☒ | 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 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, no par value | VIVO | NASDAQ Global Select Market |
Large accelerated filer | Accelerated filer | |||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Class | Outstanding | |
Common Stock, no par value |
Page(s) | ||||||
PART I. | ||||||
Item 1. | ||||||
1 | ||||||
2 | ||||||
3 | ||||||
4- 5 | ||||||
6 | ||||||
7- 20 | ||||||
20- | ||||||
Item | 29 | |||||
Item | 29 | |||||
PART II. | ||||||
Item 1. | 29 | |||||
Item 1A. | 29 | |||||
Item 6. | 31 | |||||
32 |
Three Months Ended | ||||||||
December 31, | ||||||||
2019 | 2018 | |||||||
NET REVENUES | $ | 47,421 | $ | |||||
COST OF SALES | 19,981 | 19,908 | ||||||
GROSS PROFIT | 27,440 | 31,572 | ||||||
OPERATING EXPENSES | ||||||||
Research and development | 4,824 | 3,967 | ||||||
Selling and marketing | 6,684 | 7,563 | ||||||
General and administrative | 8,756 | 8,902 | ||||||
Change in fair value of contingent consideration obligation | 1,187 | — | ||||||
Restructuring costs | 275 | — | ||||||
Selected legal costs | 320 | 589 | ||||||
Total operating expenses | 22,046 | 21,021 | ||||||
OPERATING INCOME | 5,394 | 10,551 | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Interest income | 111 | 149 | ||||||
Interest expense | (767 | ) | (363 | ) | ||||
Other, net | (712 | ) | 139 | |||||
Total other expense | (1,368 | ) | (75 | ) | ||||
EARNINGS BEFORE INCOME TAXES | 4,026 | 10,476 | ||||||
INCOME TAX PROVISION | 1,199 | 2,370 | ||||||
NET EARNINGS | $ | 2,827 | $ | 8,106 | ||||
BASIC EARNINGS PER COMMON SHARE | $ | 0.07 | $ | 0.19 | ||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.07 | $ | 0.19 | ||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 42,789 | 42,446 | ||||||
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS | 149 | 459 | ||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED | 42,938 | 42,905 | ||||||
ANTI-DILUTIVE SECURITIES: | ||||||||
Common share options and restricted share units | 1,407 | 684 | ||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | — | $ | 0.125 |
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
NET REVENUES | $ | 57,296 | $ | 50,248 | $ | 104,717 | $ | 101,728 | ||||||||
COST OF SALES | 22,842 | 20,910 | 42,823 | 40,818 | ||||||||||||
GROSS PROFIT | 34,454 | 29,338 | 61,894 | 60,910 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Research and development | 5,386 | 3,816 | 10,210 | 7,700 | ||||||||||||
Selling and marketing | 6,514 | 6,911 | 13,198 | 14,474 | ||||||||||||
General and administrative | 10,480 | 7,388 | 19,236 | 16,286 | ||||||||||||
Acquisition-related costs | 1,787 | 885 | 1,787 | 972 | ||||||||||||
Change in fair value of contingent consideration obligation | (2,491 | ) | — | (1,304 | ) | — | ||||||||||
Restructuring costs | 252 | (100 | ) | 527 | (100 | ) | ||||||||||
Selected legal costs | 735 | 603 | 1,055 | 1,192 | ||||||||||||
Total operating expenses | 22,663 | 19,503 | 44,709 | 40,524 | ||||||||||||
OPERATING INCOME | 11,791 | 9,835 | 17,185 | 20,386 | ||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest income | 23 | 204 | 134 | 353 | ||||||||||||
Interest expense | (532 | ) | (347 | ) | (1,299 | ) | (710 | ) | ||||||||
Other, net | 1,365 | (445 | ) | 653 | (306 | ) | ||||||||||
Total other income (expense) | 856 | (588 | ) | (512 | ) | (663 | ) | |||||||||
EARNINGS BEFORE INCOME TAXES | 12,647 | 9,247 | 16,673 | 19,723 | ||||||||||||
INCOME TAX PROVISION | 3,288 | 2,153 | 4,487 | 4,523 | ||||||||||||
NET EARNINGS | $ | 9,359 | $ | 7,094 | $ | 12,186 | $ | 15,200 | ||||||||
BASIC EARNINGS PER COMMON SHARE | $ | 0.22 | $ | 0.17 | $ | 0.28 | $ | 0.36 | ||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.22 | $ | 0.17 | $ | 0.28 | $ | 0.35 | ||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 42,830 | 42,496 | 42,810 | 42,472 | ||||||||||||
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS | 138 | 450 | 143 | 453 | ||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED | 42,968 | 42,946 | 42,953 | 42,925 | ||||||||||||
ANTI-DILUTIVE SECURITIES: | ||||||||||||||||
Common share options and restricted share units | 1,635 | 771 | 1,520 | 742 | ||||||||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | — | $ | 0.125 | $ | — | $ | 0.250 | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2019 | 2018 | |||||||
NET EARNINGS | $ | 2,827 | $ | 8,106 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustment | 2,768 | (716 | ) | |||||
Unrealized loss on cash flow hedge | — | (577 | ) | |||||
Reclassification of gain on cash flow hedge | (77 | ) | — | |||||
Income taxes related to items of other comprehensive income | 19 | 145 | ||||||
Other comprehensive income (loss), net of tax | 2,710 | (1,148 | ) | |||||
COMPREHENSIVE INCOME | $ | 5,537 | $ | 6,958 | ||||
MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES | ||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||||||||||||
(dollar amounts in thousands) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
NET EARNINGS | $ | 9,359 | $ | 7,094 | $ | 12,186 | $ | 15,200 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | (2,786 | ) | 377 | (18 | ) | (339 | ) | |||||||||
Unrealized loss on cash flow hedge | (313 | ) | (310 | ) | (313 | ) | (887 | ) | ||||||||
Reclassification of gain on cash flow hedge | (77 | ) | — | (154 | ) | — | ||||||||||
Income taxes related to items of other comprehensive income | 96 | 78 | 115 | 223 | ||||||||||||
Other comprehensive income (loss), net of tax | (3,080 | ) | 145 | (370 | ) | (1,003 | ) | |||||||||
COMPREHENSIVE INCOME | $ | 6,279 | $ | 7,239 | $ | 11,816 | $ | 14,197 | ||||||||
Six Months Ended March 31, | 2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings | $ | 12,186 | $ | 15,200 | ||||
Non-cash items included in net earnings: | ||||||||
Depreciation of property, plant and equipment | 2,439 | 2,562 | ||||||
Amortization of intangible ass e ts | 3,449 | 1,658 | ||||||
Stock-based compensation | 1,759 | 2,368 | ||||||
Deferred income taxes | 656 | (677 | ) | |||||
Change in accrued contingent consideration | (1,304 | ) | — | |||||
Change in the following : | ||||||||
Accounts receivable | (4,950 | ) | (951 | ) | ||||
Inventories | (2,511 | ) | 832 | |||||
Prepaid expenses and other current assets | 1,278 | 286 | ||||||
Accounts payable and accrued expenses | 1,621 | (1,267 | ) | |||||
Income taxes payable | 400 | 1,108 | ||||||
Other, net | 692 | (68 | ) | |||||
Net cash provided by operating activities | 15,715 | 21,051 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property, plant and equipment | (1,543 | ) | (2,113 | ) | ||||
Net cash used for investing activities | (1,543 | ) | (2,113 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividends paid | — | (10,612 | ) | |||||
Payment on revolving credit facility | (27,000 | ) | — | |||||
Payment of debt issuance costs | (116 | ) | — | |||||
Payments on term loan | — | (2,250 | ) | |||||
Proceeds from exercise of stock options | — | 443 | ||||||
Net cash used for financing activities | (27,116 | ) | (12,419 | ) | ||||
Effect of Exchange Rate Changes on Cash and Equivalents and Restricted Cash | 97 | (185 | ) | |||||
Net Increase (Decrease) in Cash and Equivalents and Restricted Cash | (12,847 | ) | 6,334 | |||||
Cash and Equivalents and Restricted Cash at Beginning of Perio d | 62,397 | 60,763 | ||||||
Cash and Equivalents and Restricted Cash at End of Period | $ | 49,550 | $ | 67,097 | ||||
Cash and Equivalents | $ | 49,550 | $ | 66,097 | ||||
Restricted Cash | — | 1,000 | ||||||
Cash and Equivalents and Restricted Cash at End of Period | $ | 49,550 | $ | 67,097 | ||||
Three Months Ended December 31, | 2019 | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings | $ | 2,827 | $ | 8,106 | ||||
Non-cash items included in net earnings: | ||||||||
Depreciation of property, plant and equipment | 1,218 | 1,253 | ||||||
Amortization of intangible assets | 1,722 | 829 | ||||||
Stock-based compensation | 788 | 1,670 | ||||||
Deferred income taxes | 419 | 96 | ||||||
Change in accrued contingent consideration | 1,187 | — | ||||||
Change in the following: | ||||||||
Accounts receivable | 550 | 317 | ||||||
Inventories | (3,526 | ) | (37 | ) | ||||
Prepaid expenses and other current assets | 1,434 | 539 | ||||||
Accounts payable and accrued expenses | (664 | ) | (4,081 | ) | ||||
Income taxes payable | (464 | ) | 991 | |||||
Other, net | (203 | ) | (197 | ) | ||||
Net cash provided by operating activities | 5,288 | 9,486 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property, plant and equipment | (340 | ) | (1,109 | ) | ||||
Net cash used for investing activities | (340 | ) | (1,109 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividends paid | — | (5,301 | ) | |||||
Payments on term loan | — | (1,125 | ) | |||||
Proceeds from exercise of stock options | — | 66 | ||||||
Net cash used for financing activities | — | (6,360 | ) | |||||
Effect of Exchange Rate Changes on Cash and Equivalents and Restricted Cash | 1,212 | (257 | ) | |||||
Net Increase in Cash and Equivalents and Restricted Cash | 6,160 | 1,760 | ||||||
Cash and Equivalents and Restricted Cash at Beginning of Period | 62,397 | 60,763 | ||||||
Cash and Equivalents and Restricted Cash at End of Period | $ | 68,557 | $ | 62,523 | ||||
Cash and Equivalents | $ | 68,557 | $ | 61,523 | ||||
Restricted Cash | — | 1,000 | ||||||
Cash and Equivalents and Restricted Cash at End of Period | $ | 68,557 | $ | 62,523 | ||||
March 31, 2020 (Unaudited) | September 30, 2019 | |||||||
CURRENT ASSETS | ||||||||
Cash and equivalents | $ | 49,550 | $ | 62,397 | ||||
Accounts receivable, less allowances of $521 and $537, respectivel y | 40,184 | 35,608 | ||||||
Inventories | 41,008 | 39,617 | ||||||
Prepaid expenses and other current asset s | 5,847 | 7,139 | ||||||
Total current assets | 136,589 | 144,761 | ||||||
PROPERTY, PLANT AND EQUIPMENT, at Cost | ||||||||
Land | 987 | 982 | ||||||
Buildings and improvements | 32,004 | 31,904 | ||||||
Machinery, equipment and furniture | 66,006 | 64,155 | ||||||
Construction in progress | 1,252 | 522 | ||||||
Subtotal | 100,249 | 97,563 | ||||||
Less: accumulated depreciation and amortization | 69,875 | 66,996 | ||||||
Net property, plant and equipment | 30,374 | 30,567 | ||||||
OTHER ASSETS | ||||||||
Goodwill | 89,198 | 89,241 | ||||||
Other intangible assets, net | 56,848 | 60,243 | ||||||
Right-of-use assets | 5,355 | — | ||||||
Deferred income taxes | 137 | 156 | ||||||
Other assets | 573 | 510 | ||||||
Total other assets | 152,111 | 150,150 | ||||||
TOTAL ASSETS | $ | 319,074 | $ | 325,478 | ||||
