Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,424.85 162.29 1.00%
S&P 500 1,862.31 19.33 1.05%
NASDAQ 4,086.22 52.06 1.29%
Ticker Volume Price Price Delta
STOXX 50 3,146.34 7.08 0.23%
FTSE 100 6,609.18 25.01 0.38%
DAX 9,377.49 59.67 0.64%
Ticker Volume Price Price Delta
NIKKEI 14,417.53 -0.15 -0.00%
TOPIX 1,166.59 0.04 0.00%
HANG SENG 22,760.24 64.23 0.28%

Owens & Minor Reports 1st Quarter 2013 Financial Results



  Owens & Minor Reports 1st Quarter 2013 Financial Results

Management to host conference call to discuss results on Wednesday, April 24,
                              2013, at 8:30 a.m.

Bank of America Merrill Lynch 2013 Healthcare Conference 2013 UBS Global
Healthcare Conference Jefferies Global Healthcare Conference 2013 34th Annual
Goldman Sachs Global Healthcare Conference

Business Wire

RICHMOND, Va. -- April 23, 2013

Owens & Minor, Inc. (NYSE-OMI) today reported financial results for the first
quarter ended March 31, 2013, including consolidated quarterly revenues of
$2.28 billion, an increase of 2.6%, when compared to revenues of $2.22 billion
in the first quarter of 2012. Movianto, a leading European healthcare
logistics provider acquired by Owens & Minor on August 31, 2012, contributed
$121.0 million to first quarter revenues.

For the first quarter of 2013, consolidated net  income was $26.1 million, or
$0.41 per diluted share, compared to $29.4 million, or $0.46 per diluted
share, for the same period last year. For the quarter, adjusted consolidated
net income (non-GAAP), which excludes pre-tax charges of $2.0 million for
acquisition-related and exit & realignment activities, was $27.6 million, or
$0.44 per diluted share, compared to $29.4 million, or $0.46 per diluted
share, for the same period last year.

“In looking at our quarterly results, we see that Owens & Minor is adapting to
a changing healthcare market and is investing in areas that will provide us
with opportunities for the future,” said Craig R. Smith, president & chief
executive officer of Owens & Minor. “We continue to invest in our Domestic
business to ensure that we have the necessary flexibility to serve our
customers in healthcare. Internationally, we are working intently to integrate
Movianto, fill excess capacity in the network, and reduce the cost structure.
As we work through the integration, we remain excited about the opportunities
in Europe.”

Adjusted consolidated operating earnings (non-GAAP) for the first quarter of
2013 were $49.9 million, or 2.19% of revenues, decreased $2.0 million, when
compared to operating earnings of $51.9 million, or 2.34% of revenues, in the
same period of 2012. The quarterly decline in consolidated operating earnings
resulted primarily from an International segment operating loss of $3.0
million in the first quarter of 2013. For purposes of comparison, the first
quarter 2012 results did not contain results from the company’s international
operations.

Segment Results

Domestic segment revenues for the first quarter of 2013 were $2.15 billion, a
decline of 2.8% when compared to the prior year’s first quarter revenue of
$2.22 billion. On a per-sales-day basis, quarterly revenue declined by 1.3%.
When compared to the prior year, the decline in first quarter Domestic segment
revenues was partially due to rationalization of smaller, less profitable
healthcare provider customers and suppliers. First quarter Domestic revenues
were also affected by ongoing trends, including lower hospital utilization and
reduced government purchases.

For the first quarter of 2013, Domestic segment operating earnings were $52.9
million, or 2.46% of revenues, an increase of $1.0 million, when compared to
operating earnings of $51.9 million, or 2.34% of revenues, in the same period
of 2012. Domestic segment operating earnings benefitted from supplier price
changes, partially offset by an increase in workers’ compensation and
consulting expenses.

The International segment contributed revenue of $121.0 million for the first
quarter of 2013 and had a pre-tax operating loss of $3.0 million, which
reduced consolidated net income per diluted share by $0.04. The quarterly
operating loss resulted primarily from operating costs to support
underutilized capacity.

Asset Management

The balance of cash and cash equivalents was $219 million at March 31, 2013,
increased by $121 million from $98 million at December 31, 2012. For the first
quarter of 2013, the company reported cash provided by operating activities of
approximately $155 million compared to $102 million for the same period last
year; results included a $98.2 million increase in accounts payable. Asset
management metrics were strong with Domestic segment days sales outstanding
(DSO) of 19.6 days as of March 31, 2013, compared to DSO of 19.9 days as of
March 31, 2012. Domestic segment inventory turns were 10.6 for the first
quarter of 2013, compared to inventory turns of 10.5 for the same period last
year.

2013 Outlook

The company reaffirmed its financial guidance for 2013, which remains
unchanged since it was provided at the company’s November 2012 Investor Day.

For 2013, the company is targeting revenue growth of 2% to 4% and adjusted net
income per diluted share of $1.90 to $2.00 for the year, which includes
operating results from the Movianto acquisition, but excludes exit and
realignment costs, as well as acquisition-related costs.

The 2013 outlook is based on certain assumptions that are subject to the risk
factors discussed in the company’s filings with the Securities & Exchange
Commission.

Upcoming Investor Events

  * The company will hold its Annual Shareholders Meeting on Friday, April 26,
    2013, at its Home Office in Mechanicsville, Va., at 10:00 a.m. EDT. Event
    audio and presentations will be archived on www.owens-minor.com following
    the conclusion of the meeting.
  * Owens & Minor is scheduled to participate in a number of investor
    conferences in the second quarter of 2013; webcasts of the company’s
    presentations at the following investor events will be posted on the
    company’s corporate website:

       * Bank of America Merrill Lynch 2013 Healthcare Conference; May 15 –
         Las Vegas
       * 2013 UBS Global Healthcare Conference; May 21 – New York
       * Jefferies 2013 Global Healthcare Conference; June 6 – New York
       * 34^th Annual Goldman Sachs Global Healthcare Conference; June 12 –
         Rancho Palos Verdes

Investors Conference Call & Supplemental Material

Conference Call: Owens & Minor will conduct a conference call for investors on
Wednesday, April 24, 2013, at 8:30 a.m. EDT. The access code for the
conference call, international dial-in and replay is #35997867. Participants
may access the call at 866-393-1604.  The international dial-in number is
224-357-2191. Replay: A replay of the call will be available for one week by
dialing 855-859-2056. Webcast: A listen-only webcast of the call, along with
supplemental information, will be available on www.owens-minor.com under
“Investor Relations.”

Information on www.Owens-Minor.com

Owens & Minor uses its website as a channel of distribution for material
company information, including news releases, investor presentations and
financial information. This information is routinely posted and accessible
under Investor Relations at www.owens-minor.com.

Safe Harbor Statement

Except for historical information, the matters discussed in this press release
may constitute forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those projected.
These risk factors are discussed in reports filed by the company with the
Securities & Exchange Commission. All of this information is available at
www.owens-minor.com. The company assumes no obligation, and expressly
disclaims any such obligation, to update or alter information, whether as a
result of new information, future events, or otherwise.

Owens & Minor, Inc., (NYSE: OMI) a FORTUNE 500 company headquartered in
Richmond, Virginia, is a leading national distributor of name-brand medical
and surgical supplies. Owens & Minor also offers global third-party logistics
services to pharmaceutical, life-science, and medical-device manufacturers
through its European business unit, Movianto, and through its U.S.-based
service, OM HealthCare Logistics. With a diverse product and service offering
and distribution centers throughout the United States, the company serves
hospitals, integrated healthcare systems, alternate site locations, group
purchasing organizations, healthcare manufacturers, and the federal
government. Owens & Minor also provides technology and consulting programs
that improve inventory management and streamline logistics across the entire
medical supply chain. For news releases, or for more information about Owens &
Minor, visit the company website at www.owens-minor.com.

Owens & Minor, Inc.
Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
                                                                
                                                                    
                                                  Three Months Ended March 31,
                                                  2013             2012       
                                                                    
Net revenue                                     $ 2,275,709      $ 2,217,882
Cost of goods sold                                1,996,657        2,003,554  
Gross margin                                      279,052          214,328
Selling, general and administrative               217,721          155,572
expenses
Acquisition-related and exit and                  2,010            -
realignment charges
Depreciation and amortization                     12,629           8,578
Other operating income, net                       (1,192     )     (1,694    )
Operating earnings                                47,884           51,872
Interest expense, net                             3,199            3,422      
Income before income taxes                        44,685           48,450
Income tax provision                              18,587           19,090     
Net income                                      $ 26,098         $ 29,360     
                                                                    
Net income per common share:
Basic                                           $ 0.41           $ 0.46
Diluted                                         $ 0.41           $ 0.46

Owens & Minor, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)
                                                               
                                                    March 31,     December 31,
                                                    2013          2012
                                                                   
Assets
Current assets
Cash and cash equivalents                       $   218,563     $ 97,888
Accounts and notes receivable, net                  581,121       553,502
Merchandise inventories                             743,247       763,756
Other current assets                                205,342       213,748
Total current assets                                1,748,273     1,628,894
Property and equipment, net                         187,927       191,841
Goodwill, net                                       272,878       274,884
Intangible assets, net                              39,645        42,313
Other assets, net                                   72,199        69,769
Total assets                                    $   2,320,922   $ 2,207,701
Liabilities and equity
Current liabilities
Accounts payable                                $   693,616     $ 603,137
Accrued payroll and related liabilities             18,823        25,468
Deferred income taxes                               41,455        40,758
Other current liabilities                           282,974       254,924
Total current liabilities                           1,036,868     924,287
Long-term debt, excluding current                   214,243       215,383
portion
Deferred income taxes                               28,639        30,921
Other liabilities                                   63,622        63,454
Total liabilities                                   1,343,372     1,234,045
Total equity                                        977,550       973,656
Total liabilities and equity                    $   2,320,922   $ 2,207,701

Owens & Minor, Inc.
Consolidated Statements of Cash Flows (unaudited)
(in thousands)
                                                                
                                                 Three Months Ended March 31,
                                                     2013            2012     
                                                                    
Operating activities:
Net income                                       $   26,098        $ 29,360
Adjustments to reconcile net income to cash
provided by
operating activities of continuing
operations:
Depreciation and amortization                        12,629          8,578
Share-based compensation expense                     1,910           2,385
Provision for losses on accounts and notes           107             190
receivable
Deferred income tax benefit                          (56     )       (1,465  )
Changes in operating assets and liabilities:
Accounts and notes receivable                        (34,575 )       7,553
Merchandise inventories                              21,784          82,160
Accounts payable                                     98,198          (38,279 )
Net change in other assets and liabilities           28,981          11,609
Other, net                                           (465    )       (194    )
Cash provided by operating activities of             154,611         101,897  
continuing operations
                                                                    
Investing activities:
Additions to property and equipment                  (7,513  )       (4,536  )
Additions to computer software and                   (7,264  )       (3,840  )
intangible assets
Proceeds from the sale of property and               44              99       
equipment
Cash used for investing activities of                (14,733 )       (8,277  )
continuing operations
                                                                    
Financing activities:
Cash dividends paid                                  (15,199 )       (14,001 )
Repurchases of common stock                          (2,282  )       (3,750  )
Excess tax benefits related to share-based           207             690
compensation
Proceeds from exercise of stock options              1,792           3,371
Other, net                                           (1,958  )       (1,941  )
Cash used for financing activities of                (17,440 )       (15,631 )
continuing operations
                                                                    
                                                                    
Effect of exchange rate changes on cash and          (1,763  )       -        
cash equivalents
                                                                    
Net increase in cash and cash equivalents            120,675         77,989
Cash and cash equivalents at beginning of            97,888          135,938  
period
Cash and cash equivalents at end of period       $   218,563     $   213,927  

Owens & Minor, Inc.
Financial Statistics and GAAP/Non-GAAP Reconciliations (unaudited)
                          
                                                                             
                                                                             
                           Quarter Ended
(in thousands, except
ratios and per share       3/31/2013   12/31/2012   9/30/2012   6/30/2012   3/31/2012
data)
                                                                             
Consolidated
operating
results:
Net revenue          $     2,275,709 $ 2,324,924  $ 2,179,895 $ 2,185,444 $ 2,217,882
                                                                             
Gross margin         $     279,052   $ 270,774    $ 228,123   $ 211,429   $ 214,328
Gross margin as
a percent of               12.26%      11.65%       10.46%      9.67%       9.66%
revenue
                                                                             
SG&A expenses        $     217,721   $ 211,415    $ 165,320   $ 150,288   $ 155,572
SG&A expenses as a         9.57%       9.09%        7.58%       6.88%       7.01%
percent of revenue
                                                                             
Operating
earnings, as         $     47,884    $ 45,041     $ 46,663    $ 53,177    $ 51,872
reported (GAAP)
Acquisition-related
and exit and               2,010       1,717        7,831       617         -
realignment charges
Operating earnings,  $     49,894    $ 46,758     $ 54,494    $ 53,794    $ 51,872
adjusted (Non-GAAP)
Operating earnings as
a percent of revenue,      2.19%       2.01%        2.50%       2.46%       2.34%
adjusted (Non-GAAP)
                                                                             
Net income, as       $     26,098    $ 24,934     $ 24,597    $ 30,113    $ 29,360
reported (GAAP)
Acquisition-related
and exit and               1,521       1,237        6,588       375         -
realignment charges,
after-tax
Net income,
adjusted             $     27,619    $ 26,171     $ 31,185    $ 30,488    $ 29,360
(Non-GAAP)
                                                                             
