EX-99.1 2 d875917dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

February 17, 2015

Owens & Minor Reports 4th Quarter & Full-Year 2014

Financial Results

RICHMOND, VA….Owens & Minor, Inc. (NYSE-OMI) today reported financial results for the fourth quarter and full-year ended December 31, 2014, including the following highlights:

 

•   Consolidated revenue grew 7.5% for the fourth quarter and 4.1% for the year

 

•   Adjusted consolidated net income was $0.49 per diluted share for the fourth quarter and $1.76 per diluted share for 2014

 

•   Owens & Minor completed two acquisitions in the fourth quarter, complementing its surgical kitting capabilities and unitized delivery services in the U.S. and Europe

For the quarter ended December 31, 2014, the company reported consolidated quarterly revenues of $2.49 billion, an increase of 7.5% when compared to the fourth quarter of 2013. Excluding the impact of $46.9 million in revenue from the two acquisitions completed in the fourth quarter of 2014, consolidated quarterly revenues grew 5.5%. Quarterly net income was $14.0 million, or $0.22 per diluted share. For the fourth quarter, adjusted net income (non-GAAP) was $30.9 million, or $0.49 per diluted share. A table providing a reconciliation of reported results to adjusted (non-GAAP) measures is included below.

“Revenue growth in the fourth quarter and for the year exceeded our original expectations, which we view as an endorsement of our approach to serving the healthcare market,” said James L. Bierman, President & Chief Executive Officer of Owens & Minor. “During the fourth quarter we completed the acquisitions of two surgical kitting companies, one in the U.S. and one in Europe. The integrations of these two acquisitions are well underway. With all that we accomplished in 2014, we believe we have set the stage for 2015.”

Consolidated operating earnings for the fourth quarter of 2014, were $40.8 million, a decline of $10.1 million when compared to operating earnings for the same period last year. Adjusted consolidated operating earnings (non-GAAP) for the fourth quarter of 2014 were $59.0 million, or 2.37% of revenues, increased slightly in comparison to last year’s fourth quarter results.

2014 Annual Results

For the year ended December 31, 2014, consolidated revenues were $9.44 billion, an increase of $369 million, or 4.1%, when compared to 2013 revenues. Excluding the impact of $46.9 million in revenue from the two acquired companies, consolidated revenues grew 3.5% for the year. Net income for 2014 was $66.5 million, or $1.06 per diluted share. For the year, adjusted net income (non-GAAP), was $110 million, or $1.76 per diluted share.

Consolidated operating earnings for 2014 were $159.5 million, or 1.69% of revenues, compared to operating earnings of $198.1 million, or 2.18% of revenues, for the same period of 2013. Operating earnings for the full year include a $5.3 million recovery from the settlement of a direct purchaser, anti-trust class-action lawsuit related to the purchases of medical devices and a gain from the sale of an investment. These gains were mostly offset by increased legal fees related to ongoing litigation. Adjusted consolidated operating earnings (non-GAAP) for the full year were $203 million, or 2.15% of revenues.

 

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For the full year, the tax rate increased to 47.4% as a result of the impact of foreign taxes and certain non-deductible acquisition-related costs.

Acquisition Update

Owens & Minor completed the acquisitions of Medical Action Industries, a U.S.-based surgical kitting company, and ArcRoyal, a privately-held surgical kitting company based in Ireland, on October 1 and November 1, 2014, respectively. These two acquisitions expand Owens & Minor’s capabilities in the assembly of surgical and procedure kits, packs and trays in the U.S. and European healthcare markets. Cross functional teams from Owens & Minor and the two acquired companies are working toward integrating the new businesses and achieving synergies in operations, processes and sourcing.

Balance Sheet Recapitalization Update

In the third quarter of 2014, Owens & Minor issued $275 million of 3.875% Senior Notes due 2021 and $275 million of 4.375% Senior Notes due 2024. As a result of the recapitalization, the company incurred a $14.9 million pre-tax loss on the early retirement of its 2016 Senior Notes. During the fourth quarter of 2014, Owens & Minor used proceeds of approximately $446 million to purchase the outstanding shares of Medical Action Industries on October 1, 2014, and to fund the early retirement of the company’s 2016 Senior Notes on October 16, 2014.

Asset Management

The balance of cash and cash equivalents was $56.8 million at December 31, 2014. For the year, the company used $3.8 million of cash for operating activities, compared to cash provided by operating activities of $141 million in the same period last year. The decline in operating cash flow was driven primarily by the timing of payments and increased net working capital needs resulting from strong sales growth. Asset management metrics as of the end of the year included consolidated days sales outstanding (DSO) of 22.1 and consolidated inventory turns of 10.1.

Segment Results

Domestic segment revenues for the fourth quarter of 2014 were $2.35 billion, improved $139 million, or 6.3%, from revenue of $2.21 billion in last year’s fourth quarter. For the full year 2014, Domestic segment revenue increased $264 million to $8.95 billion, when compared to the prior year. Excluding the impact of revenues from the Medical Action acquisition of $40 million, revenue grew 4.5% for the quarter and 2.6% for the year. The Domestic segment achieved improved revenue growth in each successive quarter in 2014, primarily as a result of growth among the company’s larger customer accounts.

For the fourth quarter of 2014, Domestic segment operating earnings were $57.4 million, an increase of nearly $1 million, when compared to the same period of 2013. The increase in Domestic segment quarterly operating earnings, when compared to the prior year, resulted primarily from strong revenue growth. For the full year, Domestic segment operating earnings were $209.3 million, representing 2.34% of segment revenues.

For the International segment, quarterly revenues increased 32.4% to $139 million and were $488 million for the full year. Excluding the impact of $6.9 million in revenues from the ArcRoyal acquisition, International revenues improved 25.8% for the quarter and 25.5% for the year. For the fourth quarter of 2014, the International segment had operating earnings of $1.5 million. For the full-year 2014, the International segment reported operating losses of $6.7 million. Operating losses for the year resulted primarily from factors previously discussed by the company, including the loss of certain customers and the onboarding of a large new customer in the United Kingdom early in 2014.

 

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2015 Outlook

The company provided updated financial guidance for 2015, consistent with the growth guidance originally provided at its December 2014 Investor Day.

For 2015, the company is targeting adjusted net income per diluted share of $1.90 to $1.95.

Reiterating his comments from the company’s Investor Day in December 2014, Bierman said: “We have made a series of significant strategic moves enabling us to realign our organization, enter the European healthcare market, acquire expanded capabilities, and transform our platform into a flexible, dynamic network. Consequently, I have challenged the Owens & Minor leadership team to build upon this foundation with the goal of achieving annualized earnings growth of 10% over the next three years.”

Upcoming Investor Relations Events

Owens & Minor will participate in the following investor conference in the first quarter of 2015; a webcast of the presentation will be available on www.owens-minor.com.

 

  •   Barclays Capital 2015 Global Healthcare Conference; March 11, Miami

Investors Conference Call & Supplemental Material

Conference Call: Owens & Minor’s management team will conduct a conference call for investors on Wednesday, February 18, 2015, at 8:30 a.m. EST. The access code for this event is #73383431. The dial-in number for the live conference call is 866-393-1604; the international dial-in number is 224-357-2191; and a replay of the call will be available for one week by calling 855-859-2056. A webcast of the event, along with supplemental financial information, will be available on www.owens-minor.com under the Investor Relations section.

Owens & Minor uses its Web site, 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.

Included with the press release financial tables are reconciliations of the differences between the non-GAAP financial measures presented in this news release, which exclude acquisition-related and exit and realignment charges, and their most directly comparable GAAP financial measures.

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) is a leading healthcare logistics company dedicated to Connecting the World of Medical Products to the Point of CareTM by providing vital supply chain services to healthcare providers and manufacturers of healthcare products. Owens & Minor provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants. With logistics platforms strategically located in the United States and Europe, Owens & Minor

 

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serves markets where three quarters of global healthcare spending occurs. Owens & Minor’s customers span the healthcare market from independent hospitals to large integrated healthcare networks, as well as group purchasing organizations, healthcare products manufacturers, and the federal government. A FORTUNE 500 company, Owens & Minor is headquartered in Richmond, Virginia, and has annualized revenues exceeding $9 billion. For more information about Owens & Minor, visit the company website at owens-minor.com.

CONTACTS:

Truitt Allcott, Director, Investor & Media Relations, 804-723-7555, truitt.allcott@owens-minor.com

Chuck Graves, Director, Finance & Investor Relations, 804-723-7556, chuck.graves@owens-minor.com

SOURCE: Owens & Minor

 

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Owens & Minor, Inc.

Consolidated Statements of Income (unaudited)

(in thousands, except per share data)

 

     Three Months Ended December 31,  
     2014     2013  

Net revenue

    $ 2,491,817      $ 2,318,524   

Cost of goods sold

      2,177,802        2,027,261   
  

 

 

    

 

 

  

Gross margin

   314,015      291,263   

Selling, general and administrative expenses

   244,152      222,043   

Acquisition-related and exit and realignment charges

   17,988      7,049   

Depreciation and amortization

   15,528      13,239   

Other operating expense (income), net

   (4,426 )    (2,002 ) 
  

 

 

    

 

 

  

Operating earnings

   40,773      50,934   

Interest expense, net

   7,270      3,263   
  

 

 

    

 

 

  

Income before income taxes

   33,503      47,671   

Income tax provision

   19,516      19,729   
  

 

 

    

 

 

  

Net income

 $ 13,987    $ 27,942   
  

 

 

    

 

 

  

Net income per common share:

Basic

 $ 0.22    $ 0.44   

Diluted

 $ 0.22    $ 0.44   
     Twelve Months Ended December 31,  
     2014     2013  

Net revenue

    $ 9,440,182      $ 9,071,532   

Cost of goods sold

      8,270,216        7,954,457   
  

 

 

    

 

 

  

Gross margin

   1,169,966      1,117,075   

Selling, general and administrative expenses

   926,977      863,656   

Acquisition-related and exit and realignment charges

   42,801      12,444   

Depreciation and amortization

   57,125      50,586   

Other operating expense (income), net

   (16,473 )    (7,694 ) 
  

 

 

    

 

 

  

Operating earnings

   159,536      198,083   

Loss on early retirement of debt

   14,890      —     

Interest expense, net

   18,163      13,098   
  

 

 

    

 

 

  

Income before income taxes

   126,483      184,985   

Income tax provision

   59,980      74,103   
  

 

 

    

 

 

  

Net income

 $ 66,503    $ 110,882   
  

 

 

    

 

 

  

Net income per common share:

Basic

 $ 1.06    $ 1.76   

Diluted

 $ 1.06    $ 1.76   

 

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Owens & Minor, Inc.

Condensed Consolidated Balance Sheets (unaudited)

(in thousands)

 

     December 31,
2014		      December 31,
2013		  

Assets

      

Current assets

      

Cash and cash equivalents

    $ 56,772       $ 101,905   

Accounts and notes receivable, net

      626,192         572,854   

Merchandise inventories

      872,457         771,663   

Other current assets

      315,285         279,510   
  

 

 

     

 

 

  

Total current assets

   1,870,706      1,725,932   

Property and equipment, net

   232,979      191,961   

Goodwill, net

   423,276      275,439   

Intangible assets, net

   108,593      40,406   

Other assets, net

   99,852      90,304   
  

 

 

     

 

 

  

Total assets

 $ 2,735,406    $ 2,324,042   
  

 

 

     

 

 

  

Liabilities and equity

Current liabilities

Accounts payable

 $ 608,846    $ 643,872   

Accrued payroll and related liabilities

   31,507      23,296   

Deferred income taxes

   37,979      41,613   

Other current liabilities

   326,223      281,427   
  

 

 

     

 

 

  

Total current liabilities

   1,004,555      990,208   

Long-term debt, excluding current portion

   608,551      212,786   

Deferred income taxes

   63,901      43,727   

Other liabilities

   67,561      52,278   
  

 

 

     

 

 

  

Total liabilities

   1,744,568      1,298,999   

Total equity

   990,838      1,025,043   
  

 

 

     

 

 

  

Total liabilities and equity

 $ 2,735,406    $ 2,324,042   
  

 

 

     

 

 

  

 

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Owens & Minor, Inc.

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

 

     Twelve Months Ended December 31,  
     2014     2013  

Operating activities:

     

Net income

    $ 66,503      $ 110,882   

Adjustments to reconcile net income to cash provided by operating activities:

     

Depreciation and amortization

      63,407        50,586   

Loss on early retirement of debt

      14,890        —     

Share-based compensation expense

      8,207        6,381   

Deferred income tax (benefit) expense

      (3,385 )      3,713   

Provision for losses on accounts and notes receivable

      448        787   

Changes in operating assets and liabilities:

     

Accounts and notes receivable

      (17,803 )      (38,645 ) 

Merchandise inventories

      (57,329 )      (7,064 ) 

Accounts payable

      (52,148 )      47,374   

Net change in other assets and liabilities

      (25,828 )      (32,337 ) 

Other, net

      (723 )      (1,123 ) 
  

 

 

    

 

 

  

Cash (used for) provided by operating activities

   (3,761 )    140,554   
  

 

 

    

 

 

  

Investing activities:

Acquisitions, net of cash acquired

   (248,536 )    —     

Additions to computer software and intangible assets

   (22,384 )    (32,010 ) 

Additions to property and equipment

   (48,424 )    (28,119 ) 

Proceeds from the sale of investment

   1,937      —     

Proceeds from the sale of property and equipment

   156      3,051   
  

 

 

    

 

 

  

Cash used for investing activities

   (317,251 )    (57,078 ) 
  

 

 

    

 

 

  

Financing activities:

Proceeds from issuance of debt

   547,693      —     

Proceeds from revolver

   33,700      —     

Repayment of debt

   (217,352 )    —     

Cash dividends paid

   (63,104 )    (60,731 ) 

Repurchases of common stock

   (9,934 )    (18,876 ) 

Financing costs paid

   (5,391 )    —     

Proceeds from exercise of stock options

   1,180      5,352   

Excess tax benefits related to share-based compensation

   582      898   

Purchase of noncontrolling interest

   (1,500 )    —     

Other, net

   (7,314 )    (8,623 ) 
  

 

 

    

 

 

  

Cash provided by (used for) financing activities

   278,560      (81,980 ) 
  

 

 

    

 

 

  

Effect of exchange rate changes on cash and cash equivalents

   (2,681 )    2,521   
  

 

 

    

 

 

  

Net increase (decrease) in cash and cash equivalents

   (45,133 )    4,017   

Cash and cash equivalents at beginning of period

   101,905      97,888   
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

 $ 56,772    $ 101,905   
  

 

 

    

 

 

  

 

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Owens & Minor, Inc.

Financial Statistics and GAAP/Non-GAAP Reconciliations (unaudited)

(in thousands, except per share data)

 

     Quarter Ended  

(in thousands, except ratios and per share data)

    12/31/2014     9/30/2014     6/30/2014     3/31/2014     12/31/2013  

Consolidated operating results:

           

Domestic

    $ 2,353,321      $ 2,262,081      $ 2,187,535      $ 2,148,915      $ 2,213,949   

International

      138,496        124,045        118.323        107,465        104,575   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenue

 $ 2,491,817    $ 2,386,126    $ 2,305,858    $ 2,256,380    $ 2,318,524   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

 $ 314,015    $ 292,483    $ 282,272    $ 281,195    $ 291,263   

Gross margin as a percent of revenue

   12.60 %    12.26 %    12.24 %    12.46 %    12.56 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

SG&A expenses

 $ 244,152    $ 231,377    $ 225,838    $ 225,610    $ 222,043   

SG&A expenses as a percent of revenue

   9.80 %    9.70 %    9.79 %    10.00 %    9.58 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating earnings, as reported (GAAP)

 $ 40,773    $ 35,377    $ 37,101    $ 46,284    $ 50,934   

Acquisition-related charges (1)

   7,394      4,565      3,490      634      1,970   

Exit and realignment charges (2)

   10,594      9,392      4,103      2,628      5,079   

Fair value adjustments related to purchase accounting (3)

   (3,706 )    —        —        —        —     

Other (4)

   3,907      —        —        —        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating earnings, adjusted (Non-GAAP)

 $ 58,962    $ 49,334    $ 44,694    $ 49,546    $ 57,983   

Operating earnings as a percent of revenue, adjusted (Non-GAAP)

   2.37 %    2.07 %    1.94 %    2.20 %    2.50 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income, as reported (GAAP)

 $ 13,987    $ 7,155    $ 19,876    $ 25,485    $ 27,942   

Acquisition-related charges, after-tax (1)

   6,211      3,543      2,504      450      1,912   

Exit and realignment charges, after-tax (2)

   11,477      6,754      2,591      1,772      3,112   

Fair value adjustments related to purchase accounting, after-tax (3)

   (4,703 )    —        —        —        —     

Other, after-tax (4)

   3,907      —        —        —        —     

Loss on early retirement of debt, after-tax (5)

   —        9,092      —        —        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income, adjusted (Non-GAAP)

 $ 30,879    $ 26,544    $ 24,971    $ 27,707    $ 32,966   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income per diluted common share, as reported (GAAP)

 $ 0.22    $ 0.11    $ 0.32    $ 0.41    $ 0.44   

Acquisition-related charges, after-tax (1)

   0.10      0.06      0.04      0.01      0.03   

Exit and realignment charges, after-tax (2)

   0.18      0.11      0.04      0.02      0.05   

Fair value adjustments related to purchase accounting, after-tax (3)

   (0.07 )    —        —        —        —     

Other, after-tax (4)

   0.06      —        —        —        —     

Loss on early retirement of debt, after tax (5)

   —        0.14      —        —        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income per diluted common share, adjusted (Non-GAAP)

 $ 0.49    $ 0.42    $ 0.40    $ 0.44    $ 0.52   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Financing:

Cash and cash equivalents

 $ 56,772    $ 610,147    $ 92,027    $ 182,373    $ 101,905   

Total interest-bearing debt

 $ 613,809    $ 766,283    $ 221,496    $ 217,261    $ 216,243   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Stock information:

Cash dividends per common share

 $ 0.25    $ 0.25    $ 0.25    $ 0.25    $ 0.24   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Stock price at quarter-end

 $ 35.11    $ 32.74    $ 33.98    $ 35.03    $ 36.56   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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Owens & Minor, Inc.

Financial Statistics and GAAP/Non-GAAP Reconciliations (unaudited)

The following items have been excluded in our non-GAAP financial measures:

 

(1)  Acquisition-related charges in the current year consist primarily of costs incurred to perform due diligence and analysis related to the Medical Action and Arc Royal acquisitions, costs to complete the transactions, and costs to begin the integration of the acquired operations (including certain severance and contractual payments to former management) as well as certain costs in Movianto to resolve issues and claims with the former owner.
(2)  Exit and realignment charges in the current year were associated with optimizing our operations and include the closure and consolidation of certain distribution and logistics centers, administrative offices and warehouses in the United States and Europe. These charges also include other costs associated with our strategic organizational realignment which include management changes, certain professional fees, and costs to streamline administrative functions and processes.
(3)  The fourth quarter of 2014 includes a gain of $6.7 million (pretax) recorded in other operating income, net from a fair value adjustment to contingent consideration related to the Movianto acquisition purchase price, offset by the incremental charge to cost of goods sold of $3.0 million (pretax) from purchase accounting impacts related to the sale of acquired inventory that was written up to fair value in connection with the current year acquisitions.
(4)  The fourth quarter includes a loss in other operating income, net related to an accrual for the estimated settlement amount of a breach of contract claim in the United Kingdom for $3.9 million (pretax).
(5)  In 2014, we repaid our 2016 Notes and recorded a net loss on the early retirement of $14.9 million (pretax), which includes the redemption premium offset by the recognition of a gain on previously settled interest rate swaps.

These charges have been tax effected in the preceding table 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.

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 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 9

Owens & Minor, Inc.

Summary Segment Information (unaudited)

(in thousands)

 

    Three Months Ended December 31,     Twelve Months Ended December 31,  
    2014     2013     2014     2013  
    Amount     % of
consolidated
net revenue		     Amount     % of
consolidated
net revenue		     Amount     % of
consolidated
net revenue		     Amount     % of
consolidated
net revenue		  

Net revenue:

                

Domestic

   $ 2,353,321        94.44 %    $ 2,213,949        95.49 %    $ 8,951,852        94.83 %    $ 8,688,018        95.77 % 

International

     138,496        5.56 %      104,575        4.51 %      488,330        5.17 %      383,514        4.23 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated net revenue

 $ 2,491,817      100.00 %  $ 2,318,524      100.00 %  $ 9,440,182      100.00 %  $ 9,071,532      100.00 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
          % of
segment
net revenue		           % of
segment
net revenue		           % of
segment
net revenue		           % of
segment
net revenue		  

Operating earnings(loss):

                

Domestic

   $ 57,428        2.44 %    $ 56,568        2.56 %    $ 209,277        2.34 %    $ 211,932        2.44 % 

International

     1,534        1.11 %      1,415        1.35 %      (6,740 )      (1.38 )%      (1,405 )      (0.37 )% 

Acquisition-related and exit and realignment charges (1)

     (17,988 )      N/A        (7,049 )      N/A        (42,801 )      N/A        (12,444 )      N/A   

Fair value adjustments related to purchase accounting

     3,706        N/A        —          N/A        3,706        N/A        —          N/A   

Other

     (3,907 )      N/A        —          N/A        (3,907 )      N/A        —          N/A   
 

 

 

      

 

 

      

 

 

      

 

 

    

Consolidated operating earnings

 $ 40,773      1.64 %  $ 50,934      2.20 %  $ 159,535      1.69 %  $ 198,083      2.18 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Depreciation and amortization:

Domestic

 $ 10,420    $ 9,033    $ 37,193    $ 35,808   

International

   5,406      4,206      20,230      14,778   
 

 

 

      

 

 

      

 

 

      

 

 

    

Consolidated depreciation and amortization

 $ 15,826    $ 13,239    $ 57,423    $ 50,586   
 

 

 

      

 

 

      

 

 

      

 

 

    

Capital expenditures: (2)

Domestic

 $ 12,419    $ 8,295    $ 52,529    $ 42,802   

International

   4,232      6,328      18,279      17,327   
 

 

 

      

 

 

      

 

 

      

 

 

    

Consolidated capital expenditures

 $ 16,651    $ 14,623    $ 70,808    $ 60,129   
 

 

 

      

 

 

      

 

 

      

 

 

    
    December 31,
2014		           December 31,
2013		                                

Total assets:

                

Domestic

   $ 2,208,663        $ 1,747,572             

International

     469,971          474,565             
 

 

 

      

 

 

            

Segment assets

   2,678,634      2,222,137   

Cash and cash equivalents

   56,772      101,905   
 

 

 

      

 

 

            

Consolidated total assets

 $ 2,735,406    $ 2,324,042   
 

 

 

      

 

 

            

 

(1) The fourth quarter and year ended December 31, 2014 includes $3.3 million and $6.0 million, respectively of accelerated amortization related to an information system that is being replaced.
(2) Represents additions to property and equipment and additions to computer software and separately acquired intangible assets.

 

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Owens & Minor, Inc.

Net Income Per Common Share (unaudited)

(in thousands, except per share data)

 

     Three Months Ended
December 31,		     Twelve Months Ended
December 31,		  
     2014     2013     2014     2013  

Numerator:

         

Net income

    $ 13,987      $ 27,942      $ 66,503      $ 110,882   

Less: income allocated to unvested restricted shares

      (141 )      (193 )      (597 )      (738 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to common shareholders - basic

   13,846      27,749      65,906      110,144   

Add: undistributed income attributable to unvested restricted shares -basic

   —        67      18      257   

Less: undistributed income attributable to unvested restricted shares -diluted

   —        (67 )    (18 )    (257 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to common shareholders - diluted

 $ 13,846    $ 27,749    $ 65,906    $ 110,144   
  

 

 

    

 

 

    

 

 

    

 

 

  

Denominator:

Weighted average shares outstanding — basic

   62,193      62,446      62,220      62,625   

Dilutive shares - stock options

   4      21      6      36   
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding — diluted

   62,197      62,467      62,226      62,661   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income per share attributable to common shareholders:

Basic

 $ 0.22    $ 0.44    $ 1.06    $ 1.76   

Diluted

 $ 0.22    $ 0.44    $ 1.06    $ 1.76   

 

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