☒ | 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. | ||||||||||
1 | ||||||||||
2 | ||||||||||
3 | ||||||||||
6 | ||||||||||
Item 2. | ||||||||||
Item 3. | ||||||||||
31 | ||||||||||
Item 4. | 31 | |||||||||
PART II. | ||||||||||
Item 1. | 32 | |||||||||
Item 1A. | 32 | |||||||||
Item 6. | 32 | |||||||||
33 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
NET REVENUES | $ | 84,797 | $ | 48,440 | $ | 189,514 | $ | 150,168 | ||||||||
COST OF SALES | 28,945 | 20,181 | 71,768 | 60,999 | ||||||||||||
GROSS PROFIT | 55,852 | 28,259 | 117,746 | 89,169 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Research and development | 6,743 | 4,594 | 16,953 | 12,294 | ||||||||||||
Selling and marketing | 6,261 | 6,747 | 19,459 | 21,221 | ||||||||||||
General and administrative | 12,439 | 8,002 | 31,675 | 24,288 | ||||||||||||
Acquisition-related costs | 1,641 | 473 | 3,428 | 1,445 | ||||||||||||
Change in fair value of contingent consideration obligation | (6,124 | ) | — | (7,428 | ) | — | ||||||||||
Restructuring costs | 93 | 1,801 | 620 | 1,701 | ||||||||||||
Selected legal costs | 134 | 178 | 1,189 | 1,370 | ||||||||||||
Total operating expenses | 21,187 | 21,795 | 65,896 | 62,319 | ||||||||||||
OPERATING INCOME | 34,665 | 6,464 | 51,850 | 26,850 | ||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest income | 3 | 194 | 137 | 547 | ||||||||||||
Interest expense | (703 | ) | (448 | ) | (2,002 | ) | (1,158 | ) | ||||||||
Other, net | 908 | 268 | 1,561 | (38 | ) | |||||||||||
Total other income (expense) | 208 | 14 | (304 | ) | (649 | ) | ||||||||||
EARNINGS BEFORE INCOME TAXES | 34,873 | 6,478 | 51,546 | 26,201 | ||||||||||||
INCOME TAX PROVISION | 7,366 | 1,399 | 11,853 | 5,922 | ||||||||||||
NET EARNINGS | $ | 27,507 | $ | 5,079 | $ | 39,693 | $ | 20,279 | ||||||||
BASIC EARNINGS PER COMMON SHARE | $ | 0.64 | $ | 0.12 | $ | 0.93 | $ | 0.48 | ||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.64 | $ | 0.12 | $ | 0.92 | $ | 0.47 | ||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 42,837 | 42,639 | 42,819 | 42,526 | ||||||||||||
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS | 436 | 271 | 219 | 381 | ||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED | 43,273 | 42,910 | 43,038 | 42,907 | ||||||||||||
ANTI-DILUTIVE SECURITIES: | ||||||||||||||||
Common share options and restricted share units | 854 | 1,215 | 1,298 | 1,073 | ||||||||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | — | $ | — | $ | — | $ | 0.250 | ||||||||
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 | ||||||||
MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
NET EARNINGS | $ | 27,507 | $ | 5,079 | $ | 39,693 | $ | 20,279 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | 597 | 1,692 | 579 | 1,353 | ||||||||||||
Unrealized loss on cash flow hedge | (390 | ) | (297 | ) | (703 | ) | (1,184 | ) | ||||||||
Reclassification of gain on cash flow hedge | (77 | ) | — | (231 | ) | — | ||||||||||
Income taxes related to items of other comprehensive income | 115 | 222 | 230 | 445 | ||||||||||||
Other comprehensive income (loss), net of tax | 245 | 1,617 | (125 | ) | 614 | |||||||||||
COMPREHENSIVE INCOME | $ | 27,752 | $ | 6,696 | $ | 39,568 | $ | 20,893 | ||||||||
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 | ||||
Nine Months Ended June 30, | 2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings | $ | 39,693 | $ | 20,279 | ||||
Non-cash items included in net earnings: | ||||||||
Depreciation of property, plant and equipment | 3,762 | 3,984 | ||||||
Amortization of intangible assets | 5,604 | 2,778 | ||||||
Stock-based compensation | 2,809 | 2,728 | ||||||
Deferred income taxes | 2,214 | (852 | ) | |||||
Loss on disposition and write-down of fixed assets | — | 220 | ||||||
Change in accrued contingent consideration | (7,428 | ) | — | |||||
Change in the following, net of acquisitions: | ||||||||
Accounts receivable | (6,352 | ) | 1,014 | |||||
Inventories | (17,828 | ) | (67 | ) | ||||
Prepaid expenses and other current assets | 68 | (1,849 | ) | |||||
Accounts payable and accrued expenses | 4,422 | (1,703 | ) | |||||
Income taxes payable | 3,401 | 1,402 | ||||||
Other, net | 1,315 | 583 | ||||||
Net cash provided by operating activities | 31,680 | 28,517 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property, plant and equipment | (2,471 | ) | (3,314 | ) | ||||
Acquisition of Exalenz , net of cash acquired | (51,299 | ) | — | |||||
Acquisition of GenePOC business | — | (45,239 | ) | |||||
Net cash used for investing activities | (53,770 | ) | (48,553 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividends paid | — | (10,612 | ) | |||||
Payment on revolving credit facility | (27,000 | ) | — | |||||
Proceeds from revolving credit facility | 50,000 | 75,824 | ||||||
Payment of debt issuance costs | (116 | ) | (489 | ) | ||||
Payments on term loan | — | (50,250 | ) | |||||
Proceeds from exercise of stock options | — | 443 | ||||||
Net cash p rovided by | 22,884 | 14,916 | ||||||
Effect of Exchange Rate Changes on Cash and Equivalents | 254 | (451 | ) | |||||
Net Increase (Decrease) in Cash and Equivalents | 1,048 | (5,571 | ) | |||||
Cash and Equivalents at Beginning of Period | 62,397 | 60,763 | ||||||
Cash and Equivalents at End of Period | $ | 63,445 | $ | 55,192 | ||||
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 | ||||
June 30, 2020 (Unaudited) | September 30, 2019 | |||||||
CURRENT ASSETS | ||||||||
Cash and equivalents | $ | 63,445 | $ | 62,397 | ||||
Accounts receivable, less allowances of $527 and $537, respectively | 42,384 | 35,608 | ||||||
Inventories | 60,468 | 39,617 | ||||||
Prepaid expenses and other current assets | 7,909 | 7,139 | ||||||
Total current assets | 174,206 | 144,761 | ||||||
PROPERTY, PLANT AND EQUIPMENT, at Cost | ||||||||
Land | 986 | 982 | ||||||
Buildings and improvements | 32,132 | 31,904 | ||||||
Machinery, equipment and furniture | 67,563 | 64,155 | ||||||
Construction in progress | 1,455 | 522 | ||||||
Subtotal | 102,136 | 97,563 | ||||||
Less: accumulated depreciation and amortization | 71,328 | 66,996 | ||||||
Net property, plant and equipment | 30,808 | 30,567 | ||||||
OTHER ASSETS | ||||||||
Goodwill | 118,567 | 89,241 | ||||||
Other intangible assets, net | 83,363 | 60,243 | ||||||
Right-of-use assets | 6,472 | — | ||||||
Deferred income taxes | 5,701 | 156 | ||||||
Other assets | 670 | 510 | ||||||
Total other assets | 214,773 | 150,150 | ||||||
TOTAL ASSETS | $ | 419,787 | $ | 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 |
June 30, 2020 (Unaudited) | September 30, 2019 | |||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 13,492 | $ | 7,238 | ||||
Accrued employee compensation costs | 12,408 | 7,938 | ||||||
Current portion of acquisition consideration | 5,000 | — | ||||||
Current operating lease obligations | 1,827 | — | ||||||
Current government grant obligations | 577 | — | ||||||
Other accrued expenses | 4,856 | 3,758 | ||||||
Income taxes payable | 5,341 | 1,980 | ||||||
Total current liabilities | 43,501 | 20,914 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Acquisition consideration | 19,774 | 32,202 | ||||||
Post-employment benefits | 2,450 | 2,500 | ||||||
Fair value of interest rate swaps | 703 | — | ||||||
Long-term operating lease obligations | 4,887 | — | ||||||
Long-term debt | 98,824 | 75,824 | ||||||
Government grant obligations | 10,596 | — | ||||||
Long-term income taxes payable | 549 | 549 | ||||||
Deferred income taxes | 4,711 | 2,522 | ||||||
Other non-current liabilities | 457 | — | ||||||
Total non-current liabilities | 142,951 | 113,597 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred stock, 0 par value; 1,000,000 shares authorized; 0ne issued | — | — | ||||||
Common shares, 0 par value; 71,000,000 shares authorized, 42,839,088 and 42,712,296 shares issued, respectively | — | — | ||||||
Additional paid-in capital | 135,634 | 132,834 | ||||||
Retained earnings | 102,801 | 63,108 | ||||||
Accumulated other comprehensive loss | (5,100 | ) | (4,975 | ) | ||||
Total shareholders’ equity | 233,335 | 190,967 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 419,787 | $ | 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 | ||||||||||||||||
THREE MONTHS ENDED JUNE 30, 2020 Balance at March 31, 2020 | 42,831 | $ | 134,584 | $ | 75,294 | $ | (5,345) | $ | 204,533 | |||||||||||
Conversion of restricted share units | 8 | — | — | — | — | |||||||||||||||
Stock compensation expense | — | 1,050 | — | — | 1,050 | |||||||||||||||
Net earnings | — | — | 27,507 | — | 27,507 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 597 | 597 | |||||||||||||||
Hedging activity, net of tax | — | — | — | (352) | (352) | |||||||||||||||
Balance at June 30, 2020 | 42,839 | $ | 135,634 | $ | 102,801 | $ | (5,100) | $ | 233,335 | |||||||||||
THREE MONTHS ENDED JUNE 30, 2019 Balance at March 31, 2019 | 42,515 | $ | 131,951 | $ | 54,074 | $ | (4,380) | $ | 181,645 | |||||||||||
Conversion of restricted share units and exercise of stock options | 156 | — | — | — | — | |||||||||||||||
Stock compensation expense | — | 360 | — | — | 360 | |||||||||||||||
Net earnings | — | — | 5,079 | — | 5,079 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 1,692 | 1,692 | |||||||||||||||
Hedging activity, net of tax | — | — | — | (223) | (223) | |||||||||||||||
Adoption of ASU 2018-02 | — | — | (148) | 148 | — | |||||||||||||||
Balance at June 30, 2019 | 42,671 | $ | 132,311 | $ | 59,005 | $ | (2,763) | $ | 188,553 | |||||||||||
Common Shares Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
NINE MONTHS ENDED JUNE 30, 2020 Balance at September 30, 2019 | 42,712 | $ | 132,834 | $ | 63,108 | $ | (4,975) | $ | 190,967 | |||||||||||
Conversion of restricted share units | 127 | (9) | — | — | (9) | |||||||||||||||
Stock compensation expense | — | 2,809 | — | — | 2,809 | |||||||||||||||
Net earnings | — | — | 39,693 | — | 39,693 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 579 | 579 | |||||||||||||||
Hedging activity, net of tax | — | — | — | (704) | (704) | |||||||||||||||
Balance at June 30, 2020 | 42,839 | $ | 135,634 | $ | 102,801 | $ | (5,100) | $ | 233,335 | |||||||||||
NINE MONTHS ENDED JUNE 30, 2019 Balance at September 30, 2018 | 42,400 | $ | 129,193 | $ | 49,602 | $ | (3,377) | $ | 175,418 | |||||||||||
Cash dividends paid - $0.250 per share | — | — | (10,612) | — | (10,612) | |||||||||||||||
Conversion of restricted share units and exercise of stock options | 271 | 390 | — | — | 390 | |||||||||||||||
Stock compensation expense | — | 2,728 | — | — | 2,728 | |||||||||||||||
Net earnings | — | — | 20,279 | — | 20,279 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 1,353 | 1,353 | |||||||||||||||
Hedging activity, net of tax | — | — | — | (887) | (887) | |||||||||||||||
Adoption of ASU 2014-09 | — | — | (116) | — | (116) | |||||||||||||||
Adoption of ASU 2018-02 | — | — | (148) | 148 | — | |||||||||||||||
Balance at June 30, 2019 | 42,671 | $ | 132,311 | $ | 59,005 | $ | (2,763) | $ | 188,553 | |||||||||||
1. | Basis of Presentation |
