Total GAAP revenues of $299 million
GAAP net income per diluted share of $0.12
Non-GAAP net income per diluted share of
$0.62
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 third
quarter ended September 30, 2023.
Randall Lipps, chairman, president, chief executive officer, and
founder of Omnicell, said, “The team delivered strong cost
management and operational discipline this quarter. However, I am
disappointed with the weakness in demand that we are seeing and
accordingly, we have updated our near-term outlook. We are taking
actions to manage the business that are intended to reduce our cost
structure and to better align with our anticipated top line
performance heading into 2024, while also positioning the Company
to continue investing in our innovation agenda. We have taken steps
to strengthen our leadership team and we have already begun to
reduce discretionary expenses. We remain encouraged that hospitals,
health systems, and retail pharmacies continue to rely on Omnicell
to help them improve patient and health system outcomes —
especially during this dynamic time in the industry. The need for
the healthcare industry to automate, optimize, and modernize is
more important than ever and we believe Omnicell is well positioned
to deliver value to all of our stakeholders over the
long-term.”
Financial Results
Total GAAP revenues for the third quarter of 2023 were $299
million, down $49 million, or 14%, from the third quarter of 2022.
The year-over-year decrease in total GAAP revenues reflects lower
point-of-care revenues primarily as a result of ongoing health
systems capital budget and labor constraints.
Total GAAP net income for the third quarter of 2023 was $6
million, or $0.12 per diluted share. This compares to GAAP net
income of $17 million, or $0.37 per diluted share, for the third
quarter of 2022.
Total non-GAAP net income for the third quarter of 2023 was $28
million, or $0.62 per diluted share. This compares to non-GAAP net
income of $45 million, or $1.00 per diluted share, for the third
quarter of 2022.
Total non-GAAP EBITDA for the third quarter of 2023 was $41
million. This compares to non-GAAP EBITDA of $61 million for the
third quarter of 2022.
Balance Sheet
As of September 30, 2023, Omnicell’s balance sheet reflected
cash and cash equivalents of $447 million, total debt (net of
unamortized debt issuance costs) of $569 million, and total assets
of $2.22 billion. Cash flows provided by operating activities in
the third quarter of 2023 totaled $57 million. This compares to
cash flows provided by operating activities totaling $21 million in
the third quarter of 2022.
As of September 30, 2023, the Company had $500 million of
availability under its revolving credit facility with no
outstanding balance. Subsequent to the quarter end, on October 10,
2023, the Company refinanced its revolving credit facility to
provide for $350 million of funds available, which availability is
subject to reduction in order to maintain compliance with certain
financial covenants.
Corporate Highlights
- Health systems continue to choose Omnicell as a long-term
partner for their pharmacy technology strategy, with several
customers extending their sole-source agreements and one
competitive conversion achieved during the quarter.
- Omnicell’s Central Pharmacy Dispensing Service appears to be
gaining momentum in the market as many health systems seem to be
recognizing the benefits to patient safety and workflow efficiency
of automating central pharmacy operations through a comprehensive
solution encompassing advanced robotics, dispensing optimization
tools, and expert services.
- As health systems expand pharmacy care beyond the four walls of
the hospital, Omnicell’s Specialty Pharmacy Services offering
should provide a revenue-generating opportunity, while helping to
support important patient care initiatives. Health systems are
choosing Omnicell’s management services expertise to help drive
financial and clinical outcomes for this rapidly growing area of
healthcare.
Restructuring
Omnicell plans to take action as it relates to cost containment
across the business, including a headcount reduction across our
business functions, and is expecting approximately $12 million -
$18 million of non-recurring restructuring and related charges
related to the cost containment plan. The Company expects to incur
a majority of the charges in fourth quarter of 2023 and
substantially complete the plan by end of second quarter of 2024,
subject to local law and consultation requirement. Annualized cost
savings of $45 million - $55 million, approximately 75 percent of
which are expected to be in Operating Expenses, are expected. A
majority of the benefit from the cost actions is anticipated to be
realized beginning in the first quarter of 2024 with a smaller
portion of the savings expected as the year progresses. The cost
actions should be partially offset by year over year increases in
compensation and vendor price increases.
