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AmerisourceBergen
Corporation (ABC:NYSE):
Announces
Date and Time for
Earnings Release,
Conference Call and
Webcast
VALLEY FORGE, Pa., December
23, 2002-- AmerisourceBergen
Corporation (NYSE:ABC) today
announced that it plans
to release its First Quarter
Fiscal Year 2003 results
on Friday, January 24, 2003
prior to the opening of
trading on the New York
Stock Exchange. The Company
will host a conference call
to discuss the results at
11:00 am Eastern Standard
Time on January 24, 2002.
Participating in the
conference call will
be:
R.
David Yost, Chief
Executive Officer
Kurt J. Hilzinger,
President & Chief
Operating Officer
Michael D. DiCandilo,
Senior Vice President
& Chief Financial
Officer
The dial-in numbers
for the live call
will be as follows:
888/428-4480
from within the United
States. No access
code required.
651/291-0900 from
outside the United
States. No access
code required.
In order to ensure
the widest distribution
possible, the Company
will be broadcasting
the conference call
over the Internet.
The call will be accessible
through AmerisourceBergen's
web site, www.amerisourcebergen.com,
and also through Street
Events, www.streetevents.com.
Users are encouraged
to log on to the webcast
approximately 15 minutes
in advance of the
scheduled start time
of the call.
Following the live
call, replays will
be made available
on the Internet and
via telephone. 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. To access
the telephone replay
from within the US,
dial 800/475-6701.
From outside the US,
dial 320/365-3844.
The access code is
668095. The telephone
replay will be available
from 4:00 p.m. EST
on January 24, 2003
to 11:59 p.m. on January
31, 2003.
About AmerisourceBergen
Corporation
AmerisourceBergen
(NYSE:ABC) is the
largest pharmaceutical
services company in
the United States
dedicated solely to
the pharmaceutical
supply chain. It is
the leading distributor
of pharmaceutical
products and services
to the hospital systems/acute
care market, alternative
care providers, independent
community pharmacies,
and regional chains.
The company is also
a leader in the institutional
pharmacy marketplace.
With over $40 billion
in annualized operating
revenues, AmerisourceBergen
is headquartered in
Valley Forge, PA,
and employs more than
13,000 people serving
over 25,000 customers.
Forward-Looking Statements
This press release
may contain certain
"forward-looking statements"
within the meaning
of Section 27A of
the Securities Act
of 1933 and Section
21E of the Securities
Exchange Act of 1934.
These statements are
based on management's
current expectations
and are subject to
uncertainty and changes
in circumstances.
Actual results may
vary materially from
the expectations contained
in the forward-looking
statements. The forward-looking
statements herein
include statements
addressing future
financial and operating
results of AmerisourceBergen
and the benefits and
other aspects of the
merger between AmeriSource
Health Corporation
and Bergen Brunswig
Corporation.
The following factors,
among others, could
cause actual results
to differ materially
from those described
in the forward-looking
statements: the risk
that the businesses
of AmeriSource and
Bergen Brunswig will
not be integrated
successfully; failure
to obtain and retain
expected synergies;
and other economic,
business, competitive
and/or regulatory
factors affecting
the business of AmerisourceBergen
generally.
More detailed information
about these factors
is set forth in AmerisourceBergen's
filings with the Securities
and Exchange Commission,
including its June
30, 2002 Form 10-Q,
its Annual Report
on Form 10-K for fiscal
2001, and AmeriSource's
and Bergen's joint
proxy statement-prospectus
dated August 1, 2001.
AmerisourceBergen,
AmeriSource and Bergen
Brunswig are under
no obligation to (and
expressly disclaim
any such obligation
to) update or alter
their forward-looking
statements whether
as a result of new
information, future
events or otherwise.
Return
to headlines
Signs
Agreement to Purchase
US Bioservices Corporation
VALLEY FORGE,
Pa., December 13, 2002-- AmerisourceBergen Corporation (NYSE:ABC),
the largest pharmaceutical services company in the U.S. dedicated
solely to the pharmaceutical supply channel, today announced
that it has signed a definitive agreement to purchase US Bioservices
Corporation, a privately held company (approximately 58 percent
of which is owned by Whitney and Company), in a transaction
with a base purchase price valued at approximately $160 million
including assumed debt.
The agreement also provides for contingent payments of up
to $30 million based on US Bioservices achieving defined earnings
targets through the end of the first quarter of calendar year
2004. Both the base purchase price and the contingent payments
are subject to potential adjustments at closing. The transaction
is expected to close during the March 2003 quarter.
US Bioservices is a national pharmaceutical services provider
focused on the management of high-cost, complex therapies
and reimbursement support, and it anticipates revenues of
about $120 million in the 2002 calendar year.
AmerisourceBergen expects the acquisition to be slightly
accretive to the Company's fiscal 2003 earnings per share
expectations of 20 percent growth over the prior year's earnings
per share of $3.29 before special charges.
"We look forward to the contribution that US Bioservices
will make to our specialty pharmaceutical business," said
R. David Yost, AmerisourceBergen's Chief Executive Officer.
"US Bioservices brings service capabilities in a variety of
areas including special pediatrics therapies, complex blood
therapies and reimbursement services."
"Adding US Bioservices expands the Company's capability
to support the unique needs that pharmaceutical manufacturers
have when they launch complex products into the small, targeted
markets that are important to many biotechnology pharmaceutical
companies," said Steven H. Collis, Senior Vice President and
President of AmerisourceBergen Specialty Group. "Manufacturers
can come to AmerisourceBergen for complete support in launching
new specialty products, including distribution and logistics,
physician and patient education, and reimbursement."
AmerisourceBergen has agreed to issue approximately 2.4
million shares of its common stock upon the closing of the
transaction.
The shares of common stock that AmerisourceBergen has agreed
to issue upon the closing of the transaction have not been
registered under the Securities Act of 1933 and may not be
offered or sold in the United States absent registration or
an applicable exemption from registration requirements.
This news release shall not constitute an offer to sell
or a solicitation of an offer to buy such shares in any jurisdiction
in which such an offer or sale would be unlawful.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternate care and mail order facilities, independent
community pharmacies, and regional chain pharmacies.
The Company is also a leader in the institutional pharmacy
marketplace. With more than $40 billion in annualized operating
revenue, AmerisourceBergen is headquartered in Valley Forge,
PA, and employs more than 13,000 people serving over 25,000
customers.
Forward-Looking Statements
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on management's current expectations
and are subject to uncertainty and changes in circumstances.
Actual results may vary materially from the expectations
contained in the forward-looking statements. Forward-looking
statements may include statements addressing future financial
and operating results of AmerisourceBergen and the benefits
and aspects of the 2001 merger between AmeriSource Health
Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, its Quarterly Reports on Form 10-Q for fiscal 2002,
and the joint proxy statement-prospectus for the merger filed
on August 1, 2001.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward-looking
statements whether as a result of new information, future
events or otherwise.
Return
to headlines
Reviews
Growth Opportunities and Strategy At Investor Meeting in New
York City
VALLEY FORGE,
Pa., December 5, 2002-- AmerisourceBergen (NYSE:ABC), the largest
pharmaceutical services company in the United States dedicated
solely to the pharmaceutical supply chain, held an investor
meeting in New York City today to give an update on its future
plans.
Speaking at today's meeting, the Company's Chief Executive
Officer R. David Yost said, "We expect to grow our company
by remaining focused on and enhancing our position in the
pharmaceutical supply channel. By harnessing the full array
of capabilities and expertise within AmerisourceBergen, we
plan to bring new and innovative value-added services to manufacturers
and healthcare providers along the channel. We remain focused
on our integration efforts, and we are confident that we will
continue to meet our long term goals."
The Company expressed confidence in its pharmaceutical distribution
business and believes that the industry's fundamental growth
drivers remain strong. "We are committed to pharmaceutical
distribution, and we plan to increase our capabilities throughout
the channel in areas such as specialty pharmaceuticals, patient
safety, and pharmacy automation," continued Yost.
"We also remain confident in our ability to achieve our
targeted annual cost saving synergies of $150 million by the
end of fiscal year 2004, followed by additional synergy capture
through the completion of our distribution network," remarked
Yost.
The Company previously announced that it would consolidate
a total of 27 of its original 51 facilities, build six new
distribution centers, and expand seven existing facilities.
Seven consolidations were completed in fiscal year 2002, and
six larger distribution centers will be consolidated in fiscal
year 2003.
The completed distribution network will consist of 29 facilities
located throughout the United States, and one facility in
Puerto Rico for a total of 30.
"We are pleased to announce that we have broken ground on
two of our new, state of the art distribution facilities,
one in Columbus, Ohio, and one in Sacramento, California,"
said Kurt J. Hilzinger, AmerisourceBergen President and Chief
Operating Officer. "These two new distribution centers will
be excellent examples of what we envision for our future distribution
network--highly automated, bar code enabled, strategically
located facilities, with a footprint of 300,000 square feet
each and unparalleled operating efficiency." The Company is
actively pursuing the acquisition of land for the remaining
four new distribution centers. The new facilities become operational
approximately 24 months after land is acquired.
"We also have made significant progress with the first of
two planned facility expansions that will be completed in
fiscal year 2003. The expansion of our Boston, Massachusetts
distribution center is expected to be completed by the end
of the current calendar year," continued Hilzinger. "These
facility improvements will enhance our presence in each market
and will enable us to bring even greater efficiencies and
added value to our customers."
Looking ahead, the Company continues to see significant
growth opportunities across its businesses. "Through our focus
on the pharmaceutical channel, we continue to expect to drive
strong performance in fiscal year 2003," said Michael D. DiCandilo,
AmerisourceBergen Senior Vice President and Chief Financial
Officer. "In our December quarter, we see operating revenue
growth of approximately 13 percent and earnings per share
growth of 20 percent, excluding special charges. For the fiscal
year 2003, we continue to expect operating revenue growth
in line with projected market growth, a return on committed
capital of more than 20 percent, and earnings per share growth,
excluding special charges, of 20 percent.
"Our long-term goals remain to grow revenue with the market,
consistently achieve a return on committed capital of greater
than 20 percent, and grow earnings per share at 20 percent
or more, excluding special charges."
A rebroadcast of today's investor meeting is available beginning
at 3:30 pm Eastern Time today on the Investor Relations page
of the Company's website, www.amerisourcebergen.com. The replay
of the webcast will be available for 30 days.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems
and acute care market, alternate care facilities, independent
community pharmacies, and regional chain pharmacies.
The Company is also a leader in the institutional pharmacy
marketplace. With more than $40 billion in annualized operating
revenue, AmerisourceBergen is headquartered in Valley Forge,
PA, and employs more than 13,000 people serving over 25,000
customers.
Forward-Looking Statements
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on management's current expectations
and are subject to uncertainty and changes in circumstances.
Actual results may vary materially from the expectations
contained in the forward-looking statements. Forward-looking
statements may include statements addressing future financial
and operating results of AmerisourceBergen and the benefits
and aspects of the 2001 merger between AmeriSource Health
Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, its Quarterly Reports on Form 10-Q for fiscal 2002,
and the joint proxy statement-prospectus for the merger filed
on August 1, 2001.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward-looking
statements whether as a result of new information, future
events or otherwise.
Return
to headlines
Prices
$300 Million Senior Notes Due 2012
VALLEY FORGE,
Pa., November 13, 2002--AmerisourceBergen Corporation (NYSE:ABC)
today announced that it has agreed to sell $300 million Senior
Notes due 2012. The notes will have an annual interest rate
of 7.25 percent, payable semi-annually. The notes will be issued
in a private placement and are expected to be resold by the
initial purchasers to qualified institutional buyers under Rule
144A of the Securities Act of 1933.
The proceeds from the sale of the notes initially will be
used to repay amounts borrowed under the Company's revolving
credit facility, which is part of its senior credit facility.
Subsequently in fiscal 2003, AmerisourceBergen intends to
repay $150 million in aggregate principal amount of Bergen
7 3/8 percent senior notes due in January 2003, and to repay
$15 million of term loans under its senior credit facility.
The Company also intends to redeem approximately $124 million
in aggregate principal amount of PharMerica 8 3/8 percent
senior subordinated notes due 2008.
The notes to be offered have not been registered under the
Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption
from registration requirements.
This press release shall not constitute an offer to sell
or a solicitation of an offer to buy such notes in any jurisdiction
in which such an offer or sale would be unlawful and is issued
pursuant to Rule 135-c under the Securities Act of 1933.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternate care and mail order facilities, independent
community pharmacies, and regional chain pharmacies.
The Company is also a leader in the institutional pharmacy
marketplace. With over $40 billion in annualized operating
revenue, AmerisourceBergen is headquartered in Valley Forge,
PA, and employs more than 13,000 people serving over 25,000
customers.
Forward Looking Statements
This press release may contain certain "forward-looking
statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. These statements are based on management's current
expectations and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from the
expectations contained in the forward-looking statements.
Forward-looking statements may include statements addressing
future financial and operating results of AmerisourceBergen
and the benefits and aspects of the 2001 merger between AmeriSource
Health Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, its Quarterly Reports on Form 10-Q for fiscal 2002,
and the joint proxy statement-prospectus for the merger filed
on August 1, 2001.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward-looking
statements whether as a result of new information, future
events or otherwise.
Return
to headlines
Announces
Plan to Issue $275 Million Senior Notes Due 2012
VALLEY FORGE,
Pa., November 12, 2002-- AmerisourceBergen Corporation (NYSE:ABC)
today announced that it plans to issue $275 million Senior Notes
due 2012. The notes will be issued in a private placement and
are expected to be resold by the initial purchasers to qualified
institutional buyers under Rule 144A of the Securities Act of
1933. The proceeds from the sale of the notes will be used to
repay certain existing indebtedness.
