On August 2, 2024, Owens & Minor Inc (OMI, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Owens & Minor Inc distributes consumable medical supplies to a variety of providers. The business operates under two segments: Products & Healthcare Services and Patient Direct. The Products & Healthcare Services segment manufactures and sources medical surgical products and provides medical supplies and solutions for the prevention of healthcare-associated infections. The Patient Direct segment delivers disposable medical supplies directly to patients and home health agencies. The majority of the revenue is generated from the Products & Healthcare Services segment.
Performance Overview
Owens & Minor Inc (OMI, Financial) reported a revenue of $2,671 million for Q2 2024, surpassing the analyst estimate of $2,646.38 million. However, the company posted a GAAP net loss of $31.9 million, translating to a loss per share of $0.42, which is above the estimated earnings per share of -$0.17. The adjusted net income per share, non-GAAP, was $0.36, reflecting a significant improvement from $0.18 in Q2 2023.
Key Financial Achievements
The company achieved a notable operating cash flow of $116 million, which facilitated a $71 million reduction in debt. This is a crucial development for Owens & Minor Inc (OMI, Financial) as it continues to focus on strengthening its balance sheet and reducing financial leverage.
“Our second-quarter performance is consistent with our expectations, as we are in the early stages of implementing our long-term strategy discussed at Investor Day in December 2023. Our previous investments in our Products & Healthcare Services segment yielded positive results and generated top-line growth in our Medical Distribution division. Our Patient Direct segment performed in line with our expectations, and we expect the segment to benefit from seasonality and recent organic investments during the back half of the year,” said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $2,671 million | $2,563 million |
| Operating Income, GAAP | $20.3 million | $10.8 million |
| Net Loss, GAAP | $(31.9) million | $(28.2) million |
| Adjusted Net Income, Non-GAAP | $28.2 million | $14.2 million |
| Adjusted EBITDA, Non-GAAP | $126.8 million | $112.8 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Owens & Minor Inc (OMI, Financial) reported total assets of $5,304 million, up from $5,093 million at the end of 2023. The company’s cash and cash equivalents stood at $243.7 million. The total liabilities were $4,443 million, with long-term debt (excluding current portion) at $1,872 million. The company’s equity was $861 million.
Challenges and Outlook
Despite the revenue growth, Owens & Minor Inc (OMI, Financial) faced challenges, including a one-time income tax charge of $17 million related to past transfer pricing methodology. This charge impacted the net loss for the quarter. The company expects to make a related cash payment of $30-$35 million in the second half of the year.
Looking ahead, Owens & Minor Inc (OMI, Financial) reaffirmed its financial guidance for 2024, anticipating continued pressure on pricing and demand in the Products & Healthcare Services segment. The company remains focused on executing its long-term strategy and leveraging its recent investments to drive growth.
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Explore the complete 8-K earnings release (here) from Owens & Minor Inc for further details.
