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Oct 24, 2019

Omnicell Achieves Record Revenue in the Third Quarter 2019

Record GAAP and non-GAAP revenues of $228.8 million, up 12.0% year-over-year

GAAP net income per diluted share of $0.46, up 39.4% year-over-year

Record non-GAAP net income per diluted share of $0.76, up 20.6% year-over-year

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Oct. 24, 2019-- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication management solutions and adherence tools for healthcare systems and pharmacies, today announced results for its third quarter ended September 30, 2019.

GAAP Results

GAAP revenues for the third quarter of 2019 were $228.8 million, up $24.5 million, or 12.0% from the third quarter of 2018. GAAP revenues for the nine months ended September 30, 2019 were $648.7 million, up $73.2 million, or 12.7%, from the nine months ended September 30, 2018.

Third quarter 2019 GAAP net income was $20.0 million, or $0.46 per diluted share. This compares to GAAP net income of $13.6 million, or $0.33 per diluted share, for the third quarter of 2018.

GAAP net income for the nine months ended September 30, 2019 was $39.2 million, or $0.92 per diluted share. This compares to GAAP net income of $22.9 million, or $0.57 per diluted share, for the nine months ended September 30, 2018.

Non-GAAP Results

Non-GAAP revenues for the third quarter of 2019 were $228.8 million, up $24.5 million, or 12.0%, from the third quarter of 2018. Non-GAAP revenues for the nine months ended September 30, 2019 were $648.7 million, up $73.2 million, or 12.7%, from the nine months ended September 30, 2018.

Non-GAAP net income for the third quarter of 2019 was $32.7 million, or $0.76 per diluted share. This compares to non-GAAP net income of $25.7 million, or $0.63 per diluted share, for the third quarter of 2018.

Non-GAAP net income for the nine months ended September 30, 2019 was $87.2 million, or $2.04 per diluted share. This compares to non-GAAP net income of $55.5 million, or $1.38 per diluted share, for the nine months ended September 30, 2018.

Non-GAAP net income for each period excludes, when applicable, the effect of share-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 income tax benefits and expenses, contingent gains, and amortization of debt issuance cost.

“We believe the value we are creating through our Autonomous Pharmacy vision is being realized every day, as more and more customers join us on our journey to help revolutionize the pharmacy care delivery model,” said Randall Lipps, chairman, president, chief executive officer, and founder of Omnicell. “We are making significant strides to advance this vision and the way medications can be managed by driving toward a zero-error, fully automated and digitized infrastructure across the continuum of care.”

2019 Guidance

For the fourth quarter of 2019, the Company expects non-GAAP total revenues to be between $240 million and $246 million. The Company expects non-GAAP product revenues to be between $181 million and $186 million, and non-GAAP service revenues to be between $59 million and $60 million. The Company expects fourth quarter 2019 non-GAAP earnings to be between $0.75 and $0.80 per share.

For the full year 2019, the Company expects product bookings to be between $765 million and $790 million. The Company expects non-GAAP total revenues to be between $889 million and $895 million. The Company expects non-GAAP product revenues to be between $653 million and $658 million, and non-GAAP service revenues to be between $236 million and $237 million. The Company expects 2019 non-GAAP earnings to be between $2.79 and $2.84 per share.

The table below summarizes the 2019 guidance outlined above.

 

Q4'19

2019

Product Bookings

Not provided

$765 million - $790 million

Non-GAAP Total Revenues

$240 million - $246 million

$889 million - $895 million

Non-GAAP Product Revenues

$181 million - $186 million

$653 million - $658 million

Non-GAAP Service Revenues

$59 million - $60 million

$236 million - $237 million

Non-GAAP EPS

$0.75 - $0.80

$2.79 - $2.84

Omnicell Conference Call Information

Omnicell will hold a conference call today, Thursday, October 24, 2019 at 1:30 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 6695921. Internet users can access the conference call at http://ir.omnicell.com/communications/events-presentations. 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 November 22, 2019. 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 6695921.

About Omnicell

Since 1992, Omnicell has been inspired to create safer and more efficient ways to manage medications across all care settings. Through its industry-leading medication management platform that spans the continuum of care, Omnicell is developing a vision for a fully automated infrastructure, powered by a cloud data platform that supports improved patient care, fewer errors, enhanced safety, and new opportunities for growth.

Omnicell's vision for the Autonomous Pharmacy integrates a comprehensive set of solutions across three key areas: Automation solutions designed to digitize and streamline workflows; Intelligence that provides actionable insights to better understand medication usage and improve pharmacy supply chain management; and Work - expert services that serve as an extension of pharmacy operations to support improved efficiency, regulatory compliance, and patient outcomes.

Over 5,500 facilities worldwide use Omnicell automation and analytics solutions to help increase operational efficiency, reduce medication errors, deliver actionable intelligence, and improve patient safety. More than 40,000 institutional and retail pharmacies across North America and the United Kingdom leverage Omnicell's innovative medication adherence solutions designed to improve patient engagement and adherence to prescriptions, helping to reduce costly hospital readmissions.

To learn more about Omnicell and its Autonomous Pharmacy vision, 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 projected bookings, revenues and earnings per share; pipeline; planned new products and services; new sales opportunities, and statements about Omnicell’s strategy, objectives, and vision. Risks that contribute to the uncertain nature of the forward-looking statements include (i) Omnicell's ability to take advantage of the growth opportunities in medication management across all care settings, (ii) Omnicell's ability to develop and commercialize new products, including the XR2 Automated Central Pharmacy System and the IVX Workflow semi-automated workflow solution, and enhance existing products, (iii) Omnicell's ability to deliver on our vision of the Autonomous Pharmacy and the impact that advanced automation, data intelligence, and expert services will have on patient care, (iv) unfavorable general economic and market conditions, (v) risks to growth and acceptance of Omnicell's products and services, including competitive conversions, and growth of the clinical automation and workflow automation market generally, (vi) risks presented by the transition to selling more products on a subscription basis, (vii) potential of increasing competition, (viii) potential regulatory changes, (ix) Omnicell's ability to improve sales productivity to grow product bookings, and (x) Omnicell's ability to acquire companies, businesses, or technologies and successfully integrate such acquisitions. 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 revenues, 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 revenues, 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)

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.

e)

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.

f)

Tax impact from intellectual property (“IP”) restructuring. We excluded from our non-GAAP results the tax impacts related to IP restructuring. 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.

g)

Tax restructuring costs. We excluded from our non-GAAP results the expenses which are related to restructuring events. These expenses are unrelated to our ongoing operations, vary in size and frequency, and are subject to significant fluctuations from period to period due to varying levels of restructuring activity. 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)

Contingent gain. We excluded from our non-GAAP results the contingent gain related to a settlement agreement associated with the Ateb acquisition. This contingent gain is unrelated to our ongoing operations, and we do not expect it to occur in the ordinary course of business. We believe that excluding this contingent gain 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:

a)

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.

b)

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.

c)

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.

d)

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 Accounting Standard Codification (“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 share-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 share-based 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:

a)

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. 

b)

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.

Our 2019 guidance for non-GAAP earnings per share, as well as certain projections to be discussed in the conference call noted above, exclude “certain items,” which include but are not limited to: unusual gains and losses; costs associated with future restructurings; acquisition-related expenses; and certain tax and litigation outcomes. We do not provide a reconciliation of non-GAAP earnings per share guidance to the comparable GAAP measure as these items are inherently uncertain and difficult to estimate, and cannot be predicted without unreasonable effort. We believe such a reconciliation would imply a degree of precision that could be confusing to investors. These items may also have a material impact on GAAP earnings per share in future periods.

 

Omnicell, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

2019

 

2018

 

2019

 

2018

Revenues:

 

 

 

 

 

 

 

Product revenues

$

168,488

 

$

149,709

 

$

472,477

 

$

415,004

Services and other revenues

60,317

 

54,558

 

176,258

 

160,555

Total revenues

228,805

 

204,267

 

648,735

 

575,559

Cost of revenues:

 

 

 

 

 

 

 

Cost of product revenues

86,695

 

79,149

 

250,089

 

229,642

Cost of services and other revenues

29,963

 

26,209

 

85,337

 

75,770

Total cost of revenues

116,658

 

105,358

 

335,426

 

305,412

Gross profit

112,147

 

98,909

 

313,309

 

270,147

Operating expenses:

 

 

 

 

 

 

 

Research and development

16,625

 

15,805

 

49,551

 

47,854

Selling, general, and administrative

70,876

 

65,609

 

207,588

 

196,831

Total operating expenses

87,501

 

81,414

 

257,139

 

244,685

Income from operations

24,646

 

17,495

 

56,170

 

25,462

Interest and other income (expense), net

(1,168)

 

(2,837)

 

(4,207)

 

(6,462)

Income before provision for income taxes

23,478

 

14,658

 

51,963

 

19,000

Provision for (benefit from) income taxes

3,495

 

1,030

 

12,720

 

(3,936)

Net income

$

19,983

 

$

13,628

 

$

39,243

 

$

22,936

Net income per share:

 

 

 

 

 

 

 

Basic

$

0.48

 

$

0.35

 

$

0.95

 

$

0.59

Diluted

$

0.46

 

$

0.33

 

$

0.92

 

$

0.57

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

41,771

 

39,432

 

41,283

 

39,015

Diluted

43,052

 

40,860

 

42,796

 

40,237

 

Omnicell, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

 

 

 

 

 

September 30,
2019

 

December 31,
2018

 

 

 

 

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

137,277

 

$

67,192

Accounts receivable and unbilled receivables, net

203,391

 

196,238

Inventories

105,813

 

100,868

Prepaid expenses

18,728

 

20,700

Other current assets

11,870

 

12,136

Total current assets

477,079

 

397,134

Property and equipment, net

54,877

 

51,500

Long-term investment in sales-type leases, net

21,494

 

17,082

Operating lease right-of-use assets

59,041

 

Goodwill

334,516

 

335,887

Intangible assets, net

129,163

 

143,686

Long-term deferred tax assets

30,607

 

15,197

Prepaid commissions

45,234

 

46,143

Other long-term assets

92,259

 

74,613

Total assets

$

1,244,270

 

$

1,081,242

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

48,449

 

$

38,038

Accrued compensation

33,499

 

41,660

Accrued liabilities

58,017

 

43,047

Deferred revenues, net

88,205

 

81,835

Total current liabilities

228,170

 

204,580

Long-term deferred revenues

7,979

 

10,582

Long-term deferred tax liabilities

60,917

 

41,484

Long-term operating lease liabilities

52,738

 

Other long-term liabilities

9,798

 

9,562

Long-term debt, net

77,135

 

135,417

Total liabilities

436,737

 

401,625

Total stockholders’ equity

807,533

 

679,617

Total liabilities and stockholders’ equity

$

1,244,270

 

$

1,081,242

 

Omnicell, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

 

 

 

Nine months ended September 30,

 

2019

 

2018

Operating Activities

 

 

 

Net income

$

39,243

 

$

22,936

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

 

 

 

Depreciation and amortization

39,525

 

37,490

Loss on disposal of property and equipment

436

 

136

Share-based compensation expense

25,175

 

20,851

Deferred income taxes

4,023

 

(8,849)

Amortization of operating lease right-of-use assets

7,917

 

Amortization of debt financing fees

1,718

 

1,718

Changes in operating assets and liabilities:

 

 

 

Accounts receivable and unbilled receivables

(7,716)

 

(16,179)

Inventories

(7,015)

 

(5,288)

Prepaid expenses

(1,341)

 

774

Other current assets

974

 

3,120

Investment in sales-type leases

(5,120)

 

(1,732)

Prepaid commissions

909

 

991

Other long-term assets

3,944

 

(6,188)

Accounts payable

10,316

 

(8,439)

Accrued compensation

(8,161)

 

5,712

Accrued liabilities

5,262

 

1,482

Deferred revenues

3,900

 

9,014

Operating lease liabilities

(7,887)

 

Other long-term liabilities

4,086

 

(1,035)

Net cash provided by operating activities

110,188

 

56,514

Investing Activities

 

 

 

Software development for external use

(34,129)

 

(22,213)

Purchases of property and equipment

(12,632)

 

(19,259)

Net cash used in investing activities

(46,761)

 

(41,472)

Financing Activities

 

 

 

Repayment of debt and revolving credit facility

(60,000)

 

(27,000)

At the market offering, net of offering costs

37,806

 

Proceeds from issuances under stock-based compensation plans

35,029

 

27,729

Employees’ taxes paid related to restricted stock units

(5,790)

 

(3,648)

Net cash provided by (used in) financing activities

7,045

 

(2,919)

Effect of exchange rate changes on cash and cash equivalents

(387)

 

(373)

Net increase in cash and cash equivalents

70,085

 

11,750

Cash and cash equivalents at beginning of period

67,192

 

32,424

Cash and cash equivalents at end of period

$

137,277

 

$

44,174

 

Omnicell, Inc.

Reconciliation of GAAP to Non-GAAP

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

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

Reconciliation of GAAP revenues to non-GAAP revenues:

GAAP revenues

$

228,805

 

$

204,267

 

$

648,735

 

$

575,559

Non-GAAP revenues

$

228,805

 

$

204,267

 

$

648,735

 

$

575,559

 

 

 

 

 

 

 

 

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

 

 

 

 

 

GAAP gross profit

$

112,147

 

$

98,909

 

$

313,309

 

$

270,147

GAAP gross margin

49.0%

 

48.4%

 

48.3%

 

46.9%

Share-based compensation expense

1,316

 

1,150

 

4,194

 

3,346

Amortization of acquired intangibles

2,037

 

2,728

 

6,147

 

8,275

Non-GAAP gross profit

$

115,500

 

$

102,787

 

$

323,650

 

$

281,768

Non-GAAP gross margin

50.5%

 

50.3%

 

49.9%

 

49.0%

 

 

 

 

 

 

 

 

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

 

 

 

 

GAAP operating expenses

$

87,501

 

$

81,414

 

$

257,139

 

$

244,685

GAAP operating expenses % to total revenues

38.2%

 

39.9%

 

39.6%

 

42.5%

Share-based compensation expense

(7,189)

 

(5,935)

 

(20,981)

 

(17,505)

Amortization of acquired intangibles

(2,545)

 

(3,029)

 

(7,891)

 

(9,393)

Severance and other expenses

(194)

 

67

 

(920)

 

(3,180)

Non-GAAP operating expenses

$

77,573

 

$

72,517

 

$

227,347

 

$

214,607

Non-GAAP operating expenses % to total non-GAAP revenues

33.9%

 

35.5%

 

35.0%

 

37.3%

 

 

 

 

 

 

 

 

Reconciliation of GAAP income from operations to non-GAAP income from operations:

GAAP income from operations

$

24,646

 

$

17,495

 

$

56,170

 

$

25,462

GAAP operating income % to total revenues

10.8%

 

8.6%

 

8.7%

 

4.4%

Share-based compensation expense

8,505

 

7,085

 

25,175

 

20,851

Amortization of acquired intangibles

4,582

 

5,757

 

14,038

 

17,668

Severance and other expenses

194

 

(67)

 

920

 

3,180

Non-GAAP income from operations

$

37,927

 

$

30,270

 

$

96,303

 

$

67,161

Non-GAAP operating income % to total non-GAAP revenues

16.6%

 

14.8%

 

14.8%

 

11.7%

 

Omnicell, Inc.

Reconciliation of GAAP to Non-GAAP

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

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

Reconciliation of GAAP net income to non-GAAP net income:

GAAP net income

$

19,983

 

$

13,628

 

$

39,243

 

$

22,936

Tax benefit for restructuring activity

 

 

 

(4,205)

Tax impact of IP restructuring

 

 

9,624

 

Share-based compensation expense

8,505

 

7,085

 

25,175

 

20,851

Amortization of acquired intangibles

4,582

 

5,757

 

14,038

 

17,668

Severance and other expenses(a)

767

 

506

 

2,639

 

4,899

Contingent gain

 

 

 

(2,456)

Tax effect of the adjustments above(b)

(1,123)

 

(1,315)

 

(3,501)

 

(4,222)

Non-GAAP net income

$

32,714

 

$

25,661

 

$

87,218

 

$

55,471

 

 

 

 

 

 

 

 

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

Shares - diluted GAAP

43,052

 

40,860

 

42,796

 

40,237

Shares - diluted Non-GAAP

43,052

 

40,860

 

42,796

 

40,237

 

 

 

 

 

 

 

 

GAAP net income per share - diluted

$

0.46

 

$

0.33

 

$

0.92

 

$

0.57

Tax benefit for restructuring activity

 

 

 

(0.10)

Tax impact of IP restructuring

 

 

0.22

 

Share-based compensation expense

0.20

 

0.17

 

0.59

 

0.52

Amortization of acquired intangibles

0.11

 

0.15

 

0.33

 

0.43

Severance and other expenses

0.02

 

0.01

 

0.06

 

0.12

Contingent gain

 

 

 

(0.06)

Tax effect of the adjustments above(b)

(0.03)

 

(0.03)

 

(0.08)

 

(0.10)

Non-GAAP net income per share - diluted

$

0.76

 

$

0.63

 

$

2.04

 

$

1.38

 

 

 

 

 

 

 

 

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

GAAP net income

$

19,983

 

$

13,628

 

$

39,243

 

$

22,936

Share-based compensation expense

8,505

 

7,085

 

25,175

 

20,851

Interest (income) and expense, net

572

 

1,561

 

1,965

 

4,948

Depreciation and amortization expense

13,651

 

12,661

 

39,525

 

37,490

Severance and other expenses

767

 

506

 

2,639

 

4,899

Contingent gain

 

 

 

(2,456)

Income tax expense (benefit)

3,495

 

1,030

 

12,720

 

(3,936)

Non-GAAP adjusted EBITDA

$

46,973

 

$

36,471

 

$

121,267

 

$

84,732

a)

For the three months ended September 30, 2019, other expenses include $0.4 million and $0.2 million of amortization of debt issuance cost related to prior acquisitions and credit facilities amendments, respectively, and $0.2 million of tax restructuring costs. For the nine months ended September 30, 2019, other expenses include $1.2 million and $0.5 million of amortization of debt issuance cost related to prior acquisitions and credit facilities amendments, respectively, and $0.9 million of tax restructuring costs. For the three months ended September 30, 2018, other expenses include $0.4 million and $0.2 million of amortization of debt issuance cost related to prior acquisitions and credit facilities amendments, respectively. For the nine months ended September 30, 2018, other expenses include $1.2 million and $0.5 million of amortization of debt issuance cost related to prior acquisitions and credit facilities amendments, respectively, and $0.6 million of tax restructuring costs.

b)

Tax effects calculated for all adjustments except tax benefits and expenses, and share-based compensation expense, using an estimated annual effective tax rate of 21% for both fiscal years 2019 and 2018.

c)

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

OMCL-E

Source: Omnicell, Inc.

Peter Kuipers
Chief Financial Officer
800-850-6664
Peter.Kuipers@Omnicell.com