AmerisourceBergen Corporation (NYSE:ABC) Q1 2015 Earnings Conference Call - Final Transcript

Jan 28, 2015 • 11:00 am ET


AmerisourceBergen Corporation (NYSE:ABC) Q1 2015 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the AmerisourceBergen Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session. Instructions will be given at that time (Operator Instructions). As a reminder, this conference is being recorded.

I'd now like to turn the conference over to your host Mr. Tim Guttman. Please go ahead.

Barbara Brungess

Hello. Actually this is Barbara Brungess and good morning everyone, and welcome to AmerisourceBergen's conference call covering our first quarter of fiscal 2015. I am the Vice President of Corporate Investor Relations for AmerisourceBergen. And joining me today are Steve Collis, AmerisourceBergen President and CEO; and Tim Guttman, Executive Vice President and CFO.

During the conference call today, we will make some forward-looking statements about our business prospects and financial expectations. We remind you that there are many risk factors that could cause our actual results to differ materially from our current expectations. For a discussion of some key risk factors, we refer you to our SEC filings, including our 10-K report for fiscal 2014 and other filings. Also, AmerisourceBergen assumes no obligation to update the matters discussed in this conference call, and this call cannot be rebroadcast without the express permission of the Company. As always, those connected by telephone will have an opportunity to ask questions after our opening remarks.

Now here

Unidentified Speaker

Steve Collis to begin our comments.

Steve Collis

Thanks, Barbara, and good morning, everyone. As we reported this morning in our press release, AmerisourceBergen associates delivered excellent financial results in our first quarter of fiscal 2015. Our revenues increased 15% to $33.6 billion. Our adjusted diluted earnings per share were up over 42% to $1.14, while we generated a very strong $900 million in operating cash flow.

One of the most gratifying aspects of this quarter's results is that it was driven by strong performance from virtually every one of our businesses. The strength of these core business positions and offerings combined with our disciplined capital management gives us the flexibility to continue to expand on knowledge, reach and partnership, as we make plans to broaden our provider and manufacture service offerings to a new market segment.

Earlier in January, we signed a definitive agreement to acquire MWI Veterinary Supply, a premier animal health distributor with $2.5 billion in cash. We commenced this tender offer for all outstanding shares of MWI on January 26, and we expect to close the transaction during the March quarter. As I said when we first announced the deal, ABC has delivered significant growth and shareholder value by staying focused on the pharmaceutical supply chain where we have developed unparallel knowledge and expertise and by bring a collaborative philosophy to all of our relationships. Jim Cleary and his team at MWI will be ideal partners with whom to bold on that foundation and they stand our reach into the growing global animal health sector.

MWI is already well respected for their great success since the company was founded