Latest news with #PatientDirect
Yahoo
2 days ago
- Business
- Yahoo
Owens & Minor and Rotech Healthcare Agree to End Previously Planned Acquisition
Owens & Minor, Inc. (NYSE:OMI) announced that it has mutually agreed with Rotech Healthcare Holdings Inc. to cancel their previously planned acquisition. A medical professional in a hospital wearing protective apparel supplied by the healthcare solutions company. As part of the agreement, Owens & Minor has paid $80 million to Rotech Healthcare. Additionally, the company will redeem $1 billion in notes issued in April 2025, which include a mandatory redemption clause, and will terminate the loan commitments from lenders that were intended to finance the acquisition. Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor, Inc. (NYSE:OMI), made the following statement: 'For many months, our teammates, along with the Rotech team, have worked tirelessly in cooperation with the Federal Trade Commission to close this transaction, and while we believe there would have been ample benefits to patients, payors, and providers by adding Rotech to our Patient Direct business, the path to obtain regulatory clearance for this merger proved unviable in terms of time, expense, and opportunity.' He further stated that the company remains confident in its strategy and will continue focusing on expanding its Patient Direct business while prioritizing balance sheet strength through improved cash flow and debt reduction. He emphasized that the home-based care market is growing and dynamic, and Owens & Minor is well-positioned to support patients with chronic conditions. Pesicka also mentioned ongoing discussions with several interested parties regarding the potential sale of their Products and Healthcare Services business. Meanwhile, the company will continue efforts to strengthen this business and capitalize on its growth opportunities. Owens & Minor, Inc. (NYSE:OMI) is a Fortune 500 global healthcare solutions provider, delivering essential products and services that support care from hospitals to patients' homes. While we acknowledge the potential of OMI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Yahoo
09-05-2025
- Business
- Yahoo
Owens & Minor Inc (OMI) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Tariff ...
Revenue: $2.6 billion, up just under 1% as reported, and up 2.3% on a same-day basis compared to the prior year. Patient Direct Revenue: $674 million, grew by 6% compared to Q1 2024; 7.3% growth on a same-day basis. Products and Healthcare Services Revenue: $1.96 billion, declined by 0.8% as reported, but grew 0.7% on a same-day basis. Gross Profit: $526 million or 20% of net revenue. Gross Margin: Expanded by 40 basis points in Patient Direct; consolidated gross margin rate down by about 50 basis points. Distribution, Selling and Administrative Expenses: $462 million or 17.6% of revenue, down from $478 million or 18.3% of revenue in Q1 2024. Adjusted Operating Income: $61 million, an improvement of about 7% versus Q1 2024. Interest Expense: Just under $34 million, down $1.7 million compared to Q1 2024. Adjusted Effective Tax Rate: 31.9%, up from 29.2% in Q1 2024. Adjusted Net Income: $18 million or $0.23 per share, up from $15 million or $0.19 per share last year. Adjusted EBITDA: $122 million, up 5% from $116 million in Q1 2024. Warning! GuruFocus has detected 2 Warning Sign with HAE. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Owens & Minor Inc (NYSE:OMI) reported a 31% increase in operating income for the Patient Direct segment, driven by strategic investments and operational improvements. The company achieved high single-digit revenue growth in sleep supplies and double-digit growth in wound supplies, ostomy, and urology categories. Owens & Minor Inc (NYSE:OMI) successfully opened new state-of-the-art distribution centers in Morgantown, West Virginia, and Sioux Falls, South Dakota, enhancing their distribution network. The company reported a record collection rate in its Byram division, with plans to extend these improvements to the Apria division. Owens & Minor Inc (NYSE:OMI) reaffirmed its guidance for the year, expecting at least 70% of earnings and cash flow to be generated in the second half of 2025. The company faces significant tariff exposure, estimated between $100 million to $150 million, primarily affecting the Products and Healthcare Services segment. Owens & Minor Inc (NYSE:OMI) experienced a decline in gross margin due to rising commodity input costs and adverse foreign currency rates. The potential sale of the Products and Healthcare Services segment creates distractions and uncertainties in day-to-day operations. Interest expenses remain a concern, with the Rotech acquisition financing expected to accrue interest before the deal closes. The company anticipates a challenging cash flow quarter due to increased inventory and strategic initiative costs, impacting working capital. Q: Can you discuss the impact of tariffs on your business and how you are addressing this with your customers? A: Edward Pesicka, President and CEO, explained that the tariff exposure is estimated between $100 million to $150 million, primarily