Results exceed prior first quarter guidance
across all metrics
Total GAAP revenues of $246 million
Omnicell, Inc. (NASDAQ:OMCL) (“Omnicell,” “we,” “our,” “us,”
“management,” or the “Company”), a leader in transforming the
pharmacy care delivery model, today announced results for its first
quarter ended March 31, 2024.
Randall Lipps, chairman, president, chief executive officer, and
founder of Omnicell, said, “We are pleased with the first quarter
results that we announced today, which exceeded our previously
issued guidance across all key metrics, including revenue, non-GAAP
EBITDA and non-GAAP earnings per share.”
“As we have navigated through a challenging customer
environment, we have continued to place a priority on innovation.
Reflecting this, we recently hosted our customer event, Illuminate
2024, during which we announced new and exciting outcomes-based
solutions for our XT automated dispensing systems platform. Key
among these is XTExtend, among other recently introduced
enhancements for our XT automated dispensing systems that are part
of our comprehensive XTAmplify offering, which appears to be
resonating very well with our customers,” Mr. Lipps continued.
“Finally, last quarter, we announced that we initiated a
holistic review of our business in an effort to identify areas for
financial or operational improvement intended to enhance
stockholder value. That work is underway, and we are optimistic
that when completed, the results of this review will positively
impact our performance. We remain confident in Omnicell’s long-term
opportunities as we work to transform the pharmacy care delivery
model across the continuum of care,” Mr. Lipps concluded.
Financial Results
Total GAAP revenues for the first quarter of 2024 were $246
million, down $44 million, or 15%, from the first quarter of 2023.
The year-over-year decrease in total GAAP revenues reflects the
impact of a continued challenging environment for some of our
health system customers and the timing of our XT Series systems
lifecycle, as we are largely through the replacement cycle and
seeing demand moderate.
Total GAAP net loss for the first quarter of 2024 was $16
million, or $0.34 per diluted share. This compares to GAAP net loss
of $15 million, or $0.33 per diluted share, for the first quarter
of 2023.
Total non-GAAP net income for the first quarter of 2024 was $1
million, or $0.03 per diluted share. This compares to non-GAAP net
income of $17 million, or $0.39 per diluted share, for the first
quarter of 2023.
Total non-GAAP EBITDA for the first quarter of 2024 was $11
million. This compares to non-GAAP EBITDA of $27 million for the
first quarter of 2023.
Balance Sheet
As of March 31, 2024, Omnicell’s balance sheet reflected cash
and cash equivalents of $512 million, total debt (net of
unamortized debt issuance costs) of $570 million, and total assets
of $2.28 billion. Cash flows provided by operating activities in
the first quarter of 2024 totaled $50 million. This compares to
cash flows provided by operating activities totaling $13 million in
the first quarter of 2023.
As of March 31, 2024, the Company had $350 million of
availability under its revolving credit facility with no
outstanding balance.
Corporate Highlights
- Introduced XT Amplify, innovative solutions designed to enhance
pharmacy and nursing efficiency, reduce medication errors and
waste, and ultimately maximize the value of the XT automated
dispensing system
- Hosted Illuminate 2024 educational and networking event for
customers and prospective customers to learn more about Omnicell’s
outcomes-centric innovation, including the recently launched XT
Amplify program
- Published our 2023 Environmental, Social, and Governance Report
(ESG), highlighting the Company’s commitment to leveraging ESG
opportunities to enhance our performance and maximize positive
business impact
- Further progressed holistic review of business in an effort to
identify areas for operational and financial improvement that have
the potential to create sustained stockholder value
- Launched our refreshed corporate website, www.omnicell.com,
that reflects our new brand promise and focus on Defining.
Delivering. Outcomes.
2024 Guidance
The Company’s full year 2024 guidance is unchanged. For the full
year 2024, the Company expects bookings to be between $750 million
and $875 million. The Company expects full year 2024 total revenues
to be between $1.045 billion and $1.120 billion. The Company
expects full year 2024 product revenues to be between $605 million
and $650 million, and full year 2024 service revenues to be between
$440 million and $470 million. The Company expects full year 2024
technical services revenues to be between $220 million and $235
million, and full year 2024 Advanced Services revenues to be
between $220 million and $235 million. The Company expects full
year 2024 non-GAAP EBITDA to be between $90 million and $120
million. The Company expects full year 2024 non-GAAP earnings per
share to be between $0.90 and $1.40 per share.
For the second quarter of 2024, the Company expects total
revenues to be between $250 million and $260 million. The Company
expects second quarter 2024 product revenues to be between $140
million and $145 million, and second quarter 2024 service revenues
to be between $110 million and $115 million. The Company expects
second quarter 2024 non-GAAP EBITDA to be between $14 million and
$20 million. The Company expects second quarter 2024 non-GAAP
earnings per share to be between $0.10 and $0.20 per share.
The table below summarizes Omnicell’s second quarter and full
year 2024 guidance outlined above.
Q2 2024
2024
Bookings
Not provided
$750 million - $875 million
Total Revenues
$250 million - $260 million
$1.045 billion - $1.120
billion
Product Revenues
$140 million - $145 million
$605 million - $650 million
Service Revenues
$110 million - $115 million
$440 million - $470 million
Technical Services Revenues
Not provided
$220 million - $235 million
Advanced Services Revenues
Not provided
$220 million - $235 million
Non-GAAP EBITDA
$14 million - $20 million
$90 million - $120 million
Non-GAAP Earnings Per Share
$0.10 - $0.20
$0.90 - $1.40
The Company does not provide guidance for GAAP net income or
GAAP earnings per share, nor a reconciliation of these
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, May 2,
2024 at 8:30 a.m. ET to discuss first quarter 2024 financial
results. The conference call can be monitored by dialing (888)
550-5424 in the U.S. or (646) 960-0819 in international locations.
The Conference ID is 9581556. 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 pharmacy
care through outcomes-centric innovation designed to optimize
clinical and business outcomes across all settings of care. Through
a comprehensive portfolio of robotics, smart devices, intelligent
software, and expert services, Omnicell solutions are helping
healthcare facilities worldwide to reduce costs, improve labor
efficiency, establish new revenue streams, enhance supply chain
control, support compliance, and move closer to the industry vision
of the Autonomous Pharmacy. To learn more, visit omnicell.com.
From time to time, Omnicell may use the Company’s investor
relations website and other online social media channels, including
its 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 (“Reg FD”).
OMNICELL and the Omnicell logo are registered trademarks of
Omnicell, Inc. or one of its subsidiaries.
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,” “could,” “plan,” “potential,”
“anticipate,” “believe,” “forecast,” “guidance,” “outlook,”
“goals,” “target,” “estimate,” “seek,” “predict,” “project,” 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, including product, service, technical services
and Advanced Services revenues, non-GAAP EBITDA, and non-GAAP
earnings per share; expectations regarding our products and
services and developing new or enhancing existing products and
solutions and the related objectives and expected benefits (and any
implied financial impact); results of our holistic review; our
ability to deliver long-term value; and statements about Omnicell’s
strategy, plans, objectives, promise and purpose, goals, including
innovation, environment, social and governance goals and
strategies, opportunities, market or Company outlook, and planned
investments. 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) unfavorable general economic and market
conditions, including the impact and duration of inflationary
pressures, (ii) Omnicell’s ability to take advantage of growth
opportunities and develop and commercialize new solutions and
enhance existing solutions, (iii) reduction in demand in the
capital equipment market or reduction in the demand for or adoption
of our solutions, systems, or services, (iv) delays in
installations of our medication management solutions or our more
complex medication packaging systems, (v) risks related to
Omnicell’s investments in new business strategies or initiatives,
including its transition to selling more products and services on a
subscription basis, and its ability to acquire companies,
businesses, or technologies and successfully integrate such
acquisitions, (vi) ability to realize the benefits of our expense
containment initiatives, (vii) restructuring may take longer than
expected, costs may be greater than anticipated or that the savings
may be less than anticipated, (viii) the Company’s efforts may have
an adverse impact on the Company’s internal programs, and
Omnicell’s ability to recruit and retain skilled and motivated
personnel and may be distracting to management, (ix) risks related
to failing to maintain expected service levels when providing our
Advanced Services or retaining our Advanced Services customers, (x)
Omnicell’s ability to meet the demands of, or maintain
relationships with, its institutional, retail, and specialty
pharmacy customers, (xi) risks related to climate change, legal,
regulatory or market measures to address climate change and related
emphasis on ESG matters by various stakeholders, (xii) changes to
the 340B Program, (xiii) Omnicell’s substantial debt, which could
impair its financial flexibility and access to capital, (xiv)
covenants in our credit agreement could restrict our business and
operations, (xv) continued and increased competition from current
and future competitors in the medication management automation
solutions market and the medication adherence solutions market,
(xvi) risks presented by government regulations, legislative
changes, fraud and anti-kickback statues, products liability
claims, the outcome of legal proceedings, and other legal
obligations related to healthcare, privacy, data protection, and
information security, including any potential governmental
investigations and enforcement actions, litigation, fines and
penalties, exposure to indemnification obligations or other
liabilities, and adverse publicity as a result of the previously
disclosed ransomware incident, (xvii) any disruption in Omnicell’s
information technology systems and breaches of data security or
cyber-attacks on its systems or solutions, including the previously
disclosed ransomware incident and any potential adverse legal,
reputational, and financial effects that may result from it and/or
additional cybersecurity incidents, as well as the effectiveness of
business continuity plans during any future cybersecurity
incidents, (xviii) risks associated with operating in foreign
countries, (xix) Omnicell’s ability to recruit and retain skilled
and motivated personnel, (xx) Omnicell’s ability to protect its
intellectual property, (xxi) risks related to the availability and
sources of raw materials and components or price fluctuations,
shortages, or interruptions of supply, (xxii) Omnicell’s dependence
on a limited number of suppliers for certain components, equipment,
and raw materials, as well as technologies provided by third-party
vendors, (xxiii) fluctuations in quarterly and annual operating
results may make our future operating results difficult to predict,
(xxiv) failing to meet (or significantly exceeding) our publicly
announced financial guidance, and (xxv) other risks and
uncertainties further described in the “Risk Factors” section of
Omnicell’s most recent Annual Report on Form 10-K, as well as in
Omnicell’s other reports filed with or furnished to the United
States Securities and Exchange Commission (“SEC”), available at
www.sec.gov. Forward-looking statements should be considered in
light of these risks and uncertainties. Investors and others 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
assumes no obligation to update any such statements publicly, or to
update the reasons actual results could differ materially from
those expressed or implied in any forward-looking 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”). 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 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 revenues, gross
profit, operating expenses, income from operations, net income, net
income 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 revenues, 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), e),
and g) below; non-GAAP operating expenses excludes from its GAAP
equivalents items a), b), c), d), e), and g) below; non-GAAP income
from operations and non-GAAP operating margin exclude from their
GAAP equivalents items a), b), c), d), e), and g) below; and
non-GAAP net income and non-GAAP net income per diluted share
exclude from their GAAP equivalents items a) through g) below.
Non-GAAP EBITDA is defined as earnings before interest income and
expense, taxes, depreciation, amortization, and share-based
compensation, as well as excluding certain other non-GAAP
adjustments. Non-GAAP EBITDA and non-GAAP EBITDA margin exclude
from their GAAP equivalents items a), c), d), e), f), and g)
below:
a)
Share-based compensation expense. We
excluded from our non-GAAP results the expense related to
equity-based compensation plans as it represents 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, including amortization of representations and
warranties insurance. 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)
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities. We
excluded from our non-GAAP results the impairment and abandonment
of certain operating lease right-of-use assets, as well as property
and equipment, incurred in connection with restructuring activities
for optimization of certain leased facilities. 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.
e)
Severance-related expenses. We excluded
from our non-GAAP results the expenses related to restructuring
events, partially offset by reversals of previously recognized
severance expenses in subsequent periods. 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.
f)
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.
g)
RDS restructuring. We excluded from our
non-GAAP results the nonrecurring restructuring charges related to
the wind down of the Company’s Medimat Robotic Dispensing System
(“RDS”) product line. For the quarter ended March 31, 2024, those
charges consisted primarily of severance and other related
expenses. These expenses are unrelated to our ongoing operations
and 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 revenues, 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 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 equity incentive plans 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 as well as in
Omnicell’s other reports filed with or furnished to the SEC.
Omnicell, Inc.
Condensed Consolidated
Statements of Operations
(Unaudited, in thousands,
except per share data)
Three Months Ended March
31,
2024
2023
Revenues:
Product revenues
$
133,295
$
185,715
Services and other revenues
112,856
104,914
Total revenues
246,151
290,629
Cost of revenues:
Cost of product revenues
92,441
109,527
Cost of services and other revenues
61,087
56,073
Total cost of revenues
153,528
165,600
Gross profit
92,623
125,029
Operating expenses:
Research and development
22,056
22,878
Selling, general, and administrative
92,414
125,114
Total operating expenses
114,470
147,992
Loss from operations
(21,847
)
(22,963
)
Interest and other income (expense),
net
4,016
1,781
Loss before income taxes
(17,831
)
(21,182
)
Benefit from income taxes
(2,155
)
(6,182
)
Net loss
$
(15,676
)
$
(15,000
)
Net loss per share:
Basic
$
(0.34
)
$
(0.33
)
Diluted
$
(0.34
)
$
(0.33
)
Weighted-average shares
outstanding:
Basic
45,732
44,887
Diluted
45,732
44,887
Omnicell, Inc.
Condensed Consolidated Balance
Sheets
(Unaudited, in
thousands)
March 31, 2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
512,364
$
467,972
Accounts receivable and unbilled
receivables, net
248,512
252,025
Inventories
103,466
110,099
Prepaid expenses
26,585
25,966
Other current assets
98,991
71,509
Total current assets
989,918
927,571
Property and equipment, net
109,034
108,601
Long-term investment in sales-type leases,
net
43,909
42,954
Operating lease right-of-use assets
26,531
24,988
Goodwill
735,357
735,810
Intangible assets, net
205,115
211,173
Long-term deferred tax assets
37,383
32,901
Prepaid commissions
50,191
52,414
Other long-term assets
86,317
90,466
Total assets
$
2,283,755
$
2,226,878
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
43,145
$
45,028
Accrued compensation
41,446
51,754
Accrued liabilities
167,187
149,276
Deferred revenues
164,586
121,734
Total current liabilities
416,364
367,792
Long-term deferred revenues
65,195
58,622
Long-term deferred tax liabilities
1,493
1,620
Long-term operating lease liabilities
34,568
33,910
Other long-term liabilities
7,099
6,318
Convertible senior notes, net
570,439
569,662
Total liabilities
1,095,158
1,037,924
Total stockholders’ equity
1,188,597
1,188,954
Total liabilities and stockholders’
equity
$
2,283,755
$
2,226,878
Omnicell, Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited, in
thousands)
Three Months Ended March
31,
2024
2023
Operating Activities
Net loss
$
(15,676
)
$
(15,000
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
21,253
21,974
Loss on disposal of assets
39
802
Share-based compensation expense
8,641
14,042
Deferred income taxes
(4,609
)
(7,770
)
Amortization of operating lease
right-of-use assets
1,930
2,248
Impairment and abandonment of operating
lease right-of-use assets related to facilities
—
7,815
Amortization of debt issuance costs
971
1,045
Changes in operating assets and
liabilities:
Accounts receivable and unbilled
receivables
3,393
(22,156
)
Inventories
6,302
6,760
Prepaid expenses
(619
)
(873
)
Other current assets
928
34
Investment in sales-type leases
(1,125
)
613
Prepaid commissions
2,223
2,574
Other long-term assets
836
628
Accounts payable
(1,443
)
20
Accrued compensation
(10,278
)
(25,171
)
Accrued liabilities
5,063
(689
)
Deferred revenues
34,121
29,135
Operating lease liabilities
(2,778
)
(2,678
)
Other long-term liabilities
781
(583
)
Net cash provided by operating
activities
49,953
12,770
Investing Activities
External-use software development
costs
(3,383
)
(3,499
)
Purchases of property and equipment
(8,957
)
(10,141
)
Net cash used in investing activities
(12,340
)
(13,640
)
Financing Activities
Proceeds from issuances under stock-based
compensation plans
8,042
12,114
Employees’ taxes paid related to
restricted stock units
(705
)
(1,369
)
Change in customer funds, net
4,589
(6,883
)
Net cash provided by financing
activities
11,926
3,862
Effect of exchange rate changes on cash
and cash equivalents
(556
)
176
Net increase in cash, cash equivalents,
and restricted cash
48,983
3,168
Cash, cash equivalents, and restricted
cash at beginning of period
500,979
352,835
Cash, cash equivalents, and restricted
cash at end of period
$
549,962
$
356,003
Reconciliation of cash, cash
equivalents, and restricted cash to the Condensed Consolidated
Balance Sheets:
Cash and cash equivalents
$
512,364
$
340,413
Restricted cash included in other current
assets
37,598
15,590
Cash, cash equivalents, and restricted
cash at end of period
$
549,962
$
356,003
Omnicell, Inc.
Reconciliation of GAAP to
Non-GAAP
(Unaudited, in thousands,
except per share data and percentage)
Three Months Ended March
31,
2024
2023
Reconciliation of GAAP revenues to
non-GAAP revenues:
GAAP revenues
$
246,151
$
290,629
Non-GAAP revenues
$
246,151
$
290,629
Reconciliation of GAAP gross profit to
non-GAAP gross profit:
GAAP gross profit
$
92,623
$
125,029
GAAP gross margin
37.6%
43.0%
Share-based compensation expense
1,555
2,008
Amortization of acquired intangibles
1,120
3,025
RDS restructuring
2,696
—
Severance-related expenses
—
144
Non-GAAP gross profit
$
97,994
$
130,206
Non-GAAP gross margin
39.8%
44.8%
Reconciliation of GAAP operating
expenses to non-GAAP operating expenses:
GAAP operating expenses
$
114,470
$
147,992
GAAP operating expenses % to total
revenues
46.5%
50.9%
Share-based compensation expense
(7,086
)
(12,034
)
Amortization of acquired intangibles
(4,840
)
(5,217
)
Acquisition-related expenses
(246
)
(246
)
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities
—
(8,420
)
RDS restructuring
(576
)
—
Severance-related expenses
—
(5,170
)
Non-GAAP operating expenses
$
101,722
$
116,905
Non-GAAP operating expenses as a % of
total non-GAAP revenues
41.3%
40.2%
Reconciliation of GAAP loss from
operations to non-GAAP income (loss) from operations:
GAAP loss from operations
$
(21,847
)
$
(22,963
)
GAAP operating loss % to total
revenues
(8.9)%
(7.9)%
Share-based compensation expense
8,641
14,042
Amortization of acquired intangibles
5,960
8,242
Acquisition-related expenses
246
246
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities
—
8,420
RDS restructuring
3,272
—
Severance-related expenses
—
5,314
Non-GAAP income (loss) from operations
$
(3,728
)
$
13,301
Non-GAAP operating margin (non-GAAP
operating income (loss) as a % of total non-GAAP revenues)
(1.5)%
4.6%
Omnicell, Inc.
Reconciliation of GAAP to
Non-GAAP
(Unaudited, in thousands,
except per share data and percentage)
Three Months Ended March
31,
2024
2023
Reconciliation of GAAP net loss to
non-GAAP net income:
GAAP net loss
$
(15,676
)
$
(15,000
)
Share-based compensation expense
8,641
14,042
Amortization of acquired intangibles
5,960
8,242
Acquisition-related expenses
246
246
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities
—
8,420
RDS restructuring
3,272
—
Severance-related expenses
—
5,314
Amortization of debt issuance costs
971
1,045
Tax effect of the adjustments above
(a)
(2,194
)
(4,886
)
Non-GAAP net income
$
1,220
$
17,423
Reconciliation of GAAP net loss per
share - diluted to non-GAAP net income per share - diluted:
Shares - diluted GAAP
45,732
44,887
Shares - diluted non-GAAP
45,768
45,120
GAAP net loss per share - diluted
$
(0.34
)
$
(0.33
)
Share-based compensation expense
0.19
0.31
Amortization of acquired intangibles
0.13
0.18
Acquisition-related expenses
0.01
0.01
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities
—
0.19
RDS restructuring
0.07
—
Severance-related expenses
—
0.12
Amortization of debt issuance costs
0.02
0.02
Tax effect of the adjustments above
(a)
(0.05
)
(0.11
)
Non-GAAP net income per share -
diluted
$
0.03
$
0.39
Reconciliation of GAAP net loss to
non-GAAP EBITDA (b):
GAAP net loss
$
(15,676
)
$
(15,000
)
Share-based compensation expense
8,641
14,042
Interest (income) and expense, net
(5,715
)
(3,074
)
Depreciation and amortization expense
21,253
21,974
Acquisition-related expenses
246
246
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities
—
8,420
RDS restructuring
3,272
—
Severance-related expenses
—
5,314
Amortization of debt issuance costs
971
1,045
Benefit from income taxes
(2,155
)
(6,182
)
Non-GAAP EBITDA
$
10,837
$
26,785
Non-GAAP EBITDA margin (non-GAAP EBITDA as
a % of total non-GAAP revenues)
4.4%
9.2%
_________________________________________________
(a)
Tax effects calculated for all adjustments
except share-based compensation expense, using an estimated annual
effective tax rate of 21% for both fiscal years 2024 and 2023.
(b)
Defined as earnings before interest income
and expense, taxes, depreciation, amortization, and share-based
compensation, as well as excluding certain other non-GAAP
adjustments.
Omnicell, Inc.
Reconciliation of GAAP to
Non-GAAP
(Unaudited, in
thousands)
Three Months Ended March
31,
2024
2023
Reconciliation of GAAP net cash
provided by operating activities to non-GAAP free cash
flow:
GAAP net cash provided by operating
activities
$
49,953
$
12,770
External-use software development
costs
(3,383
)
(3,499
)
Purchases of property and equipment
(8,957
)
(10,141
)
Non-GAAP free cash flow
$
37,613
$
(870
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502646988/en/
Kathleen Nemeth Senior Vice President, Investor Relations
650-435-3318 Kathleen.Nemeth@Omnicell.com
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