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Omnicell Announces First Quarter 2018 Results
GAAP revenue of $183 million, up 23% year-over-yearGAAP net income per diluted share of $0.07, up $0.35 year-over-yearNon-GAAP revenue of $183 million, up 23% year-over-yearNon-GAAP net income per dil...
(April 26, 2018)

MOUNTAIN VIEW, Calif., April 26, 2018 /PRNewswire/ -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its first quarter ended March 31, 2018. 

Omnicell, Inc. logo. (PRNewsFoto/Omnicell, Inc.)

GAAP results: GAAP revenue for the first quarter of 2018 was $182.6 million, up $34.1 million, or 23% from the first quarter of 2017.



First quarter 2018 GAAP net income as reported was $2.7 million, or $0.07 per diluted share. This compares to GAAP net loss of $10.3 million, or $0.28 per diluted share, for the first quarter of 2017.

Non-GAAP results: Non-GAAP revenue for the first quarter of 2018 was $182.6 million, up $33.8 million, or 23% from the first quarter of 2017.

Non-GAAP net income for the first quarter of 2018 was $11.5 million, or $0.29 per diluted share. This compares to non-GAAP net income of $2.5 million, or $0.07 per diluted share, for the first quarter of 2017.

Non-GAAP net income for each period excludes, when applicable, the effect of stock-based compensation expense, amortization expense of acquired intangible assets, acquisition-related expenses, fair value adjustments related to business acquisitions, restructuring and severance-related expenses, tax reform and restructuring benefits, and amortization of debt issuance cost.

Effective January 1, 2018, the Company adopted the new revenue recognition accounting standard, ASC 606, "Revenue from Contracts with Customers", utilizing the full retrospective transition method. All 2017 financial results have been adjusted to reflect the change.

"We are pleased to report this very strong start of 2018, which demonstrates that the market continues to see value in our industry-leading medication management platform," said Randall Lipps, chairman, president, chief executive officer, and founder of Omnicell. "As the complexities of healthcare evolve, we believe we are uniquely positioned to help lead the digital healthcare transformation with solutions that meet customer needs and grow market share for our business."

2018 Guidance:

For the second quarter of 2018, the Company expects non-GAAP revenue to be between $185 million and $190 million. The Company expects second quarter 2018 non-GAAP earnings to be between $0.36 and $0.42 per share.

For the year 2018, the Company expects product bookings to be between $625 million and $660 million. The Company expects non-GAAP revenue to be between $780 million and $800 million, and non-GAAP earnings to be between $1.85 and $2.05 per share.

The table below summarizes 2018 guidance outlined above.


Q2'18

Total Year 2018

Product Bookings

Not provided

$625 million - $660 million

Non-GAAP Revenue

$185 million - $190 million

$780 million - $800 million

Non-GAAP EPS

$0.36 - $0.42

$1.85 - $2.05

Omnicell Conference Call Information

Omnicell will hold a conference call today, Thursday, April 26, 2018 at 1:30 p.m. PT to discuss first quarter financial results. The conference call can be monitored by dialing 1-800-696-5518 within the U.S. or 1-706-758-4883 for all other locations. The Conference ID # is 9755479. Internet users can access the conference call at http://ir.omnicell.com/events.cfm. A replay of the call will be available today at approximately 4:30 p.m. PT and will be available until 11:59 p.m. PT on June 7, 2018. The replay access numbers are 1-855-859-2056 within the U.S. and 1-404-537-3406 for all other locations, Conference ID # is 9755479.

About Omnicell

Since 1992, Omnicell (NASDAQ: OMCL) has been inspired to create safer and more efficient ways to manage medications and supplies across all care settings. As a leader in medication and supply dispensing automation, central pharmacy automation, IV robotics, analytics software, and medication adherence and packaging systems, Omnicell is focused on improving care across the entire healthcare continuum - from the acute care hospital setting, to post-acute skilled nursing and long-term care facilities, to the patient's home.

Over 4,500 facilities worldwide use Omnicell® automation and analytics solutions to increase operational efficiency, reduce medication errors, deliver actionable intelligence and improve patient safety.

Omnicell's innovative medication adherence solutions, used by over 32,000 institutional and retail pharmacies in North America and the United Kingdom, are designed to improve patient adherence to prescriptions, helping to reduce costly hospital readmissions.

