Exhibit 99.1
FOR IMMEDIATE RELEASE
February 10, 2014
Owens & Minor Reports 4th Quarter & Full-Year 2013
Financial Results
RICHMOND, VA….Owens & Minor, Inc. (NYSE-OMI) today reported financial results for the fourth quarter and full-year ended December 31, 2013, including the following highlights:
| | • | | Consolidated annual revenue growth and adjusted EPS met targeted guidance for 2013 |
| | • | | Adjusted consolidated net income was $1.90 per diluted share for 2013 and $0.52 for the quarter |
| | • | | 4Q 2013 adjusted consolidated operating earnings (non-GAAP) improved by more than $11 million |
| | • | | The Domestic segment achieved revenue growth for the second consecutive quarter |
| | • | | The International segment reported positive fourth quarter operating earnings |
For the quarter ended December 31, 2013, the company reported consolidated quarterly revenues of $2.32 billion, an increase of 1.1% when compared to the fourth quarter of 2012. For the fourth quarter of 2013, net income increased 12% to $27.9 million, or $0.44 per diluted share, when compared to the same period last year. For the fourth quarter, adjusted net income (non-GAAP), which excludes after-tax charges of $5.0 million for acquisition-related and exit and realignment activities, was $33.0 million, or $0.52 per diluted share, an increase of 26% when compared to the fourth quarter of 2012.
Consolidated operating earnings for the fourth quarter of 2013, were $50.9 million, improved by $5.9 million, or 13.1%, when compared to operating earnings for the same period last year. Adjusted consolidated operating earnings (non-GAAP) for the fourth quarter of 2013 were $58.0 million, or 2.50% of revenues, increased $11.2 million, in comparison to last year’s fourth quarter results. Since the fourth quarter of 2012, quarterly adjusted operating earnings (non-GAAP) have improved sequentially in each of the four consecutive quarters.
“During 2013, our teams in the U.S., Europe and Asia collaborated to achieve a successful outcome for the year,” said Craig R. Smith, chairman & chief executive officer of Owens & Minor. “Our teammates are creating a faster, more flexible Owens & Minor that is well-equipped to pursue emerging opportunities. Looking ahead, we intend to capitalize on the investments we have made in the company to capture new market opportunities, operate more efficiently and provide our healthcare customers with the best logistics’ solutions in healthcare.”
In completing a year-end review of customer contracts in the International segment, the company has revised the presentation of a portion of its International segment revenues from a gross to a net basis, after determining that this presentation is more representative of the customer arrangement. This change resulted in reductions of gross revenues of approximately $30 million to $35 million per quarter for the fourth quarter of 2012 and each of the first three quarters of 2013. As a result of this revised classification, International segment revenues were $105 million for the fourth quarter of 2013 compared to $96.3 million for the same period last year, and were $384 million for 2013 compared to $137 million for 2012. This change did not affect gross margin, operating earnings or net income, and had an immaterial impact on consolidated revenues reported for 2012 and the first three quarters of 2013. The International segment consists of Movianto, a leading European healthcare logistics provider, which was acquired by Owens & Minor on August 31, 2012.
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2013 Annual Results
For the year ended December 31, 2013, consolidated revenues were $9.07 billion, an increase of $203 million, or 2.3%, when compared to 2012 revenues. The International segment contributed $384 million in revenues for 2013 and $137 million for 2012, which represented four months of revenue contributions. Net income for 2013 improved 1.7% to $111 million, or $1.76 per diluted share, in comparison to net income of $109 million, or $1.72 per diluted share, in the same period last year. For the year, adjusted net income (non-GAAP), which excludes after-tax charges of $8.9 million for acquisition-related and exit and realignment activities, was $120 million, or $1.90 per diluted share, an increase of 2.2% in comparison to last year’s results.
Consolidated operating earnings for 2013 improved slightly to $198 million, or 2.18% of revenues, compared to operating earnings of $197 million, or 2.22% of revenues, for the same period of 2012. Adjusted operating earnings (non-GAAP) for 2013 were $211 million, or 2.32 % of revenues, increased 1.7% when compared to adjusted operating earnings of $207 million, or 2.33% of revenues, for the same period last year.
Asset Management
The balance of cash and cash equivalents was $102 million at December 31, 2013. For the year, the company reported cash provided by operating activities of $141 million compared to $219 million in the same period last year. Asset management metrics for the quarter were positive with consolidated days sales outstanding (DSO) of 22.1, as of December 31, 2013, compared to DSO of 20.8 days for the same period last year. Consolidated inventory turns were 10.4 for 2013 versus inventory turns of 10.1 for 2012.
Segment Results
Domestic segment revenues for the fourth quarter of 2013 were $2.21 billion, improved modestly from revenue of $2.20 billion. For 2013, Domestic segment revenue experienced a slight decline to $8.69 billion, when compared to the prior year. Domestic revenue growth was impeded by ongoing market trends, including lower rates of healthcare utilization and reduced government spending, as well as the company’s continued rationalization of smaller, less profitable healthcare provider customers and suppliers. Despite these market challenges, the Domestic segment achieved year-over-year and sequential revenue growth for both the third and fourth quarters of 2013.
For the fourth quarter of 2013, Domestic segment operating earnings were $56.6 million, an increase of $5.0 million when compared to same period of 2012. Quarterly operating earnings, when compared to the prior year, benefitted from certain strategic initiatives, including growth in fee-for-service business. In addition, $2.0 million in legal expenses and loss contingencies associated with California-specific litigation and compensation and benefits requirements in 2012 did not recur in 2013. During the quarter, certain exit and realignment activities designed to optimize the company’s Domestic operations were accelerated; these activities were associated with closing certain U.S.-based distribution and logistics centers, and offsite warehouses. For the full year, Domestic segment operating earnings were $212 million for 2013 and 2012, representing 2.44% and 2.43% of segment revenues respectively for each year. In addition to factors affecting fourth quarter results, annual operating earnings benefitted from certain California municipal sales tax incentives and supplier price changes in the first half of the year, offset by increases in healthcare costs, workers’ compensation and other administrative expenses.
For the International segment, quarterly revenues increased 8.6% to $105 million and were $384 million for the first full year as part of Owens & Minor. For the fourth quarter of 2013, the International segment had operating earnings of $1.4 million, representing a $6.2 million increase over fourth quarter of 2012.
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For the full-year 2013, the International segment narrowed its operating losses by $4.0 million to $1.4 million. The comparative improvement for 2013 resulted from increased utilization of network capacity, continued growth, and diminishing reliance on transition services from the former parent company. During the second half of 2013, the International segment also benefitted from seasonally stronger customer activity.
2014 Outlook
The company reiterated the following financial guidance for 2014, which was originally issued at its December 2013 Investor Day:
For 2014, the company is targeting revenue growth of up to 2% and adjusted net income per diluted share of $1.95 to $2.05 for the year, which excludes exit and realignment and transaction-related costs.
Upcoming Investor Relations Events
Owens & Minor will participate in the following investor conferences in the first quarter of 2014; webcasts of executive presentations will be available onwww.owens-minor.com
| | • | | Leerink Swann Global Healthcare Conference 2014; February 12; New York |
| | • | | Citi 2014 Global Healthcare Conference; February 26; New York |
| | • | | Barclays Capital 2014 Global Healthcare Conference; March 13; Miami |
Investors Conference Call & Supplemental Material
Conference Call: Owens & Minor’s management team will conduct a conference call for investors on Tuesday, February 11, 2014, at 8:30 a.m. Eastern. The access code for the conference call, international dial-in and replay is #40287606. Participants may access the call at 866-393-1604. The international dial-in number is 224-357-2191. Replay: A replay of the call will be available for one week by dialing 855-859-2056. Webcast: A listen-only webcast of the call, along with supplemental information, will be available onwww.owens-minor.com under “Investor Relations.”
