AmerisourceBergen 2007 Annual Report Download - page 14

Our associates delivered strong performance in our fiscal year ended September 30, 2007 as
AmerisourceBergen continued to successfully execute on its strategy of focusing solely on the
pharmaceutical supply channel. Operating revenue increased 9% to a record $62 billion and
operating income in our Pharmaceutical Distribution Segment increased 14%. Diluted earnings
per share from continuing operations for the year were $2.63, up 16%. Our compounded growth
in EPS from continuing operations is over 16% for the last six years. We generated $1.2 billion
in cash flows from operations for the fiscal year. Our balance sheet continues to be strong and
we have excellent financial flexibility.
Our business continues to be solidly anchored in pharmaceutical distribution with the
ability to provide value-added services up and down the pharmaceutical supply channel. Our
AmerisourceBergen Drug Corporation (ABDC) had an exceptional year. FY07 was the first year
ABDC enjoyed the full benefits of our five-year integration plan as well as the transition to
afee-for-service model with our branded pharmaceutical suppliers.
AmerisourceBergen Specialty Group (ABSG) grew revenues 23% for the year as its strong
position in the distribution of specialty pharmaceuticals and provision of related services, primarily
to physicians, continued to drive growth well above the pharmaceutical market.
With a record number ofcontract packaging wins in fiscal 2007, our AmerisourceBergen
PackagingGroup continued its solid performance in the year. The pipeline in contract packaging
remains strong, as manufacturers continue to outsource this capability. Our workers’ compensation
business, PMSI, continued to be challenged in the year and is in the midst of a turnaround effort.
On July 31, 2007, we spun off our PharMerica Long-Term Care business to you, our shareholders,
combining it with another institutional pharmacy to create a new public company, PharMerica
Corporation (NYSE: PMC), with revenues approaching $2 billion. We think PMC has an excellent future.
We used our strong cash position to repurchase $1.4 billion of our stock during the fiscal
year and used approximately $170 million in the fiscal year to acquire companies enhancing our
value added services. In October 2007, we purchased Bellco Health for $181 million. With about
$2 billion in annual revenue, Bellco is a premier pharmaceutical distributor in the Metro New York
City area, with national distribution programs to dialysis clinics as well as a generic telemarketing
operation in Florida. Bellco is a great addition to ABDC.
As I look ahead, I continue to see a bright future for AmerisourceBergen. Our associates,
who work every day meeting the needs of our customers, knowing that people’s lives and health
dependon what they do, continue to execute their jobs with creativity and enthusiasm. It is a
privilege for me to work with them on your behalf.
The pharmaceutical market continues its strong growth and our position in the industry
remains robust. We have the best customer base in the industry to capitalize on our two growth
drivers: genericpharmaceuticals andspecialty pharmaceuticals.
Thank you for your continued support and interest in AmerisourceBergen.
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EXECUTIVE OFFICERS
R. David Yost
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Michael D. DiCandilo
EXECUTIVE VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
Steven H. Collis
EXECUTIVE VICE PRESIDENT AND PRESIDENT,
AMERISOURCEBERGEN SPECIALTY GROUP
Terrance P. Haas
EXECUTIVE VICE PRESIDENT AND
CHIEF INTEGRATION OFFICER
John G. Chou
SENIOR VICE PRESIDENT,
GENERAL COUNSEL AND SECRETARY
Jeanne B. Fisher
SENIOR VICE PRESIDENT, HUMAN RESOURCES
OTHER CORPORATE OFFICERS
Leonardo DeCandia
SENIOR VICE PRESIDENT,
SUPPLYCHAIN MANAGEMENT
Thomas H. Murphy
SENIOR VICE PRESIDENT AND
CHIEF INFORMATION OFFICER
David M. Senior
SENIOR VICE PRESIDENT,
STRATEGY AND CORPORATE DEVELOPMENT
Tim G. Guttman
VICE PRESIDENT AND CORPORATE CONTROLLER
J.F. Quinn
VICE PRESIDENT AND CORPORATE TREASURER
Vicki L. Bausinger
MANAGER, STOCKHOLDER RELATIONS AND
ASSISTANT SECRETARY
To Our Shareholders:
R. David Yost
President and Chief Executive Officer
December 11, 2007