AmerisourceBergen Reports Fiscal 2021 Fourth Quarter and Year End Results
AmerisourceBergen reported a 19.6% revenue increase for Q4 FY2021, totaling $58.9 billion, and a 12.7% rise for the fiscal year, reaching $214.0 billion. GAAP diluted EPS for Q4 was $2.08, significantly improved from last year's loss of $(23.74). Adjusted diluted EPS rose 26.5% to $2.39. Gross profit in Q4 surged 53.6% to $2.1 billion, aided by the Alliance Healthcare acquisition. Operating income was $562 million, reflecting a recovery from last year's loss.
- Q4 revenue increased by 19.6% to $58.9 billion.
- Fiscal year revenue reached $214.0 billion, a 12.7% increase.
- GAAP diluted EPS improved to $2.08 from a loss of $(23.74) year-over-year.
- Adjusted diluted EPS rose 26.5% to $2.39 in Q4.
- Gross profit for Q4 increased 53.6% to $2.1 billion.
- Operating income for Q4 was $562 million, indicating a recovery but still fragile.
- Net interest expense increased 57.3% due to higher debt from the Alliance Healthcare acquisition.
Revenue of
Fourth Quarter GAAP Diluted EPS of
Revenue of
Fiscal Year 2021 GAAP Diluted EPS of
“AmerisourceBergen delivered strong growth in our 2021 fiscal year and took key steps to further enhance our strategic positioning. The investments we have made in our business and team members support
"I am proud of how we have lived our purpose with our customers, partners and team members throughout these challenging times for our communities. As we look to capitalize on a year of significant advancement, we are well positioned by our strong customer base, leadership in specialty, commitment to innovation and execution, and focus on corporate stewardship,"
Fourth Quarter Fiscal Year 2021 Summary Results
|
GAAP |
Adjusted (Non-GAAP) |
Revenue |
|
|
Gross Profit |
|
|
Operating Expenses |
|
|
Operating Income |
|
|
Interest Expense, Net |
|
|
Effective Tax Rate |
|
|
Net Income Attributable to |
|
|
Diluted Earnings Per Share |
|
|
Diluted Shares Outstanding |
210.8M |
210.8M |
Below,
Fourth Quarter GAAP Results
-
Revenue: In the fourth quarter of fiscal 2021, revenue was
$58.9 billion June 2021 acquisition of Alliance Healthcare.
-
Gross Profit: Gross profit in the fiscal 2021 fourth quarter was
$2.1 billion June 2021 Alliance Healthcare acquisition, and Pharmaceutical Distribution Services. Gross profit as a percentage of revenue was 3.51 percent, an increase of 77 basis points from the prior year quarter primarily driven by theJune 2021 acquisition of Alliance Healthcare, an increase in sales of specialty products in Pharmaceutical Distribution Services, and growth in some of the Company's higher margin businesses.
-
Operating Expenses: In the fourth quarter of fiscal 2021, operating expenses were
$1.5 billion $7.5 billion $6.6 billion
-
Operating Income (Loss): In the fiscal 2021 fourth quarter, operating income (loss) was
$0.6 billion $(6.1) billion
-
Interest Expense, Net: In the fiscal 2021 fourth quarter, net interest expense of
$54.6 million June 2021 acquisition of Alliance Healthcare.
- Effective Tax Rate: The effective tax rate was 21.2 percent for the fourth quarter of fiscal 2021. This compares to 21.1 percent in the prior year quarter.
-
Diluted Earnings Per Share: Diluted earnings per share was
$2.08 $(23.74)
- Diluted Shares Outstanding: Diluted weighted average shares outstanding for the fourth quarter of fiscal 2021 were 210.8 million, a 3.3 percent increase versus the prior fiscal year fourth quarter resulting from the issuance of 2 million Company shares to Walgreens for the acquisition of Alliance Healthcare, stock option exercises, and restricted stock vesting.
Fourth Quarter Adjusted (non-GAAP) Results
-
Revenue: No adjustments were made to the GAAP presentation of revenue. In the fourth quarter of fiscal 2021, revenue was
$58.9 billion
-
Adjusted Gross Profit: Adjusted gross profit in the fiscal 2021 fourth quarter was
$2.0 billion June 2021 Alliance Healthcare acquisition, and Pharmaceutical Distribution Services. Adjusted gross profit as a percentage of revenue was 3.40 percent in the fiscal 2021 fourth quarter, an increase of 71 basis points when compared to the prior year quarter primarily driven by the Alliance Healthcare acquisition, an increase in sales of specialty products in Pharmaceutical Distribution Services and growth in some of the Company's higher margin businesses.
-
Adjusted Operating Expenses: In the fourth quarter of fiscal 2021, adjusted operating expenses were
$1.3 billion
-
Adjusted Operating Income: In the fiscal 2021 fourth quarter, adjusted operating income of
$694.1 million June 2021 Alliance Healthcare acquisition.
-
Interest Expense, Net: No adjustments were made to the GAAP presentation of net interest expense. In the fiscal 2021 fourth quarter, net interest expense of
$54.6 million June 2021 acquisition of Alliance Healthcare.
- Adjusted Effective Tax Rate: The adjusted effective tax rate was 20.3 percent for the fourth quarter of fiscal 2021 compared to 21.7 percent in the prior year quarter as a result of the Company's change in mix of domestic and international income in the respective quarters.
-
Adjusted Diluted Earnings Per Share: Adjusted diluted earnings per share was up 26.5 percent to
$2.39 $1.89
- Adjusted Diluted Shares Outstanding: Diluted weighted average shares outstanding for the fourth quarter of fiscal 2021 were 210.8 million, a 2.2 percent increase versus the prior fiscal year fourth quarter resulting from the issuance of 2 million Company shares to Walgreens for the acquisition of Alliance Healthcare, stock option exercises, and restricted stock vesting.
