OMI - Earnings call 4 2023 | Owens & Minor, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Owens & Minor Fourth Quarter 2023 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to the first speaker today, Jackie Marcus, Investor Relations.

You may begin.

Jacqueline Marcus

operator. you, Thank welcome XXXX and Owens Minor & Hello, Call. to Quarter Earnings Fourth everyone, the

Our call XXXX on are on which press for of our comments release, the section for the are the financial on outlook website. the press our fourth Investor results included the along in Relations quarter release. both with posted of XXXX, as today's as will well of be The focused slides, supplemental

statements. section this uncertainties, refer these report call, on from addressed we actual of Please full to The note forward-looking subject Please reports and filings matters or SEC these make Form description risks XX-K results today. and that risks for Form which including of uncertainties, quarterly are statements implied XX-Q. a Factors during our those projected materially here in will cause to and on annual to differ could our Risk the

today, will financial measures our Bruni, measures, In GAAP Ed Alex press non-GAAP included and about which comparable President Chief these Vice release. Chief financial information and are and and joined Officer; in Executive we to most Pesicka, by Officer. I'm measures Executive and our discussion reconciliations the Today, Financial reference President certain

the turn Ed. call now will Ed? I to over

Edward Pesicka

Thank on you, you the thank Jackie. us Good morning, for call joining everyone, and today.

position with As you a saw positive strength. momentum, strong we XXXX we in this and the out release our in of press closed exited year morning,

of our care, fastest-growing health Direct commercial Patient areas Our continued one market home. we to segment the the proven as outpace model in growth leverage of

trajectory by executing winning put revenue a business, growth post margin our pivoted successfully Model high level positive segment Realignment Healthcare and collectively for pandemic. Program, Our as at Services segment Operating Products We which P&HS a this did the reset on expansion. approach leveraging our new and we &

on strategic our Owens enhance in vision wait this to profitability. XXXX to a & drive fourth And the our year executing at finished plan quarter, launching the begin fourth launched until and began purpose segments we continue invest finally, we X-year both in also of to will results-oriented during Minor. We didn't solidify we the a culture to strategy quarter. And by as growth and which

additional objectives. my I'll remarks, I'm across evident and XXXX, proud focus our but financial hard work comments our results. on how later to in long-term strategy performance And provide of on of proof on let prepared me is I continues that the When against our in our now execution XXXX. perform organization our reflect strong extremely

we we For which of & record balance over support reduced example, And of fiscal initiatives Minor. value by Owens strengthen will debt in significantly annual million creation included million our cash the financial the in profile sheet strength during year. nearly XXXX, as to in generated performance X-year $XXX operating this $XXX was flow our flow, This many helped for strategic plan. cash an

This benefits, program fourth the segment delivered Next, growth meaningful more more the quarter. than rate. Products year Services of million we Healthcare profit $XX year, $XXX in with and improvement in deliver helped Realignment we Operating Model during the exited run and million our & than revenue

X.X% in in and sequential from key QX areas Finally, EPS with QX. X.X% operating performance from growing improving $X.XX improvement in in significant margin adjusted we delivered $X.XX adjusted QX to in to QX

for expansion positioned revenue XXXX accelerates. QX increased XX% for remaining market basis X.X% home-based with leading While segment demand as a a to while care and QX, continued growth Direct outperform in our year on with organic positive the full it to nearly of in revenue the declined X% way year-over-year well further Patient

and the about the substantial XXXX. So flexibility excited now, right performance business we're you established our as can we've given in see, strong

quick of a with summary segments. close each me Let

furthered In segment, our growth the market-leading of and digits, Direct profit the continued to terms contribution, grew year. expand integration business overall additional double investing had of initiatives. in outstanding an the we We Patient Apria began

our the as we a can market forward, continue that look our belief in position outpace expand to maintain and we true care. home-based we As leader

terms Healthcare segment, our and of our Realignment In expand during utilized cost long-term business to Operating XXXX, which & success. flows, we for of Model the our our Products all repositioned profits Program serve, our have lower increase Services to cash

I our future for Chief share financial our I like over XXXX Before Alex? Bruni, the to XXXX thoughts Officer, our and on Minor, discuss performance would turn guidance. to Owens my the to Financial and & call Alex

Alexander Bruni

Ed. Good fourth Diving our into Thank morning, you, everyone. quarter performance.

posted line, up in the revenue year-over-year $X.X a uptick in by our Direct prior we Patient revenue growth driven categories. was year. than On the over This with across X% of segment more billion, top several nearly consolidated X% product improvement

in divisions our Products Global X% also Medical & in both Healthcare there compared We Notably, and year. prior growth in quarter. a growth Distribution Products saw to segment the was the the Services

year, For up of reported X% we the full year-over-year. $XX.X revenue billion,

$XXX of compared quarter of gross fourth million of XXXX. or million $XXX Our revenue margin in XX% to or the XX.X% was revenue fourth quarter

$X.X gross up XX.X% of revenue, was year billion XXX or Full basis margin points.

the Our the in the Services from Healthcare segment & be improvement to efficiency segment. contribution can and gross productivity our margin Patient Products growing attributed and Direct gains

of the the fourth nonrecurrence of to valuation XXXX was year million. prior the adjustment by inventory Additionally, the $XX.X comparison quarter impacted

to XX.X% fourth for Distribution, Turning line selling the the in $XXX expenses. with and of XXXX. million, up of revenue, quarter expenses quarter making were administrative

full Direct, DS&A from year, of revenue. including or growing full were XX.X% a billion The $X.X revenue of Apria. the For of percentage contribution DS&A the year expenses Patient reflects

was the million. for was $XXX and quarter income $XX million, operating adjusted income operating GAAP

the of segment to the to XXXX. and increases quarter from third Services compared a $XXX year fourth both million. adjusted sequential income These Notably, in Patient GAAP income Direct was quarter For reflect and Healthcare notable growth income the Products XXX% by income, income XX% $XXX in of exhibited million, the operating improvement operating full and XXXX, adjusted was fourth & the operating results increasing a segments in XXXX. operating

Interest significant the our increase from funding for expense from debt largely quarter XX% was last decrease Interest year acquisition quarter during expense $XX the year was of fourth million, million, prior the XX% for due the by in XXXX. primarily $XXX Apria the driven from a reduction the to fourth a year full the year. early

GAAP net income adjusted was share, per $X.XX and EPS for the $X.XX. quarter was

was For the loss net full year, $X.XX. GAAP adjusted EPS and per was $X.XX share,

year quarter the was in was and the of Adjusted million EBITDA $XXX for full revenue. million X.X% or $XXX fourth

year Operating run $XXX rate our million exiting $XX million. goals Program, For an of excess benefit, of Realignment exceeding operating delivered in with in income annual the over million of year and Model the adjusted we of $XX the

Moving cash sheet. balance and flow to the

$XXX We driven continue and $XXX full by management the quarter results. working capital million to and robust generate substantial operating cash a total flow of reached year operating of million for

million million As by quarter $XXX a this flow, result year, to and the the of bringing significant $XX by for reduced balance year-end. the total at fourth full billion cash debt for we $X.X

reduced of was we in the debt full and balance X.Xx $XX for quarter quarter. addition, fourth by book million billion. the by million end at the the year, Net fourth leverage $XXX In net the to $X.X bringing

range expect third XXXX in Now to on adjusted what be $X.XX at quarter adjusted to $XX.X billion, we in $X.XX. net the Consistent discussed in range $XXX guidance. and Investor revenue $XXX year let's of Day, $XX.X EBITDA to our EPS with to call the to billion million the the be of million look and range of at full be to we

roughly of improvement to with previously second the as to sequential of X/X the each X/X, earnings expect in you year. follow help deliver to To Also, a the halves and seasonal your and pattern from discussed, some an expect perspective, expect seasonality we'd throughout the we trajectory year that across our earnings first to split normal we'd lead models, quarter.

remain Direct profit market the in segments, to Services. we for outlook committed in ahead, Healthcare year-over-year & having both segment Looking Products Patient and growth our improvement delivering outpaced deliver

XXXX, As for we to sustain laying groundwork of and we're investment this phase initial success. enter plan, on momentum future the to continued and continue X-year strategy the our excited

and turn in thoughts to like Ed? Owens now the call for his care. of role Minor's future Ed & to I'd over health on back XXXX the

Edward Pesicka

Thank you, Alex.

we in again, we laser-focused as our momentum So And great on maintaining had forward remain XXXX. in we business execution XXXX. move accelerating and

platforms shared At plan, pillars XXXX the long-term growth. X our value. high-potential our of areas to December, business, we long-term profitability our that across of Day stronger businesses investing growth our our to balance key are future and by Vision the I our all and strong outlined critical in sheet optimizing drive These in Investor include leveraging drive to accelerating

terms In growth engine, our pillars, these that's priorities Direct support that let's Patient start near-term segment. and with our of the

geographic satisfaction, wound areas gaps, diabetes, care. in margins. our proven have categories, for and technology grow core as across commercial we expand investment improve fill commercial urology customer a and including ostomy, resources We revenue are to These and invest sleep, home add respiratory, model

management our The technology digital to patient investments patient journey. marketing. Overall, platform the technology in we will will rethink use and include e-commerce enhancements innovative

the focus to combined rates, we'll strong investments, can so areas with of will basis of continued The other at we traditional to segment and outside by we Lastly, Direct points continue to into adjacencies continue per believe results these market and do our to Patient grow comorbid conditions. XXX execution, grow and least enable year. above

adjacent proprietary this Products markets expanding our & product channels. our better to optimize our by going to growing Services and business We're segment. leveraging Moving into Healthcare and scale, portfolio

are looking to we making progress footprint our taking don't, and cost As delivering differentiation, are investing you costs customers are his they're from at ultimately to sure and can our our out results, make our find and in Andy manufacturing already also are promises. the where where distribution our they see They on lowering serve. team optimized. costs

proprietary to with expand cost enhance product the combined are experience. in a lowering our higher-margin we also customer investing serve While P&HS, to to portfolio priority investments remains

our finally, teammates long business our both and we're investing term. And in short for and

number. XXXX, operating earlier, we flow. I a As million $XXX over That's cash during tremendous free generated mentioned of

for We $XXX net debt milestone million also reduction, over in another our incredible company. had

with So expansion, are technology and on investments to focused and and with scale continue mind, deploying explore inventory expand also focus implementations, support our enhance win this service expansion. to additional We'll thoughtfully and momentum both timely, a new capital, on in business. M&A portfolio to in supporting we

call I'd incredibly I to Operator? questions. to sharing progress the our of with bringing into to operator over progresses. open to the momentum look the now year and I'm XXXX, about it all forward as you conclusion, turn for up In excited the like we're

Operator

Daniel Your from the Instructions] Citi. comes first from line [Operator question of Grosslight

Daniel Grosslight

that's hear your the distribution products had up that it's around just in at PPE 'XX. I both and to and shaping levels clients good It's how that's the growing this for inventory quarter. P&HS, question a

your -- Curious how PPE, year. any on that this levels on impact on buying the shaping large they're inventory of And distributors Some inventory have they're are the clarity that going hospitals hoping their then more to commented who save may up? how money third-party to are you?

Edward Pesicka

Yes.

think biggest this I both So and growth factor joining first first the upfront this of morning thanks actually you as think Services to I Patient the probably of business -- in we But well, both on us Products all, the factor, that quarter, well as is that and call. the & alluded Direct. you saw parts said is, for Daniel, Daniel Healthcare

still Services, We're have excess And Healthcare have do helping burn some to also the the & specifically. burn that. to build consistent, -- We if we're see but nice that to starting inventory we're we're I products think We've additional see don't customers say XXXX. want I and done out some the our has that seen within through of now been business, about beginning job demand we've to bottom, them demand the -- have it seen uptick. some through -- while level during see -- divisions starting Products within starting our we a to stock, through slightly

upward So that some we to provide the to into start we ramp look momentum. XXXX, as and in expect direction

So that's specifically. the about thinking PPE we're how

are There faster seeing where other. categories growth some we're than

of burned I starting increase. seeing a think through example those as demand have see we're We're products, starting surgery is and escalate slightly rates to great people surgical that. to the PPE for

qualitative a from that's we're how So it standpoint. seeing

Daniel Grosslight

it. Got

more keeping alluded but to I'm at footprint, your and this of rethinking products the current of in one Okay. America curious Central Red anything the North about has your you model realignment including footprint, or kind And potentially as South Sea manufacturing in initiatives is if if then here, the plan producing the sites how changed? end potentially thinking changed the conflict of overseas. well manufacturing and you're more has key

Edward Pesicka

Sure.

should don't the we can think we When Just manufacturing geographic it. at I issues should we at that -- one, high we all about a location. we haven't look in back. the as run step when think it level, think mean, let really me circumstances did our different -- be, all We be we footprint where potentially of take different one and specific --

in within us And not I X- because think most footprint the really directly to look about if preset partners at And North the Canal, America, we seen you the impacted if West our it East to both in And are one on delay Coast. at shipping gloves, which If we do, at with Central enable our X-day we the today, in a Panama Thailand. get Coast. through by Canal get is to America, that we exception go the that. that it's about have are to is And the think our primarily to where our market issues we if through. really we've look Panama today slots we channels those shipping are shipping have Americas, we're today,

we generally But slots. have time speaking, our

lined We it hasn't and impacted us. have it up,

As the price broadly about service products need we we'll right customers that the -- to the continue to be opportunities get that manufacturing where are think does create to demand look and we it footprint us the going for at forward, at them. able more

So shipping us a impacting channel in I it's current primary not because Canal not the Suez us. guess for overall, is situation

Coast. we'll about different have Canal remap are based it's have one to things out as footprint. a we the future, go consideration today. primarily, the those Panama footprint we footprint, those into If into where use think we our we on take if we canals, as ship continue we to of West use or we And we manufacturing our today, And to

Operator

of from Caliendo UBS. question Kevin next comes Your line from the

Kevin Caliendo

I in understand EBITDA are just of what and assumptions want to some through go guidance of the the sort for there. 'XX

talk excuse that -- you captured run $XXX First, rule? the and million? headwind of -- cost were mentioned I'm for $XXX savings And to net DMEPOS the benefit the $XXX headwind? of is versus a net How much about is me, how was there you the embedded 'XX. there sort can of much or million realignment? in the 'XX, a Or rate exiting is from You XX-XX exiting also, million

Edward Pesicka

Maybe I and can can start, add some Alex color. then

in of the really the let So And that earnings end just Model carryforward. part earnings little about EBITDA. Realignment actually a or bit the before going talk the interest of me is and the to Operating bulk up -- our profits

the our we've And are we're savings the the we've reinvested from well of as Day going some one pretty addition range of into run in as be rate majority to things comfortable as I to EBITDA vast And the Investor both back we fact of that to in think gained the tried we clearly remarks was where state is both that on the from that at business. XXXX. for the have, EPS well prepared as that

I that. -- where I'll the it's going we're And X are to in some buckets in segments. big about be about the important And the it think of investing if think understand talk I to

on Patient one the The Direct side. is

with aggressively in we're people scale up, So the started we quarter. that And that commercial that in can QX. QX adding We're proven model teammates because drive the believe and personnel quarter, long-term as in continuing have, fourth adding fourth the growth. we commercial we we

then add months, a it, or the that to XX breakeven on to return very those teammates XX going we're the they XX-plus start commercial positive and business, have in organization if is noted show they after be don't of should positive also returns. What -- around teammates strong call side

that taking into long-term savings an profit profit putting some or and that's of investments. it So of example

really making that journey Patient the in our and and thing of Direct technology sure sleep have we on is in that The around can to focusing the side capture unique other maintain patients business.

simple X the So just those are that of business. on side examples

Products it's The of earnings. But other been category years infrastructure again, is do Services, for our is, expanding we investment portfolio. can management. on investments not company, in to pouring It's that way again, really it thing We're Healthcare around couple aspect talking the putting through areas. we've our into so as on our about that's it on I that. savings a that the a around in back And the think pulling just and important proprietary &

portfolio, that made investment So in the customers commercial product marketing, our front personnel that. there's of significant being to understand proprietary end -- the partnering expand on with then the and front

as offer around we in well analytics. In of to some investments that, technology data as services in addition our

