8-KEarnings & ResultsRegulation FDExhibits & Filings

Cencora, Inc. 8-K Report, Financial Results (Apr 25, 2013)

Filed April 25, 2013For Securities:COR

Summary

AmerisourceBergen Corporation (now Cencora, Inc.) filed an 8-K on April 25, 2013, primarily to report its financial results for the fiscal quarter ended March 31, 2013. The filing also provided updated guidance for the fiscal year 2013. Investors should note that the company revised its adjusted diluted earnings per share (EPS) outlook to be in the lower half of the previously stated range of $3.04 to $3.14, specifically excluding certain costs related to its strategic partnership with Walgreens and Alliance Boots, including warrant expenses and expected LIFO charges. This adjustment reflects a focus on operational performance while managing integration costs from a significant new relationship. Key financial projections for fiscal year 2013, excluding the aforementioned items, indicate expected revenue growth between 11% and 13%. However, the company anticipates a decline in operating income of 3% to 5% and an operating margin contraction of 24 to 29 basis points. Despite these margin pressures, AmerisourceBergen reiterated its commitment to returning capital to shareholders, expecting to spend approximately $400 million on share repurchases and projecting free cash flow in the range of $100 million to $200 million, with significant capital expenditures planned. The news release detailing these results is furnished as an exhibit.

Key Highlights

  • 1AmerisourceBergen reported fiscal Q1 2013 earnings and provided updated fiscal year 2013 guidance.
  • 2Adjusted diluted EPS guidance for FY2013 revised to the lower half of the $3.04-$3.14 range, excluding specific Walgreens/Alliance Boots related costs.
  • 3Expected FY2013 revenue growth projected at 11%-13%.
  • 4Anticipated FY2013 operating income decline of 3%-5% and operating margin contraction of 24-29 basis points.
  • 5Free cash flow for FY2013 is expected to be between $100 million and $200 million.
  • 6Significant capital expenditures of at least $220 million are planned for FY2013.
  • 7Company reiterates intention to spend approximately $400 million on share repurchases in FY2013.

Frequently Asked Questions

The main purpose of this 8-K filing is to report AmerisourceBergen Corporation's financial results for the fiscal quarter ended March 31, 2013, and to provide updated financial guidance for the full fiscal year 2013.

The company revised its adjusted diluted EPS guidance to the lower half of its previous range to exclude certain expenses associated with its new strategic relationship with Walgreens and Alliance Boots. These excluded expenses include costs related to warrants and expected LIFO charges from onboarding additional inventory.

Excluding the specific integration costs, the company expects revenue growth of 11%-13%. However, it anticipates a decline in operating income of 3%-5% and a contraction in operating margins of 24-29 basis points. Free cash flow is projected between $100 million and $200 million, with substantial capital expenditures of at least $220 million planned.

AmerisourceBergen reiterated its commitment to returning capital to shareholders by continuing to expect spending approximately $400 million on share repurchases in fiscal year 2013.