8-KRegulation FDExhibits & Filings

Cencora, Inc. 8-K Report, Regulation FD Disclosure (Dec 12, 2013)

Filed December 12, 2013For Securities:COR

Summary

AmerisourceBergen Corporation (now Cencora, Inc.) filed an 8-K on December 12, 2013, to disclose information presented at its annual Investor Day Meeting. The key takeaway for investors is the company's reiteration of its fiscal year 2014 earnings per share (EPS) guidance. AmerisourceBergen expects adjusted diluted EPS from continuing operations to be in the range of $3.60 to $3.73, representing a significant year-over-year increase of 12% to 16% from fiscal year 2013's $3.21. The guidance is supported by several key financial projections for FY2014, including revenue growth of 28% to 31% and operating income growth of 12% to 16%. The company anticipates a high-teens basis point decline in operating margins, attributed to the onboarding of new, lower-margin business. Furthermore, AmerisourceBergen projects free cash flow between $500 million and $700 million, with capital expenditures around $300 million, and plans for approximately $500 million in share repurchases, primarily in the second half of the fiscal year.

Key Highlights

  • 1Reiteration of Fiscal Year 2014 adjusted diluted EPS guidance of $3.60 to $3.73, representing a 12%-16% increase over FY2013.
  • 2Projected revenue growth for FY2014 is estimated to be between 28% and 31%.
  • 3Operating income is expected to grow by 12% to 16% in FY2014.
  • 4Anticipation of a high-teens basis point decline in operating margins due to new, lower-margin business onboarding.
  • 5Free cash flow for FY2014 is projected to be in the range of $500 million to $700 million.
  • 6Capital expenditures are planned to be around $300 million for FY2014.
  • 7The company intends to repurchase approximately $500 million of its stock, with the majority expected in the latter half of FY2014.

Frequently Asked Questions

This 8-K filing serves as a Regulation FD disclosure, primarily to announce that AmerisourceBergen Corporation reiterated its fiscal year 2014 earnings guidance during its annual Investor Day Meeting on December 12, 2013. It also provides details about the company's financial projections and assumptions supporting that guidance.

The company reiterated its guidance for fiscal year 2014 adjusted diluted earnings per share from continuing operations to be in the range of $3.60 to $3.73. This represents an anticipated increase of 12% to 16% compared to the $3.21 reported for fiscal year 2013.

Key assumptions include revenue growth of 28%-31%, operating income growth of 12%-16%, and an operating margin decline in the high teens basis points due to the onboarding of new, lower-margin business. The company also projects free cash flow between $500-$700 million, capital expenditures around $300 million, and approximately $500 million in share repurchases.

Adjusted earnings per share from continuing operations excludes several items, including LIFO charges/credits, warrant expense, acquisition-related expenses and intangible amortization, special one-time employee severance, litigation, and other expenses, as well as gains from antitrust litigation settlements. It also excludes the accounting dilution from unexercised equity warrants. The company adjusted its FY2013 EPS to be on the same basis for comparison.