Owens & Minor uses its Web site,www.owens-minor.com, as a channel of distribution for material company information, including news releases, investor presentations and financial information. This information is routinely posted and accessible under the Investor Relations section.
Included with the press release financial tables are reconciliations of the differences between the non-GAAP financial measures presented in this news release, which exclude acquisition-related and exit and realignment charges, and their most directly comparable GAAP financial measures.
Safe Harbor Statement
Except for historical information, the matters discussed in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risk factors are discussed in reports filed by the company with the Securities & Exchange Commission. All of this information is available atwww.owens-minor.com. The company assumes no obligation, and expressly disclaims any such obligation, to update or alter information, whether as a result of new information, future events, or otherwise.
Owens & Minor, Inc., (NYSE: OMI) aFORTUNE 500 company headquartered in Richmond, Virginia, is a leading national provider of distribution and logistics services to the healthcare industry and a leading European provider of logistics services to pharmaceutical, life-science, and medical-device manufacturers. With a diverse product and service offering and facilities throughout the United States and Europe, the company serves hospitals, integrated healthcare systems, alternate site locations, group purchasing organizations, healthcare manufacturers, and the federal government. Owens & Minor also
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provides technology and consulting programs that improve inventory management and streamline logistics across the entire medical supply chain. For news releases, or for more information about Owens & Minor, visit the company website atwww.owens-minor.com.
CONTACTS:
Truitt Allcott, Director, Investor & Media Relations, 804-723-7555,truitt.allcott@owens-minor.com
Chuck Graves, Director, Finance & Investor Relations, 804-723-7556,chuck.graves@owens-minor.com
SOURCE: Owens & Minor
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Owens & Minor, Inc.
Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
| | | | | | | | |
| | | Three Months Ended December 31, | |
| | | 2013 | | | 2012 | |
Net revenue | | $ | 2,318,524 | | | $ | 2,294,208 | |
Cost of goods sold | | | 2,027,261 | | | | 2,023,434 | |
| | | | | | | | |
Gross margin | | | 291,263 | | | | 270,774 | |
Selling, general and administrative expenses | | | 222,043 | | | | 211,415 | |
Acquisition-related and exit and realignment charges | | | 7,049 | | | | 1,717 | |
Depreciation and amortization | | | 13,239 | | | | 12,420 | |
Other operating expense (income), net | | | (2,002 | ) | | | 181 | |
| | | | | | | | |
Operating earnings | | | 50,934 | | | | 45,041 | |
Interest expense, net | | | 3,263 | | | | 3,422 | |
| | | | | | | | |
Income before income taxes | | | 47,671 | | | | 41,619 | |
Income tax provision | | | 19,729 | | | | 16,685 | |
| | | | | | | | |
Net income | | $ | 27,942 | | | $ | 24,934 | |
| | | | | | | | |
| | |
Net income per common share: | | | | | | | | |
Basic | | $ | 0.44 | | | $ | 0.40 | |
Diluted | | $ | 0.44 | | | $ | 0.39 | |
| |
| | | Twelve Months Ended December 31, | |
| | | 2013 | | | 2012 | |
Net revenue | | $ | 9,071,532 | | | $ | 8,868,324 | |
Cost of goods sold | | | 7,954,457 | | | | 7,943,670 | |
| | | | | | | | |
Gross margin | | | 1,117,075 | | | | 924,654 | |
Selling, general and administrative expenses | | | 863,656 | | | | 682,595 | |
Acquisition-related and exit and realignment charges | | | 12,444 | | | | 10,164 | |
Depreciation and amortization | | | 50,586 | | | | 39,604 | |
Other operating expense (income), net | | | (7,694 | ) | | | (4,462 | ) |
| | | | | | | | |
Operating earnings | | | 198,083 | | | | 196,753 | |
Interest expense, net | | | 13,098 | | | | 13,397 | |
| | | | | | | | |
Income before income taxes | | | 184,985 | | | | 183,356 | |
Income tax provision | | | 74,103 | | | | 74,353 | |
| | | | | | | | |
Net income | | $ | 110,882 | | | $ | 109,003 | |
| | | | | | | | |
| | |
Net income per common share: | | | | | | | | |
Basic | | $ | 1.76 | | | $ | 1.72 | |
Diluted | | $ | 1.76 | | | $ | 1.72 | |
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Owens & Minor, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)
| | | | | | | | |
| | | December 31,
2013 | | | December 31,
2012 | |
| | |
Assets | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 101,905 | | | $ | 97,888 | |
Accounts and notes receivable, net | | | 572,854 | | | | 537,335 | |
Merchandise inventories | | | 771,663 | | | | 763,756 | |
Other current assets | | | 279,510 | | | | 231,264 | |
| | | | | | | | |
Total current assets | | | 1,725,932 | | | | 1,630,243 | |
Property and equipment, net | | | 191,961 | | | | 191,841 | |
Goodwill, net | | | 275,439 | | | | 274,884 | |
Intangible assets, net | | | 40,406 | | | | 42,313 | |
Other assets, net | | | 90,304 | | | | 75,117 | |
| | | | | | | | |
Total assets | | $ | 2,324,042 | | | $ | 2,214,398 | |
| | | | | | | | |
Liabilities and equity | | | | | | | | |
Current liabilities | | | | | | | | |
Accounts payable | | $ | 643,872 | | | $ | 603,137 | |
Accrued payroll and related liabilities | | | 23,296 | | | | 25,468 | |
Deferred income taxes | | | 41,613 | | | | 42,107 | |
Other current liabilities | | | 280,398 | | | | 254,924 | |
| | | | | | | | |
Total current liabilities | | | 989,179 | | | | 925,636 | |
Long-term debt, excluding current portion | | | 213,815 | | | | 215,383 | |
Deferred income taxes | | | 43,727 | | | | 36,269 | |
Other liabilities | | | 52,278 | | | | 63,454 | |
| | | | | | | | |
Total liabilities | | | 1,298,999 | | | | 1,240,742 | |
Total equity | | | 1,025,043 | | | | 973,656 | |
| | | | | | | | |
Total liabilities and equity | | $ | 2,324,042 | | | $ | 2,214,398 | |
| | | | | | | | |
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Owens & Minor, Inc.
Consolidated Statements of Cash Flows (unaudited)
(in thousands)
| | | | | | | | |
| | | Twelve Months Ended | |
| | | 2013 | | | 2012 | |
| | |
Operating activities: | | | | | | | | |
Net income | | $ | 110,882 | | | $ | 109,003 | |
Adjustments to reconcile net income to cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 50,586 | | | | 39,604 | |
Share-based compensation expense | | | 6,381 | | | | 5,697 | |
Deferred income tax expense | | | 3,713 | | | | 1,060 | |
Provision for losses on accounts and notes receivable | | | 787 | | | | 1,004 | |
Changes in operating assets and liabilities: | | | | | | | | |
Accounts and notes receivable | | | (38,645 | ) | | | 27,161 | |
Merchandise inventories | | | (7,064 | ) | | | 58,734 | |
Accounts payable | | | 47,374 | | | | (18,694 | ) |
Net change in other assets and liabilities | | | (32,337 | ) | | | (4,490 | ) |
Other, net | | | (1,123 | ) | | | (573 | ) |
| | | | | | | | |
Cash provided by operating activities | | | 140,554 | | | | 218,506 | |
| | | | | | | | |
| | |
Investing activities: | | | | | | | | |
Acquisition, net of cash acquired | | | — | | | | (155,210 | ) |
Additions to computer software and intangible assets | | | (32,010 | ) | | | (29,131 | ) |
Additions to property and equipment | | | (28,119 | ) | | | (9,832 | ) |
