OMI Owens & Minor, Inc.

Risks

• We face competition and accelerating pricing pressure.
• We have significant concentration in and dependence on certain healthcare provider customers and Group Purchasing Organizations.
• Our operating income is dependent on certain significant domestic suppliers.
• Our results of operations may suffer upon the bankruptcy, insolvency, or other credit failure of a customer that has a substantial amount owed to us.
• Changing conditions in the United States healthcare industry may impact our results of operations.
• We may not be able to generate sufficient cash to service our debt and other obligations.
• Our credit facilities and our existing notes have restrictive covenants that could limit our financial flexibility.
• An interruption in the ability of our business to manufacture products may have a material adverse effect on our business.
• An inability to obtain key components, raw materials or manufactured products from third parties may have a material adverse effect on our Global Products segment.
• We may incur product liability losses, litigation liability, product recalls, safety alerts or regulatory action associated with the products that we source, assemble, manufacture and sell which can be costly and disruptive to our business.
• We must obtain clearance or approval from the appropriate regulatory authorities prior to introducing a new product or a modification to an existing product. The regulatory clearance process may result in substantial costs, delays and limitations on the types and uses of products we can bring to market, any of which could have a material adverse effect on our business.
• Our inability to adequately integrate acquisitions could have a material adverse effect on our operations.
• Our Global Products segment is exposed to price fluctuations of key commodities, which may negatively impact our results of operations.
• Our business and operations depend on the proper functioning of critical facilities, supply chain and distribution networks.
• Our investment in Fusion5 may continue to incur losses.
• We are subject to stringent regulatory and licensing requirements.
• Compliance with the terms and conditions of Byram’s Corporate Integrity Agreement requires significant resources and, if we fail to comply, we could be subject to penalties or excluded from participation in government healthcare programs, which could seriously harm our results of operations, liquidity and financial condition.
• General economic conditions may adversely affect demand for our products and services.
• We operate within the European Union and therefore may be affected by the United Kingdom's withdrawal from the European Union.
• Our continued success is substantially dependent on positive perceptions of our reputation.
• We may experience competition from third-party online commerce sites.
• Audits by tax authorities could result in additional tax payments for prior periods, and tax legislation could materially adversely affect our financial results and tax liabilities.
• Recent significant changes to our executive leadership team and any future loss of members of such team, and the resulting management transitions might harm our future operating results.
• Our goodwill may become impaired, which would require us to record a significant charge to earnings in accordance with generally accepted accounting principles.
• The market price for our common stock may be highly volatile.
• We cannot assure you that the proposed Movianto sale will be completed.
• We and the Movianto business will be subject to business uncertainties while the sale is pending that could adversely affect our business and the Movianto business.