QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $2 par value per share | OMI | New York Stock Exchange |
Large accelerated filer | Accelerated filer | ||||||||||
Non-accelerated filer | Smaller reporting company | ||||||||||
Emerging growth company | |||||||||||
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. |
Page | |||||||||
Item 1. | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net revenue | $ | 2,500,015 | $ | 2,489,460 | $ | 4,906,967 | $ | 4,815,994 | |||||||||||||||
Cost of goods sold | 1,967,510 | 2,089,392 | 4,001,014 | 3,973,175 | |||||||||||||||||||
Gross margin | 532,505 | 400,068 | 905,953 | 842,819 | |||||||||||||||||||
Distribution, selling and administrative expenses | 452,813 | 294,096 | 732,553 | 586,796 | |||||||||||||||||||
Acquisition-related and exit and realignment charges | 7,602 | 8,624 | 41,150 | 14,587 | |||||||||||||||||||
Other operating (income) expense, net | (2,995) | 464 | (3,894) | (2,141) | |||||||||||||||||||
Operating income | 75,085 | 96,884 | 136,144 | 243,577 | |||||||||||||||||||
Interest expense, net | 35,839 | 11,540 | 47,858 | 25,212 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 40,433 | |||||||||||||||||||
Other expense, net | 783 | 1,028 | 1,565 | 1,598 | |||||||||||||||||||
Income before income taxes | 38,463 | 84,316 | 86,721 | 176,334 | |||||||||||||||||||
Income tax provision | 9,859 | 18,420 | 18,837 | 40,848 | |||||||||||||||||||
Net income | $ | 28,604 | $ | 65,896 | $ | 67,884 | $ | 135,486 | |||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | 0.38 | $ | 0.90 | $ | 0.92 | $ | 1.87 | |||||||||||||||
Diluted | $ | 0.37 | $ | 0.87 | $ | 0.89 | $ | 1.80 |
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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income | $ | 28,604 | $ | 65,896 | $ | 67,884 | $ | 135,486 | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Currency translation adjustments | (18,831) | (2,448) | (19,618) | (14,710) | |||||||||||||||||||
Change in unrecognized net periodic pension costs | 297 | 36 | 486 | 157 | |||||||||||||||||||
Change in gains and losses on derivative instruments | 2,764 | — | 2,764 | 20,044 | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | (15,770) | (2,412) | (16,368) | 5,491 | |||||||||||||||||||
Comprehensive income | $ | 12,834 | $ | 63,484 | $ | 51,516 | $ | 140,977 |
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 |
June 30, | December 31, | ||||||||||
(in thousands, except per share data) | 2022 | 2021 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 56,406 | $ | 55,712 | |||||||
Accounts receivable, net of allowances of $14,922 and $18,003 | 743,853 | 681,564 | |||||||||
Merchandise inventories | 1,525,331 | 1,495,972 | |||||||||
Other current assets | 108,612 | 88,564 | |||||||||
Total current assets | 2,434,202 | 2,321,812 | |||||||||
Property and equipment, net of accumulated depreciation of $373,954 and $334,500 | 595,888 | 317,235 | |||||||||
Operating lease assets | 278,291 | 194,006 | |||||||||
Goodwill | 1,656,308 | 390,185 | |||||||||
Intangible assets, net | 462,444 | 209,745 | |||||||||
Other assets, net | 128,145 | 103,568 | |||||||||
Total assets | $ | 5,555,278 | $ | 3,536,551 | |||||||
Liabilities and equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 1,137,337 | $ | 1,001,959 | |||||||
Accrued payroll and related liabilities | 97,829 | 115,858 | |||||||||
Other current liabilities | 334,198 | 226,204 | |||||||||
Total current liabilities | 1,569,364 | 1,344,021 | |||||||||
Long-term debt, excluding current portion | 2,565,613 | 947,540 | |||||||||
Operating lease liabilities, excluding current portion | 220,504 | 162,241 | |||||||||
Deferred income taxes | 107,181 | 35,310 | |||||||||
Other liabilities | 133,957 | 108,938 | |||||||||
Total liabilities | 4,596,619 | 2,598,050 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Equity | |||||||||||
Common stock, par value $2 per share; authorized - 200,000 shares; issued and outstanding - 76,171 shares and 75,433 shares | 152,343 | 150,865 | |||||||||
Paid-in capital | 407,773 | 440,608 | |||||||||
Retained earnings | 455,502 | 387,619 | |||||||||
Accumulated other comprehensive loss | (56,959) | (40,591) | |||||||||
Total equity | 958,659 | 938,501 | |||||||||
Total liabilities and equity | $ | 5,555,278 | $ | 3,536,551 |
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 |
Six Months Ended June 30, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Operating activities: | |||||||||||
Net income | $ | 67,884 | $ | 135,486 | |||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation and amortization | 97,286 | 45,501 | |||||||||
Share-based compensation expense | 11,210 | 13,040 | |||||||||
Loss on extinguishment of debt | — | 40,433 | |||||||||
Provision for losses on accounts receivable | 4,512 | 15,777 | |||||||||
Deferred income tax expense (benefit) | 1,601 | (11,293) | |||||||||
Changes in operating lease right-of-use assets and lease liabilities | 606 | 826 | |||||||||
Loss on sale and dispositions of property and equipment | 226 | — | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 16,275 | (57,256) | |||||||||
Merchandise inventories | (24,438) | (298,294) | |||||||||
Accounts payable | 12,349 | 127,473 | |||||||||
Net change in other assets and liabilities | (23,945) | (3,363) | |||||||||
Other, net | 5,958 | 4,076 | |||||||||
Cash provided by operating activities | 169,524 | 12,406 | |||||||||
Investing activities: | |||||||||||
Acquisition, net of cash acquired | (1,684,607) | — | |||||||||
Additions to property and equipment | (62,236) | (14,630) | |||||||||
Additions to computer software | (3,463) | (4,051) | |||||||||
Proceeds from sale of property and equipment | 5,846 | 22 | |||||||||
Other, net | (839) | — | |||||||||
Cash used for investing activities | (1,745,299) | (18,659) | |||||||||
Financing activities: | |||||||||||
Proceeds from issuance of debt | 1,691,000 | 500,000 | |||||||||
