Owens & Minor Reports Third Quarter 2024 Financial Results
Owens & Minor (NYSE: OMI) reported Q3 2024 financial results with consolidated revenue of $2.7 billion, up 5% year-over-year. The company posted a GAAP net loss of $(13) million or $(0.17) per share, with adjusted earnings per share of $0.42. Patient Direct revenue grew 6% to $687 million, while Products & Healthcare Services revenue increased 5% to $2.0 billion. The company achieved $198 million in total debt reduction and reported adjusted EBITDA of $142 million, up 5% year-over-year. For 2024, guidance includes revenue of $10.6-10.8 billion, adjusted EBITDA of $540-550 million, and adjusted EPS of $1.45-1.55.
Owens & Minor (NYSE: OMI) ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato consolidato di 2,7 miliardi di dollari, in aumento del 5% rispetto all'anno precedente. L'azienda ha registrato una perdita netta GAAP di $(13) milioni, ovvero $(0,17) per azione, con un utile per azione rettificato di $0,42. I ricavi da Patient Direct sono cresciuti del 6% fino a $687 milioni, mentre i ricavi da Products & Healthcare Services sono aumentati del 5%, raggiungendo i $2,0 miliardi. L'azienda ha ottenuto una riduzione totale del debito di $198 milioni e ha riportato un EBITDA rettificato di $142 milioni, in crescita del 5% rispetto all'anno precedente. Per il 2024, le previsioni includono un fatturato di $10,6-10,8 miliardi, un EBITDA rettificato di $540-550 milioni e un EPS rettificato di $1,45-1,55.
Owens & Minor (NYSE: OMI) informó los resultados financieros del tercer trimestre de 2024 con ingresos consolidados de $2.7 mil millones, un aumento del 5% interanual. La compañía reportó una pérdida neta GAAP de $(13) millones o $(0.17) por acción, con ganancias por acción ajustadas de $0.42. Los ingresos de Patient Direct crecieron un 6% hasta alcanzar los $687 millones, mientras que los ingresos de Products & Healthcare Services aumentaron un 5% a $2.0 mil millones. La compañía logró una reducción total de deuda de $198 millones y reportó un EBITDA ajustado de $142 millones, un aumento del 5% en comparación con el año anterior. Para 2024, la guía incluye ingresos de $10.6-10.8 mil millones, EBITDA ajustado de $540-550 millones y EPS ajustado de $1.45-1.55.
Owens & Minor (NYSE: OMI)는 2024년 3분기 재무 결과를 발표하며 통합 수익이 27억 달러로, 전년 대비 5% 증가했다고 밝혔습니다. 회사는 GAAP 기준으로 $(13)백만 달러 또는 주당 $(0.17)의 순손실을 기록했으며, 조정된 주당 수익(EPS)은 $0.42였습니다. Patient Direct 수익은 6% 증가하여 $6억 8,700만 달러에 달했고, Products & Healthcare Services 수익은 5% 증가하여 $20억 달러에 이르렀습니다. 이 회사는 총 부채를 1억 9,800만 달러 줄이는 데 성공하였고, 조정된 EBITDA는 1억 4,200만 달러로, 전년 대비 5% 향상되었습니다. 2024년 가이던스에는 $106억-$108억의 수익, 조정된 EBITDA $54억-$55억, 조정된 EPS $1.45-$1.55가 포함됩니다.
Owens & Minor (NYSE: OMI) a annoncé les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires consolidé de 2,7 milliards de dollars, en hausse de 5 % par rapport à l'année précédente. L'entreprise a enregistré une perte nette GAAP de $(13) millions, soit $(0,17) par action, avec un bénéfice par action ajusté de $0,42. Les revenus de Patient Direct ont augmenté de 6 % pour atteindre 687 millions de dollars, tandis que les revenus de Products & Healthcare Services ont progressé de 5 % à 2,0 milliards de dollars. L'entreprise a réalisé une réduction totale de la dette de 198 millions de dollars et a rapporté un EBITDA ajusté de 142 millions de dollars, en hausse de 5 % par rapport à l'année précédente. Pour 2024, les prévisions incluent un chiffre d'affaires de 10,6 à 10,8 milliards de dollars, un EBITDA ajusté de 540 à 550 millions de dollars et un BPA ajusté de 1,45 à 1,55.
Owens & Minor (NYSE: OMI) berichtete über die Finanzresultate des 3. Quartals 2024 mit einem konsolidierten Umsatz von 2,7 Milliarden Dollar, was einem Anstieg von 5% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von $(13) Millionen bzw. $(0,17) pro Aktie, mit einem bereinigten Ergebnis pro Aktie von $0,42. Die Einnahmen aus Patient Direct stiegen um 6% auf $687 Millionen, während die Einnahmen aus Products & Healthcare Services um 5% auf $2,0 Milliarden zunahmen. Das Unternehmen erreichte eine Gesamtverschuldungsreduktion von 198 Millionen Dollar und berichtete über ein bereinigtes EBITDA von $142 Millionen, was einer Steigerung von 5% im Jahresvergleich entspricht. Für 2024 beinhaltet die Prognose einen Umsatz von $10,6-10,8 Milliarden, ein bereinigtes EBITDA von $540-550 Millionen und ein bereinigtes EPS von $1,45-1,55.
- Revenue growth of 5% year-over-year to $2.7 billion
- Patient Direct segment revenue increased 6% to $687 million
- Products & Healthcare Services revenue up 5% to $2.0 billion
- Adjusted EBITDA grew 5% to $142 million
- Significant debt reduction of $198 million in Q3
- GAAP Net loss of $(13) million in Q3 2024
- Adjusted EPS declined from $0.44 to $0.42 year-over-year
- Operating income remained flat at $84.2 million (adjusted)
Insights
The Q3 results show mixed performance with notable highlights: revenue grew 5% YoY to
Patient Direct segment remains strong with
Key concerns include continued GAAP losses and high interest expenses of
Top-Line Growth Driven by Continued Solid Demand in Patient Direct and Medical Distribution
Total Debt Reduction of Nearly
Key Highlights:
-
Consolidated revenue of
$2.7 billion 5% -
GAAP Net loss of
$(13) million $(0.17) $0.42 -
Adjusted EBITDA of
$142 million 5% -
$198 million
“Our third quarter results demonstrated our ability to deliver on our commitments both near-term as well as on our strategic initiatives. Our Patient Direct segment continues to perform well in the growing home-based care space while we continue investing to support long-term profitable growth. In our Products & Healthcare Services segment, we continue to see solid top-line results, especially within our Medical Distribution division supported by recent wins and deepened relationships with our existing customers,” said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.
Pesicka concluded, “Looking ahead we are confident in our ability to show good sequential growth and cash flow from the third to fourth quarter which positions us well as we enter 2025. Each of the segments should benefit from seasonality and investments of the last several quarters as we finish 2024 and look to the future.”
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Financial Summary (1) |
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YTD |
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YTD |
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($ in millions, except per share data) |
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3Q24 |
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3Q23 |
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2024 |
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2023 |
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Revenue |
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$ |
2,721 |
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$ |
2,592 |
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$ |
8,005 |
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$ |
7,678 |
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Operating income, GAAP |
|
$ |
24.2 |
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$ |
23.8 |
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$ |
54.2 |
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$ |
44.5 |
Adj. Operating Income, Non-GAAP |
|
$ |
84.2 |
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$ |
84.2 |
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$ |
217.8 |
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$ |
193.9 |
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Net loss, GAAP |
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$ |
(12.8) |
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$ |
(6.4) |
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$ |
(66.6) |
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$ |
(59.1) |
Adj. Net Income, Non-GAAP |
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$ |
33.2 |
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$ |
34.1 |
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$ |
76.2 |
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$ |
51.9 |
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Adj. EBITDA, Non-GAAP |
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$ |
141.8 |
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$ |
134.7 |
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$ |
384.9 |
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$ |
356.2 |
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Net loss per common share, GAAP |
