Chem RX Corp.(fka CHRXQ)

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PharMerica Reports Results for the Third Quarter of 2010 and Nine Months Ended September 30, 2010
Date : 11/04/2010 @ 5:09PM
Source : Business Wire
Stock : PharMerica Corporation (PMC)
Quote : 10.8 0.37 (3.55%) @ 10:51AM


PharMerica Reports Results for the Third Quarter of 2010 and Nine Months Ended September 30, 2010
Pharmerica Common Stock (NYSE:PMC)
Intraday Stock Chart
Today : Friday 5 November 2010
PharMerica Corporation (NYSE: PMC), a national provider of institutional pharmacy and hospital pharmacy management services, today reported the financial results of its third quarter of 2010 and nine months ended September 30, 2010, and the completion of its acquisition of Chem Rx.

PharMerica closed on the acquisition of Chem Rx today. Chem Rx was the third largest long-term care pharmacy company in the United States and conducts business in New York State, New Jersey, Pennsylvania, and Florida. Chem Rx has been in business for over 40 years and provides prescription and non-prescription drugs, intravenous medications, durable medical equipment items and surgical supplies to approximately 60,000 patients.

Commenting on the acquisition, Gregory S. Weishar, PharMerica Corporation’s Chief Executive Officer, said, “We are pleased with the acquisition of Chem Rx, which drives business scale and allows us to expand into the large New York and New Jersey markets. We believe this acquisition will create long-term shareholder value. Chem Rx brings over four decades of experience in the New York marketplace. Combined with PharMerica’s existing scale and financial stability, Chem Rx is well positioned to continue to provide excellent service to our customers. Chem Rx will operate as a separate subsidiary, and we look forward to partnering with Jerry Silva and his management team.

“With regards to this quarter’s results, gross profit margins showed signs of stabilization, demonstrating progress on management initiatives aimed at improving profitability and service levels. Cash flow continues to be strong. Although we see challenges going forward, we are confident we can manage through the ongoing industry margin and competitive pressures and remain bullish on the long-term strength of the business.”

During the quarter, the Company repurchased $10.5 million of its common stock pursuant to the stock purchase program previously announced by the Company. There remains $14.5 million authorized under the program.

The 2010 updated guidance reflects the actual results through September 30, 2010, with the inclusion of Chem Rx from the date of acquisition through December 31, 2010. The Company has increased revenues to a range of $1,839.0 million to $1,855.0 million from $1,765.0 million to $1,810.0 million. In addition, both Adjusted EBITDA and Adjusted Earnings per diluted share reflect a narrowing of the range. Adjusted EBITDA’s range changed to $75.0 million to $78.2 million from $73.0 million to $80.0 million. The Adjusted Earnings per diluted share range changed to $0.84 to $0.91 from $0.78 to $0.95.