Owen and Minor soars on Street-beating Q4 results

Owens and Minor posted fourth-quarter results that beat the consensus forecast on Wall Street.

The Mechanicsville, Va.-based company reported profits of $50.7 million, or 72¢ per share on sales of $2.4 billion for the three months ended Dec. 31, 2020, for a sales growth of 7.8% compared with Q4 2019.

Adjusted to exclude one-time items, earnings per share were $1.14, 29¢ ahead of The Street, where analysts were looking for sales of $2.2 billion.

“We delivered exceptional financial results for the quarter and full-year through strong execution,” president and CEO Edward Pesicka said in a news release. “Our productivity gains along with favorable product mix drove our margin improvement and significant earnings growth. During the year we successfully deleveraged our balance sheet while continuing to reinvest in our businesses. We have established a solid foundation for long-term profitable growth and enhanced financial flexibility.”

“The monumental e…

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HHS to release 1.5M N95 respirators to nursing homes

HHS will release 1.5 million N95 respirators from the Strategic National Stockpile for distribution to approximately 3,336 nursing home facilities across the United States.

The respirators, made in the U.S. by the Halyard business of Owens & Minor (NYSE:OMI), will go to select nursing homes that recently reported only enough supplies for only zero to three days of operations, according to the announcement, posted yesterday. Shipments start Aug. 28.

“President Trump and Secretary Azar remain fully committed to caring for our nation’s most vulnerable citizens, and that means ensuring nursing homes have the equipment and supplies they need to treat patients safely during the pandemic,” said Dr. Robert Kadlec, the HHS Assistant Secretary who oversees the SNS. “This additional federal supplement of N95 respirators from the SNS will immediately help those nursing homes prevent the spread of COVID-19 and keep the patients they care for safe during this pandemic.”

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Owens & Minor misses on sales, equals earnings projections in Q2

Owens & Minor (NYSE:OMI) shares ticked up after hours today on second-quarter results that came up short of the consensus revenue forecast.

The Mechanicsville, Va.-based company posted losses of -$55.6 million, or -91¢ per share, on sales of $1.8 billion for the three months ended June 30, 2020, for a massive bottom-line slide from losses of -$10.5 million last year on a sales decline of 23.9%.

Adjusted to exclude one-time items, earnings per share were 20¢, coming in level with the projections from Wall Street, where analysts were looking for sales of $1.95 billion.

During the quarter, the company managed to close the $133 million sale of its Movianto business and shipped nearly 5 billion units of personal protective equipment since February amid the COVID-19 pandemic.

“I am tremendously proud of our continued focus and intensity, resulting in improved financial performance and further strengthening our foundation for long-term profitable gro…

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MedTech 100 roundup: Another rebound as markets continue to fluctuate

Medtech stocks rebounded from a significant dip earlier in June last week, continuing to highlight the topsy-turvy nature of the markets during the COVID-19 pandemic.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — sat at 85.00 points at the end of last week (June 19). That total represents a 3.5% increase from the 82.12-point total at the same time a week prior (June 12), demonstrating another uptick after a -6% drop-off just one week before.

Meanwhile, the S&P 500 Index experienced a 1.9% increase from June 12 to June 19, and the Dow Jones Index fared slightly worse with a 1% increase over the same period of time. Both indexes mirrored medtech’s rebound, having posted -4.8% and -5.6% decreases, respectively, the week before.

Medtech’s lowest point during the COVID-19 pandemic remains at 62.13 on March 23. Since then, the industry’s stocks have experienced 36.8% growth in total. Stocks i…

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Owens & Minor completes Movianto sale

Owens & Minor (NYSE:OMI) announced that it completed the sale of its Movianto European logistics business to EHDH Holding Group.

In January, Owens & Minor announced that it intended to sell the Movianto business, expecting to collect proceeds reaching $133 million to be used to further reduce company debt. The company purchased Movianto in 2012 for $157 million and, at the time of purchase, it represented 5.5% of consolidated revenue.