Proceeds from the sale of property and equipment | | | 3,051 | | | | 3,298 | |
| | | | | | | | |
Cash used for investing activities | | | (57,078 | ) | | | (190,875 | ) |
| | | | | | | | |
| | |
Financing activities: | | | | | | | | |
Cash dividends paid | | | (60,731 | ) | | | (55,681 | ) |
Repurchases of common stock | | | (18,876 | ) | | | (15,000 | ) |
Financing costs paid | | | — | | | | (1,303 | ) |
Proceeds from exercise of stock options | | | 5,352 | | | | 4,986 | |
Excess tax benefits related to share-based compensation | | | 898 | | | | 1,293 | |
Other, net | | | (8,623 | ) | | | (2,710 | ) |
| | | | | | | | |
Cash used for financing activities | | | (81,980 | ) | | | (68,415 | ) |
| | | | | | | | |
| | |
Effect of exchange rate changes on cash and cash equivalents | | | 2,521 | | | | 2,734 | |
| | | | | | | | |
| | |
Net increase (decrease) in cash and cash equivalents | | | 4,017 | | | | (38,050 | ) |
Cash and cash equivalents at beginning of period | | | 97,888 | | | | 135,938 | |
| | | | | | | | |
Cash and cash equivalents at end of period | | $ | 101,905 | | | $ | 97,888 | |
| | | | | | | | |
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Owens & Minor, Inc.
Financial Statistics and GAAP/Non-GAAP Reconciliations (unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
(in thousands, except ratios and per share data) | | 12/31/2013 | | | 9/30/2013 | | | 6/30/2013 | | | 3/31/2013 | | | 12/31/2012 | |
| | | | | |
Consolidated operating results: | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 2,213,949 | | | $ | 2,175,663 | | | $ | 2,143,691 | | | $ | 2,154,715 | | | $ | 2,197,932 | |
International(1) | | | 104,575 | | | | 94,884 | | | | 92,386 | | | | 91,669 | | | | 96,276 | |
| | | | | | | | | | | | | | | | | | | | |
Net revenue | | $ | 2,318,524 | | | $ | 2,270,547 | | | $ | 2,236,077 | | | $ | 2,246,384 | | | $ | 2,294,208 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Gross margin | | $ | 291,263 | | | $ | 273,329 | | | $ | 273,431 | | | $ | 279,052 | | | $ | 270,774 | |
Gross margin as a percent of revenue | | | 12.56 | % | | | 12.04 | % | | | 12.23 | % | | | 12.42 | % | | | 11.80 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
SG&A expenses | | $ | 222,043 | | | $ | 211,344 | | | $ | 212,548 | | | $ | 217,721 | | | $ | 211,415 | |
SG&A expenses as a percent of revenue | | | 9.58 | % | | | 9.31 | % | | | 9.51 | % | | | 9.69 | % | | | 9.22 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Operating earnings, as reported (GAAP) | | $ | 50,934 | | | $ | 49,215 | | | $ | 50,050 | | | $ | 47,884 | | | $ | 45,041 | |
Acquisition-related and exit and realignment charges | | | 7,049 | | | | 2,747 | | | | 638 | | | | 2,010 | | | | 1,717 | |
| | | | | | | | | | | | | | | | | | | | |
Operating earnings, adjusted (Non-GAAP) | | $ | 57,983 | | | $ | 51,962 | | | $ | 50,688 | | | $ | 49,894 | | | $ | 46,758 | |
Operating earnings as a percent of revenue, adjusted (Non-GAAP) | | | 2.50 | % | | | 2.29 | % | | | 2.27 | % | | | 2.22 | % | | | 2.04 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income, as reported (GAAP) | | $ | 27,942 | | | $ | 27,970 | | | $ | 28,872 | | | $ | 26,098 | | | $ | 24,934 | |
Acquisition-related and exit and realignment charges, after-tax | | | 5,024 | | | | 1,899 | | | | 412 | | | | 1,521 | | | | 1,237 | |
| | | | | | | | | | | | | | | | | | | | |
Net income, adjusted (Non-GAAP) | | $ | 32,966 | | | $ | 29,869 | | | $ | 29,284 | | | $ | 27,619 | | | $ | 26,171 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income per diluted common share, as reported (GAAP) | | $ | 0.44 | | | $ | 0.44 | | | $ | 0.46 | | | $ | 0.41 | | | $ | 0.39 | |