December 31, 2019 (Unaudited) | September 30, 2019 | |||||||
CURRENT ASSETS | ||||||||
Cash and equivalents | $ | 68,557 | $ | 62,397 | ||||
Accounts receivable, less allowances of $527 and $537 , respectively | 35,318 | 35,608 | ||||||
Inventories | 42,827 | 39,617 | ||||||
Prepaid expenses and other current assets | 5,730 | 7,139 | ||||||
Total current assets | 152,432 | 144,761 | ||||||
PROPERTY, PLANT AND EQUIPMENT, at Cost | ||||||||
Land | 985 | 982 | ||||||
Buildings and improvements | 31,928 | 31,904 | ||||||
Machinery, equipment and furniture | 65,320 | 64,155 | ||||||
Construction in progress | 943 | 522 | ||||||
Subtotal | 99,176 | 97,563 | ||||||
Less: accumulated depreciation and amortization | 68,681 | 66,996 | ||||||
Net property, plant and equipment | 30,495 | 30,567 | ||||||
OTHER ASSETS | ||||||||
Goodwill | 89,958 | 89,241 | ||||||
Other intangible assets, net | 58,586 | 60,243 | ||||||
Right-of-use assets | 6,041 | — | ||||||
Deferred income taxes | 132 | 156 | ||||||
Other assets | 484 | 510 | ||||||
Total other assets | 155,201 | 150,150 | ||||||
TOTAL ASSETS | $ | $ | 325,478 | |||||
December 31, 2019 (Unaudited) | September 30, 2019 | |||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 7,932 | $ | 7,238 | ||||
Accrued employee compensation costs | 6,401 | 7,938 | ||||||
Accrued interest expense | 958 | 498 | ||||||
Current portion of acquisition consideration | 13,653 | — | ||||||
Current operating lease obligations | 1,333 | — | ||||||
Other accrued expenses | 2,977 | 3,260 | ||||||
Income taxes payable | 1,599 | 1,980 | ||||||
Total current liabilities | 34,853 | 20,914 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Acquisition consideration | 19,736 | 32,202 | ||||||
Post-employment benefits | 2,484 | 2,500 | ||||||
Long-term operating lease obligations | 4,480 | — | ||||||
Long-term debt | 75,824 | 75,824 | ||||||
Long-term income taxes payable | 549 | 549 | ||||||
Deferred income taxes | 2,910 | 2,522 | ||||||
Total non-current liabilities | 105,983 | 113,597 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred stock, no par value; 1,000,000 shares authorized; 0ne issued | — | — | ||||||
Common shares, no par value; 71,000,000 shares authorized, 42,827,758 and 42,712,296 shares issued, respectively | — | — | ||||||
Additional paid-in capital | 133,622 | 132,834 | ||||||
Retained earnings | 65,935 | 63,108 | ||||||
Accumulated other comprehensive loss | (2,265 | ) | (4,975 | ) | ||||
Total shareholders’ equity | 197,292 | 190,967 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 338,128 | $ | 325,478 |
March 31, 2020 (Unaudited) | September 30, 2019 | |||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 7,879 | $ | 7,238 | ||||
Accrued employee compensation costs | 9,009 | 7,938 | ||||||
Accrued interest | 180 | 498 | ||||||
Current portion of acquisition consideration | 13,656 | — | ||||||
Current operating lease obligations | 1,350 | — | ||||||
Other accrued expenses | 3,445 | 3,260 | ||||||
Income taxes payable | 2,366 | 1,980 | ||||||
Total current liabilities | 37,885 | 20,914 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Acquisition consideration | 17,242 | 32,202 | ||||||
Post-employment benefits | 2,458 | 2,500 | ||||||
Fair value of interest rate swaps | 313 | — | ||||||
Long-term operating lease obligations | 4,111 | — | ||||||
Long-term debt | 48,824 | 75,824 | ||||||
Long-term income taxes payable | 549 | 549 | ||||||
Deferred income taxes | 3,159 | 2,522 | ||||||
Total non-current liabilities | 76,656 | 113,597 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred stock, no par value; 1,000,000 shares authorized; 0ne issued | — | ��� | ||||||
Common shares, no par value; 71,000,000 shares authorized, 42,831,267 and 42,712,296 shares issued, respectively | — | — | ||||||
Additional paid-in capital | 134,584 | 132,834 | ||||||
Retained earnings | 75,294 | 63,108 | ||||||
Accumulated other comprehensive loss | (5,345 | ) | (4,975 | ) | ||||
Total shareholders’ equity | 204,533 | 190,967 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 319,074 | $ | 325,478 |
Common Shares Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2020 | ||||||||||||||||||||
Balance at December 31, 2019 | 42,828 | $ | 133,622 | $ | 65,935 | $ | (2,265 | ) | $ | 197,292 | ||||||||||
Conversion of restricted share units | 3 | (9 | ) | — | — | (9 | ) | |||||||||||||
Stock compensation expense | — | 971 | — | — | 971 | |||||||||||||||
Net earnings | — | — | 9,359 | — | 9,359 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | (2,786 | ) | (2,786 | ) | |||||||||||||
Hedging activity, net of tax | — | — | — | (294 | ) | (294 | ) | |||||||||||||
Balance at March 31, 2020 | 42,831 | $ | 134,584 | $ | 75,294 | $ | (5,345 | ) | $ | 204,533 | ||||||||||
THREE MONTHS ENDED MARCH 31, 2019 | ||||||||||||||||||||
Balance at December 31, 2018 | 42,489 | $ | 130,876 | $ | 52,291 | $ | (4,525 | ) | $ | 178,642 | ||||||||||
Cash dividends paid - | — | — | (5,311 | ) | — | (5,311 | ) | |||||||||||||
Conversion of restricted share units and exercise of stock options | 26 | 377 | — | — | 377 | |||||||||||||||
Stock compensation expense | — | 698 | — | — | 698 | |||||||||||||||
Net earnings | — | — | 7,094 | — | 7,094 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 377 | 377 | |||||||||||||||
Hedging activity, net of tax | — | — | — | (232 | ) | (232 | ) | |||||||||||||
Balance at March 31, 2019 | 42,515 | $ | 131,951 | $ | 54,074 | $ | (4,380 | ) | $ | 181,645 | ||||||||||
Common Shares Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
SIX MONTHS ENDED MARCH 31, 2020 | ||||||||||||||||||||
Balance at September 30, 2019 | 42,712 | $ | 132,834 | $ | 63,108 | $ | (4,975 | ) | $ | 190,967 | ||||||||||
Conversion of restricted share units | 119 | (9 | ) | — | — | (9 | ) | |||||||||||||
Stock compensation expense | — | 1,759 | — | — | 1,759 | |||||||||||||||
Net earnings | — | — | 12,186 | — | 12,186 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | (18 | ) | (18 | ) | |||||||||||||
Hedging activity, net of tax | — | — | — | (352 | ) | (352 | ) | |||||||||||||
Balance at March 31, 2020 | 42,831 | $ | 134,584 | $ | 75,294 | $ | (5,345 | ) | $ | 204,533 | ||||||||||
SIX MONTHS ENDED MARCH 31, 2019 | ||||||||||||||||||||
Balance at September 30, 2018 | 42,400 | $ | 129,193 | $ | 49,602 | $ | (3,377 | ) | $ | 175,418 | ||||||||||
Cash dividends paid - | — | — | (10,612 | ) | — | (10,612 | ) | |||||||||||||
Conversion of restricted share units and exercise of stock options | 115 | 390 | — | — | 390 | |||||||||||||||
Stock compensation expense | — | 2,368 | — | — | 2,368 | |||||||||||||||
Net earnings | — | — | 15,200 | — | 15,200 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | (339 | ) | (339 | ) | |||||||||||||
Hedging activity, net of tax | — | — | — | (664 | ) | (664 | ) | |||||||||||||
Adoption of ASU 2014-09 | — | — | (116 | ) | — | (116 | ) | |||||||||||||
Balance at March 31, 2019 | 42,515 | $ | 131,951 | $ | 54,074 | $ | (4,380 | ) | $ | 181,645 |
Common Shares Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
Balance at September 30, 2019 | 42,712 | $ | 132,834 | $ | 63,108 | $ | (4,975 | ) | $ | 190,967 | ||||||||||
Conversion of restricted share units and | 116 | — | — | — | — | |||||||||||||||
Stock compensation expense | — | 788 | — | — | 788 | |||||||||||||||
Net earnings | — | — | 2,827 | — | 2,827 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 2,768 | 2,768 | |||||||||||||||
Hedging activity, net of tax | — | — | — | (58 | ) | (58 | ) | |||||||||||||
Balance at December 31, 2019 | 42,828 | $ | 133,622 | $ | 65,935 | $ | (2,265 | ) | $ | 197,292 | ||||||||||
Balance at September 30, 2018 | 42,400 | $ | 129,193 | $ | 49,602 | $ | (3,377 | ) | $ | 175,418 | ||||||||||
Cash dividends paid - $0.125 per share | — | — | (5,301 | ) | — | (5,301 | ) | |||||||||||||
Conversion of restricted share units and | 89 | 13 | — | — | 13 | |||||||||||||||
Stock compensation expense | — | 1,670 | — | — | 1,670 | |||||||||||||||
Net earnings | — | — | 8,106 | — | 8,106 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | (716 | ) | (716 | ) | |||||||||||||
Hedging activity, net of tax | — | — | — | (432 | ) | (432 | ) | |||||||||||||
Adoption of ASU 2014-09 | — | — | (116 | ) | — | (116 | ) | |||||||||||||
Balance at December 31, 2018 | 42,489 | $ | 130,876 | $ | 52,291 | $ | (4,525 | ) | $ | 178,642 |
1. | Basis of Presentation |
2. | Significant Accounting Policies |
Three Months Ended December 31, | ||||||||||||
2019 | 2018 | Inc (Dec) | ||||||||||
Diagnostics- | ||||||||||||
Americas | $ | $ | (9 | )% | ||||||||
EMEA | 6,500 | 5,802 | 12 | % | ||||||||
ROW | 556 | 440 | 26 | % | ||||||||
Total Diagnostics | 34,791 | 36,665 | (5 | )% | ||||||||
Life Science- | ||||||||||||
Americas | 4,019 | 4,521 | (11 | )% | ||||||||
EMEA | 4,966 | 7,363 | (33 | )% | ||||||||
ROW | 3,645 | 2,931 | 24 | % | ||||||||
Total Life Science | 12,630 | 14,815 | (15 | ) % | ||||||||
Consolidated | $ | 47,421 | $ | 51,480 | (8 | )% | ||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2020 | 2019 | Inc (Dec) | 2020 | 2019 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Americas | $ | 27,670 | $ | 26,263 | 5 | % | $ | 55,405 | $ | 56,686 | (2 | )% | ||||||||||||
EMEA | 6,777 | 6,549 | 3 | % | 13,277 | 12,351 | 7 | % | ||||||||||||||||
ROW | 495 | 688 | (28 | )% | 1,051 | 1,128 | (7 | )% | ||||||||||||||||
Total Diagnostics | 34,942 | 33,500 | 4 | % | 69,733 | 70,165 | (1 | )% | ||||||||||||||||
Life Science- | ||||||||||||||||||||||||
Americas | 4,612 | 5,454 | (15 | )% | 8,627 | 9,976 | (14 | )% | ||||||||||||||||
EMEA | 9,946 | 7,852 | 27 | % | 14,914 | 15,213 | (2 | )% | ||||||||||||||||
ROW | 7,796 | 3,442 | 126 | % | 11,443 | 6,374 | 80 | % | ||||||||||||||||
Total Life Science | 22,354 | 16,748 | 33 | % | 34,984 | 31,563 | 11 | % | ||||||||||||||||
Consolidated | $ | 57,296 | $ | 50,248 | 14 | % | $ | 104,717 | $ | 101,728 | 3 | % | ||||||||||||
Three Months Ended December 31, | ||||||||||||
2019 | 2018 | Inc (Dec) | ||||||||||
Diagnostics- | ||||||||||||
Molecular assays | $ | 6,887 | $ | 7,231 | (5 | )% | ||||||
Immunoassays & blood chemistry assays | 27,904 | 29,434 | (5 | )% | ||||||||
Total Diagnostics | $ | 34,791 | $ | 36,665 | (5 | )% | ||||||
Life Science- | ||||||||||||
Molecular reagents | $ | 5,357 | $ | 6,615 | (19 | )% | ||||||
Immunological reagents | 7,273 | 8,200 | (11 | )% | ||||||||
Total Life Science | $ | 12,630 | $ | 14,815 | (15 | ) % | ||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2020 | 2019 | Inc (Dec) | 2020 | 2019 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Molecular assays | $ | 7,238 | $ | 7,084 | 2 | % | $ | 14,077 | $ | 14,314 | (2 | )% | ||||||||||||
