Owens & Minor, Inc.

Good day, and thank you for standing by. Welcome to the Owens and Minor First Quarter 2024 Air News Conference Call. All lines have been placed on you to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, please press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star and number one again. Thank you. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker for today, Jackie Marcus, Financial Relations. Please go ahead.

Thank you, Operator. Hello, everyone, and welcome to the ONC Miner First Quarter 2024 Earnings Call. Our comments on the call will be focused on the financial results for the first quarter of 2024, as well as our outlook for 2024. 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 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 on the call today. As I reflect on Q1, I am both pleased with our financial performance and encouraged by the continued progress we've made with our evolving operating model for the first 12 weeks of 2024. In addition, we were able to make investments related to our long-term strategic plan we introduced in December of 2023, and these investments are ahead of schedule. We are also making operational investments to bring higher levels of service to our customers and ultimately the patients served. Finally, in Q1, we onboarded new customers in our medical distribution division, navigated the seasonality of our patient direct segments, and overall met our internal expectations. While Alex will do a deeper dive into our financial performance and expectations for the remainder of 2024, Let me review a few of our financial and operational achievements from the first quarter. First, our products and healthcare services segment posted a 3% year-over-year improvement in revenue, with our medical distribution division delivering mid-single-digit growth as a result of the onboarding of new customers, in addition to attractive same-store sales. In our global products division, we saw growth in our U.S. proprietary product sales driven by improving in-channel sales as a result of enhanced focus and new product launches. Overall, I'm pleased to see the flattening of the curve of our product sales with unit volumes continuing to increase as prices continue to settle back to pre-COVID levels. Our patient direct segment posted a 5% year-over-year improvement in revenue. We anticipated the first quarter growth to be in the mid single digits as a result of very strong growth in Q1 of 2023, along with the adjustments to sales territories as we invested in additional commercial resources consistent with our long-term strategic plan. Additionally, we were not immune from the impact of the cyber incident at Change Health in late February, which did have some marginal top-line impact to our business. However, we are currently working with Change to ensure we capture the associated revenue and receive full payment for all services and products rendered. And I'm also very proud of our responsiveness to this issue to mitigate the impact to our company. More importantly, I'm even more pleased with our ability to successfully limit the potential disruption of our customers' ability to receive life-saving products and supplies they need every day. At Owens & Miner, we believe life takes care, and we felt it was our responsibility, regardless of the obstacles, to continue to process orders and make the essential deliveries as quickly and efficiently as possible to provide continuity of care when it matters most. Turning back to our broader business, we entered the next phase of our operating model realignment at the beginning of the year, with an emphasis on identifying and capturing meaningful growth and profitability in our patient direct segment. This added focus in 2024 will enable us to make assessments and take actions related to improving our already well-run patient direct segment. We are utilizing the operating model realignment to implement transformational opportunities to improve our business reimbursement and collection model and to gain efficiencies and grow profitability in areas such as our sleep supply customers. At the same time, in our product and healthcare services segment, we have embedded past initiatives into our daily activity while continuing to bring recently identified opportunities to fruition. our segment leaders and I remain keenly focused on network rationalization and operational excellence. Everything from optimizing our manufacturing footprint to our supply chain network. Throughout the company, these activities have taken meaningful investment and will continue to do so for the remainder of the year. But we believe they will result in greater profitable growth for years to come. Lastly, I'm encouraged by our year-over-year adjusted earnings improvement and many of our other key indicators. These improvements show the continued positive momentum and we're in line with our expectations. Alex will discuss these financials in greater detail shortly. Our recent success demonstrates that we are on the right path and that our strategy is working. We all know there will be obstacles in the future and we believe that our focus to constantly improve the business will assist us in mitigating many of these obstacles even those that we can't see today. We will remain focused on our long-term strategy and our future as an organization built on excellence. At our Investor Day in December of 2023, we outlined the five-year strategic plan, our vision for 2028, which is pillared by three key tenets, accelerating growth, optimizing our business to drive long-term profitability, and investing in our business. While we are in the early innings, we are doing exactly what we said we would, and we are seeing the results. I would now like to turn the call over to our Chief Financial Officer, Alex Bruni, to discuss our first quarter financial performance in more detail.