Owens & Minor (OMI)

Risks

• Our operating income is dependent on certain significant domestic suppliers.
• 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 business.
• 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.
• Interruption of our supply chain could affect our ability to produce or distribute our products and could negatively impact our business and profitability.
• Our profitability and cash flow may vary based on the impacts of rising inflationary pressures.
• Our operations depend on the proper functioning of information systems, and our business or results of operations could be adversely affected if we experience a cyberattack or other systems breach or failure.
• Our ability to attract and retain talented and qualified teammates is critical to our success and competitiveness.
• We have concentration in and dependence on certain healthcare provider customers and Group Purchasing Organizations.
• We cannot assure you that the proposed Apria Acquisition will be completed.
• We may fail to realize the anticipated benefits of the Apria Acquisition or those benefits may take longer to realize than expected. We may also encounter significant difficulties in integrating the Apria business into our operations.
• We and the Apria business will be subject to business uncertainties while the Apria Acquisition is pending that could adversely affect our business and the Apria business.
• The pendency of the Apria Acquisition could adversely affect our business, financial results, and operations.
• 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.
• We are subject to stringent regulatory and licensing requirements.
• 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 business may be adversely affected if we are unable to adequately establish, maintain, protect and enforce our intellectual property and proprietary rights or prevent third parties from making unauthorized use of such rights.
• We may become subject to litigation brought by third parties claiming infringement, misappropriation or other violation by us of their intellectual property rights.
• 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.
• 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.
• We may not be able to generate sufficient cash to service our debt and other obligations.
• We may not be able to refinance, extend or repay our substantial indebtedness which would have a material adverse affect on our financial condition.
• Despite current indebtedness levels, we will incur substantially more debt to complete the acquisition of Apria, Inc. (Apria Acquisition) which could further exacerbate the risks described herein.
• Our variable rate indebtedness subjects us to interest rate risk, which could cause our indebtedness service obligations to increase significantly.
• Our credit facilities and our existing notes have restrictive covenants that could limit our financial flexibility.
• General economic conditions may adversely affect demand for our products and services.
• Changing conditions in the United States healthcare industry may impact our results of operations.
• Our continued success is substantially dependent on positive perceptions of our reputation.
• Our goodwill may become impaired, which would require us to record a significant charge to earnings in accordance with generally accepted accounting principles.
• We may be adversely affected by global climate change or by legal, regulatory or market responses to such change.