affecting products sourced from China and Thailand. Owens & Minor is working with customers to adjust prices and identify alternative products to mitigate the impact. The company has increased inventory to manage the transition but cannot absorb the full cost of tariffs due to low profit margins. Q: How is foreign exchange volatility affecting your financial outlook for the year? A: Jonathan Leon, CFO, noted that while there was significant volatility in March, particularly in Asian currencies, the situation has stabilized. The company is comfortable with its current guidance, assuming no further significant fluctuations. Q: What is the expected impact of the Rotech acquisition on your financials, and how are you managing the associated debt? A: Jonathan Leon, CFO, stated that the Rotech acquisition is expected to be neutral in the first year and accretive in the second year. The financing is in place, and interest will begin accruing once the deal closes. The company will update guidance upon closing. Q: How are you managing the potential impact of tariffs on your Products and Healthcare Services (P&HS) segment? A: Edward Pesicka, President and CEO, clarified that the tariff exposure is primarily within the P&HS segment. The company is implementing price increases specific to affected products and leveraging its diverse manufacturing footprint to offer alternatives. Q: Can you provide more details on your cash flow expectations for the year, considering recent inventory changes? A: Jonathan Leon, CFO, confirmed that the outlook for cash flow remains unchanged, with expectations for strong free cash flow to be used for debt reduction. The company anticipates improvements in cash flow as the year progresses, despite higher-than-expected costs related to strategic initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Owens & Minor (NYSE:OMI) Reports Sales Below Analyst Estimates In Q1 Earnings
Medical supply and logistics company Owens & Minor (NYSE:OMI) missed Wall Street's revenue expectations in Q1 CY2025, with sales flat year on year at $2.63 billion. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $11 billion at the midpoint. Its non-GAAP profit of $0.23 per share was 14.5% above analysts' consensus estimates. Is now the time to buy Owens & Minor? Find out in our full research report. Revenue: $2.63 billion vs analyst estimates of $2.67 billion (flat year on year, 1.6% miss) Adjusted EPS: $0.23 vs analyst estimates of $0.20 (14.5% beat) Adjusted EBITDA: $121.9 million vs analyst estimates of $116.7 million (4.6% margin, 4.4% beat) The company reconfirmed its revenue guidance for the full year of $11 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $1.73 at the midpoint EBITDA guidance for the full year is $575 million at the midpoint, in line with analyst expectations Operating Margin: 0%, in line with the same quarter last year Free Cash Flow was -$90.76 million compared to -$102.4 million in the same quarter last year Market Capitalization: $599.5 million 'Across the business we continued to see strong execution and progress towards our near and long-term strategies. Patient Direct delivered mid-single digit top-line growth with strong performance in nearly all therapy categories led by Diabetes and Sleep Supplies. The top-line growth combined with strong operational execution delivered mid-teen expansion in EBITDA for the segment. Our Products & Healthcare Services segment saw top-line growth in our Medical Distribution division, as well as good progress on driving profit improvement initiatives. We remain actively engaged in the sale process of our Products & Healthcare Services segment,' said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor. With roots dating back to 1882 and operations spanning approximately 80 countries, Owens & Minor (NYSE:OMI) is a healthcare solutions company that manufactures medical supplies, distributes products to healthcare providers, and delivers medical equipment directly to patients. A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Owens & Minor grew its sales at a tepid 3.6% compounded annual growth rate. This was below our standard for the healthcare sector and is a tough starting point for our analysis. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Owens & Minor's annualized revenue growth of 3.2% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. This quarter, Owens & Minor's $2.63 billion of revenue was flat year on year, falling short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 4.2% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not catalyze better top-line performance yet. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. Owens & Minor was profitable over the last five years but held back by its large cost base. Its average operating margin of 1.2% was weak for a healthcare business. Looking at the trend in its profitability, Owens & Minor's operating margin decreased by 5.9 percentage points over the last five years. The company's two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 2.9 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn't pass those costs onto its customers. This quarter, Owens & Minor's breakeven margin was in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Owens & Minor's EPS grew at an astounding 20.7% compounded annual growth rate over the last five years, higher than its 3.6% annualized revenue growth. However, we take this with a grain of salt because its operating margin didn't expand and it didn't repurchase its shares, meaning the delta came from reduced interest expenses or taxes. In Q1, Owens & Minor reported EPS at $0.23, up from $0.19 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Owens & Minor's full-year EPS of $1.56 to grow 14.9%. We enjoyed seeing Owens & Minor beat analysts' EPS expectations this quarter. We were also glad its full-year revenue guidance was in line with Wall Street's estimates. On the other hand, its revenue missed and its full-year EPS guidance fell slightly short of Wall Street's estimates. Overall, this was a mixed quarter with something for the bulls and something for the bears. The stock traded up 3.5% to $8 immediately after reporting. Is Owens & Minor an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
08-05-2025
- Business
- Business Wire
Owens & Minor Reports First Quarter 2025 Financial Results
RICHMOND, Va.--(BUSINESS WIRE)--Owens & Minor, Inc. (NYSE: OMI) today reported financial results for the first quarter ended March 31, 2025. 'Across the business we continued to see strong execution and progress towards our near and long-term strategies. Patient Direct delivered mid-single digit top-line growth with strong performance in nearly all therapy categories led by Diabetes and Sleep Supplies. The top-line growth combined with strong operational execution delivered mid-teen expansion in EBITDA for the segment. Our Products & Healthcare Services segment saw top-line growth in our Medical Distribution division, as well as good progress on driving profit improvement initiatives. We remain actively engaged in the sale process of our Products & Healthcare Services segment,' said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor. Pesicka concluded, 'Looking ahead, our focus remains on disciplined capital deployment, working towards our leverage target, successfully navigating potential changes in government policy, including tariffs and integrating our planned acquisition of Rotech. We remain bullish on the outlook for our Patient Direct segment and the strengthening of our P&HS businesses.' 2025 Financial Outlook The Company reaffirmed its financial guidance for 2025; summarized below: Revenue for 2025 to be in a range of $10.85 billion to $11.15 billion Adjusted EBITDA for 2025 to be in a range of $560 million to $590 million Adjusted EPS for 2025 to be in a range of $1.60 to $1.85 The Company's outlook for 2025 excludes any impact of the previously announced Rotech acquisition, any potential transaction involving the Products & Healthcare Services segment, future share repurchase activity, and the potential positive or negative impact from any policy shifts, including additional tariffs and retaliatory actions taken in response to such tariffs. The outlook also contains assumptions, including current expectations regarding the impact of general economic conditions. Although the Company does provide guidance for adjusted EBITDA and adjusted EPS (which are non-GAAP financial measures), it is not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. Such elements include, but are not limited to, exit and realignment charges and acquisition-related charges, which could have a significant and unpredictable impact on our GAAP results. As a result, no GAAP guidance or reconciliation of the Company's adjusted EBITDA guidance or adjusted EPS guidance is provided. The outlook is based on certain assumptions that are subject to the risk factors discussed in the Company's filings with the SEC. Investor Conference Call for First Quarter 2025 Financial Results Owens & Minor will host a conference call for investors and analysts on Thursday, May 8, 2025, at 8:00 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 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, 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, 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 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 or follow us on LinkedIn and Instagram. * Registered Trademark or Trademark of O&M Halyard or its affiliates. Owens & Minor, Inc. Condensed Consolidated Balance Sheets (unaudited) (dollars in thousands) March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 59,436 $ 49,382 Accounts receivable, net 580,175 690,241 Merchandise inventories 1,408,539 1,131,879 Other current assets 158,048 149,515 Total current assets 2,206,198 2,021,017 Property and equipment, net 520,332 509,347 Operating lease assets 383,111 355,627 Goodwill 1,331,931 1,331,281 Intangible assets, net 285,086 298,726 Other assets, net 129,766 140,158 Total assets $ 4,856,424 $ 4,656,156 Liabilities and equity Current liabilities Accounts payable $ 1,380,736 $ 1,228,691 Accrued payroll and related liabilities 87,388 151,039 Current portion of long-term debt 49,947 45,549 Other current liabilities 442,144 