Immunoassays & blood chemistry assays | 27,704 | 26,416 | 5 | % | 55,656 | 55,851 | - | % | ||||||||||||||||
Total Diagnostics | $ | 34,942 | $ | 33,500 | 4 | % | $ | 69,733 | $ | 70,165 | (1 | )% | ||||||||||||
Life Science- | ||||||||||||||||||||||||
Molecular reagents | $ | 11,534 | $ | 5,390 | 114 | % | $ | 16,892 | $ | 11,998 | 41 | % | ||||||||||||
Immunological reagents | 10,820 | 11,358 | (5 | )% | 18,092 | 19,565 | (8 | ) % | ||||||||||||||||
Total Life Science | $ | 22,354 | $ | 16,748 | 33 | % | $ | 34,984 | $ | 31,563 | 11 | % | ||||||||||||
Three Months Ended December 31, | ||||||||||||
2019 | 2018 | Inc (Dec) | ||||||||||
Diagnostics- | ||||||||||||
Gastrointestinal assays | $ | $ | (14 | )% | ||||||||
Respiratory illness assays | 7,749 | 7,981 | (3 | )% | ||||||||
Blood chemistry assays | 5,150 | 4,430 | 16 | % | ||||||||
Other | 5,846 | 5,639 | 4 | % | ||||||||
Total Diagnostics | $ | 34,791 | $ | 36,665 | (5 | )% | ||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2020 | 2019 | Inc (Dec) | 2020 | 2019 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Gastrointestinal assays | $ | 14,014 | $ | 16,177 | (13 | )% | $ | 30,060 | $ | 34,792 | (14 | )% | ||||||||||||
Respiratory illness assays | 10,863 | 7,553 | 44 | % | 18,612 | 15,534 | 20 | % | ||||||||||||||||
Blood chemistry assays | 4,329 | 4,330 | - | % | 9,479 | 8,760 | 8 | % | ||||||||||||||||
Other | 5,736 | 5,440 | 5 | % | 11,582 | 11,079 | 5 | % | ||||||||||||||||
Total Diagnostics | $ | 34,942 | $ | 33,500 | 4 | % | $ | 69,733 | $ | 70,165 | (1 | )% | ||||||||||||
(b) | Fair Value Measurements – |
Fair Value Measurements Using Inputs Considered as | Fair Value Measurements Using Inputs Considered as | |||||||||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Interest rate swaps (see Note 9) - | ||||||||||||||||||||||||||||||||
As of March 31, 2020 | $ | (313 | ) | $ | — | $ | (313 | ) | $ | — | ||||||||||||||||||||||
As of September 30, 2019 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Contingent consideration - | ||||||||||||||||||||||||||||||||
As of December 31, 2019 | $ | 28,389 | $ | — | $ | — | $ | 28,389 | ||||||||||||||||||||||||
As of September 30, 2019 | $ | 27,202 | $ | — | $ | — | $ | 27,202 | ||||||||||||||||||||||||
As of March 31, 2020 | $ | (25,898 | ) | $ | — | $ | — | $ | (25,898 | ) | ||||||||||||||||||||||
As of September 30, 201 9 | $ | (27,202 | ) | $ | — | $ | — | $ | (27,202 | ) |
(c) | Recent Accounting Pronouncements – |
(d) | Reclassifications – |
3. | Acquisition of Business of GenePOC |
(i) | a $50,000 cash payment on June 3, 2019, subject to a working capital adjustment and a holdback of $5,000 to secure selling party’s performance of certain post-closing obligations; |
(ii) | two $10,000 installments contingent upon the achievement of certain product development milestones if achieved by September 30, 2020 and March 31, 2021, respectively; and |
(iii) | up to $50,000 of contingent consideration payable if certain financial performance targets are achieved during the twelve-month period ending September 30, 2022. |
June 3, 2019 (as initially reported) | Measurement Period Adjustments | June 3, 2019 (as adjusted) | June 3, 2019 (as initially reported) | Measurement Period Adjustments | June 3, 2019 (as adjusted) | |||||||||||||||||||
Fair value of assets acquired - | ||||||||||||||||||||||||
Accounts receivable | $ | 58 | $ | (1 | ) | $ | 57 | $ | 58 | $ | (1 | ) | $ | 57 | ||||||||||
Inventories | 1,617 | (106 | ) | 1,511 | 1,617 | (106 | ) | 1,511 | ||||||||||||||||
Other current assets | 77 | 7 | 84 | 77 | 7 | 84 | ||||||||||||||||||
Property, plant and equipment | 1,520 | (96 | ) | 1,424 | 1,520 | (96 | ) | 1,424 | ||||||||||||||||
Goodwill | 34,482 | 100 | 34,582 | 34,482 | 100 | 34,582 | ||||||||||||||||||
Other intangible assets (estimated useful life): | ||||||||||||||||||||||||
License agreement (10 years) | 5,990 | — | 5,990 | 5,990 | — | 5,990 | ||||||||||||||||||
Technology (15 years) | 34,040 | 96 | 34,136 | 34,040 | 96 | 34,136 | ||||||||||||||||||
Government grant (1.33 years) | 800 | — | 800 | 800 | — | 800 | ||||||||||||||||||
78,584 | — | 78,584 | 78,584 | — | 78,584 | |||||||||||||||||||
Fair value of liabilities assumed - | ||||||||||||||||||||||||
Accounts payable and accrued expenses | 1,082 | (24 | ) | 1,058 | 1,082 | (24 | ) | 1,058 | ||||||||||||||||
Total consideration paid (including contingent consideration originally estimated at $27,202) | $ | 77,502 | $ | 24 | $ | 77,526 | $ | 77,502 | $ | 24 | $ | 77,526 | ||||||||||||
Three Months Ended December 31, | 2019 | 2018 | ||||||
Net Revenues | $ | 47,421 | $ | 51,552 | ||||
Net Earnings | $ | 2,827 | $ | 4,379 |
Three Ended March 31, 2019 | Six Ended March 31, 2019 | |||||||
Net Revenues | $ | 50,319 | $ | 101,871 | ||||
Net Earnings | $ | 3,527 | $ | 7,906 |
Three Months Ended December 31, | 2019 | 2018 | ||||||
Adjustments to Net Revenues | ||||||||
GenePOC pre-acquisition revenues | $ | — | $ | 72 | ||||
Adjustments to Net Earnings | ||||||||
GenePOC pre-acquisition net loss | $ | — | $ | (3,203 | ) | |||
Pro forma adjustments: | ||||||||
Expenses related to non-continuing personnel,locations or activities | — | 568 | ||||||
Incremental depreciation and amortization | — | (876 | ) | |||||
Incremental interest costs | — | (284 | ) | |||||
Tax effects of pro forma adjustments | — | 68 | ||||||
Total Adjustments to Net Earnings | $ | — | $ | (3,727 | ) | |||
Three Months Ended March 31, 2019 | Six Ended March 31, 2019 | |||||||
Adjustments to Net Revenues | ||||||||
GenePOC pre-acquisition revenues | $ | 71 | $ | 143 | ||||
Adjustments to Net Earnings | ||||||||
GenePOC pre-acquisition net loss | $ | (3,125 | ) | $ | (6,328 | ) | ||
Pro forma adjustments: | ||||||||
Expenses related to non-continuing personnel, locations or activities | 627 | 1,195 | ||||||
Incremental depreciation and amortization | (872 | ) | (1,748 | ) | ||||
Incremental interest costs | (254 | ) | (538 | ) | ||||
Tax effects of pro forma adjustments | 57 | 125 | ||||||
Total Adjustments to Net Earnings | $ | (3,567 | ) | $ | (7,294 | ) | ||
4. | Restructuring |
Employee Separation and Related Costs | Lease and Other Contract Termination Fees | Other | Total | |||||||||||||
Balance at September 30, 2019 | $ | 1,010 | $ | 12 | 114 | $ | 1,136 | |||||||||
Restructuring charges | 236 | 80 | — | 316 | ||||||||||||
Reversal of prior period accruals | (41 | ) | — | — | (41 | ) | ||||||||||
Payments | (1,020 | ) | (65 | ) | (114 | ) | (1,199 | ) | ||||||||
Balance at December 31, 2019 | $ | 185 | $ | 27 | $ | — | $ | 212 | ||||||||
Employee Separation and Related Costs | Lease and Other Contract Termination Fees | Other | Total | |||||||||||||
Balance at September 30, 2019 | $ | 1,010 | $ | 12 | $ | 114 | $ | 1,136 | ||||||||
Restructuring charges | 482 | 86 | — | 568 | ||||||||||||
Reversal of prior period accruals | (41 | ) | — | — | (41 | ) | ||||||||||
Payments | (1,367 | ) | (98 | ) | (114 | ) | (1,579 | ) | ||||||||
Balance at March 31, 2020 | $ | 84 | $ | — | $ | — | $ | 84 | ||||||||
5. | Cash and Equivalents |
December 31, 2019 | September 30, 2019 | |||||||
Institutional money market funds | $ | 21,010 | $ | 20,913 | ||||
Cash on hand, unrestricted | 47,547 | 41,484 | ||||||
Total | $ | 68,557 | $ | 62,397 | ||||
March 31, 2020 | September 30, 2019 | |||||||
Institutional money market funds | $ | 1,015 | $ | 20,913 | ||||
Cash on hand, unrestricted | 48,535 | 41,484 | ||||||
Total | $ | 49,550 | $ | 62,397 | ||||
6. | Inventories |
December 31, 2019 | September 30, 2019 | March 31, 2020 | September 30, 2019 | ||||||||||||||
March 31, 2020 | September 30, 2019 | ||||||||||||||||
Raw materials | $ | 8,549 | $ | 7,455 | $ | 9,103 | $ | 7,455 | |||||||||
Work-in-process | 12,209 | 11,504 | 12,856 | 11,504 | |||||||||||||
Finished goods - instruments | 688 | 935 | 827 | 935 | |||||||||||||
Finished goods - kits and reagents | 21,381 | 19,723 | 18,222 | 19,723 | |||||||||||||
Total | $ | 42,827 | $ | 39,617 | $ | 41,008 | $ | 39,617 | |||||||||
7. | Leasing Arrangements |
Three Months | Six Months | |||||||||||||||
Ended March 31, | Ended March 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cash paid for amounts included in the measurement of lease | ||||||||||||||||
Operating cash flows from operating leases | $ | 391 | $ | — | $ | 778 | $ | — | ||||||||
March 31, 2020 | |||||||||
December 31, 2019 | |||||||||
Remainder of 2020 | $ | 1,132 | $ | 768 | |||||
2021 | 1,456 | 1,515 | |||||||
2022 | 1,310 | 1,302 | |||||||
2023 | 967 | 943 | |||||||
2024 | 712 | 692 | |||||||
Thereafter | 616 | 600 | |||||||
Total lease payments | 6,193 | 5,820 | |||||||
Less amount of lease payment representing interest | (380 | ) | (359 | ) | |||||
Total present value of lease payments | $ | 5,813 | $ | 5,461 | |||||
September 30, 2019 | ||||
2020 | $ | 1,528 | ||
2021 | 1,451 | |||
2022 | 1,293 | |||
2023 | 967 | |||
2024 | 712 | |||
Thereafter | 616 | |||
Total | $ | 6,567 |
8. | Intangible Assets |
December 31, 2019 | September 30, 2019 | |||||||||||||||
Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||||
Manufacturing technologies, core products and cell lines | $ | 56,273 | $ | 16,057 | $ | 56,193 | $ | 15,096 | ||||||||
Trade names, licenses and patents | 14,596 | 6,566 | 14,494 | 6,094 | ||||||||||||
Customer lists, customer relationships and supply agreements | 24,500 | 14,626 | 24,274 | 14,110 | ||||||||||||
Government grants | 828 | 362 | 814 | 232 | ||||||||||||
Total | $ | 96,197 | $ | 37,611 | $ | 95,775 | $ | 35,532 | ||||||||
March 31, 2020 | September 30, 2019 | |||||||||||||||
Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||||
Manufacturing technologies, core products and cell lines | $ | 56,188 | $ | 16,838 | $ | 56,193 | $ | 15,096 | ||||||||
Trade names, licenses and patents | 14,499 | 6,851 | 14,494 | 6,094 | ||||||||||||
Customer lists, customer relationships and supply agreements | 24,285 | 14,720 | 24,274 | 14,110 | ||||||||||||
Government grants | 759 | 474 | 814 | 232 | ||||||||||||
Total | $ | 95,731 | $ | 38,883 | $ | 95,775 | $ | 35,532 | ||||||||
9. | Bank Credit Arrangements |
Reportable |
Diagnostics | Life Science | Corporate (1) | Eliminations (2) | Total | ||||||||||||||||
Three Months Ended December 31, 2019 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third- p arty | $ | 34,791 | $ | 12,630 | $ | — | $ | — | $ | 47,421 | ||||||||||
Inter-segment | 97 | 65 | — | (162 | ) | — | ||||||||||||||
