MOUNTAIN VIEW, Calif.,
Oct. 29, 2015 /PRNewswire/ -- Omnicell, Inc. (NASDAQ:
OMCL), a leading provider of medication and supply management
solutions to healthcare systems, today announced results for its
third quarter ended September 30, 2015.
GAAP results: Revenue for the third quarter of 2015 was
$125.2 million, up $12.4 million or 11.0% from the second quarter of
2015, and up $12.7 million or 11.3%
from the third quarter of 2014. Revenue for the nine months ended
September 30, 2015 was $354.2
million, up $34.9 million or
10.9% from the nine months ended September 30, 2014.
Third quarter 2015 net income as reported in accordance with
U.S. generally accepted accounting principles (GAAP) was
$8.0 million, or $0.22 per diluted share. This compares to GAAP
net income of $8.8 million, or
$0.24 per diluted share, for the
second quarter of 2015, and GAAP net income of $7.3 million, or $0.20 per diluted share, for the third quarter of
2014.
GAAP net income for the nine months ended September 30,
2015 was $23.1 million, or
$0.63 per diluted share, which
includes a $3.4 million gain on
business combination of an equity investment. GAAP net income was
$21.3 million, or $0.58 per diluted share, for the nine months
ended September 30, 2014.
Non-GAAP results: Non-GAAP net income for the third
quarter of 2015 was $13.2 million, or
$0.36 per diluted share, excluding
$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. This compares to non-GAAP net
income of $11.1 million, or
$0.30 per diluted share, for the
third quarter of 2014. Non-GAAP net income for the third quarter of
2014 excluded $3.2 million of
stock-based compensation expense and $0.6
million, net of tax effect of $0.5
million, of amortization expense for all intangible assets
associated with past acquisitions. Third quarter 2015 results
compare to non-GAAP net income of $10.3
million, or $0.28 per diluted
share, for the second quarter of 2015. Non-GAAP net income for the
second quarter of 2015 excludes $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 $3.4 million gain on the Company's 2012 minority
equity investment in Avantec Healthcare Limited ("Avantec"), which
was recorded as part of Omnicell's acquisition of
the remaining 85% of the issued and outstanding ordinary
shares of Avantec not already held by Omnicell in April 2015.
Non-GAAP net income for the nine months ended September 30,
2015 was $34.2 million, or
$0.93 per diluted share. Non-GAAP net
income for the nine months ended September 30, 2015 excludes
$11.3 million of stock-based
compensation expense and $3.3
million, net of tax effect of $1.7
million of amortization expense for all intangible assets
associated with past acquisitions. Non-GAAP net income for the nine
months ended September 30, 2015 also excludes a $3.4 million gain on business combination of an
equity investment in Avantec. Non-GAAP net income for the nine
months ended September 30, 2014 was $31.9 million, or $0.87 per diluted share, excluding $8.6 million of stock-based compensation expense
and $2.0 million, net of tax effect
of $1.3 million of amortization
expense for all intangible assets associated with our business
acquisitions.
"I am pleased to report record quarter revenues and strong
earnings growth in the third quarter," said Randall Lipps, Omnicell president, chairman and
CEO. "The fundamentals of our business have not changed and we
continue to close a solid mix of competitive wins and our existing
customers continue to expand their implementations. Driven by
our three-leg growth strategy of differentiated products, expansion
into new markets and targeted acquisitions, the company has all the
ingredients for continued success."
Reporting Segments
As reported last quarter, 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, October 29, 2015 at 2:30 p.m. PT to discuss third 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 66699013. 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 November
12, 2015. 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 66699013.
About Omnicell
Since 1992, Omnicell (NASDAQ: OMCL) has been creating new
efficiencies to improve patient care, anywhere it is delivered.
Omnicell is a leading supplier of comprehensive automation and
business analytics software for patient-centric 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 home.
More than 3,000 customers worldwide have utilized Omnicell
Automation and Analytics solutions to increase operational
efficiency, reduce errors, deliver actionable intelligence and
improve patient safety. Omnicell Medication Adherence solutions,
including its MTS Medication Technologies brand, provide innovative
medication adherence packaging solutions 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, 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 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) 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 option grants.
