10-KPeriod: FY2012

Cencora, Inc. Annual Report, Year Ended Sep 30, 2012

Filed November 27, 2012For Securities:COR

Summary

Cencora, Inc. (formerly AmerisourceBergen Corporation) reported a fiscal year 2012 revenue of $79.5 billion, a slight decrease of 0.6% from the prior year. This was primarily driven by a 3% decline in the AmerisourceBergen Drug Corporation (ABDC) segment, partly offset by a 6% increase in the AmerisourceBergen Specialty Group (ABSG) and contributions from recent acquisitions. The company strategically expanded its services by acquiring TheraCom, LLC, and World Courier Group, Inc., aiming to strengthen its consulting and specialty distribution businesses, respectively. Despite the slight revenue dip, gross profit increased by 6.7% due to contributions from these acquisitions and growth in generic programs, although this was partially offset by a decline in certain specialty oncology drugs. The company's strategic focus remains on optimizing its pharmaceutical distribution and specialty distribution segments, supported by ongoing investments in technology and operational efficiency. Management anticipates continued revenue growth in fiscal year 2013, driven by a new contract with Express Scripts.

Financial Highlights

56 data points
Beta

Revenue

$78.08B

3.4% Gross Margin

Net Income

$718.99M

0.9% Net Margin

EPS (Diluted)

$2.80

Total Assets

$15.44B

Cash & Equivalents

$1.07B

Free Cash Flow

$1.17B

Financial Statements
Beta
Revenue$78.08B
Cost of Revenue$75.45B
Gross Profit$2.63B
SG&A Expenses$1.15B
Operating Income$1.30B
Net Income$718.99M
EPS (Basic)$2.84
EPS (Diluted)$2.80
Shares Outstanding (Basic)252.91M
Shares Outstanding (Diluted)256.90M

Key Highlights

  • 1Revenue for fiscal year 2012 was $79.5 billion, a marginal decrease of 0.6% compared to the previous year.
  • 2Gross profit increased by 6.7% to $2.67 billion, driven by acquisitions and improved generic sales, despite a decline in certain specialty oncology drugs.
  • 3The company completed strategic acquisitions of TheraCom, LLC, and World Courier Group, Inc., expanding its consulting and global logistics capabilities.
  • 4Operating income increased by 5.6% to $1.25 billion.
  • 5The company repurchased $1.16 billion of its common stock under its share repurchase programs during fiscal year 2012.
  • 6Diluted earnings per share from continuing operations increased by 10% to $2.76.
  • 7The company declared a quarterly cash dividend of $0.21 per share, a significant increase from previous periods.

Frequently Asked Questions

In fiscal year 2012, Cencora reported revenue of $79.5 billion, a slight decrease of 0.6% from the prior year. Gross profit increased by 6.7% to $2.67 billion, and operating income rose by 5.6% to $1.25 billion. Diluted earnings per share from continuing operations showed a healthy increase of 10% to $2.76, indicating improved profitability despite the revenue dip.

Cencora focused on expanding its service offerings through strategic acquisitions. In November 2011, it acquired TheraCom, LLC, to bolster its consulting and patient support services, and in April 2012, it acquired World Courier Group, Inc., a global specialty transportation and logistics provider. These acquisitions were aimed at strengthening its market position and diversifying its revenue streams.

Cencora actively managed its capital structure, repaying significant portions of its debt and continuing its share repurchase program. The company repurchased $1.16 billion of its common stock during fiscal year 2012. Furthermore, the company demonstrated a commitment to shareholder returns by increasing its quarterly cash dividend by 62% to $0.21 per share.

Cencora identified several key risks, including intense competition that could erode profit margins, the impact of inflation on branded pharmaceutical prices and deflation on generic prices, potential adverse effects from deteriorating economic conditions, and the risk of losing significant customers. Regulatory changes and compliance with healthcare laws were also noted as significant risk factors.