Omnicell, Inc. · NASDAQ:OMCL
Omnicell — Investor Presentation (January 2006)
25 slides from Omnicell's investor presentation, Jan 30, 2006
Slide 1: Improving Patient Care Through Operational Efficiency
Improving Patient Care Through Operational Efficiency Investor Presentation January 30, 2006
Slide 2: Forward-Looking Statements
Forward-Looking Statements These slides accompany an oral presentation by Omnicell, Inc. which contains forward-looking statements. The Company’s actual results may differ materially from those suggested here. Additional information concerning factors that could cause such a difference is contained
Slide 3: Omnicell Overview
Omnicell Overview The centrality of patient safety End-to-end solution offerings Differentiation through innovation Established market presence − Over 1,600 customer sites − Nine of the 16 U.S. News & World Report honor roll hospitals − Outstanding customer satisfaction ratings
Slide 4: Large Available Markets
Large Available Markets Industry Installed Base Potential ($ billions) $6.0 $4.0 $2.0 $0.6 $1.0 Supply Medication Pharmacy Bedside Anesthesia Systems Systems Retrieval Workstation
Slide 5: Goals
Goals Provide the best healthcare automation solutions Expand market share from 20% currently Grow revenue in excess of 15% Garner operating margins of 10-15% Maintain predictability of revenue and earnings
Slide 6: Strategy
Strategy Deliver superior customer experience Broader product line, end-to-end solutions Bigger deals Deeper account penetration Improve operational efficiencies
Slide 7: End-to-End Solutions for the Medication-Use Process
End-to-End Solutions for the Medication-Use Process Administering Prescribing Inventory Control and Dispensing & Monitoring WorkflowRx Point-to-Point Medication Safety Physician OmniLinkRx Automated Pharmacy Automated SafetyPak Controlled SecureVault OmniRx Medication Anesthesia Automated SafetyMed
Slide 8: End-to-End Solutions for Supply Chain Management
End-to-End Solutions for Supply Chain Management Materials Nursing Units and Specialty Areas Bedside Management OptiFlex MS OmniSupplier OptiFlex CL OptiFlex SS SafetyMed RN Procurement OmniBuyer Open & Cabinet- Cath Lab Surgical Bedside SupplyTracker Integrated Based Inventory Services Supply Med-S
Slide 9: Patient Safety: Clinical Industry Drivers
Patient Safety: Clinical Industry Drivers Institute of Medicine − Keeping Patients Safe (2003) − Leadership by Example (2002) − Crossing the Quality Chasm (2001) − To Err is Human (1999) California Senate Bills 1875 and 801 The Leapfrog Group JCAHO 2004 Medication Management Standards FDA
Slide 10: JCAHO and CMS Regulations
JCAHO and CMS Regulations JCAHO Medication Management Standard 2.20: “Medications are properly and safely stored throughout the hospital.” Centers for Medicare & Medicaid Services Condition of Participation for Pharmaceutical Services, Section 482.25 (b) (2): “Drugs and biologicals must be kept
Slide 11: FDA Bar Code Regulation
FDA Bar Code Regulation Final rule published Feb. 25, 2004; law takes effect April 26, 2006 Requires bar codes on prescription drugs and biological products Endorses bar code technology as key patient safety solution FDA projects these benefits over the next 20 years: − 500,000 fewer adverse
Slide 12: Proven ROI
Proven ROI Reduces errors / improves safety Reduces inventory by 25%-35% Decreases consumption by 15%-20% Addresses nursing shortage Reduces liability risk Utilizes invested software Payback in < 2 years
Slide 13: Market Share Expansion – Three-Pronged
Market Share Expansion – Three-Pronged Greater account penetration with broader product line Customers with no automation − #1 in nurse preference − End-to-end solutions Competitive accounts − Direct competitive swap − Surround and grow with broad product line
Slide 14: Winning Multi-Hospital Systems
Winning Multi-Hospital Systems Advocate Health Care – 10 hospitals, 3,500 beds Catholic Healthcare West – 40 hospitals, 6,800 beds HCA – 190 hospitals, 40,000 beds Child Health Corporation of America – 41 hospitals, 10,000 beds Health Enterprises Cooperative – 17 hospitals, 2,100 beds Ba
Slide 15: America’s Best Hospitals – Omnicell Customers
America’s Best Hospitals – Omnicell Customers Nine of the 16 U.S. News & World Report honor roll hospitals are Omnicell customers: Massachusetts General Hospital Boston, MA Cleveland Clinic Cleveland, OH UCLA Medical Center Los Angeles, CA Barnes-Jewish Hospital St. Louis, MO Univ. of Washington M
Slide 16: Why We Win
Why We Win Swaps − Competitive products and services − Confident sales force Supply − Focused sales force IDNs − Broad product line − Corporate sales focus New accounts − Highest-rated products and service
Slide 17: Superior User Satisfaction
Superior User Satisfaction MD Buyline: 13 straight quarters of superior ratings over main competitor, Pyxis, for medication dispensing systems across six criteria: −System performance −System reliability −Installation/implementation −Applications training −Service response time −Service repair qua
Slide 18: Financials
Financials
Slide 19: What’s Different at Omnicell
What’s Different at Omnicell More focused on providing a great customer experience Working at the customer’s pace results in backlog growth Backlog enables linearity, operating efficiencies Linearity enables us to scale earnings
Slide 20: Backlog Growth
Backlog Growth Three strong quarters of bookings Backlog is up $23M or 48% since year-end 2004 Excellent bookings from greenfield customers adopting automation products Large IDN wins shifting market share Expect backlog to stabilize at around 2.5 quarters of product revenue
Slide 21: Benefits of Linearity
Benefits of Linearity Production costs down 30% from a year ago Freight costs down 63% from a year ago Installation costs down 10%, but it’s a lagging indicator Traditional service margin is up 9 pts from a year ago Predictability is up immeasurably Cash requirements drop Created time
Slide 22: Q4’05 Financial Highlights
Q4’05 Financial Highlights Backlog grew $8M for the third quarter in a row, now $70M Revenue up 9% sequentially to $33.5M Central pharmacy products had a record quarter Gross margin declined 3.1 pts Q3 to Q4, primarily due to mix Operating expense flat Q3 to Q4. Operating income of $1.9M
Slide 23: FY06 Guidance
FY06 Guidance Expect FY06 revenue growth of 16-18% Street consensus(1) is revenue of $143M Expect EPS in the mid-to-high 30 cents range Street consensus(1) is EPS of $0.37, high of $0.39, low of $0.35 Expect backlog to stabilize at around 2.5 quarters of product revenue (1) Firms following
Slide 24: Compelling Opportunity
Compelling Opportunity Expanded market opportunity − New product offerings address additional markets Patient safety driving customer demand Large, satisfied installed base − Potential to triple revenue from existing customers New business model working − Enhancing predictability, lowering c
Slide 25: Improving Patient Care Through Operational Efficiency
Improving Patient Care Through Operational Efficiency Investor Presentation January 30, 2006