Recent Omnicell acquisitions add distinct capabilities, particularly in central pharmacy, IV robotics, and pharmacy software, creating the broadest medication management product portfolio in the industry.

For more information about Omnicell, Inc. please visit www.omnicell.com.

Omnicell and the Omnicell logo are registered trademarks of Omnicell, Inc. in the United States and other countries.

Forward-Looking Statements

To the extent any statements contained in this release deal with information that is not historical, these statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. As such, they are subject to the occurrence of many events outside Omnicell's control and are subject to various risk factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such statements include, but are not limited to, Omnicell's pipeline, new products and solutions yet to be generally available, new sales opportunities, and projected bookings, revenue, profit and market share growth. Risks that contribute to the uncertain nature of the forward-looking statements include (i) our ability to take advantage of the growth opportunities in medication management across the spectrum of healthcare settings from the hospital, long-term care, to home care, (ii) our ability to develop and commercialize new products, including the XR2 Automated Central Pharmacy System and the IVX Workflow semi-automated workflow solution, and lead the digital healthcare transformation, (iii) unfavorable general economic and market conditions, (iv) risks to growth and acceptance of our products and services, including competitive conversions, (v) growth of the clinical automation and workflow automation market generally, (vi) potential of increasing competition, (vii) potential regulatory changes, (viii) our ability to improve sales productivity to grow product bookings and (ix) our ability to acquire and successfully integrate companies. These and other risks and uncertainties are described more fully in Omnicell's most recent filings with the Securities and Exchange Commission (SEC). Prospective investors are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements contained in this press release speak only as of the date on which they were made. Omnicell undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Use of Non-GAAP Financial Information

This press release contains financial measures that are not calculated in accordance with GAAP. Our management evaluates and makes operating decisions using various performance measures. In addition to Omnicell's GAAP results, we also consider non-GAAP revenue, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income, and non-GAAP net income per diluted share. Additionally, we calculate Adjusted EBITDA (another non-GAAP measure) by means of adjustments to GAAP Net Income. These non-GAAP results should not be considered as an alternative to gross profit, operating expenses, net income, net income per diluted share, or any other performance measure derived in accordance with GAAP. We present these non-GAAP results because we consider them to be important supplemental measures of Omnicell's performance.

Our non-GAAP revenue, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income and non-GAAP net income per diluted share are exclusive of certain items to facilitate management's review of the comparability of Omnicell's core operating results on a period to period basis because such items are not related to Omnicell's ongoing core operating results as viewed by management. We define our "core operating results" as those revenues recorded in a particular period and the expenses incurred within that period that directly drive operating income in that period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operating performance, the measures give us a better understanding of how we should invest in research and development, fund infrastructure growth and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results, management specifically adjusted for the following excluded items:

a) Share-based compensation expense. We excluded from our non-GAAP results the expense related to equity-based compensation plans as they represent expenses that do not require cash settlement from Omnicell.

b) Amortization of acquired intangible assets. We excluded from our non-GAAP results the intangible assets amortization expense resulting from our past acquisitions. These non-cash charges are not considered by management to reflect the core cash-generating performance of the business and therefore are excluded from our non-GAAP results.

c) Amortization of debt issuance cost. Debt issuance cost represents costs associated with the issuance of Term Loan and Revolving Line of Credit facilities. The cost includes underwriting fees, original issue discount, ticking fee, and legal fees. This non-cash expense is not considered by management to reflect the core cash-generating performance of the business and therefore is excluded from our non-GAAP results.

d) Acquisition accounting impact related to deferred revenue. In connection with recent acquisitions, business combination rules require us to account for the fair values of arrangements for which acceptance has not been obtained, and post installation support has not been provided in our purchase accounting. The non-GAAP adjustment to our revenues is intended to include the full amounts of such revenues. We believe the adjustment to these revenues is useful as a measure of the ongoing performance of our business.

e) Inventory fair value adjustments. In connection with the acquisition of Aesynt, business combination rules require us to account for the fair values of inventory acquired in our purchase accounting. The non-GAAP adjustment to the cost of revenues is intended to include the impact of such adjustment. We believe the adjustment is useful as a measure of the ongoing performance of our business.

f) Acquisition-related expenses. We excluded from the non-GAAP results the expenses which are related to recent acquisitions. These expenses are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these acquisition-related expenses provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance and the financial results of less acquisitive peer companies.

