PharMerica Provides Preliminary 2014 Guidance

Reaffirms Full Year 2013 Guidance

Business Improvement Initiatives, Favorable Trends and Strategic Acquisitions Expected to Drive Long-Term Growth and Shareholder Value Creation

Provides Update on Restructuring Efforts to Reduce Costs and Enhance Profitability; Expects to Realize $50 Million of Annualized Savings

Company to Host Conference Call and Webcast Today, January 10, 2014 at 8:30 am ET

LOUISVILLE, Ky.--()--PharMerica Corporation (NYSE:PMC), a national provider of institutional, specialty home infusion, and oncology pharmacy services, today reaffirmed the full year 2013 guidance provided on November 5, 2013 and announced preliminary full year 2014 guidance.

For the full year 2014, the Company preliminarily expects:

  • Revenue in the range of $1.67 billion to $1.72 billion
  • Adjusted diluted earnings per share in the range of $1.35 to $1.501

The Company notes that its preliminary 2014 guidance reflects the impact of the Company’s recently announced investment in Onco360 but does not include the effect of any potential 2014 acquisition activity. PharMerica is targeting 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.”

PharMerica believes a number of factors position the Company to build an even stronger growth profile and create meaningful value for shareholders:

  • Significant opportunity for acquisitions;
  • Strategic investment in Onco360 to expand PharMerica’s presence in the rapidly growing oncology market;
  • Partnership with Innovatix to advance PharMerica’s position in the home infusion and specialty market;
  • Favorable demographic trends including an aging population;
  • Improving sales productivity;
  • Increasing number of brand-to-generic conversions;
  • Strong brand drug price inflation;
  • Lower cost of goods driven by increasing volumes of generic purchased directly from manufacturers;
  • Other supply chain initiatives that drive savings; and
  • Continued growth of Amerita and the specialty home infusion segment.

PharMerica also today provided an update on its ongoing restructuring efforts. The Company has taken steps to right size its cost structure and will continue to adjust its workforce and facility plans to reflect anticipated business needs.

Mr. Weishar added, “We continue to take actions to optimize operational efficiency while ensuring that the Company remains well-positioned to serve our clients and achieve sustainable, long-term growth.”

The Company’s 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.

Conference Call

The Company will host a conference call today, January 10, 2014 at 8:30am ET to discuss the preliminary 2014 guidance and ongoing restructuring efforts. Individuals wishing to participate in the conference call should call (866) 515-2910 or (617) 399-5124, passcode 28918065. For those unable to join the call, a replay will be available through January 17, 2014 by dialing (888) 286-8010 or (617) 801-6888, pass code 21486507. The call will also broadcast live over the internet and can be accessed on the “For Investors” tab of the Company’s website, www.pharmerica.com, under “Webcasts and Presentations.”

PharMerica to Present at J.P. Morgan Healthcare Conference

In addition, Mr. Weishar will be presenting at the 32nd Annual J.P. Morgan Healthcare Conference on January 16, 2014 at 5:00 pm ET, and will provide additional detail on the Company’s outlook and ongoing cost savings initiatives.

The Company intends to announce its fourth quarter and full year 2013 results in late February. At that time, PharMerica expects to provide additional detail regarding its 2014 guidance, including anticipated cash flow from operations.

About PharMerica

PharMerica Corporation is a leading institutional pharmacy services company that services healthcare facilities in the United States, provides pharmacy management services to hospitals and specialty infusion services to patients outside a hospital setting, and offers the only national oncology pharmacy in the U.S. PharMerica operates 95 institutional pharmacies and 12 specialty infusion centers in 45 states. PharMerica’s customers are institutional healthcare providers, such as skilled nursing facilities, nursing centers, assisted living facilities, hospitals, individuals receiving in-home care and other long-term alternative care providers.

Forward-looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company’s current estimates, expectations and projections about its future results, performance, prospects and opportunities. Forward-looking statements include, among other matters, the information concerning the Company’s “guidance” and possible future results of operations, the strength of the Company’s financial and operational performance during 2013, 2014 and 2015, the Company’s ability to identify and consummate future acquisitions, the Company’s ability to deliver outstanding value to its shareholders, the Company's ability to optimize operational efficiencies, the Company's ability to achieve anticipated cost savings, and the Company’s ability to achieve organic growth. Forward-looking statements include statements that are not historical facts and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “plan,” “may,” “should,” “will,” “would,” “project” and similar expressions. These forward-looking statements are based upon information currently available to us and are subject to a number of risks, uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Important factors that could cause the Company’s actual results to differ materially from the results referred to in the forward-looking statements we make in this press release include the adequacy of our litigation-related reserves and those included in the Risk Factors section set forth in the Company’s Annual Report on Form 10-K filed with the SEC and in other reports, including Quarterly Reports on Form 10-Q filed with the SEC by the Company.

You are cautioned not to place undue reliance on any forward-looking statements, all of which speak only as of the date of this press release. Except as required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. All subsequent written and oral forward-looking statements attributable to us or any person acting on the Company’s behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this press release and in the Risk Factors section set forth in the Company’s Annual Report on Form 10-K filed with the SEC and in other reports filed with the SEC by the Company.

1 2014 revenue guidance includes 100 percent of expected Onco360 results of approximately $170 million and 2014 adjusted diluted earnings per share guidance includes 37.5 percent of Onco360’s results.

Contacts

PharMerica Corporation
David W. Froesel, Jr., 502-627-7950
Executive Vice President, Chief Financial Officer and Treasurer

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Contacts

PharMerica Corporation
David W. Froesel, Jr., 502-627-7950
Executive Vice President, Chief Financial Officer and Treasurer