x | 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) |
Large accelerated filer | x | Accelerated filer | ¨ |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(in thousands, except per share data) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Net revenue | $ | 2,422,167 | $ | 2,305,858 | $ | 4,813,363 | $ | 4,562,239 | $ | 2,471,669 | $ | 2,386,126 | $ | 7,285,032 | $ | 6,948,365 | ||||||||||||||
Cost of goods sold | 2,123,830 | 2,023,586 | 4,217,425 | 3,998,771 | 2,165,315 | 2,093,643 | 6,382,740 | 6,092,413 | ||||||||||||||||||||||
Gross margin | 298,337 | 282,272 | 595,938 | 563,468 | 306,354 | 292,483 | 902,292 | 855,952 | ||||||||||||||||||||||
Selling, general and administrative expenses | 231,498 | 225,838 | 465,323 | 451,448 | 231,847 | 231,377 | 697,170 | 682,825 | ||||||||||||||||||||||
Acquisition-related and exit and realignment charges | 5,707 | 7,593 | 15,623 | 10,855 | 6,134 | 13,957 | 21,757 | 24,813 | ||||||||||||||||||||||
Depreciation and amortization | 15,460 | 13,892 | 31,329 | 27,756 | 15,112 | 13,841 | 46,441 | 41,597 | ||||||||||||||||||||||
Other operating income, net | (2,188 | ) | (2,152 | ) | (5,172 | ) | (9,978 | ) | (311 | ) | (2,069 | ) | (5,484 | ) | (12,046 | ) | ||||||||||||||
Operating earnings | 47,860 | 37,101 | 88,835 | 83,387 | 53,572 | 35,377 | 142,408 | 118,763 | ||||||||||||||||||||||
Interest expense, net | 6,680 | 3,342 | 13,560 | 6,589 | 6,744 | 4,304 | 20,305 | 10,893 | ||||||||||||||||||||||
Loss on early retirement of debt | — | 14,890 | — | 14,890 | ||||||||||||||||||||||||||
Income before income taxes | 41,180 | 33,759 | 75,275 | 76,798 | 46,828 | 16,183 | 122,103 | 92,980 | ||||||||||||||||||||||
Income tax provision | 16,954 | 13,883 | 32,109 | 31,436 | 18,652 | 9,028 | 50,761 | 40,464 | ||||||||||||||||||||||
Net income | $ | 24,226 | $ | 19,876 | $ | 43,166 | $ | 45,362 | $ | 28,176 | $ | 7,155 | $ | 71,342 | $ | 52,516 | ||||||||||||||
Net income per common share: | ||||||||||||||||||||||||||||||
Basic | $ | 0.39 | $ | 0.32 | $ | 0.69 | $ | 0.72 | $ | 0.45 | $ | 0.11 | $ | 1.14 | $ | 0.84 | ||||||||||||||
Diluted | $ | 0.39 | $ | 0.32 | $ | 0.69 | $ | 0.72 | $ | 0.45 | $ | 0.11 | $ | 1.14 | $ | 0.84 | ||||||||||||||
Cash dividends per common share | $ | 0.2525 | $ | 0.25 | $ | 0.505 | $ | 0.50 | $ | 0.2525 | $ | 0.25 | $ | 0.7575 | $ | 0.75 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Net income | $ | 24,226 | $ | 19,876 | $ | 43,166 | $ | 45,362 | $ | 28,176 | $ | 7,155 | $ | 71,342 | $ | 52,516 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||
Currency translation adjustments (net of income tax of $0 in 2015 and 2014) | 6,606 | (570 | ) | (21,335 | ) | (103 | ) | 2,054 | (16,796 | ) | (19,281 | ) | (16,899 | ) | ||||||||||||||||
Change in unrecognized net periodic pension costs (net of income tax of $141 and $285 in 2015 and $90 and $186 in 2014) | 260 | 112 | 518 | 219 | ||||||||||||||||||||||||||
Other (net of income tax of $0 in 2015 and $8 and $16 in 2014) | (8 | ) | 15 | 30 | 6 | |||||||||||||||||||||||||
Change in unrecognized net periodic pension costs (net of income tax of $117 and $402 in 2015 and $57 and $245 in 2014) | 284 | 132 | 802 | 351 | ||||||||||||||||||||||||||
Other (net of income tax of $0 in 2015 and $56 and $72 in 2014) | (105 | ) | (133 | ) | (75 | ) | (127 | ) | ||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | 6,858 | (443 | ) | (20,787 | ) | 122 | 2,233 | (16,797 | ) | (18,554 | ) | (16,675 | ) | |||||||||||||||||
Comprehensive income | $ | 31,084 | $ | 19,433 | $ | 22,379 | $ | 45,484 | ||||||||||||||||||||||
Comprehensive income (loss) | $ | 30,409 | $ | (9,642 | ) | $ | 52,788 | $ | 35,841 |
June 30, | December 31, | September 30, | December 31, | |||||||||||
(in thousands, except per share data) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 200,969 | $ | 56,772 | $ | 125,245 | $ | 56,772 | ||||||
Accounts and notes receivable, net of allowances of $13,220 and $13,306 | 580,739 | 626,192 | ||||||||||||
Accounts and notes receivable, net of allowances of $12,719 and $13,306 | 640,653 | 626,192 | ||||||||||||
Merchandise inventories | 903,501 | 872,457 | 896,722 | 872,457 | ||||||||||
Other current assets | 275,481 | 315,285 | 265,758 | 315,285 | ||||||||||
Total current assets | 1,960,690 | 1,870,706 | 1,928,378 | 1,870,706 | ||||||||||
Property and equipment, net of accumulated depreciation of $173,278 and $163,377 | 219,372 | 232,979 | ||||||||||||
Goodwill, net | 421,760 | 423,276 | ||||||||||||
Property and equipment, net of accumulated depreciation of $186,580 and $163,377 | 214,561 | 232,979 | ||||||||||||
Goodwill | 420,772 | 423,276 | ||||||||||||
Intangible assets, net | 100,904 | 108,593 | 98,084 | 108,593 | ||||||||||
Other assets, net | 92,180 | 99,852 | 89,865 | 99,852 | ||||||||||
Total assets | $ | 2,794,906 | $ | 2,735,406 | $ | 2,751,660 | $ | 2,735,406 | ||||||
Liabilities and equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 753,495 | $ | 608,846 | $ | 690,134 | $ | 608,846 | ||||||
Accrued payroll and related liabilities | 34,797 | 31,507 | 38,834 | 31,507 | ||||||||||
Deferred income taxes | 41,378 | 37,979 | 41,763 | 37,979 | ||||||||||
Other accrued liabilities | 288,432 | 326,223 | 296,898 | 326,223 | ||||||||||
Total current liabilities | 1,118,102 | 1,004,555 | 1,067,629 | 1,004,555 | ||||||||||
Long-term debt, excluding current portion | 574,623 | 608,551 | 574,033 | 608,551 | ||||||||||
Deferred income taxes | 62,282 | 63,901 | 61,037 | 63,901 | ||||||||||
Other liabilities | 62,772 | 67,561 | 62,860 | 67,561 | ||||||||||
Total liabilities | 1,817,779 | 1,744,568 | 1,765,559 | 1,744,568 | ||||||||||
Commitments and contingencies | ||||||||||||||
Equity | ||||||||||||||
Owens & Minor, Inc. shareholders’ equity: | ||||||||||||||
Common stock, par value $2 per share; authorized - 200,000 shares; issued and outstanding - 63,018 shares and 63,070 shares | 126,036 | 126,140 | ||||||||||||
Common stock, par value $2 per share; authorized - 200,000 shares; issued and outstanding - 62,932 shares and 63,070 shares | 125,863 | 126,140 | ||||||||||||
Paid-in capital | 205,727 | 202,934 | 208,216 | 202,934 | ||||||||||
Retained earnings | 690,152 | 685,765 | 694,577 | 685,765 | ||||||||||
Accumulated other comprehensive income | (44,788 | ) | (24,001 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (42,555 | ) | (24,001 | ) | ||||||||||
Total equity | 977,127 | 990,838 | 986,101 | 990,838 | ||||||||||
Total liabilities and equity | $ | 2,794,906 | $ | 2,735,406 | $ | 2,751,660 | $ | 2,735,406 |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Operating activities: | ||||||||||||||
Net income | $ | 43,166 | $ | 45,362 | $ | 71,342 | $ | 52,516 | ||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 36,138 | 27,756 | 51,871 | 41,597 | ||||||||||
Loss on early retirement of debt | — | 14,890 | ||||||||||||
Share-based compensation expense | 5,048 | 4,190 | 7,611 | 6,136 | ||||||||||
Provision for losses on accounts and notes receivable | 41 | 334 | (182 | ) | (356 | ) | ||||||||
Deferred income tax (benefit) expense | 2,992 | (5,151 | ) | 3,643 | (7,387 | ) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts and notes receivable | 41,622 | 28,477 | (13,758 | ) | (21,456 | ) | ||||||||
Merchandise inventories | (31,866 | ) | (48,575 | ) | (25,339 | ) | (63,883 | ) | ||||||
Accounts payable | 145,682 | 54,922 | 83,434 | 54,634 | ||||||||||
Net change in other assets and liabilities | 2,771 | (32,765 | ) | 25,890 | 3,131 | |||||||||
Other, net | 1,196 | (1,078 | ) | 1,526 | 1,322 | |||||||||
Cash provided by operating activities | 246,790 | 73,472 | 206,038 | 81,144 | ||||||||||
Investing activities: | ||||||||||||||
Additions to property and equipment | (12,009 | ) | (25,657 | ) | (15,321 | ) | (36,169 | ) | ||||||
Additions to computer software and intangible assets | (10,816 | ) | (13,166 | ) | (16,876 | ) | (17,988 | ) | ||||||
Proceeds from sale of investment | — | 1,937 | — | 1,937 | ||||||||||
Proceeds from sale of property and equipment | 837 | 45 | 119 | 151 | ||||||||||
Cash used for investing activities | (21,988 | ) | (36,841 | ) | (32,078 | ) | (52,069 | ) | ||||||
Financing activities: | ||||||||||||||
Change in bank overdraft | 1,530 | — | ||||||||||||
Long-term debt borrowings | — | 547,693 | ||||||||||||
Repayment of revolving credit facility | (33,700 | ) | — | (33,700 | ) | — | ||||||||
Cash dividends paid | (31,867 | ) | (31,564 | ) | (47,780 | ) | (47,335 | ) | ||||||
Repurchases of common stock | (7,440 | ) | (9,448 | ) | (15,821 | ) | (9,934 | ) | ||||||