Net income per
diluted common       $     0.41      $ 0.39       $ 0.39      $ 0.48      $ 0.46
share, as reported
(GAAP)
Acquisition-related
and exit and               0.03        0.02         0.10        -           -
realignment charges
Net income per
diluted common       $     0.44      $ 0.41       $ 0.49      $ 0.48      $ 0.46
share, adjusted
(Non-GAAP)
                                                                             
Financing:
Cash and cash        $     218,563   $ 97,888     $ 79,667    $ 224,937   $ 213,927
equivalents
Total
interest-bearing     $     216,414   $ 217,591    $ 216,924   $ 213,982   $ 214,184
debt
                                                                             
Stock
information:
Cash dividends       $     0.24      $ 0.22       $ 0.22      $ 0.22      $ 0.22
per common share
Stock price at       $     32.56     $ 28.51      $ 29.88     $ 30.63     $ 30.41
quarter-end

                           Use of Non-GAAP Measures

This 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 Owens & Minor, Inc.'s (the "Company") 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 a substitute 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.

Owens & Minor, Inc.                                                                
Summary Segment Information (unaudited)
(in thousands, except ratios)
                                                                      
                                                                                     
                                                                                     
                        Three Months Ended March 31,
                        2013                             2012
                                      % of                           % of
                                      consolidated                   consolidated
                        Amount        net revenue        Amount      net revenue
  Net revenue:
    Domestic          $ 2,154,715     94.68        %   $ 2,217,882   100.00         %
    International       120,994       5.32               N/A         N/A
       Consolidated   $ 2,275,709     100.00       %   $ 2,217,882   100.00         %
       net revenue
                                                                                     
                                                                                     
                                      % of segment                   % of segment
  Operating earnings                  net revenue                    net revenue
  (loss):
    Domestic          $ 52,907        2.46         %   $ 51,872      2.34           %
    International       (3,013    )   (2.49    )   %     N/A         N/A
    Acquisition-related
    and exit and        (2,010    )   N/A                -           N/A
    realignment charges
       Consolidated
       operating      $ 47,884        2.10         %   $ 51,872      2.34           %
       earnings
                                                                                     
                                                                                     
                                                                                     
  Depreciation and
  amortization:
    Domestic          $ 9,082                          $ 8,578
    International       3,547                            N/A
       Consolidated
       depreciation   $ 12,629                         $ 8,578
       and
       amortization
                                                                                     
                                                                                     
                                                                                     
  Capital
  expenditures: ^(1)
    Domestic          $ 11,602                         $ 8,376
    International       3,175                            N/A
       Consolidated
       capital        $ 14,777                         $ 8,376
       expenditures
                                                                                     
                                                                                     
                        March 31,                        December
                                                         31,
                        2013
                                                         2012
  Total assets:
    Domestic          $ 1,706,767                      $ 1,723,699
    International       395,592                          386,114
       Segment assets   2,102,359                        2,109,813
       Cash and cash    218,563                          97,888
       equivalents
                      $ 2,320,922                      $ 2,207,701
                                                                                     
                                                                                     
                                                                                     
  ^(1) Represents additions to property and equipment and additions to computer
  software and separately acquired intangible assets.

Owens & Minor, Inc.
Net Income Per Common Share (unaudited)
(in thousands, except per share data)
                                                               
                                                                     
                                                                     
                                                                     
                                                                     
                                                  Three Months Ended March 31,
                                                  2013              2012     
  Numerator:
  Net income                                    $ 26,098         $  29,360
  Less: income allocated to unvested              (195     )        (234    )
  restricted shares
  Net income attributable to common               25,903            29,126
  shareholders - basic
  Add: undistributed income attributable to       58                96
  unvested restricted shares - basic
  Less: undistributed income attributable to      (58      )        (96     )
  unvested restricted shares - diluted
  Net income attributable to common             $ 25,903         $  29,126   
  shareholders - diluted
                                                                     
  Denominator:
  Weighted average shares outstanding             62,687            62,802
  — basic
  Dilutive shares - stock options                 58                99       
  Weighted average shares outstanding             62,745            62,901   
  — diluted
                                                                     
                                                                     
  Net income per share attributable to
  common shareholders:
  Basic                                         $ 0.41           $  0.46
  Diluted                                       $ 0.41           $  0.46

Contact:

Owens & Minor, Inc.
Truitt Allcott, 804-723-7555
Director, Investor & Media Relations
truitt.allcott@owens-minor.com
or
Chuck Graves, 804-723-7556
Director, Finance & Investor Relations
chuck.graves@owens-minor.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement