PharMerica first quarter net income increases to $5.6 million

PharMerica Corporation (NYSE: PMC), a national provider of institutional pharmacy and hospital pharmacy management services, today reported its financial results for the first quarter of 2012.    

Commenting on the Company's results, Gregory S. Weishar, PharMerica Corporation's Chief Executive Officer, said, "We are pleased to announce another strong quarter, with solid financial and operational performance. Adjusted EBITDA and adjusted earnings per share increased 30% and 50%, respectively, versus the first quarter of 2011. We also saw improvement in cash flow and growth in EBITDA margins. From an operational viewpoint, we improved bed retention, and customer service levels are now better than at any time in the Company's history. We are dispensing generics at historic levels as part of our commitment to provide customers with cost-effective pharmacy solutions to meet their needs of cost containment. Clearly, we are encouraged by the progress on the service side of the business and expect this progress to continue.

"We continue to focus on improving shareholder value. We have reaffirmed guidance, and with continued financial and operational progress, we anticipate shareholder value to increase over the coming quarters."

The results for the first quarter are set forth below:

• Key Comparisons of First Quarters Ended March 31, 2012 and 2011:
• Net income for the first quarter of 2012 was $5.6 million, or $0.19 per diluted common share, compared with $3.3 million, or $0.11 per diluted common share, for the same period in 2011. Adjusted earnings per diluted common share were $0.30 in 2012 compared with $0.20 per diluted common share in 2011, an increase of 50%.
• Adjusted EBITDA for the first quarter of 2012 was $25.0 million compared with $19.2 million in the first quarter of 2011, an increase of 30%.
• Gross profit for the first quarter of 2012 was $72.6 million, or 14.6% of revenue, compared with $66.1 million, or 12.4% of revenue, in the first quarter of 2011. Gross profit expanded as the generic dispensing rate increased 170 basis points to 78.8% in the first quarter of 2012 compared with 77.1% in the first quarter of 2011.
• Revenues for the first quarter of 2012 were $498.9 million compared with $535.1 million for the first quarter of 2011, a decrease of 6.8%, primarily driven by weaker volumes and increased dispensing of high margin generics.
• Cash flows provided by operating activities were $19.9 million compared with $5.4 million in the first quarter of 2011.
• The Company maintained its 2012 guidance.