Owens & Minor(US:OMI)2024-11-04 11:35Financial 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]