8-KEarnings & ResultsRegulation FDExhibits & Filings

Cencora, Inc. 8-K Report, Financial Results (Jul 24, 2014)

Filed July 24, 2014For Securities:COR

Summary

Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on July 24, 2014, primarily to furnish its earnings release for the fiscal quarter ended June 30, 2014. The filing highlights the company's financial performance and outlook for fiscal year 2014. Investors should note the company's use of non-GAAP financial measures, which management believes provide useful supplementary information alongside GAAP measures, with reconciliations provided in the earnings release. Key adjustments to reported earnings include warrant expense, litigation settlements, amortization, and debt-related costs, among others. The company provided updated guidance for fiscal year 2014, expecting adjusted diluted earnings per share (EPS) to range between $3.89 and $3.94. Revenue growth is projected in the 35% range, with adjusted operating income growth in the high-teens percentage range. Management anticipates a decline in adjusted operating margin, attributed to the integration of new, lower-margin business and increased brand pharmaceutical business with large clients. The company also reaffirmed its commitment to capital allocation, expecting to generate free cash flow in the high end of $500 million to $700 million and planning approximately $500 million in share repurchases.

Key Highlights

  • 1Cencora (then AmerisourceBergen) announced fiscal Q2 2014 earnings and provided updated FY2014 guidance.
  • 2The company expects FY2014 adjusted diluted EPS to be in the range of $3.89 to $3.94.
  • 3Projected FY2014 revenue growth is in the 35% range.
  • 4Adjusted operating income growth for FY2014 is anticipated in the high-teens percentage range.
  • 5An adjusted operating margin decline in the high-teens basis points is expected due to onboarding lower-margin business.
  • 6The company anticipates generating free cash flow in the high end of the $500 million to $700 million range.
  • 7Approximately $500 million is planned for share repurchases in FY2014, subject to market conditions.

Frequently Asked Questions

This 8-K filing is primarily to furnish the earnings release of Cencora (then AmerisourceBergen) for the fiscal quarter ended June 30, 2014, and to provide updated financial guidance for the fiscal year 2014.

The company expects its adjusted diluted earnings per share from continuing operations for fiscal year 2014 to be in the range of $3.89 to $3.94.

The expected decline in adjusted operating margin, in the high-teens basis points range, is primarily due to the onboarding of significant new business that has lower margins and increased growth in brand pharmaceutical business with their large customers.

Cencora expects to generate free cash flow in the high end of the $500 million to $700 million range and plans to spend approximately $500 million in share repurchases during fiscal year 2014, subject to market conditions.