Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) reported strong revenue growth for the quarter ended December 31, 2015, with a 9.3% increase year-over-year, driven by its Pharmaceutical Distribution segment and a significant contribution from its 'Other' segment, largely due to the acquisition of MWI Veterinary Supply. Despite increased operating expenses, including warrant expenses and acquisition-related costs, the company achieved a substantial net income driven by a significant income tax benefit related to a private letter ruling on the fair value of warrants issued to Walgreens Boots Alliance. The company also announced a substantial increase in its quarterly cash dividend and continued its share repurchase program. Management highlighted the acquisition of PharMEDium Healthcare Holdings for $2.7 billion as a key strategic move. While the company faces ongoing litigation risks and regulatory scrutiny, its liquidity position remains strong, supported by significant availability under its credit facilities.
Financial Highlights
54 data points| Revenue | $36.71B |
| Cost of Revenue | $35.74B |
| Gross Profit | $964.88M |
| SG&A Expenses | $525.08M |
| Operating Income | -$178.14M |
| Net Income | $329.64M |
| EPS (Basic) | $1.60 |
| EPS (Diluted) | $1.45 |
| Shares Outstanding (Basic) | 206.18M |
| Shares Outstanding (Diluted) | 226.72M |
Key Highlights
- 1Revenue increased by 9.3% year-over-year, reaching $36.7 billion, primarily driven by the Pharmaceutical Distribution segment and the "Other" segment, boosted by the MWI acquisition.
- 2The company reported a net income of $330.4 million, a significant turnaround from a net loss of $199.9 million in the prior year quarter, largely due to a $456 million tax benefit related to warrants.
- 3Acquired PharMEDium Healthcare Holdings for $2.7 billion, adding a leading provider of compounded sterile preparations to its portfolio.
- 4Increased the quarterly cash dividend by 17% to $0.34 per share and maintained a robust share repurchase program with significant availability remaining.
- 5Total gross profit increased by 28.3%, benefiting from the MWI acquisition and a reduction in LIFO expense.
- 6Distribution, selling, and administrative expenses rose by 26.8%, primarily due to the inclusion of MWI's operating costs.
- 7The company faces significant litigation and regulatory risks, including ongoing investigations related to controlled substance diversion and potential qui tam actions.