Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) reported a significant increase in revenue for the six months ended March 31, 2015, driven by higher sales to Walgreens Boots Alliance (WBA) and the recent acquisition of MWI Veterinary Supply. This revenue growth was partially offset by increased operating expenses, notably a substantial rise in warrant expense due to stock price appreciation and higher LIFO expenses. Despite revenue growth, the company experienced a net loss for both the three and six-month periods, primarily attributable to these significant expenses. The company's balance sheet shows a considerable increase in total assets, largely due to goodwill and intangible assets arising from the MWI acquisition. Debt levels also increased significantly, mainly from new borrowings to finance the acquisition. Management highlights strong operational cash flow generation, supported by an increase in accounts payable and accrued expenses, which helped fund working capital needs, capital expenditures, and financing activities, including share repurchases and dividends.
Financial Highlights
54 data points| Revenue | $32.67B |
| Cost of Revenue | $31.76B |
| Gross Profit | $911.98M |
| SG&A Expenses | $442.44M |
| Operating Income | -$363.06M |
| Net Income | -$514.11M |
| EPS (Basic) | $-2.33 |
| EPS (Diluted) | $-2.33 |
| Shares Outstanding (Basic) | 220.24M |
| Shares Outstanding (Diluted) | 220.24M |
Key Highlights
- 1Revenue increased by 14.8% and 15.0% for the three and six months ended March 31, 2015, respectively, compared to the prior year, driven by increased sales to WBA and the acquisition of MWI.
- 2The acquisition of MWI Veterinary Supply for $2.6 billion in February 2015 significantly impacted the balance sheet, adding $1.2 billion in goodwill and $1.5 billion in intangible assets.
- 3Despite revenue growth, the company reported a net loss of $513.4 million for the quarter and $713.3 million for the six months, largely due to a substantial increase in 'Warrant expense' and higher LIFO expenses.
- 4Total debt increased to $4.0 billion as of March 31, 2015, up from $2.0 billion at September 30, 2014, primarily due to borrowings to finance the MWI acquisition.
- 5Operating cash flow improved significantly to $1.6 billion for the six months ended March 31, 2015, compared to $112.7 million in the prior year period, aided by strong increases in accounts payable.
- 6The company continued its share repurchase program and dividend payments, indicating a commitment to returning capital to shareholders while managing potential dilution from outstanding warrants.
- 7Legal proceedings remain a significant area of focus, with ongoing investigations and potential liabilities related to controlled substance diversion and other matters.