AmerisourceBergen reports $80 billion in fiscal 2012 revenue, looking to divest AndersonBrecon

VALLEY FORGE, Pa. — AmerisourceBergen on Thursday reported revenue dropped 0.6% to $79.5 billion for its fiscal 2012 ended Sept. 30. Diluted earnings per share were a record $2.76, up 10% over the prior fiscal year diluted earnings per share from continuing operations. Gross profit was up 6.7% to $2.7 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,” stated Steven Collis, AmerisourceBergen president and CEO. “Outstanding performance in AmerisourceBergen Drug Corporation, 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."

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. 

The AmerisourceBergen board increased the dividend paid on common stock by 62% and declared a regular quarterly cash dividend of $0.21, payable on Dec. 3 to shareholders of record on Nov. 19. 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.

“Looking ahead, the company expects diluted earnings per share from continuing operations in fiscal year 2013 to be in the range of $3.06 to $3.16, an 11% to 14% increase over fiscal 2012,” Collis said. “Key assumptions supporting that range are: revenue growth in the 6% to 9% range; operating income growth in the 3% to 5% range; an operating margin decline in the low double-digit basis points range; and free cash flow in the range of $750 million to $850 million, which includes capital expenditures in the $180 million range."

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