Summary
Cencora, Inc. (COR), formerly AmerisourceBergen, reported a 4.9% increase in revenue for the three months ended June 30, 2019, reaching $45.2 billion, and a 7.5% increase for the nine-month period to $133.9 billion, year-over-year. This growth was primarily driven by its Pharmaceutical Distribution Services segment. While gross profit saw a modest increase of 1.6% for the quarter, it experienced a more substantial 10.4% rise for the nine-month period, bolstered by antitrust litigation settlements and LIFO credits. A significant factor impacting profitability was a $570.0 million impairment of long-lived assets related to its PharMEDium compounding operations, which heavily influenced the operating income and net income figures for the nine-month period, leading to a 27.7% decrease in operating income compared to the prior year. Despite this, the company's liquidity remains strong, supported by significant cash flows from operations and substantial availability under its credit facilities.
Financial Highlights
56 data points| Revenue | $45.24B |
| Cost of Revenue | $44.01B |
| Gross Profit | $1.23B |
| SG&A Expenses | $656.94M |
| Operating Income | $406.69M |
| Net Income | $301.96M |
| EPS (Basic) | $1.44 |
| EPS (Diluted) | $1.43 |
| Shares Outstanding (Basic) | 209.71M |
| Shares Outstanding (Diluted) | 211.16M |
Key Highlights
- 1Revenue increased by 4.9% to $45.2 billion for the three months ended June 30, 2019, and by 7.5% to $133.9 billion for the nine months ended June 30, 2019, year-over-year, primarily driven by the Pharmaceutical Distribution Services segment.
- 2Gross profit saw a 1.6% increase for the quarter and a 10.4% increase for the nine months, aided by antitrust litigation settlement gains and LIFO credits.
- 3Operating income for the nine-month period decreased by 27.7% to $932.1 million, largely due to a $570.0 million impairment charge related to PharMEDium's long-lived assets.
- 4Net income attributable to AmerisourceBergen Corporation for the nine months ended June 30, 2019, was $722.7 million, significantly lower than the $1.4 billion reported in the prior year, primarily due to the impairment charge and a prior year tax benefit.
- 5The company repurchased $125.8 million and $373.0 million of its common stock under its share repurchase programs during the nine months ended June 30, 2019, and had $627.0 million remaining under its newest program as of June 30, 2019.
- 6Total debt remained significant, at $4.18 billion as of June 30, 2019, though the company maintained strong liquidity with $2.99 billion in cash and cash equivalents and substantial availability under its credit facilities.
- 7The company continues to be involved in opioid-related lawsuits and investigations, the outcomes of which remain uncertain and could have a material adverse effect on its financial condition.