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Exhibit 99.1

 

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AmerisourceBergen Corporation

 

 

P.O. Box 959
Valley Forge, PA 19482

 

 

 

Contact:

 

Barbara Brungess

 

 

Vice President, Corporate & Investor Relations

 

 

610-727-7199

 

 

bbrungess@amerisourcebergen.com

 

 

 

 

AMERISOURCEBERGEN REPORTS

FOURTH QUARTER AND FISCAL YEAR 2014 RESULTS

Expects Fiscal 2015 Adjusted Diluted EPS from Continuing Operations

 to be in the range of $4.36 to $4.50

 

VALLEY FORGE, PA, October 30, 2014 ¾ AmerisourceBergen Corporation (NYSE:ABC) today reported that in its fiscal year 2014 fourth quarter ended September 30, 2014, adjusted diluted earnings per share from continuing operations increased 35.8 percent to $1.10.  Revenue increased 29.1 percent to $31.6 billion in the quarter.  On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share from continuing operations were $0.29 for the September quarter of fiscal 2014.  In the tables that follow, we present our GAAP results as well as a reconciliation of GAAP income from continuing operations to adjusted non-GAAP income from continuing operations.

 

“We delivered exceptional performance in our September quarter, completing a very strong year driven by the onboarding of substantial new business, and outstanding operational and financial results,” said Steven H. Collis, AmerisourceBergen President and Chief Executive Officer.  “We generated excellent free cash flow, improved our balance sheet, and returned funds to shareholders.   Over the course of the full year, we made important progress on our strategic objectives by investing in our people, in our infrastructure, and in assets that help expand our international presence.  We enter fiscal 2015 with strong momentum and in excellent position to continue to shape healthcare delivery on an increasingly global basis.”

 

The comments below compare adjusted results from continuing operations, which exclude:

 

·    Warrant expense;

 

·    Gains on antitrust litigation settlements;

 

·    LIFO expense;

 

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·    Acquisition related intangibles amortization;

 

·    Employee severance, litigation, and other expenses; and

 

·    Loss on early retirement of debt.

 

In addition, we calculate our adjusted earnings per share for each period using a diluted weighted average share count, which excludes the accounting dilution resulting from the impact of the unexercised equity warrants, and the impact from the shares repurchased under our special $650 million share repurchase program.  Solely in connection with the special share repurchase program, we issued $600 million of 1.15% senior notes due in May 2017.  The interest expense incurred relating to this borrowing is also excluded from the non-GAAP presentation.

 

 

Summary of Adjusted Quarterly Results

 

·    Revenue:  In the fourth quarter of fiscal 2014, revenue was $31.6 billion, up 29.1 percent compared to the same quarter in the previous fiscal year, reflecting a 33 percent increase in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 13 percent increase in AmerisourceBergen Specialty Group (ABSG) revenue.

 

·    Gross Profit:  Gross profit in the fiscal 2014 fourth quarter was $926.9 million, a 28.7 percent increase over the same period in the previous year, driven by strong overall revenue growth and generic sales in ABDC.  Gross profit as a percentage of revenue decreased 1 basis point to 2.93 percent, primarily due to the increase in lower margin brand business, which was offset in part by an increase in the contribution from the sale of generic products.

 

·    Operating Expenses:  In the fourth quarter of fiscal 2014, operating expenses were $503.1 million, up 27.5 percent over the same period in the last fiscal year.  The increase in operating expenses in the quarter was due primarily to costs associated with onboarding the new Walgreen Co. business, an increase in employee incentive compensation, and expenses relating to the launch of the AmerisourceBergen Foundation.  Operating expenses as a percentage of revenue in the fiscal 2014 fourth quarter were 1.59 percent compared with 1.61 percent for the same period in the previous fiscal year.

 

·    Operating Income:  In the fiscal 2014 fourth quarter, operating income of $423.8 million was up 30.1 percent versus the prior year, driven primarily by the increase in gross profit. Operating income as a percentage of revenue increased 1 basis point to 1.34 percent in the fiscal 2014 fourth quarter compared to the previous year’s fourth quarter.

 

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·                  Tax Rate:  The effective tax rate for the fourth quarter of fiscal 2014 was 37.5 percent, slightly lower than the previous fiscal year’s fourth quarter.  Going forward, we expect our annualized effective tax rate to be approximately 37.0 percent.

 

·    Earnings Per Share:  Diluted earnings per share from continuing operations were up 35.8 percent to $1.10 in the fourth quarter of fiscal year 2014 compared to $0.81 in the previous fiscal year’s fourth quarter, driven by the strong increase in operating income.

 

·    Shares Outstanding:  Diluted weighted average shares outstanding for the fourth quarter of fiscal year 2014 were 230.9 million, a 1.8 percent decrease versus the prior year due to share repurchases, offset in part by option exercises.

 

 

Segment Discussion

 

The Pharmaceutical Distribution segment includes both AmerisourceBergen Drug Corporation and AmerisourceBergen Specialty Group.  Other includes AmerisourceBergen Consulting Services (ABCS) and World Courier.

