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Business Wire 31-Jul-2024 6:30 AM
Revenue of $74.2 billion for the Third Quarter, a 10.9 Percent Increase Year-Over-Year
Third Quarter GAAP Diluted EPS of $2.42 and Adjusted Diluted EPS of $3.34
Adjusted Diluted EPS Guidance Range Raised to $13.55 to $13.65 for Fiscal 2024
Cencora, Inc. (NYSE:COR) today reported that in its fiscal year 2024 third quarter ended June 30, 2024, revenue increased 10.9 percent year-over-year to $74.2 billion. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $2.42 for the third quarter of fiscal 2024 compared to $2.35 in the prior year third quarter. Adjusted diluted EPS, which is a non-GAAP financial measure that excludes items described below, increased 14.4 percent to $3.34 in the fiscal third quarter from $2.92 in the prior year third quarter.
Cencora is updating its outlook for fiscal year 2024. The Company does not provide forward-looking guidance on a GAAP basis, as discussed below in Fiscal Year 2024 Expectations. Adjusted diluted EPS guidance has been raised from the previous range of $13.35 to $13.55 to a range of $13.55 to $13.65.
"We are pleased to raise our fiscal 2024 guidance following Cencora's strong third quarter results, as our purpose-driven team members exhibited another quarter of solid execution against our pharmaceutical-centric strategy," said Steven H. Collis, Chairman, President & Chief Executive Officer of Cencora.
"Throughout my time as Cencora's CEO, our strategic positioning at the center of healthcare has allowed our company to capitalize on market growth and innovation while enhancing our capabilities to help our customers navigate the complexity of the ever-changing healthcare environment," Mr. Collis continued. "As I move into my new role as Executive Chairman of the Board on October 1st, I am incredibly proud of the growth and evolution of our enterprise, and as COO Bob Mauch concurrently transitions into his new role of CEO, I am confident that Cencora will continue to drive long-term value creation for its partners and stakeholders."
Third Quarter Fiscal Year 2024 Summary Results
|
GAAP |
Adjusted (Non-GAAP) |
Revenue |
$74.2B |
$74.2B |
Gross Profit |
$2.4B |
$2.4B |
Operating Expenses |
$1.7B |
$1.5B |
Operating Income |
$672M |
$878M |
Interest Expense, Net |
$31M |
$31M |
Effective Tax Rate |
22.4% |
21.0% |
Net Income Attributable to Cencora, Inc. |
$483M |
$668M |
Diluted Earnings Per Share |
$2.42 |
$3.34 |
Diluted Shares Outstanding |
200.0M |
200.0M |
Below, Cencora 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.
Third Quarter GAAP Results
Third 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 $67.2 billion in the third quarter of fiscal 2024, an increase of 12.2 percent compared to the same quarter in the previous fiscal year due to overall market growth primarily driven by unit volume growth, including increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class and increased sales of specialty products to physician practices and health systems. Segment operating income of $698.3 million in the third quarter of fiscal 2024 was up 9.9 percent compared to the same period in the previous fiscal year reflecting an increase in gross profit, partially offset by an increase in operating expenses.
International Healthcare Solutions
International Healthcare Solutions revenue of $7.1 billion in the third quarter of fiscal 2024 was flat compared to the previous fiscal year's third quarter. Segment operating income in the third quarter of fiscal 2024 was $179.4 million, a decrease of 4.1 percent, primarily due to higher information technology expenses in our European distribution business and lower operating income at our global specialty logistics business, partially offset by the positive results of our Canadian business. On a constant currency basis, International Healthcare Solutions revenue and operating income increased by 5.8 percent and 0.8 percent, respectively.
Recent Company Highlights & Milestones
Fiscal Year 2024 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 2024 Expectations on an Adjusted (non-GAAP) Basis
Cencora is updating its fiscal year 2024 financial guidance to reflect expected continued strong business performance in the U.S. Healthcare Solutions segment, tapered expectations in the International Healthcare Solutions segment and a lower net interest expense. The Company now expects:
Additional expectations now include:
For additional details regarding updated guidance expectations on a constant currency basis, please refer to our slide presentation for investors.
Dividend Declaration
The Company's Board of Directors declared a quarterly cash dividend of $0.51 per common share, payable August 26, 2024, to stockholders of record at the close of business on August 9, 2024.
Conference Call & Slide Presentation
The Company will host a conference call to discuss its operating results at 8:30 a.m. ET on July 31, 2024. A slide presentation for investors has also been posted on the Company's website at investor.cencora.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 393872. The live call will also be webcast via the Company's website at investor.cencora.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.cencora.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, dial +1 (929) 458-6194. The access code for the replay is 371683.
Upcoming Investor Event
Cencora 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 Cencora
Cencora 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 46,000+ worldwide team members contribute to positive health outcomes through the power of our purpose: We are united in our responsibility to create healthier futures. Cencora is ranked #10 on the Fortune 500 and #24 on the Global Fortune 500 with more than $250 billion in annual revenue. Learn more at investor.cencora.com
Cencora'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. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those indicated is included in (i) the "Risk Factors" and "Management's Discussion and Analysis" sections in the Company's Annual Report on Form 10-K for the fiscal year ended September, 30, 2023 and elsewhere in that report and (ii) 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.
