Revenues of $45.4 billion for the Third
Quarter, a 0.3 Percent Increase Year-Over-Year
Third Quarter GAAP Diluted EPS of $1.41 and
Adjusted Diluted EPS of $1.85
Adjusted Diluted EPS Guidance Range Raised to
$7.80 to $7.95 for Fiscal 2020
AmerisourceBergen Corporation (NYSE: ABC) today reported that in
its fiscal year 2020 third quarter ended June 30, 2020, revenue
increased 0.3 percent year-over-year to $45.4 billion. On the basis
of U.S. generally accepted accounting principles (GAAP), diluted
earnings per share (EPS) was $1.41 for the June quarter of fiscal
2020, compared to $1.43 in the prior year quarter. Adjusted diluted
EPS, which is a non-GAAP measure that excludes items described
below, increased 5.1 percent to $1.85 in the fiscal third
quarter.
The Company raised its adjusted diluted EPS guidance for fiscal
2020 to a range of $7.80 to $7.95 from the previous range of $7.35
to $7.65. The Company does not provide forward-looking guidance on
a GAAP basis, as discussed below in Fiscal Year 2020
Expectations.
"In the third quarter of the fiscal year, we saw the resilience
of our business as our associates worked diligently to ensure
continued patient access. Our updated outlook for fiscal 2020
reflects the continued execution by our teams and the strength of
AmerisourceBergen's value proposition, deep partnerships and
strategic positioning," said Steven H. Collis, Chairman, President
and Chief Executive Officer of AmerisourceBergen.
"Our teams are leveraging the power of AmerisourceBergen's
culture to deliver collaborative and innovative services and
solutions for our partners as they navigate the complexity of the
current environment," Mr. Collis continued. "AmerisourceBergen is
living our purpose of being united in our responsibility to create
healthier futures as we continue to focus on protecting our
associates, execution across our company and advancing our talent
and culture, driving long-term value creation for all our
stakeholders."
Third Quarter Fiscal Year 2020 Summary
Results
GAAP
Adjusted (Non-GAAP)
Revenue
$45.4B
$45.4B
Gross Profit
$1.2B
$1.2B
Operating Expenses
$821M
$725M
Operating Income
$405M
$508M
Interest Expense, Net
$38M
$38M
Effective Tax Rate
16.5%
18.8%
Net Income Attributable to ABC
$289M
$380M
Diluted Earnings Per Share
$1.41
$1.85
Diluted Shares Outstanding
206M
206M
Below, AmerisourceBergen presents descriptive summaries of the
Company’s GAAP and adjusted (non-GAAP) quarterly results. In the
tables that follow, GAAP results and GAAP to non-GAAP
reconciliations are presented. For more information related to
non-GAAP financial measures, including adjustments made in the
periods presented, please refer to the "Supplemental Information
Regarding non-GAAP Financial Measures" following the tables.
Third Quarter GAAP
Results
- Revenue: In the third quarter of
fiscal 2020, revenue was $45.4 billion, up 0.3 percent compared to
the same quarter in the previous fiscal year, reflecting a 0.1
percent increase in Pharmaceutical Distribution Services revenue
and a 4.4 percent increase in revenue within Other.
- Gross Profit: Gross profit in the
fiscal 2020 third quarter was $1.2 billion, a 0.4 percent decrease
compared to the same period in the previous fiscal year. Gross
profit was unfavorably impacted by lower gains from antitrust
litigation settlements and a LIFO expense in comparison to a LIFO
credit in the prior year period, which were offset in part by
increases in gross profit in Pharmaceutical Distribution Services
and Other and lower PharMEDium remediation and shutdown costs.
Gross profit as a percentage of revenue was 2.70 percent, a
decrease of 2 basis points from the prior year quarter.
- Operating Expenses: In the third
quarter of fiscal 2020, operating expenses were $820.9 million,
compared to $824.5 million in the same period last fiscal year. The
decrease in operating expenses was primarily due to lower
depreciation and amortization expense, offset in part by an
increase in distribution, selling and administrative costs.
Operating expenses as a percentage of revenue in the fiscal 2020
third quarter was 1.81 percent, compared to 1.82 percent for the
same period in the previous fiscal year.
- Operating Income: In the fiscal
2020 third quarter, operating income decreased to $404.8 million
from $406.7 million in the prior year quarter. Operating income as
a percentage of revenue was 0.89 percent in the third quarter of
fiscal 2020, compared to 0.90 percent for the same period in the
previous fiscal year.
- Interest Expense, Net: In the
fiscal 2020 third quarter, net interest expense of $37.7 million
was up 5.1 percent versus the prior year quarter due to a decrease
in interest income resulting primarily from a decline in investment
interest rates and was substantially offset by a decrease in
interest expense.
- Effective Tax Rate: The effective
tax rate was 16.5 percent for the third quarter of fiscal 2020 and
18.6 percent in the prior year quarter, reflecting a benefit
resulting from a discrete tax item.
- Diluted Earnings Per Share:
Diluted earnings per share was $1.41 in the third quarter of fiscal
2020 compared to $1.43 in the previous fiscal year’s third
quarter.
- Diluted Shares Outstanding:
Diluted weighted average shares outstanding for the third quarter
of fiscal 2020 were 205.5 million, a 2.7 percent decline versus the
prior fiscal year third quarter primarily due to share repurchases,
net of stock option exercises.
Third Quarter Adjusted (non-GAAP)
Results
The comments below compare adjusted results, which exclude: gain
from antitrust litigation settlements; LIFO expense/credit;
PharMEDium remediation and shutdown costs; New York State Opioid
Stewardship Act; contingent consideration adjustment;
acquisition-related intangibles amortization; employee severance,
litigation, and other; impairment of PharMEDium assets; a loss on
early retirement of debt; a gain on the sale of an equity
investment; certain discrete tax benefits; and tax reform.
- Revenue: No adjustments were made
to the GAAP presentation of revenue. In the third quarter of fiscal
2020, revenue was $45.4 billion, up 0.3 percent compared to the
same quarter in the previous fiscal year, reflecting a 0.1 percent
increase in Pharmaceutical Distribution Services revenue and a 4.4
percent increase in revenue within Other.
- Adjusted Gross Profit: Adjusted
gross profit in the fiscal 2020 third quarter was $1.2 billion,
which was up 0.2 percent compared to the same period in the
previous year, due to the increases in gross profit in
Pharmaceutical Distribution Services and Other. Adjusted gross
profit as a percentage of revenue was 2.72 percent in the fiscal
2020 third quarter, flat when compared to the prior year
quarter.
- Adjusted Operating Expenses: In
the third quarter of fiscal 2020, adjusted operating expenses were
$724.7 million, an increase of 0.3 percent compared to the same
period in the previous fiscal year. Adjusted operating expenses as
a percentage of revenue in the fiscal 2020 third quarter was 1.60
percent, flat when compared to the prior year quarter.
- Adjusted Operating Income: In the
fiscal 2020 third quarter, adjusted operating income of $507.5
million increased 0.2 percent from the prior year period due to a
3.6 percent increase in operating income within Pharmaceutical
Distribution Services, offset in part by a 12.9 percent decline in
operating income within Other. Adjusted operating income as a
percentage of revenue was 1.12 percent in the fiscal 2020 third
quarter, flat when compared to the prior year quarter.
- Interest Expense, Net: No
adjustments were made to the GAAP presentation of net interest
expense. In the fiscal 2020 third quarter, net interest expense of
$37.7 million was up 5.1 percent versus the prior year quarter due
to a decrease in interest income resulting primarily from a decline
in investment interest rates and was substantially offset by a
decrease in interest expense.
- Adjusted Effective Tax Rate: The
adjusted effective tax rate was 18.8 percent for the third quarter
of fiscal 2020 compared to 21.0 percent in the prior year quarter,
reflecting a benefit resulting from a discrete tax item.
- Adjusted Diluted Earnings Per
Share: Adjusted diluted earnings per share was up 5.1
percent to $1.85 in the third quarter of fiscal 2020 compared to
$1.76 in the previous fiscal year’s third quarter, driven primarily
by the lower adjusted effective tax rate and a lower number of
diluted shares outstanding.
- Diluted Shares Outstanding: No
adjustments were made to the GAAP presentation of diluted shares
outstanding. Diluted weighted average shares outstanding for the
third quarter of fiscal 2020 were 205.5 million, a 2.7 percent
decline versus the prior fiscal year third quarter primarily due to
share repurchases, net of stock option exercises.
Segment Discussion
The Company's operations are comprised of the Pharmaceutical
Distribution Services reportable segment and other operating
segments that are not significant enough to require separate
reportable segment disclosure and, therefore, have been included in
Other for the purpose of the reportable segment presentation. Other
consists of operating segments that focus on global
commercialization services and animal health and includes
AmerisourceBergen Consulting Services (ABCS), World Courier and MWI
Animal Health (MWI).
Pharmaceutical Distribution Services
Segment
Pharmaceutical Distribution Services revenue was $43.6 billion,
an increase of 0.1 percent compared to the same quarter in the
prior fiscal year primarily due to the onset of COVID-19 in March
2020, when many of our customers increased their purchases in the
fiscal quarter ended March 31, 2020, which resulted in fewer
purchases in the fiscal quarter ended June 30, 2020. Segment
operating income of $426.6 million in the third quarter of fiscal
2020 was up 3.6 percent compared to the same period in the previous
fiscal year, due to lower operating expenses and higher gross
profit.
Other
Revenue in Other was $1.8 billion in the third quarter of fiscal
2020, an increase of 4.4 percent compared to the same period in the
prior fiscal year due to growth at ABCS and World Courier.
Operating income in Other decreased 12.9 percent to $82.9 million
in the third quarter of fiscal 2020. This decrease was primarily
due to impacts of COVID-19 at MWI.
Recent Company Highlights &
Milestones
- Good Neighbor Pharmacy, AmerisourceBergen’s national
independent pharmacy network, announced that it has been ranked
“Highest in Customer Satisfaction with Chain Drug Store Pharmacies”
in the J.D. Power 2020 U.S. Pharmacy Study. This marks the ninth
time that Good Neighbor Pharmacy has earned the achievement in the
last 11 years.
- AmerisourceBergen has been named a 2020 DiversityInc
‘Noteworthy’ company for the fourth year in a row, based on its
hiring, retention and promotion of women, minorities, people with
disabilities, LGBT and veterans.
- The AmerisourceBergen Foundation, a separate not-for-profit
charitable giving organization, hosted its second annual
conference, bringing together over sixty non-profit partners to
address challenging issues society is facing today and share
strategies and best practices.
Fiscal Year 2020
Expectations
The Company does not provide forward-looking guidance on a GAAP
basis as certain financial information, the probable significance
of which cannot be determined, is not available or cannot be
reasonably estimated. Please refer to the Supplemental Information
Regarding Non-GAAP Financial Measures following the tables for
additional information.
Fiscal Year 2020 Expectations on an
Adjusted (non-GAAP) Basis
AmerisourceBergen has updated its fiscal year 2020 financial
guidance to reflect the Company’s continued strong performance and
solid execution. The Company now expects:
- Revenue growth in the mid-single digit percent range, up from
the low- to mid- single digit percent range; and
- Adjusted Diluted EPS to be in the range of $7.80 to $7.95, up
from the previous range of $7.35 to $7.65.
Additional expectations now include:
- Adjusted operating income growth in the mid- to high-single
digit percent range, up from the low- to mid-single digit percent
range;
- Pharmaceutical Distribution Services segment operating income
growth in the mid- to high-single digit percent range, up from the
low- to mid-single digit percent range;
- Other, which is comprised of businesses focused on Global
Commercialization Services & Animal Health, operating income
growth in the low-single digit percent range, up from operating
income decline in the low-single digit percent rage; and
- Adjusted effective tax rate of approximately 21 percent, down
from the previous range of 21 percent to 22 percent; and
- Capital expenditures of approximately $375 million, down from
the $400 million range.
All other previously communicated aspects of the Company's
fiscal year 2020 financial guidance and assumptions remain the
same.
Dividend Declaration
The Company's Board of Directors declared a quarterly cash
dividend of $0.42 per common share, payable September 1, 2020, to
stockholders of record at the close of business on August 17,
2020.
Conference Call & Slide
Presentation
The Company will host a conference call to discuss the results
at 8:30 a.m. ET on August 5, 2020. A slide presentation for
investors has also been posted on the Company's website at
investor.amerisourcebergen.com. Participating in the conference
call will be:
- Steven H. Collis, Chairman, President & Chief Executive
Officer
- James F. Cleary, Executive Vice President & Chief Financial
Officer
The dial-in number for the live call will be (844) 808-6694.