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
|
|
Nine Months
Ended
|
|
September 30,
2015
|
|
June 30,
2015
|
|
September 30,
2014
|
|
September 30,
2015
|
|
September 30,
2014
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Product
|
$
|
100,941
|
|
|
$
|
89,154
|
|
|
$
|
92,229
|
|
|
$
|
284,204
|
|
|
$
|
260,053
|
|
Services and other
revenues
|
24,293
|
|
|
23,634
|
|
|
20,314
|
|
|
70,039
|
|
|
59,306
|
|
Total
revenues
|
125,234
|
|
|
112,788
|
|
|
112,543
|
|
|
354,243
|
|
|
319,359
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
Cost of product
revenues
|
51,700
|
|
|
46,203
|
|
|
44,510
|
|
|
143,319
|
|
|
124,413
|
|
Cost of services and
other revenues
|
9,831
|
|
|
9,123
|
|
|
8,487
|
|
|
28,074
|
|
|
24,865
|
|
Total cost of
revenues
|
61,531
|
|
|
55,326
|
|
|
52,997
|
|
|
171,393
|
|
|
149,278
|
|
Gross
profit
|
63,703
|
|
|
57,462
|
|
|
59,546
|
|
|
182,850
|
|
|
170,081
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
9,176
|
|
|
8,746
|
|
|
7,078
|
|
|
25,941
|
|
|
19,670
|
|
Selling, general and
administrative
|
40,668
|
|
|
39,735
|
|
|
38,871
|
|
|
123,690
|
|
|
114,302
|
|
Gain on business
combination
|
—
|
|
|
(3,443)
|
|
|
—
|
|
|
(3,443)
|
|
|
—
|
|
Total operating
expenses
|
49,844
|
|
|
45,038
|
|
|
45,949
|
|
|
146,188
|
|
|
133,972
|
|
Income from
operations
|
13,859
|
|
|
12,424
|
|
|
13,597
|
|
|
36,662
|
|
|
36,109
|
|
Interest and other
income (expense), net
|
(646)
|
|
|
(472)
|
|
|
(706)
|
|
|
(1,635)
|
|
|
(1,003)
|
|
Income before
provision for income taxes
|
13,213
|
|
|
11,952
|
|
|
12,891
|
|
|
35,027
|
|
|
35,106
|
|
Provision for income
taxes
|
5,177
|
|
|
3,201
|
|
|
5,591
|
|
|
11,922
|
|
|
13,824
|
|
Net
income
|
$
|
8,036
|
|
|
$
|
8,751
|
|
|
$
|
7,300
|
|
|
$
|
23,105
|
|
|
$
|
21,282
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.22
|
|
|
$
|
0.24
|
|
|
$
|
0.20
|
|
|
$
|
0.64
|
|
|
$
|
0.60
|
|
Diluted
|
$
|
0.22
|
|
|
$
|
0.24
|
|
|
$
|
0.20
|
|
|
$
|
0.63
|
|
|
$
|
0.58
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
35,806
|
|
|
36,120
|
|
|
35,994
|
|
|
35,983
|
|
|
35,634
|
|
Diluted
|
36,613
|
|
|
37,030
|
|
|
36,832
|
|
|
36,870
|
|
|
36,617
|
|
Omnicell, Inc.
Condensed
Consolidated Balance Sheets
(Unaudited, in
thousands)
|
|
|
September 30,
2015
|
|
December 31,
2014
|
|
|
|
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
57,757
|
|
|
$
|
125,888
|
|
Accounts receivable,
net
|
115,680
|
|
|
82,763
|
|
Inventories
|
49,460
|
|
|
31,554
|
|
Prepaid
expenses
|
17,698
|
|
|
23,518
|
|
Deferred tax
assets
|
12,489
|
|
|
12,446
|
|
Other current
assets
|
6,802
|
|
|
7,215
|
|
Total current
assets
|
259,886
|
|
|
283,384
|
|
Property and
equipment, net
|
34,026
|
|
|
36,178
|
|
Long-term net
investment in sales-type leases
|
13,557
|
|
|
10,848
|
|
Goodwill
|
148,727
|
|
|
122,720
|
|
Intangible assets,
net
|
92,042
|
|
|
82,667
|
|
Long-term deferred
tax assets
|
1,513
|
|
|
1,144
|
|
Other long-term
assets
|
26,971
|
|
|
23,273
|
|
Total
assets
|
$
|
576,722
|
|
|
$
|
560,214
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
24,691
|
|
|
$
|
19,432
|
|
Accrued
compensation
|
15,224
|
|
|
19,874
|
|
Accrued
liabilities
|
29,382
|
|
|
19,299
|
|
Deferred service
revenue
|
26,168
|
|
|
25,167
|
|
Deferred gross
profit
|
27,179
|
|
|
28,558
|
|
Total current
liabilities
|
122,644
|
|
|
112,330
|
|
Deferred service
revenue, long-term
|
18,436
|
|
|
20,308
|
|
Long-term deferred
tax liabilities
|
32,320
|
|
|
30,454
|
|
Other long-term
liabilities
|
11,782
|
|
|
7,024
|
|
Total
liabilities
|
185,182
|
|
|
170,116
|
|
Stockholders'
equity:
|
|
|
|
Total stockholders'
equity
|
391,540
|
|
|
390,098
|
|
Total liabilities
and stockholders' equity
|
$
|
576,722
|
|
|
$
|
560,214
|
|
Omnicell, Inc.
Condensed
Consolidated Statements of Cash Flows
(Unaudited, in
thousands)
|
|
|
Nine months ended
September 30,
|
|
2015
|
|
2014
|
Operating
Activities
|
|
|
|
Net income
|
$
|
23,105
|
|
|
$
|
21,282
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
18,457
|
|
|
14,705
|
|
Gain on disposal of
fixed assets
|
114
|
|
|
221
|
|
Gain on business
combination
|
(3,443)
|
|
|
—
|
|
Provision for
receivable allowance
|
542
|
|
|
850
|
|
Share-based
compensation expense
|
11,267
|
|
|
8,610
|
|
Income tax benefits
from employee stock plans
|
3,838
|
|
|
4,065
|
|
Excess tax benefits
from employee stock plans
|
(3,942)
|
|
|
(4,456)
|
|
Provision for excess
and obsolete inventories
|
317
|
|
|
450
|
|
Deferred income
taxes
|
(2,235)
|
|
|
1,307
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(26,132)
|
|
|
(35,028)
|
|
Inventories
|
(13,215)
|
|
|
1,301
|
|
Prepaid
expenses
|
5,937
|
|
|
1,015
|
|
Other current
assets
|
1,019
|
|
|
1,412
|
|
Net investment in
sales-type leases
|
(3,220)
|
|
|
677
|
|
Other long-term
assets
|
247
|
|
|
360
|
|
Accounts
payable
|
(127)
|
|
|
5,420
|
|
Accrued
compensation
|
(5,003)
|
|
|
(6,533)
|
|
Accrued
liabilities
|
4,608
|
|
|
(416)
|
|
Deferred service
revenue
|
(4,199)
|
|
|
2,650
|
|
Deferred gross
profit
|
(1,170)
|
|
|
15,585
|
|
Other long-term
liabilities
|
(833)
|
|
|
838
|
|
Net cash provided by
operating activities
|
5,932
|
|
|
34,315
|
|
Investing
Activities
|
|
|
|
Acquisition of
intangible assets, intellectual property and patents
|
(331)
|
|
|
(236)
|
|
Software development
for external use
|
(9,445)
|
|
|
(7,925)
|
|
Purchases of property
and equipment
|
(6,081)
|
|
|
(10,151)
|
|
Business acquisition,
net of cash acquired
|
(25,455)
|
|
|
(19,749)
|
|
Net cash used in
investing activities
|
(41,312)
|
|
|
(38,061)
|
|
Financing
Activities
|
|
|
|
Proceeds from
issuances under stock-based compensation plans
|
15,665
|
|
|
18,157
|
|
Employees' taxes paid
related to restricted stock units
|
(2,285)
|
|
|
(2,023)
|
|
Common stock
repurchases
|
(50,021)
|
|
|
(17,052)
|
|
Excess tax benefits
from employee stock plans
|
3,942
|
|
|
4,456
|
|
Net cash (used)
provided by financing activities
|
(32,699)
|
|
|
3,538
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(52)
|
|
|
(136)
|
|
Net decrease in cash
and cash equivalents
|
(68,131)
|
|
|
(344)
|
|
Cash and cash
equivalents at beginning of period
|
125,888
|
|
|
104,531
|
|
Cash and cash
equivalents at end of period
|
$
|
57,757
|
|
|
$
|
104,187
|
|
Omnicell, Inc.
Reconciliation of
GAAP to Non-GAAP
(Unaudited, in
thousands, except per share data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September 30,
2015
|
|
June 30,
2015
|
|
September 30,
2014
|
|
September 30,
2015
|
|
September 30,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net income to non-GAAP net income:
|
|
|
|
|
|
|
GAAP net
income
|
$
|
8,036
|
|
|
$
|
8,751
|
|
|
$
|
7,300
|
|
|
$
|
23,105
|
|
|
$
|
21,282
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
581
|
|
|
532
|
|
|
441
|
|
|
1,630
|
|
|
973
|
|
|
|
Operating
expenses
|
3,385
|
|
|
3,104
|
|
|
2,720
|
|
|
9,637
|
|
|
7,637
|
|
|
|
Total share-based
compensation expense (a)
|
3,966
|
|
|
3,636
|
|
|
3,161
|
|
|
11,267
|
|
|
8,610
|
|
|
Amortization of
acquired intangibles:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
570
|
|
|
531
|
|
|
368
|
|
|
1,469
|
|
|
1,104
|
|
|
|
Operating
expenses
|
1,408
|
|
|
1,279
|
|
|
778
|
|
|
3,550
|
|
|
2,138
|
|
|
|
Total Amortization of
acquired intangibles:
|
1,978
|
|
|
1,810
|
|
|
1,146
|
|
|
5,019
|
|
|
3,242
|
|
|
Income tax effect of
non-GAAP adjustments (b)
|
(775)
|
|
|
(485)
|
|
|
(497)
|
|
|
(1,703)
|
|
|
(1,271)
|
|
|
|
Total Amortization of
acquired intangibles, net:
|
1,203
|
|
|
1,325
|
|
|
649
|
|
|
3,316
|
|
|
1,971
|
|
|
Gain on business
combination
|
—
|
|
|
(3,443)
|
|
|
—
|
|
|
(3,443)
|
|
|
—
|
|
Non-GAAP net
income
|
$
|
13,205
|
|
|
$
|
10,269
|
|
|
$
|
11,110
|
|
|
$
|
34,245
|
|
|
$
|
31,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP gross profit to non-GAAP gross profit:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
125,234
|
|
|
$
|
112,788
|
|
|
$
|
112,543
|
|
|
$
|
354,243
|
|
|
$
|
319,359
|
|
|
GAAP gross
profit
|
63,703
|
|
|
57,462
|
|
|
59,546
|
|
|
182,850
|
|
|
170,081
|
|
|
GAAP gross
margin
|
50.9%
|
|
|
50.9%
|
|
|
52.9%
|
|
|
51.6%
|
|
|
53.3%
|
|
|
|
Share-based
compensation expense
|
581
|
|
|
532
|
|
|
441
|
|
|
1,630
|
|
|
973
|
|
|
|
Amortization of
acquired intangibles
|
570
|
|
|
531
|
|
|
368
|
|
|
1,469
|
|
|
1,104
|
|
|
Non-GAAP gross
profit
|
$
|
64,854
|
|
|
$
|
58,525
|
|
|
$
|
60,355
|
|
|
$
|
185,949
|
|
|
$
|
172,158
|
|
|
Non-GAAP gross
margin
|
51.8%
|
|
|
51.9%
|
|
|
53.6%
|
|
|
52.5%
|
|
|
53.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP operating expenses to non-GAAP operating
expenses:
|
|
|
|
|
GAAP operating
expenses
|
$
|
49,844
|
|
|
$
|
45,038
|
|
|
$
|
45,949
|
|
|
$
|
146,188
|
|
|
$
|
133,972
|
|
|
GAAP operating
expenses % to total revenue
|
39.8%
|
|
|
39.9%
|
|
|
40.8%
|
|
|
41.3%
|
|
|
42.0%
|
|
|
Share-based
compensation expense
|
(3,385)
|
|
|
(3,104)
|
|
|
(2,720)
|
|
|
(9,637)
|
|
|
(7,637)
|
|
|
Amortization of
acquired intangibles
|
(1,408)
|
|
|
(1,279)
|
|
|
(778)
|
|
|
(3,550)
|
|
|
(2,138)
|
|
|
Gain on business
combination
|
—
|
|
|
3,443
|
|
|
—
|
|
|
3,443
|
|
|
—
|
|
Non-GAAP operating
expenses
|
$
|
45,051
|
|
|
$
|
44,098
|
|
|
$
|
42,451
|
|
|
$
|
136,444
|
|
|
$
|
124,197
|
|
|
Non-GAAP operating
expenses % to total revenue
|
36.0%
|
|
|
39.1%
|
|
|
37.7%
|
|
|
38.5%
|
|
|
38.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP income from operations to non-GAAP income from
operations:
|
|
|
|
|
GAAP income from
operations
|
$
|
13,859
|
|
|
$
|
12,424
|
|
|
$
|
13,597
|
|
|
$
|
36,662
|
|
|
$
|
36,109
|
|
|
GAAP operating income
% to total revenue
|
11.1%
|
|
|
11.0%
|
|
|
12.1%
|
|
|
10.3%
|
|
|
11.3%
|
|
|
Share-based
compensation expense
|
3,966
|
|
|
3,636
|
|
|
3,161
|
|
|
11,267
|
|
|
8,610
|
|
|
Amortization of
acquired intangibles
|
1,978
|
|
|
1,810
|
|
|
1,146
|
|
|
5,019
|
|
|
3,242
|
|
|
Gain on business
combination
|
—
|
|
|
(3,443)
|
|
|
—
|
|
|
(3,443)
|
|
|
—
|
|
Non-GAAP income from
operations
|
$
|
19,803
|
|
|
$
|
14,427
|
|
|
$
|
17,904
|
|
|
$
|
49,505
|
|
|
$
|
47,961
|
|
|
Non-GAAP operating
income % to total revenue
|
15.8%
|
|
|
12.8%
|
|
|
15.9%
|
|
|
14.0%
|
|
|
15.0%
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September 30,
2015
|
|
June 30,
2015
|
|
September 30,
2014
|
|
September 30,
2015
|
|
September 30,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP shares -
diluted
|
36,613
|
|
|
37,030
|
|
|
36,832
|
|
|
36,870
|
|
|
36,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
per share - diluted
|
$
|
0.22
|
|
|
$
|
0.24
|
|
|
$
|
0.20
|
|
|
$
|
0.63
|
|
|
$
|
0.58
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
0.11
|
|
|
0.10
|
|
|
0.08
|
|
|
0.31
|
|
|
0.24
|
|
|
Amortization of
acquired intangibles
|
0.03
|
|
|
0.04
|
|
|
0.02
|
|
|
0.09
|
|
|
0.05
|
|
|
Gain on business
combination
|
—
|
|
|
(0.10)
|
|
|
—
|
|
|
(0.10)
|
|
|
—
|
|
Non-GAAP net
income per share - diluted
|
$
|
0.36
|
|
|
$
|
0.28
|
|
|
$
|
0.30
|
|
|
$
|
0.93
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP EBITDA to non-GAAP EBITDA:
|
|
|
|
|
|
|
GAAP net
income
|
$
|
8,036
|
|
|
$
|
8,751
|
|
|
$
|
7,300
|
|
|
$
|
23,105
|
|
|
$
|
21,282
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
3,966
|
|
|
3,636
|
|
|
3,161
|
|
|
11,267
|
|
|
8,610
|
|
|
Interest (income) and
expense, net
|
138
|
|
|
84
|
|
|
55
|
|
|
321
|
|
|
20
|
|
|
Depreciation and
amortization expense
|
6,482
|
|
|
6,264
|
|
|
5,314
|
|
|
18,457
|
|
|
14,705
|
|
|
Income tax
expense
|
5,177
|
|
|
3,201
|
|
|
5,591
|
|
|
11,922
|
|
|
13,824
|
|
|
Gain on business
combination
|
—
|
|
|
(3,443)
|
|
|
—
|
|
|
(3,443)
|
|
|
—
|
|
Non-GAAP adjusted
EBITDA (c)
|
$
|
23,799
|
|
|
$
|
18,493
|
|
|
$
|
21,421
|
|
|
$
|
61,629
|
|
|
$
|
58,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________________________
|
|
|
(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
September 30, 2015
|
|
Three Months Ended
September 30, 2014
|
|
Automation and
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
Automation
and
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
|
|
|
Revenues
|
$
|
102,967
|
|
|
$
|
22,267
|
|
|
$
|
125,234
|
|
|
$
|
89,547
|
|
|
$
|
22,996
|
|
|
$
|
112,543
|
|
Cost of
revenues
|
45,668
|
|
|
15,863
|
|
|
61,531
|
|
|
38,412
|
|
|
14,585
|
|
|
52,997
|
|
Gross
profit
|
57,299
|
|
|
6,404
|
|
|
63,703
|
|
|
51,135
|
|
|
8,411
|
|
|
59,546
|
|
Gross margin
%
|
55.6%
|
|
|
28.8%
|
|
|
50.9%
|
|
|
57.1%
|
|
|
36.6%
|
|
|
52.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
30,628
|
|
|
6,070
|
|
|
36,698
|
|
|
27,420
|
|
|
4,822
|
|
|
32,242
|
|
Income from segment
operations
|
$
|
26,671
|
|
|
$
|
334
|
|
|
27,005
|
|
|
$
|
23,715
|
|
|
$
|
3,589
|
|
|
27,304
|
|
Operating margin
%
|
25.9%
|
|
|
1.5%
|
|
|
21.6%
|
|
|
26.5%
|
|
|
15.6%
|
|
|
24.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
costs
|
|
|
|
|
13,146
|
|
|
|
|
|
|
13,707
|
|
Income from
operations
|
|
|
|
|
$
|
13,859
|
|
|
|
|
|
|
$
|
13,597
|
|
Omnicell, Inc.
Segmented
Information
(Unaudited, in
thousands, except for percentages)
|
|
|
Nine Months Ended
September 30, 2015
|
|
Nine Months Ended
September 30, 2014
|
|
Automation and
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
Automation
and
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
|
|
|
Revenues
|
$
|
284,447
|
|
|
$
|
69,796
|
|
|
$
|
354,243
|
|
|
$
|
255,748
|
|
|
$
|
63,611
|
|
|
$
|
319,359
|
|
Cost of
revenues
|
123,923
|
|
|
47,470
|
|
|
171,393
|
|
|
109,344
|
|
|
39,934
|
|
|
149,278
|
|
Gross
profit
|
160,524
|
|
|
22,326
|
|
|
182,850
|
|
|
146,404
|
|
|
23,677
|
|
|
170,081
|
|
Gross margin
%
|
56.4%
|
|
|
32.0%
|
|
|
51.6%
|
|
|
57.2%
|
|
|
37.2%
|
|
|
53.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
85,195
|
|
|
18,321
|
|
|
103,516
|
|
|
78,566
|
|
|
14,273
|
|
|
92,839
|
|
Income from segment
operations
|
$
|
75,329
|
|
|
$
|
4,005
|
|
|
79,334
|
|
|
$
|
67,838
|
|
|
$
|
9,404
|
|
|
77,242
|
|
Operating margin
%
|
26.5%
|
|
|
5.7%
|
|
|
22.4%
|
|
|
26.5%
|
|
|
14.8%
|
|
|
24.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
costs
|
|
|
|
|
42,672
|
|
|
|
|
|
|
41,133
|
|
Income from
operations
|
|
|
|
|
$
|
36,662
|
|
|
|
|
|
|
$
|
36,109
|
|
Omnicell, Inc.
Segment
Information - Non-GAAP Gross Margin and Non-GAAP Operating
Margin
(Unaudited, in
thousands, except for percentages)
|
|
|
Three Months Ended
September 30, 2015
|
|
Automation and
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
102,967
|
|
|
|
|
$
|
22,267
|
|
|
|
|
$
|
125,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross
profit
|
$
|
57,299
|
|
|
55.6%
|
|
$
|
6,404
|
|
|
28.8%
|
|
$
|
63,703
|
|
|
50.9%
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
a) Stock-based
compensation expense
|
403
|
|
|
0.4%
|
|
$
|
178
|
|
|
0.8%
|
|
581
|
|
|
0.5%
|
b) Amortization
expense of acquired intangible
assets and other acquisition-related
expenses
|
238
|
|
|
0.2%
|
|
$
|
332
|
|
|
1.5%
|
|
570
|
|
|
0.5%
|
Non-GAAP Gross
profit
|
$
|
57,940
|
|
|
56.3%
|
|
$
|
6,914
|
|
|
31.1%
|
|
$
|
64,854
|
|
|
51.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
income
|
$
|
26,671
|
|
|
25.9%
|
|
$
|
334
|
|
|
1.5%
|
|
$
|
27,005
|
|
|
21.6%
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
a) Stock-based
compensation expense
|
1,572
|
|
|
1.5%
|
|
303
|
|
|
1.4%
|
|
1,875
|
|
|
1.5%
|
b) Amortization
expense of acquired intangible
assets and other acquisition-related
expenses
|
902
|
|
|
0.9%
|
|
1,076
|
|
|
4.8%
|
|
1,978
|
|
|
1.6%
|
Non-GAAP Operating
income
|
$
|
29,145
|
|
|
28.3%
|
|
$
|
1,713
|
|
|
7.7%
|
|
$
|
30,858
|
|
|
24.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Corporate
costs
|
|
|
|
|
|
|
|
|
$
|
13,146
|
|
|
10.5%
|
Less: Stock-based
compensation expense
|
|
|
|
|
|
|
|
|
2,091
|
|
|
1.7%
|
Non-GAAP Corporate
costs
|
|
|
|
|
|
|
|
|
$
|
11,055
|
|
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income
from operations
|
|
|
|
|
|
|
|
|
$
|
19,803
|
|
|
15.8%
|
|
|
|
Three Months Ended
September 30, 2014
|
|
Automation and
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
89,547
|
|
|
|
|
$
|
22,996
|
|
|
|
|
$
|
112,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross
profit
|
$
|
51,135
|
|
|
57.1%
|
|
$
|
8,411
|
|
|
36.6%
|
|
$
|
59,546
|
|
|
52.9%
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
a) Stock-based
compensation expense
|
255
|
|
|
0.3%
|
|
$
|
59
|
|
|
0.3%
|
|
314
|
|
|
0.3%
|
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
|
$
|
51,425
|
|
|
57.4%
|
|
$
|
8,803
|
|
|
38.3%
|
|
$
|
60,228
|
|
|
53.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
income
|
$
|
23,715
|
|
|
26.5%
|
|
$
|
3,589
|
|
|
15.6%
|
|
$
|
27,304
|
|
|
24.3%
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
a) Stock-based
compensation expense
|
1,306
|
|
|
1.5%
|
|
158
|
|
|
0.7%
|
|
1,464
|
|
|
1.3%
|
b) Amortization
expense of acquired intangible
assets and other acquisition-related
expenses
|
147
|
|
|
0.2%
|
|
999
|
|
|
4.3%
|
|
1,146
|
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
income
|
$
|
25,168
|
|
|
28.1%
|
|
$
|
4,746
|
|
|
20.6%
|
|
$
|
29,914
|
|
|
26.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Corporate
costs
|
|
|
|
|
|
|
|
|
$
|
13,707
|
|
|
12.2%
|
Less: Stock-based
compensation expense
|
|
|
|
|
|
|
|
|
1,697
|
|
|
1.5%
|
Non-GAAP Corporate
costs
|
|
|
|
|
|
|
|
|
$
|
12,010
|
|
|
10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income
from operations
|
|
|
|
|
|
|
|
|
$
|
17,904
|
|
|
15.9%
|
OMCL-E
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SOURCE Omnicell, Inc.