8-KOther EventsExhibits & Filings

Cencora, Inc. 8-K Report, Corporate Update (Oct 16, 2007)

Filed October 16, 2007For Securities:COR

Summary

This 8-K filing from AmerisourceBergen Corporation (now Cencora, Inc.) on October 16, 2007, addresses significant changes in how the company will report its financial results, particularly concerning its former PharMerica Segment. The company announced it will not reclassify historical financial statements to reflect the PharMerica Long-Term Care business as a discontinued operation, following its spin-off and combination with Kindred Pharmacy Services to form PharMerica Corporation (PMC). Instead, it will present unaudited quarterly financial information for both PharMerica Long-Term Care and PMSI (the remaining workers' compensation business) to provide clarity for investors. Furthermore, the company updated its diluted earnings per share (EPS) guidance for fiscal year 2007. Including a $0.08 contribution from the divested PharMerica Long-Term Care business through the spin-off date, the revised EPS range from continuing operations is $2.58 to $2.66. This implies a September quarter EPS from continuing operations of $0.59 to $0.67, with a small $0.01 contribution from PharMerica Long-Term Care. The company also reiterated optimism for fiscal year 2008, expecting performance aligned with long-term financial goals.

Key Highlights

  • 1AmerisourceBergen will not reclassify historical financial statements to show the spun-off PharMerica Long-Term Care business as discontinued operations.
  • 2The company will provide unaudited quarterly financial data for both PharMerica Long-Term Care and PMSI for fiscal 2006 and the first three quarters of fiscal 2007.
  • 3Following the spin-off, the 'PharMerica Segment' will be referred to as 'Other' in future filings, comprising PMSI and the historical results of PharMerica Long-Term Care up to the spin-off date.
  • 4Updated diluted EPS from continuing operations guidance for fiscal year 2007 is now a range of $2.58 to $2.66.
  • 5This updated EPS guidance includes a $0.08 contribution from PharMerica Long-Term Care for the period prior to its spin-off on July 31, 2007.
  • 6The September quarter (Q4 fiscal 2007) diluted EPS from continuing operations is estimated to be between $0.59 and $0.67, including a $0.01 contribution from PharMerica Long-Term Care.
  • 7AmerisourceBergen expressed optimism for fiscal year 2008, expecting performance to meet long-term financial goals.

Frequently Asked Questions

AmerisourceBergen determined, in accordance with accounting guidance (EITF Issue No. 03-13), that it will not reclassify its historical results. This decision is influenced by the ongoing pharmaceutical distribution agreement with the newly formed PharMerica Corporation (PMC), which generates significant continuing gross cash flows from the disposed business.

The company will provide unaudited financial information for each quarter of fiscal year 2006 and the first three quarters of fiscal year 2007 separately for PharMerica Long-Term Care and PMSI. In future filings, the previously reported 'PharMerica segment' will be renamed 'Other' and will include PMSI's results after the spin-off date and historical results of PharMerica Long-Term Care up to the spin-off date.

The company has revised its diluted EPS guidance from continuing operations for fiscal year 2007 to a range of $2.58 to $2.66. This figure incorporates $0.08 per share from the PharMerica Long-Term Care business for the period it was part of AmerisourceBergen before the July 31, 2007 spin-off.

AmerisourceBergen remains optimistic about its fiscal year 2008 performance and expects it to be in line with the company's long-term financial goals.