Business Context and Reporting Period
This Form 8-K was filed by AmerisourceBergen Corporation (now Cencora, Inc.) on January 9, 2014. The report serves as a Regulation FD disclosure regarding a change in the company's financial reporting methodology for fiscal 2014. It details the transition to reporting earnings per share (EPS) from continuing operations on an adjusted, Non-GAAP basis.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it outlines the components that will be excluded from the new Non-GAAP adjusted EPS calculation for fiscal 2014:
- LIFO charges and credits
- Warrant expense
- Acquisition-related expenses and intangibles amortization
- Special one-time employee severance, litigation, and other expenses
- Gains from antitrust litigation settlements
Additionally, the adjusted EPS calculation will utilize a diluted weighted average share count that excludes accounting dilution from unexercised equity warrants.
Material Changes Versus Prior Period
The primary material change is the adoption of a new Non-GAAP reporting standard for fiscal 2014. To ensure comparability, the company has provided unaudited reconciliations of GAAP to Non-GAAP measures for fiscal years 2009 through 2013 and specific quarters of fiscal 2013. Furthermore, effective October 1, 2013, the company transitioned the financial reporting of its Canadian business from the "Pharmaceutical Distribution" segment to "Other." All prior period segment data presented in the attached exhibits have been restated to reflect this reclassification.
Guidance, Outlook, and Management Commentary
Management states that it considers both GAAP and Non-GAAP measures in evaluating operating performance. The company believes the presentation of these Non-GAAP measures provides useful supplementary information and facilitates additional analysis by investors. The filing includes unaudited reconciliations (Exhibit 99.1) and adjusted segment information (Exhibit 99.2) prepared on the basis used for fiscal 2014 reporting.
Important Facts for Investor Verification
- Verify the specific dollar amounts of the excluded items (LIFO, warrant expense, severance, etc.) in the attached Exhibit 99.1 to understand the magnitude of the adjustment between GAAP and Non-GAAP EPS.
- Review Exhibit 99.2 to analyze the impact of reclassifying the Canadian business from Pharmaceutical Distribution to Other on segment performance trends.
- Confirm the impact of excluding warrant-related dilution on the weighted average share count used for EPS calculations.
- Note that the specific financial results for fiscal 2014 are not included in this filing; this document only establishes the reporting framework.