Segment Discussion
The Company's operations are comprised of the Pharmaceutical Distribution Services reportable segment and other operating segments that are not significant enough to require separate reportable segment disclosure and, therefore, have been included in Other for the purpose of the reportable segment presentation. Other consists of operating segments that focus on global commercialization services, animal health (
Pharmaceutical Distribution Services Segment
Pharmaceutical Distribution Services revenue was
Other
Revenue in Other was
Fiscal Year 2021 Summary Results
|
GAAP |
Adjusted (non-GAAP) |
Revenue |
|
|
Gross Profit |
|
|
Operating Expenses |
|
|
Operating Income |
|
|
Interest Expense, Net |
|
|
Effective Tax Rate |
|
|
Net Income Attributable to |
|
|
Diluted Earnings Per Share |
|
|
Diluted Shares Outstanding |
208.5M |
208.5M |
Summary Fiscal Year GAAP Results
In fiscal year 2021, GAAP diluted EPS was
Summary Fiscal Year Adjusted (non-GAAP) Results
In fiscal year 2021, adjusted diluted EPS was
Recent Company Highlights & Milestones
-
AmerisourceBergen opened its new global headquarters inConshohocken, Pennsylvania . As a part of AmerisourceBergen’s efforts to promote sustainability, the company is actively pursuing a Leadership in Energy and Environmental Design (LEED) Silver certification for the headquarters. At the building's ribbon cutting ceremony,AmerisourceBergen leadership also announced the company had been recognized as aGreat Place to Work® for a third year. -
AmerisourceBergen furthered its diversity, equity, and inclusion efforts with the rollout of new Employee Resource Groups and diverse candidate slate objectives.AmerisourceBergen also unveiled its leadership competency model that will strengthen efforts to support and develop talent. The competencies focus on key areas including diversity, equity, and inclusion, collaboration, innovation and executional excellence, and purpose. -
AmerisourceBergen hosted its second annual ThinkLive Trade virtual event, a three-day online summit geared toward brand, specialty, generic and consumer-product manufacturers. The event centered on challenges and considerations that manufacturers face when bringing products to market, and howAmerisourceBergen works with its partners to drive supply chain sophistication, maximize patient access, and move health forward. -
The AmerisourceBergen Foundation hosted more than 50 nonprofit partners and peers at its third annualGrantee and Nonprofit Partner Conference to share best practices, facilitate collaboration, and foster long-term relationships that create sustained change. The virtual event focused on developing strategies to address urgent needs in response to the COVID-19 pandemic as well as longstanding issues, including health equity and global access to healthcare.
Dividend Declaration
In
New Reportable Segments
Recently,
Fiscal Year 2022 Expectations
The Company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.
Fiscal Year 2022 Expectations on an Adjusted (non-GAAP) Basis
-
Revenue growth in the high-single digit to low-double digit percent range;
-
U.S. Healthcare Solutions revenue in the range of$207 $212 billion 2% to5% ; -
International Healthcare Solutions revenue of approximately
$26 $27 billion
-
-
Adjusted diluted earnings per share to be in the range of
$10.50 $10.80
Additional expectations include:
-
Adjusted operating income growth in the mid- to high-teens percent range;
-
U.S. Healthcare Solutions segment operating income to be in the range of$2.32 5$2.4 billion 3% to6% ; -
International Healthcare solutions segment operating income to be in the range of$685 $715 million
-
- Interest expense growth to be in the mid-teens percent range;
- Adjusted effective tax rate to be approximately 21 percent to 22 percent;
-
Adjusted free cash flow to be approximately
$2 $2.5 billion -
Capital expenditures in the
$500 million - Weighted average diluted shares are expected to be approximately 212 million for the fiscal year.
Conference Call & Slide Presentation
The Company will host a conference call to discuss the results at
-
Steven H. Collis , Chairman, President & Chief Executive Officer -
James F. Cleary , Executive Vice President & Chief Financial Officer
The dial-in number for the live call will be (844) 808-6694. No access code is required. The live call will also be webcast via the Company’s website at investor.amerisourcebergen.com. Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.
Replays of the call will be made available via telephone and webcast. A replay of the webcast will be posted on investor.amerisourcebergen.com approximately two hours after the completion of the call and will remain available for 30 days. The telephone replay will also be available approximately two hours after the completion of the call and will remain available for seven days. To access the telephone replay from within the
Upcoming Investor Events
-
J.P. Morgan Healthcare Conference ,January 10-13, 2022 .
Please check the website for updates regarding the timing of the live presentation webcasts, if any, and for replay information.