Updated 2023 Guidance
For the full year 2023, the Company expects bookings to be
between $850 million and $950 million. The Company expects full
year 2023 total revenues to be between $1.135 billion and $1.155
billion. The Company expects full year 2023 product revenues to be
between $705 million and $715 million, and full year 2023 service
revenues to be between $430 million and $440 million. The Company
expects full year 2023 technical services revenues to be between
$222 million and $227 million, and full year 2023 Advanced Services
revenues to be between $208 million and $213 million. The Company
expects full year 2023 non-GAAP EBITDA to be between $123 million
and $133 million. The Company expects full year 2023 non-GAAP
earnings per share to be between $1.65 and $1.80 per share.
For the fourth quarter of 2023, the Company expects total
revenues to be between $247 million and $267 million. The Company
expects fourth quarter 2023 product revenues to be between $142
million and $152 million, and fourth quarter 2023 service revenues
to be between $105 million and $115 million. The Company expects
fourth quarter 2023 non-GAAP EBITDA to be between $9 million and
$19 million. The Company expects fourth quarter 2023 non-GAAP
earnings per share to be between $0.07 and $0.22 per share.
The Company’s fourth quarter and full year 2023 guidance has
been adjusted to include the anticipated effects and expected
impact of current macroeconomic headwinds.
The table below summarizes Omnicell’s fourth quarter and updated
full year 2023 guidance outlined above.
Q4’23
2023
Bookings
Not guided
$850 million - $950 million
Total Revenues
$247 million - $267 million
$1.135 billion - $1.155
billion
Product Revenues
$142 million - $152 million
$705 million - $715 million
Service Revenues
$105 million - $115 million
$430 million - $440 million
Technical Services Revenues
Not guided
$222 million - $227 million
Advanced Services Revenues
Not guided
$208 million - $213 million
Non-GAAP EBITDA
$9 million - $19 million
$123 million - $133 million
Non-GAAP Earnings Per Share
$0.07 - $0.22
$1.65 - $1.80
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, November
2, 2023 at 8:30 a.m. ET to discuss third quarter 2023 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 the
pharmacy care delivery model in an effort to optimize financial and
clinical outcomes across all settings of care. Through a
comprehensive portfolio of automation and advanced services,
Omnicell is uniquely positioned to address evolving healthcare
challenges, connect settings of care, and streamline the medication
management process. Healthcare facilities worldwide partner with
Omnicell to help increase operational efficiency, reduce medication
errors, improve patient safety, and enhance patient engagement and
adherence, helping to reduce costly hospital readmissions. 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 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 (“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 the expected benefits; our ability to deliver
long-term value; statements related to the expected timing of
incurring costs and completion of the cost containment plan, and
the expected costs, related charges, and savings under the cost
containment plan; and statements about Omnicell’s strategy, plans,
objectives, goals, vision, 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) ability to realize the
benefits of our expense containment initiatives, (iii)
restructuring may take longer than expected, costs may be greater
than anticipated or that the savings may be less than anticipated;
(iv) 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, (iv) Omnicell’s ability to take advantage of growth
opportunities and develop and commercialize new solutions and
enhance existing solutions, (v) reduction in demand in the capital
equipment market or reduction in the demand for or adoption of our
solutions, systems, or services, (vi) delays in installations of
our medication management solutions or our more complex medication
packaging systems, (vii) 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, (viii) risks related to
failing to maintain expected service levels when providing our
Advanced Services or retaining our Advanced Services customers,
(ix) Omnicell’s ability to meet the demands of, or maintain
relationships with, its institutional, retail, and specialty
pharmacy customers, (x) risks related to climate change, legal,
regulatory or market measures to address climate change and related
emphasis on ESG matters by various stakeholders, (xi) changes to
the 340B Program, (xii) Omnicell’s substantial debt, which could
impair its financial flexibility and access to capital, (xiii)
covenants in our credit agreement could restrict our business and
operations, (xiv) continued and increased competition from current
and future competitors in the medication management automation
solutions market and the medication adherence solutions market,