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$ |
(0.17) |
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$ |
(0.08) |
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$ |
(0.87) |
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$ |
(0.78) |
Adj. Net Income per share, Non-GAAP |
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$ |
0.42 |
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$ |
0.44 |
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$ |
0.97 |
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$ |
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 5% compared to the third quarter of 2023-
Patient Direct revenue of
$687 million 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 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
-
Patient Direct revenue of
-
Third quarter 2024 operating income of
$24 million $84 million -
Sequentially, third quarter 2024 GAAP operating income improved by
$4 million $8 million
-
Sequentially, third quarter 2024 GAAP operating income improved by
-
GAAP Net loss of
$(13) million $33 million -
Adjusted EBITDA of
$142 million 5%
-
Adjusted EBITDA of
-
Reduced total debt by
$198 million
2024 Financial Outlook
The Company’s recently revised financial guidance; summarized below:
-
Revenue for 2024 to be in a range of
$10.6 billion $10.8 billion -
Adjusted EBITDA for 2024 to be in a range of
$540 million $550 million -
Adjusted EPS for 2024 to be in a range of
$1.45 $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% to21.0% -
Interest expense of
$142 $144 million -
Adjusted effective tax rate of
27.5% to28.5% - Diluted weighted average shares of ~78.5 million
-
Capital expenditures of
$225 $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 |
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2023 |
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Net revenue |
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$ |
2,721,125 |
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$ |
2,591,742 |
Cost of goods sold |
|
|
2,161,419 |
|
|
2,053,244 |
Gross profit |
|
|
559,706 |
|
|
538,498 |
Distribution, selling and administrative expenses |
|
|
469,798 |
|
|
452,583 |
Acquisition-related charges and intangible amortization |
|
|
21,097 |
|
|
30,217 |
Exit and realignment charges, net |
|
|
28,880 |
|
|
30,180 |
Other operating expense, net |
|
|
15,727 |
|
|
1,677 |
Operating income |
|
|
24,204 |
|
|
23,841 |
Interest expense, net |
|
|
36,554 |
|
|
38,127 |
Other expense (income), net |
|
|
1,438 |
|
|
(3,302) |
Loss before income taxes |
|
|
(13,788) |
|
|
(10,984) |
Income tax benefit |
|
|
(1,018) |
|
|
(4,558) |
Net loss |
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$ |
(12,770) |
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$ |
(6,426) |
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Net loss per common share: |
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Basic |
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$ |
(0.17) |
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$ |
(0.08) |
Diluted |
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$ |
(0.17) |
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$ |
(0.08) |
Owens & Minor, Inc.
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Nine Months Ended September 30, |
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2024 |
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2023 |
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Net revenue |
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$ |
8,004,810 |
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$ |
7,677,817 |
Cost of goods sold |
|
|
6,365,421 |
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|
6,122,579 |
Gross profit |
|
|
1,639,389 |
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|
1,555,238 |
Distribution, selling and administrative expenses |
|
|
1,416,724 |
|
|
1,356,334 |
Acquisition-related charges and intangible amortization |
|
|
61,395 |
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|
74,609 |
Exit and realignment charges, net |
|
|
85,530 |
|
|
74,817 |
Other operating expense, net |
|
|
21,542 |
|
|
4,991 |
Operating income |
|
|
54,198 |
|
|
44,487 |
Interest expense, net |
|
|
108,108 |
|
|
121,053 |
Other expense (income), net |
|
|
3,796 |
|
|
(843) |
Loss before income taxes |
|
|
(57,706) |
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|
(75,723) |
Income tax provision (benefit) |
|
|
8,864 |
|
|
(16,638) |
Net loss |
|
$ |
(66,570) |
|
$ |
(59,085) |
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Net loss per common share: |
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|
|
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|
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Basic |
|
$ |
(0.87) |
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$ |
(0.78) |
Diluted |
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$ |
(0.87) |
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$ |
(0.78) |
Owens & Minor, Inc.
