Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) reported solid revenue growth in the quarter ended December 31, 2011, driven by its Pharmaceutical Distribution segment. The company acquired TheraCom, LLC for $250 million, expanding its consulting services, which is expected to contribute positively to future revenue. Despite a slight increase in interest expenses due to new debt issuance, the company demonstrated improved operating income and net income compared to the prior year period. The company also actively managed its capital structure, issuing new senior notes and continuing its share repurchase program, signaling confidence in its financial health and commitment to shareholder returns. Financially, AmerisourceBergen maintained a strong liquidity position with substantial cash and cash equivalents and significant availability under its revolving credit facilities and receivables securitization program. While facing some headwinds such as the loss of a major retail customer and potential impacts from generic drug conversions and changes in reimbursement rates, the company's diversified business model and strategic acquisitions position it for continued operational performance. Investors should monitor the integration of TheraCom and the impact of upcoming generic drug launches on gross profit margins.
Financial Highlights
55 data points| Revenue | $19.98B |
| Cost of Revenue | $19.41B |
| Gross Profit | $573.26M |
| SG&A Expenses | $257.19M |
| Operating Income | $283.40M |
| Net Income | $162.12M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 258.46M |
| Shares Outstanding (Diluted) | 263.08M |
Key Highlights
- 1Revenue increased by 2.4% to $20.36 billion for the quarter ended December 31, 2011, compared to the prior year period.
- 2Acquired TheraCom, LLC for $250 million to enhance consulting services (ABCS segment).
- 3Operating income grew by 2.9% to $284.9 million, reflecting solid operational performance.
- 4Net income increased by 1% to $162.1 million, with diluted EPS rising 9% to $0.62.
- 5Issued $500 million in 3.5% senior notes due 2021 to fund general corporate purposes.
- 6Continued share repurchase program, buying back $119.9 million worth of common stock during the quarter.
- 7Maintained strong liquidity with $2.37 billion in cash and cash equivalents and over $1.3 billion in additional availability under credit facilities and securitization programs.