About
Certain of the statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the "Securities Exchange Act"). Words such as "expect," "likely," "outlook," "forecast," "would," "could," "should," "can," "project," "intend," "plan," "continue," "sustain," "synergy," "on track," "believe," "seek," "estimate," "anticipate," "may," "possible," "assume," variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated. Among the factors that could cause actual results to differ materially from those projected, anticipated, or implied are the following: unfavorable trends in brand and generic pharmaceutical pricing, including in rate or frequency of price inflation or deflation; competition and industry consolidation of both customers and suppliers resulting in increasing pressure to reduce prices for our products and services; changes in
FINANCIAL SUMMARY (In thousands, except per share data) (unaudited) |
||||||||||||||
|
|
Three
|
|
% of
|
|
Three
|
|
% of
|
|
%
|
||||
Revenue |
|
$ |
58,912,421 |
|
|
|
|
$ |
49,244,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of goods sold |
|
56,843,010 |
|
|
|
|
47,897,921 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit 1 |
|
2,069,411 |
|
|
|
|
1,346,847 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||
Distribution, selling, and administrative 2 |
|
1,215,688 |
|
|
|
|
720,966 |
|
|
|
|
|
||
Depreciation and amortization |
|
177,721 |
|
|
|
|
97,337 |
|
|
|
|
|
||
Employee severance, litigation, and other 3 |
|
96,410 |
|
|
|
|
6,641,681 |
|
|
|
|
|
||
|
|
6,373 |
|
|
|
|
— |
|
|
|
|
|
||
Impairment of assets |
|
11,324 |
|
|
|
|
— |
|
|
|
|
|
||
Total operating expenses |
|
1,507,516 |
|
|
|
|
7,459,984 |
|
|
|
|
(79.8)% |
||
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (loss) |
|
561,895 |
|
|
|
|
(6,113,137) |
|
|
(12.41)% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Other income, net 4 |
|
(46,637) |
|
|
|
|
(4,387) |
|
|
|
|
|
||
Interest expense, net |
|
54,596 |
|
|
|
|
34,707 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Income (loss) before income taxes |
|
553,936 |
|
|
|
|
(6,143,457) |
|
|
(12.48)% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense (benefit) 5 |
|
117,488 |
|
|
|
|
(1,298,952) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
436,448 |
|
|
|
|
(4,844,505) |
|
|
(9.84)% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss (income) attributable to noncontrolling interests |
|
1,250 |
|
|
|
|
(1,567) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) attributable to |
|
$ |
437,698 |
|
|
|
|
$ |
(4,846,072) |
|
|
(9.84)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
2.11 |
|
|
|
|
$ |
(23.74) |
|
|
|
|
|
Diluted |
|
$ |
2.08 |
|
|
|
|
$ |
(23.74) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
207,900 |
|
|
|
|
204,094 |
|
|
|
|
|
||
Diluted |
|
210,810 |
|
|
|
|
204,094 |
|
|
|
|
|
||
________________________________________
1 Includes a
2 Includes a
3 Includes
4 Includes a
5 Includes
FINANCIAL SUMMARY (In thousands, except per share data) (unaudited) |
||||||||||||||
|
|
Fiscal Year Ended
|
|
% of
|
|
Fiscal Year Ended
|
|
% of
|
|
%
|
||||
Revenue |
|
$ |
213,988,843 |
|
|
|
|
$ |
189,893,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of goods sold |
|
207,045,615 |
|
|
|
|
184,702,042 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit 1 |
|
6,943,228 |
|
|
|
|
5,191,884 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||
Distribution, selling, and administrative 2 |
|
3,594,251 |
|
|
|
|
2,767,217 |
|
|
|
|
|
||
Depreciation and amortization |
|
505,172 |
|
|
|
|
391,062 |
|
|
|
|
|
||
Employee severance, litigation, and other 3 |
|
471,911 |
|
|
|
|
6,807,307 |
|
|
|
|
|
||
|
|
6,373 |
|
|
|
|
— |
|
|
|
|
|
||
Impairment of assets |
|
11,324 |
|
|
|
|
361,652 |
|
|
|
|
|
||
Total operating expenses |
|
4,589,031 |
|
|
|
|
10,327,238 |
|
|
|
|
(55.6)% |
||
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (loss) |
|
2,354,197 |
|
|
|
|
(5,135,354) |
|
|
(2.70)% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Other income, net 4 |
|
(41,736) |
|
|
|
|
(1,581) |
|
|
|
|
|
||
Interest expense, net |
|
174,074 |
|
|
|
|
137,883 |
|
|
|
|
|
||
Loss on early retirement of debt |
|
— |
|
|
|
|
22,175 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Income (loss) before income taxes |
|
2,221,859 |
|
|
|
|
(5,293,831) |
|
|
(2.79)% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense (benefit) 5 |
|
677,251 |
|
|
|
|
(1,894,273) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
1,544,608 |
|
|
|
|
(3,399,558) |
|
|
(1.79)% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to noncontrolling interests |
|
(4,676) |
|
|
|
|
(9,158) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) attributable to |
|
$ |
1,539,932 |
|
|
|
|
$ |
(3,408,716) |
|
|
(1.80)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
7.48 |
|
|
|
|
$ |
(16.65) |
|
|
|
|
|
Diluted |
|
$ |
7.39 |
|
|
|
|
$ |
(16.65) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
205,919 |
|
|
|
|
204,783 |
|
|
|
|
|
||
Diluted |
|
208,465 |
|
|
|
|
204,783 |
|
|
|
|
|
||
________________________________________
1 Includes a
2 Includes
3 Includes
4 Includes a
5 Includes
GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited) |
|||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating
|
|
Income Before
|
|
Income Tax
|
|
Net Loss
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||||
GAAP |
|
$ |
2,069,411 |
|
|
$ |
1,507,516 |
|
|
$ |
561,895 |
|
|
$ |
553,936 |
|
|
$ |
117,488 |
|
|
$ |
1,250 |
|
|
$ |
437,698 |
|
|
$ |
2.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains from antitrust litigation settlements |
|
(21,362) |
|
|
— |
|
|
(21,362) |
|
|
(21,362) |
|
|
(32,251) |
|
|
— |
|
|
10,889 |
|
|
0.05 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
LIFO credit |
|
(42,463) |
|
|
— |
|
|
(42,463) |
|
|
(42,463) |
|
|
(40,529) |
|
|
— |
|
|
(1,934) |
|
|
(0.01) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition-related intangibles amortization |
|
— |
|
|
(81,932) |
|
|
81,932 |
|
|
81,932 |
|
|
43,830 |
|
|
(5,734) |
|
|
32,368 |
|
|
0.15 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Employee severance, litigation, and other 1 |
|
— |
|
|
(96,410) |
|
|
96,410 |
|
|
96,410 |
|
|
50,802 |
|
|
— |
|
|
45,608 |
|
|
0.22 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impairment of non-customer note receivable |
|
— |
|
|
— |
|
|
— |
|
|
14,000 |
|
|
— |
|
|
— |
|
|
14,000 |
|
|
0.07 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gain on remeasurement of equity investment |
|
— |
|
|
— |
|
|
— |
|
|
(64,721) |
|
|
— |
|
|
— |
|
|
(64,721) |
|
|
(0.31) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
— |
|
|
(6,373) |
|
|
6,373 |
|
|
6,373 |
|
|
— |
|
|
— |
|
|
6,373 |
|
|
0.03 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impairment of assets |
|
— |
|
|
(11,324) |
|
|
11,324 |
|
|
11,324 |
|
|
— |
|
|
— |
|
|
11,324 |
|
|
0.05 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Tax reform 2 |
|
— |
|
|
— |
|
|
— |
|
|
2,276 |
|
|
(9,784) |
|
|
— |
|
|
12,060 |
|
|
0.06 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP |
|
$ |
2,005,586 |
|
|
$ |
1,311,477 |
|
|
$ |
694,109 |
|
|
$ |
637,705 |
|
|
$ |
129,556 |
|
|
$ |
(4,484) |
|
|
$ |
503,665 |
|
|
$ |
2.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP % change vs. prior year quarter |
|
51.3 |
% |
|
64.9 |
% |
|
31.0 |
% |
|
27.6 |
% |
|
19.3 |
% |
|
|
|
29.4 |
% |
|
26.5 |
% |
|
|||||||||
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
Gross profit |
|
|
|
|
Operating expenses |
|
|
|
|
Operating income |
|
|
|
|
________________________________________
1 Includes a
2 Includes
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited) |
|||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating
|
|
(Loss) Income
|
|
Income Tax
|
|
Net Income
|
|
Net (Loss)
|
|
Diluted
|
|||||||||||||||||
GAAP |
|
$ |
1,346,847 |
|
|
$ |
7,459,984 |
|
|
$ |
(6,113,137 |
) |
|
$ |
(6,143,457 |
) |
|
$ |
(1,298,952 |
) |
|
$ |
(1,567 |
) |
|
$ |
(4,846,072 |
) |
|
$ |
(23.74 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gains from antitrust litigation settlements |
|
(530 |
) |
|
— |
|
|
(530 |
) |
|
(530 |
) |
|
112 |
|
|
— |
|
|
(642 |
) |
|
— |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
LIFO credit |
|
(35,773 |
) |
|
— |
|
|
(35,773 |
) |
|
(35,773 |
) |
|
(8,989 |
) |
|
— |
|
|
(26,784 |
) |
|
(0.13 |
) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
PharMEDium shutdown costs |
|
— |
|
|
2,200 |
|
|
(2,200 |
) |
|
(2,200 |
) |
|
(2,132 |
) |
|
— |
|
|
(68 |
) |
|
— |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
14,800 |
|
|
— |
|
|
14,800 |
|
|
14,800 |
|
|
3,240 |
|
|
— |
|
|
11,560 |
|
|
0.06 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Acquisition-related intangibles amortization |
|
— |
|
|
(25,133 |
) |
|
25,133 |
|
|
25,133 |
|
|
3,213 |
|
|
(437 |
) |
|
21,483 |
|
|
0.10 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Employee severance, litigation, and other 1 |
|
— |
|
|
(6,641,681 |
) |
|
6,641,681 |
|
|
6,641,681 |
|
|
1,081,721 |
|
|
— |
|
|
5,559,960 |
|
|
27.20 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Impairment of assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9,700 |
) |
|
— |
|
|
9,700 |
|
|
0.05 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Other |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(268 |
) |
|
189 |
|
457 |
|
|
— |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Certain discrete tax benefits 2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(20,425 |
) |
|
— |
|
|
20,425 |
|
|
0.10 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Tax reform 3 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
360,745 |
|
|
— |
|
|
(360,745 |
) |
|
(1.75 |
) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Non-GAAP |
|
$ |
1,325,344 |
|
|
$ |
795,370 |
|
|
$ |
529,974 |
|
|
$ |
499,654 |
|
|
$ |
108,565 |
|
|
$ |
(1,815 |
) |
|
$ |
389,274 |
|
|
$ |
1.89 |
|
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
Gross profit |
|
|
|
|
Operating expenses |
|
|
|
|
Operating (loss) income |
|
(12.41)% |
|
|
________________________________________
1 Includes a
2 Represents an adjustment to discrete tax benefits previously recognized primarily attributable to the income tax deductions resulting from the permanent shutdown of the PharMEDium business.
3 Represents a tax benefit relating to Swiss tax reform.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited) |
|||||||||||||||||||||||||||||||||
|
|
Fiscal Year Ended |
|
||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating Income |
|
Income Before
|
|
Income Tax
|
|
Net Income
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||||
GAAP |
|
$ |
6,943,228 |
|
|
$ |
4,589,031 |
|
|
$ |
2,354,197 |
|
|
$ |
2,221,859 |
|
|
$ |
677,251 |
|
|
$ |
(4,676) |
|
|
$ |
1,539,932 |
|
|
$ |
7.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains from antitrust litigation settlements |
|
(168,794) |
|
|
— |
|
|
(168,794) |
|
|
(168,794) |
|
|
(47,517) |
|
|
— |
|
|
(121,277) |
|
|
(0.58) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
LIFO credit |
|
(203,028) |
|
|
— |
|
|
(203,028) |
|
|
(203,028) |
|
|
(57,154) |
|
|
— |
|
|
(145,874) |
|
|
(0.70) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition-related intangibles amortization |
|
— |
|
|
(176,221) |
|
|
176,221 |
|
|
176,221 |
|
|
46,873 |
|
|
(7,498) |
|
|
121,850 |
|
|
0.58 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Employee severance, litigation, and other 1 |
|
— |
|
|
(471,911) |
|
|
471,911 |
|
|
471,911 |
|
|
87,304 |
|
|
— |
|
|
384,607 |
|
|
1.84 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impairment of non-customer note receivable |
|
— |
|
|
— |
|
|
— |
|
|
14,000 |
|
|
— |
|
|
— |
|
|
14,000 |
|
|
0.07 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gain on remeasurement of equity investment |
|
— |
|
|
— |
|
|
— |
|
|
(64,721) |
|
|
— |
|
|
— |
|
|
(64,721) |
|
|
(0.31) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
— |
|
|
(6,373) |
|
|
6,373 |
|
|
6,373 |
|
|
— |
|
|
— |
|
|
6,373 |
|
|
0.03 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impairment of assets |
|
— |
|
|
(11,324) |
|
|
11,324 |
|
|
11,324 |
|
|
— |
|
|
— |
|
|
11,324 |
|
|
0.05 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Certain discrete tax benefits 2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
20,425 |
|
|
— |
|
|
(20,425) |
|
|
(0.10) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Tax reform 3 |
|
— |
|
|
— |
|
|
— |
|
|
3,362 |
|
|
(201,391) |
|
|
— |
|
|
204,753 |
|
|
0.98 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP |
|
$ |
6,571,406 |
|
|
$ |
3,923,202 |
|
|
$ |
2,648,204 |
|
|
$ |
2,468,507 |
|
|
$ |
525,791 |
|
|
$ |
(12,174) |
|
|
$ |
1,930,542 |
|
|
$ |
9.26 |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP % change vs. prior year |
|
25.9 |
% |
|
30.2 |
% |
|
20.1 |
% |
|
19.4 |
% |
|
22.0 |
% |
|
|
|
18.3 |
% |
|
17.2 |
% |
|
|||||||||
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
Gross profit |
|
|
|
|
Operating expenses |
|
|
|
|
Operating income |
|
|
|
|
________________________________________
1 Includes a
2 Represents an adjustment of discrete tax benefits primarily attributable to the income tax deductions resulting from the permanent shutdown of the PharMEDium business.
3 Includes
4 The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited) |
|||||||||||||||||||||||||||||||||
|
|
Fiscal Year Ended |
|
||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating
|
|
(Loss) Income
|
|
Income Tax
|
|
Net Income
|
|
Net (Loss)
|
|
Diluted
|
|
||||||||||||||||
GAAP |
|
$ |
5,191,884 |
|
|
$ |
10,327,238 |
|
|
$ |
(5,135,354) |
|
|
$ |
(5,293,831) |
|
|
$ |
(1,894,273) |
|
|
$ |
(9,158) |
|
|
$ |
(3,408,716) |
|
|
$ |
(16.65) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains from antitrust litigation settlements |
|
(9,076) |
|
|
— |
|
|
(9,076) |
|
|
(9,076) |
|
|
(1,988) |
|
|
— |
|
|
(7,088) |
|
|
(0.03) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
LIFO expense |
|
7,422 |
|
|
— |
|
|
7,422 |
|
|
7,422 |
|
|
1,625 |
|
|
— |
|
|
5,797 |
|
|
0.03 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
PharMEDium shutdown and remediation costs |
|
12,556 |
|
|
(46,815) |
|
|
59,371 |
|
|
59,371 |
|
|
12,996 |
|
|
— |
|
|
46,375 |
|
|
0.22 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
14,800 |
|
|
— |
|
|
14,800 |
|
|
14,800 |
|
|
3,240 |
|
|
— |
|
|
11,560 |
|
|
0.06 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition-related intangibles amortization |
|
— |
|
|
(110,478) |
|
|
110,478 |
|
|
110,478 |
|
|
24,184 |
|
|
(1,745) |
|
|
84,549 |
|
|
0.41 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Employee severance, litigation, and other 1 |
|
— |
|
|
(6,807,307) |
|
|
6,807,307 |
|
|
6,807,307 |
|
|
1,122,417 |
|
|
— |
|
|
5,684,890 |
|
|
27.66 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impairment of assets |
|
— |
|
|
(361,652) |
|
|
361,652 |
|
|
361,652 |
|
|
79,165 |
|
|
— |
|
|
282,487 |
|
|
1.37 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Contingent consideration adjustment |
|
— |
|
|
12,153 |
|
|
(12,153) |
|
|
(12,153) |
|
|
(2,660) |
|
|
5,867 |
|
|
(3,626) |
|
|
(0.02) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loss on early retirement of debt |
|
— |
|
|
— |
|
|
— |
|
|
22,175 |
|
|
4,854 |
|
|
— |
|
|
17,321 |
|
|
0.08 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Certain discrete tax benefits 2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
720,590 |
|
|
— |
|
|
(720,590) |
|
|
(3.49) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Tax reform 3 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
360,745 |
|
|
— |
|
|
(360,745) |
|
|
(1.75) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP |
|
$ |
5,217,586 |
|
|
$ |
3,013,139 |
|
|
$ |
2,204,447 |
|
|
$ |
2,068,145 |
|
|
$ |
430,895 |
|
|
$ |
(5,036) |
|
|
$ |
1,632,214 |
|
|
$ |
7.90 |
|
4 |
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
Gross profit |
|
|
|
|
Operating expenses |
|
|
|
|
Operating (loss) income |
|
(2.70)% |
|
|
________________________________________
1 Includes a
2 Represents discrete tax benefits primarily attributable to the income tax deductions resulting from the permanent shutdown of the PharMEDium business.
3 Represents a tax benefit relating to Swiss tax reform.
4 The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
RECONCILIATION OF DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (GAAP TO NON-GAAP) (in thousands) (unaudited) |
||||||||||||
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
|
|
|
|
|
|
|
|
|
||||
Basic shares outstanding |
|
207,900 |
|
|
204,094 |
|
|
205,919 |
|
204,783 |
||
|
|
|
|
|
|
|
|
|
||||
Stock option and restricted stock unit dilution |
|
2,910 |
|
|
— |
|
|
2,546 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||
GAAP diluted shares outstanding |
|
210,810 |
|
|
204,094 |
|
|
208,465 |
|
|
204,783 |
|
|
|
|
|
|
|
|
|
|
||||
Stock option and restricted stock unit dilution 1 |
|
— |
|
|
2,262 |
|
|
— |
|
|
1,839 |
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP diluted shares outstanding |
|
210,810 |
|
|
206,356 |
|
|
208,465 |
|
|
206,622 |
|
1 For the non-GAAP presentation, diluted weighted average common shares outstanding has been adjusted to include the impact of the stock options and restricted stock units that were anti-dilutive for the GAAP presentation.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
SUMMARY SEGMENT INFORMATION (dollars in thousands) (unaudited) |
||||||||||
|
|
Three Months Ended |
||||||||
Revenue |
|
2021 |
|
2020 |
|
% Change |
||||
Pharmaceutical Distribution Services |
|
$ |
51,247,348 |
|
|
$ |
47,288,572 |
|
|
|
Other |
|
7,701,487 |
|
|
1,990,992 |
|
|
|
||
Intersegment eliminations |
|
(36,414) |
|
|
(34,796) |
|
|
|
||
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
58,912,421 |
|
|
$ |
49,244,768 |
|
|
|
|
|
Three Months Ended |
||||||||
Operating income (loss) |
|
2021 |
|
2020 |
|
% Change |
||||
Pharmaceutical Distribution Services |
|
$ |
472,058 |
|
|
$ |
425,567 |
|
|
|
Other |
|
223,277 |
|
|
104,525 |
|
|
|
||
Intersegment eliminations |
|
(1,226) |
|
|
(118) |
|
|
|
||
Total segment operating income |
|
694,109 |
|
|
529,974 |
|
|
|
||
|
|
|
|
|
|
|
||||
Gains from antitrust litigation settlements |
|
21,362 |
|
|
530 |
|
|
|
||
LIFO credit |
|
42,463 |
|
|
35,773 |
|
|
|
||
PharMEDium shutdown costs |
|
— |
|
|
2,200 |
|
|
|
||
|
|
— |
|
|
(14,800) |
|
|
|
||
Acquisition-related intangibles amortization |
|
(81,932) |
|
|
(25,133) |
|
|
|
||
Employee severance, litigation, and other |
|
(96,410) |
|
|
(6,641,681) |
|
|
|
||
|
|
(6,373) |
|
|
— |
|
|
|
||
Impairment of assets |
|
(11,324) |
|
|
— |
|
|
|
||
Operating income (loss) |
|
$ |
561,895 |
|
|
$ |
(6,113,137) |
|
|
|
|
|
|
|
|
|
|
||||
Percentages of revenue: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Pharmaceutical Distribution Services |
|
|
|
|
|
|
||||
Gross profit |
|
|
|
|
|
|
||||
Operating expenses |
|
|
|
|
|
|
||||
Operating income |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
||||
Gross profit |
|
|
|
|
|
|
||||
Operating expenses |
|
|
|
|
|
|
||||
Operating income |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Gross profit |
|
|
|
|
|
|
||||
Operating expenses |
|
|
|
|
|
|
||||
Operating income (loss) |
|
|
|
(12.41)% |
|
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Adjusted gross profit |
|
|
|
|
|
|
||||
Adjusted operating expenses |
|
|
|
|
|
|
||||
Adjusted operating income |
|
|
|
|
|
|
||||
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
SUMMARY SEGMENT INFORMATION (dollars in thousands) (unaudited) |
||||||||||
|
|
Fiscal Year Ended |
||||||||
Revenue |
|
2021 |
|
2020 |
|
% Change |
||||
Pharmaceutical Distribution Services |
|
$ |
198,153,202 |
|
|
$ |
182,467,189 |
|
|
|
Other |
|
15,974,799 |
|
|
7,525,102 |
|
|
|
||
Intersegment eliminations |
|
(139,158) |
|
|
(98,365) |
|
|
|
||
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
213,988,843 |
|
|
$ |
189,893,926 |
|
|
|
|
|
Fiscal Year Ended |
||||||||
Operating income (loss) |
|
2021 |
|
2020 |
|
% Change |
||||
Pharmaceutical Distribution Services |
|
$ |
2,041,072 |
|
|
$ |
1,807,001 |
|
|
|
Other |
|
614,973 |
|
|
400,139 |
|
|
|
||
Intersegment eliminations |
|
(7,841) |
|
|
(2,693) |
|
|
|
||
Total segment operating income |
|
2,648,204 |
|
|
2,204,447 |
|
|
|
||
|
|
|
|
|
|
|
||||
Gains from antitrust litigation settlements |
|
168,794 |
|
|
9,076 |
|
|
|
||
LIFO credit (expense) |
|
203,028 |
|
|
(7,422) |
|
|
|
||
PharMEDium shutdown and remediation costs |
|
— |
|
|
(59,371) |
|
|
|
||
|
|
— |
|
|
(14,800) |
|
|
|
||
Acquisition-related intangibles amortization |
|
(176,221) |
|
|
(110,478) |
|
|
|
||
Employee severance, litigation, and other |
|
(471,911) |
|
|
(6,807,307) |
|
|
|
||
|
|
(6,373) |
|
|
— |
|
|
|
||
Impairment of assets |
|
(11,324) |
|
|
(361,652) |
|
|
|
||
Contingent consideration adjustment |
|
— |
|
|
12,153 |
|
|
|
||
Operating income (loss) |
|
$ |
2,354,197 |
|
|
$ |
(5,135,354) |
|
|
|
|
|
|
|
|
|
|
||||
Percentages of revenue: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Pharmaceutical Distribution Services |
|
|
|
|
|
|
||||
Gross profit |
|
|
|
|
|
|
||||
Operating expenses |
|
|
|
|
|
|
||||
Operating income |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
||||
Gross profit |
|
|
|
|
|
|
||||
Operating expenses |
|
|
|
|
|
|
||||
Operating income |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Gross profit |
|
|
|
|
|
|
||||
Operating expenses |
|
|
|
|
|
|
||||
Operating income (loss) |
|
|
|
(2.70)% |
|
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Adjusted gross profit |
|
|
|
|
|
|
||||
Adjusted operating expenses |
|
|
|
|
|
|
||||
Adjusted operating income |
|
|
|
|
|
|
||||
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
|||||||
|
Fiscal Year Ended |
||||||
|
2021 |
|
2020 |
||||
ASSETS |
|
|
|
||||
|
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,547,142 |
|
|
$ |
4,597,746 |
|
Accounts receivable, net |
18,167,175 |
|
|
13,846,301 |
|
||
Inventories |
15,368,352 |
|
|
12,589,278 |
|
||
Right to recover asset |
1,271,557 |
|
|
1,344,649 |
|
||
Income tax receivable |
221,875 |
|
|
488,428 |
|
||
Prepaid expenses and other |
1,226,508 |
|
|
189,300 |
|
||
Total current assets |
38,802,609 |
|
|
33,055,702 |
|
||
|
|
|
|
||||
Property and equipment, net |
2,162,961 |
|
|
1,484,808 |
|
||
|
14,287,458 |
|
|
8,592,826 |
|
||
Deferred income taxes |
290,791 |
|
|
361,640 |
|
||
Other long-term assets |
1,793,986 |
|
|
779,854 |
|
||
|
|
|
|
||||
Total assets |
$ |
57,337,805 |
|
|
$ |
44,274,830 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
||||
|
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
38,009,954 |
|
|
$ |
31,705,055 |
|
Other current liabilities |
3,048,474 |
|
|
1,646,763 |
|
||
Short-term debt |
300,213 |
|
|
501,259 |
|
||
Total current liabilities |
41,358,641 |
|
|
33,853,077 |
|
||
|
|
|
|
||||
Long-term debt |
6,383,711 |
|
|
3,618,261 |
|
||
|
|
|
|
||||
Accrued income taxes |
281,070 |
|
|
284,845 |
|
||
Deferred income taxes |
1,685,296 |
|
|
686,485 |
|
||
Other long-term liabilities |
1,082,723 |
|
|
472,855 |
|
||
Accrued litigation liability |
5,961,953 |
|
|
6,198,943 |
|
||
|
|
|
|
||||
Total equity (deficit) |
584,411 |
|
|
(839,636) |
|
||
|
|
|
|
||||
Total liabilities and stockholders' equity (deficit) |
$ |
57,337,805 |
|
|
$ |
44,274,830 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
|||||||
|
Fiscal Year Ended |
||||||
|
2021 |
|
2020 |
||||
Operating Activities: |
|
|
|
||||
Net income (loss) |
$ |
1,544,608 |
|
|
$ |
(3,399,558) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities 1 |
754,656 |
|
|
(662,430) |
|
||
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|
|
|
||||
Accounts receivable |
(930,078) |
|
|
(1,628,991) |
|
||
Inventories |
(1,116,344) |
|
|
(1,621,143) |
|
||
Accounts payable |
2,049,167 |
|
|
3,300,832 |
|
||
Other, net 2 |
364,577 |
|
|
6,218,330 |
|
||
Net cash provided by operating activities |
2,666,586 |
|
|
2,207,040 |
|
||
|
|
|
|
||||
Investing Activities: |
|
|
|
||||
Capital expenditures |
(438,217) |
|
|
(369,677) |
|
||
Cost of acquired companies, net of cash acquired |
(5,563,040) |
|
|
— |
|
||
Cost of equity investments |
(162,620) |
|
|
(56,080) |
|
||
Other |
22,300 |
|
|
45,886 |
|
||
Net cash used in investing activities |
(6,141,577) |
|
|
(379,871) |
|
||
|
|
|
|
||||
Financing Activities: |
|
|
|
||||
Net borrowings (repayments) 3 |
2,216,552 |
|
|
(32,006) |
|
||
Payment of premium on early retirement of debt |
— |
|
|
(21,448) |
|
||
Purchases of common stock |
(82,150) |
|
|
(420,449) |
|
||
Exercises of stock options |
198,750 |
|
|
159,533 |
|
||
Cash dividends on common stock |
(366,648) |
|
|
(343,578) |
|
||
Other |
(13,655) |
|
|
54,331 |
|
||
Net cash provided by (used in) financing activities |
1,952,849 |
|
|
(603,617) |
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
(3,725) |
|
|
— |
|
||
|
|
|
|
||||
(Decrease) increase in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale |
(1,525,867) |
|
|
1,223,552 |
|
||
Less: Increase in cash classified within assets held for sale |
(1,751) |
|
|
— |
|
||
(Decrease) increase in cash, cash equivalents, and restricted cash |
(1,527,618) |
|
|
1,223,552 |
|
||
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at beginning of year |
4,597,746 |
|
|
3,374,194 |
|
||
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at end of year 4 |
$ |
3,070,128 |
|
|
$ |
4,597,746 |
|
________________________________________
1 Includes an impairment of PharMEDium assets of
2 Includes a
3 Includes proceeds from the issuance of the Company's
4 Includes
SUPPLEMENTAL INFORMATION REGARDING
NON-GAAP FINANCIAL MEASURES
To supplement the financial measures prepared in accordance with
The non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company’s operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The presented non-GAAP financial measures exclude items that management does not believe reflect the Company’s core operating performance because such items are outside the control of the Company or are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. We have included the following non-GAAP earnings-related financial measures in this release:
-
Adjusted gross profit and adjusted gross profit margin: Adjusted gross profit is a non-GAAP financial measure that excludes the gain from antitrust litigation settlements, LIFO expense (credit), certain PharMEDium shutdown and remediation costs, and the expense related to the
New York State Opioid Stewardship Act (the "NYS Opioid Act"). Gain from antitrust litigation settlements and LIFO expense (credit) are excluded because the Company cannot control the amounts recognized or timing of these items. PharMEDium remediation costs are excluded because they were unpredictable expenses. The expense related to the NYS Opioid Act and PharMEDium shutdown costs are excluded because they were unusual and non-recurring. Adjusted gross profit margin is the ratio of adjusted gross profit to total revenue. Management believes that these non-GAAP financial measures are useful to investors as a supplemental measure of the Company’s ongoing operating performance. The gain from antitrust litigation settlements relates to the settlement of lawsuits that have been filed against brand pharmaceutical manufacturers alleging that the manufacturer, by itself or in concert with others, took improper actions to delay or prevent generic drugs from entering the market. The PharMEDium remediation costs related to costs incurred in connection with suspended production activities followingU.S. Food and Drug Administration inspections. PharMEDium shutdown costs are costs incurred in connection with the permanent shutdown of the PharMEDium business. LIFO expense (credit) is affected by changes in inventory quantities, product mix, and manufacturer pricing practices, which may be impacted by market and other external influences. The NYS Opioid Act, which went into effect onJuly 1, 2018 , established an annual$100 million New York state . InDecember 2018 , the NYS Opioid Act was ruled unconstitutional by theU.S. District Court for the Southern District of New York but, inSeptember 2020 , theUnited States Court of Appeals for the Second Circuit reversed the District Court's decision.
- Adjusted operating expenses and adjusted operating expense margin: Adjusted operating expenses is a non-GAAP financial measure that excludes acquisition-related intangibles amortization, employee severance, litigation, and other, certain PharMEDium shutdown and remediation costs, goodwill impairment, impairment of assets, and a contingent consideration adjustment. Adjusted operating expense margin is the ratio of adjusted operating expenses to total revenue. Acquisition-related intangibles amortization is excluded because it is a non-cash item and does not reflect the operating performance of the acquired companies. We exclude employee severance amounts that relate to unpredictable and/or non-recurring business restructurings. We exclude the amount of litigation settlements and other expenses, such as the accrual related to opioid lawsuits and investigations, as well as PharMEDium shutdown and remediation costs, goodwill impairment, a contingent consideration adjustment and the impairment of assets, that are unusual, non-operating, unpredictable, non-recurring or non-cash in nature because we believe these exclusions facilitate the analysis of our ongoing operational performance. The contingent consideration adjustment reflects an adjustment made by one of the Company’s non-wholly-owned subsidiaries, Profarma Distribuidora de Produtos Farmacêuticos S.A., of its previous estimate of contingent consideration related to the purchase price of a prior business acquisition.
- Adjusted operating income and adjusted operating income margin: Adjusted operating income is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted gross profit and adjusted operating expenses. Adjusted operating income margin is the ratio of adjusted operating income to total revenue. Management believes that these non-GAAP financial measures are useful to investors as a supplemental way to evaluate the Company’s performance because the adjustments are unusual, non-operating, unpredictable, non-recurring or non-cash in nature.
- Adjusted income before income taxes: Adjusted income before income taxes is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted operating income. In addition, the loss on early retirement of debt in fiscal 2020, gain on the remeasurement of an equity investment, and impairment of a non-customer note receivable are excluded from adjusted income before income taxes because these amounts are unusual, non-operating, and non-recurring. Management believes that this non-GAAP financial measure is useful to investors because it facilitates the calculation of the Company’s adjusted effective tax rate.
- Adjusted effective tax rate: Adjusted effective tax rate is a non-GAAP financial measure that is determined by dividing adjusted income tax expense/benefit by adjusted income before income taxes. Management believes that this non-GAAP financial measure is useful to investors because it presents an effective tax rate that does not reflect unusual, non-operating, unpredictable, non-recurring, or non-cash amounts or items that are outside the control of the Company.
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Adjusted income tax expense: Adjusted income tax expense is a non-GAAP financial measure that excludes the income tax expense associated with the same items that are described above and excluded from adjusted income before income taxes. Certain discrete tax benefits primarily attributable to the income tax deduction recognized in connection with the permanent shutdown of PharMEDium as well as the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") are also excluded from adjusted income tax expense. Further, certain expenses relating to tax reforms in the
UK andSwitzerland are excluded from adjusted income tax expense in fiscal 2021 and certain benefits relating to tax reform inSwitzerland are excluded from adjusted income tax expense in fiscal 2020. Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Company’s performance because the adjustments are unusual, non-operating, unpredictable, non-recurring or non-cash in nature.
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Adjusted net income/loss attributable to noncontrolling interest: Adjusted net income/loss attributable to noncontrolling interest excludes the non-controlling interest portion of acquisition-related intangibles amortization and a contingent consideration adjustment. Management believes that this non-GAAP financial measure is useful to investors because it facilitates the calculation of adjusted net income attributable to
ABC .
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Adjusted net income attributable to
ABC : Adjusted net income attributable toABC is a non-GAAP financial measure that excludes the same items that are described above. Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Company's performance because the adjustments are unusual, non-operating, unpredictable, non-recurring or non-cash in nature.
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Adjusted diluted earnings per share: Adjusted diluted earnings per share excludes the per share impact of adjustments including gain from antitrust litigation settlements; LIFO expense (credit); PharMEDium shutdown and remediation costs; the expense related to the NYS Opioid Act; acquisition-related intangibles amortization; employee severance, litigation, and other; impairment of assets; a contingent consideration adjustment; loss on early retirement of debt; goodwill impairment; gain on remeasurement of an equity investment; and impairment of a non-customer note receivable, in each case net of the tax effect calculated using the applicable effective tax rate for those items. In addition, the per share impact of certain discrete tax benefits primarily attributable to the income tax deduction recognized in connection with the permanent shutdown of PharMEDium as well as the CARES Act and the per share impact of certain benefits and expenses relating to tax reforms in
Switzerland and theUK are also excluded from adjusted diluted earnings per share. Management believes that this non-GAAP financial measure is useful to investors because it eliminates the per share impact of the items that are outside the control of the Company or that we consider to not be indicative of our ongoing operating performance due to their inherent unusual, non-operating, unpredictable, non-recurring, or non-cash nature. Diluted weighted average common shares outstanding has been adjusted to include the impact of the stock options and restricted stock units that were anti-dilutive for the GAAP presentation due to a GAAP net loss in the fourth quarter and fiscal year endedSeptember 30, 2020 . Management believes that adjusted diluted shares outstanding is useful to investors because it facilitates the calculation of adjusted diluted earnings per share.
In addition, the Company has provided non-GAAP fiscal year 2022 guidance for diluted earnings per share, operating income and effective income tax rate that excludes the same or similar items as those that are excluded from the historical non-GAAP financial measures, as well as significant items that are outside the control of the Company or inherently unusual, non-operating, unpredictable, non-recurring or non-cash in nature. In addition, it has provided fiscal year 2022 adjusted free cash flow guidance. For fiscal year 2022, we have defined the non-GAAP financial measure of adjusted free cash flow as net cash provided by operating activities, excluding other significant unpredictable or non-recurring cash payments or receipts relating to legal settlements, minus capital expenditures. For the fiscal year ended
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Senior Vice President, Investor Relations
610-727-3693
bmurphy@amerisourcebergen.com
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