From outside the United States, dial (412) 317-5282. No access code
is required. The live call will also be webcast via the Company’s
website at investor.amerisourcebergen.com. Users are encouraged to
log on to the webcast approximately 10 minutes in advance of the
scheduled start time of the call.
Replays of the call will be made available via telephone and
webcast. A replay of the webcast will be posted on
investor.amerisourcebergen.com approximately one hour after the
completion of the call and will remain available for one year. The
telephone replay will also be available approximately one hour
after the completion of the call and will remain available for
seven days. To access the telephone replay from within the U.S.,
dial (877) 344-7529. From Canada, dial (855) 669-9658. From outside
the United States and Canada, dial (412) 317-0088. The access code
for the replay is 10145670.
Upcoming Investor Events
AmerisourceBergen management will be participating in the
following investor conference in the coming months:
- Morgan Stanley Annual Global Healthcare Conference, September
14-18.
Please check the website for updates regarding the timing of the
live presentation webcasts, if any, and for replay information.
About AmerisourceBergen
AmerisourceBergen provides pharmaceutical products,
value-driving services and business solutions that improve access
to care. Tens of thousands of healthcare providers, veterinary
practices and livestock producers trust us as their partner in the
pharmaceutical supply chain. Global manufacturers depend on us for
services that drive commercial success for their products. Through
our daily work—and powered by our 22,000 associates—we are united
in our responsibility to create healthier futures.
AmerisourceBergen is ranked #10 on the Fortune 500, with more than
$175 billion in annual revenue. The company is headquartered in
Valley Forge, Pa. and has a presence in 50+ countries. Learn more
at investor.amerisourcebergen.com.
AmerisourceBergen's Cautionary Note Regarding Forward-Looking
Statements
Certain of the statements contained in this press release are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Words such as "expect," "likely," "outlook,"
"forecast," "would," "could," "should," "can," "project," "intend,"
"plan," "continue," "sustain," "synergy," "on track," "believe,"
"seek," "estimate," "anticipate," "may," "possible," "assume,"
variations of such words, and similar expressions are intended to
identify such forward-looking statements. These statements are
based on management's current expectations and are subject to
uncertainty and changes in circumstances and speak only as of the
date hereof. These statements are not guarantees of future
performance and are based on assumptions and estimates that could
prove incorrect or could cause actual results to vary materially
from those indicated. Among the factors that could cause actual
results to differ materially from those projected, anticipated, or
implied are the following: unfavorable trends in brand and generic
pharmaceutical pricing, including in rate or frequency of price
inflation or deflation; competition and industry consolidation of
both customers and suppliers resulting in increasing pressure to
reduce prices for our products and services; changes in the United
States healthcare and regulatory environment, including changes
that could impact prescription drug reimbursement under Medicare
and Medicaid; increasing governmental regulations regarding the
pharmaceutical supply channel and pharmaceutical compounding;
declining reimbursement rates for pharmaceuticals; continued
federal and state government enforcement initiatives to detect and
prevent suspicious orders of controlled substances and the
diversion of controlled substances; continued prosecution or suit
by federal, state and other governmental entities of alleged
violations of laws and regulations regarding controlled substances,
including due to failure to achieve a global resolution of the
multi-district opioid litigation and other related state court
litigation, and any related disputes, including shareholder
derivative lawsuits; increased federal scrutiny and litigation,
including qui tam litigation, for alleged violations of laws and
regulations governing the marketing, sale, purchase and/or
dispensing of pharmaceutical products or services, and associated
reserves and costs; failure to comply with the Corporate Integrity
Agreement; material adverse resolution of pending legal
proceedings; the retention of key customer or supplier
relationships under less favorable economics or the adverse
resolution of any contract or other dispute with customers or
suppliers; changes to customer or supplier payment terms, including
as a result of the COVID-19 impact on such payment terms; risks
associated with the strategic, long-term relationship between
Walgreens Boots Alliance, Inc. and the Company, including
principally with respect to the pharmaceutical distribution
agreement and/or the global generic purchasing services
arrangement; changes in tax laws or legislative initiatives that
could adversely affect the Company's tax positions and/or the
Company's tax liabilities or adverse resolution of challenges to
the Company's tax positions; regulatory or enforcement action in
connection with our former compounded sterile preparations (CSP)
business or the related consent decree; managing foreign expansion,
including non-compliance with the U.S. Foreign Corrupt Practices
Act, anti-bribery laws, economic sanctions and import laws and
regulations; financial market volatility and disruption; the loss,
bankruptcy or insolvency of a major supplier, including as a result
of COVID-19; substantial defaults in payment, material reduction in
purchases by or the loss, bankruptcy or insolvency of a major
customer, including as a result of COVID-19; financial and other
impacts of COVID-19 on our operations or business continuity;
changes to the customer or supplier mix; malfunction, failure or
breach of sophisticated information systems to operate as designed;
risks generally associated with data privacy regulation and the
international transfer of personal data; natural disasters or other
unexpected events that affect the Company’s operations; the
impairment of goodwill or other intangible assets (including any
additional impairments with respect to foreign operations),
resulting in a charge to earnings; the acquisition of businesses
that do not perform as expected, or that are difficult to integrate
or control, or the inability to capture all of the anticipated
synergies related thereto or to capture the anticipated synergies
within the expected time period; the Company's ability to manage
and complete divestitures; the disruption of the Company's cash
flow and ability to return value to its stockholders in accordance
with its past practices; interest rate and foreign currency
exchange rate fluctuations; declining economic conditions in the
United States and abroad; and other economic, business,
competitive, legal, tax, regulatory and/or operational factors
affecting the Company's business generally. Certain additional
factors that management believes could cause actual outcomes and
results to differ materially from those described in
forward-looking statements are set forth (i) in Item 1A (Risk
Factors), in the Company’s Annual Report on Form 10-K for the
fiscal year ended September 30, 2019 and elsewhere in that report
and (ii) in other reports filed by the Company pursuant to the
Securities Exchange Act. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, except as
required by the federal securities laws.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY (In thousands, except per share data)
(unaudited)
Three Months Ended
June 30, 2020
% of Revenue
Three Months Ended
June 30, 2019
% of Revenue
% Change
Revenue
$
45,366,777
$
45,239,265
0.3%
Cost of goods sold
44,141,061
44,008,026
0.3%
Gross profit 1
1,225,716
2.70%
1,231,239
2.72%
(0.4)%
Operating expenses:
Distribution, selling, and administrative
2
666,885
1.47%
656,943
1.45%
1.5%
Depreciation and amortization
95,415
0.21%
107,596
0.24%
(11.3)%
Employee severance, litigation, and other
3
58,585
60,006
Total operating expenses
820,885
1.81%
824,545
1.82%
(0.4)%
Operating income
404,831
0.89%
406,694
0.90%
(0.5)%
Other loss (income), net
1,073
(342)
Interest expense, net
37,748
35,921
5.1%
Loss on early retirement of debt
22,175
—
Income before income taxes
343,835
0.76%
371,115
0.82%
(7.4)%
Income tax expense
56,567
69,113
Net income
287,268
0.63%
302,002
0.67%
(4.9)%
Net loss (income) attributable to
noncontrolling interest
2,171
(43)
Net income attributable to
AmerisourceBergen Corporation
$
289,439
0.64%
$
301,959
0.67%
(4.1)%
Earnings per share:
Basic
$
1.42
$
1.44
(1.4)%
Diluted
$
1.41
$
1.43
(1.4)%
Weighted average common shares
outstanding:
Basic
203,654
209,705
(2.9)%
Diluted
205,544
211,161
(2.7)%
________________________________________
1
Includes a $6.1 million LIFO expense and
$0.4 million of PharMEDium shutdown costs in the three months ended
June 30, 2020. Includes $11.7 million of PharMEDium remediation
costs, a $9.9 million LIFO credit, and a $3.5 million gain from
antitrust litigation settlements in the three months ended June 30,
2019.
2
Includes $12.5 million of PharMEDium
shutdown costs in the three months ended June 30, 2020. Includes
$7.6 million of PharMEDium remediation costs in the three months
ended June 30, 2019.
3
Includes $6.5 million of employee
severance, $31.4 million of litigation costs related to legal fees
in connection with opioid lawsuits and investigations, and $20.7
million of other costs in connection with business transformation
efforts, acquisition-related deal and integration costs, and other
restructuring initiatives in the three months ended June 30, 2020.
Includes $10.8 million of employee severance, $18.8 million of
litigation costs related to legal fees in connection with opioid
lawsuits and investigations, and $30.4 million of other costs in
connection with business transformation efforts,
acquisition-related deal and integration costs, and other
restructuring initiatives in the three months ended June 30,
2019.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY (In thousands, except per share data)
(unaudited)
Nine Months Ended
June 30, 2020
% of Revenue
Nine Months Ended
June 30, 2019
% of Revenue
% Change
Revenue
$
140,649,158
$
133,951,319
5.0%
Cost of goods sold
136,804,121
129,997,744
5.2%
Gross profit 1
3,845,037
2.73%
3,953,575
2.95%
(2.7)%
Operating expenses:
Distribution, selling, and administrative
2
2,046,251
1.45%
1,941,564
1.45%
5.4%
Depreciation and amortization
293,725
0.21%
353,862
0.26%
(17.0)%
Employee severance, litigation, and other
3
165,626
156,067
Impairment of PharMEDium assets
361,652
570,000
Total operating expenses
2,867,254
2.04%
3,021,493
2.26%
(5.1)%
Operating income
977,783
0.70%
932,082
0.70%
4.9%
Other loss (income), net 4
2,806
(11,739)
Interest expense, net
103,176
121,366
(15.0)%
Loss on early retirement of debt
22,175
—
Income before income taxes
849,626
0.60%
822,455
0.61%
3.3%
Income tax (benefit) expense 5
(595,321)
100,627
Net income
1,444,947
1.03%
721,828
0.54%
100.2%
Net (income) loss attributable to
noncontrolling interest
(7,591)
918
Net income attributable to
AmerisourceBergen Corporation
$
1,437,356
1.02%
$
722,746
0.54%
98.9%
Earnings per share:
Basic
$
7.01
$
3.45
103.2%
Diluted
$
6.95
$
3.42
103.2%
Weighted average common shares
outstanding:
Basic
205,017
209,484
(2.1)%
Diluted
206,714
211,151
(2.1)%
________________________________________
1
Includes a $43.2 million LIFO expense,
$12.6 million of PharMEDium remediation and shutdown costs, and an
$8.5 million gain from antitrust litigation settlements in the nine
months ended June 30, 2020. Includes a $142.7 million gain from
antitrust litigation settlements, a $79.7 million LIFO credit,
$41.9 million of PharMEDium remediation costs, and a $22.0 million
reversal of a prior period assessment relating to the New York
State Opioid Stewardship Act in the nine months ended June 30,
2019.
2
Includes $49.0 million of PharMEDium
remediation and shutdown costs and a $12.2 million adjustment to
Profarma's estimate of contingent consideration related to the
purchase price of one of its prior business acquisitions in the
nine months ended June 30, 2020. Includes $13.8 million of
PharMEDium remediation costs in the nine months ended June 30,
2019.
3
Includes $32.4 million of employee
severance, $86.9 million of litigation costs related to legal fees
in connection with opioid lawsuits and investigations, and $46.4
million of other costs in connection with business transformation
efforts, other restructuring initiatives, and acquisition-related
deal and integration costs in the nine months ended June 30, 2020.
Includes $29.6 million of employee severance, $47.2 million of
litigation costs related to legal fees in connection with opioid
lawsuits and investigations, and $79.3 million of other costs in
connection with acquisition-related deal and integration costs,
business transformation efforts, and other restructuring
initiatives in the nine months ended June 30, 2019.
4
Includes a $13.7 million gain on the sale
of an equity investment in the nine months ended June 30, 2019.
5
Includes $741.0 million of discrete tax
benefits primarily attributable to the income tax deductions
resulting from the shutdown of the PharMEDium business in the nine
months ended June 30, 2020. Includes a $37.0 million measurement
period adjustment of the one-time transition tax on historical
earnings and profits through December 31, 2017 in the nine months
ended June 30, 2019.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share
data) (unaudited)
Three Months Ended June 30,
2020
Gross Profit
Operating Expenses
Operating Income
Income Before Income
Taxes
Income Tax Expense
Net Loss (Income) Attributable
to Noncontrolling Interest
Net Income Attributable to
ABC
Diluted Earnings Per
Share
GAAP
$
1,225,716
$
820,885
$
404,831
$
343,835
$
56,567
$
2,171
$
289,439
$
1.41
Gain from antitrust litigation
settlements
—
—
—
—
(15)
—
15
—
LIFO expense
6,061
—
6,061
6,061
1,555
—
4,506
0.02
PharMEDium shutdown costs
432
(12,504)
12,936
12,936
3,264
—
9,672
0.05
Acquisition-related intangibles
amortization
—
(25,109)
25,109
25,109
6,276
(437)
18,396
0.09
Employee severance, litigation, and
other
—
(58,585)
58,585
58,585
14,583
—
44,002
0.21
Impairment of PharMEDium assets
—
—
—
—
638
—
(638)
—
Contingent consideration adjustment
—
—
—
—
(22)
(1,833)
(1,811)
(0.01)
Loss on early retirement of debt
—
—
—
22,175
5,449
—
16,726
0.08
Adjusted Non-GAAP
$
1,232,209
$
724,687
$
507,522
$
468,701
$
88,295
$
(99)
$
380,307
$
1.85
Adjusted Non-GAAP % change vs. prior year
quarter
0.2
%
0.3
%
0.2
%
(0.5)
%
(10.8)
%
2.3
%
5.1
%
Percentages of Revenue:
GAAP
Adjusted Non-GAAP
Gross profit
2.70%
2.72%
Operating expenses
1.81%
1.60%
Operating income
0.89%
1.12%
________________________________________
Note: For more information related to
non-GAAP financial measures, refer to the section titled
"Supplemental Information Regarding Non-GAAP Financial Measures" of
this release.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share
data) (unaudited)
Three months ended June 30,
2019
Gross Profit
Operating Expenses
Operating Income
Income Before Income
Taxes
Income Tax Expense
Net Income Attributable to
Noncontrolling Interest
Net Income Attributable
to ABC
Diluted Earnings Per
Share
GAAP
$
1,231,239
$
824,545
$
406,694
$
371,115
$
69,113
$
(43)
$
301,959
$
1.43
Gain from antitrust litigation
settlements
(3,480)
—
(3,480)
(3,480)
(1,849)
—
(1,631)
(0.01)
LIFO credit
(9,913)
—
(9,913)
(9,913)
(3,061)
—
(6,852)
(0.03)
PharMEDium remediation costs
11,698
(7,646)
19,344
19,344
5,301
—
14,043
0.07
New York State Opioid Stewardship Act
—
—
—
—
(149)
—
149
—
Acquisition-related intangibles
amortization
—
(34,024)
34,024
34,024
9,511
(440)
24,073
0.11
Employee severance, litigation, and
other
—
(60,006)
60,006
60,006
16,329
—
43,677
0.21
Impairment of PharMEDium assets
—
—
—
—
3,848
—
(3,848)
(0.02)
Gain on sale of an equity investment
—
—
—
—
(93)
—
93
—
Adjusted Non-GAAP
$
1,229,544
$
722,869
$
506,675
$
471,096
$
98,950
$
(483)
$
371,663
$
1.76
Percentages of Revenue:
GAAP
Adjusted Non-GAAP
Gross profit
2.72%
2.72%
Operating expenses
1.82%
1.60%
Operating income
0.90%
1.12%
________________________________________
Note: For more information related to
non-GAAP financial measures, refer to the section titled
"Supplemental Information Regarding Non-GAAP Financial Measures" of
this release.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share
data) (unaudited)
Nine Months Ended June 30,
2020
Gross Profit
Operating Expenses
Operating Income
Income Before Income
Taxes
Income Tax (Benefit)
Expense
Net Income Attributable to
Noncontrolling Interest
Net Income Attributable to
ABC
Diluted Earnings Per
Share
GAAP
$
3,845,037
$
2,867,254
$
977,783
$
849,626
$
(595,321)
$
(7,591)
$
1,437,356
$
6.95
Gain from antitrust litigation
settlements
(8,546)
—
(8,546)
(8,546)
(2,100)
—
(6,446)
(0.03)
LIFO expense
43,195
—
43,195
43,195
10,614
—
32,581
0.16
PharMEDium shutdown and remediation
costs
12,556
(49,015)
61,571
61,571
15,128
—
46,443
0.22
Acquisition-related intangibles
amortization
—
(85,345)
85,345
85,345
20,971
(1,308)
63,066
0.31
Employee severance, litigation, and
other
—
(165,626)
165,626
165,626
40,697
—
124,929
0.60
Impairment of PharMEDium assets
—
(361,652)
361,652
361,652
88,865
—
272,787
1.32
Contingent consideration adjustment
—
12,153
(12,153)
(12,153)
(2,987)
5,678
(3,488)
(0.02)
Loss on early retirement of debt
—
—
—
22,175
5,449
—
16,726
0.08
Certain discrete tax benefits 1
—
—
—
—
741,015
—
(741,015)
(3.58)
Adjusted Non-GAAP
$
3,892,242
$
2,217,769
$
1,674,473
$
1,568,491
$
322,331
$
(3,221)
$
1,242,939
$
6.01
Adjusted Non-GAAP % change vs. prior year
period
3.8
%
2.9
%
5.0
%
6.6
%
4.9
%
6.8
%
9.1
%
Percentages of Revenue:
GAAP
Adjusted Non-GAAP
Gross profit
2.73%
2.77%
Operating expenses
2.04%
1.58%
Operating income
0.70%
1.19%
________________________________________
1
Includes $741.0 million of
discrete tax benefits primarily attributable to the income tax
deductions resulting from the shutdown of the PharMEDium
business.
Note: For more information related to
non-GAAP financial measures, refer to the section titled
"Supplemental Information Regarding Non-GAAP Financial Measures" of
this release.
