What were the main drivers of revenue change in the quarter?

Revenue decreased by 1.9% to $19.8 billion. The primary driver was a 5% decline in the Pharmaceutical Distribution segment, largely due to lower sales to its largest customer and the loss of a significant retail customer. This was partially offset by a substantial 223.8% increase in the 'Other' segment, fueled by the recent acquisitions of TheraCom and World Courier.

How did the recent acquisitions impact the company's financial performance?

The acquisitions of TheraCom and World Courier significantly boosted the 'Other' segment's revenue and operating income. World Courier contributed $520 million and TheraCom contributed $257.2 million to the company, strengthening its global specialty transportation and logistics and commercialization support services capabilities, respectively.

What is the company's current debt situation and how is it managing its liquidity?

Total debt increased to $1.88 billion as of June 30, 2012, primarily due to the issuance of $500 million in senior notes. The company's liquidity remains strong, supported by cash balances and substantial availability under its multi-currency revolving credit facility ($601.2 million) and receivables securitization facility ($700 million), which are expected to fund working capital, debt repayment, acquisitions, and capital expenditures.

Are there any significant legal or regulatory matters that investors should be aware of?

Yes, the company is involved in several legal proceedings. These include matters related to rebate payment orders in Canada, a qui tam matter concerning alleged remuneration to medical providers for a specific drug, a subpoena from the U.S. Attorney's Office in New Jersey regarding controlled substance diversion, and a complaint from the West Virginia Attorney General concerning failures to control diversion of controlled substances. The outcomes of these matters are uncertain and could potentially have a material adverse effect on the company's financial condition or results of operations.

COR 10-Q Quarterly Report Q3 FY2012 — Revenue, Net Income, EPS

Summary

Cencora, Inc. (COR), formerly AmerisourceBergen Corporation, reported its financial results for the quarterly period ended June 30, 2012. The company experienced a slight decrease in overall revenue year-over-year, primarily driven by a decline in its Pharmaceutical Distribution segment, particularly from its AmerisourceBergen Drug Corporation (ABDC) unit. This was partially offset by strong growth in the 'Other' segment, largely attributable to recent acquisitions. Net income saw a modest decrease, though diluted earnings per share showed an increase due to a reduction in outstanding shares. The company also highlighted significant debt financing activities and ongoing share repurchase programs.

Financial Highlights

56 data points

Beta

Revenue

$19.33B

0.0% Gross Margin

Net Income

$181.27M

0.0% Net Margin

EPS (Diluted)

$0.71

Total Assets

$15.75B

Cash & Equivalents

$1.66B

Free Cash Flow

$62.53M

Financial Statements

Beta

Revenue	$19.33B
Cost of Revenue	$18.66B
Gross Profit	$667.87M
SG&A Expenses	$303.81M
Operating Income	$324.39M
Net Income	$181.27M
EPS (Basic)	$0.72
EPS (Diluted)	$0.71
Shares Outstanding (Basic)	252.12M
Shares Outstanding (Diluted)	255.72M

Key Highlights

1Total revenue for the quarter ended June 30, 2012, was $19.8 billion, a 1.9% decrease compared to the prior year quarter, primarily due to a 5% revenue decline in the Pharmaceutical Distribution segment, offset by a 223.8% increase in the 'Other' segment driven by acquisitions.
2Net income for the quarter was $181.3 million, a 2% decrease from $184.4 million in the prior year quarter. Diluted earnings per share increased by 8% to $0.71 due to a reduction in weighted average common shares outstanding.
3The company completed the acquisition of World Courier Group, Inc. for $520 million on April 30, 2012, and TheraCom, LLC for $257.2 million on November 1, 2011, significantly contributing to the growth of the 'Other' segment.
4Operating income decreased slightly by 1.1% to $313.7 million, with the Pharmaceutical Distribution segment's operating income declining by 3.1% while the 'Other' segment's operating income increased by 89.2%.
5Cash flow from operating activities for the nine months ended June 30, 2012, was $760.1 million, a decrease from $807.8 million in the prior year period.
6The company's debt increased, with total debt standing at $1.88 billion at June 30, 2012, up from $1.37 billion at September 30, 2011, largely due to the issuance of $500 million in senior notes in November 2011.
7Cencora continued its share repurchase program, spending $500 million in the nine months ended June 30, 2012, and having $744.1 million in availability remaining on its authorized repurchase program.

Cencora, Inc. Quarterly Report for Q3 Ended Jun 30, 2012

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions