8-KEarnings & ResultsRegulation FDExhibits & Filings

Cencora, Inc. 8-K Report, Financial Results (Oct 29, 2015)

Filed October 29, 2015For Securities:COR

Summary

AmerisourceBergen Corporation (COR) filed an 8-K on October 29, 2015, to report its financial results for the fiscal quarter and year ended September 30, 2015. The filing primarily references a news release detailing these results and providing forward-looking guidance. Investors should note the company's use of non-GAAP financial measures, which exclude items such as warrant expense, litigation settlements, LIFO expense, amortization of acquisition-related intangibles, and severance/litigation costs. These non-GAAP measures are presented alongside GAAP figures as management believes they offer supplementary insights into operating performance. Furthermore, the report outlines the company's outlook for fiscal year 2016, projecting adjusted diluted earnings per share (EPS) between $5.73 and $5.90. This guidance is contingent upon the anticipated completion of the PharMEDium Healthcare Holdings, Inc. acquisition in the first fiscal quarter. Key assumptions underpinning this forecast include revenue growth of 8-10%, adjusted operating income growth of 16-18%, an increase in adjusted operating margin of 8-12 basis points, an effective tax rate of approximately 35.5%, and substantial free cash flow generation of $2.3 to $2.7 billion.

Key Highlights

  • 1AmerisourceBergen reported financial results for the fiscal quarter and year ended September 30, 2015, via an accompanying news release.
  • 2The company utilizes and reports non-GAAP financial measures, adjusting for items like warrant expense, litigation settlements, LIFO expense, amortization, and severance costs.
  • 3Management believes these non-GAAP measures provide valuable supplementary information for investors alongside GAAP results.
  • 4FY 2016 adjusted diluted EPS is projected to be in the range of $5.73 to $5.90.
  • 5The projected FY 2016 EPS guidance assumes the completion of the PharMEDium Healthcare Holdings, Inc. acquisition in Q1 FY 2016.
  • 6Revenue growth for FY 2016 is expected to be between 8% and 10%.
  • 7Free cash flow for FY 2016 is anticipated to be between $2.3 billion and $2.7 billion, with capital expenditures around $400 million.

Frequently Asked Questions

The 8-K filing refers to a news release (Exhibit 99.1) that contains the specific financial results for the period. Investors should consult this exhibit for detailed GAAP and non-GAAP figures related to revenue, operating income, net income, and earnings per share for the quarter and full year.

The company makes recurring adjustments to GAAP results, including for warrant expense, gains on antitrust litigation settlements, LIFO expense, amortization of acquisition-related intangibles, and employee severance, litigation, and other expenses. Non-recurring adjustments may also be made, such as for an impairment charge on an equity investment.

AmerisourceBergen expects fiscal year 2016 adjusted diluted earnings per share to be in the range of $5.73 to $5.90. This guidance is supported by assumptions including an 8-10% revenue growth, 16-18% adjusted operating income growth, and $2.3 to $2.7 billion in free cash flow.

The anticipated completion of the PharMEDium Healthcare Holdings, Inc. acquisition in the first fiscal quarter of 2016 is a key assumption underpinning the company's FY 2016 earnings per share guidance. This indicates that the acquisition is expected to contribute to the company's financial performance in the upcoming fiscal year.