Virginia (State or other jurisdiction of incorporation or organization) 4800 Cox Road, Glen Allen, Virginia (Address of principal executive offices) |
54-01701843 (I.R.S. Employer
Identification No.) 23060 (Zip Code)
|
Title of each class |
Name of each exchange on which registered | |
Common Stock, $2 par value |
New York Stock Exchange | |
Preferred Stock Purchase Rights |
New York Stock Exchange | |
8 1/2% Senior Subordinated Notes due 2011 |
Not Listed | |
$2.6875 Term Convertible Securities, Series A |
Not Listed |
1. |
The printed Annual Report and Form 10-K document contains graphs and photographs not incorporated into the electronic Form 10-K. |
2. |
Pages 1-15 and 17 of the printed document have not been included in the electronic document, as they do not contain items required by Form 10-K.
|
3. |
The 10-K cover sheet and index, presented on pages 57 and 58 of the printed document, have been repositioned to the front of the electronic document.
|
Item No. |
Page | |||
Part I |
||||
1. |
19-23 | |||
2. |
23 | |||
3. |
47 | |||
4. |
Submission of Matters to a Vote of Security Holders |
N/A | ||
Part II |
||||
5. |
Common Equity and Related Stockholder Matters |
56, 60 | ||
6. |
18 | |||
7. |
Analysis of Financial Condition and Results of Operations |
24-30 | ||
7A. |
Quantitative and Qualitative Disclosures about Market Risk |
29, 40 | ||
8. |
Financial Statements and Supplementary Data |
See Item 14 | ||
9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
N/A | ||
Part III |
||||
10. |
the Registrant |
(a), 16, 59 | ||
11. |
Executive Compensation |
(a) | ||
12. |
Security Ownership of Certain Beneficial Owners and Management |
(a) | ||
13. |
Certain Relationships and Related Transactions |
(a) | ||
Part IV |
||||
14. |
Exhibits, Financial Statement Schedules, and Reports on Form 8-K |
|||
a. |
for the Years Ended Dec. 31, 2001, Dec. 31, 2000 and Dec. 31, 1999
|
31 | ||
Dec. 31, 2001 and Dec. 31, 2000 |
32 | |||
Consolidated Statements of Cash Flows for the Years Ended Dec. 31, 2001, Dec. 31, 2000 and Dec. 31, 1999 |
33 | |||
Consolidated Statements of Changes in Shareholders Equity for the Years Ended Dec. 31, 2001, Dec. 31, 2000 and Dec. 31, 1999 |
34 | |||
Notes to Consolidated Financial Statements for the Years Ended Dec. 31, 2001, Dec. 31, 2000 and Dec. 31, 1999 |
35-54 | |||
55 | ||||
b. |
Reports on Form 8-K: |
None. | ||
c. |
The index to exhibits has been filed as separate pages of 2001 Form 10-K and is available to shareholders on request from the Secretary of the company at the principal
executive offices. |
(a) Part III will be incorporated by reference from the registrants 2002 Proxy Statement pursuant to instructions G(1)
and G(3) of the General Instructions to Form 10-K. |
/s/ G. Gilmer Minor, III G. Gilmer Minor, III |
Chairman and Chief Executive Officer and Director (Principal Executive Officer) | |
/s/ Jeffrey Kaczka Jeffrey Kaczka |
Senior Vice President and Chief Financial Officer (Principal
Financial Officer) | |
/s/ Olwen B. Cape Olwen B. Cape |
Vice President and Controller (Principal Accounting Officer) | |
/s/ A. Marshall Acuff, Jr. A. Marshall Acuff, Jr. |
Director | |
/s/ Henry A. Berling Henry A. Berling |
Director | |
/s/ Josiah Bunting, III Josiah Bunting, III |
Director | |
/s/ John T. Crotty John T. Crotty |
Director | |
/s/ James B. Farinholt, Jr. James B. Farinholt, Jr. |
Director | |
/s/ Vernard W. Henley Vernard W. Henley |
Director | |
/s/ Peter S. Redding Peter S. Redding |
Director | |
/s/ James E. Rogers James E. Rogers |
Director | |
/s/ James E. Ukrop James E. Ukrop |
Director | |
/s/ Anne Marie Whittemore Anne Marie Whittemore |
Director |
2001 |
2000 |
1999 |
1998 |
1997 |
||||||||||||||||
Summary of Operations: |
||||||||||||||||||||
Net sales |
$ |
3,814,994 |
|
$ |
3,503,583 |
|
$ |
3,194,134 |
|
$ |
3,090,048 |
|
$ |
3,124,062 |
| |||||
Income before extraordinary item(2)(3) |
$ |
30,103 |
|
$ |
33,088 |
|
$ |
27,979 |
|
$ |
20,145 |
|
$ |
24,320 |
| |||||
Per Common Share: |
||||||||||||||||||||
Income before extraordinary item basic |
$ |
0.90 |
|
$ |
1.01 |
|
$ |
0.86 |
|
$ |
0.56 |
|
$ |
0.60 |
| |||||
Income before extraordinary item diluted |
$ |
0.85 |
|
$ |
0.94 |
|
$ |
0.82 |
|
$ |
0.56 |
|
$ |
0.60 |
| |||||
Average number of shares outstanding basic |
|
33,368 |
|
|
32,712 |
|
|
32,574 |
|
|
32,488 |
|
|
32,048 |
| |||||
Average number of shares outstanding diluted |
|
40,387 |
|
|
39,453 |
|
|
39,098 |
|
|
32,591 |
|
|
32,129 |
| |||||
Cash dividends |
$ |
0.2725 |
|
$ |
0.2475 |
|
$ |
0.23 |
|
$ |
0.20 |
|
$ |
0.18 |
| |||||
Stock price at year end |
$ |
18.50 |
|
$ |
17.75 |
|
$ |
8.94 |
|
$ |
15.75 |
|
$ |
14.50 |
| |||||
Book value at year end |
$ |
6.97 |
|
$ |
6.41 |
|
$ |
5.58 |
|
$ |
4.94 |
|
$ |
4.48 |
| |||||
Summary of Financial Position: |
||||||||||||||||||||
Working capital |
$ |
311,778 |
|
$ |
233,637 |
|
$ |
219,448 |
|
$ |
235,247 |
|
$ |
233,789 |
| |||||
Total assets |
$ |
953,853 |
|
$ |
867,548 |
|
$ |
865,000 |
|
$ |
717,768 |
|
$ |
712,563 |
| |||||
Long-term debt |
$ |
203,449 |
|
$ |
152,872 |
|
$ |
174,553 |
|
$ |
150,000 |
|
$ |
182,550 |
| |||||
Mandatorily redeemable preferred securities |
$ |
132,000 |
|
$ |
132,000 |
|
$ |
132,000 |
|
$ |
132,000 |
|
$ |
|
| |||||
Shareholders equity |
$ |
236,243 |
|
$ |
212,772 |
|
$ |
182,381 |
|
$ |
161,126 |
|
$ |
259,301 |
| |||||
Selected Ratios: |
||||||||||||||||||||
Gross margin as a percent of net sales |
|
10.7 |
% |
|
10.7 |
% |
|
10.7 |
% |
|
10.8 |
% |
|
10.4 |
% | |||||
Selling, general and administrative expenses as a percent of net sales |
|
7.8 |
% |
|
7.7 |
% |
|
7.8 |
% |
|
8.0 |
% |
|
7.8 |
% | |||||
Average receivable days sales outstanding(4) |
|
33.1 |
|
|
33.3 |
|
|
34.9 |
|
|
33.5 |
|
|
32.4 |
| |||||
Average inventory turnover |
|
9.7 |
|
|
9.5 |
|
|
9.2 |
|
|
9.8 |
|
|
9.9 |
| |||||
Return on average total equity before extraordinary item(5) |
|
9.6 |
% |
|
11.2 |
% |
|
10.5 |
% |
|
8.2 |
% |
|
9.7 |
% | |||||
Return on average total equity before extraordinary item(6) |
|
13.4 |
% |
|
16.7 |
% |
|
16.3 |
% |
|
9.6 |
% |
|
9.7 |
% | |||||
Current ratio |
|
1.8 |
|
|
1.6 |
|
|
1.6 |
|
|
1.9 |
|
|
1.9 |
| |||||
Capitalization ratio(4)(5) |
|
42.6 |
% |
|
40.4 |
% |
|
47.2 |
% |
|
43.4 |
% |
|
53.0 |
% | |||||
Capitalization ratio(4)(6) |
|
63.2 |
% |
|
63.2 |
% |
|
69.4 |
% |
|
68.9 |
% |
|
53.0 |
% | |||||
(1) |
On July 30, 1999, the company acquired certain net assets of Medix, Inc. This acquisition was accounted for as a purchase. |
(2) |
In 1998, the company incurred $11.2 million, or $6.6 million after taxes, of nonrecurring restructuring expenses which are included in income before extraordinary item. In
2001, 2000 and 1999, income before extraordinary item included reductions in the restructuring accrual of $1.5 million, $0.8 million and $1.0 million, or $0.8 million, $0.4 million and $0.6 million after taxes. See Note 3 to the Consolidated
Financial Statements. |
(3) |
In 2001, income before extraordinary item included an impairment loss of $1.1 million on an investment in marketable equity securities and a provision for disallowed income
tax deductions of $7.2 million. See Notes 6 and 14 to the Consolidated Financial Statements. |
(4) |
Assumes that receivables had not been sold under the companys off balance sheet receivables financing facility. See Note 9 to the Consolidated Financial Statements.
