PharMerica CORP

CIK:0001388195|SEC Filings

CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) [Abstract]
Revenues	$ 595.1	$ 512.6	$ 1,753.9	$ 1,556.7
Cost of goods sold	505.8	434.1	1,487.2	1,314.4
Gross profit	89.3	78.5	266.7	242.3
Selling, general and administrative expenses	62.2	53.1	187.4	165.8
Amortization expense	10.0	8.3	29.0	24.7
Merger, acquisition, integration costs and other charges	5.6	5.3	12.7	14.1
Settlement, litigation and other related charges	1.2	(0.8)	6.5	7.2
Restructuring and impairment charges	0.1	0.6	0.1	3.1
Operating income	10.2	12.0	31.0	27.4
Interest expense, net	4.1	3.0	11.9	9.3
Income before income taxes	6.1	9.0	19.1	18.1
Provision for income taxes	2.9	1.7	7.7	4.2
Net income	$ 3.2	$ 7.3	$ 11.4	$ 13.9
Earnings per common share:
Basic (in dollars per share)	$ 0.10	$ 0.24	$ 0.37	$ 0.45
Diluted (in dollars per share)	$ 0.10	$ 0.23	$ 0.36	$ 0.44
Shares used in computing earnings per common share:
Basic (in shares)	31,118,756	30,754,253	31,019,184	30,670,487
Diluted (in shares)	31,401,624	31,071,290	31,355,196	31,040,849

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Cash flows provided by (used in) operating activities:
Net income	$ 3.2	$ 7.3	$ 11.4	$ 13.9
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	6.6	6.2	20.3	17.2
Amortization	10.0	8.3	29.0	24.7
Stock-based compensation and deferred compensation	2.2	2.2	7.2	6.3
Amortization of deferred financing fees	0.2	0.1	0.6	0.4
Deferred income taxes	1.3	0.2	8.5	8.0
Other	0.1	0.1	0.0	0.2
Change in operating assets and liabilities:
Accounts receivable, net	(2.6)	(7.4)	(6.7)	(14.4)
Inventory	3.5	43.9	81.0	36.5
Prepaids and other assets	(3.9)	(0.2)	4.6	(0.7)
Accounts payable	(7.4)	(24.5)	(15.8)	2.3
Salaries, wages and other compensation	3.2	0.2	2.1	(2.5)
Other accrued and long-term liabilities	0.0	(4.1)	(9.0)	(13.4)
Change in income taxes (receivable)	1.6	6.9	(0.4)	3.1
Excess tax benefit from stock-based compensation	0.0	(0.1)	(0.1)	(1.3)
Net cash provided by operating activities	18.0	39.1	132.7	80.3
Cash flows provided by (used in) investing activities:
Purchase of equipment and leasehold improvements	(7.5)	(13.0)	(23.4)	(26.3)
Acquisitions, net of cash acquired	(43.3)	(24.4)	(94.0)	(31.3)
Cash proceeds from sale of assets	0.0	0.1	0.0	0.1
Net cash used in investing activities	(50.8)	(37.3)	(117.4)	(57.5)
Cash flows provided by (used in) financing activities:
Repayments of long-term debt	(3.8)	(2.8)	(11.3)	(8.4)
Net activity of long-term revolving credit facility	31.1	(19.5)	(1.9)	(27.5)
Payment of debt issuance costs	(0.1)	0.0	(0.1)	0.0
Issuance of common stock	0.0	0.1	3.0	0.2
Treasury stock, for employee taxes on stock awards	0.0	(0.3)	(2.2)	(3.3)
Repayments of capital lease obligations	(0.1)	(0.2)	(0.4)	(0.4)
Net cash (used in) provided by financing activities	27.1	(22.7)	(12.9)	(39.4)
Change in cash and cash equivalents	(5.7)	(20.9)	2.4	(16.6)
Cash and cash equivalents at beginning of period	13.5	27.4	5.4	23.1
Cash and cash equivalents at end of period	7.8	6.5	7.8	6.5
Supplemental information:
Cash paid for interest	3.9	2.7	11.3	7.9
Cash (received) paid for taxes	$ 0.4	$ (5.0)	$ 0.2	$ (4.8)

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 7.8	$ 5.4
Accounts receivable, net	249.2	235.4
Inventory	139.2	214.7
Income taxes receivable	5.1	4.7
Prepaids and other assets	54.0	56.5
Total current assets	455.3	516.7
Equipment and leasehold improvements	273.4	250.9
Accumulated depreciation	(184.1)	(165.1)
Total equipment and leasehold improvements	89.3	85.8
Goodwill	449.3	392.3
Intangible assets, net	193.4	187.6
Deferred tax assets, net	1.8	9.2
Other long-term assets (See Note 5)	79.3	81.4
Total assets	1,268.4	1,273.0
Current liabilities:
Accounts payable	97.1	107.1
Salaries, wages and other compensation	34.8	32.5
Current portion of long-term debt	15.4	15.6
Other accrued liabilities	29.0	27.1
Total current liabilities	176.3	182.3
Long-term debt	444.8	457.8
Other long-term liabilities	85.7	88.7
Commitments and contingencies (See Note 5)
Stockholders' equity:
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized and no shares issued, December 31, 2016 and September 30, 2017	0.0	0.0
Common stock, $0.01 par value per share; 175,000,000 shares authorized; 33,698,269 and 34,130,736 shares issued as of December 31, 2016 and September 30, 2017, respectively	0.3	0.3
Capital in excess of par value	419.3	411.1
Retained earnings	185.1	173.7
Treasury stock at cost, 2,916,906 and 3,011,789 shares at December 31, 2016 and September 30, 2017, respectively	(43.1)	(40.9)
Total stockholders' equity	561.6	544.2
Total liabilities and stockholders' equity	$ 1,268.4	$ 1,273.0