Borrowings under revolving credit facility, net and accounts receivable securitization program | 30,000 | 5,000 | |||||||||
Repayments of debt | (1,500) | (523,140) | |||||||||
Borrowings under amended accounts receivable securitization program | 347,800 | — | |||||||||
Repayments under amended accounts receivable securitization program | (402,800) | — | |||||||||
Financing costs paid | (41,479) | (12,868) | |||||||||
Cash dividends paid | — | (364) | |||||||||
Payment for termination of interest rate swaps | — | (15,434) | |||||||||
Other, net | (42,388) | (17,982) | |||||||||
Cash provided by (used for) financing activities | 1,580,633 | (64,788) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,864) | (1,718) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 994 | (72,759) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 72,035 | 134,506 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 73,029 | $ | 61,747 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Income taxes paid, net of refunds | $ | 25,782 | $ | 68,030 | |||||||
Interest paid | $ | 32,417 | $ | 17,768 | |||||||
Noncash investing activity: | |||||||||||
Unpaid purchases of property and equipment at end of period | $ | 56,429 | $ | — |
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 Loss | Total Equity | |||||||||||||||||||||||||||||
Balance, December 31, 2021 | 75,433 | $ | 150,865 | $ | 440,608 | $ | 387,619 | $ | (40,591) | $ | 938,501 | ||||||||||||||||||||||||
Net income | 39,279 | 39,279 | |||||||||||||||||||||||||||||||||
Other comprehensive loss | (598) | (598) | |||||||||||||||||||||||||||||||||
Share-based compensation expense, exercises and other | 653 | 1,307 | (30,867) | (29,560) | |||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 76,086 | 152,172 | 409,741 | 426,898 | (41,189) | 947,622 | |||||||||||||||||||||||||||||
Net income | 28,604 | 28,604 | |||||||||||||||||||||||||||||||||
Other comprehensive loss | (15,770) | (15,770) | |||||||||||||||||||||||||||||||||
Share-based compensation expense, exercises and other | 85 | 171 | (1,968) | (1,797) | |||||||||||||||||||||||||||||||
Balance, June 30, 2022 | 76,171 | $ | 152,343 | $ | 407,773 | $ | 455,502 | $ | (56,959) | $ | 958,659 | ||||||||||||||||||||||||
Balance, December 31, 2020 | 73,472 | $ | 146,944 | $ | 436,597 | $ | 167,022 | $ | (38,509) | $ | 712,054 | ||||||||||||||||||||||||
Net income | 69,589 | 69,589 | |||||||||||||||||||||||||||||||||
Other comprehensive income | 7,903 | 7,903 | |||||||||||||||||||||||||||||||||
Dividends declared ($0.0025 per share) | (434) | (434) | |||||||||||||||||||||||||||||||||
Share-based compensation expense, exercises and other | 1,628 | 3,256 | (6,107) | (2,851) | |||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 75,100 | 150,200 | 430,490 | 236,177 | (30,606) | 786,261 | |||||||||||||||||||||||||||||
Net income | 65,896 | 65,896 | |||||||||||||||||||||||||||||||||
Other comprehensive loss | (2,412) | (2,412) | |||||||||||||||||||||||||||||||||
Dividends declared ($0.0025 per share) | (187) | (187) | |||||||||||||||||||||||||||||||||
Share-based compensation expense, exercises and other | 295 | 591 | (2,130) | (1,539) | |||||||||||||||||||||||||||||||
Balance, June 30, 2021 | 75,395 | $ | 150,791 | $ | 428,360 | $ | 301,886 | $ | (33,018) | $ | 848,019 |
(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 |
June 30, 2022 | December 31, 2021 | ||||||||||
Cash and cash equivalents | $ | 56,406 | $ | 55,712 | |||||||
Restricted cash included in Other assets, net | 16,623 | 16,323 | |||||||||
Total cash, cash equivalents, and restricted cash | $ | 73,029 | $ | 72,035 |
Preliminary Fair Value Originally Estimated as of Acquisition Date(1) | Differences Between Prior and the Current Periods Preliminary Fair Value Estimate | Preliminary Fair Value Currently Estimated as of Acquisition Date | |||||||||||||||
Assets acquired: | |||||||||||||||||
Current assets | $ | 142,136 | $ | (2,209) | $ | 139,927 | |||||||||||
Goodwill | 1,267,079 | 2,808 | 1,269,887 | ||||||||||||||
Intangible assets | 295,466 | — | 295,466 | ||||||||||||||
Other non-current assets | 371,320 | 1,468 | 372,788 | ||||||||||||||
Total assets | 2,076,001 | 2,067 | 2,078,068 | ||||||||||||||
Liabilities assumed: | |||||||||||||||||
Current liabilities | 241,266 | 2,741 | 244,007 | ||||||||||||||
Noncurrent liabilities | 150,128 | (674) | 149,454 | ||||||||||||||
Total liabilities | 391,394 | 2,067 | 393,461 | ||||||||||||||
Fair value of net assets acquired, net of cash | $ | 1,684,607 | $ | — | $ | 1,684,607 |
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 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue | $ | 2,500,015 | $ | 2,775,739 | $ | 5,184,080 | $ | 5,377,547 | |||||||||||||||
Net income (loss) | $ | 28,604 | $ | 86,472 | $ | (61,578) | $ | 160,606 |
Products & Healthcare Services | Patient Direct | Consolidated | |||||||||||||||
Carrying amount of goodwill, December 31, 2021 | $ | 106,280 | $ | 283,905 | $ | 390,185 | |||||||||||
Acquisition | — | 1,269,887 | 1,269,887 | ||||||||||||||
Currency translation adjustments | (3,764) | — | (3,764) | ||||||||||||||
Carrying amount of goodwill, June 30, 2022 | $ | 102,516 | $ | 1,553,792 | $ | 1,656,308 |
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 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Customer Relationships | Tradenames | Other Intangibles | Customer Relationships | Tradenames | Other Intangibles | ||||||||||||||||||||||||||||||||||||
Gross intangible assets | $ | 273,030 | $ | 156,936 | $ | 271,518 | $ | 275,526 | $ | 90,000 | $ | 43,189 | |||||||||||||||||||||||||||||
Accumulated amortization | (157,804) | (39,238) | (41,998) | (146,168) | (33,242) | (19,560) | |||||||||||||||||||||||||||||||||||
Net intangible assets | $ | 115,226 | $ | 117,698 | $ | 229,520 | $ | 129,358 | $ | 56,758 | $ | 23,629 | |||||||||||||||||||||||||||||
Weighted average useful life | 10 years | 11 years | 5 years | 10 years | 11 years | 8 years |
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 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Products & Healthcare Services | $ | 1,214 | $ | 7,879 | $ | 2,413 | $ | 13,842 | |||||||||||||||
Patient Direct | — | 745 | 483 | 745 | |||||||||||||||||||
Total exit and realignment charges | $ | 1,214 | $ | 8,624 | $ | 2,896 | $ | 14,587 |
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 |
Total | |||||
Accrued exit and realignment costs, December 31, 2021 | $ | 8,306 | |||
Provision for exit and realignment activities: | |||||
Severance | 811 | ||||
Other | 871 | ||||
Cash payments | (6,903) | ||||
Accrued exit and realignment costs, March 31, 2022 | 3,085 | ||||
Provision for exit and realignment activities: | |||||
Severance | 246 | ||||
Other | 968 | ||||
Cash payments | (3,477) | ||||
Accrued exit and realignment costs, June 30, 2022 | $ | 822 | |||
Accrued exit and realignment costs, December 31, 2020 | $ | 3,146 | |||
Provision for exit and realignment activities: | |||||
Information system restructuring costs | 1,029 | ||||
Lease obligations | 347 | ||||
Other | 781 | ||||
Cash payments | (2,915) | ||||
Accrued exit and realignment costs, March 31, 2021 | 2,388 | ||||
Provision for exit and realignment activities: | |||||
Information system restructuring costs | 1,611 | ||||
Lease obligations | (126) | ||||
Other | 989 | ||||
Cash payments | (2,302) | ||||
Accrued exit and realignment costs, June 30, 2021 | $ | 2,560 |
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 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||
Receivables Securitization Program | $ | 171,503 | $ | 175,000 | $ | 197,026 | $ | 200,000 | |||||||||||||||
4.375% Senior Notes, due December 2024 | 245,361 | 241,739 | 245,086 | 263,263 | |||||||||||||||||||
Term Loan A | 489,789 | 500,000 | — | — | |||||||||||||||||||
4.500% Senior Notes, due March 2029 | 492,176 | 406,660 | 491,656 | 515,225 | |||||||||||||||||||
Term Loan B | 577,746 | 595,508 | — | — | |||||||||||||||||||
6.625% Senior Notes, due March 2030 | 584,432 | 550,782 | — | — | |||||||||||||||||||
Finance leases and other | 15,421 | 15,421 | 15,809 | 15,809 | |||||||||||||||||||
Total debt | 2,576,428 | 2,485,110 | 949,577 | 994,297 | |||||||||||||||||||
Less current maturities | (10,815) | (10,815) | (2,037) | (2,037) | |||||||||||||||||||
Long-term debt | $ | 2,565,613 | $ | 2,474,295 | $ | 947,540 | $ | 992,260 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Service cost | $ | 617 | $ | 709 | $ | 1,250 | $ | 1,413 | |||||||||||||||
Interest cost | 519 | 448 | 1,042 | 894 | |||||||||||||||||||
Recognized net actuarial loss | 267 | 354 | 534 | 707 | |||||||||||||||||||
Net periodic benefit cost | $ | 1,403 | $ | 1,511 | $ | 2,826 | $ | 3,014 |
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||
Notional Amount | Maturity Date | Classification | Fair Value | Classification | Fair Value | ||||||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 400,000 | March 2027 | Other assets | $ | 3,736 | Other liabilities | $ | — | ||||||||||||||||||||||||||
Economic (non-designated) hedges | |||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 61,077 | July 2022 | Other current assets | $ | 5 | Other current liabilities | $ | 227 |
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||
Notional Amount | Maturity Date | Classification | Fair Value | Classification | Fair Value | ||||||||||||||||||||||||||||||
Economic (non-designated) hedges | |||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 9,700 | January 2022 | Other current assets | $ | 81 | Other current liabilities | $ | — |
Amount of Gain Recognized in Other Comprehensive Income (Loss) | Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income | Total Amount of Expense Line Items Presented in the Consolidated Statement of Operations in Which the Effects are Recorded | Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income | ||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | Six months ended June 30, 2022 | Three months ended June 30, 2022 | Six months ended June 30, 2022 | Three months ended June 30, 2022 | Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 2,044 | $ | 2,044 | Interest expense, net | $ | (35,839) | $ | (47,858) | $ | (1,692) | $ | (1,692) |
Amount of Gain Recognized in Other Comprehensive Income (Loss) | Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income | Total Amount of Expense Line Items Presented in the Consolidated Statement of Operations in Which the Effects are Recorded | Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income | ||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2021 | Six months ended June 30, 2021 | Three months ended June 30, 2021 | Six months ended June 30, 2021 | Three months ended June 30, 2021 | Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 2,426 | Loss on extinguishment of debt | $ | — | $ | (40,433) | $ | — | $ | (25,518) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Classification | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Operating lease cost | DS&A Expenses | $ | 24,501 | $ | 14,705 | $ | 40,601 | $ | 28,791 | ||||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||||||||
Amortization of lease assets | DS&A Expenses | 295 | 182 | 626 | 421 | ||||||||||||||||||||||||
Interest on lease liabilities | Interest expense, net | 304 | 294 | 611 | 601 | ||||||||||||||||||||||||
Total finance lease cost | 599 | 476 | 1,237 | 1,022 | |||||||||||||||||||||||||
Short-term lease cost | DS&A Expenses | 1,039 | 225 | 1,155 | 483 | ||||||||||||||||||||||||
Variable lease cost | DS&A Expenses | 9,299 | 4,343 | 14,028 | 8,660 | ||||||||||||||||||||||||
Total lease cost | $ | 35,438 | $ | 19,749 | $ | 57,021 | $ | 38,956 |
Classification | June 30, 2022 | December 31, 2021 | |||||||||||||||
Assets: | |||||||||||||||||
Operating lease assets | Operating lease assets | $ | 278,291 | $ | 194,006 | ||||||||||||
Finance lease assets | Property and equipment, net | 8,468 | 8,896 | ||||||||||||||
Total lease assets | $ | 286,759 | $ | 202,902 | |||||||||||||
Liabilities: | |||||||||||||||||
Current | |||||||||||||||||
Operating | Other current liabilities | $ | 69,650 | $ | 41,817 | ||||||||||||
Finance | Other current liabilities | 1,691 | 2,037 | ||||||||||||||
Noncurrent | |||||||||||||||||
Operating | Operating lease liabilities, excluding current portion | 220,504 | 162,241 | ||||||||||||||
Finance | Long-term debt, excluding current portion | 11,429 | 11,314 | ||||||||||||||
Total lease liabilities | $ | 303,274 | $ | 217,409 |
Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Supplemental cash flow information | ||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from operating and finance leases | $ | 39,256 | $ | 28,471 | ||||||||||
Financing cash flows from finance leases | $ | 744 | $ | 423 | ||||||||||
Right-of-use assets obtained in exchange for new operating and finance lease liabilities | $ | 49,641 | $ | 54,640 | ||||||||||
Weighted average remaining lease term (years) | ||||||||||||||
Operating leases | 4.5 | 5.2 | ||||||||||||
Finance leases | 6.1 | 7.7 | ||||||||||||
Weighted average discount rate | ||||||||||||||
Operating leases | 6.8% | 8.8% | ||||||||||||
Finance leases | 10.8% | 12.4% |
Operating Leases | Finance Leases | Total | |||||||||||||||
2022 | $ | 45,195 | $ | 1,351 | $ | 46,546 | |||||||||||
2023 | 88,720 | 2,693 | 91,413 | ||||||||||||||
2024 | 74,905 | 2,641 | 77,546 | ||||||||||||||
2025 | 54,017 | 2,588 | 56,605 | ||||||||||||||
2026 | 37,149 | 2,506 | 39,655 | ||||||||||||||
Thereafter | 54,088 | 4,774 | 58,862 | ||||||||||||||
Total lease payments | 354,074 | 16,553 | 370,627 | ||||||||||||||
Less: Interest | (63,920) | (3,433) | (67,353) | ||||||||||||||
Present value of lease liabilities | $ | 290,154 | $ | 13,120 | $ | 303,274 |
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 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income | $ | 28,604 | $ | 65,896 | $ | 67,884 | $ | 135,486 | |||||||||||||||
Weighted average shares outstanding - basic | 74,710 | 72,818 | 74,158 | 72,474 | |||||||||||||||||||
Dilutive shares | 1,587 | 2,987 | 2,011 | 2,791 | |||||||||||||||||||
Weighted average shares outstanding - diluted | 76,297 | 75,805 | 76,169 | 75,265 | |||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | 0.38 | $ | 0.90 | $ | 0.92 | $ | 1.87 | |||||||||||||||
Diluted | $ | 0.37 | $ | 0.87 | $ | 0.89 | $ | 1.80 |
Retirement Plans | Currency Translation Adjustments | Derivatives | Total | ||||||||||||||||||||
Accumulated other comprehensive loss, March 31, 2022 | $ | (14,408) | $ | (26,781) | $ | — | $ | (41,189) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | — | (18,831) | 2,044 | (16,787) | |||||||||||||||||||
Income tax | — | — | (532) | (532) | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | — | (18,831) | 1,512 | (17,319) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 386 | — | 1,692 | 2,078 | |||||||||||||||||||
Income tax | (89) | — | (440) | (529) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 297 | — | 1,252 | 1,549 | |||||||||||||||||||
Other comprehensive (loss) income | 297 | (18,831) | 2,764 | (15,770) | |||||||||||||||||||
Accumulated other comprehensive (loss) gain, June 30, 2022 | $ | (14,111) | $ | (45,612) | $ | 2,764 | $ | (56,959) |
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 | ) |
Retirement Plans | Currency Translation Adjustments | Derivatives | Total | ||||||||||||||||||||
Accumulated other comprehensive loss, March 31, 2021 | $ | (18,326) | $ | (12,280) | $ | — | $ | (30,606) | |||||||||||||||
Other comprehensive loss before reclassifications | — | (2,448) | — | (2,448) | |||||||||||||||||||
Income tax | — | — | — | — | |||||||||||||||||||
Other comprehensive loss before reclassifications, net of tax | — | (2,448) | — | (2,448) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 48 | — | — | 48 | |||||||||||||||||||
Income tax | (12) | — | — | (12) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 36 | — | — | 36 | |||||||||||||||||||
Other comprehensive income (loss) | 36 | (2,448) | — | (2,412) | |||||||||||||||||||
Accumulated other comprehensive loss, June 30, 2021 | $ | (18,290) | $ | (14,728) | $ | — | $ | (33,018) |
Retirement Plans | Currency Translation Adjustments | Derivatives | Total | ||||||||||||||||||||
Accumulated other comprehensive loss, December 31, 2021 | $ | (14,597) | $ | (25,994) | $ | — | $ | (40,591) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | — | (19,618) | 2,044 | (17,574) | |||||||||||||||||||
Income tax | — | — | (532) | (532) | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | — | (19,618) | 1,512 | (18,106) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 635 | — | 1,692 | 2,327 | |||||||||||||||||||
Income tax | (149) | — | (440) | (589) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 486 | — | 1,252 | 1,738 | |||||||||||||||||||
Other comprehensive (loss) income | 486 | (19,618) | 2,764 | (16,368) | |||||||||||||||||||
Accumulated other comprehensive (loss) gain, June 30, 2022 | $ | (14,111) | $ | (45,612) | $ | 2,764 | $ | (56,959) |
Retirement Plans | Currency Translation Adjustments | Derivatives | Total | ||||||||||||||||||||
Accumulated other comprehensive loss, December 31, 2020 | $ | (18,447) | $ | (18) | $ | (20,044) | $ | (38,509) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | — | (14,710) | 2,426 | (12,284) | |||||||||||||||||||
Income tax | — | — | (611) | (611) | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | — | (14,710) | 1,815 | (12,895) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 204 | — | 25,518 | 25,722 | |||||||||||||||||||
Income tax | (47) | — | (7,289) | (7,336) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 157 | — | 18,229 | 18,386 | |||||||||||||||||||
Other comprehensive income (loss) | 157 | (14,710) | 20,044 | 5,491 | |||||||||||||||||||
Accumulated other comprehensive loss, June 30, 2021 | $ | (18,290) | $ | (14,728) | $ | — | $ | (33,018) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Products & Healthcare Services | $ | 1,927,388 | $ | 2,255,820 | $ | 4,061,429 | $ | 4,365,265 | |||||||||||||||
Patient Direct | 572,627 | 233,640 | 845,538 | 450,729 | |||||||||||||||||||
Consolidated net revenue | $ | 2,500,015 | $ | 2,489,460 | $ | 4,906,967 | $ | 4,815,994 | |||||||||||||||
Operating income: | |||||||||||||||||||||||
Products & Healthcare Services | $ | 61,243 | $ | 101,229 | $ | 150,325 | $ | 251,647 | |||||||||||||||
Patient Direct | 52,332 | 14,305 | 68,125 | 26,569 | |||||||||||||||||||
Intangible amortization | (30,888) | (10,026) | (41,156) | (20,052) | |||||||||||||||||||
Acquisition-related and exit and realignment charges | (7,602) | (8,624) | (41,150) | (14,587) | |||||||||||||||||||
Consolidated operating income | $ | 75,085 | $ | 96,884 | $ | 136,144 | $ | 243,577 | |||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||
Products & Healthcare Services | $ | 19,209 | $ | 18,847 | $ | 38,203 | $ | 38,007 | |||||||||||||||
Patient Direct | 53,952 | 3,753 | 59,083 | 7,494 | |||||||||||||||||||
Consolidated depreciation and amortization | $ | 73,161 | $ | 22,600 | $ | 97,286 | $ | 45,501 | |||||||||||||||
Capital expenditures: | |||||||||||||||||||||||
Products & Healthcare Services | $ | 18,418 | $ | 11,806 | $ | 29,061 | $ | 18,270 | |||||||||||||||
Patient Direct | 36,320 | 252 | 36,638 | 411 | |||||||||||||||||||
Consolidated capital expenditures | $ | 54,738 | $ | 12,058 | $ | 65,699 | $ | 18,681 |
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 | June 30, 2022 | December 31, 2021 | |||||||||||||||
Total assets: | Total assets: | |||||||||||||||||
Domestic | $ | 2,416,079 | $ | 1,778,481 | ||||||||||||||
International | 418,331 | 352,898 | ||||||||||||||||
Proprietary Products | 401,331 | 400,885 | ||||||||||||||||
Products & Healthcare Services | Products & Healthcare Services | $ | 2,968,089 | $ | 3,012,303 | |||||||||||||
Patient Direct | Patient Direct | 2,530,783 | 468,536 | |||||||||||||||
Segment assets | 3,235,741 | 2,532,264 | Segment assets | 5,498,872 | 3,480,839 | |||||||||||||
Cash and cash equivalents | 98,415 | 185,488 | Cash and cash equivalents | 56,406 | 55,712 | |||||||||||||
Consolidated total assets | $ | 3,334,156 | $ | 2,717,752 | Consolidated total assets | $ | 5,555,278 | $ | 3,536,551 |
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 | (758,485 | ) | 224,183 | |||||||||||||
Retained earnings (deficit) | 683,444 | 1,267,294 | (41,539 | ) | (1,225,755 | ) | 683,444 | ||||||||||||
Accumulated other comprehensive income (loss) | (26,342 | ) | (10,567 | ) | (15,774 | ) | 26,341 | (26,342 | ) | ||||||||||
Total equity | 1,003,784 | 1,431,340 | 526,559 | (1,957,899 | ) | 1,003,784 | |||||||||||||
Total liabilities and equity | $ | 2,137,178 | $ | 2,605,812 | $ | 1,341,188 | $ | (2,750,022 | ) | $ | 3,334,156 |
December 31, 2016 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Balance Sheets | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 38,015 | $ | 61,266 | $ | 86,207 | $ | — | $ | 185,488 | |||||||||
Accounts receivable, net | — | 526,170 | 90,016 | (10,102 | ) | 606,084 | |||||||||||||
Merchandise inventories | — | 856,566 | 61,505 | (1,760 | ) | 916,311 | |||||||||||||
Other current assets | 106 | 86,907 | 167,143 | — | 254,156 | ||||||||||||||
Total current assets | 38,121 | 1,530,909 | 404,871 | (11,862 | ) | 1,962,039 | |||||||||||||
Property and equipment, net | — | 97,725 | 93,993 | — | 191,718 | ||||||||||||||
Goodwill, net | — | 180,006 | 234,930 | — | 414,936 | ||||||||||||||
Intangible assets, net | — | 11,655 | 70,856 | — | 82,511 | ||||||||||||||
Due from O&M and subsidiaries | — | 573,395 | — | (573,395 | ) | — | |||||||||||||
Advances to and investments in consolidated subsidiaries | 2,044,963 | — | — | (2,044,963 | ) | — | |||||||||||||
Other assets, net | — | 49,887 | 16,661 | — | 66,548 | ||||||||||||||
Total assets | $ | 2,083,084 | $ | 2,443,577 | $ | 821,311 | $ | (2,630,220 | ) | $ | 2,717,752 | ||||||||
Liabilities and equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable | $ | — | $ | 683,189 | $ | 75,512 | $ | (7,951 | ) | $ | 750,750 | ||||||||
Accrued payroll and related liabilities | — | 32,814 | 12,237 | — | 45,051 | ||||||||||||||
Other current liabilities | 7,106 | 93,327 | 138,404 | — | 238,837 | ||||||||||||||
Total current liabilities | 7,106 | 809,330 | 226,153 | (7,951 | ) | 1,034,638 | |||||||||||||
Long-term debt, excluding current portion | 544,838 | 3,219 | 16,526 | — | 564,583 | ||||||||||||||
Due to O&M and subsidiaries | 571,102 | — | 48,044 | (619,146 | ) | — | |||||||||||||
Intercompany debt | — | 138,890 | — | (138,890 | ) | — | |||||||||||||
Deferred income taxes | — | 70,280 | 20,103 | — | 90,383 | ||||||||||||||
Other liabilities | — | 60,578 | 7,532 | — | 68,110 | ||||||||||||||
Total liabilities | 1,123,046 | 1,082,297 | 318,358 | (765,987 | ) | 1,757,714 | |||||||||||||
Equity | — | ||||||||||||||||||
Common stock | 122,062 | — | — | — | 122,062 | ||||||||||||||
Paid-in capital | 219,955 | 174,614 | 583,872 | (758,486 | ) | 219,955 | |||||||||||||
Retained earnings (deficit) | 685,504 | 1,196,341 | (42,032 | ) | (1,154,309 | ) | 685,504 | ||||||||||||
Accumulated other comprehensive income (loss) | (67,483 | ) | (9,675 | ) | (38,887 | ) | 48,562 | (67,483 | ) | ||||||||||
Total equity | 960,038 | 1,361,280 | 502,953 | (1,864,233 | ) | 960,038 | |||||||||||||
Total liabilities and equity | $ | 2,083,084 | $ | 2,443,577 | $ | 821,311 | $ | (2,630,220 | ) | $ | 2,717,752 |
Nine Months Ended September 30, 2017 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Cash Flows | |||||||||||||||||||
Operating activities: | |||||||||||||||||||
Net income (loss) | $ | 49,796 | $ | 70,954 | $ | 492 | $ | (71,446 | ) | $ | 49,796 | ||||||||
Adjustments to reconcile net income to cash provided by (used for) operating activities: | |||||||||||||||||||
Equity in earnings of subsidiaries | (70,986 | ) | — | — | 70,986 | — | |||||||||||||
Depreciation and amortization | — | 23,281 | 17,779 | — | 41,060 | ||||||||||||||
Share-based compensation expense | — | 8,592 | — | — | 8,592 | ||||||||||||||
Provision for losses on accounts receivable | — | (377 | ) | 1,535 | — | 1,158 | |||||||||||||
Deferred income tax expense (benefit) | — | (1,208 | ) | (3,377 | ) | — | (4,585 | ) | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Accounts receivable | — | (68,655 | ) | (8,047 | ) | (2,412 | ) | (79,114 | ) | ||||||||||
Merchandise inventories | — | (52,840 | ) | (3,753 | ) | 459 | (56,134 | ) | |||||||||||
Accounts payable | — | 85,591 | (8,217 | ) | 2,413 | 79,787 | |||||||||||||
Net change in other assets and liabilities | (65 | ) | (25,431 | ) | (15,138 | ) | — | (40,634 | ) | ||||||||||
Other, net | (1 | ) | 5,716 | 4 | — | 5,719 | |||||||||||||
Cash provided by (used for) operating activities | (21,256 | ) | 45,623 | (18,722 | ) | — | 5,645 | ||||||||||||
Investing activities: | |||||||||||||||||||
Acquisitions, net of cash acquired | — | — | (366,569 | ) | — | (366,569 | ) | ||||||||||||
Additions to property and equipment | — | (17,884 | ) | (7,079 | ) | — | (24,963 | ) | |||||||||||
Additions to computer software and intangible assets | — | (5,333 | ) | (7,493 | ) | — | (12,826 | ) | |||||||||||
Proceeds from the sale of property and equipment | — | 198 | 582 | — | 780 | ||||||||||||||
Cash used for investing activities | — | (23,019 | ) | (380,559 | ) | — | (403,578 | ) | |||||||||||
Financing activities: | |||||||||||||||||||
Change in intercompany advances | 50,452 | (87,278 | ) | 36,826 | — | — | |||||||||||||
Proceeds from debt issuance | — | — | 250,000 | — | 250,000 | ||||||||||||||
Borrowing under revolving credit facility | — | 6,013 | 111,187 | — | 117,200 | ||||||||||||||
Financing costs paid | — | — | (1,798 | ) | — | (1,798 | ) | ||||||||||||
Cash dividends paid | (47,316 | ) | — | — | — | (47,316 | ) | ||||||||||||
Repurchases of common stock | (5,000 | ) | — | — | — | (5,000 | ) | ||||||||||||
Other, net | (3,439 | ) | (1,460 | ) | (2,464 | ) | — | (7,363 | ) | ||||||||||
Cash provided by (used for) financing activities | (5,303 | ) | (82,725 | ) | 393,751 | — | 305,723 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 5,137 | — | 5,137 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (26,559 | ) | (60,121 | ) | (393 | ) | — | (87,073 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 38,015 | 61,266 | 86,207 | — | 185,488 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 11,456 | $ | 1,145 | $ | 85,814 | $ | — | $ | 98,415 |
Nine Months Ended September 30, 2016 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Cash Flows | |||||||||||||||||||
Operating activities: | |||||||||||||||||||
Net income (loss) | $ | 81,682 | $ | 95,145 | $ | 7,877 | $ | (103,022 | ) | $ | 81,682 | ||||||||
Adjustments to reconcile net income to cash provided by (used for) operating activities: | |||||||||||||||||||
Equity in earnings of subsidiaries | (103,654 | ) | — | — | 103,654 | — | |||||||||||||
Depreciation and amortization | — | 22,497 | 19,685 | — | 42,182 | ||||||||||||||
Share-based compensation expense | — | 8,934 | — | — | 8,934 | ||||||||||||||
Provision for losses on accounts receivable | — | (84 | ) | (132 | ) | — | (216 | ) | |||||||||||
Deferred income tax expense (benefit) | — | (3,233 | ) | — | — | (3,233 | ) | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Accounts receivable | — | 14,107 | (9,385 | ) | 301 | 5,023 | |||||||||||||
Merchandise inventories | — | (3,662 | ) | (771 | ) | (633 | ) | (5,066 | ) | ||||||||||
Accounts payable | — | 55,060 | 3,982 | (300 | ) | 58,742 | |||||||||||||
Net change in other assets and liabilities | 2,277 | (512 | ) | (46,668 | ) | — | (44,903 | ) | |||||||||||
Other, net | 1,321 | 319 | (274 | ) | — | 1,366 | |||||||||||||
Cash provided by (used for) operating activities | (18,374 | ) | 188,571 | (25,686 | ) | — | 144,511 | ||||||||||||
Investing activities: | |||||||||||||||||||
Additions to property and equipment | — | (7,337 | ) | (6,345 | ) | — | (13,682 | ) | |||||||||||
Additions to computer software and intangible assets | — | (2,937 | ) | (4,144 | ) | — | (7,081 | ) | |||||||||||
Proceeds from the sale of property and equipment | — | 78 | 4,419 | — | 4,497 | ||||||||||||||
Cash used for investing activities | — | (10,196 | ) | (6,070 | ) | — | (16,266 | ) | |||||||||||
Financing activities: | |||||||||||||||||||
Change in intercompany advances | 172,057 | (162,206 | ) | (9,851 | ) | — | — | ||||||||||||
Change in bank overdraft | — | — | 21,753 | — | 21,753 | ||||||||||||||
Cash dividends paid | (47,802 | ) | — | — | — | (47,802 | ) | ||||||||||||
Repurchases of common stock | (48,654 | ) | — | — | — | (48,654 | ) | ||||||||||||
Other, net | (4,027 | ) | (1,782 | ) | (2,309 | ) | — | (8,118 | ) | ||||||||||
Cash provided by (used for) financing activities | 71,574 | (163,988 | ) | 9,593 | — | (82,821 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 6,652 | — | 6,652 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 53,200 | 14,387 | (15,511 | ) | — | 52,076 | |||||||||||||
Cash and cash equivalents at beginning of period | 103,284 | 5,614 | 52,122 | — | 161,020 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 156,484 | $ | 20,001 | $ | 36,611 | $ | — | $ | 213,096 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
United States | $ | 2,376,573 | $ | 2,336,673 | $ | 4,638,592 | $ | 4,519,428 | |||||||||||||||
International | 123,442 | 152,787 | 268,375 | 296,566 | |||||||||||||||||||
Consolidated net revenue | $ | 2,500,015 | $ | 2,489,460 | $ | 4,906,967 | $ | 4,815,994 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Dollars in thousands except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating earnings, as reported (GAAP) | $ | 29,671 | $ | 53,568 | $ | 98,024 | $ | 150,591 | |||||||
Acquisition-related and exit and realignment charges (1) | 9,299 | 2,739 | 21,134 | 19,974 | |||||||||||
Acquisition-related intangible amortization (2) | 5,071 | 2,489 | 9,737 | 7,552 | |||||||||||
Other (3) | 4,441 | — | 8,674 | — | |||||||||||
Operating earnings, adjusted (non-GAAP) (Adjusted Operating Earnings) | $ | 48,482 | $ | 58,796 | $ | 137,569 | $ | 178,117 | |||||||
Net income, as reported (GAAP) | $ | 10,871 | $ | 29,831 | $ | 49,796 | $ | 81,682 | |||||||
Acquisition-related and exit and realignment charges (1) | 9,299 | 2,739 | 21,134 | 19,974 | |||||||||||
Income tax expense (benefit) (4) | (2,854 | ) | (1,015 | ) | (7,367 | ) | (6,615 | ) | |||||||
Acquisition-related intangible amortization (2) | 5,071 | 2,489 | 9,737 | 7,552 | |||||||||||
Income tax expense (benefit) (4) | (1,601 | ) | (645 | ) | (2,993 | ) | (1,956 | ) | |||||||
Other (3) | 4,441 | — | 8,674 | — | |||||||||||
Income tax expense (benefit) (4) | (973 | ) | — | (2,465 | ) | — | |||||||||
Net income, adjusted (non-GAAP) (Adjusted Net Income) | $ | 24,254 | $ | 33,399 | $ | 76,516 | $ | 100,637 | |||||||
Net income per diluted common share, as reported (GAAP) | $ | 0.18 | $ | 0.48 | $ | 0.82 | $ | 1.32 | |||||||
Acquisition-related and exit and realignment charges, per diluted common share (1) | 0.11 | 0.03 | 0.23 | 0.21 | |||||||||||
Acquisition-related intangible amortization, per diluted common share (2) | 0.06 | 0.03 | 0.11 | $ | 0.09 | ||||||||||
Other, per diluted common share (3) | 0.05 | — | 0.10 | — | |||||||||||
Net income per diluted common share, adjusted (non-GAAP)(Adjusted EPS) | $ | 0.40 | $ | 0.54 | $ | 1.26 | $ | 1.62 |
Three Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | ||||||||||
Domestic | $ | 2,194,143 | $ | 2,287,233 | $ | (93,090 | ) | (4.1 | )% | |||||
International | 96,661 | 83,751 | 12,910 | 15.4 | % | |||||||||
Proprietary Products | 124,542 | 132,705 | (8,163 | ) | (6.2 | )% | ||||||||
Inter-segment | (81,385 | ) | (88,088 | ) | 6,703 | (7.6 | )% | |||||||
Net revenue | $ | 2,333,961 | $ | 2,415,601 | $ | (81,640 | ) | (3.4 | )% |
Nine Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | ||||||||||
Domestic | $ | 6,518,571 | $ | 6,954,687 | $ | (436,116 | ) | (6.3 | )% | |||||
International | 287,555 | 255,861 | 31,694 | 12.4 | % | |||||||||
Proprietary Products | 392,654 | 409,022 | (16,368 | ) | (4.0 | )% | ||||||||
Inter-segment | (270,339 | ) | (264,501 | ) | (5,838 | ) | 2.2 | % | ||||||
Net revenue | $ | 6,928,441 | $ | 7,355,069 | $ | (426,628 | ) | (5.8 | )% |
Three Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Products & Healthcare Services | $ | 1,927,388 | $ | 2,255,820 | $ | (328,432) | (14.6) | % | |||||||||||||||
Patient Direct | 572,627 | 233,640 | 338,987 | 145.1 | % | ||||||||||||||||||
Net revenue | $ | 2,500,015 | $ | 2,489,460 | $ | 10,555 | 0.4 | % |
Six Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Products & Healthcare Services | $ | 4,061,429 | $ | 4,365,265 | $ | (303,836) | (7.0) | % | |||||||||||||||
Patient Direct | 845,538 | 450,729 | 394,809 | 87.6 | % | ||||||||||||||||||
Net revenue | $ | 4,906,967 | $ | 4,815,994 | $ | 90,973 | 1.9 | % |
Three Months Ended September 30, | Change | Three Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | (Dollars in thousands) | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||
Cost of goods sold | $ | 2,032,019 | $ | 2,119,326 | $ | (87,307 | ) | (4.1 | )% | Cost of goods sold | $ | 1,967,510 | $ | 2,089,392 | $ | (121,882) | (5.8) | % |
Nine Months Ended September 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | (Dollars in thousands) | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||
Cost of goods sold | $ | 6,071,787 | $ | 6,462,739 | $ | (390,952 | ) | (6.0 | )% | Cost of goods sold | $ | 4,001,014 | $ | 3,973,175 | $ | 27,839 | 0.7 | % |
Three Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Gross margin | $ | 532,505 | $ | 400,068 | $ | 132,437 | 33.1 | % | |||||||||||||||
As a % of net revenue | 21.30 | % | 16.07 | % |
Six Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Gross margin | $ | 905,953 | $ | 842,819 | $ | 63,134 | 7.5 | % | |||||||||||||||
As a % of net revenue | 18.46 | % | 17.50 | % |
Three Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | ||||||||||
Gross margin | $ | 301,942 | $ | 296,275 | $ | 5,667 | 1.9 | % | ||||||
As a % of net revenue | 12.94 | % | 12.27 | % |
Nine Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | ||||||||||
Gross margin | $ | 856,654 | $ | 892,330 | $ | (35,676 | ) | (4.0 | )% | |||||
As a % of net revenue | 12.36 | % | 12.13 | % |
Three Months Ended September 30, | Change | Three Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | (Dollars in thousands) | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||
Distribution, selling and administrative expenses | $ | 261,045 | $ | 241,305 | $ | 19,740 | 8.2 | % | Distribution, selling and administrative expenses | $ | 452,813 | $ | 294,096 | $ | 158,717 | 54.0 | % | ||||||||||||||||||||
As a % of net revenue | 11.18 | % | 9.99 | % | As a % of net revenue | 18.11 | % | 11.81 | % | ||||||||||||||||||||||||||||
Acquisition-related and exit and realignment charges | Acquisition-related and exit and realignment charges | $ | 7,602 | $ | 8,624 | $ | (1,022) | (11.9) | % | ||||||||||||||||||||||||||||
Other operating (income) expense, net | $ | 1,927 | $ | (1,337 | ) | $ | 3,264 | (244.1 | )% | Other operating (income) expense, net | $ | (2,995) | $ | 464 | $ | (3,459) | (745.5) | % |
Six Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Distribution, selling and administrative expenses | $ | 732,553 | $ | 586,796 | $ | 145,757 | 24.8 | % | |||||||||||||||
As a % of net revenue | 14.93 | % | 12.18 | % | |||||||||||||||||||
Acquisition-related and exit and realignment charges | $ | 41,150 | $ | 14,587 | $ | 26,563 | 182.1 | % | |||||||||||||||
Other operating (income) expense, net | $ | (3,894) | $ | (2,141) | $ | (1,753) | (81.9) | % |
Nine Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | ||||||||||
Distribution, selling and administrative expenses | $ | 735,353 | $ | 726,944 | $ | 8,409 | 1.2 | % | ||||||
As a % of net revenue | 10.61 | % | 9.88 | % | ||||||||||
Other operating (income) expense, net | $ | 2,143 | $ | (5,179 | ) | $ | 7,322 | (141.4 | )% |
Three Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Interest expense, net | $ | 35,839 | $ | 11,540 | $ | 24,299 | 210.6 | % | |||||||||||||||
Effective interest rate | 5.26 | % | 4.30 | % |
Six Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Interest expense, net | $ | 47,858 | $ | 25,212 | $ | 22,646 | 89.8 | % | |||||||||||||||
Effective interest rate | 5.12 | % | 4.94 | % |
Six Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Loss on extinguishment of debt | $ | — | $ | 40,433 | $ | (40,433) | (100.0) | % |
Three Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Other expense, net | $ | 783 | $ | 1,028 | $ | (245) | (23.8) | % |
Six Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Other expense, net | $ | 1,565 | $ | 1,598 | $ | (33) | (2.1) | % |
Three Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Income tax provision | $ | 9,859 | $ | 18,420 | $ | (8,561) | (46.5) | % | |||||||||||||||
Effective tax rate | 25.6 | % | 21.8 | % |
Six Months Ended June 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Income tax provision | $ | 18,837 | $ | 40,848 | $ | (22,011) | (53.9) | % | |||||||||||||||
Effective tax rate | 21.7 | % | 23.2 | % |
Three Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | ||||||||||
Interest expense, net | $ | 8,737 | $ | 6,770 | $ | 1,967 | 29.1 | % | ||||||
Effective interest rate | 4.15 | % | 4.76 | % |
Nine Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | ||||||||||
Interest expense, net | $ | 22,218 | $ | 20,324 | $ | 1,894 | 9.3 | % | ||||||
Effective interest rate | 4.52 | % | 4.79 | % |
Three Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | ||||||||||
Income tax provision | $ | 10,063 | $ | 16,967 | $ | (6,904 | ) | (40.7 | )% | |||||
Effective tax rate | 48.1 | % | 36.3 | % |
Nine Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ | % | ||||||||||
Income tax provision | $ | 26,010 | $ | 48,585 | $ | (22,575 | ) | (46.5 | )% | |||||
Effective tax rate | 34.3 | % | 37.3 | % |
September 30, 2017 | December 31, 2016 | Change | June 30, 2022 | December 31, 2021 | Change | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | $ | % | (Dollars in thousands) | $ | % | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 98,415 | $ | 185,488 | $ | (87,073 | ) | (46.9 | )% | Cash and cash equivalents | $ | 56,406 | $ | 55,712 | $ | 694 | 1.2 | % | |||||||||||||||||||
Accounts and notes receivable, net of allowances | $ | 732,756 | $ | 606,084 | $ | 126,672 | 20.9 | % | |||||||||||||||||||||||||||||
Accounts receivable, net of allowances | Accounts receivable, net of allowances | $ | 743,853 | $ | 681,564 | $ | 62,289 | 9.1 | % | ||||||||||||||||||||||||||||
Consolidated DSO (1) | 27.6 | 23.1 | Consolidated DSO (1) | 26.0 | 24.6 | ||||||||||||||||||||||||||||||||
Merchandise inventories | $ | 989,251 | $ | 916,311 | $ | 72,940 | 8.0 | % | Merchandise inventories | $ | 1,525,331 | $ | 1,495,972 | $ | 29,359 | 2.0 | % | ||||||||||||||||||||
Consolidated inventory turnover (2) | 8.1 | 9.2 | |||||||||||||||||||||||||||||||||||
Inventory days (2) | Inventory days (2) | 70.5 | 64.7 | ||||||||||||||||||||||||||||||||||
Accounts payable | $ | 875,630 | $ | 750,750 | $ | 124,880 | 16.6 | % | Accounts payable | $ | 1,137,337 | $ | 1,001,959 | $ | 135,378 | 13.5 | % |
(Dollars in thousands) | 2017 | 2016 | |||||
Net cash provided by (used for): | |||||||
Operating activities | $ | 5,645 | $ | 144,511 | |||
Investing activities | (403,578 | ) | (16,266 | ) | |||
Financing activities | 305,723 | (82,821 | ) | ||||
Effect of exchange rate changes | 5,137 | 6,652 | |||||
Increase (decrease) in cash and cash equivalents | $ | (87,073 | ) | $ | 52,076 |
(Dollars in thousands) | 2022 | 2021 | |||||||||
Net cash provided by (used for): | |||||||||||
Operating activities | $ | 169,524 | $ | 12,406 | |||||||
Investing activities | (1,745,299) | (18,659) | |||||||||
Financing activities | 1,580,633 | (64,788) | |||||||||
Effect of exchange rate changes | (3,864) | (1,718) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 994 | $ | (72,759) |
Summarized Consolidated Statement of Operations - Guarantor Group | Six Months Ended June 30, 2022 | ||||
(Dollars in thousands) | |||||
Net revenue(1) | $ | 4,771,148 | |||
Gross margin | 839,511 | ||||
Operating income | 100,937 | ||||
Net income | 48,825 |
Summarized Consolidated Balance Sheets - Guarantor Group | June 30, 2022 | December 31, 2021 | |||||||||
(Dollars in thousands) | |||||||||||
Total current assets | $ | 1,648,833 | $ | 1,449,917 | |||||||
Total assets | 4,915,785 | 2,807,581 | |||||||||
Current liabilities | 1,643,705 | 1,399,499 | |||||||||
Total liabilities | 4,464,205 | 2,422,542 |
Summarized Consolidated Balance Sheets - Collateral Group | June 30, 2022 | December 31, 2021 | |||||||||
(Dollars in thousands) | |||||||||||
Total current assets | $ | 1,718,358 | $ | 1,514,724 | |||||||
Total assets | 4,839,246 | 2,729,455 | |||||||||
Current liabilities | 1,567,372 | 1,341,691 | |||||||||
Total liabilities | 4,423,123 | 2,398,694 |
3.1 |
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
10.1 | ||||||||
22.1 | ||||||||
22.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as inline iXBRL and contained in Exhibit 101) | |||||||
Owens & Minor, Inc. | |||||||||||
(Registrant) | |||||||||||
Date: | August 3, 2022 | ||||||||||
President, Chief Executive Officer & Director | |||||||||||
Date: | August 3, 2022 | ||||||||||
Andrew G. Long | |||||||||||
Executive Vice President & Chief | |||||||||||