AMERISOURCEBERGEN CORP - FORM 8-K - EX-99.1

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8-K - 8-K - AMERISOURCEBERGEN CORP	a13-24861_78k.htm
EX-99.2 - EX-99.2 - AMERISOURCEBERGEN CORP	a13-24861_7ex99d2.htm

Exhibit 99.1

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)

(dollars in thousands, except per share data)

(unaudited)

	Three Months Ended December 31, 2012
	GAAP			Gain on Antitrust Litigation Settlements			LIFO Expense			Acquisition Related Intangibles Amortization			Warrant Expense		Employee Severance, Litigation and Other			Adjusted Non-GAAP

Revenue	$	21,059,811		$	—		$	—		$	—		$	—	$	—		$	21,059,811
Cost of goods sold	20,398,983			12,308			(1,167		)	—			—		—			20,410,124
Gross profit	660,828			(12,308		)	1,167			—			—		—			649,687
Operating expenses	361,388			—			—			(6,099		)	—		(2,004		)	353,285
Operating income	299,440			(12,308		)	1,167			6,099			—		2,004			296,402
Other income	(23		)	—			—			—			—		—			(23		)
Interest expense, net	18,525			—			—			—			—		—			18,525
Income before income taxes	280,938			(12,308		)	1,167			6,099			—		2,004			277,900
Income taxes	106,317			(4,658		)	444			2,308			—		758			105,169
Income from continuing operations	$	174,621		$	(7,650	)	$	723		$	3,791		$	—	$	1,246		$	172,731

Diluted earnings per share from continuing operations	$	0.74		$	(0.03	)	$	—		$	0.02		$	—	$	0.01		$	0.73

Diluted weighted average common shares outstanding	235,992			235,992			235,992			235,992			235,992		235,992			235,992

Operating Margins:

Gross Profit	3.14%																	3.08%
Operating Expenses	1.72%																	1.68%
Operating Income	1.42%																	1.41%

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)

(dollars in thousands, except per share data)

(unaudited)

	Three Months Ended March 31, 2013
	GAAP		Gain on Antitrust Litigation Settlements			LIFO Credit			Acquisition Related Intangibles Amortization			Warrant Expense 2			Employee Severance, Litigation and Other			Adjusted Non-GAAP

Revenue	$	20,523,668	$	—		$	—		$	—		$	—		$	—		$	20,523,668
Cost of goods sold	19,806,679		3,456			215			—			—			—			19,810,350
Gross profit	716,989		(3,456		)	(215		)	—			—			—			713,318
Operating expenses	366,866		—			—			(6,098		)	(3,761		)	299			357,306
Operating income	350,123		(3,456		)	(215		)	6,098			3,761			(299		)	356,012
Other loss	749		—			—			—			—			—			749
Interest expense, net	18,510		—			—			—			—			—			18,510
Income before income taxes	330,864		(3,456		)	(215		)	6,098			3,761			(299		)	336,753
Income taxes 1	126,721		(1,320		)	(82		)	2,330			1,130			(114		)	128,665
Income from continuing operations	$	204,143	$	(2,136	)	$	(133	)	$	3,768		$	2,631		$	(185	)	$	208,088

Diluted earnings per share from continuing operations	$	0.87	$	(0.01	)	$	—		$	0.02		$	0.01		$	—		$	0.89

Diluted weighted average common shares outstanding	234,587		234,587			234,587			234,587			234,587			234,587			234,587

Operating Margins:

Gross Profit	3.49%																	3.48%
Operating Expenses	1.79%																	1.74%
Operating Income	1.71%																	1.73%

1 The income tax rate applicable to warrant expense is lower than our normal income tax rate as a portion of the warrant expense is not tax deductible. The income tax rate on warrant expense will vary by quarter depending upon the expected quarterly changes in the fair value of the warrants.

2 Expense related to common stock warrants issued to Walgreens and Alliance Boots in connection with the March 18, 2013 agreements and arrangements.

