On November 3, 2023, Owens & Minor Inc (OMI, Financial) released its financial results for the third quarter ended September 30, 2023. The company reported a consolidated revenue of $2.59 billion, marking a 3.8% increase compared to the third quarter of 2022. Despite the volatility of demand and pricing for PPE, OMI managed to reduce its total debt by $188 million and net debt by $117 million, demonstrating the effectiveness of its Operating Model Realignment Program.
Financial Performance
The company's financial summary reveals a GAAP operating income of $23.8 million, a significant decrease from $60.2 million in Q3 2022. The net loss was reported at $(6.4) million, compared to a net income of $12.5 million in the same period last year. Despite this, the adjusted net income per common share was $0.44, a slight increase from $0.41 in Q3 2022.
Business Highlights
OMI's Patient Direct revenue was $648 million, up 9.1% compared to the third quarter of 2022. The Products & Healthcare Services revenue was $1.94 billion, up 2% versus the prior year period. The company generated $157 million of operating cash flow in the third quarter, and $629 million year to date, driven by strong working capital improvement and profitability.
2023 Financial Outlook
The company has narrowed its outlook for 2023, expecting revenue to be in a range of $10.3 billion to $10.4 billion, adjusted EBITDA to be in a range of $535 million to $555 million, and adjusted EPS to be in a range of $1.30 to $1.40.
Balance Sheet Summary
As of September 30, 2023, OMI's total current assets were $2.13 billion, and total current liabilities were $1.73 billion. The company's long-term debt, excluding the current portion, was $2.11 billion.
Conclusion
Despite facing challenges, Owens & Minor Inc (OMI, Financial) has demonstrated resilience in its Q3 2023 financial results. The company's strategic initiatives, such as the Operating Model Realignment Program, have started to yield economic benefits, enabling OMI to reduce its total debt significantly. However, the company remains cautious about the long-term trajectory due to the volatility of demand and pricing for PPE.
Explore the complete 8-K earnings release (here) from Owens & Minor Inc for further details.
