☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 04-2729386 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
41 Seyon Street, Bldg. 1, Suite 100 Waltham, MA | 02453 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | RGEN | The Nasdaq Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||
Non-accelerated filer | ☐ | ||||||||
Emerging growth company | ☐ |
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Item 1. | 42 | ||||||||||||
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Item 2. | |||||||||||||
Item 3. | |||||||||||||
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Item 5. | 42 | ||||||||||||
Item 6. | |||||||||||||
ITEM 1. | Financial Statements |
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 513,454 | $ | 193,822 | ||||
Restricted cash | 8,975 | — | ||||||
Accounts receivable, less reserve for doubtful accounts of $420 and $227 at September 30, 2019 and December | 41,968 | 33,015 | ||||||
Royalties and other receivables | 68 | 136 | ||||||
Unbilled receivables | 555 | 2,602 | ||||||
Inventories, net | 51,579 | 42,263 | ||||||
Prepaid expenses and other current assets | 4,941 | 3,901 | ||||||
Total current assets | 621,540 | 275,739 | ||||||
Property, plant and equipment, net | 43,034 | 32,180 | ||||||
Intangible assets, net | 216,289 | 135,438 | ||||||
Goodwill | 468,845 | 326,735 | ||||||
Deferred tax assets | 3,917 | 4,355 | ||||||
Operating lease right of use assets | 24,845 | — | ||||||
Other assets | 238 | 174 | ||||||
Total assets | $ | 1,378,708 | $ | 774,621 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 9,951 | $ | 10,489 | ||||
Operating lease liability | 3,044 | — | ||||||
Accrued liabilities | 25,770 | 15,865 | ||||||
Convertible senior notes, current portion | — | 103,488 | ||||||
Total current liabilities | 38,765 | 129,842 | ||||||
Convertible senior notes | 230,182 | — | ||||||
Deferred tax liabilities | 38,059 | 25,086 | ||||||
Operating lease liability, long-term | 26,056 | — | ||||||
Other liabilities, long-term | 528 | 4,125 | ||||||
Total liabilities | 333,590 | 159,053 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, 0 shares issued or outstanding | — | — | ||||||
Common stock, $0.01 par value; 80,000,000 shares authorized; 52,052,581 shares at September 30, 2019 and 43,917,378 shares at December 31, 2018 issued and outstanding | 521 | 439 | ||||||
Additional paid-in capital | 1,064,152 | 642,590 | ||||||
Accumulated other comprehensive loss | (21,794 | ) | (11,893 | ) | ||||
Accumulated earnings (deficit) | 2,239 | (15,568 | ) | |||||
Total stockholders’ equity | 1,045,118 | 615,568 | ||||||
Total liabilities and stockholders’ equity | $ | 1,378,708 | $ | 774,621 | ||||
September 30, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 553,302 | $ | 528,392 | ||||
Restricted cash | — | 9,015 | ||||||
Accounts receivable, net of allowances of $621 and $525 at September 30, 2020 and December 31, 2019, respectively | 55,830 | 43,068 | ||||||
Royalties and other receivables | 95 | 148 | ||||||
Unbilled receivables | — | 456 | ||||||
Inventories, net | 78,531 | 54,832 | ||||||
Prepaid expenses and other current assets | 8,970 | 5,917 | ||||||
Total current assets | 696,728 | 641,828 | ||||||
Property, plant and equipment, net | 55,355 | 48,455 | ||||||
Intangible assets, net | 215,385 | 212,552 | ||||||
Goodwill | 482,043 | 468,413 | ||||||
Deferred tax assets | 2,192 | 2,920 | ||||||
Operating lease right of use assets | 24,201 | 25,707 | ||||||
Other assets | 412 | 238 | ||||||
Total assets | $ | 1,476,316 | $ | 1,400,113 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 14,483 | $ | 11,425 | ||||
Operating lease liability | 4,460 | 3,557 | ||||||
Accrued liabilities | 32,041 | 33,331 | ||||||
Total current liabilities | 50,984 | 48,313 | ||||||
Convertible senior notes, net | 240,942 | 232,767 | ||||||
Deferred tax liabilities | 29,435 | 29,944 | ||||||
Operating lease liability, long-term | 26,378 | 26,995 | ||||||
Other liabilities, long-term | 3,707 | 2,326 | ||||||
Total liabilities | 351,446 | 340,345 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, 0 shares issued or outstanding | — | — | ||||||
Common stock, $0.01 par value; 80,000,000 shares authorized; 52,606,700 shares at September 30, 2020 and 52,078,258 shares at December 31, 2019 issued and outstanding | 526 | 521 | ||||||
Additional paid-in capital | 1,087,996 | 1,068,431 | ||||||
Accumulated other comprehensive loss | (9,723 | ) | (15,027 | ) | ||||
Retained earnings | 46,071 | 5,843 | ||||||
Total stockholders’ equity | 1,124,870 | 1,059,768 | ||||||
Total liabilities and stockholders’ equity | $ | 1,476,316 | $ | 1,400,113 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue: | ||||||||||||||||
Products | $ | 69,419 | $ | 49,500 | $ | 200,701 | $ | 142,042 | ||||||||
Royalty and other revenue | 26 | 29 | 70 | 48 | ||||||||||||
Total revenue | 69,445 | 49,529 | 200,771 | 142,090 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of product revenue | 31,425 | 22,183 | 88,978 | 62,939 | ||||||||||||
Research and development | 5,427 | 3,601 | 14,278 | 12,669 | ||||||||||||
Selling, general and administrative | 24,629 | 15,859 | 67,326 | 48,347 | ||||||||||||
Total costs and operating expenses | 61,481 | 41,643 | 170,582 | 123,955 | ||||||||||||
Income from operations | 7,964 | 7,886 | 30,189 | 18,135 | ||||||||||||
Other income (expenses): | ||||||||||||||||
Investment income | 1,898 | 558 | 3,616 | 1,251 | ||||||||||||
Loss on extinguishment of debt | (5,650 | ) | — | (5,650 | ) | — | ||||||||||
Interest expense | (2,857 | ) | (1,687 | ) | (6,326 | ) | (5,008 | ) | ||||||||
Other income (expenses) | 316 | (134 | ) | (23 | ) | 187 | ||||||||||
Other expenses, net | (6,293 | ) | (1,263 | ) | (8,383 | ) | (3,570 | ) | ||||||||
Income before income taxes | 1,671 | 6,623 | 21,806 | 14,565 | ||||||||||||
Income tax provision | 12 | 1,829 | 3,999 | 3,586 | ||||||||||||
Net income | $ | 1,659 | $ | 4,794 | $ | 17,807 | $ | 10,979 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.03 | $ | 0.11 | $ | 0.38 | $ | 0.25 | ||||||||
Diluted | $ | 0.03 | $ | 0.10 | $ | 0.37 | $ | 0.24 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 50,852 | 43,822 | 47,087 | 43,729 | ||||||||||||
Diluted | 51,809 | 45,828 | 47,930 | 45,132 | ||||||||||||
Net income | $ | 1,659 | $ | 4,794 | $ | 17,807 | $ | 10,979 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | (6,741 | ) | (630 | ) | (9,901 | ) | (5,410 | ) | ||||||||
Comprehensive (loss) income | $ | (5,082 | ) | $ | 4,164 | $ | 7,906 | $ | 5,569 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue: | ||||||||||||||||
Products | $ | 94,029 | $ | 69,419 | $ | 257,521 | $ | 200,701 | ||||||||
Royalty and other revenue | 31 | 26 | 91 | 70 | ||||||||||||
Total revenue | 94,060 | 69,445 | 257,612 | 200,771 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of product revenue | 39,626 | 31,425 | 108,471 | 88,978 | ||||||||||||
Research and development | 4,422 | 5,427 | 13,460 | 14,278 | ||||||||||||
Selling, general and administrative | 29,051 | 24,629 | 83,277 | 67,326 | ||||||||||||
Total costs and operating expenses | 73,099 | 61,481 | 205,208 | 170,582 | ||||||||||||
Income from operations | 20,961 | 7,964 | 52,404 | 30,189 | ||||||||||||
Other income (expenses): | ||||||||||||||||
Investment income | 82 | 1,898 | 1,699 | 3,616 | ||||||||||||
Loss on extinguishment of debt | — | (5,650 | ) | — | (5,650 | ) | ||||||||||
Interest expense | (3,052 | ) | (2,857 | ) | (9,032 | ) | (6,326 | ) | ||||||||
Other (expenses) income | (248 | ) | 316 | (632 | ) | (23 | ) | |||||||||
Other expenses, net | (3,218 | ) | (6,293 | ) | (7,965 | ) | (8,383 | ) | ||||||||
Income before income taxes | 17,743 | 1,671 | 44,439 | 21,806 | ||||||||||||
Income tax provision | 3,191 | 12 | 4,211 | 3,999 | ||||||||||||
Net income | $ | 14,552 | $ | 1,659 | $ | 40,228 | $ | 17,807 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.28 | $ | 0.03 | $ | 0.77 | $ | 0.38 | ||||||||
Diluted | $ | 0.27 | $ | 0.03 | $ | 0.75 | $ | 0.37 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 52,545 | 50,852 | 52,341 | 47,087 | ||||||||||||
Diluted | 53,469 | 51,809 | 53,300 | 47,930 | ||||||||||||
Net income | $ | 14,552 | $ | 1,659 | $ | 40,228 | $ | 17,807 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | 4,390 | (6,741 | ) | 5,304 | (9,901 | ) | ||||||||||
Comprehensive income (loss) | $ | 18,942 | $ | (5,082 | ) | $ | 45,532 | $ | 7,906 | |||||||
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Number of Shares | Par Value | Additional Paid- In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Total Stockholders’ Equity | |||||||||||||||||||
Balance at December 31, 2018 | 43,917,378 | $ | 439 | $ | 642,590 | $ | (11,893 | ) | $ | (15,568 | ) | $ | 615,568 | |||||||||||
Net income | — | — | — | — | 17,807 | 17,807 | ||||||||||||||||||
Issuance of common stock for debt conversion | 2,316,229 | 23 | 198,734 | — | — | 198,757 | ||||||||||||||||||
Reduction for equity component from debt conversion , net of tax | — | — | (200,079 | ) | — | — | (200,079 | ) | ||||||||||||||||
Exercise of stock options and releases of restricted stock | 311,299 | 3 | 1,055 | — | — | 1,058 | ||||||||||||||||||
Issuance of common stock pursuant to the acquisition of C Technologies, Inc. | 779,221 | 8 | 53,930 | — | — | 53,938 | ||||||||||||||||||
Tax withholding on vesting of restricted stock units | (3,077 | ) | — | (290 | ) | — | — | (290 | ) | |||||||||||||||
Equity component of 0.375% senior convertible notes, net of tax | — | — | 38,088 | — | — | 38,088 | ||||||||||||||||||
Proceeds from issuance of common stock, net of issuance costs of $18,607 | 4,731,531 | 48 | 320,665 | — | — | 320,713 | ||||||||||||||||||
Stock-based compensation expense | — | — | 9,459 | — | — | 9,459 | ||||||||||||||||||
Translation adjustment | — | — | — | (9,901 | ) | — | (9,901 | ) | ||||||||||||||||
Balance as of September 30, 2019 | 52,052,581 | $ | 521 | $ | 1,064,152 | $ | (21,794 | ) | $ | 2,239 | $ | 1,045,118 | ||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Number of Shares | Par Value | Additional Paid- In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings | Total Stockholders’ Equity | |||||||||||||||||||
Balance at June 30, 2019 | 48,086,422 | $ | 481 | $ | 892,960 | $ | (15,053 | ) | $ | 580 | $ | 878,968 | ||||||||||||
Net income | — | — | — | — | 1,659 | 1,659 | ||||||||||||||||||
Issuance of common stock for debt conversion | 2,316,200 | 23 | 198,732 | — | — | 198,755 | ||||||||||||||||||
Reduction for equity component from debt conversion , net of tax | — | — | (200,079 | ) | — | — | (200,079 | ) | ||||||||||||||||
Exercise of stock options and releases of restricted stock | 66,036 | 1 | 493 | — | — | 494 | ||||||||||||||||||
Tax withholding on vesting of restricted stock units | (3,077 | ) | — | (290 | ) | — | — | (290 | ) | |||||||||||||||
Equity component of 0.375% senior convertible notes, net of tax | — | — | 38,088 | — | — | 38,088 | ||||||||||||||||||
Proceeds from issuance of common stock, net of issuance costs of $6,981 | 1,587,000 | 16 | 131,073 | — | — | 131,089 | ||||||||||||||||||
Stock-based compensation expense | — | — | 3,175 | — | — | 3,175 | ||||||||||||||||||
Translation adjustment | — | — | — | (6,741 | ) | — | (6,741 | ) | ||||||||||||||||
Balance as of September 30, 2019 | 52,052,581 | $ | 521 | $ | 1,064,152 | $ | (21,794 | ) | $ | 2,239 | $ | 1,045,118 | ||||||||||||
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Number of Shares | Par Value | Additional Paid- In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||
Balance at December 31, 2017 | 43,587,079 | $ | 436 | $ | 628,983 | $ | (6,363 | ) | $ | (31,508 | ) | $ | 591,548 | |||||||||||
Net income | — | — | — | — | 10,979 | 10,979 | ||||||||||||||||||
Issuance of common stock for debt conversion | 2 | 0 | 0 | — | — | 0 | ||||||||||||||||||
Exercise of stock options and releases of restricted stock | 266,308 | 3 | 2,372 | — | — | 2,375 | ||||||||||||||||||
Stock-based compensation expense | — | — | 7,672 | — | — | 7,672 | ||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | — | (677 | ) | (677 | ) | ||||||||||||||||
Translation adjustment | — | — | — | (5,410 | ) | — | (5,410 | ) | ||||||||||||||||
Balance as of September 30 , 2018 | 43,853,389 | $ | 439 | $ | 639,027 | $ | (11,773 | ) | $ | (21,206 | ) | $ | 606,487 | |||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||
Common Stock | Additional Paid- In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Stockholders’ Equity | ||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||
Balance at December 31, 2019 | 52,078,258 | $ | 521 | $ | 1,068,431 | $ | (15,027 | ) | $ | 5,843 | $ | 1,059,768 | ||||||||||||
Net income | — | — | — | — | 40,228 | 40,228 | ||||||||||||||||||
Exercise of stock options and vesting of stock units | 528,442 | 5 | 7,073 | — | — | 7,078 | ||||||||||||||||||
Stock-based compensation expense | — | — | 12,492 | — | — | 12,492 | ||||||||||||||||||
Translation adjustment | — | — | — | 5,304 | — | 5,304 | ||||||||||||||||||
Balance as of September 30, 2020 | 52,606,700 | $ | 526 | $ | 1,087,996 | $ | (9,723 | ) | $ | 46,071 | $ | 1,124,870 | ||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||
Common Stock | Additional Paid- In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Stockholders’ Equity | ||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||
Balance at June 30, 2020 | 52,494,884 | $ | 525 | $ | 1,082,096 | $ | (14,113 | ) | $ | 31,519 | $ | 1,100,027 | ||||||||||||
Net income | — | — | — | — | 14,552 | 14,552 | ||||||||||||||||||
Exercise of stock options and vesting of stock units | 111,816 | 1 | 1,675 | — | — | 1,676 | ||||||||||||||||||
Stock-based compensation expense | — | — | 4,225 | — | — | 4,225 | ||||||||||||||||||
Translation adjustment | — | — | — | 4,390 | — | 4,390 | ||||||||||||||||||
Balance as of September 30, 2020 | 52,606,700 | $ | 526 | $ | 1,087,996 | $ | (9,723 | ) | $ | 46,071 | $ | 1,124,870 | ||||||||||||
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||
Common Stock | Additional Paid- In Capital | Accumulated Other Comprehensive Loss | Retained Earnings/ (Accumulated Deficit) | Total Stockholders’ Equity | ||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||
Balance at December 31, 2018 | 43,917,378 | $ | 439 | $ | 642,590 | $ | (11,893 | ) | $ | (15,568 | ) | $ | 615,568 | |||||||||||
Net income | — | — | — | — | 17,807 | 17,807 | ||||||||||||||||||
Issuance of common stock for debt conversion | 2,316,229 | 23 | 198,734 | — | — | 198,757 | ||||||||||||||||||
Reduction for equity component from debt conversion, net of tax | — | — | (200,079 | ) | — | — | (200,079 | ) | ||||||||||||||||
Exercise of stock options and vesting of stock units | 311,299 | 3 | 1,055 | — | — | 1,058 | ||||||||||||||||||
Issuance of common stock pursuant to the acquisition of C Technologies, Inc. | 779,221 | 8 | 53,930 | — | — | 53,938 | ||||||||||||||||||
Tax withholding on vesting of restricted stock units | (3,077 | ) | — | (290 | ) | — | — | (290 | ) | |||||||||||||||
Equity component of 0.375% senior convertible notes, net of tax | — | — | 38,088 | — | — | 38,088 | ||||||||||||||||||
Proceeds from issuance of common stock, net of issuance cost of $18,607 | 4,731,531 | 48 | 320,665 | — | — | 320,713 | ||||||||||||||||||
Stock-based compensation expense | — | — | 9,459 | — | — | 9,459 | ||||||||||||||||||
Translation adjustment | — | — | — | (9,901 | ) | — | (9,901 | ) | ||||||||||||||||
Balance as of September 30, 2019 | 52,052,581 | $ | 521 | $ | 1,064,152 | $ | (21,794 | ) | $ | 2,239 | $ | 1,045,118 | ||||||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
Additional | Other | Total | ||||||||||||||||||||||
Number of | Par | Paid- | Comprehensive | Accumulated | Stockholders’ | |||||||||||||||||||
Shares | Value | In Capital | Income (Loss) | Deficit | Equity | |||||||||||||||||||
Balance at June 30, 2018 | 43,798,572 | $ | 438 | $ | 635,364 | $ | (11,143 | ) | $ | (26,000 | ) | $ | 598,659 | |||||||||||
Net income | — | — | — | — | 4,794 | 4,794 | ||||||||||||||||||
Exercise of stock options and releases of restricted stock | 54,817 | 1 | 884 | — | — | 885 | ||||||||||||||||||
Stock-based compensation expense | — | — | 2,779 | — | — | 2,779 | ||||||||||||||||||
Translation adjustment | — | — | — | (630 | ) | — | (630 | ) | ||||||||||||||||
Balance as of September 30 , 2018 | 43,853,389 | $ | 439 | $ | 639,027 | $ | (11,773 | ) | $ | (21,206 | ) | $ | 606,487 | |||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||
Common Stock | Additional Paid- In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Stockholders’ Equity | ||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||
Balance at June 30, 2019 | 48,086,422 | $ | 481 | $ | 892,960 | $ | (15,053 | ) | $ | 580 | $ | 878,968 | ||||||||||||
Net income | — | — | — | — | 1,659 | 1,659 | ||||||||||||||||||
Issuance of common stock for debt conversion | 2,316,200 | 23 | 198,732 | — | — | 198,755 | ||||||||||||||||||
Reduction of equity component from debt conversion, net of tax | — | — | (200,079 | ) | — | — | (200,079 | ) | ||||||||||||||||
Exercise of stock options and vesting of stock units | 66,036 | 1 | 493 | — | — | 494 | ||||||||||||||||||
Tax withholding on vesting of restricted stock units | (3,077 | ) | — | (290 | ) | — | — | (290 | ) | |||||||||||||||
Equity component of 0.375% senior convertible notes, net of tax | — | — | 38,088 | — | — | 38,088 | ||||||||||||||||||
Proceeds from issuance of common stock, net of issuance cost of $6,981 | 1,587,000 | 16 | 131,073 | — | — | 131,089 | ||||||||||||||||||
Stock-based compensation expense | — | — | 3,175 | — | — | 3,175 | ||||||||||||||||||
Translation adjustment | — | — | — | (6,741 | ) | — | (6,741 | ) | ||||||||||||||||
Balance as of September 30, 2019 | 52,052,581 | $ | 521 | $ | 1,064,152 | $ | (21,794 | ) | $ | 2,239 | $ | 1,045,118 | ||||||||||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 17,807 | $ | 10,979 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 14,791 | 11,775 | ||||||
Non-cash interest expense | 4,863 | 3,160 | ||||||
Stock-based compensation expense | 9,459 | 7,672 | ||||||
Deferred tax es | (9,680 | ) | 472 | |||||
Loss on extinguishment of debt | 5,650 | — | ||||||
Other | 114 | 108 | ||||||
Changes in operating assets and liabilities, excluding impact of acquisitions: | ||||||||
Accounts receivable | (6,734 | ) | (1,583 | ) | ||||
Royalties and other receivables | 26 | (149 | ) | |||||
Unbilled receivables | 2,047 | — | ||||||
Inventories | (4,891 | ) | (4,805 | ) | ||||
Prepaid expenses and other assets | (1,075 | ) | (1,437 | ) | ||||
Operating lease right of use assets | 787 | — | ||||||
Other assets | (66 | ) | (1,348 | ) | ||||
Accounts payable | (780 | ) | 3,354 | |||||
Accrued expenses | 7,263 | (1,070 | ) | |||||
Operating lease liability | (607 | ) | — | |||||
Long-term liabilities | 10,568 | 87 | ||||||
Total cash provided by operating activities | 49,542 | 27,215 | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of C Technologies, Inc., net of cash acquired | (182,154 | ) | — | |||||
Additions to capitalized software costs | (4,630 | ) | (1,212 | ) | ||||
Purchases of property, plant and equipment | (11,413 | ) | (7,368 | ) | ||||
Total cash used in investing activities | (198,197 | ) | (8,580 | ) | ||||
Cash flows from financing activities: | ||||||||
Exercise of stock options | 1,058 | 2,374 | ||||||
Payment of tax withholding obligation on vesting of restricted stock | (290 | ) | — | |||||
Proceeds from issuance of convertible debt, net | 278,555 | — | ||||||
Proceeds from issuance of common stock, net | 320,713 | — | ||||||
Repayment of senior convertible notes | (114,989 | ) | (11 | ) | ||||
Total cash provided by financing activities | 485,047 | 2,363 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7,785 | ) | (4,453 | ) | ||||
Net increase in cash, cash equivalents and restricted cash | 328,607 | 16,545 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 193,822 | 173,759 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 522,429 | $ | 190,304 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Income taxes paid | $ | 4,206 | $ | 3,120 | ||||
Interest paid | $ | 1,484 | $ | 1,222 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Fair value of 2,316,229 shares of common stock issued for conversion of convertible notes | $ | 198,757 | $ | — | ||||
Fair value of common stock issued for acquisition of C Technologies, Inc. | $ | 53,938 | $ | — | ||||
Property, plant and equipment related to lease incentives | $ | — | $ | 2,270 | ||||
Non-cash effect of adoption of ASU 2016-16 | $ | — | $ | 5,609 | ||||
Business Acquisitions: | ||||||||
Fair value of tangible assets acquired | $ | 30,756 | $ | — | ||||
Fair value of accounts receivables | 3,044 | — | ||||||
Fair value of other assets | 3,929 | — | ||||||
Liabilities assumed | (35,370 | ) | — | |||||
Fair value of stock issued | (53,938 | ) | — | |||||
Cost in excess of fair value of assets acquired (goodwill) | 142,903 | — | ||||||
Acquired identifiable intangible assets | 90,830 | — | ||||||
Net cash paid for business acquisitions | $ | 182,154 | $ | — | ||||
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 40,228 | $ | 17,807 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 19,581 | 14,791 | ||||||
Non-cash interest expense | 8,175 | 4,863 | ||||||
Stock-based compensation expense | 12,492 | 9,459 | ||||||
Deferred income taxes, net | 72 | (9,680 | ) | |||||
Loss on extinguishment of debt | — | 5,650 | ||||||
Other | 228 | 114 | ||||||
Changes in operating assets and liabilities, excluding impact of acquisitions: | ||||||||
Accounts receivable | (11,515 | ) | (6,734 | ) | ||||
Royalties and other receivables | 157 | 26 | ||||||
Unbilled receivables | 456 | 2,047 | ||||||
Inventories | (22,767 | ) | (4,891 | ) | ||||
Prepaid expenses and other assets | (2,908 | ) | (1,075 | ) | ||||
Operating lease right of use assets | 2,574 | 787 | ||||||
Other assets | (260 | ) | (66 | ) | ||||
Accounts payable | 3,317 | (780 | ) | |||||
Accrued expenses | (2,712 | ) | 7,263 | |||||
Operating lease liability | (831 | ) | (607 | ) | ||||
Long-term liabilities | 1,467 | 10,568 | ||||||
Total cash provided by operating activities | 47,754 | 49,542 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions, net of cash acquired | (28,445 | ) | (182,154 | ) | ||||
Additions to capitalized software costs | (3,585 | ) | (4,630 | ) | ||||
Purchases of property, plant and equipment | (11,067 | ) | (11,413 | ) | ||||
Total cash used in investing activities | (43,097 | ) | (198,197 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from exercise of stock options | 7,088 | 1,058 | ||||||
Payment of tax withholding obligation on vesting of restricted stock | (10 | ) | (290 | ) | ||||
Proceeds from issuance of convertible debt, net | — | 278,555 | ||||||
Proceeds from issuance of common stock, net | — | 320,713 | ||||||
Repayment of senior convertible notes | — | (114,989 | ) | |||||
Total cash provided by financing activities | 7,078 | 485,047 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 4,160 | (7,785 | ) | |||||
Net increase in cash, cash equivalents and restricted cash | 15,895 | 328,607 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 537,407 | 193,822 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 553,302 | $ | 522,429 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Assets acquired under operating leases | $ | 1,456 | $ | — | ||||
Fair value of 2,316,229 shares of common stock issued for conversion of convertible notes | $ | — | $ | 198,757 | ||||
Fair value of common stock issued for acquisition of C Technologies, Inc. | $ | — | $ | 53,938 | ||||
1. | Summary of |
2. | Fair Value Measurements |
Level 1 – | Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. | |||
Level 2 – | Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. | |||
Level 3 – | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
3. | Acquisitions |
Cash and cash equivalents | $ | 69 | ||
Accounts receivable | 1,057 | |||
Inventory | 449 | |||
Prepaid expenses and other current assets | 7 | |||
Fixed assets, net | 472 | |||
Operating lease right of use assets | 1,050 | |||
Customer relationships | 11,080 | |||
Developed technology | 2,910 | |||
Trademark and tradename | 320 | |||
Non-compete agreements | 50 | |||
Goodwill | 12,573 | |||
Accounts payable | (283 | ) | ||
Accrued liabilities | (190 | ) | ||
Operating lease liability | (211 | ) | ||
Operating lease liability, long-term | (839 | ) | ||
Fair value of net assets acquired | $ | 28,514 | ||
Useful life | Fair Value | |||||||
(Amounts in thousands) | ||||||||
Customer relationships | 14 years | $ | 11,080 | |||||
Developed technology | 11 years | 2,910 | ||||||
Trademark and tradename | 14 years | 320 | ||||||
Non-competition agreements | 3 years | 50 | ||||||
$ | 14,360 | |||||||
Cash consideration | $ | 185,949 | ||
Equity consideration | 53,938 | |||
Fair value of net assets acquired | $ | 239,887 | ||
Cash and cash equivalents | $ | 3,795 | ||
Restricted cash | 26,933 | |||
Accounts receivable | 3,044 | |||
Inventory | 3,783 | |||
Prepaid expenses and other current assets | 93 | |||
Fixed assets | 40 | |||
Operating lease right of use asset | 3,836 | |||
Customer relationships | 59,680 | |||
Developed technology | 28,920 | |||
Trademark and tradename | 1,570 | |||
Non-competition agreements | 660 | |||
Goodwill | 142,903 | |||
Accounts payable | (436 | ) | ||
Accrued liabilities | (2,461 | ) | ||
Accrued bonus | (26,928 | ) | ||
Deferred revenue | (1,709 | ) | ||
Operating lease liability | (51 | ) | ||
Operating lease liability, long-term | (3,785 | ) | ||
Fair value of net assets acquired | $ | 239,887 | ||
Cash and cash equivalents | $ | 3,795 | ||
Restricted cash | 26,933 | |||
Accounts receivable | 3,044 | |||
Inventory | 3,783 | |||
Prepaid expenses and other current assets | 93 | |||
Fixed assets | 40 | |||
Operating lease right of use asset | 3,836 | |||
Customer relationships | 59,680 | |||
Developed technology | 28,920 | |||
Trademark and tradename | 1,570 | |||
Non-competition agreements | 660 | |||
Goodwill | 142,314 | |||
Deferred taxes | 895 | |||
Accounts payable | (436 | ) | ||
Accrued liabilities | (2,767 | ) | ||
Accrued bonus | (26,928 | ) | ||
Deferred revenue | (1,709 | ) | ||
Operating lease liability | (51 | ) | ||
Operating lease liability, long-term | (3,785 | ) | ||
Fair value of net assets acquired | $ | 239,887 | ||
Useful Life | Fair Value | |||||||
(Amounts in thousands) | ||||||||
Customer relationships | 17 years | $ | 59,680 | |||||
Developed technology | 18 years | 28,920 | ||||||
Trademark and tradename | 20 years | 1,570 | ||||||
Non-competition agreements | 4 years | 660 | ||||||
$ | 90,830 | |||||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
(Amounts in thousands, except per share data) | ||||||||
Pro forma total revenue | $ | 209,960 | $ | 159,173 | ||||
Pro forma net income | $ | 21,012 | $ | 15,205 | ||||
Pro forma earnings per share: | ||||||||
Basic | $ | 0.45 | $ | 0.32 | ||||
Diluted | $ | 0.44 | $ | 0.31 | ||||
Nine Months Ended September 30, | ||||
2019 | ||||
Pro forma total revenue | $ | 209,960 | ||
Pro forma net income | $ | 21,012 | ||
Pro forma earnings per share: | ||||
Basic | $ | 0.45 | ||
Diluted | $ | 0.44 | ||
4. | Revenue Recognition |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Product revenue | $ | 69,419 | $ | 49,500 | $ | 200,701 | $ | 142,042 | ||||||||
Royalty and other income | 26 | 29 | 70 | 48 | ||||||||||||
Total revenue | $ | 69,445 | $ | 49,529 | $ | 200,771 | $ | 142,090 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Product revenue | $ | 94,029 | $ | 69,419 | $ | 257,521 | $ | 200,701 | ||||||||
Royalty and other income | 31 | 26 | 91 | 70 | ||||||||||||
Total revenue | $ | 94,060 | $ | 69,445 | $ | 257,612 | $ | 200,771 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
GE Healthcare | $ | 5,010 | $ | 7,743 | $ | 23,759 | $ | 22,253 | ||||||||
MilliporeSigma | $ | 9,458 | $ | 8,791 | $ | 28,354 | $ | 24,181 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Cytiva (formerly GE Healthcare) | N/A | N/A | N/A | $ | 23,759 | |||||||||||
MilliporeSigma | N/A | $ | 9,458 | $ | 29,387 | $ | 28,354 |
2019 | ||||
Balances from contracts with customers only: | ||||
Accounts receivable | $ | 41,968 | ||
Deferred revenue (included in accrued liabilities in the consolidated balance sheets) | 4,286 | |||
Revenue recognized during the nine | ||||
The beginning deferred revenue balance | $ | 2,768 | ||
Changes in pricing related to products or services satisfied in previous periods | — |
2020 | ||||
Balances from contracts with customers only: | ||||
Accounts receivable | $ | 55,830 | ||
Deferred revenue (included in accrued liabilities in the consolidated balance sheets) | $ | 10,141 | ||
Revenue recognized during the nine-month period ended September 30, 2020 relating to: | ||||
The beginning deferred revenue balance | $ | 3,133 | ||
Changes in pricing related to products or services satisfied in previous periods | $ | 0 |
5. | Credit Losses |
As of September 30, 2019 | Amount | |||
2019 (remaining three months) | $ | 920 | ||
2020 | 4,966 | |||
2021 | 5,388 | |||
2022 | 4,438 | |||
2023 | 3,517 | |||
2024 and thereafter | 17,530 | |||
Total future minimum lease payments | 36,759 | |||
Less : amount of lease payment representing interest | 7,659 | |||
Total operating lease liabilities | $ | 29,100 | ||
2020 | ||||
Balance at January 1, 2020 | $ | (525 | ) | |
Current period change for expected credit losses | (133 | ) | ||
Balance at March 31, 2020 | (658 | ) | ||
Current period change for write-offs | 37 | |||
Current period change for expected credit losses | 83 | |||
Balance at June 30, 2020 | (538 | ) | ||
Current period change for expected credit losses | (83 | ) | ||
Balance at September 30, 2020 | $ | (621 | ) | |
As of September 30, 2019 | ||||
Operating lease liability | $ | 3,044 | ||
Operating lease liability, long-term | 26,056 | |||
Minimum operating lease payments | $ | 29,100 | ||
Three Months Ended | Nine Months Ended | |||||||
Lease Cost | September 30, 2019 | September 30, 2019 | ||||||
(Amounts in thousands) | ||||||||
Operating lease cost | $ | 1,207 | $ | 3,119 | ||||
Variable operating lease cost | 242 | 902 | ||||||
Lease cost | $ | 1,449 | $ | 4,021 | ||||
Nine Months Ended | ||||
September 30, 2019 | ||||
Operating cash flows from operating leases | $ | (2,962 | ) |
Goodwill and Intangible Assets | ||||
For the Years Ended December 31, | Amount | |||
2019 | $ | 4,021 | ||
2020 | 3,599 | |||
2021 | 3,263 | |||
2022 | 2,213 | |||
2023 | 1,316 | |||
2024 and thereafter | 3,622 | |||
Minimum operating lease payments | $ | 18,034 | ||
Balance as of December 31, 2018 | $ | 326,735 | ||
Cumulative translation adjustment | (793 | ) | ||
Acquisition of C Technologies, Inc. | 142,903 | |||
Balance as of September 30, 2019 | $ | 468,845 | ||
Balance as of December 31, 2019 | $ | 468,413 | ||
Acquisition of Engineered Molding Technology | 12,573 | |||
Goodwill adjustment related to C Technologies, Inc. | 293 | |||
Cumulative translation adjustment | 764 | |||
Balance as of September 30, 2020 | $ | 482,043 | ||
September 30, 2019 | ||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted Average Useful Life (in years) | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||
Technology — developed | $ | 82,088 | $ | (8,533 | ) | $ | 73,555 | 19 | ||||||||
Patents | 240 | (240 | ) | — | 8 | |||||||||||
Customer relationships | 160,467 | (22,769 | ) | 137,698 | 15 | |||||||||||
Trademarks | 3,751 | (286 | ) | 3,465 | 20 | |||||||||||
Other intangibles | 1,696 | (825 | ) | 871 | 3 | |||||||||||
Total finite-lived intangible assets | 248,242 | (32,653 | ) | 215,589 | 16 | |||||||||||
Indefinite-lived intangible asset: | ||||||||||||||||
Trademarks | 700 | — | 700 | — | ||||||||||||
Total intangible assets | $ | 248,942 | $ | (32,653 | ) | $ | 216,289 | |||||||||
September 30, 2020 | ||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted Average Useful Life (in years) | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||
Technology - developed | $ | 85,196 | $ | (13,054 | ) | $ | 72,142 | 18 | ||||||||
Patents | 240 | (240 | ) | — | 8 | |||||||||||
Customer relationships | 172,325 | (33,861 | ) | 138,464 | 15 | |||||||||||
Trademarks | 4,072 | (480 | ) | 3,592 | 19 | |||||||||||
Other intangibles | 1,750 | (1,263 | ) | 487 | 3 | |||||||||||
Total finite-lived intangible assets | 263,583 | (48,898 | ) | 214,685 | 16 | |||||||||||
Indefinite-lived intangible asset: | ||||||||||||||||
Trademarks | 700 | — | 700 | — | ||||||||||||
Total intangible assets | $ | 264,283 | $ | (48,898 | ) | $ | 215,385 | |||||||||
December 31, 2018 | ||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted Average Useful Life (in years) | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||
Technology — developed | $ | 53,315 | $ | (5,942 | ) | $ | 47,373 | 19 | ||||||||
Patents | 240 | (240 | ) | — | 8 | |||||||||||
Customer relationships | 101,460 | (16,609 | ) | 84,851 | 14 | |||||||||||
Trademarks | 2,160 | (159 | ) | 2,001 | 20 | |||||||||||
Other intangibles | 1,061 | (548 | ) | 513 | 3 | |||||||||||
Total finite-lived intangible assets | 158,236 | (23,498 | ) | 134,738 | 16 | |||||||||||
Indefinite-lived intangible asset: | ||||||||||||||||
Trademarks | 700 | — | 700 | — | ||||||||||||
Total intangible assets | $ | 158,936 | $ | (23,498 | ) | $ | 135,438 | |||||||||
December 31, 2019 | ||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted Average Useful Life (in years) | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||
Technology - developed | $ | 82,169 | $ | (9,669 | ) | $ | 72,500 | 19 | ||||||||
Patents | 240 | (240 | ) | — | 8 | |||||||||||
Customer relationships | 160,825 | (25,642 | ) | 135,183 | 15 | |||||||||||
Trademarks | 3,752 | (333 | ) | 3,419 | 20 | |||||||||||
Other intangibles | 1,697 | (947 | ) | 750 | 3 | |||||||||||
Total finite-lived intangible assets | 248,683 | (36,831 | ) | 211,852 | 16 | |||||||||||
Indefinite-lived intangible asset: | ||||||||||||||||
Trademarks | 700 | — | 700 | — | ||||||||||||
Total intangible assets | $ | 249,383 | $ | (36,831 | ) | $ | 212,552 | |||||||||
Estimated | ||||
Amortization | ||||
Nine Months Ended September 30, | Expense | |||
2019 (remaining three months) | $ | 3,918 | ||
2020 | 15,129 | |||
2021 | 14,633 | |||
2022 | 14,631 | |||
2023 | 14,631 | |||
2024 and thereafter | 152,647 | |||
Total | $ | 215,589 | ||
For the Nine Months Ended September 30, | Estimated Amortization Expense | |||
2020 (remaining three months) | $ | 3,964 | ||
2021 | 15,855 | |||
2022 | 15,853 | |||
2023 | 15,749 | |||
2024 | 15,298 | |||
2025 and thereafter | 147,966 | |||
Total | $ | 214,685 | ||
7. | Consolidated Balance Sheet Detail |
As of | ||||||||
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(Amounts in thousands) | ||||||||
Raw materials | $ | 29,197 | $ | 24,937 | ||||
Work-in-process | 5,438 | 5,185 | ||||||
Finished products | 16,944 | 12,141 | ||||||
Total inventories, net | $ | 51,579 | $ | 42,263 | ||||
As of | ||||||||
September 30, 2020 | December 31, 2019 | |||||||
(Amounts in thousands) | ||||||||
Raw materials | $ | 42,201 | $ | 29,328 | ||||
Work-in-process | 6,192 | 8,360 | ||||||
Finished products | 30,138 | 17,144 | ||||||
Total inventories, net | $ | 78,531 | $ | 54,832 | ||||
As of | ||||||||
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(Amounts in thousands) | ||||||||
Land | $ | 1,023 | $ | 1,023 | ||||
Buildings | 764 | 764 | ||||||
Leasehold improvements | 22,953 | 16,259 | ||||||
Equipment | 31,144 | 24,092 | ||||||
Furniture and fixtures | 14,214 | 5,448 | ||||||
Construction in progress (1) | 5,721 | 12,906 | ||||||
Other | 50 | — | ||||||
Total property, plant and equipment | 75,869 | 60,492 | ||||||
Less—Accumulated depreciation | (32,835 | ) | (28,312 | ) | ||||
Total property, plant and equipment, net | $ | 43,034 | $ | 32,180 | ||||
As of | ||||||||
September 30, 2020 | December 31, 2019 | |||||||
(Amounts in thousands) | ||||||||
Land | $ | 1,023 | $ | 1,023 | ||||
Buildings | 989 | 764 | ||||||
Leasehold improvements | 29,776 | 23,905 | ||||||
Equipment | 39,094 | 36,257 | ||||||
Furniture, fixtures and office equipment | 8,055 | 6,312 | ||||||
Computer hardware and software | 14,468 | 8,810 | ||||||
Construction in progress | 6,416 | 6,707 | ||||||
Other | 348 | 56 | ||||||
Total property, plant and equipment | 100,169 | 83,834 | ||||||
Less - Accumulated depreciation | (44,814 | ) | (35,379 | ) | ||||
Total property, plant and equipment, net | $ | 55,355 | $ | 48,455 | ||||
As of | ||||||||
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(Amounts in thousands) | ||||||||
Employee compensation | $ | 14,451 | $ | 9,953 | ||||
Taxes | 3,071 | 1,024 | ||||||
Royalty and license fees | 707 | 242 | ||||||
Warranties | 1,255 | 546 | ||||||
Professional fees | 715 | 942 | ||||||
Deferred revenue | 4,286 | 1,290 | ||||||
Other | 1,285 | 1,868 | ||||||
Total accrued liabilities | $ | 25,770 | $ | 15,865 | ||||
As of | ||||||||
September 30, 2020 | December 31, 2019 | |||||||
(Amounts in thousands) | ||||||||
Employee compensation | $ | 14,652 | $ | 19,850 | ||||
Taxes | 2,759 | 3,874 | ||||||
Royalty and license fees | 1,000 | 123 | ||||||
Warranties | 737 | 1,500 | ||||||
Professional fees | 1,745 | 1,081 | ||||||
Deferred revenue | 10,141 | 5,005 | ||||||
Other | 1,007 | 1,898 | ||||||
Total accrued liabilities | $ | 32,041 | $ | 33,331 | ||||
8. | Convertible Senior Notes |
September 30, | ||||
2019 | ||||
0.375% Convertible Senior Notes due July 15, 2024 | $ | 287,500 | ||
Less: u namortized debt discount | (50,247 | ) | ||
Less: u namortized debt issuance costs | (7,071 | ) | ||
Total debt | 230,182 | |||
Less: c urrent portion | — | |||
Net carrying amount | $ | 230,182 | ||
September 30, | ||||
2019 | ||||
Proceeds allocated to the conversion feature | $ | 52,062 | ||
Less: transaction costs allocated to the conversion feature | (1,621 | ) | ||
Less: deferred taxes | ( 12,353 | ) | ||
Net carrying value | $ | 38,088 | ||
As of | ||||||||
September 30, 2020 | December 31, 2019 | |||||||
(Amounts in thousands) | ||||||||
0.375% convertible senior notes due 2024: | ||||||||
Principal amount | $ | 287,500 | $ | 287,500 | ||||
Less: unamortized debt discount | (40,764 | ) | (47,921 | ) | ||||
Less: unamortized debt issuance costs | (5,794 | ) | (6,812 | ) | ||||
Total debt | 240,942 | 232,767 | ||||||
Less: current portion | — | — | ||||||
Net carrying amount | $ | 240,942 | $ | 232,767 | ||||
9. | Stockholders’ Equity |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Cost of product revenue | $ | 375 | $ | 277 | $ | 992 | $ | 777 | ||||||||
Research and development | 351 | 253 | 992 | 650 | ||||||||||||
Selling, general and administrative | 2,449 | 2,249 | 7,475 | 6,245 | ||||||||||||
Total stock-based compensation | $ | 3,175 | $ | 2,779 | $ | 9,459 | $ | 7,672 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Cost of product revenue | $ | 563 | $ | 375 | $ | 1,421 | $ | 992 | ||||||||
Research and development | 326 | 351 | 1,092 | 992 | ||||||||||||
Selling, general and administrative | 3,336 | 2,449 | 9,979 | 7,475 | ||||||||||||
Total stock-based compensation | $ | 4,225 | $ | 3,175 | $ | 12,492 | $ | 9,459 | ||||||||
Shares | Weighted average exercise price | Weighted- Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value (in Thousands) | |||||||||||||
Options outstanding at December 31, 2018 | 998,226 | $ | 27.54 | |||||||||||||
Granted | 44,996 | $ | 61.98 | |||||||||||||
Exercised | (83,306 | ) | $ | 12.70 | ||||||||||||
Forfeited/expired/cancelled | — | $ | — | |||||||||||||
Options outstanding at September 30, 2019 | 959,916 | $ | 30.44 | 6.93 | $ | 44,396 | ||||||||||
Options exercisable at September 30, 2019 | 503,934 | $ | 24.18 | 5.64 | $ | 26,464 | ||||||||||
Vested and expected to vest at September 30, 2019 (1) | 923,962 | 6.87 | $ | 42,961 | ||||||||||||
Shares | Weighted average exercise price | Weighted- Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value (in Thousands) | |||||||||||||
Options outstanding at December 31, 2019 | 957,559 | $ | 30.81 | |||||||||||||
Granted | 69,698 | $ | 104.61 | |||||||||||||
Exercised | (303,343 | ) | $ | 23.37 | ||||||||||||
Forfeited/expired/cancelled | — | $ | — | |||||||||||||
Options outstanding at September 30, 2020 | 723,914 | $ | 41.03 | 7.02 | $ | 77,102 | ||||||||||
Options exercisable at September 30, 2020 | 339,191 | $ | 31.00 | 6.05 | $ | 39,528 | ||||||||||
Vested and expected to vest at September 30, 2020 (1) | 693,689 | 6.98 | $ | 74,178 | ||||||||||||
(1) | Represents the number of vested options as of September 30, non-executive level employees and 3% for awards granted to executive level employees. |
Shares | Weighted- Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value (in Thousands) | ||||||||||
Unvested at December 31, 2018 | 707,413 | |||||||||||
Awarded | 297,086 | |||||||||||
Vested | (228,103 | ) | ||||||||||
Forfeited/expired/cancelled | (36,183 | ) | ||||||||||
Unvested at September 30, 2019 | 740,213 | 3.85 | $ | 56,767 | ||||||||
Shares | Weighted- Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value (in Thousands) | ||||||||||
Unvested at December 31, 2019 | 734,984 | |||||||||||
Awarded | 187,942 | |||||||||||
Vested | (225,204 | ) | ||||||||||
Forfeited/expired/cancelled | (22,155 | ) | ||||||||||
Unvested at September 30, 2020 | 675,567 | 3.39 | $ | 99,673 | ||||||||
Vested and expected to vest at September 30, 2020 (1) | 650,436 | 3.20 | $ | 95,965 | ||||||||
(1) | Represents the number of vested stock units as of September 30, 2020 plus the number of unvested stock units expected to vest as of September 30, 2020 based on the unvested outstanding stock units at September 30, 2020 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive level employees and 3% for awards granted to executive level employees. |
10. | Commitments and Contingencies |
11. | Accumulated Other Comprehensive Loss |
Foreign Currency Translation Adjustment | ||||
Balance as of December 31 , 2018 | $ | (11,893 | ) | |
Other comprehensive loss | (9,901 | ) | ||
Balance as of September 30, 2019 | $ | (21,794 | ) | |
Foreign | ||||
Currency | ||||
Translation | ||||
Adjustment | ||||
Balance as of December 31, 2019 | $ | (15,027 | ) | |
Other comprehensive income | 5,304 | |||
Balance as of September 30, 2020 | $ | (9,723 | ) | |
12. | Income Taxes |
Jurisdiction | Fiscal Years Subject to Examination | |||
United | ||||
Sweden | ||||
Germany | ||||
Netherlands |
13. | Earnings Per Share |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||
Net income | $ | 1,659 | $ | 4,794 | $ | 17,807 | $ | 10,979 | ||||||||
Weighted average shares used in computing net income per share—basic | 50,852 | 43,822 | 47,087 | 43,729 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Stock options and restricted stock awards | 957 | 651 | 843 | 511 | ||||||||||||
Convertible senior notes | — | 1,355 | — | 892 | ||||||||||||
Dilutive potential common shares | 957 | 2,006 | 843 | 1,403 | ||||||||||||
Weighted average shares used in computing net income per share—diluted | 51,809 | 45,828 | 47,930 | 45,132 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.03 | $ | 0.11 | $ | 0.38 | $ | 0.25 | ||||||||
Diluted | $ | 0.03 | $ | 0.10 | $ | 0.37 | $ | 0.24 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||
Net income | $ | 14,552 | $ | 1,659 | $ | 40,228 | $ | 17,807 | ||||||||
Weighted average shares used in computing net income per share - diluted | 52,545 | 50,852 | 52,341 | 47,087 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Stock options and restricted stock awards | 916 | 957 | 951 | 843 | ||||||||||||
Dilutive effect of unvested performance stock units | 8 | — | 8 | — | ||||||||||||
Dilutive potential common shares | 924 | 957 | 959 | 843 | ||||||||||||
Weighted average shares used in computing net income per share - diluted | 53,469 | 51,809 | 53,300 | 47,930 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.28 | $ | 0.03 | $ | 0.77 | $ | 0.38 | ||||||||
Diluted | $ | 0.27 | $ | 0.03 | $ | 0.75 | $ | 0.37 | ||||||||
14. | Related Party Transactions |
15. | Segment Reporting |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue by customers’ geographic locations: | ||||||||||||||||
North America | 54 | % | 49 | % | 51 | % | 47 | % | ||||||||
Europe | 33 | % | 39 | % | 37 | % | 41 | % | ||||||||
APAC | 13 | % | 12 | % | 12 | % | 12 | % | ||||||||
Other | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Total revenue | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue by customers’ geographic locations: | ||||||||||||||||
North America | 50 | % | 54 | % | 48 | % | 51 | % | ||||||||
Europe | 36 | % | 33 | % | 38 | % | 37 | % | ||||||||
APAC /Other | 14 | % | 13 | % | 14 | % | 12 | % | ||||||||
Total revenue | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
GE Healthcare | N/A | 16 | % | 12 | % | 16 | % | |||||||||
MilliporeSigma | 14 | % | 18 | % | 14 | % | 17 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cytiva (formerly GE Healthcare) | N/A | N/A | N/A | 12 | % | |||||||||||
MilliporeSigma | N/A | 14 | % | 11 | % | 14 | % |
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
GE Healthcare | 10 | % | 17 | % | ||||
MilliporeSigma | N/A | 11 | % |
16. | Subsequent Events |
Three Months Ended September 30, | Increase/ (Decrease) | Nine Months Ended September 30, | Increase/ (Decrease) | |||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||||
(Amounts in thousands, except for percentage data) | ||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Products | $ | 69,419 | $ | 49,500 | $ | 19,919 | 40.2 | % | $ | 200,701 | $ | 142,042 | $ | 58,659 | 41.3 | % | ||||||||||||||||
Royalty and other | 26 | 29 | (3 | ) | (10.3 | %) | 70 | 48 | 22 | 45.8 | % | |||||||||||||||||||||
Total revenue | $ | 69,445 | $ | 49,529 | $ | 19,916 | 40.2 | % | $ | 200,771 | $ | 142,090 | $ | 58,681 | 41.3 | % | ||||||||||||||||
Three Months Ended September 30, | Increase/(Decrease) | Nine Months Ended September 30, | Increase/(Decrease) | |||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||
(Amounts in thousands, except for percentage data) | ||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Products | $ | 94,029 | $ | 69,419 | $ | 24,610 | 35.5 | % | $ | 257,521 | $ | 200,701 | $ | 56,820 | 28.3 | % | ||||||||||||||||
Royalty and other | 31 | 26 | 5 | 19.2 | % | 91 | 70 | 21 | 30.0 | % | ||||||||||||||||||||||
Total revenue | $ | 94,060 | $ | 69,445 | $ | 24,615 | 35.4 | % | $ | 257,612 | $ | 200,771 | $ | 56,841 | 28.3 | % | ||||||||||||||||
Three Months Ended September 30, | Increase/ (Decrease) | Nine Months Ended September 30, | Increase/ (Decrease) | |||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||||
(Amounts in thousands, except for percentage data) | ||||||||||||||||||||||||||||||||
Cost of product revenue | $ | 31,425 | $ | 22,183 | $ | 9,242 | 41.7 | % | $ | 88,978 | $ | 62,939 | $ | 26,039 | 41.4 | % | ||||||||||||||||
Research and development | 5,427 | 3,601 | 1,826 | 50.7 | % | 14,278 | 12,669 | 1,609 | 12.7 | % | ||||||||||||||||||||||
Selling, general and administrative | 24,629 | 15,859 | 8,770 | 55.3 | % | 67,326 | 48,347 | 18,979 | 39.3 | % | ||||||||||||||||||||||
Total costs and operating expenses | $ | 61,481 | $ | 41,643 | $ | 19,838 | 47.6 | % | $ | 170,582 | $ | 123,955 | $ | 46,627 | 37.6 | % | ||||||||||||||||
Three Months Ended September 30, | Increase/(Decrease) | Nine Months Ended September 30, | Increase/(Decrease) | |||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||
(Amounts in thousands, except for percentage data) | ||||||||||||||||||||||||||||||||
Cost of product revenue | $ | 39,626 | $ | 31,425 | $ | 8,201 | 26.1 | % | $ | 108,471 | $ | 88,978 | $ | 19,493 | 21.9 | % | ||||||||||||||||
Research and development | 4,422 | 5,427 | (1,005 | ) | (18.5 | %) | 13,460 | 14,278 | (818 | ) | (5.7 | %) | ||||||||||||||||||||
Selling, general and administrative | 29,051 | 24,629 | 4,422 | 18.0 | % | 83,277 | 67,326 | 15,951 | 23.7 | % | ||||||||||||||||||||||
Total costs and operating expenses | $ | 73,099 | $ | 61,481 | $ | 11,618 | 18.9 | % | $ | 205,208 | $ | 170,582 | $ | 34,626 | 20.3 | % | ||||||||||||||||
Three Months Ended September 30, | Increase/ (Decrease) | Nine Months Ended September 30, | Increase/ (Decrease) | |||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||||
(Amounts in thousands, except for percentage data) | ||||||||||||||||||||||||||||||||
Investment income | $ | 1,898 | $ | 558 | $ | 1,340 | 240.1 | % | $ | 3,616 | $ | 1,251 | $ | 2,365 | 189.0 | % | ||||||||||||||||
Loss on extinguishment of debt | (5,650 | ) | — | (5,650 | ) | 100.0 | % | (5,650 | ) | — | (5,650 | ) | 100.0 | % | ||||||||||||||||||
Interest expense | (2,857 | ) | (1,687 | ) | (1,170 | ) | 69.4 | % | (6,326 | ) | (5,008 | ) | (1,318 | ) | 26.3 | % | ||||||||||||||||
Other income (expenses) | 316 | (134 | ) | 450 | (335.8 | %) | (23 | ) | 187 | (210 | ) | (112.3 | %) | |||||||||||||||||||
Total other expense, net | $ | (6,293 | ) | $ | (1,263 | ) | $ | (5,030 | ) | 398.3 | % | $ | (8,383 | ) | $ | (3,570 | ) | $ | (4,813 | ) | 134.8. | % | ||||||||||
Three Months Ended September 30, | Increase/(Decrease) | Nine Months Ended September 30, | Increase/(Decrease) | |||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||
(Amounts in thousands, except for percentage data) | ||||||||||||||||||||||||||||||||
Investment income | $ | 82 | $ | 1,898 | $ | (1,816 | ) | (95.7 | %) | $ | 1,699 | $ | 3,616 | $ | (1,917 | ) | (53.0 | %) | ||||||||||||||
Loss on extinguishment of debt | — | (5,650 | ) | 5,650 | (100.0 | %) | — | (5,650 | ) | 5,650 | (100.0 | %) | ||||||||||||||||||||
Interest expense | (3,052 | ) | (2,857 | ) | (195 | ) | 6.8 | % | (9,032 | ) | (6,326 | ) | (2,706 | ) | 42.8 | % | ||||||||||||||||
Other expenses | (248 | ) | 316 | (564 | ) | (178.5 | %) | (632 | ) | (23 | ) | (609 | ) | 2647.8 | % | |||||||||||||||||
Total other expense, net | $ | (3,218 | ) | $ | (6,293 | ) | $ | 3,075 | (48.9 | %) | $ | (7,965 | ) | $ | (8,383 | ) | $ | 418 | (5.0 | %) | ||||||||||||
Three Months Ended September 30, | Increase/ (Decrease) | Nine Months Ended September 30, | Increase/ (Decrease) | |||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||||
(Amounts in thousands, except for percentage data) | ||||||||||||||||||||||||||||||||
Income tax provision | $ | 12 | $ | 1,829 | $ | (1,817 | ) | (99.3 | %) | $ | 3,999 | $ | 3,586 | $ | 413 | 11.5 | % | |||||||||||||||
Effective tax rate | 0.7 | % | 27.6 | % | 18.3 | % | 24.6 | % |
Three Months Ended September 30, | Increase/(Decrease) | Nine Months Ended September 30, | Increase/(Decrease) | |||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||
(Amounts in thousands, except for percentage data) | ||||||||||||||||||||||||||||||||
Income tax provision | $ | 3,191 | $ | 12 | $ | 3,179 | 26491.7 | % | $ | 4,211 | $ | 3,999 | $ | 212 | 5.3 | % | ||||||||||||||||
Effective tax rate | 18.0 | % | 0.7 | % | 9.5 | % | 18.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
GAAP income from operations | $ | 7,964 | $ | 7,886 | $ | 30,189 | $ | 18,135 | ||||||||
Non-GAAP adjustments to income from operations: | ||||||||||||||||
Acquisition and integration costs | 2,953 | 805 | 9,573 | 2,313 | ||||||||||||
Intangible amortization | 3,900 | 2,608 | 9,562 | 7,906 | ||||||||||||
Inventory step-up charges | 314 | — | 1,483 | — | ||||||||||||
Non-GAAP adjusted income from operations | $ | 15,131 | $ | 11,299 | $ | 50,807 | $ | 28,354 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
GAAP income from operations | $ | 20,961 | $ | 7,964 | $ | 52,404 | $ | 30,189 | ||||||||
Non-GAAP adjustments to income from operations: | ||||||||||||||||
Acquisition and integration costs | 1,849 | 2,953 | 6,536 | 9,573 | ||||||||||||
Intangible amortization | 3,925 | 3,900 | 11,677 | 9,562 | ||||||||||||
Inventory step-up charges | 144 | 314 | 144 | 1,483 | ||||||||||||
Non-GAAP adjusted income from operations | $ | 26,879 | $ | 15,131 | $ | 70,761 | $ | 50,807 | ||||||||
Three Months Ended September 30, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Amount | Fully Diluted Earnings per Share | Amount | Fully Diluted Earnings per Share | |||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||
GAAP net income | $ | 1,659 | $ | 0.03 | $ | 4,794 | $ | 0.10 | ||||||||
Non-GAAP adjustments to net income: | ||||||||||||||||
Acquisition and integration costs | 2,953 | 0.06 | 805 | 0.02 | ||||||||||||
Intangible amortization | 3,900 | 0.08 | 2,608 | 0.06 | ||||||||||||
Loss on extinguishment of debt | 5,650 | 0.11 | — | — | ||||||||||||
Inventory step-up charges | 314 | 0.01 | — | — | ||||||||||||
Non-cash interest expense | 2,631 | 0.05 | 1,071 | 0.02 | ||||||||||||
Tax effect of intangible amortization and acquisition costs | (3,781 | ) | (0.07 | ) | (1,063 | ) | (0.02 | ) | ||||||||
Non-GAAP adjusted net income | $ | 13,326 | $ | 0.26 | $ | 8,215 | $ | 0.18 | ||||||||
Three Months Ended September 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
Amount | Fully Diluted Earnings per Share | Amount | Fully Diluted Earnings per Share | |||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||
GAAP net income | $ | 14,552 | $ | 0.27 | $ | 1,659 | $ | 0.03 | ||||||||
Non-GAAP adjustments to net income: | ||||||||||||||||
Acquisition and integration costs | 1,849 | 0.03 | 2,953 | 0.06 | ||||||||||||
Intangible amortization | 3,925 | 0.07 | 3,900 | 0.08 | ||||||||||||
Loss on extinguishment of debt | — | — | 5,650 | 0.11 | ||||||||||||
Inventory step-up charges | 144 | 0.00 | 314 | 0.01 | ||||||||||||
Non-cash interest expense | 2,759 | 0.05 | 2,631 | 0.05 | ||||||||||||
Tax effect of intangible amortization and acquisition costs | (2,072 | ) | (0.04 | ) | (3,781 | ) | (0.07 | ) | ||||||||
Non-GAAP adjusted net income | $ | 21,157 | $ | 0.40 | $ | 13,326 | $ | 0.26 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Amount | Fully Diluted Earnings per Share | Amount | Fully Diluted Earnings per Share | |||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||
GAAP net income | $ | 17,807 | $ | 0.37 | $ | 10,979 | $ | 0.24 | ||||||||
Non-GAAP adjustments to net income: | ||||||||||||||||
Acquisition and integration costs | 10,074 | 0.21 | 2,313 | 0.05 | ||||||||||||
Intangible amortization | 9,562 | 0.20 | 7,906 | 0.18 | ||||||||||||
Inventory step-up charges | 1,483 | 0.03 | — | — | ||||||||||||
Loss on extinguishment of debt | 5,650 | 0.12 | — | — | ||||||||||||
Non-cash interest expense | 4,863 | 0.10 | 3,160 | 0.07 | ||||||||||||
Tax effect of intangible amortization and acquisition costs | (7,742 | ) | (0.16 | ) | (3,171 | ) | (0.07 | ) | ||||||||
Non-GAAP adjusted net income | $ | 41,697 | $ | 0.87 | $ | 21,187 | $ | 0.47 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
Amount | Fully Diluted Earnings per Share | Amount | Fully Diluted Earnings per Share | |||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||
GAAP net income | $ | 40,228 | $ | 0.75 | $ | 17,807 | $ | 0.37 | ||||||||
Non-GAAP adjustments to net income: | ||||||||||||||||
Acquisition and integration costs | 6,536 | 0.12 | 10,074 | 0.21 | ||||||||||||
Intangible amortization | 11,677 | 0.22 | 9,562 | 0.20 | ||||||||||||
Inventory step-up charges | 144 | 0.00 | 1,483 | 0.03 | ||||||||||||
Loss on extinguishment of debt | — | — | 5,650 | 0.12 | ||||||||||||
Non-cash interest expense | 8,174 | 0.15 | 4,863 | 0.10 | ||||||||||||
Tax effect of intangible amortization and acquisition costs | (6,334 | ) | (0.12 | ) | (7,742 | ) | (0.16 | ) | ||||||||
Non-GAAP adjusted net income | $ | 60,425 | $ | 1.13 | $ | 41,697 | $ | 0.87 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
GAAP net income | $ | 1,659 | $ | 4,794 | $ | 17,807 | $ | 10,979 | ||||||||
Non-GAAP EBITDA adjustments to net income: | ||||||||||||||||
Investment income | (1,898 | ) | (558 | ) | (3,616 | ) | (1,251 | ) | ||||||||
Interest expense | 2,857 | 1,687 | 6,326 | 5,008 | ||||||||||||
Tax provision | 12 | 1,829 | 3,999 | 3,586 | ||||||||||||
Depreciation | 1,810 | 1,273 | 5,147 | 3,871 | ||||||||||||
Amortization | 3,928 | 2,608 | 9,644 | 7,906 | ||||||||||||
EBITDA | 8,368 | 11,633 | 39,307 | 30,099 | ||||||||||||
Other non-GAAP adjustments: | ||||||||||||||||
Acquisition and integration costs | 2,953 | 805 | 10,074 | 2,313 | ||||||||||||
Loss on extinguishment of debt | 5,650 | — | 5,650 | — | ||||||||||||
Inventory step-up charges | 314 | — | 1,483 | — | ||||||||||||
Adjusted EBITDA | $ | 17,285 | $ | 12,438 | $ | 56,514 | $ | 32,412 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
GAAP net income | $ | 14,552 | $ | 1,659 | $ | 40,228 | $ | 17,807 | ||||||||
Non-GAAP EBITDA adjustments to net income: | ||||||||||||||||
Investment income | (82 | ) | (1,898 | ) | (1,699 | ) | (3,616 | ) | ||||||||
Interest expense | 3,052 | 2,857 | 9,032 | 6,326 | ||||||||||||
Tax provision | 3,191 | 12 | 4,211 | 3,999 | ||||||||||||
Depreciation | 2,757 | 1,810 | 7,820 | 5,147 | ||||||||||||
Amortization | 3,953 | 3,928 | 11,760 | 9,644 | ||||||||||||
EBITDA | 27,423 | 8,368 | 71,352 | 39,307 | ||||||||||||
Other non-GAAP adjustments: | ||||||||||||||||
Acquisition and integration costs | 1,849 | 2,953 | 6,536 | 10,074 | ||||||||||||
Loss on extinguishment of debt | — | 5,650 | — | 5,650 | ||||||||||||
Inventory step-up charges | 144 | 314 | 144 | 1,483 | ||||||||||||
Adjusted EBITDA | $ | 29,416 | $ | 17,285 | $ | 78,032 | $ | 56,514 | ||||||||
Nine Months Ended September 30, | Increase/(Decrease) $ Change | |||||||||||
2019 | 2018 | |||||||||||
(Amounts in thousands) | ||||||||||||
Operating activities | $ | 49,542 | $ | 27,215 | $ | 22,327 | ||||||
Investing activities | (198,197 | ) | (8,580 | ) | (189,617 | ) | ||||||
Financing activities | 485,047 | 2,363 | 482,684 | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7,785 | ) | (4,453 | ) | (3,332 | ) | ||||||
Net increase in cash, cash equivalents and restricted cash | $ | 328,607 | $ | 16,545 | $ | 312,062 | ||||||
Nine Months Ended September 30, | Increase/(Decrease) | |||||||||||
2020 | 2019 | $ Change | ||||||||||
(Amounts in thousands) | ||||||||||||
Operating activities | $ | 47,754 | $ | 49,542 | $ | (1,788 | ) | |||||
Investing activities | (43,097 | ) | (198,197 | ) | 155,100 | |||||||
Financing activities | 7,078 | 485,047 | (477,969 | ) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 4,160 | (7,785 | ) | 11,945 | ||||||||
Net increase in cash, cash equivalents and restricted cash | $ | 15,895 | $ | 328,607 | $ | (312,712 | ) | |||||
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibit Number | Document Description | |||
3.1 | ||||
3.2 | ||||
3.3 | ||||
31.1 + | Rule 13a-14(a)/15d-14(a) Certification. | |||
31.2 + | Rule 13a-14(a)/15d-14(a) Certification. | |||
101.INS+ | ||||
101.SCH+ | ||||
Inline XBRL Taxonomy Extension Schema Document. | ||||
101.CAL+ | ||||
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF+ | ||||
Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||
101.LAB+ | ||||
Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE+ | ||||
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104+ | ||||
Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*). |
# | Management contract or compensatory plan or arrangement. |
+ | Filed herewith. |
* | Furnished herewith. |
REPLIGEN CORPORATION | ||||||
Date: November 5, 2020 | By: | |||||
Tony J. Hunt | ||||||
President and Chief Executive Officer (Principal executive officer) Repligen Corporation | ||||||
Repligen Corporation | ||||||
Date: November 5, 2020 | By: | /S/ JON SNODGRES | ||||
Jon Snodgres | ||||||
Chief Financial Officer | ||||||
(Principal financial officer) | ||||||
Repligen Corporation |