Cencora Reports Fiscal 2025 Second Quarter Results
Revenue of
Second Quarter GAAP Diluted EPS of
Adjusted Diluted EPS Guidance Range Raised to
Cencora is updating its outlook for fiscal year 2025. The Company does not provide forward-looking guidance on a GAAP basis as discussed below in Fiscal Year 2025 Expectations. Adjusted diluted EPS guidance has been raised from the previous range of
“Cencora’s second quarter results reflect the strength of our value proposition as a healthcare services provider and the important role we play in the supply chain, driven by our pharmaceutical distribution footprint and complementary end-to-end services and solutions,” said
“Cencora strives to enhance its leadership position in healthcare through our pharmaceutical centric strategy, best-in-class team members, and customer-focused approach.” Mauch continued. “We believe this leadership, coupled with our operational excellence and emphasis on productivity, drives our resilient financial performance now and will continue to drive it in the future.”
Second Quarter Fiscal Year 2025 Summary Results
|
|
GAAP |
Adjusted (Non-GAAP) |
|
Revenue |
|
|
|
Gross Profit |
|
|
|
Operating Expenses |
|
|
|
Operating Income |
|
|
|
Interest Expense, Net |
|
|
|
Effective Tax Rate |
22.7% |
20.8% |
|
Net Income Attributable to |
|
|
|
Diluted Earnings Per Share |
|
|
|
Diluted Shares Outstanding |
195.1M |
195.1M |
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.
Second Quarter GAAP Results
-
Revenue: In the second quarter of fiscal 2025, revenue was
$75.5 billion , up 10.3 percent compared to the same quarter in the previous fiscal year, primarily due to an 11.4 percent increase in revenue within theU.S. Healthcare Solutions segment.
-
Gross Profit: Gross profit in the second quarter of fiscal 2025 was
$3.1 billion , a 20.6 percent increase compared to the same period in the previous fiscal year, primarily due to the increase in gross profit in theU.S. Healthcare Solutions segment and larger gains from antitrust litigation settlements, offset in part by LIFO expense in the current year period in comparison to a LIFO credit in the prior year period and a decrease in gross profit in the International Healthcare Solutions segment. Gross profit as a percentage of revenue was 4.06 percent, an increase of 35 basis points from the prior year quarter due to the increase inU.S. Healthcare Solutions gross profit margin, primarily as a result of theJanuary 2025 acquisition ofRetina Consultants of America (RCA).
-
Operating Expenses: In the second quarter of fiscal 2025, operating expenses were
$2.0 billion , a 2.0 percent increase compared to the same quarter in the previous fiscal year, primarily due to an increase in distribution, selling, and administrative expenses as a result of the acquisition of RCA and to support our revenue growth, offset in part by lower litigation and opioid-related expenses compared to the prior year period, which included a$214.0 million litigation accrual related to the distribution of prescription opioid medications.
-
Operating Income: In the second quarter of fiscal 2025, operating income was
$1.0 billion , an increase of 87.3 percent compared to the same period in the previous fiscal year due to the increase in gross profit, offset in part by the increase in operating expenses. Operating income as a percentage of revenue was 1.37 percent in the second quarter of fiscal 2025 compared to 0.81 percent in the prior year quarter.
-
Interest Expense, Net:
In the second quarter of fiscal 2025, net interest expense was
$104.0 million , an increase of 62.2 percent from the prior year quarter primarily due to an increase in interest expense as a result of our issuance of$1.8 billion of senior notes inDecember 2024 and the$1.5 billion variable-rate term loan, which we borrowed inJanuary 2025 , to finance a portion of the RCA acquisition, and increased revolving credit facility borrowings to cover seasonal short-term working capital needs.
- Effective Tax Rate: The effective tax rate was 22.7 percent for the second quarter of fiscal 2025 compared to 9.8 percent in the prior year quarter, which included discrete tax benefits associated with foreign valuation allowance adjustments.
-
Diluted Earnings Per Share: Diluted earnings per share was
$3.68 in the second quarter of fiscal 2025, a 76.1 percent increase compared to$2.09 in the previous fiscal year’s second quarter.
- Diluted Shares Outstanding: Diluted weighted average shares outstanding for the second quarter of fiscal 2025 were 195.1 million, a decrease of 3.0 percent versus the prior year second quarter primarily due to share repurchases.
Second Quarter Adjusted (non-GAAP) Results
-
Revenue: No adjustments were made to the GAAP presentation of revenue. In the second quarter of fiscal 2025, revenue was
$75.5 billion , up 10.3 percent compared to the same quarter in the previous fiscal year, primarily due to an 11.4 percent increase in revenue within theU.S. Healthcare Solutions segment.
-
Adjusted Gross Profit: Adjusted gross profit in the second quarter of fiscal 2025 was
$2.9 billion , a 15.2 percent increase compared to the same period in the previous fiscal year due to the increase in gross profit in theU.S. Healthcare Solutions segment, offset in part by the decrease in gross profit in the International Healthcare Solutions segment. Adjusted gross profit as a percentage of revenue was 3.86 percent in the fiscal 2025 second quarter, an increase of 16 basis points from the prior year quarter due to the increase inU.S. Healthcare Solutions gross profit margin, primarily as a result of theJanuary 2025 acquisition of RCA.
-
Adjusted Operating Expenses: In the second quarter of fiscal 2025, adjusted operating expenses were
$1.7 billion , a 15.2 percent increase compared to the same period in the previous fiscal year, primarily driven by an increase in distribution, selling, and administrative expenses as a result of theJanuary 2025 acquisition of RCA and to support our revenue growth.
-
Adjusted Operating Income: In the second quarter of fiscal 2025, adjusted operating income was
$1.2 billion , a 15.3 percent increase compared to the same period in the prior fiscal year, driven by an increase in theU.S. Healthcare Solutions segment, partially offset by a decrease in the International Healthcare Solutions segment. Adjusted operating income as a percentage of revenue was 1.58 percent in the fiscal 2025 second quarter, an increase of 7 basis points when compared to the prior year quarter.
-
Interest Expense, Net:
No adjustments were made to the GAAP presentation of net interest expense. In the second quarter of fiscal 2025, net interest expense was
$104.0 million , an increase of 62.2 percent from the prior year quarter primarily due to an increase in interest expense as a result of our issuance of$1.8 billion of senior notes inDecember 2024 and the$1.5 billion variable-rate term loan, which we borrowed inJanuary 2025 , to finance a portion of the RCA acquisition, and increased revolving credit facility borrowings to cover seasonal short-term working capital needs.
- Adjusted Effective Tax Rate: The adjusted effective tax rate was 20.8 percent for the second quarter of fiscal 2025 compared to 20.9 percent in the prior year quarter.
-
Adjusted Diluted Earnings Per Share: Adjusted diluted earnings per share was
$4.42 in the second quarter of fiscal 2025, a 16.3 percent increase compared to$3.80 in the previous fiscal year’s second quarter.
- Diluted Shares Outstanding: No adjustments were made to the GAAP presentation of diluted shares outstanding. Diluted weighted average shares outstanding for the second quarter of fiscal 2025 were 195.1 million, a decrease of 3.0 percent versus the prior year second quarter primarily due to share repurchases.
Segment Discussion
The Company is organized geographically based upon the products and services it provides to its customers under two reportable segments:
International
International
Recent Company Highlights & Milestones
-
Cencora released its 2024 Corporate Responsibility Report and microsite, outlining the integration with business objectives and a focus on business resiliency and sustainable operations. For the seventh consecutive year, selected information within the 2024 report was assured by
ERM Certification and Verification Services .
Fiscal Year 2025 Expectations
The Company does not provide forward-looking guidance on a GAAP basis as to certain financial information, where the probable significance of the information 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 2025 Expectations on an Adjusted (non-GAAP) Basis
Cencora is now updating its fiscal year 2025 financial guidance to reflect stronger earnings growth in the
There is no reduction to updated EPS guidance for a noncontrolling interest in RCA because the 15% equity interest retained by certain RCA physicians and members of management is accounted for by the Company as a contingent liability as opposed to a noncontrolling interest in equity.
The Company now expects:
-
Adjusted diluted EPS to be in the range of
$15.70 to$15.95 , up from the previous range of$15.30 to$15.60 .
Additional expectations now include:
-
International
Healthcare Solutions segment revenue growth to be in the range of 3 to 4 percent, down from the previous range of 4 to 5 percent;
- On a constant currency basis, International Healthcare Solutions segment revenue growth to be in the range of 6 to 8 percent, down from the previous range of 7 to 9 percent;
- Adjusted consolidated operating income growth to be in the range of 13.5 to 15.5 percent, up from the previous range of 11.5 to 13.5 percent;
-
U.S. Healthcare Solutions segment operating income growth to be in the range of 17.5 to 19.5 percent, up from the previous range of 14.5 to 16.5 percent;
-
International
Healthcare Solutions segment as reported operating income decline of 1 to 4 percent, down from the previous guidance of no growth;
- On a constant currency basis, International Healthcare Solutions segment operating income growth to be down 3 percent to flat, from the previous guidance of an increase of approximately 5 percent;
- Weighted average diluted shares outstanding is expected to be in the range of 195.0 to 195.5 million, revised from the previous expectation of under 196 million.
Dividend Declaration
The Company’s Board of Directors declared a quarterly cash dividend of
Conference Call & Slide Presentation
The Company will host a conference call to discuss its operating results at
-
Robert P. Mauch , President & Chief Executive Officer -
James F. Cleary , Executive Vice President & Chief Financial Officer
The dial-in number for the live call will be (833) 470-1428. From outside
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
Upcoming Investor Events
Cencora management will be attending the following investor event in the coming months:
-
Bank of America Global Healthcare Conference ,May 13, 2025 .
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 51,000+ 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 #18 on the Global Fortune 500 with more than
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 such forward-looking statements, but the absence of these words does not mean the 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 (i) in 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
|
CENCORA, INC. |
||||||||||||||||
|
FINANCIAL SUMMARY |
||||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
|
|
Three Months Ended
|
|
% of
|
|
Three Months Ended
|
|
% of
|
|
%
|
||||||
|
Revenue |
|
$ |
75,453,673 |
|
|
|
$ |
68,414,307 |
|
|
|
|
10.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cost of goods sold |
|
|
72,393,864 |
|
|
|
|
65,876,284 |
|
|
|
|
9.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gross profit 1 |
|
|
3,059,809 |
|
4.06 |
% |
|
|
2,538,023 |
|
|
3.71 |
% |
|
20.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||||
|
Distribution, selling, and administrative |
|
|
1,600,040 |
|
2.12 |
% |
|
|
1,388,810 |
|
|
2.03 |
% |
|
15.2 |
% |
|
Depreciation and amortization |
|
|
259,818 |
|
0.34 |
% |
|
|
271,732 |
|
|
0.40 |
% |
|
(4.4 |
)% |
|
Litigation and opioid-related expenses |
|
|
11,524 |
|
|
|
|
225,985 |
|
|
|
|
|
|||
|
Acquisition-related deal and integration expenses 2 |
|
|
99,380 |
|
|
|
|
22,610 |
|
|
|
|
|
|||
|
Restructuring and other expenses |
|
|
52,857 |
|
|
|
|
75,627 |
|
|
|
|
|
|||
|
Total operating expenses |
|
|
2,023,619 |
|
2.68 |
% |
|
|
1,984,764 |
|
|
2.90 |
% |
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Operating income |
|
|
1,036,190 |
|
1.37 |
% |
|
|
553,259 |
|
|
0.81 |
% |
|
87.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Other loss, net |
|
|
3,546 |
|
|
|
|
22,063 |
|
|
|
|
|
|||
|
Interest expense, net |
|
|
103,988 |
|
|
|
|
64,130 |
|
|
|
|
62.2 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Income before income taxes |
|
|
928,656 |
|
1.23 |
% |
|
|
467,066 |
|
|
0.68 |
% |
|
98.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Income tax expense |
|
|
211,239 |
|
|
|
|
45,861 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income |
|
|
717,417 |
|
0.95 |
% |
|
|
421,205 |
|
|
0.62 |
% |
|
70.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net loss (income) attributable to noncontrolling interests |
|
|
454 |
|
|
|
|
(430 |
) |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income attributable to |
|
$ |
717,871 |
|
0.95 |
% |
|
$ |
420,775 |
|
|
0.62 |
% |
|
70.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
|
$ |
3.70 |
|
|
|
$ |
2.11 |
|
|
|
|
75.4 |
% |
||
|
Diluted |
|
$ |
3.68 |
|
|
|
$ |
2.09 |
|
|
|
|
76.1 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
|
|
193,796 |
|
|
|
|
199,406 |
|
|
|
|
(2.8 |
)% |
||
|
Diluted |
|
|
195,094 |
|
|
|
|
201,177 |
|
|
|
|
(3.0 |
)% |
||
| _________________________ | ||||
|
1 |
Includes a |
|||
|
|
|
|||
|
2 |
In connection with the acquisition of RCA, certain physicians and members of management retained equity or were granted incentive units in RCA. These equity units are subject to expense adjustments, including fair value adjustments, and as a result the Company recorded |
|||
|
CENCORA, INC. |
|||||||||||||||||
|
FINANCIAL SUMMARY |
|||||||||||||||||
|
(in thousands, except per share data) |
|||||||||||||||||
|
(unaudited) |
|||||||||||||||||
|
|
|
Six Months Ended
|
|
% of
|
|
Six Months Ended
|
|
% of
|
|
%
|
|||||||
|
Revenue |
|
$ |
156,940,733 |
|
|
|
|
$ |
140,667,140 |
|
|
|
|
11.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Cost of goods sold |
|
|
151,322,886 |
|
|
|
|
|
135,660,305 |
|
|
|
|
11.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Gross profit 1 |
|
|
5,617,847 |
|
|
3.58 |
% |
|
|
5,006,835 |
|
|
3.56 |
% |
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Distribution, selling, and administrative |
|
|
3,072,095 |
|
|
1.96 |
% |
|
|
2,787,557 |
|
|
1.98 |
% |
|
10.2 |
% |
|
Depreciation and amortization |
|
|
538,310 |
|
|
0.34 |
% |
|
|
542,335 |
|
|
0.39 |
% |
|
(0.7 |
)% |
|
Litigation and opioid-related expenses, net 2 |
|
|
28,289 |
|
|
|
|
|
147,068 |
|
|
|
|
|
|||
|
Acquisition-related deal and integration expenses 3 |
|
|
138,092 |
|
|
|
|
|
43,673 |
|
|
|
|
|
|||
|
Restructuring and other expenses |
|
|
98,617 |
|
|
|
|
|
110,068 |
|
|
|
|
|
|||
|
Total operating expenses |
|
|
3,875,403 |
|
|
2.47 |
% |
|
|
3,630,701 |
|
|
2.58 |
% |
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Operating income |
|
|
1,742,444 |
|
|
1.11 |
% |
|
|
1,376,134 |
|
|
0.98 |
% |
|
26.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Other loss, net |
|
|
61,420 |
|
|
|
|
|
20,976 |
|
|
|
|
|
|||
|
Interest expense, net |
|
|
131,921 |
|
|
|
|
|
104,694 |
|
|
|
|
26.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Income before income taxes |
|
|
1,549,103 |
|
|
0.99 |
% |
|
|
1,250,464 |
|
|
0.89 |
% |
|
23.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Income tax expense |
|
|
337,967 |
|
|
|
|
|
226,251 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net income |
|
|
1,211,136 |
|
|
0.77 |
% |
|
|
1,024,213 |
|
|
0.73 |
% |
|
18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net income attributable to noncontrolling interests |
|
|
(4,665 |
) |
|
|
|
|
(1,938 |
) |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net income attributable to |
|
$ |
1,206,471 |
|
|
0.77 |
% |
|
$ |
1,022,275 |
|
|
0.73 |
% |
|
18.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Basic |
|
$ |
6.23 |
|
|
|
|
$ |
5.12 |
|
|
|
|
21.7 |
% |
||
|
Diluted |
|
$ |
6.18 |
|
|
|
|
$ |
5.07 |
|
|
|
|
21.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Basic |
|
|
193,780 |
|
|
|
|
|
199,747 |
|
|
|
|
(3.0 |
)% |
||
|
Diluted |
|
|
195,144 |
|
|
|
|
|
201,510 |
|
|
|
|
(3.2 |
)% |
||
| ________________________ | ||||
|
1 |
Includes a |
|||
|
|
|
|||
|
2 |
The six months ended |
|||
|
|
|
|||
|
3 |
In connection with the acquisition of RCA, certain physicians and members of management retained equity or were granted incentive units in RCA. These equity units are subject to expense adjustments, including fair value adjustments, and as a result the Company recorded |
|||
|
CENCORA, INC. |
|||||||||||||||||||||||||||||
|
GAAP TO NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||||
|
(in thousands, except per share data) |
|||||||||||||||||||||||||||||
|
(unaudited) |
|||||||||||||||||||||||||||||
|
|
|
Three Months Ended |
|
||||||||||||||||||||||||||
|
|
|
Gross
|
|
Operating
|
|
Operating
|
|
Income
|
|
Income Tax
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||
|
GAAP |
|
$ |
3,059,809 |
|
|
$ |
2,023,619 |
|
|
$ |
1,036,190 |
|
|
$ |
928,656 |
|
|
$ |
211,239 |
|
|
$ |
717,871 |
|
|
$ |
3.68 |
|
|
|
Gains from antitrust litigation settlements |
|
|
(198,646 |
) |
|
|
— |
|
|
|
(198,646 |
) |
|
|
(198,646 |
) |
|
|
(54,162 |
) |
|
|
(144,484 |
) |
|
|
(0.74 |
) |
|
|
LIFO expense |
|
|
39,469 |
|
|
|
— |
|
|
|
39,469 |
|
|
|
39,469 |
|
|
|
10,899 |
|
|
|
28,570 |
|
|
|
0.15 |
|
|
|
|
|
|
14,479 |
|
|
|
— |
|
|
|
14,479 |
|
|
|
18,394 |
|
|
|
— |
|
|
|
18,394 |
|
|
|
0.09 |
|
|
|
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(137,011 |
) |
|
|
137,011 |
|
|
|
137,011 |
|
|
|
35,632 |
|
|
|
100,628 |
|
|
|
0.52 |
|
|
|
Litigation and opioid-related expenses |
|
|
— |
|
|
|
(11,524 |
) |
|
|
11,524 |
|
|
|
11,524 |
|
|
|
2,964 |
|
|
|
8,560 |
|
|
|
0.04 |
|
|
|
Acquisition-related deal and integration expenses |
|
|
— |
|
|
|
(99,380 |
) |
|
|
99,380 |
|
|
|
99,380 |
|
|
|
16,517 |
|
|
|
82,863 |
|
|
|
0.42 |
|
|
|
Restructuring and other expenses |
|
|
— |
|
|
|
(52,857 |
) |
|
|
52,857 |
|
|
|
52,857 |
|
|
|
13,953 |
|
|
|
38,904 |
|
|
|
0.20 |
|
|
|
Other, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,763 |
|
|
|
952 |
|
|
|
4,811 |
|
|
|
0.02 |
|
|
|
Tax reform 1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,855 |
) |
|
|
(11,367 |
) |
|
|
6,512 |
|
|
|
0.03 |
|
|
|
Adjusted Non-GAAP |
|
$ |
2,915,111 |
|
|
$ |
1,722,847 |
|
|
$ |
1,192,264 |
|
|
$ |
1,089,553 |
|
|
$ |
226,627 |
|
|
$ |
862,629 |
|
|
$ |
4.42 |
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Adjusted Non-GAAP % change vs. prior year quarter |
|
|
15.2 |
% |
|
|
15.2 |
% |
|
|
15.3 |
% |
|
|
12.5 |
% |
|
|
12.0 |
% |
|
|
12.7 |
% |
|
|
16.3 |
% |
|
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
|
Gross profit |
|
4.06% |
|
3.86% |
|
Operating expenses |
|
2.68% |
|
2.28% |
|
Operating income |
|
1.37% |
|
1.58% |
| ________________________________________ | ||||
|
1 |
Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets. |
|||
|
|
|
|||
|
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. |
|||
|
CENCORA, INC. |
|||||||||||||||||||||||||||||
|
GAAP TO NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||||
|
(in thousands, except per share data) |
|||||||||||||||||||||||||||||
|
(unaudited) |
|||||||||||||||||||||||||||||
|
|
|
Three Months Ended |
|
||||||||||||||||||||||||||
|
|
|
Gross
|
|
Operating
|
|
Operating
|
|
Income
|
|
Income Tax
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||
|
GAAP |
|
$ |
2,538,023 |
|
|
$ |
1,984,764 |
|
|
$ |
553,259 |
|
|
$ |
467,066 |
|
|
$ |
45,861 |
|
|
$ |
420,775 |
|
|
$ |
2.09 |
|
|
|
Gains from antitrust litigation settlements |
|
|
(8,714 |
) |
|
|
— |
|
|
|
(8,714 |
) |
|
|
(8,714 |
) |
|
|
(4,259 |
) |
|
|
(4,455 |
) |
|
|
(0.02 |
) |
|
|
LIFO credit |
|
|
(22,835 |
) |
|
|
— |
|
|
|
(22,835 |
) |
|
|
(22,835 |
) |
|
|
(7,915 |
) |
|
|
(14,920 |
) |
|
|
(0.07 |
) |
|
|
|
|
|
23,053 |
|
|
|
— |
|
|
|
23,053 |
|
|
|
23,210 |
|
|
|
— |
|
|
|
23,210 |
|
|
|
0.12 |
|
|
|
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(164,799 |
) |
|
|
164,799 |
|
|
|
164,799 |
|
|
|
49,444 |
|
|
|
114,922 |
|
|
|
0.57 |
|
|
|
Litigation and opioid-related expenses 1 |
|
|
— |
|
|
|
(225,985 |
) |
|
|
225,985 |
|
|
|
225,985 |
|
|
|
51,093 |
|
|
|
174,892 |
|
|
|
0.87 |
|
|
|
Acquisition-related deal and integration expenses |
|
|
— |
|
|
|
(22,610 |
) |
|
|
22,610 |
|
|
|
22,610 |
|
|
|
7,144 |
|
|
|
15,466 |
|
|
|
0.08 |
|
|
|
Restructuring and other expenses |
|
|
— |
|
|
|
(75,627 |
) |
|
|
75,627 |
|
|
|
75,627 |
|
|
|
16,453 |
|
|
|
59,174 |
|
|
|
0.29 |
|
|
|
Other, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,380 |
|
|
|
916 |
|
|
|
6,464 |
|
|
|
0.03 |
|
|
|
Tax reform and discrete tax items 2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,230 |
|
|
|
43,658 |
|
|
|
(30,428 |
) |
|
|
(0.15 |
) |
|
|
Adjusted Non-GAAP |
|
$ |
2,529,527 |
|
|
$ |
1,495,743 |
|
|
$ |
1,033,784 |
|
|
$ |
968,358 |
|
|
$ |
202,395 |
|
|
$ |
765,100 |
|
|
$ |
3.80 |
|
3 |
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
|
Gross profit |
|
3.71% |
|
3.70% |
|
Operating expenses |
|
2.90% |
|
2.19% |
|
Operating income |
|
0.81% |
|
1.51% |
| ________________________________________ | ||||
|
1 |
Includes a |
|||
|
|
|
|||
|
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) and the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets. |
|||
|
|
|
|||
|
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) |
|||||||||||||||||||||||||||||
|
|
|
Six Months Ended |
|
||||||||||||||||||||||||||
|
|
|
Gross
|
|
Operating
|
|
Operating
|
|