2. | Significant Accounting Policies |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2020 | 2019 | Inc (Dec) | 2020 | 2019 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Americas | $ | 17,575 | $ | 27,356 | (36 | )% | $ | 72,980 | $ | 84,042 | (13 | )% | ||||||||||||
EMEA | 3,576 | 5,076 | (30 | )% | 16,853 | 17,427 | (3 | )% | ||||||||||||||||
ROW | 447 | 686 | (35 | )% | 1,498 | 1,814 | (17 | )% | ||||||||||||||||
Total Diagnostics | 21,598 | 33,118 | (35 | )% | 91,331 | 103,283 | (12 | )% | ||||||||||||||||
Life Science- | ||||||||||||||||||||||||
Americas | 22,015 | 4,369 | 404 | % | 30,642 | 14,347 | 114 | % | ||||||||||||||||
EMEA | 26,070 | 6,389 | 308 | % | 40,977 | 21,608 | 90 | % | ||||||||||||||||
ROW | 15,114 | 4,564 | 231 | % | 26,564 | 10,930 | 143 | % | ||||||||||||||||
Total Life Science | 63,199 | 15,322 | 312 | % | 98,183 | 46,885 | 109 | % | ||||||||||||||||
Consolidated | $ | 84,797 | $ | 48,440 | 75 | % | $ | 189,514 | $ | 150,168 | 26 | % | ||||||||||||
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 | )% | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2020 | 2019 | Inc (Dec) | 2020 | 2019 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Molecular assays | $ | 3,182 | $ | 5,894 | (46 | )% | $ | 17,259 | $ | 20,208 | (15 | )% | ||||||||||||
Non -m olecular assays | 18,416 | 27,224 | (32 | )% | 74,072 | 83,075 | (11 | ) % | ||||||||||||||||
Total Diagnostics | $ | 21,598 | $ | 33,118 | (35 | )% | $ | 91,331 | $ | 103,283 | (12 | )% | ||||||||||||
Life Science- | ||||||||||||||||||||||||
Molecular reagents | $ | 38,784 | $ | 5,495 | 606 | % | $ | 55,691 | $ | 17,495 | 218 | % | ||||||||||||
Immunological reagents | 24,415 | 9,827 | 148 | % | 42,492 | 29,390 | 45 | % | ||||||||||||||||
Total Life Science | $ | 63,199 | $ | 15,322 | 312 | % | $ | 98,183 | $ | 46,885 | 109 | % | ||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2020 | 2019 | Inc (Dec) | 2020 | 2019 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Gastrointestinal assays | $ | 9,584 | $ | 17,232 | (44 | )% | $ | 39,644 | $ | 52,024 | (24 | )% | ||||||||||||
Respiratory illness assays | 5,052 | 5,708 | (11 | )% | 23,664 | 21,242 | 11 | % | ||||||||||||||||
Blood chemistry assays | 3,364 | 4,666 | (28 | ) % | 12,508 | 13,364 | (6 | )% | ||||||||||||||||
Other | 3,598 | 5,512 | (35 | )% | 15,515 | 16,653 | (7 | )% | ||||||||||||||||
Total Diagnostics | $ | 21,598 | $ | 33,118 | (35 | )% | $ | 91,331 | $ | 103,283 | (12 | )% | ||||||||||||
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 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 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 | ||||||||||||||||
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 March 31, 2020 | $ | (25,898 | ) | $ | — | $ | — | $ | (25,898 | ) | ||||||
As of September 30, 201 9 | $ | (27,202 | ) | $ | — | $ | — | $ | (27,202 | ) |
Fair Value Measurements Using Inputs Considered as | ||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Interest rate swaps (see Note 9) - | ||||||||||||||||
As of June 30, 2020 | $ | (703 | ) | $ | — | $ | (703 | ) | $ | — | ||||||
As of September 30, 2019 | $ | — | $ | — | $ | — | $ | — | ||||||||
Contingent consideration - | ||||||||||||||||
As of June 30, 2020 | $ | (19,774 | ) | $ | — | $ | — | $ | (19,774 | ) | ||||||
As of September 30, 2019 | $ | (27,202 | ) | $ | — | $ | — | $ | (27,202 | ) | ||||||
Government grant obligations - | ||||||||||||||||
As of June 30, 2020 | $ | (11,173 | ) | $ | — | $ | (11,173 | ) | $ | — | ||||||
As of September 30, 2019 | $ | — | $ | — | $ | — | $ | — |
(c) | Recent Accounting Pronouncements – |
(d) | Reclassifications – |
3. |
PRELIMINARY | ||||
Fair value of assets acquired - | ||||
Cash | $ | 5,006 | ||
Accounts receivable | 637 | |||
Inventories | 4,329 | |||
Other current assets | 851 | |||
Property, plant and equipment | 544 | |||
Goodwill | 29,288 | |||
Other intangible assets (estimated useful life): | ||||
Non-compete agreement (5 years) | 120 | |||
Trade name (10 years) | 3,540 | |||
Technology (15 years) | 5,590 | |||
Customer relationships (10 years) | 19,370 | |||
Right-of-use assets | 1,358 | |||
Deferred tax assets, net | 5,566 | |||
76,199 | ||||
Fair value of liabilities assumed - | ||||
Accounts payable and accrued expenses (including current portion of lease and government grant obligations) | 7,757 | |||
Long-term lease obligations | 1,054 | |||
Long-term government grant obligations | 10,792 | |||
Other non-current liabilities | 291 | |||
19,894 | ||||
Total consideration paid (including $8,068 to payoff long-term debt) | $ | 56,305 | ||
(i) | a |
(ii) | one $4,000 installment and o ne $10,000 installment (originally two $10,000 installments contingent upon the achievement of certain product development milestones if achieved by September 30, 2020 and March 31, 2021, ) ; 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) | ||||||||||
Fair value of assets acquired - | ||||||||||||
Accounts receivable | $ | 58 | $ | (1 | ) | $ | 57 | |||||
Inventories | 1,617 | (106 | ) | 1,511 | ||||||||
Other current assets | 77 | 7 | 84 | |||||||||
Property, plant and equipment | 1,520 | (96 | ) | 1,424 | ||||||||
Goodwill | 34,482 | 100 | 34,582 | |||||||||
Other intangible assets (estimated useful life): | ||||||||||||
License agreement (10 years) | 5,990 | — | 5,990 | |||||||||
Technology (15 years) | 34,040 | 96 | 34,136 | |||||||||
Government grant (1.33 years) | 800 | — | 800 | |||||||||
78,584 | — | 78,584 | ||||||||||
Fair value of liabilities assumed - | ||||||||||||
Accounts payable and accrued expenses | 1,082 | (24 | ) | 1,058 | ||||||||
Total consideration paid (including contingent consideration estimated at $27,202) | $ | 77,502 | $ | 24 | $ | 77,526 | ||||||
Fair value of assets acquired - | ||||
Accounts receivable | $ | 57 | ||
Inventories | 1,511 | |||
Other current assets | 84 | |||
Property, plant and equipment | 1,424 | |||
Goodwill | 34,582 | |||
Other intangible assets (estimated useful life): | ||||
License agreement (10 years) | 5,990 | |||
Technology (15 years) | 34,136 | |||
Government grant (1.33 years) | 800 | |||
78,584 | ||||
Fair value of liabilities assumed - | ||||
Accounts payable and accrued expenses | 1,058 | |||
Total consideration paid (including contingent C onsideration originally estimated at $27,202) | $ | 77,526 | ||
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 June 30, | Nine Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Revenues | $ | 85,083 | $ | 52,319 | $ | 196,978 | $ | 160,887 | ||||||||
Net Earnings | $ | 28,189 | $ | (9 | ) | $ | 39,376 | $ | 5,093 |
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 | ) | ||
Three Months Ended | Nine Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Adjustments to Net Revenues | ||||||||||||||||
Exalenz and GenePOC pre-acquisition revenues | $ | 286 | $ | 3,879 | $ | 7,464 | $ | 10,719 | ||||||||
Adjustments to Net Earnings | ||||||||||||||||
Exalenz and GenePOC pre-acquisition net losses | $ | (4,919 | ) | $ | (3,486 | ) | $ | (6,398 | ) | $ | (12,924 | ) | ||||
Pro forma adjustments: | ||||||||||||||||
Meridian acquisition-related costs | 1,641 | — | 3,428 | — | ||||||||||||
Exalenz and GenePOC transaction-related costs | 4,104 | — | 4,550 | — | ||||||||||||
Remove net impact of non-continuing personnel, locations or activities | (447 | ) | 457 | (305 | ) | 2,949 | ||||||||||
Incremental depreciation and amortization | (224 | ) | (1,739 | ) | (2,016 | ) | (4,787 | ) | ||||||||
Incremental interest costs, net | 444 | (599 | ) | (183 | ) | (1,346 | ) | |||||||||
Tax effects of pro forma adjustments and recognizing benefit on resulting Exalenz losses | 83 | 279 | 607 | 922 | ||||||||||||
Total Adjustments to Net Earnings | $ | 682 | $ | (5,088 | ) | $ | (317 | ) | $ | (15,186 | ) | |||||
4. | Restructuring |
Employee Separation and Related Costs | Lease and Other Contract Termination Fees | Other | Total | Employee Separation and Related Costs | Lease and Other Contract Termination Fees | Other | Total | |||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 1,010 | $ | 12 | $ | 114 | $ | 1,136 | $ | 1,010 | $ | 12 | $ | 114 | $ | 1,136 | ||||||||||||||||
Restructuring charges | 482 | 86 | — | 568 | 575 | 86 | — | 661 | ||||||||||||||||||||||||
Reversal of prior period accruals | (41 | ) | — | — | (41 | ) | (41 | ) | — | — | (41 | ) | ||||||||||||||||||||
Payments | (1,367 | ) | (98 | ) | (114 | ) | (1,579 | ) | (1,515 | ) | (98 | ) | (114 | ) | (1,727 | ) | ||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | 84 | $ | — | $ | — | $ | 84 | ||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 29 | $ | — | $ | — | $ | 29 | ||||||||||||||||||||||||
5. | Cash and Equivalents |
March 31, 2020 | September 30, 2019 | June 30, 2020 | September 30, 2019 | ||||||||||||||
June 30, 2020 | September 30, 2019 | ||||||||||||||||
Institutional money market funds | $ | 1,015 | $ | 20,913 | $ | 1,016 | $ | 20,913 | |||||||||
Cash on hand, unrestricted | 48,535 | 41,484 | 62,429 | 41,484 | |||||||||||||
Total | $ | 49,550 | $ | 62,397 | $ | 63,445 | $ | 62,397 | |||||||||
6. | Inventories |
March 31, 2020 | September 30, 2019 | June 30, 2020 | September 30, 2019 | ||||||||||||||
June 30, 2020 | September 30, 2019 | ||||||||||||||||
Raw materials | $ | 9,103 | $ | 7,455 | $ | 10,712 | $ | 7,455 | |||||||||
Work-in-process | 12,856 | 11,504 | 17,515 | 11,504 | |||||||||||||
Finished goods - instruments | 827 | 935 | 2,002 | 935 | |||||||||||||
Finished goods - kits and reagents | 18,222 | 19,723 | 30,239 | 19,723 | |||||||||||||
Total | $ | 41,008 | $ | 39,617 | $ | 60,468 | $ | 39,617 | |||||||||
7. | Leasing Arrangements |
Three Months | Six Months | |||||||||||||||||||||||||||||||
Ended March 31, | Ended March 31, | Three Months Ended June 30, | Nine Months Ended | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease | ||||||||||||||||||||||||||||||||
Operating cash flows from operating leases | $ | 391 | $ | — | $ | 778 | $ | — | $ | 435 | $ | — | $ | 1,213 | $ | — | ||||||||||||||||
March 31, 2020 | June 30, 2020 | ||||||||
June 30, 2020 | |||||||||
Remainder of 2020 | $ | 768 | $ | 522 | |||||
2021 | 1,515 | 2,011 | |||||||
2022 | 1,302 | 1,647 | |||||||
2023 | 943 | 1,179 | |||||||
2024 | 692 | 928 | |||||||
Thereafter | 600 | 916 | |||||||
Total lease payments | 5,820 | 7,203 | |||||||
Less amount of lease payment representing interest | (359 | ) | (489 | ) | |||||
Total present value of lease payments | $ | 5,461 | $ | 6,714 | |||||
September 30, 2019 | ||||
2020 | $ | 1,528 | ||
2021 | 1,451 | |||
2022 | 1,293 | |||
2023 | 967 | |||
2024 | 712 | |||
Thereafter | 616 | |||
Total | $ | 6,567 | ||
8. | Intangible Assets |
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 | ||||||||
June 30, 2020 | September 30, 2019 | |||||||||||||||
Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||||
Manufacturing technologies, core products and cell lines | $ | 61,782 | $ | 17,755 | $ | 56,193 | $ | 15,096 | ||||||||
Trade names, licenses and patents | 18,045 | 7,291 | 14,494 | 6,094 | ||||||||||||
