RICHMOND - Owens & Minor, Inc. (NYSE: OMI) today reported financial results for the first quarter ended March 31, 2024.
Key Highlights
Consolidated revenue of $2.6 billion in the first quarter, representing year-over-year growth of 4%
GAAP operating margin was flat while adjusted operating margin expanded by 31 basis points versus prior year
Net loss per share of $(0.29) and adjusted earnings per share of $0.19 in the first quarter
'Our solid performance in the first quarter was in line with our expectations, as we delivered top-line growth in both segments, adjusted operating margin expansion, and improved year-over-year profitability. At the same time, we are making the kind of investments consistent with our strategic plan previewed at our Investor Day in December 2023,' said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.
'In our Products & Healthcare Services segment, we onboarded new customers, grew same store sales, and invested in inventory to support our new wins and provide best-in-class service levels. On the heels of double-digit growth in the prior years, our Patient Direct segment delivered mid-single digit top-line growth while navigating the unique challenges that occurred in the quarter, demonstrating the strength of our team and the effectiveness of our go-to-market strategies,' concluded Mr. Pesicka.
Results and Business Highlights
Consolidated revenue of $2.6 billion in the first quarter of 2024, an increase of 4% as compared to the first quarter of 2023
Patient Direct revenue of $638 million, up 5% compared to the first quarter of 2023
Products & Healthcare Services revenue of nearly $2 billion, up 3% compared to the first quarter of 2023
First quarter 2024 operating income of $10 million and Adjusted Operating Income of $57 million
On a GAAP basis operating income margins remain flat while adjusted operating income margin expanded by 31 basis points
Adjusted operating income of $57.4 million, up 20% compared to the prior year
Both Products & Healthcare Services and Patient Direct delivered increases in Segment Income year-over-year
2024 Financial Outlook
The Company's most recent financial guidance; summarized below
Revenue for 2024 to be in a range of $10.5 billion to $10.9 billion
Adjusted EBITDA for 2024 to be in a range of $550 million to $590 million
Adjusted EPS for 2024 to be in a range of $1.40 to $1.70
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 21.0% to 21.5%
Interest expense of $141 to $146 million
Adjusted effective tax rate of 27.5% to 28.5%
Diluted weighted average shares of 78.5 million
Capital expenditures of $220 to $240 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.
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 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.
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.
Contact:
Jackie Marcus
Email: OMI@alpha-ir.com
Jonathan Leon
Email: Investor.Relations@owens-minor.com
OWENS & MINOR, INC. 
