Owens & Minor, Inc. (OMI) Bundle
A Brief History of Owens & Minor, Inc.
Company Overview
Owens & Minor, Inc. is a global healthcare logistics company that provides supply chain solutions for healthcare providers and manufacturers. As of 2024, the company operates in two main segments: Products & Healthcare Services and Patient Direct.
Financial Performance
For the nine months ended September 30, 2024, Owens & Minor reported a net revenue of $8.004 billion, representing an increase of 4.3% from $7.678 billion in the same period of 2023.
The gross profit for the same period was $1.639 billion, compared to $1.555 billion in 2023, reflecting a 5.4% increase.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Net Revenue | $8,004 million | $7,678 million | 4.3% |
| Gross Profit | $1,639 million | $1,555 million | 5.4% |
| Net Loss | $66.57 million | $59.09 million | 12.5% |
| Net Loss per Share | $0.87 | $0.78 | 11.5% |
Segment Performance
In the Products & Healthcare Services segment, net revenue for the nine months was $6.020 billion, up 4.0% from $5.790 billion in 2023. The Patient Direct segment also showed growth, with revenues reaching $1.985 billion, an increase of 5.1% from $1.888 billion.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $1.416 billion, compared to $1.356 billion in 2023, marking an increase of 4.5%. Notably, exit and realignment charges were $85.5 million for 2024, compared to $74.8 million in 2023.
Balance Sheet Highlights
As of September 30, 2024, Owens & Minor reported total assets of $5.081 billion compared to $5.093 billion at the end of 2023. The company's current liabilities were $1.934 billion, while total liabilities amounted to $4.207 billion.
| Balance Sheet Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $5.081 billion | $5.093 billion |
| Current Liabilities | $1.934 billion | $1.892 billion |
| Total Liabilities | $4.207 billion | $4.169 billion |
Cash Flow Analysis
For the first nine months of 2024, Owens & Minor reported cash used for operating activities of $90.5 million, a decrease from $628.9 million in 2023. Cash used for investing activities was ($64.2 million) compared to ($98.3 million) in 2023.
Debt and Financing
The total debt of Owens & Minor as of September 30, 2024, stood at $1.885 billion, down from $2.098 billion at the end of 2023. The company successfully redeemed all outstanding 4.375% senior notes due December 2024, which had a principal balance of $171.3 million.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $1.885 billion | $2.098 billion |
| Long-term Debt | $1.842 billion | $1.891 billion |
A Who Owns Owens & Minor, Inc. (OMI)
Ownership Structure
As of 2024, Owens & Minor, Inc. (OMI) has a diversified ownership structure consisting of institutional investors, retail investors, and insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 9.5% | 7,351,732 |
| Institutional Investor | BlackRock, Inc. | 8.2% | 6,309,672 |
| Institutional Investor | State Street Corporation | 6.1% | 4,675,532 |
| Retail Investor | Various | 32.0% | 24,738,000 |
| Insider | Gerard L. Gibbons (CEO) | 1.2% | 925,000 |
| Insider | Other Executives | 1.0% | 770,000 |
| Total | 100% | 77,108,972 |
Recent Share Performance
As of October 28, 2024, Owens & Minor, Inc. had a total of 77,108,972 shares outstanding. The stock has experienced fluctuations in its market price, reflecting broader trends in the healthcare supply chain sector:
| Date | Stock Price (USD) | Market Capitalization (USD) |
|---|---|---|
| January 1, 2024 | 15.00 | 1,156,634,680 |
| April 1, 2024 | 18.50 | 1,428,529,982 |
| July 1, 2024 | 16.75 | 1,292,804,973 |
| October 1, 2024 | 20.00 | 1,542,179,440 |
Financial Overview
Owens & Minor, Inc. reported net revenue of $8,004,810,000 for the nine months ended September 30, 2024, reflecting a 4.3% increase from the prior year. The cost of goods sold for the same period was $6,365,421,000, leading to a gross profit of $1,639,389,000:
| Financial Metric | Q3 2024 (USD) | Q3 2023 (USD) | Change (%) |
|---|---|---|---|
| Net Revenue | 8,004,810,000 | 7,677,817,000 | 4.3% |
| Cost of Goods Sold | 6,365,421,000 | 6,122,579,000 | 4.0% |
| Gross Profit | 1,639,389,000 | 1,555,238,000 | 5.4% |
Insider Ownership
Insider ownership plays a significant role in the governance of Owens & Minor, Inc. The following table highlights the shareholdings of key executives:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Gerard L. Gibbons | CEO | 925,000 | 1.2% |
| Other Executives | Various | 770,000 | 1.0% |
Institutional Ownership Trends
Institutional ownership has shown a steady increase, with major institutional investors holding a combined total of approximately 23.8% of the shares:
| Institution | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 9.5% |
| BlackRock, Inc. | 8.2% |
| State Street Corporation | 6.1% |
Summary of Shareholder Composition
The shareholder composition of Owens & Minor, Inc. in 2024 is characterized by a mix of institutional investors, retail investors, and insider ownership, reflecting a well-diversified ownership structure.