|
(5) |
Includes mandatorily redeemable preferred securities as equity. |
(6) |
Includes mandatorily redeemable preferred securities as debt. |
|
CostTrack: This activity-based management program helps customers identify and track the cost drivers in their procurement and handling activities, giving them
the information they need to drive workflow efficiencies, raise employee productivity and cut costs. With CostTrack, the pricing of services provided to customers is based on the variety of services that they choose, as compared to a
traditional cost-plus pricing model. In 2001, almost 28% of the companys net sales were generated through the CostTrack program, up from 22% in 2000. |
|
WISDOM: This Internet-accessed decision support tool connects customers, suppliers and GPOs to the companys data warehouse. WISDOM offers customers online
access to a wide variety of reports, which summarize their purchase history, contract compliance, product usage and other related data. This timely information helps customers consolidate purchasing information across their healthcare systems and
identify opportunities for product standardization, contract compliance and supplier consolidation. The company offers WISDOM on a subscription basis. WISDOM users represented net sales of approximately $1.5 billion for the year ended December 31,
2001. |
|
WISDOM2: The second generation of WISDOM, this Internet-based decision support tool provides customers access to purchasing information for all medical/surgical manufacturers and suppliers recorded in
their materials management information systems. This timely information helps customers identify opportunities for product standardization, contract compliance, order optimization and efficiencies in their overall purchasing activity.
|
|
PANDAC Wound Closure Asset Management Program: This information-based program provides customers with an evaluation of their current and historical wound closure
inventories and usage levels, helping them reduce their investment in high-cost wound management supplies and control their costs per operative case. |
|
Focus On Consolidation, Utilization & Standardization (FOCUS): This supplier partnership program drives product standardization and consolidation, increasing
the volume of purchases from the most efficient suppliers, which provides operational benefits and cost savings throughout the supply chain. FOCUS centers around both commodity and preference product standardization. O&M requires its FOCUS
supplier partners to meet strict certification standards, such as exceeding minimum fill rates and offering a flexible returned goods policy. |
Year ended December 31, 2001 | |||||||||||
As reported |
Unusual items |
Excluding unusual items | |||||||||
Income before income taxes and extraordinary item |
$ |
64,577 |
|
$ |
405 |
|
$ |
64,172 | |||
Income tax provision |
|
34,474 |
|
|
7,817 |
|
|
26,657 | |||
Income before extraordinary item |
|
30,103 |
|
|
(7,412 |
) |
|
37,515 | |||
Extraordinary loss on early retirement of debt |
|
(7,068 |
) |
|
(7,068 |
) |
|
| |||
Net income |
$ |
23,035 |
|
$ |
(14,480 |
) |
$ |
37,515 | |||
Per common share diluted: |
|||||||||||
Income before extraordinary item |
$ |
0.85 |
|
$ |
(0.18 |
) |
$ |
1.03 | |||
Extraordinary loss on early retirement of debt |
|
(0.17 |
) |
|
(0.17 |
) |
|
| |||
Net income |
$ |
0.68 |
|
$ |
(0.35 |
) |
$ |
1.03 | |||
Year ended December 31, 2000 | |||||||||||
As reported |
Unusual items |
Excluding unusual items | |||||||||
Income before income taxes |
$ |
60,160 |
|
$ |
750 |
|
$ |
59,410 | |||
Income tax provision |
|
27,072 |
|
|
338 |
|
|
26,734 | |||
Net income |
$ |
33,088 |
|
$ |
412 |
|
$ |
32,676 | |||
Net income per diluted common share |
$ |
0.94 |
|
$ |
0.01 |
|
$ |
0.93 | |||
Year ended December 31, 1999 | |||||||||||
As reported |
Unusual items |
Excluding unusual items | |||||||||
Income before income taxes |
$ |
50,058 |
|
$ |
1,000 |
|
$ |
49,058 | |||
Income tax provision |
|
22,079 |
|
|
441 |
|
|
21,638 | |||
Net income |
$ |
27,979 |
|
$ |
559 |
|
$ |
27,420 | |||
Net income per diluted common share |
$ |
0.82 |
|
$ |
0.02 |
|
$ |
0.80 | |||
Year ended December 31, |
2001 |
2000 |
1999 |
||||||
Net sales |
100.0 |
% |
100.0 |
% |
100.0 |
% | |||
Cost of goods sold |
89.3 |
|
89.3 |
|
89.3 |
| |||
Gross margin |
10.7 |
|
10.7 |
|
10.7 |
| |||
Selling, general and administrative expenses |
7.8 |
|
7.7 |
|
7.8 |
| |||
Depreciation and amortization |
0.6 |
|
0.6 |
|
0.6 |
| |||
Interest expense, net |
0.3 |
|
0.3 |
|
0.4 |
| |||
Discount on accounts receivable securitization |
0.1 |
|
0.2 |
|
0.1 |
| |||
Impairment loss on investment |
0.0 |
|
|
|
|
| |||
Distributions on mandatorily redeemable preferred securities |
0.2 |
|
0.2 |
|
0.2 |
| |||
Restructuring credit |
(0.0 |
) |
(0.0 |
) |
(0.0 |
) | |||
Total expenses |
9.0 |
|
9.0 |
|
9.1 |
| |||
Income before income taxes and extraordinary item |
1.7 |
|
1.7 |
|
1.6 |
| |||
Income tax provision |
0.9 |
|
0.8 |
|
0.7 |
| |||
Income before extraordinary item |
0.8 |
|
0.9 |
|
0.9 |
| |||
Extraordinary loss on early retirement of debt |
(0.2 |
) |
|
|
|
| |||
Net income |
0.6 |
% |
0.9 |
% |
0.9 |
% | |||
|
higher than normal activity levels related to customer sign-ups as a result of the Novation contract renewal, |
|
the addition of several large new customer accounts, and |
|
changes in the levels of service provided to certain customers, such as low unit-of-measure delivery. |
(in millions) |
|||||||||||||||
Payments due by period | |||||||||||||||
Contractual obligations |
Total |
Less than 1 year |
1-3 years |
4-5 years |
After 5 years | ||||||||||
Long-term debt |
$ |
200.0 |
|
$ |
|
$ |
|
$ |
$ |
200.0 | |||||
Mandatorily redeemable preferred securities |
|
132.0 |
|
|
|
|
|
|
|
132.0 | |||||
Leases and other commitments |
|
76.9 |
|
23.2 |
|
35.2 |
|
15.2 |
|
3.3 | |||||
Total contractual obligations |
$ |
408.9 |
$ |
23.2 |
$ |
35.2 |
$ |
15.2 |
$ |
335.3 | |||||
Year ended December 31, |
2001 |
2000 |
1999 |
|||||||||
Net sales |
$ |
3,814,994 |
|
$ |
3,503,583 |
|
$ |
3,194,134 |
| |||
Cost of goods sold |
|
3,406,758 |
|
|
3,127,911 |
|
|
2,851,556 |
| |||
Gross margin |
|
408,236 |
|
|
375,672 |
|
|
342,578 |
| |||
Selling, general and administrative expenses |
|
296,807 |
|
|
268,205 |
|
|
249,960 |
| |||
Depreciation and amortization |
|
22,469 |
|
|
21,515 |
|
|
19,365 |
| |||
Interest expense, net |
|
13,363 |
|
|
12,566 |
|
|
11,860 |
| |||
Discount on accounts receivable securitization |
|
4,330 |
|
|
6,881 |
|
|
5,240 |
| |||
Impairment loss on investment |
|
1,071 |
|
|
|
|
|
|
| |||
Distributions on mandatorily redeemable preferred securities |
|
7,095 |
|
|
7,095 |
|
|
7,095 |
| |||
Restructuring credit |
|
(1,476 |
) |
|
(750 |
) |
|
(1,000 |
) | |||
Total expenses |
|
343,659 |
|
|
315,512 |
|
|
292,520 |
| |||
Income before income taxes and extraordinary item |
|
64,577 |
|
|
60,160 |
|
|
50,058 |
| |||
Income tax provision |
|
34,474 |
|
|
27,072 |
|
|
22,079 |
| |||
Income before extraordinary item |
|
30,103 |
|
|
33,088 |
|
|
27,979 |
| |||
Extraordinary loss on early retirement of debt, net of tax benefit |
|
(7,068 |
) |
|
|
|
|
|
| |||
Net income |
$ |
23,035 |
|
$ |
33,088 |
|
$ |
27,979 |
| |||
Per common share basic: |
||||||||||||
Income before extraordinary item |
$ |
0.90 |
|
$ |
1.01 |
|
$ |
0.86 |
| |||
Extraordinary loss, net of tax benefit |
|
(0.21 |
) |
|
|
|
|
|
| |||
Net income |
$ |
0.69 |
|
$ |
1.01 |
|
$ |
0.86 |
| |||
Per common share diluted: |
||||||||||||
Income before extraordinary item |
$ |
0.85 |
|
$ |
0.94 |
|
$ |
0.82 |
| |||
Extraordinary loss, net of tax benefit |
|
(0.17 |
) |
|
|
|
|
|
| |||
Net income |
$ |
0.68 |
|
$ |
0.94 |
|
$ |
0.82 |
| |||
Cash dividends per common share |
$ |
0.2725 |
|
$ |
0.2475 |
|
$ |
0.23 |
| |||
December 31, |
2001 |
2000 |
||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
953 |
|
$ |
626 |
| ||
Accounts and notes receivable, net |
|
264,235 |
|
|
261,905 |
| ||
Merchandise inventories |
|
389,504 |
|
|
315,570 |
| ||
Other current assets |
|
24,760 |
|
|
16,190 |
| ||
Total current assets |
|
679,452 |
|
|
594,291 |
| ||
Property and equipment, net |
|
25,257 |
|
|
24,239 |
| ||
Goodwill, net |
|
198,324 |
|
|
204,849 |
| ||
Other assets, net |
|
50,820 |
|
|
44,169 |
| ||
Total assets |
$ |
953,853 |
|
$ |
867,548 |
| ||
Liabilities and shareholders equity |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ |
286,656 |
|
$ |
291,507 |
| ||
Accrued payroll and related liabilities |
|
12,669 |
|
|
9,940 |
| ||
Deferred income taxes |
|
27,154 |
|
|
16,502 |
| ||
Other accrued liabilities |
|
41,195 |
|
|
42,705 |
| ||
Total current liabilities |
|
367,674 |
|
|
360,654 |
| ||
Long-term debt |
|
203,449 |
|
|
152,872 |
| ||
Accrued pension and retirement plans |
|
14,123 |
|
|
8,879 |
| ||
Deferred income taxes |
|
364 |
|
|
371 |
| ||
Total liabilities |
|
585,610 |
|
|
522,776 |
| ||
Company-obligated mandatorily redeemable preferred securities of subsidiary trust, holding solely convertible debentures of Owens & Minor, Inc. |
|
132,000 |
|
|
132,000 |
| ||
Shareholders equity |
||||||||
Preferred stock, par value $100 per share; authorized 10,000 shares Series A; |
||||||||
Participating Cumulative Preferred Stock; none issued |
|
|
|
|
|
| ||
Common stock, par value $2 per share; authorized 200,000 shares; issued and outstanding 33,885 shares and 33,180
shares |
|
67,770 |
|
|
66,360 |
| ||
Paid-in capital |
|
27,181 |
|
|
18,039 |
| ||
Retained earnings |
|
142,854 |
|
|
129,001 |
| ||
Accumulated other comprehensive loss |
|
(1,562 |
) |
|
(628 |
) | ||
Total shareholders equity |
|
236,243 |
|
|
212,772 |
| ||
Commitments and contingencies |
||||||||
Total liabilities and shareholders equity |
$ |
953,853 |
|
$ |
867,548 |
| ||
Year ended December 31, |
2001 |
2000 |
1999 |
|||||||||
Operating activities |
||||||||||||
Income before extraordinary item |
$ |
30,103 |
|
$ |
33,088 |
|
$ |
27,979 |
| |||
Adjustments to reconcile income before extraordinary item to cash provided by operating activities: |
||||||||||||
Depreciation and amortization |
|
22,469 |
|
|
21,515 |
|
|
19,365 |
| |||
Restructuring credit |
|
(1,476 |
) |
|
(750 |
) |
|
(1,000 |
) | |||
Impairment loss on investment |
|
1,071 |
|
|
|
|
|
|
| |||
Deferred income taxes |
|
11,268 |
|
|
(1,293 |
) |
|
8,236 |
| |||
Provision for LIFO reserve |
|
4,264 |
|
|
2,973 |
|
|
1,741 |
| |||
Provision for losses on accounts and notes receivable |
|
782 |
|
|
227 |
|
|
559 |
| |||
Sales of (collections of sold) accounts receivable, net |
|
(10,000 |
) |
|
(25,612 |
) |
|
30,612 |
| |||
Changes in operating assets and liabilities: |
||||||||||||
Accounts and notes receivable |
|
6,888 |
|
|
(9,593 |
) |
|
(30,131 |
) | |||
Merchandise inventories |
|
(78,198 |
) |
|
23,935 |
|
|
(42,397 |
) | |||
Accounts payable |
|
10,049 |
|
|
(14,783 |
) |
|
86,871 |
| |||