 

 

Pharmaceutical Distribution Segment

 

In the fourth fiscal quarter of 2014, Pharmaceutical Distribution revenues were $31.0 billion, an increase of 29 percent compared to the same quarter in the prior year.  ABDC revenues increased 33 percent, due primarily to the onboarding of all of the new Walgreens branded pharmaceuticals business and a substantial portion of their generic pharmaceuticals business, and increased branded pharmaceutical sales to our other large customers.  ABSG revenues increased 13 percent, driven by strong performance in our blood products, vaccine, and specialty distribution businesses.  Intrasegment revenues between ABDC and ABSG have been eliminated in the presentation of total Pharmaceutical Distribution revenue.  Total intrasegment revenues were $1.1 billion and $934.2 million in the quarters ended September 30, 2014 and 2013, respectively.

 

Operating income of $386.5 million in the September quarter of fiscal 2014 increased 31 percent compared to the same period in the previous year due to the new Walgreens branded and generic pharmaceuticals business in ABDC, and strong contributions from generics overall.

 

 

Other

 

Revenues in Other were $652.2 million in the fourth quarter of fiscal 2014, an increase of 26 percent over the same period in the prior year.  Operating income of $37.4 million was 25 percent

 

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higher than the fourth quarter of the prior year, due primarily to solid performance in World Courier offset in part by a decline in our consulting businesses.

 

 

Summary of Fiscal Year 2014

 

In fiscal year 2014, adjusted diluted earnings per share from continuing operations were $3.97, an increase of 23.7% over the prior fiscal year.  Revenue of $119.6 billion was up 35.9% over the last fiscal year.  Gross profit increased 19.7% and operating income increased 20.6%, driven primarily by the increase in revenues.  Operating income margin decreased 17 basis points to 1.30% due to the new Walgreens business.  Diluted weighted average shares outstanding in fiscal 2014 were 232.8 million, down one percent from the prior fiscal year.

 

 

Fiscal Year 2015 Expectations

 

AmerisourceBergen expects adjusted diluted earnings per share from continuing operations in fiscal year 2015 to be in the range of $4.36 to $4.50, an increase of 10 to 13 percent over fiscal 2014.  We expect revenue growth in the 7 percent to 8 percent range, and adjusted operating income growth in the 8 percent to 10 percent range.  Adjusted operating margin is expected to be flat to up slightly in the low single digit basis points range.   We expect free cash flow to be in the range of $1.4 to $1.7 billion, with capital expenditures in the $300 million range for the full year.  In addition, we expect to spend approximately $400 million in share repurchases under our regular repurchase program, and $400 million under our special repurchase program, subject to market conditions.

 

 

Conference Call

 

The Company will host a conference call to discuss the results at 11:00 a.m. Eastern Time on October 30, 2014.

 

Participating in the conference call will be:

 

Steven H. Collis, President & Chief Executive Officer

 

Tim G. Guttman, Senior Vice President & Chief Financial Officer

 

 

The dial-in number for the live call will be (612) 288-0329.  No access code is required.

The live call will also be webcast via the Company’s website at www.amerisourcebergen.com.  Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.

 

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Replays of the call will be made available via telephone and webcast.  A replay of the webcast will be posted on www.amerisourcebergen.com approximately two hours after the completion of the call and will remain available for thirty days.  The telephone replay will also be available approximately two hours after the completion of the call and will remain available for seven days.  To access the telephone replay from within the US, dial (800) 475-6701.  From outside the US, dial (320) 365-3844.  The access code for the replay is 338765.

 

About AmerisourceBergen

 

AmerisourceBergen is one of the largest global pharmaceutical sourcing and distribution services companies, helping both healthcare providers and pharmaceutical and biotech manufacturers improve patient access to products and enhance patient care. With services ranging from drug distribution and niche premium logistics to reimbursement and pharmaceutical consulting services, AmerisourceBergen delivers innovative programs and solutions across the pharmaceutical supply channel. With nearly $120 billion in annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs approximately 14,000 people. AmerisourceBergen is ranked #28 on the Fortune 500 list. For more information, go to www.amerisourcebergen.com.

 

