Omnicell, Inc. announced results for its first quarter ended March 31, 2018.
GAAP revenue of $183 million, up 23% year-over-year
GAAP net income per diluted share of $0.07, up $0.35 year-over-year
Non-GAAP revenue of $183 million, up 23% year-over-year
Non-GAAP net income per diluted share of $0.29, up $0.22 year-over-year
MOUNTAIN VIEW, Calif., April 26, 2018 /PRNewswire/ -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its first quarter ended March 31, 2018.
GAAP results: GAAP revenue for the first quarter of 2018 was $182.6 million, up $34.1 million, or 23% from the first quarter of 2017.
First quarter 2018 GAAP net income as reported was $2.7 million, or $0.07 per diluted share. This compares to GAAP net loss of $10.3 million, or $0.28 per diluted share, for the first quarter of 2017.
Non-GAAP results: Non-GAAP revenue for the first quarter of 2018 was $182.6 million, up $33.8 million, or 23% from the first quarter of 2017.
Non-GAAP net income for the first quarter of 2018 was $11.5 million, or $0.29 per diluted share. This compares to non-GAAP net income of $2.5 million, or $0.07 per diluted share, for the first quarter of 2017.
Non-GAAP net income for each period excludes, when applicable, the effect of stock-based compensation expense, amortization expense of acquired intangible assets, acquisition-related expenses, fair value adjustments related to business acquisitions, restructuring and severance-related expenses, tax reform and restructuring benefits, and amortization of debt issuance cost.
Effective January 1, 2018, the Company adopted the new revenue recognition accounting standard, ASC 606, "Revenue from Contracts with Customers", utilizing the full retrospective transition method. All 2017 financial results have been adjusted to reflect the change.
"We are pleased to report this very strong start of 2018, which demonstrates that the market continues to see value in our industry-leading medication management platform," said Randall Lipps, chairman, president, chief executive officer, and founder of Omnicell. "As the complexities of healthcare evolve, we believe we are uniquely positioned to help lead the digital healthcare transformation with solutions that meet customer needs and grow market share for our business."
2018 Guidance:
For the second quarter of 2018, the Company expects non-GAAP revenue to be between $185 million and $190 million. The Company expects second quarter 2018 non-GAAP earnings to be between $0.36 and $0.42 per share.
For the year 2018, the Company expects product bookings to be between $625 million and $660 million. The Company expects non-GAAP revenue to be between $780 million and $800 million, and non-GAAP earnings to be between $1.85 and $2.05 per share.
The table below summarizes 2018 guidance outlined above.
Q2'18 Total Year 2018
Product Bookings Not provided $625 million - $660 million
Non-GAAP Revenue $185 million - $190 million $780 million - $800 million
Non-GAAP EPS $0.36 - $0.42 $1.85 - $2.05
------------ ------------- -------------
Omnicell Conference Call Information
Omnicell will hold a conference call today, Thursday, April 26, 2018 at 1:30 p.m. PT to discuss first quarter financial results. The conference call can be monitored by dialing 1-800-696-5518 within the U.S. or 1-706-758-4883 for all other locations. The Conference ID # is 9755479. Internet users can access the conference call at http://ir.omnicell.com/events.cfm. A replay of the call will be available today at approximately 4:30 p.m. PT and will be available until 11:59 p.m. PT on June 7, 2018. The replay access numbers are 1-855-859-2056 within the U.S. and 1-404-537-3406 for all other locations, Conference ID # is 9755479.
About Omnicell
Since 1992, Omnicell (NASDAQ: OMCL) has been inspired to create safer and more efficient ways to manage medications and supplies across all care settings. As a leader in medication and supply dispensing automation, central pharmacy automation, IV robotics, analytics software, and medication adherence and packaging systems, Omnicell is focused on improving care across the entire healthcare continuum - from the acute care hospital setting, to post-acute skilled nursing and long-term care facilities, to the patient's home.
Over 4,500 facilities worldwide use Omnicell® automation and analytics solutions to increase operational efficiency, reduce medication errors, deliver actionable intelligence and improve patient safety.
Omnicell's innovative medication adherence solutions, used by over 32,000 institutional and retail pharmacies in North America and the United Kingdom, are designed to improve patient adherence to prescriptions, helping to reduce costly hospital readmissions.
Recent Omnicell acquisitions add distinct capabilities, particularly in central pharmacy, IV robotics, and pharmacy software, creating the broadest medication management product portfolio in the industry.
For more information about Omnicell, Inc. please visit www.omnicell.com.
Omnicell and the Omnicell logo are registered trademarks of Omnicell, Inc. in the United States and other countries.
Forward-Looking Statements
To the extent any statements contained in this release deal with information that is not historical, these statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. As such, they are subject to the occurrence of many events outside Omnicell's control and are subject to various risk factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such statements include, but are not limited to, Omnicell's pipeline, new products and solutions yet to be generally available, new sales opportunities, and projected bookings, revenue, profit and market share growth. Risks that contribute to the uncertain nature of the forward-looking statements include (i) our ability to take advantage of the growth opportunities in medication management across the spectrum of healthcare settings from the hospital, long-term care, to home care, (ii) our ability to develop and commercialize new products, including the XR2 Automated Central Pharmacy System and the IVX Workflow semi-automated workflow solution, and lead the digital healthcare transformation, (iii) unfavorable general economic and market conditions, (iv) risks to growth and acceptance of our products and services, including competitive conversions, (v) growth of the clinical automation and workflow automation market generally, (vi) potential of increasing competition, (vii) potential regulatory changes, (viii) our ability to improve sales productivity to grow product bookings and (ix) our ability to acquire and successfully integrate companies. These and other risks and uncertainties are described more fully in Omnicell's most recent filings with the Securities and Exchange Commission (SEC). Prospective investors are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements contained in this press release speak only as of the date on which they were made. Omnicell undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Use of Non-GAAP Financial Information
This press release contains financial measures that are not calculated in accordance with GAAP. Our management evaluates and makes operating decisions using various performance measures. In addition to Omnicell's GAAP results, we also consider non-GAAP revenue, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income, and non-GAAP net income per diluted share. Additionally, we calculate Adjusted EBITDA (another non-GAAP measure) by means of adjustments to GAAP Net Income. These non-GAAP results should not be considered as an alternative to gross profit, operating expenses, net income, net income per diluted share, or any other performance measure derived in accordance with GAAP. We present these non-GAAP results because we consider them to be important supplemental measures of Omnicell's performance.
Our non-GAAP revenue, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income and non-GAAP net income per diluted share are exclusive of certain items to facilitate management's review of the comparability of Omnicell's core operating results on a period to period basis because such items are not related to Omnicell's ongoing core operating results as viewed by management. We define our "core operating results" as those revenues recorded in a particular period and the expenses incurred within that period that directly drive operating income in that period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operating performance, the measures give us a better understanding of how we should invest in research and development, fund infrastructure growth and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results, management specifically adjusted for the following excluded items:
a) Share-based compensation expense. We excluded from our non-GAAP results the expense related to equity-based compensation plans as they represent expenses that do not require cash settlement from Omnicell.
b) Amortization of acquired intangible assets. We excluded from our non-GAAP results the intangible assets amortization expense resulting from our past acquisitions. These non-cash charges are not considered by management to reflect the core cash-generating performance of the business and therefore are excluded from our non-GAAP results.
c) Amortization of debt issuance cost. Debt issuance cost represents costs associated with the issuance of Term Loan and Revolving Line of Credit facilities. The cost includes underwriting fees, original issue discount, ticking fee, and legal fees. This non-cash expense is not considered by management to reflect the core cash-generating performance of the business and therefore is excluded from our non-GAAP results.
d) Acquisition accounting impact related to deferred revenue. In connection with recent acquisitions, business combination rules require us to account for the fair values of arrangements for which acceptance has not been obtained, and post installation support has not been provided in our purchase accounting. The non-GAAP adjustment to our revenues is intended to include the full amounts of such revenues. We believe the adjustment to these revenues is useful as a measure of the ongoing performance of our business.
e) Inventory fair value adjustments. In connection with the acquisition of Aesynt, business combination rules require us to account for the fair values of inventory acquired in our purchase accounting. The non-GAAP adjustment to the cost of revenues is intended to include the impact of such adjustment. We believe the adjustment is useful as a measure of the ongoing performance of our business.
f) Acquisition-related expenses. We excluded from the non-GAAP results the expenses which are related to recent acquisitions. These expenses are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these acquisition-related expenses provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance and the financial results of less acquisitive peer companies.
g) Severance and other related expenses. We excluded from our non-GAAP results the expenses which are related to restructuring events. These expenses are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these expenses provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance and the financial results of peer companies.
h) Tax reform impact. We excluded from our non-GAAP results the net one-time benefits related to the Tax Cuts and Jobs Act of 2017 based on the estimated impact of the revaluation of deferred tax assets and liabilities. These net benefits are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these net benefits provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance and the financial results of peer companies.
i) Tax impact from restructuring activity. We excluded from our non-GAAP results the tax impacts related to restructuring activity. These impacts are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these impacts provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance and the financial results of peer companies.
Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Omnicell's control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational, or non-cash expenses involving stock compensation plans or other items.
We believe that the presentation of these non-GAAP financial measures is warranted for several reasons:
1) Such non-GAAP financial measures provide an additional analytical tool for understanding Omnicell's financial performance by excluding the impact of items which may obscure trends in the core operating results of the business;
2) Since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency and enhances investors' ability to compare our performance across financial reporting periods;
3) These non-GAAP financial measures are employed by Omnicell's management in its own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting; and
4) These non-GAAP financial measures facilitate comparisons to the operating results of other companies in our industry, which use similar financial measures to supplement their GAAP results, thus enhancing the perspective of investors who wish to utilize such comparisons in their analysis of our performance.
Set forth below are additional reasons why share-based compensation expense is excluded from our non-GAAP financial measures:
i) While share-based compensation calculated in accordance with ASC 718 constitutes an ongoing and recurring expense of Omnicell, it is not an expense that requires cash settlement by Omnicell. We therefore exclude these charges for purposes of evaluating core operating results. Thus, our non-GAAP measurements are presented exclusive of stock-based compensation expense to assist management and investors in evaluating our core operating results.
ii) We present ASC 718 share-based payment compensation expense in our reconciliation of non-GAAP financial measures on a pre-tax basis because the exact tax differences related to the timing and deductibility of share-based compensation, under ASC 718 are dependent upon the trading price of Omnicell's common stock and the timing and exercise by employees of their stock options. As a result of these timing and market uncertainties the tax effect related to share-based compensation expense would be inconsistent in amount and frequency and is therefore excluded from our non-GAAP results.
Our Adjusted EBITDA calculation is defined as earnings before interest income and expense, taxes, depreciation and amortization, and non-cash expenses, including ASC 718 stock compensation expense, as well as certain non-GAAP adjustments.
As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for Omnicell's GAAP results. In the future, we expect to incur expenses similar to certain of the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:
- Omnicell's stock option and stock purchase plans are important components of incentive compensation arrangements and will be reflected as expenses in Omnicell's GAAP results for the foreseeable future under ASC 718.
- Other companies, including companies in Omnicell's industry, may calculate non-GAAP financial measures differently than Omnicell, limiting their usefulness as a comparative measure.
Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between Omnicell's non-GAAP and GAAP financial results is set forth in the financial tables at the end of this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results that are contained in this press release and in Omnicell's SEC filings.
With respect to the Company's expectations under "2018 Guidance" above, and regarding certain projections discussed on today's teleconference, reconciliation of non-GAAP earnings ranges per share guidance for 2018, to the closest corresponding GAAP measures is not available without unreasonable efforts as we are unable to predict with reasonable certainty the matters we would allocate to "certain items," including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, complex, depend on various factors, have low visibility and could have a material impact on GAAP EPS in future periods.