Operating income | 4,408 | 3,061 | (2,087 | ) | 12 | 5,394 | ||||||||||||||
Goodwill (December 31, 2019) | 70,415 | 19,543 | — | — | 89,958 | |||||||||||||||
Other intangible assets, net (December 31, 2019) | 58,277 | 309 | — | — | 58,586 | |||||||||||||||
Total assets (December 31, 2019) | 266,514 | 72,081 | — | (467 | ) | 338,128 | ||||||||||||||
Three Months Ended December 31, 2018 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third- p arty | $ | 36,665 | $ | 14,815 | $ | — | $ | — | $ | 51,480 | ||||||||||
Inter-segment | 163 | 176 | — | (339 | ) | — | ||||||||||||||
Operating income | 8,786 | 5,129 | (3,391 | ) | 27 | 10,551 | ||||||||||||||
Goodwill (September 30, 2019) | 70,395 | 18,846 | — | — | 89,241 | |||||||||||||||
Other intangible assets, net (September 30, 2019) | 59,807 | 436 | — | — | 60,243 | |||||||||||||||
Total assets (September 30, 2019) | 255,169 | 70,392 | — | (83 | ) | 325,478 |
Diagnostics | Life Science | Corporate (1) | Eliminations (2) | Total | ||||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 34,942 | $ | 22,354 | $ | — | $ | — | $ | 57,296 | ||||||||||
Inter-segment | 81 | 55 | — | (136 | ) | — | ||||||||||||||
Operating income | 3,842 | 10,818 | (2,896 | ) | 27 | 11,791 | ||||||||||||||
Goodwill (March 31, 2020) | 70,317 | 18,881 | — | — | 89,198 | |||||||||||||||
Other intangible assets, net (March 31, 2020) | 56,681 | 167 | — | — | 56,848 | |||||||||||||||
Total assets (March 31, 2020) | 245,059 | 74,036 | — | (21 | ) | 319,074 | ||||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 33,500 | $ | 16,748 | $ | — | $ | — | $ | 50,248 | ||||||||||
Inter-segment | 89 | 53 | — | (142 | ) | — | ||||||||||||||
Operating income | 6,676 | 5,361 | (2,216 | ) | 14 | 9,835 | ||||||||||||||
Goodwill (September 30, 2019) | 70,395 | 18,846 | — | — | 89,241 | |||||||||||||||
Other intangible assets, net (September 30, 2019) | 59,807 | 436 | — | — | 60,243 | |||||||||||||||
Total assets (September 30, 2019) | 255,169 | 70,392 | — | (83 | ) | 325,478 | ||||||||||||||
Six Months Ended March 31, 2020 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 69,733 | $ | 34,984 | $ | — | $ | — | $ | 104,717 | ||||||||||
Inter-segment | 178 | 120 | — | (298 | ) | — | ||||||||||||||
Operating income | 8,250 | 13,879 | (4,983 | ) | 39 | 17,185 | ||||||||||||||
Six Months Ended March 31, 2019 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 70,165 | $ | 31,563 | $ | — | $ | — | $ | 101,728 | ||||||||||
Inter-segment | 252 | 229 | — | (481 | ) | — | ||||||||||||||
Operating income | 15,374 | 10,492 | (5,521 | ) | 41 | 20,386 | ||||||||||||||
(1) | Includes Restructuring of the three months ended March 31, 2020 and 2019, respectively, and $1,055 and $1,192 in thesix months ended 2020 and 2019, |
(2) | Eliminations consist of inter-segment transactions. |
Three Months Ended December 31, | 2019 | 2018 | ||||||
Segment operating income | $ | 7,481 | $ | 13,942 | ||||
Corporate expenses | (2,087 | ) | (3,391 | ) | ||||
Interest income | 111 | 149 | ||||||
Interest expense | (767 | ) | (363 | ) | ||||
Other, net | (712 | ) | 139 | |||||
Consolidated earnings before income taxes | $ | 4,026 | $ | 10,476 | ||||
Three Months | Six Months | |||||||||||||||
Ended March 31, | Ended March 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Segment operating income | $ | 14,687 | $ | 12,051 | $ | 22,168 | $ | 25,907 | ||||||||
Corporate operating expenses | (2,896 | ) | (2,216 | ) | (4,983 | ) | (5,521 | ) | ||||||||
Interest income | 23 | 204 | 134 | 353 | ||||||||||||
Interest expense | (532 | ) | (347 | ) | (1,299 | ) | (710 | ) | ||||||||
Other, net | 1,365 | (445 | ) | 653 | (306 | ) | ||||||||||
Consolidated earnings before income taxes | $ | 12,647 | $ | 9,247 | $ | 16,673 | $ | 19,723 | ||||||||
Litigation Matters |
12. | Subsequent Even ts |
(i) | significantly higher revenue in the Life Science operating segment, due in large part to supplying key molecular components to diagnostic test manufacturers for use in COVID-19 related tests; |
(ii) | higher research and development spending in the Diagnostics segment ($1,618 QTD; $2,731 YTD); |
(iii) | increased cash-based incentive compensation ($2,045 QTD; $2,570 YTD); |
(iv) | increased intangible asset amortization, primarily resulting from purchase accounting amortization related to the acquisition of the GenePOC business in June 2019 ($825 QTD; $1,715 YTD); |
(v) | increased acquisition-related costs in connection with the fiscal 2020 Exalenz transaction, as compared to those related to the GenePOC transaction in fiscal 2019 ($902 QTD; $815 YTD); |
(vi) | a decrease in the fair value of the earnout obligation for the acquisition of the GenePOC business ($2,491 QTD; $1,304 YTD); and |
(vii) | significantly higher gains related to foreign currency, particularly as it relates to the British pound sterling ($1,704 QTD; $643 YTD). |
- | By Reportable Segment & Geographic Region |
- | By Product Platform/Type |
Three Months Ended December 31, | Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||
Gross Profit | $ | 27,440 | $ | 31,572 | (13) | % | $ | 34,454 | $ | 29,338 | 17 | % | $ | 61,894 | $ | 60,910 | 2 | % | ||||||||||||||||||
Gross Profit Margin | 58 | % | 61 | % | -3 points | 60 | % | 58 | % | 2 points | 59 | % | 60 | % | -1 point |