AmerisourceBergen’s Cautionary Note Regarding Forward-Looking Statements

Certain of the statements contained in this news release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words such as “expect,” “likely,” “outlook,” “forecast,” “would,” “could,” “should,” “can,” “will,” “project,” “intend,” “plan,” “continue,” “sustain,” “synergy,” “on track,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “possible,” “assume,” variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and are subject to uncertainty and change in circumstances. These statements are not guarantees of future performance and are based on assumptions that could prove incorrect or could cause actual results to vary materially from those indicated. Among the factors that could cause actual results to differ materially from those projected, anticipated, or implied are the following: changes in pharmaceutical market growth rates; the loss of one or more key customer or supplier relationships; the retention of key customer or supplier relationships under less favorable economics; changes in customer mix; customer delinquencies, defaults or insolvencies; supplier defaults or insolvencies; changes in branded and/or generic pharmaceutical manufacturers’ pricing and distribution policies or practices; adverse resolution of any contract or other dispute with customers or suppliers; federal and state government enforcement initiatives to detect and prevent suspicious orders of controlled substances and the diversion of controlled substances, federal and state prosecution of alleged violations of related laws and regulations, and any related litigation, including shareholder derivative lawsuits or other disputes relating to AmerisourceBergen’s distribution of controlled substances; qui tam litigation for alleged violations of fraud and abuse laws and regulations and/or any other laws and regulations governing the marketing, sale, purchase and/or dispensing of pharmaceutical products or services and any related litigation, including shareholder derivative lawsuits; changes in federal and state legislation or regulatory action affecting pharmaceutical product pricing or reimbursement policies, including under Medicaid and Medicare, and the effect of such changes on AmerisourceBergen’s customers; changes in regulatory or clinical medical guidelines and/or labeling for the pharmaceutical products we distribute; price inflation in branded and generic pharmaceuticals and price deflation in generics; greater or less than anticipated benefit from launches of the generic versions of previously patented pharmaceutical products; significant breakdown or interruption of AmerisourceBergen’s information technology systems; AmerisourceBergen’s inability to realize the anticipated benefits of the implementation of an enterprise resource planning (ERP) system; interest rate and foreign currency exchange rate fluctuations; risks associated with international business operations, including non-compliance with the U.S. Foreign Corrupt Practices Act, anti-bribery laws and economic sanctions and import laws and regulations; economic, business, competitive and/or regulatory developments in countries where we do business and/or operate outside of the United States; risks associated with the strategic, long-term relationship among Walgreen Co., Alliance Boots GmbH, and AmerisourceBergen, the occurrence of any event, change or other circumstance that could give rise to the termination, cross-termination or modification of any of the transaction documents among the parties (including, among others, the distribution agreement or the generics agreement), an impact on AmerisourceBergen’s earnings per share resulting from the issuance of the warrants to subsidiaries of Walgreen Co. and Alliance Boots GmbH (the “Warrants”), an inability to realize anticipated benefits (including benefits resulting from participation in the Walgreens Boots Alliance Development GmbH joint venture), the disruption of AmerisourceBergen’s cash flow and ability to return value to its stockholders in accordance with its past practices, disruption of or changes in vendor, payer and customer relationships and terms, and the reduction of AmerisourceBergen’s operational, strategic or financial flexibility; the acquisition of businesses that do not perform as we expect or that are difficult for us to integrate or control; AmerisourceBergen’s inability to implement its hedging strategy to mitigate the potentially dilutive effect of the issuance of shares of its common stock upon exercise of the Warrants, including its inability to repurchase shares of its common stock under its special share repurchase program due to its financial performance, the current and future share price of its common stock, its expected cash flows,

 

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competing priorities for capital, and overall market conditions; AmerisourceBergen’s inability to successfully complete any other transaction that we may wish to pursue from time to time; changes in tax laws or legislative initiatives that could adversely affect AmerisourceBergen’s tax positions and/or AmerisourceBergen’s tax liabilities or adverse resolution of challenges to AmerisourceBergen’s tax positions; increased costs of maintaining, or reductions in AmerisourceBergen’s ability to maintain, adequate liquidity and financing sources; volatility and deterioration of the capital and credit markets; natural disasters or other unexpected events that affect AmerisourceBergen’s operations; and other economic, business, competitive, legal, tax, regulatory and/or operational factors affecting AmerisourceBergen’s business generally. Certain additional factors that management believes could cause actual outcomes and results to differ materially from those described in forward-looking statements are set forth (i) in Item 1A (Risk Factors) and Item 1 (Business) in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013 and elsewhere in that report and (ii) in other reports.

 

# # #

 

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AMERISOURCEBERGEN CORPORATION

FINANCIAL SUMMARY

(In thousands, except per share data)

(unaudited)

 

 

 

Three

 

 

 

Three

 

 

 

 

 

 

Months Ended

 

 

 

Months Ended

 

 

 

 

 

 

September 30,

 

% of

 

September 30,

 

% of

 

%

 

 

2014

 

Revenue

 

2013

 

Revenue

 

Change

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$31,588,708 

 

100.00%

 

$24,469,040

 

100.00%

 

29.1%

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

30,716,164 

 

 

 

23,901,488

 

 

 

28.5%

 

 

 

 

 

 

 

 

 

 

 

Gross profit 1

 

872,544 

 

2.76%

 

567,552

 

2.32%

 

53.7%

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

Distribution, selling and administrative

 

459,249 

 

1.45%

 

358,303

 

1.46%

 

28.2%

Depreciation and amortization

 

49,512 

 

0.16%

 

42,496

 

0.17%

 

16.5%

Warrants

 

155,739 

 

0.49%

 

50,479

 

0.21%

 

 

Employee severance, litigation and other

 

781 

 

- %

 

2,084

 

0.01%

 

 

Total operating expenses

 

665,281 

 

2.11%

 

453,362

 

1.85%

 

46.7%

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

207,263 

 

0.66%

 

114,190

 

0.47%

 

81.5%

 

 

 

 

 

 

 

 

 

 

 

Other loss (income)

 

1,332 

 

- %

 

(1,207)

 

- %

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

17,653 

 

0.06%

 

18,672

 

0.08%

 

-5.5%

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

188,278 

 

0.60%

 

96,725

 

0.40%

 

94.7%

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

120,476 

 

0.38%

 

46,164

 

0.19%

 

161.0%

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

67,802 

 

0.21%

 

50,561

 

0.21%

 

34.1%

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations, net of income taxes

 

-     

 

 

 

462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$67,802 

 

0.21%

 

$51,023

 

0.21%

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$0.30 

 

 

 

$0.22

 

 

 

36.4%

Discontinued operations

 

-     

 

 

 

-    

 

 

 

 

Total

 

$0.30 

 

 

 

$0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$0.29 

 

 

 

$0.22

 

 

 

31.8%

Discontinued operations

 

-     

 

 

 

-    

 

 

 

 

Total

 

$0.29 

 

 

 

$0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

224,087 

 

 

 

230,478

 

 

 

 

Diluted 2

 

235,074 

 

 

 

235,127

 

 

 

- %

 

1 Includes a $54.4 million LIFO expense in the three months ended September 30, 2014.  Includes a $154.0 million LIFO expense and a $1.1 million gain from antitrust litigation settlements in the three months ended September 30, 2013.

2 Includes the dilutive effect of stock options, restricted stock, restricted stock units and the Warrants issued to Walgreens and Alliance Boots.

 



 

AMERISOURCEBERGEN CORPORATION

FINANCIAL SUMMARY

(In thousands, except per share data)

(unaudited)

 

 

 

Fiscal

 

 

 

Fiscal

 

 

 

 

 

 

Year Ended

 

 

 

Year Ended

 

 

 

 

 

 

September 30,

 

% of

 

September 30,

 

% of

 

%

 

 

2014

 

Revenue

 

2013

 

Revenue

 

Change

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$119,569,127

 

100.00%

 

$87,959,167

 

100.00%

 

35.9%

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

116,586,761

 

 

 

85,451,348

 

 

 

36.4%

 

 

 

 

 

 

 

 

 

 

 

Gross profit 1

 

2,982,366

 

2.49%

 

2,507,819

 

2.85%

 

18.9%

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

Distribution, selling and administrative

 

1,587,261

 

1.33%

 

1,333,712

 

1.52%

 

19.0%

Depreciation and amortization

 

185,290

 

0.15%

 

162,186

 

0.18%

 

14.2%

Warrants

 

422,739

 

0.35%

 

90,055

 

0.10%

 

 

Employee severance, litigation and other

 

8,192

 

0.01%

 

23,467

 

0.03%

 

 

Total operating expenses

 

2,203,482

 

1.84%

 

1,609,420

 

1.83%

 

36.9%

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

778,884

 

0.65%

 

898,399

 

1.02%

 

-13.3%

 

 

 

 

 

 

 

 

 

 

 

Other (income) loss

 

(4,360)

 

- %

 

44

 

- %

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

76,862

 

0.06%

 

73,897

 

0.08%

 

4.0%

 

 

 

 

 

 

 

 

 

 

 

Loss on early retirement of debt

 

32,954

 

0.03%

 

-    

 

- %

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

673,428

 

0.56%

 

824,458

 

0.94%

 

-18.3%

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

389,398

 

0.33%

 

331,023

 

0.38%

 

17.6%

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

284,030

 

0.24%

 

493,435

 

0.56%

 

-42.4%

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations, net of income taxes

 

(7,546)

 

 

 

(59,728)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$276,484

 

0.23%

 

$433,707

 

0.49%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$1.25

 

 

 

$2.14

 

 

 

-41.6%

Discontinued operations

 

(0.03)

 

 

 

(0.26)

 

 

 

 

Total

 

$1.22

 

 

 

$1.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$1.21

 

 

 

$2.10

 

 

 

-42.4%

Discontinued operations

 

(0.03)

 

 

 

(0.25)

 

 

 

 

Rounding

 

(0.01)

 

 

 

(0.01)

 

 

 

 

Total

 

$1.17

 

 

 

$1.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

227,367

 

 

 

231,067

 

 

 

 

Diluted 2

 

235,405

 

 

 

235,345

 

 

 

- %

 

1  Includes a $348.1 million LIFO expense and a $24.4 million gain from antitrust litigation settlements in the fiscal year ended September 30, 2014.  Includes a $277.0 million LIFO expense and a $22.9 million gain from antitrust litigation settlements in the fiscal year ended September 30, 2013.

2  Includes the dilutive effect of stock options, restricted stock, restricted stock units and the Warrants issued to Walgreens and Alliance Boots.

 



 

AMERISOURCEBERGEN CORPORATION

RECONCILIATION OF DILUTED SHARES OUTSTANDING (GAAP TO NON-GAAP)

(In thousands)

(unaudited)

 

 

 

 

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

224,087

 

230,478

 

227,367

 

231,067

 

 

 

 

 

 

 

 

 

 

 

Stock option, restricted stock and restricted stock unit dilution

 

4,643

 

4,649

 

4,787

 

4,278

 

 

 

 

 

 

 

 

 

 

 

Warrant dilution

 

6,344

 

-

 

3,251

 

-

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted shares outstanding

 

235,074

 

235,127

 

235,405

 

235,345

 

 

 

 

 

 

 

 

 

 

 

Warrant dilution

 

(6,344)

 

-

 

(3,251)

 

-

 

 

 

 

 

 

 

 

 

 

 

Shares repurchased under a special share repurchase program

 

2,197

 

-

 

657

 

-

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted shares outstanding 1

 

230,927

 

235,127

 

232,811

 

235,345

 

 

 

For the non-GAAP presentation, diluted weighted average common shares outstanding have been adjusted to exclude the impact of the Warrants and the shares repurchased under a special $650 million share repurchase program, which was established to mitigate the potentially dilutive effect of the Warrants and supplements our previously executed hedging strategy.

 



 

AMERISOURCEBERGEN CORPORATION

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

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change
vs.
Prior Year

 

 

 

Three Months Ended September 30, 2014

 

Quarter

 

 

 

GAAP

 

Warrant
Expense
2

 

Gain on
Antitrust
Litigation
Settlements

 

LIFO
Expense

 

Acquisition
Related
Intangibles
Amortization

 

Employee
Severance,
Litigation and
Other

 

Loss on Early
Retirement of
Debt

 

Adjusted
Non-GAAP

 

Adjusted
Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$31,588,708

 

$-

 

$-

 

$-

 

$-

 

$-

 

$-

 

$31,588,708

 

29.1%

 

Cost of goods sold

 

30,716,164

 

-

 

40

 

(54,416)

 

-

 

-

 

-

 

30,661,788

 

29.1%

 

Gross profit

 

872,544

 

-

 

(40)

 

54,416

 

-

 

-

 

-

 

926,920

 

28.7%

 

Operating expenses

 

665,281

 

(155,739)

 

-

 

-

 

(5,683)

 

(781)

 

-

 

503,078

 

27.5%

 

Operating income

 

207,263

 

155,739

 

(40)

 

54,416

 

5,683

 

781

 

-

 

423,842

 

30.1%

 

Other loss

 

1,332

 

-

 

-

 

-

 

(1,228)

 

-

 

-

 

104

 

 

 

Interest expense, net

 

17,653

 

(2,136)

 

-

 

-

 

-

 

-

 

-

 

15,517

 

-16.9%

 

Income before income taxes

 

188,278

 

157,875

 

(40)

 

54,416

 

6,911

 

781

 

-

 

408,221

 

32.4%

 

Income taxes 1

 

120,476

 

7,139

 

(146)

 

22,431

 

2,743

 

339

 

176

 

153,158

 

30.1%

 

Income from continuing operations

 

$67,802

 

$150,736

 

$106

 

$31,985

 

$4,168

 

$442

 

$(176)

 

$255,063

 

33.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations

 

$0.29

 

$0.66

 

$-

 

$0.14

 

$0.02

 

$-

 

$-

 

$1.10

4

35.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding 3

 

235,074

 

230,927

 

230,927

 

230,927

 

230,927

 

230,927

 

230,927

 

230,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentages of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

2.76%

 

 

 

 

 

 

 

 

 

 

 

 

 

2.93%

 

 

 

Operating expenses

 

2.11%

 

 

 

 

 

 

 

 

 

 

 

 

 

1.59%

 

 

 

Operating income

 

0.66%

 

 

 

 

 

 

 

 

 

 

 

 

 

1.34%

 

 

 

 

The amount of Warrant expense deductible for tax purposes is based on the initial valuation of the Warrants.  Therefore, the income tax rate on Warrant expense will vary by quarter depending upon the quarterly changes in the fair value of the Warrants.

 

Warrant expense is recorded as an operating expense.  In connection with the special $650 million share repurchase program, the Company issued $600 million of 1.15% senior notes due in May 2017.  The interest expense incurred relating to this borrowing has been excluded from the non-GAAP presentation.

 

See Reconciliation of Diluted Shares Outstanding (GAAP to non-GAAP).

 

The sum of the components may not equal the total due to rounding.

 

Note: Management considers GAAP financial measures as well as the presented non-GAAP financial measures in evaluating the Company’s operating performance.  Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors.

 



 

AMERISOURCEBERGEN CORPORATION

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

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended September 30, 2013

 

 

 

GAAP

 

Warrant
Expense

 

Gain on
Antitrust
Litigation
Settlements

 

LIFO Expense

 

Acquisition
Related
Intangibles
Amortization

 

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

 

(50,479)

 

-

 

-

 

(6,094)

 

(2,084)

 

394,705

 

Operating income

 

114,190

 

50,479

 

(1,135)

 

153,972

 

6,094

 

2,084

 

325,684

 

Other income

 

(1,207)

 

-

 

-

 

-

 

-

 

-

 

(1,207)

 

Interest expense, net

 

18,672

 

-

 

-

 

-

 

-

 

-

 

18,672

 

Income before income taxes

 

96,725

 

50,479

 

(1,135)

 

153,972

 

6,094

 

2,084

 

308,219

 

Income taxes 1

 

46,164

 

9,471

 

(434)

 

59,414

 

2,328

 

796

 

117,739

 

Income from continuing operations

 

$50,561

 

$41,008

 

$(701)

 

$94,558

 

$3,766

 

$1,288

 

$190,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations

 

$0.22

 

$0.17

 

$-

 

$0.40

 

$0.02

 

$0.01

 

$0.81

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

235,127

 

235,127

 

235,127

 

235,127

 

235,127

 

235,127

 

235,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentages of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

2.32%

 

 

 

 

 

 

 

 

 

 

 

2.94%

 

Operating expenses

 

1.85%

 

 

 

 

 

 

 

 

 

 

 

1.61%

 

Operating income

 

0.47%

 

 

 

 

 

 

 

 

 

 

 

1.33%

 

 

The amount of Warrant expense deductible for tax purposes is based on the initial valuation of the Warrants.  Therefore, the income tax rate on Warrant expense will vary by quarter depending upon the quarterly changes in the fair value of the Warrants.

 

The sum of the components may not equal the total due to rounding.

 

Note: Management considers GAAP financial measures as well as the presented non-GAAP financial measures in evaluating the Company’s operating performance.  Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors.

 



 

AMERISOURCEBERGEN CORPORATION

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

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change vs.

 

 

 

Fiscal Year Ended September 30, 2014

 

Prior Year

 

 

 

GAAP

 

Warrant
Expense 
2

 

Gain on
Antitrust
Litigation
Settlements

 

LIFO
Expense

 

Acquisition
Related
Intangibles
Amortization

 

Employee
Severance,
Litigation and
Other

 

Loss on Early
Retirement of
Debt

 

Adjusted
Non-GAAP

 

Adjusted
Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$119,569,127

 

$-

 

$-

 

$-

 

$-

 

$-

 

$-

 

$119,569,127

 

35.9%

 

Cost of goods sold

 

116,586,761

 

-

 

24,436

 

(348,063)

 

-

 

-

 

-

 

116,263,134

 

36.5%

 

Gross profit

 

2,982,366

 

-

 

(24,436)

 

348,063

 

-

 

-

 

-

 

3,305,993

 

19.7%

 

Operating expenses

 

2,203,482

 

(422,739)

 

-

 

-

 

(23,167)

 

(8,192)

 

-

 

1,749,384

 

18.9%

 

Operating income

 

778,884

 

422,739

 

(24,436)

 

348,063

 

23,167

 

8,192

 

-

 

1,556,609

 

20.6%

 

Other income

 

(4,360)

 

-

 

-

 

-

 

(1,228)

 

-

 

-

 

(5,588)

 

 

 

Interest expense, net

 

76,862

 

(3,062)

 

-

 

-

 

-

 

-

 

-

 

73,800

 

-0.1%

 

Loss on early retirement of debt

 

32,954

 

-

 

-

 

-

 

-

 

-

 

(32,954)

 

-

 

 

 

Income before income taxes

 

673,428

 

425,801

 

(24,436)

 

348,063

 

24,395

 

8,192

 

32,954

 

1,488,397

 

22.4%

 

Income taxes 1

 

389,398

 

26,434

 

(9,370)

 

133,445

 

9,354

 

3,141

 

12,634

 

565,036

 

22.5%

 

Income from continuing operations

 

$284,030

 

$399,367

 

$(15,066)

 

$214,618

 

$15,041

 

$5,051

 

$20,320

 

$923,361

 

22.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations

 

$1.21

 

$1.73

 

$(0.06)

 

$0.92

 

$0.06

 

$0.02

 

$0.09

 

$3.97

4

23.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding 3

 

235,405

 

232,811

 

232,811

 

232,811

 

232,811

 

232,811

 

232,811

 

232,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentages of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

2.49%

 

 

 

 

 

 

 

 

 

 

 

 

 

2.76%

 

 

 

Operating expenses

 

1.84%

 

 

 

 

 

 

 

 

 

 

 

 

 

1.46%

 

 

 

Operating income

 

0.65%

 

 

 

 

 

 

 

 

 

 

 

 

 

1.30%

 

 

 

 

The amount of Warrant expense deductible for tax purposes is based on the initial valuation of the Warrants.  Therefore, the income tax rate on Warrant expense will vary by quarter depending upon the quarterly changes in the fair value of the Warrants.

 

Warrant expense is recorded as an operating expense.  In connection with a special $650 million share repurchase program, the Company issued $600 million of 1.15% senior notes due in May 2017.  The interest expense incurred relating to this borrowing has been excluded from the non-GAAP presentation.

 

See Reconciliation of Diluted Shares Outstanding (GAAP to non-GAAP).

 

The sum of the components may not equal the total due to rounding.

 

Note: Management considers GAAP financial measures as well as the presented non-GAAP financial measures in evaluating the Company’s operating performance.  Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors.

 



 

AMERISOURCEBERGEN CORPORATION

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

(in thousands, except per share data)

(unaudited)

 

 

 

Fiscal Year Ended September 30, 2013

 

 

 

GAAP

 

Warrant
Expense

 

Gain on
Antitrust
Litigation
Settlements

 

LIFO Expense

 

Acquisition
Related
Intangibles
Amortization

 

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

 

(90,055)

 

-

 

-

 

(24,387)

 

(23,467)

 

1,471,511

 

Operating income

 

898,399

 

90,055

 

(22,883)

 

277,001

 

24,387

 

23,467

 

1,290,426

 

Other loss

 

44

 

-

 

-

 

-

 

-

 

-

 

44

 

Interest expense, net

 

73,897

 

-

 

-

 

-

 

-

 

-

 

73,897

 

Income before income taxes

 

824,458

 

90,055

 

(22,883)

 

277,001

 

24,387

 

23,467

 

1,216,485

 

Income taxes 1

 

331,023

 

13,738

 

(8,650)

 

107,227

 

9,246

 

8,800

 

461,384

 

Income from continuing operations

 

$493,435

 

$76,317

 

$(14,233)

 

$169,774

 

$15,141

 

$14,667

 

$755,101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations

 

$2.10

 

$0.32

 

$(0.06)

 

$0.72

 

$0.06

 

$0.06

 

$3.21

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

235,345

 

235,345

 

235,345

 

235,345

 

235,345

 

235,345

 

235,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentages of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

2.85%

 

 

 

 

 

 

 

 

 

 

 

3.14%

 

Operating expenses

 

1.83%

 

 

 

 

 

 

 

 

 

 

 

1.67%

 

Operating income

 

1.02%

 

 

 

 

 

 

 

 

 

 

 

1.47%

 

 

The amount of Warrant expense deductible for tax purposes is based on the initial valuation of the Warrants.  Therefore, the income tax rate on Warrant expense will vary by quarter depending upon the quarterly changes in the fair value of the Warrants.

 

The sum of the components may not equal the total due to rounding.

 

Note: Management considers GAAP financial measures as well as the presented non-GAAP financial measures in evaluating the Company’s operating performance.  Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors.

 



 

AMERISOURCEBERGEN CORPORATION

SUMMARY SEGMENT INFORMATION

(dollars in thousands)

(unaudited)

 

 

 

 

Three Months Ended September 30,

 

Revenue

 

2014

 

2013

 

% Change

 

 

 

 

 

 

 

 

 

Pharmaceutical Distribution

 

$31,016,044

 

$24,002,471

 

29.2%

 

Other

 

652,239

 

518,576

 

25.8%

 

Intersegment eliminations

 

(79,575)

 

(52,007)

 

53.0%

 

 

 

 

 

 

 

 

 

Revenue

 

$31,588,708

 

$24,469,040

 

29.1%

 

 

 

 

 

 

Three Months Ended September 30,

 

Operating Income

 

2014

 

2013

 

% Change

 

 

 

 

 

 

 

 

 

Pharmaceutical Distribution

 

$386,487

 

$295,870

 

30.6%

 

Other

 

37,355

 

29,814

 

25.3%

 

Total segment operating income

 

423,842

 

325,684

 

 

 

Gains on antitrust litigation settlements

 

40

 

1,135

 

 

 

LIFO expense

 

(54,416)

 

(153,972)

 

 

 

Acquisition related intangibles amortization

 

(5,683)

 

(6,094)

 

 

 

Warrant expense

 

(155,739)

 

(50,479)

 

 

 

Employee severance, litigation and other

 

(781)

 

(2,084)

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$207,263

 

$114,190

 

81.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentages of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical Distribution

 

 

 

 

 

 

 

Gross profit

 

2.55%

 

2.52%

 

 

 

Operating expenses

 

1.30%

 

1.29%

 

 

 

Operating income

 

1.25%

 

1.23%

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Gross profit

 

20.92%

 

22.25%

 

 

 

Operating expenses

 

15.19%

 

16.51%

 

 

 

Operating income

 

5.73%

 

5.75%

 

 

 

 

 

 

 

 

 

 

 

AmerisourceBergen Corporation (GAAP)

 

 

 

 

 

 

 

Gross profit

 

2.76%

 

2.32%

 

 

 

Operating expenses

 

2.11%

 

1.85%

 

 

 

Operating income

 

0.66%

 

0.47%

 

 

 

 

 

 

 

 

 

 

 

AmerisourceBergen Corporation (Non-GAAP)

 

 

 

 

 

 

 

Gross profit

 

2.93%

 

2.94%

 

 

 

Operating expenses

 

1.59%

 

1.61%

 

 

 

Operating income

 

1.34%

 

1.33%

 

 

 

 



 

AMERISOURCEBERGEN CORPORATION

SUMMARY SEGMENT INFORMATION

(dollars in thousands)

(unaudited)

 

 

 

 

Fiscal Year Ended September 30,

 

Revenue

 

2014

 

2013

 

% Change

 

 

 

 

 

 

 

 

 

Pharmaceutical Distribution

 

$117,383,967

 

$86,063,531

 

36.4%

 

Other

 

2,449,149

 

2,087,968

 

17.3%

 

Intersegment eliminations

 

(263,989)

 

(192,332)

 

37.3%

 

 

 

 

 

 

 

 

 

Revenue

 

$119,569,127

 

$87,959,167

 

35.9%

 

 

 

 

 

 

Fiscal Year Ended September 30,

 

Operating Income

 

2014

 

2013

 

% Change

 

 

 

 

 

 

 

 

 

Pharmaceutical Distribution

 

$1,405,992

 

$1,162,352

 

21.0%

 

Other

 

150,617

 

128,074

 

17.6%

 

Total segment operating income

 

1,556,609

 

1,290,426

 

 

 

Gains on antitrust litigation settlements

 

24,436

 

22,883

 

 

 

LIFO expense

 

(348,063)

 

(277,001)

 

 

 

Acquisition related intangibles amortization

 

(23,167)

 

(24,387)

 

 

 

Warrant expense

 

(422,739)

 

(90,055)

 

 

 

Employee severance, litigation and other

 

(8,192)

 

(23,467)

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$778,884

 

$898,399

 

-13.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentages of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical Distribution

 

 

