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AmerisourceBergen Corporation (NYSE:ABC) today reported that in its fiscal year 2013 first quarter, ended December 31, 2012, diluted earnings per share from continuing operations were $0.69, a 13 percent increase. Revenue in the quarter was $21.5 billion, up 6 percent. The Company also reaffirmed its expectations for fiscal year 2013 diluted earnings per share from continuing operations in the range of $3.06 to $3.16. All the results are presented in accordance with U.S. generally accepted accounting principles (GAAP).
Fiscal First Quarter Highlights
Revenue of $21.5 billion, up 5.7 percent.
Diluted earnings per share from continuing operations of $0.69, a 13.1 percent increase.
Gross profit of $671.9 million, up 15.1 percent.
Operating income of $287.3 million, up 2.1 percent.
Share repurchases of $284.7 million.
“We are off to a solid start in our fiscal year 2013, with December quarter results in line with our expectations,” said Steven H. Collis, AmerisourceBergen President and Chief Executive Officer. “During the quarter, we successfully implemented our previously announced new contract with our largest customer, and we continued to make progress on the integration of World Courier. As we look ahead, we are well positioned to meet our objectives for the year and to continue to have significant financial flexibility.”
Summary of Quarterly Results
Revenue: Revenue was $21.5 billion in the first quarter of fiscal 2013, a 5.7 percent increase over the same quarter in the previous fiscal year, driven by a 4.8 percent increase in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 9.6 percent increase in AmerisourceBergen Specialty Group (ABSG) revenue.
Gross Profit: Gross profit in the fiscal 2013 first quarter was $671.9 million, a 15.1 percent increase over the year-ago same period driven primarily by contributions from the recent addition of World Courier, and a $12.3 million gain from antitrust litigation settlements. Gross profit as a percentage of revenue was 3.13 percent, a 26 basis point improvement over the same period in the previous year.
Operating Expenses: For the first quarter of fiscal 2013, operating expenses were $384.7 million compared with $302.5 million in the prior fiscal year’s first quarter, a 27.2 percent increase. The increase in operating expenses was due to the operating expenses of acquisitions completed in fiscal 2012, and increased depreciation and amortization costs. Compared to the prior year, operating expenses as a percentage of revenue in the fiscal first quarter of 2013 were up 30 basis points to 1.79 percent.
Operating Income: In the fiscal 2013 first quarter, operating income increased 2.1 percent to $287.3 million, due to the increase in gross profit, which was largely offset by the increase in operating expenses. Operating income as a percentage of revenue decreased 5 basis points to 1.34 percent in the period compared with the previous year’s first quarter.
Tax Rate: The effective tax rate for the first quarter of fiscal 2013 was 39.6 percent, compared to 38.2 percent in the previous fiscal year’s first quarter. Going forward, we expect our annualized effective tax rate to be approximately 39.5 percent.
Earnings Per Share: Diluted earnings per share from continuing operations were up 13.1 percent to $0.69 in the first quarter of fiscal 2013 compared to $0.61 in the previous fiscal year’s first quarter. Earnings per share growth exceeded the 1.4 percent growth in income from continuing operations due to the 10.3 percent reduction in diluted average shares outstanding.
Shares Outstanding: Diluted average shares outstanding for the first quarter of fiscal year 2013 were 236.0 million, down 27.1 million shares from the previous fiscal year’s first quarter due primarily to share repurchases, net of option exercises over the last twelve months.
The Pharmaceutical Distribution segment includes both AmerisourceBergen Drug Corporation and AmerisourceBergen Specialty Group. Other includes AmerisourceBergen Consulting Services (ABCS) and World Courier. The results of operations from AndersonBrecon are reported as income from discontinued operations.