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Owens & Minor4Q 2007 Financial Results
Management Conference CallSupplemental InformationFebruary 5, 2008
Safe Harbor
Except for the historical information contained herein, the matters discussed in this presentation may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These include: the ability to assimilate the operations of an acquired business, the potential loss of key personnel, intense competitive pressures, such as pricing, within the healthcare industry. They also include the success of direct marketing programs in attracting new customers, the ability to retain existing customers, changes in customer order patterns, changes in healthcare laws and regulations, changes in government, including Medicare, reimbursement guidelines and private insurer reimbursement amounts, the ability to maintain product suppliers, product price increases by suppliers and other factors discussed from time to time in the reports filed by the company with the Securities & Exchange Commission. The company assumes no obligation, and expressly disclaims any such obligation, to update or alter information, whether as a result of new information, future events, or otherwise.
Revenue
$1,652 $1,686 $1,679 $1,687 $1,748
$0
$400
$800
$1,200
$1,600
$2,000
4Q06 1Q07 2Q07 3Q07 4Q07
(GAAP, dollars in millions)
Gross Margin
10.6%
10.4%
10.5%
10.6% 10.6%
10.0%
10.4%
10.8%
4Q06 1Q07 2Q07 3Q07 4Q07
(GAAP, as a percent of revenues)
9.2%
8.5%
7.9% 7.8% 7.9%
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
4Q06 1Q07 2Q07 3Q07 4Q07
(GAAP, as a percent of revenues)
Selling, General &Administrative Expense
0.9%
1.5%
2.2%2.4% 2.3%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
4Q06 1Q07 2Q07 3Q07 4Q07
(GAAP, as a percent of revenues)
Operating Earnings
Earnings per Share
$0.18
$0.27
$0.52$0.45
$0.55
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
4Q06 1Q07 2Q07 3Q07 4Q07
(GAAP, diluted)
2008 Outlook
“Based on our size and penetration of the acute-care distribution market, as well as our ability to offer our customers innovative supply-chain management solutions, we believe we will achieve 2008 revenue growth in the 5% to 7% range, outpacing overall industry growth rates. We believe that this anticipated revenue growth and our ability to manage our business efficiently and effectively will translate into earnings per diluted share in a range of $2.20 to $2.30, representing a 23% to 28% increase in earnings for the year.”
- Craig R. Smith, President & CEO
2008 OutlookIncome Statement
• Revenue Growth– Targeted to be in 5% to 7% range
• Gross Margin– Targeted to be consistent as a % of revenues compared
to the 2nd half of 2007
• SG&A– Targeted mid-single digit basis point improvement compared
to the 2nd half of 2007
• Annual Tax Rate– Targeted to be consistent with 2007
2008 OutlookCash Deployment
• Capital Expenditures– Targeted to be in the range of $25-$35 million
• Excess Capital Usage– Financially/strategically attractive acquisitions
– De-lever revolver debt
Supplemental Information
Schedule of Sales Days per Year
2006 2007 2008
1st Quarter 64 days 64 days 64 days
2nd Quarter 64 days 64 days 64 days
3rd Quarter 63 days 63 days 64 days
4th Quarter 62 days 63 days 63 days
Totals 253 days 254 days 255 days
Owens & Minorwww.owens-minor.com
4th Quarter 2007Investor Relations Contacts:
Trudi Allcott [email protected] 804.723.7555
Chuck Graves [email protected] 804.723.7556
