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Omnicell Announces Financial Results for Second Quarter 2021

July 29, 2021

Record revenues of $273 million
GAAP net income per diluted share of $0.43
Record non-GAAP net income per diluted share of $0.97

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, 2021.

GAAP Results

Total revenues for the second quarter of 2021 were $272.7 million, up $73.1 million, or 36.6%, from the second quarter of 2020. The increase in revenues reflects momentum in our commercial business and strong customer implementations as well as recovery from the impact of COVID-19 relative to the second quarter of 2020. Total revenues for the six months ended June 30, 2021 were $524.6 million, up $95.3 million, or 22.2%, from the six months ended June 30, 2020.

Second quarter 2021 GAAP net income was $20.4 million, or $0.43 per diluted share. This compares to GAAP net loss of $4.3 million, or $0.10 per diluted share, for the second quarter of 2020.

GAAP net income for the six months ended June 30, 2021 was $34.6 million, or $0.74 per diluted share. This compares to GAAP net income of $7.0 million, or $0.16 per diluted share, for the six months ended June 30, 2020.

Non-GAAP Results

Non-GAAP net income for the second quarter of 2021 was $44.1 million, or $0.97 per diluted share. This compares to non-GAAP net income of $15.9 million, or $0.37 per diluted share, for the second quarter of 2020.

Non-GAAP net income for the six months ended June 30, 2021 was $81.6 million, or $1.81 per diluted share. This compares to non-GAAP net income of $44.8 million, or $1.03 per diluted share, for the six months ended June 30, 2020.

Non-GAAP EBITDA for the second quarter of 2021 was $61.0 million. This compares to non-GAAP EBITDA of $26.2 million for the second quarter of 2020.

Non-GAAP EBITDA for the six months ended June 30, 2021 was $111.7 million. This compares to non-GAAP EBITDA of $66.6 million for the six months ended June 30, 2020.

“We achieved record revenue, record non-GAAP net income per diluted share, and record non-GAAP EBITDA in the second quarter, as we continue to focus on improving patient health outcomes and support our healthcare systems partners on their journey to the Autonomous Pharmacy,” said Randall Lipps, Chairman, President, Chief Executive Officer, and founder of Omnicell. “Our strong performance in the quarter and year-to-date reflects ongoing robust demand for our solutions and services as hospitals, healthcare systems, and retail pharmacies advance their efforts to optimize and automate medication management and adherence systems. In addition, our Advanced Services portfolio continues to gain momentum in the market. Earlier this week, we announced our intent to acquire FDS Amplicare, a leading provider of pharmacy SaaS solutions that we believe will further strengthen our Advanced Services portfolio, enhancing our ability to deliver best-in-class solutions, and expanding our EnlivenHealth platform. We are excited about the opportunities ahead and believe we are well-positioned to continue to deliver value for our stakeholders.”

2021 Guidance

For the third quarter of 2021, the Company expects total revenues to be between $281 million and $286 million. The Company expects product revenues to be between $202 million and $205 million, and service revenues to be between $79 million and $81 million. The Company expects third quarter 2021 non-GAAP EBITDA to be between $57 million and $60 million. The Company expects third quarter 2021 non-GAAP earnings to be between $0.89 and $0.94 per share.

For the full year 2021, the Company expects product bookings to be between $1.110 billion and $1.150 billion. The Company expects total revenues to be between $1.100 billion and $1.115 billion. The Company expects product revenues to be between $785 million and $795 million, and service revenues to be between $315 million and $320 million. The Company expects full year 2021 non-GAAP EBITDA to be between $231 million and $237 million. The Company expects full year 2021 non-GAAP earnings to be between $3.65 and $3.75 per share. Our guidance reflects anticipated effects of the current inflationary environment.

The table below summarizes Omnicell’s 2021 guidance outlined above.

 

Q3 2021

FY 2021

Product Bookings

Not provided

$1.110 billion - $1.150 billion

Total Revenues

$281 million - $286 million

$1.100 billion - $1.115 billion

Product Revenues

$202 million - $205 million

$785 million - $795 million

Service Revenues

$79 million - $81 million

$315 million - $320 million

Non-GAAP EBITDA

$57 million - $60 million

$231 million - $237 million

Non-GAAP Earnings Per Share

$0.89 - $0.94

$3.65 - $3.75

The Company does not provide guidance for GAAP net income or GAAP earnings per share nor a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These forward-looking non-GAAP financial measures do not include certain items, which may be significant, including, but not limited to, unusual gains and losses, costs associated with future restructurings, acquisition-related expenses, and certain tax and litigation outcomes.

Omnicell Conference Call Information

Omnicell will hold a conference call today, Thursday, July 29, 2021 at 5:30 a.m. PT to discuss second quarter 2021 financial results. The conference call can be accessed by dialing 1-855-451-1210 within the U.S. or 1-236-714-3867 for all other locations. The Conference ID # is 6356636. A link to the live and archived webcast will also be available on the Investor Relations section of Omnicell's website at http://ir.omnicell.com/events-and-presentations/.

About Omnicell

Since 1992, Omnicell has been committed to transforming the pharmacy care delivery model to dramatically improve outcomes and lower costs. Through the vision of the autonomous pharmacy, a combination of automation, intelligence, and technology-enabled services, powered by a cloud data platform, Omnicell supports more efficient ways to manage medications across all care settings.

Over 7,000 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 50,000 institutional and retail pharmacies across North America and the United Kingdom leverage Omnicell’s innovative medication adherence and population health solutions to improve patient engagement and adherence to prescriptions, helping to reduce costly hospital readmissions.

To learn more, visit www.omnicell.com. From time to time, Omnicell may use the Company’s investor relations site and other online social media channels, including its Twitter handle www.twitter.com/omnicell, LinkedIn page www.linkedin.com/company/omnicell, and Facebook page www.facebook.com/omnicellinc, to disclose material non-public information and comply with its disclosure obligations under Regulation Fair Disclosure (“FD”).

Omnicell is a registered trademark and the Omnicell logo is a trademark of Omnicell, Inc. in the United States and other countries.

Forward-Looking Statements

To the extent any statements contained in this press 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. Without limiting the foregoing, statements including the words “expect,” “intend,” “may,” “will,” “should,” “would,” “plan,” “potential,” “anticipate,” “believe,” “forecast,” “guidance,” “outlook,” “goals,” “target,” “estimate,” “seeks,” “predicts,” and “projects” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to the occurrence of many events outside Omnicell’s control. Such statements include, but are not limited to, Omnicell’s projected bookings, revenues, non-GAAP EBITDA, and non-GAAP earnings per share; planned new products and services; and statements about Omnicell’s strategy, objectives, and vision. Actual results and other events may differ significantly from those contemplated by forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things, (i) risks related to outbreaks of contagious diseases or other adverse public health epidemics including the ongoing COVID-19 pandemic, including the duration and any resurgences of the COVID-19 pandemic (including the emergence of new variants of the COVID-19 virus), (ii) unfavorable general economic and market conditions, including due to economic disruption caused by public health crises such as the COVID-19 pandemic, (iii) Omnicell’s ability to take advantage of the growth opportunities in medication management across all care settings, (iv) Omnicell’s ability to develop and commercialize new products and enhance existing products, (v) Omnicell’s ability to deliver on the vision of the autonomous pharmacy and the impact that advanced automation, data intelligence, and expert services will have on patient care, (vi) risks to growth and acceptance of Omnicell’s products and services, including competitive conversions, and growth in the overall demand for medication management and supply chain solutions and medication adherence solutions generally, (vii) risks presented by the transition to selling more products and services on a subscription basis, (viii) potential increased competition, (ix) potential regulatory changes, (x) Omnicell’s ability to improve sales productivity to grow product bookings, (xi) Omnicell’s ability to acquire companies, businesses, or technologies and successfully integrate such acquisitions, (xii) the outcome of any legal proceedings to which Omnicell is a party, and (xiii) other risks and uncertainties described in the Risk Factors section of Omnicell’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, filed with the United States Securities and Exchange Commission (“SEC”). Forward-looking statements should be considered in light of these risks and uncertainties. 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 of this press release. Omnicell undertakes no obligation to update such statements, whether as a result of changed circumstances, new information, future events, or otherwise, except as required by law.

Use of Non-GAAP Financial Information

This press release contains financial measures that are not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Our management evaluates and makes operating decisions using various performance measures. In addition to Omnicell’s GAAP results, we also consider non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, non-GAAP diluted shares, non-GAAP EBITDA, non-GAAP EBITDA margin, and non-GAAP free cash flow. These non-GAAP results and metrics should not be considered as an alternative to gross profit, operating expenses, income (loss) from operations, net income (loss), net income (loss) per diluted share, diluted shares, net cash provided by operating activities, or any other performance measure derived in accordance with GAAP. We present these non-GAAP results and metrics because management considers them to be important supplemental measures of Omnicell’s performance and refers to such measures when analyzing Omnicell’s strategy and operations.

Our non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, non-GAAP EBITDA, and non-GAAP EBITDA margin 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 such period that directly drive operating income in such 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 believe we should invest in research and development, fund infrastructure growth, and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results: non-GAAP gross profit and non-GAAP gross margin exclude from their GAAP equivalents items a), b), and d) below; non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP income from operations exclude from their GAAP equivalents items a), b), c), d), g), and h) below; and non-GAAP net income and non-GAAP net income per diluted share exclude from their GAAP equivalents items a) through h) below. Non-GAAP EBITDA is defined as earnings before interest income and expense, taxes, depreciation, and amortization. Non-GAAP EBITDA and non-GAAP EBITDA margin exclude from their GAAP equivalents items a), c), d), e), f), g), and h) below:

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)

Acquisition-related expenses. We excluded from our non-GAAP results the expenses related to recent acquisitions. 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 acquisition activity. We believe that excluding these expenses provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance, and to the financial results of less acquisitive peer companies.

d)

Severance-related expenses. We excluded from our non-GAAP results the expenses 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 to the financial results of peer companies.

e)

Amortization of debt issuance costs. Debt issuance costs represent costs associated with the issuance of term loan and revolving credit facilities, as well as the issuance of convertible senior notes. The costs include underwriting fees, original issue discount, ticking fees, and legal fees. These non-cash expenses are not considered by management to reflect the core cash-generating performance of the business and therefore are excluded from our non-GAAP results.

f)

Amortization of discount on convertible senior notes. We excluded from our non-GAAP results the amortization of the imputed discount on our convertible senior notes. Under GAAP, certain convertible debt instruments that may be settled in cash upon conversion are required to be bifurcated into separate liability and equity components in a manner that reflects the issuer’s assumed non-convertible debt borrowing rate. For GAAP purposes, we are required to recognize the imputed interest expense on the difference between our assumed non-convertible debt borrowing rate and the coupon rate on our convertible senior notes. 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.

g)

Intellectual property (“IP”) and legal entities restructuring costs. We excluded from our non-GAAP results the expenses related to IP and legal entities’ restructuring events, such as legal and tax consulting costs. 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 to the financial results of peer companies.

h)

Certain litigation costs. We exclude non-recurring charges and benefits, including litigation expenses and settlements, related to litigation matters that are outside of the ordinary course of our business or that are not representative of those that we historically have incurred. 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 to 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 non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, non-GAAP EBITDA, and non-GAAP EBITDA margin 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 also use non-GAAP financial measures to supplement their GAAP results (although these companies may calculate non-GAAP financial measures differently than Omnicell does), 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 Standards 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.

Non-GAAP diluted shares is defined as our GAAP diluted shares, excluding the impact of dilutive convertible senior notes for which the Company is economically hedged through its anti-dilutive convertible note hedge transaction. We believe non-GAAP diluted shares is a useful non-GAAP metric because it provides insight into the offsetting economic effect of the hedge transaction against potential conversion of the convertible senior notes.

Non-GAAP free cash flow is defined as net cash provided by operating activities less cash used for software development for external use and purchases of property and equipment. We believe free cash flow is important to enable investors to better understand and evaluate our ongoing operating results and allows for greater transparency in the review and understanding of our overall financial, operational, and economic performance, because free cash flow takes into account certain capital expenditures and cash used for software development necessary to operate our business.

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.

c)

A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in Omnicell’s cash balance for the period.

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

Omnicell, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Product revenues

$

196,911

 

 

$

138,942

 

 

$

375,036

 

 

$

309,015

 

Services and other revenues

75,828

 

 

60,679

 

 

149,546

 

 

120,292

 

Total revenues

272,739

 

 

199,621

 

 

524,582

 

 

429,307

 

Cost of revenues:

 

 

 

 

 

 

 

Cost of product revenues

100,227

 

 

85,779

 

 

192,854

 

 

176,051

 

Cost of services and other revenues

36,214

 

 

30,617

 

 

73,147

 

 

60,409

 

Total cost of revenues

136,441

 

 

116,396

 

 

266,001

 

 

236,460

 

Gross profit

136,298

 

 

83,225

 

 

258,581

 

 

192,847

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

18,213

 

 

20,830

 

 

34,293

 

 

39,482

 

Selling, general, and administrative

89,169

 

 

69,386

 

 

175,762

 

 

148,205

 

Total operating expenses

107,382

 

 

90,216

 

 

210,055

 

 

187,687

 

Income (loss) from operations

28,916

 

 

(6,991

)

 

48,526

 

 

5,160

 

Interest and other income (expense), net

(5,959

)

 

174

 

 

(12,650

)

 

(648

)

Income (loss) before provision for income taxes

22,957

 

 

(6,817

)

 

35,876

 

 

4,512

 

Provision for (benefit from) income taxes

2,533

 

 

(2,518

)

 

1,325

 

 

(2,500

)

Net income (loss)

$

20,424

 

 

$

(4,299

)

 

$

34,551

 

 

$

7,012

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

0.47

 

 

$

(0.10

)

 

$

0.80

 

 

$

0.16

 

Diluted

$

0.43

 

 

$

(0.10

)

 

$

0.74

 

 

$

0.16

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

43,262

 

 

42,659

 

 

43,113

 

 

42,509

 

Diluted

47,106

 

 

42,659

 

 

46,765

 

 

43,616

 

Omnicell, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)

 

 

June 30,
2021

 

December 31,
2020

 

 

 

 

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

614,236

 

 

$

485,928

 

Accounts receivable and unbilled receivables, net

209,953

 

 

190,117

 

Inventories

101,185

 

 

96,298

 

Prepaid expenses

17,442

 

 

16,027

 

Other current assets

41,472

 

 

41,044

 

Total current assets

984,288

 

 

829,414

 

Property and equipment, net

62,323

 

 

59,073

 

Long-term investment in sales-type leases, net

19,615

 

 

22,156

 

Operating lease right-of-use assets

49,359

 

 

55,114

 

Goodwill

499,266

 

 

499,309

 

Intangible assets, net

155,775

 

 

168,211

 

Long-term deferred tax assets

15,559

 

 

15,019

 

Prepaid commissions

55,067

 

 

56,919

 

Other long-term assets

119,742

 

 

119,289

 

Total assets

$

1,960,994

 

 

$

1,824,504

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

56,195

 

 

$

40,309

 

Accrued compensation

48,487

 

 

55,750

 

Accrued liabilities

91,125

 

 

80,311

 

Deferred revenues, net

121,305

 

 

100,053

 

Total current liabilities

317,112

 

 

276,423

 

Long-term deferred revenues

11,875

 

 

5,673

 

Long-term deferred tax liabilities

40,626

 

 

39,633

 

Long-term operating lease liabilities

42,512

 

 

48,897

 

Other long-term liabilities

18,743

 

 

19,174

 

Convertible senior notes, net

477,554

 

 

467,201

 

Total liabilities

908,422

 

 

857,001

 

Total stockholders’ equity

1,052,572

 

 

967,503

 

Total liabilities and stockholders’ equity

$

1,960,994

 

 

$

1,824,504

 

Omnicell, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)

 

 

Six Months Ended June 30,

 

2021

 

2020

 

 

 

 

Operating Activities

 

 

 

Net income

$

34,551

 

 

$

7,012

 

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

 

 

 

Depreciation and amortization

34,965

 

 

28,779

 

Share-based compensation expense

24,811

 

 

22,010

 

Deferred income taxes

453

 

 

(9,409

)

Amortization of operating lease right-of-use assets

5,791

 

 

5,157

 

Amortization of debt issuance costs

1,707

 

 

482

 

Amortization of discount on convertible senior notes

9,195

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable and unbilled receivables

(19,662

)

 

28,236

 

Inventories

(6,569

)

 

(7,271

)

Prepaid expenses

(1,415

)

 

1,181

 

Other current assets

188

 

 

219

 

Investment in sales-type leases

2,423

 

 

(1,375

)

Prepaid commissions

1,852

 

 

4,040

 

Other long-term assets

1,559

 

 

(4,580

)

Accounts payable

15,684

 

 

(11,254

)

Accrued compensation

(7,263

)

 

(3,098

)

Accrued liabilities

10,142

 

 

(2,824

)

Deferred revenues

27,454

 

 

16,264

 

Operating lease liabilities

(6,247

)

 

(5,186

)

Other long-term liabilities

(431

)

 

4,352

 

Net cash provided by operating activities

129,188

 

 

72,735

 

Investing Activities

 

 

 

Software development for external use

(15,415

)

 

(20,002

)

Purchases of property and equipment

(11,067

)

 

(13,211

)

Net cash used in investing activities

(26,482

)

 

(33,213

)

Financing Activities

 

 

 

Repayment of revolving credit facility

 

 

(50,000

)

Proceeds from issuances under stock-based compensation plans

32,343

 

 

21,162

 

Employees’ taxes paid related to restricted stock units

(6,667

)

 

(3,470

)

Change in customer funds, net

(3,263

)

 

 

Net cash provided by (used in) financing activities

22,413

 

 

(32,308

)

Effect of exchange rate changes on cash and cash equivalents

(74

)

 

(841

)

Net increase in cash, cash equivalents, and restricted cash

125,045

 

 

6,373

 

Cash, cash equivalents, and restricted cash at beginning of period

489,920

 

 

127,210

 

Cash, cash equivalents, and restricted cash at end of period

$

614,965

 

 

$

133,583

 

Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheets:

Cash and cash equivalents

$

614,236

 

 

$

133,583

 

Restricted cash included in Other current assets

729

 

 

 

Cash, cash equivalents, and restricted cash at end of period

$

614,965

 

 

$

133,583

 

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,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

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

 

 

 

 

 

GAAP gross profit

$

136,298

 

 

$

83,225

 

 

$

258,581

 

 

$

192,847

 

GAAP gross margin

50.0%

 

41.7%

 

49.3%

 

44.9%

Share-based compensation expense

2,044

 

 

2,130

 

 

3,981

 

 

3,900

 

Amortization of acquired intangibles

2,667

 

 

2,033

 

 

5,483

 

 

4,068

 

Severance-related expenses

 

 

2,489

 

 

389

 

 

2,564

 

Non-GAAP gross profit

$

141,009

 

 

$

89,877

 

 

$

268,434

 

 

$

203,379

 

Non-GAAP gross margin

51.7%

 

45.0%

 

51.2%

 

47.4%

 

 

 

 

 

 

 

 

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

 

 

 

 

GAAP operating expenses

$

107,382

 

 

$

90,216

 

 

$

210,055

 

 

$

187,687

 

GAAP operating expenses % to total revenues

39.4%

 

45.2%

 

40.0%

 

43.7%

Share-based compensation expense

(10,995

)

 

(9,221

)

 

(20,830

)

 

(18,110

)

Amortization of acquired intangibles

(3,366

)

 

(2,325

)

 

(6,822

)

 

(4,720

)

Acquisition-related expenses

(1,986

)

 

 

 

(1,986

)

 

 

Severance-related and other expenses (a)

 

 

(4,162

)

 

(2,582

)

 

(8,188

)

Non-GAAP operating expenses

$

91,035

 

 

$

74,508

 

 

$

177,835

 

 

$

156,669

 

Non-GAAP operating expenses % to total revenues

33.4%

 

37.3%

 

33.9%

 

36.5%

 

 

 

 

 

 

 

 

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

GAAP income (loss) from operations

$

28,916

 

 

$

(6,991

)

 

$

48,526

 

 

$

5,160

 

GAAP operating income (loss) % to total revenues

10.6%

 

(3.5)%

 

9.3%

 

1.2%

Share-based compensation expense

13,039

 

 

11,351

 

 

24,811

 

 

22,010

 

Amortization of acquired intangibles

6,033

 

 

4,358

 

 

12,305

 

 

8,788

 

Acquisition-related expenses

1,986

 

 

 

 

1,986

 

 

 

Severance-related and other expenses (a)

 

 

6,651

 

 

2,971

 

 

10,752

 

Non-GAAP income from operations

$

49,974

 

 

$

15,369

 

 

$

90,599

 

 

$

46,710

 

Non-GAAP operating margin (non-GAAP operating income % to total revenues)

18.3%

 

7.7%

 

17.3%

 

10.9%

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,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

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

GAAP net income (loss)

$

20,424

 

 

$

(4,299

)

 

$

34,551

 

 

$

7,012

 

Share-based compensation expense

13,039

 

 

11,351

 

 

24,811

 

 

22,010

 

Amortization of acquired intangibles

6,033

 

 

4,358

 

 

12,305

 

 

8,788

 

Acquisition-related expenses

1,986

 

 

 

 

1,986

 

 

 

Severance-related and other expenses (a)

 

 

6,651

 

 

2,971

 

 

10,752

 

Amortization of debt issuance costs

858

 

 

241

 

 

1,707

 

 

482

 

Amortization of discount on convertible senior notes

4,624

 

 

 

 

9,195

 

 

 

Tax effect of the adjustments above (b)

(2,835

)

 

(2,363

)

 

(5,914

)

 

(4,205

)

Non-GAAP net income

$

44,129

 

 

$

15,939

 

 

$

81,612

 

 

$

44,839

 

 

 

 

 

 

 

 

 

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

Shares - diluted GAAP

47,106

 

 

42,659

 

 

46,765

 

 

43,616

 

Shares - diluted non-GAAP (c)

45,328

 

 

43,589

 

 

45,153

 

 

43,616

 

 

 

 

 

 

 

 

 

GAAP net income (loss) per share - diluted

$

0.43

 

 

$

(0.10

)

 

$

0.74

 

 

$

0.16

 

Share-based compensation expense

0.30

 

 

0.26

 

 

0.57

 

 

0.50

 

Amortization of acquired intangibles

0.14

 

 

0.10

 

 

0.28

 

 

0.20

 

Acquisition-related expenses

0.04

 

 

 

 

0.04

 

 

 

Severance-related and other expenses

 

 

0.15

 

 

0.07

 

 

0.26

 

Amortization of debt issuance costs

0.02

 

 

0.01

 

 

0.04

 

 

0.01

 

Amortization of discount on convertible senior notes

0.10

 

 

 

 

0.20

 

 

 

Tax effect of the adjustments above (b)

(0.06

)

 

(0.05

)

 

(0.13

)

 

(0.10

)

Non-GAAP net income per share - diluted

$

0.97

 

 

$

0.37

 

 

$

1.81

 

 

$

1.03

 

 

 

 

 

 

 

 

 

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

GAAP net income (loss)

$

20,424

 

 

$

(4,299

)

 

$

34,551

 

 

$

7,012

 

Share-based compensation expense

13,039

 

 

11,351

 

 

24,811

 

 

22,010

 

Interest (income) and expense, net

190

 

 

76

 

 

160

 

 

62

 

Depreciation and amortization expense

17,390

 

 

14,736

 

 

34,965

 

 

28,779

 

Acquisition-related expenses

1,986

 

 

 

 

1,986

 

 

 

Severance-related and other expenses

 

 

6,651

 

 

2,971

 

 

10,752

 

Amortization of debt issuance costs

858

 

 

241

 

 

1,707

 

 

482

 

Amortization of discount on convertible senior notes

4,624

 

 

 

 

9,195

 

 

 

Income tax expense (benefit)

2,533

 

 

(2,518

)

 

1,325

 

 

(2,500

)

Non-GAAP EBITDA

$

61,044

 

 

$

26,238

 

 

$

111,671

 

 

$

66,597

 

Non-GAAP EBITDA margin (non-GAAP EBITDA % to total revenues)

22.4%

 

13.1%

 

21.3%

 

15.5%

_________________________________________________

(a)

For the six months ended June 30, 2021, other expenses included approximately $1.0 million of certain litigation costs. For the three and six months ended June 30, 2020, other expenses included approximately $0.3 million and $0.8 million of IP and legal entities’ restructuring costs, respectively.

(b)

Tax effects calculated for all adjustments except share-based compensation expense, using an estimated annual effective tax rate of 21% for both fiscal years 2021 and 2020.

(c)

For the three and six months ended June 30, 2021, non-GAAP diluted shares exclude approximately 1.8 million and 1.6 million shares, respectively, related to the impact of dilutive convertible senior notes for which the Company is economically hedged through its anti-dilutive convertible note hedge transaction.

(d)

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

Omnicell, Inc.
Reconciliation of GAAP to Non-GAAP
(Unaudited, in thousands)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Reconciliation of GAAP net cash provided by operating activities to non-GAAP free cash flow:

GAAP net cash provided by operating activities

$

71,773

 

 

$

47,504

 

 

$

129,188

 

 

$

72,735

 

Software development for external use

(7,372

)

 

(9,400

)

 

(15,415

)

 

(20,002

)

Purchases of property and equipment

(5,978

)

 

(10,038

)

 

(11,067

)

 

(13,211

)

Non-GAAP free cash flow

$

58,423

 

 

$

28,066

 

 

$

102,706

 

 

$

39,522

 

 

Kathleen Nemeth
Vice President, Investor Relations
650-435-3318
Kathleen.Nemeth@Omnicell.com

Source: Omnicell, Inc.

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