Classified Products & Healthcare Services Segment as Discontinued Operations
Continuing Operations, Patient Direct, Showed Solid Performance and Growth
Owens & Minor, Inc. (NYSE:OMI) today reported financial results for the second quarter ended June 30, 2025. In connection with a likely sale of the Company's Products & Healthcare Services segment, the results herein, unless otherwise noted, reflect the Company's continuing operations which primarily represent what was previously the Patient Direct segment and certain functional operations.
"We are in the final stages of our robust process for the divestiture of the Products & Healthcare Services segment, and, as a result, have classified this segment as discontinued operations. We are looking forward to concluding the sale of the business and working with a buyer who has the vision and greater flexibility to better support our customers and long-term growth," said Ed Pesicka, Owens & Minor's Chief Executive Officer.
Mr. Pesicka concluded, "I am excited about the opportunities ahead as we transition into a focused, pure-play Patient Direct business. Building on the momentum gained since we entered the Patient Direct space eight years ago, and supported by favorable demographic trends and meaningful scale, we are confident in our ability to lead as the market continues to evolve."
Second Quarter Results(1) |
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($ in millions, except per share data) |
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YTD |
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YTD |
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2Q25 |
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2Q24 |
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2025 |
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2024 |
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Revenue |
|
$ |
681.9 |
|
$ |
660.4 |
|
$ |
1,355.8 |
|
$ |
1,298.2 |
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Loss from continuing operations, net of tax, GAAP |
|
$ |
(83.8) |
|
$ |
(6.7) |
|
$ |
(87.6) |
|
$ |
(20.1) |
Adj. net income from continuing operations, Non-GAAP |
|
$ |
20.5 |
|
$ |
19.3 |
|
$ |
43.7 |
|
$ |
21.9 |
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Adj. EBITDA, Non-GAAP |
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$ |
96.6 |
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$ |
91.1 |
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$ |
192.7 |
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$ |
160.3 |
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Loss from continuing operations, net of tax per common share, GAAP |
|
$ |
(1.09) |
|
$ |
(0.09) |
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$ |
(1.14) |
|
$ |
(0.26) |
Adj. net income from continuing operations per share, Non-GAAP |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.55 |
|
$ |
0.28 |
(1) Reconciliations of the differences between the non-GAAP financial measures presented in this release and their most directly comparable GAAP financial measures are included in the tables below. |
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2025 Continuing Operations Financial Outlook
The Company will provide its 2025 financial outlook for continuing operations during its earnings conference call this morning at 8:30 a.m. EDT.
Investor Conference Call for Second Quarter 2025 Financial Results
Owens & Minor will host a conference call for investors and analysts on Monday, August 11, 2025, at 8:30 a.m. EDT. Participants may access the call via the toll-free dial-in number at 1-888-300-2035, or the toll dial-in number at 1-646-517-7437. The conference ID access code is 1058917. All interested stakeholders are encouraged to access the simultaneous live webcast by visiting the Investor Relations page of the Owens & Minor website available at investors.owens-minor.com/events-and-presentations/. A replay of the webcast can be accessed following the presentation at the link provided above.
Safe Harbor
This release 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 release contains certain "forward looking" statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the statements in this release regarding our future prospects and performance, including our expectations with respect to our financial performance, our 2025 financial results, Owens & Minor's ability to successfully complete the sale of the P&HS business in any specific transaction on favorable terms or at all, our cost saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including our ability to address macro and market conditions. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Investors should refer to Owens & Minor's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025, including the section captioned "Item 1A. Risk Factors," as applicable, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause the Company's actual results to differ materially from its current estimates. These filings are available at www.owens-minor.com. Given these risks and uncertainties, Owens & Minor can give no assurance that any forward-looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them. Owens & Minor specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
About Owens & Minor
Owens & Minor, Inc. (NYSE:OMI) is a Fortune 500 global healthcare solutions company providing essential products and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria®, Byram® and HALYARD*, have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care™. For more information about Owens & Minor and our affiliated brands, visit owens-minor.com or follow us on LinkedIn and Instagram.
* Registered Trademark or Trademark of O&M Halyard or its affiliates.
Owens & Minor, Inc.
Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share data)
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Three Months Ended June 30, |
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|
2025 |
|
|
2024 |
|
||
Net revenue |
|
$ |
681,917 |
|
|
$ |
660,401 |
|
Operating costs and expenses: |
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|
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Cost of net revenue |
|
|
357,315 |
|
|
|
344,372 |
|
Selling, general and administrative expenses |
|
|
267,853 |
|
|
|
269,919 |
|
Transaction breakage fee |
|
|
80,000 |
|
|
|
— |
|
Acquisition-related charges and intangible amortization |
|
|
13,918 |
|
|
|
13,761 |
|
Exit and realignment charges, net |
|
|
2,541 |
|
|
|
15,427 |
|
Total operating costs and expenses |
|
|
721,627 |
|
|
|
643,479 |
|
Operating (loss) income |
|
|
(39,710 |
) |
|
|
16,922 |
|
Interest expense, net |
|
|
26,009 |
|
|
|
25,588 |
|
Transaction financing fees, net |
|
|
18,288 |
|
|
|
— |
|
Other expense, net |
|
|
942 |
|
|
|
816 |
|
Loss from continuing operations before income taxes |
|
|
(84,949 |
) |
|
|
(9,482 |
) |
Income tax benefit |
|
|
(1,127 |
) |
|
|
(2,740 |
) |
Loss from continuing operations, net of tax |
|
|
(83,822 |
) |
|
|
(6,742 |
) |
Loss from discontinued operations, net of tax |
|
|
(785,236 |
) |
|
|
(25,171 |
) |
Net loss |
|
$ |
(869,058 |
) |
|
$ |
(31,913 |
) |
|
|
|
|
|
|
|
||
Basic loss per common share |
|
|
|
|
|
|
||
Loss from continuing operations, net of tax |
|
$ |
(1.09 |
) |
|
$ |
(0.09 |
) |
Loss from discontinued operations, net of tax |
|
|
(10.21 |
) |
|
|
(0.33 |
) |
Net loss |
|
$ |
(11.30 |
) |
|
$ |
(0.42 |
) |
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Diluted loss per common share |
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Loss from continuing operations, net of tax |
|
$ |
(1.09 |
) |
|
$ |
(0.09 |
) |
Loss from discontinued operations, net of tax |
|
|
(10.21 |
) |
|
|
(0.33 |
) |
Net loss |
|
$ |
(11.30 |
) |
|
$ |
(0.42 |
) |
Owens & Minor, Inc.
Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share data)
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Six Months Ended June 30, |
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|
2025 |
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|
2024 |
|
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Net revenue |
|
$ |
1,355,801 |
|
|
$ |
1,298,244 |
|
Operating costs and expenses: |
|
|
|
|
|
|
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Cost of net revenue |
|
|
711,957 |
|
|
|
682,623 |
|
Selling, general and administrative expenses |
|
|
530,223 |
|
|
|
540,132 |
|
Transaction breakage fee |
|
|
80,000 |
|
|
|
— |
|
Acquisition-related charges and intangible amortization |
|
|
37,374 |
|
|
|
28,050 |
|
Exit and realignment charges, net |
|
|
16,166 |
|
|
|
23,547 |
|
Total operating costs and expenses |
|
|
1,375,720 |
|
|
|
1,274,352 |
|
Operating (loss) income |
|
|
(19,919 |
) |
|
|
23,892 |
|
Interest expense, net |
|
|
50,223 |
|
|
|
50,997 |
|
Transaction financing fees, net |
|
|
18,288 |
|
|
|
— |
|
Other expense, net |
|
|
1,917 |
|
|
|
1,701 |
|
Loss from continuing operations before income taxes |
|
|
(90,347 |
) |
|
|
(28,806 |
) |
Income tax benefit |
|
|
(2,715 |
) |
|
|
(8,671 |
) |
Loss from continuing operations, net of tax |
|
|
(87,632 |
) |
|
|
(20,135 |
) |
Loss from discontinued operations, net of tax |
|
|
(806,408 |
) |
|
|
(33,664 |
) |
Net loss |
|
$ |
(894,040 |
) |
|
$ |
(53,799 |
) |
|
|
|
|
|
|
|
||
Basic loss per common share |
|
|
|
|
|
|
||
Loss from continuing operations, net of tax |
|
$ |
(1.14 |
) |
|
$ |
(0.26 |
) |
Loss from discontinued operations, net of tax |
|
|
(10.46 |
) |
|
|
(0.44 |
) |
Net loss |
|
$ |
(11.60 |
) |
|
$ |
(0.70 |
) |
|
|
|
|
|
|
|
||
Diluted loss per common share |
|
|
|
|
|
|
||
Loss from continuing operations, net of tax |
|
$ |
(1.14 |
) |
|
$ |
(0.26 |
) |
Loss from discontinued operations, net of tax |
|
|
(10.46 |
) |
|
|
(0.44 |
) |
Net loss |
|
$ |
(11.60 |
) |
|
$ |
(0.70 |
) |
Owens & Minor, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(dollars in thousands)
|
|
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|
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|
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|
|
|
|
|
|
June 30, 2025 |
|
December 31, 2024 |
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Assets |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
38,258 |
|
|
$ |
27,572 |
Accounts receivable, net |
|
|
196,379 |
|
|
|
218,270 |
Inventories |
|
|
69,227 |
|
|
|
67,581 |
Other current assets |
|
|
104,011 |
|
|
|
82,240 |
Current assets of discontinued operations |
|
|
1,890,638 |
|
|
|
1,625,354 |
Total current assets |
|
|
2,298,513 |
|
|
|
2,021,017 |
Patient service equipment and other fixed assets, net |
|
|
259,301 |
|
|
|
249,283 |
Operating lease assets |
|
|
120,188 |
|
|
|
126,928 |
Goodwill |
|
|
1,228,140 |
|
|
|
1,228,140 |
Intangible assets, net |
|
|
194,924 |
|
|
|
210,056 |
Other assets, net |
|
|
53,479 |
|
|
|
89,539 |
Noncurrent assets of discontinued operations |
|
|
— |
|
|
|
731,193 |
Total assets |
|
$ |
4,154,545 |
|
|
$ |
4,656,156 |
Liabilities and equity |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
357,037 |
|
|
$ |
359,927 |
Accrued payroll and related liabilities |
|
|
52,508 |
|
|
|
73,678 |
Current portion of long-term debt |
|
|
383,000 |
|
|
|
42,866 |
Other current liabilities |
|
|
421,739 |
|
|
|
294,685 |
Current liabilities of discontinued operations |
|
|
1,460,239 |
|
|
|
1,080,896 |
Total current liabilities |
|
|
2,674,523 |
|
|
|
1,852,052 |
Long-term debt, excluding current portion |
|
|
1,594,745 |
|
|
|
1,798,393 |
Operating lease liabilities, excluding current portion |
|
|
80,982 |
|
|
|
89,466 |
Deferred income taxes, net |
|
|
345 |
|
|
|
19,436 |
Other liabilities |
|
|
84,960 |
|
|
|
72,551 |
Noncurrent liabilities of discontinued operations |
|
|
— |
|
|
|
237,894 |
Total liabilities |
|
|
4,435,555 |
|
|
|
4,069,792 |
Total (deficit) equity |
|
|
(281,010 |
) |
|
|
586,364 |
Total liabilities and equity |
|
$ |
4,154,545 |
|
|
$ |
4,656,156 |
Owens & Minor, Inc.
Consolidated Statements of Cash Flows (unaudited)
(dollars in thousands)
|
|
|
|
|
|
|
||
|
|
Three Months Ended June 30, |
||||||
|
|
2025 |
|
|
2024 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(869,058 |
) |
|
$ |
(31,913 |
) |
Adjustments to reconcile net loss to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
59,399 |
|
|
|
63,879 |
|
Goodwill impairment charge |
|
|
106,389 |
|
|
|
— |
|
Loss on classification to held for sale |
|
|
649,140 |
|
|
|
— |
|
Share-based compensation expense |
|
|
8,061 |
|
|
|
6,735 |
|
Deferred income tax benefit |
|
|
(6,068 |
) |
|
|
(5,370 |
) |
Changes in operating lease right-of-use assets and lease liabilities |
|
|
(41 |
) |
|
|
2,627 |
|
Gain from sale and dispositions of patient service equipment and other fixed assets |
|
|
(3,969 |
) |
|
|
(12,257 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
30,262 |
|
|
|
6,845 |
|
Inventories |
|
|
119,013 |
|
|
|
(87,665 |
) |
Accounts payable |
|
|
(12,344 |
) |
|
|
150,445 |
|
Net change in other assets and liabilities |
|
|
(48,236 |
) |
|
|
20,100 |
|
Other, net |
|
|
5,062 |
|
|
|
2,723 |
|
Cash provided by operating activities |
|
|
37,610 |
|
|
|
116,149 |
|
Investing activities: |
|
|
|
|
|
|
||
Additions to patient service equipment and other fixed assets |
|
|
(67,879 |
) |
|
|
(44,382 |
) |
Proceeds from sale of patient service equipment and other fixed assets |
|
|
18,120 |
|
|
|
17,488 |
|
Additions to computer software |
|
|
(1,658 |
) |
|
|
(1,418 |
) |
Other, net |
|
|
(1,500 |
) |
|
|
(6,858 |
) |
Cash used for investing activities |
|
|
(52,917 |
) |
|
|
(35,170 |
) |
Financing activities: |
|
|
|
|
|
|
||
Borrowings under amended Receivables Financing Agreement |
|
|
— |
|
|
|
462,300 |
|
Repayments under amended Receivables Financing Agreement |
|
|
— |
|
|
|
(528,000 |
) |
Borrowings under Revolving Credit Facility |
|
|
853,200 |
|
|
|
— |
|
Repayments under Revolving Credit Facility |
|
|
(815,700 |
) |
|
|
— |
|
Repayments of debt |
|
|
— |
|
|
|
(7,750 |
) |