Excess tax benefits related to share-based compensation | 457 | 444 | 521 | 514 | ||||||||||
Proceeds from exercise of stock options | — | 1,180 | — | 1,180 | ||||||||||
Purchase of noncontrolling interest | — | (1,500 | ) | — | (1,500 | ) | ||||||||
Debt issuance costs | — | (4,178 | ) | |||||||||||
Other, net | (5,112 | ) | (4,441 | ) | (6,296 | ) | (5,671 | ) | ||||||
Cash used for financing activities | (76,132 | ) | (45,329 | ) | ||||||||||
Cash provided by (used for) financing activities | (103,076 | ) | 480,769 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (4,473 | ) | (1,180 | ) | (2,411 | ) | (1,602 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 144,197 | (9,878 | ) | |||||||||||
Net increase in cash and cash equivalents | 68,473 | 508,242 | ||||||||||||
Cash and cash equivalents at beginning of period | 56,772 | 101,905 | 56,772 | 101,905 | ||||||||||
Cash and cash equivalents at end of period | $ | 200,969 | $ | 92,027 | $ | 125,245 | $ | 610,147 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||||
Income taxes paid, net | $ | 27,542 | $ | 56,837 | $ | 38,709 | $ | 65,140 | ||||||
Interest paid | $ | 13,260 | $ | 7,402 | $ | 20,195 | $ | 8,417 |
Owens & Minor, Inc. Shareholders’ Equity | Owens & Minor, Inc. Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | Common Shares Outstanding | Common Stock ($ 2 par value ) | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total Equity | Common Shares Outstanding | Common Stock ($ 2 par value ) | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||
Balance December 31, 2013 | 63,096 | $ | 126,193 | $ | 196,605 | $ | 691,547 | $ | 9,568 | $ | 1,130 | $ | 1,025,043 | 63,096 | $ | 126,193 | $ | 196,605 | $ | 691,547 | $ | 9,568 | $ | 1,130 | $ | 1,025,043 | ||||||||||||||||||||||||||
Net income | 45,362 | 45,362 | 52,516 | 52,516 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 122 | 122 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.50 per share) | (31,473 | ) | (31,473 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (16,675 | ) | (16,675 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.75 per share) | (47,201 | ) | (47,201 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased and retired | (277 | ) | (555 | ) | (8,893 | ) | (9,448 | ) | (291 | ) | (583 | ) | (9,351 | ) | (9,934 | ) | ||||||||||||||||||||||||||||||||||||
Share-based compensation expense, exercises and other | 247 | 495 | 3,109 | 3,604 | 275 | 549 | 5,051 | 5,600 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | (695 | ) | (1,130 | ) | (1,825 | ) | (695 | ) | (1,130 | ) | (1,825 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2014 | 63,066 | $ | 126,133 | $ | 199,019 | $ | 696,543 | $ | 9,690 | $ | — | $ | 1,031,385 | |||||||||||||||||||||||||||||||||||||||
Balance September 30, 2014 | 63,080 | $ | 126,159 | $ | 200,961 | $ | 687,511 | $ | (7,107 | ) | $ | — | $ | 1,007,524 | ||||||||||||||||||||||||||||||||||||||
Balance December 31, 2014 | 63,070 | $ | 126,140 | $ | 202,934 | $ | 685,765 | $ | (24,001 | ) | $ | — | $ | 990,838 | 63,070 | $ | 126,140 | $ | 202,934 | $ | 685,765 | $ | (24,001 | ) | $ | — | $ | 990,838 | ||||||||||||||||||||||||
Net income | 43,166 | 43,166 | 71,342 | 71,342 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | (20,787 | ) | (20,787 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.505 per share) | (31,779 | ) | (31,779 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (18,554 | ) | (18,554 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.7575 per share) | (47,648 | ) | (47,648 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased and retired | (220 | ) | (440 | ) | (7,000 | ) | (7,440 | ) | (469 | ) | (938 | ) | (14,882 | ) | (15,820 | ) | ||||||||||||||||||||||||||||||||||||
Share-based compensation expense, exercises and other | 168 | 336 | 2,793 | 3,129 | 331 | 661 | 5,282 | 5,943 | ||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2015 | 63,018 | $ | 126,036 | $ | 205,727 | $ | 690,152 | $ | (44,788 | ) | $ | — | $ | 977,127 | ||||||||||||||||||||||||||||||||||||||
Balance September 30, 2015 | 62,932 | $ | 125,863 | $ | 208,216 | $ | 694,577 | $ | (42,555 | ) | $ | — | $ | 986,101 |
Preliminary Fair Value Estimated as of Acquisition Date | Differences Between Prior and Current Period Preliminary Fair Value Estimate | Preliminary Fair Value Currently Estimated as of Acquisition Date | Preliminary Fair Value Estimated as of Acquisition Date | Measurement Period Adjustments Recorded in 2015 | Fair Value as of Acquisition Date | |||||||||||||||||
Assets acquired: | ||||||||||||||||||||||
Current assets | $ | 90,608 | $ | 147 | $ | 90,755 | $ | 90,608 | $ | (229 | ) | $ | 90,379 | |||||||||
Property and equipment | 34,048 | (1,234 | ) | 32,814 | 34,048 | (2,502 | ) | 31,546 | ||||||||||||||
Goodwill | 150,492 | 773 | 151,265 | 150,492 | 121 | 150,613 | ||||||||||||||||
Intangible assets | 77,623 | — | 77,623 | 77,623 | — | 77,623 | ||||||||||||||||
Total assets | 352,771 | (314 | ) | 352,457 | 352,771 | (2,610 | ) | 350,161 | ||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Current liabilities | 64,736 | (314 | ) | 64,422 | 64,736 | (1,187 | ) | 63,549 | ||||||||||||||
Noncurrent liabilities | 26,426 | — | 26,426 | 26,426 | (1,423 | ) | 25,003 | |||||||||||||||
Total liabilities | 91,162 | (314 | ) | 90,848 | 91,162 | (2,610 | ) | 88,552 | ||||||||||||||
Fair value of net assets acquired, net of cash | $ | 261,609 | $ | — | $ | 261,609 | $ | 261,609 | $ | — | $ | 261,609 |
Domestic Segment | International Segment | Total | Domestic Segment | International Segment | Consolidated | |||||||||||||||||
Carrying amount of goodwill, December 31, 2014 | $ | 377,089 | $ | 46,187 | $ | 423,276 | $ | 377,089 | $ | 46,187 | $ | 423,276 | ||||||||||
Currency translation adjustments | — | (2,289 | ) | (2,289 | ) | — | (2,625 | ) | (2,625 | ) | ||||||||||||
Acquisitions (see Note 3) | 773 | — | 773 | 1,109 | (988 | ) | 121 | |||||||||||||||
Carrying amount of goodwill, June 30, 2015 | $ | 377,862 | $ | 43,898 | $ | 421,760 | ||||||||||||||||
Carrying amount of goodwill, September 30, 2015 | $ | 378,198 | $ | 42,574 | $ | 420,772 |
June 30, 2015 | December 31, 2014 | September 30, 2015 | December 31, 2014 | |||||||||||||||||||||||||||
Customer Relationships | Other Intangibles | Customer Relationships | Other Intangibles | Customer Relationships | Other Intangibles | Customer Relationships | Other Intangibles | |||||||||||||||||||||||
Gross intangible assets | $ | 123,222 | $ | 2,695 | $ | 125,448 | $ | 3,405 | $ | 123,013 | $ | 2,574 | $ | 125,448 | $ | 3,405 | ||||||||||||||
Accumulated amortization | (24,905 | ) | (108 | ) | (19,773 | ) | (487 | ) | (27,513 | ) | 10 | (19,773 | ) | (487 | ) | |||||||||||||||
Net intangible assets | $ | 98,317 | $ | 2,587 | $ | 105,675 | $ | 2,918 | $ | 95,500 | $ | 2,584 | $ | 105,675 | $ | 2,918 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Domestic segment | $ | (124 | ) | $ | 2,303 | $ | 2,515 | $ | 3,596 | $ | 1,582 | $ | 4,654 | $ | 4,096 | $ | 8,250 | |||||||||||||
International segment | 4,045 | 1,801 | 8,717 | 3,131 | 3,217 | 4,738 | 12,135 | 7,869 | ||||||||||||||||||||||
Total exit and realignment charges | $ | 3,921 | $ | 4,104 | $ | 11,232 | $ | 6,727 | ||||||||||||||||||||||
Consolidated exit and realignment charges | $ | 4,799 | $ | 9,392 | $ | 16,231 | $ | 16,119 |
Lease Obligations | Severance and Other | Total | Lease Obligations | Severance | Total | |||||||||||||||||
Accrued exit and realignment costs, December 31, 2014 | $ | 3,575 | $ | 2,887 | $ | 6,462 | $ | 3,575 | $ | 2,887 | $ | 6,462 | ||||||||||
Provision for exit and realignment activities | 256 | 142 | 398 | 256 | 142 | 398 | ||||||||||||||||
Cash payments, net of sublease income | (385 | ) | (873 | ) | (1,258 | ) | (385 | ) | (873 | ) | (1,258 | ) | ||||||||||
Accrued exit and realignment costs, March 31, 2015 | 3,446 | 2,156 | 5,602 | 3,446 | 2,156 | 5,602 | ||||||||||||||||
Provision for exit and realignment activities | 572 | 392 | 964 | 572 | 392 | 964 | ||||||||||||||||
Cash payments, net of sublease income | (349 | ) | (1,171 | ) | (1,520 | ) | (349 | ) | (1,171 | ) | (1,520 | ) | ||||||||||
Accrued exit and realignment costs, June 30, 2015 | $ | 3,669 | $ | 1,377 | $ | 5,046 | 3,669 | 1,377 | 5,046 | |||||||||||||
Provision for exit and realignment activities | — | 1,033 | 1,033 | |||||||||||||||||||
Cash payments, net of sublease income | (446 | ) | (285 | ) | (731 | ) | ||||||||||||||||
Accrued exit and realignment costs, September 30, 2015 | $ | 3,223 | $ | 2,125 | $ | 5,348 | ||||||||||||||||
Accrued exit and realignment costs, December 31, 2013 | $ | 2,434 | $ | 475 | $ | 2,909 | $ | 2,434 | $ | 475 | $ | 2,909 | ||||||||||
Provision for exit and realignment activities | 532 | 807 | 1,339 | 532 | 807 | 1,339 | ||||||||||||||||
Cash payments, net of sublease income | (411 | ) | (327 | ) | (738 | ) | (411 | ) | (327 | ) | (738 | ) | ||||||||||
Accrued exit and realignment costs, March 31, 2014 | 2,555 | 955 | 3,510 | 2,555 | 955 | 3,510 | ||||||||||||||||
Provision for exit and realignment activities | 6 | 2,236 | 2,242 | 6 | 2,236 | 2,242 | ||||||||||||||||
Cash payments, net of sublease income | (383 | ) | (1,095 | ) | (1,478 | ) | (383 | ) | (1,095 | ) | (1,478 | ) | ||||||||||
Accrued exit and realignment costs, June 30, 2014 | $ | 2,178 | $ | 2,096 | $ | 4,274 | 2,178 | 2,096 | 4,274 | |||||||||||||
Provision for exit and realignment activities | 912 | 2,215 | 3,127 | |||||||||||||||||||
Cash payments, net of sublease income | (867 | ) | (460 | ) | (1,327 | ) | ||||||||||||||||
Accrued exit and realignment costs, September 30, 2014 | $ | 2,223 | $ | 3,851 | $ | 6,074 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Service cost | $ | 32 | $ | 40 | $ | 65 | $ | 75 | $ | 32 | $ | 60 | $ | 97 | $ | 136 | ||||||||||||||
Interest cost | 464 | 482 | 929 | 965 | 464 | 482 | 1,393 | 1,446 | ||||||||||||||||||||||
Recognized net actuarial loss | 401 | 202 | 802 | 406 | 401 | 204 | 1,203 | 612 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 897 | $ | 724 | $ | 1,796 | $ | 1,446 | $ | 897 | $ | 746 | $ | 2,693 | $ | 2,194 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(in thousands, except per share data) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||
Net income | $ | 24,226 | $ | 19,876 | $ | 43,166 | $ | 45,362 | $ | 28,176 | $ | 7,155 | $ | 71,342 | $ | 52,516 | ||||||||||||||
Less: income allocated to unvested restricted shares | (195 | ) | (159 | ) | (359 | ) | (345 | ) | (262 | ) | (150 | ) | (620 | ) | (453 | ) | ||||||||||||||
Net income attributable to common shareholders - basic | 24,031 | 19,717 | 42,807 | 45,017 | 27,914 | 7,005 | 70,722 | 52,063 | ||||||||||||||||||||||
Add: undistributed income attributable to unvested restricted shares - basic | 42 | 19 | 63 | 68 | 67 | — | 129 | 26 | ||||||||||||||||||||||
Less: undistributed income attributable to unvested restricted shares - diluted | (42 | ) | (19 | ) | (63 | ) | (68 | ) | (67 | ) | — | (129 | ) | (26 | ) | |||||||||||||||
Net income attributable to common shareholders - diluted | $ | 24,031 | $ | 19,717 | $ | 42,807 | $ | 45,017 | $ | 27,914 | $ | 7,005 | $ | 70,722 | $ | 52,063 | ||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||
Weighted average shares outstanding - basic | 62,226 | 62,311 | 62,281 | 62,271 | 61,998 | 62,175 | 62,204 | 62,238 | ||||||||||||||||||||||
Dilutive shares - stock options | — | 5 | 1 | 9 | — | 4 | 1 | 7 | ||||||||||||||||||||||
Weighted average shares outstanding - diluted | 62,226 | 62,316 | 62,282 | 62,280 | 61,998 | 62,179 | 62,205 | 62,245 | ||||||||||||||||||||||
Net income per share attributable to common shareholders: | ||||||||||||||||||||||||||||||
Basic | $ | 0.39 | $ | 0.32 | $ | 0.69 | $ | 0.72 | $ | 0.45 | $ | 0.11 | $ | 1.14 | $ | 0.84 | ||||||||||||||
Diluted | $ | 0.39 | $ | 0.32 | $ | 0.69 | $ | 0.72 | $ | 0.45 | $ | 0.11 | $ | 1.14 | $ | 0.84 |
Defined Benefit Pension Plans | Currency Translation Adjustments | Other | Total | Defined Benefit Pension Plans | Currency Translation Adjustments | Other | Total | ||||||||||||||||||||||||
Accumulated other comprehensive income (loss), March 31, 2015 | $ | (10,065 | ) | $ | (41,588 | ) | $ | 7 | $ | (51,646 | ) | ||||||||||||||||||||
Accumulated other comprehensive income (loss), June 30, 2015 | $ | (9,805 | ) | $ | (34,982 | ) | $ | (1 | ) | $ | (44,788 | ) | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | — | 6,606 | — | 6,606 | — | 2,054 | — | 2,054 | |||||||||||||||||||||||
Income tax | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | 6,606 | — | 6,606 | — | 2,054 | — | 2,054 | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 401 | — | (8 | ) | 393 | 401 | — | (105 | ) | 296 | |||||||||||||||||||||
Income tax | (141 | ) | — | — | (141 | ) | (117 | ) | — | — | (117 | ) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 260 | — | — | (8 | ) | 252 | 284 | — | (105 | ) | 179 | ||||||||||||||||||||
Other comprehensive income (loss) | 260 | 6,606 | (8 | ) | 6,858 | 284 | 2,054 | (105 | ) | 2,233 | |||||||||||||||||||||
Accumulated other comprehensive income (loss), June 30, 2015 | $ | (9,805 | ) | $ | (34,982 | ) | $ | (1 | ) | $ | (44,788 | ) | |||||||||||||||||||
Accumulated other comprehensive income (loss), September 30, 2015 | $ | (9,521 | ) | $ | (32,928 | ) | $ | (106 | ) | $ | (42,555 | ) | |||||||||||||||||||
Accumulated other comprehensive income (loss), March 31, 2014 | $ | (6,372 | ) | $ | 16,359 | $ | 146 | $ | 10,133 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss), June 30, 2014 | $ | (6,260 | ) | $ | 15,789 | $ | 161 | $ | 9,690 | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | — | (570 | ) | 29 | (541 | ) | — | (16,796 | ) | (44 | ) | (16,840 | ) | ||||||||||||||||||
Income tax | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | (570 | ) | 29 | (541 | ) | — | (16,796 | ) | (44 | ) | (16,840 | ) | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 202 | — | (22 | ) | 180 | 189 | — | (145 | ) | 44 | |||||||||||||||||||||
Income tax | (90 | ) | — | 8 | (82 | ) | (57 | ) | — | 56 | (1 | ) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 112 | — | (14 | ) | 98 | 132 | — | (89 | ) | 43 | |||||||||||||||||||||
Other comprehensive income (loss) | 112 | (570 | ) | 15 | (443 | ) | 132 | (16,796 | ) | (133 | ) | (16,797 | ) | ||||||||||||||||||
Accumulated other comprehensive income (loss), June 30, 2014 | $ | (6,260 | ) | $ | 15,789 | $ | 161 | $ | 9,690 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss), September 30, 2014 | $ | (6,128 | ) | $ | (1,007 | ) | $ | 28 | $ | (7,107 | ) |
Defined Benefit Pension Plans | Currency Translation Adjustments | Other | Total | Defined Benefit Pension Plans | Currency Translation Adjustments | Other | Total | |||||||||||||||||||||||
Accumulated other comprehensive income (loss), December 31, 2014 | $ | (10,323 | ) | $ | (13,647 | ) | $ | (31 | ) | $ | (24,001 | ) | $ | (10,323 | ) | $ | (13,647 | ) | $ | (31 | ) | $ | (24,001 | ) | ||||||
Other comprehensive income (loss) before reclassifications | — | (21,335 | ) | — | (21,335 | ) | — | (19,281 | ) | — | (19,281 | ) | ||||||||||||||||||
Income tax | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | (21,335 | ) | — | (21,335 | ) | — | (19,281 | ) | — | (19,281 | ) | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 803 | — | 30 | 833 | 1,204 | — | (75 | ) | 1,129 | |||||||||||||||||||||
Income tax | (285 | ) | — | — | (285 | ) | (402 | ) | — | — | (402 | ) | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 518 | — | 30 | 548 | 802 | — | (75 | ) | 727 | |||||||||||||||||||||
Other comprehensive income (loss) | 518 | (21,335 | ) | 30 | (20,787 | ) | 802 | (19,281 | ) | (75 | ) | (18,554 | ) | |||||||||||||||||
Accumulated other comprehensive income (loss), June 30, 2015 | $ | (9,805 | ) | $ | (34,982 | ) | $ | (1 | ) | $ | (44,788 | ) | ||||||||||||||||||
Accumulated other comprehensive income (loss), September 30, 2015 | $ | (9,521 | ) | $ | (32,928 | ) | $ | (106 | ) | $ | (42,555 | ) | ||||||||||||||||||
Accumulated other comprehensive income (loss), December 31, 2013 | $ | (6,479 | ) | $ | 15,892 | $ | 155 | $ | 9,568 | $ | (6,479 | ) | $ | 15,892 | $ | 155 | $ | 9,568 | ||||||||||||
Other comprehensive income (loss) before reclassifications | — | (103 | ) | 31 | (72 | ) | — | (16,899 | ) | (14 | ) | (16,913 | ) | |||||||||||||||||
Income tax | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | (103 | ) | 31 | (72 | ) | — | (16,899 | ) | (14 | ) | (16,913 | ) | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 405 | — | (41 | ) | 364 | 596 | — | (185 | ) | 411 | ||||||||||||||||||||
Income tax | (186 | ) | — | 16 | (170 | ) | (245 | ) | — | 72 | (173 | ) | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 219 | — | (25 | ) | 194 | 351 | — | (113 | ) | 238 | ||||||||||||||||||||
Other comprehensive income (loss) | 219 | (103 | ) | 6 | 122 | 351 | (16,899 | ) | (127 | ) | (16,675 | ) | ||||||||||||||||||
Accumulated other comprehensive income (loss), June 30, 2014 | $ | (6,260 | ) | $ | 15,789 | $ | 161 | $ | 9,690 | |||||||||||||||||||||
