Omnicell Achieves Record Revenues and Earnings in 2013

Extends Four-Year Trajectory of Company Growth

February 04, 2014

MOUNTAIN VIEW, Calif.

Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its fourth quarter and year ended December 31, 2013.

GAAP results: Revenue for the fourth quarter of 2013 was $105.8 million, up $11.7 million or 12.5% from the third quarter of 2013, and up $15.6 million or 17.3% from the fourth quarter of 2012. Revenue for the year ended December 31, 2013 was $380.6 million, up $66.6 million or 21.2% from the year ended December 31, 2012.

Fourth quarter 2013 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $6.8 million, or $0.19 per diluted share. This compares to net income of $7.8 million, or $0.21 per diluted share, in the third quarter of 2013 and net income of $5.5 million, or $0.16 per diluted share, in the fourth quarter of 2012. For the year ended December 31, 2013, net income was $24.0 million, or $0.67 per diluted share. This compares to net income of $16.2 million, or $0.47 per diluted share, for the year ended December 31, 2012.

Non-GAAP results: Non-GAAP net income was $10.5 million for the fourth quarter of 2013, or $0.29 per diluted share. Non-GAAP net income for the fourth quarter excludes $2.7 million of stock-based compensation expense, $1.0 million ($0.6 million net of the $0.4 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2012 and earlier and $0.6 million ($0.4 million net of the $0.2 million tax effect) of non-recurring charges incurred in connection with the previously announced agreement to acquire Surgichem Limited, a wholly-owned subsidiary of Bupa Care Homes plc. This compares to non-GAAP net income of $8.6 million, or $0.25 per diluted share, for the fourth quarter of 2012. Non-GAAP net income for the fourth quarter of 2012 excluded $2.4 million of stock-based compensation expense and $1.1 million ($0.7 million net of the $0.4 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2012 and earlier. Fourth quarter results compare to non-GAAP net income of $11.3 million, or $0.31 per diluted share, for the third quarter of 2013. Non-GAAP net income for the third quarter excluded $2.8 million of stock-based compensation expense and $1.1 million ($0.8 million net of $0.3 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2012 and earlier.

For the year ended December 31, 2013, non-GAAP net income was $38.6 million, or $1.08 per diluted share. Non-GAAP net income for the year ended December 31, 2013 excludes $11.2 million of stock-based compensation expense, $0.7 million ($0.4 million net of $0.3 million tax effect) of reorganization costs incurred in the first quarter of 2013 related to the integration of MTS Medication Technologies, $0.6 million ($0.4 million net of the $0.2 million tax effect) of non-recurring charges incurred in connection with the previously announced agreement to acquire Surgichem Limited, a wholly-owned subsidiary of Bupa Care Homes plc and $4.2 million ($2.7 million net of the $1.5 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2012 and earlier. For the year ended December 31, 2012, non-GAAP net income was $29.8 million, or $0.87 per diluted share. Non-GAAP net income for the year ended December 31, 2012 excluded $9.2 million of stock-based compensation expense, $4.9 million of acquisition transaction and integration costs ($2.9 million net of the $2.0 million tax effect), and $2.7 million ($1.6 million net of the $1.1 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2012 and earlier.

"With a strong fourth quarter, Omnicell closed a fiscal 2013 that exceeded the high end of our guidance," said Randall Lipps, president, CEO and chairman. "We are proud of the company's performance. Omnicell achieved record revenues in the fourth quarter, and the full year 2013 was a record for both revenues and earnings."

"More telling is Omnicell's growth over the past four years, in which we increased revenue over 75% and tripled our profit," he added. "These are the results of successfully broadening our product portfolio, expanding the markets where we participate, and partnering with our customers to address medication management across the full continuum of patient care. We are well positioned to take advantage of the great opportunities ahead."

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