AMERISOURCEBERGEN CORPORATION
GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share
data) (unaudited)
Nine Months Ended June 30,
2019
Gross Profit
Operating Expenses
Operating Income
Income Before Income
Taxes
Income Tax Expense
Net Loss (Income) Attributable
to Noncontrolling Interest
Net Income Attributable
to ABC
Diluted Earnings Per
Share
GAAP
$
3,953,575
$
3,021,493
$
932,082
$
822,455
$
100,627
$
918
$
722,746
$
3.42
Gain from antitrust litigation
settlements
(142,735)
—
(142,735)
(142,735)
(37,299)
—
(105,436)
(0.50)
LIFO credit
(79,747)
—
(79,747)
(79,747)
(20,839)
—
(58,908)
(0.28)
PharMEDium remediation costs
41,943
(13,793)
55,736
55,736
14,565
—
41,171
0.19
New York State Opioid Stewardship Act
(22,000)
—
(22,000)
(22,000)
(5,749)
—
(16,251)
(0.08)
Acquisition-related intangibles
amortization
—
(125,770)
125,770
125,770
32,866
(1,383)
91,521
0.43
Employee severance, litigation, and
other
—
(156,067)
156,067
156,067
40,783
—
115,284
0.55
Impairment of PharMEDium assets
—
(570,000)
570,000
570,000
148,951
—
421,049
1.99
Gain on sale of an equity investment
—
—
—
(13,692)
(3,578)
—
(10,114)
(0.05)
Tax reform 1
—
—
—
—
36,997
—
(36,997)
(0.18)
Adjusted Non-GAAP
$
3,751,036
$
2,155,863
$
1,595,173
$
1,471,854
$
307,324
$
(465)
$
1,164,065
$
5.51
2
Percentages of Revenue:
GAAP
Adjusted Non-GAAP
Gross profit
2.95%
2.80%
Operating expenses
2.26%
1.61%
Operating income
0.70%
1.19%
________________________________________
1
Includes a measurement period adjustment
of the one-time transition tax on historical foreign earnings and
profits through December 31, 2017.
2
The sum of the components does not equal
the total due to rounding.
Note: For more information related to
non-GAAP financial measures, refer to the section titled
"Supplemental Information Regarding Non-GAAP Financial Measures" of
this release.
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION (dollars in thousands) (unaudited)
Three months ended June
30,
Revenue
2020
2019
% Change
Pharmaceutical Distribution Services
$
43,579,119
$
43,527,552
0.1%
Other
1,810,533
1,734,538
4.4%
Intersegment eliminations
(22,875)
(22,825)
Revenue
$
45,366,777
$
45,239,265
0.3%
Three months ended June
30,
Operating income
2020
2019
% Change
Pharmaceutical Distribution Services
$
426,643
$
411,707
3.6%
Other
82,875
95,110
(12.9)%
Intersegment eliminations
(1,996)
(142)
Total segment operating income
507,522
506,675
0.2%
Gain from antitrust litigation
settlements
—
3,480
LIFO (expense) credit
(6,061)
9,913
PharMEDium shutdown and remediation
costs
(12,936)
(19,344)
Acquisition-related intangibles
amortization
(25,109)
(34,024)
Employee severance, litigation, and
other
(58,585)
(60,006)
Operating income
$
404,831
$
406,694
Percentages of revenue:
Pharmaceutical Distribution Services
Gross profit
2.08%
2.08%
Operating expenses
1.10%
1.13%
Operating income
0.98%
0.95%
Other
Gross profit
18.17%
18.77%
Operating expenses
13.59%
13.29%
Operating income
4.58%
5.48%
AmerisourceBergen Corporation (GAAP)
Gross profit
2.70%
2.72%
Operating expenses
1.81%
1.82%
Operating income
0.89%
0.90%
AmerisourceBergen Corporation
(Non-GAAP)
Adjusted gross profit
2.72%
2.72%
Adjusted operating expenses
1.60%
1.60%
Adjusted operating income
1.12%
1.12%
Note: For more information related to
non-GAAP financial measures, refer to the section titled
"Supplemental Information Regarding Non-GAAP Financial Measures" of
this release.
AMERISOURCEBERGEN CORPORATION
SUMMARY SEGMENT INFORMATION (dollars in thousands) (unaudited)
Nine Months Ended June
30,
Revenue
2020
2019
% Change
Pharmaceutical Distribution Services
$
135,178,617
$
128,948,097
4.8%
Other
5,534,110
5,070,905
9.1%
Intersegment eliminations
(63,569)
(67,683)
Revenue
$
140,649,158
$
133,951,319
5.0%
Nine Months Ended June
30,
Operating income
2020
2019
% Change
Pharmaceutical Distribution Services
$
1,381,434
$
1,301,948
6.1%
Other
295,614
293,923
0.6%
Intersegment eliminations
(2,575)
(698)
Total segment operating income
1,674,473
1,595,173
5.0%
Gain from antitrust litigation
settlements
8,546
142,735
LIFO (expense) credit
(43,195)
79,747
PharMEDium shutdown and remediation
costs
(61,571)
(55,736)
New York State Opioid Stewardship Act
—
22,000
Acquisition-related intangibles
amortization
(85,345)
(125,770)
Employee severance, litigation, and
other
(165,626)
(156,067)
Impairment of PharMEDium assets
(361,652)
(570,000)
Contingent consideration adjustment
12,153
—
Operating income
$
977,783
$
932,082
Percentages of revenue:
Pharmaceutical Distribution Services
Gross profit
2.11%
2.15%
Operating expenses
1.09%
1.14%
Operating income
1.02%
1.01%
Other
Gross profit
18.78%
19.27%
Operating expenses
13.44%
13.47%
Operating income
5.34%
5.80%
AmerisourceBergen Corporation (GAAP)
Gross profit
2.73%
2.95%
Operating expenses
2.04%
2.26%
Operating income
0.70%
0.70%
AmerisourceBergen Corporation
(Non-GAAP)
Adjusted gross profit
2.77%
2.80%
Adjusted operating expenses
1.58%
1.61%
Adjusted operating income
1.19%
1.19%
Note: For more information related to
non-GAAP financial measures, refer to the section titled
"Supplemental Information Regarding Non-GAAP Financial Measures" of
this release.
