AmerisourceBergen Presents Long-term Vision and Guidance at Investor Day
Global healthcare solutions leader well positioned to drive long-term, sustainable growth
“As a global healthcare solutions leader with a foundation in pharmaceutical distribution that is complemented by higher-margin, high-growth services in key markets,
At the event, management detailed its five strategic imperatives, which will advance AmerisourceBergen’s vision of delivering long-term sustainable growth by maintaining a leading share of pharmaceutical distribution and best-in-class efficiency while growing the company’s complementary higher-margin and high-growth businesses in both its
- Lead with market leaders: fortifying long-term, strategic partnerships with key anchor customers;
- Leverage infrastructure to increase efficiency and to support customers in meeting consumer needs:using our scale and capabilities to better serve customers and increase the efficiency of the global pharmaceutical supply chain;
- Expand on leadership in specialty: building on AmerisourceBergen’s position to capture the opportunities created as pharmaceutical innovation continues to advance;
- Contribute to pharmaceutical outcomes: working collaboratively with partners up- and down-stream to facilitate positive health access and outcomes for patients; and
- Invest in innovation to further drive differentiation: supporting the continuously evolving healthcare landscape by providing leading solutions for customers.
AmerisourceBergen’s investments in talent and culture support its five strategic imperatives and are key to its commitments to live its purpose of creating healthier futures and positively impacting communities around the world.
The Company reminded investors that its fiscal year 2022 adjusted diluted earnings per share guidance of
$0.70of adjusted EPS contribution from Covid product sales, which include: $0.60of contribution in the U.S.Healthcare Solutions segment, and $0.10of contribution in the International Healthcare Solutions segment.
This brings the baseline adjusted EPS for long-term growth to a range of
As the Company executes on its strategic imperatives and benefits from its growth drivers over the long term, it expects:
Adjusted operating income growth in the range of 5-8%;
U.S.Healthcare Solutions adjusted operating income growth in the range of 5-8%;
- International Healthcare Solutions adjusted operating income growth in the range of 5-8%;
- Capital deployment growth in the range of 3-4%; and
- Adjusted Diluted Earnings Per Share growth in the range of 8-12%.
“AmerisourceBergen’s strong financial position and solid base of growth drivers position us well to deliver on our long-term financial targets, including a double-digit compound annual growth rate for adjusted EPS at the midpoint of our range,” said
The Company’s fiscal year 2022 guidance does not include any potential benefit from the
Investor Day Replay
Please check the website investor.amerisourcebergen.com to access the event replay and presentation.
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 "expect," "likely," "outlook," "forecast," "would," "could," "should," "can," "project," "intend," "plan," "continue," "sustain," "synergy," "on track," "believe," "seek," "estimate," "anticipate," "may," "possible," "assume," variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and 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: the effect of and uncertainties related to the ongoing COVID-19 pandemic (including any government responses thereto) and any continued recovery from the impact of the COVID-19 pandemic; our ability to achieve and maintain profitability in the future; our ability to respond to general economic conditions; our ability to manage our growth effectively and our expectations regarding the development and expansion of our business; the impact on our business of the regulatory environment and complexities with compliance; unfavorable trends in brand and generic pharmaceutical pricing, including in rate or frequency of price inflation or deflation; competition and industry consolidation of both customers and suppliers resulting in increasing pressure to reduce prices for our products and services; changes in
Supplemental Information Regarding Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with
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.
The Company does not provide a reconciliation for these non-GAAP financial measures on a forward-looking basis to the most comparable GAAP financial measures on a forward-looking basis because it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort due to the uncertainty and potential variability of reconciling items, which are dependent on future events, are out of the Company’s control and/or cannot be reasonably predicted, and the probable significance of which cannot be determined.
We have included adjusted diluted earnings per share, which represents diluted earnings per share determined in accordance with GAAP adjusted for specific items, including the per share impact of: gains from antitrust litigation settlements; LIFO expense (credit); acquisition-related intangibles amortization; employee severance, litigation, and other; impairment of assets; and the loss on the currency remeasurement related to Swiss tax reform, in each case net of the tax effect calculated using the applicable effective tax rate for those items. In addition, the per share impact of certain discrete tax expense (benefits) primarily attributable to foreign valuation allowance adjustments for the three and six months ended
We have also included adjusted operating income, which represents operating income determined in accordance with GAAP adjusted for specific items, including gains from antitrust litigation settlements; LIFO expense (credit); acquisition-related intangibles amortization, employee severance, litigation, and other; and impairment of assets. Gains from antitrust litigation settlements and LIFO expense (credit) are excluded because the Company cannot control the amounts recognized or timing of these items. Acquisition-related intangibles amortization is excluded because it is a non-cash item and does not reflect the operating performance of the acquired companies. We exclude employee severance amounts that relate to unpredictable and/or non-recurring business restructuring. We exclude the amount of litigation settlements and other expenses and the impairment of assets that are unusual, non-operating, unpredictable, non-recurring or non-cash in nature because we believe these exclusions facilitate the analysis of our ongoing operational performance. Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Company’s performance because the adjustments are unusual, non-operating, unpredictable, non-recurring or non-cash in nature.
Senior Vice President, Investor Relations