426,773 Total current liabilities 1,960,215 1,852,052 Long-term debt, excluding current portion 1,897,515 1,808,047 Operating lease liabilities, excluding current portion 324,032 286,212 Deferred income taxes, net 16,307 22,456 Other liabilities 87,376 101,025 Total liabilities 4,285,445 4,069,792 Total equity 570,979 586,364 Total liabilities and equity $ 4,856,424 $ 4,656,156 Expand Owens & Minor, Inc. Consolidated Statements of Cash Flows (unaudited) (dollars in thousands) Three Months Ended March 31, 2025 2024 Operating activities: Net loss $ (24,982 ) $ (21,886 ) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation and amortization 61,153 74,095 Share-based compensation expense 6,928 6,866 Deferred income tax benefit (6,240 ) (3,659 ) Changes in operating lease right-of-use assets and lease liabilities 14,452 1,139 Gain from sale and dispositions of patient service equipment, property and equipment (5,353 ) (15,619 ) Changes in operating assets and liabilities: Accounts receivable, net 111,613 (74,963 ) Merchandise inventories (274,589 ) (35,412 ) Accounts payable 157,668 52,926 Net change in other assets and liabilities (76,476 ) (39,617 ) Other, net 760 3,168 Cash used for operating activities (35,066 ) (52,962 ) Investing activities: Additions to property and equipment (55,697 ) (45,997 ) Proceeds from sale of property and equipment 16,884 49,538 Additions to computer software (8,977 ) (3,411 ) Other, net (410 ) (2,000 ) Cash used for investing activities (48,200 ) (1,870 ) Financing activities: Borrowings under amended Receivables Financing Agreement — 205,000 Repayments under amended Receivables Financing Agreement — (139,300 ) Borrowings under Revolving Credit Facility 776,984 — Repayments under Revolving Credit Facility (679,484 ) — Repayments of term loans — (4,625 ) Repurchase of common stock (1,503 ) — Other, net (3,219 ) (7,755 ) Cash provided by financing activities 92,778 53,320 Effect of exchange rate changes on cash, cash equivalents and restricted cash 542 (618 ) Net increase (decrease) in cash, cash equivalents and restricted cash 10,054 (2,130 ) Cash, cash equivalents and restricted cash at beginning of period 49,382 272,924 Cash, cash equivalents and restricted cash at end of period (1) $ 59,436 $ 270,794 Supplemental disclosure of cash flow information: Income taxes paid, net $ 125 $ 2,365 Interest paid $ 27,487 $ 18,211 Noncash investing activity: Unpaid purchases of property and equipment and computer software at end of period $ 81,085 $ 69,368 Expand (1) There was no restricted cash at March 31, 2025 and December 31, 2024. Expand Owens & Minor, Inc. Summary Segment Information (unaudited) (dollars in thousands) Three Months Ended March 31, 2025 2024 % of % of consolidated consolidated Amount net revenue Amount net revenue Net revenue: Products & Healthcare Services $ 1,958,164 74.4 % $ 1,974,837 75.6 % Patient Direct 673,884 25.6 % 637,843 24.4 % Consolidated net revenue $ 2,632,048 100.0 % $ 2,612,680 100.0 % % of segment % of segment Operating income: net revenue net revenue Products & Healthcare Services $ 1,153 0.06 % $ 11,486 0.58 % Patient Direct 60,141 8.92 % 45,879 7.19 % Acquisition-related charges and intangible amortization (29,674 ) (20,313 ) Exit and realignment charges, net (31,226 ) (27,356 ) Litigation and related charges (1) (270 ) — Consolidated operating income $ 124 $ 9,696 Depreciation and amortization: Products & Healthcare Services $ 10,833 $ 11,547 Patient Direct 35,334 36,465 Intangible amortization 13,785 20,289 Other (2) 1,201 5,794 Consolidated depreciation and amortization $ 61,153 $ 74,095 Capital expenditures: Products & Healthcare Services $ 17,716 $ 8,250 Patient Direct 46,958 41,158 Consolidated capital expenditures $ 64,674 $ 49,408 Adjusted EBITDA (non-GAAP) Products & Healthcare Services $ 24,218 $ 32,972 Patient Direct 97,637 83,298 Consolidated Adjusted EBITDA (non-GAAP) $ 121,855 $ 116,270 Expand (1) Litigation and related charges are reported within Other operating expense, net in our Statements of Operations. Refer to footnote 3 in the GAAP/Non-GAAP Reconciliations below. (2) Other depreciation and amortization expense is captured within exit and realignment charges, net for the three months ended March 31, 2025 and 2024. Expand Owens & Minor, Inc. Net Loss Per Common Share (unaudited) (dollars in thousands, except per share data) Three Months Ended March 31, 2025 2024 Net loss $ (24,982 ) $ (21,886 ) Weighted average shares outstanding - basic 77,272 76,319 Dilutive shares — — Weighted average shares outstanding - diluted 77,272 76,319 Net loss per common share: Basic $ (0.32 ) $ (0.29 ) Diluted $ (0.32 ) $ (0.29 ) Share-based awards for the three months ended March 31, 2025 and 2024 of approximately 1.8 million and 1.6 million shares were excluded from the calculation of net loss per diluted common share as the effect would be anti-dilutive. Expand Owens & Minor, Inc. GAAP/Non-GAAP Reconciliations (unaudited) (dollars in thousands, except per share data) The following table provides a reconciliation of reported operating income, net loss and net loss per common share to non-GAAP measures used by management. Three Months Ended March 31, 2025 2024 Operating income, as reported (GAAP) $ 124 $ 9,696 Acquisition-related charges and intangible amortization (1) 29,674 20,313 Exit and realignment charges, net (2) 31,226 27,356 Litigation and related charges (3) 270 — Operating income, adjusted (non-GAAP) (Adjusted Operating Income) $ 61,294 $ 57,365 Operating income as a percent of net revenue (GAAP) 0.00 % 0.37 % Adjusted operating income as a percent of net revenue (non-GAAP) 2.33 % 2.20 % Net loss, as reported (GAAP) $ (24,982 ) $ (21,886 ) Pre-tax adjustments: Acquisition-related charges and intangible amortization (1) 29,674 20,313 Exit and realignment charges, net (2) 31,226 27,356 Litigation and related charges (3) 270 — Other (4) 424 430 Income tax benefit on pre-tax adjustments (5) (18,539 ) (11,348 ) Net income, adjusted (non-GAAP) (Adjusted Net Income) $ 18,073 $ 14,865 Net loss per common share, as reported (GAAP) $ (0.32 ) $ (0.29 ) After-tax adjustments: Acquisition-related charges and intangible amortization (1) 0.26 0.20 Exit and realignment charges, net (2) 0.29 0.28 Litigation and related charges (3) — — Other (4) — — Net income per common share, adjusted (non-GAAP) (Adjusted EPS) $ 0.23 $ 0.19 Expand Owens & Minor, Inc. GAAP/Non-GAAP Reconciliations (unaudited), continued (dollars in thousands) The following tables provide reconciliations of net loss, total debt and capital expenditures to non-GAAP measures used by management. Three Months Ended March 31, 2025 2024 Net loss, as reported (GAAP) $ (24,982 ) $ (21,886 ) Income tax benefit (10,092 ) (5,226 ) Interest expense, net 33,959 35,655 Acquisition-related charges and intangible amortization (1) 29,674 20,313 Exit and realignment charges, net (2) 31,226 27,356 Other depreciation and amortization (6) 46,168 48,014 Stock compensation (7) 6,598 6,176 LIFO charges (8) 8,610 5,438 Litigation and related charges (3) 270 — Other (4) 424 430 Adjusted EBITDA (non-GAAP) $ 121,855 $ 116,270 Expand Expand Three Months Ended March 31, 2025 2024 Capital expenditures, as reported (GAAP) $ 64,674 $ 49,408 Proceeds from sale of property and equipment (9) (16,884 ) (49,538 ) Net capital expenditures (non-GAAP) (Net Capex) $ 47,790 $ (130 ) Expand The following items have been excluded in our non-GAAP financial measures: (1) Acquisition-related charges consist primarily of one-time costs related to the planned acquisition of Rotech Healthcare Holdings Inc. (Rotech), which consisted primarily of legal and professional fees. For the three months ended March 31, 2025, we incurred $16 million of acquisition-related costs. We incurred no acquisition related charges for the three months ended March 31, 2024. Acquisition-related charges and intangible amortization also include 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, such as 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) Exit and realignment charges, net were $31 million for the three months ended March 31, 2025. These charges primarily related to (1) kitting and manufacturing initiatives of $10 million (2) professional fees associated with the potential sale of our P&HS segment of $7.1 million, (3) an accounts receivable provision of $6.8 million associated with Fusion 5, which is no longer operating (4) $5.7 million in professional fees associated with Patient Direct strategic initiatives and (5) $1.5 million of other charges. Exit and realignment charges, net were $27 million for the three months ended March 31, 2024. These charges primarily related to (1) the 2023-2024 Operating Model Realignment Program of $33 million, including professional fees, severance, and other costs to streamline functions and processes and (2) costs related to IT strategic initiatives such as converting certain divisions to common IT systems of $1.2 million partially offset by (3) a $7.4 million gain on the sale of our corporate headquarters. These costs are not normal recurring, cash operating expenses necessary for the Company to operate its business on an ongoing basis. (3) Litigation and related charges includes settlement costs and related charges of legal matters within our Patient Direct segment. These costs do not occur in the ordinary course of our business and are inherently unpredictable in timing and amount. (4) For the three months ended March 31, 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.). (5) 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. (6) Other depreciation and amortization relates to property and equipment and capitalized computer software, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges. (7) 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. (8) LIFO charges includes non-cash adjustments to merchandise inventories valued at the lower of cost or market, with the approximate cost determined by the last-in, first-out (LIFO) method for distribution inventories in the U.S. within our Products & Healthcare Services segment. (9) Proceeds from sale of property and equipment for the three months ended March 31, 2024 includes $34 million in gross proceeds related to the sale of our corporate headquarters. 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