Net change in other current assets and current liabilities |
|
48 |
|
|
8,926 |
|
|
(11,232 |
) | |||
Other, net |
|
4,373 |
|
|
4,522 |
|
|
1,686 |
| |||
Cash provided by operating activities |
|
1,641 |
|
|
43,155 |
|
|
92,289 |
| |||
Investing activities |
||||||||||||
Net cash paid for acquisition of business |
|
|
|
|
|
|
|
(82,699 |
) | |||
Additions to property and equipment |
|
(10,147 |
) |
|
(8,005 |
) |
|
(8,933 |
) | |||
Additions to computer software |
|
(6,686 |
) |
|
(11,622 |
) |
|
(13,172 |
) | |||
Other, net |
|
(858 |
) |
|
(152 |
) |
|
(2,359 |
) | |||
Cash used for investing activities |
|
(17,691 |
) |
|
(19,779 |
) |
|
(107,163 |
) | |||
Financing activities |
||||||||||||
Net proceeds from issuance of long-term debt |
|
194,331 |
|
|
|
|
|
|
| |||
Payments to retire long-term debt |
|
(158,594 |
) |
|
|
|
|
|
| |||
Additions (reductions) to other debt, net |
|
(3,533 |
) |
|
(21,645 |
) |
|
25,178 |
| |||
Cash dividends paid |
|
(9,182 |
) |
|
(8,156 |
) |
|
(7,520 |
) | |||
Proceeds from exercise of stock options |
|
8,255 |
|
|
4,837 |
|
|
80 |
| |||
Other, net |
|
(14,900 |
) |
|
1,545 |
|
|
(2,741 |
) | |||
Cash provided by (used for) financing activities |
|
16,377 |
|
|
(23,419 |
) |
|
14,997 |
| |||
Net increase (decrease) in cash and cash equivalents |
|
327 |
|
|
(43 |
) |
|
123 |
| |||
Cash and cash equivalents at beginning of year |
|
626 |
|
|
669 |
|
|
546 |
| |||
Cash and cash equivalents at end of year |
$ |
953 |
|
$ |
626 |
|
$ |
669 |
| |||
Common Shares Outstanding |
Common Stock |
Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Total Shareholders Equity |
||||||||||||||||||
Balance December 31, 1998 |
32,618 |
|
$ |
65,236 |
|
$ |
12,280 |
|
$ |
83,610 |
|
$ |
|
|
$ |
161,126 |
| ||||||
|
|
| |||||||||||||||||||||
Net income |
|
27,979 |
|
|
27,979 |
| |||||||||||||||||
|
|
| |||||||||||||||||||||
Comprehensive income |
|
27,979 |
| ||||||||||||||||||||
|
|
| |||||||||||||||||||||
Issuance of restricted stock, net of forfeitures |
74 |
|
|
148 |
|
|
893 |
|
|
1,041 |
| ||||||||||||
Unearned compensation |
|
(454 |
) |
|
(454 |
) | |||||||||||||||||
Cash dividends |
|
(7,520 |
) |
|
(7,520 |
) | |||||||||||||||||
Exercise of stock options |
6 |
|
|
12 |
|
|
71 |
|
|
83 |
| ||||||||||||
Other |
13 |
|
|
26 |
|
|
100 |
|
|
126 |
| ||||||||||||
Balance December 31, 1999 |
32,711 |
|
|
65,422 |
|
|
12,890 |
|
|
104,069 |
|
|
|
|
|
182,381 |
| ||||||
|
|
| |||||||||||||||||||||
Net income |
|
33,088 |
|
|
33,088 |
| |||||||||||||||||
Other comprehensive income, net of tax: |
|||||||||||||||||||||||
Unrealized loss on investment |
|
(628 |
) |
|
(628 |
) | |||||||||||||||||
|
|
| |||||||||||||||||||||
Comprehensive income |
|
32,460 |
| ||||||||||||||||||||
|
|
| |||||||||||||||||||||
Issuance of restricted stock, net of forfeitures |
102 |
|
|
204 |
|
|
622 |
|
|
826 |
| ||||||||||||
Unearned compensation |
|
(139 |
) |
|
(139 |
) | |||||||||||||||||
Cash dividends |
|
(8,156 |
) |
|
(8,156 |
) | |||||||||||||||||
Exercise of stock options |
355 |
|
|
710 |
|
|
4,541 |
|
|
5,251 |
| ||||||||||||
Other |
12 |
|
|
24 |
|
|
125 |
|
|
149 |
| ||||||||||||
Balance December 31, 2000 |
33,180 |
|
|
66,360 |
|
|
18,039 |
|
|
129,001 |
|
|
(628 |
) |
|
212,772 |
| ||||||
|
|
| |||||||||||||||||||||
Net income |
|
23,035 |
|
|
23,035 |
| |||||||||||||||||
Other comprehensive income, net of tax: |
|||||||||||||||||||||||
Unrealized gain on investment |
|
272 |
|
|
272 |
| |||||||||||||||||
Reclassification of unrealized loss to net income |
|
642 |
|
|
642 |
| |||||||||||||||||
Minimum pension liability adjustment |
|
(1,848 |
) |
|
(1,848 |
) | |||||||||||||||||
|
|
| |||||||||||||||||||||
Comprehensive income |
|
22,101 |
| ||||||||||||||||||||
|
|
| |||||||||||||||||||||
Issuance of restricted stock, net of forfeitures |
55 |
|
|
110 |
|
|
813 |
|
|
923 |
| ||||||||||||
Unearned compensation |
|
(173 |
) |
|
(173 |
) | |||||||||||||||||
Cash dividends |
|
(9,182 |
) |
|
(9,182 |
) | |||||||||||||||||
Exercise of stock options |
696 |
|
|
1,392 |
|
|
9,237 |
|
|
10,629 |
| ||||||||||||
Other |
(46 |
) |
|
(92 |
) |
|
(735 |
) |
|
(827 |
) | ||||||||||||
Balance December 31, 2001 |
33,885 |
|
$ |
67,770 |
|
$ |
27,181 |
|
$ |
142,854 |
|
$ |
(1,562 |
) |
$ |
236,243 |
| ||||||
Exit Plan Provision |
Charges |
Adjustments |
Balance at December 31, 2001 | ||||||||||
Losses under lease commitments |
$ |
1,643 |
$ |
610 |
$ |
(296 |
) |
$ |
737 | ||||
Employee separations |
|
395 |
|
350 |
|
(45 |
) |
|
| ||||
Other |
|
685 |
|
410 |
|
(210 |
) |
|
65 | ||||
Total |
$ |
2,723 |
$ |
1,370 |
$ |
(551 |
) |
$ |
802 | ||||
Restructuring Provision |
Charges |
Adjustments |
Balance at December 31, 2001 | ||||||||||
Losses under lease commitments |
$ |
4,194 |
$ |
3,351 |
$ |
78 |
|
$ |
921 | ||||
Asset write-offs |
|
3,968 |
|
1,466 |
|
(1,653 |
) |
|
849 | ||||
Employee separations |
|
2,497 |
|
1,288 |
|
(1,209 |
) |
|
| ||||
Other |
|
541 |
|
99 |
|
(442 |
) |
|
| ||||
Total |
$ |
11,200 |
$ |
6,204 |
$ |
(3,226 |
) |
$ |
1,770 | ||||
December 31, |
2001 |
2000 |
||||||
Warehouse equipment |
$ |
24,906 |
|
$ |
24,012 |
| ||
Computer equipment |
|
36,449 |
|
|
34,137 |
| ||
Office equipment and other |
|
12,991 |
|
|
12,683 |
| ||
Leasehold improvements |
|
11,440 |
|
|
10,540 |
| ||
Land and improvements |
|
5,065 |
|
|
1,743 |
| ||
|
90,851 |
|
|
83,115 |
| |||
Accumulated depreciation and amortization |
|
(65,594 |
) |
|
(58,876 |
) | ||
Property and equipment, net |
$ |
25,257 |
|
$ |
24,239 |
| ||
December 31, |
2001 |
2000 |
|||||
Fair value |
$ |
627 |
$ |
175 |
| ||
Gross unrealized gain (loss) |
|
476 |
|
(1,047 |
) | ||
Adjusted cost basis |
|
151 |
|
1,222 |
| ||
December 31, |
2001 |
2000 |
||||||||||||
Carrying Amount |
Estimated Fair Value |
Carrying Amount |
Estimated Fair Value |
|||||||||||
8.5% Senior Subordinated Notes, $200 million par value, mature July 2011 |
$ |
203,449 |
$ |
210,000 |
$ |
|
|
$ |
|
| ||||
10.875% Senior Subordinated Notes, $150 million par value, retired in 2001 |
|
|
|
|
|
150,000 |
|
|
156,375 |
| ||||
Revolving Credit Facility with interest based on London Interbank Offered Rate (LIBOR) or Prime Rate, expires April 2003, credit
limit of $225,000 |
|
|
|
|
|
2,200 |
|
|
2,200 |
| ||||
Obligation under software financing agreement |
|
|
|
|
|
1,333 |
|
|
1,333 |
| ||||
Total debt |
|
203,449 |
|
210,000 |
|
153,533 |
|
|
159,908 |
| ||||
Less current maturities |
|
|
|
|
|
(661 |
) |
|
(661 |
) | ||||
Long-term debt |
$ |
203,449 |
$ |
210,000 |
$ |
152,872 |
|
$ |
159,247 |
| ||||
2001 |
2000 |
1999 | ||||||||||||||||
Options |
Average Exercise Price |
Options |
Average Exercise Price |
Options |
Average Exercise Price | |||||||||||||
Options outstanding at beginning of year |
2,503 |
|
$ |
12.82 |
2,448 |
|
$ |
13.75 |
2,001 |
|
$ |
13.78 | ||||||
Granted |
480 |
|
|
16.03 |
500 |
|
|
8.73 |
600 |
|
|
13.70 | ||||||
Exercised |
(696 |
) |
|
13.01 |
(358 |
) |
|
13.57 |
(6 |
) |
|
12.68 | ||||||
Expired/cancelled |
(68 |
) |
|
11.56 |
(87 |
) |
|
12.38 |
(147 |
) |
|
13.66 | ||||||
Outstanding at end of year |
2,219 |
|
$ |
13.46 |
2,503 |
|
$ |
12.82 |
2,448 |
|
$ |
13.75 | ||||||
Exercisable options at end of year |
1,413 |
|
$ |
13.56 |
1,655 |
|
$ |
13.75 |
1,560 |
|
$ |
13.83 | ||||||
Outstanding |
Exercisable | |||||||||||||
Range of Exercise Prices |
Number of Options (000s) |
Weighted Average Exercise Price |
Weighted Average Remaining Contractual Life (Years) |
Number of Options (000s) |
Weighted Average Exercise Price |
Weighted Average Remaining Contractual Life (Years) | ||||||||
$8.31 11.94 |
460 |
$ |
8.92 |
7.65 |
206 |
$ |
9.54 |
7.13 | ||||||
$12.56 14.69 |
987 |
$ |
13.72 |
5.71 |
873 |
$ |
13.64 |
5.53 | ||||||
$15.42 19.00 |
772 |
$ |
15.84 |
4.95 |
334 |
$ |
15.83 |
3.35 | ||||||
2,219 |
$ |
13.46 |
5.85 |
1,413 |
$ |
13.56 |
5.25 | |||||||
Pension Plan |
Retirement Plan |
|||||||||||||||
December 31, |
2001 |
2000 |
2001 |
2000 |
||||||||||||
Change in benefit obligation |
||||||||||||||||
Benefit obligation, beginning of year |
$ |
23,053 |
|
$ |
22,518 |
|
$ |
11,519 |
|
$ |
5,888 |
| ||||
Service cost |
|
193 |
|
|
224 |
|
|
567 |
|
|
466 |
| ||||
Interest cost |
|
1,518 |
|
|
1,540 |
|
|
878 |
|
|
604 |
| ||||
Amendment |
|
|
|
|
|
|
|
|
|
|
3,574 |
| ||||
Actuarial loss (gain) |
|
(965 |
) |
|
142 |
|
|
1,994 |
|
|
1,197 |
| ||||
Benefits paid |
|
(1,131 |
) |
|
(1,371 |
) |
|
(241 |
) |
|
(210 |
) | ||||
Benefit obligation, end of year |
$ |
22,668 |
|
$ |
23,053 |
|
$ |
14,717 |
|
$ |
11,519 |
| ||||
Change in plan assets |
||||||||||||||||
Fair value of plan assets, beginning of year |
$ |
24,764 |
|
$ |
27,785 |
|
|
$ |
|
$ |
|
| ||||
Actual return on plan assets |
|
(2,179 |
) |
|
(1,650 |
) |
|
|
|
|
|
| ||||
Employer contribution |
|
|
|
|
|
|
|
241 |
|
|
210 |
| ||||
Benefits paid |
|
(1,131 |
) |
|
(1,371 |
) |
|
(241 |
) |
|
(210 |
) | ||||
Fair value of plan assets, end of year |
$ |
21,454 |
|
$ |
24,764 |
|
|
$ |
|
$ |
|
| ||||
Funded status |
||||||||||||||||
Funded status at December 31 |
$ |
(1,214 |
) |
$ |
1,711 |
|
$ |
(14,717 |
) |
$ |
(11,519 |
) | ||||
Unrecognized net actuarial (gain) loss |
|
3,050 |
|
|
(294 |
) |
|
3,767 |
|
|
1,830 |
| ||||
Unrecognized prior service cost |
|
|
|
|
|
|
|
2,972 |
|
|
3,254 |
| ||||
Unrecognized net transition obligation |
|
|
|
|
|
|
|
41 |
|
|
82 |
| ||||
Net amount recognized |
$ |
1,836 |
|
$ |
1,417 |
|
$ |
(7,937 |
) |
$ |
(6,353 |
) | ||||
Amounts recognized in the consolidated balance sheets |
||||||||||||||||
Prepaid (accrued) benefit cost |
$ |
(1,214 |
) |
$ |
1,417 |
|
$ |
(10,981 |
) |
$ |
(8,255 |
) | ||||
Intangible asset |
|
|
|
|
|
|
|
3,013 |
|
|
1,902 |
| ||||
Accumulated other comprehensive loss |
|
3,050 |
|
|
|
|
|
31 |
|
|
|
| ||||
Net amount recognized |
$ |
1,836 |
|
$ |
1,417 |
|
$ |
(7,937 |
) |
$ |
(6,353 |
) | ||||
Year ended December 31, |
2001 |
2000 |
1999 |
|||||||||
Service cost |
$ |
760 |
|
$ |
690 |
|
$ |
767 |
| |||
Interest cost |
|
2,396 |
|
|
2,144 |
|
|
1,876 |
| |||
Expected return on plan assets |
|
(2,130 |
) |
|
(2,026 |
) |
|
(1,811 |
) | |||
Amortization of prior service cost (benefit) |
|
282 |
|
|
133 |
|
|
(16 |
) | |||
Amortization of transition obligation |
|
41 |
|
|
41 |
|
|
41 |
| |||
Recognized net actuarial loss |
|
56 |
|
|
2 |
|
|
84 |
| |||
Net periodic pension cost |
$ |
1,405 |
|
$ |
984 |
|
$ |
941 |
| |||
Year ended December 31, |
2001 |
2000 |
1999 | |||||||
Current tax provision: |
||||||||||
Federal |
$ |
18,974 |
$ |
23,604 |
|
$ |
11,724 | |||
State |
|
4,232 |
|
4,761 |
|
|
2,119 | |||
Total current provision |
|
23,206 |
|
28,365 |
|
|
13,843 | |||
Deferred tax provision (benefit): |
||||||||||
Federal |
|
9,859 |
|
(1,131 |
) |
|
7,206 | |||
State |
|
1,409 |
|
(162 |
) |
|
1,030 | |||
Total deferred provision (benefit) |
|
11,268 |
|
(1,293 |
) |
|
8,236 | |||
Total income tax provision |
$ |
34,474 |
$ |
