SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
June 16, 1995
Owens & Minor, Inc.
(Exact Name of Registrant as Specified in Charter)
Virginia 1-9810 54-1701843
(State of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
4800 Cox Road, Glen Allen, Virginia 23060
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code:
(804) 747-9794
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On June 16, 1995 Owens & Minor, Inc. (the
"Registrant") issued a press release attached as Exhibit 99
hereto relating to preliminary second quarter earnings,
which is incorporated by reference herein.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(c) Exhibits.
99. Press Release issued by the Registrant on
June 16, 1995.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Date: 6/16/95 OWENS & MINOR, INC.
By:\s\G. Gilmer Minor, III
G. Gilmer Minor, III
President and Chief
Executive Officer
Exhibits Index
Exhibit No.
(99) Press Release issued by the Registrant on
June 16, 1995.
Exhibit 99
June 16, 1995
OWENS & MINOR PROJECTS LOWER THAN EXPECTED
SECOND QUARTER EARNINGS
Richmond, VA ... Owens & Minor, Inc. (NYSE-OMI) announced
today that it expects second quarter earnings before
restructuring charges from recurring operations to fall short
of last year's second quarter results and investment analysts'
current estimates. The company earned $.17 per share in the
second quarter of last year, and expects to earn somewhere in
the range of $.10 to $.12 from recurring operations in the
comparable quarter ending June 30, 1995. This earnings
projection is based on preliminary results of the first two
months of the second quarter. Sales are up nicely when
compared to last year, but short of budgeted expectations.
The company is using estimated gross margins while the
inventories continue to shift during the consolidation
process. There continues to be pressure on gross margin.
Selling, general and administrative expenses (SG&A) are higher
than expected due in part to excessive overtime and use of
temporary help to handle our increasing business, the computer
conversions and the relocation and upgrading of nine (9) non-
Stuart Medical facilities. Also, interest costs have
increased significantly due to a combination of rising rates
and excess inventory in the combined companies.
According to G. Gilmer Minor, III, Chairman, President and
Chief Executive Officer: "It has just taken us longer than
we anticipated to put Owens & Minor and Stuart Medical
together. This has been one heck of an undertaking. By the
end of September, most of our divisions will be on one
computer system, and we will be able to focus all of our
energies and resources on driving excess costs away. Right
now, we are getting the orders out, improving our service,
gearing up for increased volume and broader customer demand
for services, and beginning the implementation of two modules
of software on our client-server technology platform. We have
in place an internal cost-cutting program designed to focus on
particular branches that need help and the corporate office as
well. However, we will not compromise the programs and
resources that our customers need for the near and long term.
We are going through what many of our customers are going
through in a tough healthcare environment. Margins are under
pressure, competition has increased and a premium is being
placed on the management of assets. Our past experience of
managing in a low-cost environment gives us the mindset to be
successful in driving SG&A down again. We have been able to
generate the expected synergies and cost savings from the
consolidation of the two companies given the status of where
we are today. Additional synergies and cost savings are
expected when we complete the consolidation in September."
Mr. Minor continued, "Same store sales year to date when
compared to last year are up 14.9%. We have strong momentum
in the marketplace. The successful VHA sign-up period in the
first quarter is an example of our strength in the market. As
a matter of fact, sales continue to grow positively as we
bring on new business from several recent contract awards and
the positive cultivation of some of the business we currently
have in the pipeline. Believe me, it is disappointing to have
to make a pre-announcement about our short-term results, but
our confidence in achieving the original goals we set out when
we acquired Stuart Medical are still valid. But, as I said
earlier, it's just taken us a little longer to get there."
It is anticipated that the company will have some of the same
shortfall in the third quarter as it completes its
consolidation process. Although some trend line improvements
are expected in the fourth quarter, earnings from recurring
operations for the year are forecasted to fall short of the
$.72 reported in 1994 by 15-20%.
The company plans to report its second quarter results on July
19th, 1995.
Owens & Minor, Inc. is a national wholesale distributor of
medical/surgical supplies. Our distribution centers coast to
coast serve hospitals, primary care facilities, integrated
healthcare systems and group purchasing organizations
throughout the United States. In addition to our diverse
product selection, Owens & Minor helps customers control
healthcare costs and improve inventory management through
innovative services in asset management, logistics and
technology.
CONTACT:
Glenn J. Dozier Hugh F. Gouldthorpe
Senior Vice President, Finance Vice President
Chief Financial Officer Quality and Communications
Owens & Minor, Inc. Owens & Minor, Inc.
(804) 965-2945 (804) 965-2922