Owens & Minor Change Leadership and Lower 2022 Earning Guidance

Owens & Minor today announced updates to its executive team and the lowering the earnings guidance for 2022. Leadership changes include the appointment of Andrew G. Long as EVP, CEO, products & healthcare services segment. He is replacing Jeffrey T. Jochims who is leaving the company. Additionally, Alexander J. Bruni has been promoted to EVP and CFO, replacing Long, who has served in the role since joining the company in November 2019.

“[Long] has been a great leader at Owens & Minor and I am looking forward to having [Long] in this role where his skillset will help drive the products & healthcare services segment to a stronger future,” said Edward A. Pesicka, company president and CEO. “[Long] is well prepared for these new responsibilities and has a track record of success — building a world-class finance organization, leading and strengthening our IT capabilities and developing and deploying the Owens & Minor Business System. [Long] has earned the confidence of myself and the board of directors as well our 20,000 teammates around the world and we are certain he is the right person for this role.”

Bruni joined the company in April 2020 and previously served as SVP of finance, first leading corporate FP&A, then continuing on to become the finance leader of the products & healthcare services segment, and most recently, the patient direct segment. Before joining the Owens & Minor team, Bruni previously served as CFO and COO of Centerline Communications and VP of Finance at Patheon.

“[Bruni] has successfully served as the operating CFO of each segment as well as leading our corporate FP&A function. This broad experience has given [Bruni] a view across the entire organization and a deep understanding of the global enterprise, preparing him very well for this new role,” Long said.

Along with announcing leadership changes, Owens & Minor provided preliminary results for Q322 and updated guidance for the full year of 2022. In Q322, the company expects to report GAAP net income per share in a range of $0.15 to $0.17 and an adjusted non-GAAP net income per share in a range of $0.39 to $0.41. The company also lowered its earnings guidance for 2022 and now expects an adjusted net income per share in a range of $2.85 to $3.15 for the full year and EBITDA ranging from $527 to $537 million. Previously, 2022 guidance was reported to be expected between $2.85 to $3.15 and an EBITDA of $570 to $610 million, resulting in an estimated $43 to $73 million decrease from initial projections.

“While the patient direct segment continues to perform well, the products & healthcare services segment is facing more pressures than previously expected with the unfavorable macro-economic conditions that show no signs of abating, along with elevated customer stocking levels and continued lower than expected hospital procedure volume. Accordingly, the pace of change at Owens & Minor must accelerate and I believe the leadership changes announced today will provide the company with the best opportunity to contend with these headwinds,” Pesicka said.

Owens & Minor plan to release its concrete financial results for Q322 on Nov. 2, prior to market open on the New York Stock Exchange.