27,072 |
|
$ |
22,079 | |||
Year ended December 31, |
2001 |
2000 |
1999 |
||||||
Federal statutory rate |
35.0 |
% |
35.0 |
% |
35.0 |
% | |||
Increases in the rate resulting from: |
|||||||||
State income taxes, net of federal income tax impact |
4.8 |
|
5.5 |
|
5.5 |
| |||
Provision for tax contingencies |
11.1 |
|
|
|
|
| |||
Nondeductible goodwill amortization |
2.4 |
|
2.5 |
|
3.0 |
| |||
Other, net |
0.1 |
|
2.0 |
|
0.6 |
| |||
Effective rate |
53.4 |
% |
45.0 |
% |
44.1 |
% | |||
December 31, |
2001 |
2000 |
||||||
Deferred tax assets: |
||||||||
Allowance for doubtful accounts |
$ |
2,118 |
|
$ |
2,567 |
| ||
Accrued liabilities not currently deductible |
|
3,919 |
|
|
3,979 |
| ||
Employee benefit plans |
|
6,051 |
|
|
4,214 |
| ||
Restructuring accrual |
|
708 |
|
|
1,416 |
| ||
Property and equipment |
|
970 |
|
|
201 |
| ||
Tax loss carryforward, net |
|
|
|
|
205 |
| ||
Investment |
|
|
|
|
419 |
| ||
Other |
|
1,152 |
|
|
1,301 |
| ||
Total deferred tax assets |
|
14,918 |
|
|
14,302 |
| ||
Deferred tax liabilities: |
||||||||
Merchandise inventories |
|
34,218 |
|
|
25,133 |
| ||
Accounts receivable |
|
|
|
|
700 |
| ||
Goodwill |
|
2,839 |
|
|
2,080 |
| ||
Computer software |
|
3,653 |
|
|
2,422 |
| ||
Other |
|
1,726 |
|
|
840 |
| ||
Total deferred tax liabilities |
|
42,436 |
|
|
31,175 |
| ||
Net deferred tax liability |
$ |
(27,518 |
) |
$ |
(16,873 |
) | ||
Year ended December 31, |
2001 |
2000 |
1999 | ||||||
Numerator: |
|||||||||
Numerator for income per basic common share before extraordinary item income before extraordinary item |
$ |
30,103 |
$ |
33,088 |
$ |
27,979 | |||
Distributions on convertible mandatorily redeemable preferred securities, net of taxes |
|
4,257 |
|
3,902 |
|
3,966 | |||
Numerator for income per diluted common share before extraordinary item income before extraordinary item after assumed
conversions |
$ |
34,360 |
$ |
36,990 |
$ |
31,945 | |||
Denominator: |
|||||||||
Denominator for income per basic common share before extraordinary item weighted average shares |
|
33,368 |
|
32,712 |
|
32,574 | |||
Effect of dilutive securities: |
|||||||||
Conversion of mandatorily redeemable preferred securities |
|
6,400 |
|
6,400 |
|
6,400 | |||
Stock options and restricted stock |
|
619 |
|
341 |
|
124 | |||
Denominator for income per diluted common share before extraordinary item adjusted weighted average shares and assumed
conversions |
|
40,387 |
|
39,453 |
|
39,098 | |||
Income per basic common share before extraordinary item |
$ |
0.90 |
$ |
1.01 |
$ |
0.86 | |||
Income per diluted common share before extraordinary item |
$ |
0.85 |
$ |
0.94 |
$ |
0.82 | |||
Unrealized Gain/(Loss) on Investment |
Minimum Pension Liability Adjustment |
Accumulated Other Comprehensive Loss |
||||||||||
Balance December 31, 1999 |
$ |
|
|
$ |
|
|
$ |
|
| |||
2000 change, gross |
|
(1,047 |
) |
|
|
|
|
(1,047 |
) | |||
Income tax benefit |
|
419 |
|
|
|
|
|
419 |
| |||
Balance December 31, 2000 |
|
(628 |
) |
|
|
|
|
(628 |
) | |||
2001 change, gross |
|
1,523 |
|
|
(3,081 |
) |
|
(1,558 |
) | |||
Income tax benefit (expense) |
|
(609 |
) |
|
1,233 |
|
|
624 |
| |||
Balance December 31, 2001 |
$ |
286 |
|
$ |
(1,848 |
) |
$ |
(1,562 |
) | |||
Total | |||
2002 |
$ |
22,737 | |
2003 |
|
19,497 | |
2004 |
|
14,769 | |
2005 |
|
10,061 | |
2006 |
|
5,153 | |
Later years |
|
3,264 | |
Total minimum payments |
$ |
75,481 | |
Year ended December 31, 2001 |
Owens & Minor, Inc. |
Guarantor Subsidiaries |
Non-guarantor Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Statements of Operations |
||||||||||||||||||||
Net sales |
$ |
|
|
$ |
3,814,994 |
|
$ |
|
|
$ |
|
|
$ |
3,814,994 |
| |||||
Cost of goods sold |
|
|
|
|
3,406,758 |
|
|
|
|
|
|
|
|
3,406,758 |
| |||||
Gross margin |
|
|
|
|
408,236 |
|
|
|
|
|
|
|
|
408,236 |
| |||||
Selling, general and administrative expenses |
|
|
|
|
296,072 |
|
|
735 |
|
|
|
|
|
296,807 |
| |||||
Depreciation and amortization |
|
|
|
|
22,469 |
|
|
|
|
|
|
|
|
22,469 |
| |||||
Interest expense, net |
|
17,698 |
|
|
(4,335 |
) |
|
|
|
|
|
|
|
13,363 |
| |||||
Intercompany interest expense, net |
|
(15,849 |
) |
|
34,333 |
|
|
(18,484 |
) |
|
|
|
|
|
| |||||
Intercompany dividend income |
|
(127,857 |
) |
|
|
|
|
|
|
|
127,857 |
|
|
|
| |||||
Discount on accounts receivable securitization |
|
|
|
|
13 |
|
|
4,317 |
|
|
|
|
|
4,330 |
| |||||
Impairment loss on investment |
|
1,071 |
|
|
|
|
|
|
|
|
|
|
|
1,071 |
| |||||
Distributions on mandatorily redeemable preferred securities |
|
|
|
|
|
|
|
7,095 |
|
|
|
|
|
7,095 |
| |||||
Restructuring credit |
|
|
|
|
(1,476 |
) |
|
|
|
|
|
|
|
(1,476 |
) | |||||
Total expenses |
|
(124,937 |
) |
|
347,076 |
|
|
(6,337 |
) |
|
127,857 |
|
|
343,659 |
| |||||
Income before income taxes and extraordinary item |
|
124,937 |
|
|
61,160 |
|
|
6,337 |
|
|
(127,857 |
) |
|
64,577 |
| |||||
Income tax provision (benefit) |
|
(1,005 |
) |
|
32,677 |
|
|
2,802 |
|
|
|
|
|
34,474 |
| |||||
Income before extraordinary item |
|
125,942 |
|
|
28,483 |
|
|
3,535 |
|
|
(127,857 |
) |
|
30,103 |
| |||||
Extraordinary loss on early retirement of debt, net of tax benefit |
|
(7,068 |
) |
|
|
|
|
|
|
|
|
|
|
(7,068 |
) | |||||
Net income |
$ |
118,874 |
|
$ |
28,483 |
|
$ |
3,535 |
|
$ |
(127,857 |
) |
$ |
23,035 |
| |||||
Year ended December 31, 2000 |
Owens & Minor, Inc. |
Guarantor Subsidiaries |
Non-guarantor Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||
Statements of Operations |