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2019 First Quarter: | ||||||||||||||||||||
Diagnostics | $ | 3,196 | $ | 6,041 | $ | 4,609 | $ | — | $ | 13,846 | ||||||||||
Life Science | 771 | 1,522 | 1,491 | — | 3,784 | |||||||||||||||
Corporate | — | — | 2,802 | 589 | 3,391 | |||||||||||||||
Total 2019 First Quarter Expenses | $ | 3,967 | $ | 7,563 | $ | 8,902 | $ | 589 | $ | 21,021 | ||||||||||
Fiscal 2020 First Quarter: | ||||||||||||||||||||
Diagnostics | $ | 4,226 | $ | 5,339 | $ | 5,478 | $ | 1,317 | $ | 16,360 | ||||||||||
Life Science | 598 | 1,345 | 1,561 | 95 | 3,599 | |||||||||||||||
Corporate | — | — | 1,717 | 370 | 2,087 | |||||||||||||||
Total 2020 First Quarter Expenses | $ | 4,824 | $ | 6,684 | $ | 8,756 | $ | 1,782 | $ | 22,046 | ||||||||||
Operating Expenses - Comparison to Prior Year Periods | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
2019 First Quarter Expenses | $ | 3,967 | $ | 7,563 | $ | 8,902 | $ | 589 | $ | 21,021 | ||||||||||
% of Revenues | 8 | % | 15 | % | 17 | % | 1 | % | 41 | % | ||||||||||
Fiscal 2020 Increases (Decreases): | ||||||||||||||||||||
Diagnostics | 1,030 | (702 | ) | 869 | 1,317 | 2,514 | ||||||||||||||
Life Science | (173 | ) | (177 | ) | 70 | 95 | (185 | ) | ||||||||||||
Corporate | — | — | (1,085 | ) | (219 | ) | (1,304 | ) | ||||||||||||
2020 First Quarter Expenses | $ | 4,824 | $ | 6,684 | $ | 8,756 | $ | 1,782 | $ | 22,046 | ||||||||||
% of Revenues | 10 | % | 14 | % | 18 | % | 4 | % | 46 | % | ||||||||||
% Increase (Decrease) | 22 | % | (12 | )% | (2 | )% | 203 | % | 5 | % |
Three Months Ended March 31, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2019: | ||||||||||||||||||||
Diagnostics | $ | 3,172 | $ | 5,481 | $ | 4,336 | $ | 760 | $ | 13,749 | ||||||||||
Life Science | 644 | 1,430 | 1,439 | 25 | 3,538 | |||||||||||||||
Corporate | — | — | 1,613 | 603 | 2,216 | |||||||||||||||
Total Expenses (2019 Quarter) | $ | 3,816 | $ | 6,911 | $ | 7,388 | $ | 1,388 | $ | 19,503 | ||||||||||
Fiscal 2020: | ||||||||||||||||||||
Diagnostics | $ | 4,791 | $ | 5,374 | $ | 6,363 | $ | (505 | ) | $ | 16,023 | |||||||||
Life Science | 595 | 1,140 | 1,906 | 103 | 3,744 | |||||||||||||||
Corporate | — | — | 2,211 | 685 | 2,896 | |||||||||||||||
Total Expenses (2020 Quarter) | $ | 5,386 | $ | 6,514 | $ | 10,480 | $ | 283 | $ | 22,663 | ||||||||||
Six Months Ended March 31, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2019: | ||||||||||||||||||||
Diagnostics | $ | 6,286 | $ | 11,523 | $ | 9,027 | $ | 847 | $ | 27,683 | ||||||||||
Life Science | 1,414 | 2,951 | 2,930 | 25 | 7,320 | |||||||||||||||
Corporate | — | — | 4,329 | 1,192 | 5,521 | |||||||||||||||
Total Expenses (2019 Year-to-Date) | $ | 7,700 | $ | 14,474 | $ | 16,286 | $ | 2,064 | $ | 40,524 | ||||||||||
Fiscal 2020: | ||||||||||||||||||||
Diagnostics | $ | 9,017 | $ | 10,713 | $ | 11,841 | $ | 812 | $ | 32,383 | ||||||||||
Life Science | 1,193 | 2,485 | 3,467 | 198 | 7,343 | |||||||||||||||
Corporate | — | — | 3,928 | 1,055 | 4,983 | |||||||||||||||
Total Expenses (2020 Year-to-Date) | $ | 10,210 | $ | 13,198 | $ | 19,236 | $ | 2,065 | $ | 44,709 | ||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
2019 Expenses | $ | 3,816 | $ | 6,911 | $ | 7,388 | $ | 1,388 | $ | 19,503 | ||||||||||
% of Revenues | 8 | % | 14 | % | 15 | % | 3 | % | 39 | % | ||||||||||
Fiscal 2020 Increases/(Decreases): | ||||||||||||||||||||
Diagnostics | 1,619 | (107 | ) | 2,027 | (1,265 | ) | 2,274 | |||||||||||||
Life Science | (49 | ) | (290 | ) | 467 | 78 | 206 | |||||||||||||
Corporate | — | — | 598 | 82 | 680 | |||||||||||||||
2020 Expenses | $ | 5,386 | $ | 6,514 | $ | 10,480 | $ | 283 | $ | 22,663 | ||||||||||
% of Revenues | 9 | % | 11 | % | 18 | % | 1 | % | 40 | % | ||||||||||
% Increase (Decrease) | 41 | % | (6 | )% | 42 | % | (80 | )% | 16 | % |
Six Months Ended March 31, 2020 | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
2019 Expenses | $ | 7,700 | $ | 14,474 | $ | 16,286 | $ | 2,064 | $ | 40,524 | ||||||||||
% of Revenues | 8 | % | 14 | % | 16 | % | 2 | % | 40 | % | ||||||||||
Fiscal 2020 Increases/(Decreases): | ||||||||||||||||||||
Diagnostics | 2,731 | (810 | ) | 2,814 | (35 | ) | 4,700 | |||||||||||||
Life Science | (221 | ) | (466 | ) | 537 | 173 | 23 | |||||||||||||
Corporate | — | — | (401 | ) | (137 | ) | (538 | ) | ||||||||||||
2020 Expenses | $ | 10,210 | $ | 13,198 | $ | 19,236 | $ | 2,065 | $ | 44,709 | ||||||||||
% of Revenues | 10 | % | 13 | % | 18 | % | 2 | % | 43 | % | ||||||||||
% Increase (Decrease) | 33 | % | (9 | )% | 18 | % | - | % | 10 | % |
of sickness of employees or their families or requirements imposed on employees to avoid contact with large groups of people; and |
10.1 | ||||
10.2 | ||||
31.1 | ||||
31.2 | ||||
32 | ||||
101.INS | Inline XBRL Instance Document | |||
101.SCH | Inline XBRL Instance Extension Schema | |||
101.CAL | Inline XBRL Instance Extension Calculation Linkbase | |||
101.DEF | Inline XBRL Instance Extension Definition Linkbase | |||
101.LAB | Inline XBRL Instance Extension Label Linkbase | |||
101.PRE | Inline XBRL Instance Extension Presentation Linkbase | |||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
MERIDIAN BIOSCIENCE, INC. | ||||||
Date: | By: | /s/ Bryan T. Baldasare | ||||
Bryan T. Baldasare | ||||||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |