AmerisourceBergen Reports Fiscal 2022 Third Quarter Results
AmerisourceBergen Corporation (NYSE: ABC) reported a revenue increase of 12.5% year-over-year, totaling $60.1 billion for Q3 FY2022. The company’s GAAP diluted EPS rose to $1.92, compared to $1.40 in the same quarter last year. Adjusted diluted EPS also saw a significant increase of 21.3%, reaching $2.62 from $2.16 in Q3 FY2021. Following these results, the company raised its adjusted diluted EPS guidance range for FY2022 to between $10.90 and $11.10.
- Revenue increased 12.5% year-over-year to $60.1 billion.
- GAAP diluted EPS rose to $1.92 from $1.40 in the prior year.
- Adjusted diluted EPS increased by 21.3% to $2.62 from $2.16.
- Adjusted diluted EPS guidance for FY2022 raised to $10.90-$11.10.
- None.
Revenues of
Third Quarter GAAP Diluted EPS of
Adjusted Diluted EPS Guidance Range Raised to
"
"As a global healthcare solutions leader, driven by our 42,000 team members, we continue to deliver on our strategic imperatives and further strengthen our value proposition to our upstream and downstream partners,"
Third Quarter Fiscal Year 2022 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 |
211.7M |
211.7M |
Below,
Third Quarter GAAP Results
-
Revenue: In the third quarter of fiscal 2022, revenue was
$60.1 billion June 2021 acquisition of Alliance Healthcare, and a 6.0 percent increase inU.S. Healthcare Solutions revenue.
-
Gross Profit: Gross profit in the third quarter of fiscal 2022 was
$2.0 billion June 2021 acquisition of Alliance Healthcare, and an increase in gross profit inU.S. Healthcare Solutions. The increase in gross profit was partially offset by a decrease in gains related to antitrust litigation settlements, a LIFO expense in the current year period versus a LIFO credit in the previous fiscal year period, and theTurkey foreign exchange remeasurement expense due to its economy now being considered highly inflationary in the current year quarter. Gross profit as a percentage of revenue was 3.36 percent, a decrease of 18 basis points from the prior year quarter.
-
Operating Expenses: In the third quarter of fiscal 2022, operating expenses were
$1.5 billion June 2021 acquisition of Alliance Healthcare, and a goodwill impairment charge related to Profarma in the current year quarter. The increase in operating expenses was partially offset by a reduction of opioid legal settlement accruals as the prior year quarter included a$124.3 million
-
Operating Income: In the third quarter of fiscal 2022, operating income was
$487.3 million
-
Interest Expense, Net: In the third quarter of fiscal 2022, net interest expense of
$52.9 million June 2021 acquisition of Alliance Healthcare.
-
Effective Tax Rate: The effective tax rate was 23.7 percent for the third quarter of fiscal 2022. This compares to 48.5 percent in the prior year quarter, which was negatively impacted by tax reform in the
United Kingdom .
-
Diluted Earnings Per Share: Diluted earnings per share was
$1.92 $1.40
-
Diluted Shares Outstanding: Diluted weighted average shares outstanding for the third quarter of fiscal 2022 were 211.7 million, an increase of 2.8 million shares, or 1.4 percent versus the prior fiscal year third quarter resulting from stock option exercises, restricted stock vesting, and the
June 2021 issuance of 2 million shares of the Company's common stock to Walgreens Boots Alliance, Inc. ("WBA") in connection with the acquisition of Alliance Healthcare, partially offset by share repurchases.
Third Quarter Adjusted (non-GAAP) Results
-
Revenue: No adjustments were made to the GAAP presentation of revenue. In the third quarter of fiscal 2022, revenue was
$60.1 billion June 2021 acquisition of Alliance Healthcare, and a 6.0 percent increase inU.S. Healthcare Solutions revenue.
-
Adjusted Gross Profit: Adjusted gross profit in the third quarter of fiscal 2022 was
$2.1 billion June 2021 acquisition of Alliance Healthcare, andU.S. Healthcare Solutions. Adjusted gross profit as a percentage of revenue was 3.44 percent in the fiscal 2022 third quarter, an increase of 39 basis points when compared to the prior year quarter primarily driven by theJune 2021 acquisition of Alliance Healthcare and fees earned from the distribution of government-owned COVID-19 treatments.
-
Adjusted Operating Expenses: In the third quarter of fiscal 2022, adjusted operating expenses were
$1.3 billion June 2021 acquisition of Alliance Healthcare.
-
Adjusted Operating Income: In the third quarter of fiscal 2022, adjusted operating income was
$756.2 million U.S. Healthcare Solutions' operating income. Adjusted operating income as a percentage of revenue was 1.26 percent in the fiscal 2022 third quarter, an increase of 8 basis points when compared to the prior year quarter primarily due to theJune 2021 Alliance Healthcare acquisition and fees earned from the distribution of government-owned COVID-19 treatments.
-
Interest Expense, Net: No adjustments were made to the GAAP presentation of net interest expense. In the third quarter of fiscal 2022, net interest expense of
$52.9 million June 2021 acquisition of Alliance Healthcare.
- Adjusted Effective Tax Rate: The adjusted effective tax rate was 20.2 percent for the third quarter of fiscal 2022 compared to 21.0 percent in the prior year quarter.
-
Adjusted Diluted Earnings Per Share: Adjusted diluted earnings per share was
$2.62 $2.16
-
Diluted Shares Outstanding: No adjustments were made to the GAAP presentation of diluted shares outstanding. Diluted weighted average shares outstanding for the third quarter of fiscal 2022 were 211.7 million, an increase of 2.8 million shares, or 1.4 percent versus the prior fiscal year third quarter resulting from stock option exercises, restricted stock vesting, and the
June 2021 issuance of 2 million shares of the Company's common stock to WBA in connection with the acquisition of Alliance Healthcare, partially offset by share repurchases.
Segment Discussion
The Company is organized geographically based upon the products and services it provides to its customers. In the first quarter of fiscal 2022, the Company re-aligned its reporting structure under two reportable segments:
International Healthcare Solutions
Revenue in International Healthcare Solutions was
Recent Company Highlights & Milestones
-
On
June 1, 2022 ,AmerisourceBergen hosted an investor day event during which management discussed the company's purpose, strategic imperatives, ESG commitments and long-term financial growth outlook. -
Good Neighbor Pharmacy , AmerisourceBergen’s national independent pharmacy network, announced that it was ranked “Highest in Customer Satisfaction with Chain Drug Store Pharmacies” in theJ.D. Power 2022 U.S. Pharmacy Study. This marks the eleventh time thatGood Neighbor Pharmacy has earned the achievement in the last 13 years and the network's sixth consecutive win. -
Good Neighbor Pharmacy celebrated its fortieth anniversary and hostedThoughtSpot , its annual conference and tradeshow. Nearly 5,000 independent pharmacy owners and advocates participated in the event, which included continuing education sessions and certification programs, networking events and business resources. -
AmerisourceBergen launched Clinical Trial Navigator, a solution suite that assists with biopharmaceutical clinical trial recruitment within community-based specialty practices. Clinical Trial Navigator unites oncology practices and their patients with trials through digital selection, patient identification and enrollment tools. -
Americares, in partnership with the
Healthcare Distribution Alliance , presented its annual Power of Partnership Award toAmerisourceBergen in recognition of the Company's commitment to increasing access to healthcare around the world.AmerisourceBergen and theAmerisourceBergen Foundation have supported Americares since 1997, providing both product donations and financial contributions to support the organization’s ongoing health programs in theU.S. and its emergency response and recovery efforts worldwide. -
The AmerisourceBergen Foundation committed funds to theUnited Nations Foundation's Shot@Life campaign to support vaccine equity, protecting the world's most vulnerable children from devastating diseases. The funding will be used towards vaccine inventions in marginalized populations and will specifically support vaccine delivery, transportation logistics and community engagement. -
AmerisourceBergen published its first Diversity, Equity and Inclusion Summary Report, which captures progress and provides transparency on core Diversity, Equity and Inclusion measurements for workforce diversity. The report aligns with the Company's Diversity, Equity and Inclusion strategy focused on people, culture, progress and community.
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 or 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
-
Adjusted Diluted Earnings Per Share to be in the range of
$10.90 $11.10 $10.80 $11.05
Additional expectations now include:
-
U.S. Healthcare Solutions operating income to be in the range of$2.44 billion $2.48 billion 8% to10% , raising the lower end of the previous range of$2.42 billion $2.48 billion - Weighted average diluted shares to be in the range of 211 million to 211.5 million shares for the fiscal year, lowered from the previous range of approximately 212 million shares;
-
Adjusted free cash flow to be in the range of
$2.3 billion $2.5 billion $2.0 billion $2.5 billion
All other previously communicated aspects of the Company's fiscal year 2022 financial guidance and assumptions remain the same.
Dividend Declaration
The Company's Board of Directors declared a quarterly cash dividend of
Opioid Litigation
On
On
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) 200-6205. From outside
Replays of the call will be made available via telephone and webcast. A replay of the webcast will be posted on investor.amerisourcebergen.com approximately one hour after the completion of the call and will remain available for one year. The telephone replay will also be available approximately one hour after the completion of the call and will remain available for seven days. To access the telephone replay from within the
Upcoming Investor Events
-
Baird Healthcare Conference ,September 13, 2022 ; and -
Morgan Stanley Healthcare Conference ,September 14, 2022 .
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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (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: the effect of and uncertainties related to the ongoing COVID-19 pandemic (including any government responses thereto) and any continued recovery from the impact of the COVID-19 pandemic; our ability to achieve and maintain profitability in the future; our ability to respond to general economic conditions, including elevated levels of inflation; our ability to manage our growth effectively and our expectations regarding the development and expansion of our business; the impact on our business of the regulatory environment and complexities with compliance; 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 |
|
$ |
60,064,601 |
|
|
|
|
$ |
53,405,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of goods sold |
|
|
58,049,232 |
|
|
|
|
|
51,517,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit 1 |
|
|
2,015,369 |
|
|
|
|
|
1,888,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||
Distribution, selling, and administrative |
|
|
1,212,152 |
|
|
|
|
|
913,414 |
|
|
|
|
|
Depreciation and amortization |
|
|
172,114 |
|
|
|
|
|
127,101 |
|
|
|
|
|
Employee severance, litigation, and other 2 |
|
|
67,870 |
|
|
|
|
|
226,964 |
|
|
|
|
|
|
|
|
75,936 |
|
|
|
|
|
— |
|
|
|
|
|
Total operating expenses |
|
|
1,528,072 |
|
|
|
|
|
1,267,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
487,297 |
|
|
|
|
|
620,727 |
|
|
|
|
(21.5)% |
|
|
|
|
|
|
|
|
|
|
|
||||
Other income, net 4 |
|
|
(41,888 |
) |
|
|
|
|
(4,141 |
) |
|
|
|
|
Interest expense, net |
|
|
52,862 |
|
|
|
|
|
51,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
476,323 |
|
|
|
|
|
573,530 |
|
|
|
|
(16.9)% |
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
113,120 |
|
|
|
|
|
278,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
|
363,203 |
|
|
|
|
|
295,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss (income) attributable to noncontrolling interests |
|
|
43,761 |
|
|
|
|
|
(3,326 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to |
|
$ |
406,964 |
|
|
|
|
$ |
292,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.95 |
|
|
|
|
$ |
1.42 |
|
|
|
|
|
Diluted |
|
$ |
1.92 |
|
|
|
|
$ |
1.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
208,885 |
|
|
|
|
|
206,156 |
|
|
|
|
|
Diluted |
|
|
211,738 |
|
|
|
|
|
208,912 |
|
|
|
|
|
________________________________________ |
||
1 |
Includes |
|
2 |
Consists of |
|
3 |
The goodwill impairment is related to the Company's non-wholly-owned subsidiary in |
|
4 |
Includes a |
|
|
||||||||||||||
FINANCIAL SUMMARY |
||||||||||||||
(in thousands, except per share data) |
||||||||||||||
(unaudited) |
||||||||||||||
|
|
Nine
|
|
% of
|
|
Nine
|
|
% of
|
|
%
|
||||
Revenue |
|
$ |
177,412,857 |
|
|
|
|
$ |
155,076,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of goods sold |
|
|
171,102,049 |
|
|
|
|
|
150,202,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit 1 |
|
|
6,310,808 |
|
|
|
|
|
4,873,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||
Distribution, selling, and administrative |
|
|
3,585,500 |
|
|
|
|
|
2,378,563 |
|
|
|
|
|
Depreciation and amortization |
|
|
523,333 |
|
|
|
|
|
327,451 |
|
|
|
|
|
Employee severance, litigation, and other 2 |
|
|
209,234 |
|
|
|
|
|
375,501 |
|
|
|
|
|
Impairment of assets |
|
|
4,946 |
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
75,936 |
|
|
|
|
|
— |
|
|
|
|
|
Total operating expenses |
|
|
4,398,949 |
|
|
|
|
|
3,081,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
1,911,859 |
|
|
|
|
|
1,792,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other (income) loss, net 4 |
|
|
(48,008 |
) |
|
|
|
|
4,901 |
|
|
|
|
|
Interest expense, net |
|
|
159,150 |
|
|
|
|
|
119,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
1,800,717 |
|
|
|
|
|
1,667,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
432,853 |
|
|
|
|
|
559,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
|
1,367,864 |
|
|
|
|
|
1,108,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss (income) attributable to noncontrolling interests |
|
|
36,219 |
|
|
|
|
|
(5,926 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to |
|
$ |
1,404,083 |
|
|
|
|
$ |
1,102,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
6.72 |
|
|
|
|
$ |
5.37 |
|
|
|
|
|
Diluted |
|
$ |
6.63 |
|
|
|
|
$ |
5.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
208,895 |
|
|
|
|
|
205,255 |
|
|
|
|
|
Diluted |
|
|
211,633 |
|
|
|
|
|
207,679 |
|
|
|
|
|
________________________________________ |
||
1 |
Includes a |
|
2 |
Consists of |
|
3 |
The goodwill impairment is related to the Company's non-wholly-owned subsidiary in |
|
4 |
Includes a |
|
|
|||||||||||||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating
|
|
Income
|
|
Income Tax
|
|
Net Loss
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||||
GAAP |
|
$ |
2,015,369 |
|
|
$ |
1,528,072 |
|
|
$ |
487,297 |
|
|
$ |
476,323 |
|
|
$ |
113,120 |
|
|
$ |
43,761 |
|
|
$ |
406,964 |
|
|
$ |
1.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains from antitrust litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(60 |
) |
|
|
— |
|
|
|
60 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
27,618 |
|
|
|
— |
|
|
|
27,618 |
|
|
|
33,423 |
|
|
|
— |
|
|
|
— |
|
|
|
33,423 |
|
|
|
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
LIFO expense |
|
|
23,070 |
|
|
|
— |
|
|
|
23,070 |
|
|
|
23,070 |
|
|
|
4,142 |
|
|
|
— |
|
|
|
18,928 |
|
|
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(74,408 |
) |
|
|
74,408 |
|
|
|
74,408 |
|
|
|
24,894 |
|
|
|
(538 |
) |
|
|
48,976 |
|
|
|
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Employee severance, litigation, and other |
|
|
— |
|
|
|
(67,870 |
) |
|
|
67,870 |
|
|
|
67,870 |
|
|
|
21,439 |
|
|
|
— |
|
|
|
46,431 |
|
|
|
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
— |
|
|
|
(75,936 |
) |
|
|
75,936 |
|
|
|
75,936 |
|
|
|
— |
|
|
|
(47,004 |
) |
|
|
28,932 |
|
|
|
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gain on sale of businesses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(59,973 |
) |
|
|
(13,193 |
) |
|
|
— |
|
|
|
(46,780 |
) |
|
|
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Tax reform 1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,886 |
|
|
|
(8,954 |
) |
|
|
— |
|
|
|
17,840 |
|
|
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP |
|
$ |
2,066,057 |
|
|
$ |
1,309,858 |
|
|
$ |
756,199 |
|
|
$ |
699,943 |
|
|
$ |
141,388 |
|
|
$ |
(3,781 |
) |
|
$ |
554,774 |
|
|
$ |
2.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP % change vs. prior year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
Gross profit |
|
|
|
|
Operating expenses |
|
|
|
|
Operating income |
|
|
|
|
________________________________________ |
||
1 |
Includes tax expense relating to Swiss tax reform and a loss on the currency remeasurement of the related deferred tax assets, which is recorded within Other (Income) Loss, Net. |
|
|
||
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
|
|
Income Before
|
|
Income Tax
|
|
Net Income
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||||
GAAP |
|
$ |
1,888,206 |
|
|
$ |
1,267,479 |
|
|
$ |
620,727 |
|
|
$ |
573,530 |
|
|
$ |
278,082 |
|
|
$ |
(3,326 |
) |
|
$ |
292,122 |
|
|
$ |
1.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains from antitrust litigation settlements |
|
|
(147,432 |
) |
|
|
— |
|
|
|
(147,432 |
) |
|
|
(147,432 |
) |
|
|
(15,266 |
) |
|
|
— |
|
|
|
(132,166 |
) |
|
|
(0.63 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
LIFO credit |
|
|
(113,920 |
) |
|
|
— |
|
|
|
(113,920 |
) |
|
|
(113,920 |
) |
|
|
(6,692 |
) |
|
|
— |
|
|
|
(107,228 |
) |
|
|
(0.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(44,282 |
) |
|
|
44,282 |
|
|
|
44,282 |
|
|
|
(4,355 |
) |
|
|
(890 |
) |
|
|
47,747 |
|
|
|
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Employee severance, litigation, and other |
|
|
— |
|
|
|
(226,964 |
) |
|
|
226,964 |
|
|
|
226,964 |
|
|
|
6,034 |
|
|
|
— |
|
|
|
220,930 |
|
|
|
1.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Tax reform 1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,243 |
) |
|
|
(136,588 |
) |
|
|
— |
|
|
|
130,345 |
|
|
|
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP |
|
$ |
1,626,854 |
|
|
$ |
996,233 |
|
|
$ |
630,621 |
|
|
$ |
577,181 |
|
|
$ |
121,215 |
|
|
$ |
(4,216 |
) |
|
$ |
451,750 |
|
|
$ |
2.16 |
|
2 |
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
Gross profit |
|
|
|
|
Operating expenses |
|
|
|
|
Operating income |
|
|
|
|
________________________________________ |
||
1 |
Includes |
|
|
||
2 |
The sum of the components does not equal the total due to rounding. |
|
|
||
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release. |
||
|
|||||||||||||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||||||||||||
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating
|
|
Income
|
|
Income Tax
|
|
Net Loss
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||||
GAAP |
|
$ |
6,310,808 |
|
|
$ |
4,398,949 |
|
|
$ |
1,911,859 |
|
|
$ |
1,800,717 |
|
|
$ |
432,853 |
|
|
$ |
36,219 |
|
|
$ |
1,404,083 |
|
|
$ |
6.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains from antitrust litigation settlements |
|
|
(1,835 |
) |
|
|
— |
|
|
|
(1,835 |
) |
|
|
(1,835 |
) |
|
|
(487 |
) |
|
|
— |
|
|
|
(1,348 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
27,618 |
|
|
|
— |
|
|
|
27,618 |
|
|
|
33,423 |
|
|
|
— |
|
|
|
— |
|
|
|
33,423 |
|
|
|
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
LIFO credit |
|
|
(37,668 |
) |
|
|
— |
|
|
|
(37,668 |
) |
|
|
(37,668 |
) |
|
|
(10,000 |
) |
|
|
— |
|
|
|
(27,668 |
) |
|
|
(0.13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(231,866 |
) |
|
|
231,866 |
|
|
|
231,866 |
|
|
|
61,555 |
|
|
|
(4,092 |
) |
|
|
166,219 |
|
|
|
0.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Employee severance, litigation, and other |
|
|
— |
|
|
|
(209,234 |
) |
|
|
209,234 |
|
|
|
209,234 |
|
|
|
45,836 |
|
|
|
— |
|
|
|
163,398 |
|
|
|
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
— |
|
|
|
(75,936 |
) |
|
|
75,936 |
|
|
|
75,936 |
|
|
|
— |
|
|
|
(47,004 |
) |
|
|
28,932 |
|
|
|
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impairment of assets |
|
|
— |
|
|
|
(4,946 |
) |
|
|
4,946 |
|
|
|
4,946 |
|
|
|
— |
|
|
|
— |
|
|
|
4,946 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gain on sale of businesses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(59,973 |
) |
|
|
(13,193 |
) |
|
|
— |
|
|
|
(46,780 |
) |
|
|
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Certain discrete tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,979 |
) |
|
|
6,840 |
|
|
|
25,819 |
|
|
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Tax reform 1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,316 |
|
|
|
(26,158 |
) |
|
|
— |
|
|
|
32,474 |
|
|
|
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP |
|
$ |
6,298,923 |
|
|
$ |
3,876,967 |
|
|
$ |
2,421,956 |
|
|
$ |
2,262,962 |
|
|
$ |
471,427 |
|
|
$ |
(8,037 |
) |
|
$ |
1,783,498 |
|
|
$ |
8.43 |
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP % change vs. prior year |
|
|
38.0 |
% |
|
|
48.4 |
% |
|
|
23.9 |
% |
|
|
23.6 |
% |
|
|
19.0 |
% |
|
|
|
|
25.0 |
% |
|
|
22.7 |
% |
|
||
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
Gross profit |
|
|
|
|
Operating expenses |
|
|
|
|
Operating income |
|
|
|
|
________________________________________ |
||
1 |
Includes tax expense relating to Swiss tax reform and a loss on the currency remeasurement of the related deferred tax assets, which is recorded within Other (Income) Loss, Net. |
|
|
||
2 |
The sum of the components does not equal the total due to rounding. |
|
|
||
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release. |
||
|
|||||||||||||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||||||||||||
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating
|
|
Operating
|
|
Income Before
|
|
Income Tax
|
|
Net Income
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||||
GAAP |
|
$ |
4,873,817 |
|
|
$ |
3,081,515 |
|
|
$ |
1,792,302 |
|
|
$ |
1,667,923 |
|
|
$ |
559,763 |
|
|
$ |
(5,926 |
) |
|
$ |
1,102,234 |
|
|
$ |
5.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains from antitrust litigation settlements |
|
|
(147,432 |
) |
|
|
— |
|
|
|
(147,432 |
) |
|
|
(147,432 |
) |
|
|
(15,266 |
) |
|
|
— |
|
|
|
(132,166 |
) |
|
|
(0.64 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
LIFO credit |
|
|
(160,565 |
) |
|
|
— |
|
|
|
(160,565 |
) |
|
|
(160,565 |
) |
|
|
(16,625 |
) |
|
|
— |
|
|
|
(143,940 |
) |
|
|
(0.69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(94,289 |
) |
|
|
94,289 |
|
|
|
94,289 |
|
|
|
3,043 |
|
|
|
(1,764 |
) |
|
|
89,482 |
|
|
|
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Employee severance, litigation, and other |
|
|
— |
|
|
|
(375,501 |
) |
|
|
375,501 |
|
|
|
375,501 |
|
|
|
36,502 |
|
|
|
— |
|
|
|
338,999 |
|
|
|
1.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Certain discrete tax benefits 1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,425 |
|
|
|
— |
|
|
|
(20,425 |
) |
|
|
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Tax reform 2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,086 |
|
|
|
(191,607 |
) |
|
|
— |
|
|
|
192,693 |
|
|
|
0.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted Non-GAAP |
|
$ |
4,565,820 |
|
|
$ |
2,611,725 |
|
|
$ |
1,954,095 |
|
|
$ |
1,830,802 |
|
|
$ |
396,235 |
|
|
$ |
(7,690 |
) |
|
$ |
1,426,877 |
|
|
$ |
6.87 |
|
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
Gross profit |
|
|
|
|
Operating expenses |
|
|
|
|
Operating income |
|
|
|
|
________________________________________ |
||
1 |
Represents an adjustment of discrete tax benefits primarily attributable to the income tax deductions resulting from the permanent shutdown of the PharMEDium business. |