Omnicell, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended
March 31, December 31, 2017 March 31, 2017
2018
As Adjusted* As Reported Change As Adjusted* As Reported Change
----------- ----------- ------ ----------- ----------- ------
Revenues:
Product $130,104 $144,109 $144,120 $(11) $98,702 $98,930 $(228)
Services and other
revenues 52,515 52,262 53,824 (1,562) 49,851 51,624 (1,773)
------ ------ ------ ------ ------ ------ ------
Total revenues 182,619 196,371 197,944 (1,573) 148,553 150,554 (2,001)
------- ------- ------- ------ ------- ------- ------
Cost of revenues:
Cost of product revenues 75,417 79,791 79,791 - 63,588 63,588 -
Cost of services and
other revenues 24,747 23,085 23,085 - 22,774 22,774 -
------ ------ ------ --- ------ ------ ---
Total cost of revenues 100,164 102,876 102,876 - 86,362 86,362 -
------- ------- ------- --- ------ ------ ---
Gross profit 82,455 93,495 95,068 (1,573) 62,191 64,192 (2,001)
Operating expenses:
Research and development 16,537 15,894 15,894 - 16,803 16,803 -
Selling, general and
administrative 65,285 61,401 63,494 (2,093) 61,940 64,625 (2,685)
Total operating expenses 81,822 77,295 79,388 (2,093) 78,743 81,428 (2,685)
------ ------ ------ ------ ------ ------ ------
Income (loss) from
operations 633 16,200 15,680 520 (16,552) (17,236) 684
Interest and other income
(expense), net (2,729) (1,641) (1,641) - (2,456) (2,456) -
------ ------ ------ --- ------ ------ ---
Income (loss) before
provision for income
taxes (2,096) 14,559 14,039 520 (19,008) (19,692) 684
Provision for (benefit
from) income taxes (4,816) (16,665) (10,252) (6,413) (8,673) (8,938) 265
Net income (loss) $2,720 $31,224 $24,291 $6,933 $(10,335) $(10,754) $419
====== ======= ======= ====== ======== ======== ====
Net income (loss) per share:
Basic $0.07 $0.82 $0.64 $0.18 $(0.28) $(0.29) $0.01
Diluted $0.07 $0.79 $0.62 $0.17 $(0.28) $(0.29) $0.01
Weighted average shares outstanding:
Basic 38,635 38,127 38,127 36,840 36,840
Diluted 39,691 39,482 39,482 36,840 36,840
* As adjusted for full
retrospective adoption of
Accounting Standard
Codification ("ASC") 606,
"Revenue from Contracts with
Customers".
Omnicell, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
March 31, December 31, 2017
2018
As Adjusted* As Reported Change
----------- ----------- ------
ASSETS
Current assets:
Cash and cash equivalents $43,773 $32,424 $32,424 $ -
Accounts receivable and unbilled, net 190,678 190,046 189,227 819
Inventories 101,868 96,137 96,137 -
Prepaid expenses 21,161 20,392 36,060 (15,668)
Other current assets 14,751 13,273 13,273 -
------ ------ ------ ---
Total current assets 372,231 352,272 367,121 (14,849)
Property and equipment, net 48,290 42,595 42,595 -
Long-term investment in sales-type
leases, net 16,444 15,435 15,435 -
Goodwill 338,948 337,751 337,751 -
Intangible assets, net 162,458 168,107 168,107 -
Long-term deferred tax assets 9,456 9,454 9,454 -
Prepaid commissions 39,636 41,432 - 41,432
Other long-term assets 53,492 49,316 39,841 9,475
Total assets $1,040,955 $1,016,362 $980,304 $36,058
========== ========== ======== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $37,859 $48,290 $48,290 $ -
Accrued compensation 29,632 27,241 27,241 -
Accrued liabilities 40,519 35,693 35,693 -
Long-term debt, current portion, net 17,708 15,208 15,208 -
Deferred revenue, net 95,709 78,774 86,104 (7,330)
------ ------ ------ ------
Total current liabilities 221,427 205,206 212,536 (7,330)
Long-term, deferred revenue 8,806 10,623 17,244 (6,621)
Long-term deferred tax liabilities 36,320 41,446 28,579 12,867
Other long-term liabilities 9,410 9,829 9,829 -
Long-term debt, net 190,490 194,917 194,917 -
------- ------- ------- ---
Total liabilities 466,453 462,021 463,105 (1,084)
Total stockholders' equity 574,502 554,341 517,199 37,142
Total liabilities and stockholders'
equity $1,040,955 $1,016,362 $980,304 $36,058
========== ========== ======== =======
* As adjusted for full
retrospective adoption of
Accounting Standard
Codification ("ASC") 606,
"Revenue from Contracts with
Customers".