g) Severance and other related expenses. We excluded from our non-GAAP results the expenses which are related to restructuring events. These expenses are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these expenses provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance and the financial results of peer companies.

h) Tax reform impact. We excluded from our non-GAAP results the net one-time benefits related to the Tax Cuts and Jobs Act of 2017 based on the estimated impact of the revaluation of deferred tax assets and liabilities. These net benefits are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these net benefits provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance and the financial results of peer companies.

i) Tax impact from restructuring activity. We excluded from our non-GAAP results the tax impacts related to restructuring activity. These impacts are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these impacts provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance and the financial results of peer companies.

Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Omnicell's control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational, or non-cash expenses involving stock compensation plans or other items.

We believe that the presentation of these non-GAAP financial measures is warranted for several reasons:

1) Such non-GAAP financial measures provide an additional analytical tool for understanding Omnicell's financial performance by excluding the impact of items which may obscure trends in the core operating results of the business;

2) Since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency and enhances investors' ability to compare our performance across financial reporting periods;

3) These non-GAAP financial measures are employed by Omnicell's management in its own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting; and

4) These non-GAAP financial measures facilitate comparisons to the operating results of other companies in our industry, which use similar financial measures to supplement their GAAP results, thus enhancing the perspective of investors who wish to utilize such comparisons in their analysis of our performance.

Set forth below are additional reasons why share-based compensation expense is excluded from our non-GAAP financial measures:

i) While share-based compensation calculated in accordance with ASC 718 constitutes an ongoing and recurring expense of Omnicell, it is not an expense that requires cash settlement by Omnicell. We therefore exclude these charges for purposes of evaluating core operating results. Thus, our non-GAAP measurements are presented exclusive of stock-based compensation expense to assist management and investors in evaluating our core operating results.

ii) We present ASC 718 share-based payment compensation expense in our reconciliation of non-GAAP financial measures on a pre-tax basis because the exact tax differences related to the timing and deductibility of share-based compensation, under ASC 718 are dependent upon the trading price of Omnicell's common stock and the timing and exercise by employees of their stock options. As a result of these timing and market uncertainties the tax effect related to share-based compensation expense would be inconsistent in amount and frequency and is therefore excluded from our non-GAAP results.

Our Adjusted EBITDA calculation is defined as earnings before interest income and expense, taxes, depreciation and amortization, and non-cash expenses, including ASC 718 stock compensation expense, as well as certain non-GAAP adjustments.

As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for Omnicell's GAAP results. In the future, we expect to incur expenses similar to certain of the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:

  • Omnicell's stock option and stock purchase plans are important components of incentive compensation arrangements and will be reflected as expenses in Omnicell's GAAP results for the foreseeable future under ASC 718.
  • Other companies, including companies in Omnicell's industry, may calculate non-GAAP financial measures differently than Omnicell, limiting their usefulness as a comparative measure.

Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between Omnicell's non-GAAP and GAAP financial results is set forth in the financial tables at the end of this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results that are contained in this press release and in Omnicell's SEC filings.

With respect to the Company's expectations under "2018 Guidance" above, and regarding certain projections discussed on today's teleconference, reconciliation of non-GAAP earnings ranges per share guidance for 2018, to the closest corresponding GAAP measures is not available without unreasonable efforts as we are unable to predict with reasonable certainty the matters we would allocate to "certain items," including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, complex, depend on various factors, have low visibility and could have a material impact on GAAP EPS in future periods.

 

Omnicell, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)



Three Months Ended


March 31,
2018


December 31, 2017


March 31, 2017




As Adjusted*


As Reported


Change


As Adjusted*


As Reported


Change

Revenues:














Product

$

130,104



$

144,109



$

144,120



$

(11)



$

98,702



$

98,930



$

(228)


Services and other revenues

52,515



52,262



53,824



(1,562)



49,851



51,624



(1,773)


   Total revenues

182,619



196,371



197,944



(1,573)



148,553



150,554



(2,001)


Cost of revenues:














Cost of product revenues

75,417



79,791



79,791





63,588



63,588




Cost of services and other revenues

24,747



23,085



23,085





22,774



22,774




   Total cost of revenues

100,164



102,876



102,876





86,362



86,362




Gross profit

82,455



93,495



95,068



(1,573)



62,191



64,192



(2,001)


Operating expenses:














Research and development

16,537



15,894



15,894





16,803



16,803




Selling, general and administrative

65,285



61,401



63,494



(2,093)



61,940



64,625



(2,685)


   Total operating expenses

81,822



77,295



79,388



(2,093)



78,743



81,428



(2,685)


Income (loss) from operations

633



16,200



15,680



520



(16,552)



(17,236)



684


Interest and other income (expense), net

(2,729)



(1,641)



(1,641)





(2,456)



(2,456)




Income (loss) before provision for income taxes

(2,096)



14,559



14,039



520



(19,008)



(19,692)



684


Provision for (benefit from) income taxes

(4,816)



(16,665)



(10,252)



(6,413)



(8,673)



(8,938)



265


Net income (loss)

$

2,720



$

31,224



$

24,291



$

6,933



$

(10,335)



$

(10,754)



$

419


Net income (loss) per share:














Basic

$

0.07



$

0.82



$

0.64



$

0.18



$

(0.28)



$

(0.29)



$

0.01


Diluted

$

0.07



$

0.79



$

0.62



$

0.17



$

(0.28)



$

(0.29)



$

0.01


Weighted average shares outstanding:














Basic

38,635



38,127



38,127





36,840



36,840




Diluted

39,691



39,482



39,482





36,840



36,840





* As adjusted for full retrospective adoption of Accounting Standard Codification ("ASC") 606, "Revenue from Contracts with Customers".

 

Omnicell, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)



March 31,
2018


December 31, 2017




As Adjusted*


As Reported


Change

ASSETS










Current assets:








Cash and cash equivalents

$

43,773



$

32,424



$

32,424



$


Accounts receivable and unbilled, net

190,678



190,046



189,227



819


Inventories

101,868



96,137



96,137




Prepaid expenses

21,161



20,392



36,060



(15,668)


Other current assets

14,751



13,273



13,273




Total current assets

372,231



352,272



367,121



(14,849)


Property and equipment, net

48,290



42,595



42,595




Long-term investment in sales-type leases, net

16,444



15,435



15,435




Goodwill

338,948



337,751



337,751




Intangible assets, net

162,458



168,107



168,107




Long-term deferred tax assets

9,456



9,454



9,454




Prepaid commissions

39,636



41,432





41,432


Other long-term assets

53,492



49,316



39,841



9,475


Total assets

$

1,040,955



$

1,016,362



$

980,304



$

36,058










LIABILITIES AND STOCKHOLDERS' EQUITY












Current liabilities:








Accounts payable

$

37,859



$

48,290



$

48,290



$


Accrued compensation

29,632



27,241



27,241




Accrued liabilities

40,519



35,693



35,693




Long-term debt, current portion, net

17,708



15,208



15,208




Deferred revenue, net

95,709



78,774



86,104



(7,330)


Total current liabilities

221,427



205,206



212,536



(7,330)


Long-term, deferred revenue

8,806



10,623



17,244



(6,621)


Long-term deferred tax liabilities

36,320



41,446



28,579



12,867


Other long-term liabilities

9,410



9,829



9,829




Long-term debt, net

190,490



194,917



194,917




Total liabilities

466,453



462,021



463,105



(1,084)


Total stockholders' equity

574,502



554,341



517,199



37,142


Total liabilities and stockholders' equity

$

1,040,955



$

1,016,362



$

980,304



$

36,058



* As adjusted for full retrospective adoption of Accounting Standard Codification ("ASC") 606, "Revenue from Contracts with Customers".

 

Omnicell, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)



Three months ended March 31,


2018


2017*

Operating Activities




Net income (loss)

$

2,720



$

(10,335)


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

12,310



12,448


Share-based compensation expense

6,528



5,511


Income tax benefits from employee stock plans



11


Deferred income taxes

(5,128)



(8,826)


Amortization of debt financing fees

573



397


Changes in operating assets and liabilities:




   Accounts receivable

(632)



21,642


   Inventories

(6,881)



(6,933)


   Prepaid expenses

(769)



79


   Other current assets

(997)



374


   Investment in sales-type leases

(1,491)



1,120


   Prepaid commissions

1,796



208


   Other long-term assets

(1,673)



(9,435)


   Accounts payable

(9,416)



11,104


   Accrued compensation

2,391



1,955


   Accrued liabilities

4,276



(115)


   Deferred revenue

15,118



8,471


   Other long-term liabilities

131



506


   Net cash provided by operating activities

18,856



28,182


Investing Activities




Purchases of intangible assets, intellectual property and patents



(160)


Software development for external use

(5,272)



(4,225)


Purchases of property and equipment

(9,268)



(2,452)


   Net cash used in investing activities

(14,540)



(6,837)


Financing Activities




Repayment of debt and revolving credit facility

(2,500)



(40,000)


Proceeds from issuances under stock-based compensation plans

9,541



10,916


Employees' taxes paid related to restricted stock units

(1,300)



(1,052)


   Net cash provided by (used in) financing activities

5,741



(30,136)


Effect of exchange rate changes on cash and cash equivalents

1,292



651


Net increase (decrease) in cash and cash equivalents

11,349



(8,140)


Cash and cash equivalents at beginning of period

32,424



54,488


Cash and cash equivalents at end of period

$

43,773



$

46,348



* As adjusted for full retrospective adoption of Accounting Standard Codification ("ASC") 606, "Revenue from Contracts with Customers".

 

Omnicell, Inc.

Reconciliation of GAAP to Non-GAAP

(Unaudited, in thousands, except per share data and percentage)








Three Months Ended







March 31,
2018


December 31,
2017*


March 31,
2017*












Reconciliation of GAAP revenue to non-GAAP revenue:



GAAP revenue


$

182,619



$

196,371



$

148,553



Acquisition accounting impact related to deferred revenue



313



313


Non-GAAP revenue

$

182,619



$

196,684



$

148,866













Reconciliation of GAAP gross profit to non-GAAP gross profit:



GAAP gross profit

$

82,455



$

93,495



$

62,191


GAAP gross margin

45.2%



47.6%



41.9%



Share-based compensation expense

1,019



834



982



Amortization of acquired intangibles

2,791



2,818



2,837



Acquisition accounting impact related to deferred revenue



313



313



Severance and other expenses



234



1,697


Non-GAAP gross profit

$

86,265



$

97,694



$

68,020


Non-GAAP gross margin

47.2%



49.7%



45.7%













Reconciliation of GAAP operating expenses to non-GAAP operating expenses:

GAAP operating expenses

$

81,822



$

77,295



$

78,743


GAAP operating expenses % to total revenue


44.8%



39.4%



53.0%



Share-based compensation expense

(5,509)



(4,708)



(4,529)



Amortization of acquired intangibles

(3,238)



(3,348)



(3,653)



Acquisitions related expenses





(126)



Severance and other expenses

(1,512)



(233)



(2,332)


Non-GAAP operating expenses

$

71,563



$

69,006



$

68,103


Non-GAAP operating expenses % to total revenue

39.2%



35.1%



45.7%



* As adjusted for full retrospective adoption of Accounting Standard Codification ("ASC") 606, "Revenue from Contracts with Customers".









Three Months Ended







March 31,
2018


December 31,
2017*


March 31,
2017*

Reconciliation of GAAP income (loss) from operations to non-GAAP income (loss) from operations:

GAAP income (loss) from operations

$

633



$

16,200



$

(16,552)


GAAP operating income (loss) % to total revenue


0.3%



8.2%



(11.1)%



Share-based compensation expense

6,528



5,542



5,511



Amortization of acquired intangibles

6,029



6,166



6,490



Acquisition accounting impact related to deferred revenue



313



313



Acquisitions related expenses





126



Severance and other expenses

1,512



467



4,029


Non-GAAP income (loss) from operations

$

14,702



$

28,688



$

(83)


Non-GAAP operating income (loss) % to total Non-GAAP revenue

8.1%



14.6%



(0.1)%













Reconciliation of GAAP net income (loss) to non-GAAP net income:



GAAP net income (loss)

$

2,720



$

31,224



$

(10,335)



Tax reform benefit impact



(20,005)





Tax benefit for restructuring activity

(4,205)







Share-based compensation expense

6,528



5,542



5,511



Amortization of acquired intangibles

6,029



6,166



6,490



Acquisition accounting impact related to deferred revenue



313



313



Acquisitions related expenses(c)

397



397



523



Severance and other expenses

1,688



467



4,029



Tax effect of the adjustments above(a)

(1,703)



(2,570)



(4,019)


Non-GAAP net income

$

11,454



$

21,534



$

2,512













Reconciliation of GAAP net income (loss) per share - diluted to non-GAAP net income per share - diluted:

Shares - diluted GAAP

39,691



39,482



36,840













Shares - diluted Non-GAAP

39,691



39,482



37,782













GAAP net income (loss) per share - diluted

$

0.07



$

0.79



$

(0.28)



Tax reform benefit impact



(0.50)





Tax benefit for restructuring activity

(0.10)







Share-based compensation expense

0.16



0.14



0.15



Amortization of acquired intangibles

0.15



0.16



0.17



Acquisition accounting impact related to deferred revenue



0.01



0.01



Acquisition related expenses

0.01



0.01



0.01



Severance and other expenses

0.04



0.01



0.11



Tax effect of the adjustments above(a)

(0.04)



(0.07)



(0.10)


Non-GAAP net income per share - diluted

$

0.29



$

0.55



$

0.07













Reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA(b):



GAAP net income (loss)

$

2,720



$

31,224



$

(10,335)



Share-based compensation expense

6,528



5,542



5,511



Interest (income) and expense, net

1,772



1,202



1,432



Depreciation and amortization expense

12,310



12,969



12,448



Acquisition accounting impact related to deferred revenue



313



313



Acquisitions related expenses

397



397



523



Severance expense

1,688



213



3,765



Income tax expense

(4,816)



(16,665)



(8,673)


Non-GAAP Adjusted EBITDA

$

20,599



$

35,195



$

4,984




(a)

Tax effects calculated for all adjustments except tax benefits and share-based compensation expense, using an estimated annual effective tax rate of 21% for fiscal year 2018 and 35% for fiscal year 2017.

(b)

Defined as earnings before interest income and expense, taxes, depreciation and amortization, as well as excluding certain non-GAAP adjustments.

(c)

Includes amortization of debt financing fees associated with our debt facilities.

 

Omnicell, Inc.

Segmented Information

(Unaudited, in thousands, except for percentages)



Three Months Ended March 31, 2018


Three Months Ended March 31, 2017


Automation
and
Analytics


Medication
Adherence


Total


Automation
and

Analytics *


Medication

Adherence


Total*





Revenues

$

151,406



$

31,213



$

182,619



$

122,170



$

26,383



$

148,553


Cost of revenues

78,242



21,922



100,164



68,761



17,601



86,362


Gross profit

73,164



9,291



82,455



53,409



8,782



62,191


Gross margin %

48.3%



29.8%



45.2%



43.7%



33.3%



41.9%














Operating expenses

48,390



10,199



58,589



48,062



11,196



59,258


Income (loss) from segment operations

$

24,774



$

(908)



$

23,866



$

5,347



$

(2,414)



$

2,933


Operating margin %

16.4%



(2.9)%



13.1%



4.4%



(9.1)%



2.0%














Corporate costs





23,233







19,485


   Income (loss) from operations





$

633







$

(16,552)















* As adjusted for full retrospective adoption of Accounting Standard Codification ("ASC") 606, "Revenue from Contracts with Customers".

 

Omnicell, Inc.

Segment Information - Non-GAAP Gross Profit and Non-GAAP Operating Margin

(Unaudited, in thousands, except for percentages)



Three Months Ended March 31, 2018




Automation
and
Analytics


Medication
Adherence


Total


Amount


% of
GAAP
Revenue


% of
Non-
GAAP
Revenue


Amount


% of
GAAP
Revenue


% of
Non-
GAAP
Revenue


Amount


% of
GAAP
Revenue


% of
Non-
GAAP
Revenue

Revenues

$

151,406







$

31,213







$

182,619






Non-GAAP Revenues

$

151,406







$

31,213







$

182,619
























GAAP Gross profit

$

73,164



48.3

%




$

9,291



29.8

%




$

82,455



45.2

%



Share-based compensation expense

873



0.6

%


0.6

%


146



0.5

%


0.5

%


1,019



0.6

%


0.6

%

Amortization expense of acquired intangible assets

2,247



1.5

%


1.5

%


544



1.7

%


1.7

%


2,791



1.5

%


1.5

%

Non-GAAP Gross profit

$

76,284





50.4

%


$

9,981





32.0

%


$

86,265





47.2

%



















GAAP Operating income (loss)

$

24,774



16.4

%




$

(908)



(2.9)

%




$

23,866



13.1

%



Share-based compensation expense

2,730



1.8

%


1.8

%


446



1.4

%


1.4

%


3,176



1.7

%


1.7

%

Amortization expense of acquired intangible assets

4,302



2.8

%


2.8

%


1,727



5.5

%


5.5

%


6,029



3.3

%


3.3

%

Severance and other expenses

375



0.2

%


0.2

%


71



0.2

%


0.2

%


446



0.2

%


0.2

%

Non-GAAP Operating income

$

32,181





21.3

%


$

1,336





4.3

%


$

33,517





18.4

%



















GAAP Corporate costs













$

23,233



12.7

%



   Share-based compensation expense













(3,352)



(1.8)

%


(1.8)

%

Severance and other expenses













(1,066)



(0.6)

%


(0.6)

%

Non-GAAP Corporate costs













$

18,815





10.3

%



















Non-GAAP Income from operations













$

14,702





8.1

%



















 

Omnicell, Inc.

Segment Information - Non-GAAP Gross Profit and Non-GAAP Operating Margin

(Unaudited, in thousands, except for percentages)



Three Months Ended March 31, 2017




Automation and
Analytics*


Medication
Adherence


Total*


Amount


% of
GAAP
Revenue


% of
Non-
GAAP
Revenue


Amount


% of
GAAP
Revenue


% of
Non-GAAP Revenue


Amount


% of
GAAP
Revenue


% of
Non-
GAAP
Revenue

Revenues

$

122,170







$

26,383







$

148,553






Acquisition accounting impact related to deferred revenue



%


%


313



1.2

%


1.2

%


313



0.2

%


0.2

%

Non-GAAP Revenues

$

122,170







$

26,696







$

148,866
























GAAP Gross profit

$

53,409



43.7

%




$

8,782



33.3

%




$

62,191



41.9

%



Stock-based compensation expense

863



0.7

%


0.7

%


119



0.5

%


0.4

%


982



0.7

%


0.7

%

Amortization expense of acquired intangible assets

2,187



1.8

%


1.8

%


650



2.5

%


2.4

%


2,837



1.9

%


1.9

%

Acquisition accounting impact related to deferred revenue



%


%


313



1.2

%


1.2

%


313



0.2

%


0.2

%

Severance and other expenses

1,266



1.0

%


1.0

%


431



1.6

%


1.6

%


1,697



1.1

%


1.1

%

Non-GAAP Gross profit

$

57,725





47.2

%


$

10,295





38.6

%


$

68,020





45.7

%



















GAAP Operating income (loss)

$

5,347



4.4

%




$

(2,414)



(9.1)

%




$

2,933



2.0

%



Stock-based compensation expense

2,500



2.0

%


2.0

%


366



1.4

%


1.4

%


2,866



1.9

%


1.9

%

Amortization expense of acquired intangible assets

4,506



3.7

%


3.7

%


1,984



7.5

%


7.4

%


6,490



4.4

%


4.4

%

Acquisition accounting impact related to deferred revenue



%


%


313



1.2

%


1.2

%


313



0.2

%


0.2

%

Acquisitions related expenses

18



%


%




%


%


18



%


%

Severance and other expenses

2,752



2.3

%


2.3

%


596



2.3

%


2.2

%


3,348



2.3

%


2.2

%

Non-GAAP Operating income

$

15,123





12.4

%


$

845





3.2

%


$

15,968





10.7

%



















GAAP Corporate costs













$

19,485



13.1

%



Stock-based compensation expense













(2,645)



(1.8)

%


(1.8)

%

Acquisition related expenses













(108)



(0.1)

%


(0.1)

%

Severance and other expenses













(681)



(0.5)

%


(0.5)

%

Non-GAAP Corporate costs













$

16,051





10.8

%



















Non-GAAP loss from operations













$

(83)





(0.1)

%

































* As adjusted for full retrospective adoption of Accounting Standard Codification ("ASC") 606, "Revenue from Contracts with Customers".

OMCL-E

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/omnicell-announces-first-quarter-2018-results-300637637.html

SOURCE Omnicell, Inc.

Copyright 2014 PR Newswire. All Rights Reserved


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