PharMerica Reports Second Quarter 2017 Results

Published: Aug 02, 2017

LOUISVILLE, Ky.--(BUSINESS WIRE)--PharMerica Corporation (NYSE:PMC), a national provider of institutional, specialty home infusion, hospital and oncology pharmacy services, today reported its financial results for the second quarter ended June 30, 2017.

2Q’17 Results

Comparison to
2Q’16

Comparison to

1Q’17

Revenue $592.0 million Increase of 13.9% Increase of 4.4%
Gross profit $89.6 million Increase of 9.5% Increase of 1.9%
Selling, general and administrative $61.8 million Increase of 11.0% Decrease of 2.7%
Net income $4.7 million Increase of 88.0% Increase of 34.3%
Diluted earnings per common share $0.15 Increase of 87.5% Increase of 36.4%
Adjusted EBITDA $34.6 million Increase of 8.8% Increase of 10.5%
Adjusted diluted earnings per share $0.47 No change Increase of 11.9%

Second Quarter 2017 Results

The results for the second quarter of 2017 are set forth below:

  • Key Comparisons of Second Quarters Ended June 30, 2017 and 2016:
    • Revenues for the second quarter of 2017 were $592.0 million compared with $519.6 million for the second quarter of 2016; an increase of 13.9%. The increase in revenues of $72.4 million was driven by the 2016 and 2017 acquisitions, organic growth in the Company’s diversified businesses, partially offset by the loss of volume in the long-term care pharmacy business.
    • Gross profit for the second quarter of 2017 was $89.6 million compared with $81.8 million in the second quarter of 2016; an increase of 9.5%. The increase in gross profit was due to improved purchasing strategies along with higher gross profit associated with the Company’s diversified businesses due to organic growth and recent acquisitions, partially offset by lower prescription volume in the long-term care pharmacy business.
    • Selling, general and administrative expenses were $61.8 million or 10.4% of revenues for the three months ended June 30, 2017 compared to $55.7 million or 10.7% of revenues for the three months ended June 30, 2016.
    • Net income for the second quarter of 2017 was $4.7 million, or $0.15 diluted earnings per share, compared to $2.5 million, or $0.08 diluted earnings per share, for the same period in 2016. Adjusted diluted earnings per share was $0.47 in the second quarter of 2017 the same as in the second quarter of 2016.
    • Adjusted EBITDA for the second quarter of 2017 was $34.6 million compared with $31.8 million in the second quarter of 2016; an increase of 8.8%.
    • Cash flows provided by operating activities for the second quarter of 2017 were $42.5 million compared with cash flows used in operating activities of $24.1 million in the second quarter of 2016. The increase in cash from operating activities is due primarily to a decrease in inventory levels.
  • Key Comparisons of the Six Months Ended June 30, 2017 and 2016:
    • Revenues for the six months ended June 30, 2017 were $1,158.8 million compared with $1,044.1 million for the six months ended June 30, 2016; an increase of 11.0%. The increase was driven by the 2016 and 2017 acquisitions, organic growth in the Company’s diversified businesses and branded drug inflation partially offset by a reduction in prescription volume in the long-term care pharmacy business.
    • Gross profit for the six months ended June 30, 2017 was $177.4 million compared with $163.8 million for the six months ended June 30, 2016; an increase of 8.3%. The increase in gross profit was due to improved purchasing strategies along with higher gross profit associated with the Company’s diversified businesses as a result of organic growth and recent acquisitions partially offset by lower prescription volume in the long-term care pharmacy business.
    • Selling, general and administrative expenses were $125.2 million or 10.8% of revenues for the six months ended June 30, 2017, compared to $112.7 million or 10.8% of revenues for the six months ended June 30, 2016.
    • Net income for the six months ended June 30, 2017 was $8.2 million, or $0.26 diluted earnings per share, compared to $6.6 million, or $0.21 diluted earnings per share, for the same period in 2016. Adjusted diluted earnings per share was $0.89 for the six months ended June 30, 2017 compared to $0.92 for the six months ended June 30, 2016.
    • Adjusted EBITDA for the six months ended June 30, 2017 was $65.9 million compared with $62.1 million for the six months ended June 30, 2016; an increase of 6.1%.
    • Cash flows provided by operating activities for the six months ended June 30, 2017 were $114.7 million compared with $41.2 million for the six months ended June 30, 2016. The increase in cash from operating activities was due primarily to a decrease in inventory levels.

Acquisition by KKR and Walgreens Boots Alliance, Inc.

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