Owens & Minor Reports 12.8% Revenue Growth for 1st Quarter 2009; Integration of Recent Acquisition Remains On-Track

RICHMOND, Va.--(Business Wire)--
Owens & Minor (NYSE:OMI) today reported revenue of $1.95 billion, increased
12.8% for the quarter ended March 31, 2009, when compared to revenue of $1.73
billion in the same period last year. Results for the first quarter 2009 reflect
the company`s divestiture of certain assets of its direct-to-consumer (DTC)
diabetes supply business, which is shown as discontinued operations for all
periods presented. Income from continuing operations for the quarter was $22.4
million, or $0.54 per diluted share, decreased from $24.0 million, or $0.58 per
diluted share, in the comparable period of 2008. For the first quarter, the
company recorded a loss from discontinued operations of $8.4 million, or $0.20
per diluted share. Consequently, net income for the quarter was $14.0 million,
decreased from $24.2 million in the prior year, while net income per diluted
share was $0.34, compared to $0.59 per diluted share for the same period last
year.

"We reported strong sales growth for the first quarter, while managing our
business in a cost-effective manner," said Craig R. Smith, president & chief
executive officer of Owens & Minor. "Our teams did an exceptional job
transitioning the acquired Burrows business to Owens & Minor`s systems, while
holding the line on spending. We also completed the sale of the major assets of
our DTC business, using the proceeds to improve the strength of our balance
sheet. The wind-down activities for this discontinued business are nearing
completion. Consequently, we believe we are well-positioned for the year ahead.
Our efforts are focused squarely on growing our business, improving efficiency
and moving forward with our strategic initiatives."

In the first quarter of 2009, the company reported gross margin of $183.6
million, or 9.42% of revenues, compared to $170.2 million, or 9.85% of revenues,
for the same period of 2008. In comparing quarter-to-quarter, the increase in
gross margin dollars was due to the increase in revenues, net of an increase of
$6.0 million in the provision for last-in, first-out (LIFO) inventory valuation
and the deferral of $4.4 million of revenue during the first quarter of 2009.
The increase in the LIFO provision was driven by unusually large increases in
certain suppliers` list prices, a portion of which were not eligible for
supplier rebates. The deferral of revenue reflects the required accounting
treatment of certain contract fees that are subject to future performance
commitments under the contract terms. The company expects to recognize the
majority of this deferred revenue in late 2009.

Burrows Acquisition Update

During the quarter, Owens & Minor continued the activities associated with the
transition of the Burrows business, including customer conversions and facility
closures. The company remains on schedule to conclude the transition of the
acquired business by the end of the second quarter of 2009. In October 2008,
Owens & Minor acquired certain assets and liabilities of The Burrows Company, a
Chicago-based distributor of medical and surgical supplies to the acute-care
market.

Discontinued Operations Update

During the first quarter of 2009, Owens & Minor completed the sale of certain
assets of its DTC business and continued the process of exiting the
consumer-focused market. The first quarter loss from discontinued operations of
$8.4 million resulted primarily from pre-tax charges associated with exiting the
business, partially offset by a $3.2 million gain on the sale of the business.

Asset Management

For the first quarter of 2009, the company reported cash provided by operating
activities of continuing operations of $83.1 million. Cash provided by
discontinued operations was $77.1 million, including $63 million received from
the sale of certain assets of the DTC business to Liberty Healthcare Group,
Inc., a subsidiary of Medco Health Solutions, Inc. Long-term debt as of March
31, 2009, was $212.6 million, decreased $146.6 million from long-term debt of
$359.2 million as of December 31, 2008. Days sales outstanding (DSO) were 23.6,
as of March 31, 2009, increased from DSO of 22.6 days as of the same period in
2008, but decreased from 24.5 days as of December 31, 2008. For the first
quarter, inventory turns were 10.3, declined from turns of 10.6 for the first
quarter of 2008.

2009 Outlook

"Based on results for the first quarter, we are on course with where we thought
we would be at this point in the year. Consequently, our guidance for 2009
remains unchanged," said Smith. "When looking at 2009, we are targeting revenue
growth for the year in a range of 8% to 12%, and income per diluted share from
continuing operations in a range of $2.55 to $2.70."

The 2009 outlook is based on certain assumptions that are subject to the risk
factors discussed in the company`s filings with the Securities & Exchange
Commission.

Highlights

* The company will hold its Annual Shareholders` Meeting on Friday, April 24,
2009, at its Home office in Mechanicsville, VA, at 10:00 a.m. The event will be
webcast via www.owens-minor.com.
* Owens & Minor was ranked #339 in the 2009 FORTUNE 500, improving from a
previous ranking of #360 in the 2008 list.
* Effective March 16, 2009, Owens & Minor was moved from the S&P SmallCap 600 to
the S&P MidCap 400 Index.

Safe Harbor Statement

Except for historical information, the matters discussed in this press release
may constitute forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those projected. These
risk factors are discussed in reports filed by the company with the Securities &
Exchange Commission. All of this information is available at
www.owens-minor.com. The company assumes no obligation, and expressly disclaims
any such obligation, to update or alter information, whether as a result of new
information, future events, or otherwise.

Owens & Minor, Inc., (NYSE: OMI) a FORTUNE 500 company headquartered in
Richmond, Virginia, is a leading distributor of national name-brand medical and
surgical supplies and a healthcare supply-chain management company. Owens &
Minor is also a member of the Russell 2000® Index, which measures the
performance of the small-cap segment of the U.S. equity universe, as well as the
S&P MidCap 400, which includes companies with a market capitalization of $750
million to $3.3 billion that meet certain financial standards. With a diverse
product and service offering and distribution centers throughout the United
States, the company serves hospitals, integrated healthcare systems, alternate
care locations, group purchasing organizations, and the federal government.
Owens & Minor provides technology and consulting programs that improve inventory
management and streamline logistics across the entire medical supply chain--from
origin of product to patient bedside. For news releases, or for more information
about Owens & Minor, visit the company Web site at www.owens-minor.com.

Investors Conference Call & Supplemental Material

Conference Call: Owens & Minor will conduct a conference call for investors on
Tuesday, April 21, 2009, at 9:00 a.m. Eastern Time. Participants may access the
call at 877-748-0043 with access code # 94908883. The international dial-in
number is 706-758-5871 with access code # 94908883. Webcast: A webcast of the
call, along with supplemental information, will be available on
www.owens-minor.com under "Investor Relations." Replay: A replay of the call
will be available for three weeks by dialing 800-642-1687, using access code #
94908883.

Information on www.Owens-Minor.com

Owens & Minor uses its Web site as a channel of distribution for material
company information, including news releases, investor presentations and
financial information. This information is routinely posted and accessible under
Investor Relations at www.owens-minor.com .

Owens & Minor, Inc.
Condensed Consolidated Statements of Income (unaudited)
(in thousands, except per share data)

Three Months Ended March 31,
2009 2008

Revenue $ 1,948,628 $ 1,727,301
Cost of revenue 1,764,995 1,557,088
Gross margin 183,633 170,213
Selling, general and administrative expenses 139,397 122,992
Depreciation and amortization 5,816 5,282
Other operating income and expense, net (1,460 ) (1,021 )
Operating earnings 39,880 42,960
Interest expense, net 3,341 3,539
Income before income taxes 36,539 39,421
Income tax provision 14,181 15,381
Income from continuing operations 22,358 24,040
(Loss) income from discontinued operations, net of tax (8,382 ) 168
Net income $ 13,976 $ 24,208

Income (loss) per share - basic:
Continuing operations $ 0.54 $ 0.59
Discontinued operations $ (0.20 ) $ -
Net income per share - basic $ 0.34 $ 0.59
Income (loss) per share - diluted:
Continuing operations $ 0.54 $ 0.58
Discontinued operations $ (0.20 ) $ 0.01
Net income per share - diluted $ 0.34 $ 0.59

Weighted average shares - basic 40,994 40,581
Weighted average shares - diluted 41,537 41,216

Owens & Minor, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)

March 31, December 31,

2009
2008

Assets
Current assets
Cash and cash equivalents $ 10,520 $ 7,886
Accounts and notes receivable, net 511,875 521,311
Merchandise inventories 702,253 679,069
Other current assets 57,759 71,329
Current assets of discontinued operations - 32,199
Total current assets 1,282,407 1,311,794
Property and equipment, net 79,162 76,949
Property held for sale 15,730 15,730
Goodwill, net 252,412 252,412
Intangible assets, net 27,130 27,802
Other assets, net 30,185 29,145
Other assets of discontinued operations - 62,358
Total assets $ 1,687,026 $ 1,776,190
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 572,008 $ 513,026
Accrued payroll and related liabilities 21,814 40,018
Other accrued liabilities 120,475 103,429
Current liabilities of discontinued operations 2,002 11,038
Total current liabilities 716,299 667,511
Long-term debt, excluding current portion 212,596 359,237
Other liabilities 61,461 60,391
Total liabilities 990,356 1,087,139
Shareholders' equity
Common stock 83,152 82,881
Paid-in capital 182,819 180,074
Retained earnings 442,645 438,192
Accumulated other comprehensive loss (11,946 ) (12,096 )
Total shareholders' equity 696,670 689,051
Total liabilities and shareholders' equity $ 1,687,026 $ 1,776,190

Owens & Minor, Inc.
Condensed Consolidated Statements of Cash
Flows (unaudited)
(in thousands)

Three Months Ended March 31,
2009 2008

Operating activities
Net income $ 13,976 $ 24,208
Adjustments to reconcile net income to cash
provided by
operating activities of continuing
operations:
Loss (income) from discontinued operations 8,382 (168 )
Provision for LIFO reserve 16,440 10,468
Depreciation and amortization 5,816 5,282
Share-based compensation expense 2,386 2,721
Provision for losses on accounts and notes 1,028 857
receivable
Changes in operating assets and
liabilities:
Accounts and notes receivable 8,408 11,583
Merchandise inventories (39,624 ) (36,441 )
Accounts payable 60,331 82,388
Net change in other current assets and 5,949 14,328
current liabilities
Other, net 8 (833 )
Cash provided by operating activities of 83,100 114,393
continuing operations

Investing activities
Additions to property and equipment (5,416 ) (1,979 )
Additions to computer software (2,717 ) (2,306 )
Net cash received related to acquisition of 6,994 -
business
Other, net - 6
Cash used for investing activities of (1,139 ) (4,279 )
continuing operations

Financing activities
Cash dividends paid (9,523 ) (8,197 )
Net payments on revolving credit facility (146,478 ) (76,500 )
Proceeds from exercise of stock options 740 1,825
Excess tax benefits related to share-based 662 1,085
compensation
Decrease in drafts payable (1,349 ) (10,710 )
Other, net (518 ) (660 )
Cash used for financing activities of (156,466 ) (93,157 )
continuing operations

Discontinued operations
Operating cash flows 14,139 (5,952 )
Investing cash flows 63,000 (503 )
Net cash provided by (used for) 77,139 (6,455 )
discontinued operations

Net increase in cash and cash equivalents 2,634 10,502
Cash and cash equivalents at beginning of 7,886 10,395
period
Cash and cash equivalents at end of period $ 10,520 $ 20,897

Owens & Minor, Inc.
Financial Statistics (unaudited)

Quarter Ended
(in thousands, except ratios and per share data) 3/31/2009 12/31/2008 9/30/2008 6/30/2008 3/31/2008

Operating results:
Revenue $ 1,948,628 $ 1,957,848 $ 1,786,858 $ 1,771,230 $ 1,727,301
Gross margin $ 183,633 $ 192,956 $ 178,749 $ 175,342 $ 170,213
Gross margin as a percent of revenue 9.42 % 9.86 % 10.00 % 9.90 % 9.85 %
SG&A expense $ 139,397 $ 141,015 $ 128,656 $ 128,738 $ 122,992
SG&A expense as a percent of revenue 7.15 % 7.20 % 7.20 % 7.27 % 7.12 %
Operating earnings $ 39,880 $ 48,338 $ 46,319 $ 43,108 $ 42,960
Operating earnings as a percent of revenue 2.05 % 2.47 % 2.59 % 2.43 % 2.49 %
Income from continuing operations $ 22,358 $ 27,409 $ 25,348 $ 24,460 $ 24,040
Income (loss) from discontinued operations, net of tax $ (8,382 ) $ (7,206 ) $ (64 ) $ (828 ) $ 168
Net income $ 13,976 $ 20,203 $ 25,284 $ 23,632 $ 24,208
Income (loss) per common share - basic:
Continuing operations $ 0.54 $ 0.66 $ 0.62 $ 0.60 $ 0.59
Discontinued operations $ (0.20 ) $ (0.17 ) $ (0.01 ) $ (0.02 ) $ 0.00
Net income per share - basic $ 0.34 $ 0.49 $ 0.61 $ 0.58 $ 0.59
Income per common share - diluted:
Continuing operations $ 0.54 $ 0.66 $ 0.61 $ 0.59 $ 0.58
Discontinued operations $ (0.20 ) $ (0.17 ) $ 0.00 $ (0.02 ) $ 0.01
Net income per share - diluted $ 0.34 $ 0.49 $ 0.61 $ 0.57 $ 0.59

Accounts receivable:
Accounts and notes receivable, net(2) $ 511,875 $ 521,311 $ 449,988 $ 452,248 $ 428,977
Days sales outstanding (1) (2) 23.6 24.5 23.2 23.2 22.6

Inventory:
Merchandise inventories (2) $ 702,253 $ 679,069 $ 605,711 $ 628,179 $ 603,894
Average inventory turnover (1) (2) 10.3 10.9 10.3 10.4 10.6

Financing:
Long-term debt, excluding current portion $ 212,596 $ 359,237 $ 208,832 $ 221,081 $ 211,962

Stock information:
Cash dividends per common share $ 0.23 $ 0.20 $ 0.20 $ 0.20 $ 0.20
Stock price at quarter-end $ 33.13 $ 37.65 $ 48.50 $ 45.69 $ 39.34

(1) Days sales outstanding and average inventory turnover are based on three-months' sales.
(2) Based on results from continuing operations.

Certain adjustments have been made to prior period amounts to conform to current year presentation.

Owens & Minor Inc.
Trudi Allcott, Director, Investor & Media Relations, 804-723-7555;
Chuck Graves, Director, Finance & Investor Relations, 804-723-7556

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