CENCORA, INC. |
||||||||||||||
FINANCIAL SUMMARY |
||||||||||||||
(in thousands, except per share data) |
||||||||||||||
(unaudited) |
||||||||||||||
|
|
Three Months Ended June 30, 2024 |
|
% of Revenue |
|
Three Months Ended June 30, 2023 |
|
% of Revenue |
|
% Change |
||||
Revenue |
|
$ |
74,241,353 |
|
|
|
|
$ |
66,947,043 |
|
|
|
|
10.9% |
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of goods sold |
|
|
71,830,576 |
|
|
|
|
|
64,682,397 |
|
|
|
|
11.1% |
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit 1 |
|
|
2,410,777 |
|
|
3.25% |
|
|
2,264,646 |
|
|
3.38% |
|
6.5% |
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||
Distribution, selling, and administrative |
|
|
1,383,206 |
|
|
1.86% |
|
|
1,304,141 |
|
|
1.95% |
|
6.1% |
Depreciation and amortization |
|
|
272,595 |
|
|
0.37% |
|
|
274,272 |
|
|
0.41% |
|
(0.6)% |
Litigation and opioid-related expenses (credit), net 2 |
|
|
14,485 |
|
|
|
|
|
(67,102 |
) |
|
|
|
|
Acquisition-related deal and integration expenses |
|
|
25,758 |
|
|
|
|
|
19,283 |
|
|
|
|
|
Restructuring and other expenses |
|
|
42,257 |
|
|
|
|
|
63,924 |
|
|
|
|
|
Total operating expenses |
|
|
1,738,301 |
|
|
2.34% |
|
|
1,594,518 |
|
|
2.38% |
|
9.0% |
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
672,476 |
|
|
0.91% |
|
|
670,128 |
|
|
1.00% |
|
0.4% |
|
|
|
|
|
|
|
|
|
|
|
||||
Other loss, net |
|
|
12,814 |
|
|
|
|
|
3,436 |
|
|
|
|
|
Interest expense, net |
|
|
31,328 |
|
|
|
|
|
57,864 |
|
|
|
|
(45.9)% |
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
628,334 |
|
|
0.85% |
|
|
608,828 |
|
|
0.91% |
|
3.2% |
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
140,740 |
|
|
|
|
|
129,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
|
487,594 |
|
|
0.66% |
|
|
479,213 |
|
|
0.72% |
|
1.7% |
|
|
|
|
|
|
|
|
|
|
|
||||
Net (income) loss attributable to noncontrolling interests |
|
|
(4,131 |
) |
|
|
|
|
368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to Cencora, Inc. |
|
$ |
483,463 |
|
|
0.65% |
|
$ |
479,581 |
|
|
0.72% |
|
0.8% |
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
2.44 |
|
|
|
|
$ |
2.37 |
|
|
|
|
3.0% |
Diluted |
|
$ |
2.42 |
|
|
|
|
$ |
2.35 |
|
|
|
|
3.0% |
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
198,260 |
|
|
|
|
|
202,349 |
|
|
|
|
(2.0)% |
Diluted |
|
|
200,047 |
|
|
|
|
|
204,375 |
|
|
|
|
(2.1)% |
________________________ | ||
1 |
Includes a $51.6 million gain from antitrust litigation settlements, a $6.8 million LIFO expense, and Turkey foreign currency remeasurement expense of $3.6 million in the three months ended June 30, 2024. Includes a $118.6 million gain from antitrust litigation settlements, a $35.0 million LIFO expense, and Turkey foreign currency remeasurement expense of $50.6 million in the three months ended June 30, 2023. |
|
2 |
Includes the receipt of $83.4 million from the H.D. Smith opioid litigation indemnity escrow in the three months ended June 30, 2023. |
CENCORA, INC. |
||||||||||||||
FINANCIAL SUMMARY |
||||||||||||||
(in thousands, except per share data) |
||||||||||||||
(unaudited) |
||||||||||||||
|
|
Nine Months Ended June 30, 2024 |
|
% of Revenue |
|
Nine Months Ended June 30, 2023 |
|
% of Revenue |
|
% Change |
||||
Revenue |
|
$ |
214,908,493 |
|
|
|
|
$ |
193,251,080 |
|
|
|
|
11.2% |
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of goods sold |
|
|
207,490,881 |
|
|
|
|
|
186,545,039 |
|
|
|
|
11.2% |
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit 1 |
|
|
7,417,612 |
|
|
3.45% |
|
|
6,706,041 |
|
|
3.47% |
|
10.6% |
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||
Distribution, selling, and administrative |
|
|
4,170,763 |
|
|
1.94% |
|
|
3,916,156 |
|
|
2.03% |
|
6.5% |
Depreciation and amortization |
|
|
814,930 |
|
|
0.38% |
|
|
687,678 |
|
|
0.36% |
|
18.5% |
Litigation and opioid-related expenses (credit), net 2 |
|
|
161,553 |
|
|
|
|
|
(38,583 |
) |
|
|
|
|
Acquisition-related deal and integration expenses |
|
|
69,431 |
|
|
|
|
|
99,392 |
|
|
|
|
|
Restructuring and other expenses |
