8-KLeadership ChangesRegulation FDExhibits & Filings

Cencora, Inc. 8-K Report, Executive Changes (Feb 13, 2012)

Filed February 13, 2012For Securities:COR

Summary

AmerisourceBergen Corporation (now Cencora, Inc.) filed an 8-K on February 13, 2012, primarily to announce a significant executive change. Michael D. DiCandilo, the Executive Vice President and Chief Financial Officer, departed the company on February 10, 2012. His departure triggers severance benefits estimated at approximately $3.7 million, including two years of base salary and bonus, a pro-rated bonus for fiscal year 2012, and other benefits. The company has appointed Tim G. Guttman, Vice President and Controller, as the acting Chief Financial Officer on an interim basis, effective February 10, 2012. This announcement also included a reaffirmation of the company's fiscal year 2012 financial outlook. Investors can expect diluted earnings per share to be in the range of $2.74 to $2.84, supported by anticipated operating margin growth and free cash flow projections of $700 million to $800 million. Additionally, the company plans to repurchase approximately $400 million of its common shares during fiscal year 2012.

Key Highlights

  • 1Departure of Executive Vice President and CFO Michael D. DiCandilo, effective February 10, 2012.
  • 2Tim G. Guttman appointed as acting Chief Financial Officer on an interim basis.
  • 3Mr. DiCandilo's departure will result in severance payments of approximately $3.7 million, including two years' base salary and bonus.
  • 4Reaffirmation of Fiscal Year 2012 diluted EPS guidance between $2.74 and $2.84.
  • 5Projected FY2012 operating margin growth in the high single-digit to low-double digit basis points range.
  • 6Anticipated FY2012 free cash flow between $700 million and $800 million.
  • 7Planned share repurchases of approximately $400 million in Fiscal Year 2012.

Frequently Asked Questions

Mr. DiCandilo's departure will result in severance costs of approximately $3.7 million. This amount includes two years of his base salary and bonus, a pro-rated bonus for fiscal year 2012, and insurance and outplacement benefits, as per his employment agreement.

Tim G. Guttman, who has been the Vice President and Controller since 2002, has been appointed as the acting Chief Financial Officer on an interim basis, effective February 10, 2012.

Yes, AmerisourceBergen reaffirmed its fiscal year 2012 diluted earnings per share guidance to be in the range of $2.74 to $2.84. The company also projected free cash flow between $700 million and $800 million and plans to repurchase approximately $400 million of its common shares.

The company's FY2012 guidance is supported by expectations of flat to modest revenue growth, operating margin growth in the high single-digit to low-double digit basis points range, and free cash flow in the range of $700 million to $800 million.