Pink Sheet is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

BERGEN SHOWS DOUBLE-DIGIT FIRST QUARTER SALES GROWTH BUT PROFITS ARE OFF 53%; REVCO FIRST QUARTER NET EARNINGS JUMP 94%, BUYOUT IS APPROVED

Executive Summary

Bergen Brunswig reported an 11% jump in first quarter sales. For the three months ended Nov. 30, volume was $846 mil., compared to $760 mil. for the same 1985 period. The wholesaler's n et earnings, however, plummeted 53% during the period, to $2.9 mil. from $6.2 mil. the previous year. The results appear to reflect Bergen's aggressive acquisition activity during the last two years when the wholesaler acquired six regional distribution companies with total sales of $853 mil. "Consolidation of facilities and integration of recent acquisitions in the drug and health care segment are ahead of schedule, contributing to lower operating expenses and interest expense reduction," Chairman Emil Martini noted. Revco reported a 94.3% jump in profits for the 12 weeks ended Nov. 15, from $5.5 mil. to $10.8 mil. Volume was up 7.6% to $647.2 mil. during the period. The chain's 24-week volume through Nov. 15 was $1.3 bil., up 7.4% from $1.2 bil. in 1985, while net earnings were up nearly 16%, from $14.8 mil. to $17.1 mil. Revco also said that its proposed $1.3 bil., or $38.50 a share leveraged buyout offer has been approved by 75% of its shareholders. The chain is being taken private by Anac Holding Corp., an investor group that includes Chairman Sidney Dworkin, President William Edwards and 33 other members of current Revco management. Chart omitted.
Advertisement
Advertisement
UsernamePublicRestriction

Register

PS011208

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel