Owens & Minor Launches Financing for Rotech Acquisition and Provides Preliminary Fourth Quarter and Full Year 2024 Financial Results Ahead of Investor Meetings

Expects to Report Fourth Quarter and Full Year 2024 Financial Results on February 28, 2025

RICHMOND, Va.--(BUSINESS WIRE)--February 03, 2025-- 

Owens & Minor, Inc. $(OMI)$ (the "Company") today announced selected preliminary financial results for the fourth quarter and year ended December 31, 2024 in advance of its upcoming earnings announcement and conference call. The release of the preliminary results relates to the Company's commencement of financing activity related to its previously announced agreement to acquire Rotech Healthcare Holdings, Inc ("Rotech").

"We are commencing a process to raise additional debt while the capital markets are attractive, to finance our previously announced agreement to acquire Rotech which we continue to expect will close in the first half of 2025. Our healthy free cash flow provides the vehicle for this proposed financing as well as helping us achieve our deleveraging goals over the next few years. Having this additional facility at attractive interest rates gives us the ability to remain nimble in a dynamic market, " said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.

Pesicka added, "Our healthy top-line performance in 2024 is representative of the demand for our products and services across both segments of our business. We are particularly excited about the full-year performance of our Patient Direct segment which posted solid mid-single digit growth, and even higher in key categories. In addition, we are pleased that in a year of meaningful reinvestment in the business we were able to reduce total debt by over $240 million."

Preliminary Fourth Quarter 2024 Results Including Non-Cash Goodwill Impairment (i):

 
Revenue of $2.67 -- $2.70 billion 
Net loss of $(311) -- $(288) million    Adjusted EBITDA of $135 -- $140 
                                        million 
Net loss per share $(4.03) -- $(3.73)   Adjusted EPS of $0.52 -- $0.55 
Gross capital expenditures of $71 --    Capital Expenditures, net of patient 
$76 million                             service equipment (PSE) regular sales 
                                        proceeds, of $53 -- $58 million 
Cash provided by operating activities 
of $70 -- $75 million 
 

Preliminary Full Year 2024 Results Including Non-Cash Goodwill Impairment (i):

 
Revenue of $10.67 -- $10.70 billion 
Net loss of $(378) -- $(355) million    Adjusted EBITDA of $520 -- $525 
                                        million 
Net loss per share $(4.92) -- $(4.63)   Adjusted EPS of $1.50 -- $1.53 
Gross capital expenditures of $228 --   Capital expenditures, net of PSE 
$233 million                            regular sales proceeds, of $158 -- 
                                        $163 million 
Total debt of $1.854 -- $1.859 billion  Net debt of $1.805 -- $1.810 billion 
Cash provided by operating activities 
of $160 -- $165 million 
 
 
(i)        Reconciliations of the differences between the non-GAAP financial 
           measures in this release and their most directly comparable GAAP 
           financial measures are included in the tables below. 
 

Non-Cash Goodwill Impairment

The Company expects to record a non-cash goodwill impairment charge within its Apria division of approximately $310 million, or approximately ($4.00) net loss per share. The impairment charge relates to a combination of factors occurring in the fourth quarter 2024. The majority of these factors are related to financial market changes inclusive of a decline in Owens & Minor's stock price and rising interest rates. Additionally, anticipated changes in pricing of a capitated contract also contributed to this charge.

Note: Preliminary results and the amount of the non-cash goodwill impairment remain subject to final management review and audit.

Investor Conference Call for Fourth Quarter and Full Year 2024 Financial Results

Owens & Minor will host a conference call for investors and analysts on Friday, February 28, 2025, at 8:30 a.m. ET. 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 2024 preliminary financial results, our ability to raise additional financing for our acquisition of Rotech on favorable terms or at all, the risk that the proposed acquisition of Rotech will not be consummated in a timely manner 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, 2023, filed with the SEC on February 20, 2024, including the sections captioned "Forward-Looking Statements" and "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$(R)$, Byram(R) 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$(TM)$. 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.

OMI-CORP

OMI-IR

SOURCE: Owens & Minor, Inc.

Owens & Minor, Inc.

GAAP/Non-GAAP Reconciliations (unaudited)

(dollars in millions, except per share data)

The following table provides a reconciliation of expected net loss and net loss per common share to non-GAAP measures used by management.

 
                              Three Months        Year Ended 
                             Ended December      December 31, 
                                31, 2024             2024 
--------------------------  -----------------  ----------------- 
                              Low      High      Low      High 
--------------------------  -------  --------  -------  -------- 
Net loss, as reported 
 (GAAP)                     $ (311)  $  (288)  $ (378)  $  (355) 
--------------------------   ------   -------   ------   ------- 
Pre-tax adjustments: 
--------------------------   ------   -------   ------   ------- 
      Acquisition-related 
       charges and 
       intangible 
       amortization (1)          25        25       87        87 
--------------------------   ------   -------   ------   ------- 
      Exit and realignment 
       charges, net (2)          25        25      110       110 
--------------------------   ------   -------   ------   ------- 
      Goodwill impairment 
       charges (3)              320       300      320       300 
--------------------------   ------   -------   ------   ------- 
      Litigation and 
       related charges 
       (4)                        -         -       17        17 
--------------------------   ------   -------   ------   ------- 
      Other (5)                   1         1        3         3 
--------------------------   ------   -------   ------   ------- 
Income tax benefit on 
 pre-tax adjustments (6)       (19)      (19)     (59)      (59) 
--------------------------   ------   -------   ------   ------- 
One-time income tax charge 
 (7)                              -         -       17        17 
--------------------------   ------   -------   ------   ------- 
Net income, adjusted 
 (non-GAAP) (Adjusted Net 
 Income)                    $    41  $     44  $   117  $    120 
--------------------------   ------   -------   ------   ------- 
 
Net loss per share, as 
 reported (GAAP)            $(4.03)  $ (3.73)  $(4.92)  $ (4.63) 
--------------------------   ------   -------   ------   ------- 

(MORE TO FOLLOW) Dow Jones Newswires

February 03, 2025 06:30 ET (11:30 GMT)