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Business Wire 2-May-2023 6:30 AM
Revenue of $63.5 billion for the Second Quarter, a 9.9 Percent Increase Year-Over-Year
Second Quarter GAAP Diluted EPS of $2.13 and Adjusted Diluted EPS of $3.50
Adjusted Diluted EPS Guidance Range Raised to $11.70 to $11.90 for Fiscal 2023
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its fiscal year 2023 second quarter ended March 31, 2023, revenue increased 9.9 percent year-over-year to $63.5 billion. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $2.13 for the second quarter of fiscal 2023 compared to $2.59 in the prior year second quarter. Adjusted diluted EPS, which is a non-GAAP financial measure that excludes items described below, increased 8.7 percent to $3.50 in the fiscal second quarter from $3.22 in the prior year second quarter.
AmerisourceBergen is updating its outlook for fiscal year 2023. The Company does not provide forward-looking guidance on a GAAP basis, as discussed below in Fiscal Year 2023 Expectations. Adjusted diluted EPS guidance has been raised from the previous range of $11.50 to $11.75 to a range of $11.70 to $11.90.
"In our second quarter, AmerisourceBergen continued executing to deliver strong financial performance while advancing our strategic priorities and pursuing thoughtful capital deployment, like our recently announced agreement to invest in OneOncology. The fundamental strength and resilience of our business continue to allow us to capitalize on opportunities provided by our capabilities, while focusing on efficiency and advancing innovation across our footprint," said Steven H. Collis, Chairman, President & Chief Executive Officer of AmerisourceBergen.
"As we move into the second half of our fiscal year, we are pleased to raise our full year financial outlook," Mr. Collis continued. "Our results and the increase in our full-year outlook continue to demonstrate the value of our pharmaceutical-centric strategy, key strategic partnerships, leadership in specialty and global commercialization services."
Second Quarter Fiscal Year 2023 Summary Results
|
GAAP |
Adjusted (Non-GAAP) |
Revenue |
$63.5B |
$63.5B |
Gross Profit |
$2.3B |
$2.4B |
Operating Expenses |
$1.7B |
$1.4B |
Operating Income |
$561M |
$932M |
Interest Expense, Net |
$64M |
$64M |
Effective Tax Rate |
16.4% |
19.0% |
Net Income Attributable to AmerisourceBergen Corporation |
$435M |
$715M |
Diluted Earnings Per Share |
$2.13 |
$3.50 |
Diluted Shares Outstanding |
204.3M |
204.3M |
Below, AmerisourceBergen presents descriptive summaries of the Company's GAAP and adjusted (non-GAAP) quarterly results. In the tables that follow, GAAP results and GAAP to non-GAAP reconciliations are presented. For more information related to non-GAAP financial measures, including adjustments made in the periods presented, please refer to the "Supplemental Information Regarding Non-GAAP Financial Measures" following the tables.
Second Quarter GAAP Results
Second Quarter Adjusted (non-GAAP) Results
Segment Discussion
The Company is organized geographically based upon the products and services it provides to its customers under two reportable segments: U.S. Healthcare Solutions and International Healthcare Solutions.
U.S. Healthcare Solutions
U.S. Healthcare Solutions revenue was $56.7 billion in the second quarter of fiscal 2023, an increase of 11.3 percent compared to the same quarter in the prior fiscal year due to overall market growth primarily driven by unit volume growth, including increased sales to our two largest customers and increased sales of specialty products to physician practices and health systems, offset in part by a decline in sales of commercial COVID-19 treatments. Segment operating income of $756.1 million in the second quarter of fiscal 2023 was up 3.6 percent compared to the same period in the previous fiscal year as a result of an increase in gross profit, offset in part by the increase in operating expenses, which included inflationary impacts on certain operating expenses.
International Healthcare Solutions
Revenue in International Healthcare Solutions was $6.8 billion in the second quarter of fiscal 2023, a decrease of 0.2 percent from the previous fiscal year's second quarter. Segment operating income in the second quarter of fiscal 2023 was $176.0 million, a decrease of 5.9 percent. The period over period declines were due to the June 2022 divestiture of our Brazil specialty business and unfavorable foreign currency exchange rates in the current year quarter in comparison to the prior year quarter. On a constant currency basis, International Healthcare Solutions revenue and operating income increased by 11.9 percent and 7.3 percent, respectively.
Recent Company Highlights & Milestones
Fiscal Year 2023 Expectations
The Company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available or cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.
Fiscal Year 2023 Expectations on an Adjusted (non-GAAP) Basis
AmerisourceBergen is now updating its fiscal year 2023 financial guidance to primarily reflect stronger core growth in the U.S. Healthcare Solutions segment. The Company now expects:
Additional expectations now include:
All other previously communicated aspects of the Company's fiscal year 2023 consolidated financial guidance and assumptions remain the same.
Dividend Declaration
The Company's Board of Directors declared a quarterly cash dividend of $0.485 per common share, payable May 30, 2023, to stockholders of record at the close of business on May 12, 2023.
