- Q4 year-over-year revenue growth of 8%
- Q4 GAAP EPS of $0.72* and Adjusted EPS of $1.14* representing
growth of nearly 400%
- 2021 Adjusted Net Income per share expected to be $3.00 -
$3.50
Owens & Minor, Inc. (NYSE:OMI) today reported financial
results for the fourth quarter and the year ended December 31,
2020, as summarized in the table below.
“The monumental effort of the Owens & Minor teammates in
2020 along with their relentless focus on serving our customers has
reinforced our position in the healthcare industry as a trusted
partner,” said Edward A. Pesicka, President and Chief Executive
Officer of Owens & Minor. “I am very proud of how our teammates
delivered on our mission of ‘Empowering Our Customers to Advance
Healthcare’ and exemplified our IDEAL values in our swift response
to the Covid-19 pandemic.”
Pesicka added, “In the midst of the pandemic, we utilized the
Owens & Minor disciplined business process to drive
productivity and improve our customers’ experience. Specifically,
we enhanced our Americas based vertically integrated manufacturing
capabilities to address our customers’ current and future needs for
our market leading broad-based products and services.”
“We delivered exceptional financial results for the quarter and
full year through strong execution,” said Pesicka. “Our
productivity gains along with favorable product mix drove our
margin improvement and significant earnings growth. During the year
we successfully deleveraged our balance sheet while continuing to
reinvest in our businesses. We have established a solid foundation
for long-term profitable growth and enhanced financial
flexibility.”
Financial
Summary*
FYE
FYE
($ in millions, except per share data)
4Q20
4Q19
2020
2019
Revenue
$2,362
$2,191
$8,480
$9,211
Operating Income, GAAP**
$95.6
$14.5
$204.1
$73.2
Adj. Operating Income, Non-GAAP**
$124.9
$41.1
$283.4
$148.7
Income (Loss) from continuing operations,
GAAP**
$50.7
($5.4
)
$88.1
($22.6
)
Adj. Net Income, Non-GAAP**
$79.8
$14.0
$143.7
$37.7
Income (Loss) from continuing operations
per share, GAAP**
$0.72
($0.09
)
$1.39
($0.37
)
Adj. Net Income per share, Non-GAAP**
$1.14
$0.23
$2.26
$0.62
* Adjusted net income and Adjusted net
income per share relate to continuing operations.
** 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.
** Full year Adjusted EPS favorably
impacted by $0.08 of foreign currency translation compared to prior
year
Results and Highlights
- Significant increase in year-over-year fourth quarter earnings
performance driven by sales growth, operating efficiencies, and
product mix
- 390 basis point gross margin expansion
- 204% increase in adjusted operating income
- 396% increase in adjusted net income per share
- Total company Q4 revenue growth was driven by increased demand
for PPE both through our medical distribution channel and direct to
customers along with strong performance in our home healthcare
business, which was partially offset by elective procedures
- Global Solutions segment revenue grew to $1.95 billion or 1%
year-over-year and 5% from Q3
- Global Products segment revenue grew to $575 million or 58%
year-over-year and 21% from Q3
- Balance Sheet and Cash Flow
- Total debt reduced by $303 million in the fourth quarter; and
by $534 million or 34% for the full year. As a result, interest
expense was reduced by 23% in the fourth quarter and by 15% for the
full year
- Generated $71 million of operating cash flow in the fourth
quarter
- Operating cash flow more than doubled in 2020 to $339 million
when compared to 2019
- Continued to re-invest in the business across technology,
infrastructure and services
- Other Achievements
- Delivered over 12 billion units of PPE to healthcare workers in
the fight against Covid-19, of which approximately 5 billion units
were produced with materials manufactured in our American factories
or Owens & Minor owned facilities, since January 2020
- Partnered with federal and state agencies to strengthen the
nation’s response to the pandemic through investment in PPE
manufacturing capacity, distribution of PPE to frontline healthcare
workers, and working to replenish the strategic national
stockpile
- Completed the sale of Movianto, our European logistics
business
- Successfully completed an upsized $200 million equity offering
of 9.7 million shares
Financial Outlook
The Company’s outlook for 2021 reflects sustained growth
momentum driven by reinvestment in both business segments while
enhancing operating efficiencies. The Company believes these
investments have created a solid foundation for continued strong
performance in 2021. Subject to the key assumptions below, the
Company expects adjusted net income for 2021 to be in a range of
$3.00 to $3.50 per share which represents growth in the range of
33% to 55% over 2020 adjusted net income per share.
Key assumptions supporting the Company’s 2021 financial
guidance:
- Increase in PPE capacity and manufacturing efficiencies during
2021
- Pass through of exam glove cost increases will contribute
$300-$500 million to top line, with minimal impact to
profitability
- The strength of Q4 2020 elective procedures expected to
continue through 1H 2021
Although the Company does provide guidance for adjusted net
income per share (which is a non-GAAP financial measure), it is not
able to forecast the most directly comparable measure calculated
and presented in accordance with GAAP without unreasonable effort.
Certain elements of the composition of the GAAP amount are not
predictable, making it impracticable for the Company to forecast.
Such elements include, but are not limited to restructuring and
acquisition charges. As a result, no GAAP guidance or
reconciliation of the Company’s adjusted net income per share
guidance is provided. For the same reasons, the Company is unable
to assess the probable significance of the unavailable information,
which could have a potentially significant impact on its future
GAAP financial results. The outlook is based on certain assumptions
that are subject to the risk factors discussed in the Company’s
filings with the Securities and Exchange Commission (“SEC”).
Dividend Information
The Board of Directors approved a first quarter 2021 dividend
payment of $0.0025 per share, payable on March 31, 2021, to
shareholders of record as of March 15, 2021.
Investor Conference Call for 4th
Quarter and Full Year 2020 Financial Results
Owens & Minor executives will host a conference call at 8:30
a.m. ET today, February 24, 2021, to discuss the results.
Participants may access the call at 866-393-1604. The international
dial-in number is 224-357-2191. A replay of the call will be
available for one week by dialing 855-859-2056. The access code for
the conference call, international dial-in and replay is 8993404. A
webcast of the event will be available at www.owens-minor.com under
the Investor Relations section.
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 expectations with respect to our 2021 financial
performance and related assumptions, as well as other statements
related to the impact of COVID-19 on the Company’s results and
operations and the Company’s expectations regarding the performance
of its business and improvement of operational performance.
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,
2019, filed with the SEC including the sections captioned
“Cautionary Note Regarding Forward-Looking Statements” and “Item
1A. Risk Factors,” and subsequent annual reports on Form 10-K,
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 global healthcare
solutions company that incorporates product manufacturing,
distribution support and innovative technology services to deliver
significant and sustained value across the breadth of the industry
– from acute care to patients in their home. Aligned to its Mission
of Empowering Our Customers to Advance HealthcareTM, more than
15,000 global teammates serve over 4,000 healthcare industry
customers. A vertically-integrated, predominantly Americas-based
footprint enables Owens & Minor to reliably supply its
self-manufactured surgical and PPE products. This seamless value
chain integrates with a portfolio of products representing 1,200
branded suppliers. Operating continuously since 1882 from its
headquarters in Richmond, Virginia, Owens & Minor has grown
into a FORTUNE 500 company with operations located across North
America, Asia, Europe and Latin America. For more information about
Owens & Minor, visit owens-minor.com, follow @Owens_Minor on
Twitter and connect on LinkedIn at
www.linkedin.com/company/owens-&-minor.
Owens & Minor, Inc.
Consolidated Statements of Operations
(unaudited)
(dollars in thousands, except per share
data)
Three Months Ended December
31,
2020
2019
Net revenue
$
2,361,837
$
2,190,642
Cost of goods sold
1,963,308
1,905,911
Gross margin
398,529
284,731
Distribution, selling and administrative
expenses
283,017
254,165
Acquisition-related and exit and
realignment charges
19,252
15,275
Other operating expense, net
648
753
Operating income
95,612
14,538
Interest expense, net
17,476
22,557
Other expense (income), net
9,424
(257
)
Income (loss) from continuing operations
before income taxes
68,712
(7,762
)
Income tax provision (benefit)
17,971
(2,409
)
Income (loss) from continuing
operations
50,741
(5,353
)
Loss from discontinued operations, net of
tax
—
(33,670
)
Net income (loss)
$
50,741
$
(39,023
)
Income (loss) from continuing operations
per common share: basic
$
0.73
$
(0.09
)
Loss from discontinued operations per
common share: basic
—
(0.56
)
Net income (loss) per common share:
basic
$
0.73
$
(0.65
)
Income (loss) from continuing operations
per common share: diluted
$
0.72
$
(0.09
)
Loss from discontinued operations per
common share: diluted
—
(0.56
)
Net income (loss) per common share:
diluted
$
0.72
$
(0.65
)
Owens & Minor, Inc.
Consolidated Statements of Operations
(unaudited)
(dollars in thousands, except per share
data)
For the Years Ended December
31,
2020
2019
Net revenue
$
8,480,177
$
9,210,939
Cost of goods sold
7,199,343
8,082,448
Gross margin
1,280,834
1,128,491
Distribution, selling and administrative
expenses
1,041,336
1,023,065
Acquisition-related and exit and
realignment charges
37,752
30,050
Other operating (income) expense, net
(2,372
)
2,225
Operating income
204,118
73,151
Interest expense, net
83,398
98,113
Other expense, net
10,812
3,757
Income (loss) from continuing operations
before income taxes
109,908
(28,719
)
Income tax provision (benefit)
21,834
(6,135
)
Income (loss) from continuing
operations
88,074
(22,584
)
Loss from discontinued operations, net of
tax
(58,203
)
(39,787
)
Net income (loss)
$
29,871
$
(62,371
)
Income (loss) from continuing operations
per common share: basic and diluted
$
1.39
$
(0.37
)
Loss from discontinued operations per
common share: basic and diluted
(0.92
)
(0.66
)
Net income (loss) per common share: basic
and diluted
$
0.47
$
(1.03
)
Owens & Minor, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(dollars in thousands)
December 31, 2020
December 31, 2019
Assets
Current assets
Cash and cash equivalents
$
83,058
$
67,030
Accounts receivable, net
700,792
674,706
Merchandise inventories
1,233,751
1,146,192
Other current assets
118,264
79,372
Current assets of discontinued
operations
—
439,983
Total current assets
2,135,865
2,407,283
Property and equipment, net
315,662
315,427
Operating lease assets
144,755
142,219
Goodwill
394,086
393,181
Intangible assets, net
243,351
285,018
Other assets, net
101,920
99,956
Total assets
$
3,335,639
$
3,643,084
Liabilities and equity
Current liabilities
Accounts payable
$
1,000,186
$
808,035
Accrued payroll and related
liabilities
109,447
53,584
Other current liabilities
236,094
231,029
Current liabilities of discontinued
operations
—
323,511
Total current liabilities
1,345,727
1,416,159
Long-term debt, excluding current
portion
986,018
1,508,415
Operating lease liabilities, excluding
current portion
119,932
117,080
Deferred income taxes
50,641
40,550
Other liabilities
121,267
98,726
Total liabilities
2,623,585
3,180,930
Total equity
712,054
462,154
Total liabilities and equity
$
3,335,639
$
3,643,084
Owens & Minor, Inc.
