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Owens & Minor
3Q 2008 Financial Results

   Management Conference Call
    Supplemental Information
        October 28, 2008
SAFE HARBOR

Except for historical information, the matters discussed in this
presentation 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.
Revenue
(dollars in millions)

   $2,000
                                                   $1,810
                                          $1,795
                                 $1,753
                        $1,748
               $1,687
   $1,600


   $1,200


     $800


     $400


        $0
                3Q07     4Q07    1Q08     2Q08      3Q08
Gross Margin
(as a percent of revenues)

  10.8%
                                                  10.70%
                                10.67%
                                         10.60%
                       10.59%
            10.57%
  10.6%




  10.4%




  10.2%
              3Q07       4Q07    1Q08     2Q08     3Q08
Selling, General &
          Administrative Expense
(as a percent of revenues)

  8.2%
                                       7.89%
                       7.87%   7.82%
           7.79%                               7.79%




  6.5%
            3Q07        4Q07   1Q08    2Q08    3Q08
Operating Earnings
(as a percent of revenues)

  3.3%

                                               2.55%
                               2.46%
           2.43%       2.33%           2.33%


  1.6%




  0.0%
            3Q07        4Q07   1Q08    2Q08    3Q08
Earnings per Share
(diluted)
                                            $0.61
                            $0.59   $0.57
   $0.60            $0.55
            $0.52


   $0.40



   $0.20



   $0.00
            3Q07    4Q07    1Q08    2Q08    3Q08
2008 Outlook

“With our excellent performance so far this year and our
success in strengthening our relationships with our
customers, we are continuing to target 2008 annual
organic revenue growth in the 5% to 7% range,” said
Smith. “We also continue to target net income per diluted
share for the year in a range of $2.30 to $2.40, which
includes the expected dilution in the fourth quarter from
the Burrows acquisition.”
   - press release dated October 27, 2008
Supplemental Information
  (dollars in millions)

      Non-GAAP Reconciliation – Direct-to-Consumer
                                                    3Q08           2Q08           1Q08           4Q07            3Q07

                                                    $ (0.3)         $(1.5)        $    0.1        $(1.0)          $ 1.2
     GAAP operating (losses) earnings


                                                        2.1               2.4          2.5            2.7            2.7
     Depreciation and amortization(a)

     EBITDA(b)                                       $ 1.8          $ 0.9         $    2.6         $ 1.7          $ 3.9


(a) Excludes amortization related to direct-response advertising costs.

(b) Earnings before interest, taxes, depreciation and amortization (EBITDA) is considered a non-GAAP financial measure under
    the SEC’s rules. Management believes that EBITDA is an important financial measure for use in evaluating the performance
    of the company’s Direct-to-Consumer (DTC) business, as it excludes charges for depreciation and amortization which relate
    primarily to business acquisitions and do not reflect the cash costs associated with operating the business. EBITDA should
    be considered in addition to, rather than a substitute for, operating (losses) earnings as a measure of financial
    performance.
Supplemental Information

Schedule of Sales Days per Year
              2006      2007      2008
1st Quarter    64        64        64
2nd Quarter    64        64        64
3rd Quarter    63        63        64
4th Quarter    62        63        63
  Totals      253       254       255
Owens & Minor
                     www.owens-minor.com
                         3rd Quarter 2008

Investor Relations Contacts:
Trudi Allcott   truitt.allcott@owens-minor.com 804.723.7555
Chuck Graves    chuck.graves@owens-minor.com 804.723.7556

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Owens_Minor3Q2008_webcast_slides

  • 1. Owens & Minor 3Q 2008 Financial Results Management Conference Call Supplemental Information October 28, 2008
  • 2. SAFE HARBOR Except for historical information, the matters discussed in this presentation 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.
  • 3. Revenue (dollars in millions) $2,000 $1,810 $1,795 $1,753 $1,748 $1,687 $1,600 $1,200 $800 $400 $0 3Q07 4Q07 1Q08 2Q08 3Q08
  • 4. Gross Margin (as a percent of revenues) 10.8% 10.70% 10.67% 10.60% 10.59% 10.57% 10.6% 10.4% 10.2% 3Q07 4Q07 1Q08 2Q08 3Q08
  • 5. Selling, General & Administrative Expense (as a percent of revenues) 8.2% 7.89% 7.87% 7.82% 7.79% 7.79% 6.5% 3Q07 4Q07 1Q08 2Q08 3Q08
  • 6. Operating Earnings (as a percent of revenues) 3.3% 2.55% 2.46% 2.43% 2.33% 2.33% 1.6% 0.0% 3Q07 4Q07 1Q08 2Q08 3Q08
  • 7. Earnings per Share (diluted) $0.61 $0.59 $0.57 $0.60 $0.55 $0.52 $0.40 $0.20 $0.00 3Q07 4Q07 1Q08 2Q08 3Q08
  • 8. 2008 Outlook “With our excellent performance so far this year and our success in strengthening our relationships with our customers, we are continuing to target 2008 annual organic revenue growth in the 5% to 7% range,” said Smith. “We also continue to target net income per diluted share for the year in a range of $2.30 to $2.40, which includes the expected dilution in the fourth quarter from the Burrows acquisition.” - press release dated October 27, 2008
  • 9. Supplemental Information (dollars in millions) Non-GAAP Reconciliation – Direct-to-Consumer 3Q08 2Q08 1Q08 4Q07 3Q07 $ (0.3) $(1.5) $ 0.1 $(1.0) $ 1.2 GAAP operating (losses) earnings 2.1 2.4 2.5 2.7 2.7 Depreciation and amortization(a) EBITDA(b) $ 1.8 $ 0.9 $ 2.6 $ 1.7 $ 3.9 (a) Excludes amortization related to direct-response advertising costs. (b) Earnings before interest, taxes, depreciation and amortization (EBITDA) is considered a non-GAAP financial measure under the SEC’s rules. Management believes that EBITDA is an important financial measure for use in evaluating the performance of the company’s Direct-to-Consumer (DTC) business, as it excludes charges for depreciation and amortization which relate primarily to business acquisitions and do not reflect the cash costs associated with operating the business. EBITDA should be considered in addition to, rather than a substitute for, operating (losses) earnings as a measure of financial performance.
  • 10. Supplemental Information Schedule of Sales Days per Year 2006 2007 2008 1st Quarter 64 64 64 2nd Quarter 64 64 64 3rd Quarter 63 63 64 4th Quarter 62 63 63 Totals 253 254 255
  • 11. Owens & Minor www.owens-minor.com 3rd Quarter 2008 Investor Relations Contacts: Trudi Allcott truitt.allcott@owens-minor.com 804.723.7555 Chuck Graves chuck.graves@owens-minor.com 804.723.7556