|
|
152,325 |
|
|
|
|
|
177,608 |
|
|
|
|
|
Total operating expenses |
|
|
5,369,002 |
|
|
2.50% |
|
|
4,842,251 |
|
|
2.51% |
|
10.9% |
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
2,048,610 |
|
|
0.95% |
|
|
1,863,790 |
|
|
0.96% |
|
9.9% |
|
|
|
|
|
|
|
|
|
|
|
||||
Other loss (income), net |
|
|
33,790 |
|
|
|
|
|
(18,612 |
) |
|
|
|
|
Interest expense, net |
|
|
136,022 |
|
|
|
|
|
167,989 |
|
|
|
|
(19.0)% |
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
1,878,798 |
|
|
0.87% |
|
|
1,714,413 |
|
|
0.89% |
|
9.6% |
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
366,991 |
|
|
|
|
|
330,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
|
1,511,807 |
|
|
0.70% |
|
|
1,383,596 |
|
|
0.72% |
|
9.3% |
|
|
|
|
|
|
|
|
|
|
|
||||
Net (income) loss attributable to noncontrolling interests |
|
|
(6,069 |
) |
|
|
|
|
11,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to Cencora, Inc. |
|
$ |
1,505,738 |
|
|
0.70% |
|
$ |
1,394,728 |
|
|
0.72% |
|
8.0% |
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
7.56 |
|
|
|
|
$ |
6.87 |
|
|
|
|
10.0% |
Diluted |
|
$ |
7.49 |
|
|
|
|
$ |
6.80 |
|
|
|
|
10.1% |
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
199,253 |
|
|
|
|
|
202,908 |
|
|
|
|
(1.8)% |
Diluted |
|
|
201,025 |
|
|
|
|
|
204,995 |
|
|
|
|
(1.9)% |
________________________ | ||
1 |
Includes a $108.6 million gain from antitrust litigation settlements, a $64.4 million LIFO credit, and Turkey foreign currency remeasurement expense of $43.9 million in the nine months ended June 30, 2024. Includes a $168.5 million gain from antitrust litigation settlements, a $114.3 million LIFO expense, and Turkey foreign currency remeasurement expense of $59.0 million in the nine months ended June 30, 2023. |
|
2 |
The nine months ended June 30, 2024 includes a $214.0 million opioid litigation accrual, offset in part by a $92.2 million opioid settlement accrual reduction primarily as a result of the Company's prepayment of the net present value of a future obligation as permitted under its opioid settlement agreements. The nine months ended June 30, 2023 includes the receipt of $83.4 million from the H.D. Smith opioid litigation indemnity escrow. |
CENCORA, INC. |
||||||||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS |
||||||||||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended June 30, 2024 |
||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Income Attributable to Cencora |
|
Diluted Earnings Per Share |
||||||||||||||
GAAP |
|
$ |
2,410,777 |
|
|
$ |
1,738,301 |
|
|
$ |
672,476 |
|
|
$ |
628,334 |
|
|
$ |
140,740 |
|
|
$ |
483,463 |
|
|
$ |
2.42 |
|
Gains from antitrust litigation settlements |
|
|
(51,605 |
) |
|
|
— |
|
|
|
(51,605 |
) |
|
|
(51,605 |
) |
|
|
(12,095 |
) |
|
|
(39,510 |
) |
|
|
(0.20 |
) |
LIFO expense |
|
|
6,839 |
|
|
|
— |
|
|
|
6,839 |
|
|
|
6,839 |
|
|
|
2,499 |
|
|
|
4,340 |
|
|
|
0.02 |
|
Turkey highly inflationary impact |
|
|
3,636 |
|
|
|
— |
|
|
|
3,636 |
|
|
|
4,535 |
|
|
|
— |
|
|
|
4,535 |
|
|
|
0.02 |
|
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(163,850 |
) |
|
|
163,850 |
|
|
|
163,850 |
|
|
|
36,729 |
|
|
|
126,687 |
|
|
|
0.63 |
|
Litigation and opioid-related expenses |
|
|
— |
|
|
|
(14,485 |
) |
|
|
14,485 |
|
|
|
14,485 |
|
|
|
4,811 |
|
|
|
9,674 |
|
|
|
0.05 |
|
Acquisition-related deal and integration expenses |
|
|
— |
|
|
|
(25,758 |
) |
|
|
25,758 |
|
|
|
25,758 |
|
|
|
5,438 |
|
|
|
20,320 |
|
|
|
0.10 |
|
Restructuring and other expenses |
|
|
— |
|
|
|
(42,257 |
) |
|
|
42,257 |
|
|
|
42,257 |
|
|
|
9,706 |
|
|
|
32,551 |
|
|
|
0.16 |
|
Loss on remeasurement of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,321 |
|
|
|
— |
|
|
|
13,321 |
|
|
|
0.07 |
|
Other, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,638 |
|
|
|
820 |
|
|
|
3,818 |
|
|
|
0.02 |
|
Tax reform 1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(536 |
) |
|
|
(9,753 |
) |
|
|
9,217 |
|
|
|
0.05 |
|
Adjusted Non-GAAP |
|
$ |
2,369,647 |
|
|
$ |
1,491,951 |
|
|
$ |
877,696 |
|
|
$ |