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)

(dollars in thousands, except per share data)

(unaudited)

	Three Months Ended June 30, 2013
	GAAP		Gain on Antitrust Litigation Settlements			LIFO Expense			Acquisition Related Intangibles Amortization			Warrant Expense			Employee Severance, Litigation and Other 2			Adjusted Non-GAAP

Revenue	$	21,906,648	$	—		$	—		$	—		$	—		$	—		$	21,906,648
Cost of goods sold	21,344,198		5,984			(122,077		)	—			—			—			21,228,105
Gross profit	562,450		(5,984		)	122,077			—			—			—			678,543
Operating expenses	427,804		—			—			(6,096		)	(35,815		)	(19,678		)	366,215
Operating income	134,646		(5,984		)	122,077			6,096			35,815			19,678			312,328
Other loss	525		—			—			—			—			—			525
Interest expense, net	18,190		—			—			—			—			—			18,190
Income before income taxes	115,931		(5,984		)	122,077			6,096			35,815			19,678			293,613
Income taxes 1	51,821		(2,238		)	47,451			2,280			3,137			7,360			109,811
Income from continuing operations	$	64,110	$	(3,746	)	$	74,626		$	3,816		$	32,678		$	12,318		$	183,802

Diluted earnings per share from continuing operations	$	0.27	$	(0.02	)	$	0.32		$	0.02		$	0.14		$	0.05		$	0.78

Diluted weighted average common shares outstanding	235,669		235,669			235,669			235,669			235,669			235,669			235,669

Operating Margins:

Gross Profit	2.57%																	3.10%
Operating Expenses	1.95%																	1.67%
Operating Income	0.61%																	1.43%

2 Includes $18.1 million of deal-related transaction costs, primarily related to professional fees with respect to the Walgreens/Alliance Boots transaction, and $1.6 million of restructuring costs.

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)

(dollars in thousands, except per share data)

(unaudited)

	Three Months Ended September 30, 2013
	GAAP			Gain on Antitrust Litigation Settlements			LIFO Expense			Acquisition Related Intangibles Amortization			Warrant Expense			Employee Severance, Litigation and Other			Adjusted Non-GAAP

Revenue	$	24,469,040		$	—		$	—		$	—		$	—		$	—		$	24,469,040
Cost of goods sold	23,901,488			1,135			(153,972		)	—			—			—			23,748,651
Gross profit	567,552			(1,135		)	153,972			—			—			—			720,389
Operating expenses	453,362			—			—			(6,094		)	(50,479		)	(2,084		)	394,705
Operating income	114,190			(1,135		)	153,972			6,094			50,479			2,084			325,684
Other income	(1,207		)	—			—			—			—			—			(1,207		)
Interest expense, net	18,672			—			—			—			—			—			18,672
Income before income taxes	96,725			(1,135		)	153,972			6,094			50,479			2,084			308,219
Income taxes 1	46,164			(434		)	59,414			2,328			9,471			796			117,739
Income from continuing operations	$	50,561		$	(701	)	$	94,558		$	3,766		$	41,008		$	1,288		$	190,480

Diluted earnings per share from continuing operations	$	0.22		$	—		$	0.40		$	0.02		$	0.17		$	0.01		$	0.81

Diluted weighted average common shares outstanding	235,127			235,127			235,127			235,127			235,127			235,127			235,127

Operating Margins:

Gross Profit	2.32%																		2.94%
Operating Expenses	1.85%																		1.61%
Operating Income	0.47%																		1.33%

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)

(dollars in thousands, except per share data)

(unaudited)

	Fiscal Year Ended September 30, 2013
	GAAP		Gain on Antitrust Litigation Settlements			LIFO Expense			Acquisition Related Intangibles Amortization			Warrant Expense			Employee Severance, Litigation and Other			Adjusted Non-GAAP

Revenue	$	87,959,167	$	—		$	—		$	—		$	—		$	—		$	87,959,167
Cost of goods sold	85,451,348		22,883			(277,001		)	—			—			—			85,197,230
Gross profit	2,507,819		(22,883		)	277,001			—			—			—			2,761,937
Operating expenses	1,609,420		—			—			(24,387		)	(90,055		)	(23,467		)	1,471,511
Operating income	898,399		(22,883		)	277,001			24,387			90,055			23,467			1,290,426
Other loss	44		—			—			—			—			—			44
Interest expense, net	73,897		—			—			—			—			—			73,897
Income before income taxes	824,458		(22,883		)	277,001			24,387			90,055			23,467			1,216,485
Income taxes 1	331,023		(8,650		)	107,227			9,246			13,738			8,800			461,384
Income from continuing operations	$	493,435	$	(14,233	)	$	169,774		$	15,141		$	76,317		$	14,667		$	755,101

Diluted earnings per share from continuing operations	$	2.10	$	(0.06	)	$	0.72		$	0.06		$	0.32		$	0.06		$	3.21

Diluted weighted average common shares outstanding	235,345		235,345			235,345			235,345			235,345			235,345			235,345

Operating Margins:

Gross Profit	2.85%																	3.14%
Operating Expenses	1.83%																	1.67%
Operating Income	1.02%																	1.47%

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)

(dollars in thousands, except per share data)

(unaudited)

	Fiscal Year Ended September 30, 2012
	GAAP			Gain on Antitrust Litigation Settlements			LIFO Expense			Acquisition Related Intangibles Amortization			Warrant Expense		Employee Severance, Litigation and Other			Adjusted Non-GAAP

Revenue	$	78,080,806		$	—		$	—		$	—		$	—	$	—		$	78,080,806
Cost of goods sold	75,446,120			14,813			(706		)	—			—		—			75,460,227
Gross profit	2,634,686			(14,813		)	706			—			—		—			2,620,579
Operating expenses	1,331,071			—			—			(18,454		)	—		(44,140		)	1,268,477
Operating income	1,303,615			(14,813		)	706			18,454			—		44,140			1,352,102
Other income	(5,827		)	—			—			—			—		—			(5,827		)
Interest expense, net	92,569			—			—			—			—		—			92,569
Income before income taxes	1,216,873			(14,813		)	706			18,454			—		44,140			1,265,360
Income taxes	455,512			(5,545		)	264			6,908			—		16,523			473,662
Income from continuing operations	$	761,361		$	(9,268	)	$	442		$	11,546		$	—	$	27,617		$	791,698

Diluted earnings per share from continuing operations	$	2.96		$	(0.04	)	$	—		$	0.04		$	—	$	0.11		$	3.08

Diluted weighted average common shares outstanding	256,903			256,903			256,903			256,903			256,903		256,903			256,903

Operating Margins:

Gross Profit	3.37%																	3.36%
Operating Expenses	1.70%																	1.62%
Operating Income	1.67%																	1.73%

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)

(dollars in thousands, except per share data)

(unaudited)

	Fiscal Year Ended September 30, 2011
	GAAP			Gain on Antitrust Litigation Settlements			LIFO Expense			Acquisition Related Intangibles Amortization			Warrant Expense		Employee Severance, Litigation and Other			Adjusted Non-GAAP

Revenue	$	78,695,659		$	—		$	—		$	—		$	—	$	—		$	78,695,659
Cost of goods sold	76,236,682			2,064			(34,708		)	—			—		—			76,204,038
Gross profit	2,458,977			(2,064		)	34,708			—			—		—			2,491,621
Operating expenses	1,269,457			—			—			(9,894		)	—		(23,567		)	1,235,996
Operating income	1,189,520			(2,064		)	34,708			9,894			—		23,567			1,255,625
Other income	(4,617		)	—			—			—			—		—			(4,617		)
Interest expense, net	76,148			—			—			—			—		—			76,148
Income before income taxes	1,117,989			(2,064		)	34,708			9,894			—		23,567			1,184,094
Income taxes 1	420,494			(776		)	13,054			3,721			—		6,748			443,241
Income from continuing operations	$	697,495		$	(1,288	)	$	21,654		$	6,173		$	—	$	16,819		$	740,853

Diluted earnings per share from continuing operations	$	2.51		$	—		$	0.08		$	0.02		$	—	$	0.06		$	2.67

Diluted weighted average common shares outstanding	277,717			277,717			277,717			277,717			277,717		277,717			277,717

Operating Margins:

Gross Profit	3.12%																	3.17%
Operating Expenses	1.61%																	1.57%
Operating Income	1.51%																	1.60%

1 The income tax rate applicable to employee severance, litigation and other is lower than our normal income tax rate as a portion of certain qui tam litigation expense is not tax deductible.

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)

(dollars in thousands, except per share data)

(unaudited)

	Fiscal Year Ended September 30, 2010
	GAAP		Gain on Antitrust Litigation Settlements			LIFO Expense			Acquisition Related Intangibles Amortization			Warrant Expense		Employee Severance, Litigation and Other			Adjusted Non-GAAP

Revenue	$	76,496,106	$	—		$	—		$	—		$	—	$	—		$	76,496,106
Cost of goods sold	74,217,685		20,666			(30,232		)	—			—		—			74,208,119
Gross profit	2,278,421		(20,666		)	30,232			—			—		—			2,287,987
Operating expenses	1,191,083		—			—			(9,840		)	—		4,482			1,185,725
Operating income	1,087,338		(20,666		)	30,232			9,840			—		(4,482		)	1,102,262
Other loss	3,372		—			—			—			—		—			3,372
Interest expense, net	71,790		—			—			—			—		—			71,790
Income before income taxes	1,012,176		(20,666		)	30,232			9,840			—		(4,482		)	1,027,100
Income taxes	385,237		(7,866		)	11,506			3,745			—		(1,706		)	390,916
Income from continuing operations	$	626,939	$	(12,800	)	$	18,726		$	6,095		$	—	$	(2,776	)	$	636,184

Diluted earnings per share from continuing operations	$	2.18	$	(0.04	)	$	0.07		$	0.02		$	—	$	(0.01	)	$	2.21

Diluted weighted average common shares outstanding	287,246		287,246			287,246			287,246			287,246		287,246			287,246

Operating Margins:

Gross Profit	2.98%																2.99%
Operating Expenses	1.56%																1.55%
Operating Income	1.42%																1.44%

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF CONTINUING OPERATIONS (GAAP) TO ADJUSTED CONTINUING OPERATIONS (NON-GAAP)

(dollars in thousands, except per share data)

(unaudited)

	Fiscal Year Ended September 30, 2009
	GAAP		Gain on Antitrust Litigation Settlements		LIFO Expense			Acquisition Related Intangibles Amortization			Warrant Expense		Employee Severance, Litigation and Other			Adjusted Non-GAAP

Revenue	$	70,457,775	$	—	$	—		$	—		$	—	$	—		$	70,457,775
Cost of goods sold	68,424,752		—		(15,088		)	—			—		—			68,409,664
Gross profit	2,033,023		—		15,088			—			—		—			2,048,111
Operating expenses	1,157,307		—		—			(9,662		)	—		(5,406		)	1,142,239
Operating income	875,716		—		15,088			9,662			—		5,406			905,872
Other loss	1,367		—		—			—			—		—			1,367
Interest expense, net	53,991		—		—			—			—		—			53,991
Income before income taxes	820,358		—		15,088			9,662			—		5,406			850,514
Income taxes	311,228		—		5,724			3,666			—		2,051			322,669
Income from continuing operations	$	509,130	$	—	$	9,364		$	5,996		$	—	$	3,355		$	527,845

Diluted earnings per share from continuing operations	$	1.68	$	—	$	0.03		$	0.02		$	—	$	0.01		$	1.74

Diluted weighted average common shares outstanding	302,754		302,754		302,754			302,754			302,754		302,754			302,754

Operating Margins:

Gross Profit	2.89%															2.91%
Operating Expenses	1.64%															1.62%
Operating Income	1.24%															1.29%

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