Omnicell, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three months ended March 31,
2018 2017*
---- ----
Operating Activities
Net
income
(loss) $2,720 $(10,335)
Adjustments to
reconcile net income
to net cash provided
by operating
activities:
Depreciation
and
amortization 12,310 12,448
Share-
based
compensation
expense 6,528 5,511
Income
tax
benefits
from
employee
stock
plans - 11
Deferred
income
taxes (5,128) (8,826)
Amortization
of
debt
financing
fees 573 397
Changes in operating
assets and
liabilities:
Accounts
receivable (632) 21,642
Inventories (6,881) (6,933)
Prepaid
expenses (769) 79
Other
current
assets (997) 374
Investment
in
sales-
type
leases (1,491) 1,120
Prepaid
commissions 1,796 208
Other
long-
term
assets (1,673) (9,435)
Accounts
payable (9,416) 11,104
Accrued
compensation 2,391 1,955
Accrued
liabilities 4,276 (115)
Deferred
revenue 15,118 8,471
Other
long-
term
liabilities 131 506
Net
cash
provided
by
operating
activities 18,856 28,182
------ ------
Investing Activities
Purchases
of
intangible
assets,
intellectual
property
and
patents - (160)
Software
development
for
external
use (5,272) (4,225)
Purchases
of
property
and
equipment (9,268) (2,452)
Net
cash
used
in
investing
activities (14,540) (6,837)
------- ------
Financing Activities
Repayment
of
debt
and
revolving
credit
facility (2,500) (40,000)
Proceeds
from
issuances
under
stock-
based
compensation
plans 9,541 10,916
Employees'
taxes
paid
related
to
restricted
stock
units (1,300) (1,052)
Net
cash
provided
by
(used
in)
financing
activities 5,741 (30,136)
Effect
of
exchange
rate
changes
on
cash
and
cash
equivalents 1,292 651
----- ---
Net
increase
(decrease)
in
cash
and
cash
equivalents 11,349 (8,140)
Cash
and
cash
equivalents
at
beginning
of
period 32,424 54,488
Cash
and
cash
equivalents
at
end
of
period $43,773 $46,348
======= =======
* As adjusted for full
retrospective adoption of
Accounting Standard
Codification ("ASC") 606,
"Revenue from Contracts with
Customers".
Omnicell, Inc.
Reconciliation of GAAP to Non-GAAP
(Unaudited, in thousands, except per share data and percentage)
Three Months Ended
March 31, December 31, March 31,
2018 2017* 2017*
---- ---- ----
Reconciliation of GAAP revenue to non-GAAP revenue:
GAAP revenue $182,619 $196,371 $148,553
Acquisition accounting
impact related to
deferred revenue - 313 313
---------------
Non-GAAP revenue $182,619 $196,684 $148,866
======== ======== ========
Reconciliation of GAAP gross profit to non-GAAP gross profit:
GAAP gross profit $82,455 $93,495 $62,191
GAAP gross margin 45.2% 47.6% 41.9%
Share-based
compensation expense 1,019 834 982
Amortization of
acquired intangibles 2,791 2,818 2,837
Acquisition accounting
impact related to
deferred revenue - 313 313
Severance and other
expenses - 234 1,697
===============
Non-GAAP gross profit $86,265 $97,694 $68,020
======= ======= =======
Non-GAAP gross margin 47.2% 49.7% 45.7%
Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
GAAP operating expenses $81,822 $77,295 $78,743
GAAP operating expenses % to total revenue 44.8% 39.4% 53.0%
Share-based
compensation expense (5,509) (4,708) (4,529)
Amortization of
acquired intangibles (3,238) (3,348) (3,653)
Acquisitions related
expenses - - (126)
Severance and other
expenses (1,512) (233) (2,332)
Non-GAAP operating expenses $71,563 $69,006 $68,103
======= ======= =======
Non-GAAP operating expenses % to total revenue 39.2% 35.1% 45.7%
* As adjusted for full retrospective adoption of Accounting Standard Codification ("ASC") 606, "Revenue from Contracts with Customers".
Three Months Ended
March 31, December 31, March 31,
2018 2017* 2017*
---- ---- ----
Reconciliation of GAAP income (loss) from operations to non-GAAP income (loss) from operations:
GAAP income (loss) from operations $633 $16,200 $(16,552)
GAAP operating income (loss) % to total revenue 0.3% 8.2% (11.1)%
Share-based
compensation expense 6,528 5,542 5,511
Amortization of
acquired intangibles 6,029 6,166 6,490
Acquisition accounting
impact related to
deferred revenue - 313 313
Acquisitions related
expenses - - 126
Severance and other
expenses 1,512 467 4,029
Non-GAAP income (loss) from operations $14,702 $28,688 $(83)
======= ======= ====
Non-GAAP operating income (loss) % to total Non-
GAAP revenue 8.1% 14.6% (0.1)%
Reconciliation of GAAP net income (loss) to non-GAAP net income:
GAAP net income (loss) $2,720 $31,224 $(10,335)
Tax reform benefit
impact - (20,005) -
Tax benefit for
restructuring
activity (4,205) - -
Share-based
compensation expense 6,528 5,542 5,511
Amortization of
acquired intangibles 6,029 6,166 6,490
Acquisition accounting
impact related to
deferred revenue - 313 313
Acquisitions related
expenses(c) 397 397 523
Severance and other
expenses 1,688 467 4,029
Tax effect of the
adjustments above(a) (1,703) (2,570) (4,019)
Non-GAAP net income $11,454 $21,534 $2,512
======= ======= ======
Reconciliation of GAAP net income (loss) per share - diluted to non-GAAP net income per share - diluted:
Shares - diluted GAAP 39,691 39,482 36,840
------ ------ ------
Shares - diluted Non-GAAP 39,691 39,482 37,782
------ ------ ------
GAAP net income (loss) per share - diluted $0.07 $0.79 $(0.28)
Tax reform benefit
impact - (0.50) -
Tax benefit for
restructuring
activity (0.10) - -
Share-based
compensation expense 0.16 0.14 0.15
Amortization of
acquired intangibles 0.15 0.16 0.17
Acquisition accounting
impact related to
deferred revenue - 0.01 0.01
Acquisition related
expenses 0.01 0.01 0.01
Severance and other
expenses 0.04 0.01 0.11
Tax effect of the
adjustments above(a) (0.04) (0.07) (0.10)
---------------
Non-GAAP net income per share - diluted $0.29 $0.55 $0.07
===== ===== =====
Reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA(b):
GAAP net income (loss) $2,720 $31,224 $(10,335)
Share-based
compensation expense 6,528 5,542 5,511
Interest (income) and
expense, net 1,772 1,202 1,432
Depreciation and
amortization expense 12,310 12,969 12,448
Acquisition accounting
impact related to
deferred revenue - 313 313
Acquisitions related
expenses 397 397 523
Severance expense 1,688 213 3,765
Income tax expense (4,816) (16,665) (8,673)
Non-GAAP Adjusted EBITDA $20,599 $35,195 $4,984
======= ======= ======
(a) Tax effects calculated for all
adjustments except tax benefits
and share-based compensation
expense, using an estimated annual
effective tax rate of 21% for
fiscal year 2018 and 35% for
fiscal year 2017.
(b) Defined as earnings before interest
income and expense, taxes,
depreciation and amortization, as
well as excluding certain non-
GAAP adjustments.
(c) Includes amortization of debt
financing fees associated with our
debt facilities.
Omnicell, Inc.
Segmented Information
(Unaudited, in thousands, except for percentages)
Three Months Ended March 31, 2018 Three Months Ended March 31, 2017
Automation Medication Total Automation Medication Total*
and Adherence and
Analytics Adherence
Analytics *
---
Revenues $151,406 $31,213 $182,619 $122,170 $26,383 $148,553
Cost of revenues 78,242 21,922 100,164 68,761 17,601 86,362
Gross profit 73,164 9,291 82,455 53,409 8,782 62,191
------ ----- ------ ------ ----- ------
Gross margin % 48.3% 29.8% 45.2% 43.7% 33.3% 41.9%
Operating
expenses 48,390 10,199 58,589 48,062 11,196 59,258
Income (loss)
from segment
operations $24,774 $(908) $23,866 $5,347 $(2,414) $2,933
======= ===== ======= ====== ======= ======
Operating margin
% 16.4% (2.9)% 13.1% 4.4% (9.1)% 2.0%
Corporate costs 23,233 19,485
------ ------
Income (loss) from operations $633 $(16,552)
==== ========
* As adjusted for full
retrospective adoption of
Accounting Standard
Codification ("ASC") 606,
"Revenue from Contracts with
Customers".
Omnicell, Inc.
Segment Information - Non-GAAP Gross Profit and Non-GAAP Operating Margin
(Unaudited, in thousands, except for percentages)
Three Months Ended March 31, 2018
Automation Medication Total
and Adherence
Analytics
Amount % of % of Amount % of % of Amount % of % of
GAAP Non- GAAP Non- GAAP Non-
Revenue GAAP Revenue GAAP Revenue GAAP
Revenue Revenue Revenue
-------
Revenues $151,406 $31,213 $182,619
Non-GAAP Revenues $151,406 $31,213 $182,619
======== ======= ========
GAAP Gross profit $73,164 48.3% $9,291 29.8% $82,455 45.2%
Share-based compensation expense 873 0.6% 0.6% 146 0.5% 0.5% 1,019 0.6% 0.6%
Amortization expense of acquired
intangible assets 2,247 1.5% 1.5% 544 1.7% 1.7% 2,791 1.5% 1.5%
Non-GAAP Gross profit $76,284 50.4% $9,981 32.0% $86,265 47.2%
======= ====== =======
GAAP Operating income (loss) $24,774 16.4% $(908) (2.9)% $23,866 13.1%
Share-based compensation expense 2,730 1.8% 1.8% 446 1.4% 1.4% 3,176 1.7% 1.7%
Amortization expense of acquired
intangible assets 4,302 2.8% 2.8% 1,727 5.5% 5.5% 6,029 3.3% 3.3%
Severance and other expenses 375 0.2% 0.2% 71 0.2% 0.2% 446 0.2% 0.2%
--- --- ---
Non-GAAP Operating income $32,181 21.3% $1,336 4.3% $33,517 18.4%
======= ====== =======
GAAP Corporate costs $23,233 12.7%
Share-based compensation expense (3,352) (1.8)% (1.8)%
Severance and other expenses (1,066) (0.6)% (0.6)%
------
Non-GAAP Corporate costs $18,815 10.3%
Non-GAAP Income from operations $14,702 8.1%
=======
Omnicell, Inc.
Segment Information - Non-GAAP Gross Profit and Non-GAAP Operating Margin
(Unaudited, in thousands, except for percentages)
Three Months Ended March 31, 2017
Automation and Medication Total*
Analytics* Adherence
Amount % of % of Amount % of % of Amount % of % of
GAAP Non- GAAP Non-GAAP
Revenue GAAP Non-
Revenue GAAP Revenue Revenue GAAP
Revenue Revenue
Revenues $122,170 $26,383 $148,553
Acquisition accounting impact
related to deferred revenue - - % - % 313 1.2% 1.2% 313 0.2% 0.2%
Non-GAAP Revenues $122,170 $26,696 $148,866
======== ======= ========
GAAP Gross profit $53,409 43.7% $8,782 33.3% $62,191 41.9%
Stock-based compensation expense 863 0.7% 0.7% 119 0.5% 0.4% 982 0.7% 0.7%
Amortization expense of acquired
intangible assets 2,187 1.8% 1.8% 650 2.5% 2.4% 2,837 1.9% 1.9%
Acquisition accounting impact
related to deferred revenue - - % - % 313 1.2% 1.2% 313 0.2% 0.2%
Severance and other expenses 1,266 1.0% 1.0% 431 1.6% 1.6% 1,697 1.1% 1.1%
----- --- -----
Non-GAAP Gross profit $57,725 47.2% $10,295 38.6% - $68,020 45.7%
======= ======= === =======
GAAP Operating income (loss) $5,347 4.4% $(2,414) (9.1)% $2,933 2.0%
Stock-based compensation expense 2,500 2.0% 2.0% 366 1.4% 1.4% 2,866 1.9% 1.9%
Amortization expense of acquired
intangible assets 4,506 3.7% 3.7% 1,984 7.5% 7.4% 6,490 4.4% 4.4%
Acquisition accounting impact
related to deferred revenue - - % - % 313 1.2% 1.2% 313 0.2% 0.2%
Acquisitions related expenses 18 - % - % - - % - % 18 - % - %
Severance and other expenses 2,752 2.3% 2.3% 596 2.3% 2.2% 3,348 2.3% 2.2%
----- --- -----
Non-GAAP Operating income $15,123 12.4% $845 3.2% $15,968 10.7%
======= ==== =======
GAAP Corporate costs $19,485 13.1%
Stock-based compensation expense (2,645) (1.8)% (1.8)%
Acquisition related expenses (108) (0.1)% (0.1)%
Severance and other expenses (681) (0.5)% (0.5)%
----
Non-GAAP Corporate costs $16,051 10.8%
Non-GAAP loss from operations $(83) (0.1)%
====
* As adjusted for full
retrospective adoption of
Accounting Standard
Codification ("ASC") 606,
"Revenue from Contracts with
Customers".
OMCL-E
