Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $2.7 billion, up 1.5% compared to the prior year [25] - Adjusted net income for the quarter was $43 million or $0.55 per share, compared to $54 million or $0.69 per share last year [31] - Adjusted EBITDA was $138 million versus $170 million reported during Q4 2023 [32] - Gross profit in Q4 was $580 million or 21.5% of net revenue, with margin essentially flat year-over-year [28] Business Line Data and Key Metrics Changes - Patient Direct revenue grew by 5% compared to Q4 2023, with strong growth in sleep supplies and diabetes [27] - The products and health care services segment grew 0.5% overall compared to Q4 2023, with same-store sales growth in medical distribution offset by lower glove pricing [26][20] - Adjusted operating income was $95 million in Q4, an $11 million increase compared to Q3 [30] Market Data and Key Metrics Changes - The IV fluid shortage impacted procedure volume and subsequently sales volume to some distribution customers [26] - Home respiratory therapies such as NIV and oxygen declined year-over-year, but there are expectations for a return to growth in 2025 [27] Company Strategy and Development Direction - The company is focused on optimizing its product and health care services segment while leveraging its Patient Direct platform [9] - Plans to pursue the acquisition of Rotech, which is expected to close in the first half of 2025, are underway [14] - A share repurchase program of up to $100 million has been authorized by the Board of Directors [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the Patient Direct business, citing positive demographic trends and expanding home treatment options [10] - The company expects mid-single-digit revenue growth for 2025, primarily driven by the Patient Direct segment [35] - Management remains focused on reducing debt levels and maintaining a debt to EBITDA leverage between two and three times [38] Other Important Information - The company repaid $647 million of debt over the last two years, demonstrating strong cash flow capabilities [10][33] - A goodwill impairment charge of $305 million was recorded in Q4, primarily related to adverse financial market changes [32] Q&A Session Summary Question: Concerns regarding Rotech's performance - Management indicated there were no surprises in Rotech's results and acknowledged the impact of government reimbursement changes [46][47] Question: Free cash flow and capital deployment strategy - The primary objective is to pay down debt, but share repurchases will be considered if the stock remains undervalued [50] Question: Trends in Patient Direct business - Management noted mid-single-digit growth in Patient Direct, with strong performance in diabetes and sleep supplies, while focusing on improving home respiratory categories [56][57] Question: Impact of tariffs on costs - Tariffs are not significantly impacting the company as most products are not made in China, with minimal exposure to Mexican tariffs [72][78] Question: Future capital deployment and focus areas - The company will focus on Patient Direct and debt repayment, with potential for expansion into other areas in the future [86][87] Question: Insights on the Apria capitated contract - Management stated that the impact of the contract on 2025 results is already baked into the numbers and will not be significant [104][105]

2025 Outlook - The company projects revenue between $10.85 billion and $11.15 billion [7] - The company anticipates a gross margin between 20.75% and 21.25% [7] - Interest expense is estimated to be between $138 million and $142 million [7] - Gross capital expenditures are projected to be between $250 million and $270 million [7] - The adjusted effective tax rate is expected to be between 29.0% and 30.0% [7] - Diluted weighted average shares outstanding are estimated to be approximately 80 million [7] - Adjusted EBITDA is projected to be between $560 million and $590 million [7] - Adjusted EPS is expected to be between $1.60 and $1.85 [7] Assumptions and Caveats - The outlook excludes any potential impacts from the Rotech acquisition, the potential sale of the Products & Healthcare Services segment, and any future share repurchase activity [7] - The company is unable to forecast the most directly comparable GAAP measures without unreasonable effort due to unpredictable elements such as restructuring and acquisition charges [9] - Commodity prices are assumed to be stable, and foreign currency rates are as of December 31, 2024 [7]

Owens & Minor (OMI) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.77%. A quarter ago, it was expected that this medical supply distributor would post earnings of $0.40 per share when it actually produced earnings of $0.42, delivering a surprise of 5%.Over the last four quarters, t ...

Financial Projections - Preliminary revenue for full year 2024 is expected to be between $10.67 billion and $10.70 billion, with a net loss projected between $(378) million and $(355) million[6]. - Adjusted EBITDA for full year 2024 is anticipated to be between $520 million and $525 million, with adjusted EPS ranging from $1.50 to $1.53[6]. - Cash provided by operating activities for full year 2024 is expected to be between $160 million and $165 million[6]. - Gross capital expenditures for full year 2024 are projected to be between $228 million and $233 million[6]. Debt Management - The company plans to raise additional debt to finance the acquisition of Rotech Healthcare Holdings, expected to close in the first half of 2025[3]. - Total debt is projected to be between $1.854 billion and $1.859 billion, with net debt between $1.805 billion and $1.810 billion[6]. - The company reduced total debt by over $240 million during 2024 despite significant reinvestment in the business[4]. Segment Performance - The Patient Direct segment showed solid mid-single digit growth for the full year 2024, with even higher growth in key categories[4]. Impairment Charges - A non-cash goodwill impairment charge of approximately $310 million is expected, impacting net loss per share by about $(4.00)[7]. Upcoming Events - The investor conference call for the fourth quarter and full year 2024 results is scheduled for February 28, 2025[9].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Owens & Minor (OMI) despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Owens & Minor is expected to report quarterly earnings of $0.53 per share, reflecting a year-over-year decrease of 23.2%, while revenues are projected to be $2.68 billion, up 0.8% from the previous year [3]. - The earnings report is scheduled for release on February 28, 2025, and could lead to stock price increases if results exceed expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.92% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.94% suggests that analysts have recently become more optimistic about the company's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [7][8]. - Historical performance shows that Owens & Minor has beaten consensus EPS estimates in the last four quarters, with a recent surprise of +5% [12][13]. Conclusion - Owens & Minor is positioned as a potential earnings-beat candidate, but investors should consider other influencing factors beyond earnings results [14][16].

Core Viewpoint - Pomerantz LLP is investigating claims on behalf of investors of Owens & Minor, Inc regarding potential securities fraud or unlawful business practices by Luna Innovations and its officers or directors [1][2]. Financial Performance - On February 3, 2024, Owens & Minor announced preliminary financial results for Q4 and the year ended December 31, 2024, revealing revenue that fell short of consensus estimates [2]. - The company expects to record a non-cash goodwill impairment charge of approximately $310 million, equating to about ($4.00) net loss per share, primarily due to financial market changes, including a decline in stock price and rising interest rates [2]. - Following this announcement, Owens & Minor's stock price dropped by $5.01 per share, or 35.18%, closing at $9.23 per share on February 3, 2025 [2].

Market Overview - U.S. stocks experienced a decline, with the S&P 500 falling approximately 0.5% on Monday, closing at 6,008.22. The Dow decreased by 0.09% to 44,506.60, while the NASDAQ dropped 0.91% to 19,449.55 [1] - Consumer staples sector saw a rise of 0.7%, while information technology shares fell by 1.4% [1] Construction Spending - U.S. construction spending rose by 0.5% month-over-month, reaching an annual rate of $2,192 billion in December, following a revised 0.2% increase in November [2][10] Commodity Prices - Oil prices increased by 0.6% to $72.95, gold rose by 0.8% to $2,857.30, silver gained 0.8% to $32.530, and copper saw a rise of 1% to $4.3195 [5] European Market Performance - European shares declined, with the eurozone's STOXX 600 falling by 0.87%, Germany's DAX 40 down 1.40%, and France's CAC 40 decreasing by 1.20% [6] Asian Market Performance - Asian markets closed lower, with Japan's Nikkei 225 down 2.66%, Hong Kong's Hang Seng Index falling 0.04%, and India's BSE Sensex decreasing by 0.41% [7] Company-Specific Movements - HCW Biologics Inc. saw a significant increase in shares, rising 131% to $0.6431 after FDA clearance for its Phase 1 trial [9] - Triumph Group, Inc. shares surged 34% to $25.14 following an agreement to go private in a $3 billion deal [9] - GH Research PLC shares increased by 81% to $19.17 after positive Phase 2b trial results for its inhalable depression treatment [9] - Owens & Minor, Inc. shares dropped 32% to $9.68 due to lower-than-expected revenue results [9] - Napco Security Technologies, Inc. shares fell 29% to $26.11 following second-quarter results [9] - Tonix Pharmaceuticals Holding Corp. shares decreased by 55% to $0.1941 after announcing a 1-for-100 reverse stock split [9]

Group 1 - Owens & Minor, Inc. (NYSE: OMI) has an internationally diversified business model and long-term agreements with customers, indicating stability and profitability [1] - Recent acquisitions and capital expenditures are contributing to increases in the company's performance [1] Group 2 - The analysis emphasizes a focus on value investments, particularly in companies trading at close to 10x earnings and offering dividend yields [1]

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].

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]