Owens & Minor, a Richmond, Va.-based distributor of medical and surgical supplies, reported a decrease in income as rising expenses outpaced revenue in the first quarter.
The company reported $18.9 million in profits for the three months ended March 31, down 26% from $25.5 million reported the same period the year before. Net revenue was $2.4 million, up 6% from $2.3 million in 2014.
Income was affected by higher expenses across the board, including exit and realignment costs incurred as a result of cost-cutting and facility closures, and charges related to the company's acquisitions in 2014 of surgical kit-makers Medical Action and Arc Royal.
Those charges amounted to $10 million, more than double the $3.3 million in similar costs reported during the first quarter of 2014. Depreciation and amortization expenses also made a dent in profits, as they increased 15% to $15.9 million.
The company's 2015 guidance was not changed. Owens & Minor anticipates an adjusted net income per diluted share of $1.90 to $1.95.