851,876 |
|
|
$ |
178,895 |
|
|
$ |
668,416 |
|
|
$ |
3.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted Non-GAAP % change vs. prior year |
|
|
6.2 |
% |
|
|
5.9 |
% |
|
|
6.7 |
% |
|
|
12.1 |
% |
|
|
9.5 |
% |
|
|
12.1 |
% |
|
|
14.4 |
% |
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
|
Gross profit |
|
3.25% |
|
3.19% |
|
Operating expenses |
|
2.34% |
|
2.01% |
|
Operating income |
|
0.91% |
|
1.18% |
________________________ | ||
1 |
Includes tax expense relating to 2020 Swiss tax reform and the currency remeasurement of the related deferred tax assets, the latter of which is recorded within Other Loss, 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. |
CENCORA, INC. |
|||||||||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||||||||
|
|
Three Months Ended June 30, 2023 |
|
||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Income Attributable to Cencora |
|
Diluted Earnings Per Share |
|
||||||||||||||
GAAP |
|
$ |
2,264,646 |
|
|
$ |
1,594,518 |
|
|
$ |
670,128 |
|
|
$ |
608,828 |
|
|
$ |
129,615 |
|
|
$ |
479,581 |
|
|
$ |
2.35 |
|
|
Gains from antitrust litigation settlements |
|
|
(118,611 |
) |
|
|
— |
|
|
|
(118,611 |
) |
|
|
(118,611 |
) |
|
|
(27,518 |
) |
|
|
(91,093 |
) |
|
|
(0.45 |
) |
|
LIFO expense |
|
|
34,952 |
|
|
|
— |
|
|
|
34,952 |
|
|
|
34,952 |
|
|
|
8,037 |
|
|
|
26,915 |
|
|
|
0.13 |
|
|
Turkey highly inflationary impact |
|
|
50,580 |
|
|
|
— |
|
|
|
50,580 |
|
|
|
57,581 |
|
|
|
— |
|
|
|
57,581 |
|
|
|
0.28 |
|
|
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(169,154 |
) |
|
|
169,154 |
|
|
|
169,154 |
|
|
|
39,087 |
|
|
|
129,098 |
|
|
|
0.63 |
|
|
Litigation and opioid-related credit, net 1 |
|
|
— |
|
|
|
67,102 |
|
|
|
(67,102 |
) |
|
|
(67,102 |
) |
|
|
3,750 |
|
|
|
(70,852 |
) |
|
|
(0.35 |
) |
|
Acquisition-related deal and integration expenses |
|
|
— |
|
|
|
(19,283 |
) |
|
|
19,283 |
|
|
|
19,283 |
|
|
|
4,393 |
|
|
|
14,890 |
|
|
|
0.07 |
|
|
Restructuring and other expenses |
|
|
— |
|
|
|
(63,924 |
) |
|
|
63,924 |
|
|
|
63,924 |
|
|
|
14,733 |
|
|
|
49,191 |
|
|
|
0.24 |
|
|
Recovery of non-customer note receivable |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,000 |
) |
|
|
— |
|
|
|
(3,000 |
) |
|
|
(0.01 |
) |
|
Tax reform 2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,823 |
) |
|
|
(8,748 |
) |
|
|
3,925 |
|
|
|
0.02 |
|
|
Adjusted Non-GAAP |
|
$ |
2,231,567 |
|
|
$ |
1,409,259 |
|
|
$ |
822,308 |
|
|
$ |
760,186 |
|
|
$ |
163,349 |
|
|
$ |
596,236 |
|
|
$ |
2.92 |
|
3 |
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
|
Gross profit |
|
3.38% |
|
3.33% |
|
Operating expenses |
|
2.38% |
|
2.11% |
|
Operating income |
|
1.00% |
|
1.23% |
________________________ | ||
1 |
Includes the receipt of $83.4 million from the H.D. Smith opioid litigation indemnity escrow. |
|
2 |
Includes tax expense relating to 2020 Swiss tax reform and the currency remeasurement of the related deferred tax assets, the latter of which is recorded within Other Loss, Net. |
|
3 | 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. |
CENCORA, INC. |
|||||||||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||||||||
|
|
Nine Months Ended June 30, 2024 |
|
||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Income Attributable to Cencora |
|
Diluted Earnings Per Share |
|
||||||||||||||
GAAP |
|
$ |
7,417,612 |
|
|
$ |
5,369,002 |
|
|
$ |
2,048,610 |
|
|
$ |
1,878,798 |
|
|
$ |
366,991 |
|
|
$ |
1,505,738 |
|
|
$ |
7.49 |
|
|
Gains from antitrust litigation settlements |
|
|
(108,567 |
) |
|
|
— |
|
|
|
(108,567 |
) |
|
|
(108,567 |
) |
|
|
(26,810 |
) |
|
|
(81,757 |
) |
|
|
(0.41 |
) |
|
LIFO credit |
|
|
(64,441 |
) |
|
|
— |
|
|
|
(64,441 |
) |
|
|
(64,441 |
) |
|
|
(15,914 |
) |
|
|
(48,527 |
) |
|
|
(0.24 |
) |
|
Turkey highly inflationary impact |
|
|
43,915 |
|
|
|
— |
|
|
|
43,915 |
|
|
|
44,664 |
|
|
|
— |
|
|
|
44,664 |
|
|
|
0.22 |
|
|
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(494,373 |
) |
|
|
494,373 |
|
|
|
494,373 |
|
|
|
122,086 |
|
|
|
370,985 |
|
|
|
1.85 |