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
(unaudited)
June 30,
September 30,
2020
2019
ASSETS
Current assets:
Cash and cash equivalents
$
3,420,272
$
3,374,194
Accounts receivable, net
12,548,399
12,386,879
Inventories
11,849,201
11,060,254
Right to recover asset
1,340,935
1,147,483
Income tax receivable
596,024
5,859
Prepaid expenses and other
163,741
157,385
Total current assets
29,918,572
28,132,054
Property and equipment, net
1,455,008
1,770,516
Goodwill and other intangible assets
8,615,677
9,000,343
Other long-term assets
800,446
269,067
Total assets
$
40,789,703
$
39,171,980
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
29,145,149
$
28,385,074
Other current liabilities
966,712
1,057,208
Short-term debt
519,710
139,012
Total current liabilities
30,631,571
29,581,294
Long-term debt
3,620,641
4,033,880
Accrued income taxes
268,519
284,075
Deferred income taxes
1,806,260
1,860,195
Other long-term liabilities
494,761
419,330
Total equity
3,967,951
2,993,206
Total liabilities and equity
$
40,789,703
$
39,171,980
AMERISOURCEBERGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
(unaudited)
Nine Months Ended June
30,
2020
2019
Operating Activities:
Net income
$
1,444,947
$
721,828
Adjustments to reconcile net income to net
cash provided by operating activities 1
822,005
957,240
Changes in operating assets and
liabilities, excluding the effects of acquisitions:
Accounts receivable
(436,237)
(672,742)
Inventories
(910,828)
(280,148)
Accounts payable
824,105
964,667
Other, net 2
(836,184)
(19,644)
Net cash provided by operating
activities
907,808
1,671,201
Investing Activities:
Capital expenditures
(251,101)
(230,767)
Cost of equity investments and acquired
companies, net of cash acquired
(34,830)
(64,044)
Other, net
7,824
(2,222)
Net cash used in investing activities
(278,107)
(297,033)
Financing Activities:
Net repayments
(10,960)
(130,493)
Payment of premium on early retirement of
debt
(21,448)
—
Purchases of common stock 3
(420,449)
(522,778)
Exercises of stock options
137,748
54,860
Cash dividends on common stock
(256,764)
(255,064)
Other
(11,750)
(13,650)
Net cash used in financing activities
(583,623)
(867,125)
Increase in cash and cash equivalents
46,078
507,043
Cash and cash equivalents at beginning of
period
3,374,194
2,492,516
Cash and cash equivalents at end of
period
$
3,420,272
$
2,999,559
________________________________________
1
Includes a LIFO expense of $43.2 million
and an impairment of PharMEDium assets of $361.7 million in the
nine months ended June 30, 2020. Includes a LIFO credit of $79.7
million and an impairment of PharMEDium assets of $570.0 million in
the nine months ended June 30, 2019.
2
Includes a $590.2 million increase in
income tax receivable for the nine months ended June 30, 2020
primarily as a result of recognizing certain discrete tax
benefits.
3
Purchases of common stock in the nine
months ended June 30, 2020 includes $14.8 million of September 2019
purchases that cash settled in October 2019. Purchases of common
stock in the nine months ended June 30, 2019 includes $24.0 million
of September 2018 purchases that cash settled in October 2018 and
excludes $0.1 million of June 2019 purchases that cash settled in
July 2019.
SUPPLEMENTAL INFORMATION REGARDING NON-GAAP
FINANCIAL MEASURES
To supplement the financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), the Company
uses the non-GAAP financial measures described below. The non-GAAP
financial measures should be viewed in addition to, and not in lieu
of, financial measures calculated in accordance with GAAP. These
supplemental measures may vary from, and may not be comparable to,
similarly titled measures by other companies.
The non-GAAP financial measures are presented because management
uses non-GAAP financial measures to evaluate the Company’s
operating performance, to perform financial planning, and to
determine incentive compensation. Therefore, the Company believes
that the presentation of non-GAAP financial measures provides
useful supplementary information to, and facilitates additional
analysis by, investors. The presented non-GAAP financial measures
exclude items that management does not believe reflect the
Company’s core operating performance because such items are outside
the control of the Company or are inherently unusual,
non-operating, unpredictable, non-recurring, or non-cash. We have
included the following non-GAAP earnings-related financial measures
in this release:
- Adjusted gross profit and adjusted gross profit margin:
Adjusted gross profit is a non-GAAP financial measure that excludes
the gain from antitrust litigation settlements, LIFO expense
(credit), certain PharMEDium remediation costs, certain PharMEDium
shutdown costs, and the (credit) related to the New York State
Opioid Stewardship Act (the "NYS Opioid Act"). Gain from antitrust
litigation settlements and LIFO expense (credit) are excluded
because the Company cannot control the amounts recognized or timing
of these items. PharMEDium remediation costs are excluded because
they are unpredictable expenses. The (credit) related to the NYS
Opioid Act and PharMEDium shutdown costs are excluded because they
are unusual and non-recurring and, in the case of the NYS Opioid
Act, also non-cash. Adjusted gross profit margin is the ratio of
adjusted gross profit to total revenue. Management believes that
these non-GAAP financial measures are useful to investors as a
supplemental measure of the Company’s ongoing operating
performance. The gain from antitrust litigation settlements relates
to the settlement of lawsuits that have been filed against brand
pharmaceutical manufacturers alleging that the manufacturer, by
itself or in concert with others, took improper actions to delay or
prevent generic drugs from entering the market. The PharMEDium
remediation costs relate to costs incurred in connection with
suspended production activities following U.S. Food and Drug
Administration inspections. PharMEDium shutdown costs are costs
incurred in connection with the permanent shutdown of the
PharMEDium business. LIFO expense (credit) is affected by changes
in inventory quantities, product mix, and manufacturer pricing
practices, which may be impacted by market and other external
influences. The NYS Opioid Act, which went into effect on July 1,
2018, established an annual $100 million fund and requires
manufacturers, distributors, and importers to ratably share the
assessment based upon opioids sold or distributed to or within New
York state. In December 2018, the NYS Opioid Act was ruled
unconstitutional by the U.S. District Court for the Southern
District of New York.
- Adjusted operating expenses and adjusted operating expense
margin: Adjusted operating expenses is a non-GAAP financial measure
that excludes acquisition-related intangibles amortization,
employee severance, litigation, and other, certain PharMEDium
remediation costs, certain PharMEDium shutdown costs, impairment of
PharMEDium assets, and a contingent consideration adjustment.
