☒ | 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 | ||||||||||
Item 2. | ||||||||||
21-30 | ||||||||||
Item 3. | ||||||||||
30 | ||||||||||
Item 4. | ||||||||||
30 | ||||||||||
PART II. | ||||||||||
Item 1. | ||||||||||
31 | ||||||||||
Item 1A. | ||||||||||
31 | ||||||||||
Item 6. | 31 | |||||||||
32 |
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, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
NET REVENUES | $ | 85,264 | $ | 57,296 | $ | 178,181 | $ | 104,717 | ||||||||
COST OF SALES | 27,492 | 22,750 | 58,861 | 42,520 | ||||||||||||
GROSS PROFIT | 57,772 | 34,546 | 119,320 | 62,197 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Research and development | 6,065 | 5,315 | 11,716 | 10,078 | ||||||||||||
Selling and marketing | 6,540 | 6,529 | 13,561 | 13,257 | ||||||||||||
General and administrative | 12,925 | 10,628 | 24,863 | 19,612 | ||||||||||||
Acquisition-related costs | — | 1,787 | — | 1,787 | ||||||||||||
Change in fair value of acquisition consideration | (2,989 | ) | (2,491 | ) | (1,942 | ) | (1,304 | ) | ||||||||
Restructuring costs | — | 252 | — | 527 | ||||||||||||
Selected legal costs | 1,030 | 735 | 2,257 | 1,055 | ||||||||||||
Total operating expenses | 23,571 | 22,755 | 50,455 | 45,012 | ||||||||||||
OPERATING INCOME | 34,201 | 11,791 | 68,865 | 17,185 | ||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest income | 6 | 23 | 15 | 134 | ||||||||||||
Interest expense | (472 | ) | (532 | ) | (1,006 | ) | (1,299 | ) | ||||||||
RADx grant income | 200 | — | 1,000 | — | ||||||||||||
Other, net | (883 | ) | 1,365 | (1,574 | ) | 653 | ||||||||||
Total other income (expense) | (1,149 | ) | 856 | (1,565 | ) | (512 | ) | |||||||||
EARNINGS BEFORE INCOME TAXES | 33,052 | 12,647 | 67,300 | 16,673 | ||||||||||||
INCOME TAX PROVISION | 6,750 | 3,288 | 14,219 | 4,487 | ||||||||||||
NET EARNINGS | $ | 26,302 | $ | 9,359 | $ | 53,081 | $ | 12,186 | ||||||||
BASIC EARNINGS PER COMMON SHARE | $ | 0.61 | $ | 0.22 | $ | 1.23 | $ | 0.28 | ||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.60 | $ | 0.22 | $ | 1.21 | $ | 0.28 | ||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — BASIC | 43,244 | 42,830 | 43,171 | 42,810 | ||||||||||||
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS | 878 | 138 | 789 | 143 | ||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — DILUTED | 44,122 | 42,968 | 43,960 | 42,953 | ||||||||||||
ANTI-DILUTIVE SECURITIES: | ||||||||||||||||
Common share options and restricted share units | 166 | 1,635 | 169 | 1,520 | ||||||||||||
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 | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
NET EARNINGS | $ | 26,302 | $ | 9,359 | $ | 53,081 | $ | 12,186 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | 79 | (2,786 | ) | 3,380 | (18 | ) | ||||||||||
Unrealized gain (loss) on cash flow hedge | 439 | (313 | ) | 460 | (313 | ) | ||||||||||
Reclassification of amortization of gain on cash flow hedge | (77 | ) | (77 | ) | (154 | ) | (154 | ) | ||||||||
Income taxes related to items of other comprehensive income (loss) | (80 | ) | 96 | (66 | ) | 115 | ||||||||||
Other comprehensive income (loss), net of tax | 361 | (3,080 | ) | 3,620 | (370 | ) | ||||||||||
COMPREHENSIVE INCOM E | $ | 26,663 | $ | 6,279 | $ | 56,701 | $ | 11,816 | ||||||||
Six Months Ended March 31, | 2021 | 2020 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings | $ | 53,081 | $ | 12,186 | ||||
Non-cash items included in net earnings: | ||||||||
Depreciation of property, plant and equipment | 3,072 | 2,439 | ||||||
Amortization of intangible assets | 4,363 | 3,449 | ||||||
Stock compensation expense | 2,291 | 1,759 | ||||||
Deferred income taxes | (777 | ) | 656 | |||||
Change in fair value of acquisition consideration | (1,942 | ) | (1,304 | ) | ||||
Change in the following: | ||||||||
Accounts receivable | (5,267 | ) | (4,950 | ) | ||||
Inventories | (12,185 | ) | (2,511 | ) | ||||
Prepaid expenses and other current assets | 1,440 | 1,278 | ||||||
Accounts payable and accrued expenses | 77 | 1,621 | ||||||
Income taxes payable | (2,698 | ) | 400 | |||||
Other, net | 36 | 692 | ||||||
