Top-Line Growth Driven by Continued Solid Demand in Patient Direct and Medical Distribution
Total Debt Reduction of Nearly $200 Million in the Third Quarter
RICHMOND, Va.--(BUSINESS WIRE)--Owens & Minor, Inc. (NYSE: OMI) today reported financial results for the third quarter ended September 30, 2024.
Key Highlights:
- Consolidated revenue of $2.7 billion in the third quarter, representing year-over-year growth of 5%
- GAAP Net loss of $(13) million or $(0.17) per share, and adjusted earnings per share of $0.42 in the third quarter
- Adjusted EBITDA of $142 million in the third quarter, representing year-over-year growth of 5%
- $198 million in total debt reduction in the third quarter
“Our third quarter results demonstrated our ability to deliver on our commitments both near-term as well as on our strategic initiatives. Our Patient Direct segment continues to perform well in the growing home-based care space while we continue investing to support long-term profitable growth. In our Products & Healthcare Services segment, we continue to see solid top-line results, especially within our Medical Distribution division supported by recent wins and deepened relationships with our existing customers,” said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.
Pesicka concluded, “Looking ahead we are confident in our ability to show good sequential growth and cash flow from the third to fourth quarter which positions us well as we enter 2025. Each of the segments should benefit from seasonality and investments of the last several quarters as we finish 2024 and look to the future.”
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Financial Summary (1) |
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| YTD |
| YTD | ||
($ in millions, except per share data) |
| 3Q24 |
| 3Q23 |
| 2024 |
| 2023 | ||||
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Revenue |
| $ | 2,721 |
| $ | 2,592 |
| $ | 8,005 |
| $ | 7,678 |
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Operating income, GAAP |
| $ | 24.2 |
| $ | 23.8 |
| $ | 54.2 |
| $ | 44.5 |
Adj. Operating Income, Non-GAAP |
| $ | 84.2 |
| $ | 84.2 |
| $ | 217.8 |
| $ | 193.9 |
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Net loss, GAAP |
| $ | (12.8) |
| $ | (6.4) |
| $ | (66.6) |
| $ | (59.1) |
Adj. Net Income, Non-GAAP |
| $ | 33.2 |
| $ | 34.1 |
| $ | 76.2 |
| $ | 51.9 |
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Adj. EBITDA, Non-GAAP |
| $ | 141.8 |
| $ | 134.7 |
| $ | 384.9 |
| $ | 356.2 |
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Net loss per common share, GAAP |
| $ | (0.17) |
| $ | (0.08) |
| $ | (0.87) |
| $ | (0.78) |
Adj. Net Income per share, Non-GAAP |
| $ | 0.42 |
| $ | 0.44 |
| $ | 0.97 |
| $ | 0.67 |
(1) Reconciliations of the differences between the non-GAAP financial measures presented in this release and their most directly comparable GAAP financial measures are included in the tables below.
Results and Business Highlights
- Consolidated revenue of $2.7 billion in the third quarter of 2024, an increase of 5% compared to the third quarter of 2023
- Patient Direct revenue of $687 million, up 6% compared to the third quarter of 2023, driven by strength in a number of categories led by diabetes and sleep supplies
- Products & Healthcare Services revenue of $2.0 billion, up 5% compared to the third quarter of 2023, driven primarily by strong same store sales in the Medical Distribution division along with one additional sales day
- Third quarter 2024 operating income of $24 million and Adjusted Operating Income of $84 million
- Sequentially, third quarter 2024 GAAP operating income improved by $4 million and Adjusted Operating Income increased by $8 million
- GAAP Net loss of $(13) million and Adjusted Net Income of $33 million in the third quarter of 2024
- Adjusted EBITDA of $142 million in the third quarter, representing year-over-year growth of 5%
- Reduced total debt by $198 million including full redemption of the 2024 senior notes
2024 Financial Outlook
The Company’s recently revised financial guidance; summarized below:
- Revenue for 2024 to be in a range of $10.6 billion to $10.8 billion
- Adjusted EBITDA for 2024 to be in a range of $540 million to $550 million
- Adjusted EPS for 2024 to be in a range of $1.45 to $1.55
The Company’s outlook for 2024 contains assumptions, including current expectations regarding the impact of general economic conditions, including inflation, and the continuation of pressure on pricing and demand in our Products & Healthcare Services segment. Key assumptions supporting the Company’s 2024 financial guidance include:
- Gross margin rate of 20.5% to 21.0%
- Interest expense of $142 to $144 million
- Adjusted effective tax rate of 27.5% to 28.5%
- Diluted weighted average shares of ~78.5 million
- Capital expenditures of $225 to $235 million
- Stable commodity prices
- FX rates as of 12/31/2023
Although the Company does provide guidance for adjusted EBITDA and adjusted EPS (which are non-GAAP financial measures), it is not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. Such elements include, but are not limited to, restructuring and acquisition charges, which could have a significant and unpredictable impact on our GAAP results. As a result, no GAAP guidance or reconciliation of the Company’s adjusted EBITDA guidance or adjusted EPS guidance is provided. The outlook is based on certain assumptions that are subject to the risk factors discussed in the Company’s filings with the SEC.
Investor Conference Call for Third Quarter 2024 Financial Results
Owens & Minor executives will host a conference call for investors and analysts on Monday, November 4, 2024, at 8:30 a.m. EDT. Participants may access the call via the toll-free dial-in number at 1-888-300-2035, or the toll dial-in number at 1-646-517-7437. The conference ID access code is 1058917.
All interested stakeholders are encouraged to access the simultaneous live webcast by visiting the investor relations page of the Owens & Minor website available at investors.owens-minor.com/events-and-presentations/. A replay of the webcast can be accessed following the presentation at the link provided above.
Safe Harbor
This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the SEC’s Fair Disclosure Regulation. This release contains certain ''forward-looking’’ statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the statements in this release regarding our future prospects and performance, including our expectations with respect to our 2024 financial performance, our Operating Model Realignment Program and other cost-saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including the results of our Operating Model Realignment Program and our ability to address macro and market conditions. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Investors should refer to Owens & Minor’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024, including the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause the Company’s actual results to differ materially from its current estimates. These filings are available at www.owens-minor.com. Given these risks and uncertainties, Owens & Minor can give no assurance that any forward-looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them. Owens & Minor specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
About Owens & Minor
Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company providing essential products and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria®, Byram® and HALYARD*, have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care™. For more information about Owens & Minor and our affiliated brands, visit owens-minor.com or follow us on LinkedIn and Instagram.
*Registered Trademark or Trademark of O&M Halyard or its affiliates.
Owens & Minor, Inc. | ||||||
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| Three Months Ended September 30, | ||||
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| 2024 |
| 2023 | ||
Net revenue |
| $ | 2,721,125 |
| $ | 2,591,742 |
Cost of goods sold |
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| 2,161,419 |
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| 2,053,244 |
Gross profit |
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| 559,706 |
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| 538,498 |
Distribution, selling and administrative expenses |
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| 469,798 |
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| 452,583 |
Acquisition-related charges and intangible amortization |
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| 21,097 |
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| 30,217 |
Exit and realignment charges, net |
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| 28,880 |
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| 30,180 |
Other operating expense, net |
|
| 15,727 |
|
| 1,677 |
Operating income |
|
| 24,204 |
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| 23,841 |
Interest expense, net |
|
| 36,554 |
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| 38,127 |
Other expense (income), net |
|
| 1,438 |
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| (3,302) |
Loss before income taxes |
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| (13,788) |
|
| (10,984) |
Income tax benefit |
|
| (1,018) |
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| (4,558) |
Net loss |
| $ | (12,770) |
| $ | (6,426) |
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Net loss per common share: |
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Basic |
| $ | (0.17) |
| $ | (0.08) |
Diluted |
| $ | (0.17) |
| $ | (0.08) |
Owens & Minor, Inc. | ||||||
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| Nine Months Ended September 30, | ||||
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| 2024 |
| 2023 | ||
Net revenue |
| $ | 8,004,810 |
| $ | 7,677,817 |
Cost of goods sold |
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| 6,365,421 |
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| 6,122,579 |
Gross profit |
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| 1,639,389 |
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| 1,555,238 |
Distribution, selling and administrative expenses |
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| 1,416,724 |
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| 1,356,334 |
Acquisition-related charges and intangible amortization |
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| 61,395 |
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| 74,609 |
Exit and realignment charges, net |
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| 85,530 |
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| 74,817 |
Other operating expense, net |
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| 21,542 |
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| 4,991 |
Operating income |
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| 54,198 |
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| 44,487 |
Interest expense, net |
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| 108,108 |
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| 121,053 |
Other expense (income), net |
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| 3,796 |
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| (843) |
Loss before income taxes |
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| (57,706) |
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| (75,723) |
Income tax provision (benefit) |
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| 8,864 |
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| (16,638) |
Net loss |
| $ | (66,570) |
| $ | (59,085) |
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Net loss per common share: |
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Basic |
| $ | (0.87) |
| $ | (0.78) |
Diluted |
| $ | (0.87) |
| $ | (0.78) |
Owens & Minor, Inc. | ||||||
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| September 30, |
| December 31, | ||
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| 2024 |
| 2023 | ||
Assets |
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Current assets |
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Cash and cash equivalents |
| $ | 45,454 |
| $ | 243,037 |
Accounts receivable, net |
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| 661,664 |
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| 598,257 |
Merchandise inventories |
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| 1,242,453 |
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| 1,110,606 |
Other current assets |
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| 166,967 |
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| 150,890 |
Total current assets |
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| 2,116,538 |
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| 2,102,790 |
Property and equipment, net |
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| 498,746 |
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| 543,972 |
Operating lease assets |
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| 357,264 |
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| 296,533 |
Goodwill |
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| 1,642,196 |
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| 1,638,846 |
Intangible assets, net |
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| 313,284 |
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| 361,835 |
Other assets, net |
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| 153,254 |
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| 149,346 |
Total assets |
| $ | 5,081,282 |
| $ | 5,093,322 |
Liabilities and equity |
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Current liabilities |
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Accounts payable |
| $ | 1,338,021 |
| $ | 1,171,882 |
Accrued payroll and related liabilities |
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| 100,002 |
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| 116,398 |
Current portion of long-term debt |
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| 42,626 |
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| 206,904 |
Other current liabilities |
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| 453,517 |
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| 396,701 |
Total current liabilities |
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| 1,934,166 |
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| 1,891,885 |
Long-term debt, excluding current portion |
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| 1,842,348 |
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| 1,890,598 |
Operating lease liabilities, excluding current portion |
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| 288,043 |
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| 222,429 |
Deferred income taxes, net |
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| 25,650 |
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| 41,652 |
Other liabilities |
|
| 116,483 |
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| 122,592 |
Total liabilities |
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| 4,206,690 |
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| 4,169,156 |
Total equity |
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| 874,592 |
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| 924,166 |
Total liabilities and equity |
| $ | 5,081,282 |
| $ | 5,093,322 |
Owens & Minor, Inc. | ||||||
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| Three Months Ended September 30, | ||||
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| 2024 |
| 2023 | ||
Operating activities: |
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Net loss |
| $ | (12,770) |
| $ | (6,426) |
Adjustments to reconcile net loss to cash provided by operating activities: |
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Depreciation and amortization |
|
| 61,614 |
|
| 73,652 |
Share-based compensation expense |
|
| 5,680 |
|
| 5,742 |
(Benefit) provision for losses on accounts receivable |
|
| (1,862) |
|
| 413 |
Loss (gain) on extinguishment of debt |
|
| 311 |
|
| (5,222) |
Deferred income tax benefit |
|
| (6,090) |
|
| (9,557) |
Changes in operating lease right-of-use assets and lease liabilities |
|
| 3,390 |
|
| 1,560 |
Gain from sales and dispositions of property and equipment |
|
| (9,806) |
|
| (7,899) |
Changes in operating assets and liabilities: |
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|
|
|
|
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Accounts receivable |
|
| 9,093 |
|
| (13,006) |
Merchandise inventories |
|
| (9,356) |
|
| 81,406 |
Accounts payable |
|
| (39,110) |
|
| (5,821) |
Net change in other assets and liabilities |
|
| 24,236 |
|
| 39,913 |
Other, net |
|
| 1,977 |
|
| 2,680 |
Cash provided by operating activities |
|
| 27,307 |
|
| 157,435 |
Investing activities: |
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Additions to property and equipment |
|
| (57,652) |
|
| (47,728) |
Additions to computer software |
|
| (3,866) |
|
| (2,860) |
Proceeds from sales of property and equipment |
|
| 17,733 |
|
| 17,916 |
Other, net |
|
| 16,596 |
|
| — |
Cash used for investing activities |
|
| (27,189) |
|
| (32,672) |
Financing activities: |
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Borrowings under amended Receivables Financing Agreement |
|
| 619,100 |
|
| 127,800 |
Repayments under amended Receivables Financing Agreement |
|
| (619,100) |
|
| (127,800) |
Repayments of debt |
|
| (199,072) |
|
| (191,888) |
Other, net |
|
| (515) |
|
| 8,893 |
Cash used for financing activities |
|
| (199,587) |
|
| (182,995) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
| 1,090 |
|
| (711) |
Net decrease in cash, cash equivalents and restricted cash |
|
| (198,379) |
|
| (58,943) |
Cash, cash equivalents and restricted cash at beginning of period |
|
| 273,469 |
|
| 309,103 |
Cash, cash equivalents and restricted cash at end of period(1) |
| $ | 75,090 |
| $ | 250,160 |
Supplemental disclosure of cash flow information: |
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Income taxes paid, net |
| $ | 2,370 |
| $ | 3,708 |
Interest paid |
| $ | 33,459 |
| $ | 22,454 |
Noncash investing activity: |
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Unpaid purchases of property and equipment and computer software at end of period |
| $ | 75,176 |
| $ | 60,870 |
| _____________________ |
(1) Restricted cash as of September 30, 2024 and June 30, 2024 was $29.6 million and $29.8 million and includes amounts held in an escrow account as required by the Centers for Medicare & Medicaid Services (CMS) in conjunction with the Bundled Payments for Care Improvement (BPCI) initiatives related to wind-down costs of Fusion5, as well as restricted cash deposits received under the Master Receivables Purchase Agreement to be remitted to a third-party financial institution. |
Owens & Minor, Inc. | ||||||
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| Nine Months Ended September 30, | ||||
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| 2024 |
| 2023 | ||
Operating activities: |
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Net loss |
| $ | (66,570) |
| $ | (59,085) |
Adjustments to reconcile net loss to cash provided by operating activities: |
|
|
|
|
|
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Depreciation and amortization |
|
| 199,588 |
|
| 216,640 |
Share-based compensation expense |
|
| 19,281 |
|
| 17,417 |
Benefit for losses on accounts receivable |
|
| (1,538) |
|
| (487) |
Loss (gain) on extinguishment of debt |
|
| 311 |
|
| (4,379) |
Deferred income tax benefit |
|
| (15,119) |
|
| (16,315) |
Changes in operating lease right-of-use assets and lease liabilities |
|
| 7,156 |
|
| (1,517) |
Gain from sales and dispositions of property and equipment |
|
| (37,682) |
|
| (26,462) |
Changes in operating assets and liabilities: |
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|
|
|
|
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Accounts receivable |
|
| (59,349) |
|
| 77,197 |
Merchandise inventories |
|
| (132,433) |
|
| 247,057 |
Accounts payable |
|
| 164,261 |
|
| 46,338 |
Net change in other assets and liabilities |
|
| 4,719 |
|
| 122,867 |
Other, net |
|
| 7,869 |
|
| 9,674 |
Cash provided by operating activities |
|
| 90,494 |
|
| 628,945 |
Investing activities: |
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|
|
|
|
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Additions to property and equipment |
|
| (148,031) |
|
| (140,478) |
Additions to computer software |
|
| (8,695) |
|
| (11,089) |
Proceeds from sales of property and equipment |
|
| 84,759 |
|
| 53,645 |
Other, net |
|
| 7,738 |
|
| (418) |
Cash used for investing activities |
|
| (64,229) |
|
| (98,340) |
Financing activities: |
|
|
|
|
|
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Borrowings under amended Receivables Financing Agreement |
|
| 1,286,400 |
|
| 476,000 |
Repayments under amended Receivables Financing Agreement |
|
| (1,286,400) |
|
| (572,000) |
Repayments of debt |
|
| (211,447) |
|
| (270,189) |
Other, net |
|
| (13,060) |
|
| 74 |
Cash used for financing activities |
|
| (224,507) |
|
| (366,115) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
| 408 |
|
| (515) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
| (197,834) |
|
| 163,975 |
Cash, cash equivalents and restricted cash at beginning of period |
|
| 272,924 |
|
| 86,185 |
Cash, cash equivalents and restricted cash at end of period(1) |
| $ | 75,090 |
| $ | 250,160 |
Supplemental disclosure of cash flow information: |
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|
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|
|
Income taxes paid (received), net |
| $ | 7,610 |
| $ | (6,798) |
Interest paid |
| $ | 104,278 |
| $ | 101,079 |
Noncash investing activity: |
|
|
|
|
|
|
Unpaid purchases of property and equipment and computer software at end of period |
| $ | 75,176 |
| $ | 60,870 |
| _____________________ |
(1) Restricted cash as of September 30, 2024 and December 31, 2023 was $29.6 million and $29.9 million and includes amounts held in an escrow account as required by the Centers for Medicare & Medicaid Services (CMS) in conjunction with the Bundled Payments for Care Improvement (BPCI) initiatives related to wind-down costs of Fusion5, as well as restricted cash deposits received under the Master Receivables Purchase Agreement to be remitted to a third-party financial institution. |
Owens & Minor, Inc. | |||||||||||
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| Three Months Ended September 30, |
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| 2024 |
| 2023 |
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| % of |
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| % of |
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| consolidated |
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| consolidated |
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| Amount |
| net revenue |
| Amount |
| net revenue |
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Net revenue: |
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Products & Healthcare Services |
| $ | 2,034,279 |
| 74.76 | % | $ | 1,943,467 |
| 74.99 | % |
Patient Direct |
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| 686,846 |
| 25.24 | % |
| 648,275 |
| 25.01 | % |
Consolidated net revenue |