The notes to be offered have not been registered under the
Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption
from registration requirements. This news release shall not
constitute an offer to sell or a solicitation of an offer
to buy such notes in any jurisdiction in which such an offer
or sale would be unlawful and is issued pursuant to Rule 135-c
under the Securities Act of 1933.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternate care and mail order facilities, independent
community pharmacies, and regional chain pharmacies. The Company
is also a leader in the institutional pharmacy marketplace.
With over $40 billion in annualized operating revenue, AmerisourceBergen
is headquartered in Valley Forge, PA, and employs more than
13,000 people serving over 25,000 customers.
Forward Looking Statements
This press release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on management's current expectations
and are subject to uncertainty and changes in circumstances.
Actual results may vary materially from the expectations contained
in the forward-looking statements. Forward-looking statements
may include statements addressing future financial and operating
results of AmerisourceBergen and the benefits and aspects
of the 2001 merger between AmeriSource Health Corporation
and Bergen Brunswig Corporation.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, its Quarterly Reports on Form 10-Q for fiscal 2002,
and the joint proxy statement-prospectus for the merger filed
on August 1, 2001.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward-looking
statements whether as a result of new information, future
events or otherwise.
Return
to headlines
Announces
Investor Meeting and Webcast
VALLEY FORGE,
Pa., November 8, 2002-- AmerisourceBergen Corporation (NYSE:ABC)
today announced that it plans to host an investor meeting in
New York City on Thursday, December 5, 2002 and to broadcast
the live proceedings via webcast.
The meeting and webcast will begin at 12:30 pm Eastern Standard
Time and will end at approximately 2:30 pm.
Participating in the meeting and webcast will be R. David
Yost, Chief Executive Officer, Kurt J. Hilzinger, President
& Chief Operating Officer, Michael D. DiCandilo, Senior Vice
President & Chief Financial Officer, as well as other members
of the Company's management team. The meeting will focus on
the Company's enhanced role in the Pharmaceutical Supply Channel.
The webcast will be accessible through AmerisourceBergen's
web site, www.amerisourcebergen.com, and also through Street
Events, www.streetevents.com. Users are encouraged to log
on to the webcast approximately 15 minutes in advance of the
scheduled start time of the call.
Following the live webcast, a replay will be made available
on the AmerisourceBergen website three hours after the completion
of the meeting and will remain available for approximately
thirty days.
About AmerisourceBergen Corporation
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply channel. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternative care providers, independent community
pharmacies, and regional chains.
The company is also a leader in the institutional pharmacy
marketplace. With over $40 billion in annualized operating
revenues, AmerisourceBergen is headquartered in Valley Forge,
PA, and employs more than 13,000 people serving over 25,000
customers.
Forward-Looking Statements
This press release may contain certain "forward-looking
statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. These statements are based on management's current
expectations and are subject to uncertainty and changes in
circumstances.
Actual results may vary materially from the expectations
contained in the forward-looking statements. Forward-looking
statements may include statements addressing future financial
and operating results of AmerisourceBergen and the benefits
and aspects of the 2001 merger between AmeriSource Health
Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, its Quarterly Reports on Form 10-Q for fiscal 2002,
and the joint proxy statement-prospectus for the merger filed
on August 1, 2001. AmerisourceBergen is under no obligation
to (and expressly disclaims any such obligation to) update
or alter any forward-looking statements whether as a result
of new information, future events or otherwise.
Return
to headlines
Signs
Agreement to Purchase Bridge Medical, Inc.
VALLEY FORGE,
Pa., November 5, 2002--AmerisourceBergen Corporation (NYSE:ABC)
the largest pharmaceutical services company in the U.S. dedicated
solely to the pharmaceutical supply channel, today announced
that it has signed a definitive agreement to purchase Bridge
Medical, Inc., the leading provider of barcode-enabled point-of-care
(BPOC) software designed to reduce medication errors and decrease
costs in healthcare facilities, for approximately $27 million
in common stock.
The agreement also includes incentive payments of up to
$55 million based on Bridge Medical achieving significant
earnings targets in calendar years 2003 and 2004. AmerisourceBergen
expects the purchase to be neutral to earnings in fiscal 2003
and accretive in fiscal 2004 after the effect of any incentive
payments.
Bridge Medical, which is headquartered in the San Diego
area and privately held, anticipates revenues of approximately
$25 million in calendar year 2003. The transaction is expected
to close by the end of calendar year 2002.
"We are extremely excited about Bridge's market-leading,
proven patient safety technology," said R. David Yost, AmerisourceBergen's
Chief Executive Officer. "Hospitals and other medical facilities
are already using this technology to increase medication accuracy
and improve operating efficiency. Our customers and suppliers
need unique, tailored solutions for delivering pharmaceuticals,
and this acquisition is one more example of our commitment
to enhance our offerings in the pharmaceutical supply channel."
"Combining Bridge's patient safety technology with AmerisourceBergen's
high service distribution capability, the in-pharmacy barcode
application capability of our recently acquired AutoMed operation,
and the packaging options of our American Health Packaging
unit provides the kind of pharmaceutical management solutions
our customers are seeking," said Kurt J. Hilzinger, AmerisourceBergen's
President and Chief Operating Officer. "We now have the most
comprehensive service offering in the industry with which
to address the challenges of staffing shortages, medication
errors and rising costs in today's healthcare environment."
"Joining AmerisourceBergen gives us the platform and resources
to rapidly expand this business," said John B. Grotting, Bridge's
President and Chief Executive Officer. "With the demand for
improvements in patient medication safety continuing to grow,
we are very excited about the market opportunities in long-term
care and acute care facilities that are ahead for us as part
of AmerisourceBergen."
Developed for hospitals and other patient care facilities,
Bridge's two primary products are MedPoint(TM) and InfoPoint(TM).
First introduced in 1999, MedPoint is the only BPOC system
to combine both medication and blood product administration
verification with laboratory specimen identification.
This patient safety product helps hospitals and health systems
increase efficiency and eliminate medication errors related
to pharmaceutical and blood transfusion administration and
laboratory specimen tracking.
MedPoint goes beyond the basic "five rights" of medication
monitoring (right patient, right drug, right dose, right time
and right route of administration) to also include features
such as allergy alerts, look-alike and sounds-alike alerts,
and high risk medication warnings.
Bridge's newest product, InfoPoint, is a data warehouse
system that allows clinicians and administrators to combine
clinical and financial data to improve patient outcomes and
reduce costs.
It integrates both clinical and financial data into a single
repository, giving hospitals unique views of both prospective
and retrospective patient and medication use data that can
be applied to therapeutic guideline compliance monitoring.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternate care and mail order facilities, independent
community pharmacies, and regional chain pharmacies.
