Financial Performance - Owens & Minor, Inc. reported a net revenue of $2.72 billion for the three months ended September 30, 2024, representing a 5.0% increase compared to $2.59 billion in the same period of 2023[98]. - The Products & Healthcare Services segment generated operating income of $4.2 million for the three months ended September 30, 2024, down from $19.8 million in the prior year, primarily due to a $10.3 million increase in LIFO charges[92]. - The Patient Direct segment achieved operating income of $79.9 million for the three months ended September 30, 2024, compared to $64.4 million in the same period of 2023, reflecting a revenue growth of 5.9%[94]. - Cost of goods sold increased to $2.16 billion for the three months ended September 30, 2024, up 5.3% from $2.05 billion in the prior year, driven by revenue growth and increased LIFO charges[103]. - Gross profit for the three months ended September 30, 2024, was $559.7 million, a 3.9% increase from $538.5 million in the same period of 2023, with a gross profit margin of 20.57%[106]. - The net loss per share for the three months ended September 30, 2024, was $(0.17), compared to $(0.08) for the same period in 2023[91]. - The company reported a decline in intangible amortization of $6.2 million for the three months ended September 30, 2024, contributing to the net loss per share[91]. Expenses and Charges - Distribution, selling and administrative (DS&A) expenses for the three months ended September 30, 2024 were $469,798,000, an increase of $17,215,000 or 3.8% compared to the same period in 2023[107]. - DS&A expenses as a percentage of net revenue decreased to 17.26% for the three months ended September 30, 2024 from 17.46% in 2023[107]. - Acquisition-related charges for the three months ended September 30, 2024 were $21,097,000, a decrease of $9,120,000 or 30.2% compared to the same period in 2023[107]. - Exit and realignment charges, net for the three months ended September 30, 2024 were $28,880,000, a decrease of $1,300,000 or 4.3% compared to the same period in 2023[107]. - Other operating expenses, net for the three months ended September 30, 2024 increased significantly to $15,727,000, an increase of $14,050,000 or 837.8% compared to the same period in 2023[107]. - Interest expense, net for the three months ended September 30, 2024 decreased to $36,554,000, a decrease of $1,573,000 or 4.1% compared to the same period in 2023[114]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $45,454,000 as of September 30, 2024, a decrease of $197,583,000 or 81.3% compared to December 31, 2023[124]. - Net cash provided by operating activities decreased to $90.5 million in the first nine months of 2024 from $628.9 million in 2023, primarily due to net losses and changes in working capital[125]. - Cash used for investing activities in the first nine months of 2024 included capital expenditures of $157 million, compared to $152 million in 2023, with proceeds from sales and dispositions totaling $84.8 million[126]. - Cash used for financing activities in the first nine months of 2024 was $224.5 million, down from $366.1 million in 2023, including $211 million in debt repayments[127]. - The company had no borrowings under its Receivables Financing Agreement as of September 30, 2024, with a maximum revolving borrowing capacity of $450 million[130]. - The Revolving Credit Agreement provides a revolving borrowing capacity of $450 million, with $870 million in outstanding term loans[131]. - Cash and cash equivalents held by foreign subsidiaries totaled $22.2 million as of September 30, 2024[140]. - The company believes cash generated from operating activities and available financing sources will be sufficient to fund working capital needs and long-term strategic growth[139]. - The company is in compliance with its debt covenants as of September 30, 2024[134]. Acquisitions and Agreements - The company entered into an agreement to acquire Rotech Healthcare Holdings Inc. for $1.36 billion, with a net purchase price of approximately $1.32 billion after anticipated tax benefits[90]. - The company recognized a $5.1 million gain from an agreement with Philips Respironics for previously recalled equipment during the nine months ended September 30, 2024[94]. Risks and Challenges - The company faces risks related to restrictive covenants in credit facilities and existing notes[145]. - There is a potential risk of impairment to goodwill or other long-lived assets[145]. - The company may encounter challenges in responding to technological advances in a timely manner[145]. - There are concerns regarding the profitability of capitation arrangements if actual utilization rates exceed assumptions[145]. - The company is exposed to volatility in the price of its common stock and securities[145]. - Risks related to public health crises, such as the COVID-19 pandemic, continue to be a concern for the company[145]. - The company must adequately respond to performance targets specified by customer contracts[145]. - The outcome of outstanding and future litigation, including product and professional liability claims, remains uncertain[145]. Tax and Foreign Operations - The effective tax rate for the three months ended September 30, 2024 was 7.4%, a decrease from 41.5% in the same period in 2023[121]. - Foreign currency translation had a favorable impact on net revenue of $0.2 million for the three months ended September 30, 2024[102]. - The company is permanently reinvested in its foreign subsidiaries, indicating a long-term investment strategy[140]. - The company has not experienced material changes in quantitative and qualitative market risk disclosures since the last Annual Report[147].

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $2.7 billion, representing a 5% increase compared to the prior year [19] - Gross profit was $560 million, or 20.6% of net revenue, with margins expanding by about 20 basis points from Q2 2024 [23] - GAAP net loss for the quarter was $12.8 million, or a loss of $0.17 per share, compared to a net loss of $6.4 million, or $0.08 per share, in Q3 2023 [26] - Adjusted EBITDA was $142 million, up over 5% from $135 million in Q3 2023 [27] Business Segment Data and Key Metrics Changes - Products and Healthcare Services segment grew 5% overall, with nearly 6% year-over-year growth in Medical Distribution [20] - Patient Direct revenue grew by 6% year-over-year, driven by strong demand in diabetes and sleep supplies [21] - The backlog of new patient starts in Patient Direct has been reduced to nearly half of peak levels seen in spring [22] Market Data and Key Metrics Changes - Prices for key product categories, including gloves, have stabilized recently [11] - The company expects procedural volumes to reset on January 1, 2025, due to changes in health insurance provider dynamics [39] Company Strategy and Development Direction - The company is focused on improving efficiencies and has made significant investments in both segments to drive long-term growth [9][14] - The acquisition of Rotech Healthcare Holdings is expected to close in the first half of 2025, enhancing the Patient Direct offering [15][16] - The company is preparing for the impact of Chinese tariffs on key categories, positioning itself advantageously compared to competitors [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from hurricanes affecting operations but expressed confidence in maintaining momentum and growth [6][17] - The company anticipates continued sequential growth and improving cash flows as it enters 2025 [17] - Management highlighted the importance of addressing supply chain issues and procedural volume delays as key factors influencing guidance [34][35] Other Important Information - The company reduced total debt by nearly $200 million in Q3 2024, bringing year-to-date debt reduction to approximately $210 million [14][28] - The effective tax rate for the quarter was 7.4% for GAAP and 29.3% for adjusted figures [26] Q&A Session Summary Question: Impact of manufacturing supply chains and procedural volumes on EBITDA guidance - Management indicated that supply chain issues and procedural volume delays significantly impacted guidance, with expectations for improvement in Q4 [34][35] Question: Outlook for 2025 and macroeconomic factors - Management discussed the positive impacts of the sleep journey program and potential headwinds from tariffs, emphasizing the reset of procedural volumes in 2025 [39] Question: Sustainability of margins in Patient Direct - Management expressed optimism about margin sustainability due to operational improvements and ongoing efforts to enhance service quality [44] Question: Contribution of global products to growth - Management noted stabilization in pricing for gloves and slow growth in new products, with improvements in international business [46] Question: Free cash flow expectations - Management confirmed expectations for positive free cash flow in Q4, despite a softer Q3 due to inventory build [48][50] Question: Factors driving patient backlog and resolution timeline - Management attributed the backlog primarily to manual processes and incremental demand, with expectations for improvement as eligibility verification issues are resolved [56]

Core Viewpoint - Owens & Minor reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, but down from $0.44 per share a year ago, indicating a 5% earnings surprise [1][2] Financial Performance - The company achieved revenues of $2.72 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.25% and showing an increase from $2.59 billion year-over-year [2] - Over the last four quarters, Owens & Minor has exceeded consensus EPS estimates four times and topped revenue estimates twice [2] Stock Performance - Owens & Minor shares have declined approximately 30.7% since the beginning of the year, contrasting with the S&P 500's gain of 20.1% [3] - The current Zacks Rank for Owens & Minor is 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.61 on revenues of $2.74 billion, and for the current fiscal year, it is $1.57 on revenues of $10.71 billion [7] - The trend of estimate revisions for Owens & Minor is currently mixed, which may change following the recent earnings report [6] Industry Context - The Medical - Products industry, to which Owens & Minor belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Consolidated revenue for Q3 2024 was $2.7 billion, reflecting a year-over-year growth of 5%[2] - Patient Direct revenue reached $687 million, up 6% year-over-year, driven by strong demand in diabetes and sleep supplies[4] - Products & Healthcare Services revenue totaled $2.0 billion, a 5% increase compared to Q3 2023, supported by strong same-store sales in Medical Distribution[4] - GAAP net loss for Q3 2024 was $(13) million, or $(0.17) per share, compared to a net loss of $(6.4) million, or $(0.08) per share in Q3 2023[2][4] - Adjusted EBITDA for Q3 2024 was $142 million, representing a 5% increase year-over-year[2][4] - Consolidated net revenue for the three months ended September 30, 2024, was $2,721,125, a 5.0% increase from $2,591,742 in the same period of 2023[17] - Net loss for the three months ended September 30, 2024, was $12,770 thousand, compared to a net loss of $6,426 thousand for the same period in 2023, representing a 98.5% increase in losses[15] - Adjusted operating income for the three months ended September 30, 2024, was $84,165, slightly down from $84,238 in the prior year[22] - The net loss per common share for the three months ended September 30, 2024, was $(0.17), compared to $(0.08) in the same period of 2023[20] Debt and Assets - Total debt was reduced by $198 million in Q3 2024, including the full redemption of the 2024 senior notes[2][4] - Total current assets increased to $2,116,538 thousand as of September 30, 2024, compared to $2,102,790 thousand at December 31, 2023, reflecting a growth of 0.65%[14] - Cash and cash equivalents decreased significantly to $45,454 thousand from $243,037 thousand, a decline of 81.3%[14] - Total liabilities increased to $4,206,690 thousand as of September 30, 2024, from $4,169,156 thousand at December 31, 2023, an increase of 0.9%[14] - Long-term debt, excluding current portion, decreased to $1,842,348 thousand from $1,890,598 thousand, a reduction of 2.5%[14] - Total debt as reported (GAAP) decreased to $1,884,974,000 as of September 30, 2024, from $2,097,502,000 as of December 31, 2023, reflecting a reduction of approximately 10.1%[26] - Net debt (non-GAAP) as of September 30, 2024, was $1,839,520,000, compared to $1,854,465,000 at the end of 2023, showing a decrease of about 0.8%[26] Future Projections - The company projects 2024 revenue to be in the range of $10.6 billion to $10.8 billion[5] - Adjusted EBITDA for 2024 is expected to be between $540 million and $550 million[5] - Adjusted EPS for 2024 is forecasted to be in the range of $1.45 to $1.55[5] - The company anticipates benefits from seasonality and investments made in previous quarters as it approaches 2025[3] Cash Flow and Investments - Cash provided by operating activities for the three months ended September 30, 2024, was $27,307 thousand, down from $157,435 thousand in the prior year, a decrease of 82.7%[15] - Cash used for investing activities was $27,189 thousand for the three months ended September 30, 2024, compared to $32,672 thousand in the same period of 2023, a decrease of 16.5%[15] - Cash, cash equivalents, and restricted cash at the end of the period was $75,090 thousand, down from $250,160 thousand at the end of September 30, 2023, a decline of 70%[16] Segment Performance - Operating income for the Patient Direct segment increased to $79,932, representing 11.64% of net revenue, compared to $64,435 or 9.94% in the prior year[17] - Consolidated net revenue for the nine months ended September 30, 2024, reached $8,004,810, up from $7,677,817 in 2023, with a slight decrease in the Products & Healthcare Services segment percentage from 75.41% to 75.20%[18] - Capital expenditures for the Patient Direct segment were $127,596 for the nine months ended September 30, 2024, compared to $133,610 in the same period of 2023[18] - Consolidated capital expenditures for the nine months ended September 30, 2024, totaled $156,726, an increase from $151,567 in the previous year[18] Charges and Expenses - The company incurred acquisition-related charges and intangible amortization of $61,395 for the nine months ended September 30, 2024, down from $74,609 in the previous year[22] - Exit and realignment charges for the three months ended September 30, 2024, were $28,880,000, compared to $30,180,000 for the same period in 2023, indicating a reduction of approximately 4.3%[27] - Acquisition-related charges for the three months ended September 30, 2024, totaled $21,097,000, down from $30,217,000 in the same period of 2023, representing a decrease of about 30%[24] - The company incurred litigation and related charges of $9,984,000 during the three months ended September 30, 2024, with no comparable charges in the same period of 2023[24] - Stock compensation expenses increased to $5,339,000 for the three months ended September 30, 2024, compared to $4,616,000 in the same period of 2023, reflecting an increase of approximately 15.6%[24] Other Notable Events - The company reported a gain of $7,400,000 on the sale of its corporate headquarters for the nine months ended September 30, 2024[27] - The company emphasizes the use of non-GAAP measures to provide a clearer view of its core business performance, excluding items that do not reflect ongoing operations[34]

