OMNICELL, INC. MOUNTAIN VIEW, Calif., Feb. 4, 2016 /PRNewswire/ -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its fiscal year and fourth quarter ended December 31, 2015.
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GAAP results: Revenue for the fourth quarter of 2015 was $130.3 million, up $5.1 million or 4.1% from the third quarter of 2015, and up $8.8 million or 7.2% from the fourth quarter of 2014. Revenue for the year ended December 31, 2015 was $484.6 million, up $43.7 million or 9.9% from the year ended December 31, 2014.
Fourth quarter 2015 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $7.7 million, or $0.21 per diluted share. This compares to GAAP net income of $8.0 million, or $0.22 per diluted share, for the third quarter of 2015, and GAAP net income of $9.2 million, or $0.25 per diluted share, for the fourth quarter of 2014.
GAAP net income for the year ended December 31, 2015 was $30.8 million, or $0.84 per diluted share, which includes a $3.4 million gain on business combination of an equity investment. GAAP net income was $30.5 million, or $0.83 per diluted share, for the year ended December 31, 2014.
Non-GAAP results: Non-GAAP net income for the fourth quarter of 2015 was $14.4 million, or $0.40 per diluted share, excluding $3.7 million of stock-based compensation expense, $1.2 million, net of tax effect of $0.7 million, of amortization expense for all intangible assets associated with past acquisitions and $2.0 million, net of tax effect of $0.9 million, of acquisition expenses associated with the Aesynt acquisition. This compares to non-GAAP net income of $14.3 million, or $0.39 per diluted share, for the fourth quarter of 2014. Non-GAAP net income for the fourth quarter of 2014 excluded $4.2 million of stock-based compensation expense and $0.9 million, net of tax effect of $0.4 million, of amortization expense for all intangible assets associated with past acquisitions. Fourth quarter 2015 results compare to non-GAAP net income of $13.2 million, or $0.36 per diluted share, for the third quarter of 2015. Non-GAAP net income for the third quarter of 2015 excludes $4.0 million of stock-based compensation expense and $1.2 million, net of tax effect of $0.8 million, of amortization expense for all intangible assets associated with past acquisitions.
Non-GAAP net income for the year ended December 31, 2015 was $48.7 million, or $1.33 per diluted share. Non-GAAP net income for the year ended December 31, 2015 excludes $14.9 million of stock-based compensation expense, $4.5 million, net of tax effect of $2.4 million of amortization expense for all intangible assets associated with past acquisitions and $2.0 million net of tax effect of $0.9 million, of acquisition expenses associated with the Aesynt acquisition. Non-GAAP net income for the year ended December 31, 2015 also excludes a $3.4 million gain on business combination of an equity investment in Avantec. Non-GAAP net income for the year ended December 31, 2014 was $46.1 million, or $1.26 per diluted share, excluding $12.8 million of stock-based compensation expense and $2.8 million, net of tax effect of $1.7 million of amortization expense for all intangible assets associated with our business acquisitions.
Total bookings for the year ended December 31, 2015 were $392.3 million and total bookings for the year ended December 31, 2014 were $364.0 million.
"I am pleased with the company's performance and our consistent track record," said Randall Lipps, Omnicell president, chairman and CEO. "For eleven consecutive years we have increased our market share and gained new thought leading customers every quarter. Together with our customers, we are consistently delivering state of the art medication management and workflow efficiency for caregivers and better healthcare for patients. These record-setting results provide great momentum for us in 2016."
2016 Guidance:
The guidance is inclusive of the recently acquired Aesynt business:
For the year 2016, we project product bookings to be between $540 and $560 million, revenue to be between $695 and $715 million. We expect non-GAAP earnings to be between $1.50 and $1.60 per share, and non-GAAP operating margins to be approximately 12.7%. For the year 2016 expected non-GAAP results include approximately $10 million of integration expenses, primarily related to our acquisition of Aesynt, and approximately $6 million of interest expense related to the loan facility used to finance the Aesynt acquisition. We expect our annual effective tax rate to be 38% of GAAP earnings.
For the first quarter of 2016 we expect revenue to be between $165 and $170 million and expected Non-GAAP EPS to be between $0.25 and $0.28 per share.
Reporting Segments
As previously reported, beginning the first quarter of 2015, Omnicell enhanced the management of its business, operating structure and segment reporting structure by excluding certain corporate-level costs from our reporting segments based on how the Chief Operating Decision Maker ("CODM") reviews the business. Corporate-level costs may include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. Omnicell's CODM allocates resources and evaluates the performance of our segments using information about its revenues, gross profit and income from operations, excluding certain costs which are managed separately at the corporate level.
Omnicell Conference Call Information
Omnicell will hold a conference call today, Thursday, February 4, 2016 at 2:30 p.m. PT to discuss fourth 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 27500940. 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 5:30 p.m. PT and will be available until 11:59 p.m. PT on February 18, 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 27500940.
About Omnicell
Since 1992, Omnicell (NASDAQ: 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.
Approximately 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 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, Inc. 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. 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 gross profit, non-GAAP operating expenses, non-GAAP income from operations, 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 recognize equity plan-related compensation expenses, which represent the fair value of all share-based payments to employees, including grants of employee stock options, as required under ASC 718, Compensation - Stock Compensation (ASC 718) as non-GAAP adjustments in each period.
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) 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.
d) Gain on business combination of an equity investment. We excluded from our non-GAAP results the gain on a minority equity investment in a private company, Avantec, which was recognized in relation to the acquisition by Omnicell of the remainder of the company. This non-cash gain is not considered by management to reflect the core cash-generating performance of the business and therefore is 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 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 other 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 Years Ended
------------------ -----------
December 31, September 30, December 31, December 31, December 31,
2015 2015 2014 2015 2014
---- ---- ---- ---- ----
Revenues:
Product $104,193 $100,941 $100,291 $388,397 $360,344
Services and other
revenues 26,123 24,293 21,250 96,162 80,556
------ ------ ------ ------ ------
Total revenues 130,316 125,234 121,541 484,559 440,900
------- ------- ------- ------- -------
Cost of revenues:
Cost of product revenues 55,099 51,700 49,005 198,418 173,419
Cost of services and
other revenues 10,137 9,831 8,757 38,211 33,621
------ ----- ----- ------ ------
Total cost of revenues 65,236 61,531 57,762 236,629 207,040
------ ------ ------ ------- -------
Gross profit 65,080 63,703 63,779 247,930 233,860
Operating expenses:
Research and development 9,219 9,176 8,132 35,160 27,802
Selling, general and
administrative 43,891 40,668 42,173 167,581 156,475
Gain on business
combination - - - (3,443) -
--- --- --- ------ ---
Total operating expenses 53,110 49,844 50,305 199,298 184,277
------ ------ ------ ------- -------
Income from operations 11,970 13,859 13,474 48,632 49,583
Interest and other
income (expense), net (753) (646) (77) (2,388) (1,079)
---- ---- --- ------ ------
Income before provision
for income taxes 11,217 13,213 13,397 46,244 48,504
Provision for income
taxes 3,562 5,177 4,162 15,484 17,986
Net income $7,655 $8,036 $9,235 $30,760 $30,518
====== ====== ====== ======= =======
Net income per share:
Basic $0.22 $0.22 $0.26 $0.86 $0.86
Diluted $0.21 $0.22 $0.25 $0.84 $0.83
Weighted average shares outstanding:
Basic 35,482 35,806 35,697 35,857 35,650
Diluted 36,172 36,613 36,585 36,718 36,622
Omnicell, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
December 31, December 31,
2015 2014
---- ----
ASSETS
Current assets:
Cash and cash equivalents $82,217 $125,888
Accounts receivable, net 107,957 82,763
Inventories 46,594 31,554
Prepaid expenses 19,586 23,518
Deferred tax assets* - 12,446
Other current assets 7,774 7,215
----- -----
Total current assets 264,128 283,384
Property and equipment, net 32,309 36,178
Long-term net investment in sales-type
leases 14,484 10,848
Goodwill 147,906 122,720
Intangible assets, net 89,665 82,667
Long-term deferred tax assets 2,361 1,144
Other long-term assets 27,894 23,273
Total assets $578,747 $560,214
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $22,646 $19,432
Accrued compensation 18,195 19,874
Accrued liabilities 30,133 19,299
Deferred service revenue 27,948 25,167
Deferred gross profit 25,708 28,558
------ ------
Total current liabilities 124,630 112,330
Deferred service revenue, long-term 17,975 20,308
Long-term deferred tax liabilities 21,822 30,454
Other long-term liabilities 11,932 7,024
------ -----
Total liabilities 176,359 170,116
Stockholders' equity:
Total stockholders' equity 402,388 390,098
Total liabilities and stockholders' equity $578,747 $560,214
======== ========
* In Q4 2015, the Company
prospectively adopted ASU No. 2015-
17, which required the
reclassification of deferred tax
assets and liabilities from current
to non-current on its Consolidated
Balance Sheets.
Omnicell, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Years Ended
-----------
2015 2014
---- ----
Operating Activities
Net income $30,760 $30,518
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation
and
amortization 25,639 20,272
Loss on
disposal of
fixed
assets 238 167
Impairment
of equity
investments - 350
Gain on
business
combination (3,443) -
Provision
for
receivable
allowance 354 941
Share-based
compensation
expense 14,921 12,785
Income tax
benefits
from
employee
stock plans 4,535 5,370
Excess tax
benefits
from
employee
stock plans (4,724) (5,834)
Provision
for excess
and
obsolete
inventories 369 542
Deferred
income
taxes (1,092) 1,402
Changes in
operating
assets and
liabilities: - -
Accounts
receivable,
net (18,295) (22,799)
Inventories (10,401) 1,418
Prepaid
expenses 4,049 (4,296)
Other
current
assets 638 53
Net
investment
in sales-
type leases (4,661) 1,048
Other long-
term assets 496 297
Accounts
payable (2,841) 1,611
Accrued
compensation (2,032) 270
Accrued
liabilities 5,456 5,512
Deferred
service
revenue (2,880) 5,086
Deferred
gross
profit (2,641) 8,601
Other long-
term
liabilities (683) 1,849
---- -----
Net cash
provided by
operating
activities 33,762 65,163
------ ------
Investing Activities
Acquisition
of
intangible
assets,
intellectual
property
and patents (415) (327)
Software
development
for
external
use (12,132) (10,353)
Purchases of
property
and
equipment (7,542) (11,922)
Business
acquisition,
net of cash
acquired (25,507) (20,723)
------- -------
Net cash
used in
investing
activities (45,596) (43,325)
------- -------
Financing Activities
Proceeds
from
issuances
under
stock-
based
compensation
plans 17,091 21,795
Employees'
taxes paid
related to
restricted
stock units (3,627) (3,744)
Common stock
repurchases (50,021) (24,091)
Excess tax
benefits
from
employee
stock plans 4,724 5,834
Net cash
used in
financing
activities (31,833) (206)
------- ----
Effect of
exchange
rate
changes on
cash and
cash
equivalents (4) (275)
--- ----
Net
(decrease)
increase in
cash and
cash
equivalents (43,671) 21,357
Cash and
cash
equivalents
at
beginning
of period 125,888 104,531
Cash and
cash
equivalents
at end of
period $82,217 $125,888
======= ========
Omnicell, Inc.
Reconciliation of GAAP to Non-GAAP
(Unaudited, in thousands, except per share data and percentages)
Three Months Ended Years Ended
------------------ -----------
December 31, September 30, December 31, December 31, December 31,
2015 2015 2014 2015 2014
---- ---- ---- ---- ----
Reconciliation of GAAP net income to non-GAAP net income:
GAAP net income $7,655 $8,036 $9,235 $30,760 $30,518
Adjustments:
Share-based
compensation expense:
Cost of revenues 481 581 483 2,111 1,456
Operating expenses 3,173 3,385 3,692 12,810 11,329
----- ----- ----- ------ ------
Total share-based
compensation
expense (a) 3,654 3,966 4,175 14,921 12,785
Amortization of
acquired intangibles:
Cost of revenues 547 570 368 2,016 1,472
Operating expenses 1,354 1,408 865 4,904 3,003
----- ----- --- ----- -----
Gross amortization
of acquired
intangibles: 1,901 1,978 1,233 6,920 4,475
Income tax
effect (b) (745) (775) (383) (2,448) (1,654)
---- ---- ---- ------ ------
Amortization of
acquired
intangibles, net 1,156 1,203 850 4,472 2,821
----- ----- --- ----- -----
Acquisition related
expenses 2,898 - - 2,898 -
Income tax
effect (b) (920) - - (920) -
---- --- --- ---- ---
Acquisition
related expenses,
net 1,978 - - 1,978 -
---
Gain on business
combination - - - (3,443) -
Non-GAAP net income $14,443 $13,205 $14,260 $48,688 $46,124
======= ======= ======= ======= =======
Reconciliation of GAAP gross profit to non-GAAP gross profit:
Revenues $130,316 $125,234 $121,541 $484,559 $440,900
GAAP gross profit 65,080 63,703 63,779 247,930 233,860
GAAP gross margin 49.9% 50.9% 52.5% 51.2% 53.0%
Share-based
compensation
expense 481 581 483 2,111 1,456
Amortization of
acquired
intangibles 547 570 368 2,016 1,472
Non-GAAP gross profit $66,108 $64,854 $64,630 $252,057 $236,788
===
Non-GAAP gross margin 50.7% 51.8% 53.2% 52.0% 53.7%
Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
GAAP operating expenses $53,110 $49,844 $50,305 $199,298 $184,277
GAAP operating
expenses % to total
revenue 40.8% 39.8% 41.4% 41.1% 41.8%
Share-based
compensation expense (3,173) (3,385) (3,692) (12,810) (11,329)
Amortization of
acquired intangibles (1,354) (1,408) (865) (4,904) (3,003)
Acquisition related
expenses (2,898) - - (2,898) -
Gain on business
combination - - - 3,443 -
---
Non-GAAP operating expenses $45,685 $45,051 $45,748 $182,129 $169,945
======= ======= ======= ======== ========
Non-GAAP operating
expenses % to total
revenue 35.1% 36.0% 37.6% 37.6% 38.5%
Three Months Ended Years Ended
------------------
December 31, September 30, December 31, December 31, December 31,
2015 2015 2014 2015 2014
---- ---- ---- ---- ----
Reconciliation of GAAP income from operations to non-GAAP income from operations:
GAAP income from operations $11,970 $13,859 $13,474 $48,632 $49,583
GAAP operating income
% to total revenue 9.2% 11.1% 11.1% 10.0% 11.2%
Share-based
compensation expense 3,654 3,966 4,175 14,921 12,785
Amortization of
acquired intangibles 1,901 1,978 1,233 6,920 4,475
Acquisition related
expenses 2,898 - - 2,898 -
Gain on business
combination - - - (3,443) -
Non-GAAP income from operations $20,423 $19,803 $18,882 $69,928 $66,843
======= ======= ======= ======= =======
Non-GAAP operating
income % to total
revenue 15.7% 15.8% 15.5% 14.4% 15.2%
GAAP shares - diluted 36,172 36,613 36,585 36,718 36,622
GAAP net income per share - diluted $0.21 $0.22 $0.25 $0.84 $0.83
Adjustments:
Share-based
compensation expense 0.11 0.11 0.12 0.41 0.35
Amortization of
acquired intangibles,
net 0.03 0.03 0.02 0.12 0.08
Acquisition related
expenses, net 0.05 - - 0.05 -
Gain on business
combination - - - (0.09) -
Non-GAAP net income per share - diluted $0.40 $0.36 $0.39 $1.33 $1.26
===== ===== ===== ===== =====
Reconciliation of GAAP net income to non-GAAP adjusted EBITDA:
GAAP net income $7,655 $8,036 $9,235 $30,760 $30,518
Add back:
Share-based
compensation expense 3,654 3,966 4,175 14,921 12,785
Interest (income) and
expense, net 89 138 18 410 38
Depreciation and
amortization expense 7,182 6,482 5,566 25,639 20,272
Income tax expense 3,562 5,177 4,162 15,484 17,986
Acquisition related
expenses, net 2,898 - - 2,898 -
Gain on business
combination - - - (3,443) -
---
Non-GAAP adjusted EBITDA (c) $25,040 $23,799 $23,156 $86,669 $81,599
======= ======= ======= ======= =======
(a) This adjustment reflects the
accounting impact of non-cash
stock-based compensation expense
for the periods presented.
(b) Tax effects are calculated using
the effective tax rates for the
respective periods presented.
(c) Defined as earnings before
interest income and expense,
taxes, depreciation and
amortization, and non-cash
expenses, including stock
compensation expense, per ASC
718, as well as excluding certain
non-GAAP adjustments.
Omnicell, Inc.
Segmented Information
(Unaudited, in thousands, except for percentages)
Three Months Ended December 31, 2015 Three Months Ended December 31, 2014
------------------------------------ ------------------------------------
Automation Medication Total Automation Medication Total
and Adherence and Adherence
Analytics Analytics
--------- ---------
Revenues $105,874 $24,442 $130,316 $98,347 $23,194 $121,541
Cost of revenues 48,020 17,216 65,236 41,983 15,779 57,762
------ ------ ------ ------ ------
Gross profit 57,854 7,226 65,080 56,364 7,415 63,779
------ ----- ------ ------ ----- ------
Gross margin % 54.6% 29.6% 49.9% 57.3% 32.0% 52.5%
Operating
expenses 28,889 5,937 34,826 27,363 6,313 33,676
------ ----- ------ ------
Income from
segment
operations $28,965 $1,289 30,254 $29,001 $1,102 30,103
======= ====== ------ ======= ====== ------
Operating margin
% 27.4% 5.3% 23.2% 29.5% 4.8% 24.8%
Corporate costs 18,284 16,629
------ ------
Income from operations $11,970 $13,474
======= =======
Omnicell, Inc.
Segmented Information
(Unaudited, in thousands, except for percentages)
Year Ended December 31, 2015 Year Ended December 31, 2014
---------------------------- ----------------------------
Automation
and Medication Total Automation Medication Total
Analytics Adherence and
Adherence
Analytics
---
Revenues $390,321 $94,238 $484,559 $354,095 $86,805 $440,900
Cost of revenues 171,943 64,686 236,629 151,327 55,713 207,040
-------
Gross profit 218,378 29,552 247,930 202,768 31,092 233,860
------- ------ ------- ------- ------ -------
Gross margin % 55.9% 31.4% 51.2% 57.3% 35.8% 53.0%
Operating
expenses 114,084 24,258 138,342 105,929 20,586 126,515
------- ------ ------- ------- ------
Income from
segment
operations $104,294 $5,294 109,588 $96,839 $10,506 107,345
======== ====== ======= ======= ======= =======
Operating margin
% 26.7% 5.6% 22.6% 27.3% 12.1% 24.3%
Corporate costs 60,956 57,762
------ ------
Income from operations $48,632 $49,583
======= =======
Omnicell, Inc.
Segment Information Non-GAAP Gross Margin and Non-GAAP Operating Margin
(Unaudited, in thousands, except for percentages)
Three Months Ended December 31, 2015
------------------------------------
Automation Medication Total
and Adherence
Analytics
---------
Revenues $105,874 $24,442 $130,316
======== ======= ========
GAAP Gross profit $57,854 54.6% $7,226 29.6% $65,080 49.9%
Plus:
a) Stock-based compensation
expense 411 0.4% 70 0.3% 481 0.4%
b) Amortization expense of
acquired intangible assets and
other acquisition-related
expenses 214 0.2% 333 1.4% 547 0.4%
--- ---
Non-GAAP Gross profit $58,479 55.2% $7,629 31.2% $66,108 50.7%
======= ====== =======
GAAP Operating income $28,965 27.4% $1,289 5.3% $30,254 23.2%
Plus:
a) Stock-based compensation
expense 1,472 1.4% 196 0.8% 1,668 1.3%
b) Amortization expense of
acquired intangible assets and
other acquisition-related
expenses 828 0.8% 1,072 4.4% 1,900 1.5%
Non-GAAP Operating income $31,265 29.5% $2,557 10.5% 33,822 26.0%
======= ====== ------
GAAP Corporate costs 18,284 14.0%
Less: Stock-based compensation expense 1,986 1.5%
Less: Acquisition related expenses 2,898 2.2%
-----
Non-GAAP Corporate costs 13,400 10.3%
------
Non-GAAP Income from operations $20,422 15.7%
=======
Three Months Ended December 31, 2014
------------------------------------
Automation Medication Total
and Adherence
Analytics
---------
Revenues $98,347 $23,194 $121,541
======= ======= ========
GAAP Gross profit $56,364 57.3% $7,415 32.0% $63,779 52.5%
Plus:
a) Stock-based compensation
expense 348 0.4% 135 0.6% 483 0.4%
b) Amortization expense of
acquired intangible assets and
other acquisition-related
expenses 35 0.0% 333 1.4% 368 0.3%
--- ---
Non-GAAP Gross profit $56,747 57.7% $7,883 34.0% $64,630 53.2%
======= ====== =======
GAAP Operating income $29,001 29.5% $1,102 4.8% $30,103 24.8%
Plus:
a) Stock-based compensation
expense 1,679 1.7% 205 0.9% 1,884 1.6%
b) Amortization expense of
acquired intangible assets and
other acquisition-related
expenses 147 0.1% 1,086 4.7% 1,233 1.0%
Non-GAAP Operating income $30,827 31.3% $2,393 10.3% 33,220 27.3%
======= ====== ------
GAAP Corporate costs 16,629 13.7%
Less: Stock-based compensation
expense 2,291 1.9%
-----
Non-GAAP Corporate costs 14,338 11.8%
------
Non-GAAP Income from operations $18,882 15.5%
=======
OMCL-E
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SOURCE Omnicell, Inc.
