Owens & Minor Releases 1st Quarter 2012 Financial Results
Strong asset management results in
"During the first quarter of 2012, we saw solid revenue growth and
strong improvement in asset management and cash flows," said Craig R.
Smith, president & chief executive officer of
Operating earnings for the first quarter of 2012 were
Asset Management
The balance of cash and cash equivalents was
2012 Outlook
The company reaffirmed its financial guidance for 2012, which remains
unchanged since it was provided at the company's
"For 2012, we are targeting revenue growth in a range of 3% to 5%, when compared to 2011, and we are targeting net income per diluted share to increase 5% to 10%, when compared to 2011, excluding the fourth quarter 2011 exit and realignment costs," said Smith.
The 2012 outlook is based on certain assumptions that are subject to the
risk factors discussed in the company's filings with the
Highlights
-
The company will hold its Annual Shareholders Meeting on
Friday, April 27, 2012 , at its Home Office inMechanicsville, Va. , at10:00 a.m. EDT . Event audio and presentations will be archived on www.owens-minor.com following the conclusion of the meeting. -
Owens & Minor is scheduled to participate in the following investor conferences during the second quarter:-
Bank of America Merrill Lynch 2012 Healthcare Conference;May 15 —Las Vegas -
5th Annual UBS Healthcare Supply Channel 1x1
Conference;
May 21 —Boston -
33rd Annual
Goldman Sachs Global Healthcare Conference ;June 5 —Rancho Palos Verdes -
Jefferies 2012 Global Healthcare Conference;
June 4 —New York
-
Investors Conference Call & Supplemental Material
Conference Call:
Information on www.Owens-Minor.com
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
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Condensed Consolidated Statements of Income (unaudited) | |||||||
(in thousands, except per share data) | |||||||
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Net revenue | $ | 2,217,882 | $ | 2,123,815 | |||
Cost of goods sold | 2,003,554 | 1,913,040 | |||||
Gross margin | 214,328 | 210,775 | |||||
Selling, general and administrative expenses | 155,572 | 150,973 | |||||
Depreciation and amortization | 8,578 | 8,767 | |||||
Other operating (income) loss, net | (1,694 | ) | 38 | ||||
Operating earnings | 51,872 | 50,997 | |||||
Interest expense, net | 3,422 | 3,717 | |||||
Income before income taxes | 48,450 | 47,280 | |||||
Income tax provision | 19,090 | 18,540 | |||||
Net income | $ | 29,360 | $ | 28,740 | |||
Net income per common share: | |||||||
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$ | 0.46 | $ | 0.45 | |||
Diluted | $ | 0.46 | $ | 0.45 | |||
Weighted average shares - basic | 62,802 | 62,641 | |||||
Weighted average shares - diluted | 62,901 | 62,861 |
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Condensed Consolidated Balance Sheets (unaudited) | ||||||
(in thousands) | ||||||
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2012 | 2011 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 213,927 | $ | 135,938 | ||
Accounts and notes receivable, net | 499,015 | 506,758 | ||||
Merchandise inventories | 724,206 | 806,366 | ||||
Other current assets | 66,647 | 76,763 | ||||
Total current assets | 1,503,795 | 1,525,825 | ||||
Property and equipment, net | 107,705 | 108,061 | ||||
Goodwill, net | 248,498 | 248,498 | ||||
Intangible assets, net | 21,547 | 22,142 | ||||
Other assets, net | 43,265 | 42,289 | ||||
Total assets | $ | 1,924,810 | $ | 1,946,815 | ||
Liabilities and equity | ||||||
Current liabilities | ||||||
Accounts payable | $ | 537,514 | $ | 575,793 | ||
Accrued payroll and related liabilities | 10,471 | 20,668 | ||||
Deferred income taxes | 39,437 | 42,296 | ||||
Other accrued liabilities | 104,856 | 93,608 | ||||
Total current liabilities | 692,278 | 732,365 | ||||
Long-term debt, excluding current portion | 212,285 | 212,681 | ||||
Deferred income taxes | 23,505 | 21,894 | ||||
Other liabilities | 60,816 | 60,658 | ||||
Total liabilities | 988,884 | 1,027,598 | ||||
Total equity |
935,926 | 919,217 | ||||
Total liabilities and equity | $ | 1,924,810 | $ | 1,946,815 |
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Condensed Consolidated Statements of Cash Flows (unaudited) | |||||||
(in thousands) | |||||||
Three Months Ended |
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2012 | 2011 | ||||||
Operating activities: | |||||||
Net income | $ | 29,360 | $ | 28,740 | |||
Adjustments to reconcile net income to cash provided by | |||||||
operating activities of continuing operations: | |||||||
Depreciation and amortization | 8,578 | 8,767 | |||||
Provision for LIFO reserve | 5,223 | 11,265 | |||||
Share-based compensation expense | 2,385 | 3,021 | |||||
Provision for losses on accounts and notes receivable | 190 | 359 | |||||
Deferred income tax benefit | (1,465 | ) | (1,830 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts and notes receivable | 7,553 | (49,386 | ) | ||||
Merchandise inventories | 76,937 | (20,695 | ) | ||||
Accounts payable | (38,279 | ) | 72,742 | ||||
Net change in other assets and liabilities | 11,609 | (8,639 | ) | ||||
Other, net | (194 | ) | 175 | ||||
Cash provided by operating activities of continuing operations | 101,897 | 44,519 | |||||
Investing activities: | |||||||
Additions to property and equipment | (4,536 | ) | (4,128 | ) | |||
Additions to computer software and intangible assets | (3,840 | ) | (3,010 | ) | |||
Proceeds from the sale of property and equipment | 99 | 41 | |||||
Cash used for investing activities of continuing operations | (8,277 | ) | (7,097 | ) | |||
Financing activities: | |||||||
Cash dividends paid | (14,001 | ) | (12,786 | ) | |||
Repurchases of common stock | (3,750 | ) | - | ||||
Excess tax benefits related to share-based compensation | 690 | 874 | |||||
Proceeds from exercise of stock options | 3,371 | 3,594 | |||||
Other, net | (1,941 | ) | (2,366 | ) | |||
Cash used for financing activities of continuing operations | (15,631 | ) | (10,684 | ) | |||
Discontinued operations: | |||||||
Operating cash flows | - | (101 | ) | ||||
Net cash used for discontinued operations | - | (101 | ) | ||||
Net increase in cash and cash equivalents | 77,989 | 26,637 | |||||
Cash and cash equivalents at beginning of period | 135,938 | 159,213 | |||||
Cash and cash equivalents at end of period | $ | 213,927 | $ | 185,850 |
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Financial Statistics (unaudited) | |||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||
(in thousands, except ratios and per share data) |
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Operating results: | |||||||||||||||||||||||||||||||
Net revenue | $ | 2,217,882 | $ | 2,195,890 | $ | 2,176,759 | $ | 2,131,448 | $ | 2,123,815 | |||||||||||||||||||||
Gross margin | $ | 214,328 | $ | 214,014 | $ | 216,682 | $ | 216,066 | $ | 210,775 | |||||||||||||||||||||
Gross margin as a percent of revenue | 9.66 | % | 9.75 | % | 9.95 | % | 10.14 | % | 9.92 | % | |||||||||||||||||||||
SG&A expenses | $ | 155,572 | $ | 150,538 | $ | 152,825 | $ | 156,321 | $ | 150,973 | |||||||||||||||||||||
SG&A expenses as a percent of revenue | 7.01 | % | 6.86 | % | 7.02 | % | 7.33 | % | 7.11 | % | |||||||||||||||||||||
Operating earnings(2) | $ | 51,872 | $ | 43,014 | $ | 58,465 | $ | 51,039 | $ | 50,997 | |||||||||||||||||||||
Operating earnings as a percent of revenue(2) | 2.34 | % | 1.96 | % | 2.69 | % | 2.39 | % | 2.40 | % | |||||||||||||||||||||
Net income(2) | $ | 29,360 | $ | 23,942 | $ | 33,352 | $ | 29,164 | $ | 28,740 | |||||||||||||||||||||
Net income per common share - basic(2) | $ | 0.46 | $ | 0.38 | $ | 0.53 | $ | 0.46 | $ | 0.45 | |||||||||||||||||||||
Net income per common share - diluted(2) | $ | 0.46 | $ | 0.38 | $ | 0.53 | $ | 0.46 | $ | 0.45 | |||||||||||||||||||||
Accounts receivable: | |||||||||||||||||||||||||||||||
Accounts and notes receivable, net | $ | 499,015 | $ | 506,758 | $ | 507,152 | $ | 504,509 | $ | 520,688 | |||||||||||||||||||||
Days sales outstanding(1) | 19.9 | 20.7 | 20.6 | 20.6 | 21.1 | ||||||||||||||||||||||||||
Inventory: | |||||||||||||||||||||||||||||||
Merchandise inventories | $ | 724,206 | $ | 806,366 | $ | 760,992 | $ | 751,613 | $ | 729,546 | |||||||||||||||||||||
Average inventory turnover(1) | 10.5 | 10.0 | 10.3 | 10.4 | 10.7 | ||||||||||||||||||||||||||
Financing: | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 213,927 | $ | 135,938 | $ | 196,852 | $ | 159,194 | $ | 185,850 | |||||||||||||||||||||
Total interest-bearing debt | $ | 214,184 | $ | 214,556 | $ | 215,037 | $ | 214,020 | $ | 210,801 | |||||||||||||||||||||
Stock information: | |||||||||||||||||||||||||||||||
Cash dividends per common share | $ | 0.22 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | |||||||||||||||||||||
Stock price at quarter-end | $ | 30.41 | $ | 27.79 | $ | 28.48 | $ | 34.49 | $ | 32.48 | |||||||||||||||||||||
(1) Days sales outstanding (DSO) and average inventory turnover are based on three-months' sales. | |||||||||||||||||||||||||||||||
(2) We incurred charges of
taxes, or |
Director,
Investor & Media Relations
truitt.allcott@owens-minor.com
or
Director, Finance & Investor Relations
chuck.graves@owens-minor.com
Source:
News Provided by Acquire Media