Financial Performance - For the three months ended June 30, 2024, net revenue increased by $107.8 million, or 4.2%, to $2.67 billion compared to the same period in 2023[85]. - The Products & Healthcare Services segment operating income rose to $11.5 million for the three months ended June 30, 2024, compared to $2.9 million in the prior year, driven by a revenue growth of 4.1%[80]. - The Patient Direct segment reported operating income of $64.8 million for the three months ended June 30, 2024, reflecting a revenue growth of 4.4%[80]. - Gross profit for the three months ended June 30, 2024, was $544.2 million, representing a 4.8% increase from the prior year, with a gross profit margin of 20.37%[91]. - Operating expenses for the three months ended June 30, 2024, increased by $14.3 million, or 3.1%, primarily due to incremental costs to support revenue growth[92]. - Cost of goods sold for the three months ended June 30, 2024, was $2.13 billion, reflecting an increase of $83.1 million, or 4.1%, aligned with revenue growth[87]. - The net loss per share for the three months ended June 30, 2024, was $(0.42), compared to $(0.37) for the same period in 2023[79]. Acquisition and Investments - The company entered into an agreement to acquire Rotech Healthcare Holdings Inc. for $1.36 billion, with a net purchase price of approximately $1.32 billion after anticipated tax benefits[77]. - The company expects the acquisition of Rotech to close by the end of 2024, subject to customary closing conditions[77]. - Cash used for investing activities in the first six months of 2024 included capital expenditures of $95.2 million, compared to $101 million in 2023[107]. - The company has $48.4 million in legally binding lease commitments for a center of excellence for medical supplies and logistics[121]. Tax and Interest - The income tax provision for the three months ended June 30, 2024, was $15.1 million, a significant increase of 655.4% compared to a benefit of $(2.7) million in 2023, primarily due to a one-time income tax charge of $17.2 million[102]. - Interest expense, net decreased to $35.9 million for the three months ended June 30, 2024, down 11.9% from $40.7 million in 2023, and for the six months, it decreased by 13.7% to $71.6 million from $82.9 million[100]. Cash Flow and Working Capital - Cash provided by operating activities for the six months ended June 30, 2024, was $63.2 million, a decrease from $471.5 million in the same period of 2023[105]. - The company believes cash generated from operating activities and available financing sources will be sufficient to meet its working capital needs[119]. Accounts Receivable and Inventory - Accounts receivable, net increased to $662.4 million as of June 30, 2024, from $598.3 million at the end of 2023, with DSO increasing to 22.1 days from 20.5 days[104]. - Merchandise inventories rose to $1.23 billion as of June 30, 2024, compared to $1.11 billion at the end of 2023, with inventory days increasing to 52.7 days from 49.0 days[104]. - Total accounts receivable sold under the Receivables Purchase Agreement (RPA) were $573 million and $1.1 billion for the three and six months ended June 30, 2024, with net cash proceeds of $569 million and $1.1 billion respectively[116]. Liabilities and Compliance - Total liabilities for the Guarantor Group rose from $4,243,230 thousand at December 31, 2023 to $4,521,706 thousand at June 30, 2024[124]. - The company maintained compliance with its debt covenants as of June 30, 2024[115]. Other Financial Metrics - The company experienced a foreign currency translation impact of $(1.9) million on net revenue for the three months ended June 30, 2024, compared to the prior year[86]. - Intangible amortization was $16.3 million and $36.5 million for the three and six months ended June 30, 2024, compared to $20.9 million and $41.8 million for the same periods in 2023, reflecting a reduction of $4.7 million and $5.3 million as certain intangible assets are fully amortized[96]. - Exit and realignment charges, net were $29.3 million and $56.6 million for the three and six months ended June 30, 2024, primarily related to the Operating Model Realignment Program, which incurred $22.9 million and $56.4 million in costs[97]. - Losses on the sale of accounts receivable were $3.9 million and $2.9 million for the three months ended June 30, 2024 and 2023 respectively[117]. - The Guarantor Group reported net revenue of $5,201,722 thousand and a net loss of $58,636 thousand for the six months ended June 30, 2024[123]. - Total current assets for the Collateral Group increased from $1,280,045 thousand at December 31, 2023 to $1,495,870 thousand at June 30, 2024[125]. - Cash and cash equivalents held by foreign subsidiaries totaled $21.8 million and $22.0 million at June 30, 2024 and December 31, 2023 respectively[120]. - The company is permanently reinvested in its foreign subsidiaries as of June 30, 2024[120].

Financial Data and Key Metrics - Revenue for Q2 2024 was $2.7 billion, up 4% YoY, driven by growth in both the Products & Healthcare Services and Patient Direct segments [11] - Gross profit was $544 million, or 20.4% of net revenue, reflecting an 11 basis point margin expansion YoY [12] - GAAP operating income was $20.3 million, up 87% YoY, while adjusted operating income was $76.3 million, up 23% YoY [13] - Adjusted EBITDA was $127 million, up 12% YoY [15] - Operating cash flow for the quarter was $116 million, allowing the company to reduce net debt by $70 million [15] Business Segment Performance - Products & Healthcare Services segment revenue was $2 billion, up 4% YoY, driven by strong same-store sales growth and new business wins [6] - Medical Distribution division within P&HS grew 5% YoY [11] - Patient Direct segment revenue was $660 million, up 4% YoY, driven by growth in diabetes and sleep supplies [7] - Respiratory therapies such as NIV and oxygen underperformed expectations in the Patient Direct segment [12] Market and Strategic Developments - The company announced a definitive agreement to acquire Rotech Healthcare Holdings, Inc, which aligns with its strategy to expand the Patient Direct business and achieve a long-term revenue target of $5 billion by 2028 [4] - The acquisition of Rotech is expected to enhance capabilities in respiratory and home medical equipment, improving service levels for patients, providers, and payers [9] - The company is focusing on optimizing the P&HS segment through cost efficiencies, expanding its branded product portfolio, and entering adjacent markets [7] Management Commentary on Operating Environment and Outlook - Management expects stronger performance in the second half of 2024, consistent with historical trends [5] - The company remains committed to its Vision 2028 plan, which includes driving efficiencies, improving customer service, and building organic growth channels [10] - Management highlighted demographic tailwinds in the Patient Direct segment, with 133 million Americans suffering from chronic conditions, supporting long-term growth [8] - The company does not currently see an impact from GLP-1 medications on its diabetic or sleep apnea patient populations [9] Other Important Information - The company recorded a one-time tax charge of $17 million related to past transfer pricing methodology, with an expected cash payment of $30-35 million in the second half of 2024 [14] - Adjusted net income for the quarter doubled to $28.2 million, or $0.36 per share, from $14.2 million, or $0.18 per share, in Q2 2023 [15] - The company plans to redeem $171 million of notes due in December 2024 with cash on hand [16] Q&A Session Summary Question: Opportunities for margin expansion in the back half of the year - Management highlighted operational efficiencies, sourcing improvements, and automation in warehouses as key drivers for margin expansion [19][20] Question: Cash flow dynamics and customer onboarding - The company expects improved cash flow in the second half of the year due to better working capital management and seasonality in the Patient Direct segment [21][22][23] Question: Impact of shipping costs and tariffs - Shipping costs are expected to create a headwind, but the company has mitigated some impact by pre-shipping inventory and focusing on nearshore manufacturing [28][29] Question: Patient Direct segment growth and backlog - The company is clearing a backlog of sleep patients, which is expected to drive stronger growth in the second half of the year [32][33] Question: Gross margin trends - Gross margins are expected to improve in the second half of the year, driven by mix shifts in the Patient Direct segment [37] Question: Feedback on Rotech acquisition - Initial feedback from payers and providers has been positive, with expectations of improved patient experience and service efficiency [39][40] Question: Legal expenses related to Apria - Legal expenses in Q2 were related to a one-time settlement and are not expected to recur [46] Question: Medical Distribution growth breakdown - Growth in the Medical Distribution division was driven by a combination of same-store sales and new customer wins [48]

LOS ANGELES, Aug. 2, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Owens & Minor, Inc. ("Owens & Minor" or "the Company") (NYSE: OMI) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Owens & Minor announced on June 24, 2024, that its Executive Vice President ...

Owens & Minor (OMI) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this medical supply distributor would post earnings of $0.17 per share when it actually produced earnings of $0.19, delivering a surprise of 11.76%. Over the last four quart ...

Exhibit 99.1 Owens & Minor Reports Second Quarter 2024 Financial Results Top Line Expansion Driven by Solid Growth in Both Segments Second Quarter Operating Cash Flow of $116 Million Drove $71 million in Debt Reduction Expanding Patient Direct Segment with Agreement to Acquire Rotech Healthcare Holdings RICHMOND, VA – August 2, 2024 – Owens & Minor, Inc. (NYSE: OMI) today reported financial results for the second quarter ended June 30, 2024. Key Highlights: ● Consolidated revenue of $2.7 billion in the seco ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Owens & Minor (OMI) , which belongs to the Zacks Medical - Products industry, could be a great candidate to consider. This medical supply distributor has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 6.62%. For the last report ...