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September 30, |
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December 31, |
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2024 |
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2023 |
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Assets |
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Current assets |
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|
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Cash and cash equivalents |
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$ |
45,454 |
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$ |
243,037 |
Accounts receivable, net |
|
|
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 |
|
|
498,746 |
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|
543,972 |
Operating lease assets |
|
|
357,264 |
|
|
296,533 |
Goodwill |
|
|
1,642,196 |
|
|
1,638,846 |
Intangible assets, net |
|
|
313,284 |
|
|
361,835 |
Other assets, net |
|
|
153,254 |
|
|
149,346 |
Total assets |
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$ |
5,081,282 |
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$ |
5,093,322 |
Liabilities and equity |
|
|
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Current liabilities |
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|
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|
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Accounts payable |
|
$ |
1,338,021 |
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$ |
1,171,882 |
Accrued payroll and related liabilities |
|
|
100,002 |
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|
116,398 |
Current portion of long-term debt |
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|
42,626 |
|
|
206,904 |
Other current liabilities |
|
|
453,517 |
|
|
396,701 |
Total current liabilities |
|
|
1,934,166 |
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|
1,891,885 |
Long-term debt, excluding current portion |
|
|
1,842,348 |
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|
1,890,598 |
Operating lease liabilities, excluding current portion |
|
|
288,043 |
|
|
222,429 |
Deferred income taxes, net |
|
|
25,650 |
|
|
41,652 |
Other liabilities |
|
|
116,483 |
|
|
122,592 |
Total liabilities |
|
|
4,206,690 |
|
|
4,169,156 |
Total equity |
|
|
874,592 |
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|
924,166 |
Total liabilities and equity |
|
$ |
5,081,282 |
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$ |
5,093,322 |
Owens & Minor, Inc.
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Three Months Ended September 30, |
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|
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2024 |
|
2023 |
||
Operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(12,770) |
|
$ |
(6,426) |
Adjustments to reconcile net loss to cash provided by operating activities: |
|
|
|
|
|
|
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: |
|
|
|
|
|
|
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: |
|
|
|
|
|
|
Additions to property and equipment |
|
|
(57,652) |
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|
(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: |
|
|
|
|
|
|
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: |
|
|
|
|
|
|
Income taxes paid, net |
|
$ |
2,370 |
|
$ |
3,708 |
Interest paid |
|
$ |
33,459 |
|
$ |
22,454 |
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 June 30, 2024 was |
Owens & Minor, Inc.
|
||||||
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
||||
|
|
2024 |
|
2023 |
||
Operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(66,570) |
|
$ |
(59,085) |
Adjustments to reconcile net loss to cash provided by operating activities: |
|
|
|
|
|
|
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: |
|
|
|
|
|
|
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: |
|
|
|
|
|
|
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: |
|
|
|
|
|
|
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: |
|
|
|
|
|
|
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 |
Owens & Minor, Inc.
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
||||||||
|
|
2024 |
|
2023 |
|
||||||
|
|
|
|
|
% of |
|
|
|
|
% of |
|
|
|
|
|
|
consolidated |
|
|
|
|
consolidated |
|
|
|
Amount |
|
net revenue |
|
Amount |
|
net revenue |
|
||
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
Products & Healthcare Services |
|
$ |
2,034,279 |
|
74.76 |
% |
$ |
1,943,467 |
|
74.99 |
% |
Patient Direct |
|
|
686,846 |
|
25.24 |
% |
|
648,275 |
|
25.01 |
% |
Consolidated net revenue |
|
$ |
2,721,125 |
|
100.00 |
% |
$ |
2,591,742 |
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of segment |
|
|
|
|
% of segment |
|
Operating income: |
|
|
|
|
net revenue |
|
|
|
|
net revenue |
|
Products & Healthcare Services |
|
$ |
4,233 |
|
0.21 |
% |
$ |
19,803 |
|
1.02 |
% |
Patient Direct |
|
|
79,932 |
|
11.64 |
% |
|
64,435 |
|
9.94 |
% |
Acquisition-related charges and intangible amortization |
|
|
(21,097) |
|
|
|
|
(30,217) |
|
|
|
Exit and realignment charges, net |
|
|
(28,880) |
|
|
|
|
(30,180) |
|
|
|
Litigation and related charges (1) |
|
|
(9,984) |
|
|
|
|
— |
|
|
|
Consolidated operating income |
|
$ |
24,204 |
|
|
|
$ |
23,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
Products & Healthcare Services |
|
$ |
18,382 |
|
|
|
$ |
20,021 |
|
|
|
Patient Direct |
|
|
43,232 |
|
|
|
|
53,631 |
|
|
|
Consolidated depreciation and amortization |
|
$ |
61,614 |
|
|
|
$ |
73,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Owens & Minor, Inc.