Repurchase of common stock |
|
|
(5,153 |
) |
|
|
— |
|
Other, net |
|
|
(648 |
) |
|
|
(4,790 |
) |
Cash provided by (used for) financing activities |
|
|
31,699 |
|
|
|
(78,240 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
1,259 |
|
|
|
(64 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
|
17,651 |
|
|
|
2,675 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
59,436 |
|
|
|
270,794 |
|
Cash, cash equivalents and restricted cash at end of period(1) |
|
$ |
77,087 |
|
|
$ |
273,469 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Income taxes paid, net |
|
$ |
5,333 |
|
|
$ |
2,875 |
|
Interest paid |
|
$ |
38,358 |
|
|
$ |
52,608 |
|
Noncash investing activity: |
|
|
|
|
|
|
||
Unpaid purchases of patient service equipment and other fixed assets at end of period |
|
$ |
73,437 |
|
|
$ |
76,373 |
|
(1) |
This amount includes cash from discontinued operations of $39 million and $30 million as of June 30, 2025 and March 31, 2025. There was no restricted cash as of June 30, 2025 and March 31, 2025. | |
Owens & Minor, Inc.
Consolidated Statements of Cash Flows (unaudited)
(dollars in thousands)
|
|
|
|
|
|
|
||
|
Six Months Ended June 30, |
|||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(894,040 |
) |
|
$ |
(53,799 |
) |
Adjustments to reconcile net loss to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
120,552 |
|
|
|
137,974 |
|
Goodwill impairment charge |
|
|
106,389 |
|
|
|
— |
|
Loss on classification to held for sale |
|
|
649,140 |
|
|
|
— |
|
Share-based compensation expense |
|
|
14,989 |
|
|
|
13,601 |
|
Deferred income tax benefit |
|
|
(12,308 |
) |
|
|
(9,029 |
) |
Changes in operating lease right-of-use assets and lease liabilities |
|
|
14,411 |
|
|
|
3,766 |
|
Gain from sale and dispositions of patient service equipment and other fixed assets |
|
|
(9,322 |
) |
|
|
(27,876 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
141,875 |
|
|
|
(68,118 |
) |
Inventories |
|
|
(155,576 |
) |
|
|
(123,077 |
) |
Accounts payable |
|
|
145,324 |
|
|
|
203,371 |
|
Net change in other assets and liabilities |
|
|
(124,712 |
) |
|
|
(19,517 |
) |
Other, net |
|
|
5,822 |
|
|
|
5,891 |
|
Cash provided by operating activities |
|
|
2,544 |
|
|
|
63,187 |
|
Investing activities: |
|
|
|
|
|
|
||
Additions to patient service equipment and other fixed assets |
|
|
(123,576 |
) |
|
|
(90,379 |
) |
Proceeds from sale of patient service equipment and other fixed assets |
|
|
35,004 |
|
|
|
67,026 |
|
Additions to computer software |
|
|
(10,635 |
) |
|
|
(4,829 |
) |
Other, net |
|
|
(1,910 |
) |
|
|
(8,858 |
) |
Cash used for investing activities |
|
|
(101,117 |
) |
|
|
(37,040 |
) |
Financing activities: |
|
|
|
|
|
|
||
Borrowings under amended Receivables Financing Agreement |
|
|
— |
|
|
|
667,300 |
|
Repayments under amended Receivables Financing Agreement |
|
|
— |
|
|
|
(667,300 |
) |
Borrowings under Revolving Credit Facility |
|
|
1,630,184 |
|
|
|
— |
|
Repayments under Revolving Credit Facility |
|
|
(1,495,184 |
) |
|
|
— |
|
Repayments of debt |
|
|
— |
|
|
|
(12,375 |
) |
Repurchase of common stock |
|
|
(6,656 |
) |
|
|
— |
|
Other, net |
|
|
(3,867 |
) |
|
|
(12,545 |
) |
Cash provided by (used for) financing activities |
|
|
124,477 |
|
|
|
(24,920 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
1,801 |
|
|
|
(682 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
|
27,705 |
|
|
|
545 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
49,382 |
|
|
|
272,924 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
77,087 |
|
|
$ |
273,469 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Income taxes paid, net |
|
$ |
5,458 |
|
|
$ |
5,240 |
|
Interest paid |
|
$ |
65,845 |
|
|
$ |
70,819 |
|
Noncash investing activity: |
|
|
|
|
|
|
||
Unpaid purchases of patient service equipment and other fixed assets at end of period |
|
$ |
73,437 |
|
|
$ |
76,373 |
|
(1) |
This amount includes cash from discontinued operations of $39 million and $22 million as of June 30, 2025 and December 31, 2024. There was no restricted cash as of June 30, 2025 and December 31, 2024. |
|
Owens & Minor, Inc.
Net Loss Per Common Share (unaudited)
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
||
|
|
Three Months Ended June 30, |
||||||
|
|
2025 |
|
|
2024 |
|
||
Loss from continuing operations, net of tax |
|
$ |
(83,822 |
) |
|
$ |
(6,742 |
) |
Loss from discontinued operations, net of tax |
|
|
(785,236 |
) |
|
|
(25,171 |
) |
Net loss |
|
$ |
(869,058 |
) |
|
$ |
(31,913 |
) |
|
|
|
|
|
|
|
||
Weighted average shares outstanding - basic |
|
|
76,935 |
|
|
|
76,727 |
|
Dilutive shares |
|
|
— |
|
|
|
— |
|
Weighted average shares outstanding - diluted |
|
|
76,935 |
|
|
|
76,727 |
|
|
|
|
|
|
|
|
||
Basic loss per common share |
|
|
|
|
|
|
||
Loss from continuing operations, net of tax |
|
$ |
(1.09 |
) |
|
$ |
(0.09 |
) |
Loss from discontinued operations, net of tax |
|
|
(10.21 |
) |
|
|
(0.33 |
) |
Net loss |
|
$ |
(11.30 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
||
Diluted loss per common share: |
|
|
|
|
|
|
||
Loss from continuing operations, net of tax |
|
$ |
(1.09 |
) |
|
$ |
(0.09 |
) |
Loss from discontinued operations, net of tax |
|
|
(10.21 |
) |
|
|
(0.33 |
) |
Net loss |
|
$ |
(11.30 |
) |
|
$ |
(0.42 |
) |
Share-based awards for the three months ended June 30, 2025 and 2024 of approximately 2.5 million and 1.6 million shares were excluded from the calculation of diluted loss per common share as the effect would be anti-dilutive.
Owens & Minor, Inc.
Net Loss Per Common Share (unaudited)
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
||
|
|
Six Months Ended June 30, |
||||||
|
|
2025 |
|
|
2024 |
|
||
Loss from continuing operations, net of tax |
|
$ |
(87,632 |
) |
|
$ |
(20,135 |
) |
Loss from discontinued operations, net of tax |
|
|
(806,408 |
) |
|
|
(33,664 |
) |
Net loss |
|
$ |
(894,040 |
) |
|
$ |
(53,799 |
) |
|
|
|
|
|
|
|
||
Weighted average shares outstanding - basic |
|
|
77,102 |
|
|
|
76,526 |
|
Dilutive shares |
|
|
— |
|
|
|
— |
|
Weighted average shares outstanding - diluted |
|
|
77,102 |
|
|
|
76,526 |
|
|
|
|
|
|
|
|
||
Basic loss per common share |
|
|
|
|
|
|
||
Loss from continuing operations, net of tax |
|
$ |
(1.14 |
) |
|
$ |
(0.26 |
) |
Loss from discontinued operations, net of tax |
|
|
(10.46 |
) |
|
|
(0.44 |
) |
Net loss |
|
$ |
(11.60 |
) |
|
$ |
(0.70 |
) |
|
|
|
|
|
|
|
||
Diluted loss per common share: |
|
|
|
|
|
|
||
Loss from continuing operations, net of tax |
|
$ |
(1.14 |
) |
|
$ |
(0.26 |
) |
Loss from discontinued operations, net of tax |
|
|
(10.46 |
) |
|
|
(0.44 |
) |
Net loss |
|
$ |
(11.60 |
) |
|
$ |
(0.70 |
) |
Share-based awards for the six months ended June 30, 2025 and 2024 of approximately 2.2 million and 1.6 million shares were excluded from the calculation of diluted loss per common share as the effect would be anti-dilutive.
Owens & Minor, Inc.
GAAP/Non-GAAP Reconciliations (unaudited)
(dollars in thousands, except per share data)
The following table provides a reconciliation of reported operating (loss) income, net loss from continuing operations, net of tax and net loss from continuing operations per share to non-GAAP measures used by management.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
||||
Operating (loss) income, as reported (GAAP) |
|
$ |
(39,710 |
) |
|
$ |
16,922 |
|
|
$ |
(19,919 |
) |
|
$ |
23,892 |
|
|
Acquisition-related charges and intangible amortization (1) |
|
|
13,918 |
|
|
|
13,761 |
|
|
|
37,374 |
|
|
|
28,050 |
|
|
Transaction breakage fee (2) |
|
|
80,000 |
|
|
|
— |
|
|
|
80,000 |
|
|
|
— |
|
|
Exit and realignment charges, net (3) |
|
|
2,541 |
|
|
|
15,427 |
|
|
|
16,166 |
|
|
|
23,547 |
|
|
Litigation and related charges (5) |
|
|
121 |
|
|
|
6,678 |
|
|
|
391 |
|
|
|
6,678 |
|
|
Operating income, adjusted (non-GAAP) (Adjusted Operating Income) |
|
$ |
56,870 |
|
|
$ |
52,788 |
|
|
$ |
114,012 |
|
|
$ |
82,167 |
|
|
Operating (loss) income as a percent of net revenue (GAAP) |
|
|
(5.82 |
) |
% |
|
2.56 |
|
% |
|
(1.47 |
) |
% |
|
1.84 |
|
% |
Adjusted operating income as a percent of net revenue (non-GAAP) |
|
|
8.34 |
|
% |
|
7.99 |
|
% |
|
8.41 |
|
% |
|
6.33 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss from continuing operations, net of tax, as reported (GAAP) |
|
$ |
(83,822 |
) |
|
$ |
(6,742 |
) |
|
$ |
(87,632 |
) |
|
$ |
(20,135 |
) |
|
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition-related charges and intangible amortization (1) |
|
|
13,918 |
|
|
|
13,761 |
|
|
|
37,374 |
|
|
|
28,050 |
|
|
Transaction breakage fee (2) |
|
|
80,000 |
|
|
|
— |
|
|
|
80,000 |
|
|
|
— |
|
|
Exit and realignment charges, net (3) |
|
|
2,541 |
|
|
|
15,427 |
|
|
|
16,166 |
|
|
|
23,547 |
|
|
Transaction financing fees, net (4) |
|
|
18,288 |
|
|
|
— |
|
|
|
18,288 |
|
|
|
— |
|
|
Litigation and related charges (5) |
|
|
121 |
|
|
|
6,678 |
|
|
|
391 |
|
|
|
6,678 |
|
|
Other (6) |
|
|
424 |
|
|
|
430 |
|
|
|
848 |
|
|
|
861 |
|
|
Income tax benefit on pre-tax adjustments (9) |
|
|
(10,987 |
) |
|
|
(10,248 |
) |
|
|
(21,719 |
) |
|
|
(17,133 |
) |
|
Income from continuing operations, net of tax, adjusted (non-GAAP) (Adjusted Net Income) |
|
$ |
20,483 |
|
|
$ |
19,306 |
|
|
$ |
43,716 |
|
|
$ |
21,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss from continuing operations, net of tax per common share, as reported (GAAP) |
|
$ |
(1.09 |
) |
|
$ |
(0.09 |
) |
|
$ |
(1.14 |
) |
|
$ |
(0.26 |
) |
|
After-tax adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition-related charges and intangible amortization (1) |
|
|
0.12 |
|
|
|
0.13 |
|
|
|
0.34 |
|
|
|
0.26 |
|
|
Transaction breakage fee (2) |
|
|
1.04 |
|
|
|
— |
|
|
|
1.04 |
|
|
|
— |
|
|
Exit and realignment charges, net (3) |
|
|
0.02 |
|
|
|
0.15 |
|
|
|
0.14 |
|
|
|
0.21 |
|
|
Transaction financing fees, net (4) |
|
|
0.17 |
|
|
|
— |
|
|
|
0.17 |
|
|
|
— |
|
|
Litigation and related charges (5) |
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.06 |
|
|
Other (6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
Income from continuing operations, net of tax, per common share, adjusted (non-GAAP) (Adjusted EPS) |
|
$ |
0.26 |
|
|
$ |
0.25 |
|
|
$ |
0.55 |
|
|
$ |
0.28 |
|
|
Owens & Minor, Inc.
GAAP/Non-GAAP Reconciliations (unaudited), continued
(dollars in thousands)
The following tables provide reconciliations of net loss from continuing operations, net of tax and total debt to non-GAAP measures used by management.
|
|
|
|
|
|
|
||
|
|
Three Months Ended June 30, |
||||||
|
|
2025 |
|
|
2024 |
|
||
Loss from continuing operations, net of tax, as reported (GAAP) |
|
$ |
(83,822 |
) |
|
$ |
(6,742 |
) |
Income tax benefit |
|
|
(1,127 |
) |
|
|
(2,740 |
) |
Interest expense, net |
|
|
26,009 |
|
|
|
25,588 |
|
Acquisition-related charges and intangible amortization (1) |
|
|
13,918 |
|
|
|
13,761 |
|
Transaction breakage fee (2) |
|
|
80,000 |
|
|
|
— |
|
Exit and realignment charges, net (3) |
|
|
2,541 |
|
|
|
15,427 |
|
Transaction financing fees, net (4) |
|
|
18,288 |
|
|
|
— |
|
Litigation and related charges (5) |
|
|
121 |
|
|
|
6,678 |
|
Other depreciation and amortization (7) |
|
|
35,422 |
|
|
|
34,764 |
|
Stock compensation (8) |
|
|
4,861 |
|
|
|
3,914 |
|
Other (6) |
|
|
424 |
|
|
|
430 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
96,635 |
|
|
$ |
91,080 |
|
|
|
|
|
|
|
|
||
|
|
Six Months Ended June 30, |
||||||
|
|
2025 |
|
|
2024 |
|
||
Loss from continuing operations, net of tax, as reported (GAAP) |
|
$ |
(87,632 |
) |
|
$ |
(20,135 |
) |
Income tax benefit |
|
|
(2,715 |
) |
|
|
(8,671 |
) |
Interest expense, net |
|
|
50,223 |
|
|
|
50,997 |
|
Acquisition-related charges and intangible amortization (1) |
|
|
37,374 |
|
|
|
28,050 |
|
Transaction breakage fee (2) |
|
|
80,000 |
|
|
|
— |
|
Exit and realignment charges, net (3) |
|
|
16,166 |
|
|
|
23,547 |
|
Transaction financing fees, net (4) |
|
|
18,288 |
|
|
|
— |
|
Litigation and related charges (5) |
|
|
391 |
|
|
|
6,678 |
|
Other depreciation and amortization (7) |
|
|
70,758 |
|
|
|
71,230 |
|
Stock compensation (8) |
|
|
8,952 |
|
|
|
7,743 |
|
Other (6) |
|
|
848 |
|
|
|
861 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
192,653 |
|
|
$ |
160,300 |
|
|
|
|
|
|
|
|
|
|
|||
|
June 30, |
|
March 31 |
|
December 31, |
||||||
|
2025 |
|
|
2025 |
|
|
2024 |
|
|||
Total debt, as reported (GAAP) |
$ |
1,977,745 |
|
|
$ |
1,938,429 |
|
|
$ |
1,841,259 |
|
Cash and cash equivalents |
|
(38,258 |
) |
|
|
(29,710 |
) |
|
|
(27,572 |
) |
Net debt (non-GAAP) |
$ |
1,939,487 |
|
|
$ |
1,908,719 |
|
|
$ |
1,813,687 |
|
Owens & Minor, Inc.
GAAP/Non-GAAP Reconciliations (unaudited), continued
(dollars in thousands)
The following tables provide reconciliations of capital expenditures to a non-GAAP measure used by management.
