Financial Analysis And Projections During The Fiscal Year Ending

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Financial analysis and projections During the fiscal year ending Dec. 31, 2015, Pharmerica had revenue of $2,029 million a 7.1% increase from $1.895 million in 2014. However, the cost of revenue also increased by 8.9% to $1,693 million. The revenue growth rate was 7.8% in fiscal year 2014 and -4.1% in 2013; the change in cost of revenue was 8.7% and -6.6%. The gross profit of Pharmerica in fiscal year 2015 was $335 million (15.6% of revenue), which resulted in the net income of $35 million (the net margin of 0.8%). There was a number of reasons for the dip in revenue growth in 2013, due to lower contracted customer accounts in the institutional pharmacy segment and the cutbacks in state and federal reimbursement payments. Pharmerica anticipates an increase in revenue in the range of $2.125 billion to $2.150 billion in 2016, however, $2,150 billion estimate was used which would be a percentage increase of 5.9% from 2015. The rate of revenue has decreased each year since 2014 but net income has increased. Pharmerica anticipates higher revenue in 2016 due to the increase in prescription volume and the improvement of their generic drug dispensing rate. Table 1 shows the 64% drop in net income in 2014 as expenses related to litigation, settlement, selling operations, and the acquisition of OncoMed Specialty cut into the bottom line. However, revenue recovered and will continue to progress in the diversification program and continuing to pursue attractive acquisitions that drive

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