Full Press Release Details
Owens & Minor, Inc. Releases Preliminary Second Quarter 2024
Financial Results & Reaffirms 2024 Annual Guidance
Plans to Release Full Results on Friday, August 2 Before the NYSE Open
RICHMOND, VA July 23, 2024 Owens & Minor, Inc. (NYSE: OMI) today announced selected preliminary financial results for the
quarter ended June 30, 2024 as noted in the table below. The Company also reaffirmed its outlook for the full year 2024 as noted below in advance of its second quarter 2024 earnings announcement and conference call.
Selected Preliminary Financial Results for the Quarter Ended June 30, 2024 (1)
| ($ in millions, except per share data) | 2Q24 | |
| Revenue | $2,651 - $2,671 | |
| Operating income, GAAP | $16 - $20 | |
| Adj. Operating Income, Non-GAAP | $72 - $76 | |
| Net loss, GAAP | $(35) - $(32) | |
| Adj. Net Income, Non-GAAP | $25 - $28 | |
| Adj. EBITDA, Non-GAAP | $123 - $127 | |
| Net loss per common share, GAAP | $(0.46) $(0.42) | |
| Adj. Net Income per share, Non-GAAP | $0.32 - $0.36 | |
| Operating cash flow | $111 $116 | |
| Total debt and net debt reduction | $68 - $71 |
In the second quarter of 2024, the
Company recorded a one-time income tax charge of $17 million (or $0.22 per share) related to a recent decision associated with Notices of Proposed Adjustments received in 2020 and 2021 which was
communicated in the last week of June 2024. Due to the nature of this charge, this item is included in our GAAP to Non-GAAP reconciliations. The matter at hand, as discussed in previously filed SEC documents,
is related to past transfer pricing methodology. There is an expected related cash payment to be made in the second half of the year in the range of $30-$35 million. The Company believes the matter will
be concluded without further impact to its financial results.
2024 Financial Outlook
The Company reaffirms its outlook for the full year 2024 on a standalone basis excluding the expected impact of the Rotech acquisition.
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:
Although the Company provides 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 GAAP amounts are not predictable, making in 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 risk factors discussed in the Company s filings with the SEC.
Investor Conference Call for Second Quarter 2024 Financial Results
Owens & Minor executives will host a conference call for investors and analysts on Friday, August 2, 2024, at 8:30 a.m. ET. 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.
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 its 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.
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
Jackie Marcus or Nick Teves
Interim Chief Financial Officer; SVP
SOURCE: Owens & Minor, Inc.
GAAP/Non-GAAP Reconciliations (unaudited)
(dollars in millions)
The following table provides a
reconciliation of expected operating income, net loss and net loss per common share to non-GAAP measures used by management.
| Three Months Ended June 30, 2024 | ||||||||
| Low | High | |||||||
| Operating income, as reported (GAAP) | $ | 16 | $ | 20 | ||||
| Acquisition-related charges and intangible amortization (1) | 20 | 20 | ||||||
| Exit and realignment charges, net (2) | 29 | 29 | ||||||
| Litigation and related charges (3) | 7 | 7 | ||||||
| Operating income, adjusted (non-GAAP) (Adjusted Operating Income) | $ | 72 | $ | 76 | ||||
| Net loss, as reported (GAAP) | $ | (35 | ) | $ | (32 | ) | ||
| Pre-tax adjustments: | ||||||||
| Acquisition-related charges and intangible amortization (1) | 20 | 20 | ||||||
| Exit and realignment charges, net (2) | 29 | 29 | ||||||
| Litigation and related charges (3) | 7 | 7 | ||||||
| Income tax benefit on pre-tax adjustments (4) | (13 | ) | (13 | ) | ||||
| One-time income tax charge (5) | 17 | 17 | ||||||
| Net income, adjusted (non-GAAP) (Adjusted Net Income) | $ | 25 | $ | 28 | ||||
| Net loss per common share, as reported (GAAP) | $ | (0.46 | ) | $ | (0.42 | ) | ||
| After-tax adjustments: | ||||||||
| Acquisition-related charges and intangible amortization (1) | 0.19 | 0.19 | ||||||
| Exit and realignment charges, net (2) | 0.29 | 0.29 | ||||||
| Litigation and related charges (3) | 0.08 | 0.08 | ||||||
| One-time income tax charge (5) | 0.22 | 0.22 | ||||||
| Net income per common share, adjusted (non-GAAP) (Adjusted EPS) | $ | 0.32 | $ | 0.36 |
GAAP/Non-GAAP Reconciliations (unaudited), continued
(dollars in millions)
The following tables provide
reconciliations of expected net loss and total debt to non-GAAP measures used by management.
| Three Months Ended June 30, 2024 | ||||||||
| Low | High | |||||||
| Net loss, as reported (GAAP) | $ | (35 | ) | $ | (32 | ) | ||
| Income tax provision | 15 | 16 | ||||||
| Interest expense, net | 36 | 36 | ||||||
| Acquisition-related charges and intangible amortization (1) | 20 | 20 | ||||||
| Exit and realignment charges, net (2) | 29 | 29 | ||||||
| Other depreciation and amortization (6) | 46 | 46 | ||||||
| Stock compensation (7) | 6 | 6 | ||||||
| LIFO credits (8) | (1 | ) | (1 | ) | ||||
| Litigation and related charges (3) | 7 | 7 | ||||||
| Adjusted EBITDA (non-GAAP) | $ | 123 | $ | 127 |
| June 30, 2024 | March 31, 2024 | |||||||||||
| Low | High | |||||||||||
| Total debt, as reported (GAAP) | $ | 2,083 | $ | 2,085 | $ | 2,154 | ||||||
| Cash and cash equivalents | (244 | ) | (244 | ) | (245 | ) | ||||||
| Net debt (non-GAAP) | $ | 1,839 | $ | 1,841 | $ | 1,909 |
The following items have been excluded in our non-GAAP financial measures:
Use of Non-GAAP Measures
This release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). In
general, the measures exclude items and charges that (i) management does not believe reflect the Company s core business and relate more to strategic, multi-year corporate activities; or (ii) relate to activities or actions that may
have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company s performance, evaluate the balance sheet,
engage in financial and operational planning and determine incentive compensation.
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
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.