AmerisourceBergen Corporation (NYSE:ABC) Q3 2015 Earnings Conference Call - Final Transcript

Jun 15, 2016 • 11:00 am ET


AmerisourceBergen Corporation (NYSE:ABC) Q3 2015 Earnings Conference Call - Final Transcript


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Welcome to the AmerisourceBergen Earnings call. [Operator Instructions] And as a reminder, today's teleconference is being recorded.

Now I will turn the conference over to Ms. Barbara Brungess.

Barbara Brungess

Good morning, everyone and welcome to AmerisourceBergen's earnings conference call covering our third quarter of Fiscal 2015. I am Barbara Brungess, Vice President of Corporate and Investor Relations 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 expressed permission of the Company. As always, those connected by phone will have an opportunity to ask questions after our opening remarks.

Now here is Steve Collis to begin our comments.

Steve Collis

Thanks, Barbara and good morning, everyone. I am pleased to report that AmerisourceBergen Associates once again delivered strong performance in our third fiscal quarter of 2015. As we reported this morning in our press release, our revenues increased 13% to $34.2 billion and our adjusted earnings per share were up 19% to $1.2 billion -- $1.26 and we generated an exceptional $1.1 billion in free cash flow.

Our results were driven by solid performance across all of our core businesses and include a full-quarter impact from NWR veterinary suppliers which is performing better than expected. The progress we have made in strengthening our existing platforms and investing in new ones demonstrate our commitments to providing our customers and suppliers with market-leading solutions that enable us to collaboratively address the challenges of the fast-changing landscape.

We constantly seek to expand our knowledge, reach and partnerships, in an effort to drive innovation in both human and animal healthcare services. The quality of our offerings, our seamless execution and our disciplined capital management gives us the flexibility to grow our business in ways that help ensure we'll generate long-term value for our manufacturers and healthcare provider customers, our stakeholders and our other stakeholders for many years to come.

Our excellent performance through the first nine months of fiscal 2015 sets us up very well to meet our objectives for the full year. As expected, we have begun to face some headwinds in the second half of fiscal 2015 and we are beginning to anniversary many of the significant benefits of our long-term strategic Relationship with Walgreens Boots Alliance. However, organic growth rates remain strong, specialties growing faster than the overall markets and I feel our excellent portfolio of leading pharmaceutical services companies positions us extremely well to continue to take advantage of the opportunities across the entire pharmaceutical supply channel.