OMI Owens & Minor

Trudi Allcott Director of Investor and Media Relations
Cody Phipps Chairman, President and Chief Executive Officer
Randy Meier President of International, Executive Vice President and Chief Financial Officer
Robert Jones Goldman Sachs
Erin Wright Credit Suisse
Sean Dodge Jefferies
Steven Valiquette Barclays
David Larsen Leerink
Eric Coldwell Baird
Call transcript
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Good morning, ladies and gentlemen, and welcome to the Owens & Minor's First Quarter 2018 Financial Results Conference Call. My name is Glenda, and I'll be your operator for today. At this time, all participants are in a listen-only mode.

We will be facilitating a question-and-answer session towards the end of this conference call. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. to call, presentation Ms. like host to now today's for would turn over the your I Trudi Allcott. Ms. proceed, Please Allcott.

Trudi Allcott

Thank you, before I'm operator. Owens Good the team, morning, everyone, and to like first on of read XXXX I and would & Harbor welcome quarter earnings begin. Allcott, call. statement Trudi Safe behalf the we Minor to the

S&IP and results and International, Officer more see and insight Cody provide business. Phipps, factors. of President our new call the the update overview our Chief financial are will financial in the our details Participating performance. comments subject morning In press release the from reference and risk discussion to of an business, of XXXX, those that could quarter risks CEO, GAAP who statements. today results the this for will Randy first our we measures. and website. of the on financial and and will press strategy Our non-GAAP our in reconciliations of provide In and Meier, on are these EVP acquisition forward-looking who And certain the be our today, our and included differ of filings discussion Information uncertainties on Halyard's are results Financial President the projected. measures actual materially course today, measures release. may cause our for included focused are our we full business of release most on information an financial Please these transactions, press which to statements our into about comparable our discussion a will to make posted SEC These Chairman,

turn the Phipps, over this I'd Cody? morning. who will like Cody start things off Now to to call

Cody Phipps

the details the comments the market the our which see I'll about Thank going in & of see acquisition were with for of the everyone. for our in opportunities excited continuing will morning, our and Randy closed taken to good a company and with quarter. Halyard's few Halyard the transaction marks Minor a results a into we global business Then week. Minor the discuss step and last I'll about combination of transformation We're us significant and S&IP the on new result for healthcare we you This S&IP the our Trudi, for potential and follow you, most transform business. company. the Owens & our on call today. joining begin Thank recent forward. steps Owens transaction true discussion more the

around the team's plans. world already future Our our the about executing hard are are at work and excited

the two boarding together combination immediate them Our Randy of in gives stronger Health. structure performance our Halyard with recently under new the financial most position believe his COO business our our with Japan, task will companies South our as Hipkins Solutions Stuart new in our products to of significant Chris clear of and trade is our by the teammates leverage to This sharp world. Australia. our of products We also around execution in units. organization. with business. us as a and the including the enhance leading transaction [ph] us channel for portfolio we market attractive opportunities our organization acquisition move grow Global the focus who's bringing portfolio new is and place the Halyard S&IP Halyard's SBUs for our Products combined and forward. Morris existing markets and Lowery SBU focus formed teams remarks. leading SBU execution of of organization gives new The on accountabilities we've growth business; and and President, S&IP Canada, and two largest To a President our Africa Owens combining history outline strategic & Global and exceptional in business two can the Minor our The The

briefly quarter distribution distribution space the our the in as results, comment business at environment. acute expenses. continue. US pressures expected in in challenges care the first Let resulting our higher looking [ph] in expected challenging Margin experienced we than our distribution on remains me time, same particularly At a US executional business

especially to our in business address thesis and shortfall our our global transportation in with higher incurred our a in distribution improve on we're boarding working also solutions we're And manufacturing expected challenges, proposition operations. adding leadership through value to and expectations. UK Our processes resources technologies and To than resulting cost centers. additional enhanced

throughout see both We these areas headwinds, sequential new to improvement Despite the of the fourth SBU steady improvement segments quarter. these in from year. showed our expect

initiatives first Byram's our a cost growth aggressively distribution which offset helping as our all company the continue demonstrated whole, work in the Additionally, and for quarter strong productivity on our revenue results are exceeding US business. headwinds expectation to to and we

Looking ahead, into by Halyard businesses. us business higher Byram the and the now moving business diversifying and strengthening margin are of our model and acquisitions growth S&IP higher

expanded brand care. thesis elaborate of point the product private this business through future Halyard include product channel. own me portfolio with proprietary the Two; QSight for additional Let point growth S&IP three portfolio centers opportunities. expanding Minor for Owens of technology combining product bundling One; our use complementary platform the solution our this, our our and of main solutions Good this for label and creating around this three; & on our own and at SurgiTrack products. a examples with growing perioperative

The completed just is and is we this in creating also excited integrate business momentum very a with products; progress health the to of health to our large home. directly Byram this reaching the aware, further XXXX making. enhance start is in accretive and to the that we're market you which expand S&IP proposition business earnings Byram growth. last August acquired IDNs you're and a to off This Halyard at opportunities across tell we we represents strategy team the good our channel off medical growing home see year accelerate this patients rapidly home is for can continuum that is pleased of start we're I great is to business. our a in what value acquisition care to but As for by to

in focused Lastly, performance we improving and our remain enterprise entire looking we operating our laser and on to do. reduce everything productivity across drive we're cost

effort we on are We're $XXX been put $XXX in this As that to we end going scale underway our that year it. the operating have These place million call believe all elements of annualized to within is and to in initiative. business a how achieve progress focus million income have matter continuing we're by contribution we that transformation measure the discussed, you XXXX. large last program no

owned While evolving the to more competitive market a ability through structure through attractive Minor's addition S&IP serve site environment cost with more challenging and to of unlikely initiatives. Owens is sustainable cost through alternate to is the access and products, Halyard Byram & the what abate, is products markets productivity changing greater our

looking nature we we business integrate focus provide the guidance results. our to S&IP work accretive Halyard to being call, teammates We announce forward Randy? required truly acquisition in That accretive new the financial all on based our welcome operating turn to the second S&IP increasingly this a teammates said, better With and confident be of results. company, combined Halyard SBU. to like amount nicely improving complex review carve-out We're this guidance to call intend closing, I'd of remain quarter financial to and outer the our Minor products era and Our These that, global results. strategy knowledgeable resourceful. into Randy our and but acquisition We the executing & new in to the on able had will together. to XXXX significant I'll our on that of anticipated family. years. when over skilled, remains In are the we're provide our Owens

Randy Meier

everyone. spend Halyard we with first of Cody about which S&IP to discussion on our like time and our talking the Today start good morning, you acquired XX. Thank business some then results I'd April the quarter and

For during trends year. and margin same the $XX.X first quarter compared for was quarter X.X% quarter, income the for quarter increased income the Consolidated million last cost the UK. operating last operating $XX.X higher discussed and as million to billion. year's Performance revenues consolidated the affected US $XX.X quarter. and the consolidated Adjusted was than in the million by $X.XX virtually price expected the ongoing previously and was

a net of per first for per reported lower effective income $X.XX adjusted million quarter net jurisdictions. income $X.X more The For or quarter, tax $X.XX $XX.X of the or reflecting rate in tax million adjusted we income favorable share XX.X% share. was the with

asset in with quarter, of rate measures of tax for will in mid-XXs. However, our to these metrics was management flow that to we in the of full include call mix with million a operations $XX.X quarter. consolidation year. of business quarter the our evolve from cash continues of the as And to S&IP compared last second effective We DSOs days consolidated be now Halyard for end turns million the expect with metrics balance adjust to the further line Byram adjusted million. both $XX.X our continue recent was inventory X.X the use trends times. business the Cash and year and were cash XX.X our at $XX.X first

into segments Products. strategic in As units. past, Global two and Global organized business business our we've the Solutions indicated we've

