Owens & Minor, Inc. (NYSE:OMI) Q1 2022 Earnings Conference Call May 3, 2022 4:30 PM ET Company Participants Ed Pesicka - President and Chief Executive Officer Andy Long - Executive Vice President and Chief Financial Officer Alex Jost - CPA Director, Investor Relations Conference Call Participants Michael Cherny - Bank of America Merrill Lynch A.J. Rice - Credit Suisse Kevin Caliendo - UBS Daniel Grosslight - Citi Eric Coldwell - Baird Michael Minchak - JPMorgan Operator Good day and thank you for standing ...

Part I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including operations, balance sheets, cash flows, and notes on the Apria acquisition and segment reorganization [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Net revenue increased 3.5% to $2.41 billion in Q1 2022, but gross margin, operating income, and net income significantly declined, with diluted EPS dropping to $0.52 Consolidated Statements of Operations (Q1 2022 vs Q1 2021) | Metric | Q1 2022 (in thousands) | Q1 2021 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net revenue | $2,406,952 | $2,326,534 | 3.5% | | Gross margin | $373,448 | $442,751 | (15.7)% | | Operating income | $61,059 | $146,692 | (58.4)% | | Net income | $39,279 | $69,589 | (43.6)% | | Diluted EPS | $0.52 | $0.98 | (46.9)% | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets significantly increased to $5.71 billion by March 31, 2022, primarily due to the Apria acquisition, which also drove a sharp rise in total liabilities to $4.76 billion Consolidated Balance Sheet Highlights | Metric (in thousands) | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total current assets | $2,553,349 | $2,321,812 | | Goodwill | $1,657,159 | $390,185 | | Total assets | $5,707,969 | $3,536,551 | | Total current liabilities | $1,654,295 | $1,344,021 | | Long-term debt | $2,635,314 | $947,540 | | Total liabilities | $4,760,347 | $2,598,050 | | Total equity | $947,622 | $938,501 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved to $79.7 million in Q1 2022, while investing activities used $1.59 billion for the Apria acquisition, largely funded by $1.66 billion from financing activities Cash Flow Summary (Three Months Ended March 31) | Activity (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Cash provided by operating activities | $79,699 | $25,423 | | Cash used for investing activities | $(1,587,236) | $(6,619) | | Cash provided by (used for) financing activities | $1,664,194 | $(80,394) | | Net increase (decrease) in cash | $155,988 | $(63,729) | - The primary use of cash in investing activities was the acquisition of Apria, net of cash acquired, for **$1.58 billion**[16](index=16&type=chunk) - The company raised **$1.69 billion** from the issuance of new debt to fund the acquisition and other corporate purposes[16](index=16&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the company's reorganization into Products & Healthcare Services and Patient Direct segments, the **$1.7 billion** Apria acquisition, and specifics on goodwill, debt, and segment performance - The company reorganized its business into two new segments: **Products & Healthcare Services** and **Patient Direct**, effective Q1 2022[22](index=22&type=chunk)[76](index=76&type=chunk) - On March 29, 2022, the company acquired 100% of Apria, Inc. for approximately **$1.7 billion**, adding **$1.27 billion** to goodwill, assigned to the Patient Direct segment[23](index=23&type=chunk)[31](index=31&type=chunk)[34](index=34&type=chunk) - To fund the Apria acquisition, the company issued **$600 million** of 6.625% senior notes due 2030 and entered into new credit facilities for a **$500 million** Term Loan A and a **$600 million** Term Loan B[46](index=46&type=chunk)[49](index=49&type=chunk) Segment Performance (Three Months Ended March 31) | Segment (in thousands) | Net Revenue 2022 | Net Revenue 2021 | Operating Income 2022 | Operating Income 2021 | | :--- | :--- | :--- | :--- | :--- | | Products & Healthcare Services | $2,134,041 | $2,109,445 | $89,083 | $150,418 | | Patient Direct | $272,911 | $217,089 | $15,793 | $12,263 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 performance, highlighting the Apria acquisition, segment reorganization, revenue growth driven by Patient Direct, and declining profitability due to inflationary pressures and glove pricing dynamics - The company completed the acquisition of Apria, Inc. on March 29, 2022, for approximately **$1.7 billion**, integrating it into the Patient Direct segment[88](index=88&type=chunk) - The Products & Healthcare Services segment's operating income decreased from **$150.4 million** to **$89.1 million** year-over-year, primarily due to glove price changes and accelerating inflationary pressures[89](index=89&type=chunk) - The Patient Direct segment's operating income increased from **$12.3 million** to **$15.8 million** year-over-year, driven by strong revenue growth and operating efficiencies, partially offsetting inflationary pressures[89](index=89&type=chunk) - The company is monitoring the impact of the June 2021 Philips Respironics recall, which affects the Apria business and may lead to significant costs, revenue loss, and patient hesitancy[92](index=92&type=chunk)[93](index=93&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from commodity price volatility, shipping costs, foreign currency, and interest rate changes, with a 100 basis point rate increase potentially reducing pre-tax earnings by **$9.4 million** annually - The company is exposed to price risk for raw materials like polypropylene and nitrile, as well as volatile shipping and freight costs[132](index=132&type=chunk)[134](index=134&type=chunk) - A hypothetical **100 basis point** increase in interest rates would result in a potential annual reduction in pre-tax earnings of approximately **$9.4 million**, based on debt levels at March 31, 2022[136](index=136&type=chunk) - Every **10-cent per gallon** increase in diesel fuel prices is estimated to reduce the Products & Healthcare Services segment's operating income by approximately **$0.2 million** on an annualized basis[137](index=137&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2022, excluding the newly acquired Apria, Inc. as permitted by SEC guidance - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[138](index=138&type=chunk) - The evaluation of internal controls over financial reporting for the period excludes the recently acquired Apria, Inc., which represented **$2.1 billion** of total assets at the time of acquisition[139](index=139&type=chunk) Part II [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) There have been no material developments in any legal proceedings since the disclosures made in the 2021 Annual Report on Form 10-K - Through March 31, 2022, there have been no material developments in any legal proceedings previously reported in the 2021 Annual Report[141](index=141&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, highlighting increased exposure to the home healthcare industry post-Apria acquisition, intense competition, reliance on limited vendors, and complex regulatory requirements including a Corporate Integrity Agreement - The acquisition of Apria has materially increased the company's exposure to risks within the highly competitive and fragmented home healthcare industry[167](index=167&type=chunk) - The company faces significant competition and pricing pressure from national, regional, and local distributors, as well as potential new entrants like large technology companies[143](index=143&type=chunk)[144](index=144&type=chunk) - The business is subject to extensive and complex healthcare laws (e.g., Anti-kickback Statute, False Claims Act, HIPAA), and the acquired Apria business must comply with a **five-year Corporate Integrity Agreement (CIA)**[152](index=152&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - The company's medical gas facilities are subject to stringent FDA and state regulations, and operations involving compressed oxygen carry inherent risks of accidents[161](index=161&type=chunk)[165](index=165&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) As of March 31, 2022, no shares were issued under the company's **$50.0 million** at-the-market equity financing program, leaving the full amount available - As of March 31, 2022, no shares were issued under the company's **$50.0 million** at-the-market equity financing program, leaving the full amount available[168](index=168&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the 10-Q report, including the Apria merger agreement, new debt indentures, credit agreement amendments, and officer certifications - Key exhibits filed with this report include the merger agreement for the Apria acquisition, various debt and credit agreements, and officer certifications[169](index=169&type=chunk)[170](index=170&type=chunk)[172](index=172&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the year ended December 31, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-9810 OWENS & MINOR, INC. (Exact name of registrant as specified in its charter) Virginia 54-1701843 (State or other jurisdiction of incorporation or organiz ...

