<< Back
Jul 25, 2019

Omnicell Reports Results for Second Quarter 2019

Record GAAP and non-GAAP revenues of $217.4 million, up 15.2% year-over-year

GAAP net income per diluted share of $0.37, up 131.3% year-over-year

Non-GAAP net income per diluted share of $0.67, up 45.7% year-over-year

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jul. 25, 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 second quarter ended June 30, 2019.

GAAP Results

GAAP revenues for the second quarter of 2019 were $217.4 million, up $28.7 million, or 15.2% from the second quarter of 2018. GAAP revenues for the six months ended June 30, 2019 were $419.9 million, up $48.6 million, or 13.1%, from the six months ended June 30, 2018.

Second quarter 2019 GAAP net income as reported was $16.0 million, or $0.37 per diluted share. This compares to GAAP net income of $6.6 million, or $0.16 per diluted share, for the second quarter of 2018.

GAAP net income for the six months ended June 30, 2019 was $19.3 million, or $0.45 per diluted share. This compares to GAAP net income of $9.3 million, or $0.23 per diluted share, for the six months ended June 30, 2018.

Non-GAAP Results

Non-GAAP revenues for the second quarter of 2019 were $217.4 million, up $28.7 million, or 15.2%, from the second quarter of 2018. Non-GAAP revenues for the six months ended June 30, 2019 were $419.9 million, up $48.6 million, or 13.1%, from the six months ended June 30, 2018.

Non-GAAP net income for the second quarter of 2019 was $28.7 million, or $0.67 per diluted share. This compares to non-GAAP net income of $18.4 million, or $0.46 per diluted share, for the second quarter of 2018.

Non-GAAP net income for the six months ended June 30, 2019 was $54.5 million, or $1.28 per diluted share. This compares to non-GAAP net income of $29.8 million, or $0.75 per diluted share, for the six months ended June 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.

“As we enter the second half of 2019, I’m thrilled to see our Autonomous Pharmacy vision coming to life,” said Randall Lipps, chairman, president, chief executive officer, and founder of Omnicell. “Together with our health system and retail pharmacy partners, we are accelerating the value creation for the industry by transforming the pharmacy care delivery model, revolutionizing the way medications are delivered, reducing costs, and ultimately improving the lives of patients, clinicians, and pharmacists.”

2019 Guidance

For the third quarter of 2019, the Company expects non-GAAP total revenues to be between $227 million and $233 million. The Company expects non-GAAP product revenues to be between $168 million and $173 million, and non-GAAP service revenues to be between $59 million and $60 million. The Company expects third quarter 2019 non-GAAP earnings to be between $0.67 and $0.72 per share.

For the 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 $886 million and $900 million. The Company expects non-GAAP product revenues to be between $653 million and $663 million, and non-GAAP service revenues to be between $233 million and $237 million. The Company expects 2019 non-GAAP earnings to be between $2.65 and $2.82 per share.

The table below summarizes 2019 guidance outlined above.

 

Q3'19

2019

Product Bookings

Not provided

$765 million - $790 million

Non-GAAP Total Revenues

$227 million - $233 million

$886 million - $900 million

Non-GAAP Product Revenues

$168 million - $173 million

$653 million - $663 million

Non-GAAP Service Revenues

$59 million - $60 million

$233 million - $237 million

Non-GAAP EPS

$0.67 - $0.72

$2.65 - $2.82

Omnicell Conference Call Information

Omnicell will hold a conference call today, Thursday, July 25, 2019 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 5149909. 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 August 24, 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 5149909.

About Omnicell

Since 1992, Omnicell has been inspired to create safer and more efficient ways to manage medications across all care settings. Through our 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 our 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 the spectrum of healthcare settings from hospital to home, (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, (vi) growth of the clinical automation and workflow automation market generally, (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)

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 June 30,

 

Six months ended June 30,

 

2019

 

2018

 

2019

 

2018

Revenues:

 

 

 

 

 

 

 

Product revenues

$

158,379

 

 

$

134,636

 

 

$

303,989

 

 

$

265,295

 

Services and other revenues

59,034

 

 

54,037

 

 

115,941

 

 

105,997

 

Total revenues

217,413

 

 

188,673

 

 

419,930

 

 

371,292

 

Cost of revenues:

 

 

 

 

 

 

 

Cost of product revenues

84,583

 

 

75,076

 

 

163,394

 

 

150,493

 

Cost of services and other revenues

28,785

 

 

24,814

 

 

55,374

 

 

49,561

 

Total cost of revenues

113,368

 

 

99,890

 

 

218,768

 

 

200,054

 

Gross profit

104,045

 

 

88,783

 

 

201,162

 

 

171,238

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

16,848

 

 

15,512

 

 

32,926

 

 

32,049

 

Selling, general, and administrative

68,434

 

 

65,937

 

 

136,712

 

 

131,222

 

Total operating expenses

85,282

 

 

81,449

 

 

169,638

 

 

163,271

 

Income from operations

18,763

 

 

7,334

 

 

31,524

 

 

7,967

 

Interest and other income (expense), net

(1,629

)

 

(896

)

 

(3,039

)

 

(3,625

)

Income before provision for income taxes

17,134

 

 

6,438

 

 

28,485

 

 

4,342

 

Provision for (benefit from) income taxes

1,158

 

 

(150

)

 

9,225

 

 

(4,966

)

Net income

$

15,976

 

 

$

6,588

 

 

$

19,260

 

 

$

9,308

 

Net income per share:

 

 

 

 

 

 

 

Basic

$

0.39

 

 

$

0.17

 

 

$

0.47

 

 

$

0.24

 

Diluted

$

0.37

 

 

$

0.16

 

 

$

0.45

 

 

$

0.23

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

41,371

 

 

38,970

 

 

41,033

 

 

38,804

 

Diluted

42,945

 

 

40,000

 

 

42,646

 

 

39,854

 

Omnicell, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

 

June 30,
2019

 

December 31,
2018

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

87,482

 

 

$

67,192

 

Accounts receivable and unbilled receivables, net

205,353

 

 

196,238

 

Inventories

103,906

 

 

100,868

 

Prepaid expenses

19,679

 

 

20,700

 

Other current assets

13,419

 

 

12,136

 

Total current assets

429,839

 

 

397,134

 

Property and equipment, net

52,847

 

 

51,500

 

Long-term investment in sales-type leases, net

21,041

 

 

17,082

 

Operating lease right-of-use assets

61,482

 

 

 

Goodwill

335,699

 

 

335,887

 

Intangible assets, net

134,101

 

 

143,686

 

Long-term deferred tax assets

31,195

 

 

15,197

 

Prepaid commissions

44,607

 

 

46,143

 

Other long-term assets

86,167

 

 

74,613

 

Total assets

$

1,196,978

 

 

$

1,081,242

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

40,183

 

 

$

38,038

 

Accrued compensation

33,619

 

 

41,660

 

Accrued liabilities

54,570

 

 

43,047

 

Deferred revenues, net

83,012

 

 

81,835

 

Total current liabilities

211,384

 

 

204,580

 

Long-term deferred revenues

9,658

 

 

10,582

 

Long-term deferred tax liabilities

61,292

 

 

41,484

 

Long-term operating lease liabilities

55,237

 

 

 

Other long-term liabilities

9,603

 

 

9,562

 

Long-term debt, net

76,562

 

 

135,417

 

Total liabilities

423,736

 

 

401,625

 

Total stockholders’ equity

773,242

 

 

679,617

 

Total liabilities and stockholders’ equity

$

1,196,978

 

 

$

1,081,242

 

Omnicell, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

 

Six months ended June 30,

 

2019

 

2018

Operating Activities

 

 

 

Net income

$

19,260

 

 

$

9,308

 

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

 

 

 

Depreciation and amortization

25,874

 

 

24,829

 

Loss on disposal of property and equipment

399

 

 

 

Share-based compensation expense

16,670

 

 

13,766

 

Deferred income taxes

3,810

 

 

(6,655

)

Amortization of operating lease right-of-use assets

5,226

 

 

 

Amortization of debt financing fees

1,145

 

 

1,145

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable and unbilled receivables

(9,244

)

 

15,476

 

Inventories

(4,466

)

 

(9,789

)

Prepaid expenses

1,021

 

 

2,126

 

Other current assets

(830

)

 

(2,283

)

Investment in sales-type leases

(4,412

)

 

(1,838

)

Prepaid commissions

1,536

 

 

2,812

 

Other long-term assets

3,061

 

 

(2,797

)

Accounts payable

2,066

 

 

(12,229

)

Accrued compensation

(8,041

)

 

3,927

 

Accrued liabilities

1,810

 

 

(2,574

)

Deferred revenues

253

 

 

5,336

 

Operating lease liabilities

(5,269

)

 

 

Other long-term liabilities

3,891

 

 

167

 

Net cash provided by operating activities

53,760

 

 

40,727

 

Investing Activities

 

 

 

Software development for external use

(22,581

)

 

(13,091

)

Purchases of property and equipment

(9,369

)

 

(14,985

)

Net cash used in investing activities

(31,950

)

 

(28,076

)

Financing Activities

 

 

 

Repayment of debt and revolving credit facility

(60,000

)

 

(12,500

)

At the market offering, net of offering costs

37,806

 

 

 

Proceeds from issuances under stock-based compensation plans

25,333

 

 

16,117

 

Employees’ taxes paid related to restricted stock units

(4,722

)

 

(3,062

)

Net cash (used in) provided by financing activities

(1,583

)

 

555

 

Effect of exchange rate changes on cash and cash equivalents

63

 

 

538

 

Net increase in cash and cash equivalents

20,290

 

 

13,744

 

Cash and cash equivalents at beginning of period

67,192

 

 

32,424

 

Cash and cash equivalents at end of period

$

87,482

 

 

$

46,168

 

Omnicell, Inc.

Reconciliation of GAAP to Non-GAAP

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

 

Three months ended June 30,

 

Six months ended June 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

Reconciliation of GAAP revenues to non-GAAP revenues:

 

 

 

 

 

 

 

GAAP revenues

$

217,413

 

 

$

188,673

 

 

$

419,930

 

 

$

371,292

 

Non-GAAP revenues

$

217,413

 

 

$

188,673

 

 

$

419,930

 

 

$

371,292

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

GAAP gross profit

$

104,045

 

 

$

88,783

 

 

$

201,162

 

 

$

171,238

 

GAAP gross margin

47.9%

 

47.1%

 

47.9%

 

46.1%

Share-based compensation expense

1,416

 

 

1,177

 

 

2,878

 

 

2,196

 

Amortization of acquired intangibles

2,044

 

 

2,756

 

 

4,110

 

 

5,547

 

Non-GAAP gross profit

$

107,505

 

 

$

92,716

 

 

$

208,150

 

 

$

178,981

 

Non-GAAP gross margin

49.4%

 

49.1%

 

49.6%

 

48.2%

 

 

 

 

 

 

 

 

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

 

 

 

 

GAAP operating expenses

$

85,282

 

 

$

81,449

 

 

$

169,638

 

 

$

163,271

 

GAAP operating expenses % to total revenues

39.2%

 

43.2%

 

40.4%

 

44.0%

Share-based compensation expense

(6,844

)

 

(6,061

)

 

(13,792

)

 

(11,570

)

Amortization of acquired intangibles

(2,630

)

 

(3,126

)

 

(5,346

)

 

(6,364

)

Severance and other expenses

(440

)

 

(1,735

)

 

(726

)

 

(3,247

)

Non-GAAP operating expenses

$

75,368

 

 

$

70,527

 

 

$

149,774

 

 

$

142,090

 

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

34.7%

 

37.4%

 

35.7%

 

38.3%

 

 

 

 

 

 

 

 

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

GAAP income from operations

$

18,763

 

 

$

7,334

 

 

$

31,524

 

 

$

7,967

 

GAAP operating income % to total revenues

8.6%

 

3.9%

 

7.5%

 

2.1%

Share-based compensation expense

8,260

 

 

7,238

 

 

16,670

 

 

13,766

 

Amortization of acquired intangibles

4,674

 

 

5,882

 

 

9,456

 

 

11,911

 

Severance and other expenses

440

 

 

1,735

 

 

726

 

 

3,247

 

Non-GAAP income from operations

$

32,137

 

 

$

22,189

 

 

$

58,376

 

 

$

36,891

 

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

14.8%

 

11.8%

 

13.9%

 

9.9%

Omnicell, Inc.

Reconciliation of GAAP to Non-GAAP

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

 

Three months ended June 30,

 

Six months ended June 30,

 

2019

 

2018

 

2019

 

2018

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

GAAP net income

$

15,976

 

 

$

6,588

 

 

$

19,260

 

 

$

9,308

 

Tax benefit for restructuring activity

 

 

 

 

 

 

(4,205

)

Tax impact of IP restructuring

 

 

 

 

9,624

 

 

 

Share-based compensation expense

8,260

 

 

7,238

 

 

16,670

 

 

13,766

 

Amortization of acquired intangibles

4,674

 

 

5,882

 

 

9,456

 

 

11,911

 

Severance and other expenses(a)

1,013

 

 

2,308

 

 

1,872

 

 

4,393

 

Contingent gain

 

 

(2,456

)

 

 

 

(2,456

)

Tax effect of the adjustments above(b)

(1,194

)

 

(1,204

)

 

(2,378

)

 

(2,907

)

Non-GAAP net income

$

28,729

 

 

$

18,356

 

 

$

54,504

 

 

$

29,810

 

 

 

 

 

 

 

 

 

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

Shares - diluted GAAP

42,945

 

 

40,000

 

 

42,646

 

 

39,854

 

 

 

 

 

 

 

 

 

Shares - diluted Non-GAAP

42,945

 

 

40,000

 

 

42,646

 

 

39,854

 

 

 

 

 

 

 

 

 

GAAP net income per share - diluted

$

0.37

 

 

$

0.16

 

 

$

0.45

 

 

$

0.23

 

Tax benefit for restructuring activity

 

 

 

 

 

 

(0.11

)

Tax impact of IP restructuring

 

 

 

 

0.23

 

 

 

Share-based compensation expense

0.19

 

 

0.18

 

 

0.39

 

 

0.35

 

Amortization of acquired intangibles

0.11

 

 

0.15

 

 

0.22

 

 

0.30

 

Severance and other expenses

0.03

 

 

0.06

 

 

0.05

 

 

0.11

 

Contingent gain

 

 

(0.06

)

 

 

 

(0.06

)

Tax effect of the adjustments above(b)

(0.03

)

 

(0.03

)

 

(0.06

)

 

(0.07

)

Non-GAAP net income per share - diluted

$

0.67

 

 

$

0.46

 

 

$

1.28

 

 

$

0.75

 

 

 

 

 

 

 

 

 

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

GAAP net income

$

15,976

 

 

$

6,588

 

 

$

19,260

 

 

$

9,308

 

Share-based compensation expense

8,260

 

 

7,238

 

 

16,670

 

 

13,766

 

Interest (income) and expense, net

687

 

 

1,615

 

 

1,393

 

 

3,387

 

Depreciation and amortization expense

13,237

 

 

12,519

 

 

25,874

 

 

24,829

 

Severance and other expenses

1,013

 

 

2,308

 

 

1,872

 

 

4,393

 

Contingent gain

 

 

(2,456

)

 

 

 

(2,456

)

Income tax expense (benefit)

1,158

 

 

(150

)

 

9,225

 

 

(4,966

)

Non-GAAP adjusted EBITDA

$

40,331

 

 

$

27,662

 

 

$

74,294

 

 

$

48,261

 

(a)

For the three months ended June 30, 2019, other expenses include $0.4 million and $0.2 million of amortization of debt issuance costs related to prior acquisitions and credit facilities amendments, respectively, and $0.4 million of tax restructuring costs. For the three months ended June 30, 2018, other expenses include $0.2 million of consulting-related restructuring expenses, and $0.4 million and $0.2 million of amortization of debt issuance costs related to prior acquisitions and credit facilities amendments, respectively.

 

(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.

 

Source: Omnicell, Inc.

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