Summary
Cencora, Inc. (COR) reported a significant revenue increase of 15.1% year-over-year for the quarter ended December 31, 2014, reaching $33.6 billion. This growth was driven by increased sales across its Pharmaceutical Distribution segment, notably including a full quarter of generic drug distribution to Walgreens Boots Alliance (WBA) and strong performance in specialty drug distribution through ABSG. The "Other" segment also contributed positively. Despite robust revenue growth, the company reported a net loss of $199.9 million, or $0.91 per diluted share, primarily due to substantial warrant expenses and LIFO expense. Warrant expense, related to the strategic relationship with WBA, significantly impacted earnings. The company continues to manage its liquidity effectively, with substantial cash balances and available credit facilities, and has a substantial share repurchase program in place to mitigate potential dilution from warrants.
Financial Highlights
52 data points| Revenue | $33.59B |
| Cost of Revenue | $32.84B |
| Gross Profit | $752.30M |
| SG&A Expenses | $416.49M |
| Operating Income | -$87.37M |
| Net Income | -$200.54M |
| EPS (Basic) | $-0.91 |
| EPS (Diluted) | $-0.91 |
| Shares Outstanding (Basic) | 219.46M |
| Shares Outstanding (Diluted) | 219.46M |
Key Highlights
- 1Revenue increased by 15.1% to $33.6 billion, primarily driven by the Pharmaceutical Distribution segment and a full quarter of generic drug distribution to Walgreens Boots Alliance.
- 2Pharmaceutical Distribution gross profit increased by 26.6%, benefiting from strong revenue growth, price appreciation, and incremental income from the WBA procurement joint venture.
- 3The company reported a net loss of $199.9 million for the quarter, a significant swing from a net income of $41.4 million in the prior year period.
- 4Warrant expense was a major factor, increasing to $371.4 million from $116.3 million in the prior year quarter, significantly impacting net income.
- 5LIFO expense also increased substantially to $144.0 million from $57.6 million, further pressuring profitability.
- 6The company maintained strong liquidity with $2.3 billion in cash and cash equivalents and $2.4 billion in additional availability under credit facilities.
- 7A significant share repurchase program remains active, with $443.3 million remaining under a general program and $265.9 million under a special program to mitigate warrant dilution.