Owens & Minor, Inc. (NYSE:OMI) Q4 2021 Earnings Conference Call February 23, 2022 8:30 AM ET Company Participants Alex Jost - CPA Director, IR Ed Pesicka - President and CEO Andy Long - EVP and CFO Conference Call Participants Michael Cherny - Bank of America Kevin Caliendo - UBS Jailendra Singh - Credit Suisse Eric Coldwell - Baird Operator Good day and thank you for standing by. Welcome to the Owens & Minor Fourth Quarter and Full Year 2021 Earnings Conference Call. At this time, all participants are in a ...

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Apria, Inc. (APR) Q3 2021 Earnings Conference Call November 4, 2021 5:00 PM ET Company Participants Dan Starck - Chief Executive Officer Debby Morris - Chief Financial Officer Conference Call Participants Jamie Perse - Goldman Sachs Kevin Caliendo - UBS Ralph Giacobbe - Citi Operator Good afternoon, and welcome to Apria's third quarter 2021 earnings conference call and webcast. [Operator instructions] Please note this event is being recorded. Leading today's call are Dan Starck, chief executive officer; and ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-9810 _______________________________________________________ ________________________________________________ FORM 10-Q _________ ...

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Baird's 2021 Global Healthcare Conference September 14, 2021 | Ed Pesicka Baird's 2021 Global Healthcare Conference Safe Harbor This presentation 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 presentation contains certain ''forward-looking'' statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statement ...