Net cash provided by operating activities | 41,491 | 15,715 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property, plant and equipment | (11,955 | ) | (1,543 | ) | ||||
Payment of acquisition consideration holdback | (5,000 | ) | — | |||||
Net cash used in investing activities | (16,955 | ) | (1,543 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Payment on revolving credit facility | (18,824 | ) | (27,000 | ) | ||||
Payment of debt issuance costs | — | (116 | ) | |||||
Proceeds from exercise of stock options | 2,852 | — | ||||||
Net cash used in financing activities | (15,972 | ) | (27,116 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1,296 | 97 | ||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 9,860 | (12,847 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 53,514 | 62,397 | ||||||
Cash and Cash Equivalents at End of Period | $ | 63,374 | $ | 49,550 | ||||
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, | ||||||||
2021 | September 30, | |||||||
(Unaudited) | 2020 | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 63,374 | $ | 53,514 | ||||
Accounts receivable, less allowances of $505 and $513, respectively | 44,895 | 38,512 | ||||||
Inventories, net | 72,534 | 61,264 | ||||||
Prepaid expenses and other current assets | 7,491 | 8,900 | ||||||
Total current assets | 188,294 | 162,190 | ||||||
PROPERTY, PLANT AND EQUIPMENT, at Cost | ||||||||
Land | 991 | 991 | ||||||
Buildings and improvements | 32,326 | 32,188 | ||||||
Machinery, equipment and furniture | 74,173 | 69,854 | ||||||
Construction in progress | 10,779 | 1,200 | ||||||
Subtotal | 118,269 | 104,233 | ||||||
Less: accumulated depreciation and amortization | 76,303 | 73,113 | ||||||
Property, plant and equipment, net | 41,966 | 31,120 | ||||||
OTHER ASSETS | ||||||||
Goodwill | 115,296 | 114,186 | ||||||
Other intangible assets, net | 78,834 | 83,197 | ||||||
Right-of-use | 6,297 | 6,336 | ||||||
Deferred income taxes | 8,017 | 7,647 | ||||||
Other assets | 465 | 585 | ||||||
Total other assets | 208,909 | 211,951 | ||||||
TOTAL ASSETS | $ | 439,169 | $ | 405,261 | ||||
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 | ||||
MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(dollar amounts in thousands) | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
March 31, | September 30, | |||||||
2021 | 2020 | |||||||
(Unaudited) | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 16,714 | $ | 11,969 | ||||
Accrued employee compensation costs | 12,634 | 16,661 | ||||||
Current portion of acquisition consideration | 11,296 | 12,619 | ||||||
Current operating lease obligations | 1,892 | 1,789 | ||||||
Current government grant obligations | 608 | 600 | ||||||
Other accrued expenses | 5,664 | 5,362 | ||||||
Income taxes payable | 1,502 | 3,524 | ||||||
Total current liabilities | 50,310 | 52,524 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Acquisition consideration | 7,671 | 13,290 | ||||||
Post-employment benefits | 2,429 | 2,493 | ||||||
Fair value of interest rate swaps | 254 | 713 | ||||||
Long-term operating lease obligations | 4,555 | 4,678 | ||||||
Long-term debt | 50,000 | 68,824 | ||||||
Government grant obligations | 10,537 | 10,524 | ||||||
Long-term income taxes payable | 374 | 549 | ||||||
Deferred income taxes | 3,389 | 3,804 | ||||||
Other non-current liabilities | 177 | 233 | ||||||
Total non-current liabilities | 79,386 | 105,108 | ||||||
COMMITMENTS AND CONTINGENCIES | 0 | 0 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred stock, 0 par value; 1,000,000 shares authorized; NaN issued | 0— | 0— | ||||||
Common shares, 0 par value; 71,000,000 shares authorized, 43,329,294 and 43,068,842 shares issued, respectively | 0— | 0— | ||||||
Additional paid-in capital | 145,338 | 140,195 | ||||||
Retained earnings | 162,375 | 109,294 | ||||||
Accumulated other comprehensive income (loss) | 1,760 | (1,860 | ) | |||||
Total shareholders’ equity | 309,473 | 247,629 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 439,169 | $ | 405,261 | ||||
Common Shares Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2021 | ||||||||||||||||||||