Customer lists, customer relationships and supply agreements | 43,666 | 15,349 | 24,274 | 14,110 | ||||||||||||
Government grants | 794 | 645 | 814 | 232 | ||||||||||||
Non-compete agreements | 120 | 4 | — | — | ||||||||||||
Total | $ | $ | 41,044 | $ | 95,775 | $ | 35,532 | |||||||||
9. | Bank Credit Arrangements |
10. | Reportable Segments and Major Customers Information |
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 | ||||||||||||||
Diagnostics | Life Science | Corporate (1) | Eliminations (2) | Total | ||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 21,598 | $ | 63,199 | $ | — | $ | — | $ | 84,797 | ||||||||||
Inter-segment | 86 | 56 | — | (142 | ) | — | ||||||||||||||
Operating income | (2,731 | ) | 40,253 | (2,849 | ) | (8 | ) | 34,665 | ||||||||||||
Goodwill (June 30, 2020) | 99,652 | 18,915 | — | — | 118,567 | |||||||||||||||
Other intangible assets, net (June 30, 2020) | 83,304 | 59 | — | — | 83,363 | |||||||||||||||
Total assets (June 30, 2020) | 303,439 | 116,353 | — | (5 | ) | 419,787 | ||||||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 33,118 | $ | 15,322 | $ | — | $ | — | $ | 48,440 | ||||||||||
Inter-segment | 146 | 44 | — | (190 | ) | — | ||||||||||||||
Operating income | 5,731 | 3,639 | (2,929 | ) | 23 | 6,464 | ||||||||||||||
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 | ||||||||||||||
Nine Months Ended June 30, 2020 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 91,331 | $ | 98,183 | $ | — | $ | — | $ | 189,514 | ||||||||||
Inter-segment | 264 | 176 | — | (440 | ) | — | ||||||||||||||
Operating income | 6,469 | 53,182 | (7,832 | ) | 31 | 51,850 | ||||||||||||||
Nine Months Ended June 30, 2019 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 103,283 | $ | 46,885 | $ | — | $ | — | $ | 150,168 | ||||||||||
Inter-segment | 398 | 273 | — | (671 | ) | — | ||||||||||||||
Operating income | 22,330 | 12,906 | (8,450 | ) | 64 | 26,850 | ||||||||||||||
(1) | Includes Restructuring Costs and Selected Legal Costs of the three months ended June 30, 2020 and 2019, respectively. |
(2) | Eliminations consist of inter-segment transactions. |
Three Months | Six Months | Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||||||||||
Ended March 31, | Ended March 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Segment operating income | $ | 14,687 | $ | 12,051 | $ | 22,168 | $ | 25,907 | $ | 37,514 | $ | 9,393 | $ | 59,682 | $ | 35,300 | |||||||||||||||||
Corporate operating expenses | (2,896 | ) | (2,216 | ) | (4,983 | ) | (5,521 | ) | (2,849 | ) | (2,929 | ) | (7,832 | ) | (8,450 | ) | |||||||||||||||||
Interest income | 23 | 204 | 134 | 353 | 3 | 194 | 137 | 547 | |||||||||||||||||||||||||
Interest expense | (532 | ) | (347 | ) | (1,299 | ) | (710 | ) | (703 | ) | (448 | ) | (2,002 | ) | (1,158 | ) | |||||||||||||||||
Other, net | 1,365 | (445 | ) | 653 | (306 | ) | 908 | 268 | 1,561 | (38 | ) | ||||||||||||||||||||||
Consolidated earnings before income taxes | $ | 12,647 | $ | 9,247 | $ | 16,673 | $ | 19,723 | $ | 34,873 | $ | 6,478 | $ | 51,546 | $ | 26,201 | |||||||||||||||||
11. | Litigation Matters |
12. | Subsequent |
(i) | significantly higher revenue in the Life Science operating segment, due COVID-19 related PCR and antibody tests; |
(ii) | higher research and development spending in the Diagnostics segment ($ |
(iii) | increased cash-based incentive compensation ($ |
(iv) | increased intangible asset amortization, primarily resulting from purchase accounting amortization related to the |
(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 ($ |
(vi) | a decrease in the fair value of the earnout obligation for the acquisition of the GenePOC business ($ |
(vii) | higher gains related to foreign currency |
- | By Reportable Segment & Geographic Region |
- | By Product Platform/Type |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||||
Gross Profit | $ | 34,454 | $ | 29,338 | 17 | % | $ | 61,894 | $ | 60,910 | 2 | % | ||||||||||||
Gross Profit Margin | 60 | % | 58 | % | 2 points | 59 | % | 60 | % | -1 point |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||||
Gross Profit | $ | 55,852 | $ | 28,259 | 98 | % | $ | 117,746 | $ | 89,169 | 32 | % | ||||||||||||
Gross Profit Margin | 66 | % | 58 | % | 8 points | 62 | % | 59 | % | 3 points |
Three Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2019: | ||||||||||||||||||||
Diagnostics | $ | 3,855 | $ | 5,525 | $ | 3,830 | $ | 1,372 | $ | 14,582 | ||||||||||
Life Science | 739 | 1,222 | 2,323 | — | 4,284 | |||||||||||||||
Corporate | — | — | 1,849 | 1,080 | 2,929 | |||||||||||||||
Total Expenses (2019 Quarter) | $ | $ | 6,747 | $ | 8,002 | $ | 2,452 | $ | 21,795 | |||||||||||
Fiscal 2020: | ||||||||||||||||||||
Diagnostics | $ | 6,192 | $ | 4,996 | $ | 7,055 | $ | (4,387 | ) | $ | 13,856 | |||||||||
Life Science | 551 | 1,265 | 2,669 | (3 | ) | 4,482 | ||||||||||||||
Corporate | — | — | 2,715 | 134 | 2,849 | |||||||||||||||
Total Expenses (2020 Quarter) | $ | $ | 6,261 | $ | 12,439 | $ | (4,256 | ) | $ | 21,187 | ||||||||||
Nine Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2019: | ||||||||||||||||||||
Diagnostics | $ | 10,141 | $ | 17,048 | $ | 11,632 | $ | 2,219 | $ | 41,040 | ||||||||||
Life Science | 2,153 | 4,173 | 6,478 | 25 | 12,829 | |||||||||||||||
Corporate | — | — | 6,178 | 2,272 | 8,450 | |||||||||||||||
Total Expenses (2019 Year-to-Date) | $ | $ | 21,221 | $ | 24,288 | $ | 4,516 | $ | 62,319 | |||||||||||
Fiscal 2020: | ||||||||||||||||||||
Diagnostics | $ | 15,209 | $ | 15,709 | $ | 17,946 | $ | (3,575 | ) | $ | 45,289 | |||||||||
Life Science | 1,744 | 3,750 | 7,086 | 195 | 12,775 | |||||||||||||||
Corporate | — | — | 6,643 | 1,189 | 7,832 | |||||||||||||||
Total Expenses (2020 Year-to-Date) | $ | $ | 19,459 | $ | 31,675 | $ | (2,191 | ) | $ | 65,896 | ||||||||||
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 | % |
Three Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
2019 Expenses | $ | $ | 6,747 | $ | 8,002 | $ | 2,452 | $ | 21,795 | |||||||||||
% of Revenues | 9 | % | 14 | % | 17 | % | 5 | % | 45 | % | ||||||||||
Fiscal 2020 Increases/(Decreases): | ||||||||||||||||||||
Diagnostics | 2,337 | (529 | ) | 3,225 | (5,759 | ) | (726 | ) | ||||||||||||
Life Science | (188 | ) | 43 | 346 | (3 | ) | 198 | |||||||||||||
Corporate | — | — | 866 | (946 | ) | (80 | ) | |||||||||||||
2020 Expenses | $ | $ | 6,261 | $ | 12,439 | $ | (4,256 | ) | $ | 21,187 | ||||||||||
% of Revenues | 8 | % | 7 | % | 15 | % | (5 | )% | 25 | % | ||||||||||
% Increase (Decrease) | 47 | % | (7 | )% | 55 | % | (274 | ) % | (3 | ) % |
Nine Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
2019 Expenses | $ | $ | 21,221 | $ | 24,288 | $ | 4,516 | $ | 62,319 | |||||||||||
% of Revenues | 8 | % | 14 | % | 16 | % | 3 | % | 41 | % | ||||||||||
Fiscal 2020 Increases/(Decreases): | ||||||||||||||||||||
Diagnostics | 5,068 | (1,339 | ) | 6,314 | (5,794 | ) | 4,249 | |||||||||||||
Life Science | (409 | ) | (423 | ) | 608 | 170 | (54 | ) | ||||||||||||
Corporate | — | — | 465 | (1,083 | ) | (618 | ) | |||||||||||||
2020 Expenses | $ | $ | 19,459 | $ | 31,675 | (2,191 | ) | $ | 65,896 | |||||||||||
% of Revenues | 9 | % | 10 | % | 17 | % | (1 | )% | 35 | % | ||||||||||
% Increase (Decrease) | 38 | % | (8 | ) % | 30 | % | (149 | )% | 6 | % |
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 | % |
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) |