pharmerica corp (PMC) Key Developments
PharMerica Corporation Provides Legal Update in its Lawsuit with AmerisourceBergen Drug Corporation
Nov 25 14
PharMerica Corporation commenced litigation against AmerisourceBergen Drug Corporation in the Jefferson County Circuit Court of Kentucky on September 10, 2014. After the Lawsuit was filed in Kentucky, Amerisource commenced litigation against the Corporation in the Court of Chancery in the State of Delaware in an attempt to have the case heard in Delaware rather than Kentucky. On November 10, 2014, the Delaware Court of Chancery ruled that it did not have subject matter jurisdiction over the matter because Amerisource had filed the litigation in the incorrect court in Delaware. In so ruling, the Court of Chancery noted its belief that the case should be heard in Kentucky and not Delaware, while noting that the Delaware Superior Court would ultimately decide that issue. On November 20, 2014, the parties to the Delaware action stipulated to its voluntary dismissal. Following the commencement of the Lawsuit, Amerisource unilaterally instituted several changes to its obligations under the Amended and Restated Prime Vendor Agreement, as amended between the Corporation and Amerisource, which the Corporation believed were made in retaliation against the corporation for commencing the Lawsuit and seeking to enforce its rights under its Prime Vendor Agreement. On October 8, 2014, the Corporation filed a Motion for a Temporary Injunction against Amerisource to prohibit Amerisource from imposing automatic drug substitution programs on its transactions with the Corporation. The court heard the Motion for Temporary Injunction on November 13, 2014. On November 24, 2014, the court issued a temporary injunction against Amerisource. The temporary injunction will remain in effect for the duration of the litigation between the Corporation and Amerisource. Amerisource will have 20 days to appeal the injunction to the Kentucky Court of Appeals. The Corporation is pursuing claims for monetary damages that resulted from the actions of Amerisource upon which the injunction was based. At this time, the Corporation is unable to determine the ultimate impact of these litigation proceedings on its consolidated financial condition, results
of operations, or liquidity. The litigation proceedings with Amerisource could continue for an extended period
of time, likely longer than 18 months. Although the Corporation is confident in the merits of its case, until
the resolution or settlement of such proceedings, the Corporation cannot provide any assurances about the
collectability of the disputed amounts owed by Amerisource.
PharMerica Corporation Announces Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended September 30, 2014; Revises Financial Guidance for the Fiscal Year 2014
Nov 6 14
PharMerica Corporation announced unaudited consolidated financial results for the third quarter and nine months ended September 30, 2014. For the quarter, revenues were $470.2 million against $436.8 million a year ago. Operating income was $17.1 million against $0.6 million a year ago. Income before income taxes was $10.7 million against loss of $2.0 million a year ago. Net income was $8.5 million or $0.28 per basic and diluted share against loss of $6.2 million or $0.21 per basic and diluted share a year ago. Net cash provided by operating activities was $19.7 million against $78.1 million a year ago. Purchase of equipment and leasehold improvements was $6.2 million against $6.9 million a year ago. Adjusted EBITDA was $33.0 million against $33.9 million a year ago. Adjusted diluted earnings per share were $0.45 against $0.49 a year ago. The increase in revenue was the result of the fourth quarter 2013 and 2014 acquisitions and inflation on brand drugs partially offset by the loss of large customer effective December 31, 2013. The net loss in the third quarter of 2013 was primarily attributable to the recording of a $17.0 million reserve associated with various government inquiries and litigations. The decrease in cash provided by operating activities is due primarily to the company's strategic purchasing program and an increase in receivables due from AmerisourceBergen under the terms of prime vendor agreement.
For the nine months, revenues were $1,371.0 million against $1,307.4 million a year ago. Operating income was $17.7 million against $41.9 million a year ago. Income before income taxes was $6.5 million against $33.8 million a year ago. Net income was $3.6 million or $0.12 per basic and diluted share against $14.5 million or $0.48 per diluted share a year ago. Net cash used in operating activities was $2.4 million against net cash provided by operating activities of $152.0 million a year ago. Purchase of equipment and leasehold improvements was $19.0 million against $20.9 million a year ago. Adjusted EBITDA was $93.3 million against $102.2 million a year ago. Adjusted diluted earnings per share were $1.22 against $1.39 a year ago. The increase in revenue was the result of the fourth quarter 2013 and 2014 acquisitions and inflation on brand drugs partially offset by the loss of large customer effective December 31, 2013. Net income was adversely impacted by settlement, litigation and other related charges in the amount of $28.9 million and $17.4 million for the nine months ended September 30, 2014 and September 30, 2013, respectively. In addition, during the third quarter of 2014 the company refinanced its debt resulting in a loss on extinguishment of debt of $4.3 million. The decrease in cash provided by operating activities is due primarily to the company's strategic purchasing program, an increase in receivables due from AmerisourceBergen under the terms of prime vendor agreement and a reduction in accounts payable.
The company raised its full year 2014 guidance metrics. For the full year 2014, the company now expects revenue in the range of $1.850 billion to $1.875 billion from $1.760 billion to $1.800 billion, adjusted diluted earnings per share in the range of $1.62 to $1.64 from $1.58 to $1.62, adjusted EBITDA in the range of $128.1 million to $129.1 million from $123.2 million to $126.0 million. 2014 guidance does not include the effect of any future 2014 acquisitions.
PharMerica Corporation Presents at Credit Suisse Annual Healthcare Conference, Nov-11-2014 01:30 PM
Oct 20 14
PharMerica Corporation Presents at Credit Suisse Annual Healthcare Conference, Nov-11-2014 01:30 PM. Venue: The Biltmore, 2400 E Missouri Ave, Phoenix, AZ 85016, United States. Speakers: David W. Froesel, Chief Financial Officer, Executive Vice President and Treasurer.
PharMerica Corporation to Report Q3, 2014 Results on Nov 06, 2014
Oct 13 14
PharMerica Corporation announced that they will report Q3, 2014 results at 10:00 AM, US Eastern Standard Time on Nov 06, 2014
PharMerica Corporation, Q3 2014 Earnings Call, Nov 06, 2014
Oct 13 14
PharMerica Corporation, Q3 2014 Earnings Call, Nov 06, 2014