Owens & Minor Inc. (NYSE:OMI) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 04:30 pm ET
Edward A. Pesicka
remarks, I'd like to start by thanking the clinicians, caregivers, and frankly everyone else on the frontline for their tireless effort in this battle against COVID-19. I would also like to thank our Owens & Minor teammates for their focus and intensity and their flawless operating execution during the first half of 2020. This enabled us to deliver on our humble mission, to empower our customers to advance healthcare.
Before I review our progress related to our 2020 focus areas, let me provide you with a quick summary of what we accomplished. First, we delivered over 5 billion units of PPE to our customer since February. Next, we increased our intensity around productivity and operational improvements, allowing us to one, significantly increase our Americas-based PPE output, enabling us to better serve our customers although demand continues to outpace supply and two, continuing to reduce operating expenses while maintaining service levels and these improvements will continue to provide value into the future. Next, we made the proper investments to provide flexibility and product assurance to quickly adjust as home healthcare demand strengthened and as elective procedures ramped up faster than expected. And finally, we closed the sale of our Movianto business for $133 million, delivering on an important part of our strategy and allowing us to focus on our three strategic pillars, distribution, products, and services.
The previous items are just a few examples of the accomplishments in the second quarter as well as year-to-date. These accomplishments helped us fuel the improved financial performance highlighted by the following. One, we doubled our adjusted net income per share, compared to the second quarter of 2019. Two, we expanded our second quarter operating margin by 68 basis points when compared to prior year. And three, we significantly paid down debt.
This improved financial performance is not new, and not just one quarter. This is the third consecutive quarter of year-over-year adjusted earnings per share growth. It is the fifth consecutive quarter of year-over-year gross margin expansion. It is also the fifth consecutive quarter of generating positive operating cash flow. In addition, we increased our sequential adjusted earnings per share by 5 times compared to Q1. And today, we are reconfirming our expectation of double-digit adjusted EPS growth in 2021 above the revised full-year 2020 guidance.
I will now review a little more detail, our 2020 focus areas consistent with our previous two earnings calls. The focus areas are as follows. Financial performance for Q2 and outlook, continued operational improvements, and disciplined reinvestment in our business to further strengthen our foundation for long-term profitable growth.
Let me start off with financial performance for the quarter and factors that will impact the rest of the year and into 2021. Andy will provide a detailed look at the improved numbers during his prepared remarks, but now I'll provide some color on what drove the current improvements along with the opportunity for future performance. Starting with PPE. Demand for PPE remains at unprecedented levels and demand continues