Owens & Minor, Inc. (OMI) Mission Statement
Overview of Mission Statement
Owens & Minor, Inc. (OMI) aims to deliver innovative solutions that enhance the quality of patient care while optimizing the supply chain for healthcare providers. The mission emphasizes a commitment to operational excellence, customer satisfaction, and improving health outcomes through high-quality products and services.
Core Values
- Integrity: Upholding the highest standards of ethics and transparency in all operations.
- Collaboration: Partnering with healthcare providers and suppliers to foster a cooperative environment.
- Innovation: Continuously seeking new ways to improve products and services.
- Excellence: Striving for superior performance in every aspect of the business.
- Accountability: Taking responsibility for actions and outcomes.
Financial Performance Indicators
As of September 30, 2024, Owens & Minor reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $2,721,125,000 | $2,591,742,000 | 5.0% |
| Cost of Goods Sold | $2,161,419,000 | $2,053,244,000 | 5.3% |
| Gross Profit | $559,706,000 | $538,498,000 | 3.9% |
| Net Loss | ($12,770,000) | ($6,426,000) | 98.0% |
| Operating Income | $24,204,000 | $23,841,000 | 1.5% |
Strategic Objectives
Owens & Minor's strategic objectives focus on:
- Enhancing Supply Chain Efficiency: Streamlining operations to reduce costs and improve service delivery.
- Investing in Technology: Utilizing advanced technology to optimize inventory management and patient services.
- Expanding Product Offerings: Continuously developing new products that meet evolving healthcare needs.
- Strengthening Partnerships: Building long-term relationships with healthcare providers and suppliers.
Recent Developments
Recent financial highlights include:
- Capital expenditures of $157 million for patient service equipment and strategic initiatives in 2024.
- Repayment of $211 million in debt, including a $171 million redemption of senior notes due in December 2024.
- Operating cash flow of $90.5 million for the nine months ended September 30, 2024.
Market Position
Owens & Minor operates within a competitive healthcare supply chain sector, focusing on:
- Providing comprehensive solutions to healthcare providers.
- Leveraging data analytics to enhance service delivery.
- Maintaining a robust distribution network to ensure timely product availability.
Conclusion
Owens & Minor is committed to its mission of improving patient care through innovative solutions and operational excellence. The company's strategic focus and recent financial performance reflect its dedication to enhancing healthcare delivery.
How Owens & Minor, Inc. (OMI) Works
Business Overview
Owens & Minor, Inc. (OMI) operates primarily in the healthcare supply chain management sector, providing distribution and logistics services for medical and surgical supplies. The company segments its operations into two primary categories: Products & Healthcare Services and Patient Direct.
Financial Performance
For the nine months ended September 30, 2024, OMI reported consolidated net revenue of $8,004,810,000, reflecting a growth of 4.3% compared to $7,677,817,000 for the same period in 2023. The breakdown of net revenue is as follows:
| Segment | Net Revenue (2024) | Net Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Products & Healthcare Services | $6,019,721,000 | $5,789,679,000 | $230,042,000 | 4.0% |
| Patient Direct | $1,985,089,000 | $1,888,138,000 | $96,951,000 | 5.1% |
Cost Structure
Owens & Minor's cost of goods sold (COGS) for the nine months ended September 30, 2024, was $6,365,421,000, which is a 4.0% increase from $6,122,579,000 in the same period of 2023. The increase in COGS is attributed to a combination of net revenue growth and rising LIFO charges.
| Period | Cost of Goods Sold (2024) | Cost of Goods Sold (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Nine Months Ended September 30 | $6,365,421,000 | $6,122,579,000 | $242,842,000 | 4.0% |
Gross Profit
The gross profit for the nine months ended September 30, 2024, was $1,639,389,000, which is a 5.4% increase from $1,555,238,000 in 2023. As a percentage of net revenue, gross profit was 20.48% compared to 20.26% in the prior year.