 

 

 

 

 

Gross profit

 

2.36%

 

2.64%

 

 

 

Operating expenses

 

1.16%

 

1.29%

 

 

 

Operating income

 

1.20%

 

1.35%

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Gross profit

 

21.84%

 

23.43%

 

 

 

Operating expenses

 

15.69%

 

17.29%

 

 

 

Operating income

 

6.15%

 

6.13%

 

 

 

 

 

 

 

 

 

 

 

AmerisourceBergen Corporation (GAAP)

 

 

 

 

 

 

 

Gross profit

 

2.49%

 

2.85%

 

 

 

Operating expenses

 

1.84%

 

1.83%

 

 

 

Operating income

 

0.65%

 

1.02%

 

 

 

 

 

 

 

 

 

 

 

AmerisourceBergen Corporation (Non-GAAP)

 

 

 

 

 

 

 

Gross profit

 

2.76%

 

3.14%

 

 

 

Operating expenses

 

1.46%

 

1.67%

 

 

 

Operating income

 

1.30%

 

1.47%

 

 

 

 



 

AMERISOURCEBERGEN CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

ASSETS

 

 

 

 

 

September 30,

 

September 30,

 

 

2014

 

2013

 

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$1,808,513

 

$1,231,006

 

Accounts receivable, net

6,312,883

 

6,051,920

 

Merchandise inventories

8,593,852

 

6,981,494

 

Prepaid expenses and other

84,957

 

129,231

 

Total current assets

16,800,205

 

14,393,651

 

 

 

 

 

 

Property and equipment, net

899,582

 

803,561

 

Other long-term assets

3,832,396

 

3,721,426

 

 

 

 

 

 

Total assets

$21,532,183

 

$18,918,638

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

$15,592,834

 

$13,335,792

 

Other current liabilities

1,657,326

 

1,534,843

 

Total current liabilities

17,250,160

 

14,870,635

 

 

 

 

 

 

Long-term debt

1,995,632

 

1,396,606

 

 

 

 

 

 

Other long-term liabilities

329,492

 

331,652

 

 

 

 

 

 

Stockholders’ equity

1,956,899

 

2,319,745

 

 

 

 

 

 

Total liabilities and stockholders’ equity

$21,532,183

 

$18,918,638

 

 



 

AMERISOURCEBERGEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Fiscal

 

Fiscal

 

 

Year Ended

 

Year Ended

 

 

September 30,

 

September 30,

 

 

2014

 

2013

Operating Activities:

 

 

 

 

 

 

Net income

 

$276,484

 

 

$433,707

 

Loss from discontinued operations

 

7,546

 

 

59,728

 

Income from continuing operations

 

284,030

 

 

493,435

 

Adjustments to reconcile income from continuing operations to net cash provided by operating activities 1

 

750,940

 

 

346,541

 

Changes in operating assets and liabilities, excluding the effects of acquisitions:

 

 

 

 

 

 

Accounts receivable

 

(938,286

)

 

(2,312,518

)

Merchandise inventories 2

 

(956,506

)

 

(1,486,572

)

Accounts payable, accrued expenses, and income taxes

 

2,317,589

 

 

3,818,288

 

Other

 

12,932

 

 

(157,186

)

Net cash provided by operating activities - continuing operations

 

1,470,699

 

 

701,988

 

Net cash (used in) provided by operating activities - discontinued operations

 

(7,546

)

 

86,137

 

Net cash provided by operating activities

 

1,463,153

 

 

788,125

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Capital expenditures

 

(264,457

)

 

(202,450

)

Proceeds from sales of businesses

 

-

 

 

329,980

 

Cost of equity investments

 

(117,794

)

 

-

 

Other

 

(1,904

)

 

1,402

 

Net cash (used in) provided by investing activities - continuing operations

 

(384,155

)

 

128,932

 

Net cash used in investing activities - discontinued operations

 

-

 

 

(11,672

)

Net cash (used in) provided by investing activities

 

(384,155

)

 

117,260

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Net borrowings

 

566,402

 

 

-

 

Purchases of common stock 3

 

(753,926

)

 

(484,176

)

Exercises of stock options

 

127,906

 

 

155,713

 

Cash dividends on common stock

 

(214,469

)

 

(195,716

)

Purchases of capped call options

 

(211,397

)

 

(157,295

)

Other

 

(16,007

)

 

(8,975

)

Net cash used in financing activities - continuing operations

 

(501,491

)

 

(690,449

)

Net cash used in financing activities - discontinued operations

 

-

 

 

(50,538

)

Net cash used in financing activities

 

(501,491

)

 

(740,987

)

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

577,507

 

 

164,398

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

1,231,006

 

 

1,066,608

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of year

 

$1,808,513

 

 

$1,231,006

 

 

 

Adjustments include non-cash warrant expense of $422.7 million and $90.1 million for the fiscal year ended September 30, 2014 and 2013, respectively.

 

Merchandise inventories include LIFO expense of $348.1 million and $277.0 million for the fiscal year ended September 30, 2014 and 2013, respectively.

 

Includes purchases made under the special share repurchase program totaling $234.0 million in the fiscal year ended September 30, 2014. Additional purchases made in September 2014 under the special program totaling $18.0 million cash settled in October 2014.