Income
|
|
Income Tax
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||
|
GAAP |
|
$ |
5,617,847 |
|
|
$ |
3,875,403 |
|
|
$ |
1,742,444 |
|
|
$ |
1,549,103 |
|
|
$ |
337,967 |
|
|
$ |
1,206,471 |
|
|
$ |
6.18 |
|
|
|
Gains from antitrust litigation settlements |
|
|
(221,516 |
) |
|
|
— |
|
|
|
(221,516 |
) |
|
|
(221,516 |
) |
|
|
(60,692 |
) |
|
|
(160,824 |
) |
|
|
(0.82 |
) |
|
|
LIFO expense |
|
|
32,145 |
|
|
|
— |
|
|
|
32,145 |
|
|
|
32,145 |
|
|
|
8,807 |
|
|
|
23,338 |
|
|
|
0.12 |
|
|
|
|
|
|
21,634 |
|
|
|
— |
|
|
|
21,634 |
|
|
|
26,060 |
|
|
|
— |
|
|
|
26,060 |
|
|
|
0.13 |
|
|
|
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(301,867 |
) |
|
|
301,867 |
|
|
|
301,867 |
|
|
|
82,707 |
|
|
|
217,975 |
|
|
|
1.12 |
|
|
|
Litigation and opioid-related expenses |
|
|
— |
|
|
|
(28,289 |
) |
|
|
28,289 |
|
|
|
28,289 |
|
|
|
7,751 |
|
|
|
20,538 |
|
|
|
0.11 |
|
|
|
Acquisition-related deal and integration expenses |
|
|
— |
|
|
|
(138,092 |
) |
|
|
138,092 |
|
|
|
138,092 |
|
|
|
27,571 |
|
|
|
110,521 |
|
|
|
0.57 |
|
|
|
Restructuring and other expenses |
|
|
— |
|
|
|
(98,617 |
) |
|
|
98,617 |
|
|
|
98,617 |
|
|
|
27,020 |
|
|
|
71,597 |
|
|
|
0.37 |
|
|
|
Loss on divestiture of non-core businesses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
35,539 |
|
|
|
— |
|
|
|
35,539 |
|
|
|
0.18 |
|
|
|
Other, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,694 |
|
|
|
1,875 |
|
|
|
5,819 |
|
|
|
0.03 |
|
|
|
Tax reform 1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,349 |
|
|
|
(23,042 |
) |
|
|
33,391 |
|
|
|
0.17 |
|
|
|
Adjusted Non-GAAP |
|
$ |
5,450,110 |
|
|
$ |
3,308,538 |
|
|
$ |
2,141,572 |
|
|
$ |
2,006,239 |
|
|
$ |
409,964 |
|
|
$ |
1,590,425 |
|
|
$ |
8.15 |
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Adjusted Non-GAAP % change vs. prior year |
|
|
10.8 |
% |
|
|
10.3 |
% |
|
|
11.6 |
% |
|
|
11.0 |
% |
|
|
8.3 |
% |
|
|
11.5 |
% |
|
|
15.1 |
% |
|
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
|
Gross profit |
|
3.58% |
|
3.47% |
|
Operating expenses |
|
2.47% |
|
2.11% |
|
Operating income |
|
1.11% |
|
1.36% |
| ________________________________________ | ||||
|
1 |
Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets. |
|||
|
|
|
|||
|
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. |
|||
|
CENCORA, INC. |
|||||||||||||||||||||||||||||
|
GAAP TO NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||||
|
(in thousands, except per share data) |
|||||||||||||||||||||||||||||
|
(unaudited) |
|||||||||||||||||||||||||||||
|
|
|
Six Months Ended |
|
||||||||||||||||||||||||||
|
|
|
Gross
|
|
Operating
|
|
Operating
|
|
Income Before
|
|
Income Tax
|
|
Net Income
|
|
Diluted
|
|
||||||||||||||
|
GAAP |
|
$ |
5,006,835 |
|
|
$ |
3,630,701 |
|
|
$ |
1,376,134 |
|
|
$ |
1,250,464 |
|
|
$ |
226,251 |
|
|
$ |
1,022,275 |
|
|
$ |
5.07 |
|
|
|
Gains from antitrust litigation settlements |
|
|
(56,962 |
) |
|
|
— |
|
|
|
(56,962 |
) |
|
|
(56,962 |
) |
|
|
(14,715 |
) |
|
|
(42,247 |
) |
|
|
(0.21 |
) |
|
|
LIFO credit |
|
|
(71,280 |
) |
|
|
— |
|
|
|
(71,280 |
) |
|
|
(71,280 |
) |
|
|
(18,413 |
) |
|
|
(52,867 |
) |
|
|
(0.26 |
) |
|
|
|
|
|
40,279 |
|
|
|
— |
|
|
|
40,279 |
|
|
|
40,129 |
|
|
|
— |
|
|
|
40,129 |
|
|
|
0.20 |
|
|
|
Acquisition-related intangibles amortization |
|
|
— |
|
|
|
(330,523 |
) |
|
|
330,523 |
|
|
|
330,523 |
|
|
|
85,357 |
|
|
|
244,298 |
|
|
|
1.21 |
|
|
|
Litigation and opioid-related expenses, net 1 |
|
|
— |
|
|
|
(147,068 |
) |
|
|
147,068 |
|
|
|
147,068 |
|
|
|
39,065 |
|
|
|
108,003 |
|
|
|
0.54 |
|
|
|
Acquisition-related deal and integration expenses |
|
|
— |
|
|
|
(43,673 |
) |
|
|
43,673 |
|
|
|
43,673 |
|
|
|
11,708 |
|
|
|
31,965 |
|
|
|
0.16 |
|
|
|
Restructuring and other expenses |
|
|
— |
|
|
|
(110,068 |
) |
|
|
110,068 |
|
|
|
110,068 |
|
|
|
23,916 |
|
|
|
86,152 |
|
|
|
0.43 |
|
|
|
Loss on remeasurement of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,431 |
|
|
|
— |
|
|
|
11,431 |
|
|
|
0.06 |
|
|
|
Other, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,372 |
|
|
|
807 |
|
|
|
5,565 |
|
|
|
0.03 |
|
|
|
Tax reform and discrete tax items 2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,455 |
) |
|
|
24,742 |
|
|
|
(28,197 |
) |
|
|
(0.14 |
) |
|
|
Adjusted Non-GAAP |
|
$ |
4,918,872 |
|
|
$ |
2,999,369 |
|
|
$ |
1,919,503 |
|
|
$ |
1,808,031 |
|
|
$ |
378,718 |
|
|
$ |
1,426,507 |
|
|
$ |
7.08 |
|
3 |
|
Percentages of Revenue: |
|
GAAP |
|
Adjusted
|
|
Gross profit |
|
3.56% |
|
3.50% |
|
Operating expenses |
|
2.58% |
|
2.13% |
|
Operating income |
|
0.98% |
|
1.36% |
| ________________________________________ | ||||
|
1 |
Includes a |
|||
|
|
|
|||
|
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) and the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets. |
|||
|
|
|
|||
|
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 |
||||||||
|
Revenue |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
|
$ |
68,283,831 |
|
|
$ |
61,292,897 |
|
|
11.4% |
|
International |
|
|
7,173,556 |
|
|
|
7,123,385 |
|
|
0.7% |
|
Intersegment eliminations |
|
|
(3,714 |
) |
|
|
(1,975 |
) |
|
|
|
Revenue |
|
$ |
75,453,673 |
|
|
$ |
68,414,307 |
|
|
10.3% |
|
|
|
Three Months Ended |
||||||||
|
