Owens & Minor, Inc. (NYSE:OMI) Q4 2022 Earnings Call Transcript

And if they have a stockpile of PPE use that, because it saves cash flow, the product has already been purchased. Eventually, as that wanes, they’re going to start to need the product. And as long as that usage within the hospitals or clinicians continue to be at that high level, that protocol level. We don’t see it coming down back to 2019. It’s just the gap right now of the destocking both from within hospitals and within the channels that’s out there.

Evan Stover: Thanks. That’s helpful. On the medical distribution side, global products business. I mean, the firm level revenue is above what we and the Street expected. I think a large component of that’s going to be trends in your medical distribution business. Can you talk about where you stand on net wins? How some of the wins and losses net out and feather in overtime? And what you’re seeing in business development?

Ed Pesicka: Yes. Let me talk about both aspects, both retention and new wins. We’ve got the vast majority of our top 10 customers now under contract for multiple years. And that’s something we haven’t been able to do in the past. And there was been a keen focus on our — from our team. In addition to that, if I think about some of the new wins, it would be taking a customer and I won’t disclose the customer, but taking the customer where we have about 201 of our top 10 customers, that’s $200 million worth of business. That’s decided to get out of self-distribution and bring that additional $200 million, that’s one of our top customer is about $200 million in revenue, bringing an additional $200 million through our channels and having us manage that product for them, that’s another example of win.

So and then the pipeline is probably as robust as it’s been in a long period of time. So that’s the kind of cadence we’re on. In addition to that, there is merit and we talked a little bit about this. Because in the synergy side of our Patient Direct business, we’re actually gaining synergies, because of those broader relationships we have with the acute care. And as hospitals and IDNs are looking for support into the home, that’s actually helping that side of the business grow too. So it’s a mix of, one locking up our existing customers for multiple years and that creates a tremendous amount of stability for you. Two, it’s aggressively going after true new wins, which are takeaways from competition. It’s also about looking at our customers in finding ways and identifying ways where, hey, they like what we’re doing and taking self-distribution and other products and starting to put them through our channels.

And then it’s the cross over between our acute care and our Patient Direct segments.

Evan Stover: Okay. Thank you. Final one for me. Alex, I might have miss the details here, but it sounds like there’s more add backs from GAAP to non-GAAP that are going to be affected in 2023. If I got that correct, what does the $1.15 to $1.65 EPS guidance look like under the old method, presumably lower. I’m just wondering how to apples-to-apples the new non-GAAP treatments you’re doing here?

Alex Bruni: Yes. Thanks, Evan. There’s no change at this time for the reporting changes.

Ed Pesicka: You know, the reporting changes won’t affect EPS.

Evan Stover: Okay. Sorry about the confusion and thank you.

Operator: There are no further questions at this time. I’ll turn it over to Ed Pesicka for any closing comments.