|
|
|
|
|
|
|
||
|
|
Three Months Ended June 30, |
||||||
|
|
2025 |
|
|
2024 |
|
||
Capital expenditures, as reported (GAAP) |
|
$ |
69,537 |
|
|
$ |
45,800 |
|
Capital expenditures from discontinued operations |
|
|
(10,366 |
) |
|
|
(3,456 |
) |
Capital expenditures from continuing operations |
|
|
59,171 |
|
|
|
42,344 |
|
Proceeds from sale of patient service equipment and other fixed assets, as reported |
|
|
(18,120 |
) |
|
|
(17,488 |
) |
Proceeds from sale of patient service equipment and other fixed assets from discontinued operations |
|
|
— |
|
|
|
— |
|
Proceeds from sale of patient service equipment and other fixed assets from continuing operations |
|
|
(18,120 |
) |
|
|
(17,488 |
) |
Net capital expenditures from continuing operations (non-GAAP) (Net Capex) |
|
$ |
41,051 |
|
|
$ |
24,856 |
|
|
|
|
|
|
|
|
||
|
|
Six Months Ended June 30, |
||||||
|
|
2025 |
|
|
2024 |
|
||
Capital expenditures, as reported (GAAP) |
|
$ |
134,211 |
|
|
$ |
95,208 |
|
Capital expenditures from discontinued operations, as reported |
|
|
(26,918 |
) |
|
|
(11,150 |
) |
Capital expenditures from continuing operations |
|
|
107,293 |
|
|
|
84,058 |
|
Proceeds from sale of patient service equipment and other fixed assets, as reported |
|
|
(35,004 |
) |
|
|
(67,026 |
) |
Proceeds from sale of patient service equipment and other fixed assets from discontinued operations |
|
|
— |
|
|
|
33,500 |
|
Proceeds from sale of patient service equipment and other fixed assets from continuing operations |
|
|
(35,004 |
) |
|
|
(33,526 |
) |
Net capital expenditures from continuing operations (non-GAAP) (Net Capex) |
|
$ |
72,289 |
|
|
$ |
50,532 |
|
The following items have been excluded in our non-GAAP financial measures |
||
(1) |
Acquisition-related charges and intangible amortization for the three and six months ended June 30, 2025 includes $6.4 million and $22 million of acquisition-related costs related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also includes amortization of intangible assets established during acquisition method of accounting for business combinations. Acquisition-related charges and intangible amortization for the three and six months ended June 30, 2024 includes $3.7 million of acquisition-related costs related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also includes amortization of intangible assets established during acquisition method of accounting for business combinations. Acquisition-related charges consist primarily of one-time costs related to acquisitions, including transaction costs necessary to consummate acquisitions, which consist of investment banking advisory fees and legal fees, director and officer tail insurance expense, as well as transition costs, such as severance and retention bonuses, information technology (IT) integration costs and professional fees. These amounts are highly dependent on the size and frequency of acquisitions and are being excluded to allow for a more consistent comparison with forecasted, current and historical results. |
|
(2) |
Transaction breakage fee includes a cash payment to Rotech of $80 million during the three and six months ended June 30, 2025 for the termination of the Rotech Acquisition. |
|
(3) |
During the three and six months ended June 30, 2025 exit and realignment charges, net were $2.5 million and $16 million and primarily included professional fees associated with strategic initiatives of $1.9 million and $8.1 million. During the six months ended June 30, 2025 exit and realignment charges, net also included $6.8 million related to wind-down costs of Fusion5. Exit and realignment charges, net were $15 million and $24 million for the three and six months ended June 30, 2024. These charges primarily included professional fees associated with strategic initiatives of $12 million and $18 million and costs related to IT strategic initiatives such as converting certain divisions to common IT systems. These costs are not normal recurring, cash operating expenses necessary for the Company to operate its business on an ongoing basis. |
|
(4) |
Transaction financing fees, net includes $12 million in net interest paid on the financing issued in connection with previously expected Rotech acquisition and $6.7 million in recognition of related previously deferred debt issuance costs. |
|
(5) |
Litigation and related charges includes settlement costs and related charges of legal matters. These costs do not occur in the ordinary course of our business, are non-recurring/infrequent and are inherently unpredictable in timing and amount. |
|
| (6) | For the three and six months ended June 30, 2025 and 2024, other includes interest costs and net actuarial losses related to our frozen noncontributory, unfunded retirement plan for certain retirees in the United States (U.S.). |
|
(7) |
Other depreciation and amortization relates to patient service equipment and other fixed assets, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges and intangible amortization. |
|
(8) |
Stock compensation includes share-based compensation expense related to our share-based compensation plans, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges and intangible amortization. |
|
(9) |
These charges have been tax effected by determining the income tax rate depending on the amount of charges incurred in different tax jurisdictions and the deductibility of those charges for income tax purposes. |
|
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 substitutes 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.
OMI-CORP
OMI-IR
SOURCE: Owens & Minor, Inc.
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Investors
Alpha IR Group
Jackie Marcus or Nick Teves
[email protected]
Jonathan Leon
Executive Vice President & Chief Financial Officer
[email protected]
Media
Stacy Law
[email protected]