Q3 2024 Owens & Minor Inc Earnings Call Transcript
Key Points
- Owens & Minor Inc (OMI) achieved top-line growth across both segments, with exceptional demand for sleep supplies and diabetes products in the Patient Direct segment.
- The company reduced its total debt by nearly $200 million in the most recent quarter, bringing the total year-to-date debt reduction to approximately $210 million.
- The Products and Healthcare Services segment reported solid mid-single-digit revenue growth, driven by strengthening customer relationships and successful onboarding of new opportunities.
- Prices have stabilized in several key product categories, including gloves, indicating effective management of pricing strategies.
- Owens & Minor Inc (OMI) is well-positioned to handle upcoming Chinese tariffs due to its manufacturing footprint and sourcing profile, which is not dependent on China.
- The North Carolina kitting operations faced disruptions due to hurricanes, causing delays in deliveries and impacting procedural volumes.
- The company continues to incur costs to manage around manufacturer supply chain problems stemming from hurricane-related infrastructure damage.
- Patient Direct segment faced a backlog of new patient starts due to delays in patient eligibility verification, which has been slow to resolve.
- Interest expenses remain high, with the third quarter interest expense just under $37 million, despite ongoing debt reduction efforts.
- The company faces potential headwinds from Chinese tariffs on key categories such as facial protection and gloves, which could impact the industry.
Good day, everyone, and thank you for standing by. Welcome to the Owens & Minor third-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jackie Marcus, Investor Relations.
Thank you, operator. Hello, everyone, and welcome to the Owens & Minor third-quarter 2024 earnings call. Our comments on the call will be focused on the financial results for the third quarter of 2024 as well as our outlook for 2024, both of which are included in today's press release. The press release along with the supplemental slides are posted on the Investor Relations section of our website.
Please note that during this call, we will make forward-looking statements. The matters addressed in these statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied here today. Please refer to our SEC
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