Cencora, Inc.

Good morning and good afternoon, ladies and gentlemen. Welcome to this SYNCORQ Q3 earnings call. My name is Jerquita. I will be your moderator for today's call. All lines will be muted on the presentation portion of the call with the opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to your host, Bennett Murphy, Senior Vice President, Head of Investor Relations and Treasury. Bennett, Please go ahead.

Thank you. Good morning, good afternoon, and thank you all for joining us for this conference call to discuss Sancora's fiscal 2024 third quarter results. I am Bennett Murphy, Senior Vice President, Head of Investor Relations and Treasury. Joining me today are Steve Collis, Chairman, President, and CEO, Jim Cleary, Executive Vice President and CFO, and Bob Motch, Executive Vice President and COO. On today's call, we will be discussing non-GAAP financial measures. Reconciliations of these measures to GAAP are provided in today's press release, which is available on our website at investor.sencora.com. We've also posted a slide presentation to accompany today's press release on our investor website. During this conference call, we will make forward-looking statements about our business and financial expectations on adjusted non-GAAP basis, including but not limited to EPS, operating income, and income taxes. Forward-looking statements are based on management's current expectations and are subject to uncertainty and change. For discussion of key risks and assumptions, we refer you to today's press release and our SEC filings, including our most recent TEN-Q. St. Croix assumes no obligation to update any forward-looking statements, and this call cannot be rebroadcast without the express permission of the company. If you have an opportunity to ask questions after today's remarks by management, we ask that you limit your questions to one per participant in order for us to get to as many participants as possible within the hour. With that, I will turn the call over to Steve.

Thank you, Bennett. Good morning and good afternoon to everyone on the call. As I prepared for this, my 53rd and last earnings call as Sincora CEO, I look back at my prepared remarks from my first ever earnings call as CEO. On that call 13 years ago, I highlighted that it was the first time the company had eclipsed the $20 billion revenue mark for a quarter, and the company reported 66 cents in diluted earnings per share. Fast forward to today and Sincora is proudly reporting quarterly revenue of over $74 billion and adjusted diluted EPS of $3.34 representing year-over-year growth of 11% and 14% respectively. Further, we are pleased to be raising our four-year outlook as Sincora continues to execute well against our pharmaceutical-centric strategy. The healthcare landscape continues to rapidly evolve, and our strategic position as a global leader in healthcare, coupled with the agility and expertise of our teams, places us at the forefront of innovation. We continue to leverage our commercial strengths to capsulize on the opportunities presented by positive pharmaceutical trends and innovation to drive increased value for our customers, partners, and shareholders. Syncora's differentiated footprint and robust suite of services makes us a partner of choice, providing integrated solutions to support pharmaceutical commercialization and access. Our teams collaborate cross-functionally, creating a seamless process to efficiently bring new products to market, We remain differentiated in the market by our comprehensive approach, which leverages expertise developed from our position at the center of healthcare and our deep collaboration. As an example, Syncora is serving as an integrated launch partner to a biopharma company launching their products outside the US. Syncora is supporting both market access and efficient distribution to ensure providers and ultimately the patients have reliable access to the novel therapy. Partnerships like this exemplify how our holistic pharmaceutical solutions are providing value to our former partners and serve as a testament to how our diverse capabilities allow us to capture opportunity to drive innovation and access throughout the industry. Many of these innovations are increasingly complex. which creates challenges to access and opportunities for Sencora to differentiate ourselves as a partner. This quarter, we continued our Think Live trade show series by hosting a two-day cell and gene therapy conference where leaders across the biopharmaceutical and healthcare industry came together to share a range of perspectives on the developments and challenges throughout the developing market. By hosting events like this, we foster collaborative relationships and effective strategies that enable the launch of groundbreaking therapies and reduce barriers to patient access. On the provider side, just last week, we also hosted our annual ThoughtSpot Pharmacy Trade Show and Conference. In collaboration with our good neighbor pharmacy network of independent customers, Our ThoughtSpot conference provides thousands of community pharmacists with the opportunity to connect with peers, attend educational sessions on the latest development and technologies, and celebrate the positive impact community pharmacies have as trusted healthcare providers. We truly believe that by bringing our customers together, we help advance the healthcare landscape and promote a deeper collaboration across our teams. Independent pharmacies play a vital role in promoting access to healthcare in their local communities, and we are proud that Good Neighbor Pharmacy ranked number one in customer satisfaction among chain drugstore pharmacies in J.D. Power's U.S. pharmacy study for the eighth consecutive year in a row. The Good Neighbor Pharmacy network is clearly made up of leaders providing differentiated services for patients across the country. Forging deep strategic partnerships with market-leading customers is a strategic imperative and key differentiator for Sencora. Through these relationships, we better understand the challenges our customers are facing, which allows us to strengthen our services and solutions, driving mutual value and growing better together. As we work to enhance our customer experience, One area of particular focus has been evolving how we leverage innovative technology and analytics to enhance our efficiency and effectiveness. This is important for continuing to improve our day-to-day operations and also finding new and creative ways to analyze and grow their business with actionable data Sincora can harness. These strategic relationships with customers also allows us to capture areas of opportunity in rapidly advancing sectors of the market. I am particularly proud of our specialty distribution and services offering. For close to three decades, we have been a leader and innovator in this space. Importantly, we continue to make forward-thinking investments that position us to capitalize on addressing the complexities these products pose in handling and distribution, and connect us with downstream providers where we are positioned to equip practices with offerings that advance the strength of their business. As specialty continues to grow across all therapeutic areas, we are able to expand and develop the partnerships we have with customers, furthering our leading market position. Our leadership in specialty remains a key tenant of our long-term growth and strategy. We make forward-thinking investments in our infrastructure and emerging technologies to position Syncora as the best partner to address our customers' current and future needs. The value we create throughout the supply chain and for our shareholders is driven by our global team members and their commitment to our purpose. Our team members execute at the impressive level they do because of our purpose driven culture, which promotes differing perspectives and points of view. In June, we celebrated our team members that identify as a part of the LGBTQ plus community by hosting a global pride celebration and events throughout the month. In recognition of our commitment to fostering an inclusive and supportive workplace, for all our team members, we are also proud to have been recognized as the best place to work for disability inclusion by Disability IN for a second consecutive year. Our leaders are dedicated to fostering a working community and culture that celebrates and embraces our team members as the authentic self, which includes providing a safe and inclusive working environment for all. as our talents, engagement, and commitment to our purpose drives our business resiliency and long-term strategic growth. Syncora continues to efficiently adapt to industry changes, operate and draw on our business synergies, and execute across the geographies we serve, which results in our continued growth and resiliency. Our team members' diligence and passion for our purpose is inspiring and is fundamental to our success. With that, I will now hand the call over to Bob, our incoming CEO, effective October 1. Bob?