AmerisourceBergen 2014 Annual Report Download - page 26

(in thousands, except per share data)
(unaudited)
Fiscal year ended September 30, 2014
Gain on Acquisition Employee % Change vs.
Antitrust Related Severance, Loss on Early Prior Year
Warrant Litigation LIFO Intangibles Litigation Retirement Adjusted Adjusted
GAAP Expense (1) Settlements Expense Amortization and Other of Debt Non-GAAP 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 (2) 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) $ 1.21 $ 1.73 $ (0.06) $ 0.92 $ 0.06 $ 0.02 $ 0.09 $ 3.97 (3) 23.7%
Diluted weighted average
common shares outstanding (1) 235,405 232,811 232,811 232,811 232,811 232,811 232,811 232,811
Percentage of revenue:
Gross profit 2.49% 2.76%
Operating expenses 1.84% 1.46%
Operating income 0.65% 1.30%
Fiscal year ended September 30, 2013
Gain on Acquisition Employee
Antitrust Related Severance, Loss on Early
Warrant Litigation LIFO Intangibles Litigation Retirement Adjusted
GAAP Expense (1) Settlements Expense Amortization and Other of Debt 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 (2) 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 (1) $ 2.10 $ 0.32 $ (0.06) $ 0.72 $ 0.06 $ 0.06 $ — $ 3.21(3)
Diluted weighted average
common shares outstanding (1) 235,345 235,345 235,345 235,345 235,345 235,345 — 235,345
Percentage of revenue:
Gross profit 2.85% 3.14%
Operating expenses 1.83% 1.67%
Operating income 1.02% 1.47%
Reconciliation of Continuing Operations (GAAP)
To Adjusted Continuing Operations (Non-GAAP)
24
See notes to consolidated financial statements in the Company’s Annual Report on Form 10-K as filed with the SEC for the Fiscal Year Ended September 30, 2014.
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.
(1) Warrant expense is recorded as an operating expense. For the reconciling items and the non-GAAP presentation, diluted earnings per share from continuing operations and diluted shares outstanding have
been adjusted to exclude the impact from the Warrants and the shares repurchased under a special $650 million share repurchase program. 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.
(2) 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 fiscal year depending upon the annual
changes in the fair value of the Warrants.
(3) The sum of the components may not equal the total due to rounding.