AmerisourceBergen Corporation (NYSE:ABC) Q3 2016 Earnings Conference Call - Preliminary Transcript

Aug 02, 2016 • 11:00 am ET


AmerisourceBergen Corporation (NYSE:ABC) Q3 2016 Earnings Conference Call - Preliminary Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the ABC Earnings Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. As a reminder this conference is being recorded. I would now like to turn the conference over to our host, Barbara Brungess. Please go ahead.

Barbara A. Brungess

Thank you, Roxanne. Good morning, everyone. And thank you for joining us on this conference call to discuss AmerisourceBergen's June quarter fiscal year 2016 results. I am Barbara Brungess, Vice President, Corporate and Investor Relations for AmerisourceBergen. And joining me today are Steve Collis, Chairman, President and CEO of AmerisourceBergen, and Tim Guttman, Executive Vice President and CFO of AmerisourceBergen.

During the conference call today, we will make some forward-looking statements about our business prospects and financial expectations, including without limitation revenue, operating margin and taxes. Forward-looking statements are based on management's current expectations, and are subject to uncertainty and change in circumstance. We remind you there are many uncertainties and risks that could cause our actual results to differ materially from our current expectations. For a discussion of some key risk factors and other cautionary statements, we refer you to our SEC filing, including our Form 10-K for fiscal 2015, as well as our quarterly and other filings with the SEC.

We will also be discussing non-GAAP financial measures, which we use to assess the underlying performance of our business. The GAAP to non-GAAP reconciliations are provided in today's press release as well as on our website. AmerisourceBergen assumes no obligation to update any forward-looking statements or information which speaks as of their respective dates, and this call cannot be rebroadcast without the express permission of the company. Those connected by phone will have an opportunity to ask questions after our opening remarks. We have a lot of material to cover this morning, so we will get started and we'll leave ample time for questions, but we'll try to keep the call to an hour. Now here is Steve Collis.

Steven H. Collis

Thanks, Barbara, and good morning, everyone. We appreciate you joining us on this very busy day. I am pleased to report solid performance in our June quarter and good progress on the objectives for fiscal 2016 that we laid out in early May. Revenues were up nearly 8% and adjusted EPS was up 14%. Certain areas of our business continue to perform very well, including our most recent acquisitions, MWI Veterinary Supply and PharMEDium. Our specialty group also continued its strong performance in the June quarter. At AmerisourceBergen Drug Corporation, we renewed our distribution relationship with Kaiser Permanente for five years and achieved the benefit of some expense reduction earlier than expected.

With many of our large customer renewals now behind us, we feel really good about our market position in all of our key portfolio segments. While there's still work to be done, I'm thrilled to commend our associates for their successful work and