Acquisition-related and exit and realignment charges | | | 0.08 | | | | 0.03 | | | | — | | | | 0.03 | | | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | |
Net income per diluted common share, adjusted (Non-GAAP) | | $ | 0.52 | | | $ | 0.47 | | | $ | 0.46 | | | $ | 0.44 | | | $ | 0.41 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Financing: | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 101,905 | | | $ | 153,789 | | | $ | 207,826 | | | $ | 218,563 | | | $ | 97,888 | |
Total interest-bearing debt | | $ | 216,243 | | | $ | 216,850 | | | $ | 216,994 | | | $ | 216,414 | | | $ | 217,591 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Stock information: | | | | | | | | | | | | | | | | | | | | |
Cash dividends per common share | | $ | 0.24 | | | $ | 0.24 | | | $ | 0.24 | | | $ | 0.24 | | | $ | 0.22 | |
| | | | | | | | | | | | | | | | | | | | |
Stock price at quarter-end | | $ | 36.56 | | | $ | 34.59 | | | $ | 33.83 | | | $ | 32.56 | | | $ | 28.51 | |
| | | | | | | | | | | | | | | | | | | | |
| (1) | Revised to reflect net presentation of revenues for certain customer contracts. Previously reported revenues were $128,937, $122,996, $120,994 and $126,992 for the prior four quarters from 9/30/2013 to 12/31/2012, respectively. |
Use of Non-GAAP Measures
This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the measures exclude items and charges that (i) management does not believe reflect Owens & Minor, Inc.’s (the “Company”) core business and relate more to strategic, multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation.
Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on its financial and operating results and in comparing the Company’s performance to that of its competitors. However, the non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.
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Owens & Minor, Inc.
Summary Segment Information (unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | | | Twelve Months Ended December 31, | |
| | | 2013 | | | 2012 | | | 2013 | | | 2012 | |
| | | Amount | | | % of
consolidated
net revenue | | | Amount | | | % of
consolidated
net revenue | | | Amount | | | % of
consolidated
net revenue | | | Amount | | | % of
consolidated
net revenue | |
Net revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 2,213,949 | | | | 95.49 | % | | $ | 2,197,932 | | | | 95.80 | % | | $ | 8,688,018 | | | | 95.77 | % | | $ | 8,731,484 | | | | 98.46 | % |
International | | | 104,575 | | | | 4.51 | % | | | 96,276 | | | | 4.20 | % | | | 383,514 | | | | 4.23 | % | | | 136,839 | | | | 1.54 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated net revenue | | $ | 2,318,524 | | | | 100.00 | % | | $ | 2,294,208 | | | | 100.00 | % | | $ | 9,071,532 | | | | 100.00 | % | | $ | 8,868,323 | | | | 100.00 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | % of segment
net revenue | | | | | | % of segment
net revenue | | | | | | % of segment
net revenue | | | | | | % of segment
net revenue | |
Operating earnings (loss): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 56,568 | | | | 2.56 | % | | $ | 51,546 | | | | 2.35 | % | | $ | 211,932 | | | | 2.44 | % | | $ | 212,335 | | | | 2.43 | % |
International | | | 1,415 | | | | 1.35 | % | | | (4,788 | ) | | | (4.97 | )% | | | (1,405 | ) | | | (0.37 | )% | | | (5,418 | ) | | | (3.96 | )% |
Acquisition-related and exit and realignment charges | | | (7,049 | ) | | | N/A | | | | (1,717 | ) | | | N/A | | | | (12,444 | ) | | | N/A | | | | (10,164 | ) | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated operating earnings | | $ | 50,934 | | | | 2.20 | % | | $ | 45,041 | | | | 1.96 | % | | $ | 198,083 | | | | 2.18 | % | | $ | 196,753 | | | | 2.22 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Depreciation and amortization: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 9,033 | | | | | | | $ | 9,121 | | | | | | | $ | 35,808 | | | | | | | $ | 35,016 | | | | | |
