Owens & Minor, Inc.

Good day and thank you for standing by. Welcome to the Owens & Miner third quarter 2023 earnings conference call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jackie Marcus, Investor Relations.

Thank you, Operator. Hello, everyone, and welcome to the Owens & Miner third quarter 2023 earnings call. Our comments on the call will be focused on the financial results for the third quarter of 2023 as well as our outlook for 2023, both of which are included in today's press release. The press release, along with the supplemental slides, are posted on the investor relations section of our website. Please note that during this call, we will make forward-looking statements. The matters addressed in these statements are subject to risks and uncertainties. which could cause actual results to differ materially from those projected or implied here today. Please refer to our SEC filings for a full description of these risks and uncertainties, including the risk factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q. In our discussion today, we will reference certain non-GAAP financial measures and information about these measures and reconciliations to the most comparable GAAP financial measures, which are included in our press release. Today, I'm joined by Ed Pasica, President and Chief Executive Officer, and Alex Bruni, Executive Vice President and Chief Financial Officer. I will now turn the call over to Ed.

Thank you, Jackie. Good morning, everyone, and thank you for joining us today. Our third quarter represented another strong indication that we are executing at a high level. We generated high single-digit top-line growth in our patient direct segment and low single-digit improvement in our products and healthcare services segment. Our operational performance in the quarter was complemented by a significant reduction in our overall debt position, combined with robust cash flow generation. I am incredibly proud of what the team has done thus far with our operating model realignment program, and I am excited about what the future holds for our organization. Let's now look at the business in a little more detail, starting with our patient direct segment. The performance of our patient direct segment in the third quarter continued to outperform the market, demonstrating the enduring strength of our go-to-market strategies and our service offerings. This is evidence in the strength of our new patient starts across most categories. The patient direct segment continues to identify opportunities for growth, including investments in technology, expanding our commercial capabilities and footprints, and identifying adjacent conditions and associated products. There is significant opportunity in this space as we see more patients and providers preferring at-home treatment options for chronic conditions, and we are well-positioned to capture this opportunity. Now, let's turn to our products and healthcare services segment. For the second consecutive quarter, our medical distribution division saw year-over-year revenue growth of more than 5% driven by same-store sales combined with net new wins. And when excluding the impact of PPE, sales grew at 8%. We continue to face the saturation of PPE in various markets, including but not limited to healthcare, government, industrial, and international markets, which led to a 14% top-line decline in our global products division when compared to prior year. Finally, much of our operating model realignment program is focused on improving this segment through operational excellence and driving efficiencies in our manufacturing footprint and supply chain network. In the nine months since we launched our operating model realignment program, our team has done a tremendous job of positioning us to achieve or even exceed our target of $30 million of benefit in 2023. We are doing exactly what we said we would do when we launched this program. improve our operations, generate savings, reduce working capital, and allow for future investments. It should also be noted that the operating model realignment program not only continued to deliver economic benefits, but it has enabled us to reassess how we do business every day. As a result, we are well on our way to achieving the objectives established when we launched this program in the first quarter of 2023. We've also made great progress with respect to our balance sheet. We paid down $188 million in total debt during the quarter with half a billion dollars in net debt reduction in the first nine months of this year. With our healthy operating cash flow of $157 million in the quarter and over $600 million of operating cash flow in the first nine months of this year, we remain focused on paying down debt we took on to acquire Apria, as well as making further investments in our people, products, and processes. These efforts are part and parcel with making Owens & Miner stronger. Before I turn the call over to Alex, I'd like to take a moment to address a recent update from the FDA regarding its April 2023 communication about certain O&M Halyard Facial Protection products. We worked diligently over the last seven months with the FDA to provide extensive testing and performance data demonstrating that our products provide the level of filtration and fluid resistance for which they are rated. I am pleased to report that on September 29th, the FDA updated its recommendation to confirm that the Halyard facial protection products may be used in accordance with the product labeling for both particle filtration and fluid resistance. We are glad to bring this review to conclusion, which reaffirms the safety and effectiveness of our Halyard facial protection products. In conclusion, we continue to deliver on our 2023 commitments, including the strengthening of our balance sheets, the paying down of debts, the market leading performance of our patient direct segment, and the improvement of our medical distribution division. With that, let me turn it over to Alex. Alex?