Omnicell, Inc. Files 8-K on Financials and Exit Costs

TL;DR

OMCL dropped an 8-K detailing financials and exit costs. Check the numbers.

AI Summary

Omnicell, Inc. filed an 8-K on April 26, 2024, reporting on its results of operations and financial condition. The filing also details costs associated with exit or disposal activities and includes financial statements and exhibits. The company is incorporated in Delaware and headquartered in Fort Worth, Texas.

Why It Matters

This filing provides investors with crucial updates on Omnicell's financial performance and any restructuring or disposal-related expenses, impacting the company's valuation and future outlook.

Risk Assessment

Risk Level: medium — The filing concerns financial results and potential exit costs, which can introduce uncertainty and volatility for investors.

Key Players & Entities

• OMNICELL, INC. (company) — Registrant
• Delaware (jurisdiction) — State of incorporation
• Fort Worth, TX (location) — Principal executive offices
• April 26, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value OMCL NASDAQ Global Select Mar
• $15 — imates that it will incur approximately $15 - $20 million of nonrecurring charges,
• $20 million — that it will incur approximately $15 - $20 million of nonrecurring charges, of which $10 -
• $10 — llion of nonrecurring charges, of which $10 - $13 million are expected to result in
• $13 million — of nonrecurring charges, of which $10 - $13 million are expected to result in future cash e
• $3 — ng charges consist of (i) approximately $3 - $4 million of cash-based charges rela
• $4 million — arges consist of (i) approximately $3 - $4 million of cash-based charges related to the po
• $7 — and benefits costs, (ii) approximately $7 - $9 million of various cash-based char
• $9 million — benefits costs, (ii) approximately $7 - $9 million of various cash-based charges related t
• $5 — sociated costs, and (iii) approximately $5 - $7 million of non-cash charges relate
• $7 million — ted costs, and (iii) approximately $5 - $7 million of non-cash charges related to the prod
• $4 — losure, including asset impairments and $4 - $5 million of inventory reserve charg
• $5 million — e, including asset impairments and $4 - $5 million of inventory reserve charges. The Compa
• $1.6 million — mpany incurred charges of approximately $1.6 million related to the impairment of long-lived
• $3.3 million — mpany incurred charges of approximately $3.3 million primarily related to employee severance

Filing Documents

• omcl-20240426.htm (8-K) — 34KB
• exhibit991q1-24.htm (EX-99.1) — 292KB
• omnicell-logoxrxhzxgrnxrgb.jpg (GRAPHIC) — 20KB
• 0000926326-24-000012.txt ( ) — 510KB
• omcl-20240426.xsd (EX-101.SCH) — 2KB
• omcl-20240426_lab.xml (EX-101.LAB) — 22KB
• omcl-20240426_pre.xml (EX-101.PRE) — 13KB
• omcl-20240426_htm.xml (XML) — 3KB

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. On May 2, 2024, Omnicell, Inc. ("the "Company") issued a press release announcing its financial results for the quarter ended March 31, 2024. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The information contained in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto are being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On April 26, 2024, the Company's management committed to the wind down of the Company's Medimat Robotic Dispensing System ("RDS") product line, subject to local law and statutory works council consultation requirements. If this planned wind down (the "RDS Plan") proceeds , the Company expects to reduce its headcount and real estate footprint in an effort to improve the Company's profitability in light of current challenging industry dynamics. Subject to local law and statutory works council consultation requirements, the Company expects to reduce its international workforce by more than 80 employees and to close its production facility in Bochum, Germany . The statutory codetermination rights of the local works council have to be observed, and the RDS Plan would only be implemented once any required consent of the works council, as applicable, has finally been obtained. If the RDS Plan proceeds, the Company estimates that it will incur approximately $15 - $20 million of nonrecurring charges, of which $10 - $13 million are expected to result in future cash expenditures. The estimated nonrecurring charges consist of (i) approximately $3 - $4 million of cash-based charges related to the possible reduction in headcount, consisting primarily of employee severance and benefits costs, (ii) approximately $7 - $9 million of various cash-based charges related to the production facility closure, including expenses in connection with the facility lease termination, one-time employee compensation payments to assist with the orderly exit of the production facility, other one-time facilities related expenses and associated costs, and (iii) approximately $5 - $7 million of non-cash charges related to the production facility closure, including asset impairments and $4 - $5 million of inventory reserve charges. The Company incurred charges of approximately $1.6 million related to the impairment of long-lived assets relate

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements, including, but not limited to, statements related to the expected effects of the RDS Plan; the anticipated timing of completion of the RDS Plan; and the costs and related charges expected under the RDS Plan. Words such as "expects," "estimates," "will," "likely," "anticipates," "intends," "may," "plans," "potential," "believes," "forecast," "guidance," "outlook," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the Company's plans, assumptions, beliefs, and expectations as of the date of the filing of this Current Report on Form 8-K. Forward-looking statements are subject to the occurrence of many events outside the Company's control. Actual results and the timing of events may differ materially from those contemplated by such forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things, the risk that the nonrecurring costs may be greater than anticipated; the risk that the Company is unable to reach an agreement with the applicable works councils; the risk that the nonrecurring costs may be adversely impacted by foreign currency exchange rate fluctuations; the risk that the RDS Plan may have an adverse impact on the Company's internal programs and the Company's ability to recruit and retain skilled and motivated personnel and may be distracting to management; and other risks and uncertainties further described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K, as well as in the Company'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 p

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Exhibit Description 99.1 Press release entitled "Omnicell Announces First Quarter 2024 Results " dated May 2, 2024 104 Cover Page Interactive Data File (embedded within the inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. OMNICELL, INC. Date: May 2, 2024 /s/ Nchacha E. Etta Nchacha E. Etta, Executive Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR