uploads///ABC revenue

AmerisourceBergen’s Financial Performance in 1Q18

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Mar. 6 2018, Updated 1:14 p.m. ET

Revenue trend

In 1Q18, AmerisourceBergen (ABC) generated revenues of $40.4 billion—compared to $38.1 billion in 1Q17. The cost of goods sold incurred by the company was $39.3 billion in 1Q18—compared to $37.1 billion in 1Q17. AmerisourceBergen’s gross profit was $1.1 billion in 1Q18—compared to $1 billion in 1Q17.

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Operating expenses

AmerisourceBergen incurred distribution, selling, and administrative expenses of $558.5 million in 1Q18—compared to $520.2 million in 1Q17. The company’s depreciation and amortization expenses were $105 million in 1Q18—compared to $96 million in 1Q17.

AmerisourceBergen’s operating income was $418.9 million in 1Q18—compared to $399.9 million in 1Q17. The company incurred interest expenses of $35.8 million in 1Q18—compared to $36.9 million in 1Q17.

Bottom line

In 1Q17, AmerisourceBergen’s income tax expense was $115.8 million. In 1Q18, the company had an income tax benefit of $502.8 million. As a result, AmerisourceBergen’s net income increased from $247.2 million in 1Q17 to $861.8 million in 1Q18. The company’s earnings per share rose to $3.90 in 1Q18 from $1.11 in 1Q17.

Cash flows

In 1Q18, AmerisourceBergen generated $10.3 million in operating cash flow—compared to an outflow of $430.3 million in 1Q17. The higher operating cash flows were mainly due to a higher net income and lower inventory levels during this period.

The net cash that AmerisourceBergen used for investing activities was $142.3 million in 1Q18—compared to $156.8 million in 1Q17. The decrease was mainly due to the company’s lower capital expenditures. In 1Q18, AmerisourceBergen’s capital expenditures were $73.6 million—compared to $137.2 million in 1Q17.

In 1Q18, AmerisourceBergen generated $734.6 million from financing activities—compared to an outflow of $363.4 million in 1Q17. The increase was mainly due to $1.2 billion raised through senior note borrowings in 1Q18.

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