| $ | 2,721,125 |
| 100.00 | % | $ | 2,591,742 |
| 100.00 | % |
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| % of segment |
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| % of segment |
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Operating income: |
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| net revenue |
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| net revenue |
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Products & Healthcare Services |
| $ | 4,233 |
| 0.21 | % | $ | 19,803 |
| 1.02 | % |
Patient Direct |
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| 79,932 |
| 11.64 | % |
| 64,435 |
| 9.94 | % |
Acquisition-related charges and intangible amortization |
|
| (21,097) |
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|
|
| (30,217) |
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|
|
Exit and realignment charges, net |
|
| (28,880) |
|
|
|
| (30,180) |
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|
|
Litigation and related charges (1) |
|
| (9,984) |
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|
|
| — |
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Consolidated operating income |
| $ | 24,204 |
|
|
| $ | 23,841 |
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Depreciation and amortization: |
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Products & Healthcare Services |
| $ | 18,382 |
|
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| $ | 20,021 |
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Patient Direct |
|
| 43,232 |
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|
|
| 53,631 |
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Consolidated depreciation and amortization |
| $ | 61,614 |
|
|
| $ | 73,652 |
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Capital expenditures: |
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|
|
|
|
|
|
|
|
|
Products & Healthcare Services |
| $ | 17,763 |
|
|
| $ | 5,023 |
|
|
|
Patient Direct |
|
| 43,755 |
|
|
|
| 45,565 |
|
|
|
Consolidated capital expenditures |
| $ | 61,518 |
|
|
| $ | 50,588 |
|
|
|
| (1) | Litigation and related charges are reported within Other operating expense, net in our Statements of Operations. Refer to footnote 3 in the GAAP/Non-GAAP Reconciliations below. | |
Owens & Minor, Inc. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended September 30, |
| ||||||||
|
| 2024 |
| 2023 |
| ||||||
|
|
|
|
| % of |
|
|
|
| % of |
|
|
|
|
|
| consolidated |
|
|
|
| consolidated |
|
|
| Amount |
| net revenue |
| Amount |
| net revenue |
| ||
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
Products & Healthcare Services |
| $ | 6,019,721 |
| 75.20 | % | $ | 5,789,679 |
| 75.41 | % |
Patient Direct |
|
| 1,985,089 |
| 24.80 | % |
| 1,888,138 |
| 24.59 | % |
Consolidated net revenue |
| $ | 8,004,810 |
| 100.00 | % | $ | 7,677,817 |
| 100.00 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| % of segment |
|
|
|
| % of segment |
|
Operating income: |
|
|
|
| net revenue |
|
|
|
| net revenue |
|
Products & Healthcare Services |
| $ | 27,187 |
| 0.45 | % | $ | 24,564 |
| 0.42 | % |
Patient Direct |
|
| 190,598 |
| 9.60 | % |
| 169,349 |
| 8.97 | % |
Acquisition-related charges and intangible amortization |
|
| (61,395) |
|
|
|
| (74,609) |
|
|
|
Exit and realignment charges, net |
|
| (85,530) |
|
|
|
| (74,817) |
|
|
|
Litigation and related charges (1) |
|
| (16,662) |
|
|
|
| — |
|
|
|
Consolidated operating income |
| $ | 54,198 |
|
|
| $ | 44,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
Products & Healthcare Services |
| $ | 60,832 |
|
|
| $ | 57,360 |
|
|
|
Patient Direct |
|
| 138,756 |
|
|
|
| 159,280 |
|
|
|
Consolidated depreciation and amortization |
| $ | 199,588 |
|
|
| $ | 216,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
Products & Healthcare Services |
| $ | 29,130 |
|
|
| $ | 17,957 |
|
|
|
Patient Direct |
|
| 127,596 |
|
|
|
| 133,610 |
|
|
|
Consolidated capital expenditures |
| $ | 156,726 |
|
|
| $ | 151,567 |
|
|
|
| (1) | Litigation and related charges are reported within Other operating expense, net in our Statements of Operations. Refer to footnote 3 in the GAAP/Non-GAAP Reconciliations below. | |
Owens & Minor, Inc. | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
|
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Net loss |
| $ | (12,770) |
| $ | (6,426) |
| $ | (66,570) |
| $ | (59,085) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic |
|
| 77,090 |
|
| 76,203 |
|
| 76,657 |
|
| 75,691 |
Dilutive shares |
|
| — |
|
| — |
|
| — |
|
| — |
Weighted average shares outstanding - diluted |
|
| 77,090 |
|
| 76,203 |
|
| 76,657 |
|
| 75,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | (0.17) |
| $ | (0.08) |
| $ | (0.87) |
| $ | (0.78) |
Diluted |
| $ | (0.17) |
| $ | (0.08) |
| $ | (0.87) |
| $ | (0.78) |
Share-based awards of approximately 1.4 million and 1.5 million shares for the three and nine months ended September 30, 2024 and approximately 1.5 million and 1.6 million shares for the three and nine months ended September 30, 2023 were excluded from the calculation of net loss per diluted common share as the effect would be anti-dilutive.
Owens & Minor, Inc.
GAAP/Non-GAAP Reconciliations (unaudited)
(dollars in thousands, except per share data)
The following table provides a reconciliation of reported operating income, net loss and net loss per share to non-GAAP measures used by management.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, |
| ||||||||
|
| 2024 |
| 2023 |
| 2024 |
| 2023 |
| ||||
Operating income, as reported (GAAP) |
| $ | 24,204 |
| $ | 23,841 |
| $ | 54,198 |
| $ | 44,487 |
|
Acquisition-related charges and intangible amortization (1) |
|
| 21,097 |
|
| 30,217 |
|
| 61,395 |
|
| 74,609 |
|
Exit and realignment charges, net (2) |
|
| 28,880 |
|
| 30,180 |
|
| 85,530 |
|
| 74,817 |
|
Litigation and related charges (3) |
|
| 9,984 |
|
| — |
|
| 16,662 |
|
| — |
|
Operating income, adjusted (non-GAAP) (Adjusted Operating Income) |
| $ | 84,165 |
| $ | 84,238 |
| $ | 217,785 |
| $ | 193,913 |
|
Operating income as a percent of net revenue (GAAP) |
|
| 0.89 | % |
| 0.92 | % |
| 0.68 | % |
| 0.58 | % |
Adjusted operating income as a percent of net revenue (non-GAAP) |
|
| 3.09 | % |
| 3.25 | % |
| 2.72 | % |
| 2.53 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss, as reported (GAAP) |
| $ | (12,770) |
| $ | (6,426) |
| $ | (66,570) |
| $ | (59,085) |
|
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related charges and intangible amortization (1) |
|
| 21,097 |
|
| 30,217 |
|
| 61,395 |
|
| 74,609 |
|
Exit and realignment charges, net (2) |
|
| 28,880 |
|
| 30,180 |
|
| 85,530 |
|
| 74,817 |
|
Litigation and related charges (3) |
|
| 9,984 |
|
| — |
|
| 16,662 |
|
| — |
|
Other (4) |
|
| 741 |
|
| (4,657) |
|
| 1,602 |
|
| (2,685) |
|
Income tax benefit on pre-tax adjustments (5) |
|
| (14,763) |
|
| (15,180) |
|
| (39,665) |
|
| (35,711) |
|
One-time income tax charge (6) |
|
| — |
|
| — |
|
| 17,233 |
|
| — |
|
Net income, adjusted (non-GAAP) (Adjusted Net Income) |
| $ | 33,169 |
| $ | 34,134 |
| $ | 76,187 |
| $ | 51,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share, as reported (GAAP) |
| $ | (0.17) |
| $ | (0.08) |
| $ | (0.87) |
| $ | (0.78) |
|
After-tax adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related charges and intangible amortization (1) |
|
| 0.20 |
|
| 0.28 |
|
| 0.60 |
|
| 0.74 |
|
Exit and realignment charges, net (2) |
|
| 0.28 |
|
| 0.28 |
|
| 0.83 |
|
| 0.74 |
|
Litigation and related charges (3) |
|
| 0.10 |
|
| — |
|
| 0.17 |
|
| — |
|
Other (4) |
|
| 0.01 |
|
| (0.04) |
|
| 0.02 |
|
| (0.03) |
|
One-time income tax charge (6) |
|
| — |
|
| — |
|
| 0.22 |
|
| — |
|
Net income per common share, adjusted (non-GAAP) (Adjusted EPS) |
| $ | 0.42 |
| $ | 0.44 |
| $ | 0.97 |
| $ | 0.67 |
|
Contacts
Investors
Alpha IR Group
Jackie Marcus or Nick Teves
OMI@alpha-ir.com
Jonathan Leon
Executive Vice President & Chief Financial Officer
Investor.Relations@owens-minor.com
Media
Stacy Law
media@owens-minor.com