Accumulated other comprehensive income (loss), September 30, 2014 | $ | (6,128 | ) | $ | (1,007 | ) | $ | 28 | $ | (7,107 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||||||
Domestic | $ | 2,317,661 | $ | 2,187,535 | $ | 4,603,296 | $ | 4,336,451 | $ | 2,368,008 | $ | 2,262,081 | $ | 6,971,304 | $ | 6,598,531 | ||||||||||||||
International | 104,506 | 118,323 | 210,067 | 225,788 | 103,661 | 124,045 | 313,728 | 349,834 | ||||||||||||||||||||||
Consolidated net revenue | $ | 2,422,167 | $ | 2,305,858 | $ | 4,813,363 | $ | 4,562,239 | $ | 2,471,669 | $ | 2,386,126 | $ | 7,285,032 | $ | 6,948,365 | ||||||||||||||
Operating earnings (loss): | ||||||||||||||||||||||||||||||
Domestic | $ | 52,390 | $ | 48,317 | $ | 102,901 | $ | 101,053 | $ | 58,002 | $ | 50,797 | $ | 160,904 | $ | 151,849 | ||||||||||||||
International | 1,177 | (3,623 | ) | 1,557 | (6,811 | ) | 1,704 | (1,463 | ) | 3,261 | (8,273 | ) | ||||||||||||||||||
Acquisition-related and exit and realignment charges (1) | (5,707 | ) | (7,593 | ) | (15,623 | ) | (10,855 | ) | (6,134 | ) | (13,957 | ) | (21,757 | ) | (24,813 | ) | ||||||||||||||
Consolidated operating earnings | $ | 47,860 | $ | 37,101 | $ | 88,835 | $ | 83,387 | $ | 53,572 | $ | 35,377 | $ | 142,408 | $ | 118,763 | ||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||||||||
Domestic | $ | 10,504 | $ | 8,812 | $ | 21,242 | $ | 17,787 | $ | 10,197 | $ | 8,986 | $ | 31,439 | $ | 26,772 | ||||||||||||||
International | 5,277 | 5,080 | 10,708 | 9,969 | 5,250 | 4,855 | 15,958 | 14,825 | ||||||||||||||||||||||
Consolidated depreciation and amortization | $ | 15,781 | $ | 13,892 | $ | 31,950 | $ | 27,756 | $ | 15,447 | $ | 13,841 | $ | 47,397 | $ | 41,597 | ||||||||||||||
Capital expenditures: | ||||||||||||||||||||||||||||||
Domestic | $ | 3,384 | $ | 18,858 | $ | 12,035 | $ | 29,033 | $ | 2,137 | $ | 11,077 | $ | 14,172 | $ | 40,110 | ||||||||||||||
International | 7,875 | 5,737 | 10,790 | 9,790 | 7,235 | 4,257 | 18,025 | 14,047 | ||||||||||||||||||||||
Consolidated capital expenditures | $ | 11,259 | $ | 24,595 | $ | 22,825 | $ | 38,823 | $ | 9,372 | $ | 15,334 | $ | 32,197 | $ | 54,157 |
June 30, 2015 | December 31, 2014 | September 30, 2015 | December 31, 2014 | |||||||||||
Total assets: | ||||||||||||||
Domestic | $ | 2,130,996 | $ | 2,139,972 | $ | 2,135,572 | $ | 2,139,972 | ||||||
International | 462,941 | 538,662 | 490,843 | 538,662 | ||||||||||
Segment assets | 2,593,937 | 2,678,634 | 2,626,415 | 2,678,634 | ||||||||||
Cash and cash equivalents | 200,969 | 56,772 | 125,245 | 56,772 | ||||||||||
Consolidated total assets | $ | 2,794,906 | $ | 2,735,406 | $ | 2,751,660 | $ | 2,735,406 |
Three Months Ended June 30, 2015 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 2,279,725 | $ | 178,844 | $ | (36,402 | ) | $ | 2,422,167 | ||||||||
Cost of goods sold | — | 2,064,515 | 95,570 | (36,255 | ) | 2,123,830 | |||||||||||||
Gross margin | — | 215,210 | 83,274 | (147 | ) | 298,337 | |||||||||||||
Selling, general and administrative expenses | 626 | 160,348 | 70,524 | — | 231,498 | ||||||||||||||
Acquisition-related and exit and realignment charges | — | 256 | 5,451 | — | 5,707 | ||||||||||||||
Depreciation and amortization | — | 8,910 | 6,550 | — | 15,460 | ||||||||||||||
Other operating income, net | — | (1,354 | ) | (834 | ) | — | (2,188 | ) | |||||||||||
Operating earnings (loss) | (626 | ) | 47,050 | 1,583 | (147 | ) | 47,860 | ||||||||||||
Interest expense (income), net | 6,938 | (233 | ) | (25 | ) | — | 6,680 | ||||||||||||
Income (loss) before income taxes | (7,564 | ) | 47,283 | 1,608 | (147 | ) | 41,180 | ||||||||||||
Income tax (benefit) provision | — | 16,973 | (19 | ) | — | 16,954 | |||||||||||||
Equity in earnings of subsidiaries | 31,790 | — | — | (31,790 | ) | — | |||||||||||||
Net income (loss) | 24,226 | 30,310 | 1,627 | (31,937 | ) | 24,226 | |||||||||||||
Other comprehensive income (loss) | 6,858 | (21,839 | ) | 28,696 | (6,857 | ) | 6,858 | ||||||||||||
Comprehensive income (loss) | $ | 31,084 | $ | 8,471 | $ | 30,323 | $ | (38,794 | ) | $ | 31,084 |
Three Months Ended September 30, 2015 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 2,321,301 | $ | 194,659 | $ | (44,291 | ) | $ | 2,471,669 | ||||||||
Cost of goods sold | — | 2,106,623 | 102,923 | (44,231 | ) | 2,165,315 | |||||||||||||
Gross margin | — | 214,678 | 91,736 | (60 | ) | 306,354 | |||||||||||||
Selling, general and administrative expenses | 27 | 162,697 | 69,123 | — | 231,847 | ||||||||||||||
Acquisition-related and exit and realignment charges | — | 1,980 | 4,154 | — | 6,134 | ||||||||||||||
Depreciation and amortization | — | 8,639 | 6,473 | — | 15,112 | ||||||||||||||
Other operating income, net | — | (28 | ) | (283 | ) | — | (311 | ) | |||||||||||
Operating earnings (loss) | (27 | ) | 41,390 | 12,269 | (60 | ) | 53,572 | ||||||||||||
Interest expense (income), net | 7,257 | (1,235 | ) | 722 | — | 6,744 | |||||||||||||
Income (loss) before income taxes | (7,284 | ) | 42,625 | 11,547 | (60 | ) | 46,828 | ||||||||||||
Income tax (benefit) provision | — | 10,927 | 7,725 | — | 18,652 | ||||||||||||||
Equity in earnings of subsidiaries | 35,460 | — | — | (35,460 | ) | — | |||||||||||||
Net income (loss) | 28,176 | 31,698 | 3,822 | (35,520 | ) | 28,176 | |||||||||||||
Other comprehensive income (loss) | 2,233 | 179 | 2,054 | (2,233 | ) | 2,233 | |||||||||||||
Comprehensive income (loss) | $ | 30,409 | $ | 31,877 | $ | 5,876 | $ | (37,753 | ) | $ | 30,409 |
Three Months Ended June 30, 2014 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 2,187,130 | $ | 137,683 | $ | (18,955 | ) | $ | 2,305,858 | ||||||||
Cost of goods sold | — | 1,978,815 | 63,299 | (18,528 | ) | 2,023,586 | |||||||||||||
Gross margin | — | 208,315 | 74,384 | (427 | ) | 282,272 | |||||||||||||
Selling, general and administrative expenses | 61 | 152,122 | 73,655 | — | 225,838 | ||||||||||||||
Acquisition-related and exit and realignment charges | — | 3,886 | 3,707 | — | 7,593 | ||||||||||||||
Depreciation and amortization | 2 | 8,790 | 5,100 | — | 13,892 | ||||||||||||||
Other operating income, net | — | (814 | ) | (1,338 | ) | — | (2,152 | ) | |||||||||||
Operating earnings (loss) | (63 | ) | 44,331 | (6,740 | ) | (427 | ) | 37,101 | |||||||||||
Interest expense (income), net | 2,924 | 791 | (373 | ) | — | 3,342 | |||||||||||||
Income (loss) before income taxes | (2,987 | ) | 43,540 | (6,367 | ) | (427 | ) | 33,759 | |||||||||||
Income tax (benefit) provision | (1,200 | ) | 17,808 | (2,725 | ) | — | 13,883 | ||||||||||||
Equity in earnings of subsidiaries | 21,663 | — | — | (21,663 | ) | — | |||||||||||||
Net income (loss) | 19,876 | 25,732 | (3,642 | ) | (22,090 | ) | 19,876 | ||||||||||||
Other comprehensive income (loss) | (443 | ) | 111 | (570 | ) | 459 | (443 | ) | |||||||||||
Comprehensive income (loss) | $ | 19,433 | $ | 25,843 | $ | (4,212 | ) | $ | (21,631 | ) | $ | 19,433 |
Six Months Ended June 30, 2015 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 4,529,430 | $ | 360,204 | $ | (76,271 | ) | $ | 4,813,363 | ||||||||
Cost of goods sold | — | 4,098,327 | 195,608 | (76,510 | ) | 4,217,425 | |||||||||||||
Gross margin | — | 431,103 | 164,596 | 239 | 595,938 | ||||||||||||||
Selling, general and administrative expenses | 665 | 320,925 | 143,733 | — | 465,323 | ||||||||||||||
Acquisition-related and exit and realignment charges | — | 3,833 | 11,790 | — | 15,623 | ||||||||||||||
Depreciation and amortization | — | 18,014 | 13,315 | — | 31,329 | ||||||||||||||
Other operating income, net | — | (2,331 | ) | (2,841 | ) | — | (5,172 | ) | |||||||||||
Operating earnings (loss) | (665 | ) | 90,662 | (1,401 | ) | 239 | 88,835 | ||||||||||||
Interest expense (income), net | 12,885 | 581 | 94 | — | 13,560 | ||||||||||||||
Income (loss) before income taxes | (13,550 | ) | 90,081 | (1,495 | ) | 239 | 75,275 | ||||||||||||
Income tax (benefit) provision | (773 | ) | 31,759 | 1,123 | — | 32,109 | |||||||||||||
Equity in earnings of subsidiaries | 55,943 | — | — | (55,943 | ) | — | |||||||||||||
Net income (loss) | 43,166 | 58,322 | (2,618 | ) | (55,704 | ) | 43,166 | ||||||||||||
Other comprehensive income (loss) | (20,787 | ) | (21,335 | ) | 548 | 20,787 | (20,787 | ) | |||||||||||
Comprehensive income (loss) | $ | 22,379 | $ | 36,987 | $ | (2,070 | ) | $ | (34,917 | ) | $ | 22,379 |
Six Months Ended June 30, 2014 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||
Statements of Income | ||||||||||||||||||||||||||||||||||||||
Net revenue | $ | — | $ | 4,335,495 | $ | 257,558 | $ | (30,814 | ) | $ | 4,562,239 | $ | — | $ | 2,261,448 | $ | 141,086 | $ | (16,408 | ) | $ | 2,386,126 | ||||||||||||||||
Cost of goods sold | — | 3,918,280 | 110,897 | (30,406 | ) | 3,998,771 | — | 2,047,328 | 62,850 | (16,535 | ) | 2,093,643 | ||||||||||||||||||||||||||
Gross margin | — | 417,215 | 146,661 | (408 | ) | 563,468 | — | 214,120 | 78,236 | 127 | 292,483 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 14 | 306,372 | 145,062 | — | 451,448 | 25 | 155,950 | 75,402 | — | 231,377 | ||||||||||||||||||||||||||||
Acquisition-related and exit and realignment charges | — | 5,180 | 5,675 | — | 10,855 | — | 7,893 | 6,064 | — | 13,957 | ||||||||||||||||||||||||||||
Depreciation and amortization | 1 | 17,741 | 10,014 | — | 27,756 | — | 8,966 | 4,875 | — | 13,841 | ||||||||||||||||||||||||||||
Other operating income, net | — | (7,877 | ) | (2,101 | ) | — | (9,978 | ) | — | (1,167 | ) | (1,235 | ) | 333 | (2,069 | ) | ||||||||||||||||||||||
Operating earnings (loss) | (15 | ) | 95,799 | (11,989 | ) | (408 | ) | 83,387 | (25 | ) | 42,478 | (6,870 | ) | (206 | ) | 35,377 | ||||||||||||||||||||||
Interest expense (income), net | 5,399 | 2,034 | (844 | ) | — | 6,589 | 3,925 | 1,002 | (623 | ) | — | 4,304 | ||||||||||||||||||||||||||
Loss on early retirement of debt | 14,890 | — | — | — | 14,890 | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (5,414 | ) | 93,765 | (11,145 | ) | (408 | ) | 76,798 | (18,840 | ) | 41,476 | (6,247 | ) | (206 | ) | 16,183 | ||||||||||||||||||||||
Income tax (benefit) provision | (2,155 | ) | 37,994 | (4,403 | ) | — | 31,436 | (7,144 | ) | 16,463 | (291 | ) | — | 9,028 | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | 48,621 | — | — | (48,621 | ) | — | 18,851 | — | — | (18,851 | ) | — | ||||||||||||||||||||||||||
Net income (loss) | 45,362 | 55,771 | (6,742 | ) | (49,029 | ) | 45,362 | 7,155 | 25,013 | (5,956 | ) | (19,057 | ) | 7,155 | ||||||||||||||||||||||||
Other comprehensive income (loss) | 122 | 218 | (103 | ) | (115 | ) | 122 | (16,797 | ) | 131 | (16,795 | ) | 16,664 | (16,797 | ) | |||||||||||||||||||||||
Comprehensive income (loss) | $ | 45,484 | $ | 55,989 | $ | (6,845 | ) | $ | (49,144 | ) | $ | 45,484 | $ | (9,642 | ) | $ | 25,144 | $ | (22,751 | ) | $ | (2,393 | ) | $ | (9,642 | ) |
Nine Months Ended September 30, 2015 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 6,850,731 | $ | 554,862 | $ | (120,561 | ) | $ | 7,285,032 | ||||||||
Cost of goods sold | — | 6,204,950 | 298,530 | (120,740 | ) | 6,382,740 | |||||||||||||
Gross margin | — | 645,781 | 256,332 | 179 | 902,292 | ||||||||||||||
Selling, general and administrative expenses | 696 | 483,616 | 212,858 | — | 697,170 | ||||||||||||||
Acquisition-related and exit and realignment charges | — | 5,813 | 15,944 | — | 21,757 | ||||||||||||||
Depreciation and amortization | — | 26,653 | 19,788 | — | 46,441 | ||||||||||||||
Other operating income, net | — | (2,360 | ) | (3,124 | ) | — | (5,484 | ) | |||||||||||
Operating earnings (loss) | (696 | ) | 132,059 | 10,866 | 179 | 142,408 | |||||||||||||
Interest expense (income), net | 20,142 | (654 | ) | 817 | — | 20,305 | |||||||||||||
Income (loss) before income taxes | (20,838 | ) | 132,713 | 10,049 | 179 | 122,103 | |||||||||||||
Income tax (benefit) provision | (773 | ) | 42,683 | 8,851 | — | 50,761 | |||||||||||||
Equity in earnings of subsidiaries | 91,407 | — | — | (91,407 | ) | — | |||||||||||||
Net income (loss) | 71,342 | 90,030 | 1,198 | (91,228 | ) | 71,342 | |||||||||||||
Other comprehensive income (loss) | (18,554 | ) | 726 | (19,280 | ) | 18,554 | (18,554 | ) | |||||||||||
Comprehensive income (loss) | $ | 52,788 | $ | 90,756 | $ | (18,082 | ) | $ | (72,674 | ) | $ | 52,788 |
June 30, 2015 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non- guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Balance Sheets | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 105,427 | $ | 46,639 | $ | 48,903 | $ | — | $ | 200,969 | |||||||||
Accounts and notes receivable, net | — | 485,256 | 105,346 | (9,863 | ) | 580,739 | |||||||||||||
Merchandise inventories | — | 852,396 | 55,272 | (4,167 | ) | 903,501 | |||||||||||||
Other current assets | 299 | 94,214 | 179,717 | 1,251 | 275,481 | ||||||||||||||
Total current assets | 105,726 | 1,478,505 | 389,238 | (12,779 | ) | 1,960,690 | |||||||||||||
Property and equipment, net | — | 108,373 | 110,999 | — | 219,372 | ||||||||||||||
Goodwill, net | — | 247,271 | 174,489 | — | 421,760 | ||||||||||||||
Intangible assets, net | — | 14,768 | 86,136 | — | 100,904 | ||||||||||||||
Due from O&M and subsidiaries | — | 513,448 | — | (513,448 | ) | — | |||||||||||||
Advances to and investment in consolidated subsidiaries | 1,897,461 | — | — | (1,897,461 | ) | — | |||||||||||||
Other assets, net | 4,347 | 62,413 | 25,420 | — | 92,180 | ||||||||||||||
Total assets | $ | 2,007,534 | $ | 2,424,778 | $ | 786,282 | $ | (2,423,688 | ) | $ | 2,794,906 | ||||||||
Liabilities and equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable | $ | — | $ | 713,907 | $ | 48,470 | $ | (8,882 | ) | $ | 753,495 | ||||||||
Accrued payroll and related liabilities | — | 23,485 | 11,312 | — | 34,797 | ||||||||||||||
Deferred income taxes | — | 43,160 | (1,782 | ) | — | 41,378 | |||||||||||||
Other accrued liabilities | 7,004 | 99,024 | 182,404 | — | 288,432 | ||||||||||||||
Total current liabilities | 7,004 | 879,576 | 240,404 | (8,882 | ) | 1,118,102 | |||||||||||||
Long-term debt, excluding current portion | 547,905 | 5,395 | 21,323 | — | 574,623 | ||||||||||||||
Due to O&M and subsidiaries | 475,498 | — | 77,464 | (552,962 | ) | — | |||||||||||||
Intercompany debt | — | 138,890 | — | (138,890 | ) | — | |||||||||||||
Deferred income taxes | — | 32,974 | 29,308 | — | 62,282 | ||||||||||||||
Other liabilities | — | 55,155 | 7,617 | — | 62,772 | ||||||||||||||
Total liabilities | 1,030,407 | 1,111,990 | 376,116 | (700,734 | ) | 1,817,779 | |||||||||||||
Equity | |||||||||||||||||||
Common stock | 126,036 | — | — | — | 126,036 | ||||||||||||||
Paid-in capital | 205,727 | 241,877 | 514,314 | (756,191 | ) | 205,727 | |||||||||||||
Retained earnings (deficit) | 690,152 | 1,080,701 | (69,099 | ) | (1,011,602 | ) | 690,152 | ||||||||||||
Accumulated other comprehensive income (loss) | (44,788 | ) | (9,790 | ) | (35,049 | ) | 44,839 | (44,788 | ) | ||||||||||
Total equity | 977,127 | 1,312,788 | 410,166 | (1,722,954 | ) | 977,127 | |||||||||||||
Total liabilities and equity | $ | 2,007,534 | $ | 2,424,778 | $ | 786,282 | $ | (2,423,688 | ) | $ | 2,794,906 |
Nine Months Ended September 30, 2014 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Income | |||||||||||||||||||
Net revenue | $ | — | $ | 6,596,941 | $ | 398,646 | $ | (47,222 | ) | $ | 6,948,365 | ||||||||
Cost of goods sold | — | 5,965,607 | 173,747 | (46,941 | ) | 6,092,413 | |||||||||||||
Gross margin | — | 631,334 | 224,899 | (281 | ) | 855,952 | |||||||||||||
Selling, general and administrative expenses | 36 | 462,325 | 220,464 | — | 682,825 | ||||||||||||||
Acquisition-related and exit and realignment charges | — | 13,074 | 11,739 | — | 24,813 | ||||||||||||||
Depreciation and amortization | 2 | 26,703 | 14,892 | — | 41,597 | ||||||||||||||
Other operating income, net | — | (9,043 | ) | (3,336 | ) | 333 | (12,046 | ) | |||||||||||
Operating earnings (loss) | (38 | ) | 138,275 | (18,860 | ) | (614 | ) | 118,763 | |||||||||||
Interest expense (income), net | 9,328 | 3,502 | (1,937 | ) | — | 10,893 | |||||||||||||
Loss on early retirement of debt | 14,890 | — | — | — | 14,890 | ||||||||||||||
Income (loss) before income taxes | (24,256 | ) | 134,773 | (16,923 | ) | (614 | ) | 92,980 | |||||||||||
Income tax (benefit) provision | (9,299 | ) | 53,989 | (4,226 | ) | — | 40,464 | ||||||||||||
Equity in earnings of subsidiaries | 67,473 | — | — | (67,473 | ) | — | |||||||||||||
Net income (loss) | 52,516 | 80,784 | (12,697 | ) | (68,087 | ) | 52,516 | ||||||||||||
Other comprehensive income (loss) | (16,675 | ) | 350 | (16,898 | ) | 16,548 | (16,675 | ) | |||||||||||
Comprehensive income (loss) | $ | 35,841 | $ | 81,134 | $ | (29,595 | ) | $ | (51,539 | ) | $ | 35,841 |
September 30, 2015 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non- guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Balance Sheets | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 82,189 | $ | 18,768 | $ | 24,288 | $ | — | $ | 125,245 | |||||||||
Accounts and notes receivable, net | — | 506,406 | 142,912 | (8,665 | ) | 640,653 | |||||||||||||
Merchandise inventories | — | 839,533 | 61,416 | (4,227 | ) | 896,722 | |||||||||||||
Other current assets | 202 | 89,582 | 174,706 | 1,268 | 265,758 | ||||||||||||||
Total current assets | 82,391 | 1,454,289 | 403,322 | (11,624 | ) | 1,928,378 | |||||||||||||
Property and equipment, net | — | 104,905 | 109,656 | — | 214,561 | ||||||||||||||
Goodwill | — | 247,271 | 173,501 | — | 420,772 | ||||||||||||||
Intangible assets, net | — | 14,249 | 83,835 | — | 98,084 | ||||||||||||||
Due from O&M and subsidiaries | — | 509,462 | — | (509,462 | ) | — | |||||||||||||
Advances to and investment in consolidated subsidiaries | 1,965,108 | — | — | (1,965,108 | ) | — | |||||||||||||
Other assets, net | 4,226 | 59,846 | 25,793 | — | 89,865 | ||||||||||||||
Total assets | $ | 2,051,725 | $ | 2,390,022 | $ | 796,107 | $ | (2,486,194 | ) | $ | 2,751,660 | ||||||||
Liabilities and equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable | $ | — | $ | 644,126 | $ | 53,607 | $ | (7,599 | ) | $ | 690,134 | ||||||||
Accrued payroll and related liabilities | — | 26,541 | 12,293 | — | 38,834 | ||||||||||||||
Deferred income taxes | — | 44,135 | (2,372 | ) | — | 41,763 | |||||||||||||
Other accrued liabilities | 7,203 | 98,719 | 190,976 | — | 296,898 | ||||||||||||||
Total current liabilities | 7,203 | 813,521 | 254,504 | (7,599 | ) | 1,067,629 | |||||||||||||
Long-term debt, excluding current portion | 547,975 | 5,007 | 21,051 | — | 574,033 | ||||||||||||||
Due to O&M and subsidiaries | 510,446 | — | 69,535 | (579,981 | ) | — | |||||||||||||
Intercompany debt | — | 138,890 | — | (138,890 | ) | — | |||||||||||||
Deferred income taxes | — | 32,580 | 28,457 | — | 61,037 | ||||||||||||||
Other liabilities | — | 55,353 | 7,507 | — | 62,860 | ||||||||||||||
Total liabilities | 1,065,624 | 1,045,351 | 381,054 | (726,470 | ) | 1,765,559 | |||||||||||||
Equity | |||||||||||||||||||
Common stock | 125,863 | — | — | — | 125,863 | ||||||||||||||
Paid-in capital | 208,216 | 241,877 | 513,300 | (755,177 | ) | 208,216 | |||||||||||||
Retained earnings (deficit) | 694,577 | 1,112,404 | (65,278 | ) | (1,047,126 | ) | 694,577 | ||||||||||||
Accumulated other comprehensive income (loss) | (42,555 | ) | (9,610 | ) | (32,969 | ) | 42,579 | (42,555 | ) | ||||||||||
Total equity | 986,101 | 1,344,671 | 415,053 | (1,759,724 | ) | 986,101 | |||||||||||||
Total liabilities and equity | $ | 2,051,725 | $ | 2,390,022 | $ | 796,107 | $ | (2,486,194 | ) | $ | 2,751,660 |
December 31, 2014 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Balance Sheets | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 22,013 | $ | 3,912 | $ | 30,847 | $ | — | $ | 56,772 | |||||||||
Accounts and notes receivable, net | — | 519,951 | 144,463 | (38,222 | ) | 626,192 | |||||||||||||
Merchandise inventories | — | 816,915 | 60,061 | (4,519 | ) | 872,457 | |||||||||||||
Other current assets | (24,748 | ) | 90,733 | 224,220 | 25,080 | 315,285 | |||||||||||||
Total current assets | (2,735 | ) | 1,431,511 | 459,591 | (17,661 | ) | 1,870,706 | ||||||||||||
Property and equipment, net | — | 110,076 | 122,903 | — | 232,979 | ||||||||||||||
Goodwill, net | — | 247,271 | 176,005 | — | 423,276 | ||||||||||||||
Intangible assets, net | — | 15,805 | 92,788 | — | 108,593 | ||||||||||||||
Due from O&M and subsidiaries | — | 357,304 | — | (357,304 | ) | — | |||||||||||||
Advances to and investments in consolidated subsidiaries | 1,893,767 | — | — | (1,893,767 | ) | — | |||||||||||||
Other assets, net | 4,637 | 66,836 | 28,379 | — | 99,852 | ||||||||||||||
Total assets | $ | 1,895,669 | $ | 2,228,803 | $ | 879,666 | $ | (2,268,732 | ) | $ | 2,735,406 | ||||||||
Liabilities and equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable | $ | — | $ | 567,285 | $ | 54,898 | $ | (13,337 | ) | $ | 608,846 | ||||||||
Accrued payroll and related liabilities | — | 16,434 | 15,073 | — | 31,507 | ||||||||||||||
Deferred income taxes | — | 39,667 | (1,688 | ) | — | 37,979 | |||||||||||||
Other current liabilities | 6,441 | 83,698 | 236,084 | — | 326,223 | ||||||||||||||
Total current liabilities | 6,441 | 707,084 | 304,367 | (13,337 | ) | 1,004,555 | |||||||||||||
Long-term debt, excluding current portion | 547,763 | 39,915 | 20,873 | — | 608,551 | ||||||||||||||
Due to O&M and subsidiaries | 350,627 | — | 77,788 | (428,415 | ) | — | |||||||||||||
Intercompany debt | — | 138,890 | — | (138,890 | ) | — | |||||||||||||
Deferred income taxes | — | 33,162 | 30,739 | — | 63,901 | ||||||||||||||
Other liabilities | — | 55,794 | 11,767 | — | 67,561 | ||||||||||||||
Total liabilities | 904,831 | 974,845 | 445,534 | (580,642 | ) | 1,744,568 | |||||||||||||
Equity | — | ||||||||||||||||||
Common stock | 126,140 | — | — | — | 126,140 | ||||||||||||||
Paid-in capital | 202,934 | 241,877 | 514,314 | (756,191 | ) | 202,934 | |||||||||||||
Retained earnings (deficit) | 685,765 | 1,022,379 | (66,479 | ) | (955,900 | ) | 685,765 | ||||||||||||
Accumulated other comprehensive income (loss) | (24,001 | ) | (10,298 | ) | (13,703 | ) | 24,001 | (24,001 | ) | ||||||||||
Total equity | 990,838 | 1,253,958 | 434,132 | (1,688,090 | ) | 990,838 | |||||||||||||
Total liabilities and equity | $ | 1,895,669 | $ | 2,228,803 | $ | 879,666 | $ | (2,268,732 | ) | $ | 2,735,406 |
Six Months Ended June 30, 2015 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Cash Flows | |||||||||||||||||||
Operating activities: | |||||||||||||||||||
Net income (loss) | $ | 43,166 | $ | 58,322 | $ | (2,618 | ) | $ | (55,704 | ) | $ | 43,166 | |||||||
Adjustments to reconcile net income to cash provided by (used for) operating activities: | |||||||||||||||||||
Equity in earnings of subsidiaries | (55,943 | ) | — | — | 55,943 | — | |||||||||||||
Depreciation and amortization | — | 17,741 | 18,397 | — | 36,138 | ||||||||||||||
Share-based compensation expense | — | 5,048 | — | — | 5,048 | ||||||||||||||
Provision for losses on accounts and notes receivable | — | (36 | ) | 77 | — | 41 | |||||||||||||
Deferred income tax expense (benefit) | — | 2,376 | 616 | — | 2,992 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Accounts and notes receivable | — | 35,566 | (180 | ) | 6,236 | 41,622 | |||||||||||||
Merchandise inventories | — | (35,481 | ) | 1,193 | 2,422 | (31,866 | ) | ||||||||||||
Accounts payable | — | 146,622 | 5,798 | (6,738 | ) | 145,682 | |||||||||||||
Net change in other assets and liabilities | (148 | ) | 14,338 | (9,260 | ) | (2,159 | ) | 2,771 | |||||||||||
Other, net | 429 | 726 | 41 | — | 1,196 | ||||||||||||||
Cash provided by (used for) operating activities | (12,496 | ) | 245,222 | 14,064 | — | 246,790 | |||||||||||||
Investing activities: | |||||||||||||||||||
Additions to property and equipment | — | (9,292 | ) | (2,717 | ) | — | (12,009 | ) | |||||||||||
Additions to computer software and intangible assets | — | (2,068 | ) | (8,748 | ) | — | (10,816 | ) | |||||||||||
Proceeds from the sale of property and equipment | — | 60 | 777 | — | 837 | ||||||||||||||
Cash used for investing activities | — | (11,300 | ) | (10,688 | ) | — | (21,988 | ) | |||||||||||
Financing activities: | |||||||||||||||||||
Change in intercompany advances | 135,627 | (155,951 | ) | 20,324 | — | — | |||||||||||||
Repayment of revolving credit facility | — | (33,700 | ) | — | — | (33,700 | ) | ||||||||||||
Change in bank overdraft | — | — | 1,530 | — | 1,530 | ||||||||||||||
Cash dividends paid | (31,867 | ) | — | — | — | (31,867 | ) | ||||||||||||
Repurchases of common stock | (7,440 | ) | — | — | — | (7,440 | ) | ||||||||||||
Excess tax benefits related to share-based compensation | 457 | — | — | — | 457 | ||||||||||||||
Other, net | (867 | ) | (1,544 | ) | (2,701 | ) | — | (5,112 | ) | ||||||||||
Cash provided by (used for) financing activities | 95,910 | (191,195 | ) | 19,153 | — | (76,132 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (4,473 | ) | — | (4,473 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 83,414 | 42,727 | 18,056 | — | 144,197 | ||||||||||||||
Cash and cash equivalents at beginning of period | 22,013 | 3,912 | 30,847 | — | 56,772 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 105,427 | $ | 46,639 | $ | 48,903 | $ | — | $ | 200,969 |
Six months ended June 30, 2014 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2015 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||
Statements of Cash Flows | ||||||||||||||||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 45,362 | $ | 55,771 | $ | (6,742 | ) | $ | (49,029 | ) | $ | 45,362 | $ | 71,342 | $ | 90,030 | $ | 1,198 | $ | (91,228 | ) | $ | 71,342 | |||||||||||||||
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ||||||||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | (48,621 | ) | — | — | 48,621 | — | (91,407 | ) | — | — | 91,407 | — | ||||||||||||||||||||||||||