|
|
||
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. |
||
|
||||||||||
SUMMARY SEGMENT INFORMATION |
||||||||||
(in thousands) |
||||||||||
(unaudited) |
||||||||||
|
|
Three Months Ended |
||||||||
Revenue |
|
2022 |
|
2021 |
|
% Change |
||||
|
|
$ |
53,389,345 |
|
|
$ |
50,375,842 |
|
|
|
International Healthcare Solutions |
|
|
6,676,726 |
|
|
|
3,030,769 |
|
|
|
Intersegment eliminations |
|
|
(1,470 |
) |
|
|
(916 |
) |
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
60,064,601 |
|
|
$ |
53,405,695 |
|
|
|
|
|
Three Months Ended |
||||||||
Operating income |
|
2022 |
|
2021 |
|
% Change |
||||
|
|
$ |
579,927 |
|
|
$ |
529,790 |
|
|
|
International Healthcare Solutions |
|
|
176,272 |
|
|
|
100,831 |
|
|
|
Total segment operating income |
|
|
756,199 |
|
|
|
630,621 |
|
|
|
|
|
|
|
|
|
|
||||
Gains from antitrust litigation settlements |
|
|
— |
|
|
|
147,432 |
|
|
|
LIFO (expense) credit |
|
|
(23,070 |
) |
|
|
113,920 |
|
|
|
|
|
|
(27,618 |
) |
|
|
— |
|
|
|
Acquisition-related intangibles amortization |
|
|
(74,408 |
) |
|
|
(44,282 |
) |
|
|
Employee severance, litigation, and other |
|
|
(67,870 |
) |
|
|
(226,964 |
) |
|
|
|
|
|
(75,936 |
) |
|
|
— |
|
|
|
Operating income |
|
$ |
487,297 |
|
|
$ |
620,727 |
|
|
|
|
|
|
|
|
|
|
||||
Percentages of Revenue: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Gross profit |
|
|
2.49 |
% |
|
|
2.44 |
% |
|
|
Operating expenses |
|
|
1.40 |
% |
|
|
1.38 |
% |
|
|
Operating income |
|
|
1.09 |
% |
|
|
1.05 |
% |
|
|
|
|
|
|
|
|
|
||||
International Healthcare Solutions |
|
|
|
|
|
|
||||
Gross profit |
|
|
11.05 |
% |
|
|
13.20 |
% |
|
|
Operating expenses |
|
|
8.41 |
% |
|
|
9.87 |
% |
|
|
Operating income |
|
|
2.64 |
% |
|
|
3.33 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Gross profit |
|
|
3.36 |
% |
|
|
3.54 |
% |
|
|
Operating expenses |
|
|
2.54 |
% |
|
|
2.37 |
% |
|
|
Operating income |
|
|
0.81 |
% |
|
|
1.16 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Adjusted gross profit |
|
|
3.44 |
% |
|
|
3.05 |
% |
|
|
Adjusted operating expenses |
|
|
2.18 |
% |
|
|
1.87 |
% |
|
|
Adjusted operating income |
|
|
1.26 |
% |
|
|
1.18 |
% |
|
|
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 |
||||||||||
(in thousands) |
||||||||||
(unaudited) |
||||||||||
|
|
Nine Months Ended |
||||||||
Revenue |
|
2022 |
|
2021 |
|
% Change |
||||
|
|
$ |
157,311,755 |
|
|
$ |
150,114,010 |
|
|
|
International Healthcare Solutions |
|
|
20,104,199 |
|
|
|
4,964,112 |
|
|
|
Intersegment eliminations |
|
|
(3,097 |
) |
|
|
(1,700 |
) |
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
177,412,857 |
|
|
$ |
155,076,422 |
|
|
|
|
|
Nine Months Ended |
||||||||
Operating income |
|
2022 |
|
2021 |
|
% Change |
||||
|
|
$ |
1,878,556 |
|
|
$ |
1,750,432 |
|
|
|
International Healthcare Solutions |
|
|
543,400 |
|
|
|
203,663 |
|
|
|
Total segment operating income |
|
|
2,421,956 |
|
|
|
1,954,095 |
|
|
|
|
|
|
|
|
|
|
||||
Gains from antitrust litigation settlements |
|
|
1,835 |
|
|
|
147,432 |
|
|
|
LIFO credit |
|
|
37,668 |
|
|
|
160,565 |
|
|
|
|
|
|
(27,618 |
) |
|
|
— |
|
|
|
Acquisition-related intangibles amortization |
|
|
(231,866 |
) |
|
|
(94,289 |
) |
|
|
Employee severance, litigation, and other |
|
|
(209,234 |
) |
|
|
(375,501 |
) |
|
|
Impairment of assets |
|
|
(4,946 |
) |
|
|
— |
|
|
|
|
|
|
(75,936 |
) |
|
|
— |
|
|
|
Operating income |
|
$ |
1,911,859 |
|
|
$ |
1,792,302 |
|
|
|
|
|
|
|
|
|
|
||||
Percentages of Revenue: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Gross profit |
|
|
2.59 |
% |
|
|
2.52 |
% |
|
|
Operating expenses |
|
|
1.39 |
% |
|
|
1.35 |
% |
|
|
Operating income |
|
|
1.19 |
% |
|
|
1.17 |
% |
|
|
|
|
|
|
|
|
|
||||
International Healthcare Solutions |
|
|
|
|
|
|
||||
Gross profit |
|
|
11.09 |
% |
|
|
15.81 |
% |
|
|
Operating expenses |
|
|
8.39 |
% |
|
|
11.71 |
% |
|
|
Operating income |
|
|
2.70 |
% |
|
|
4.10 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Gross profit |
|
|
3.56 |
% |
|
|
3.14 |
% |
|
|
Operating expenses |
|
|
2.48 |
% |
|
|
1.99 |
% |
|
|
Operating income |
|
|
1.08 |
% |
|
|
1.16 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Adjusted gross profit |
|
|
3.55 |
% |
|
|
2.94 |
% |
|
|
Adjusted operating expenses |
|
|
2.19 |
% |
|
|
1.68 |
% |
|
|
Adjusted operating income |
|
|
1.37 |
% |
|
|
1.26 |
% |
|
|
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) |
|||||
|
|
|
|
||
|
2022 |
|
2021 |
||
ASSETS |
|
|
|
||
|
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
3,034,233 |
|
$ |
2,547,142 |
Accounts receivable, net |
|
18,624,104 |
|
|
18,167,175 |
Inventories |
|
15,823,360 |
|
|
15,368,352 |
Right to recover assets |
|
1,565,883 |
|
|
1,271,557 |
Prepaid expenses and other |
|
696,946 |
|
|
1,448,383 |
Total current assets |
|
39,744,526 |
|
|
38,802,609 |
|
|
|
|
||
Property and equipment, net |
|
2,104,765 |
|
|
2,162,961 |
|
|
13,240,098 |
|
|
14,287,458 |
Deferred income taxes |
|
252,379 |
|
|
290,791 |
Other long-term assets |
|
1,831,862 |
|
|
1,793,986 |
|
|
|
|
||
Total assets |
$ |
57,173,630 |
|
$ |
57,337,805 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
|
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
39,305,668 |
|
$ |
38,009,954 |
Other current liabilities |
|
2,427,076 |
|
|
3,048,474 |
Short-term debt |
|
1,421,566 |
|
|
300,213 |
Total current liabilities |
|
43,154,310 |
|
|
41,358,641 |
|
|
|
|
||
Long-term debt |
|
4,640,131 |
|
|
6,383,711 |
|
|
|
|
||
Accrued income taxes |
|
306,356 |
|
|
281,070 |
Deferred income taxes |
|
1,612,325 |
|
|
1,685,296 |
Other long-term liabilities |
|
1,033,018 |
|
|
1,082,723 |
Accrued litigation liability |
|
5,909,626 |
|
|
5,961,953 |
|
|
|
|
||
Total equity |
|
517,864 |
|
|
584,411 |
|
|
|
|
||
Total liabilities and stockholders' equity |
$ |
57,173,630 |
|
$ |
57,337,805 |
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
2022 |
|
2021 |
||||
Operating Activities: |
|
|
|
||||
Net income |
$ |
1,367,864 |
|
|
$ |
1,108,160 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
704,628 |
|
|
|
599,953 |
|
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: |
|
|
|
||||
Accounts receivable |
|
(1,550,962 |
) |
|
|
(116,845 |
) |
Inventories |
|
(712,849 |
) |
|
|
(594,708 |
) |
Accounts payable |
|
2,074,612 |
|
|
|
242,419 |
|
Other, net |
|
(344,675 |
) |
|
|
417,790 |
|
Net cash provided by operating activities |
|
1,538,618 |
|
|
|
1,656,769 |
|
|
|
|
|
||||
Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(322,732 |
) |
|
|
(273,407 |
) |
Cost of acquired companies, net of cash acquired |
|
(124,158 |
) |
|
|
(5,536,717 |
) |
Cost of equity investments |
|
— |
|
|
|
(162,620 |
) |
Proceeds from the sale of businesses |
|
258,082 |
|
|
|
— |
|
Other, net |
|
(4,899 |
) |
|
|
2,516 |
|
Net cash used in investing activities |
|
(193,707 |
) |
|
|
(5,970,228 |
) |
|
|
|
|
||||
Financing Activities: |
|
|
|
||||
Net debt (repayments) borrowings |
|
(576,303 |
) |
|
|
2,620,315 |
|
Purchases of common stock 1 |
|
(248,422 |
) |
|
|
(82,150 |
) |
Exercises of stock options |
|
83,954 |
|
|
|
164,297 |
|
Cash dividends on common stock |
|
(295,239 |
) |
|
|
(274,041 |
) |
Other, net |
|
(43,309 |
) |
|
|
(30,965 |
) |
Net cash (used in) provided by financing activities |
|
(1,079,319 |
) |
|
|
2,397,456 |
|
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(33,056 |
) |
|
|
— |
|
|
|
|
|
||||
Increase (decrease) in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale |
|
232,536 |
|
|
|
(1,916,003 |
) |
Less: Increase in cash classified within assets held for sale |
|
(610 |
) |
|
|
— |
|
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
231,926 |
|
|
|
(1,916,003 |
) |
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at beginning of period 2 |
|
3,070,128 |
|
|
|
4,597,746 |
|
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at end of period 2 |
$ |
3,302,054 |
|
|
$ |
2,681,743 |
|
________________________________________ |
||
1 |
Additional purchases made in |
|
2 |
The following represents a reconciliation of cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents, and restricted cash used in the Condensed Consolidated Statements of Cash Flows: |
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
3,034,233 |
|
$ |
2,547,142 |
|
$ |
2,553,217 |
|
$ |
4,597,746 |
Restricted cash (included in Prepaid Expenses and Other) |
|
|
207,722 |
|
|
462,986 |
|
|
128,526 |
|
|
— |
Restricted cash (included in Other Long-Term Assets) |
|
|
60,099 |
|
|
60,000 |
|
|
— |
|
|
— |
Cash, cash equivalents, and restricted cash |
|
$ |
3,302,054 |
|
$ |
3,070,128 |
|
$ |
2,681,743 |
|
$ |
4,597,746 |
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 gains from antitrust litigation settlements,
Turkey highly inflationary impact and LIFO expense (credit). 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. Gains from antitrust litigation settlements,Turkey highly inflationary impact and LIFO expense (credit) are excluded because the Company cannot control the amounts recognized or timing of these items. Gains from antitrust litigation settlements relate 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. 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.
- 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, goodwill impairment and impairment of assets. Adjusted operating expense margin is the ratio of adjusted operating expenses to total revenue. Acquisition-related intangibles amortization is excluded because it is a non-cash item and does not reflect the operating performance of the acquired companies. We exclude employee severance amounts that relate to unpredictable and/or non-recurring business restructuring. We exclude the amount of litigation settlements and other expenses, goodwill impairment, 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.
- 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 gain (loss) on the sale of businesses and the gain (loss) on the currency remeasurement of the deferred tax asset relating to Swiss tax reform 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.
-
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 expense (benefits) primarily attributable to foreign valuation allowance adjustments for the nine months ended
June 30, 2022 and the income tax deduction recognized in connection with the permanent shutdown of PharMEDium are also excluded from adjusted income tax expense for the nine months endedJune 30, 2021 . Further, certain expenses relating to tax reform inSwitzerland are excluded from adjusted income tax expense for the three and nine months endedJune 30, 2022 , and certain expenses relating to tax reform inSwitzerland and theUnited Kingdom are excluded from adjusted income tax expense for the three and nine months endedJune 30, 2021 . Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Company’s performance because the adjustments are unusual, non-operating, unpredictable, non-recurring or non-cash in nature.
- Adjusted net income/loss attributable to noncontrolling interests: Adjusted net income/loss attributable to noncontrolling interests excludes the non-controlling interest portion of the same items described above. Management believes that this non-GAAP financial measure is useful to investors because it facilitates the calculation of adjusted net income attributable to the Company.
- Adjusted net income attributable to the Company: Adjusted net income attributable to the Company is a non-GAAP financial measure that excludes the same items that are described above. Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Company's performance because the adjustments are unusual, non-operating, unpredictable, non-recurring or non-cash in nature.
-
Adjusted diluted earnings per share: Adjusted diluted earnings per share excludes the per share impact of adjustments including gains from antitrust litigation settlements;
Turkey highly inflationary impact; LIFO expense (credit); acquisition-related intangibles amortization; employee severance, litigation, and other; goodwill impairment; impairment of assets; gain on sale of businesses; and the loss on the currency remeasurement related to Swiss tax reform, 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 expense (benefits) primarily attributable to foreign valuation allowance adjustments for the nine months endedJune 30, 2022 and the income tax deduction recognized in connection with the permanent shutdown of PharMEDium for the nine months endedJune 30, 2021 are excluded from adjusted diluted earnings per share. Further, the per share impact of certain expenses relating to tax reform inSwitzerland are also excluded from adjusted diluted earnings per share for the three and nine months endedJune 30, 2022 , and the per share impact of certain expenses relating to tax reform inSwitzerland and theUnited Kingdom are also excluded from adjusted diluted earnings per share for the three and nine months endedJune 30, 2021 . 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. The Company updated its non-GAAP fiscal year 2022 guidance for diluted earnings per share. The guidance for this metric excludes the same or similar items as those that are excluded from the historical non-GAAP financial measure, 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. The Company does not provide forward looking guidance on a GAAP basis for diluted earnings per share because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, LIFO expense (credit) is largely dependent upon the future inflation or deflation of brand and generic pharmaceuticals, which is out of the Company’s control, and acquisition-related intangibles amortization depends on the timing and amount of future acquisitions, which cannot be reasonably estimated.
- Adjusted Free Cash Flow: Adjusted free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities, excluding significant unpredictable or non-recurring cash payments or receipts relating to legal settlements, minus capital expenditures. Adjusted free cash flow is used internally by management for measuring operating cash flow generation and setting performance targets and has historically been used as one of the means of providing guidance on possible future cash flows. The Company has updated its non-GAAP fiscal year 2022 guidance for adjusted free cash flow. The Company does not provide forward looking guidance on a GAAP basis for free cash flow because the timing and amount of favorable and unfavorable settlements excluded from this metric, the probable significance of which cannot be determined, are unavailable and cannot be reasonably estimated.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220802006008/en/
Senior Vice President, Investor Relations
610-727-3693
bmurphy@amerisourcebergen.com
Source:
FAQ
What were AmerisourceBergen's Q3 FY2022 revenues?
What is the adjusted diluted EPS for AmerisourceBergen in Q3 FY2022?
What guidance did AmerisourceBergen provide for FY2022 adjusted diluted EPS?
How did AmerisourceBergen's GAAP diluted EPS change in Q3 FY2022?
