• 4Q Adjusted EBITDA Increases 55%
• 4Q Adjusted Earnings Per Share Increase 75%
• 4Q Adjusted EBITDA Margin Increases to 5.6%
• Company Announces 2012 Earnings Guidance
LOUISVILLE, Ky. (Feb. 10, 2012) BUSINESS WIRE — PharMerica Corporation (NYSE: PMC), a national provider of institutional pharmacy and hospital pharmacy management services, today reported its financial results for the fourth quarter of 2011 and year ended Dec. 31, 2011.
Commenting on the Company’s results for the fourth quarter, Gregory S. Weishar, PharMerica Corporation’s Chief Executive Officer, said, “Fourth quarter’s strong results clearly demonstrate PharMerica’s potential as we continue to benefit from improved purchasing terms and the accelerating conversion of brand drugs to generics. We are extremely pleased with our employees’ dedication and performance during the past six months; service levels are at an all time high, and we are making excellent progress on our strategic initiatives, which are focused on improving client retention and operating margins. We emerged from the distraction of Omnicare’s hostile tender offer as a stronger company with a laser focus on driving customer value. Looking forward, we see continued improvements in client retention, margin expansion and a very favorable acquisition climate. The most recent acquisition of Pharmacy Management Group, which we completed at the end of 2011, solidifies our market presence in Ohio and Pennsylvania. We are confident that our strategic initiatives will continue to provide outstanding value to PharMerica shareholders during 2012 and beyond.”
The results for the fourth quarter and year are set forth below:
Key Comparisons of Fourth Quarters Ended December 31, 2011 and 2010:
• Revenues for the fourth quarter of 2011 were $495.6 million compared with $491.5 million for the fourth quarter of 2010, an increase of 0.8%.
• Net income for the fourth quarter of 2011 was $7.9 million, or $0.27 per diluted common share, compared with $4.7 million, or $0.16 per diluted common share, for the same period in 2010. Adjusted earnings per diluted common share were $0.35 in 2011 compared with $0.20 in 2010, an increase of 75.0%.
• Cash flows provided by operating activities were $14.5 million compared with $29.4 million in the prior year. The reduction in cash flows was primarily due to timing changes for the purchase of inventories and an increase in rebate receivables due to the renegotiated Prime Vendor Agreement. After consideration of these two factors, adjusted cash provided by operating activities would have been $31.8 million in the fourth quarter of 2011, an increase of $2.4 million from the prior year.
• Adjusted EBITDA for the quarter was $27.6 million compared with $17.8 million in the prior year, an increase of 55.1%.
Key Comparisons of Years Ended December 31, 2011 and 2010:
• Revenues for the year ended December 31, 2011, were $2,081.1 million compared with $1,847.3 million for the same period of 2010, an increase of 12.7%.
• Net income for the year ended December 31, 2011, was $23.4 million, or $0.79 per diluted common share, compared with $19.2 million, or $0.64 per diluted common share, for the same period of 2010. Adjusted earnings per diluted common share were $1.20 for the year ended December 31, 2011, compared with $0.93 in 2010, an increase of 29.0%.
• Cash flows provided by operating activities were $26.8 million compared with $98.2 million in the prior year. The reduction in cash flows was due primarily to timing changes and frequency of payments for the purchase of inventories, an increase in rebate receivables as a result of the renegotiated Prime Vendor Agreement and an adjustment to Chem Rx’s payment terms. Adjusted cash provided by operating activities would have been $126.5 million on a comparable basis.
• Adjusted EBITDA for 2011 was $98.5 million compared with $78.5 million in the prior year, an increase of 25.5%.
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