The Company is also a leader in the institutional pharmacy
marketplace. With more than $40 billion in annualized operating
revenue, AmerisourceBergen is headquartered in Valley Forge,
PA, and employs more than 13,000 people serving over 25,000
customers.
About Bridge Medical
Founded in 1996, Bridge Medical, Inc., is headquartered
in Solana Beach, California. The company provides robust,
affordable, easy-to-use technology-based patient safety solutions,
including its market-leading MedPoint(TM) and InfoPoint(TM)
software. A pioneer in the use of bar code technology in healthcare,
Bridge has been honored for its patient safety solutions and
educational initiatives.
Forward-Looking Statements
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on management's current expectations
and are subject to uncertainty and changes in circumstances.
Actual results may vary materially from the expectations
contained in the forward-looking statements. Forward-looking
statements may include statements addressing future financial
and operating results of AmerisourceBergen and the benefits
and aspects of the 2001 merger between AmeriSource Health
Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, its Quarterly Reports on Form 10-Q for fiscal 2002,
and the joint proxy statement-prospectus for the merger filed
on August 1, 2001.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward-looking
statements whether as a result of new information, future
events or otherwise.
Return
to headlines
Reports
Record Earnings for Fiscal Year 2002
VALLEY FORGE,
Pa., November 5, 2002-- AmerisourceBergen Corporation (NYSE:ABC)
today reported record results for its fiscal fourth quarter
and fiscal year ended September 30, 2002.
Fiscal Fourth Quarter Highlights
-- Record diluted earnings per share of $.88 before special
charges.
-- Record operating revenue of $10.4 billion, up 14 percent,
pro forma.
-- Operating margin of 1.91 percent, up 12 basis points, pro
forma.
-- Return On Committed Capital (ROCC) of 25.5 percent.
Fiscal 2002 Highlights
-- Record diluted earnings per share of $3.29 before special
charges.
-- Record operating revenue of $40.2 billion, up 16 percent,
pro forma.
-- Cost saving synergies captured ahead of schedule.
-- Consolidated seven distribution centers and two specialty
operations.
-- Cash flow from operations of more than $500 million.
"This was an exceptional year at AmerisourceBergen," said
R. David Yost, AmerisourceBergen's Chief Executive Officer.
"During fiscal 2002, we successfully merged two great companies
and created the industry leader in the pharmaceutical supply
channel; a Company with the scale and dedication to maximize
shareholder value, deliver the highest customer service, and
provide new and innovative solutions to suppliers and customers
in the channel.
"Our success is a reflection of the dedication and hard
work of our associates. They made it happen on the firing
line. The financial result was a more than 40 percent increase
in earnings per share and $40 billion in revenue for the year.
Combined with our 25.5 percent ROCC, we exceeded our key financial
goals.
"From the beginning, it has not been about being the biggest,
but the best. In one year, we have laid a solid foundation,
and we have only begun to tap the potential of AmerisourceBergen.
With our number one position in the market, a growing array
of services and products, and a commitment to maximize our
synergy opportunities, we remain dedicated to increasing value
for our shareholders, customers, suppliers and associates."
Discussion of Results
AmeriSource Health Corporation and Bergen Brunswig Corporation
merged on August 29, 2001 to form AmerisourceBergen Corporation.
Under purchase accounting rules, AmerisourceBergen's fiscal
2002 fourth quarter and annual results are compared with the
fiscal 2001 historical fourth quarter and yearly results which
encompass the full year of former AmeriSource and approximately
one month of former Bergen. Pro forma data included in this
news release refers to the combined predecessor companies'
operating results in the previous year's fourth quarter and
fiscal year, adjusted to eliminate amortization of goodwill
and merger-related special charges. Both former companies
had the same fiscal year ending September 30.
Diluted earnings per share before special charges for the
fourth quarter of fiscal 2002 were $0.88, a 38 percent increase
over the prior year's fourth quarter. Income before special
charges for the fourth quarter of fiscal 2002 increased to
$97.3 million from $47.2 million in the same period last year.
Special charges, consisting of merger integration costs, were
$2.3 million, net of tax, in the quarter. Net income and diluted
earnings per share for the quarter were $95.0 million and
$0.86, respectively.
AmerisourceBergen's operating revenue, which excludes bulk
deliveries to customer warehouses, was $10.4 billion in the
fourth quarter of fiscal 2002 compared to $5.5 billion for
the same period last year. Fiscal 2002 fourth quarter operating
revenue increased 14 percent over fiscal 2001 fourth quarter
pro forma operating revenue of $9.1 billion.
For the 2002 fiscal year, diluted earnings per share before
special charges were $3.29, a 42 percent increase over the
prior year. Income before special charges for the year increased
to $359.6 million from $137.0 million last year. Special charges,
consisting of merger integration costs, were $14.6 million,
net of tax, in fiscal year 2002. Operating revenue for the
fiscal year ended September 30, 2002 was $40.2 billion compared
to $15.8 billion in the prior year, and represents a 16 percent
increase over pro forma operating revenue of $34.6 billion
in fiscal year 2001. Net income and diluted earnings per share
for the 2002 fiscal year were $344.9 million and $3.16, respectively.
The following discussion of results, including segment data,
does not include the impact of special charges.
"In the fiscal 2002 fourth quarter, our outstanding performance
was driven by our continual focus on customer service, synergy
cost savings ahead of internal expectations, and strong working
capital management," said Kurt J. Hilzinger, AmerisourceBergen
President and Chief Operating Officer. "The result was a double
digit expansion in operating margin, record earnings per share
and a ROCC of 25.5 percent.
"In pharmaceutical distribution we consolidated four distribution
centers in the September quarter bringing the total number
of consolidations in the fiscal year to seven, in line with
the schedule we set at the beginning of the fiscal year. Our
new generic pharmaceutical program, PROGenerics(TM), also
contributed to the quarter's strong performance.
"With the integration of the key functional areas now nearly
complete, in fiscal 2003 we will continue to work toward building
our new distribution network and introducing new offerings
to our customers in the pharmaceutical supply channel. We
expect to consolidate six larger distribution centers in the
coming fiscal year as well as begin building a number of new
facilities and expanding others. Retail and institutional
customers will see new programs to solve challenges such as
staffing shortages, cost constraints and dispensing accuracy.
"In our PharMerica segment, strong revenue growth in the
fiscal 2002 fourth quarter of 14 percent, pro forma, reflects
continued solid performance by PharMerica's workers' compensation
business, as well as improved growth in the long-term care
business," said Hilzinger. "The favorable impact of a single
information technology platform, continued receivable and
operating discipline, and the positive impact of the new generic
pharmaceutical program, drove PharMerica's performance in
the quarter."
Segment Review
AmerisourceBergen operates in two segments: Pharmaceutical
Distribution (which includes the AmerisourceBergen Drug Company
and AmerisourceBergen Specialty Group operations) and PharMerica
(which includes the institutional pharmacy and workers' compensation
fulfillment businesses). Intersegment sales of $201.2 million
in the fourth quarter of fiscal 2002 from AmerisourceBergen
Drug Company to PharMerica, which are included in the Pharmaceutical
Distribution segment operating revenue, are eliminated for
consolidated reporting purposes.
Pharmaceutical Distribution Segment
Operating revenue in the fourth quarter of fiscal 2002 increased
to $10.2 billion compared with $5.5 billion in the previous
year's fourth quarter. Operating revenue increased 14 percent
over fiscal 2001 fourth quarter pro forma revenue of $8.9
billion.
Pharmaceutical Distribution customer mix in the fourth quarter
of fiscal 2002 was 54 percent institutional and 46 percent
retail, and for fiscal year 2002 the mix was 53 percent institutional
and 47 percent retail. Both customer groups had double-digit
growth in the quarter and year.
Operating income was $174.6 million in the fourth quarter
of fiscal 2002, up from $94.8 million for the same quarter
last year, and improved 22 percent compared to pro forma operating
income of $143.2 million in the same period last year. For
the fiscal 2002 fourth quarter, operating income as a percentage
of operating revenue was 1.72 percent, an 11 basis point improvement
from the prior year's fourth quarter on a pro forma basis.
Lower gross margins, which reflect the Company's customer
mix and the competitive environment, were more than offset
by lower total operating expenses as a percentage of operating
revenue.
Total operating expenses as a percentage of operating revenue
in the fiscal 2002 fourth quarter were 2.20 percent, a 31
basis point improvement over the same quarter last year on
a pro forma basis driven by synergy cost savings, customer
mix and operating leverage.
AmerisourceBergen Specialty Group, with annualized revenue
of more than $2.5 billion, continued its strong quarterly
performance, building significant positions in oncology, blood
plasma, injectables and vaccine distribution as well as growing
its manufacturing services business.
PharMerica
PharMerica's operating revenue for the fourth quarter of
fiscal 2002 increased to $386.1 million from $116.7 million
in the previous year's fourth quarter. Operating revenue in
the quarter increased 14 percent over pro forma operating
revenue of $338.1 million in the same period last year.
Operating income for the fourth quarter of fiscal 2002 was
$22.9 million up from $6.5 million for the same quarter last
year, and improved 22 percent over the prior year's pro forma
fourth quarter operating income of $18.7 million. Operating
income as a percentage of operating revenue increased 40 basis
points in the quarter ended September 30, 2002 to 5.92 percent
from 5.52 percent on a pro forma basis in the prior year.
Looking Ahead
"For fiscal 2003, we expect another year of strong performance
with earnings per share growth of 20 percent excluding special
charges, ROCC well ahead of our 20 percent long-term target,
and revenue growth in line with projected market growth of
11 percent to 14 percent," said Yost. "We remain confident
in our ability to achieve annual cost saving synergies of
$150 million by the end of fiscal year 2004, followed by additional
synergy capture through completion of our distribution network."
Conference Call
The Company will host a conference call to discuss the results
at 11:00 a.m. Eastern Standard Time on November 5, 2002. Participating
in the conference call will be: R. David Yost, Chief Executive
Officer; Kurt J. Hilzinger, President & Chief Operating Officer;
and Michael D. DiCandilo, Senior Vice President & Chief Financial
Officer.
To access the live conference call via telephone:
Dial in: 877-777-1972 from inside the U.S. no access code
required or 612-332-7515 from outside the U.S. no access code
required.
To access the live webcast:
Go to the Quarterly Webcasts section on the Investor Relations
page at http://www.amerisourcebergen.net.
A replay of the telephone call and webcast will be available
from 4:15 p.m. November 5, 2002 until 11:59 p.m. November
12, 2002.
To access the replay via telephone:
Dial in: 800-475-6701 from within the U.S., access code:
654935 320-365-3844 from outside the U.S., access code: 654935
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations
page at http://www.amerisourcebergen.net.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems
and acute care market, alternate care facilities, independent
community pharmacies, and regional chain pharmacies. The Company
is also a leader in the institutional pharmacy marketplace.
With more than $40 billion in annualized operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 13,000 people serving over 25,000 customers.
Forward-Looking Statements
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on management's current expectations
and are subject to uncertainty and changes in circumstances.
Actual results may vary materially from the expectations contained
in the forward-looking statements. Forward-looking statements
may include statements addressing future financial and operating
results of AmerisourceBergen and the benefits and aspects
of the 2001 merger between AmeriSource Health Corporation
and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, its Quarterly Reports on Form 10-Q for fiscal 2002,
and the joint proxy statement-prospectus for the merger filed
on August 1, 2001.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward-looking
statements whether as a result of new information, future
events or otherwise.
Return
to headlines
Promotes
Kurt J. Hilzinger to President and Chief Operating Officer
VALLEY FORGE,
Pa., October 31, 2002-- AmerisourceBergen Corporation (NYSE:ABC)
today announced that its Board of Directors has elected Kurt
J. Hilzinger, 42, President and Chief Operating Officer of the
Company, effective immediately. Hilzinger previously was Executive
Vice President and Chief Operating Officer. He continues to
report directly to R. David Yost, AmerisourceBergen's Chief
Executive Officer and his duties and direct reports remain the
same. Prior to Hilzinger's election, Yost also held the title
of President.
"Kurt's election is a clear recognition of his critical
role in the Company and his significant contribution in building
AmerisourceBergen," said Yost, "Kurt and I have worked together
for more than a decade, and he is without question one of
the most capable, competent, and energetic executives in the
industry. His strong leadership will be invaluable as we continue
to build this industry leading Company."
"I am excited about continuing to help create value for
our shareholders, customers, suppliers and employees," said
Hilzinger. "AmerisourceBergen continues to have tremendous
potential. We are building the most efficient distribution
network in the industry; rolling out new programs and solutions
for our customers; bringing added services to our suppliers;
and developing the kind of Company where our associates can
achieve their career goals."
Hilzinger was named Executive Vice President and Chief Operating
Officer of AmerisourceBergen upon the merger of AmeriSource
Health Corporation and Bergen Brunswig Corporation in August
2001. Previously, he was President and Chief Operating Officer
of AmeriSource, which he joined in 1991. He held a number
of other key roles with AmeriSource, including Senior Vice
President and Chief Financial Officer.
Prior to joining AmeriSource, Hilzinger held several positions
at Citigroup. Earlier in his career, he was an associate with
the accounting firm of PricewaterhouseCoopers.
Hilzinger is a member of the Board of Directors of the Healthcare
Distribution Management Association (HDMA) and is a Certified
Public Accountant. He is a 1983 graduate of the University
of Michigan.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems
and acute care market, alternate care facilities, independent
community pharmacies, and regional chain pharmacies. The Company
is also a leader in the institutional pharmacy marketplace.
With more than $40 billion in annualized operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 13,000 people serving over 25,000 customers.
Return
to headlines
Approves
Quarterly Dividend
VALLEY FORGE,
Pa., October 30, 2002--The Board of Directors of AmerisourceBergen
Corporation (NYSE:ABC) today declared a cash dividend of $0.025
per share on Common Stock, payable December 2, 2002 to shareholders
of record at the close of business on November 18, 2002.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternative care facilities, independent community
pharmacies, and regional drugstore chains. The Company is
also a leader in the institutional pharmacy marketplace. With
approximately $40 billion in annualized operating revenues,
AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 13,000 people serving over 25,000 customers.
Forward-Looking Statements
This press release may contain certain "forward-looking
statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. These statements are based on management's current
expectations and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from the
expectations contained in the forward-looking statements.
The forward-looking statements herein include statements addressing
future financial and operating results of AmerisourceBergen
and the benefits and other aspects of the merger between AmeriSource
Health Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, its most recent Form 10-Q, and AmeriSource's and Bergen's
joint proxy statement-prospectus dated August 1, 2001.
AmerisourceBergen, AmeriSource and Bergen Brunswig are under
no obligation to (and expressly disclaim any such obligation
to) update or alter their forward-looking statements whether
as a result of new information, future events or otherwise.
Return
to headlines
Announces
Date and Time for Earnings Release, Conference Call and Webcast
VALLEY FORGE,
Pa., October 2, 2002-- AmerisourceBergen Corporation (NYSE:ABC)
today announced that it plans to release its Fourth Quarter
and Fiscal Year End 2002 results on Tuesday, November 5, 2002
prior to the opening of trading on the New York Stock Exchange.
The Company will host a conference call to discuss the results
at 11:00 am Eastern Daylight Savings Time on November 5, 2002.
Participating in the conference call will be:
R. David Yost, President & Chief Executive Officer Kurt J.
Hilzinger, Executive Vice President & Chief Operating Officer
Michael D. DiCandilo, Senior Vice President & Chief Financial
Officer
The dial-in numbers for the live call will be as follows:
877-777-1972 from within the United States. No access code
required. 612-332-7515 from outside the United States. No
access code required.
In order to ensure the widest distribution possible, the
Company will be broadcasting the conference call over the
Internet. The call will be accessible through AmerisourceBergen's
web site, www.amerisourcebergen.com, and also through Street
Events, www.streetevents.com. Users are encouraged to log
on to the webcast approximately 15 minutes in advance of the
scheduled start time of the call.
Following the live call, replays will be made available on
the Internet and via telephone. 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. To access the telephone replay from within
the US, dial 800-475-6701. From outside the US, dial 320-365-3844.
The access code is 654935. The telephone replay will be available
from 4:15 p.m. EST on 11/5/02 to 11:59 p.m. on 11/12/02.
About AmerisourceBergen Corporation
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternative care providers, independent community
pharmacies, and regional chains. The company is also a leader
in the institutional pharmacy marketplace. With approximately
$40 billion in annualized operating revenues, AmerisourceBergen
is headquartered in Valley Forge, PA, and employs more than
13,000 people serving over 25,000 customers.
Forward-Looking Statements
This press release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on management's current expectations
and are subject to uncertainty and changes in circumstances.
Actual results may vary materially from the expectations contained
in the forward-looking statements. The forward-looking statements
herein include statements addressing future financial and
operating results of AmerisourceBergen and the benefits and
other aspects of the merger between AmeriSource Health Corporation
and Bergen Brunswig Corporation.
The following factors, among others, could cause actual results
to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its June 30, 2002 Form 10-Q, its Annual
Report on Form 10-K for fiscal 2001, and AmeriSource's and
Bergen's joint proxy statement-prospectus dated August 1,
2001.
AmerisourceBergen, AmeriSource and Bergen Brunswig are under
no obligation to (and expressly disclaim any such obligation
to) update or alter their forward-looking statements whether
as a result of new information, future events or otherwise.
Return
to headlines
Reports
Earnings Per Share Up 48 Percent
VALLEY FORGE,
Pa., July 31, 2002-- AmerisourceBergen Corporation (NYSE:ABC)
today reported results for its fiscal third quarter and nine
months ended June 30, 2002. AmeriSource Health Corporation and
Bergen Brunswig Corporation merged on August 29, 2001 to form
AmerisourceBergen Corporation. Under purchase accounting rules,
AmerisourceBergen's fiscal 2002 third quarter and nine-month
results are compared with the fiscal 2001 third quarter and
nine-month results of AmeriSource only. Pro forma data included
in this discussion refers to the combined predecessor companies'
operating results in the previous year's third quarter and first
nine months, adjusted to eliminate amortization of goodwill.
Both former companies had the same fiscal year ending September
30.
Diluted earnings per share before special charges for the
third quarter of fiscal 2002 were $0.86, a 48 percent increase
over the previous year's third quarter. Income before special
charges for the third quarter of fiscal 2002 increased to
$95.1 million from $32.1 million in the same period last year.
Special charges, consisting of merger integration costs, were
$4.9 million, net of tax, in the quarter. Net income and diluted
earnings per share for the quarter were $90.2 million and
$0.82, respectively.
AmerisourceBergen's operating revenue, which excludes bulk
deliveries to customer warehouses, was $10.3 billion in the
third quarter of fiscal 2002 compared to $3.5 billion for
the same period last year. Fiscal 2002 third quarter operating
revenue increased 14 percent over fiscal 2001 third quarter
pro forma operating revenue of $9.0 billion.
For the first nine months of fiscal 2002, diluted earnings
per share before special charges were $2.41, a 46 percent
increase over the prior year. Special charges, consisting
of merger integration costs, were $12.3 million, net of tax,
in the first nine months of fiscal 2002. Operating revenue
for the nine-month period ended June 30, 2002 was $29.9 billion
compared to $10.3 billion in the prior year, and represents
a 17 percent increase over pro forma operating revenue of
$25.5 billion in the first nine months of fiscal 2001. Net
income and diluted earnings per share for the nine-month period
ended June 30, 2002 were $250.0 million and $2.30, respectively.
For the third quarter of fiscal 2002, interest expense,
including pretax distributions on preferred securities of
a subsidiary trust, was $33.3 million, reflecting disciplined
asset management and a favorable interest rate environment.
The following discussion of results, including segment data,
does not include the impact of the special charges in the
third quarter and first nine months of fiscal 2002.
"This was another exceptional performance by AmerisourceBergen,
demonstrating our continuing ability to leverage the cost
saving and scale synergies of our new company," said R. David
Yost, AmerisourceBergen President and Chief Executive Officer.
"We continued to capture synergy cost savings from the merger
earlier than expected, and new scale synergies are improving
contributions from pharmaceutical purchasing. Strong working
capital management and a historically low interest rate environment
also positively impacted the Company's performance. All these
factors drove excellent earnings per share growth, operating
margin expansion and a very strong return on committed capital
(ROCC) of 24.6 percent.
"During the quarter we announced and this month completed
the $120 million acquisition of AutoMed Technologies, Inc.
This acquisition, which is expected to be slightly accretive
to earnings, enhances our position in the pharmaceutical supply
chain by providing our retail and institutional customers
with a pharmacy automation solution that reduces the cost
of drug dispensing, improves dispensing accuracy and addresses
staffing pressures."
Segment Discussion
AmerisourceBergen operates in two segments: Pharmaceutical
Distribution (which includes the AmerisourceBergen Drug Company
and AmerisourceBergen Specialty Group operations) and PharMerica
(which includes the institutional pharmacy and workers' compensation
fulfillment businesses). Intersegment sales of $189.7 million
in the third quarter of fiscal 2002 from AmerisourceBergen
Drug Company to PharMerica, which are included in the Pharmaceutical
Distribution segment operating revenue, are eliminated for
consolidated reporting purposes.
Pharmaceutical Distribution Segment
Operating revenue in the third quarter of fiscal 2002 increased
to $10.1 billion compared with $3.5 billion in the previous
year's third quarter. Operating revenue increased 14 percent
over fiscal 2001 third quarter pro forma revenue of $8.8 billion.
Pharmaceutical Distribution customer mix in the third quarter
of fiscal 2002 was 52 percent institutional and 48 percent
retail. AmerisourceBergen is the market leader in pharmaceutical
distribution to hospital systems and acute care facilities,
alternate care facilities, independent community pharmacies,
and regional chain store pharmacies.
Operating income was $169.1 million in the third quarter
of fiscal 2002, up from $61.1 million for the same quarter
last year, and improved 14 percent compared to pro forma operating
income of $147.8 million in the same period last year. For
the fiscal 2002 third quarter, operating income, as a percentage
of operating revenue, was 1.68 percent, a slight improvement
from the prior year's third quarter on a pro forma basis.
Lower gross margins, which reflect the Company's customer
mix and the competitive environment, were more than offset
by lower total operating expenses as a percentage of operating
revenue.
Total operating expenses as a percentage of operating revenue
in the fiscal 2002 third quarter were 2.15 percent, a 24 basis
point improvement over the same quarter last year on a pro
forma basis driven by synergy cost savings, customer mix and
operating leverage.
AmerisourceBergen Specialty Group, with annualized revenue
well over $2.5 billion, had another very strong quarter, building
significant positions in oncology, blood plasma and vaccine
distribution as well as growing its manufacturing services
businesses.
"The momentum from our integration activities continues
to build. Distribution center consolidations are on schedule
and going smoothly. Last week we successfully completed the
consolidation of our Portland, Oregon distribution center
into our Seattle facility. Three additional distribution centers
are scheduled for consolidation by the end of September, bringing
the total number of consolidations in the fiscal year to seven,
in line with the goal we set at the beginning of the year,"
said Kurt J. Hilzinger, AmerisourceBergen Executive Vice President
and Chief Operating Officer. "We also continue to leverage
our larger scale as our new generic pharmaceutical program
gained traction in the marketplace and our common employee
benefits plan was rolled out July 1, 2002. Our recently combined
sales force hosted the highly successful first annual AmerisourceBergen
Healthcare Conference for customers, establishing the largest
such event in the industry with over 6,000 people in attendance."
PharMerica
PharMerica's operating revenue for the third quarter of
fiscal 2002 was $373.8 million, representing an 11 percent
increase over pro forma operating revenue of $336.8 million
in the same period last year.
Operating income for the third quarter of fiscal 2002 was
$21.8 million, a 28 percent increase over the prior year's
pro forma third quarter operating income of $17.0 million.
Operating income as a percentage of operating revenue increased
79 basis points in the quarter ended June 30, 2002 to 5.82
percent from 5.03 percent on a pro forma basis in the prior
year.
"Double-digit revenue growth reflected continued strong
performance by PharMerica's workers compensation business,
as well as improved growth in the long-term care business,"
said Hilzinger. "Cost savings from expense control, driven
by the favorable effect of a single information technology
platform and continued accounts receivables discipline, as
well as the positive impact of the new generic drug program,
enhanced PharMerica's performance in the quarter."
Looking Ahead
"We expect continued strong performance for AmerisourceBergen
for the fiscal 2002 fourth quarter with diluted earnings per
share excluding special charges in the range of $0.83 to $0.85,
ROCC in excess of our 20 percent target, and revenue growth
consistent with the third quarter fiscal 2002 performance,"
said Yost. "We are increasing our diluted earnings per share
estimate for fiscal year 2002, excluding the impact of merger-related
special charges, from $3.15 to a range of $3.24 to $3.26,
the third estimate increase this fiscal year. The increase
in earnings expectations for the year reflects the solid performance
of our businesses in the third quarter, early capture of cost
saving synergies, and continued low interest rates. We remain
confident in our ability to achieve annual cost saving synergies
of $150 million by the end of fiscal year 2004."
Also, in response to the recent order of the Security and
Exchange Commission seeking sworn statements from the principal
executive officers and principal financial officers of large
public companies, Yost and Senior Vice President and Chief
Financial Officer Michael D. DiCandilo each will file certifications
by the August 14, 2002 deadline affirming that AmerisourceBergen's
10-K Report for fiscal 2001, 10-Q Reports for fiscal 2002,
and 2002 Annual Meeting proxy statement were materially complete
and truthful."
Conference Call
The Company will host a conference call to discuss the results
at 11:00 a.m. Eastern Daylight Time on July 31, 2002. Participating
in the conference call will be: R. David Yost, President &
Chief Executive Officer; Kurt J. Hilzinger, Executive Vice
President & Chief Operating Officer; and Michael D. DiCandilo,
Senior Vice President & Chief Financial Officer.
To access the live conference call via telephone:
Dial in:
800-553-5260 from inside the U.S. no access code required
or 612-332-1210 from outside the U.S. no access code required.
To access the live webcast:
Go to the Quarterly Webcasts section on the Investor Relations
page at http://www.amerisourcebergen.net.
A replay of the telephone call and webcast will be available
from 4:15 p.m. July 31, 2002 until 11:59 p.m. August 7, 2002.
To access the replay via telephone:
Dial in:
800-475-6701 from within the U.S., access code: 643950 320-365-3844
from outside the U.S., access code: 643950
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations
page at http://www.amerisourcebergen.net.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems
and acute care market, alternate care facilities, independent
community pharmacies, and regional chain pharmacies. The Company
is also a leader in the institutional pharmacy marketplace.
With more than $40 billion in annualized operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 13,000 people serving over 25,000 customers.
Forward-Looking Statements
This press release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on management's current expectations
and are subject to uncertainty and changes in circumstances.
Actual results may vary materially from the expectations contained
in the forward-looking statements. The forward-looking statements
herein include statements addressing future financial and
operating results of AmerisourceBergen and the benefits and
other aspects of the merger between Amerisource Health Corporation
and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, its Quarterly Reports on Form 10-Q for the first and
second quarters of fiscal 2002, and the joint proxy statement-prospectus
for the merger as filed on August 1, 2001.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward-looking
statements whether as a result of new information, future
events or otherwise.
