Owens & Minor, Inc. reported a net loss of $66.6 million for the nine months ended September 30, 2024, compared to a net loss of $59.1 million for the same period in 2023. The company experienced a significant decrease in cash provided by operating activities, which fell to $90.5 million from $628.9 million year-over-year. This decline was accompanied by a net decrease in cash, cash equivalents, and restricted cash of $197.8 million, contrasting with a net increase of $164.0 million in the previous year.
The company’s total borrowings under its amended Receivables Financing Agreement surged to $1.3 billion for the nine months ended September 30, 2024, compared to $476.0 million in the same period of 2023. Cash used for financing activities also decreased to $224.5 million from $366.1 million year-over-year.
Owens & Minor's consolidated net revenue for the nine months ended September 30, 2024, reached $8.0 billion, reflecting a 4.3% increase from $7.7 billion in 2023. The Products & Healthcare Services segment generated $6.0 billion in revenue, up 4.0% from the prior year, while the Patient Direct segment reported $1.99 billion, a 5.1% increase. The Medical Distribution division saw a 5.0% revenue growth, although this was partially offset by a decline in the Global Products division.
Operating income for the Products & Healthcare Services segment decreased to $27.2 million for the nine months ended September 30, 2024, from $24.6 million in 2023. The decline was attributed to increased LIFO charges and costs associated with supporting future revenue growth. In contrast, the Patient Direct segment's operating income rose to $190.6 million from $169.3 million year-over-year.
The company incurred $85.5 million in exit and realignment charges for the nine months ended September 30, 2024, an increase from $74.8 million in 2023. This included $90.2 million related to the Operating Model Realignment Program and IT strategic initiatives. Additionally, acquisition-related charges totaled $10.2 million, primarily linked to the anticipated acquisition of Rotech Healthcare Holdings Inc. for $1.36 billion, expected to close in the first half of 2025.
As of September 30, 2024, total assets were reported at $5.1 billion, slightly down from $5.1 billion at the end of 2023. The company’s total equity showed a modest recovery to $874.6 million from $860.7 million in the previous quarter. The effective tax rate for the nine months ended September 30, 2024, was (15.4)%, a significant change from 22.0% in 2023, influenced by a one-time income tax charge related to uncertain tax positions.
About OWENS & MINOR INC/VA/
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