Conference Call & Slide Presentation
The Company will host a conference call to discuss the results at 8:30 a.m. ET on May 2, 2023. A slide presentation for investors has also been posted on the Company's website at investor.amerisourcebergen.com. Participating in the conference call will be:
The dial-in number for the live call will be (833) 470-1428. From outside the United States and Canada, dial +1 (404) 975-4839. The access code for the call will be 439143. The live call will also be webcast via the Company's website at investor.amerisourcebergen.com. Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.
Replays of the call will be made available via telephone and webcast. A replay of the webcast will be posted on investor.amerisourcebergen.com approximately one hour after the completion of the call and will remain available for one year. The telephone replay will also be available approximately one hour after the completion of the call and will remain available for seven days. To access the telephone replay from within the U.S. and Canada, dial (866) 813-9403. From outside the United States and Canada, dial +44 (204) 525-0658. The access code for the replay is 519030.
Upcoming Investor Events
AmerisourceBergen management will be attending the following investor events in the coming months:
Please check the website for updates regarding the timing of the live presentation webcasts, if any, and for replay information.
About AmerisourceBergen
AmerisourceBergen is a leading global pharmaceutical solutions organization centered on improving the lives of people and animals around the world. We partner with pharmaceutical innovators across the value chain to facilitate and optimize market access to therapies. Care providers depend on us for the secure, reliable delivery of pharmaceuticals, healthcare products, and solutions. Our 44,000+ worldwide team members contribute to positive health outcomes through the power of our purpose: We are united in our responsibility to create healthier futures. AmerisourceBergen is ranked #10 on the Fortune 500 and #21 on the Global Fortune 500 with more than $200 billion in annual revenue. Learn more at investor.amerisourcebergen.com.
AmerisourceBergen's Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"). Words such as "aim," "anticipate," "believe," "can," "continue," "could,", "estimate," "expect," "intend," "may," "might," "on track," "opportunity," "plan," "possible," "potential," "predict," "project," "seek," "should," "strive," "sustain," "synergy," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates 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:
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), in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2022 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.
AMERISOURCEBERGEN CORPORATION FINANCIAL SUMMARY (in thousands, except per share data) (unaudited)
|
|
Three Months Ended March 31, 2023 |
|
% of Revenue |
|
Three Months Ended March 31, 2022 |
|
% of Revenue |
|
% Change |
||
Revenue |
|
$ |
63,457,205 |
|
|
|
$ |
57,719,446 |
|
|
|
9.9% |
|
|
|
|
|
|
|
|
|
|
|
||
Cost of goods sold |
|
|
61,161,763 |
|
|
|
|
55,484,366 |
|
|
|
10.2% |
|
|
|
|
|
|
|
|
|
|
|
||
Gross profit 1 |
|
|
2,295,442 |
|
3.62% |
|
|
2,235,080 |
|
3.87% |
|
2.7% |
|
|
|
|
|
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||
Distribution, selling, and administrative |
|
|
1,321,087 |
|
2.08% |
|
|
1,203,238 |
|
2.08% |
|
9.8% |
Depreciation and amortization |
|
|
241,466 |
|
0.38% |
|
|
175,290 |
|
0.30% |
|
37.8% |
Litigation and opioid-related expenses |
|
|
15,813 |
|
|
|
|
52,090 |
|
|
|
|
Acquisition-related deal and integration expenses |
|
|
59,113 |
|
|
|
|
11,790 |
|
|
|
|
Restructuring and other expenses |
|
|
97,444 |
|
|
|
|
12,515 |
|
|
|
|
Total operating expenses |
|
|
1,734,923 |
|
2.73% |
|
|
1,454,923 |
|
2.52% |
|
19.2% |
|
|
|
|
|
|
|
|
|
|
|
||
Operating income |
|
|
560,519 |
|
0.88% |
|
|
780,157 |
|
1.35% |
|
(28.2)% |
|
|
|
|
|
|
|
|
|
|
|
||
Other income, net |
|
|
(15,720) |
|
|
|
|
(948) |
|
|
|
|
Interest expense, net |
|
|
64,109 |
|
|
|
|
52,916 |
|
|
|
21.2% |
|
|
|
|
|
|
|
|
|
|
|
||
Income before income taxes |
|
|
512,130 |
|
0.81% |
|
|
728,189 |
|
1.26% |
|
(29.7)% |
|
|
|
|
|
|
|
|
|
|
|
||
Income tax expense |
|
|
83,917 |
|
|
|
|
172,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income |
|
|
428,213 |
|
0.67% |
|
|
555,245 |
|
0.96% |
|
(22.9)% |
|
|
|
|
|
|
|
|
|
|
|
||
Net loss (income) attributable to noncontrolling interests |
|
|
7,189 |
|
|
|
|
(7,231) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income attributable to AmerisourceBergen Corporation |
|
$ |
435,402 |
|
0.69% |
|
$ |
548,014 |
|
0.95% |
|
(20.5)% |
|
|
|
|
|
|
|
|
|
|
|
||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
$ |
2.15 |
|
|
|
$ |
2.62 |
|
|
|
(17.9)% |
Diluted |
|
$ |
2.13 |
|
|
|
$ |
2.59 |
|
|
|
(17.8)% |
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
202,316 |
|
|
|
|
209,244 |
|
|
|
(3.3)% |
Diluted |
|
|
204,256 |
|
|
|
|
211,991 |
|
|
|
(3.6)% |
________________________________________ 1 Includes a $54.3 million LIFO expense in the three months ended March 31, 2023 and a $16.1 million LIFO credit in the three months ended March 31, 2022.
AMERISOURCEBERGEN CORPORATION
FINANCIAL SUMMARY (in thousands, except per share data) (unaudited)
|
|
Six Months Ended March 31, 2023 |
|
% of Revenue |
|
Six Months Ended March 31, 2022 |
|
% of Revenue |
|
% Change |
||
Revenue |
|
$ |
126,304,037 |
|
|
|
$ |
117,348,256 |
|
|
|
7.6% |
|
|
|
|
|
|
|
|
|
|
|
||
Cost of goods sold |
|
|
121,862,642 |
|
|
|
|
113,052,817 |
|
|
|
7.8% |
|
|
|
|
|
|
|
|
|
|
|
||
Gross profit 1 |
|
|
4,441,395 |
|
3.52% |
|
|
4,295,439 |
|
3.66% |
|
3.4% |
|
|
|
|
|
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||
Distribution, selling, and administrative |
|
|
2,612,015 |
|
2.07% |
|
|
2,373,348 |
|
2.02% |
|
10.1% |
Depreciation and amortization |
|
|
413,406 |
|
0.33% |
|
|
351,219 |
|
0.30% |
|
17.7% |
Litigation and opioid-related expenses |
|
|
28,519 |
|
|
|
|
84,725 |
|
|
|
|
Acquisition-related deal and integration expenses |
|
|
80,109 |
|
|
|
|
33,140 |
|
|
|
|
Restructuring and other expenses |
|
|
113,684 |
|
|
|
|
23,499 |
|
|
|
|
Impairment of assets |
|
|
— |
|
|
|
|
4,946 |
|
|
|
|
Total operating expenses |
|
|
3,247,733 |
|
2.57% |
|
|
2,870,877 |
|
2.45% |
|
13.1% |
|
|
|
|
|
|
|
|
|
|
|
||
Operating income |
|
|
1,193,662 |
|
0.95% |
|
|
1,424,562 |
|
1.21% |
|
(16.2)% |
|
|
|
|
|
|
|
|
|
|
|
||
Other income, net |
|
|
(22,048) |
|
|
|
|
(6,120) |
|
|
|
|
Interest expense, net |
|
|
110,125 |
|
|
|
|
106,288 |
|
|
|
3.6% |
|
|
|
|
|
|
|
|
|
|
|
||
Income before income taxes |
|
|
1,105,585 |
|
0.88% |
|
|
1,324,394 |
|
1.13% |
|
(16.5)% |
|
|
|
|
|
|
|
|
|
|
|
||
Income tax expense |
|
|
201,202 |
|
|
|
|
319,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income |
|
|
904,383 |
|
0.72% |
|
|
1,004,661 |
|
0.86% |
|
(10.0)% |
|
|
|
|
|
|
|
|
|
|
|
||
Net loss (income) attributable to noncontrolling interests |
|
|
10,764 |
|
|
|
|
(7,542) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income attributable to AmerisourceBergen Corporation |
|
$ |
915,147 |
|
0.72% |
|
$ |
997,119 |
|
0.85% |
|
(8.2)% |
|
|
|
|
|
|
|
|
|
|
|
||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
$ |
4.50 |
|
|
|
$ |
4.77 |
|
|
|
(5.7)% |
Diluted |
|
$ |
4.46 |
|
|
|
$ |
4.71 |
|
|
|
(5.3)% |
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
203,188 |
|
|
|
|
208,900 |
|
|
|
(2.7)% |
Diluted |
|
|
205,306 |
|
|
|
|
211,580 |
|
|
|
(3.0)% |
________________________________________ 1 Includes a $79.3 million LIFO expense and a $49.9 million gain from antitrust litigation settlements in the six months ended March 31, 2023. Includes a $60.7 million LIFO credit in the six months ended March 31, 2022.
AMERISOURCEBERGEN CORPORATION GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited)
|
|
Three Months Ended March 31, 2023 |
|
||||||||||||||||||||||
|
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Loss Attributable to Noncontrolling Interests |
|
Net Income Attributable to ABC |
|
Diluted Earnings Per Share |
|
||||||||
GAAP |
|
$ |
2,295,442 |
|
$ |
1,734,923 |
|
$ |
560,519 |
|
$ |
512,130 |
|
$ |
83,917 |
|
$ |
7,189 |
|
$ |
435,402 |
|
$ |
2.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gains from antitrust litigation settlements |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
(2) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Turkey highly inflationary impact |
|
|
4,855 |
|
|
— |
|
|
4,855 |
|
|
4,455 |
|
|
— |
|
|
— |
|
|
4,455 |
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
LIFO expense |
|
|
54,270 |
|
|
— |
|
|
54,270 |
|
|
54,270 |
|
|
12,676 |
|
|
— |
|
|
41,594 |
|
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition-related intangibles amortization |
|
|
— |
|
|
(140,114) |
|
|
140,114 |
|
|
140,114 |
|
|
32,727 |
|
|
(984) |
|
|
106,403 |
|
|
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Litigation and opioid-related expenses |
|
|
— |
|
|
(15,813) |
|
|
15,813 |
|
|
15,813 |
|
|
3,693 |
|
|
— |
|
|
12,120 |
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition-related deal and integration expenses |
|
|
— |
|
|
(59,113) |
|
|
59,113 |
|
|
59,113 |
|
|
13,808 |
|
|
— |
|
|
45,305 |
|
|
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Restructuring and other expenses |
|
|
— |
|
|
(97,444) |
|
|
97,444 |
|
|
97,444 |
|
|
22,763 |
|
|
— |
|
|
74,681 |
|
|
0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency gain |
|
|
— |
|
|
— |
|
|
— |
|
|
(5,663) |
|
|
— |
|
|
— |
|
|
(5,663) |
|
|
(0.03) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax reform 1 |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,182) |
|
|
(3,244) |
|
|
— |
|
|
1,062 |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Non-GAAP |
|
$ |
2,354,567 |
|
$ |
1,422,439 |
|
$ |
932,128 |
|
$ |
875,494 |
|
$ |
166,342 |
|
$ |
6,205 |
|
$ |
715,357 |
|
$ |
3.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Non-GAAP % change vs. prior year |
|
|
6.2 % |
|
|
9.4 % |
|
|
1.7 % |
|
|
0.9 % |
|
|
(8.5) % |
|
|
|
|
4.7 % |
|
|
8.7 % |
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
Gross profit |
|
3.62% |
|
3.71% |
Operating expenses |
|
2.73% |
|
2.24% |
Operating income |
|
0.88% |
|
1.47% |
________________________________________ 1 Includes tax expense relating to Swiss tax reform and a gain on the currency remeasurement of the related deferred tax assets, the latter of which is recorded within Other Income, Net.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited)
|
|
Three Months Ended March 31, 2022 |
|
||||||||||||||||||||||
|
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Income Attributable to Noncontrolling Interests |
|
Net Income Attributable to ABC |
|
Diluted Earnings Per Share |
|
||||||||
GAAP |
|
$ |
2,235,080 |
|
$ |
1,454,923 |
|
$ |
780,157 |
|
$ |
728,189 |
|
$ |
172,944 |
|
$ |
(7,231) |
|
$ |
548,014 |
|
$ |
2.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gains from antitrust litigation settlements |
|
|
(1,835) |
|
|
— |
|
|
(1,835) |
|
|
(1,835) |
|
|
(427) |
|
|
— |
|
|
(1,408) |
|
|
(0.01) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
LIFO credit |
|
|
(16,059) |
|
|
— |
|
|
(16,059) |
|
|
(16,059) |
|
|
(3,897) |
|
|
— |
|
|
(12,162) |
|
|
(0.06) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition-related intangibles amortization |
|
|
— |
|
|
(77,952) |
|
|
77,952 |
|
|
77,952 |
|
|
18,431 |
|
|
(1,764) |
|
|
57,757 |
|
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Litigation and opioid-related expenses |
|
|
— |
|
|
(52,090) |
|
|
52,090 |
|
|
52,090 |
|
|
5,298 |
|
|
— |
|
|
46,792 |
|
|
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition-related deal and integration expenses |
|
|
— |
|
|
(11,790) |
|
|
11,790 |
|
|
11,790 |
|
|
2,797 |
|
|
— |
|
|
8,993 |
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Restructuring and other expenses |
|
|
— |
|
|
(12,515) |
|
|
12,515 |
|
|
12,515 |
|
|
2,969 |
|
|
— |
|
|
9,546 |
|
|
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Certain discrete tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7,900) |
|
|
6,840 |
|
|
14,740 |
|
|
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax reform 1 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,737 |
|
|
(8,329) |
|
|
— |
|
|
11,066 |
|
|
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Non-GAAP |
