Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Consolidating Statement Of Income

The following tables present condensed consolidating financial information for: Owens & Minor, Inc.; the guarantors of Owens & Minor, Inc.’s Senior Notes, on a combined basis; and the non-guarantor subsidiaries of the Senior Notes, on a combined basis. The guarantor subsidiaries are 100% owned by Owens & Minor, Inc. Separate financial statements of the guarantor subsidiaries are not presented because the guarantees by our guarantor subsidiaries are full and unconditional, as well as joint and several, and we believe the condensed consolidating financial information is more meaningful in understanding the financial position, results of operations and cash flows of the guarantor subsidiaries.

For the three months ended March 31, 2013	Owens & Minor, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Statements of Income
Net revenue	$	—		$	2,154,716		$	131,305		$	(10,312	)	$	2,275,709
Cost of goods sold		—			1,936,091			70,607			(10,041	)		1,996,657
Gross margin		—			218,625			60,698			(271	)		279,052
Selling, general and administrative expenses		654			156,347			60,720			—			217,721
Acquisition-related and exit and realignment charges		—			862			1,148			—			2,010
Depreciation and amortization		3			9,060			3,566			—			12,629
Other operating (income) expense, net		—			(643	)		(549	)		—			(1,192	)
Operating (loss) earnings		(657	)		52,999			(4,187	)		(271	)		47,884
Interest expense (income), net		4,395			(911	)		(285	)		—			3,199
(Loss) income before income taxes		(5,052	)		53,910			(3,902	)		(271	)		44,685
Income tax (benefit) provision		(1,962	)		21,455			(906	)		—			18,587
Equity in earnings of subsidiaries		29,188			—			—			(29,188	)		—
Net income (loss)		26,098			32,455			(2,996	)		(29,459	)		26,098
Other comprehensive income (loss), net of tax		(7,632	)		208			(7,828	)		7,620			(7,632	)
Comprehensive income (loss)	$	18,466		$	32,663		$	(10,824	)	$	(21,839	)	$	18,466

For the three months ended March 31, 2012	Owens & Minor, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Statements of Income
Net revenue	$	—		$	2,217,882		$	1,340		$	(1,340	)	$	2,217,882
Cost of goods sold		—			2,003,578			1,265			(1,289	)		2,003,554
Gross margin		—			214,304			75			(51	)		214,328
Selling, general and administrative expenses		472			154,669			431			—			155,572
Depreciation and amortization		—			8,564			14			—			8,578
Other operating (income) expense, net		—			(1,696	)		2			—			(1,694	)
Operating (loss) earnings		(472	)		52,767			(372	)		(51	)		51,872
Interest expense, net		2,769			630			23			—			3,422
(Loss) income before income taxes		(3,241	)		52,137			(395	)		(51	)		48,450
Income tax (benefit) provision		(1,271	)		20,444			(83	)		—			19,090
Equity in earnings of subsidiaries		31,330			—			—			(31,330	)		0
Net income (loss)		29,360			31,693			(312	)		(31,381	)		29,360
Other comprehensive income (loss), net of tax		338			351			—			(351	)		338
Comprehensive income (loss)	$	29,698		$	32,044		$	(312	)	$	(31,732	)	$	29,698

Condensed Consolidating Balance Sheets

March 31, 2013	Owens & Minor, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Balance Sheets
Assets
Current assets
Cash and cash equivalents	$	148,611		$	14,786		$	55,166		$	—		$	218,563
Accounts and notes receivable, net		—			486,235			97,657			(2,771	)		581,121
Merchandise inventories		—			727,546			16,652			(951	)		743,247
Other current assets		117			68,373			136,855			(3	)		205,342
Total current assets		148,728			1,296,940			306,330			(3,725	)		1,748,273
Property and equipment, net		12			96,014			91,901			—			187,927
Goodwill, net		—			247,271			25,607			—			272,878
Intangible assets, net		—			19,450			20,195			—			39,645
Due from O&M and subsidiaries		—			378,759			34,381			(413,140	)		—
Advances to and investments in consolidated subsidiaries		1,455,754			—			—			(1,455,754	)		—
Other assets, net		549			58,355			13,295			—			72,199
Total assets	$	1,605,043		$	2,096,789		$	491,709		$	(1,872,619	)	$	2,320,922
Liabilities and equity
Current liabilities
Accounts payable	$	—		$	626,178		$	70,211		$	(2,773	)	$	693,616
Accrued payroll and related liabilities		—			11,431			7,392			—			18,823
Deferred income taxes		—			42,302			(847	)		—			41,455
Other accrued liabilities		10,161			93,256			179,557			—			282,974
Total current liabilities		10,161			773,167			256,313			(2,773	)		1,036,868
Long-term debt, excluding current portion		205,322			6,260			2,661			—			214,243
Due to O&M and subsidiaries		413,140			—			—			(413,140	)		—
Intercompany debt		—			138,890			—			(138,890	)		—
Deferred income taxes		—			23,906			4,733			—			28,639
Other liabilities		—			58,870			4,752			—			63,622
Total liabilities		628,623			1,001,093			268,459			(554,803	)		1,343,372
Equity
Common stock		126,672			—			1,500			(1,500	)		126,672
Paid-in capital		190,004			242,024			258,635			(500,659	)		190,004
Retained earnings (deficit)		667,782			863,782			(39,936	)		(823,846	)		667,782
Accumulated other comprehensive loss		(8,038	)		(10,110	)		1,921			8,189			(8,038	)
Total Owens & Minor, Inc. shareholders’ equity		976,420			1,095,696			222,120			(1,317,816	)		976,420
Noncontrolling interest		—			—			1,130			—			1,130
Total equity		976,420			1,095,696			223,250			(1,317,816	)		977,550
Total liabilities and equity	$	1,605,043		$	2,096,789		$	491,709		$	(1,872,619	)	$	2,320,922

December 31, 2012	Owens & Minor, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Balance Sheets
Assets
Current assets
Cash and cash equivalents	$	58,190		$	13,641		$	26,057		$	—		$	97,888
Accounts and notes receivable, net		—			474,533			82,216			(3,247	)		553,502
Merchandise inventories		—			750,046			14,391			(681	)		763,756
Other current assets		1,627			76,036			137,593			(1,508	)		213,748
Total current assets		59,817			1,314,256			260,257			(5,436	)		1,628,894
Property and equipment, net		16			95,516			96,309			—			191,841
Goodwill, net		—			247,271			27,613			—			274,884
Intangible assets, net		—			19,972			22,341			—			42,313
Due from O&M and subsidiaries		—			236,612			34,248			(270,860	)		—
Advances to and investments in consolidated subsidiaries		1,434,186			—			—			(1,434,186	)		—
Other assets, net		6,885			55,781			14,238			(7,135	)		69,769
Total assets	$	1,500,904		$	1,969,408		$	455,006		$	(1,717,617	)	$	2,207,701
Liabilities and equity
Current liabilities
Accounts payable	$	45,300		$	518,545		$	42,542		$	(3,250	)	$	603,137
Accrued payroll and related liabilities		—			18,201			7,267			—			25,468
Deferred income taxes		—			43,110			—			(2,352	)		40,758
Other current liabilities		6,464			92,318			156,142			—			254,924
Total current liabilities		51,764			672,174			205,951			(5,602	)		924,287
Long-term debt, excluding current portion		205,754			6,592			3,037			—			215,383
Due to O&M and subsidiaries		270,860			—			—			(270,860	)		—
Intercompany debt		—			138,890			—			(138,890	)		—
Deferred income taxes		—			30,141			7,069			(6,289	)		30,921
Other liabilities		—			58,578			4,876			—			63,454
Total liabilities		528,378			906,375			220,933			(421,641	)		1,234,045
Equity
Common stock		126,544			—			1,500			(1,500	)		126,544
Paid-in capital		187,394			242,024			258,635			(500,659	)		187,394
Retained earnings (deficit)		658,994			831,327			(36,941	)		(794,386	)		658,994
Accumulated other comprehensive loss		(406	)		(10,318	)		9,749			569			(406	)
Total Owens & Minor, Inc. shareholders’ equity		972,526			1,063,033			232,943			(1,295,976	)		972,526
Noncontrolling interest		—			—			1,130			—			1,130
Total equity		972,526			1,063,033			234,073			(1,295,976	)		973,656
Total liabilities and equity	$	1,500,904		$	1,969,408		$	455,006		$	(1,717,617	)	$	2,207,701

Condensed Consolidating Statement Of Cash Flows

Three months ended March 31, 2013	Owens & Minor, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Statements of Cash Flows
Operating activities:
Net income (loss)	$	26,098		$	32,455		$	(2,996	)	$	(29,459	)	$	26,098
Adjustments to reconcile net income to cash (used for) provided by operating activities:
Equity in earnings of subsidiaries		(29,188	)		—			—			29,188			—
Depreciation and amortization		3			9,060			3,566			—			12,629
Share-based compensation expense		—			1,910			—			—			1,910
Provision for losses on accounts and notes receivable		—			53			54			—			107
Deferred income tax expense (benefit)		—			626			(682	)		—			(56	)
Changes in operating assets and liabilities:
Accounts and notes receivable		—			(11,755	)		(22,344	)		(476	)		(34,575	)
Merchandise inventories		—			24,300			(2,786	)		270			21,784
Accounts payable		—			60,533			37,188			477			98,198
Net change in other assets and liabilities		3,720			2,813			22,448			—			28,981
Other, net		(406	)		(39	)		(20	)		—			(465	)
Cash (used for) provided by operating activities		227			119,956			34,428			—			154,611
Investing activities:
Additions to property and equipment		—			(5,816	)		(1,697	)		—			(7,513	)
Additions to computer software and intangible assets		—			(5,786	)		(1,478	)		—			(7,264	)
Proceeds from the sale of property and equipment		—			45			(1	)		—			44
Cash used for investing activities		—			(11,557	)		(3,176	)		—			(14,733	)
Financing activities:
Change in intercompany advances		106,661			(106,529	)		(132	)		—			—
Cash dividends paid		(15,199	)		—			—			—			(15,199	)
Repurchases of common stock		(2,282	)		—			—			—			(2,282	)
Excess tax benefits related to share-based compensation		207			—			—			—			207
Proceeds from exercise of stock options		1,792			—			—			—			1,792
Other, net		(985	)		(725	)		(248	)		—			(1,958	)
Cash provided by (used for) financing activities		90,194			(107,254	)		(380	)		—			(17,440	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(1,763	)		—			(1,763	)
Net increase (decrease) in cash and cash equivalents		90,421			1,145			29,109			—			120,675
Cash and cash equivalents at beginning of period		58,190			13,641			26,057			—			97,888
Cash and cash equivalents at end of period	$	148,611		$	14,786		$	55,166		$	—		$	218,563

Three months ended March 31, 2012	Owens & Minor, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Statements of Cash Flows
Operating activities:
Net income (loss)	$	29,360		$	31,693		$	(312	)	$	(31,381	)	$	29,360
Adjustments to reconcile net income to cash (used for) provided by operating activities:
Equity in earnings of subsidiaries		(31,330	)		—			—			31,330			—
Depreciation and amortization		—			8,564			14			—			8,578
Share-based compensation expense		—			2,385			—			—			2,385
Provision for losses on accounts and notes receivable		—			190			—			—			190
Deferred income tax expense (benefit)		—			(1,465	)		—			—			(1,465	)
Changes in operating assets and liabilities:
Accounts and notes receivable		—			8,355			(101	)		(701	)		7,553
Merchandise inventories		—			82,024			85			51			82,160
Accounts payable		(113,100	)		74,057			764			—			(38,279	)
Net change in other assets and liabilities		3,622			7,408			(122	)		701			11,609
Other, net		(423	)		230			(1	)		—			(194	)
Cash (used for) provided by operating activities		(111,871	)		213,441			327			—			101,897
Investing activities:
Additions to property and equipment		—			(4,534	)		(2	)		—			(4,536	)
Additions to computer software and intangible assets		—			(3,840	)		—			—			(3,840	)
Proceeds from the sale of property and equipment		—			99			—			—			99
Cash used for investing activities		—			(8,275	)		(2	)		—			(8,277	)
Financing activities:
Change in intercompany advances		207,520			(207,698	)		178			—			—
Cash dividends paid		(14,001	)		—			—			—			(14,001	)
Repurchases of common stock		(3,750	)		—			—			—			(3,750	)
Excess tax benefits related to share-based compensation		690			—			—			—			690
Proceeds from exercise of stock options		3,371			—			—			—			3,371
Other, net		(1,436	)		(505	)		—			—			(1,941	)
Cash provided by (used for) financing activities		192,394			(208,203	)		178			—			(15,631	)
Net increase (decrease) in cash and cash equivalents		80,523			(3,037	)		503			—			77,989
Cash and cash equivalents at beginning of period		120,010			14,809			1,119			—			135,938
Cash and cash equivalents at end of period	$	200,533		$	11,772		$	1,622		$	—		$	213,927