“Today’s divestiture enables Owens & Minor to concentrate focus on our strategic pillars – products, services and distribution – and to continue expanding our PPE manufacturing capacity in the U.S. and North America,” Owens & Minor president & CEO Edward Pesicka said in a news release. “This transaction also contributes to the continued financial and operational strength of Owens & Minor.”

Earlier this month, Owens & Minor announced that it commenced offers to purchase outstanding senior notes th…

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U.S. Senators demand investigation of Trump COVID-19 supply chain effort

(Image by Krzysztof Kowalik on Unsplash)

Three U.S. senators today demanded an investigation into Project Air Bridge, a Trump administration supply-chain management project to import personal protective equipment (PPE) and other medical supplies during the COVID-19 pandemic.

Dubbing the project “opaque,” U.S. Senators Elizabeth Warren (D-Mass.), Chuck Schumer (D-N.Y.) and Richard Blumenthal (D-Conn.) also released new documents and information from the six major medical wholesalers or distribution companies involved in the project — Cardinal Health (NYSE:CAH), McKesson, Medline Industries, Henry Schein (NSDQ:HSIC), Owens & Minor (NYSE:OMI) and Concordance Healthcare Solutions.

Warren and Blumenthal began investigating Project Air Bridge in April after multiple reports of seizures of supplies by federal officials and what they characterized in a news release as “political favoriti…

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MedTech 100 roundup: Stocks stand pat in June’s first week

While the markets experienced some growth over the past week, stocks in the medtech industry remained practically unchanged over seven days.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — sat at 87.15 points at the end of last week (June 5). That total represents just a -0.02-point decrease from the 87.17-point total at the same time a week prior (May 29), which represented the industry’s highest point since before the COVID-19 pandemic took hold of the markets.

Meanwhile, the S&P 500 Index experienced a 3.14% increase from May 29 to June 5 and the Dow Jones Index fared even better with a 6.81% increase over the same period of time. The market surge came on the back of the White House announcement that 2.5 million jobs were added in May and unemployment rose to 13.3% when a surge to nearly 20% was expected, according to Yahoo Finance.

The lowest point for medtech during the COVID-19 pand…

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Owens & Minor announces offers worth $240m

Owens & Minor (NYSE:OMI) announced that it commenced offers to purchase outstanding senior notes that could total up to $240 million.

The tender offers to purchase the senior notes include the Mechanicsville, Va.-based company’s 3.875% notes due in 2021 ($233.1 million aggregate amount outstanding) and 4.375% senior notes due in 2025 ($275 million outstanding, plus $15 million sub-cap).

Owens & Minor’s offers will expire at 11:59 p.m. EST on July 2, unless extended or terminated by the company, and no tenders submitted after the expiration will be valid, according to a news release.

The company intends to fund the tender offers with cash on hand, funds from its accounts receivable securitization program and at least $133 million in proceeds from the sale of its Movianto business. If the tender offers are not consummated or the amount of notes accepted for purchase comes in at less than the purchase price, the company may use the remai…

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Owens & Minor announces $50m offering

Owens & Minor (NYSE:OMI) announced that it entered into an equity distribution agreement for a common stock offering worth up to $50 million.

The Mechanicsville, Va.-based company’s agreement is with Citigroup Global Markets and includes its common stock at a par value of $2 per share that could total $50 million. Citigroup will also receive a commission of up to 2.75% of the gross sales price of the shares, along with a maximum of $100,000 in legal fee reimbursement.

Owens & Minor or Citigroup may terminate the agreement at any time upon notice to the other party, while Citigroup retains the right to do so in certain circumstances, including suspension or limitation on the trading of Owens & Minor’s stock on the New York Stock Exchange, according to a news release.

The healthcare logistics and medical supplies company did not list an intended use of proceeds from the offering. It is currently working under a $29 million governme…

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