UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2013 (July 29, 2013)
Owens & Minor, Inc.
(Exact name of registrant as specified in its charter)
Virginia | 1-9810 | 54-1701843 | ||
(State or other jurisdiction of incorporation |
(Commission File Number) |
(IRS Employer Identification No.) |
9120 Lockwood Blvd., Mechanicsville, Virginia | 23116 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code (804) 723-7000
Not applicable
(former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On July 29, 2013, Owens & Minor, Inc. (the Company) issued a press release regarding its financial results for the second quarter ended June 30, 2013. The Company is furnishing the press release attached hereto as Exhibit 99.1 pursuant to Item 2.02 of Form 8-K. In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On July 29, 2013, the Company announced that Executive Vice President & Chief Operating Officer James L. Bierman has been promoted to President & Chief Operating Officer effective August 1, 2013. Current Chairman, President & Chief Executive Officer Craig R. Smith will continue as Chairman & Chief Executive Officer of the Company.
Mr. Bierman, age 60, joined the Company in June 2007 as Senior Vice President, Chief Financial Officer, was promoted to Executive Vice President & Chief Financial Officer in April 2011 and was appointed Executive Vice President & Chief Operating Officer in March 2012. Mr. Bierman served as Executive Vice President & Chief Financial Officer at Quintiles Transnational Corp. from 2001 to 2004, having joined Quintiles in 1998. From 1988 to 1998, he was a partner of Arthur Andersen LLP. As compensation for his services as President & Chief Operating Officer, Mr. Bierman will receive an increase in his annual base salary from $625,000 to $700,000 and a special grant of $215,000 in shares of restricted stock which vest at the end of five years from the date of grant provided Mr. Bierman remains in the Companys employ (in accordance with the Companys standard form grant agreement for such restricted stock awards).
The press release announcing the foregoing management changes is included as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(c) | Exhibits. |
99.1 Press Release issued by the Company on July 29, 2013 regarding Second Quarter Financial Results (furnished pursuant to Item 2.02).
99.2 Press Release issued by the Company on July 29, 2013 regarding Management Change
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
OWENS & MINOR, INC. | ||||||||
Date: July 30, 2013 | By: | /s/ Grace R. den Hartog | ||||||
Name: | Grace R. den Hartog | |||||||
Title: | Senior Vice President, General Counsel and Corporate Secretary |
Exhibit Index
Exhibit |
Description | |
99.1 | Press Release issued by the Company on July 29, 2013 regarding Second Quarter Financial Results (furnished pursuant to Item 2.02). | |
99.2 | Press Release issued by the Company on July 29, 2013 regarding Management Change |
Exhibit 99.1
FOR IMMEDIATE RELEASE
July 29, 2013
Owens & Minor Releases 2nd Quarter 2013 Financial Results, Including a 3.7% Increase in Quarterly Revenues
RICHMOND, VA Owens & Minor, Inc. (NYSE-OMI) today reported financial results for the second quarter ended June 30, 2013, including consolidated quarterly revenues of $2.27 billion, increased 3.7% when compared to quarterly revenues of $2.19 billion for the second quarter of 2012. The companys International segment, consisting primarily of Movianto which was acquired in the third quarter of 2012, contributed $123.0 million to second quarter consolidated revenues.
For the second quarter of 2013, net income was $28.9 million, or $0.46 per diluted share, a decline of 4.1% when compared to $30.1 million, or $0.48 per diluted share, for the same period of 2012. For the quarter, adjusted net income (non-GAAP), which excludes pre-tax charges of $0.6 million for acquisition-related and exit & realignment activities in each period, was $29.3 million, or $0.46 per diluted share, compared to $30.5 million, or $0.48 per diluted share, for the same period last year.
While conditions remain challenging in the U.S. healthcare market, we continue to work on improving day-to-day operations, while making the right investments for our future, said Craig R. Smith, chairman, president & chief executive officer of Owens & Minor. We continue to receive validation of our approach to the market from our provider and manufacturer partners. While we are very encouraged by the progress we are making in Europe with Movianto, we recognize we still have work to do this year to achieve the goals we have established for our International segment.
Consolidated operating earnings for the second quarter of 2013 were $50.1 million, a decrease of $3.1 million when compared to operating earnings of $53.2 million for the same period in the prior year.
Adjusted consolidated operating earnings (non-GAAP) for the second quarter of 2013 were $50.7 million, or 2.24% of revenues, decreased $3.1 million, when compared to adjusted operating earnings of $53.8 million, or 2.46% of revenues, in the same period of 2012. For purposes of comparison, the second quarter 2012 results did not contain results from the companys International segment. On a sequential basis, second quarter adjusted consolidated operating earnings (non-GAAP) as a percentage of revenues improved when compared to both the first quarter of 2013 and the fourth quarter of 2012.
2013 Year-to-Date Results
For the six months ended June 30, 2013, consolidated revenues were $4.54 billion, increased approximately $140 million, or 3.2%, when compared to revenues of $4.40 billion for the first six months of 2012. The International segment contributed $244.0 million to consolidated revenues for the first half of the year. Net income for the first half of 2013 was $55.0 million, or $0.87 per diluted share,
1
a decline of 7.6% when compared to net income of $59.5 million, or $0.94 per diluted share in the same period last year. For the year-to-date period, adjusted net income (non-GAAP), which excludes pre-tax charges of $2.6 million for acquisition-related and exit & realignment activities, was $56.9 million, or $0.90 per diluted share, compared to $59.8 million, or $0.94 per diluted share, in the first six months of 2012.
Consolidated operating earnings for the year-to-date period of 2013 were $97.9 million, or 2.16% of revenues, compared to operating earnings of $105.0 million, or 2.39% of revenues, for the same period of 2012. Adjusted consolidated operating earnings for the year-to-date period were $100.6 million, or 2.21% of revenues, compared to adjusted operating earnings of $105.7 million, or 2.40% of revenues for the same period last year.
Asset Management
The balance of cash and cash equivalents was $208 million at June 30, 2013. For the first half of 2013, the company reported cash provided by operating activities of approximately $180 million, compared to $143 million for the same period last year. The increase in cash from operations was primarily affected by an increase in accounts payable of $191 million, due to an increase in inventories and the timing of payments. Asset management metrics were positive with Domestic segment days sales outstanding (DSO) of 19.3 days as of June 30, 2013, compared favorably to days sales outstanding (DSO) of 19.5 as of June 30, 2012. Domestic inventory turns were 10.3 for the second quarter of 2013, compared to inventory turns of 10.8 for the second quarter of 2012.
Segment Results
Domestic segment revenues for the second quarter of 2013 were $2.14 billion, a decline of 1.9% when compared to the prior years second quarter revenue of $2.19 billion. The decline in second quarter Domestic segment revenues was primarily due to ongoing market trends, including lower rates of healthcare utilization and reduced government purchases, as well as the companys continued rationalization of smaller, less profitable provider and supplier customers. For the year-to-date period, Domestic segment revenues were $4.3 billion, a decline of 2.4% when compared to revenues of $4.4 billion for the same period last year.
For the second quarter of 2013, Domestic segment operating earnings were $51.2 million, or 2.39% of segment revenues, a decline of approximately $2.5 million when compared to operating earnings of $53.8 million, or 2.46% of segment revenues, in the same period of 2012. During the second quarter of 2013, Domestic segment operating earnings benefitted from settlement of an administrative review by the state of California related to certain municipal sales tax incentives in the net amount of $3.5 million. Domestic segment operating earnings were also positively affected by certain supplier price changes. The majority of the benefits were offset by certain expenses, including higher than expected healthcare costs, litigation expenses, adjustments to benefit accruals, and expenses associated with the transition to a new fleet vendor. For the year-to-date period, Domestic segment operating earnings were $104.2 million, or 2.42% of segment revenues, a decline of $1.5 million when compared to segment operating earnings of $105.7 million in the same period in the prior year.
2
The International segment contributed revenue of $123.0 million for the second quarter of 2013 and had an operating loss of $0.6 million. The company attributed the sequential improvement in the International segment operating losses to improved capacity utilization and continued attention to cost control measures. For the year-to-date period, the International segment reported $244.0 million in revenues, and an operating loss of $3.6 million, which reduced year-to-date consolidated net income by $0.05 per diluted share.
2013 Outlook
The company reaffirmed its financial guidance for 2013, which remains unchanged since it was provided at the companys Investor Day in November 2012.