||||||||||||||||||
Net sales |
$ |
|
|
$ |
3,503,583 |
|
$ |
|
|
$ |
$ |
3,503,583 |
| |||||
Cost of goods sold |
|
|
|
|
3,127,911 |
|
|
|
|
|
|
3,127,911 |
| |||||
Gross margin |
|
|
|
|
375,672 |
|
|
|
|
|
|
375,672 |
| |||||
Selling, general and administrative expenses |
|
137 |
|
|
266,684 |
|
|
1,384 |
|
|
|
268,205 |
| |||||
Depreciation and amortization |
|
|
|
|
21,515 |
|
|
|
|
|
|
21,515 |
| |||||
Interest expense, net |
|
17,869 |
|
|
(5,303 |
) |
|
|
|
|
|
12,566 |
| |||||
Intercompany interest expense, net |
|
(7,904 |
) |
|
30,520 |
|
|
(22,616 |
) |
|
|
|
| |||||
Discount on accounts receivable securitization |
|
|
|
|
15 |
|
|
6,866 |
|
|
|
6,881 |
| |||||
Distributions on mandatorily redeemable preferred securities |
|
|
|
|
|
|
|
7,095 |
|
|
|
7,095 |
| |||||
Restructuring credit |
|
|
|
|
(750 |
) |
|
|
|
|
|
(750 |
) | |||||
Total expenses |
|
10,102 |
|
|
312,681 |
|
|
(7,271 |
) |
|
|
315,512 |
| |||||
Income (loss) before income taxes |
|
(10,102 |
) |
|
62,991 |
|
|
7,271 |
|
|
|
60,160 |
| |||||
Income tax provision (benefit) |
|
(4,445 |
) |
|
27,841 |
|
|
3,676 |
|
|
|
27,072 |
| |||||
Net income (loss) |
$ |
(5,657 |
) |
$ |
35,150 |
|
$ |
3,595 |
|
|
$ |
33,088 |
| |||||
Year ended December 31, 1999 |
Owens & Minor, Inc. |
Guarantor Subsidiaries |
Non-guarantor Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||
Statements of Operations |
||||||||||||||||||
Net sales |
$ |
|
|
$ |
3,194,134 |
|
$ |
|
|
$ |
$ |
3,194,134 |
| |||||
Cost of goods sold |
|
|
|
|
2,851,556 |
|
|
|
|
|
|
2,851,556 |
| |||||
Gross margin |
|
|
|
|
342,578 |
|
|
|
|
|
|
342,578 |
| |||||
Selling, general and administrative expenses |
|
9 |
|
|
249,390 |
|
|
561 |
|
|
|
249,960 |
| |||||
Depreciation and amortization |
|
|
|
|
19,365 |
|
|
|
|
|
|
19,365 |
| |||||
Interest expense, net |
|
16,798 |
|
|
(4,938 |
) |
|
|
|
|
|
11,860 |
| |||||
Intercompany interest expense, net |
|
(6,976 |
) |
|
25,326 |
|
|
(18,350 |
) |
|
|
|
| |||||
Discount on accounts receivable securitization |
|
|
|
|
32 |
|
|
5,208 |
|
|
|
5,240 |
| |||||
Distributions on mandatorily redeemable preferred securities |
|
|
|
|
|
|
|
7,095 |
|
|
|
7,095 |
| |||||
Restructuring credit |
|
|
|
|
(1,000 |
) |
|
|
|
|
|
(1,000 |
) | |||||
Total expenses |
|
9,831 |
|
|
288,175 |
|
|
(5,486 |
) |
|
|
292,520 |
| |||||
Income (loss) before income taxes |
|
(9,831 |
) |
|
54,403 |
|
|
5,486 |
|
|
|
50,058 |
| |||||
Income tax provision (benefit) |
|
(4,326 |
) |
|
23,865 |
|
|
2,540 |
|
|
|
22,079 |
| |||||
Net income (loss) |
$ |
(5,505 |
) |
$ |
30,538 |
|
$ |
2,946 |
|
$ |
$ |
27,979 |
| |||||
December 31, 2001 |
Owens & Minor, Inc. |
Guarantor Subsidiaries |
Non-guarantor Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Balance Sheets |
||||||||||||||||||||
Assets |
||||||||||||||||||||
Current assets |
||||||||||||||||||||
Cash and cash equivalents |
$ |
507 |
|
$ |
445 |
|
$ |
1 |
|
$ |
|
|
$ |
953 |
| |||||
Accounts and notes receivable, net |
|
|
|
|
|
|
|
264,235 |
|
|
|
|
|
264,235 |
| |||||
Merchandise inventories |
|
|
|
|
389,504 |
|
|
|
|
|
|
|
|
389,504 |
| |||||
Intercompany advances, net |
|
173,802 |
|
|
58,161 |
|
|
(231,963 |
) |
|
|
|
|
|
| |||||
Other current assets |
|
17 |
|
|
24,743 |
|
|
|
|
|
|
|
|
24,760 |
| |||||
Total current assets |
|
174,326 |
|
|
472,853 |
|
|
32,273 |
|
|
|
|
|
679,452 |
| |||||
Property and equipment, net |
|
|
|
|
25,257 |
|
|
|
|
|
|
|
|
25,257 |
| |||||
Goodwill, net |
|
|
|
|
198,324 |
|
|
|
|
|
|
|
|
198,324 |
| |||||
Intercompany investments |
|
342,497 |
|
|
15,001 |
|
|
136,083 |
|
|
(493,581 |
) |
|
|
| |||||
Other assets, net |
|
13,708 |
|
|
36,110 |
|
|
1,002 |
|
|
|
|
|
50,820 |
| |||||
Total assets |
$ |
530,531 |
|
$ |
747,545 |
|
$ |
169,358 |
|
$ |
(493,581 |
) |
$ |
953,853 |
| |||||
Liabilities and shareholders equity |
||||||||||||||||||||
Current liabilities |
||||||||||||||||||||
Accounts payable |
$ |
|
|
$ |
286,656 |
|
$ |
|
|
$ |
|
|
$ |
286,656 |
| |||||
Accrued payroll and related liabilities |
|
|
|
|
12,669 |
|
|
|
|
|
|
|
|
12,669 |
| |||||
Deferred income taxes |
|
(4 |
) |
|
29,178 |
|
|
(2,020 |
) |
|
|
|
|
27,154 |
| |||||
Other accrued liabilities |
|
7,242 |
|
|
32,622 |
|
|
1,331 |
|
|
|
|
|
41,195 |
| |||||
Total current liabilities |
|
7,238 |
|
|
361,125 |
|
|
(689 |
) |
|
|
|
|
367,674 |
| |||||
Long-term debt |
|
203,449 |
|
|
|
|
|
|
|
|
|
|
|
203,449 |
| |||||
Intercompany long-term debt |
|
136,083 |
|
|
143,890 |
|
|
|
|
|
(279,973 |
) |
|
|
| |||||
Accrued pension and retirement plans |
|
|
|
|
14,123 |
|
|
|
|
|
|
|
|
14,123 |
| |||||
Deferred income taxes |
|
(755 |
) |
|
1,147 |
|
|
(28 |
) |
|
|
|
|
364 |
| |||||
Total liabilities |
|
346,015 |
|
|
520,285 |
|
|
(717 |
) |
|
(279,973 |
) |
|
585,610 |
| |||||
Company-obligated mandatorily redeemable preferred securities of subsidiary trust, holding solely convertible debentures of Owens
& Minor, Inc. |
|
|
|
|
|
|
|
132,000 |
|
|
|
|
|
132,000 |
| |||||
Shareholders equity |
||||||||||||||||||||
Common stock |
|
67,770 |
|
|
40,879 |
|
|
5,583 |
|
|
(46,462 |
) |
|
67,770 |
| |||||
Paid-in capital |
|
27,181 |
|
|
151,145 |
|
|
16,001 |
|
|
(167,146 |
) |
|
27,181 |
| |||||
Retained earnings |
|
89,279 |
|
|
37,084 |
|
|
16,491 |
|
|
|
|
|
142,854 |
| |||||
Accumulated other comprehensive income (loss) |
|
286 |
|
|
(1,848 |
) |
|
|
|
|
|
|
|
(1,562 |
) | |||||
Total shareholders equity |
|
184,516 |
|
|
227,260 |
|
|
38,075 |
|
|
(213,608 |
) |
|
236,243 |
| |||||
Total liabilities and shareholders equity |
$ |
530,531 |
|
$ |
747,545 |
|
$ |
169,358 |
|
$ |
(493,581 |
) |
$ |
953,853 |
| |||||
December 31, 2000 |
Owens & Minor, Inc. |
Guarantor Subsidiaries |
Non-guarantor Subsidiaries |
Eliminations |
Consolidated |
||||||||||||||
Balance Sheets |
|||||||||||||||||||
Assets |
|||||||||||||||||||
Current assets |
|||||||||||||||||||
Cash and cash equivalents |
$ |
507 |
|
$ |
118 |
$ |
1 |
|
$ |
|
|
$ |
626 |
| |||||
Accounts and notes receivable, net |
|
|
|
|
24,224 |
|
237,681 |
|
|
|
|
|
261,905 |
| |||||
Merchandise inventories |
|
|
|
|
315,570 |
|
|
|
|
|
|
|
315,570 |
| |||||
Intercompany advances, net |
|
129,447 |
|
|
79,645 |
|
(209,092 |
) |
|
|
|
|
|
| |||||
Other current assets |
|
17 |
|
|
16,173 |
|
|
|
|
|
|
|
16,190 |
| |||||
Total current assets |
|
129,971 |
|
|
435,730 |
|
28,590 |
|
|
|
|
|
594,291 |
| |||||
Property and equipment, net |
|
|
|
|
24,236 |
|
3 |
|
|
|
|
|
24,239 |
| |||||
Goodwill, net |
|
|
|
|
204,849 |
|
|
|
|
|
|
|
204,849 |
| |||||
Intercompany investments |
|
213,637 |
|
|
15,001 |
|
136,083 |
|
|
(364,721 |
) |
|
|
| |||||
Other assets, net |
|
8,735 |
|
|
35,157 |
|
277 |
|
|
|
|
|
44,169 |
| |||||
Total assets |
$ |
352,343 |
|
$ |
714,973 |
$ |
164,953 |
|
$ |
(364,721 |
) |
$ |
867,548 |
| |||||
Liabilities and shareholders equity |
|||||||||||||||||||
Current liabilities |
|||||||||||||||||||
Accounts payable |
$ |
|
|
$ |
291,507 |
$ |
|
|
$ |
|
|
$ |
291,507 |
| |||||
Accrued payroll and related liabilities |
|
|
|
|
9,940 |
|
|
|
|
|
|
|
9,940 |
| |||||
Deferred income taxes |
|
(85 |
) |
|
18,828 |
|
(2,241 |
) |
|
|
|
|
16,502 |
| |||||
Other accrued liabilities |
|
1,717 |
|
|
39,331 |
|
1,657 |
|
|
|
|
|
42,705 |
| |||||
Total current liabilities |
|
1,632 |
|
|
359,606 |
|
(584 |
) |
|
|
|
|
360,654 |
| |||||
Long-term debt |
|
152,200 |
|
|
672 |
|
|
|
|
|
|
|
152,872 |
| |||||
Intercompany long-term debt |
|
136,083 |
|
|
|
|
|
|
|
(136,083 |
) |
|
|
| |||||
Accrued pension and retirement plans |
|
|
|
|
8,879 |
|
|
|
|
|
|
|
8,879 |
| |||||
Deferred income taxes |
|
(930 |
) |
|
1,304 |
|
(3 |
) |
|
|
|
|
371 |
| |||||
Total liabilities |
|
288,985 |
|
|
370,461 |
|
(587 |
) |
|
(136,083 |
) |
|
522,776 |
| |||||
Company-obligated mandatorily redeemable preferred securities of subsidiary trust, holding solely convertible debentures of Owens
& Minor, Inc. |
|
|
|
|
|
|
132,000 |
|
|
|
|
|
132,000 |
| |||||
Shareholders equity |
|||||||||||||||||||
Common stock |
|
66,360 |
|
|
40,879 |
|
5,583 |
|
|
(46,462 |
) |
|
66,360 |
| |||||
Paid-in capital |
|
18,039 |
|
|
167,175 |
|
15,001 |
|
|
(182,176 |
) |
|
18,039 |
| |||||
Retained earnings (deficit) |
|
(20,413 |
) |
|
136,458 |
|
12,956 |
|
|
|
|
|
129,001 |
| |||||
Accumulated other comprehensive loss |
|
(628 |
) |
|
|
|
|
|
|
|
|
|
(628 |
) | |||||
Total shareholders equity |
|
63,358 |
|
|
344,512 |
|
33,540 |
|
|
(228,638 |
) |
|
212,772 |
| |||||
Total liabilities and shareholders equity |
$ |
352,343 |
|
$ |
714,973 |
$ |
164,953 |
|
$ |
(364,721 |
) |
$ |
867,548 |
| |||||
Year ended December 31, 2001 |
Owens & Minor, Inc. |
Guarantor Subsidiaries |
Non- guarantor Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Statements of Cash Flows |
||||||||||||||||||||
Operating Activities |
||||||||||||||||||||
Income before extraordinary item |
$ |
125,942 |
|
$ |
28,483 |
|
$ |
3,535 |
|
$ |
(127,857 |
) |
$ |
30,103 |
| |||||
Adjustments to reconcile income before extraordinary item to cash provided by (used for) operating activities: |
||||||||||||||||||||
Depreciation and amortization |
|
|
|
|
22,469 |
|
|
|
|
|
|
|
|
22,469 |
| |||||
Restructuring credit |
|
|
|
|
(1,476 |
) |
|
|
|
|
|
|
|
(1,476 |
) | |||||
Impairment loss on investment |
|
1,071 |
|
|
|
|
|
|
|
|
|
|
|
1,071 |
| |||||
Deferred income taxes |
|
256 |
|
|
10,816 |
|
|
196 |
|
|
|
|
|
11,268 |
| |||||
Provision for LIFO reserve |
|
|
|
|
4,264 |
|
|
|
|
|
|
|
|
4,264 |
| |||||
Provision for losses on accounts and notes receivable |
|
|
|
|
1,300 |
|
|
(518 |
) |
|
|
|
|
782 |
| |||||
Collections of sold accounts receivable |
|
|
|
|
|
|
|
(10,000 |
) |
|
|
|
|
(10,000 |
) | |||||
Changes in operating assets and liabilities: |
||||||||||||||||||||
Accounts and notes receivable |
|
|
|
|
22,924 |
|
|
(16,036 |
) |
|
|
|
|
6,888 |
| |||||
Merchandise inventories |
|
|
|
|
(78,198 |
) |
|
|
|
|
|
|
|
(78,198 |
) | |||||
Accounts payable |
|
|
|
|
10,049 |
|
|
|
|
|
|
|
|
10,049 |
| |||||
Net change in other current assets and current liabilities |
|
10,236 |
|
|
(10,112 |
) |
|
(76 |
) |
|
|
|
|
48 |
| |||||
Other, net |
|
3,100 |
|
|
1,248 |
|
|
25 |
|
|
|
|
|
4,373 |
| |||||
Cash provided by (used for) operating activities |
|
140,605 |
|
|
11,767 |
|
|
(22,874 |
) |
|
(127,857 |
) |
|
1,641 |
| |||||
Investing Activities |
||||||||||||||||||||
Additions to property and equipment |
|
|
|
|
(10,147 |
) |
|
|
|
|
|
|
|
(10,147 |
) | |||||
Additions to computer software |
|
|
|
|
(6,686 |
) |
|
|
|
|
|
|
|
(6,686 |
) | |||||
Decrease in intercompany investments, net |
|
15,030 |
|
|
|
|
|
|
|
|
(15,030 |
) |
|
|
| |||||
Investment in intercompany debt |
|
(143,890 |
) |
|
|
|
|
|
|
|
143,890 |
|
|
|
| |||||
Other, net |
|
|
|
|
139 |
|
|
(997 |
) |
|
|
|
|
(858 |
) | |||||
Cash used for investing activities |
|
(128,860 |
) |
|
(16,694 |
) |
|
(997 |
) |
|
128,860 |
|
|
(17,691 |
) | |||||
Financing Activities |
&nb |