So as I $XX benefit million the get backdrop of generated this the want than rate Realignment just that that $XXX million say all confused to get that's through to on is that run Operating to line. because bottom market year, more pushed have what a we Model don't of I going

that forward. actually future business taking reinvesting future growth in the as that benefits EBITDA We're and for move and we

that, of part how there's through. covering outside highlights carries Operating any think earnings of Realignment, the besides other So that the I think, helps Model I EBITDA. if that capture Alex,

Alexander Bruni

Thanks, Yes. Ed.

on working to a deliver guidance we in short, frankly, with our EBITDA, last So of fell adjusted to bit and be. little year were hard obviously we where line expected

And it for we head Ed PPE about XXXX, year. the some mentioned, feel normalization where of into we've investment. do reflects It does the reset reflect, pricing. as also so And the as good of we

the sort the of end and that, So year. normalizes of XXXX, we the think for of half gloves, in at here for first instance, XXXX into that

greater volatility of comp, the EBITDA. as adjusted from LIFO of and visibility stroke both we a then those normalize broad less stock So about around those standpoint. think us brush which to and are this some around expect -- the should areas we complexities a couple And of provide just year, more

Edward Pesicka

our thought on we way continues XX-XX obviously, one last have the on that. add But the legislation impact be discussed on about comment is, the to I'll is us. would through then in that it we built Congress And it comment

offset we throughout addition the year. that In to forward move to identifying that, ways as

Kevin Caliendo

-- I benefits long free we XXXX? Can from you one give working can of XXXX want around terms free ask any did working what you there answer. free Is I guidance quick you cash directional to to some of or like. capital in it. Got had us know if this Would year, give sort expect AR was us maybe flow know a flow numbers? the the follow-up? But in the in and did you cash don't just that match I in capital cash 'XX, flow and you what

Alexander Bruni

Sure. Kevin, great question. Yes,

XXXX, we obviously in So in year an XXXX. expect flow had normalize. We cash to extraordinary

We expect of down north to and with to end some pay a slightly just the Xx leverage. year be debt

Edward Pesicka

And our implementation see and are our comment going new inventory. Products Medical in as business, that's Global product to add in of make appropriate investments just we I'll the then is one our growth that's other to start whether through wins, we through expanding whether portfolio, proprietary Distribution

the as that service grows, we and business our to scale that customers. So way, we ability have

just bringing start you in In have you're of understands inventory cycle new everyone sell before products, addition them that, to on the market. proprietary so generally, to going in to the them

In you have the as you so right that addition bring don't ramps, that, issues. service you to in sure make to want amount

X One in going is XXXX to in new be So there are inventory investments things. related win implementations. really some to

The to drive expansion. aspect And of that service. product is of ability is third levels second higher the proprietary portfolio

Kevin Caliendo

Great.

Edward Pesicka

reasons to good all are inventory. those add And

Operator

comes from question next JPMorgan. from line of Stansel the Your John

John Stansel

in the that of frame that driver, product this part uptick, more of as SG&A it SKU Or up launches Day. kind the you highlighted you're new about it XXXX. investment should that driver near-term and is on too? around contributor for right what that following of Just like It think in Is the is a we line sounds significant at saying kind Investor a expansion? you're be to the will making way of

Edward Pesicka

segment. I I of on think I of and a it's one sides think No, examples driver. more both long-term X each And use

highly clearly on and side breakeven adds or so, commercial months and accelerates. that, the it profitable as -- XX Direct becomes know that's teammate the and personnel then the business, adds we our On that after Patient

benefit then going SG&A be yes, out -- similar very do business So capital in the & Products is that is -- the Services Healthcare of that, I'm side Direct to on investment a sorry, and on Patient as time side upfront building with teams the progresses. in that to

John Stansel

back contributing you there? medical help a Great. new going And believe. customer to the you how just Can are win, out services then that's guide to and qualitatively Day, I sold frame Investor what just the XXXX being called

Edward Pesicka

Yes, that's in -- implement to be -- going it's one that to implementing March. starting start should should

And haven't being will -- to it that And we going win, we that the put -- so So amount, combination it -- up top XX we expansion that end the have an will it's dollar customers a is that's but next of the portion It quantified customers meaningful overall business. and end our once is in implement we'll it's a up into it of will did month, a of system. meaningful start in, March. a win. to in begin one

John Stansel

quick if one squeeze one just Great. I And in the end. at can

Edward Pesicka

Sure.

John Stansel

More long-term was in chatter that to reimbursement know changes some of around CMS question. I CGMs. for there potential December, a

as How from I not Patient know years revenue are your XX% comes you Is potential Now CMS? from that CGM sources. is like you out Patient reimbursement really that business? something someone think the are around Direct for changes government about or of about meaningful thinking Direct only

Alexander Bruni

It's John. Alex Thanks, Bruni.

reimbursement. yes, don't the So CGM expect press continue is to November looking watch. the We we They until OIG certainly this findings to into noted something with release have in XXXX.

space, we this implications continue any to watch we'll point but So us. for at this expect don't

Operator

next Stephanie Barclays. line Davis from the of Your from question comes

Stephanie Davis

a imply understand the the healthy I ramp EBITDA be guidance out to So meant the while years. plan XXXX linear, in to step-up pretty 'XX wasn't does the

conservatism you was order you call bridge any of there. get this in maybe to help potential or areas and I could us hoping So one-timers

Edward Pesicka

Yes.

it target made. Day, make full it's you're there. sure at that I the is being of Investor wanted And we about think part gave right, to Stephanie, we linear. end-of-year when that are year investments talked And not XXXX we

different Again, going of examples. business. on Again, one in X do we're is the aspect commercial to what our Patient I Direct use

have of those The associated after they Patient they're Direct. is them. to using going are again, in second some we're implemented. technology have going benefits get to aspect the And Both with of benefits

things are paybacks XX months-plus that meaningful have those So out.

on the similar very Healthcare business. think Products Services & I

the if You're been -- those it's are think but time develop. & to things expansion, have about that we the have absolutely Minor right, something take do upfront. to it's you years, sure trying portfolio make investments on the Owens to you Again, has for that

And part of what we're leveraging is longer-term the Operating into aspect. Model back Realignment savings we investments have. We're redeploying that product the like

happen to the aspect and network into rationalization that's that on going execute future. other doesn't that The It's as take we optimization. aggressively we're and That's time get at is benefits right will material provide to that know we something now. if then overnight. something looking But

why But make pretty that's reasonable we in it for the So you think, X-year provides, to look returns. it's plan range, believe looked our strategic at time, to we higher at good we when period us those significant returns. XXXX, internal also of our longer-term we're investments -- enabling if provide

Stephanie Davis

is bridge if of So your start had of it more year, through? the a a think in we'll guidance, and then more this see right some is is as come step of 'XX? from an these to a things gradual to as Or XXXX I investment way up long-term of being bridge

Edward Pesicka

going still growth your the you I double-digit the of of our in still it's EPS, closer. is providing is range, just XXXX it's to assumption -- think if of but provide first midpoint adjusted year, guidance. our midpoint an take at EPS probably more investment

but that, right level investments -- the to go to balance through think so short returns of we're as is do term what the as trying for we term. XXXX addition In get with that I providing into right the -- long still in we

you'll we you to something of accelerate as as and will exit in that's optimization, some even progress, and ramp think into longer. The the still faster. rationalization I are take that out continue continue to to network 'XX bleed and 'XX out things 'XX. 'XX then that going into come there's see years and that But

Program And Operating a longer and then again, that's still beauty still what term take growth flow areas in still of cost get of returns, investing us really enabled us that done from and cash materially a been drive adjusted profitability to is the payback double-digit the we've and Realignment to enabled invest to the may we're with the It's but is take 'XX and to -- dollars be it's them a success. out. using long-term those take then impact improved going EPS 'XX short-term not business taking while midpoint in the to for Model

Operator

the Instructions] of Baird. next line Eric question from comes [Operator from Your Coldwell

Eric Coldwell

couple I here. had a

million, I it First, on the XXXX, sure $XX commentary company. since flow been to about was $XXX got then XXXX. million, cash mean year really then a not cash was fair, Ed, there's million. flow, normalizing was $XXX $XXX I'm it in To the you be normal million in then it

is get do is was a year better cash that of think with a before the million share of take you ratio this you on sort free $XXX there this blowout. years year? average some normal? of year a the we can is course, and, us call this Of simple it, to ratio What Or a And sense normal just X flow?

Alexander Bruni

Eric. Thanks, This Yes. Alex. is

fair definitely about So question having observation a fair normal and a not a year.

as So XXXX. operating in $XXX about flow, at Day, cash we free flow we of cash, having talked Investor forward, go cash million

once line few So the that, a as that. to in next place. the flow our reflects take up be the to We has expect that good operating investments talked we cash ramp we investments kind Ed see I of think think that over would about morning, this with years impact of of goal

Eric Coldwell

a days lot, each in a can $XXX would that But million to point around things I then the So pretty theory, in and linear? up Is be 'XX, bounce can in 'XX year. even impact process? is that have ramp theory know the -- low an calendar 'XX and

Alexander Bruni

not linear, it's that's would but I it. a of sure exactly how about think I'm think I fair approximation

Eric Coldwell

Yes.

to on know in Okay. forecast. precisely are that variables there to add-backs are probably impossible included EBITDA I are some And that EBITDA, your next then

So on definitely give some that. passes hall

about that you did charge EBITDA quarter. the on LIFO to the you $XX expected of million in probably XXXX. add-back I chunk by for technically, lower think $XX fourth million range But And a than a miss was

was I absolute LIFO And amount again, hoping means. what the is or What just would for XXXX inclusion you sure it or you that that. to guidance, guidance -- and that then you the 'XX? could for whatever compare in not charge And credit a is? quantify XXXX frankly, does how normalize LIFO said

Alexander Bruni

Eric. Thanks, Yes.

back, on redefine we of in million in this in yes, when we say about XXXX talked is did comp. the I will our fluctuate. million the and for stock QX, so or So although reset projections year, and That we complexity XXXX combined having roughly adjusted $XX here, go to just where EBITDA LIFO ended about kind $XX

so part 'XX. of was in And difficulty the that

LIFO comp. There was in and $XX of 'XX about stock million $X of about million

to in and that expect $XX normalize to just be 'XX combined. north We million of

Eric Coldwell

add-back? of million $XX

Alexander Bruni

Yes.

Eric Coldwell

last West Medicine impact I'm having us away what's has a the outlook? any tell We least call the has Virginia notice some to going WVU And one, did headline University, little Okay. delayed of go recently here. a at been ramp, a by deal the from the or the or year. delayed kind And Can an going on build-out XXXX on there? been of results site is that of you the that

Edward Pesicka

our It's the actually still to get delay we've a Yes, deal Eric, actually It's the contractor That's long-term with the the facility on all. construction. extended with -- built. impact WVU. at no working

we business completed. distribution distribution years, so had for out XXXX. impact That last been served there's it's the the center served center. out we've X to until another X be of It another get facility of continue will And on

at distribution be all just it's WVU no another in partner the there'd us. the up to a of incredible them. has impact we serving getting XXXX center, business of matter out and been running are new And because one for an and

Operator

Pesicka we have this I to turn at time. And in Ed call further our closing now will no questions for queue remarks. back the

Edward Pesicka

Thank you, operator.

where partners the position joined Besides everyone and our today. our of the to well who First we that thank want are teammates on I shareholders. worked on today. XXXX to as to across want to us I all, also tremendously our patients, those as in thank I thank our call, customers, globe really to have us our call want the

continue are, to As strategy. That place with the even the during more we the QX that is we saw we to than in strength. team that as believe the exited accelerated we've on where QX to strategy we have from reflect we firmly year have tremendous us going and year the enable we and progress right right to momentum QX to QX that,

And I progresses. forward see, excited can to are sharing progress where So the right as the excited now more as but you pretty you look future. about we year with our even about I'm

just thank you. today, everyone, again So Thank talking you, again, for look first quarter results. us to and after the joining forward

Operator

your conference you you disconnect. today's for This call. concludes Thank now participation, and may

Owens & Minor (OMI) 20 Feb 242023 Q4 Earnings call transcript