Owens & Minor, Inc. (NYSE: OMI) has released its preliminary financial results for the fourth quarter and full year of 2024. The company reported revenue of $2.67 * $2.70 billion for the fourth quarter of 2024, and $10.67 * $10.70 billion for the full year 2024. Net loss for the fourth quarter is estimated to be in the range of $(311) * $(288) million, and for the full year, $(378) * $(355) million. Adjusted EBITDA for the fourth quarter is projected to be $135 * $140 million, and for the full year, $520 * $525 million.
The company also provided other key financial metrics: adjusted EPS for the fourth quarter is expected to be $0.52 * $0.55, and for the full year, $1.50 * $1.53. Owens & Minor reduced its total debt by over $240 million, and its net debt is estimated to be in the range of $1.805 * $1.810 billion for the full year 2024.
Additionally, the company anticipates recording a non-cash goodwill impairment charge within its Apria division of approximately $310 million, or approximately ($4.00) net loss per share. This impairment charge is attributed to various factors including financial market changes, decline in Owens & Minor’s stock price, rising interest rates, and anticipated changes in pricing of a capitated contract.
The company emphasized its healthy top-line performance in 2024, particularly in its patient direct segment which achieved solid mid-single digit growth. Owens & Minor plans to host a conference call for investors and analysts on February 28, 2025, to provide further details on its financial results.
In light of the upcoming acquisition of Rotech Healthcare Holdings, Inc., Owens & Minor is commencing a process to raise additional debt to finance the acquisition. The company highlighted its healthy free cash flow as the vehicle for the proposed financing and reiterated its commitment to achieving deleveraging goals over the next few years.
Investors and stakeholders are encouraged to access the simultaneous live webcast of the upcoming conference call via the investor relations page of the Owens & Minor website.
As with any forward-looking statements, these preliminary results and the amount of the non-cash goodwill impairment charge are subject to final management review and audit. This release contains certain "forward-looking" statements made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. Today the company's shares have moved -23.7% to a price of $10.86. Check out the company's full 8-K submission here.