and For new Healthcare four Solutions' and former Byram your comprised Distributor domestic segments. today we solutions. convenience manufactured results our provider segments of business payer The and contains historical lines. have SBU the solutions SBU is X-K reporting an solutions, and solutions, containing Global the and includes filed international

to S&IP business our primarily operating a a the income compared which a was primarily as million include and compared Quarterly the due to as CPS or income quarter the Healthcare reminder The to $XXX in a products customer Quarterly year. year. beginning line. largely reflects quarter million in $X.XX second efficiencies in impact were year of global now The of manufacturing of represents million revenues segment income and quarter. million business will to Halyard contributed proprietary margin result and $X.X and $XXX Operating our included Global compared managed continuing combination XXXX US improved operational to businesses through $X.X the million CPS within in our billion payer the solutions the category operating in pressure, billion distribution was the $X.XX August, inefficiencies solutions the acquired decline $XX.X in revenues area a losses due cost for $XX to the solutions our million in prior were ago. underperformance UK. the revenues quarter. $XXX primarily now compared and business from increases in improved Global the business. Byram prior million Sourcing Global year Products year solutions former our Products CPS SBU ago warehouse in prior provider For

discussing April Now let's closed S&IP a XX. Halyard few spend on the minutes which transaction

addition growth our As further distribution portfolio leading of enhances sustainable, the the by and and of enables pursue we've Halyard and global capabilities. growth strategy the products infection its to ability world execute opportunities with surgical our achieve our to around us combining stated profitable prevention logistics and

transaction While is this carve-out. transaction and confident both complex is highly remain that we the strategically financially attractive,

service months Over & new around assets, six reflected The but accept financial the Minor the first the transition under to teams integration of manufacturing of begins, the in new teammates world footprint closing, or months. Well in for you significant X,XXX energy I'd we've the in in to the take real of only teammates, the services the and dedicated required time teammates, coming processes enable like infrastructure and all of the existing and TSAs done. now a tremendous partially and prepared from the has also process. work global be required the sales to added number our participated the align work the a process Halyard those number been global and a customers. on We'll carve-out to operating world and of agreements amount terms everyday more and boarding the who the But And enterprise results. who work Owens new and from moment thank existing importantly quarter clinical of volume backfilled expanded doubled our class create last for our both various over expertise.

do the first six plan the as significant work the we XXX will in As must be the days our over as effort integration last to a months. result

only not on our and be on expanding focus value Our integration, but for will customers. the delivering

TSAs and insight of as During transaction soon of this schedule we we're accretive expected to gain period, exit will to XXXX. visibility or ahead in initial realize In ability be expect synergies greater doing on into majority and that as the the so, the our this confident possible.

As synergies annual to remain billion initial approximately revenues our generated approximately incremental XX ability generated channel. already The be of through $XXX flows several upon areas. acquisition. million from gain previously the deliver of synergies revenue consolidation, in million are $X business in the next confident in S&IP of our expect discussed synergies the we $XX.X the balance of million over by to of with to the months. These $XX three in $XX first years achieved to expected million We

First; operating reduction cost of synergies expenses. expense overhead and and through consolidation corporate corporate the

to expect and logistics savings distribution expenses. achieve and We

of expected finally, and result generate as rates our increased improved allowing And of For a rates. of own and expect example, leveraging sourcing we our realize achieve of to services to for sourcing is strategic distribution result savings to common carrier we brand from as direct scale. our channels. should saving consolidate see In consolidating a shipment, volume global us various synergies

our On the group was of financed Term loan $XXX Term which loan. the financed institutionally with included a financing with an A and bank million acquisition B combination cash agreement debt. million $XXX amended recently on front, closed credit We and

this accretive well to as meaningfully approved period. to will for our turn forward. payment the going per increase manage the allow XXXX we and flow be a finally, the $X.XX as over questions. recently that, X% effectively will of leverage, board sheet operator And us improve earnings you quarter and believe year this our Operator? second While we'll over balance dividend acquisition the it with increase our cash prior Thank to share,


[Operator Michael the America. Instructions] our line Turney Bank from first question comes of of [ph] from

open. now is line Your

Unidentified Analyst

about business you're think but about, explain the attrition, you business we S&IP. customer terms the know some providing maybe the that want of going as is business, on should least head not pricing, work if year. noise growing maybe puts headwinds tailwinds I can market into you of comp on the you we guidance traditional it get would there's some say, you expect the as about to of absent in are this can you've had at course I you all of what integrate takes over talk to and can some if Maybe year, sense this effects, the recent where S&IP the I have? of as currently base whatever just be a how especially so with distribution that the talk

Cody Phipps

to Yes, Michael let me take that and then I'll ask comment. Randy

challenges headwinds the and out think I working we continue, some we've then international that expect a space expect distribution pressure space. First, the we've primary from still I margin seen headwind call standpoint, be as that the in in segment. through acute been would that headwind clear in to to our - we so the

the this excited On we've the about diversify and our steps very business excited, tailwind to of part we're taken strengthen and we're model. where

from we benefits it's more Byram bring excited we're alternate growing our to going and the have Halyard own market. the it's and platform most. for allowing us there to brand access we S&IP expect And forward, one than very is, second see about products is going the how obviously, attractive site headroom So acquisition

our So to I working the sustainability see the distribution we both those tailwinds margins hard would in we're Randy? very expect obviously of as and call areas out improve to of where business.

Randy Meier

Mike. Sure,

know, up XXXX. performed in said ongoing the we've the activities challenges reasonably start I been and XXXX distribution and what highlighting we formally very transformation think core Cody and business the pretty to in - as in of it well nicely call that are you'll some the

the business transformation new going showing. to when of the you positive global are and the the business Byram think of captured solutions our be core in I with they're these activities the put a together and distribution lot segments, With consolidation results activity,

I to was to quarter quarter, in last see which the outlook looking reasonable in fourth think I'd for our going we admittedly performance great have we and but what more we that's continue and we line the think said, fairly over expect forward. quarter, that a I delivered quarter a with much of as improvement sequential third kind not were

Unidentified Analyst

be and to rule When basis. business a the steps continue contribute rapid forward growth pursue the calculation kind going need those as thinking to some on terms versus down think Understood bottom flow of you're other line to there cost long-term you in type of do you savings broad business? what you about cost of think one [indiscernible] reposition thumb taking to can base you question. or based might some see just this to then on the plan, of some just the Is reinvested of and margin the we what be should and expansion transformation some about in RBT

Cody Phipps

operating line. transformation it First our is the that seeing We're that we're the I through of those flow area from productivity difficult and bottom on we very improvements team's to some that very year going pleased does, contributions. it's The of to through business stabilize DC it see effort our say I'm continuous it. of some how out and the line. see of pointing in we're going starting the more productivity year initiatives to last to facility, challenging, drop what and loss is, business very there we to bottom to in [ph] productivity second with related environment had that into and to expect you're deleveraging when all all more Not business it, improvement that expect so good one we results and see

XXXX. of seen improvement we've the million million and $XXX to committed $XXX you've end As by sustained of

Randy Meier

a the that utilization here. been as might with well since to pretty line overall rates get I comments. of it just about of utilization address trend business Historically has we echo rates, always in comment sort Mike And those

We the on to rates that reasonable typically there a order to is a of probably utilization. quarter is well basis. the positive continue utilization flu that we overall, still can see some season and of go in in business fairly Obviously believe our contribute the but that to first nature segment forward

Unidentified Analyst

Understood. Thanks much. so


your Jones And line from Robert next the Sachs. question from Goldman of comes

now line open. Your is

Robert Jones

adjust down, core It on would back year, bit for performance XX% like solutions. global the of would segment I have I you business Byram. have commented core been adjust to down correctly, of directionally maybe go XQ just was that is you little and wanted just guys right guess, the think north then, better. first a tough if was revenue be around you know maybe I roughly has it, within in but more you slightly better then sequentially been like to thoughts helpful. would know and if I it's I seems we to we do haven't might gotten the versus Randy, just any I a XQ core if quarter Byram. core operating XQ. the last income that trend or for business the in versus characterize know better the business relative trying heard get business to

Cody Phipps

two have line there be. questions, year-over-year of one to we're kind Sure. and sort going where of top growth

was segments And have what I continue with of in some to that. positive see to new and we aside I a our continue expected with think the the in the we through recall, and think, thinking you yearend we're to to in what performance all happen good sequential didn't We reasonable the come growth performance we're the we sequentially trends first an channel, had about to basis. in the there. [ph], two results. line alluding quarter we some terms with quarter on puts overall so third last sequential improvement we through year's that, accomplished turnover volume business. fair takes from then believe of more the expectations opportunity consolidated we in to where that see we and we suggested give quarter going, trends, and a is but see when overall in continue to announced As sequential but of that's first amount some we as we guidance I see the about in would growth talk company

Robert Jones

business. to from Okay, then I that's are higher might on same helpful a be expect the as It be correctly, those you maybe the and you that S&IP previously what I'm follow-up outlined? to like if the curious heard you little just to cost synergy bit had Randy, the outlined you targets separate but just onboard from synergies. sounds the

Randy Meier

achieve We've this never really talked synergies. in terms of the to cost

acquisitions business I or over think always to that integrate of as year cost on be number a two going global we incur the there's will this basis. next a related

not numbers, what The next million XX correct. numbers. But So goals or $XX three $XX to months opportunities they absolutely continue over million million to and in the net were look they raw is million $XX were just synergy and we years you're the for. $XX next the

Robert Jones

you. Thank good. Very

Cody Phipps

we this Robert, transaction. I to - closed just add wanted to just that

is Randy very think just Chris I he the we're complex articulated I transition - was effort. that, to it It's integration is, really off but a very good how say COO just in large day. a Halyard, Lowery large former to start. want on this, do early pleased the are the teams of I early mean leading and with

Robert Jones

Understood. Thank you Cody.


question of Credit comes next from Erin Suisse. line Wright from your And the

open. now is line Your

Erin Wright

the carve-out you if net would can are a were guess speaking were what terms I I acquisitions, helpful. specifically bit somewhat to to be surprising at guess Thanks. little you better, that those complexities cost that synergies a that question. incremental quantify the more maybe coming of that of and follow-up from and in those some potential that before

Randy Meier

Erin. Sure,

think months recognized this so that surprising. transaction was ago, announced say and wouldn't the that they six I we I a were carve-out when we

as infrastructure just we XXX as indicated proverbial day. we forward we've again went the create to absorb Cody as just be activity of variety conduct amount ensure tremendous anticipate time still we've visibility closes ability the a so the think transitioning would and and there's closing to couple that that to jurisdictions said, amount our the the teammates that increased was to rules locations and the next significant we that XXX to just as that on is albeit a over of the next around but rolling activity announce a business and in the when as transparency we're look have give to through teammates move we'll in that, number TSAs enormity moving world we on days local think nature I few the boarding well it activities good activities. transition, length accomplish particularly first of a on the of first the of and the again we very and to the better XX you the both just world the off and of on I parts, world, to are taken the through think a around surprising move required days based with local start, regulations guidance first throughout as over amount we and be the position a and occurs, organization of as months the I And forward. got of didn't few we around a how and small just a transaction have tremendous that

Cody Phipps

second we period precise we everything with you Halyard be to the of very we we're better approach what expectations. off acquisition do very would exceeding started expectations results this just organization there the exceeding did I've Byram, from this and we acquisitions, we period, efforts, want that first outlining both our value our good - at in for the first was want bring if and is goals to it these know move I is the that with compelling the of to Byram and a in one And but see when to add, teams' set start look just integration The expect. same diversification

Erin Wright

That's a perspective. of Thanks. now? great. sheet I have guess, helpful then of kind here you flexibility what sort capital from delever quickly to Okay, balance do you How deployment do and expect

Randy Meier

get what the total sort raising we'll of over three into our down well terms would along into expect said capital debt-to-EBITDA pre-acquisition which mid-three's. next we back we've levels we or of all upon efforts. speaking so, during and the to that in our five's to said Is what Sure, closing. years would relatively be be the down

that earnings years, balance recognize cash integration over we'll our to sheet, and earnings allow the the to certainly on next will we continue and the to improve utilizing that and fully period of appropriate getting off but again continue improved So deleverage of couple time. be TSAs flow us of focus in

Erin Wright

thank you. Great.


your the And from comes from Dodge Jefferies. question next of Sean line

line Your now is open.

Sean Dodge

When maybe and you timeline stages the integration. the place. there just like down for that's of about little the TSAs XXX you next, the platform, building focus Halyard be to opportunities sounds out in sounds focus a the more back a bit the So next further the the days. a that's the much upfront It going to mentioned on of thinking like up rest Owens while the in going little think of & Minor is we opening for lot sell growth, it so sell about over new the markets road infrastructure to

Cody Phipps

part the one; of were we thesis is I owned me restate single-digit Well think low which here brand Sean, at the let end product.

the low gates. the So first in of this out move we bringing Halyard integration the of just owned right S&IP single-digit products making by that's by products go and and brand to double-digit from low getting

we is, business our see those goes kits. and we in control opportunity have what kitting Another we

So S&IP we kits. Halyard have into more put the growth products our to a of opportunity

have start that that to start own with to brand brand, MediChoice here take Halyard our internationally our is and domestically opportunity to now brings. the sell Another we clinical that resources

that is making new standing initial and successful, we up we focus growth But to of making there immediate as the focus those sure the get trying staging think see drivers ahead. most the of right. integration value now appropriately I is that is say we lots products then look So we're and what the right other SBU on global phase,

Randy Meier

And just colors. to echo that again and add more some

can focus, that was of we and activities to making the And and pieces we've products about with costs We're on the our are those cost the the in - understand and through already team's time the our fit talked tremendous take channel. together, these world. on create a as beyond side. we was said, sure the things One amount around products spend the with work what wanting prepared of Chris out all understands the synergistic going we running the flow Chris and hit ground and that integration opportunities remarks to

side there. we So continue revenue of focused to equation fact that mistake prepared very on the be the the to don't are

there So of is delay of top aspect no and it's that. line sort

Cody Phipps

I'd folks, other add and what's us the strategic for long well for of to the think we've both time to Halyard know to business two that together. for exciting organizations is, been the and a is I them thing we partner bring

there focus Halyard old categories lot the bringing global over and device we're was a focus they medical products SBU. them new are here other formed and the of Within on organization we this

high So say let's esprit the the and to, corps I de organizations get would very two is amongst more products. there out sell

initial to So just we get that phase right. want

Sean Dodge

and good very Okay, then.

some that challenging stabilized you've I like sounds did On I a United those the in States, internationally, interpret kitting still been right? been wrestling business production It issues. know little with the have but

Cody Phipps

and business of is products leadership both to First CPS very what that made it and new we SBU good abroad. call the global and under of used structure, domestically progress now that all, and like operationally we the part team business

some of are business time, position made to the both those going we with but growth and improve they toward take and the operationally to were to and that's business units the progress turning now pleased grow. stabilizing So

Sean Dodge

you Thank again. Okay, very good.


question And Barclays. your from line next comes of Valiquette from Steven the

Your now line open. is

Steven Valiquette

the quarter is their market been lot discussion hospital general and publicly companies acuity. The which of traded within from first actually the acuity greater this one comments just There's in-patient witnessing mission prevalence despite mix. lower a flu

curious I for otherwise were results the was acuity So [indiscernible] help guess perhaps guys importantly, quarter? any and of sales in versus that the I results evidence what quarter in on XQ also whether SKU would been that you your more did thanks. mix own within first seeing your higher your admission have

Cody Phipps

Thanks Steven, question. great that's a

timeframe, of by February the that utilization attributed our customers timeframe activity a in acute sort incremental that, year and and season see [Indiscernible] driven part did progress, channel. large close care and around the the trends. are volume of quarter get flowing or the quarter, volumes start I Going but and keep first so it being channel. it's through way flu more at the But in increased some We little really a updated again always the the January, to season aligned through listen we if a to to HCA positive that's where volume of we'll the visibility stay I activity try of similar and year good and but it's flu to the indicate pretty call to so to center just back good some as we and again, a A else to to sustainability they pretty much lot so terms seem softer to think really March attention have with. good and something there. the you some call was XX

Steven Valiquette

other one, increased and spending quick Okay, one another capacity the on in. M&A the financial sheet if sneak associated leverage. with one you're balance can maybe I great.

a us asking in perhaps committed about to are levels to your or be dividend plan policy investors going your there change dividend forward. philosophy and Some you whether could Thanks. a current stay

Cody Phipps

in did continuing history in authorize terms with we're we remarks, to dividend Absolutely and policy of our our our of grow Sure. dividend. continuing as the dividend indicated our the board

and we do how things business both dividend forward the Halyard Byram can acquisition we continue on and we to we well a and during balance that believe past to the with continue of the year, move made sustaining sheet the could time the and simultaneously lot and One grow. understanding as as we delivered do the spend of we both

this juncture think, at at I So been that. our in there's least no on change perspective

Steven Valiquette

great. that's Okay, thanks.


your from And Larsen David question next from the line of comes Leerink.

is open. line now Your

David Larsen

for Can you the about and Halyard? and growth those Byram rates were little a margins? What year-over-year operating are growth the bit revenue talk rates what

Randy Meier

large give only perspective. of organization. sort company Well growth was year, not we talk a anecdotal last It public when of a we it can was part Byram, about

top he and very with the to and this see pleased future from both from we an Cody a perspective on, As the in remarks so made nice suggested acquisition that in commented been the that's we're movement both there. operating outlook line and business and and continue progress sequential

growing It's what very that We healthcare. haven't distribution pointed given states well out. most to support nice historical there. was folks guidance of health continue of fastest Byram as on is one and think I of above the margins some margins, but chronic segments business Cody and and we see understand as the the disease home the

profitability we business some to acquisition With along real and with it's it's out how both regard what to there the for perspective, we're with top going. line pleased tried have that indication the We and in and again [indiscernible] Halyard, the been. So continue give is first Halyard has and we see quarter positive continued fourth during that, quarter transition pretty the terms in some revenue positive of saw growth. the momentum to sequentially some as in results

more the of think the to about year the this very line I see beginning a of and really to some again acquisition we're be concerns future. some past the to positive I the recent So as addressed and opportunity think trend the the of with springboard about integrate growth it results. so

Cody Phipps

if large payments done a just and we August IDNs owned to David moves, of earnings. to large as value more industry and could the expectations nice the just is teams to year, but exceeding been and last trend way growth nice connect see and expectations IDN distribution. I right to are it's a care and but core our in two But purposes to teams their I'm compelling opportunity Little higher that, the as for large the proposition much is Byram value early exceeding seeing there working. on the connecting growth see, of customers our base what in and unlock nice to team we're since job about case, and our our margins it back starting there and following Byram now, more accretive our And home on Byram like we've again Randy IDNs. accretive have their What's of we I add the patients said

David Larsen

when you any do on do then and renewals Thank Thanks horizon? you customers losses lap these have you. and Great. significant

Randy Meier

times. there's Most in second reasonable more and top are as behind quarter significant here. going line business we be third into flows things a any far the as to that But just years so the referred we over us normal move and our we that. of XX% would our business renewals every large from of so the perspective There's should say, as is from - couple XX% comparisons that the of begin we of retain see have customers, about for to ahead. for to continue kind as indicated and that's to we've as number as we small to out opportunities our renewals, you forward, the a move life anything Anywhere think when forward. it's of year. every up exists trend and past churn we ebbs we move to as of don't I always customers, But I there's and business and grow meaningful us, to breadths ahead but look year, everyday ongoing that's go so material

David Larsen

Great. thanks much. very


Baird. from next of comes the Eric our from Coldwell line and Instructions] [Operator question

Your now line is open.

Eric Coldwell

question million just rate Last sales. I now, $XXX quarter wanted on go back growth doing we and to of had to Byram Byram the there. David's

just you sequentially. $XXX million reported today. You said it grew But

get there. I'm on So saying to a specificity more little what you're hoping

Randy Meier

business specific where to you sequentially when the seasonality quarter. payer in as seasonal side and and on quarter of the third and be their always that based I'm that our a deductibles, is people think and there's I'll it so expectations seasonally bit of hitting know own business little quarter more fourth should And sure Eric. grew Sure, reimbursement with are strongest but - be, it is party leverage I the Byram their first their

speaking Byram, in But opportunities as to growth Halyard. and which misspoke customer [indiscernible] to base nice very also seeing steep terms channel about access just we behind that expectations. correct, you're continue I of to relative but it's own not very leveraging So with absolutely the year-over-year business positive around is more is only be the absolute and our the numbers but

for nice forward orientation to So and creates growth combining basis. a go the both continuum continue a from on expanding care and more on on Byram to profitability improved with that us vertically opportunity see certainly

Eric Coldwell

lot S&IP. is inventory on Quickly here it. We moved a of a much through had on basis? but of Got consignment their channel obviously, questions the how

Randy Meier

Formally through inventory and consigned us. their

Eric Coldwell

Consigned globally.

country. party much curious be perhaps under I'm in they not they're inventory infrastructure of that how in they consignment. third through maybe might a countries these hospital consigning So might to be - or directly some of or have footprint, might organization the kind XX some that in

Randy Meier

a our we're not would [ph] consigned. get they're that portfolio of in acquiring. Perhaps be given and inventory, some products integrating Well all the consolidating that we a not little of consigned nature a bit inventory. selling move the is it the books both [indiscernible] if vast of portfolio There's of or majority or going There products. inventory through. has the But - the their that we're were lot on to

on but that sheet. few opportunities of consignment stock a occur products. most again of but usually care, a within hospital owned that consolidated our these traditional balance consignment with creates which situations of over your We would or inventory our XPO like a party again logistics But a But would channel. or at be XPO at distribution word that the global doesn't own third synergy have point to that be use

Eric Coldwell

with supply that Excel that stuff some What is business? legacy and of more this of or we've are other kind then do in it last standard? some How track question, a in systems the inventory know spreadsheets countries? how one companies global Okay Is you cloud-based medical global the you do each those tracked? system? is seen it Is like robust of inventory

Randy Meier

and platforms The that an We think that the TSA. of so would reasons the operate say is we're again Excel plus somewhere [indiscernible] we're be really cooperative an not of the cloud integration more Halyard XX But there. the the in in we a systems necessary of infrastructure continuity platform IT the SAP the the But move sort to [ph] expecting there's work things But little going so utilizing this going around transition Halyard was TSAs around world as of technology a recognizing that it's opportunity create on one lot I focused opportunity I and the the was myriad was underlying move both the to an I world. long of there's basic again both we tent acquired could speak as but think opportunities the the we're smooth that of forward. pole opportunities I Spreadsheets bit of and transition we and is have of not challenges XX-month one we that transitional Remainco of and place, around sort using we doing between them that based, to part variety of period which IT a and this be IT gets think one forward. to and to a of will in forward. ensure

Eric Coldwell

comments. All Appreciate right, thanks the very that's helpful. much


call there Instructions] [Operator over I closing questions the this Mr. for turn now further his no at Phipps remarks. back will are to and time.

Cody Phipps

on forward company Thank you we've road this call. including Halyard to you. We you updating steps taken the the and for joining us excited thank today. on about We're look quarter our the summer strengthen diversify to you the seeing second acquisition. and


may disconnect. you day. in today's concludes Good your participation the conference. now you This Thank for call.