  Cost of        40,205,662     15,764      (952    )     -           -           -           40,220,474 
  goods sold
  Gross           1,377,817        (15,764 )     952            -             -             -             1,363,005
  profit
  Operating      728,254        -           -            (12,197 )    (3,761  )    (1,705  )    710,591    
  expenses
  Operating       649,563          (15,764 )     952            12,197        3,761         1,705         652,414
  income
  Other loss      726              -             -              -             -             -             726
  Interest
  expense,       37,035         -           -            -           -           -           37,035     
  net
  Income
  before          611,802          (15,764 )     952            12,197        3,761         1,705         614,653
  income
  taxes
  Income         233,038        (5,978  )    362          4,638       1,130       644         233,834    
  taxes
  Income from
  continuing    $ 378,764       $ (9,786  )   $ 590        $  7,559      $ 2,631      $ 1,061      $ 380,819    
  operations
                                                                                                        
  Diluted
  earnings
  per share     $ 1.61           $ (0.04   )   $ -           $  0.03        $ 0.01        $ -           $ 1.62       ^(1)
  from
  continuing
  operations
                                                                                                        
  Diluted
  weighted
  average         235,307          235,307       235,307        235,307       235,307       235,307       235,307
  common
  shares
  outstanding
                                                                                                        
  Percentages
  of revenue:
                                                                                                        
  Gross           3.31       %                                                                            3.28       %
  profit
  Operating       1.75       %                                                                            1.71       %
  expenses
  Operating       1.56       %                                                                            1.57       %
  income

 ^(1) 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, we believe that our presentation of non-GAAP
  financial measures provides useful supplementary information to, and
  facilitates additional analysis by, investors.

                                                          
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                                                              
                                                              
ASSETS
                                               March 31,      September 30,
                                               2014           2013
Current assets:
  Cash and cash equivalents                    $ 696,730      $  1,231,006
  Accounts receivable, net                       6,506,412       6,051,920
  Merchandise inventories                        8,493,269       6,981,494
  Prepaid expenses and other                    63,616         129,231
  Total current assets                           15,760,027      14,393,651
                                                              
Property and equipment, net                      850,847         803,561
Other long-term assets                          3,750,373      3,721,426
                                                              
  Total assets                                 $ 20,361,247   $  18,918,638
                                                              
                                                              
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                              
Current liabilities:
  Accounts payable                             $ 14,909,626   $  13,335,792
  Other current liabilities                     1,590,305      1,534,843
  Total current liabilities                      16,499,931      14,870,635
                                                              
Long-term debt                                   1,396,948       1,396,606
                                                              
Other long-term liabilities                      318,853         331,652
                                                              
Stockholders' equity                            2,145,515      2,319,745
                                                              
  Total liabilities and stockholders' equity   $ 20,361,247   $  18,918,638
                                                                 

AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
                                                                  
                                                                      
                                    Three Months Ended March 31,
Revenue                             2014             2013             % Change
                                                                      
Pharmaceutical Distribution         $ 27,932,495     $ 20,054,159     39    %
Other                                 572,503          514,942        11    %
Intersegment eliminations            (49,095    )    (45,433    )   8     %
                                                                      
Revenue                             $ 28,455,903    $ 20,523,668    39    %
                                                                      
                                                                      
                                                                      
                                                                      
                                    Three Months Ended March 31,
Operating Income                    2014             2013             % Change
                                                                      
Pharmaceutical Distribution         $ 372,929        $ 321,077        16    %
Other                                 43,633           34,935         25    %
Gain on antitrust litigation          849              3,456
settlements
LIFO (expense) credit                 (102,828   )     215
Acquisition related intangibles       (5,825     )     (6,098     )
amortization
Warrant expense                       (5,663     )     (3,761     )
Employee severance, litigation       (1,967     )    299        
and other
                                                                      
Operating income                    $ 301,128       $ 350,123       -14   %
                                                                      
                                                                      
                                                                      
Percentages of revenue:
                                                                      
Pharmaceutical Distribution
Gross profit                          2.49       %     2.93       %
Operating expenses                    1.15       %     1.33       %
Operating income                      1.34       %     1.60       %
                                                                      
Other
Gross profit                          23.82      %     24.40      %
Operating expenses                    16.20      %     17.61      %
Operating income                      7.62       %     6.78       %
                                                                      
AmerisourceBergen Corporation
(GAAP)
Gross profit                          2.56       %     3.49       %
Operating expenses                    1.51       %     1.79       %
Operating income                      1.06       %     1.71       %
                                                                      
AmerisourceBergen Corporation
(Non-GAAP)
Gross profit                          2.92       %     3.48       %
Operating expenses                    1.46       %     1.74       %
Operating income                      1.46       %     1.73       %


AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION
(dollars in thousands)
(unaudited)
                                                                  
                                                                      
                                    Six Months Ended March 31,
Revenue                             2014             2013             % Change
                                                                      
Pharmaceutical Distribution         $ 56,555,086     $ 40,653,207     39    %
Other                                 1,176,635        1,019,992      15    %
Intersegment eliminations            (99,456    )    (89,720    )   11    %
                                                                      
Revenue                             $ 57,632,265    $ 41,583,479    39    %
                                                                      
                                                                      
                                                                      
                                                                      
                                    Six Months Ended March 31,
Operating Income                    2014             2013             % Change
                                                                      
Pharmaceutical Distribution         $ 659,711        $ 587,754        12    %
Other                                 79,583           64,660         23    %
Gain on antitrust litigation          21,872           15,764
settlements
LIFO expense                          (160,410   )     (952       )
Acquisition related intangibles       (11,783    )     (12,197    )
amortization
Warrant expense                       (121,960   )     (3,761     )
Employee severance, litigation       (6,269     )    (1,705     )
and other
                                                                      
Operating income                    $ 460,744       $ 649,563       -29   %
                                                                      
                                                                      
                                                                      
Percentages of revenue:
                                                                      
Pharmaceutical Distribution
Gross profit                          2.28       %     2.74       %
Operating expenses                    1.11       %     1.30       %
Operating income                      1.17       %     1.45       %
                                                                      
Other
Gross profit                          22.69      %     24.23      %
Operating expenses                    15.92      %     17.89      %
Operating income                      6.76       %     6.34       %
                                                                      
AmerisourceBergen Corporation
(GAAP)
Gross profit                          2.46       %     3.31       %
Operating expenses                    1.66       %     1.75       %
Operating income                      0.80       %     1.56       %
                                                                      
AmerisourceBergen Corporation
(Non-GAAP)
Gross profit                          2.70       %     3.28       %
Operating expenses                    1.42       %     1.71       %
Operating income                      1.28       %     1.57       %


AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                              
                                                 Six             Six
                                                 Months Ended    Months Ended
                                                 March 31,       March 31,
                                                 2014            2013
                                                                 
Operating Activities:
Net income                                       $ 221,462       $ 214,245
Loss from discontinued operations                 7,546         164,519   
Income from continuing operations                  229,008         378,764
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities                   231,572         141,401
Changes in operating assets and liabilities       (340,381  )    178,059   
Net cash provided by operating activities -        120,199         698,224
continuing operations
Net cash (used in) provided by operating          (7,546    )    45,431    
activities - discontinued operations
Net cash provided by operating activities         112,653       743,655   
                                                                 
Investing Activities:
Capital expenditures                               (125,392  )     (88,377   )
Other                                             (2,743    )    81        
Net cash used in investing activities -            (128,135  )     (88,296   )
continuing operations
Net cash used in investing activities -           -             (9,643    )
discontinued operations
Net cash used in investing activities             (128,135  )    (97,939   )
                                                                 
Financing Activities:
Purchases of common stock                          (251,961  )     (284,691  )
Exercises of stock options                         59,675          65,850
Cash dividends on common stock                     (108,397  )     (98,203   )
Purchases of capped call options                   (211,397  )     -
Other                                             (6,714    )    (6,086    )
Net cash used in financing activities -            (518,794  )     (323,130  )
continuing operations
Net cash used in financing activities -           -             (41,897   )
discontinued operations
Net cash used in financing activities             (518,794  )    (365,027  )
                                                                 
(Decrease) increase in cash and cash               (534,276  )     280,689
equivalents
                                                                 
Cash and cash equivalents at beginning of         1,231,006     1,066,608 
period
                                                                 
Cash and cash equivalents at end of period       $ 696,730      $ 1,347,297 

Contact:

AmerisourceBergen Corporation
Barbara Brungess
Vice President, Corporate & Investor Relations
610-727-7199
bbrungess@amerisourcebergen.com
 
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