For 2013, the company is targeting revenue growth of 2% to 4% and adjusted net income per diluted share of $1.90 to $2.00 for the year, which includes operating results from the Movianto acquisition, but excludes exit and realignment costs, as well as acquisition-related costs.
The 2013 outlook is based on certain assumptions that are subject to the risk factors discussed in the companys filings with the Securities & Exchange Commission.
Highlights
| In the second quarter of 2013, Owens & Minor signed a three-year agreement with MedAssets, effective September 1, 2013, which will remain in effect through August 31, 2016. |
| Owens & Minor was honored with a number of awards and distinctions during the second quarter of 2013, including the following: |
| Owens & Minor Distribution has been selected as an Inbound Logistics Top 100 Third-Party Logistics Provider for 2013. |
| Owens & Minor was named U.S. Healthcare Supplier of the Year: Large Organization in the 13th Annual GHXcellence Awards for leveraging supply chain automation and trading partner collaboration to drive out costs, reduce waste and improve business performance. |
| In June, the Premier healthcare alliance recognized Owens & Minor with the Premier Pinnacle Award, the Premier Polaris Award, and the Premier Supplier Diversity Award. |
Investors Conference Call & Supplemental Material
Conference Call: Owens & Minor will conduct a conference call for investors on Tuesday, July 30, 2013, at 8:30 a.m. EDT. The access code for the conference call, international dial-in and replay is #17405913. Participants may access the call at 866-393-1604. The international dial-in number is 224-357-2191. Replay: A replay of the call will be available for one week by dialing 855-859-2056. Webcast: A listen-only webcast of the call, along with supplemental information, will be available on www.owens-minor.com under Investor Relations.
Information on www.Owens-Minor.com
Owens & Minor uses its website, www.owens-minor.com, as a channel of distribution for material company information, including news releases, investor presentations and financial information. This information is routinely posted and accessible under the Investor Relations section.
3
Safe Harbor Statement
Except for historical information, the matters discussed in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risk factors are discussed in reports filed by the company with the Securities & Exchange Commission. All of this information is available at www.owens-minor.com. The company assumes no obligation, and expressly disclaims any such obligation, to update or alter information, whether as a result of new information, future events, or otherwise.
Owens & Minor, Inc., (NYSE: OMI) a FORTUNE 500 company headquartered in Richmond, Virginia, is a leading national distributor of name-brand medical and surgical supplies. Owens & Minor also offers global third-party logistics services to pharmaceutical, life-science, and medical-device manufacturers through its European business unit, Movianto, and through its U.S.-based service, OM HealthCare Logistics. With a diverse product and service offering and distribution centers throughout the United States, the company serves hospitals, integrated healthcare systems, alternate site locations, group purchasing organizations, healthcare manufacturers, and the federal government. Owens & Minor also provides technology and consulting programs that improve inventory management and streamline logistics across the entire medical supply chain. For news releases, or for more information about Owens & Minor, visit the company website at www.owens-minor.com.
CONTACTS: | Trudi Allcott, Director, Investor & Media Relations, 804-723-7555; | |
Chuck Graves, Director, Finance & Investor Relations, 804-723-7556 |
Source: Owens & Minor, Inc.
4
Owens & Minor, Inc.
Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
Three Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
Net revenue |
$ | 2,266,687 | $ | 2,185,444 | ||||
Cost of goods sold |
1,993,256 | 1,974,015 | ||||||
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Gross margin |
273,431 | 211,429 | ||||||
Selling, general and administrative expenses |
212,548 | 150,288 | ||||||
Acquisition-related and exit and realignment charges |
638 | 617 | ||||||
Depreciation and amortization |
12,276 | 8,515 | ||||||
Other operating income, net |
(2,081 | ) | (1,168 | ) | ||||
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Operating earnings |
50,050 | 53,177 | ||||||
Interest expense, net |
3,248 | 3,487 | ||||||
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Income before income taxes |
46,802 | 49,690 | ||||||
Income tax provision |
17,930 | 19,577 | ||||||
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Net income |
$ | 28,872 | $ | 30,113 | ||||
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Net income per common share: |
||||||||
Basic |
$ | 0.46 | $ | 0.48 | ||||
Diluted |
$ | 0.46 | $ | 0.48 |
Six Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
Net revenue |
$ | 4,542,395 | $ | 4,403,326 | ||||
Cost of goods sold |
3,989,913 | 3,977,569 | ||||||
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|
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Gross margin |
552,482 | 425,757 | ||||||
Selling, general and administrative expenses |
430,269 | 305,860 | ||||||
Acquisition-related and exit and realignment charges |
2,648 | 617 | ||||||
Depreciation and amortization |
24,905 | 17,093 | ||||||
Other operating income, net |
(3,274 | ) | (2,862 | ) | ||||
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|
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Operating earnings |
97,934 | 105,049 | ||||||
Interest expense, net |
6,446 | 6,909 | ||||||
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Income before income taxes |
91,488 | 98,140 | ||||||
Income tax provision |
36,518 | 38,667 | ||||||
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Net income |
$ | 54,970 | $ | 59,473 | ||||
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Net income per common share: |
||||||||
Basic |
$ | 0.87 | $ | 0.94 | ||||
Diluted |
$ | 0.87 | $ | 0.94 |
Page 5
Owens & Minor, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)
June 30, 2013 |
December 31, 2012 |
|||||||
Assets |
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Current assets |
||||||||
Cash and cash equivalents |
$ | 207,826 | $ | 97,888 | ||||
Accounts and notes receivable, net |
550,642 | 553,502 | ||||||
Merchandise inventories |
794,020 | 763,756 | ||||||
Other current assets |
248,219 | 213,748 | ||||||
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Total current assets |
1,800,707 | 1,628,894 | ||||||
Property and equipment, net |
187,512 | 191,841 | ||||||
Goodwill, net |
272,597 | 274,884 | ||||||
Intangible assets, net |
40,050 | 42,313 | ||||||
Other assets, net |
78,628 | 69,769 | ||||||
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Total assets |
$ | 2,379,494 | $ | 2,207,701 | ||||
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Liabilities and equity |
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Current liabilities |
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Accounts payable |
$ | 791,004 | $ | 603,137 | ||||
Accrued payroll and related liabilities |
27,106 | 25,468 | ||||||
Deferred income taxes |
46,646 | 40,758 | ||||||
Other current liabilities |
225,428 | 254,924 | ||||||
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Total current liabilities |
1,090,184 | 924,287 | ||||||
Long-term debt, excluding current portion |
214,682 | 215,383 | ||||||
Deferred income taxes |
29,501 | 30,921 | ||||||
Other liabilities |
55,306 | 63,454 | ||||||
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Total liabilities |
1,389,673 | 1,234,045 | ||||||
Total equity |
989,821 | 973,656 | ||||||
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Total liabilities and equity |
$ | 2,379,494 | $ | 2,207,701 | ||||
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Page 6
Owens & Minor, Inc.
Consolidated Statements of Cash Flows (unaudited)
(in thousands)
Six Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
Operating activities: |
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Net income |
$ | 54,970 | $ | 59,473 | ||||
Adjustments to reconcile net income to cash provided by operating activities: |
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Depreciation and amortization |
24,905 | 17,093 | ||||||
Share-based compensation expense |
3,449 | 4,126 | ||||||
Provision for losses on accounts and notes receivable |
315 | 270 | ||||||
Deferred income tax expense (benefit) |
5,777 | (1,146 | ) | |||||
Changes in operating assets and liabilities: |
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Accounts and notes receivable |
1,789 | 21,239 | ||||||
Merchandise inventories |
(31,176 | ) | 57,519 | |||||
Accounts payable |
191,406 | (16,075 | ) | |||||
Net change in other assets and liabilities |
(69,462 | ) | 684 | |||||
Other, net |
(2,794 | ) | (404 | ) | ||||
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Cash provided by operating activities |
179,179 | 142,779 | ||||||
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Investing activities: |
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Additions to property and equipment |
(16,221 | ) | (5,460 | ) | ||||
Additions to computer software and intangible assets |
(14,826 | ) | (12,697 | ) | ||||
Proceeds from the sale of property and equipment |
68 | 115 | ||||||
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Cash used for investing activities |
(30,979 | ) | (18,042 | ) | ||||
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Financing activities: |
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Cash dividends paid |
(30,411 | ) | (27,956 | ) | ||||
Repurchases of common stock |
(8,297 | ) | (7,500 | ) | ||||
Financing costs paid |
| (1,303 | ) | |||||
Excess tax benefits related to share-based compensation |
550 | 1,160 | ||||||
Proceeds from exercise of stock options |
4,195 | 3,761 | ||||||
Other, net |
(5,167 | ) | (3,900 | ) | ||||
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Cash used for financing activities of continuing operations |
(39,130 | ) | (35,738 | ) | ||||
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Effect of exchange rate changes on cash and cash equivalents |
868 | | ||||||
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Net increase in cash and cash equivalents |
109,938 | 88,999 | ||||||
Cash and cash equivalents at beginning of period |
97,888 | 135,938 | ||||||
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Cash and cash equivalents at end of period |
$ | 207,826 | $ | 224,937 | ||||
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Page 7
Owens & Minor, Inc.
Financial Statistics and GAAP/Non-GAAP Reconciliations (unaudited)
(in thousands, except ratios and per share data)
Quarter Ended | ||||||||||||||||||||
6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | ||||||||||||||||
Consolidated operating results: |
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Net revenue |
$ | 2,266,687 | $ | 2,275,709 | $ | 2,324,924 | $ | 2,179,895 | $ | 2,185,444 | ||||||||||
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Gross margin |
$ | 273,431 | $ | 279,052 | $ | 270,774 | $ | 228,123 | $ | 211,429 | ||||||||||
Gross margin as a percent of revenue |
12.06 | % | 12.26 | % | 11.65 | % | 10.46 | % | 9.67 | % | ||||||||||
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SG&A expenses |
$ | 212,548 | $ | 217,721 | $ | 211,415 | $ | 165,320 | $ | 150,288 | ||||||||||
SG&A expenses as a percent of revenue |
9.38 | % | 9.57 | % | 9.09 | % | 7.58 | % | 6.88 | % | ||||||||||
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Operating earnings, as reported (GAAP) |
$ | 50,050 | $ | 47,884 | $ | 45,041 | $ | 46,663 | $ | 53,177 | ||||||||||
Acquisition-related and exit and realignment charges |
638 | 2,010 | 1,717 | 7,831 | 617 | |||||||||||||||
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Operating earnings, adjusted (Non-GAAP) |
$ | 50,688 | $ | 49,894 | $ | 46,758 | $ | 54,494 | $ | 53,794 | ||||||||||
Operating earnings as a percent of revenue, adjusted (Non-GAAP) |
2.24 | % | 2.19 | % | 2.01 | % | 2.50 | % | 2.46 | % | ||||||||||
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Net income, as reported (GAAP) |
$ | 28,872 | $ | 26,098 | $ | 24,934 | $ | 24,597 | $ | 30,113 | ||||||||||
Acquisition-related and exit and realignment charges, after-tax |
412 | 1,521 | 1,237 | 6,588 | 375 | |||||||||||||||
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Net income, adjusted (Non-GAAP) |
$ | 29,284 | $ | 27,619 | $ | 26,171 | $ | 31,185 | $ | 30,488 | ||||||||||
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Net income per diluted common share, as reported (GAAP) |
$ | 0.46 | $ | 0.41 | $ | 0.39 | $ | 0.39 | $ | 0.48 | ||||||||||
Acquisition-related and exit and realignment charges |
| 0.03 | 0.02 | 0.10 | | |||||||||||||||
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Net income per diluted common share, adjusted (Non-GAAP) |
$ | 0.46 | $ | 0.44 | $ | 0.41 | $ | 0.49 | $ | 0.48 | ||||||||||
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Financing: |
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Cash and cash equivalents |
$ | 207,826 | $ | 218,563 | $ | 97,888 | $ | 79,667 | $ | 224,937 | ||||||||||
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Total interest-bearing debt |
$ | 216,994 | $ | 216,414 | $ | 217,591 | $ | 216,924 | $ | 213,982 | ||||||||||
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Stock information: |
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Cash dividends per common share |
$ | 0.24 | $ | 0.24 | $ | 0.22 | $ | 0.22 | $ | 0.22 | ||||||||||
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Stock price at quarter-end |
$ | 33.83 | $ | 32.56 | $ | 28.51 | $ | 29.88 | $ | 30.63 | ||||||||||
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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 Companys 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 Companys 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.
Page 8
Owens & Minor, Inc.
Summary Segment Information (unaudited)
(in thousands, except ratios)
Three Months Ended June 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Amount | % of consolidated net revenue |
Amount | % of consolidated net revenue |
|||||||||||||
Net revenue: |
||||||||||||||||
Domestic |
$ | 2,143,690 | 94.57 | % | $ | 2,185,444 | 100.00 | % | ||||||||
International |
122,997 | 5.43 | N/A | N/A | ||||||||||||
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Consolidated net revenue |
$ | 2,266,687 | 100.00 | % | $ | 2,185,444 | 100.00 | % | ||||||||
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|
|
|
|
|
|||||||||
% of segment net revenue |
% of segment net revenue |
|||||||||||||||
Operating earnings (loss): |
||||||||||||||||
Domestic |
$ | 51,245 | 2.39 | % | $ | 53,794 | 2.46 | % | ||||||||
International |
(557 | ) | (0.45 | )% | N/A | N/A | ||||||||||
Acquisition-related and exit and realignment charges |
(638 | ) | N/A | (617 | ) | N/A | ||||||||||
|
|
|
|
|||||||||||||
Consolidated operating earnings |
$ | 50,050 | 2.21 | % | $ | 53,177 | 2.43 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization: |
||||||||||||||||
Domestic |
$ | 8,887 | $ | 8,515 | ||||||||||||
International |
3,389 | N/A | ||||||||||||||
|
|
|
|
|||||||||||||
Consolidated depreciation and amortization |
$ | 12,276 | $ | 8,515 | ||||||||||||
|
|
|
|
|||||||||||||
Capital expenditures: (1) |
||||||||||||||||
Domestic |
$ | 12,872 | $ | 9,781 | ||||||||||||
International |
3,398 | N/A | ||||||||||||||
|
|
|
|
|||||||||||||
Consolidated capital expenditures |
$ | 16,270 | $ | 9,781 | ||||||||||||
|
|
|
|
|||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Amount | % of consolidated net revenue |
Amount | % of consolidated net revenue |
|||||||||||||
Net revenue: |
||||||||||||||||
Domestic |
$ | 4,298,406 | 94.63 | % | $ | 4,403,326 | 100.00 | % | ||||||||
International |
243,989 | 5.37 | N/A | N/A | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Consolidated net revenue |
$ | 4,542,395 | 100.00 | % | $ | 4,403,326 | 100.00 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
% of segment net revenue |
% of segment net revenue |
|||||||||||||||
Operating earnings (loss): |
||||||||||||||||
Domestic |
$ | 104,151 | 2.42 | % | $ | 105,666 | 2.40 | % | ||||||||
International |
(3,569 | ) | (1.46 | )% | N/A | N/A | ||||||||||
Acquisition-related and exit and realignment charges |
(2,648 | ) | N/A | (617 | ) | N/A | ||||||||||
|
|
|
|
|||||||||||||
Consolidated operating earnings |
$ | 97,934 | 2.16 | % | $ | 105,049 | 2.39 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization: |
||||||||||||||||
Domestic |
$ | 17,969 | $ | 17,093 | ||||||||||||
International |
6,936 | N/A | ||||||||||||||
|
|
|
|
|||||||||||||
Consolidated depreciation and amortization |
$ | 24,905 | $ | 17,093 | ||||||||||||
|
|
|
|
|||||||||||||
Capital expenditures: (1) |
||||||||||||||||
Domestic |
$ | 24,474 | $ | 18,157 | ||||||||||||
International |
6,573 | N/A | ||||||||||||||
|
|
|
|
|||||||||||||
Consolidated capital expenditures |
$ | 31,047 | $ | 18,157 | ||||||||||||
|
|
|
|
|||||||||||||
June 30, 2013 |
December 31, 2012 |
|||||||||||||||
Total assets: |
||||||||||||||||
Domestic |
$ | 1,757,369 | $ | 1,723,699 | ||||||||||||
International |
414,299 | 386,114 | ||||||||||||||
|
|
|
|
|||||||||||||
Segment assets |
2,171,668 | 2,109,813 | ||||||||||||||
Cash and cash equivalents |
207,826 | 97,888 | ||||||||||||||
|
|
|
|
|||||||||||||
$ | 2,379,494 | $ | 2,207,701 | |||||||||||||
|
|
|
|
(1) | Represents additions to property and equipment and additions to computer software and separately acquired intangible assets. |
Page 9
Owens & Minor, Inc.
Net Income Per Common Share (unaudited)
(in thousands, except per share data)
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: |
||||||||||||||||
Net income |
$ | 28,872 | $ | 30,113 | $ | 54,970 | $ | 59,473 | ||||||||
Less: income allocated to unvested restricted shares |
(156 | ) | (194 | ) | (351 | ) | (421 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to common shareholders - basic |
28,716 | 29,919 | 54,619 | 59,052 | ||||||||||||
Add: undistributed income attributable to unvested restricted shares - basic |
64 | 87 | 122 | 176 | ||||||||||||
Less: undistributed income attributable to unvested restricted shares - diluted |
(64 | ) | (87 | ) | (122 | ) | (175 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to common shareholders - diluted |
$ | 28,716 | $ | 29,919 | $ | 54,619 | $ | 59,053 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Denominator: |
||||||||||||||||
Weighted average shares outstanding - basic |
62,707 | 62,815 | 62,695 | 62,825 | ||||||||||||
Dilutive shares - stock options |
45 | 80 | 51 | 89 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding - diluted |
62,752 | 62,895 | 62,746 | 62,914 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income per share attributable to common shareholders: |
||||||||||||||||
Basic |
$ | 0.46 | $ | 0.48 | $ | 0.87 | $ | 0.94 | ||||||||
Diluted |
$ | 0.46 | $ | 0.48 | $ | 0.87 | $ | 0.94 |
Page 10
Exhibit 99.2
FOR IMMEDIATE RELEASE
July 29, 2013
Owens & Minor Promotes James L. Bierman
to President & Chief Operating Officer of Owens & Minor
RICHMOND, VA Owens & Minor, Inc. (NYSE: OMI) announced today that James L. Bierman, Executive Vice President & Chief Operating Officer, has been promoted to President & Chief Operating Officer of Owens & Minor, effective August 1, 2013. Craig R. Smith, will remain as Chairman & Chief Executive Officer. Smith, 62, who previously held the title of Chairman, President & Chief Executive Officer, was appointed Chairman of the Board on April 26, 2013.
Bierman, 60, has served the company as Executive Vice President & Chief Operating Officer since March 1, 2012, after joining Owens & Minor as Senior Vice President & Chief Financial Officer on June 13, 2007. In this new role, Bierman will continue to report to Smith, and will have day-to-day oversight of Owens & Minors sales, operations and logistics, and will work with the management team to develop the companys business in Europe and Asia.
Jim has proven that he has the leadership skills, the financial acumen, and the operational abilities to lead Owens & Minor into the future, said Craig R. Smith. He has taken the lead in realigning our sales efforts to successfully serve a changing marketplace; he has energized our home office teams; and he has applied a new financial discipline to our relationships with customers, suppliers and manufacturers. His promotion to president of our company salutes these achievements. We are very fortunate to have an executive of this caliber on our leadership team.
Prior to joining Owens & Minor, Bierman served as Chief Financial Officer for Quintiles Transnational Corporation, a provider of product development and commercial solutions for the pharmaceutical, biotech and medical-device industries. His experience also includes 22 years with Arthur Andersen & Co., where he was a partner, serving clients in the healthcare and financial markets.
Owens & Minor, Inc., (NYSE: OMI) a FORTUNE 500 company headquartered in Richmond, Virginia, is a leading national distributor of name-brand medical and surgical supplies. Owens & Minor also offers global third-party logistics services to pharmaceutical, life-science, and medical-device manufacturers through its European business unit, Movianto, and through its U.S.-based service, OM HealthCare Logistics. With a diverse product and service offering and distribution centers throughout the United States, the company serves hospitals, integrated healthcare systems, alternate site locations, group purchasing organizations, healthcare manufacturers, and the federal government. Owens & Minor also provides technology and consulting programs that improve inventory management and streamline logistics across the entire medical supply chain. For news releases, or for more information about Owens & Minor, visit the company website at www.owens-minor.com.
Contact:
Trudi Allcott, Director, Investor & Media Relations, truitt.allcott@owens-minor.com; 804-723-7555;
Chuck Graves, Director, Finance & Investor Relations, chuck.graves@owens-minor.com; 804-723-7556