PharMerica Reports Record Results For The Third Quarter Of 2013

PharMerica Corporation (NYSE:PMC), a national provider of pharmacy services, today reported its financial results for the third quarter and nine months ended September 30, 2013.

Commenting on the Company’s results, Greg Weishar, PharMerica Corporation’s Chief Executive Officer, said, “This quarter’s results demonstrate ongoing improvements in core operations, profitability and cash flows of the Company. Adjusted diluted earnings per share was $0.49, which represents a 29% increase over the third quarter of 2012, and cash flows from operating activities was $78.1 million or a 52% increase over the comparable quarter of last year. Cash flows on a year-to-date basis was $152.0 million, an increase of $48.8 million or 47% versus the same period last year. Adjusted EBITDA on a year-over-year basis increased 18% to $33.9 million, and adjusted EBITDA margin increased 120 basis points to 7.7%.

“Sales productivity continues to improve and we are poised to achieve the goal of organic growth in the near future. Our superior cost containment programs, pharmacy services and industry-leading generic dispensing rate of 83.3% position the Company to further improve client retention and aggressively compete for market share in the long term care market.

“In addition, we recently entered into an exclusive agreement with Innovatix, LLC, a full service non-acute care group purchasing organization. The Innovatix partnership will advance our strategic initiatives and market expansion into home infusion and specialty. Furthermore, we believe ACOs will play an increasingly important role in the long term care market as clients seek to reduce hospital readmissions. Innovatix is well positioned to assist us in helping our clients partner with ACOs, hospitals and physicians.”

Based on the strong performance for the first nine months of 2013, PharMerica now expects the following for the full year 2013:

 
   

Previous Guidance
   

Current Guidance

Revenues

$1.625B to $1.675B

$1.700B to $1.725B

Adjusted diluted earnings per share

$1.55 to $1.60

$1.71 to $1.76

Cash flows from operations

$85M to $95M

$120M to $130M
 

Note: The full year guidance excludes the impact of any future acquisitions or restructuring charges that may be incurred by the Company.

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