Owens & Minor, Inc. (NYSE: OMI) Announces Second Quarter Financial Results for 2024
Owens & Minor, Inc. (NYSE: OMI) has released its financial results for the second quarter ending June 30, 2024.
Key Highlights:
- Revenue: The company achieved consolidated revenue of $2.7 billion for the second quarter, marking a 4% increase compared to the same period last year.
- Net Loss: Owens & Minor reported a net loss of $32 million, or $0.42 per share, for the quarter.
- Adjusted EBITDA: Adjusted EBITDA reached $127 million, reflecting a 12% year-over-year increase.
- Adjusted Earnings per Share: Adjusted earnings per share doubled from $0.18 in the second quarter of 2023 to $0.36 this year.
Edward A. Pesicka, President & CEO, commented, “Our second-quarter results align with our expectations as we advance our long-term strategy outlined during Investor Day in December 2023. Investments in our Products & Healthcare Services segment are yielding positive outcomes, driving growth in our Medical Distribution division. Our Patient Direct segment performed as anticipated, and we expect it to benefit from seasonal trends and recent investments in the latter half of the year.”
Financial Summary:
| ($ in millions, except per share data) | 2Q24 | 2Q23 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenue | $2,671 | $2,563 | $5,284 | $5,086 |
| Operating Income (GAAP) | $20.3 | $10.8 | $30.0 | $20.6 |
| Adjusted Operating Income (Non-GAAP) | $76.3 | $62.0 | $133.6 | $109.7 |
| Net Loss (GAAP) | $(31.9) | $(28.2) | $(53.8) | $(52.7) |
| Adjusted Net Income (Non-GAAP) | $28.2 | $14.2 | $43.0 | $17.8 |
| Adjusted EBITDA (Non-GAAP) | $126.8 | $112.8 | $243.1 | $221.5 |
| Net Loss per Share (GAAP) | $(0.42) | $(0.37) | $(0.70) | $(0.70) |
| Adjusted Net Income per Share (Non-GAAP) | $0.36 | $0.18 | $0.55 | $0.23 |
Results and Business Highlights:
- Consolidated Revenue: Increased by 4% to $2.7 billion compared to the previous year’s second quarter.
- Patient Direct Revenue: Rose to $660 million, up 4% from the prior year, driven by robust growth in diabetes and sleep supplies.
- Products & Healthcare Services Revenue: Grew to $2.0 billion, a 4% increase year-over-year, supported by strong same-store sales and new wins in Medical Distribution.
- Operating Income: Reported at $20.3 million, with Adjusted Operating Income of $76.3 million, representing an 87% and 23% increase, respectively, from the previous year.
- Net Loss and Adjusted Net Income: Net loss stood at $32 million, while Adjusted Net Income was $28 million.
- Adjusted EBITDA: Increased by 12% to $127 million.
- Operating Cash Flow: Reached $116 million, up $169 million from the first quarter of 2024, facilitating $71 million in debt reduction during the quarter.
Tax Matter:
The company recorded a one-time income tax charge of $17 million (or $0.22 per share) related to Notices of Proposed Adjustments from 2020 and 2021, disclosed in late June 2024. This charge is included in the GAAP to Non-GAAP reconciliations. The issue, associated with past transfer pricing methods, is anticipated to be resolved without further financial impact, with an expected cash payment of $30-$35 million in the latter part of the year.
