8-KRegulation FDExhibits & Filings

Cencora, Inc. 8-K Report, Regulation FD Disclosure (Jan 9, 2014)

Filed January 9, 2014For Securities:COR

Summary

Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on January 9, 2014, to provide an update on its financial reporting practices for fiscal year 2014. The company announced its intention to report adjusted earnings per share (EPS) from continuing operations on a non-GAAP basis. This adjusted EPS will exclude certain items such as LIFO charges/credits, warrant expense, acquisition-related costs and amortization, specific one-time expenses (severance, litigation), and gains from antitrust settlements. Additionally, the calculation will exclude accounting dilution from unexercised equity warrants. The company believes this non-GAAP presentation offers supplementary information that aids investors in analyzing its operating performance. Attached to the filing are reconciliations of GAAP to these adjusted non-GAAP figures for fiscal 2013 quarterly periods and fiscal years 2009-2013, as well as adjusted segment information for fiscal 2013 and 2012. A change in financial reporting for its Canadian business, which moved from Pharmaceutical Distribution to 'Other' effective October 1, 2013, is also reflected in the provided segment data.

Key Highlights

  • 1Cencora (formerly AmerisourceBergen) will report adjusted EPS on a non-GAAP basis for fiscal year 2014.
  • 2Key exclusions from adjusted EPS include LIFO adjustments, warrant expense, acquisition costs, and certain one-time charges.
  • 3The company is providing detailed reconciliations between GAAP and non-GAAP figures for historical periods (FY2009-2013) and FY2013 quarters.
  • 4Adjusted segment information for fiscal years 2012-2013 is also being provided.
  • 5The Canadian business reporting segment has been reclassified from Pharmaceutical Distribution to 'Other' effective October 1, 2013.
  • 6Management believes the non-GAAP presentation enhances investor analysis of operational performance.

Frequently Asked Questions

Cencora is not changing its fundamental GAAP reporting but is supplementing it with a non-GAAP 'adjusted' earnings per share presentation. This is intended to provide a clearer view of ongoing operational performance by excluding items that management considers non-recurring or not reflective of core business activities.

The company will exclude LIFO charges and credits, warrant expense, acquisition-related expenses and amortization of intangibles, special one-time employee severance, litigation, and other expenses, as well as gains from antitrust litigation settlements. The diluted share count for adjusted EPS will also exclude accounting dilution from unexercised equity warrants.

Detailed unaudited reconciliations of Continuing Operations (GAAP) to Adjusted Continuing Operations (Non-GAAP) for various fiscal periods, along with adjusted segment information, are provided as Exhibits 99.1 and 99.2 to this 8-K filing and are incorporated by reference.

Effective October 1, 2013, Cencora moved the financial reporting of its Canadian business from the Pharmaceutical Distribution segment to the 'Other' category. This change has been reflected in the provided adjusted segment information for fiscal years 2012 and 2013 to ensure consistent comparability.