International | | | 4,206 | | | | | | | | 3,299 | | | | | | | | 14,778 | | | | | | | | 4,588 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated depreciation and amortization | | $ | 13,239 | | | | | | | $ | 12,420 | | | | | | | $ | 50,586 | | | | | | | $ | 39,604 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Capital expenditures: (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 8,295 | | | | | | | $ | 7,364 | | | | | | | $ | 42,802 | | | | | | | $ | 34,450 | | | | | |
International | | | 6,328 | | | | | | | | 3,775 | | | | | | | | 17,327 | | | | | | | | 4,513 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated capital expenditures | | $ | 14,623 | | | | | | | $ | 11,139 | | | | | | | $ | 60,129 | | | | | | | $ | 38,963 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | December 31,
2013 | | | | | | December 31,
2012 | | | | | | | | | | | | | | | | |
Total assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 1,747,572 | | | | | | | $ | 1,730,396 | | | | | | | | | | | | | | | | | | | | | |
International | | | 474,565 | | | | | | | | 386,114 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment assets | | | 2,222,137 | | | | | | | | 2,116,510 | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | 101,905 | | | | | | | | 97,888 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated total assets | | $ | 2,324,042 | | | | | | | $ | 2,214,398 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Represents additions to property and equipment and additions to computer software and separately acquired intangible assets. |
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Owens & Minor, Inc.
Net Income Per Common Share (unaudited)
(in thousands, except per share data)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, | | | Twelve Months Ended
December 31, | |
| | | 2013 | | | 2012 | | | 2013 | | | 2012 | |
Numerator: | | | | | | | | | | | | | | | | |
Net income | | $ | 27,942 | | | $ | 24,934 | | | $ | 110,882 | | | $ | 109,003 | |
Less: income allocated to unvested restricted shares | | | (193 | ) | | | (173 | ) | | | (738 | ) | | | (749 | ) |
| | | | | | | | | | | | | | | | |
Net income attributable to common shareholders - basic | | | 27,749 | | | | 24,761 | | | | 110,144 | | | | 108,254 | |
Add: undistributed income attributable to unvested restricted shares -basic | | | 67 | | | | 61 | | | | 257 | | | | 292 | |
Less: undistributed income attributable to unvested restricted shares -diluted | | | (67 | ) | | | (61 | ) | | | (257 | ) | | | (292 | ) |
| | | | | | | | | | | | | | | | |
Net income attributable to common shareholders - diluted | | $ | 27,749 | | | $ | 24,761 | | | $ | 110,144 | | | $ | 108,254 | |
| | | | | | | | | | | | | | | | |
| | | | |
Denominator: | | | | | | | | | | | | | | | | |
Weighted average shares outstanding — basic | | | 62,446 | | | | 62,671 | | | | 62,625 | | | | 62,765 | |
Dilutive shares - stock options | | | 21 | | | | 67 | | | | 36 | | | | 79 | |
| | | | | | | | | | | | | | | | |
Weighted average shares outstanding — diluted | | | 62,467 | | | | 62,738 | | | | 62,661 | | | | 62,844 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net income per share attributable to common shareholders: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.44 | | | $ | 0.40 | | | $ | 1.76 | | | $ | 1.72 | |
Diluted | | $ | 0.44 | | | $ | 0.39 | | | $ | 1.76 | | | $ | 1.72 | |
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