Owens & Minor Reports Strong 1st Quarter 2005 Results

RICHMOND, Va., April 20 /PRNewswire-FirstCall/ -- Owens & Minor (NYSE: OMI) reported revenue of $1.19 billion for the first quarter ended March 31, 2005, an increase of 7.9 percent compared to revenue of $1.11 billion in the first quarter of 2004. Net income for the quarter was $15.9 million, up 8.8 percent compared to net income of $14.6 million in the first quarter last year. Diluted earnings per share (EPS) for the first quarter 2005 were $0.40, up 8 percent over diluted EPS of $0.37 in the previous year's first quarter. The company also reported strong operating cash flow of $123.0 million in the first quarter. On January 31, 2005, Owens & Minor acquired Access Diabetic Supply LLC (Access), a direct-to-consumer distributor of diabetic supplies. Therefore, two months of financial results from Access are included in Owens & Minor's quarterly financial report.

Also during the quarter, Owens & Minor announced that Craig R. Smith, currently president and chief operating officer, has been elected as Owens & Minor's next chief executive officer, succeeding G. Gilmer Minor, III, current chairman and chief executive officer, who has held the position for 21 years. Smith, 53, who is expected to be elected to Owens & Minor's board of directors at the annual shareholders' meeting, will become president and chief executive officer of the company effective July 1, 2005. Minor, 64, will continue to serve as the chairman of the board of directors. The succession plan ensures the continuity, strength and integrity of leadership at Owens & Minor.

"We are right where we expected to be after the first quarter," said Minor. "Our core business is strong. OMSolutions(SM) continues to improve and add overall value to the company, and our strategic direction has been strengthened by the acquisition of Access Diabetic Supply. The transition plan leading to Craig Smith becoming the chief executive officer on July 1, 2005, is proceeding very smoothly. Never have I seen or felt so much enthusiasm and excitement around the company. We have the absolute best team in the country serving our customers, suppliers and shareholders. Come visit us anywhere and feel it yourself."