RICHMOND, Virginia
,
February 20, 2024
(press release)
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Business Delivered Strong Operating Margin Improvement in Fourth Quarter Robust Full Year Operating Cash Flow Generation Enabled Significant Debt Reduction Owens & Minor, Inc. (NYSE: OMI)today reported financial results for the fourth quarter and year ended December 31, 2023. Full Year 2023 Key Highlights: “We once again delivered on our commitments and had a strong finish to 2023, demonstrated by our top-line growth across both business segments, robust profit growth and exceptional operating cash flow which allowed us to further strengthen our balance sheet,” said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor. “Our Patient Direct segment continued to outperform the market, showcasing the ongoing effectiveness of our go-to-market strategies on top of the healthy demand for home-based care. Our Products and Healthcare Services segment displayed meaningful sequential revenue and profit improvements resulting from our intense focus and execution of our strategic initiatives." Financial Summary (1) ($ in millions, except per share data) 4Q23 4Q22 FYE 2023 FYE 2022 Revenue $2,656 $2,551 $10,334 $9,955 Operating income (loss), GAAP $60.0 $(53.5) $104.5 $142.9 Adj. Operating Income, Non-GAAP $110.8 $67.2 $304.7 $369.1 Net income (loss), GAAP $17.8 $(58.0) $(41.3) $22.4 Adj. Net Income, Non-GAAP $53.6 $21.7 $105.5 $184.2 Adj. EBITDA, Non-GAAP $169.6 $130.4 $525.8 $543.7 Net income (loss) per common share, GAAP $0.23 $(0.77) $(0.54) $0.29 Adj. Net Income per share, Non-GAAP $0.69 $0.28 $1.36 $2.42 Fourth Quarter Results and Business Highlights 2024 Financial Outlook The Company issued its outlook for 2024; summarized below: The Company’s outlook for 2024 contains assumptions, including current expectations regarding the impact of general economic conditions, including inflation, and the continuation of pressure on pricing and demand in our Products & Healthcare Services segment. Key assumptions supporting the Company’s 2024 financial guidance include: Although the Company does provide guidance for adjusted EBITDA and adjusted EPS (which are non-GAAP financial measures), it is not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. Such elements include, but are not limited to, restructuring and acquisition charges, which could have a significant and unpredictable impact on our GAAP results. As a result, no GAAP guidance or reconciliation of the Company’s adjusted EBITDA guidance or adjusted EPS guidance is provided. The outlook is based on certain assumptions that are subject to the risk factors discussed in the Company’s filings with the SEC. Investor Conference Call for Fourth Quarter and Full Year 2023 Financial Results Owens & Minor executives will host a conference call for investors and analysts on Tuesday, February 20, 2024, at 8:30 a.m. ET. Participants may access the call via the toll-free dial-in number at 1-888-300-2035, or the toll dial-in number at 1-646-517-7437. The conference ID access code is 1058917. All interested stakeholders are encouraged to access the simultaneous live webcast by visiting the investor relations page of the Owens & Minor website available at investors.owens-minor.com/events-and-presentations/. A replay of the webcast can be accessed following the presentation at the link provided above. Safe Harbor This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the SEC's Fair Disclosure Regulation. This release contains certain ''forward-looking'' statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the statements in this release regarding our future prospects and performance, including our expectations with respect to our 2024 financial performance, our Operating Model Realignment Program and other cost-saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of its business, including the results of our Operating Model Realignment Program and our ability to address macro and market conditions. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Investors should refer to Owens & Minor’s Annual Report on Form 10-K for the year ended December 31, 2023, expected to be filed with the SEC on or around February 20, 2024, including the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause the Company’s actual results to differ materially from its current estimates. These filings are available at www.owens-minor.com. Given these risks and uncertainties, Owens & Minor can give no assurance that any forward-looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them. Owens & Minor specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. About Owens & Minor Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company providing essential products and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria®, Byram® and HALYARD*, have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care™. For more information about Owens & Minor and our affiliated brands, visit owens-minor.com or follow us on LinkedIn and Instagram. *Registered Trademark or Trademark of O&M Halyard or its affiliates. Owens & Minor, Inc. Consolidated Statements of Operations (unaudited) (dollars in thousands, except per share data) Three Months Ended December 31, 2023 2022 Net revenue $ 2,656,150 $ 2,551,107 Cost of goods sold 2,086,227 2,143,987 Gross margin 569,923 407,120 Distribution, selling and administrative expenses 457,225 432,467 Acquisition-related charges and intangible amortization 26,427 26,345 Exit and realignment charges 24,310 2,018 Other operating expense (income), net 1,940 (231 ) Operating income (loss) 60,021 (53,479 ) Interest expense, net 36,863 41,164 Loss on extinguishment of debt 860 — Other expense, net 1,301 783 Income (loss) before income taxes 20,997 (95,426 ) Income tax provision (benefit) 3,213 (37,435 ) Net income (loss) $ 17,784 $ (57,991 ) Net income (loss) per common share: Basic $ 0.23 $ (0.77 ) Diluted $ 0.23 $ (0.77 ) Owens & Minor, Inc. Consolidated Statements of Operations (unaudited) (dollars in thousands, except per share data) Year Ended December 31, 2023 2022 Net revenue $ 10,333,967 $ 9,955,475 Cost of goods sold 8,208,806 8,129,124 Gross margin 2,125,161 1,826,351 Distribution, selling and administrative expenses 1,813,559 1,554,821 Acquisition-related charges and intangible amortization 101,037 126,972 Exit and realignment charges 99,127 6,897 Other operating expense (income), net 6,930 (5,252 ) Operating income 104,508 142,913 Interest expense, net 157,915 128,891 Gain on extinguishment of debt (3,518 ) — Other expense, net 4,837 3,131 (Loss) income before income taxes (54,726 ) 10,891 Income tax benefit (13,425 ) (11,498 ) Net (loss) income $ (41,301 ) $ 22,389 Net (loss) income per common share: Basic $ (0.54 ) $ 0.30 Diluted $ (0.54 ) $ 0.29 Owens & Minor, Inc. Condensed Consolidated Balance Sheets (unaudited) (dollars in thousands) December 31, December 31, 2023 2022 Assets Current assets Cash and cash equivalents $ 243,037 $ 69,467 Accounts receivable, net 598,257 763,497 Merchandise inventories 1,110,606 1,333,585 Other current assets 150,890 128,636 Total current assets 2,102,790 2,295,185 Property and equipment, net 543,972 578,269 Operating lease assets 296,533 280,665 Goodwill 1,638,846 1,636,705 Intangible assets, net 361,835 445,042 Other assets, net 149,346 150,417 Total assets $ 5,093,322 $ 5,386,283 Liabilities and equity Current liabilities Accounts payable $ 1,171,882 $ 1,147,414 Accrued payroll and related liabilities 116,398 93,296 Current portion of long-term debt 206,904 17,906 Other current liabilities 396,701 307,850 Total current liabilities 1,891,885 1,566,466 Long-term debt, excluding current portion 1,890,598 2,482,968 Operating lease liabilities, excluding current portion 222,429 215,469 Deferred income taxes, net 41,652 60,833 Other liabilities 122,592 114,943 Total liabilities 4,169,156 4,440,679 Total equity 924,166 945,604 Total liabilities and equity $ 5,093,322 $ 5,386,283 Owens & Minor, Inc. Consolidated Statements of Cash Flows (unaudited) (dollars in thousands) Three Months Ended December 31, 2023 2022 Operating activities: Net income (loss) $ 17,784 $ (57,991 ) Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and amortization 70,737 73,229 Share-based compensation expense 5,801 5,228 Loss on extinguishment of debt 860 — Deferred income tax benefit (7,333 ) (29,352 ) Benefit for losses on accounts receivable (927 ) (1,974 ) Changes in operating lease right-of-use assets and lease liabilities 1,470 (569 ) Gain on sale and dispositions of property and equipment (8,420 ) (9,258 ) Changes in operating assets and liabilities: Accounts receivable 89,384 (6,316 ) Merchandise inventories (22,719 ) 173,382 Accounts payable (15,341 ) (16,772 ) Net change in other assets and liabilities (22,497 ) (46,121 ) Other, net 2,966 3,475 Cash provided by operating activities 111,765 86,961 Investing activities: Additions to property and equipment (50,392 ) (48,815 ) Additions to computer software (5,933 ) (2,619 ) Proceeds from sale of property and equipment 17,929 18,663 Other, net (518 ) — Cash used for investing activities (38,914 ) (32,771 ) Financing activities: Borrowings under amended Receivables Financing Agreement — 324,600 Repayments under amended Receivables Financing Agreement — (385,600 ) Repayments of debt (50,504 ) (1,500 ) Other, net (711 ) (980 ) Cash used for financing activities (51,215 ) (63,480 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,128 2,267 Net increase (decrease) in cash, cash equivalents and restricted cash 22,764 (7,023 ) Cash, cash equivalents and restricted cash at beginning of period 250,160 93,208 Cash, cash equivalents and restricted cash at end of period(1) $ 272,924 $ 86,185 Supplemental disclosure of cash flow information: Income taxes paid, net $ 515 $ 405 Interest paid $ 52,168 $ 45,133 Noncash investing activity: Unpaid purchases of property and equipment and computer software at end of period $ 77,279 $ 67,852 Owens & Minor, Inc. Consolidated Statements of Cash Flows (unaudited) (dollars in thousands) Years Ended December 31, 2023 2022 Operating activities: Net (loss) income $ (41,301 ) $ 22,389 Adjustments to reconcile net (loss) income to cash provided by operating activities: Depreciation and amortization 287,377 228,667 Share-based compensation expense 23,218 20,993 Gain on extinguishment of debt (3,518 ) — Deferred income tax benefit (23,648 ) (26,361 ) (Benefit) provision for losses on accounts receivable (1,414 ) 3,315 Changes in operating lease right-of-use assets and lease liabilities (47 ) 353 Gain on sale and dispositions of property and equipment (34,882 ) (26,260 ) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 166,581 1,101 Merchandise inventories 224,338 166,559 Accounts payable 30,997 13,652 Net change in other assets and liabilities 100,370 (91,544 ) Other, net 12,639 12,142 Cash provided by operating activities 740,710 325,006 Investing activities: Acquisition, net of cash acquired — (1,684,607 ) Additions to property and equipment (190,870 ) (158,090 ) Additions to computer software (17,022 ) (8,492 ) Proceeds from sale of property and equipment 71,574 48,383 Other, net (936 ) (1,670 ) Cash used for investing activities (137,254 ) (1,804,476 ) Financing activities: Borrowings under amended Receivables Financing Agreement 476,000 1,022,300 Repayments under amended Receivables Financing Agreement (572,000 ) (1,156,300 ) Repayments of debt (320,693 ) (4,500 ) Proceeds from issuance of debt — 1,691,000 Borrowings under revolving credit facility, net and Receivables Financing Agreement — 30,000 Financing costs paid — (42,602 ) Other, net (637 ) (42,793 ) Cash (used for) provided by financing activities (417,330 ) 1,497,105 Effect of exchange rate changes on cash, cash equivalents and restricted cash 613 (3,485 ) Net increase in cash, cash equivalents and restricted cash 186,739 14,150 Cash, cash equivalents and restricted cash at beginning of period 86,185 72,035 Cash, cash equivalents and restricted cash at end of period(1) $ 272,924 $ 86,185 Supplemental disclosure of cash flow information: Income taxes (received) paid, net $ (6,283 ) $ 33,973 Interest paid $ 153,247 $ 107,022 Noncash investing activity: Unpaid purchases of property and equipment and computer software at end of period $ 77,279 $ 67,852 Owens & Minor, Inc. Summary Segment Information (unaudited) (dollars in thousands) Three Months Ended December 31, 2023 2022 % of % of consolidated consolidated Amount net revenue Amount net revenue Net revenue: Products & Healthcare Services $ 1,991,716 74.99 % $ 1,933,612 75.80 % Patient Direct 664,434 25.01 % 617,495 24.20 % Consolidated net revenue $ 2,656,150 100.00 % $ 2,551,107 100.00 % % of segment % of segment Operating income: net revenue net revenue Products & Healthcare Services $ 33,244 1.67 % $ 1,202 0.06 % Patient Direct 77,514 11.67 % 65,957 10.68 % Acquisition-related charges and intangible amortization (26,427 ) (26,345 ) Exit and realignment charges (24,310 ) (2,018 ) Inventory valuation adjustment(1) — (92,275 ) Consolidated operating income $ 60,021 $ (53,479 ) Depreciation and amortization: Products & Healthcare Services $ 19,647 $ 20,214 Patient Direct 51,090 53,015 Consolidated depreciation and amortization $ 70,737 $ 73,229 Capital expenditures: Products & Healthcare Services $ 11,405 $ 11,020 Patient Direct 44,920 40,414 Consolidated capital expenditures $ 56,325 $ 51,434 (1) Owens & Minor, Inc. Summary Segment Information (unaudited) (dollars in thousands) Year Ended December 31, 2023 2022 % of % of consolidated consolidated Amount net revenue Amount net revenue Net revenue: Products & Healthcare Services $ 7,781,395 75.30 % $ 7,898,397 79.34 % Patient Direct 2,552,572 24.70 % 2,057,078 20.66 % Consolidated net revenue $ 10,333,967 100.00 % $ 9,955,475 100.00 % % of segment % of segment Operating income: net revenue net revenue Products & Healthcare Services $ 57,809 0.74 % $ 175,309 2.22 % Patient Direct 246,863 9.67 % 193,748 9.42 % Acquisition-related charges and intangible amortization (101,037 ) (126,972 ) Exit and realignment charges (99,127 ) (6,897 ) Inventory valuation adjustment(1) — (92,275 ) Consolidated operating income $ 104,508 $ 142,913 Depreciation and amortization: Products & Healthcare Services $ 77,006 $ 77,539 Patient Direct 210,371 151,128 Consolidated depreciation and amortization $ 287,377 $ 228,667 Capital expenditures: Products & Healthcare Services $ 29,361 $ 49,824 Patient Direct 178,531 116,758 Consolidated capital expenditures $ 207,892 $ 166,582 (1) Owens & Minor, Inc. Net (Loss) Income Per Common Share (unaudited) (dollars in thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net income (loss) $ 17,784 $ (57,991 ) $ (41,301 ) $ 22,389 Weighted average shares outstanding - basic 76,284 74,991 75,785 74,496 Dilutive shares 1,491 — — 1,721 Weighted average shares outstanding - diluted 77,775 74,991 75,785 76,217 Net income (loss) per common share: Basic $ 0.23 $ (0.77 ) $ (0.54 ) $ 0.30 Diluted $ 0.23 $ (0.77 ) $ (0.54 ) $ 0.29 Share-based awards for the year ended December 31, 2023 and the three months ended December 31, 2022 of approximately 1.6 million and 1.4 million shares were excluded from the calculation of net loss per diluted common share as the effect would be anti-dilutive. The following table provides a reconciliation of reported operating income, net (loss) income and net (loss) income per share to non-GAAP measures used by management. Three Months Ended December 31, Years Ended December 31, 2023 2022 2023 2022 Operating income (loss), as reported (GAAP) $ 60,021 $ (53,479 ) $ 104,508 $ 142,913 Acquisition-related charges and intangible amortization (1) 26,427 26,345 101,037 126,972 Exit and realignment charges (2) 24,310 2,018 99,127 6,897 Inventory valuation adjustment (3) — 92,275 — 92,275 Operating income, adjusted (non-GAAP) (Adjusted Operating Income) $ 110,758 $ 67,159 $ 304,672 $ 369,057 Operating income (loss) as a percent of net revenue (GAAP) 2.26 % (2.10 ) % 1.01 % 1.44 % Adjusted operating income as a percent of net revenue (non-GAAP) 4.17 % 2.63 % 2.95 % 3.71 % Net income (loss), as reported (GAAP) $ 17,784 $ (57,991 ) $ (41,301 ) $ 22,389 Pre-tax adjustments: Acquisition-related charges and intangible amortization (1) 26,427 26,345 101,037 126,972 Exit and realignment charges (2) 24,310 2,018 99,127 6,897 Inventory valuation adjustment (3) — 92,275 — 92,275 Other (4) 1,425 525 (1,260 ) 2,099 Tax adjustments (5) — (10,492 ) — (10,492 ) Income tax benefit on pre-tax adjustments (6) (16,383 ) (30,975 ) (52,095 ) (55,975 ) Net income, adjusted (non-GAAP) (Adjusted Net Income) $ 53,563 $ 21,705 $ 105,508 $ 184,165 Net income (loss) per common share, as reported (GAAP) $ 0.23 $ (0.77 ) $ (0.54 ) $ 0.29 After-tax adjustments: Acquisition-related charges and intangible amortization (1) 0.23 0.26 0.96 1.27 Exit and realignment charges (2) 0.22 0.02 0.95 0.07 Inventory valuation adjustment (3) — 0.90 — 0.91 Other (4) 0.01 0.01 (0.01 ) 0.02 Tax adjustments (5) — (0.14 ) — (0.14 ) Net income per common share, adjusted (non-GAAP) (Adjusted EPS) $ 0.69 $ 0.28 $ 1.36 $ 2.42 The following tables provide reconciliations of net income (loss) and total debt to non-GAAP measures used by management. Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net income (loss), as reported (GAAP) $ 17,784 $ (57,991 ) $ (41,301 ) $ 22,389 Income tax provision (benefit) 3,213 (37,435 ) (13,425 ) (11,498 ) Interest expense, net 36,863 41,164 157,915 128,891 Acquisition-related charges and intangible amortization (1) 26,427 26,345 101,037 126,972 Exit and realignment charges (2) 24,310 2,018 99,127 6,897 Other depreciation and amortization (7) 48,704 49,841 200,339 149,820 Inventory valuation adjustment (3) — 92,275 — 92,275 Stock compensation (8) 5,181 4,907 20,942 20,501 LIFO charges (9) 5,655 8,725 2,402 5,396 Other (4) 1,425 525 (1,260 ) 2,099 Adjusted EBITDA (non-GAAP) $ 169,562 $ 130,374 $ 525,776 $ 543,742 December 31, December 31, 2023 2022 Total debt, as reported (GAAP) $ 2,097,502 $ 2,500,874 Cash and cash equivalents (243,037) (69,467) Net debt (non-GAAP) $ 1,854,465 $ 2,431,407 The following items have been excluded in our non-GAAP financial measures: (1) Acquisition-related charges and intangible amortization includes acquisition-related charges of $5.6 million and $17.5 million for the three months and year ended December 31, 2023, and $3.0 million and $48.1 million for the three months and year ended December 31, 2022, as well as amortization of intangible assets established during acquisition method of accounting for business combinations. Acquisition-related charges consist primarily of one-time costs related to the Apria Acquisition, including transaction costs necessary to consummate the acquisition, which consisted of investment banking advisory fees and legal fees and director and officer tail insurance expense, as well as transition costs, such as severance and retention bonuses, information technology (IT) integration costs and professional fees. These amounts are highly dependent on the size and frequency of acquisitions and are being excluded to allow for a more consistent comparison with forecasted, current and historical results. (2) During the three months and year ended December 31, 2023 exit and realignment charges were $24.3 million and $99.1 million. These charges primarily related to our (1) Operating Model Realignment Program of $19.1 million and $82.9 million, including professional fees, severance and other costs to streamline functions and processes, (2) IT strategic initiatives such as converting to common IT systems of $2.5 million and $9.2 million and, (3) other costs associated with strategic initiatives of $2.7 million and $7.0 million for the three months and year ended December 31, 2023. During the three months and year ended December 31, 2022 exit and realignment charges consisted of wind-down costs related to the exit of the Fusion5 business, IT strategic initiatives such as converting our divisions to a common IT system, costs associated with our strategic organizational realignment including severance charges, and other costs associated with strategic initiatives. These costs are not normal recurring, cash operating expenses necessary for the Company to operate its business on an ongoing basis. (3) Relates to an inventory valuation adjustment in our Products & Healthcare Services segment, primarily associated with personal protective equipment inventory built up and a subsequent decline in demand as a result of the COVID-19 pandemic. (4) For the three months and year ended December 31, 2023 other includes loss on extinguishment of debt of $0.9 million and a (gain) on extinguishment of debt of ($3.5) million associated with the early retirement of indebtedness of $45.9 million and $314 million. Additionally, for the three months and years ended December 31, 2023 and 2022 other includes interest costs and net actuarial losses related to our frozen noncontributory, unfunded retirement plan for certain retirees in the United States (U.S.). (5) Tax adjustments in 2022 includes a change in our foreign repatriation plans related to the permanent reinvestment of earnings associated with a subsidiary in Thailand. (6) These charges have been tax effected 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. (7) Other depreciation and amortization relates to property and equipment and capitalized computer software, excluding such amounts captured within exit and realignment charges or acquisition-related charges. (8) Stock compensation includes share-based compensation expense related to our share-based compensation plans, excluding such amounts captured within exit and realignment charges or acquisition-related charges. (9) LIFO charges includes non-cash adjustments to merchandise inventories valued at the lower of cost or market, with the approximate cost determined by the last-in, first-out (LIFO) method for distribution inventories in the U.S. within our Products & Healthcare Services segment. 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 substitutes 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. OMI-CORP OMI-IR Investors Jonathan Leon Media Source: Owens & Minor, Inc.
(1) Reconciliations of the differences between the non-GAAP financial measures presented in this release and their most directly comparable GAAP financial measures are included in the tables below.
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(1) Restricted cash as of December 31, 2023 and September 30, 2023 was $29.9 million and $35.0 million, includes amounts held in an escrow account as required by the Centers for Medicare & Medicaid Services (CMS) in conjunction with the Bundled Payments for Care Improvement (BPCI) initiatives related to wind-down costs of Fusion5. Restricted cash as of December 31, 2023 and September 30, 2023 also includes $13.5 million and $18.6 million of restricted cash deposits received under the Master Receivables Purchase Agreement to be remitted to a third-party financial institution.
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(1) Restricted cash as of December 31, 2023 and 2022 was $29.9 million and $16.7 million, primarily held in an escrow account as required by the CMS in conjunction with the BPCI initiatives related to wind-down costs of Fusion5. Restricted cash as of December 31, 2023 also includes $13.5 million of restricted cash deposits received under the Master Receivables Purchase Agreement to be remitted to a third-party financial institution.
Relates to an inventory valuation adjustment in our Products & Healthcare Services segment, primarily associated with PPE inventory built up and a subsequent decline in demand as a result of the COVID‑19 pandemic.
Relates to an inventory valuation adjustment in our Products & Healthcare Services segment, primarily associated with PPE inventory built up and a subsequent decline in demand as a result of the COVID‑19 pandemic.
Owens & Minor, Inc.
GAAP/Non-GAAP Reconciliations (unaudited)
(dollars in thousands, except per share data)
Owens & Minor, Inc.
GAAP/Non-GAAP Reconciliations (unaudited), continued
(dollars in thousands)
Alpha IR Group
Jackie Marcus or Nick Teves
OMI@alpha-ir.com
SVP Finance & Treasurer
Investor.Relations@owens-minor.com
Stacy Law
media@owens-minor.com
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