Owens & Minor Inc. (OMI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Owens & Minor Inc. has a market cap of $2.04 billion; its shares were traded at around $32.39 with a P/E ratio of 17.4 and P/S ratio of 0.3. The dividend yield of Owens & Minor Inc. stocks is 2.1%. Owens & Minor Inc. had an annual average earning growth of 5.4% over the past 10 years.OMI is in the portfolios of David Dreman of Dreman Value Management, Edward Owens of Vanguard Health Care Fund, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Selling, general and administrative (SG&A) expenses. SG&A expenses decreased 3.0% to $135.2 million for the first quarter of 2010, as compared with $139.4 million in the comparable period of 2009. SG&A expenses decreased $2.3 million for information technology outsourcing related to technology infrastructure enhancements completed in the fourth quarter of 2009, $1.5 million for labor costs and $0.8 million for fuel and freight costs. Additionally, SG&A expenses in the first quarter of 2009 included $2.1 million in Burrows acquisition transition-related expenses. The decreases in SG&A expenses were partially offset by increases of $1.2 million for consulting services and $1.2 million for costs incurred related to our third-party logistics services.
Income from continuing operations. Income from continuing operations increased to $27.8 million for the first quarter of 2010 compared to $22.4 million for the first quarter of 2009. The increase is primarily due to an increase in operating earnings of $9.3 million, which was partially offset by an increase in income tax expense of $3.9 million.
Liquidity and capital expenditures. In the first quarter of 2010, cash and cash equivalents increased by $50.2 million to $146.4 million at March 31, 2010. We generated cash from continuing operating activities of $139.5 million, compared to $83.1 million in the first quarter of 2009. Cash from continuing operating activities in the first quarter of 2010 and 2009 was positively affected by operating earnings, increases in accounts payable and decreases in accounts and notes receivable (due to improved collection efforts). Cash from continuing operating activities in 2010 also benefited from lower inventories versus higher inventories in 2009, which were primarily related to new business and the transition of the Burrows business. During the first quarter of 2010, we contributed $5.0 million to our defined benefit pension plan in conjunction with a plan of termination approved by the Board of Directors in December 2009. We expect to make additional contributions of approximately $3.0 to $8.0 million through the final termination, which is targeted to be in late 2010 or early 2011.
Cash used for investing activities increased to $7.9 million for the first quarter of 2010 from $1.1 million for the first quarter of 2009. Capital expenditures were $7.9 million in the first quarter of 2010, compared to $8.1 million in the same period of 2009, and primarily related to our strategic and operational efficiency initiatives, such as investments in leasehold improvements for our third-party logistics service and a relocated distribution center and investments in voice-pick technology. Cash used for investing activities for the first quarter of 2009 included the receipt of a $7.0 million purchase price adjustment related to the Burrows acquisition.
Cash used for financing activities in the first quarter of 2010 was $80.9 million, compared to $156.5 million used in the first quarter of 2009. During the first quarter of 2010, cash from continuing operations was used to pay dividends and reduce drafts payable. During the first quarter of 2009, cash from operating activities of continuing and discontinued operations, along with $63.0 million of proceeds from the sale of the DTC business, was used to reduce our net borrowings under the revolving credit facility by $146.5 million and to pay dividends. Dividends paid were $11.1 million for the first quarter of 2010, an increase from $9.5 million for the first quarter of 2009.
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Owens & Minor Inc. has a market cap of $2.04 billion; its shares were traded at around $32.39 with a P/E ratio of 17.4 and P/S ratio of 0.3. The dividend yield of Owens & Minor Inc. stocks is 2.1%. Owens & Minor Inc. had an annual average earning growth of 5.4% over the past 10 years.OMI is in the portfolios of David Dreman of Dreman Value Management, Edward Owens of Vanguard Health Care Fund, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Overview. In the first quarter of 2010, we earned net income of $27.8 million, an increase from $14.0 million in the first quarter of 2009. Income from continuing operations per diluted common share was $0.44 for the first quarter of 2010, an increase from $0.36 in the comparable period of 2009. Operating earnings were $49.2 million in the first quarter of 2010, an increase from $39.9 million in the first quarter of 2009.Selling, general and administrative (SG&A) expenses. SG&A expenses decreased 3.0% to $135.2 million for the first quarter of 2010, as compared with $139.4 million in the comparable period of 2009. SG&A expenses decreased $2.3 million for information technology outsourcing related to technology infrastructure enhancements completed in the fourth quarter of 2009, $1.5 million for labor costs and $0.8 million for fuel and freight costs. Additionally, SG&A expenses in the first quarter of 2009 included $2.1 million in Burrows acquisition transition-related expenses. The decreases in SG&A expenses were partially offset by increases of $1.2 million for consulting services and $1.2 million for costs incurred related to our third-party logistics services.
Income from continuing operations. Income from continuing operations increased to $27.8 million for the first quarter of 2010 compared to $22.4 million for the first quarter of 2009. The increase is primarily due to an increase in operating earnings of $9.3 million, which was partially offset by an increase in income tax expense of $3.9 million.
Liquidity and capital expenditures. In the first quarter of 2010, cash and cash equivalents increased by $50.2 million to $146.4 million at March 31, 2010. We generated cash from continuing operating activities of $139.5 million, compared to $83.1 million in the first quarter of 2009. Cash from continuing operating activities in the first quarter of 2010 and 2009 was positively affected by operating earnings, increases in accounts payable and decreases in accounts and notes receivable (due to improved collection efforts). Cash from continuing operating activities in 2010 also benefited from lower inventories versus higher inventories in 2009, which were primarily related to new business and the transition of the Burrows business. During the first quarter of 2010, we contributed $5.0 million to our defined benefit pension plan in conjunction with a plan of termination approved by the Board of Directors in December 2009. We expect to make additional contributions of approximately $3.0 to $8.0 million through the final termination, which is targeted to be in late 2010 or early 2011.
Cash used for investing activities increased to $7.9 million for the first quarter of 2010 from $1.1 million for the first quarter of 2009. Capital expenditures were $7.9 million in the first quarter of 2010, compared to $8.1 million in the same period of 2009, and primarily related to our strategic and operational efficiency initiatives, such as investments in leasehold improvements for our third-party logistics service and a relocated distribution center and investments in voice-pick technology. Cash used for investing activities for the first quarter of 2009 included the receipt of a $7.0 million purchase price adjustment related to the Burrows acquisition.
Cash used for financing activities in the first quarter of 2010 was $80.9 million, compared to $156.5 million used in the first quarter of 2009. During the first quarter of 2010, cash from continuing operations was used to pay dividends and reduce drafts payable. During the first quarter of 2009, cash from operating activities of continuing and discontinued operations, along with $63.0 million of proceeds from the sale of the DTC business, was used to reduce our net borrowings under the revolving credit facility by $146.5 million and to pay dividends. Dividends paid were $11.1 million for the first quarter of 2010, an increase from $9.5 million for the first quarter of 2009.
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