(xv) 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, (xvi) 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, (xvii) risks associated with operating in foreign
countries, (xviii) Omnicell’s ability to recruit and retain skilled
and motivated personnel, (xix) Omnicell’s ability to protect its
intellectual property, (xx) risks related to the availability and
sources of raw materials and components or price fluctuations,
shortages, or interruptions of supply, (xxi) 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, (xxii) fluctuations in quarterly and annual operating
results may make our future operating results difficult to predict,
(xxiii) failing to meet (or significantly exceeding) our publicly
announced financial guidance, and (xxiv) 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 revenues excludes from its
GAAP equivalent item a) below; non-GAAP gross profit and non-GAAP
gross margin exclude from their GAAP equivalents items a), b), c),
f), and h) below; non-GAAP operating expenses excludes from its
GAAP equivalents items b), c), d), e), f), g), h), and j) below;
non-GAAP income from operations and non-GAAP operating margin
exclude from their GAAP equivalents items a), b), c), d), e), f),
g), h) and j) below; and non-GAAP net income and non-GAAP net
income per diluted share exclude from their GAAP equivalents items
a) through j) 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), b), d), e), f), g),
h), i), and j) below:
(a)
Acquisition accounting impact related to
deferred revenues. In connection with the acquisition of FDS
Amplicare on September 9, 2021, we recorded a fair value adjustment
to acquired deferred revenues as part of the purchase accounting in
accordance with GAAP. The adjustment represents revenues that would
have been recognized in the normal course of business by FDS
Amplicare if the acquisition had not occurred, but was not
recognized due to GAAP purchase accounting requirements. The
non-GAAP adjustment to our revenues is intended to include the full
amounts of such revenues. We believe the adjustment to these
revenues is useful as a measure of the ongoing performance of our
business.
(b)
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.
(c)
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.
(d)
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.
(e)
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.
(f)
Ransomware-related expenses, net of
insurance recoveries. We excluded from our non-GAAP results the net
expenses related to the previously disclosed ransomware incident
identified by the Company on May 4, 2022. Expenses include costs to
investigate and remediate the ransomware incident, as well as legal
and other professional services, and are presented net of expected
insurance recoveries. These expenses are unrelated to our ongoing
operations and would not have otherwise been incurred by us in the
normal 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.
(g)
Executives transition costs. We excluded
from our non-GAAP results the executives transition costs
associated with the departure of certain executive officers,
primarily consisting of severance expenses. 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.
(h)
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.
(i)
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.
(j)
Certain litigation costs. We excluded
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 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)
Thes 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)
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)
Thes 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.
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 September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenues:
Product revenues
$
188,755
$
246,565
$
562,906
$
706,246
Services and other revenues
109,908
101,494
325,359
292,027
Total revenues
298,663
348,059
888,265
998,273
Cost of revenues:
Cost of product revenues
106,311
134,023
323,800
374,175
Cost of services and other revenues
60,388
54,941
173,029
156,864
Total cost of revenues
166,699
188,964
496,829
531,039
Gross profit
131,964
159,095
391,436
467,234
Operating expenses:
Research and development
24,281
25,171
70,296
76,556
Selling, general, and administrative
103,971
115,459
332,643
354,644
Total operating expenses
128,252
140,630
402,939
431,200
Income (loss) from operations
3,712
18,465
(11,503
)
36,034
Interest and other income (expense),
net
3,670
(1,148
)
9,912
(2,973
)
Income (loss) before income taxes
7,382
17,317
(1,591
)
33,061
Provision for (benefit from) income
taxes
1,829
543
4,405
(995
)
Net income (loss)
$
5,553
$
16,774
$
(5,996
)
$
34,056
Net income (loss) per share:
Basic
$
0.12
$
0.38
$
(0.13
)
$
0.77
Diluted
$
0.12
$
0.37
$
(0.13
)
$
0.73
Weighted-average shares
outstanding:
Basic
45,333
44,441
45,117
44,304
Diluted
45,595
45,819
45,117
46,759
Omnicell, Inc.
Condensed Consolidated Balance
Sheets
(Unaudited, in
thousands)
September 30,
2023
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents
$
446,840
$
330,362
Accounts receivable and unbilled
receivables, net
272,584
299,469
Inventories
116,144
147,549
Prepaid expenses
27,947
27,070
Other current assets
50,236
77,362
Total current assets
913,751
881,812
Property and equipment, net
106,880
93,961
Long-term investment in sales-type leases,
net
41,631
32,924
Operating lease right-of-use assets
25,444
38,052
Goodwill
734,328
734,274
Intangible assets, net
218,861
242,906
Long-term deferred tax assets
35,964
22,329
Prepaid commissions
53,950
59,483
Other long-term assets
90,766
105,017
Total assets
$
2,221,575
$
2,210,758
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
49,920
$
63,389
Accrued compensation
44,065
73,455
Accrued liabilities
150,385
172,655
Deferred revenues, net
124,991
118,947
Total current liabilities
369,361
428,446
Long-term deferred revenues
55,053
37,385
Long-term deferred tax liabilities
1,565
2,095
Long-term operating lease liabilities
32,845
39,405
Other long-term liabilities
6,428
6,719
Convertible senior notes, net
568,887
566,571
Total liabilities
1,034,139
1,080,621
Total stockholders’ equity
1,187,436
1,130,137
Total liabilities and stockholders’
equity
$
2,221,575
$
2,210,758
Omnicell, Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited, in
thousands)
Nine Months Ended September
30,
2023
2022
Operating Activities
Net income (loss)
$
(5,996
)
$
34,056
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
65,596
64,843
Loss on disposal of property and
equipment
2,110
331
Share-based compensation expense
43,113
50,731
Deferred income taxes
(14,165
)
(17,061
)
Amortization of operating lease
right-of-use assets
6,238
9,709
Impairment and abandonment of operating
lease right-of-use assets related to facilities
7,815
5,390
Amortization of debt issuance costs
3,139
3,121
Changes in operating assets and
liabilities:
Accounts receivable and unbilled
receivables
27,050
(116,895
)
Inventories
31,690
(32,269
)
Prepaid expenses
(857
)
(2,602
)
Other current assets
1,521
6,692
Investment in sales-type leases
(8,839
)
(17,336
)
Prepaid commissions
5,533
8,801
Other long-term assets
2,539
4,189
Accounts payable
(13,358
)
2,043
Accrued compensation
(29,390
)
(27,940
)
Accrued liabilities
3,749
11,678
Deferred revenues
23,628
17,667
Operating lease liabilities
(8,145
)
(10,966
)
Other long-term liabilities
(291
)
1,446
Net cash provided by (used in) operating
activities
142,680
(4,372
)
Investing Activities
External-use software development
costs
(10,240
)
(9,648
)
Purchases of property and equipment
(32,404
)
(33,861
)
Business acquisition, net of cash
acquired
—
(3,392
)
Purchase price adjustments from business
acquisitions
—
5,484
Net cash used in investing activities
(42,644
)
(41,417
)
Financing Activities
Proceeds from issuances under stock-based
compensation plans
23,035
39,539
Employees’ taxes paid related to
restricted stock units
(6,130
)
(11,442
)
Change in customer funds, net
(6,615
)
(402
)
Stock repurchases
—
(52,210
)
Net cash provided by (used in) financing
activities
10,290
(24,515
)
Effect of exchange rate changes on cash
and cash equivalents
(464
)
(1,425
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
109,862
(71,729
)
Cash, cash equivalents, and restricted
cash at beginning of period
352,835
355,620
Cash, cash equivalents, and restricted
cash at end of period
$
462,697
$
283,891
Reconciliation of cash, cash
equivalents, and restricted cash to the Condensed Consolidated
Balance Sheets:
Cash and cash equivalents
$
446,840
$
266,402
Restricted cash included in other current
assets
15,857
17,489
Cash, cash equivalents, and restricted
cash at end of period
$
462,697
$
283,891
Omnicell, Inc.
Reconciliation of GAAP to
Non-GAAP
(Unaudited, in thousands,
except per share data and percentage)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Reconciliation of GAAP revenues to
non-GAAP revenues:
GAAP revenues
$
298,663
$
348,059
$
888,265
$
998,273
Acquisition accounting impact related to
deferred revenues
—
183
—
863
Non-GAAP revenues
$
298,663
$
348,242
$
888,265
$
999,136
Reconciliation of GAAP gross profit to
non-GAAP gross profit:
GAAP gross profit
$
131,964
$
159,095
$
391,436
$
467,234
GAAP gross margin
44.2
%
45.7
%
44.1
%
46.8
%
Share-based compensation expense
2,213
2,203
6,489
6,607
Amortization of acquired intangibles
2,633
3,238
8,558
10,089
Acquisition accounting impact related to
deferred revenues
—
183
—
863
Ransomware-related expenses, net of
insurance recoveries
—
95
—
317
Severance-related expenses, net of
reversals
(280
)
444
102
600
Non-GAAP gross profit
$
136,530
$
165,258
$
406,585
$
485,710
Non-GAAP gross margin
45.7
%
47.5
%
45.8
%
48.6
%
Reconciliation of GAAP operating
expenses to non-GAAP operating expenses:
GAAP operating expenses
$
128,252
$
140,630
$
402,939
$
431,200
GAAP operating expenses % to total
revenues
42.9
%
40.4
%
45.4
%
43.2
%
Share-based compensation expense
(12,769
)
(15,107
)
(36,624
)
(44,124
)
Amortization of acquired intangibles
(5,050
)
(5,507
)
(15,402
)
(16,554
)
Acquisition-related expenses
(246
)
(251
)
(738
)
(1,909
)
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities (a)
—
(297
)
(8,420
)
(5,390
)
Ransomware-related expenses, net of
insurance recoveries
184
(932
)
184
(2,084
)
Executives transition costs
(1,348
)
—
(2,189
)
—
Severance-related and other expenses, net
of reversals (b)
301
(2,050
)
(5,352
)
(5,421
)
Non-GAAP operating expenses
$
109,324
$
116,486
$
334,398
$
355,718
Non-GAAP operating expenses as a % of
total non-GAAP revenues
36.6
%
33.4
%
37.6
%
35.6
%
Reconciliation of GAAP income (loss)
from operations to non-GAAP income from operations:
GAAP income (loss) from operations
$
3,712
$
18,465
$
(11,503
)
$
36,034
GAAP operating income (loss) % to total
revenues
1.2
%
5.3
%
(1.3
)%
3.6
%
Share-based compensation expense
14,982
17,310
43,113
50,731
Amortization of acquired intangibles
7,683
8,745
23,960
26,643
Acquisition accounting impact related to
deferred revenues
—
183
—
863
Acquisition-related expenses
246
251
738
1,909
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities (a)
—
297
8,420
5,390
Ransomware-related expenses, net of
insurance recoveries
(184
)
1,027
(184
)
2,401
Executives transition costs
1,348
—
2,189
—
Severance-related and other expenses, net
of reversals (b)
(581
)
2,494
5,454
6,021
Non-GAAP income from operations
$
27,206
$
48,772
$
72,187
$
129,992
Non-GAAP operating margin (non-GAAP
operating income as a % of total non-GAAP revenues)
9.1
%
14.0
%
8.1
%
13.0
%
Omnicell, Inc.