|
$ |
2,217,186 |
|
$ |
1,300,576 |
|
$ |
916,610 |
|
$ |
867,379 |
|
$ |
181,886 |
|
$ |
(2,155) |
|
$ |
683,338 |
|
$ |
3.22 |
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
Gross profit |
|
3.87% |
|
3.84% |
Operating expenses |
|
2.52% |
|
2.25% |
Operating income |
|
1.35% |
|
1.59% |
________________________________________ 1 Includes tax expense relating to Swiss tax reform and a loss on the currency remeasurement of the related deferred tax assets, which is recorded within Other Income, Net.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited)
|
|
Six Months Ended March 31, 2023 |
|
||||||||||||||||||||||
|
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Loss Attributable to Noncontrolling Interests |
|
Net Income Attributable to ABC |
|
Diluted Earnings Per Share |
|
||||||||
GAAP |
|
$ |
4,441,395 |
|
$ |
3,247,733 |
|
$ |
1,193,662 |
|
$ |
1,105,585 |
|
$ |
201,202 |
|
$ |
10,764 |
|
$ |
915,147 |
|
$ |
4.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gains from antitrust litigation settlements |
|
|
(49,899) |
|
|
— |
|
|
(49,899) |
|
|
(49,899) |
|
|
(11,657) |
|
|
— |
|
|
(38,242) |
|
|
(0.19) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Turkey highly inflationary impact |
|
|
8,439 |
|
|
— |
|
|
8,439 |
|
|
8,441 |
|
|
— |
|
|
— |
|
|
8,441 |
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
LIFO expense |
|
|
79,320 |
|
|
— |
|
|
79,320 |
|
|
79,320 |
|
|
18,529 |
|
|
— |
|
|
60,791 |
|
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition-related intangibles amortization |
|
|
— |
|
|
(211,992) |
|
|
211,992 |
|
|
211,992 |
|
|
49,522 |
|
|
(2,142) |
|
|
160,328 |
|
|
0.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Litigation and opioid-related expenses |
|
|
— |
|
|
(28,519) |
|
|
28,519 |
|
|
28,519 |
|
|
6,662 |
|
|
— |
|
|
21,857 |
|
|
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition-related deal and integration expenses |
|
|
— |
|
|
(80,109) |
|
|
80,109 |
|
|
80,109 |
|
|
18,714 |
|
|
— |
|
|
61,395 |
|
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Restructuring and other expenses |
|
|
— |
|
|
(113,684) |
|
|
113,684 |
|
|
113,684 |
|
|
26,557 |
|
|
— |
|
|
87,127 |
|
|
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency gain |
|
|
— |
|
|
— |
|
|
— |
|
|
(5,663) |
|
|
— |
|
|
— |
|
|
(5,663) |
|
|
(0.03) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Recovery of non-customer note receivable |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,148) |
|
|
— |
|
|
— |
|
|
(1,148) |
|
|
(0.01) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax reform 1 |
|
|
— |
|
|
— |
|
|
— |
|
|
(6,639) |
|
|
(11,608) |
|
|
— |
|
|
4,969 |
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Non-GAAP |
|
$ |
4,479,255 |
|
$ |
2,813,429 |
|
$ |
1,665,826 |
|
$ |
1,564,301 |
|
$ |
297,921 |
|
$ |
8,622 |
|
$ |
1,275,002 |
|
$ |
6.21 |
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Non-GAAP % change vs. prior year |
|
|
5.8 % |
|
|
9.6 % |
|
|
— % |
|
|
0.1 % |
|
|
(9.7) % |
|
|
|
3.8 % |
|
|
6.9 % |
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
Gross profit |
|
3.52% |
|
3.55% |
Operating expenses |
|
2.57% |
|
2.23% |
Operating income |
|
0.95% |
|
1.32% |
________________________________________ 1 Tax expense relating to 2020 Swiss tax reform and a gain on the currency remeasurement of the related deferred tax assets, the latter of which is recorded within Other Income, Net. 2 The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited)
|
|
Six Months Ended March 31, 2022 |
|
||||||||||||||||||||||
|
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Income Attributable to Noncontrolling Interests |
|
Net Income Attributable to ABC |
|
Diluted Earnings Per Share |
|
||||||||
GAAP |
|
$ |
4,295,439 |
|
$ |
2,870,877 |
|
$ |
1,424,562 |
|
$ |
1,324,394 |
|
$ |
319,733 |
|
$ |
(7,542) |
|
$ |
997,119 |
|
$ |
4.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gains from antitrust litigation settlements |
|
|
(1,835) |
|
|
— |
|
|
(1,835) |
|
|
(1,835) |
|
|
(427) |
|
|
— |
|
|
(1,408) |
|
|
(0.01) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
LIFO credit |
|
|
(60,738) |
|
|
— |
|
|
(60,738) |
|
|
(60,738) |
|
|
(14,142) |
|
|
— |
|
|
(46,596) |
|
|
(0.22) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition-related intangibles amortization |
|
|
— |
|
|
(157,458) |
|
|
157,458 |
|
|
157,458 |
|
|
36,661 |
|
|
(3,554) |
|
|
117,243 |
|
|
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Litigation and opioid-related expenses |
|
|
— |
|
|
(84,725) |
|
|
84,725 |
|
|
84,725 |
|
|
11,210 |
|
|
— |
|
|
73,515 |
|
|
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition-related deal and integration expenses |
|
|
— |
|
|
(33,140) |
|
|
33,140 |
|
|
33,140 |
|
|
7,716 |
|
|
— |
|
|
25,424 |
|
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Restructuring and other expenses |
|
|
— |
|
|
(23,499) |
|
|
23,499 |
|
|
23,499 |
|
|
5,471 |
|
|
— |
|
|
18,028 |
|
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Impairment of assets |
|
|
— |
|
|
(4,946) |
|
|
4,946 |
|
|
4,946 |
|
|
— |
|
|
— |
|
|
4,946 |
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Certain discrete tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(18,979) |
|
|
6,840 |
|
|
25,819 |
|
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax reform 1 |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,570) |
|
|
(17,204) |
|
|
— |
|
|
14,634 |
|
|
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Non-GAAP |
|
$ |
4,232,866 |
|
$ |
2,567,109 |
|
$ |
1,665,757 |
|
$ |
1,563,019 |
|
$ |
330,039 |
|
$ |
(4,256) |
|
$ |
1,228,724 |
|
$ |
5.81 |
2 |
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
Gross profit |
|
3.66% |
|
3.61% |
Operating expenses |
|
2.45% |
|
2.19% |
Operating income |
|
1.21% |
|
1.42% |
________________________________________ 1 Includes tax expense relating to Swiss tax reform and a gain on the currency remeasurement of the related deferred tax assets, which is recorded within Other Income, Net. 2 The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION SUMMARY SEGMENT INFORMATION (in thousands) (unaudited)
|
|
Three Months Ended March 31, |
||||||
Revenue |
|
|
2023 |
|
|
2022 |
|
% Change |
U.S. Healthcare Solutions |
|
$ |
56,693,456 |
|
$ |
50,942,763 |
|
11.3% |
International Healthcare Solutions |
|
|
6,764,935 |
|
|
6,777,691 |
|
(0.2)% |
Intersegment eliminations |
|
|
(1,186) |
|
|
(1,008) |
|
|
|
|
|
|
|
|
|
||
Revenue |
|
$ |
63,457,205 |
|
$ |
57,719,446 |
|
9.9% |
|
|
Three Months Ended March 31, |
||||||
Operating income |
|
|
2023 |
|
|
2022 |
|
% Change |
U.S. Healthcare Solutions |
|
$ |
756,137 |
|
$ |
729,542 |
|
3.6% |
International Healthcare Solutions |
|
|
175,991 |
|
|
187,068 |
|
(5.9)% |
Total segment operating income |
|
|
932,128 |
|
|
916,610 |
|
1.7% |
|
|
|
|
|
|
|
||
Gains from antitrust litigation settlements |
|
|
— |
|
|
1,835 |
|
|
Turkey highly inflationary impact |
|
|
(4,855) |
|
|
— |
|
|
LIFO (expense) credit |
|
|
(54,270) |
|
|
16,059 |
|
|
Acquisition-related intangibles amortization |
|
|
(140,114) |
|
|
(77,952) |
|
|
Litigation and opioid-related expenses |
|
|
(15,813) |
|
|
(52,090) |
|
|
Acquisition-related deal and integration expenses |
|
|
(59,113) |
|
|
(11,790) |
|
|
Restructuring and other expenses |
|
|
(97,444) |
|
|
(12,515) |
|
|
Operating income |
|
$ |
560,519 |
|
$ |
780,157 |
|
(28.2)% |
|
|
|
|
|
|
|
||
Percentages of Revenue: |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
U.S. Healthcare Solutions |
|
|
|
|
|
|
||
Gross profit |
|
|
2.74% |
|
|
2.87% |
|
|
Operating expenses |
|
|
1.40% |
|
|
1.44% |
|
|
Operating income |
|
|
1.33% |
|
|
1.43% |
|
|
|
|
|
|
|
|
|
||
International Healthcare Solutions |
|
|
|
|
|
|
||
Gross profit |
|
|
11.88% |
|
|
11.15% |
|
|
Operating expenses |
|
|
9.28% |
|
|
8.39% |
|
|
Operating income |
|
|
2.60% |
|
|
2.76% |
|
|
|
|
|
|
|
|
|
||
AmerisourceBergen Corporation (GAAP) |
|
|
|
|
|
|
||
Gross profit |
|
|
3.62% |
|
|
3.87% |
|
|
Operating expenses |
|
|
2.73% |
|
|
2.52% |
|
|
Operating income |
|
|
0.88% |
|
|
1.35% |
|
|
|
|
|
|
|
|
|
||
AmerisourceBergen Corporation (Non-GAAP) |
|
|
|
|
|
|
||
Adjusted gross profit |
|
|
3.71% |
|
|
3.84% |
|
|
Adjusted operating expenses |
|
|
2.24% |
|
|
2.25% |
|
|
Adjusted operating income |
|
|
1.47% |
|
|
1.59% |
|
|
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION SUMMARY SEGMENT INFORMATION (in thousands) (unaudited)
|
|
Six Months Ended March 31, |
||||||
Revenue |
|
|
2023 |
|
|
2022 |
|
% Change |
U.S. Healthcare Solutions |
|
$ |
112,930,035 |
|
$ |
103,922,410 |
|
8.7% |
International Healthcare Solutions |
|
|
13,376,213 |
|
|
13,427,473 |
|
(0.4)% |
Intersegment eliminations |
|
|
(2,211) |
|
|
(1,627) |
|
|
|
|
|
|
|
|
|
||
Revenue |
|
$ |
126,304,037 |
|
$ |
117,348,256 |
|
7.6% |
|
|
Six Months Ended March 31, |
||||||
Operating income |
|
|
2023 |
|
|
2022 |
|
% Change |
U.S. Healthcare Solutions |
|
$ |
1,328,553 |
|
$ |
1,298,629 |
|
2.3% |
International Healthcare Solutions |
|
|
337,273 |
|
|
367,128 |
|
(8.1)% |
Total segment operating income |
|
|
1,665,826 |
|
|
1,665,757 |
|
—% |
|
|
|
|
|
|
|
||
Gains from antitrust litigation settlements |
|
|
49,899 |
|
|
1,835 |
|
|
Turkey highly inflationary impact |
|
|
(8,439) |
|
|
— |
|
|
LIFO (expense) credit |
|
|
(79,320) |
|
|
60,738 |
|
|
Acquisition-related intangibles amortization |
|
|
(211,992) |
|
|
(157,458) |
|
|
Litigation and opioid-related expenses |
|
|
(28,519) |
|
|
(84,725) |
|
|
Acquisition-related deal and integration expenses |
|
|
(80,109) |
|
|
(33,140) |
|
|
Restructuring and other expenses |
|
|
(113,684) |
|
|
(23,499) |
|
|
Impairment of assets |
|
|
— |
|
|
(4,946) |
|
|
Operating income |
|
$ |
1,193,662 |
|
$ |
1,424,562 |
|
(16.2)% |
|
|
|
|
|
|
|
||
Percentages of Revenue: |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
U.S. Healthcare Solutions |
|
|
|
|
|
|
||
Gross profit |
|
|
2.60% |
|
|
2.64% |
|
|
Operating expenses |
|
|
1.42% |
|
|
1.39% |
|
|
Operating income |
|
|
1.18% |
|
|
1.25% |
|
|
|
|
|
|
|
|
|
||
International Healthcare Solutions |
|
|
|
|
|
|
||
Gross profit |
|
|
11.53% |
|
|
11.12% |
|
|
Operating expenses |
|
|
9.01% |
|
|
8.38% |
|
|
Operating income |
|
|
2.52% |
|
|
2.73% |
|
|
|
|
|
|
|
|
|
||
AmerisourceBergen Corporation (GAAP) |
|
|
|
|
|
|
||
Gross profit |
|
|
3.52% |
|
|
3.66% |
|
|
Operating expenses |
|
|
2.57% |
|
|
2.45% |
|
|
Operating income |
|
|
0.95% |
|
|
1.21% |
|
|
|
|
|
|
|
|
|
||
AmerisourceBergen Corporation (Non-GAAP) |
|
|
|
|
|
|
||
Adjusted gross profit |
|
|
3.55% |
|
|
3.61% |
|
|
Adjusted operating expenses |
|
|
2.23% |
|
|
2.19% |
|
|
Adjusted operating income |
|
|
1.32% |
|
|
1.42% |
|
|
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
AMERISOURCEBERGEN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
|
March 31, |
|
September 30, |
||
|
|
2023 |
|
|
2022 |
ASSETS |
|
|
|
||
|
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
1,539,406 |
|
$ |
3,388,189 |
Accounts receivable, net |
|
19,491,097 |
|
|
18,452,675 |
Inventories |
|
16,955,245 |
|
|
15,556,394 |
Right to recover assets |
|
1,480,545 |
|
|
1,532,061 |
Prepaid expenses and other |
|
523,348 |
|
|
660,439 |
Total current assets |
|
39,989,641 |
|
|
39,589,758 |
|
|
|
|
||
Property and equipment, net |
|
2,149,937 |
|
|
2,135,003 |
Goodwill and other intangible assets |
|
14,518,383 |
|
|
12,836,623 |
Deferred income taxes |
|
228,524 |
|
|
237,571 |
Other long-term assets |
|
1,879,698 |
|
|
1,761,661 |
|
|
|
|
||
Total assets |
$ |
58,766,183 |
|
$ |
56,560,616 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
|
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
42,734,822 |
|
$ |
40,192,890 |
Other current liabilities |
|
2,069,996 |
|
|
2,214,592 |
Short-term debt |
|
266,279 |
|
|
1,070,473 |
Total current liabilities |
|
45,071,097 |
|
|
43,477,955 |
|
|
|
|
||
Long-term debt |
|
4,666,532 |
|
|
4,632,360 |
|
|
|
|
||
Accrued income taxes |
|
272,292 |
|
|
320,274 |
Deferred income taxes |
|
1,741,795 |
|
|
1,620,413 |
Other long-term liabilities |
|
1,055,255 |
|
|
976,583 |
Accrued litigation liability |
|
5,448,075 |
|
|
5,461,758 |
|
|
|
|
||
Total equity |
|
511,137 |
|
|
71,273 |
|
|
|
|
||
Total liabilities and stockholders' equity |
$ |
58,766,183 |
|
$ |
56,560,616 |
AMERISOURCEBERGEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
|
Six Months Ended March 31, |
||||
|
|
2023 |
|
|
2022 |
Operating Activities: |
|
|
|
||
Net income |
$ |
904,383 |
|
$ |
1,004,661 |
Adjustments to reconcile net income to net cash provided by operating activities |
|
527,840 |
|
|
423,420 |
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|
|
|
||
Accounts receivable |
|
(861,202) |
|
|
(527,521) |
Inventories |
|
(1,413,515) |
|
|
(215,479) |
Accounts payable |
|
2,391,172 |
|
|
598,411 |
Other, net |
|
(209,090) |
|
|
(153,496) |
Net cash provided by operating activities |
|
1,339,588 |
|
|
1,129,996 |
|
|
|
|
||
Investing Activities: |
|
|
|
||
Capital expenditures |
|
(178,581) |
|
|
(209,343) |
Cost of acquired companies, net of cash acquired 1 |
|
(1,409,681) |
|
|
(124,158) |
Other, net |
|
(11,633) |
|
|
(3,663) |
Net cash used in investing activities |
|
(1,599,895) |
|
|
(337,164) |
|
|
|
|
||
Financing Activities: |
|
|
|
||
Net debt repayments |
|
(685,101) |
|
|
(208,790) |
Purchases of common stock 2 |
|
(807,214) |
|
|
(11,396) |
Exercises of stock options |
|
31,712 |
|
|
72,973 |
Cash dividends on common stock |
|
(201,479) |
|
|
(197,923) |
Employee tax withholdings related to restricted share vesting |
|
(67,954) |
|
|
(35,200) |
Other, net |
|
(3,355) |
|
|
(4,251) |
Net cash used in financing activities |
|
(1,733,391) |
|
|
(384,587) |
|
|
|
|
||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
88,822 |
|
|
(5,055) |
|
|
|
|
||
(Decrease) increase in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale |
|
(1,904,876) |
|
|
403,190 |
Less: Increase in cash classified within assets held for sale |
|
— |
|
|
(516) |
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
(1,904,876) |
|
|
402,674 |
|
|
|
|
||
Cash, cash equivalents, and restricted cash at beginning of period 3 |
|
3,593,539 |
|
|
3,070,128 |
|
|
|
|
||
Cash, cash equivalents, and restricted cash at end of period 3 |
$ |
1,688,663 |
|
$ |
3,472,802 |
________________________________________
1 Includes $1,406.3 million for the acquisition of PharmaLex. 2 Includes $28.4 million of purchases in September 2022 that cash settled in October 2022. 3 The following represents a reconciliation of cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents, and restricted cash used in the Condensed Consolidated Statements of Cash Flows:
|
|
March 31, 2023 |
|
September 30, 2022 |
|
March 31, 2022 |
|
September 30, 2021 |
||||
Cash and cash equivalents |
|
$ |
1,539,406 |
|
$ |
3,388,189 |
|
$ |
2,960,759 |
|
$ |
2,547,142 |
Restricted cash (included in Prepaid Expenses and Other) |
|
|
87,740 |
|
|
144,980 |
|
|
452,014 |
|
|
462,986 |
Restricted cash (included in Other Long-Term Assets) |
|
|
61,517 |
|
|
60,370 |
|
|
60,029 |
|
|
60,000 |
Cash, cash equivalents, and restricted cash |
|
$ |
1,688,663 |
|
$ |
3,593,539 |
|
$ |
3,472,802 |
|
$ |
3,070,128 |
SUPPLEMENTAL INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses the non-GAAP financial measures described below. The non-GAAP financial measures should be viewed in addition to, and not in lieu of, financial measures calculated in accordance with GAAP. These supplemental measures may vary from, and may not be comparable to, similarly titled measures by other companies.
The non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company's operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The presented non-GAAP financial measures exclude items that management does not believe reflect the Company's core operating performance because such items are outside the control of the Company or are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. We have included the following non-GAAP earnings-related financial measures in this release:
The Company also presents certain information related to current period operating results in "constant currency," which is a non-GAAP financial measure. These amounts are calculated by translating current period results at the foreign currency exchange rates used in the comparable period in the prior year. The Company presents such constant currency financial information because it has significant operations outside of the United States reporting in currencies other than the U.S. dollar and this presentation provides a framework to assess how its business performed excluding the impact of foreign currency exchange rate fluctuations. For the second quarter of fiscal 2023 in the International Healthcare Solutions segment, (i) revenue of $6.8 billion was negatively impacted by foreign currency translation of $818 million, resulting in revenue on a constant currency basis of $7.6 billion, and (ii) operating income of $176 million was negatively impacted by foreign currency translation of $25 million, resulting in operating income on a constant currency basis of $201 million.
In addition, the Company has provided non-GAAP fiscal year 2023 guidance for diluted earnings per share, operating income, effective income tax rate, and free cash flows that excludes the same or similar items as those that are excluded from the historical non-GAAP financial measures, as well as significant items that are outside the control of the Company or inherently unusual, non-operating, unpredictable, non-recurring or non-cash in nature. The Company does not provide forward looking guidance on a GAAP basis for such metrics because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, LIFO expense (credit) is largely dependent upon the future inflation or deflation of brand and generic pharmaceuticals, which is out of the Company's control, and acquisition-related intangibles amortization depends on the timing and amount of future acquisitions, which cannot be reasonably estimated. Similarly, the timing and amount of favorable and unfavorable settlements, the probable significance of which cannot be determined, are unavailable and cannot be reasonably estimated.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230501005650/en/