01—Abstract
Summary
Summary of the 10-K filed November 27, 2012. Cited figures are marked; the original filing is the authoritative source.
Cencora, Inc. (formerly AmerisourceBergen Corporation) reported a fiscal year 2012 revenue of $79.5 billiona, a slight decrease of 0.6% from the prior year.
This was primarily driven by a 3%b 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.
02—Key points
Key Highlights
- Revenue for fiscal year 2012 was $79.5 billion, a marginal decrease of 0.6% compared to the previous year.
- Gross profit increased by 6.7% to $2.67 billion, driven by acquisitions and improved generic sales, despite a decline in certain specialty oncology drugs.
- The company completed strategic acquisitions of TheraCom, LLC, and World Courier Group, Inc., expanding its consulting and global logistics capabilities.
- Operating income increased by 5.6% to $1.25 billion.
- The company repurchased $1.16 billion of its common stock under its share repurchase programs during fiscal year 2012.
- Diluted earnings per share from continuing operations increased by 10% to $2.76.
- The company declared a quarterly cash dividend of $0.21 per share, a significant increase from previous periods.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Cencora, Inc. kept $0.01.
- Revenue$78.08B100.0%
- Cost of revenue−$75.45B96.6%
- Gross profit$2.63B3.4%
- Operating costs−$1.33B1.7%
- Operating income$1.30B1.7%
- Interest, other & tax−$584.6M0.7%
- Net income$719.0M0.9%
Where FY2012 revenue went
$78.08B- Cost of revenue: $75.45B, 97% of revenue
- Net income: $719.0M, 0.9% of revenue
- SG&A: $1.15B, 1.5% of revenue
- Interest, other & tax: $584.6M, 0.7% of revenue
Kept 0.9% as net incomeNet income $719.0M · 0.9%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed November 27, 2012Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $78.08B$78.70B | −0.8% |
| Cost of Revenue | $75.45B$76.24B | −1.0% |
| Gross Profit | $2.63B$2.46B | +7.1% |
| SG&A Expenses | $1.15B$1.14B | +1.3% |
| Operating Income | $1.30B$1.19B | +9.6% |
| Net Income | $718.99M$706.62M | +1.7% |
| EPS (Basic) | $2.84$2.59 | +9.7% |
| EPS (Diluted) | $2.80$2.54 | +10.2% |
| Shares Outstanding (Basic) | 252.91M272.47M | −7.2% |
| Shares Outstanding (Diluted) | 256.90M277.72M | −7.5% |
05—Questions
Frequently Asked Questions
What was Cencora's (AmerisourceBergen) overall financial performance in fiscal year 2012?
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.
What were the key strategic moves made by Cencora during fiscal year 2012?
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.
How did the company manage its capital and shareholder returns in fiscal year 2012?
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.
What are the primary risks Cencora highlighted in its filing?
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.
06—Continue