|
|
Litigation and opioid-related expenses, net 1 |
|
|
— |
|
|
|
(161,553 |
) |
|
|
161,553 |
|
|
|
161,553 |
|
|
|
43,876 |
|
|
|
117,677 |
|
|
|
0.59 |
|
|
Acquisition-related deal and integration expenses |
|
|
— |
|
|
|
(69,431 |
) |
|
|
69,431 |
|
|
|
69,431 |
|
|
|
17,146 |
|
|
|
52,285 |
|
|
|
0.26 |
|
|
Restructuring and other expenses |
|
|
— |
|
|
|
(152,325 |
) |
|
|
152,325 |
|
|
|
152,325 |
|
|
|
33,622 |
|
|
|
118,703 |
|
|
|
0.59 |
|
|
Loss on remeasurement of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,752 |
|
|
|
— |
|
|
|
24,752 |
|
|
|
0.12 |
|
|
Other, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,010 |
|
|
|
1,627 |
|
|
|
9,383 |
|
|
|
0.05 |
|
|
Tax reform and discrete tax items 2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,991 |
) |
|
|
14,989 |
|
|
|
(18,980 |
) |
|
|
(0.09 |
) |
|
Adjusted Non-GAAP |
|
$ |
7,288,519 |
|
|
$ |
4,491,320 |
|
|
$ |
2,797,199 |
|
|
$ |
2,659,907 |
|
|
$ |
557,613 |
|
|
$ |
2,094,923 |
|
|
$ |
10.42 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted Non-GAAP % change vs. prior year |
|
|
8.6 |
% |
|
|
6.4 |
% |
|
|
12.4 |
% |
|
|
14.4 |
% |
|
|
20.9 |
% |
|
|
12.0 |
% |
|
|
14.1 |
% |
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
|
Gross profit |
|
3.45% |
|
3.39% |
|
Operating expenses |
|
2.50% |
|
2.09% |
|
Operating income |
|
0.95% |
|
1.30% |
________________________ | ||
1 |
Includes a $214.0 million opioid litigation accrual, offset in part by a $92.2 million opioid settlement accrual reduction primarily as a result of the Company's prepayment of the net present value of a future obligation as permitted under its opioid settlement agreements. |
|
2 |
Includes a tax benefit attributable to an adjustment of the Swiss valuation allowance (due to an increase in projected Swiss income and DTA utilization), tax expense relating to 2020 Swiss tax reform, and the currency remeasurement of the related deferred tax assets, the latter of which is recorded within Other Loss (Income), Net. |
|
3 |
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. |
CENCORA, INC. |
|||||||||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||||||||
|
|
Nine Months Ended June 30, 2023 |
|
||||||||||||||||||||||||||
|
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Income Attributable to Cencora |
|
Diluted Earnings Per Share |
|
||||||||||||||
GAAP |
|
$ |
6,706,041 |
|
|
$ |
4,842,251 |
|
|
$ |
1,863,790 |
|
|
$ |
1,714,413 |
|
|
$ |
330,817 |
|
|
$ |
1,394,728 |
|
|
$ |
6.80 |
|
|
Gains from antitrust litigation settlements |
|
|
(168,510 |
) |
|
|
— |
|
|
|
(168,510 |
) |
|
|
(168,510 |
) |
|
|
(39,175 |
) |
|
|
(129,335 |
) |
|
|
(0.63 |
) |
|
LIFO expense |
|
|
114,272 |
|
|
|
— |
|
|
|
114,272 |
|
|
|
114,272 |
|
|
|
26,566 |
|
|
|
87,706 |
|
|
|
0.43 |
|
|
Turkey highly inflationary impact |
|
|
59,019 |
|
|
|
— |
|
|
|
59,019 |
|
|
|
66,022 |
|
|
|
— |
|
|
|
66,022 |
|
|
|
0.32 |
|
|
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(381,146 |
) |
|
|
381,146 |
|
|
|
381,146 |
|
|
|
88,609 |
|
|
|
289,426 |
|
|
|
1.41 |
|
|
Litigation and opioid-related credit, net 1 |
|
|
— |
|
|
|
38,583 |
|
|
|
(38,583 |
) |
|
|
(38,583 |
) |
|
|
10,412 |
|
|
|
(48,995 |
) |
|
|
(0.24 |
) |
|
Acquisition-related deal and integration expenses |
|
|
— |
|
|
|
(99,392 |
) |
|
|
99,392 |
|
|
|
99,392 |
|
|
|
23,107 |
|
|
|
76,285 |
|
|
|
0.37 |
|
|
Restructuring and other expenses |
|
|
— |
|
|
|
(177,608 |
) |
|
|
177,608 |
|
|
|
177,608 |
|
|
|
41,290 |
|
|
|
136,318 |
|
|
|
0.66 |
|
|
Foreign currency gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,663 |
) |
|
|
— |
|
|
|
(5,663 |
) |
|
|
(0.03 |
) |
|
Recovery of non-customer note receivable |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,148 |
) |
|
|
— |
|
|
|
(4,148 |
) |
|
|
(0.02 |
) |
|
Tax reform 2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,462 |
) |
|
|
(20,356 |
) |
|
|
8,894 |
|
|
|
0.04 |
|
|
Adjusted Non-GAAP |
|
$ |
6,710,822 |
|
|
$ |
4,222,688 |
|
|
$ |
2,488,134 |
|
|
$ |
2,324,487 |
|
|
$ |
461,270 |
|
|
