BBC seems way overdone and looks good for a bounce tomorrow.
(1) Mr. Roden concluded, ''Our first half of fiscal 1999 has produced spectacular results. We have consistently accelerated our sales and net earnings growth. We reconfirm our confidence in consensus estimates for fiscal 1999 and that Bergen's internal models have adequately compensated for any impact from Medicare's Prospective Payment System (PPS), which is a factor in only 1% of Bergen's total revenues. Additionally, PharMerica has recently renegotiated agreements in line with our expectations; and they signed in excess of 20,000 new beds in the March quarter, more than they did for all of 1998. The bottom line is that we are bullish on our fundamentals, the added strength our acquisition strategy gives us, and the growth opportunities our chosen markets present."
(2) ''Bergen's balance sheet and financial ratios continue to be very strong,'' Dimick concluded. ''Our return on committed capital reached 28%, up from 25% in our second quarter last year and book value per share increased 15% to $7.68 at the end of March compared to March last year. Additionally, last month we filed an S-3 Registration Statement with the SEC, which is now effective, covering up to $300 million of securities. Proceeds from any sale of these securities will be used for general purposes, including the refunding of existing debt.'' |