Depreciation and amortization | 1 | 17,741 | 10,014 | — | 27,756 | — | 26,653 | 25,218 | — | 51,871 | ||||||||||||||||||||||||||||
Share-based compensation expense | — | 4,190 | — | — | 4,190 | — | 7,611 | — | — | 7,611 | ||||||||||||||||||||||||||||
Provision for losses on accounts and notes receivable | — | 146 | 188 | — | 334 | — | (36 | ) | (146 | ) | — | (182 | ) | |||||||||||||||||||||||||
Deferred income tax expense (benefit) | — | (4,117 | ) | (1,034 | ) | — | (5,151 | ) | — | 2,957 | 686 | — | 3,643 | |||||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||||||||
Accounts and notes receivable | — | 28,286 | 428 | (237 | ) | 28,477 | — | 14,416 | (33,212 | ) | 5,038 | (13,758 | ) | |||||||||||||||||||||||||
Merchandise inventories | — | (38,733 | ) | (10,248 | ) | 406 | (48,575 | ) | — | (22,618 | ) | (5,203 | ) | 2,482 | (25,339 | ) | ||||||||||||||||||||||
Accounts payable | — | 54,860 | (177 | ) | 239 | 54,922 | — | 76,841 | 12,046 | (5,453 | ) | 83,434 | ||||||||||||||||||||||||||
Net change in other assets and liabilities | (952 | ) | (15,272 | ) | (16,541 | ) | — | (32,765 | ) | 847 | 26,282 | 1,007 | (2,246 | ) | 25,890 | |||||||||||||||||||||||
Other, net | (776 | ) | (280 | ) | (22 | ) | — | (1,078 | ) | 641 | 740 | 145 | — | 1,526 | ||||||||||||||||||||||||
Cash provided by (used for) operating activities | (4,986 | ) | 102,592 | (24,134 | ) | — | 73,472 | (18,577 | ) | 222,876 | 1,739 | — | 206,038 | |||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||||||||
Proceeds from the sale of investment | 1,937 | 1,937 | ||||||||||||||||||||||||||||||||||||
Additions to property and equipment | — | (16,777 | ) | (8,880 | ) | — | (25,657 | ) | — | (10,728 | ) | (4,593 | ) | — | (15,321 | ) | ||||||||||||||||||||||
Additions to computer software and intangible assets | — | (12,256 | ) | (910 | ) | — | (13,166 | ) | — | (1,670 | ) | (15,206 | ) | — | (16,876 | ) | ||||||||||||||||||||||
Proceeds from the sale of property and equipment | — | 35 | 10 | — | 45 | — | 82 | 37 | — | 119 | ||||||||||||||||||||||||||||
Cash used for investing activities | — | (27,061 | ) | (9,780 | ) | — | (36,841 | ) | — | (12,316 | ) | (19,762 | ) | — | (32,078 | ) | ||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||||||||
Repayment of revolving credit facility | — | (33,700 | ) | — | — | (33,700 | ) | |||||||||||||||||||||||||||||||
Change in intercompany advances | 28,847 | (62,995 | ) | 34,148 | — | — | 143,872 | (160,123 | ) | 16,251 | — | — | ||||||||||||||||||||||||||
Cash dividends paid | (31,564 | ) | — | — | — | (31,564 | ) | (47,780 | ) | — | — | — | (47,780 | ) | ||||||||||||||||||||||||
Repurchases of common stock | (9,448 | ) | — | — | — | (9,448 | ) | (15,821 | ) | — | — | — | (15,821 | ) | ||||||||||||||||||||||||
Excess tax benefits related to share-based compensation | 444 | — | — | — | 444 | 521 | — | — | — | 521 | ||||||||||||||||||||||||||||
Proceeds from exercise of stock options | 1,180 | — | — | — | 1,180 | |||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | — | — | (1,500 | ) | — | (1,500 | ) | |||||||||||||||||||||||||||||||
Other, net | (2,072 | ) | (1,450 | ) | (919 | ) | — | (4,441 | ) | (2,039 | ) | (1,881 | ) | (2,376 | ) | — | (6,296 | ) | ||||||||||||||||||||
Cash provided by (used for) financing activities | (12,613 | ) | (64,445 | ) | 31,729 | — | (45,329 | ) | 78,753 | (195,704 | ) | 13,875 | — | (103,076 | ) | |||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,180 | ) | — | (1,180 | ) | — | — | (2,411 | ) | — | (2,411 | ) | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (17,599 | ) | 11,086 | (3,365 | ) | — | (9,878 | ) | 60,176 | 14,856 | (6,559 | ) | — | 68,473 | ||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 74,391 | 2,012 | 25,502 | — | 101,905 | 22,013 | 3,912 | 30,847 | — | 56,772 | ||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 56,792 | $ | 13,098 | $ | 22,137 | $ | — | $ | 92,027 | $ | 82,189 | $ | 18,768 | $ | 24,288 | $ | — | $ | 125,245 |
Nine Months Ended September 30, 2014 | Owens & Minor, Inc. | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Statements of Cash Flows | |||||||||||||||||||
Operating activities: | |||||||||||||||||||
Net income (loss) | $ | 52,516 | $ | 80,784 | $ | (12,697 | ) | $ | (68,087 | ) | $ | 52,516 | |||||||
Adjustments to reconcile net income to cash provided by (used for) operating activities: | |||||||||||||||||||
Equity in earnings of subsidiaries | (67,473 | ) | — | — | 67,473 | — | |||||||||||||
Depreciation and amortization | 2 | 26,703 | 14,892 | — | 41,597 | ||||||||||||||
Loss on early retirement of debt | 14,890 | — | — | — | 14,890 | ||||||||||||||
Share-based compensation expense | — | 6,136 | — | — | 6,136 | ||||||||||||||
Provision for losses on accounts and notes receivable | — | 146 | (502 | ) | — | (356 | ) | ||||||||||||
Deferred income tax expense (benefit) | — | (3,470 | ) | (3,917 | ) | — | (7,387 | ) | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Accounts and notes receivable | — | (280 | ) | (21,628 | ) | 452 | (21,456 | ) | |||||||||||
Merchandise inventories | — | (53,410 | ) | (10,752 | ) | 279 | (63,883 | ) | |||||||||||
Accounts payable | 6 | 53,409 | 174 | 1,045 | 54,634 | ||||||||||||||
Net change in other assets and liabilities | 2,562 | (1,907 | ) | 3,638 | (1,162 | ) | 3,131 | ||||||||||||
Other, net | (1,162 | ) | (98 | ) | 2,582 | — | 1,322 | ||||||||||||
Cash provided by (used for) operating activities | 1,341 | 108,013 | (28,210 | ) | — | 81,144 | |||||||||||||
Investing activities: | |||||||||||||||||||
Additions to property and equipment | — | (24,662 | ) | (11,507 | ) | — | (36,169 | ) | |||||||||||
Additions to computer software and intangible assets | — | (15,448 | ) | (2,540 | ) | — | (17,988 | ) | |||||||||||
Proceeds from the sale of investment | — | 1,937 | — | — | 1,937 | ||||||||||||||
Proceeds from the sale of property and equipment | — | 137 | 14 | — | 151 | ||||||||||||||
Cash used for investing activities | — | (38,036 | ) | (14,033 | ) | — | (52,069 | ) | |||||||||||
Financing activities: | |||||||||||||||||||
Long-term borrowings | 547,693 | — | — | — | 547,693 | ||||||||||||||
Change in intercompany advances | 2,024 | (36,874 | ) | 34,850 | — | — | |||||||||||||
Cash dividends paid | (47,335 | ) | — | — | — | (47,335 | ) | ||||||||||||
Repurchases of common stock | (9,934 | ) | — | — | — | (9,934 | ) | ||||||||||||
Excess tax benefits related to share-based compensation | 514 | — | — | — | 514 | ||||||||||||||
Proceeds from exercise of stock options | 1,180 | — | — | — | 1,180 | ||||||||||||||
Purchase of noncontrolling interest | — | — | (1,500 | ) | — | (1,500 | ) | ||||||||||||
Debt issuance costs | (4,178 | ) | — | — | — | (4,178 | ) | ||||||||||||
Other, net | (2,137 | ) | (2,191 | ) | (1,343 | ) | — | (5,671 | ) | ||||||||||
Cash provided by (used for) financing activities | 487,827 | (39,065 | ) | 32,007 | — | 480,769 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,602 | ) | — | (1,602 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 489,168 | 30,912 | (11,838 | ) | — | 508,242 | |||||||||||||
Cash and cash equivalents at beginning of period | 74,391 | 2,012 | 25,502 | — | 101,905 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 563,559 | $ | 32,924 | $ | 13,664 | $ | — | $ | 610,147 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(Dollars in thousands except per share data) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Operating earnings, as reported (GAAP) | $ | 47,860 | $ | 37,101 | $ | 88,835 | $ | 83,387 | $ | 53,572 | $ | 35,377 | $ | 142,408 | $ | 118,763 | ||||||||||||||
Acquisition-related and exit and realignment charges | 5,707 | 7,593 | 15,623 | 10,855 | 6,134 | 13,957 | 21,757 | 24,813 | ||||||||||||||||||||||
Operating earnings, adjusted (non-GAAP) (Adjusted Operating Earnings) | $ | 53,567 | $ | 44,694 | $ | 104,458 | $ | 94,242 | $ | 59,706 | $ | 49,334 | $ | 164,165 | $ | 143,576 | ||||||||||||||
Adjusted Operating Earnings as a percent of revenue (non-GAAP) | 2.21 | % | 1.94 | % | 2.17 | % | 2.07 | % | 2.42 | % | 2.07 | % | 2.25 | % | 2.07 | % | ||||||||||||||
Net income, as reported (GAAP) | $ | 24,226 | $ | 19,876 | $ | 43,166 | $ | 45,362 | $ | 28,176 | $ | 7,155 | $ | 71,342 | $ | 52,516 | ||||||||||||||
Acquisition-related and exit and realignment charges, net of tax | 4,869 | 5,095 | 13,461 | 7,317 | 5,379 | 10,297 | 18,841 | 17,614 | ||||||||||||||||||||||
Loss on early retirement of debt, net of tax | — | 9,092 | — | 9,092 | ||||||||||||||||||||||||||
Net income, adjusted (non-GAAP) (Adjusted Net Income) | $ | 29,095 | $ | 24,971 | $ | 56,627 | $ | 52,679 | $ | 33,555 | $ | 26,544 | $ | 90,183 | $ | 79,222 | ||||||||||||||
Net income per diluted common share, as reported (GAAP) | $ | 0.39 | $ | 0.32 | $ | 0.69 | $ | 0.72 | $ | 0.45 | $ | 0.11 | $ | 1.14 | $ | 0.84 | ||||||||||||||
Acquisition-related and exit and realignment charges, per diluted common share | 0.07 | 0.08 | 0.21 | 0.12 | ||||||||||||||||||||||||||
Acquisition-related and exit and realignment charges and loss on early retirement of debt, per diluted common share | 0.09 | 0.31 | 0.30 | 0.42 | ||||||||||||||||||||||||||
Net income per diluted common share, adjusted (non-GAAP)(Adjusted EPS) | $ | 0.46 | $ | 0.40 | $ | 0.90 | $ | 0.84 | $ | 0.54 | $ | 0.42 | $ | 1.44 | $ | 1.26 |
Three Months Ended June 30, | Change | |||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | ||||||||||
Domestic | $ | 2,317,661 | $ | 2,187,535 | $ | 130,126 | 5.9 | % | ||||||
International | 104,506 | 118,323 | (13,817 | ) | (11.7 | )% | ||||||||
Net revenue | $ | 2,422,167 | $ | 2,305,858 | $ | 116,309 | 5.0 | % |
Six Months Ended June 30, | Change | Three Months Ended September 30, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||
Domestic | $ | 4,603,296 | $ | 4,336,451 | $ | 266,845 | 6.2 | % | $ | 2,368,008 | $ | 2,262,081 | $ | 105,927 | 4.7 | % | ||||||||||||
International | 210,067 | 225,788 | (15,721 | ) | (7.0 | )% | 103,661 | 124,045 | (20,384 | ) | (16.4 | )% | ||||||||||||||||
Net revenue | $ | 4,813,363 | $ | 4,562,239 | $ | 251,124 | 5.5 | % | $ | 2,471,669 | $ | 2,386,126 | $ | 85,543 | 3.6 | % |
Nine Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | ||||||||||
Domestic | $ | 6,971,304 | $ | 6,598,531 | $ | 372,773 | 5.6 | % | ||||||
International | 313,728 | 349,834 | (36,106 | ) | (10.3 | )% | ||||||||
Net revenue | $ | 7,285,032 | $ | 6,948,365 | $ | 336,667 | 4.8 | % |
Three Months Ended June 30, | Change | Three Months Ended September 30, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||
Cost of goods sold | $ | 2,123,830 | $ | 2,023,586 | $ | 100,244 | 5.0 | % | $ | 2,165,315 | $ | 2,093,643 | $ | 71,672 | 3.4 | % |
Six Months Ended June 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||
Cost of goods sold | $ | 4,217,425 | $ | 3,998,771 | $ | 218,654 | 5.5 | % | $ | 6,382,740 | $ | 6,092,413 | $ | 290,327 | 4.8 | % |
Three Months Ended June 30, | Change | Three Months Ended September 30, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||
Gross margin | $ | 298,337 | $ | 282,272 | $ | 16,065 | 5.7 | % | $ | 306,354 | $ | 292,483 | $ | 13,871 | 4.7 | % | ||||||||||||
As a % of net revenue | 12.32 | % | 12.24 | % | 12.39 | % | 12.26 | % |
Six Months Ended June 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||
Gross margin | $ | 595,938 | $ | 563,468 | $ | 32,470 | 5.8 | % | $ | 902,292 | $ | 855,952 | $ | 46,340 | 5.4 | % | ||||||||||||
As a % of net revenue | 12.38 | % | 12.35 | % | 12.39 | % | 12.32 | % |
Three Months Ended June 30, | Change | |||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | ||||||||||
SG&A expenses | $ | 231,498 | $ | 225,838 | $ | 5,660 | 2.5 | % | ||||||
As a % of net revenue | 9.56 | % | 9.79 | % | ||||||||||
Depreciation and amortization | $ | 15,460 | $ | 13,892 | $ | 1,568 | 11.3 | % | ||||||
Other operating income, net | $ | (2,188 | ) | $ | (2,152 | ) | $ | (36 | ) | 1.7 | % |
Six Months Ended June 30, | Change | |||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | ||||||||||
SG&A expenses | $ | 465,323 | $ | 451,448 | $ | 13,875 | 3.1 | % | ||||||
As a % of net revenue | 9.67 | % | 9.90 | % | ||||||||||
Depreciation and amortization | $ | 31,329 | $ | 27,756 | $ | 3,573 | 12.9 | % | ||||||
Other operating income, net | $ | (5,172 | ) | $ | (9,978 | ) | $ | 4,806 | (48.2 | )% |
Three Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | ||||||||||
SG&A expenses | $ | 231,847 | $ | 231,377 | $ | 470 | 0.2 | % | ||||||
As a % of net revenue | 9.38 | % | 9.70 | % | ||||||||||
Depreciation and amortization | $ | 15,112 | $ | 13,841 | $ | 1,271 | 9.2 | % | ||||||
Other operating income, net | $ | (311 | ) | $ | (2,069 | ) | $ | 1,758 | (85.0 | )% |
Nine Months Ended September 30, | Change | |||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | ||||||||||
SG&A expenses | $ | 697,170 | $ | 682,825 | $ | 14,345 | 2.1 | % | ||||||
As a % of net revenue | 9.57 | % | 9.83 | % | ||||||||||
Depreciation and amortization | $ | 46,441 | $ | 41,597 | $ | 4,844 | 11.6 | % | ||||||
Other operating income, net | $ | (5,484 | ) | $ | (12,046 | ) | $ | 6,562 | (54.5 | )% |
Three Months Ended June 30, | Change | Three Months Ended September 30, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||
Interest expense, net | $ | 6,680 | $ | 3,342 | $ | 3,338 | 99.9 | % | $ | 6,744 | $ | 4,304 | $ | 2,440 | 56.7 | % | ||||||||||||
Effective interest rate | 4.81 | % | 6.12 | % | 4.62 | % | 5.57 | % |
Six Months Ended June 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||
Interest expense, net | $ | 13,560 | $ | 6,589 | $ | 6,971 | 105.8 | % | $ | 20,305 | $ | 10,893 | $ | 9,412 | 86.4 | % | ||||||||||||
Effective interest rate | 4.74 | % | 6.10 | % | 4.72 | % | 6.00 | % |
Three Months Ended June 30, | Change | Three Months Ended September 30, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||
Income tax provision | $ | 16,954 | $ | 13,883 | $ | 3,071 | 22.1 | % | $ | 18,652 | $ | 9,028 | $ | 9,624 | 106.6 | % | ||||||||||||
Effective tax rate | 41.2 | % | 41.1 | % | 39.8 | % | 55.8 | % |
Six Months Ended June 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||
Income tax provision | $ | 32,109 | $ | 31,436 | $ | 673 | 2.1 | % | $ | 50,761 | $ | 40,464 | $ | 10,297 | 25.4 | % | ||||||||||||
Effective tax rate | 42.7 | % | 40.9 | % | 41.6 | % | 43.5 | % |
June 30, 2015 | December 31, 2014 | Change | September 30, 2015 | December 31, 2014 | Change | |||||||||||||||||||||||
(Dollars in thousands) | $ | % | $ | % | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 200,969 | $ | 56,772 | $ | 144,197 | 254.0 | % | $ | 125,245 | $ | 56,772 | $ | 68,473 | 120.6 | % | ||||||||||||
Accounts and notes receivable, net of allowances | $ | 580,739 | $ | 626,192 | $ | (45,453 | ) | (7.3 | )% | $ | 640,653 | $ | 626,192 | $ | 14,461 | 2.3 | % | |||||||||||
Consolidated DSO (1) | 20.4 | 22.1 | 23.0 | 22.1 | ||||||||||||||||||||||||
Merchandise inventories | $ | 903,501 | $ | 872,457 | $ | 31,044 | 3.6 | % | $ | 896,722 | $ | 872,457 | $ | 24,265 | 2.8 | % | ||||||||||||
Consolidated inventory turnover (2) | 9.6 | 10.1 | 9.5 | 10.1 | ||||||||||||||||||||||||
Accounts payable | $ | 753,495 | $ | 608,846 | $ | 144,649 | 23.8 | % | $ | 690,134 | $ | 608,846 | $ | 81,288 | 13.4 | % |
(Dollars in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Net cash provided by (used for): | ||||||||||||||
Operating activities | $ | 246,790 | $ | 73,472 | $ | 206,038 | $ | 81,144 | ||||||
Investing activities | (21,988 | ) | (36,841 | ) | (32,078 | ) | (52,069 | ) | ||||||
Financing activities | (76,132 | ) | (45,329 | ) | (103,076 | ) | 480,769 | |||||||
Effect of exchange rate changes | (4,473 | ) | (1,180 | ) | (2,411 | ) | (1,602 | ) | ||||||
Increase (decrease) in cash and cash equivalents | $ | 144,197 | $ | (9,878 | ) | |||||||||
Increase in cash and cash equivalents | $ | 68,473 | $ | 508,242 |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of a publicly announced program | Maximum dollar value of shares that may yet be purchased under the program | |||||||||
April 2015 | 10,000 | $ | 34.12 | 10,000 | $ | 89,658,675 | |||||||
May 2015 | 100,000 | $ | 33.74 | 100,000 | $ | 86,282,178 | |||||||
June 2015 | 110,000 | $ | 33.82 | 110,000 | $ | 82,560,246 | |||||||
Total | 220,000 | 220,000 |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of a publicly announced program | Maximum dollar value of shares that may yet be purchased under the program | |||||||||
July 2015 | 75,371 | $ | 33.97 | 75,371 | $ | 80,000,037 | |||||||
August 2015 | 68,850 | $ | 33.25 | 68,850 | $ | 77,710,474 | |||||||
September 2015 | 105,000 | $ | 33.63 | 105,000 | $ | 74,179,356 | |||||||
Total | 249,221 | 249,221 |
Owens & Minor, Inc. | |||
(Registrant) | |||
Date: | /s/ P. Cody Phipps | ||
P. Cody Phipps | |||
President & Chief Executive Officer | |||
Date: | /s/ Richard A. Meier | ||
Richard A. Meier | |||
Executive Vice President & Chief Financial Officer |
(a) | Exhibits |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |