Owens Minor Inc (OMI) 10-K Annual Report March 2019

RICHMOND, VA – February 19, 2019 – Owens & Minor, Inc. (NYSE-OMI) today reported financial results for the fourth quarter and the year ended December 31, 2018, as summarized in the table shown below.

“2018 was a year of change for Owens & Minor, and, although we faced challenges, we achieved our expectations for the fourth quarter adjusted results, excluding costs associated with the exit of our former chief executive officer,” said Robert C. Sledd, chairman and interim president & chief executive officer. “We are encouraged by the opportunities we see in the future and are aggressively addressing challenges in our distribution business. We have made progress in returning our distribution and logistics services to the Owens & Minor standard, but we still have work to do in 2019. We are focused on selling more proprietary and preferred vendor products to our extensive healthcare customer base, as we work to win and retain customers. In combination with positive momentum from Halyard and Byram Healthcare and investments that will support our future efforts, we believe we have the right tools, the right team, and the right strategy to realize a bright, long-term future.”



Financial Summary
($ in millions, except per share data)
	4Q18	4Q17	FY2018	FY2017
Revenue	$2,543	$2,390	$9,839	$9,318
% yoy growth	6.4%		5.6%

Operating income (loss), GAAP¹	$(266)	$(8.8)	$(392)	$89.3
Adj. Operating income (loss), Non-GAAP²	$33.7	$42.2	$177	$180

Net income (loss), GAAP¹	$(262)	$23.0	$(437)	$72.8
Adj. Net income (loss), Non-GAAP²	$5.3	$21.0	$70.4	$97.5

Net Income (loss) per share, GAAP¹	$(4.37)	$0.38	$(7.28)	$1.20
Adj. Net Income per share, Non-GAAP²	$0.09	$0.35	$1.15	$1.61

1. Includes impairment charge for 4Q18 and full year 2018 of $274 million and $440 million, respectively.
2. Reconciliations of the differences between the non-GAAP financial measures presented in this news release and their most directly comparable GAAP financial measures are included in the financial tables below.

Discussion of 2018 Results


•	When compared to prior year, quarterly revenue growth benefited from Halyard contributions of $196 million (after intercompany eliminations). Annual revenue growth benefited from Halyard contributions of $518 million (after intercompany eliminations) and revenue growth from Byram Healthcare of $340 million.


•	On a GAAP basis, fourth quarter and annual results were significantly affected by non-cash goodwill and other intangible impairment charges of $274 million ($4.08 per share) and $440 million ($6.81 per share), respectively.


•	Quarterly and annual results were affected by lower distribution revenues, continued pressure on distribution margins, warehouse inefficiencies in certain facilities, and increased expenses incurred for the development of new solutions, which were partially offset by positive contributions from Byram Healthcare and Halyard.

The following information was filed by Owens Minor Inc (OMI) on Wednesday, February 20, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Owens Minor Inc's 10-K Annual Report:

Other - Other Highlight
Critical accounting policies are defined as those policies that relate to estimates that require us to make assumptions about matters that are highly uncertain at the time the estimate is made and could have a material impact on our results due to changes in the estimate or the use of different assumptions that could reasonably have been used.

Financial - Debt Highlight
We believe available financing sources, including cash generated by operating activities and borrowings under the Credit Agreement (as amended), will be sufficient to fund our working capital needs, capital expenditures, long-term strategic growth, payments under long-term debt and lease arrangements, payments of quarterly cash dividends, share repurchases and other cash requirements.
Financial - Expense Highlight
Overall DS&A; expenses compared to prior year reflected increased expenses related to Byram and Halyard, higher distribution warehouse and delivery expenses, and increased expenses incurred for the development of new customer solutions, as well as unfavorable foreign currency translation impacts of $12.1 million.
Financial - Income Highlight
Adjusted Operating Income, Adjusted Net Income and Adjusted EPS are alternative views of performance used by management, and we believe that investors' understanding of our performance is enhanced by disclosing these performance measures.
Financial - Shares Highlight
In October 2016, the Board of Directors authorized a share repurchase program of up to $100 million of our outstanding common stock to be executed at the discretion of management over a three-year period, expiring in December 2019.
Revenue - Product
The declines were a result...Read more
Revenue - Product
We entered into transition services...Read more
Financial - Expense
Overall expenses reflected decreased sales...Read more
Revenue - Product
Consolidated net revenue increased primarily...Read more
Revenue - Product
As a percentage of net...Read more
Financial - Debt
The Fourth Amendment implements certain...Read more
Other - Other
In 2018 and 2017, cash...Read more
Financial - Expense
Cost of goods sold includes...Read more
Other - Other
We believe our critical accounting...Read more
Financial - Expense
At December 31, 2018, long-lived...Read more
Revenue - Geography
Cash used for investing activities...Read more
Financial - Expense
Interest expense was higher than...Read more
Other - Other
The application of alternative assumptions...Read more
Other - Other
In general, the measures exclude...Read more
Other - Other
Financing activities in 2018 and...Read more
Financial - Expense
(4) 2018 includes an incremental...Read more
Revenue - Geography
The changes from prior year...Read more
Other - Other
The 2021 Notes were sold...Read more
Other - Other
The 2024 Notes were sold...Read more
Other - Other
The non-GAAP financial measures disclosed...Read more
Other - Other
We make principal payments under...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Owens Minor Inc provided additional information to their SEC Filing as exhibits

Exhibit 3.2: Articles Of Incorporation

Exhibit 10.7: Material Contract

Exhibit 10.47: Material Contract

Exhibit 21.1: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: OMI
CIK: 75252
Form Type: 10-K Annual Report
Accession Number: 0000075252-19-000037
Submitted to the SEC: Wed Mar 06 2019 4:06:22 AM EST
Accepted by the SEC: Wed Mar 06 2019
Period: Monday, December 31, 2018
Industry: Wholesale Medical Dental And Hospital Equipment And Supplies