x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Virginia | 54-1701843 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
9120 Lockwood Boulevard, Mechanicsville, Virginia | 23116 |
(Address of principal executive offices) | (Zip Code) |
Post Office Box 27626, Richmond, Virginia | 23261-7626 |
(Mailing address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
Emerging growth company | o | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
Page | ||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net revenue | $ | 2,333,961 | $ | 2,415,601 | $ | 6,928,441 | $ | 7,355,069 | |||||||
Cost of goods sold | 2,032,019 | 2,119,326 | 6,071,787 | 6,462,739 | |||||||||||
Gross margin | 301,942 | 296,275 | 856,654 | 892,330 | |||||||||||
Distribution, selling, and administrative expenses | 261,045 | 241,305 | 735,353 | 726,944 | |||||||||||
Acquisition-related and exit and realignment charges | 9,299 | 2,739 | 21,134 | 19,974 | |||||||||||
Other operating (income) expense, net | 1,927 | (1,337 | ) | 2,143 | (5,179 | ) | |||||||||
Operating earnings | 29,671 | 53,568 | 98,024 | 150,591 | |||||||||||
Interest expense, net | 8,737 | 6,770 | 22,218 | 20,324 | |||||||||||
Income before income taxes | 20,934 | 46,798 | 75,806 | 130,267 | |||||||||||
Income tax provision | 10,063 | 16,967 | 26,010 | 48,585 | |||||||||||
Net income | $ | 10,871 | $ | 29,831 | $ | 49,796 | $ | 81,682 | |||||||
Net income per common share: | |||||||||||||||
Basic and diluted | $ | 0.18 | $ | 0.48 | $ | 0.82 | $ | 1.32 | |||||||
Cash dividends per common share | $ | 0.2575 | $ | 0.255 | $ | 0.7725 | $ | 0.765 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net income | $ | 10,871 | $ | 29,831 | $ | 49,796 | $ | 81,682 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Currency translation adjustments (net of income tax of $0 in 2017 and 2016) | 12,254 | 1,401 | 40,151 | 2,443 | |||||||||||
Change in unrecognized net periodic pension costs (net of income tax of $220 and $665 in 2017 and $194 and $532 in 2016) | 236 | 218 | 702 | 701 | |||||||||||
Other (net of income tax of $0 in 2017 and 2016) | 94 | 82 | 288 | 119 | |||||||||||
Total other comprehensive income (loss), net of tax | 12,584 | 1,701 | 41,141 | 3,263 | |||||||||||
Comprehensive income | $ | 23,455 | $ | 31,532 | $ | 90,937 | $ | 84,945 |
September 30, | December 31, | ||||||
(in thousands, except per share data) | 2017 | 2016 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 98,415 | $ | 185,488 | |||
Accounts receivable, net of allowances of $14,609 and $13,538 | 732,756 | 606,084 | |||||
Merchandise inventories | 989,251 | 916,311 | |||||
Other current assets | 311,499 | 254,156 | |||||
Total current assets | 2,131,921 | 1,962,039 | |||||
Property and equipment, net of accumulated depreciation of $224,970 and $201,399 | 203,587 | 191,718 | |||||
Goodwill, net | 690,230 | 414,936 | |||||
Intangible assets, net | 231,886 | 82,511 | |||||
Other assets, net | 76,532 | 66,548 | |||||
Total assets | $ | 3,334,156 | $ | 2,717,752 | |||
Liabilities and equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 875,630 | $ | 750,750 | |||
Accrued payroll and related liabilities | 31,998 | 45,051 | |||||
Other current liabilities | 296,663 | 238,837 | |||||
Total current liabilities | 1,204,291 | 1,034,638 | |||||
Long-term debt, excluding current portion | 917,256 | 564,583 | |||||
Deferred income taxes | 137,539 | 90,383 | |||||
Other liabilities | 71,286 | 68,110 | |||||
Total liabilities | 2,330,372 | 1,757,714 | |||||
Commitments and contingencies | |||||||
Equity | |||||||
Common stock, par value $2 per share; authorized - 200,000 shares; issued and outstanding - 61,249 shares and 61,031 shares | 122,499 | 122,062 | |||||
Paid-in capital | 224,183 | 219,955 | |||||
Retained earnings | 683,444 | 685,504 | |||||
Accumulated other comprehensive loss | (26,342 | ) | (67,483 | ) | |||
Total equity | 1,003,784 | 960,038 | |||||
Total liabilities and equity | $ | 3,334,156 | $ | 2,717,752 |
Nine Months Ended September 30, | |||||||
(in thousands) | 2017 | 2016 | |||||
Operating activities: | |||||||
Net income | $ | 49,796 | $ | 81,682 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 41,060 | 42,182 | |||||
Share-based compensation expense | 8,592 | 8,934 | |||||
Provision for losses on accounts receivable | 1,158 | (216 | ) | ||||
Deferred income tax (benefit) expense | (4,585 | ) | (3,233 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (79,114 | ) | 5,023 | ||||
Merchandise inventories | (56,134 | ) | (5,066 | ) | |||
Accounts payable | 79,787 | 58,742 | |||||
Net change in other assets and liabilities | (40,634 | ) | (44,903 | ) | |||
Other, net | 5,719 | 1,366 | |||||
Cash provided by operating activities | 5,645 | 144,511 | |||||
Investing activities: | |||||||
Acquisition, net of cash acquired | (366,569 | ) | — | ||||
Additions to property and equipment | (24,963 | ) | (13,682 | ) | |||
Additions to computer software and intangible assets | (12,826 | ) | (7,081 | ) | |||
Proceeds from sale of property and equipment | 780 | 4,497 | |||||
Cash used for investing activities | (403,578 | ) | (16,266 | ) | |||
Financing activities: | |||||||
Change in bank overdraft | — | 21,753 | |||||
Proceeds from debt issuance | 250,000 | — | |||||
Borrowing under revolving credit facility | 117,200 | — | |||||
Financing costs paid | (1,798 | ) | — | ||||
Cash dividends paid | (47,316 | ) | (47,802 | ) | |||
Repurchases of common stock | (5,000 | ) | (48,654 | ) | |||
Other, net | (7,363 | ) | (8,118 | ) | |||
Cash provided by (used for) financing activities | 305,723 | (82,821 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 5,137 | 6,652 | |||||
Net increase (decrease) in cash and cash equivalents | (87,073 | ) | 52,076 | ||||
Cash and cash equivalents at beginning of period | 185,488 | 161,020 | |||||
Cash and cash equivalents at end of period | $ | 98,415 | $ | 213,096 | |||
Supplemental disclosure of cash flow information: | |||||||
Income taxes paid, net | $ | 26,917 | $ | 57,996 | |||
Interest paid | $ | 19,951 | $ | 20,023 |
(in thousands, except per share data) | Common Shares Outstanding | Common Stock ($ 2 par value ) | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity | ||||||||||||||||
Balance December 31, 2015 | 62,803 | $ | 125,606 | $ | 211,943 | $ | 706,866 | $ | (51,825 | ) | $ | 992,590 | ||||||||||
Net income | 81,682 | 81,682 | ||||||||||||||||||||
Other comprehensive loss | 3,263 | 3,263 | ||||||||||||||||||||
Dividends declared ($0.765 per share) | (47,671 | ) | (47,671 | ) | ||||||||||||||||||
Shares repurchased and retired | (1,378 | ) | (2,757 | ) | (45,896 | ) | (48,653 | ) | ||||||||||||||
Share-based compensation expense, exercises and other | 274 | 549 | 4,923 | 5,472 | ||||||||||||||||||
Balance September 30, 2016 | 61,699 | $ | 123,398 | $ | 216,866 | $ | 694,981 | $ | (48,562 | ) | $ | 986,683 | ||||||||||
Balance December 31, 2016 | 61,031 | $ | 122,062 | $ | 219,955 | $ | 685,504 | $ | (67,483 | ) | $ | 960,038 | ||||||||||
Net income | 49,796 | 49,796 | ||||||||||||||||||||
Other comprehensive income | 41,141 | 41,141 | ||||||||||||||||||||
Dividends declared ($0.7725 per share) | (47,169 | ) | (47,169 | ) | ||||||||||||||||||
Shares repurchased and retired | (155 | ) | (310 | ) | (4,687 | ) | (4,997 | ) | ||||||||||||||
Share-based compensation expense, exercises and other | 373 | 747 | 4,228 | 4,975 | ||||||||||||||||||
Balance September 30, 2017 | 61,249 | $ | 122,499 | $ | 224,183 | $ | 683,444 | $ | (26,342 | ) | $ | 1,003,784 |
Preliminary Fair Value Estimated as of Acquisition Date | |||
Assets acquired: | |||
Current assets | $ | 62,902 | |
Goodwill | 263,155 | ||
Intangible assets | 156,000 | ||
Noncurrent assets | 3,615 | ||
Total assets | 485,672 | ||
Liabilities assumed: | |||
Current liabilities | 72,397 | ||
Noncurrent liabilities | 46,706 | ||
Total liabilities | 119,103 | ||
Fair value of net assets acquired, net of cash | $ | 366,569 |
Domestic | International | Proprietary Products | Consolidated | ||||||||||||
Carrying amount of goodwill, December 31, 2016 | $ | 180,006 | $ | 19,391 | $ | 215,539 | $ | 414,936 | |||||||
Acquisition (See Note 3) | 263,155 | — | — | 263,155 | |||||||||||
Currency translation adjustments | — | 10,001 | 2,138 | 12,139 | |||||||||||
Carrying amount of goodwill, September 30, 2017 | $ | 443,161 | $ | 29,392 | $ | 217,677 | $ | 690,230 |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Customer Relationships | Other Intangibles | Customer Relationships | Other Intangibles | ||||||||||||
Gross intangible assets | $ | 241,444 | $ | 41,483 | $ | 118,223 | $ | 4,045 | |||||||
Accumulated amortization | (48,757 | ) | (2,284 | ) | (38,429 | ) | (1,328 | ) | |||||||
Net intangible assets | $ | 192,687 | $ | 39,199 | $ | 79,794 | $ | 2,717 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Domestic segment | $ | 3,880 | $ | 1,224 | $ | 12,421 | $ | 14,194 | |||||||
International segment | 574 | 457 | 1,406 | 3,284 | |||||||||||
Proprietary Products segment | 592 | 465 | 1,015 | 1,574 | |||||||||||
Total exit and realignment charges | $ | 5,046 | $ | 2,146 | $ | 14,842 | $ | 19,052 |
Lease Obligations | Severance and Other | Total | |||||||||
Accrued exit and realignment costs, December 31, 2016 | $ | — | $ | 2,238 | $ | 2,238 | |||||
Provision for exit and realignment activities | — | 3,211 | 3,211 | ||||||||
Change in estimate | — | (304 | ) | (304 | ) | ||||||
Cash payments | — | (3,034 | ) | (3,034 | ) | ||||||
Accrued exit and realignment costs, March 31, 2017 | — | 2,111 | 2,111 | ||||||||
Provision for exit and realignment activities | — | 1,382 | 1,382 | ||||||||
Change in estimate | — | (18 | ) | (18 | ) | ||||||
Cash payments | — | (667 | ) | (667 | ) | ||||||
Accrued exit and realignment costs, June 30, 2017 | — | 2,808 | 2,808 | ||||||||
Provision for exit and realignment activities | — | 3,156 | 3,156 | ||||||||
Cash payments | — | (423 | ) | (423 | ) | ||||||
Accrued exit and realignment costs, September 30, 2017 | $ | — | $ | 5,541 | $ | 5,541 | |||||
Accrued exit and realignment costs, December 31, 2015 | $ | 486 | $ | 1,840 | $ | 2,326 | |||||
Provision for exit and realignment activities | — | 9,895 | 9,895 | ||||||||
Cash payments, net of sublease income | (486 | ) | (1,287 | ) | (1,773 | ) | |||||
Accrued exit and realignment costs, March 31, 2016 | — | 10,448 | 10,448 | ||||||||
Provision for exit and realignment activities | — | 1,254 | 1,254 | ||||||||
Cash payments, net of sublease income | — | (7,087 | ) | (7,087 | ) | ||||||
Accrued exit and realignment costs, June 30, 2016 | — | 4,615 | 4,615 | ||||||||
Provision for exit and realignment activities | — | 725 | 725 | ||||||||
Change in Estimate | — | (268 | ) | (268 | ) | ||||||
Cash payments, net of sublease income | — | (2,066 | ) | (2,066 | ) | ||||||
Accrued exit and realignment costs, September 30, 2016 | $ | — | $ | 3,006 | $ | 3,006 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost | $ | 26 | $ | 27 | $ | 53 | $ | 70 | |||||||
Interest cost | 474 | 508 | 1,422 | 1,523 | |||||||||||
Recognized net actuarial loss | 456 | 412 | 1,367 | 1,236 | |||||||||||
Net periodic benefit cost | $ | 956 | $ | 947 | $ | 2,842 | $ | 2,829 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Numerator: | |||||||||||||||
Net income | $ | 10,871 | $ | 29,831 | $ | 49,796 | $ | 81,682 | |||||||
Less: income allocated to unvested restricted shares | (279 | ) | (291 | ) | (738 | ) | (855 | ) | |||||||
Net income attributable to common shareholders - basic | 10,592 | 29,540 | 49,058 | 80,827 | |||||||||||
Add: undistributed income attributable to unvested restricted shares - basic | — | 80 | 16 | 216 | |||||||||||
Less: undistributed income attributable to unvested restricted shares - diluted | — | (80 | ) | (16 | ) | (216 | ) | ||||||||
Net income attributable to common shareholders - diluted | $ | 10,592 | $ | 29,540 | $ | 49,058 | $ | 80,827 | |||||||
Denominator: | |||||||||||||||
Weighted average shares outstanding - basic and diluted | 59,849 | 61,015 | 60,010 | 61,405 | |||||||||||
Net income per share attributable to common shareholders: | |||||||||||||||
Basic and diluted | $ | 0.18 | $ | 0.48 | $ | 0.82 | $ | 1.32 |
Retirement Plans | Currency Translation Adjustments | Other | Total | |||||||||||||
Accumulated other comprehensive income (loss), June 30, 2017 | $ | (10,743 | ) | $ | (28,348 | ) | $ | 165 | $ | (38,926 | ) | |||||
Other comprehensive income (loss) before reclassifications | — | 12,254 | 94 | 12,348 | ||||||||||||
Income tax | — | — | — | — | ||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | 12,254 | 94 | 12,348 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 456 | — | — | 456 | ||||||||||||
Income tax | (220 | ) | — | — | (220 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 236 | — | — | — | 236 | |||||||||||
Other comprehensive income (loss) | 236 | 12,254 | 94 | 12,584 | ||||||||||||
Accumulated other comprehensive income (loss), September 30, 2017 | $ | (10,507 | ) | $ | (16,094 | ) | $ | 259 | $ | (26,342 | ) | |||||
Accumulated other comprehensive income (loss), June 30, 2016 | $ | (9,999 | ) | $ | (40,186 | ) | $ | (78 | ) | $ | (50,263 | ) | ||||
Other comprehensive income (loss) before reclassifications | — | 1,401 | 82 | 1,483 | ||||||||||||
Income tax | — | — | — | — | ||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | 1,401 | 82 | 1,483 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 412 | — | — | 412 | ||||||||||||
Income tax | (194 | ) | — | — | (194 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 218 | — | — | — | 218 | |||||||||||
Other comprehensive income (loss) | 218 | 1,401 | 82 | 1,701 | ||||||||||||
Accumulated other comprehensive income (loss), September 30, 2016 | $ | (9,781 | ) | $ | (38,785 | ) | $ | 4 | $ | (48,562 | ) | |||||
Retirement Plans | Currency Translation Adjustments | Other | Total | ||||||||||||
Accumulated other comprehensive income (loss), December 31, 2016 | $ | (11,209 | ) | $ | (56,245 | ) | $ | (29 | ) | $ | (67,483 | ) | |||
Other comprehensive income (loss) before reclassifications | 40,151 | 288 | 40,439 | ||||||||||||
Income tax | — | — | — | — | |||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | 40,151 | 288 | 40,439 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,367 | — | — | 1,367 | |||||||||||
Income tax | (665 | ) | — | — | (665 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 702 | — | — | 702 | |||||||||||
Other comprehensive income (loss) | 702 | 40,151 | 288 | 41,141 | |||||||||||
Accumulated other comprehensive income (loss), September 30, 2017 | $ | (10,507 | ) | $ | (16,094 | ) | $ | 259 | $ | (26,342 | ) | ||||
Accumulated other comprehensive income (loss), December 31, 2015 | $ | (10,482 | ) | $ | (41,228 | ) | $ | (115 | ) | $ | (51,825 | ) | |||
Other comprehensive income (loss) before reclassifications | — | 2,443 | 119 | 2,562 | |||||||||||
Income tax | — | — | — | — | |||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | 2,443 | 119 | 2,562 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,233 | — | — | 1,233 | |||||||||||
Income tax | (532 | ) | — | — | (532 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 701 | — | — | 701 | |||||||||||
Other comprehensive income (loss) | 701 | 2,443 | 119 | 3,263 | |||||||||||
Accumulated other comprehensive income (loss), September 30, 2016 | $ | (9,781 | ) | $ | (38,785 | ) | $ | 4 | $ | (48,562 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net revenue: | |||||||||||||||
Segment net revenue | |||||||||||||||
Domestic | $ | 2,194,143 | $ | 2,287,233 | $ | 6,518,571 | $ | 6,954,687 | |||||||
International | 96,661 | 83,751 | 287,555 | 255,861 | |||||||||||
Proprietary Products | 124,542 | 132,705 | 392,654 | 409,022 | |||||||||||
Total segment net revenue | $ | 2,415,346 | $ | 2,503,689 | $ | 7,198,780 | $ | 7,619,570 | |||||||
Inter-segment revenue | |||||||||||||||
Proprietary Products | (81,385 | ) | (88,088 | ) | (270,339 | ) | (264,501 | ) | |||||||
Total inter-segment revenue | (81,385 | ) | (88,088 | ) | (270,339 | ) | (264,501 | ) | |||||||
Consolidated net revenue | $ | 2,333,961 | $ | 2,415,601 | $ | 6,928,441 | $ | 7,355,069 | |||||||
Operating earnings (loss): | |||||||||||||||
Domestic | $ | 36,056 | $ | 41,034 | $ | 102,812 | $ | 126,202 | |||||||
International | (2,163 | ) | 1,382 | (754 | ) | 3,402 | |||||||||
Proprietary Products | 9,102 | 14,340 | 26,040 | 41,866 | |||||||||||
Inter-segment eliminations | 416 | (449 | ) | (266 | ) | (905 | ) | ||||||||
Acquisition-related and exit and realignment charges | (9,299 | ) | (2,739 | ) | (21,134 | ) | (19,974 | ) | |||||||
Other(1) | (4,441 | ) | — | (8,674 | ) | — | |||||||||
Consolidated operating earnings | $ | 29,671 | $ | 53,568 | $ | 98,024 | $ | 150,591 | |||||||
Depreciation and amortization: | |||||||||||||||
Domestic | $ | 9,602 | $ | 7,360 | $ | 23,233 | $ | 22,399 | |||||||
International | 4,304 | 4,259 | 12,072 | 13,125 | |||||||||||
Proprietary Products | 1,947 | 2,218 | 5,755 | 6,658 | |||||||||||
Consolidated depreciation and amortization | $ | 15,853 | $ | 13,837 | $ | 41,060 | $ | 42,182 | |||||||
Capital expenditures: | |||||||||||||||
Domestic | $ | 9,572 | $ | 3,071 | $ | 23,376 | $ | 10,274 | |||||||
International | 3,206 | 3,223 | 11,659 | 8,053 | |||||||||||
Proprietary Products | 718 | 1,009 | 2,754 | 2,436 | |||||||||||
Consolidated capital expenditures | $ | 13,496 | $ | 7,303 | $ | 37,789 | $ | 20,763 |
September 30, 2017 | December 31, 2016 | ||||||
Total assets: | |||||||
Domestic | $ | 2,416,079 | $ | 1,778,481 | |||
International | 418,331 | 352,898 | |||||
Proprietary Products | 401,331 | 400,885 | |||||
Segment assets | 3,235,741 | 2,532,264 | |||||
Cash and cash equivalents | 98,415 | 185,488 | |||||
Consolidated total assets | $ | 3,334,156 | $ | 2,717,752 |
Three Months Ended September 30, 2017 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 2,113,450 | $ | 264,765 | $ | (44,254 | ) | $ | 2,333,961 | ||||||||
Cost of goods sold | — | 1,919,049 | 157,439 | (44,469 | ) | 2,032,019 | |||||||||||||
Gross margin | — | 194,401 | 107,326 | 215 | 301,942 | ||||||||||||||
Distribution, selling and administrative expenses | (117 | ) | 159,108 | 102,054 | — | 261,045 | |||||||||||||
Acquisition-related and exit and realignment charges | — | 6,960 | 2,339 | — | 9,299 | ||||||||||||||
Other operating (income) expense, net | — | 448 | 1,479 | — | 1,927 | ||||||||||||||
Operating earnings (loss) | 117 | 27,885 | 1,454 | 215 | 29,671 | ||||||||||||||
Interest expense (income), net | 7,018 | (1,184 | ) | 2,903 | — | 8,737 | |||||||||||||
Income (loss) before income taxes | (6,901 | ) | 29,069 | (1,449 | ) | 215 | 20,934 | ||||||||||||
Income tax (benefit) provision | — | 7,881 | 2,182 | — | 10,063 | ||||||||||||||
Equity in earnings of subsidiaries | 17,772 | — | — | (17,772 | ) | — | |||||||||||||
Net income (loss) | 10,871 | 21,188 | (3,631 | ) | (17,557 | ) | 10,871 | ||||||||||||
Other comprehensive income (loss) | 12,584 | 330 | 12,254 | (12,584 | ) | 12,584 | |||||||||||||
Comprehensive income (loss) | $ | 23,455 | $ | 21,518 | $ | 8,623 | $ | (30,141 | ) | $ | 23,455 |
Three Months Ended September 30, 2016 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 2,287,335 | $ | 168,216 | $ | (39,950 | ) | $ | 2,415,601 | ||||||||
Cost of goods sold | — | 2,070,639 | 89,192 | (40,505 | ) | 2,119,326 | |||||||||||||
Gross margin | — | 216,696 | 79,024 | 555 | 296,275 | ||||||||||||||
Distribution, selling and administrative expenses | (52 | ) | 169,451 | 71,906 | — | 241,305 | |||||||||||||
Acquisition-related and exit and realignment charges | — | 2,237 | 502 | — | 2,739 | ||||||||||||||
Other operating income, net | — | (1,205 | ) | (132 | ) | — | (1,337 | ) | |||||||||||
Operating earnings (loss) | 52 | 46,213 | 6,748 | 555 | 53,568 | ||||||||||||||
Interest expense (income), net | 7,403 | (1,345 | ) | 712 | — | 6,770 | |||||||||||||
Income (loss) before income taxes | (7,351 | ) | 47,558 | 6,036 | 555 | 46,798 | |||||||||||||
Income tax (benefit) provision | — | 14,131 | 2,836 | — | 16,967 | ||||||||||||||
Equity in earnings of subsidiaries | 37,182 | — | — | (37,182 | ) | — | |||||||||||||
Net income (loss) | 29,831 | 33,427 | 3,200 | (36,627 | ) | 29,831 | |||||||||||||
Other comprehensive income (loss) | 1,701 | 299 | 1,402 | (1,701 | ) | 1,701 | |||||||||||||
Comprehensive income (loss) | $ | 31,532 | $ | 33,726 | $ | 4,602 | $ | (38,328 | ) | $ | 31,532 |
Nine Months Ended September 30, 2017 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 6,436,599 | $ | 635,900 | $ | (144,058 | ) | $ | 6,928,441 | ||||||||
Cost of goods sold | — | 5,845,789 | 369,596 | (143,598 | ) | 6,071,787 | |||||||||||||
Gross margin | — | 590,810 | 266,304 | (460 | ) | 856,654 | |||||||||||||
Distribution, selling and administrative expenses | 434 | 480,765 | 254,154 | — | 735,353 | ||||||||||||||
Acquisition-related and exit and realignment charges | — | 17,084 | 4,050 | — | 21,134 | ||||||||||||||
Other operating (income) expense, net | — | 1,481 | 662 | — | 2,143 | ||||||||||||||
Operating earnings (loss) | (434 | ) | 91,480 | 7,438 | (460 | ) | 98,024 | ||||||||||||
Interest expense (income), net | 20,756 | (2,777 | ) | 4,239 | — | 22,218 | |||||||||||||
Income (loss) before income taxes | (21,190 | ) | 94,257 | 3,199 | (460 | ) | 75,806 | ||||||||||||
Income tax (benefit) provision | — | 23,303 | 2,707 | — | 26,010 | ||||||||||||||
Equity in earnings of subsidiaries | 70,986 | — | — | (70,986 | ) | — | |||||||||||||
Net income (loss) | 49,796 | 70,954 | 492 | (71,446 | ) | 49,796 | |||||||||||||
Other comprehensive income (loss) | 41,141 | 990 | 40,151 | (41,141 | ) | 41,141 | |||||||||||||
Comprehensive income (loss) | $ | 90,937 | $ | 71,944 | $ | 40,643 | $ | (112,587 | ) | $ | 90,937 |
Nine Months Ended September 30, 2016 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 6,954,983 | $ | 516,131 | $ | (116,045 | ) | $ | 7,355,069 | ||||||||
Cost of goods sold | — | 6,305,489 | 273,927 | (116,677 | ) | 6,462,739 | |||||||||||||
Gross margin | — | 649,494 | 242,204 | 632 | 892,330 | ||||||||||||||
Distribution, selling and administrative expenses | 838 | 504,984 | 221,122 | — | 726,944 | ||||||||||||||
Acquisition-related and exit and realignment charges | — | 15,888 | 4,086 | — | 19,974 | ||||||||||||||
Other operating income, net | — | (3,952 | ) | (1,227 | ) | — | (5,179 | ) | |||||||||||
Operating earnings (loss) | (838 | ) | 132,574 | 18,223 | 632 | 150,591 | |||||||||||||
Interest expense (income), net | 21,134 | (2,808 | ) | 1,998 | — | 20,324 | |||||||||||||
Income (loss) before income taxes | (21,972 | ) | 135,382 | 16,225 | 632 | 130,267 | |||||||||||||
Income tax (benefit) provision | — | 40,237 | 8,348 | — | 48,585 | ||||||||||||||
Equity in earnings of subsidiaries | 103,654 | — | — | (103,654 | ) | — | |||||||||||||
Net income (loss) | 81,682 | 95,145 | 7,877 | (103,022 | ) | 81,682 | |||||||||||||
Other comprehensive income (loss) | 3,263 | 821 | 2,442 | (3,263 | ) | 3,263 | |||||||||||||
Comprehensive income (loss) | $ | 84,945 | $ | 95,966 | $ | 10,319 | $ | (106,285 | ) | $ | 84,945 |
September 30, 2017 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non- guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Balance Sheets | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 11,456 | $ | 1,145 | $ | 85,814 | $ | — | $ | 98,415 | |||||||||
Accounts receivable, net | 30,770 | 595,202 | 114,563 | (7,779 | ) | 732,756 | |||||||||||||
Merchandise inventories | — | 909,406 | 82,065 | (2,220 | ) | 989,251 | |||||||||||||
Other current assets | 193 | 117,403 | 193,903 | — | 311,499 | ||||||||||||||
Total current assets | 42,419 | 1,623,156 | 476,345 | (9,999 | ) | 2,131,921 | |||||||||||||
Property and equipment, net | — | 103,765 | 99,822 | — | 203,587 | ||||||||||||||
Goodwill, net | — | 180,006 | 510,224 | — | 690,230 | ||||||||||||||
Intangible assets, net | — | 10,100 | 221,786 | — | 231,886 | ||||||||||||||
Due from O&M and subsidiaries | — | 645,264 | — | (645,264 | ) | — | |||||||||||||
Advances to and investment in consolidated subsidiaries | 2,094,759 | — | — | (2,094,759 | ) | — | |||||||||||||
Other assets, net | — | 43,521 | 33,011 | — | 76,532 | ||||||||||||||
Total assets | $ | 2,137,178 | $ | 2,605,812 | $ | 1,341,188 | $ | (2,750,022 | ) | $ | 3,334,156 | ||||||||
Liabilities and equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable | $ | — | $ | 768,780 | $ | 114,644 | $ | (7,794 | ) | $ | 875,630 | ||||||||
Accrued payroll and related liabilities | — | 18,615 | 13,383 | — | 31,998 | ||||||||||||||
Other current liabilities | 7,127 | 110,580 | 178,956 | — | 296,663 | ||||||||||||||
Total current liabilities | 7,127 | 897,975 | 306,983 | (7,794 | ) | 1,204,291 | |||||||||||||
Long-term debt, excluding current portion | 545,830 | 6,743 | 364,683 | — | 917,256 | ||||||||||||||
Due to O&M and subsidiaries | 580,437 | — | 65,002 | (645,439 | ) | — | |||||||||||||
Intercompany debt | — | 138,890 | — | (138,890 | ) | — | |||||||||||||
Deferred income taxes | — | 69,722 | 67,817 | — | 137,539 | ||||||||||||||
Other liabilities | — | 61,142 | 10,144 | — | 71,286 | ||||||||||||||
Total liabilities | 1,133,394 | 1,174,472 | 814,629 | (792,123 | ) | 2,330,372 | |||||||||||||
Equity | |||||||||||||||||||
Common stock | 122,499 | — | — | — | 122,499 | ||||||||||||||
Paid-in capital | 224,183 | 174,613 | 583,872 |