OMNICELL, INC. MOUNTAIN VIEW, Calif., July 28, 2016 /PRNewswire/ -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its second quarter ended June 30, 2016.
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GAAP results: Revenue for the second quarter of 2016 was $172.9 million, up $1.9 million, or 1.1% from the first quarter of 2016, and up $60.1 million or 53.3% from the second quarter of 2015. Revenue for the six months ended June 30, 2016 was $343.9 million, up $114.9 million or 50.2% from the six months ended June 30, 2015.
Second quarter 2016 net loss as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $(1.2) million, or $(0.03) per diluted share. This compares to GAAP net loss of $(0.4) million, or $(0.01) per diluted share, for the first quarter of 2016, and GAAP net income of $8.8 million, or $0.24 per diluted share, for the second quarter of 2015.
GAAP net loss for the six months ended June 30, 2016 was $(1.5) million, or $(0.04) per diluted share. GAAP net income for the six months ended June 30, 2015 was $15.1 million, or $0.41 per diluted share, which included a $3.4 million gain on business combination of an equity investment.
Non-GAAP results: Non-GAAP revenue for the second quarter of 2016 was $175.6 million, up $1.9 million, or 1.1% from the first quarter of 2016, and up $62.8 million or 55.7% from the second quarter of 2015.
Non-GAAP net income for the second quarter of 2016 was $13.9 million, or $0.38 per diluted share, excluding $5.5 million of stock-based compensation expense, $5.6 million, net of tax effect of $3.5 million, of intangible assets amortization expense, $1.7 million, net of tax effect of $1.0 million, of acquisition related expenses for the Aesynt acquisition, and $0.6 million, net of tax effect of $0.3 million, of inventory fair value adjustments. Non-GAAP net income includes the effect of a deferred revenue fair value adjustment of $1.7 million, net of tax effect of $1.0 million. This compares to non-GAAP net income for the first quarter 2016 of $12.9 million, or $0.35 per diluted share, excluding $3.9 million of stock-based compensation expense, $5.7 million, net of tax effect of $3.5 million, of intangible assets amortization expense, $1.4 million, net of tax effect of $0.9 million, of acquisition related expenses for the Aesynt acquisition, and $0.6 million, net of tax effect of $0.3 million, of inventory fair value adjustments. Non-GAAP net income for the first quarter of 2016 also includes the effect of a deferred revenue fair value adjustment of $1.7 million, net of tax effect of $1.0 million. Non-GAAP net income for the second quarter of 2015 was $10.3 million, or $0.28 per diluted share, which excluded $3.6 million of stock-based compensation expense and $1.3 million, net of tax effect of $0.5 million, of amortization expense for all intangible assets associated with past acquisitions. Non-GAAP net income for the second quarter also excludes a $3.4 million gain on an equity investment in Avantec Healthcare Ltd.
Non-GAAP net income for the six months ended June 30, 2016 was $26.7 million, or $0.73 per diluted share, excluding $9.4 million of stock-based compensation expense, $11.3 million, net of tax effect of $6.9 million, of intangible assets amortization expense, $3.2 million, net of tax effect of $1.9 million, of acquisition related expenses for the Aesynt acquisition, and $1.1 million, net of tax effect of 0.7 million, of inventory fair value adjustments. Non-GAAP net income includes the effect of a deferred revenue fair value adjustment of $3.3 million, net of tax effect of $2.0 million. This compares to non-GAAP net income of $21.0 million, or $0.57 per diluted share for the six months ended June 30, 2015, which excludes $7.3 million of stock-based compensation expense and $2.1 million, net of tax effect of $0.9 million of amortization expense for intangible assets associated with past acquisitions. Non-GAAP net income for the six months ended June 30, 2015 also excludes a $3.4 million gain on an equity investment in Avantec Healthcare Ltd.
"Once again, Omnicell's second quarter was marked by record revenues bolstered by the strength of our expanded portfolio that delivers our customers unmatched innovation and flexibility," said Randall Lipps, President, CEO and Chairman. "I am pleased that we have completed the first phase of the Aesynt integration and are seeing health systems, both existing and new customers, assessing their needs for improved efficiency and safety, evaluating our breath of solutions, and choosing Omnicell."
Third Quarter 2016 Guidance
For the third quarter of 2016, the company expects Non-GAAP revenue to be between $176 million and $183 million and Non-GAAP EPS to be between $0.38 and $0.42 per share.
For full year 2016, the Company is re-confirming its 2016 total year guidance which remains unchanged. The Company expects Product bookings to be between $540 million and $560 million. The Company now expects 2016 Non-GAAP revenue to be at the higher end of the range of $695 million to $715 million. The Company expects 2016 Non-GAAP EPS to be between $1.50 and $1.60 per share.
Omnicell Conference Call Information
Omnicell will hold a conference call today, Thursday, July 28, 2016 at 1:30 p.m. PT to discuss second 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 49810388. 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 August 26, 2016. 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 49810388.
About Omnicell
Since 1992, Omnicell (OMCL) has been creating innovative solutions to improve patient care, anywhere it is delivered. Omnicell is a leading supplier of comprehensive automation and business analytics software for medication and supply management across the entire health care continuum--from the acute care hospital setting, to post-acute skilled nursing and long-term care facilities, to the patient's home.
Over 4,000 customers worldwide use Omnicell automation and analytics solutions to increase operational efficiency, reduce medication errors, deliver actionable intelligence and improve patient safety. The recent acquisition of Aesynt adds distinct capabilities, particularly in central pharmacy and IV robotics, creating the broadest medication management product portfolio in the industry.
The Omnicell SureMed solution provides innovative medication adherence packaging to help reduce costly hospital readmissions. In addition, these solutions help enable approximately 7,000 institutional and retail pharmacies worldwide to maintain high accuracy and quality standards in medication dispensing and administration while optimizing productivity and controlling costs.
For more information about Omnicell, please visit www.omnicell.com.
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 momentum, pipeline and new sales opportunities, profit and revenue growth, and the success of Omnicell's strategy for growth, including differentiated products, expansion into new markets and targeted acquisitions. Risks that contribute to the uncertain nature of the forward-looking statements include our ability to take advantage of the growth opportunities in medication management across the spectrum of healthcare settings from long term care to home care, unfavorable general economic and market conditions, risks to growth and acceptance of our products and services, including competitive conversions, and to growth of the clinical automation and workflow automation market generally, the potential of increasing competition, potential regulatory changes, the ability of the company to improve sales productivity to grow product bookings, to develop new products and to acquire and successfully integrate companies, such as Aesynt. These and other risks and uncertainties are described more fully in Omnicell's most recent filings with the Securities and Exchange Commission. 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 U.S. generally accepted accounting principles (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 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) Stock-based compensation expense impact of Accounting Standards Codification (ASC) 718. 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) Intangible assets amortization from business acquisitions. 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 our acquisition of Aesynt, 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 our 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 our 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) Acquisitions related expenses. We excluded from our non-GAAP results the expenses which are related to the 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. Further, these expenses are not considered by management to reflect the core performance of the business and therefore are excluded from our non-GAAP results.
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.
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 related to ASC 718 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 excluding 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.
Omnicell, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, 2016 March 31, 2016 June 30, 2015 June 30, 2016 June 30, 2015
------------- -------------- ------------- ------------- -------------
Revenues:
Product $130,674 $127,895 $89,154 $258,569 $183,263
Services and other
revenues 42,233 43,109 23,634 85,342 45,746
------ ------ ------ ------ ------
Total revenues 172,907 171,004 112,788 343,911 229,009
------- ------- ------- ------- -------
Cost of revenues:
Cost of product revenues 76,306 71,918 46,203 148,224 91,619
Cost of services and
other revenues 18,584 19,141 9,123 37,725 18,243
------ ------ ----- ------ ------
Total cost of revenues 94,890 91,059 55,326 185,949 109,862
------ ------ ------ ------- -------
Gross profit 78,017 79,945 57,462 157,962 119,147
Operating expenses:
Research and development 13,794 13,838 8,746 27,632 16,765
Selling, general and
administrative 64,341 64,255 39,735 128,596 83,022
Gain on business
combination - - (3,443) (3,443)
--- --- ------ ------
Total operating expenses 78,135 78,093 45,038 156,228 96,344
------ ------ ------ ------- ------
(Loss) income from
operations (118) 1,852 12,424 1,734 22,803
Interest and other
income (expense), net (1,881) (2,171) (472) (4,052) (989)
------ ------ ---- ------ ----
(Loss) income before
provision for income
taxes (1,999) (319) 11,952 (2,318) 21,814
(Benefit) provision for
income taxes (840) 59 3,201 (781) 6,745
Net (loss) income $(1,159) $(378) $8,751 $(1,537) $15,069
======= ===== ====== ======= =======
Net (loss) income per share:
Basic $(0.03) $(0.01) $0.24 $(0.04) $0.42
Diluted $(0.03) $(0.01) $0.24 $(0.04) $0.41
Weighted average shares outstanding:
Basic 35,987 35,740 36,120 35,864 36,072
Diluted 35,987 35,740 37,030 35,864 36,987
Omnicell, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
June 30, 2016 December 31,
2015
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $41,029 $82,217
Accounts receivable, net 159,453 107,957
Inventories 73,720 46,594
Prepaid expenses 28,690 19,586
Other current assets 9,024 7,774
----- -----
Total current assets 311,916 264,128
Property and equipment, net 40,503 32,309
Long-term investment in sales-type
leases, net 19,711 14,484
Goodwill 311,170 147,906
Intangible assets, net 196,475 89,665
Long-term deferred tax assets 2,920 2,361
Other long-term assets 30,733 27,894
Total assets $913,428 $578,747
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $37,365 $22,646
Accrued compensation 28,014 18,195
Accrued liabilities 32,674 30,133
Long-term debt, current portion, net 8,410 -
Deferred revenue, net 84,852 53,656
------ ------
Total current liabilities 191,315 124,630
Long-term, deferred revenue 17,473 17,975
Long-term deferred tax liabilities 62,431 21,822
Other long-term liabilities 12,074 11,932
Long-term debt, net 216,936 -
------- ---
Total liabilities 500,229 176,359
Total stockholders' equity 413,199 402,388
Total liabilities and stockholders' equity $913,428 $578,747
======== ========
Omnicell, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Six months ended June 30,
2016 2015
---- ----
Operating Activities
Net (loss)
income $(1,537) $15,069
Adjustments to reconcile net
(loss) income to net cash
provided by operating
activities:
Depreciation
and
amortization 29,197 11,977
Loss (gain)
on disposal
of fixed
assets 1 (5)
Gain on
business
combination - (3,443)
Provision
for
receivable
allowance 364 480
Share-based
compensation
expense 9,386 7,301
Income tax
benefits
from
employee
stock plans 681 3,087
Excess tax
benefits
from
employee
stock plans (934) (3,159)
Provision
for excess
and
obsolete
inventories 850 168
Deferred
income
taxes (3,877) (1,717)
Amortization
of debt
financing
fees 795 -
Changes in operating assets
and liabilities:
Accounts
receivable (8,139) (27,676)
Inventories (7,769) (9,633)
Prepaid
expenses (4,852) 8,234
Other
current
assets 78 1,507
Investment
in sales-
type leases (6,558) 353
Other long-
term assets 1,019 64
Accounts
payable 6,736 1,364
Accrued
compensation 210 (1,654)
Accrued
liabilities (2,195) 5,752
Deferred
revenue 4,895 3,116
Other long-
term
liabilities (2,398) (995)
Net cash
provided by
operating
activities 15,953 10,190
------ ------
Investing Activities
Purchases of
intangible
assets,
intellectual
property
and patents (1,185) (225)
Software
development
for
external
use (6,681) (6,127)
Purchases of
property
and
equipment (5,938) (3,764)
Business
acquisition,
net of cash
acquired (271,458) (23,625)
-------- -------
Net cash
used in
investing
activities (285,262) (33,741)
-------- -------
Financing Activities
Proceeds
from debt,
net 247,051 -
Repayment of
debt and
revolving
credit
facility (22,500) -
Payment for
contingent
consideration (3,000) -
Proceeds
from
issuances
under
stock-
based
compensation
plans 8,639 9,432
Employees'
taxes paid
related to
restricted
stock units (1,563) (2,046)
Excess tax
benefits
from
employee
stock plans 934 3,159
Common stock
repurchases - (25,021)
Net cash
provided by
(used in)
financing
activities 229,561 (14,476)
Effect of
exchange
rate
changes on
cash and
cash
equivalents (1,440) 167
------ ---
Net decrease
in cash and
cash
equivalents (41,188) (37,860)
Cash and
cash
equivalents
at
beginning
of period 82,217 125,888
Cash and
cash
equivalents
at end of
period $41,029 $88,028
======= =======
Omnicell, Inc.
Reconciliation of GAAP to Non-GAAP
(Unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, 2016 March 31, 2016 June 30, 2015 June 30, 2016 June 30, 2015
------------- -------------- ------------- ------------- -------------
Reconciliation of GAAP net (loss) income to non-GAAP net income:
GAAP net (loss) income $(1,159) $(378) $8,751 $(1,537) $15,069
Adjustments:
Share-based
compensation expense 5,495 3,891 3,636 9,386 7,301
Amortization of
acquired intangibles 9,052 9,159 1,810 18,211 3,041
Acquisition accounting
impact related to
deferred revenue 2,663 2,663 - 5,326 -
Inventory fair value
adjustments 920 921 - 1,841 -
Acquisitions related
expenses* 2,749 2,349 - 5,098 -
Gain on business
combination - - (3,443) - (3,443)
Tax effect of the
adjustments above(a) (5,846) (5,735) (485) (11,581) (928)
Non-GAAP net income $13,874 $12,870 $10,269 $26,744 $21,040
======= ======= ======= ======= =======
Reconciliation of GAAP revenue to non-GAAP revenue:
Revenues $172,907 $171,004 $112,788 $343,911 $229,009
Acquisition accounting
impact related to
deferred revenue 2,663 2,663 - 5,326 -
---------------
Non-GAAP revenue $175,570 $173,667 $112,788 $349,237 $229,009
======== ======== ======== ======== ========
Reconciliation of GAAP gross profit to non-GAAP gross profit:
GAAP gross profit $78,017 $79,945 $57,462 $157,962 $119,147
GAAP gross margin 45.1% 46.8% 50.9% 45.9% 52.0%
Share-based
compensation expense 644 549 532 1,193 1,049
Amortization of
acquired intangibles 5,214 5,211 531 10,425 899
Acquisition accounting
impact related to
deferred revenue 2,663 2,663 - 5,326 -
Inventory fair value
adjustments 920 921 - 1,841 -
Acquisitions related
expenses 227 - - 227 -
---------------
Non-GAAP gross profit $87,685 $89,289 $58,525 $176,974 $121,095
======= ======= ======= ======== ========
Non-GAAP gross margin 49.9% 51.4% 51.9% 50.7% 52.9%
Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
GAAP operating expenses $78,135 $78,093 $45,038 $156,228 $96,344
GAAP operating
expenses % to total
revenue 45.2% 45.7% 39.9% 45.4% 42.1%
Share-based
compensation expense (4,851) (3,342) (3,104) (8,193) (6,252)
Amortization of
acquired intangibles (3,838) (3,948) (1,279) (7,786) (2,142)
Acquisitions related
expenses (1,727) (2,349) - (4,076) -
Gain on business
combination - - 3,443 - 3,443
Non-GAAP operating expenses $67,719 $68,454 $44,098 $136,173 $91,393
======= ======= ======= ======== =======
Non-GAAP operating expenses % to total revenue 38.6% 40.0% 39.1% 39.0% 39.9%
Three Months Ended Six Months Ended
------------------ ----------------
June 30, 2016 March 31, 2016 June 30, 2015 June 30, 2016 June 30, 2015
------------- -------------- ------------- ------------- -------------
Reconciliation of GAAP (loss) income from operations to non-GAAP income from operations:
GAAP (loss) income from operations $(118) $1,852 $12,424 $1,734 $22,803
GAAP operating income
% to total revenue (0.1)% 1.1% 11.0% 0.5% 10.0%
Share-based
compensation expense 5,495 3,891 3,636 9,386 7,301
Amortization of
acquired intangibles 9,052 9,159 1,810 18,211 3,041
Acquisition accounting
impact related to
deferred revenue 2,663 2,663 - 5,326 -
Inventory fair value
adjustments 920 921 - 1,841 -
Acquisitions related
expenses 1,954 2,349 - 4,303 -
Gain on business combination - - (3,443) - (3,443)
--- --- ------ --- ------
Non-GAAP income from operations $19,966 $20,835 $14,427 $40,801 $29,702
======= ======= ======= ======= =======
Non-GAAP operating income % to total Non-GAAP
revenue 11.4% 12.0% 12.8% 11.7% 13.0%
Reconciliation of GAAP net (loss) income per share - diluted to non-GAAP net income per share - diluted:
Shares - diluted GAAP 35,987 35,740 37,030 35,864 36,987
------ ------ ------ ------ ------
Shares - diluted Non-GAAP 36,649 36,307 37,030 36,488 36,987
------ ------ ------ ------ ------
GAAP net (loss) income per share - diluted $(0.03) $(0.01) $0.24 $(0.04) $0.41
Adjustments:
Share-based
compensation expense 0.15 0.11 0.10 0.26 0.20
Amortization of
acquired intangibles 0.25 0.25 0.05 0.50 0.08
Acquisition accounting
impact related to
deferred revenue 0.07 0.07 - 0.15 -
Inventory fair value
adjustments 0.03 0.03 - 0.05 -
Acquisitions related
expenses 0.08 0.06 - 0.14 -
Gain on business
combination - - (0.10) - (0.10)
Tax effect of the
adjustments above(a) (0.17) (0.16) (0.01) (0.33) (0.02)
---------------
Non-GAAP net income per share - diluted $0.38 $0.35 $0.28 $0.73 $0.57
===== ===== ===== ===== =====
Reconciliation of GAAP net (loss) income to non-GAAP Adjusted EBITDA:
GAAP net (loss) income $(1,159) $(378) $8,751 $(1,537) $15,069
Add back:
Share-based
compensation expense 5,495 3,891 3,636 9,386 7,301
Interest (income) and
expense, net 1,348 1,747 84 3,095 183
Depreciation and
amortization expense 14,724 14,473 6,264 29,197 11,975
Acquisition accounting
impact related to
deferred revenue 2,663 2,663 - 5,326 -
Inventory fair value
adjustments 920 921 - 1,841 -
Acquisitions related
expenses* 2,749 2,349 - 5,098 -
Gain on business
combination - - (3,443) - (3,443)
Income tax expense (840) 59 3,201 (781) 6,745
Non-GAAP Adjusted EBITDA (b) $25,900 $25,725 $18,493 $51,625 $37,830
======= ======= ======= ======= =======
___________________________________________
* Included in the Acquisitions related expenses are severance expenses related to the restructuring of
$1.7 million for three and six months ended June 30, 2016.
(a) Tax effects calculated for all adjustments except share based compensation expense, using the
estimated annual effective tax rate of 38% for fiscal year 2016.
(b) Defined as earnings before interest income and expense, taxes, depreciation and amortization, share-
based compensation expense, as well as excluding certain non-GAAP adjustments.
Omnicell, Inc.
Segmented Information
(Unaudited, in thousands, except for percentages)
Three months ended June 30, 2016 Three Months Ended June 30, 2015
-------------------------------- --------------------------------
Automation and Medication Total Automation and Medication Total
Analytics Adherence
Analytics Adherence
---
Revenues $148,660 $24,247 $172,907 $88,701 $24,087 $112,788
Cost of revenues 78,366 16,524 94,890 39,403 15,923 55,326
------ ------
Gross profit 70,294 7,723 78,017 49,298 8,164 57,462
------ ----- ------ ------ ----- ------
Gross margin % 47.3% 31.9% 45.1% 55.6% 33.9% 50.9%
Operating
expenses 49,780 5,771 55,551 25,978 5,910 31,888
Income from
segment
operations $20,514 $1,952 22,466 $23,320 $2,254 25,574
======= ====== ====== ======= ====== ======
Operating margin
% 13.8% 8.1% 13.0% 26.3% 9.4% 22.7%
Corporate costs 22,584 13,150
------ ------
Loss (income) from operations $(118) $12,424
===== =======
Omnicell, Inc.
Segmented Information
(Unaudited, in thousands, except for percentages)
Six months ended June 30, 2016 Six months ended June 30, 2015
------------------------------ ------------------------------
Automation and Medication Total Automation and Medication Total
Analytics Adherence
Analytics Adherence
---
Revenues $297,605 $46,306 $343,911 $181,480 $47,529 $229,009
Cost of revenues 155,573 30,376 185,949 78,255 31,607 109,862
------- ------ ------- ------ ------ -------
Gross profit 142,032 15,930 157,962 103,225 15,922 119,147
------- ------ ------- ------- ------ -------
Gross margin % 47.7% 34.4% 45.9% 56.9% 33.5% 52.0%
Operating
expenses 101,985 11,382 113,367 54,567 12,251 66,818
------- ------ ------- ------ ------
Income from
segment
operations $40,047 $4,548 $44,595 $48,658 $3,671 52,329
======= ====== ======= ======= ====== ======
Operating margin
% 13.5% 9.8% 13.0% 26.8% 7.7% 22.9%
Corporate costs 42,861 29,526
Income from operations $1,734 $22,803
====== =======
Omnicell, Inc.
Segment Information - Non-GAAP Gross Margin and Non-GAAP Operating Margin
(Unaudited, in thousands, except for percentages)
Three months ended June 30, 2016
--------------------------------
Automation and Medication Total
Analytics Adherence
--------- ---------
Revenues $148,660 $24,247 $172,907
======== ======= ========
Acquisition accounting impact
related to deferred revenue 2,663 1.8% - -% 2,663 1.5%
-----
Non-GAAP Revenues $151,323 24,247 $175,570
======== ====== ========
GAAP Gross profit $70,294 47.3% $7,723 31.9% $78,017 45.1%
Stock-based compensation
expense 561 0.4% 83 0.3% 644 0.4%
Amortization expense of
acquired intangible 4,882 3.3% 332 1.4% 5,214 3.0%
assets
Acquisition accounting impact
related to deferred revenue 2,663 1.8% - -% 2,663 1.5%
Inventory fair value
adjustments 920 0.6% - -% 920 0.5%
Acquisitions related expenses 227 0.2% - -% 227 0.1%
--- --- ---
Non-GAAP Gross profit $79,547 53.5% $8,138 33.6% $87,685 50.7%
======= ====== =======
GAAP Operating income $20,514 13.8% $1,952 8.1% $22,466 13.0%
Stock-based compensation
expense 2,042 1.4% 240 1.0% 2,282 1.3%
Amortization expense of
acquired intangible 7,739 5.2% 1,313 5.4% 9,052 5.2%
assets
Acquisition accounting impact
related to deferred revenue 2,663 1.8% - -% 2,663 1.5%
Inventory fair value
adjustments 920 0.6% - -% 920 0.5%
Acquisitions related expenses 1,849 1.2% 56 0.2% 1,905 1.1%
-----
Non-GAAP Operating income $35,727 24.0% $3,561 14.7% $39,288 22.7%
======= ====== =======
GAAP Corporate costs $22,584 13.1%
Stock-based compensation expense 3,213 1.9%
Acquisition-related expenses 49 -%
---
Non-GAAP Corporate costs $19,322 11.2%
-------
Non-GAAP Income from operations $19,966 11.4%
=======
Omnicell, Inc.
Segment Information - Non-GAAP Gross Margin and Non-GAAP Operating Margin
(Unaudited, in thousands, except for percentages)
Three Months Ended June 30, 2015
--------------------------------
Automation and Medication Total
Analytics Adherence
--------- ---------
Revenues $88,701 $24,087 $112,788
======= ======= ========
GAAP Gross profit $49,298 55.6% $8,164 33.9% $57,462 50.9%
Stock-based compensation
expense 370 0.4% 162 0.7% 532 0.5%
Amortization expense of
acquired intangible 199 0.2% 332 1.4% 531 0.5%
assets
Non-GAAP Gross profit $49,867 56.2% $8,658 35.9% $58,525 51.9%
======= ====== =======
GAAP Operating income $23,320 26.3% $2,254 9.4% $25,574 22.7%
------- ------
Stock-based compensation
expense 1,207 1.4% 377 1.6% 1,584 1.4%
Amortization expense of
acquired intangible 724 0.8% 1,086 4.5% 1,810 1.6%
assets
Gain on business combination (3,443) (3.9)% $0 -% (3,443) (3.1)%
Non-GAAP Operating income $21,808 24.6% $3,717 15.4% $25,525 22.6%
======= ====== =======
GAAP Corporate costs $13,150 11.7%
Stock-based compensation expense 2,052 1.8%
-----
Non-GAAP Corporate costs $11,098 9.8%
-------
Non-GAAP Income from operations $14,427 12.8%
=======
OMCL-E
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SOURCE Omnicell, Inc.