Consolidated Statements of Cash Flows
(unaudited)
(dollars in thousands)
For the Years Ended December
31,
2020
2019
Operating activities:
Net income (loss)
$
29,871
$
(62,371
)
Adjustments to reconcile net income (loss)
to cash provided by operating activities:
Depreciation and amortization
93,336
116,678
Share-based compensation expense
20,010
15,803
Impairment charges
8,724
32,112
Loss on divestiture
65,472
—
Deferred income tax expense (benefit)
15,564
(17,402
)
Provision for losses on accounts
receivable
11,292
12,914
Changes in operating lease right-of-use
assets and lease liabilities
(1,676
)
(2,599
)
Changes in operating assets and
liabilities:
Accounts receivable
(34,818
)
63,526
Merchandise inventories
(85,154
)
127,921
Accounts payable
193,240
(235,631
)
Net change in other assets and
liabilities
5,278
104,801
Other, net
18,084
10,333
Cash provided by operating
activities
339,223
166,085
Investing activities:
Proceeds from divestiture
133,000
—
Additions to property and equipment
(50,424
)
(42,419
)
Additions to computer software
(8,769
)
(9,809
)
Proceeds from sale of property and
equipment
234
331
Proceeds from cash surrender value of life
insurance policies
6,032
—
Cash provided (used for) by investing
activities
80,073
(51,897
)
Financing activities:
Proceeds from issuance of debt
155,100
—
Proceeds from issuance of common stock
189,971
—
Repayments of revolving credit
facility
(74,700
)
(32,200
)
Repayment of debt
(617,271
)
(85,592
)
Financing costs paid
(10,367
)
(4,313
)
Cash dividends paid
(648
)
(5,226
)
Senior Notes make-whole premium paid
(4,980
)
—
Other, net
(16,491
)
(2,866
)
Cash used for financing
activities
(379,386
)
(130,197
)
Effect of exchange rate changes on cash
and cash equivalents
9,909
(2,671
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
49,819
(18,680
)
Cash, cash equivalents and restricted
cash at beginning of year
84,687
103,367
Cash, cash equivalents and restricted
cash at end of year (1)
$
134,506
$
84,687
Supplemental disclosure of cash flow
information:
Income taxes received, net of payments
$
(17,455
)
$
(6,198
)
Interest paid
$
89,961
$
95,413
(1) Restricted cash as of December
31, 2020 represents $35.1 million held in a designated account as
required by the Fifth Amendment to the Credit Agreement, which
stipulates that the cash held within this account is to be used to
repay the 2021 Notes, which were fully repaid as of December 31,
2020, or the Term Loans; and $16.3 million held in an escrow
account as required by the Centers for Medicare & Medicaid
Services (CMS) in conjunction with the Bundled Payments for Care
Improvement (BPCI) Advanced Program.
Owens & Minor, Inc.
Summary Segment Information
(unaudited)
(dollars in thousands)
Three Months Ended December
31,
2020
2019
% of
% of
consolidated
consolidated
Amount
net revenue
Amount
net revenue
Net revenue:
Segment net revenue
Global Solutions
$
1,950,596
82.59
%
$
1,938,420
88.48
%
Global Products
574,940
24.34
%
363,169
16.58
%
Total segment net revenue
2,525,536
2,301,589
Inter-segment net revenue
Global Products
(163,699
)
(6.93
)%
(110,947
)
(5.06
)%
Total inter-segment net revenue
(163,699
)
(110,947
)
Consolidated net revenue
$
2,361,837
100.00
%
$
2,190,642
100.00
%
% of segment
% of segment
Operating income:
net revenue
net revenue
Global Solutions
$
22,424
1.15
%
$
19,300
1.00
%
Global Products
99,660
17.33
%
22,484
6.19
%
Inter-segment eliminations
2,807
(730
)
Intangible amortization
(10,027
)
(10,614
)
Acquisition-related and exit and
realignment charges
(19,252
)
(15,275
)
Other (1)
—
(627
)
Consolidated operating income
$
95,612
4.05
%
$
14,538
0.66
%
Depreciation and amortization:
Global Solutions
$
10,014
$
10,744
Global Products
13,828
13,360
Discontinued operations
—
4,370
Consolidated depreciation and
amortization
$
23,842
$
28,474
Capital expenditures:
Global Solutions
$
12,841
$
3,707
Global Products
19,972
8,715
Discontinued operations
—
1,654
Consolidated capital expenditures
$
32,813
$
14,076
Owens & Minor, Inc.
Summary Segment Information
(unaudited)
(dollars in thousands)
For the Years Ended December
31,
2020
2019
% of
% of
consolidated
consolidated
Amount
net revenue
Amount
net revenue
Net revenue:
Segment net revenue
Global Solutions
$
7,212,011
85.04
%
$
8,243,867
89.50
%
Global Products
1,810,331
21.34
%
1,433,977
15.57
%
Total segment net revenue
9,022,342
9,677,844
Inter-segment net revenue
Global Products
(542,165
)
(6.38
)%
(466,905
)
(5.07
)%
Total inter-segment net revenue
(542,165
)
(466,905
)
Consolidated net revenue
$
8,480,177
100.00
%
$
9,210,939
100.00
%
% of segment
% of segment
Operating income:
net revenue
net revenue
Global Solutions
$
30,946
0.43
%
$
83,592
1.01
%
Global Products
259,929
14.36
%
65,054
4.54
%
Inter-segment eliminations
(7,515
)
45
Intangible amortization
(41,490
)
(44,009
)
Acquisition-related and exit and
realignment charges
(37,752
)
(30,050
)
Other (1)
—
(1,481
)
Consolidated operating income
$
204,118
2.41
%
$
73,151
0.79
%
Depreciation and amortization:
Global Solutions
$
41,286
$
42,444
Global Products
52,050
54,302
Discontinued operations
—
19,932
Consolidated depreciation and
amortization
$
93,336
$
116,678
Capital expenditures:
Global Solutions
$
20,386
$
10,987
Global Products
35,780
22,289
Discontinued operations
3,027
18,952
Consolidated capital expenditures
$
59,193
$
52,228
(1) 2019 included interest cost and net
actuarial losses related to the U.S. Retirement Plan as well as
software as a service (SaaS) implementation costs associated with
the upgrading of our global IT platforms in connection with the
redesign of our global information system strategy.
Owens & Minor, Inc.
Net Income (Loss) Per Common Share
(unaudited)
(dollars in thousands, except per share
data)
Three Months Ended December
31,
For the Years Ended December
31,
2020
2019
2020
2019
Numerator:
Weighted average shares outstanding -
basic
69,948
60,088
63,368
60,574
Dilutive shares
167
—
144
—
Weighted average shares outstanding -
diluted
70,115
60,088
63,512
60,574
Income (loss) from continuing
operations
$
50,741
$
(5,353
)
$
88,074
$
(22,584
)
Basic per share
$
0.73
$
(0.09
)
$
1.39
$
(0.37
)
Diluted per share
$
0.72
$
(0.09
)
$
1.39
$
(0.37
)
Loss from discontinued operations
$
—
$
(33,670
)
$
(58,203
)
$
(39,787
)
Basic and diluted per share
$
—
$
(0.56
)
$
(0.92
)
$
(0.66
)
Net income (loss)
$
50,741
$
(39,023
)
$
29,871
$
(62,371
)
Basic per share
$
0.73
$
(0.65
)
$
0.47
$
(1.03
)
Diluted per share
$
0.72
$
(0.65
)
$
0.47
$
(1.03
)
Owens & Minor, Inc. GAAP/Non-GAAP Reconciliations
(unaudited)
The following table provides a reconciliation of reported
operating income, income (loss) from continuing operations and
income (loss) from continuing operations per share to non-GAAP
measures used by management.
(dollars in thousands, except per share
data)
Three Months Ended December
31,
Years Ended December
31,
2020
2019
2020
2019
Operating income, as reported (GAAP)
$
95,612
$
14,538
$
204,118
$
73,151
Intangible amortization (1)
10,027
10,614
41,490
44,009
Acquisition-related and exit and
realignment charges (2)
19,252
15,275
37,752
30,050
Software as a Service implementation costs
(3)
—
1,359
—
4,408
Other (4)
—
(731
)
—
(2,923
)
Operating income, adjusted (non-GAAP)
(Adjusted Operating Income)
$
124,891
$
41,055
$
283,360
$
148,695
Income (loss) from continuing operations,
as reported (GAAP)
$
50,741
$
(5,353
)
$
88,074
$
(22,584
)
Intangible amortization (1)
10,027
10,614
41,490
44,009
Income tax benefit (7)
(2,747
)
(2,781
)
(10,808
)
(10,556
)
Acquisition-related and exit and
realignment charges (2)
19,252
15,275
37,752
30,050
Income tax benefit (7)
(5,274
)
(4,004
)
(9,835
)
(7,207
)
Software as a Service implementation costs
(3)
—
1,359
—
4,408
Income tax benefit (7)
—
(356
)
—
(1,057
)
(Gain) loss on extinguishment and
modification of debt (5)
8,639
(988
)
11,219
830
Income tax (benefit) expense (7)
(2,366
)
259
(2,923
)
(199
)
Other (4)
573
—
(1,185
)
—
Income tax (benefit) expense (7)
(157
)
—
308
—
Tax adjustments (6)
1,082
—
(10,439
)
—
Income from continuing operations,
adjusted (non-GAAP) (Adjusted Net Income)
$
79,770
$
14,025
$
143,653
$
37,694
Income (loss) from continuing operations
per diluted common share, as reported (GAAP)
$
0.72
$
(0.09
)
$
1.39
$
(0.37
)
Intangible amortization (1)
0.10
0.13
0.47
0.55
Acquisition-related and exit and
realignment charges (2)
0.20
0.18
0.44
0.37
Software as a Service implementation costs
(3)
—
0.02
—
0.06
(Gain) loss on extinguishment and
modification of debt (5)
0.09
(0.01
)
0.13
0.01
Other (4)
0.01
—
(0.01
)
—
Tax adjustments (6)
0.02
—
(0.16
)
—
Income from continuing operations per
diluted common share, adjusted (non-GAAP) (Adjusted EPS)
$
1.14
$
0.23
$
2.26
$
0.62
Owens & Minor, Inc. GAAP/Non-GAAP Reconciliations
(unaudited)
The following items have been excluded in our non-GAAP financial
measures:
(1) Intangible amortization in 2020 and 2019 includes
amortization of intangible assets established during purchase
accounting for business combinations. 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 and the results of our peers.
(2) Acquisition-related charges were $2.7 million and $11.8
million for the three months and year ended December 31, 2020,
compared to $4.3 million and $15.7 million for the same periods of
2019. Acquisition-related charges in 2020 and 2019 consist
primarily of transition costs for the Halyard acquisition. Exit and
realignment charges were $16.6 million and $25.9 million for the
three months and year ended December 31, 2020, compared to $11.0
million and $14.4 million for the same periods of 2019. Exit and
realignment charges in 2020 were associated with severance from
reduction in workforce, restructuring charges related to our client
engagement center, IT restructuring charges, loss on sale of
certain Fusion5 assets, and other costs related to the
reorganization of the U.S. commercial, operations and executive
teams. Exit and realignment charges in 2019 were associated with
severance from reduction in workforce, IT restructuring charges and
other costs related to the reorganization of the U.S. commercial,
operations and executive teams.
(3) Software as a Service (SaaS) implementation costs in 2019
were associated with significant global IT platforms in connection
with the redesign of our global information system strategy.
(4) Other includes interest costs and net actuarial losses
related to the U.S. Retirement Plan of $0.6 million and $2.3
million for the three months and year ended December 31, 2020,
respectively, and gain from the surrender of company-owned life
insurance policies of $(3.5) million for the year ended December
31, 2020.
(5) (Gain) loss on extinguishment and modification of debt for
the three months and year ended December 31, 2020 includes a
make-whole premium related to the extinguishment of our 2021 Notes
of $5.0 million, the write-off of deferred financing costs of $2.7
million and $5.1 million, respectively, third party fees incurred
of $1.0 million and $4.3 million, respectively, which was offset by
a gain on extinguishment of debt related to the partial repurchase
of our 2021 and 2024 Notes of $(3.1) million for the year ended
December 31, 2020. (Gain) loss on extinguishment and modification
of debt for the three months and year ended December 31, 2019
includes the write-off of deferred financing costs associated with
the revolving credit facility as a result of the Fourth Amendment
to the Credit Agreement in February 2019 of $2.0 million, offset by
a (gain) on extinguishment of debt related to the partial
repurchase of our 2021 Notes of $(1.0) million and $(1.2) million,
respectively.
(6) Includes tax adjustments associated with the estimated
(benefits) expense under the Tax Cuts and Jobs Act and the
Coronavirus Aid, Relief, and Economic Security (CARES) Act.
(7) These charges have been tax effected in the preceding table
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 a substitute 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210224005242/en/
Chandrika Nigam, Director, Investor Relations,
Investor.Relations@owens-minor.com, 804-723-7556
Owens and Minor (NYSE:OMI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Owens and Minor (NYSE:OMI)
Historical Stock Chart
From Apr 2023 to Apr 2024
