AmerisourceBergen Corporation (NYSE:ABC) today reported that in its fiscal year 2012 fourth quarter ended September 30, 2012, diluted earnings per share from continuing operations increased 23 percent to $0.65, and revenue decreased 4.4 percent to $19.5 billion. The Company expects diluted earnings per share from continuing operations for fiscal year 2013 to be in the range of $3.06 to $3.16, an 11 percent to 14 percent increase over fiscal year 2012 diluted earnings per share from continuing operations of $2.76. All results are presented in accordance with U.S. generally accepted accounting principles (GAAP).
AmerisourceBergen also announced that it is pursuing the sale of AndersonBrecon, its contract pharmaceutical packaging business, so that it can focus on its distribution, specialty, and manufacturer services businesses. The Company has solicited buyers and is currently reviewing initial bids for the business. Income from AndersonBrecon has been classified as income from discontinued operations, and represented $0.04 of the total $2.80 of diluted earnings per share in fiscal year 2012.
Also today, the Board of Directors increased the dividend paid on common stock by 62% and declared a regular quarterly cash dividend of $0.21, payable on December 3, 2012 to shareholders of record on November 19, 2012. In addition, the Board also approved a new $750 million share repurchase authorization. Following the completion of a $650 million accelerated share repurchase program during the September quarter, the Company still has $97 million remaining on its prior May 2012 authorization, bringing the total amount authorized for repurchases to $847 million.
Fiscal Fourth Quarter Highlights
Fiscal Year 2012 Highlights
- Diluted earnings per share from continuing operations of $0.65, a 23 percent increase.
- Gross profit of $719.5 million, up 18.6 percent.
- Operating income of $296.3 million, up 24.8 percent.
- Operating margin of 1.52 percent, up 35 basis points.
- Cash flow from operations of $545 million.
- Share repurchases of $648 million.
- Diluted earnings per share from continuing operations of $2.76, a 10 percent increase.
- Gross profit of $2.7 billion, up 6.7 percent.
- Operating income of $1.3 billion, up 5.6 percent.
- Operating margin of 1.58 percent, up 10 basis points.
- Cash flow from operations of $1.3 billion.
- Share repurchases of $1.2 billion.
“Solid results across all of our business units and contributions from our recent acquisitions drove strong performance in the September quarter and in our full fiscal year 2012,” said Steven H. Collis, AmerisourceBergen President and Chief Executive Officer. “Outstanding performance in AmerisourceBergen Drug Corporation (ABDC), particularly in generic pharmaceuticals, helped overcome a difficult comparison to the prior year and drove operating income growth and margin expansion. The strength of ABDC, as well as the opportunities we see ahead for specialty distribution and our manufacturer services businesses, gave us the confidence to increase our annual dividend by 62% and to complete an accelerated share repurchase of $650 million.