Operating income |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
|
$ |
1,033,150 |
|
|
$ |
841,064 |
|
|
22.8% |
|
International |
|
|
159,301 |
|
|
|
192,720 |
|
|
(17.3)% |
|
Intersegment eliminations |
|
|
(187 |
) |
|
|
— |
|
|
|
|
Total segment operating income |
|
|
1,192,264 |
|
|
|
1,033,784 |
|
|
15.3% |
|
|
|
|
|
|
|
|
||||
|
Gains from antitrust litigation settlements |
|
|
198,646 |
|
|
|
8,714 |
|
|
|
|
LIFO (expense) credit |
|
|
(39,469 |
) |
|
|
22,835 |
|
|
|
|
|
|
|
(14,479 |
) |
|
|
(23,053 |
) |
|
|
|
Acquisition-related intangibles amortization |
|
|
(137,011 |
) |
|
|
(164,799 |
) |
|
|
|
Litigation and opioid-related expenses |
|
|
(11,524 |
) |
|
|
(225,985 |
) |
|
|
|
Acquisition-related deal and integration expenses |
|
|
(99,380 |
) |
|
|
(22,610 |
) |
|
|
|
Restructuring and other expenses |
|
|
(52,857 |
) |
|
|
(75,627 |
) |
|
|
|
Operating income |
|
$ |
1,036,190 |
|
|
$ |
553,259 |
|
|
87.3% |
|
|
|
|
|
|
|
|
||||
|
Percentages of Revenue: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
Gross profit |
|
|
3.11 |
% |
|
|
2.74 |
% |
|
|
|
Operating expenses |
|
|
1.59 |
% |
|
|
1.37 |
% |
|
|
|
Operating income |
|
|
1.51 |
% |
|
|
1.37 |
% |
|
|
|
|
|
|
|
|
|
|
||||
|
International |
|
|
|
|
|
|
||||
|
Gross profit |
|
|
11.10 |
% |
|
|
11.95 |
% |
|
|
|
Operating expenses |
|
|
8.88 |
% |
|
|
9.24 |
% |
|
|
|
Operating income |
|
|
2.22 |
% |
|
|
2.71 |
% |
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
Gross profit |
|
|
4.06 |
% |
|
|
3.71 |
% |
|
|
|
Operating expenses |
|
|
2.68 |
% |
|
|
2.90 |
% |
|
|
|
Operating income |
|
|
1.37 |
% |
|
|
0.81 |
% |
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
Adjusted gross profit |
|
|
3.86 |
% |
|
|
3.70 |
% |
|
|
|
Adjusted operating expenses |
|
|
2.28 |
% |
|
|
2.19 |
% |
|
|
|
Adjusted operating income |
|
|
1.58 |
% |
|
|
1.51 |
% |
|
|
|
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) |
||||||||||
|
|
|
Six Months Ended |
||||||||
|
Revenue |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
|
$ |
142,316,959 |
|
|
$ |
126,476,699 |
|
|
12.5% |
|
International |
|
|
14,630,897 |
|
|
|
14,193,612 |
|
|
3.1% |
|
Intersegment eliminations |
|
|
(7,123 |
) |
|
|
(3,171 |
) |
|
|
|
Revenue |
|
$ |
156,940,733 |
|
|
$ |
140,667,140 |
|
|
11.6% |
|
|
|
Six Months Ended |
||||||||
|
Operating income |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
|
$ |
1,800,494 |
|
|
$ |
1,539,188 |
|
|
17.0% |
|
International |
|
|
341,394 |
|
|
|
380,315 |
|
|
(10.2)% |
|
Intersegment eliminations |
|
|
(316 |
) |
|
|
— |
|
|
|
|
Total segment operating income |
|
|
2,141,572 |
|
|
|
1,919,503 |
|
|
11.6% |
|
|
|
|
|
|
|
|
||||
|
Gains from antitrust litigation settlements |
|
|
221,516 |
|
|
|
56,962 |
|
|
|
|
LIFO (expense) credit |
|
|
(32,145 |
) |
|
|
71,280 |
|
|
|
|
|
|
|
(21,634 |
) |
|
|
(40,279 |
) |
|
|
|
Acquisition-related intangibles amortization |
|
|
(301,867 |
) |
|
|
(330,523 |
) |
|
|
|
Litigation and opioid-related expenses |
|
|
(28,289 |
) |
|
|
(147,068 |
) |
|
|
|
Acquisition-related deal and integration expenses |
|
|
(138,092 |
) |
|
|
(43,673 |
) |
|
|
|
Restructuring and other expenses |
|
|
(98,617 |
) |
|
|
(110,068 |
) |
|
|
|
Operating income |
|
$ |
1,742,444 |
|
|
$ |
1,376,134 |
|
|
26.6% |
|
|
|
|
|
|
|
|
||||
|
Percentages of Revenue: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
Gross profit |
|
|
2.67 |
% |
|
|
2.57 |
% |
|
|
|
Operating expenses |
|
|
1.41 |
% |
|
|
1.35 |
% |
|
|
|
Operating income |
|
|
1.27 |
% |
|
|
1.22 |
% |
|
|
|
|
|
|
|
|
|
|
||||
|
International |
|
|
|
|
|
|
||||
|
Gross profit |
|
|
11.25 |
% |
|
|
11.76 |
% |
|
|
|
Operating expenses |
|
|
8.92 |
% |
|
|
9.08 |
% |
|
|
|
Operating income |
|
|
2.33 |
% |
|
|
2.68 |
% |
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
Gross profit |
|
|
3.58 |
% |
|
|
3.56 |
% |
|
|
|
Operating expenses |
|
|
2.47 |
% |
|
|
2.58 |
% |
|
|
|
Operating income |
|
|
1.11 |
% |
|
|
0.98 |
% |
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
Adjusted gross profit |
|
|
3.47 |
% |
|
|
3.50 |
% |
|
|
|
Adjusted operating expenses |
|
|
2.11 |
% |
|
|
2.13 |
% |
|
|
|
Adjusted operating income |
|
|
1.36 |
% |
|
|
1.36 |
% |
|
|
|
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) |
|||||
|
|
|
|
|
||
|
|
|
2025 |
|
|
2024 |
|
ASSETS |
|
|
|
||
|
|
|
|
|
||
|
Current assets: |
|
|
|
||
|
Cash and cash equivalents |
$ |
1,978,061 |
|
$ |
3,132,648 |
|
Accounts receivable, net |
|
23,715,008 |
|
|
23,871,815 |
|
Inventories |
|
18,965,502 |
|
|
18,998,833 |
|
Right to recover assets |
|
1,301,531 |
|
|
1,175,871 |
|
Prepaid expenses and other |
|
574,871 |
|
|
538,646 |
|
Total current assets |
|
46,534,973 |
|
|
47,717,813 |
|
|
|
|
|
||
|
Property and equipment, net |
|
2,302,809 |
|
|
2,181,410 |
|
|
|
17,954,247 |
|
|
13,319,073 |
|
Deferred income taxes |
|
233,700 |
|
|
246,348 |
|
Other long-term assets |
|
4,168,145 |
|
|
3,637,023 |
|
|
|
|
|
||
|
Total assets |
$ |
71,193,874 |
|
$ |
67,101,667 |
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
||
|
Accounts payable |
$ |
50,110,563 |
|
$ |
50,942,162 |
|
Accrued expenses and other |
|
2,447,498 |
|
|
2,758,560 |
|
Short-term debt |
|
770,321 |
|
|
576,331 |
|
Total current liabilities |
|
53,328,382 |
|
|
54,277,053 |
|
|
|
|
|
||
|
Long-term debt |
|
7,085,886 |
|
|
3,811,745 |
|
|
|
|
|
||
|
Accrued income taxes |
|
277,738 |
|
|
291,796 |
|
Deferred income taxes |
|
1,615,752 |
|
|
1,643,746 |
|
Accrued litigation liability |
|
4,284,602 |
|
|
4,296,902 |
|
Other long-term liabilities |
|
3,421,715 |
|
|
1,993,683 |
|
|
|
|
|
||
|
Total equity |
|
1,179,799 |
|
|
786,742 |
|
|
|
|
|
||
|
Total liabilities and stockholders’ equity |
$ |
71,193,874 |
|
$ |
67,101,667 |
|
CENCORA, INC. |
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(in thousands) |
|||||||
|
(unaudited) |
|||||||
|
|
Six Months Ended |
||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
Operating Activities: |
|
|
|
||||
|
Net income |
$ |
1,211,136 |
|
|
$ |
1,024,213 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
815,487 |
|
|
|
635,324 |
|
|
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: |
|
|
|
||||
|
Accounts receivable |
|
(218,043 |
) |
|
|
(1,682,145 |
) |
|
Inventories |
|
34,252 |
|
|
|
(119,023 |
) |
|
Accounts payable |
|
(669,479 |
) |
|
|
497,670 |
|
|
Other, net |
|
(540,897 |
) |
|
|
(349,325 |
) |
|
Net cash provided by operating activities |
|
632,456 |
|
|
|
6,714 |
|
|
|
|
|
|
||||
|
Investing Activities: |
|
|
|
||||
|
Capital expenditures |
|
(234,953 |
) |
|
|
(186,970 |
) |
|
Cost of acquired companies, net of cash acquired |
|
(3,947,761 |
) |
|
|
(2,310 |
) |
|
Cost of equity investments |
|
(192,576 |
) |
|
|
(8,021 |
) |
|
Non-customer note receivable |
|
(34,814 |
) |
|
|
(50,000 |
) |
|
Other, net |
|
(10,558 |
) |
|
|
15,014 |
|
|
Net cash used in investing activities |
|
(4,420,662 |
) |
|
|
(232,287 |
) |
|
|
|
|
|
||||
|
Financing Activities: |
|
|
|
||||
|
Net debt borrowings 1 |
|
3,455,501 |
|
|
|
472,409 |
|
|
Purchases of common stock |
|
(435,471 |
) |
|
|
(436,378 |
) |
|
Exercises of stock options |
|
15,778 |
|
|
|
18,629 |
|
|
Cash dividends on common stock |
|
(222,076 |
) |
|
|
(212,692 |
) |
|
Employee tax withholdings related to restricted share vesting |
|
(77,558 |
) |
|
|
(60,086 |
) |
|
Other, net |
|
(18,762 |
) |
|
|
(10,381 |
) |
|
Net cash provided by (used in) financing activities |
|
2,717,412 |
|
|
|
(228,499 |
) |
|
|
|
|
|
||||
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(48,520 |
) |
|
|
(13,671 |
) |
|
|
|
|
|
||||
|
Decrease in cash, case equivalents, and restricted cash |
|
(1,119,314 |
) |
|
|
(467,743 |
) |
|
|
|
|
|
||||
|
Cash, cash equivalents, and restricted cash at beginning of period 2 |
|
3,297,880 |
|
|
|
2,752,889 |
|
|
|
|
|
|
||||
|
Cash, cash equivalents, and restricted cash at end of period 2 |
$ |
2,178,566 |
|
|
$ |
2,285,146 |
|
| ________________________________________ | ||
|
1 |
Includes the issuance of |
|
|
|
|
|
|
2 |
The following represents a reconciliation of cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents, and restricted cash in the Condensed Consolidated Statements of Cash Flows: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
1,978,061 |
|
$ |
3,132,648 |
|
$ |
2,068,858 |
|
$ |
2,592,051 |
|
Restricted cash (included in Prepaid Expenses and Other) |
|
|
132,298 |
|
|
98,596 |
|
|
151,446 |
|
|
97,722 |
|
Restricted cash (included in Other Long-Term Assets) |
|
|
68,207 |
|
|
66,636 |
|
|
64,842 |
|
|
63,116 |
|
Cash, cash equivalents, and restricted cash |
|
$ |
2,178,566 |
|
$ |
3,297,880 |
|
$ |
2,285,146 |
|
$ |
2,752,889 |
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. We have included the following non-GAAP earnings-related financial measures in this release:
-
Adjusted gross profit and adjusted gross profit margin: Adjusted gross profit is a non-GAAP financial measure that excludes gains from antitrust litigation settlements, LIFO expense (credit), and
Turkey highly inflationary impact. Adjusted gross profit margin is the ratio of adjusted gross profit to total revenue. Management believes that these non-GAAP financial measures are useful to investors as a supplemental measure of the Company’s ongoing operating performance. Gains from antitrust litigation settlements, LIFO expense (credit), andTurkey highly inflationary impact are excluded because the Company cannot control the amounts recognized or timing of these items. Gains from antitrust litigation settlements relate to the settlement of lawsuits that have been filed against brand pharmaceutical manufacturers alleging that the manufacturer, by itself or in concert with others, took improper actions to delay or prevent generic drugs from entering the market. LIFO expense (credit) is affected by changes in inventory quantities, product mix, and manufacturer pricing practices, which may be impacted by market and other external influences.
- Adjusted operating expenses and adjusted operating expense margin: Adjusted operating expenses is a non-GAAP financial measure that excludes acquisition-related intangibles amortization; litigation and opioid-related expenses, net; acquisition-related deal and integration expenses; and restructuring and other expenses. Adjusted operating expense margin is the ratio of adjusted operating expenses to total revenue. 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 acquisition-related deal and integration expenses and restructuring and other expenses that relate to unpredictable and/or non-recurring business activities. We exclude the amount of litigation and opioid-related expenses, net that is unusual, non-operating, unpredictable, non-recurring or non-cash in nature because we believe these exclusions facilitate the analysis of our ongoing operational performance.
- Adjusted operating income and adjusted operating income margin: Adjusted operating income is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted gross profit and adjusted operating expenses. Adjusted operating income margin is the ratio of adjusted operating income to total revenue. Management believes that these non-GAAP financial measures are 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.
- Adjusted income before income taxes: Adjusted income before income taxes is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted operating income. In addition, the gain (loss) on remeasurement of an equity investment, the loss on the divestiture of non-core businesses, and the gain (loss) on the currency remeasurement of the deferred tax asset relating to 2020 Swiss tax reform are excluded from adjusted income before income taxes because these amounts are unusual, non-operating, and non-recurring. Management believes that this non-GAAP financial measure is useful to investors because it facilitates the calculation of the Company’s adjusted effective tax rate.
- Adjusted income tax expense: Adjusted income tax expense is a non-GAAP financial measure that excludes the income tax expense associated with the same items that are described above and excluded from adjusted income before income taxes. Certain discrete tax expense (benefits) are also excluded from adjusted income tax expense. Further, the amortization of deferred tax assets relating to 2020 Swiss tax reform is excluded from adjusted income tax expense. 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.
- Adjusted effective tax rate: Adjusted effective tax rate is a non-GAAP financial measure that is determined by dividing adjusted income tax expense by adjusted income before income taxes. Management believes that this non-GAAP financial measure is useful to investors because it presents an effective tax rate that does not reflect unusual, non-operating, unpredictable, non-recurring, or non-cash amounts or items that are outside the control of the Company.
- Adjusted net income attributable to Cencora: Adjusted net income attributable to the Company is a non-GAAP financial measure that excludes the same items that are described above. 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.
-
Adjusted diluted earnings per share: Adjusted diluted earnings per share excludes the per share impact of adjustments including gains from antitrust litigation settlements; LIFO expense (credit);
Turkey highly inflationary impact; acquisition-related intangibles amortization; litigation and opioid-related expenses, net; acquisition-related deal and integration expenses; restructuring and other expenses; the gain (loss) on remeasurement of an equity investment; the loss on the divestiture of non-core businesses; and the gain (loss) on the currency remeasurement related to 2020 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 items and the per share impact of the amortization of deferred tax assets relating to 2020 Swiss tax reform are also excluded from adjusted diluted earnings per share. Management believes that this non-GAAP financial measure is useful to investors because it eliminates the per share impact of the items that are outside the control of the Company or that we consider to not be indicative of our ongoing operating performance due to their inherent unusual, non-operating, unpredictable, non-recurring, or non-cash nature.
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Adjusted Free Cash Flow: Adjusted free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities, excluding significant unpredictable or non-recurring cash payments or receipts relating to legal settlements, minus capital expenditures. Adjusted free cash flow is used internally by management for measuring operating cash flow generation and setting performance targets and has historically been used as one of the means of providing guidance on possible future cash flows. For the six months ended
March 31, 2025 , adjusted free cash flow of$176.0 million consisted of net cash provided by operating activities of$632.5 million , minus capital expenditures of$235.0 million and gains from antitrust litigation settlements of$221.5 million . The Company does not provide forward looking guidance on a GAAP basis for free cash flow because the timing and amount of favorable and unfavorable settlements excluded from this metric, the probable significance of which cannot be determined, are unavailable and cannot be reasonably estimated.
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
In addition, the Company has provided non-GAAP fiscal year 2025 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/20250506186143/en/
Senior Vice President, Head of Investor Relations and
bennett.murphy@cencora.com
Source: Cencora
