Full Press Release Details
Owens & Minor Launches Financing for Rotech Acquisition and Provides Preliminary Fourth Quarter and Full Year 2024 Financial
Results Ahead of Investor Meetings
Expects to Report Fourth Quarter and Full Year 2024 Financial Results on February 28, 2025
RICHMOND, VA February 3, 2025 Owens & Minor, Inc. (NYSE: OMI) (the Company ) today announced selected
preliminary financial results for the fourth quarter and year ended December 31, 2024 in advance of its upcoming earnings announcement and conference call. The release of the preliminary results relates to the Company s commencement of
financing activity related to its previously announced agreement to acquire Rotech Healthcare Holdings, Inc ( Rotech ).
a process to raise additional debt while the capital markets are attractive, to finance our previously announced agreement to acquire Rotech which we continue to expect will close in the first half of 2025. Our healthy free cash flow provides the
vehicle for this proposed financing as well as helping us achieve our deleveraging goals over the next few years. Having this additional facility at attractive interest rates gives us the ability to remain nimble in a dynamic market, said
Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.
Pesicka added, Our healthy top-line performance in 2024 is representative of the demand for our products and services across both segments of our business. We are particularly excited about the full-year performance of our Patient Direct
segment which posted solid mid-single digit growth, and even higher in key categories. In addition, we are pleased that in a year of meaningful reinvestment in the business we were able to reduce total debt by
Preliminary Fourth Quarter 2024 Results Including Non-Cash Goodwill Impairment
| Revenue of $2.67 $2.70 billion | ||
| Net loss of $(311) $(288) million | Adjusted EBITDA of $135 $140 million | |
| Net loss per share $(4.03) $(3.73) | Adjusted EPS of $0.52 $0.55 | |
| Gross capital expenditures of $71 $76 million | Capital Expenditures, net of patient service equipment (PSE) regular sales proceeds, of $53 $58 million | |
| Cash provided by operating activities of $70 $75 million |
Preliminary Full Year 2024 Results Including Non-Cash Goodwill Impairment (i):
| Revenue of $10.67 $10.70 billion | ||
| Net loss of $(378) $(355) million | Adjusted EBITDA of $520 $525 million | |
| Net loss per share $(4.92) $(4.63) | Adjusted EPS of $1.50 $1.53 | |
| Gross capital expenditures of $228 $233 million | Capital expenditures, net of PSE regular sales proceeds, of $158 $163 million | |
| Total debt of $1.854 $1.859 billion | Net debt of $1.805 $1.810 billion | |
| Cash provided by operating activities of $160 $165 million |
Non-Cash Goodwill Impairment
The Company expects to record a non-cash goodwill impairment charge within its Apria division of approximately
$310 million, or approximately ($4.00) net loss per share. The impairment charge relates to a combination of factors occurring in the fourth quarter 2024. The majority of these factors are related to financial market changes inclusive of a
decline in Owens & Minor s stock price and rising interest rates. Additionally, anticipated changes in pricing of a capitated contract also contributed to this charge.
Note: Preliminary results and the amount of the non-cash goodwill impairment remain subject to final management review
Investor Conference Call for Fourth Quarter and Full Year 2024 Financial Results
Owens & Minor will host a conference call for investors and analysts on Friday, February 28,
2025, 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 financial performance, our 2024 preliminary financial results,
our ability to raise additional financing for our acquisition of Rotech on favorable terms or at all, the risk that the proposed acquisition of Rotech will not be consummated in a timely manner or at all, our cost-saving initiatives, future
indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including 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 Forward-Looking Statements and Item 1A. Risk Factors, as
applicable, 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.
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
Jackie Marcus or Nick Teves
SOURCE: Owens & Minor, Inc.
GAAP/Non-GAAP Reconciliations (unaudited)
(dollars in millions, except per share data)
following table provides a reconciliation of expected net loss and net loss per common share to non-GAAP measures used by management.
| Three Months Ended December 31, 2024 | Year Ended December 31, 2024 | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Net loss, as reported (GAAP) | $ | (311 | ) | $ | (288 | ) | $ | (378 | ) | $ | (355 | ) | ||||
| Pre-tax adjustments: | ||||||||||||||||
| Acquisition-related charges and intangible amortization (1) | 25 | 25 | 87 | 87 | ||||||||||||
| Exit and realignment charges, net (2) | 25 | 25 | 110 | 110 | ||||||||||||
| Goodwill impairment charges (3) | 320 | 300 | 320 | 300 | ||||||||||||
| Litigation and related charges (4) | 17 | 17 | ||||||||||||||
| Other (5) | 1 | 1 | 3 | 3 | ||||||||||||
| Income tax benefit on pre-tax adjustments (6) | (19 | ) | (19 | ) | (59 | ) | (59 | ) | ||||||||
| One-time income tax charge (7) | 17 | 17 | ||||||||||||||
| Net income, adjusted (non-GAAP) (Adjusted Net Income) | $ | 41 | $ | 44 | $ | 117 | $ | 120 | ||||||||
| Net loss per share, as reported (GAAP) | $ | (4.03 | ) | $ | (3.73 | ) | $ | (4.92 | ) | $ | (4.63 | ) | ||||
| After-tax adjustments: | ||||||||||||||||
| Acquisition-related charges and intangible amortization (1) | 0.21 | 0.21 | 0.82 | 0.82 | ||||||||||||
| Exit and realignment charges, net (2) | 0.21 | 0.21 | 1.04 | 1.04 | ||||||||||||
| Goodwill impairment charges (3) | 4.12 | 3.85 | 4.14 | 3.88 | ||||||||||||
| Litigation and related charges (4) | 0.17 | 0.17 | ||||||||||||||
| Other (5) | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||
| One-time income tax charge (7) | 0.22 | 0.22 | ||||||||||||||
| Net income per share, adjusted (non-GAAP) (Adjusted EPS) | $ | 0.52 | $ | 0.55 | $ | 1.50 | $ | 1.53 |
Amounts may not sum due to rounding
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 December 31, 2024 | Year Ended December 31, 2024 | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Net loss, as reported (GAAP) | $ | (311 | ) | $ | (288 | ) | $ | (378 | ) | $ | (355 | ) | ||||
| Income tax provision (benefit) | (5 | ) | (4 | ) | 4 | 5 | ||||||||||
| Interest expense, net | 36 | 36 | 144 | 144 | ||||||||||||
| Acquisition-related charges and intangible amortization (1) | 25 | 25 | 87 | 87 | ||||||||||||
| Exit and realignment charges, net (2) | 25 | 25 | 110 | 110 | ||||||||||||
| Goodwill impairment charges (3) | 320 | 300 | 320 | 300 | ||||||||||||
| Other depreciation and amortization (8) | 46 | 46 | 187 | 187 | ||||||||||||
| Litigation and related charges (4) | 17 | 17 | ||||||||||||||
| Stock compensation (9) | 7 | 7 | 25 | 25 | ||||||||||||
| LIFO (credits) charges (10) | (9 | ) | (8 | ) | 1 | 2 | ||||||||||
| Other (5) | 1 | 1 | 3 | 3 | ||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 135 | $ | 140 | $ | 520 | $ | 525 |
| December 31, 2024 | ||||||||
| Low | High | |||||||
| Total debt, as reported (GAAP) | $ | 1,854 | $ | 1,859 | ||||
| Cash and cash equivalents | (49 | ) | (49 | ) | ||||
| Net debt (non-GAAP) | $ | 1,805 | $ | 1,810 |
Amounts may not sum due to rounding
The following items have been excluded in our non-GAAP financial measures:
This preliminary earnings 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 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.