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
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.