Owens & Minor (NYSE:OMI) posted fourth-quarter sales of $2.04 billion for the three months ended Dec. 31, 2009, up 4.2 percent compared with $1.96 billion during the same period in 2008. Net income rose 60.1 percent to $32.3 million, compared with $20.2 million during Q4 2008:
Owens & Minor Reports Strong 2009 Financial Results
O&M Demonstrates Improvement in 4th Quarter 2009 Revenue & Operating
RICHMOND, Va.–(BUSINESS WIRE)–Owens & Minor (NYSE-OMI) today reported financial results for
the fourth quarter ended December 31, 2009, including quarterly revenue
of $2.04 billion, increased 4.2% when compared to revenue of $1.96
billion in the fourth quarter of 2008. Income from continuing operations
for the quarter improved 16.9% to $32.0 million, or $0.76 per diluted
share, compared to $27.4 million, or $0.66 per diluted share, for the
same period last year. Net income for the fourth quarter increased 60.1%
to $32.3 million, or $0.77 per diluted share, when compared to net
income of $20.2 million, or $0.49 per diluted share, in the fourth
quarter of 2008.
“Thanks to the hard work and dedication of everyone on our team, we
ended 2009 with improvement in nearly every key measurement when
compared to last year’s fourth quarter,” said Craig R. Smith, president
& chief executive officer of Owens & Minor. “Throughout 2009, our
teammates turned in a strong performance in managing through a major
acquisition, on-boarding a significant amount of new business,
completing our mainframe migration project, and installing automation
equipment and voice-pick technology in many of our distribution centers.
Together, we accomplished all of this without losing our collective
focus on serving our customers, achieving operational excellence and
advancing our strategic initiatives.”
2009 Full Year Results
For the year ended December 31, 2009, revenue was $8.04 billion,
increased 11.0% from revenue of $7.24 billion in 2008. Income from
continuing operations for the full year was $116.9 million, or $2.79 per
diluted share, increased 15.4% compared to $101.3 million, or $2.44 per
diluted share, in 2008. For 2009, net income increased 12.1% to $104.7
million, or $2.50 per diluted share, when compared to net income of
$93.3 million, or $2.25 per diluted share, for the same period last year.
“We are very pleased that our annual results, even when excluding the
positive impact of the credit for the third quarter LIFO provision and
considering the challenging business environment in 2009, are well
within the guidance ranges we provided for 2009,” said Smith.
Results from discontinued operations reflect the January 2009 sale of
certain assets of the company’s direct-to-consumer diabetes supply (DTC)
business and losses resulting primarily from pre-tax charges associated
with exiting the business. The loss from discontinued operations in 2009
was $12.2 million, or $0.29 per diluted share, compared to a loss in
2008 of $7.9 million, or $0.19 per diluted share. Results for 2009 and
2008 also reflect the impact of the October 2008 acquisition of certain
assets and liabilities of The Burrows Company and the resulting
transition of the business to Owens & Minor during 2009.
For the year, operating cash flow from continuing operations was $165.3
million, an increase when compared to $62.9 million last year. Cash
provided by discontinued operations for the same period was $73.3
million, including $63.0 million received in January 2009 from the sale
of certain assets of the DTC business. As of the end of 2009, long-term
debt was approximately $208 million, compared to long-term debt of
approximately $359 million at the end of 2008. Days sales outstanding
(DSO) were very favorable at 21.4 days, improved when compared to DSO of
24.5 days last year. Inventory turns were 10.6, compared to turns of
10.9 for the same period last year.
“Based on historical trends, we believe that we will pick up momentum
during the course of 2010, as we gain leverage from our strategic
investments and begin realizing further improvements in operating
margin,” said Smith. “For the year, we are targeting revenue growth in a
range of 4% to 6% compared to 2009, and income per diluted share in a
range of $2.90 to $3.05.”
The 2010 outlook is based on certain assumptions that are subject to the
risk factors discussed in the company’s filings with the Securities &
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