GAAP/Non-GAAP Reconciliations (unaudited), continued
(dollars in thousands)
The following tables provide reconciliations of net loss and total debt to non-GAAP measures used by management.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Net loss, as reported (GAAP) |
|
$ |
(12,770) |
|
$ |
(6,426) |
|
$ |
(66,570) |
|
$ |
(59,085) |
Income tax (benefit) provision |
|
|
(1,018) |
|
|
(4,558) |
|
|
8,864 |
|
|
(16,638) |
Interest expense, net |
|
|
36,554 |
|
|
38,127 |
|
|
108,108 |
|
|
121,053 |
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 |
Other depreciation and amortization (7) |
|
|
46,342 |
|
|
50,909 |
|
|
140,501 |
|
|
151,635 |
Litigation and related charges (3) |
|
|
9,984 |
|
|
— |
|
|
16,662 |
|
|
— |
Stock compensation (8) |
|
|
5,339 |
|
|
4,616 |
|
|
17,827 |
|
|
15,761 |
LIFO charges and (credits) (9) |
|
|
6,672 |
|
|
(3,660) |
|
|
10,985 |
|
|
(3,253) |
Other (4) |
|
|
741 |
|
|
(4,657) |
|
|
1,602 |
|
|
(2,685) |
Adjusted EBITDA (non-GAAP) |
|
$ |
141,821 |
|
$ |
134,748 |
|
$ |
384,904 |
|
$ |
356,214 |
|
|
|
|
|
|
|
September 30, |
|
December 31, |
||
|
2024 |
|
2023 |
||
Total debt, as reported (GAAP) |
$ |
1,884,974 |
|
$ |
2,097,502 |
Cash and cash equivalents |
|
(45,454) |
|
|
(243,037) |
Net debt (non-GAAP) |
$ |
1,839,520 |
|
$ |
1,854,465 |
The following items have been excluded in our non-GAAP financial measures:
(1) Acquisition-related charges and intangible amortization for the three and nine months ended September 30, 2024 includes
(2) During the three and nine months ended September 30, 2024 exit and realignment charges, net were
(3) Litigation and related charges includes settlement costs and related charges of legal matters within our Apria division. These costs do not occur in the ordinary course of our business, are non-recurring/infrequent and are inherently unpredictable in timing and amount.
(4) For the three and nine months ended September 30, 2024 and 2023, other includes interest costs and net actuarial losses related to our frozen noncontributory, unfunded retirement plan for certain retirees in
(5) These charges have been tax effected by determining the income tax rate depending on the amount of charges incurred in different tax jurisdictions and the deductibility of those charges for income tax purposes.
(6) One-time income tax charge, recorded during the three months ended June 30, 2024, excluding the impact of incremental interest, relates to a recent decision associated with the Notice of Proposed Adjustments received in 2020 and 2021. The matter at hand, as discussed in previously filed SEC documents, is related to past transfer pricing methodology which is no longer employed. We believe the matter will be concluded without further impact to our financial results.
(7) Other depreciation and amortization relates to property and equipment and capitalized computer software, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges.
(8) Stock compensation includes share-based compensation expense related to our share-based compensation plans, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges.
(9) LIFO charges and (credits) includes non-cash adjustments to merchandise inventories valued at the lower of cost or market, with the approximate cost determined by the last-in, first-out (LIFO) method for distribution inventories in the
Use of Non-GAAP Measures
This earnings release contains financial measures that are not calculated in accordance with
Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on its financial and operating results and in comparing the Company’s performance to that of its competitors. However, the non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
The non-GAAP financial measures disclosed by the Company should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.
OMI-CORP
OMI-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104535251/en/
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
Source: Owens & Minor, Inc.
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