The following is a summary of the Owens & Minor, Inc. (OMI) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Owens & Minor reported Q1 2024 revenue of $2.6 billion, up 4% compared to the prior year and gross profit grew to $536 million or 20.5% of revenue, up from $497 million or 19.7% of revenue in Q1 2023.

• Products & Healthcare Services and Patient Direct segments posted 3% and 5% year-over-year improvement in revenue respectively.

• Despite a GAAP net loss for the quarter of $22 million, the adjusted net income for the quarter amounted to $15 million.

• Adjusted EBITDA was reported at $116 million, a rise of $8 million compared to Q1 2023.

• Distribution, selling and administrative expenses for the quarter were $478 million, 18% of revenue, an increase due to factors such as team benefits, growth support and future growth investments.

• For 2024, the company expects revenues to be in the range of $10.5 billion to $10.9 billion, adjusted EBITDA to be in the range of $550 million to $590 million and adjusted EPS to be between $1.40 and $1.70.

Business Progress:

• The company reports ahead-of-schedule investments tied to their long-term strategic plan introduced in December 2023.

• Owens & Minor is working towards meaningful growth in the patient direct segment through an improved business reimbursement and collection model.

• It plans to implement transformation opportunities and anticipates greater profitable growth in the years to come.

• Efforts are ongoing in network rationalization, operational excellence and efficiency gains across the business.

• The company sees an anticipated continued margin expansion throughout 2024 due to sourcing savings and improved collections.

• Investment in back-office IT systems and inventory has been made to support new customers and provide reliable service from the start. Associated operating expenses are expected into the next year.

• Despite disruptions from regulatory changes, the company remains positive on its Patient Direct segment and expects continual improvement.

More details: Owens & Minor IR

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