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Appoints
New Treasurer and Controller
VALLEY FORGE,
Pa., July 30, 2002-- AmerisourceBergen Corporation (NYSE:ABC)
today announced that J.F. "Jack" Quinn, 46, has been appointed
Vice President and Corporate Treasurer, and Tim G. Guttman,
43, has been named Vice President and Corporate Controller.
Both will be officers of the Company and will report to
Michael D. DiCandilo, AmerisourceBergen's Senior Vice President
and Chief Financial Officer. Guttman's appointment is effective
August 1, 2002 and Quinn will join the Company on August 5,
2002.
Quinn, currently Treasurer at IKON Office Solutions, succeeds
Michael A. Montevideo, who is leaving AmerisourceBergen having
decided not to relocate from California to the Company's headquarters
in Valley Forge, Pennsylvania. Guttman, currently Vice President,
Finance at Syncor International Corporation, succeeds DiCandilo,
who was promoted to his current position in March.
"I am very pleased we were able to attract two experienced
financial executives, each with a solid background in distribution,
for these key management roles," said DiCandilo. "Jack brings
extensive experience in long-term financing, capital market
activities and cash management, and Tim's broad accounting
and finance background combines operational experience with
in-depth external reporting."
Prior to joining IKON in 1994, Quinn served in several treasury
management positions at both ARCO Chemical Company and Columbia
Gas System Service Corporation. He also spent four years with
the accounting firm of Peat, Marwick, Mitchell & Company.
A Certified Public Accountant and Certified Cash Manager,
Quinn graduated from Villanova University and earned his Master
of Science degree in Finance from Drexel University. He also
serves as an Adjunct Professor of Finance in Drexel's MBA
program.
Guttman joined Syncor in 1998 as Corporate Controller and
was subsequently promoted to his current position. Prior to
Syncor, he held senior finance and accounting positions at
Disney Consumer Products from 1995 to 1998. Previously, Guttman
served in financial planning and financial services managerial
positions at Pizza Hut, Inc. and PepsiCo, Inc.
He also spent seven years with the accounting firm of Deloitte
& Touche. A Certified Public Accountant, Guttman graduated
from The Ohio State University and earned his Master of Business
Administration degree from The University of Texas.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternative care facilities, independent community
pharmacies, and regional drugstore chains.
The Company is also a leader in the institutional pharmacy
marketplace.
With approximately $39 billion in annualized operating revenues,
AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 13,000 people serving over 25,000 customers.
Forward-Looking Statements
This press release may contain certain "forward-looking
statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. These statements are based on management's current
expectations and are subject to uncertainty and changes in
circumstances.
Actual results may vary materially from the expectations
contained in the forward-looking statements. The forward-looking
statements herein include statements addressing future financial
and operating results of AmerisourceBergen and the benefits
and other aspects of the merger between AmeriSource Health
Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, Form 10-Q for the first and second quarters of fiscal
2002, and AmeriSource's and Bergen's joint proxy statement-prospectus
dated August 1, 2001.
AmerisourceBergen, AmeriSource and Bergen Brunswig are under
no obligation to (and expressly disclaim any such obligation
to) update or alter their forward-looking statements whether
as a result of new information, future events or otherwise.
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Approves
Quarterly Dividend
VALLEY FORGE,
Pa., July 24, 2002--The Board of Directors of AmerisourceBergen
Corporation (NYSE:ABC) today declared a cash dividend of $0.025
per share on Common Stock, payable September 3, 2002 to shareholders
of record at the close of business on August 19, 2002.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternative care facilities, independent community
pharmacies, and regional drugstore chains.
The Company is also a leader in the institutional pharmacy
marketplace. With approximately $39 billion in annualized
operating revenues, AmerisourceBergen is headquartered in
Valley Forge, PA, and employs more than 13,000 people serving
over 25,000 customers.
Forward-Looking Statements
This press release may contain certain "forward-looking
statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. These statements are based on management's current
expectations and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from the
expectations contained in the forward-looking statements.
The forward-looking statements herein include statements addressing
future financial and operating results of AmerisourceBergen
and the benefits and other aspects of the merger between AmeriSource
Health Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, Form 10-Q for the first and second quarters of fiscal
2002, and AmeriSource's and Bergen's joint proxy statement-prospectus
dated August 1, 2001.
AmerisourceBergen, AmeriSource and Bergen Brunswig are under
no obligation to (and expressly disclaim any such obligation
to) update or alter their forward-looking statements whether
as a result of new information, future events or otherwise.
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Completes
Purchase of AutoMed Technologies, Inc.
VALLEY FORGE,
Pa., July 17, 2002-- AmerisourceBergen Corporation (NYSE:ABC),
the largest pharmaceutical services company in the U.S. dedicated
solely to the pharmaceutical supply chain, today announced the
completion of its purchase of AutoMed Technologies, Inc., a
leading provider of automated pharmacy dispensing equipment,
for approximately $120 million in cash. The transaction also
includes incentive payments based on AutoMed achieving earnings
targets over the next two-and-a-half years. AutoMed, which is
headquartered in the Chicago area and privately held, anticipates
revenues of over $60 million in calendar year 2002. AmerisourceBergen
expects the purchase to be slightly accretive immediately.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to
the pharmaceutical supply chain. It is the leading distributor
of pharmaceutical products and services to the hospital systems/acute
care market, alternate care and mail order facilities, independent
community pharmacies, and regional chain pharmacies. The Company
is also a leader in the institutional pharmacy marketplace.
With more than $39 billion in annualized operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 13,000 people serving over 25,000 customers.
About AutoMed
Established in 1994, AutoMed Technologies, Inc. is a privately
held corporation supporting pharmacy operations worldwide
with the most advanced pharmacy automation prescription fulfillment
and distribution systems designed to significantly increase
the efficiency of any pharmacy. AutoMed is the only company
serving every segment of the pharmacy market, including retail
drug stores, hospitals, long-term care facilities, mail order
and e-commerce. Forward-Looking Statements
This press release may contain certain "forward-looking
statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. These statements are based on management's current
expectations and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from the
expectations contained in the forward-looking statements.
The forward-looking statements herein include statements addressing
future financial and operating results of AmerisourceBergen
and the benefits and other aspects of the merger between Amerisource
Health Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual
results to differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and
Bergen Brunswig will not be integrated successfully; failure
to obtain and retain expected synergies; and other economic,
business, competitive and/or regulatory factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth
in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal
2001, Form 10-Q for the first and second quarters of fiscal
2002, and AmeriSource's and Bergen's joint proxy statement-prospectus
dated August 1, 2001.
AmerisourceBergen, AmeriSource and Bergen Brunswig are under
no obligation to (and expressly disclaim any such obligation
to) update or alter their forward-looking statements whether
as a result of new information, future events or otherwise.
(c) Copyright 2002 AmerisourceBergen Corporation.
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