$ |
1,871,238 |
|
|
$ |
9.13 |
|
3 |
Percentages of Revenue: |
|
GAAP |
|
Adjusted Non-GAAP |
|
Gross profit |
|
3.47% |
|
3.47% |
|
Operating expenses |
|
2.51% |
|
2.19% |
|
Operating income |
|
0.96% |
|
1.29% |
________________________ | ||
1 |
Includes the receipt of $83.4 million from the H.D. Smith opioid litigation indemnity escrow. |
|
2 |
Tax expense relating to 2020 Swiss tax reform and the currency remeasurement of the related deferred tax assets, the latter of which is recorded within Other Loss (Income), Net. |
|
3 |
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. |
CENCORA, INC. |
||||||||||
SUMMARY SEGMENT INFORMATION |
||||||||||
(in thousands) |
||||||||||
(unaudited) |
||||||||||
|
|
Three Months Ended June 30, |
||||||||
Revenue |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
U.S. Healthcare Solutions |
|
$ |
67,191,598 |
|
|
$ |
59,900,199 |
|
|
12.2% |
International Healthcare Solutions |
|
|
7,051,876 |
|
|
|
7,047,777 |
|
|
0.1% |
Intersegment eliminations |
|
|
(2,121 |
) |
|
|
(933 |
) |
|
|
Revenue |
|
$ |
74,241,353 |
|
|
$ |
66,947,043 |
|
|
10.9% |
|
|
Three Months Ended June 30, |
||||||||
Operating income |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
U.S. Healthcare Solutions |
|
$ |
698,305 |
|
|
$ |
635,176 |
|
|
9.9% |
International Healthcare Solutions |
|
|
179,391 |
|
|
|
187,132 |
|
|
(4.1)% |
Total segment operating income |
|
|
877,696 |
|
|
|
822,308 |
|
|
6.7% |
|
|
|
|
|
|
|
||||
Gains from antitrust litigation settlements |
|
|
51,605 |
|
|
|
118,611 |
|
|
|
LIFO expense |
|
|
(6,839 |
) |
|
|
(34,952 |
) |
|
|
Turkey highly inflationary impact |
|
|
(3,636 |
) |
|
|
(50,580 |
) |
|
|
Acquisition-related intangibles amortization |
|
|
(163,850 |
) |
|
|
(169,154 |
) |
|
|
Litigation and opioid-related (expenses) credit, net |
|
|
(14,485 |
) |
|
|
67,102 |
|
|
|
Acquisition-related deal and integration expenses |
|
|
(25,758 |
) |
|
|
(19,283 |
) |
|
|
Restructuring and other expenses |
|
|
(42,257 |
) |
|
|
(63,924 |
) |
|
|
Operating income |
|
$ |
672,476 |
|
|
$ |
670,128 |
|
|
0.4% |
|
|
|
|
|
|
|
||||
Percentages of Revenue: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
U.S. Healthcare Solutions |
|
|
|
|
|
|
||||
Gross profit |
|
|
2.30 |
% |
|
|
2.36 |
% |
|
|
Operating expenses |
|
|
1.26 |
% |
|
|
1.29 |
% |
|
|
Operating income |
|
|
1.04 |
% |
|
|
1.06 |
% |
|
|
|
|
|
|
|
|
|
||||
International Healthcare Solutions |
|
|
|
|
|
|
||||
Gross profit |
|
|
11.68 |
% |
|
|
11.65 |
% |
|
|
Operating expenses |
|
|
9.14 |
% |
|
|
8.99 |
% |
|
|
Operating income |
|
|
2.54 |
% |
|
|
2.66 |
% |
|
|
|
|
|
|
|
|
|
||||
Cencora, Inc. (GAAP) |
|
|
|
|
|
|
||||
Gross profit |
|
|
3.25 |
% |
|
|
3.38 |
% |
|
|
Operating expenses |
|
|
2.34 |
% |
|
|
2.38 |
% |
|
|
Operating income |
|
|
0.91 |
% |
|
|
1.00 |
% |
|
|
|
|
|
|
|
|
|
||||
Cencora, Inc. (Non-GAAP) |
|
|
|
|
|
|
||||
Adjusted gross profit |
|
|
3.19 |
% |
|
|
3.33 |
% |
|
|
Adjusted operating expenses |
|
|
2.01 |
% |
|
|
2.11 |
% |
|
|
Adjusted operating income |
|
|
1.18 |
% |
|
|
1.23 |
% |
|
|
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. |
CENCORA, INC. |
||||||||||
SUMMARY SEGMENT INFORMATION |
||||||||||
(in thousands) |
||||||||||
(unaudited) |
||||||||||
|
|
Nine Months Ended June 30, |
||||||||
Revenue |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
U.S. Healthcare Solutions |
|
$ |
193,668,297 |
|
|
$ |
172,830,234 |
|
|
12.1% |
International Healthcare Solutions |
|
|
21,245,488 |
|
|
|
20,423,990 |
|
|
4.0% |
Intersegment eliminations |
|
|
(5,292 |
) |
|
|
(3,144 |
) |
|
|
Revenue |
|
$ |
214,908,493 |
|
|
$ |
193,251,080 |
|
|
11.2% |
|
|
Nine Months Ended June 30, |
||||||||
Operating income |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
U.S. Healthcare Solutions |
|
$ |
2,237,493 |
|
|
$ |
1,963,729 |
|
|
13.9% |
International Healthcare Solutions |
|
|
559,706 |
|
|
|
524,405 |
|
|
6.7% |
Total segment operating income |
|
|
2,797,199 |
|
|
|
2,488,134 |
|
|
12.4% |
|
|
|
|
|
|
|
||||
Gains from antitrust litigation settlements |
|
|
108,567 |
|
|
|
168,510 |
|
|
|
LIFO credit (expense) |
|
|
64,441 |
|
|
|
(114,272 |
) |
|
|
Turkey highly inflationary impact |
|
|
(43,915 |
) |
|
|
(59,019 |
) |
|
|
Acquisition-related intangibles amortization |
|
|
(494,373 |
) |
|
|
(381,146 |
) |
|
|
Litigation and opioid-related (expenses) credit, net |
|
|
(161,553 |
) |
|
|
38,583 |
|
|
|
Acquisition-related deal and integration expenses |
|
|
(69,431 |
) |
|
|
(99,392 |
) |
|
|
Restructuring and other expenses |
|
|
(152,325 |
) |
|
|
(177,608 |
) |
|
|
Operating income |
|
$ |
2,048,610 |
|
|
$ |
1,863,790 |
|
|
9.9% |
|
|
|
|
|
|
|
||||
Percentages of Revenue: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
U.S. Healthcare Solutions |
|
|
|
|
|
|
||||
Gross profit |
|
|
2.48 |
% |
|
|
2.52 |
% |
|
|
Operating expenses |
|
|
1.32 |
% |
|
|
1.38 |
% |
|
|
Operating income |
|
|
1.16 |
% |
|
|
1.14 |
% |
|
|
|
|
|
|
|
|
|
||||
International Healthcare Solutions |
|
|
|
|
|
|
||||
Gross profit |
|
|
11.73 |
% |
|
|
11.57 |
% |
|
|
Operating expenses |
|
|
9.10 |
% |
|
|
9.00 |
% |
|
|
Operating income |
|
|
2.63 |
% |
|
|
2.57 |
% |
|
|
|
|
|
|
|
|
|
||||
Cencora, Inc. (GAAP) |
|
|
|
|
|
|
||||
Gross profit |
|
|
3.45 |
% |
|
|
3.47 |
% |
|
|
Operating expenses |
|
|
2.50 |
% |
|
|
2.51 |
% |
|
|
Operating income |
|
|
0.95 |
% |
|
|
0.96 |
% |
|
|
|
|
|
|
|
|
|
||||
Cencora, Inc. (Non-GAAP) |
|
|
|
|
|
|
||||
Adjusted gross profit |
|
|
3.39 |
% |
|
|
3.47 |
% |
|
|
Adjusted operating expenses |
|
|
2.09 |
% |
|
|
2.19 |
% |
|
|
Adjusted operating income |
|
|
1.30 |
% |
|
|
1.29 |
% |
|
|
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. |
CENCORA, INC. |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(in thousands) |
|||||
(unaudited) |
|||||
|
June 30, |
|
September 30, |
||
|
2024 |
|
2023 |
||
ASSETS |
|
|
|
||
|
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
3,306,200 |
|
$ |
2,592,051 |
Accounts receivable, net |
|
24,051,478 |
|
|
20,911,081 |
Inventories |
|
18,301,546 |
|
|
17,454,768 |
Right to recover assets |
|
1,143,731 |
|
|
1,314,857 |
Prepaid expenses and other |
|
504,307 |
|
|
526,069 |
Total current assets |
|
47,307,262 |
|
|
42,798,826 |
|
|
|
|
||
Property and equipment, net |
|
2,080,879 |
|
|
2,135,171 |
Goodwill and other intangible assets |
|
13,624,563 |
|
|
14,005,900 |
Deferred income taxes |
|
229,653 |
|
|
200,667 |
Other long-term assets |
|
3,530,066 |
|
|
3,418,182 |
|
|
|
|
||
Total assets |
$ |
66,772,423 |
|
$ |
62,558,746 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
|
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
49,883,049 |
|
$ |
45,836,037 |
Accrued expenses and other |
|
2,525,710 |
|
|
2,353,817 |
Short-term debt |
|
565,108 |
|
|
641,344 |
Total current liabilities |
|
52,973,867 |
|
|
48,831,198 |
|
|
|
|
||
Long-term debt |
|
4,165,910 |
|
|
4,146,113 |
|
|
|
|
||
Accrued income taxes |
|
332,364 |
|
|
310,676 |
Deferred income taxes |
|
1,607,661 |
|
|
1,657,944 |
Accrued litigation liability |
|
4,697,695 |
|
|
5,061,795 |
Other long-term liabilities |
|
1,934,423 |
|
|
1,884,733 |
|
|
|
|
||
Total equity |
|
1,060,503 |
|
|
666,287 |
|
|
|
|
||
Total liabilities and stockholders' equity |
$ |
66,772,423 |
|
$ |
62,558,746 |
CENCORA, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
Nine Months Ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating Activities: |
|
|
|
||||
Net income |
$ |
1,511,807 |
|
|
$ |
1,383,596 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
897,333 |
|
|
|
899,803 |
|
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|
|
|
||||
Accounts receivable |
|
(3,085,563 |
) |
|
|
(2,249,881 |
) |
Inventories |
|
(835,633 |
) |
|
|
(1,369,977 |
) |
Accounts payable |
|
4,112,542 |
|
|
|
3,513,686 |
|
Other, net |
|
(116,180 |
) |
|
|
(92,704 |
) |
Net cash provided by operating activities |
|
2,484,306 |
|
|
|
2,084,523 |
|
|
|
|
|
||||
Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(304,849 |
) |
|
|
(282,862 |
) |
Cost of acquired companies, net of cash acquired 1 |
|
(24,487 |
) |
|
|
(1,409,681 |
) |
Cost of equity investments 2 |
|
(14,981 |
) |
|
|
(737,025 |
) |
Non-customer note receivable |
|
(50,000 |
) |
|
|
— |
|
Other, net |
|
18,106 |
|
|
|
10,544 |
|
Net cash used in investing activities |
|
(376,211 |
) |
|
|
(2,419,024 |
) |
|
|
|
|
||||
Financing Activities: |
|
|
|
||||
Net debt repayments |
|
(31,921 |
) |
|
|
(581,557 |
) |
Purchases of common stock |
|
(986,388 |
) |
|
|
(907,214 |
) |
Exercises of stock options |
|
31,560 |
|
|
|
50,078 |
|
Cash dividends on common stock |
|
(315,223 |
) |
|
|
(300,413 |
) |
Employee tax withholdings related to restricted share vesting |
|
(60,121 |
) |
|
|
(71,059 |
) |
Other, net |
|
(11,641 |
) |
|
|
(5,099 |
) |
Net cash used in financing activities |
|
(1,373,734 |
) |
|
|
(1,815,264 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(10,854 |
) |
|
|
104,479 |
|
|
|
|
|
||||
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
723,507 |
|
|
|
(2,045,286 |
) |
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at beginning of period 3 |
|
2,752,889 |
|
|
|
3,593,539 |
|
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at end of period 3 |
$ |
3,476,396 |
|
|
$ |
1,548,253 |
|
________________________ | ||
1 |
Includes $1,406.3 million for the acquisition of PharmaLex in the nine months ended June 30, 2023. |
|
2 |
Includes a $718.4 million investment in OneOncology in the nine months ended June 30, 2023. |
|
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: |
|
|
June 30, 2024 |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
||||
Cash and cash equivalents |
|
$ |
3,306,200 |
|
$ |
2,592,051 |
|
$ |
1,389,345 |
|
$ |
3,388,189 |
Restricted cash (included in Prepaid Expenses and Other) |
|
|
104,463 |
|
|
97,722 |
|
|
96,623 |
|
|
144,980 |
Restricted cash (included in Other Long-Term Assets) |
|
|
65,733 |
|
|
63,116 |
|
|
62,285 |
|
|
60,370 |
Cash, cash equivalents, and restricted cash |
|
$ |
3,476,396 |
|
$ |
2,752,889 |
|
$ |
1,548,253 |
|
$ |
3,593,539 |
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 third quarter of fiscal 2024, (i) revenue of $74.2 billion was negatively impacted by foreign currency translation of $407.8 million, resulting in revenue on a constant currency basis of $74.6 billion, and (ii) operating income of $877.7 million was negatively impacted by foreign currency translation of $9.2 million, resulting in operating income on a constant currency basis of $886.9 million. For the third quarter of fiscal 2024 in the International Healthcare Solutions segment, (i) revenue of $7.1 billion was negatively impacted by foreign currency translation of $407.8 million, resulting in revenue on a constant currency basis of $7.5 billion, and (ii) operating income of $179.4 million was negatively impacted by foreign currency translation of $9.2 million, resulting in operating income on a constant currency basis of $188.6 million. For the nine months ended June 30, 2024 (i) revenue of $214.9 billion was negatively impacted by foreign currency translation of $831.4 million, resulting in revenue on a constant currency basis of $215.7 billion, and (ii) operating income of $2,797.2 million was negatively impacted by foreign currency translation of $37.7 million, resulting in operating income on a constant currency basis of $2,835.0 million. For the nine months ended June 30, 2024, in the International Healthcare Solutions segment, (i) revenue of $21.2 billion was negatively impacted by foreign currency translation of $831.4 million, resulting in revenue on a constant currency basis of $22.1 billion, and (ii) operating income of $559.7 million was negatively impacted by foreign currency translation of $37.7 million, resulting in operating income on a constant currency basis of $597.4 million.
In addition, the Company has provided non-GAAP fiscal year 2024 guidance for diluted earnings per share, operating income, effective income tax rate, and free cash flow 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/20240731316967/en/