Adjusted operating expense margin is the ratio of adjusted
operating expenses to total revenue. Acquisition-related
intangibles amortization is excluded because it is a non-cash item
and does not reflect the operating performance of the acquired
companies. We exclude employee severance amounts that relate to
unpredictable and/or non-recurring business restructuring. We
exclude the amount of litigation settlements and other expenses, as
well as PharMEDium remediation costs, PharMEDium shutdown costs, a
contingent consideration adjustment and the impairment of
PharMEDium assets, that are unusual, non-operating, unpredictable,
non-recurring or non-cash in nature because we believe these
exclusions facilitate the analysis of our ongoing operational
performance. The contingent consideration adjustment reflects an
adjustment made by one of the Company’s non-wholly-owned
subsidiaries, Profarma Distribuidora de Produtos Farmacêuticos
S.A., of its previous estimate of contingent consideration related
to the purchase price of a prior business acquisition.
- Adjusted operating income and adjusted operating income margin:
Adjusted operating income is a non-GAAP financial measure that
excludes the same items that are described above and excluded from
adjusted gross profit and adjusted operating expenses. Adjusted
operating income margin is the ratio of adjusted operating income
to total revenue. Management believes that these non-GAAP financial
measures are useful to investors as a supplemental way to evaluate
the Company’s performance because the adjustments are unusual,
non-operating, unpredictable, non-recurring or non-cash in
nature.
- Adjusted income before income taxes: Adjusted income before
income taxes is a non-GAAP financial measure that excludes the same
items that are described above and excluded from adjusted operating
income. In addition, the loss on early retirement of debt in fiscal
2020 and the gain on sale of an equity investment in fiscal 2019
are excluded from adjusted income before income taxes because they
were unusual, non-operating, and non-recurring. Management believes
that this non-GAAP financial measure is useful to investors because
it facilitates the calculation of the Company’s adjusted effective
tax rate.
- Adjusted effective tax rate: Adjusted effective tax rate is a
non-GAAP financial measure that is determined by dividing adjusted
income tax expense/benefit by adjusted income before income taxes.
Management believes that this non-GAAP financial measure is useful
to investors because it presents an effective tax rate that does
not reflect unusual, non-operating, unpredictable, non-recurring,
or non-cash amounts or items that are outside the control of the
Company.
- Adjusted income tax expense: Adjusted income tax expense is a
non-GAAP financial measure that excludes the income tax expense
associated with the same items that are described above and
excluded from adjusted income before income taxes. Certain discrete
tax benefits primarily attributable to the income tax deduction
recognized in connection with the permanent shutdown of PharMEDium
as well as the Coronavirus Aid, Relief and Economic Security Act
(the "CARES Act") are also excluded from adjusted income tax
expense for the nine months ended June 30, 2020. In addition, the
final U.S. tax reform measurement period adjustment to the one-time
transition tax liability on historical foreign earnings and profits
through December 31, 2017 ("Tax Reform") is excluded from adjusted
income tax expense for the nine months ended June 30, 2019.
Management believes that this non-GAAP financial measure is useful
to investors as a supplemental way to evaluate the Company’s
performance because the adjustments are unusual, non-operating,
unpredictable, non-recurring or non-cash in nature.
- Adjusted net income/loss attributable to noncontrolling
interest: Adjusted net income/loss attributable to noncontrolling
interest excludes the non-controlling interest portion of
acquisition-related intangibles amortization and a contingent
consideration adjustment. Management believes that this non-GAAP
financial measure is useful to investors because it facilitates the
calculation of adjusted net income attributable to ABC.
- Adjusted net income attributable to ABC: Adjusted net income
attributable to ABC is a non-GAAP financial measure that excludes
the same items that are described above. Management believes that
this non-GAAP financial measure is useful to investors as a
supplemental way to evaluate the Company's performance because the
adjustments are unusual, non-operating, unpredictable,
non-recurring or non-cash in nature.
- Adjusted diluted earnings per share: Adjusted diluted earnings
per share excludes the per share impact of adjustments including
gain from antitrust litigation settlements; LIFO expense (credit);
PharMEDium remediation costs; PharMEDium shutdown costs; the
(credit) related to the NYS Opioid Act; acquisition-related
intangibles amortization; employee severance, litigation, and
other; impairment of PharMEDium assets; a contingent consideration
adjustment; loss on early retirement of debt; and gain on sale of
an equity investment; in each case net of the tax effect calculated
using the applicable effective tax rate for those items. In
addition, the per share impact of Tax Reform is excluded from
adjusted diluted earnings per share for the nine months ended June
30, 2019 and the per share impact of certain discrete tax benefits
primarily attributable to the income tax deduction recognized in
connection with the permanent shutdown of PharMEDium as well as the
CARES Act are also excluded from adjusted diluted earnings per
share for the nine months ended June 30, 2020. Management believes
that this non-GAAP financial measure is useful to investors because
it eliminates the per share impact of the items that are outside
the control of the Company or that we consider to not be indicative
of our ongoing operating performance due to their inherent unusual,
non-operating, unpredictable, non-recurring, or non-cash
nature.
In addition, the Company has provided non-GAAP fiscal year 2020
guidance for diluted earnings per share, operating expense,
operating income, and effective income tax rate that excludes the
same or similar items as those that are excluded from the
historical non-GAAP financial measures, as well as significant
items that are outside the control of the Company or inherently
unusual, non-operating, unpredictable, non-recurring or non-cash in
nature. In addition, it has provided fiscal year 2020 adjusted free
cash flow guidance. For fiscal year 2020, we have defined the
non-GAAP financial measure of adjusted free cash flow as net cash
provided by operating activities, excluding other significant
unpredictable or non-recurring cash payments or receipts relating
to legal settlements, minus capital expenditures. For the nine
months ended June 30, 2020 adjusted free cash flow of $714.8
million consisted of net cash provided by operating activities of
$907.8 million, plus $66.7 million in cash payments made relating
to unfavorable legal settlements, minus $8.5 million in cash
payments received related to favorable legal settlements, and minus
capital expenditures of $251.1 million. The Company does not
provide forward looking guidance on a GAAP basis for such metrics
because certain financial information, the probable significance of
which cannot be determined, is not available and cannot be
reasonably estimated. For example, LIFO expense (credit) is largely
dependent upon the future inflation or deflation of brand and
generic pharmaceuticals, which is out of the Company’s control, and
acquisition-related intangibles amortization depends on the timing
and amount of future acquisitions, which cannot be reasonably
estimated. Similarly, the timing and amount of litigation
settlements is unpredictable and non-recurring.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200805005192/en/
Bennett S. Murphy Senior Vice President, Investor
Relations 610-209-5691
bmurphy@amerisourcebergen.com
AmerisourceBergen (NYSE:ABC)
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