Reconciliation of GAAP to
Non-GAAP
(Unaudited, in thousands,
except per share data and percentage)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Reconciliation of GAAP net income
(loss) to non-GAAP net income:
GAAP net income (loss)
$
5,553
$
16,774
$
(5,996
)
$
34,056
Share-based compensation expense
14,982
17,310
43,113
50,731
Amortization of acquired intangibles
7,683
8,745
23,960
26,643
Acquisition accounting impact related to
deferred revenues
—
183
—
863
Acquisition-related expenses
246
251
738
1,909
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities (a)
—
297
8,420
5,390
Ransomware-related expenses, net of
insurance recoveries
(184
)
1,027
(184
)
2,401
Executives transition costs
1,348
—
2,189
—
Severance-related and other expenses, net
of reversals (b)
(581
)
2,494
5,454
6,021
Amortization of debt issuance costs
1,048
1,042
3,139
3,121
Tax effect of the adjustments above
(c)
(2,008
)
(2,948
)
(9,181
)
(9,734
)
Non-GAAP net income
$
28,087
$
45,175
$
71,652
$
121,401
Reconciliation of GAAP net income
(loss) per share - diluted to non-GAAP net income per share -
diluted:
Shares - diluted GAAP
45,595
45,819
45,117
46,759
Shares - diluted non-GAAP (d)
45,595
45,384
45,410
45,597
GAAP net income (loss) per share -
diluted
$
0.12
$
0.37
$
(0.13
)
$
0.73
Share-based compensation expense
0.33
0.38
0.95
1.11
Amortization of acquired intangibles
0.16
0.19
0.52
0.58
Acquisition accounting impact related to
deferred revenues
—
0.00
—
0.02
Acquisition-related expenses
0.01
0.01
0.02
0.04
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities
—
0.01
0.18
0.12
Ransomware-related expenses, net of
insurance recoveries
(0.00
)
0.02
(0.00
)
0.05
Executives transition costs
0.03
—
0.05
—
Severance-related and other expenses, net
of reversals
(0.01
)
0.06
0.12
0.13
Amortization of debt issuance costs
0.02
0.02
0.07
0.07
Non-GAAP dilutive shares impact from
convertible note hedge transaction (d)
—
0.00
—
0.02
Tax effect of the adjustments above
(c)
(0.04
)
(0.06
)
(0.20
)
(0.21
)
Non-GAAP net income per share -
diluted
$
0.62
$
1.00
$
1.58
$
2.66
Reconciliation of GAAP net income
(loss) to non-GAAP EBITDA(e):
GAAP net income (loss)
$
5,553
$
16,774
$
(5,996
)
$
34,056
Share-based compensation expense
14,982
17,310
43,113
50,731
Interest (income) and expense, net
(5,247
)
(1,136
)
(12,731
)
(1,311
)
Depreciation and amortization expense
21,542
21,826
65,596
64,843
Acquisition accounting impact related to
deferred revenues
—
183
—
863
Acquisition-related expenses
246
251
738
1,909
Impairment and abandonment of operating
lease right-of-use and other assets related to facilities (a)
—
297
8,420
5,390
Ransomware-related expenses, net of
insurance recoveries
(184
)
1,027
(184
)
2,401
Executives transition costs
1,348
—
2,189
—
Severance-related and other expenses, net
of reversals (b)
(581
)
2,494
5,454
6,021
Amortization of debt issuance costs
1,048
1,042
3,139
3,121
Provision for (benefit from) income
taxes
1,829
543
4,405
(995
)
Non-GAAP EBITDA
$
40,536
$
60,611
$
114,143
$
167,029
Non-GAAP EBITDA margin (non-GAAP EBITDA as
a % of total non-GAAP revenues)
13.6
%
17.4
%
12.9
%
16.7
%
_________________________________________________
(a)
For the nine months ended September 30,
2023, impairment charges of other assets were approximately $0.6
million related to property and equipment in connection with
restructuring activities for optimization of certain leased
facilities.
(b)
For the three and nine months ended
September 30, 2022, other expenses included approximately $0.7
million of certain litigation costs.
(c)
Tax effects calculated for all adjustments
except share-based compensation expense, using an estimated annual
effective tax rate of 21% for both fiscal years 2023 and 2022.
(d)
For the three and nine months ended
September 30, 2022, non-GAAP diluted shares excluded approximately
0.4 million and 1.2 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.
(e)
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 September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Reconciliation of GAAP net cash
provided by (used in) operating activities to non-GAAP free cash
flow:
GAAP net cash provided by (used in)
operating activities
$
57,007
$
21,175
$
142,680
$
(4,372
)
External-use software development
costs
(3,555
)
(3,105
)
(10,240
)
(9,648
)
Purchases of property and equipment
(10,632
)
(12,762
)
(32,404
)
(33,861
)
Non-GAAP free cash flow
$
42,820
$
5,308
$
100,036
$
(47,881
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102376671/en/
Kathleen Nemeth Senior Vice President, Investor Relations
650-435-3318 Kathleen.Nemeth@Omnicell.com
Omnicell (NASDAQ:OMCL)
Gráfico Histórico do Ativo
De Set 2024 até Out 2024
Omnicell (NASDAQ:OMCL)
Gráfico Histórico do Ativo
De Out 2023 até Out 2024