Owens & Minor Reports Fourth Quarter and Full Year 2022 Financial Results

RICHMOND, Va.–(BUSINESS WIRE)–Owens & Minor, Inc. (NYSE-OMI) today reported financial results for the fourth quarter and the year ended December 31, 2022, as summarized in the table below.

“Our Patient Direct segment capped a fantastic year with another strong quarter, and I am pleased that our medical distribution division continues to perform well, retaining and winning new business. However, overall fourth-quarter results showed that we need to move quickly to offset volume decline, cost and pricing headwinds, particularly in our global products division. It is clear that our Company’s cost structure needs to be better aligned with the evolving market,” said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.

“We have initiated a company-wide Operating Model Realignment Program with a dedicated team to accelerate profit improvement and reduce costs. We expect this program to help us quickly and sustainably drive the performance and growth of the company by delivering approximately $30 million of Adjusted Operating Income in 2023, and approximately $200 million by 2025. We believe this program will enhance our strong quality of service to our customers, increase our margins, and allow us to more rapidly reduce debt and reinvest in higher-growth and more profitable opportunities,” Pesicka added.

“Leveraging his experience driving successful large-scale, profit-improvement programs at Apria, Dan Starck will lead the company-wide Operating Model Realignment Program. And building upon his years of successful leadership of our Byram division, Perry Bernocchi will be promoted, effective March 1, 2023, to CEO of the Patient Direct segment and will drive further integration of Byram and Apria to better serve our customers and drive efficiencies,” Pesicka concluded.

Operating Model Realignment Program Includes:

  • Sourcing and demand management
  • Organizational structure redesign
  • Network rationalization and operational excellence
  • Commercial excellence and product profitability enhancement

Financial Summary (1)

($ in millions, except per share data)












Operating (loss) income, GAAP





Adj. Operating Income, Non-GAAP





Net (loss) income, GAAP





Adj. Net Income, Non-GAAP










Net (loss) income per common share, GAAP





Adj. Net Income per share, Non-GAAP(2)





(1) Reconciliations of the differences between the non-GAAP financial measures presented in this release and their most directly comparable GAAP financial measures are included in the tables below.

(2) Adjusted Net Income per share, Non-GAAP for Q4 2022 was unfavorably impacted as compared to prior year by foreign currency translation in the amount of $0.03 and, unfavorably impacted by $0.16 for the 2022 full-year period.

Results and Business Highlights

  • Q4 Consolidated revenue of $2.6 billion
    • Patient Direct revenue of $617 million, up 10.3% on an adjusted basis for the Apria acquisition
    • Products & Healthcare Services revenue up 1.6% sequentially from Q3
    • Unfavorable foreign exchange (FX) impact of $10 million
  • Adjusted EBITDA of $117 million for the quarter and $518 million for the full year
    • For the fourth quarter on an adjusted basis for the Apria acquisition, Patient Direct adjusted segment operating income increased by 50% year-over-year with margin rate increase of 280 basis points to 10.7%
    • Unfavorable FX impacted Adjusted Operating Income by $3 million in Q4 and $16 million for the full year
  • Balance Sheet and Cash Flow
    • Reduced total debt by $61 million in Q4 and $143 million since funding the Apria acquisition
    • Generated $87 million of operating cash flow in the quarter, up 73% year-over-year and up 27% from Q3
    • Generated $325 million of operating cash flow for the full year, up 162%
  • Business Highlights
    • Owens & Minor’s Supplier Diversity Award celebrated its 10th consecutive year
    • Byram Healthcare was awarded Verywell Health’s “Best Overall Diabetic Supply Company” for the fourth year in a row
    • Owens & Minor Foundation and Ronald McDonald House Charities® partner to help build healthier communities

2023 Financial Outlook

The Company’s outlook for 2023 is summarized below:

  • Revenue for 2023 to be in a range of $10.1 billion to $10.5 billion
  • Adjusted EBITDA for 2023 to be in a range of $490 million to $550 million
  • Adjusted EPS for 2023 to be in a range of $1.15 to $1.65

The Company’s outlook for 2023 contains assumptions, including current expectations regarding the impact of general economic conditions, including inflation, and the continuation of pressure on pricing and demand in our Products & Healthcare Services segment. Key assumptions supporting the Company’s 2023 financial guidance include:

  • Adjusted operating income benefit of ~$30 million from the Operating Model Realignment Program in 2023
  • Gross margin rate of ~20.5%
  • Interest expense of $175 to $180 million
  • Adjusted effective tax rate of 26% to 27%
  • Diluted weighted average shares of ~77.5 million
  • Capital expenditures of $190 to $210 million
  • Stable to improving commodity prices
  • FX rates as of 12/31/2022

Although the Company does provide guidance for adjusted EBITDA and adjusted EPS (which are non-GAAP financial measures), it is not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. Such elements include but are not limited to restructuring and acquisition charges. As a result, no GAAP guidance or reconciliation of the Company’s adjusted EBITDA guidance or adjusted EPS guidance is provided. The outlook is based on certain assumptions that are subject to the risk factors discussed in the Company’s filings with the Securities and Exchange Commission (“SEC”).

About Owens & Minor

Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company integrating product manufacturing and delivery, home health supply, and perioperative services to support care through the hospital and into the home. Owens & Minor drives visibility, control and efficiency for patients, providers and healthcare professionals across the supply chain with proprietary technology and solutions, an extensive product portfolio and an Americas-based manufacturing footprint for personal protective equipment (PPE) and surgical products, as well as a robust portfolio of products and services for patients managing chronic and acute conditions in the home setting. Operating continuously since 1882 from its headquarters in Richmond, Va., Owens & Minor is a 140-year-old company powered by more than 20,000 global teammates. Learn more at https://www.owens-minor.com, follow @Owens_Minor on Twitter and connect on LinkedIn at www.linkedin.com/company/owens-&-minor.