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AmerisourceBergen
Corporation (ABC:NYSE):
Approves
Quarterly Dividend
VALLEY
FORGE, Pa., July 30, 2003 -- The Board of Directors of AmerisourceBergen
Corporation (ABC) today declared a cash dividend of $0.025
per share on Common Stock, payable September 2, 2003 to shareholders
of record at the close of business on August 18, 2003.
About
AmerisourceBergen
AmerisourceBergen
(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 market, physician's offices,
alternate care and mail order facilities, and independent
and chain pharmacies. The Company is also a leader in the
long term care pharmacy marketplace, the workers' compensation
fulfillment business and contract packaging for manufacturers.
With more than $45 billion in annualized operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 14,000 people. AmerisourceBergen is ranked
#24 on the Fortune 500 list and was ranked #6 in the 2003
Business Week 50, a list of the 50 best performing companies
in the S & P 500.
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 other 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 any forward-looking statements:
competitive pressures; the loss of one or more key customer
relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and
distribution policies; regulatory changes; changes in U.S.
government policies; failure to integrate the businesses of
AmeriSource and Bergen Brunswig successfully; failure to obtain
and retain expected synergies from the merger of AmeriSource
and Bergen Brunswig; and other economic, business, competitive,
regulatory and/or operational 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 2002.
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 Operating Revenue and Diluted Earnings Per Share
for the June Quarter
VALLEY
FORGE, Pa., July 24, 2003--AmerisourceBergen Corporation (NYSE:ABC)
today reported record results for its fiscal third quarter
ended June 30, 2003. The following results are presented in
accordance with generally accepted accounting principles (GAAP).
Fiscal
Third Quarter Highlights
-- Record diluted earnings per share of $0.99, including special
charges of $0.04, up 21 percent.
-- Record net income of $112.5 million, up 25 percent.
-- Record operating revenue of $11.5 billion, up 12 percent.
-- Return On Committed Capital (ROCC) of 25.1 percent.
Fiscal First Nine Months Highlights
-- Record diluted earnings per share of $2.85, including special
charges of $0.06, up 24 percent.
-- Record operating revenue of $33.8 billion, up 13 percent.
"AmerisourceBergen
again delivered exceptional performance," said R. David Yost,
AmerisourceBergen's Chief Executive Officer. "We had solid
results across all of our businesses. Strong operating revenue
combined with a good contribution from our recent acquisitions
and record operating expense efficiency drove significant
operating margin expansion. This performance resulted in a
great return on committed capital and excellent earnings per
share."
Discussion
of Results
Diluted
earnings per share for the third quarter of fiscal 2003 were
$0.99, a 21 percent increase over the $0.82 in the prior year's
third quarter. Included in these results were special charges,
net of tax, in the third quarter of fiscal 2003 of $2.4 million
for facility consolidations and employee severance and $2.6
million related to the early retirement of debt, as well as
a $4.9 million special charge, net of tax, in the same period
of the previous fiscal year for merger integration activities.
The earnings per share impact of the special charges was a
decrease of $0.04 in the third quarter of fiscal 2003 and
a decrease of $0.04 in the third quarter of fiscal 2002.
AmerisourceBergen's
operating revenue, which excludes bulk deliveries to customer
warehouses, rose 12 percent to $11.5 billion in the third
quarter of fiscal 2003 compared to $10.3 billion for the same
period last year. Bulk deliveries in the quarter decreased
to $0.9 billion from $1.3 billion in the prior fiscal year's
third quarter, as the Company successfully converted bulk
business into operating revenue.
For
the first nine months of fiscal 2003, diluted earnings per
share were $2.85, a 24 percent increase over the $2.30 in
the same nine-month period last year. Special charges related
to facility consolidations and employee severance and the
retirement of debt in the first nine months of fiscal 2003
and merger costs in the first nine months of fiscal 2002 resulted
in a net decrease in earnings per share of $0.06 and $0.11,
respectively.
Operating
revenue in the first nine months of fiscal 2003 increased
13 percent to $33.8 billion from $29.9 billion in the same
period of the previous fiscal year. Bulk deliveries to customer
warehouses were down reflecting the impact of the conversion
of bulk business to operating revenue in fiscal 2003.
"Our
superior operating performance in the quarter was driven primarily
by continued strong merger integration cost savings, excellent
growth in our specialty pharmaceuticals business, and contributions
from recent acquisitions," said Kurt J. Hilzinger, AmerisourceBergen's
President and Chief Operating Officer.
"We
continue to capture integration cost savings significantly
ahead of schedule, and the creation of our new pharmaceutical
distribution network remains on time and on budget," he continued.
"During the quarter we broke ground on our third new distribution
center located near Dallas, Texas, and consolidated our eleventh
distribution center. We are on schedule to consolidate two
more distribution centers by the end of the fiscal year."
"In
our PharMerica segment, continued focus on cost controls and
operating practices drove operating margins to nearly 7 percent,"
said Hilzinger. "Operating revenue grew 7 percent, reflecting
a moderation in the historically rapid growth rate of the
workers' compensation fulfillment business."
Segment
Review
AmerisourceBergen
operates in two segments: Pharmaceutical Distribution (which
includes the AmerisourceBergen Drug Company and AmerisourceBergen
Specialty Group) and PharMerica (which includes the long term
care pharmacy and workers' compensation fulfillment businesses).
Intersegment operating revenue of $203.2 million in the third
quarter of fiscal 2003 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 2003 increased to $11.3
billion compared with $10.1 billion in the third quarter of
fiscal year 2002, a 12 percent increase.
Pharmaceutical
Distribution customer mix in the third quarter of fiscal 2003
was 57 percent institutional and 43 percent retail. Operating
revenue from institutional customers, which include mail order
facilities, hospitals and specialty pharmaceutical customers,
continued to grow significantly faster than operating revenue
from retail customers.
Gross
profit as a percentage of operating revenue in the third quarter
of fiscal 2003 was 3.82 percent, essentially flat compared
to the same period in the prior fiscal year. Gross margins
were positively impacted by recent acquisitions, which offset
the negative impacts of customer mix and the competitive environment.
Total
operating expenses as a percentage of operating revenue in
the third quarter of fiscal 2003 were a record low 2.01 percent,
a 14 basis point improvement over the same quarter last year,
driven by customer mix, merger integration cost savings and
operating efficiencies, offset in part by higher expense ratios
within recent acquisitions.
Operating
income as a percentage of operating revenue in the third quarter
of fiscal 2003 expanded 13 basis points to 1.81 percent compared
to the third quarter of fiscal 2002.
AmerisourceBergen
Specialty Group, with annualized revenue of more than $3.5
billion, continued its strong performance, building leadership
positions in the distribution of products and services to
physicians in oncology and other disease states, as well as
growing its manufacturer services businesses.
PharMerica
PharMerica's
operating revenue for the third quarter of fiscal 2003 increased
7 percent to $399.9 million from $373.8 million in the previous
year's third quarter.
Gross
profit as a percentage of operating revenue was 32.3 percent
in the third quarter of fiscal 2003, an 84 basis point decline
over the same period in the prior fiscal year due primarily
to the comparatively faster growth in the lower-margin workers'
compensation business. The decline in gross margin was more
than offset by a 185 basis point improvement in total operating
expenses as a percentage of operating revenue due mainly to
cost control and improved operating practices. Operating income
as a percentage of operating revenue expanded 101 basis points
in the quarter ended June 30, 2003 to a record 6.83 percent
from 5.82 percent in the same period of the prior year.
Looking
Ahead
"For
the fiscal year ending September 30, 2003, we continue to
expect to grow operating revenue approximately 13 percent,
and earnings per share 20 percent, excluding the impact of
special charges which included the cost of retiring the PharMerica
bonds in the third quarter," said Yost. "ROCC for fiscal year
2003 is expected to remain well above our 20 percent long-term
target. We are confident in our ability to achieve annual
merger integration cost savings of approximately $150 million
well ahead of the end of fiscal year 2004, followed by additional
cost savings as we complete the build-out of our distribution
network over the next three to four years."
Conference
Call
The
Company will host a conference call to discuss the results
at 11:00 a.m. Eastern Daylight Time on July 24, 2003. Participating
in the conference call will be: R. David Yost, Chief Executive
Officer; Kurt J. Hilzinger, President and Chief Operating
Officer; and Michael D. DiCandilo, Senior Vice President and
Chief Financial Officer.
To
access the live conference call via telephone:
Dial
in: 888-276-0009 from inside the U.S., no access code required
or 651-291-0618 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.com.
A
replay of the telephone call and webcast will be available
from 4:15 p.m. July 24, 2003 until 11:59 p.m. July 31, 2003.
To
access the replay via telephone:
Dial in: 800-475-6701 from within the U.S., access code: 689743
320-365-3844 from outside the U.S., access code: 689743
To access the archived webcast:
Go
to the Quarterly Webcasts section on the Investor Relations
page at http://www.amerisourcebergen.com.
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 market, physician's
offices, alternate care and mail order facilities, and independent
and chain pharmacies. The Company is also a leader in the
long term care pharmacy marketplace, the workers' compensation
fulfillment business and contract packaging for manufacturers.
With more than $45 billion in annualized operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 14,000 people. AmerisourceBergen is ranked
#24 on the Fortune 500 list and was ranked #6 in the 2003
Business Week 50, a list of the 50 best performing companies
in the S & P 500.
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 other 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 any forward-looking
statements: competitive pressures; the loss of one or more
key customer relationships; customer insolvencies; changes
in customer mix; changes in pharmaceutical manufacturers'
pricing and distribution policies; regulatory changes; changes
in U.S. government policies; failure to integrate the businesses
of AmeriSource and Bergen Brunswig successfully; failure to
obtain and retain expected synergies from the merger of AmeriSource
and Bergen Brunswig; and other economic, business, competitive,
regulatory and/or operational 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 2002.
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 Date and Time for Earnings Release,
Conference Call and Webcast
VALLEY FORGE,
Pa., July 2, 2003 -- AmerisourceBergen Corporation (NYSE:ABC)
today announced that it plans to release its Third Quarter Fiscal
Year 2003 results on Thursday, July 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
Daylight Time on July 24, 2003.
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) 276-0009 from within the United States.
No access code required.
(651) 291-0618 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 the Investor Relations page of
AmerisourceBergen's web site, www.amerisourcebergen.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 689743. The telephone
replay will be available from 2:45 p.m. EDT on July 24, 2003 to 11:59
p.m. on July 31, 2003.
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, physician's offices, alternate care and mail order
facilities, independent community pharmacies, and regional chain
pharmacies. The Company is also a leader in the long term care
pharmacy and workers' compensation fulfillment marketplaces. With more
than $40 billion in annualized operating revenue, AmerisourceBergen is
headquartered in Valley Forge, PA, and employs more than 13,000
people. AmerisourceBergen is ranked #24 on the Fortune 500 list and
was ranked #6 in the 2003 Business Week 50, a list of the 50 best
performing companies in the S & P 500. For more information, go to
www.amerisourcebergen.com.
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 other 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 any forward-looking
statements: competitive pressures; the loss of one or more key
customer relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies; regulatory changes; changes in U.S. government policies;
failure to integrate the businesses of AmeriSource and Bergen Brunswig
successfully; failure to obtain and retain expected synergies from the
merger of AmeriSource and Bergen Brunswig; and other economic,
business, competitive, regulatory and/or operational 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 2002.
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
Completes Acquisition of Anderson Packaging, Inc.
VALLEY FORGE,
Pa., June 24, 2003 --
AmerisourceBergen Corporation (NYSE:ABC), the largest
pharmaceutical services company in the U.S. dedicated solely to the
pharmaceutical supply channel, today completed the acquisition of
Anderson Packaging, Inc., a privately held contract pharmaceutical
packaging company, for approximately $102.5 million, including assumed
debt of approximately $18 million.
AmerisourceBergen issued 814,145 shares of its common stock to the
shareholders of Anderson Packaging, Inc. upon the closing of the
transaction today in partial payment of the purchase price, with the
balance being paid in cash. The shares of AmerisourceBergen common
stock issued upon closing have been registered under the Securities
Act of 1933 for sale by the recipients of the shares and, therefore,
are eligible for sale immediately without restriction.
Known for its high quality, Anderson Packaging is one of the
leading contract pharmaceutical packaging companies providing
physician samples and retail contract packaging services to
pharmaceutical manufacturers. Based in Rockford, Illinois, Anderson
has seven facilities in the U.S. and approximately 1,000 employees.
AmerisourceBergen expects Anderson Packaging's revenues in
calendar year 2003 to be between $85 million and $90 million.
AmerisourceBergen expects the purchase to be mildly accretive to the
Company's fiscal year 2004 earnings.
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, physician's offices, alternate care and mail order
facilities, independent community pharmacies, and regional chain
pharmacies. The Company is also a leader in the long term care
pharmacy and workers' compensation fulfillment marketplaces. With more
than $40 billion in annualized operating revenue, AmerisourceBergen is
headquartered in Valley Forge, PA, and employs more than 13,000
people. AmerisourceBergen is ranked #24 on the Fortune 500 list and
was ranked #6 in the 2003 Business Week 50, a list of the 50 best
performing companies in the S & P 500.
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 other 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 any forward-looking
statements: competitive pressures; the loss of one or more key
customer relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies; regulatory changes; changes in U.S. government policies;
failure to integrate the businesses of AmeriSource and Bergen Brunswig
successfully; failure to obtain and retain expected synergies from the
merger of AmeriSource and Bergen Brunswig; and other economic,
business, competitive, regulatory and/or operational 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 2002.
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 Anderson Packaging, Inc.
VALLEY FORGE, Pa., May 22, 2003--
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 Anderson Packaging, Inc., a privately held
contract pharmaceutical packaging company, for approximately $100
million, including assumed debt.
The purchase price will be subject to certain adjustments to be
determined as of the closing of the transaction. The transaction is
expected to close in early summer, subject to regulatory approvals.
Known for its high quality, Anderson Packaging is a leading
provider of physician samples and retail contracted packaging services
to pharmaceutical manufacturers. Anderson Packaging estimates revenues
in calendar year 2003 of between $85 million and $90 million.
AmerisourceBergen expects the purchase to be mildly accretive to the
Company's fiscal year 2004 earnings.
AmerisourceBergen has agreed to issue 814,145 shares of its common
stock upon the closing of the transaction in partial payment of the
purchase price. The remainder of the purchase will be funded using
cash.
"We could not be more excited about the contribution that Anderson
Packaging will make to the ongoing expansion of the services
AmerisourceBergen offers manufacturers," said R. David Yost,
AmerisourceBergen's Chief Executive Officer. "Anderson Packaging
brings a strong reputation for the highest quality standards in
contract packaging and will be a significant addition to
AmerisourceBergen's total packaging capability, which also includes
our American Health Packaging unit."
"Joining AmerisourceBergen will provide Anderson Packaging the
resources and relationships to continue to expand its position in the
contract packaging marketplace," said John Anderson, Chairman and
founder. "I am pleased that Anderson Packaging will be joining a
company that is committed to the quality and performance excellence
that has always been a part of the Anderson culture. Being part of the
AmerisourceBergen team will benefit our employees and the community as
the Company continues to grow."
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.
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.
William Blair & Company, L.L.C. acted as financial advisor to
Anderson Packaging in this transaction.
About Anderson Packaging
Anderson Packaging is one of the leading contract pharmaceutical
packaging companies providing physician samples and retail contract
packaging services to pharmaceutical manufacturers. Headquartered in
Rockford, Illinois, Anderson has seven facilities in the U.S. and
approximately 1,000 employees.
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, physician's
offices, alternate care and mail order facilities, independent
community pharmacies, and regional chain pharmacies. The Company is
also a leader in the long term care pharmacy and workers' compensation
fulfillment marketplaces.
With more than $40 billion in annualized operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and employs
more than 13,000 people. AmerisourceBergen is ranked #24 on the
Fortune 500 list and was ranked #6 in the 2003 Business Week 50, a
list of the 50 best performing companies in the S & P 500.
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 other 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 any forward-looking
statements: competitive pressures; the loss of one or more key
customer relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies; regulatory changes; changes in U.S. government policies;
failure to integrate the businesses of AmeriSource and Bergen Brunswig
successfully; failure to obtain and retain expected synergies from the
merger of AmeriSource and Bergen Brunswig; and other economic,
business, competitive, regulatory and/or operational 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 2002.
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 Operating Revenue and Diluted Earnings Per Share for the March Quarter
VALLEY FORGE,
Pa--April 24, 2003--AmerisourceBergen Corporation (NYSE:ABC)
today reported record results for its fiscal second quarter
ended March 31, 2003.
The following results are presented in accordance with generally
accepted accounting principles (GAAP).
Fiscal Second Quarter Highlights
- Record diluted earnings per share of $1.03, including special
charges of $0.02, up 23 percent.
- Record net income of $116.4 million, up 27 percent.
- Record operating revenue of $11.2 billion, up 13 percent.
- Return On Committed Capital (ROCC) of 26.2 percent.
Fiscal First Six Months Highlights
- Record diluted earnings per share of $1.87, including special
charges of $0.01, up 26 percent.
- Record net income of $209.2 million, up 31 percent.
- Record operating revenue of $22.3 billion, up 14 percent.
"AmerisourceBergen again delivered outstanding performance," said
R. David Yost, AmerisourceBergen's Chief Executive Officer. "We had
excellent results across all of our businesses. Strong operating
revenues in combination with operating expense efficiency drove
significant operating margin expansion. This performance combined with
solid working capital management resulted in improved return on
committed capital and excellent earnings per share."
Discussion of Results
Diluted earnings per share for the second quarter of fiscal 2003
were $1.03, a 23 percent increase over the $0.84 in the prior year's
second quarter. Included in these results were special charges of $2.4
million, net of tax, in the second quarter of fiscal 2003 for facility
consolidations and employee severance and a $2.9 million charge, net
of tax, in the same period of the previous fiscal year for merger
integration activities. The earnings per share impact of the special
charges was a decrease of $0.02 in the second quarter of fiscal 2003
and a decrease of $0.03 in the second quarter of fiscal 2002.
Also in the second quarter of fiscal 2003, the Company wrote down
$5.5 million of its equity investment in a technology company, which
is included in the "equity in losses of affiliates and other" line in
the income statement.
AmerisourceBergen's operating revenue, which excludes bulk
deliveries to customer warehouses, rose 13 percent to $11.2 billion in
the second quarter of fiscal 2003 compared to $9.9 billion for the
same period last year.
For the first six months of fiscal 2003, diluted earnings per
share were $1.87, a 26 percent increase over the $1.48 in the same
six-month period last year. Special items related to facility
consolidations and employee severance in the first half of fiscal 2003
and merger costs in the first six months of fiscal 2002 resulted in a
net decrease in earnings per share of $0.01 and $0.06, respectively.
Operating revenue in the first six months of fiscal 2003 increased
14 percent to $22.3 billion from $19.6 billion in the same period of
the previous fiscal year.
"Our excellent operating performance in the quarter was driven
primarily by continued strong merger integration cost savings,
excellent growth in our specialty pharmaceuticals business, and
contributions from recent acquisitions," said Kurt J. Hilzinger,
AmerisourceBergen's President and Chief Operating Officer.
"Throughout the period, the building of our new pharmaceutical
distribution network continued on time and on budget," he continued.
"We consolidated two distribution centers, one in Lynchburg, Virginia,
and one in Joplin, Missouri, into other facilities and remain on track
to consolidate three more facilities before the end of this fiscal
year. We have now consolidated ten distribution centers."
"In our PharMerica segment, strong, disciplined operating revenue
growth of 10 percent reflects improved growth in both our long term
care pharmacy and workers' compensation fulfillment businesses," said
Hilzinger. "Continued focus on improved operating practices and
customer mix drove operating expenses down and expanded operating
margins in the quarter to record levels."
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 long term care pharmacy and workers' compensation
fulfillment businesses). Intersegment sales of $192.8 million in the
second quarter of fiscal 2003 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 second quarter of fiscal 2003 increased
to $11.0 billion compared with $9.8 billion in the second quarter of
fiscal year 2002, a 13 percent increase.
Pharmaceutical Distribution customer mix in the second quarter of
fiscal 2003 was 55 percent institutional and 45 percent retail.
Institutional customers, which include mail order facilities,
hospitals and specialty pharmaceutical customers, continued to grow
faster than retail customers.
Gross profit as a percentage of operating revenue was 4.11 percent
in the second quarter of fiscal 2003, a 7 basis point improvement over
the same period in the prior fiscal year. Higher gross margins were
positively impacted by recent acquisitions, which offset the impacts
of customer mix and the competitive environment.
Total operating expenses as a percentage of operating revenue in
the second quarter of fiscal 2003 were 2.15 percent, an 8 basis point
improvement over the same quarter last year, driven by merger
integration cost savings, customer mix, and operating efficiencies,
offset in part by higher expense ratios within recent acquisitions.
Operating income as a percentage of operating revenue in the
second quarter of fiscal 2003 expanded 17 basis points to 1.97 percent
compared to the second quarter of fiscal 2002.
AmerisourceBergen Specialty Group, with annualized revenue of more
than $3 billion, continued its strong quarterly performance, building
significant positions in oncology, blood plasma, and injectables
distribution primarily to physicians, as well as growing its
manufacturing services businesses.
PharMerica
PharMerica's operating revenue for the second quarter of fiscal
2003 increased 10 percent to $397.1 million from $359.8 million in the
previous year's second quarter.
Gross profit as a percentage of operating revenue was 32.35
percent in the second quarter of fiscal 2003, a 117 basis point
decline over the same period in the prior fiscal year due primarily to
the more rapid growth of the lower gross margin workers' compensation
business. The decline in gross margin was more than offset by a 181
basis point improvement in total operating expenses as a percentage of
operating revenue due primarily to improved operating practices and
the change in customer mix. Operating income as a percentage of
operating revenue expanded 64 basis points in the quarter ended March
31, 2003 to 6.07 percent from 5.43 percent in the same period of the
prior year.
Looking Ahead
"For the fiscal year ending September 30, 2003, we continue to
expect to grow operating revenue approximately 13 percent, with the
second half of the fiscal year growing between 11 percent and 12
percent. We continue to expect earnings per share growth of 20 percent
for the remainder of fiscal year 2003, excluding the impact of special
items and the cost of exercising the call option on the PharMerica
bonds in April 2003," said Yost. "ROCC is expected to remain well
above our 20 percent long-term target, and we continue to be confident
in our ability to achieve annual merger integration cost savings of
approximately $150 million by the end of fiscal year 2004, followed by
additional cost savings as we complete the build out of our
distribution network."
Conference Call
The Company will host a conference call to discuss the results at
11:00 a.m. Eastern Daylight Time on April 24, 2003. Participating in
the conference call will be: R. David Yost, Chief Executive Officer;
Kurt J. Hilzinger, President and Chief Operating Officer; and Michael
D. DiCandilo, Senior Vice President and Chief Financial Officer.
To access the live conference call via telephone:
Dial in: (866) 269-9612 from inside the U.S., no access code required
or (612) 332-0802 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.com
.
A replay of the telephone call and webcast will be available from
4:15 p.m. April 24, 2003 until 11:59 p.m. May 1, 2003.
To access the replay via telephone:
Dial in: (800) 475-6701 from within the U.S., access code: 673719
(320) 365-3844 from outside the U.S., access code: 673719
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com
.
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, physician's offices, alternate care and mail order
facilities, independent community pharmacies, and regional chain
pharmacies. The Company is also a leader in the long term care
pharmacy and workers' compensation fulfillment marketplaces. With more
than $40 billion in annualized operating revenue, AmerisourceBergen is
headquartered in Valley Forge, PA, and employs more than 13,000
people. AmerisourceBergen is ranked #24 on the Fortune 500 list and
was ranked #6 in the 2003 Business Week 50, a list of the 50 best
performing companies in the S & P 500.
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 other 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 any forward-looking
statements: competitive pressures; the loss of one or more key
customer relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies; regulatory changes; changes in U.S. government policies;
failure to integrate the businesses of AmeriSource and Bergen Brunswig
successfully; failure to obtain and retain expected synergies from the
merger of AmeriSource and Bergen Brunswig; and other economic,
business, competitive, regulatory and/or operational 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 2002.
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
Approves Quarterly Dividend
VALLEY FORGE, Pa., April 23, 2003--The Board of
Directors of AmerisourceBergen Corporation (NYSE:ABC) today declared a
cash dividend of $0.025 per share on Common Stock, payable June 2,
2003 to shareholders of record at the close of business on May 19,
2003.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to the
pharmaceutical supply chain. It is a leading distributor of
pharmaceutical products and services to the hospital systems/acute
care market, alternate care and mail order facilities, physicians,
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.
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 other 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 any forward-looking
statements: competitive pressures; the loss of one or more key
customer relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies; regulatory changes; changes in U.S. government policies;
failure to integrate the businesses of AmeriSource and Bergen Brunswig
successfully; failure to obtain and retain expected synergies from the
merger of AmeriSource and Bergen Brunswig; and other economic,
business, competitive, regulatory and/or operational 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 2002.
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
Reaffirms
Revenue and Earnings Per Share
Guidance for the Remainder of Fiscal Year 2003
VALLEY FORGE, Pa., March 13, 2003--
AmerisourceBergen Corporation (NYSE:ABC) today announced that, as
previously stated, it expects revenue for the remaining nine months of
fiscal year 2003 to increase approximately 13 percent over the same
period in fiscal year 2002. Earnings per share for the remaining nine
months of fiscal year 2003 are expected to increase 20 percent, before
special items, over the same period in the prior fiscal year.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to the
pharmaceutical supply chain. It is a leading distributor of
pharmaceutical products and services to the hospital systems/acute
care market, physicians, 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.
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 other 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 any 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 2002.
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
Stockholders Approve Amendment to Management Stock Incentive Plan
VALLEY FORGE, Pa., February 27, 2003--
AmerisourceBergen Corporation (NYSE:ABC) stockholders today re-elected
three members of the Board of Directors, approved an amendment to the
Company's 2002 Management Stock Incentive Plan, and approved the plan
as amended at the Annual Meeting of Stockholders of AmerisourceBergen
Corporation, held in Philadelphia, PA.
The three members re-elected to the Board today were: Richard C.
Gozon, Retired Executive Vice President, Weyerhaeuser Company; James
R. Mellor, Chairman, USEC Inc.; and J. Lawrence Wilson, Retired
Chairman and Chief Executive Officer, Rohm and Haas Company. The terms
of each of those elected today will expire at the Annual Meeting in
2006.
AmerisourceBergen stockholders also approved an amendment to the
Company's 2002 Management Stock Incentive Plan, and approved the plan
as amended and outlined in the Proxy Statement dated January 28, 2003.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to the
pharmaceutical supply chain. It is a leading distributor of
pharmaceutical products and services to the hospital systems/acute
care market, physicians, 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.
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 other 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 any 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 2002.
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
Date and Time for Earnings Release, Conference Call and Webcast
VALLEY
FORGE, Pa., January 28, 2003 -- AmerisourceBergen Corporation
(NYSE:ABC) today announced that it plans to release its Second
Quarter Fiscal Year 2003 results on Thursday, April 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 Daylight Time on April 24, 2003.
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:
866-269-9612
from within the United States. No access code required.
612-332-0802 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 673719. The telephone replay will be available
from 4:00 p.m. EST on April 24, 2003 to 11:59 p.m. on May
1, 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, physician's offices, 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. For more information,
go to www.amerisourcebergen.com.
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
Record Revenue and Diluted Earnings Per Share for the December
Quarter
VALLEY FORGE, Pa., January 24, 2003--
AmerisourceBergen Corporation (NYSE:ABC) today reported record
results for its fiscal first quarter ended December 31, 2002.
In compliance with recently issued Security and Exchange
Commission regulations, the following results are presented on a GAAP
basis.
Fiscal First Quarter Highlights
-- Diluted earnings per share of $0.84, up 33 percent.
-- Net income of $92.7 million, up 37 percent.
-- Record operating revenue of $11.1 billion, up 15 percent.
-- Return On Committed Capital (ROCC) of 25.5 percent.
"This was another outstanding quarter at AmerisourceBergen," said
R. David Yost, AmerisourceBergen's Chief Executive Officer. "We
delivered record operating revenues with our first $11 billion quarter
and achieved excellent performance across all our businesses. Total
operating expenses as a percentage of operating revenue reached a
historic low. Strong working capital management and operating margin
expansion combined to drive excellent earnings per share growth.
"In January 2003, we expanded our position in the pharmaceutical
supply channel with the completion of two acquisitions, Bridge
Medical, Inc. and US Bioservices Corporation. Bridge provides the
leading bedside bar-code scanning software available today, improving
patient safety in the dispensing of pharmaceuticals. As part of our
Specialty Group, US Bioservices broadens our reimbursement consulting
capability and expands our presence with manufacturers in the delivery
of high-value pharmaceutical therapies. We expect to continue to seek
accretive acquisitions that will enhance our position in this
channel."
Discussion of Results
Diluted earnings per share for the first quarter of fiscal 2003
were $0.84, a 33 percent increase over the $0.63 in the prior year's
first quarter. Special items included in these results are a $0.84
million credit, net of tax, in first quarter of fiscal 2003 and a $4.5
million charge, net of tax, in the same period of the previous fiscal
year.
The fiscal 2003 credit is related to the reversal of accruals
recorded in the fourth quarter of fiscal year 2001 for facility
consolidation and employee severance activities, and the charge
reflects merger integration activities in the first quarter of fiscal
2002.
The earnings per share impact of the special items was an increase
of $0.01 in the first quarter of fiscal 2003 and a decrease of $0.04
in the first quarter of fiscal 2002.
AmerisourceBergen's operating revenue, which excludes bulk
deliveries to customer warehouses, was $11.1 billion in the first
quarter of fiscal 2003 compared to $9.7 billion for the same period
last year, a 15 percent increase.
"Our excellent operational performance in the December quarter was
driven by our on-going focus on customer service, continued
contributions from generic pharmaceuticals, strong merger integration
cost savings as we build our new pharmaceutical distribution network,
and solid working capital management," said Kurt J. Hilzinger,
AmerisourceBergen's President and Chief Operating Officer.
"The Company's leading customer service position was reinforced
again during the quarter, as Premier, one of the largest hospital
purchasing organizations in the U.S., named AmerisourceBergen the top
national pharmaceutical distributor in a recent customer service
satisfaction survey. The Company was also the leader in all previous
surveys."
"During the quarter, we made significant strides in creating our
new pharmaceutical distribution network," he continued. "Construction
is underway on two of our planned six new distribution centers, one in
Columbus, Ohio, and one in Sacramento, California. We also completed
the expansion of our Mansfield, Massachusetts, facility and
subsequently consolidated our other Boston area facility into the
newly expanded distribution center. We have now consolidated eight of
the 27 distribution centers scheduled for consolidation."
"In our PharMerica segment, strong operating revenue growth of 13
percent reflects improved growth in our long-term care business as
well as continued strong growth in PharMerica's workers' compensation
business," said Hilzinger. "Improved operating practices and
reductions in bad debt expenses drove operating expenses down and
expanded operating margins 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 $195.5 million in the first quarter of
fiscal 2003 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 first quarter of fiscal 2003 increased to
$10.9 billion compared with $9.5 billion in the first quarter of
fiscal year 2002, a 14 percent increase.
Pharmaceutical Distribution customer mix in the first quarter of
fiscal 2003 was 55 percent institutional and 45 percent retail. Both
customer groups had double-digit growth in the quarter.
Operating income was $162.9 million in the first quarter of fiscal
2003, up 17 percent from $139.5 million for the same quarter last
year. For the first quarter of fiscal 2003, operating income as a
percentage of operating revenue was 1.49 percent, a 3 basis point
improvement from the first quarter of fiscal 2002.
Lower total operating expenses as a percentage of operating
revenue offset lower gross margins, which were impacted by the
Company's customer mix and the competitive environment.
Total operating expenses as a percentage of operating revenue in
the first quarter of fiscal 2003 were 2.10 percent, a 13 basis point
improvement over the same quarter last year, driven by merger
integration cost savings, customer mix and operating efficiencies.
AmerisourceBergen Specialty Group, with annualized revenue of more
than $3 billion, continued its strong quarterly performance, building
significant positions in oncology, blood plasma, and injectables
distribution as well as growing its manufacturing services businesses.
PharMerica
PharMerica's operating revenue for the first quarter of fiscal
2003 increased 13 percent to $402.8 million from $355.4 million in the
previous year's first quarter.
Operating income for the first quarter of fiscal 2003 was $23.5
million, up 22 percent from $19.3 million for the same quarter last
year. Operating income as a percentage of operating revenue increased
41 basis points in the quarter ended December 31, 2002 to 5.84 percent
from 5.43 percent in the prior year.
Looking Ahead
"For the remainder of fiscal year 2003, we expect to grow
operating revenue approximately 13 percent, and earnings per share 20
percent, excluding the impact of special items," said Yost. "ROCC is
expected to remain well above our 20 percent long-term target, and we
remain confident in our ability to achieve annual merger integration
cost savings of approximately $150 million by the end of fiscal year
2004, followed by additional cost savings as we complete the build out
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 January 24, 2003. Participating in
the conference call will be: R. David Yost, Chief Executive Officer;
Kurt J. Hilzinger, President and Chief Operating Officer; and Michael
D. DiCandilo, Senior Vice President and Chief Financial Officer.
To access the live conference call via telephone:
Dial in: (888) 428-4480 from inside the U.S., no access code required
or (651) 291-0900 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.com.
A replay of the telephone call and webcast will be available from 4:15
p.m. January 24, 2003 until 11:59 p.m. January 31, 2003.
To access the replay via telephone:
Dial in: (800) 475-6701 from within the U.S., access code: 668095
(320) 365-3844 from outside the U.S., access code: 668095
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.
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, physician's
offices, 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.
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 2002.
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
Approves Quarterly Dividend
VALLEY FORGE, Pa., January 22, 2003--The Board of
Directors of AmerisourceBergen Corporation (NYSE:ABC) today declared a
cash dividend of $0.025 per share on Common Stock, payable March 3,
2003 to shareholders of record at the close of business on February
17, 2003.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to the
pharmaceutical supply chain. It is a leading distributor of
pharmaceutical products and services to the hospital systems/acute
care market, alternate care and mail order facilities, physicians,
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 other 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 any 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 2002.
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
Completes Acquisition of US Bioservices Corporation
VALLEY FORGE, Pa., January 17, 2003--
AmerisourceBergen Corporation (NYSE:ABC), the largest pharmaceutical
services company in the U.S. dedicated solely to the pharmaceutical
supply channel, today completed the acquisition of US Bioservices
Corporation, a privately held company (approximately 58 percent of
which is owned by Whitney and Company), for a base purchase price of
approximately $160 million, including assumed debt.
The transaction also provides for contingent payments of up to
approximately $28 million based on US Bioservices achieving defined
earnings targets through the end of the first quarter of calendar year
2004.
AmerisourceBergen expects the acquisition to be slightly accretive
to the Company's fiscal 2003 earnings per share.
AmerisourceBergen issued approximately 2.4 million shares of its
common stock and paid approximately $12 million in cash to the
stockholders of US Bioservices upon the closing of the transaction
today.
The shares of AmerisourceBergen common stock issued upon the
closing of the transaction have been registered under the Securities
Act of 1933 for sale by the recipients of the shares and, therefore,
are eligible for sale immediately without restriction.
US Bioservices is a national pharmaceutical services provider
focused on the management of high-cost, complex therapies and
reimbursement support. US Bioservices had revenues of about $125
million in the 2002 calendar year.
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 2002.
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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Completes Purchase of Bridge Medical, Inc.
VALLEY FORGE, Pa., January 6, 2003--
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 Bridge
Medical, Inc., the leading provider of barcode-enabled point-of-care
software designed to reduce medication errors and decrease costs in
healthcare facilities. The acquisition includes a base purchase price
of $27 million and contingent payments of up to $55 million based on
Bridge Medical achieving significant earnings targets in calendar
years 2003 and 2004. AmerisourceBergen expects to pay the base
purchase price and any contingent amounts primarily in shares of its
common stock. AmerisourceBergen expects the acquisition to be neutral
to earnings in fiscal 2003 and accretive in fiscal 2004 after the
effect of any contingent payments.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to the
pharmaceutical supply chain. It is a leading distributor of
pharmaceutical products and services to the hospital systems/acute
care market, alternate care and mail order facilities, physicians,
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 other 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 any 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 2002.
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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