PharMerica Backs FY13 Outlook; Sees FY14 Profit In Line With View - Quick Facts

(RTTNews) - PharMerica Corp. (PMC), a national provider of institutional, specialty home infusion, and oncology pharmacy services, reaffirmed the full year 2013 guidance provided in November 2013 and announced preliminary full year 2014 guidance.

In November, the company had increased its full year 2013 adjusted earnings per share guidance to a range of $1.71 to $1.76 from the prior estimate of $1.55 to $1.60 per share. The company also increased full year 2013 revenues outlook to a range of $1.700 billion - $1.725 billion from the previous outlook of $1.625 billion to $1.675 billion. Analysts polled by Thomson Reuters expect the company to report earnings of $1.79 per share and revenues of $1.73 billion for fiscal 2013. Analysts' estimates typically exclude special items.

For the full year 2014, the company preliminarily expects that adjusted earnings per share will be in the range of $1.35 to $1.50, and revenue of $1.67 billion to $1.72 billion. Street currently is looking for fiscal year 2014 earnings of $1.47 per share on annual revenues of $1.52 billion.

The 2014 revenue guidance includes 100 percent of expected Onco360 results of approximately $170 million and 2014 adjusted earnings per share guidance includes 37.5 percent of Onco360's results.

The company noted that its preliminary 2014 guidance reflects the impact of its recently announced investment in Onco360 but does not include the effect of any potential 2014 acquisition activity.

PharMerica targets acquisitions that generate at least $100 million of annualized sales, in the aggregate, in each of 2014 and 2015.

Greg Weishar, PharMerica Corporation's Chief Executive Officer, said, "2013 was a strong year for PharMerica, and we expect the organic bed growth to continue in 2014. Fiscal 2014 will be a transitional year for the Company, with significant potential upside in 2015 to come from accretive external growth opportunities. We are confident that our 2015 financial performance will be in line with or better than the Company's 2013 financial results due to the strong tailwinds and anticipated acquisitions. We look forward to delivering strong financial performance and shareholder value in 2015 and beyond."

The Company noted that its restructuring program will generate approximately $50 million of savings, on an annualized basis, when fully implemented in the fourth quarter of 2014. These savings will occur primarily in the first half of 2014.

The Company expects to incur approximately $4 million in restructuring charges, primarily related to severance and other one-time expenses. The Company initially recorded some of this restructuring expense in the third and fourth quarters of 2013, and the remainder will be recorded in 2014.

Separately, PharMerica, announced that on December 31, 2013 it completed the all-cash acquisition of BGS Pharmacy Partners, Inc. Although financial terms of the transaction were not disclosed, the Company expects the acquisition to be accretive to earnings in 2014.