Owens & Minor Inc. (NYSE:OMI) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 04:30 pm ET


Owens & Minor Inc. (NYSE:OMI) Q2 2020 Earnings Conference Call - Final Transcript


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Q & A
Andy Long

Thank you. [Operator Instructions] Our first question comes from Michael Cherny with Bank of America. Your line is now open.

Michael Cherny

Good afternoon. Congratulations on a nice quarter and a nice results that you've delivered so far. When you think forward, as you think about some of the commentary you made regarding PPE. Right now, as you said, demand outstrip supply, at some point supply will outstrip demand. So can you maybe talk a little bit more about some of the alternative channels, you're looking at in the world where virtually anywhere you look, even outside of the medical environment, you're going to need more PPE than you need previously?

Edward A. Pesicka

Sure, Mike. First, thanks for the comments upfront and I'll address that. So, there's a couple of things, I'm going to talk about it, both in a short and mid-term and then long term. Obviously in the short and mid-term, we think it's going to continue that where demand is going to significantly outpace supply. I talked about some of the things, and I spent a lot of time with customers and some of the things we've heard from them, why we think it's going to continue going forward for the mid-term I would say is, it's the protocols that have changed, its regulation or acquiring it, it's the fact that more people in the healthcare world are used to wearing masks and changing masks more often, so that we believe is just going to continue. You look outside of it, kind of the non-traditional channels that didn't use some of the PPE, whether that's nurse, whether that's the dental field, you look at the academic settings, which is outside of healthcare that being University, schools, just general population, we think there is a tremendous demand for that, but frankly we haven't tapped into because we have been focusing on delivering to our customers that have committed -- that we've been committed to in the past and honoring those commitments.

I think the other aspect of this, Mike is international. Obviously, we redirected our products all to the US markets to make sure we can serve those. I think that also provides us the ability to grow beyond that. And then I could take it even a step further, Mike and you're right. At some point in time, whether that's in 2022 or some other point in time, when you start to get that supply demand balance the other way around, one of the things that we see is different is the fact that we believe you also have significant stockpiles with product in there that may not be medical grade, that may be approved in the temporary -- for temporary may be non-traditional products and brands that people use. So we believe that's going to be another opportunity going forward as people start to -- want to rotate product out of their stockpile and replace it with great high quality product that we make in the United States or we manufacture