Omnicell(OMCL) - 2021 Q1 - Quarterly Report

Revenue Performance - Revenues generated in the United States represented 89% and 90% of total revenues for the three months ended March 31, 2021 and 2020, respectively [133]. - Total revenues for the three months ended March 31, 2021, were $251.8 million, an increase of 10% compared to $229.7 million in the same period of 2020 [151]. - The company’s international sales represented 11% of total revenues for the three months ended March 31, 2021, indicating a slight increase from 10% in the same period of 2020 [153]. - Product revenues increased by $8.1 million to $178.1 million, representing 71% of total revenues, while services and other revenues rose by $14.1 million to $73.7 million, accounting for 29% of total revenues [151][152]. Profitability and Expenses - Gross profit for the three months ended March 31, 2021, was $122.3 million, a 12% increase from $109.6 million in the same period of 2020, resulting in a gross margin of 49% [156][159]. - Operating expenses totaled $102.7 million, a 5% increase from $97.5 million in the same period of 2020, with research and development expenses decreasing by 14% [160]. - The company reported a provision for income taxes of $18, compared to a benefit of $1.2 million in the same period of 2020, reflecting a significant change in tax position [163]. Cash Flow and Financial Position - Cash and cash equivalents increased to $548.1 million as of March 31, 2021, up from $485.9 million at December 31, 2020, with a working capital of $611.7 million [167]. - Net cash provided by operating activities was $57.4 million for the three months ended March 31, 2021, compared to $25.2 million for the same period in 2020, reflecting a significant increase of 127.5% [179][180]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $59.5 million for the three months ended March 31, 2021, compared to a decrease of $23.1 million in the same period of 2020 [177]. - Net cash provided by financing activities was $15.6 million for the three months ended March 31, 2021, primarily due to $20.8 million in proceeds from employee stock option exercises and ESPP purchases [183]. - The company expects existing cash and cash equivalents, anticipated cash flows from operations, and availability of funds under the Revolving Credit Facility to meet cash needs for at least the next twelve months [176]. Strategic Initiatives and Market Opportunities - The company completed the acquisition of the 340B Link business for total cash consideration of $225.0 million, enhancing its suite of software-enabled services [144]. - The company aims to advance its platform with new product introductions annually, focusing on the autonomous pharmacy vision [129]. - The Central Pharmacy market represents a significant automation opportunity to replace manual processes, which are prone to errors [140]. - The company believes its technology and services will address the evolving needs of retail, acute, and post-acute pharmacy providers [141]. - The ongoing COVID-19 pandemic has led to increased strategic relevance of the company's products and services, with customers returning to pre-pandemic purchasing patterns [142]. - The company expects continued growth in subscription and cloud-based offerings as part of its autonomous pharmacy vision [129]. Employee and Operational Metrics - The company has a full-time employee headcount of approximately 2,970 as of March 31, 2021, up from 2,860 at the end of 2020 [137]. - There were no significant changes in market risk exposures during the three months ended March 31, 2021, compared to previous disclosures [191]. - The company experienced an increase in deferred revenues of $21.7 million for the three months ended March 31, 2021, primarily due to increased billings driven by shipment timing [179]. Capital Structure and Obligations - The company has a revolving credit facility of $500 million, with no outstanding balance as of March 31, 2021, and is in full compliance with all covenants [171]. - On September 25, 2020, the company issued $575 million in convertible senior notes, with proceeds used for various corporate purposes including acquisitions and debt repayment [172][173]. - Contractual obligations as of March 31, 2021, totaled $732.4 million, with $90.9 million due in the remainder of 2021 [185]. - The fair market value of the company's convertible senior notes was $816.8 million as of March 31, 2021, with a net carrying amount of $472.3 million [189]. - The company has $54.9 million remaining for future stock repurchases as of March 31, 2021, with no stock repurchases made during the three months ended March 31, 2021, and 2020 [175].