8-KEarnings & ResultsRegulation FDExhibits & Filings

Cencora, Inc. 8-K Report, Financial Results (Jul 24, 2013)

Filed July 24, 2013For Securities:COR

Summary

AmerisourceBergen Corporation (now Cencora, Inc.) filed an 8-K on July 24, 2013, primarily to announce its second-quarter 2013 financial results and provide updated fiscal year 2013 guidance. The company reported its earnings for the quarter ended June 30, 2013, and included non-GAAP financial measures for a more detailed operational view, reconciling them with GAAP figures. Management believes these non-GAAP measures offer valuable supplementary information for investors to better understand performance. The company also updated its full-year fiscal 2013 outlook, narrowing the adjusted diluted earnings per share (EPS) range to $3.06-$3.11, from the prior $3.04-$3.14. This updated guidance is underpinned by expectations of 11-13% revenue growth, a 3-5% decline in operating income, and a 24-29 basis point decrease in operating margin. Furthermore, AmerisourceBergen reported significant share repurchases totaling $401 million year-to-date as of June 30, 2013, aligning with its annual targets.

Key Highlights

  • 1AmerisourceBergen reported its fiscal Q2 2013 earnings and released related financial information.
  • 2The company provided a reconciliation of non-GAAP financial measures (related to LIFO and warrant expenses) to GAAP for the fiscal quarter and nine months ended June 30, 2013.
  • 3Fiscal year 2013 adjusted diluted EPS guidance was narrowed to $3.06-$3.11.
  • 4The company anticipates fiscal year 2013 revenue growth of 11% to 13%.
  • 5Operating income for fiscal year 2013 is projected to decline by 3% to 5%.
  • 6Operating margin is expected to decrease by 24 to 29 basis points for fiscal year 2013.
  • 7AmerisourceBergen repurchased $401 million of its stock through June 30, 2013.

Frequently Asked Questions

This 8-K filing is primarily to announce AmerisourceBergen's financial results for the fiscal quarter ended June 30, 2013, and to provide an updated outlook for its full fiscal year 2013.

The company is presenting non-GAAP financial measures, specifically excluding LIFO expense and warrant expense for 2013 periods, to provide supplementary information that management believes aids investors in analyzing the company's operating performance more effectively. These non-GAAP measures are reconciled to the most comparable GAAP measures.

The company has narrowed its fiscal year 2013 adjusted diluted earnings per share (EPS) guidance range to $3.06 to $3.11, compared to the previous range of $3.04 to $3.14. This indicates a slight tightening of expectations towards the higher end of the initial range.

The updated guidance is supported by expectations of 11-13% revenue growth. However, it also anticipates a decline in operating income (3-5%) and operating margin (24-29 basis points) for fiscal year 2013. The company also expects free cash flow between $100 million and $200 million, with approximately $240 million in capital expenditures.