Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) reported solid financial performance for the quarter ended March 31, 2012. Revenue saw a modest increase, driven by growth in the Specialty Group (ABSG) and contributions from recent acquisitions, though this was partially offset by a decline in the generic drug market and the loss of a major retail customer. The company demonstrated strong operational efficiency, with operating income increasing slightly year-over-year. Despite increased interest expenses due to new debt issuance, net income remained stable, and diluted Earnings Per Share (EPS) saw a healthy increase, reflecting effective share repurchases. Cencora's liquidity position remains robust, supported by significant cash reserves and ample availability under its credit facilities, positioning the company to manage its working capital needs and pursue strategic growth initiatives, including its recently announced acquisition of World Courier Group.
Financial Highlights
56 data points| Revenue | $19.71B |
| Cost of Revenue | $19.03B |
| Gross Profit | $679.74M |
| SG&A Expenses | $262.42M |
| Operating Income | $377.06M |
| Net Income | $212.10M |
| EPS (Basic) | $0.82 |
| EPS (Diluted) | $0.81 |
| Shares Outstanding (Basic) | 258.16M |
| Shares Outstanding (Diluted) | 262.36M |
Key Highlights
- 1Revenue for the quarter ended March 31, 2012, increased by 1.6% to $20.1 billion compared to the prior year, driven by ABSG's growth and acquisitions.
- 2Operating income grew by 0.8% to $368.1 million for the quarter, indicating stable operational performance.
- 3Diluted Earnings Per Share (EPS) increased by 5% to $0.81 for the quarter, outpacing net income growth due to a reduction in outstanding shares.
- 4The company completed the acquisition of TheraCom, LLC for $257.2 million in November 2011, expanding its consulting services capabilities.
- 5A significant event, the merger of Cencora's largest customer, Medco Health Solutions, with Express Scripts, was noted, with an amended agreement in place and a competitive RFP process anticipated for future contracts.
- 6The company continues to execute its share repurchase program, having repurchased $320.3 million of stock in the six months ended March 31, 2012, and announced a new $750 million program.
- 7As of March 31, 2012, Cencora maintained a strong liquidity position with $2.33 billion in cash and cash equivalents and significant availability under its revolving credit and securitization facilities.