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.
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
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
Automation
and
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
|
|
|
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
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
Automation
and
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
|
|
|
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
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
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
assets
|
4,882
|
|
|
3.3%
|
|
332
|
|
|
1.4%
|
|
5,214
|
|
|
3.0%
|
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
assets
|
7,739
|
|
|
5.2%
|
|
1,313
|
|
|
5.4%
|
|
9,052
|
|
|
5.2%
|
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
Analytics
|
|
Medication
Adherence
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
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
assets
|
199
|
|
|
0.2%
|
|
332
|
|
|
1.4%
|
|
531
|
|
|
0.5%
|
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
assets
|
724
|
|
|
0.8%
|
|
1,086
|
|
|
4.5%
|
|
1,810
|
|
|
1.6%
|
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.