Summary
AmerisourceBergen Corporation (COR) reported its first quarter results for fiscal year 2009, ending March 31, 2009. Total revenue for the quarter was $17.31 billion, a slight decrease of 2.5% year-over-year. This decline was primarily attributed to the loss of a significant contract with a national retail drug chain and fewer business days in the quarter. Despite the revenue dip, gross profit increased by 2.8% to $552.5 million, driven by strong performance in generic programs and increased contributions from fee-for-service agreements. Operating income also saw a healthy increase of 5.6% to $248.3 million. Net income for the quarter was $143.4 million, resulting in diluted earnings per share of $0.94. The company continued its share repurchase program, demonstrating a commitment to returning capital to shareholders. Management highlighted ongoing efforts in business transformation and cost efficiency. While acknowledging broader economic uncertainties, the company projects continued revenue growth for fiscal year 2009, supported by the specialty group and a gradual recovery in the distribution segment.
Financial Highlights
28 data points| Revenue | $17.31B |
| Cost of Revenue | $16.76B |
| Gross Profit | $552.47M |
| SG&A Expenses | $279.21M |
| Operating Income | $248.27M |
| Net Income | $143.39M |
| EPS (Basic) | $0.47 |
| EPS (Diluted) | $0.47 |
| Shares Outstanding (Basic) | 302.45M |
| Shares Outstanding (Diluted) | 304.58M |
Key Highlights
- 1Total revenue for the quarter ended March 31, 2009, was $17.31 billion, a 2.5% decrease compared to the prior year quarter, largely due to a lost contract with a national retail drug chain.
- 2Gross profit increased by 2.8% to $552.5 million, with gross profit as a percentage of total revenue improving to 3.19% from 3.03% in the prior year, driven by strong generic programs and fee-for-service agreements.
- 3Operating income rose by 5.6% to $248.3 million, reflecting improved gross profit margins and relatively stable operating expenses.
- 4Net income was $143.4 million, or $0.94 per diluted share, an increase from $0.82 per diluted share in the prior year quarter.
- 5The company continued its share repurchase program, buying back shares for $179.9 million during the first six months of the fiscal year, indicating a focus on shareholder returns.
- 6The company projects total revenue growth between 1% and 3% for fiscal year 2009, with expected growth in the specialty group (5-7%) and a more modest increase in the distribution segment (0-2%).
- 7Significant legal matters, including the New York Attorney General subpoena and the Bergen Brunswig matter, are ongoing but management does not believe they will have a material adverse effect on the company's financial condition.