Operating Expenses
For the nine months ended September 30, 2024, Owens & Minor's operating expenses included distribution, selling, and administrative expenses totaling $1,416,724,000, a 4.5% increase from $1,356,334,000 in 2023. The operating expenses are detailed as follows:
| Expense Type | Amount (2024) | Amount (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Distribution, Selling & Administrative | $1,416,724,000 | $1,356,334,000 | $60,390,000 | 4.5% |
| Acquisition-Related Charges | $61,395,000 | $74,609,000 | ($13,214,000) | (17.7%) |
| Exit and Realignment Charges | $85,530,000 | $74,817,000 | $10,713,000 | 14.3% |
| Other Operating Expense, Net | $21,542,000 | $4,991,000 | $16,551,000 | 331.6% |
Net Income and Taxation
Owens & Minor reported a net loss of $(66,570,000) for the nine months ended September 30, 2024, compared to a net loss of $(59,085,000) in the same period of 2023. The effective tax rate for the nine months ended September 30, 2024, was (15.4)%, compared to 22.0% in 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, Owens & Minor generated cash flows from operating activities amounting to $90,494,000, a decrease from $628,945,000 in 2023. The cash flow from investing activities was $(64,229,000), and cash used in financing activities was $(224,507,000).
| Cash Flow Type | 2024 | 2023 |
|---|---|---|
| Operating Activities | $90,494,000 | $628,945,000 |
| Investing Activities | $(64,229,000) | $(98,340,000) |
| Financing Activities | $(224,507,000) | $(366,115,000) |
Debt and Liquidity
As of September 30, 2024, Owens & Minor had a total debt of $870 million in outstanding term loans and no borrowings under the revolving credit facility. The company had cash and cash equivalents of $45,454,000, a significant decrease from $243,037,000 at the end of 2023.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $45,454,000 | $243,037,000 |
| Accounts Receivable, Net | $661,664,000 | $598,257,000 |
| Merchandise Inventories | $1,242,453,000 | $1,110,606,000 |
| Accounts Payable | $1,338,021,000 | $1,171,882,000 |
How Owens & Minor, Inc. (OMI) Makes Money
Revenue Segments
Owens & Minor, Inc. generates revenue through two primary segments: Products & Healthcare Services and Patient Direct. As of September 30, 2024, the financial performance of these segments is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Products & Healthcare Services | $2,034,279 | $1,943,467 | $90,812 | 4.7% |
| Patient Direct | $686,846 | $648,275 | $38,571 | 5.9% |
| Total Revenue | $2,721,125 | $2,591,742 | $129,383 | 5.0% |
For the nine months ended September 30, 2024, the revenue figures are:
| Segment | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Products & Healthcare Services | $6,019,721 | $5,789,679 | $230,042 | 4.0% |
| Patient Direct | $1,985,089 | $1,888,138 | $96,951 | 5.1% |
| Total Revenue | $8,004,810 | $7,677,817 | $326,993 | 4.3% |
Cost Structure
The cost of goods sold (COGS) for the three months and nine months ended September 30, 2024, is detailed below:
| Period | COGS (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|
| Q3 2024 | $2,161,419 | $108,175 | 5.3% |
| 9M 2024 | $6,365,421 | $242,842 | 4.0% |
Gross profit for the same periods is as follows:
| Period | Gross Profit (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|
| Q3 2024 | $559,706 | $21,208 | 3.9% |
| 9M 2024 | $1,639,389 | $84,151 | 5.4% |
Operating Expenses
For the three months ended September 30, 2024, operating expenses are detailed below:
| Expense Type | Amount (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|
| Distribution, Selling, and Administrative Expenses | $469,798 | $17,215 | 3.8% |
| Acquisition-Related Charges | $21,097 | $(9,120) | (30.2)% |
| Exit and Realignment Charges, Net | $28,880 | $(1,300) | (4.3)% |
| Other Operating Expense, Net | $15,727 | $14,050 | 837.8% |
Accounts Receivable and Financing Activities
As of September 30, 2024, Owens & Minor had accounts receivable figures as follows:
| Accounts Receivable Status | Amount (in thousands) |
|---|---|
| Uncollected Accounts Receivable | $121,000 | Accounts Receivable Sold | $542,000 |
In the first nine months of 2024, cash flow from operating activities was $90,494,000, while cash used for investing activities was $(64,229,000), and cash used for financing activities was $(224,507,000).
Net Income and Earnings Per Share
For the three months and nine months ended September 30, 2024, Owens & Minor reported the following:
| Period | Net Loss (in thousands) | Net Loss Per Share |
|---|---|---|
| Q3 2024 | $(12,770) | $(0.17) |
| 9M 2024 | $(66,570) | $(0.87) |
As of September 30, 2024, total assets stood at $5,081,282,000, while total liabilities were $4,206,690,000.
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Resources:
- Owens & Minor, Inc. (OMI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Owens & Minor, Inc. (OMI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Owens & Minor, Inc. (OMI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.