Balance at December 31, 2020 | 43,124 | $ | 141,395 | $ | 136,073 | $ | 1,399 | $ | 278,867 | |||||||||||
Conversion of restricted share units and exercise of stock options | 205 | 2,893 | — | — | 2,893 | |||||||||||||||
Stock compensation expense | — | 1,050 | — | — | 1,050 | |||||||||||||||
Net earnings | — | — | 26,302 | — | 26,302 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 79 | 79 | |||||||||||||||
Hedging activity, net of tax | — | — | — | 282 | 282 | |||||||||||||||
Balance at March 31, 2021 | 43,329 | $ | 145,338 | $ | 162,375 | $ | 1,760 | $ | 309,473 | |||||||||||
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 and exercise of stock options | 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 | ||||||||||
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 | ||||||||||||||||
SIX MONTHS ENDED MARCH 31, 2021 | ||||||||||||||||||||
Balance at September 30, 2020 | 43,069 | $ | 140,195 | $ | 109,294 | $ | (1,860 | ) | $ | 247,629 | ||||||||||
Conversion of restricted share units and exercise of stock options | 260 | 2,852 | — | — | 2,852 | |||||||||||||||
Stock compensation expense | — | 2,291 | — | — | 2,291 | |||||||||||||||
Net earnings | — | — | 53,081 | — | 53,081 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 3,380 | 3,380 | |||||||||||||||
Hedging activity, net of tax | — | — | — | 240 | 240 | |||||||||||||||
Balance at March 31, 2021 | 43,329 | $ | 145,338 | $ | 162,375 | $ | 1,760 | $ | 309,473 | |||||||||||
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 and exercise of stock options | 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 | ||||||||||
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. | Nature of Business |
2. | Basis of Presentation |
Significant Accounting Policies |
(b) | Reclassifications – |
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 | % | ||||||||||||
4. | Revenue Recognition |
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 | )% | ||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Inc (Dec) | 2021 | 2020 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Americas | $ | 25,290 | $ | 27,670 | (9 | )% | $ | 48,824 | $ | 55,405 | (12 | )% | ||||||||||||
EMEA | 6,071 | 6,777 | (10 | )% | 12,101 | 13,277 | (9 | )% | ||||||||||||||||
ROW | 588 | 495 | 19 | % | 1,345 | 1,051 | 28 | % | ||||||||||||||||
Total Diagnostics | 31,949 | 34,942 | (9 | )% | 62,270 | 69,733 | (11 | )% | ||||||||||||||||
Life Science- | ||||||||||||||||||||||||
Americas | 13,550 | 4,612 | 194 | % | 32,296 | 8,623 | 275 | % | ||||||||||||||||
EMEA | 21,773 | 9,946 | 119 | % | 54,066 | 14,907 | 263 | % | ||||||||||||||||
ROW | 17,992 | 7,796 | 131 | % | 29,549 | 11,454 | 158 | % | ||||||||||||||||
Total Life Science | 53,315 | 22,354 | 139 | % | 115,911 | 34,984 | 231 | % | ||||||||||||||||
Consolidated | $ | 85,264 | $ | 57,296 | 49 | % | $ | 178,181 | $ | 104,717 | 70 | % | ||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Inc (Dec) | 2021 | 2020 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Molecular assays | $ | 4,395 | $ | 7,238 | (39 | )% | $ | 8,985 | $ | 14,077 | (36 | )% | ||||||||||||
Non-molecular assays | 27,554 | 27,704 | (1 | )% | 53,285 | 55,656 | (4 | )% | ||||||||||||||||
Total Diagnostics | $ | 31,949 | $ | 34,942 | (9 | )% | $ | 62,270 | $ | 69,733 | (11 | )% | ||||||||||||
Life Science- | ||||||||||||||||||||||||
Molecular reagents | $ | 37,752 | $ | 11,534 | 227 | % | $ | 83,776 | $ | 16,902 | 396 | % | ||||||||||||
Immunological reagents | 15,563 | 10,820 | 44 | % | 32,135 | 18,082 | 78 | % | ||||||||||||||||
Total Life Science | $ | 53,315 | $ | 22,354 | 139 | % | $ | 115,911 | $ | 34,984 | 231 | % | ||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Inc (Dec) | 2021 | 2020 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Gastrointestinal assays | $ | 15,666 | $ | 14,014 | 12 | % | $ | 31,118 | $ | 30,060 | 4 | % | ||||||||||||
Respiratory illness assays | 3,686 | 10,863 | (66 | )% | 8,492 | 18,612 | (54 | )% | ||||||||||||||||
Blood chemistry assays | 4,358 | 4,194 | 4 | % | 8,753 | 9,142 | (4 | )% | ||||||||||||||||
Other | 8,239 | 5,871 | 40 | % | 13,907 | 11,919 | 17 | % | ||||||||||||||||
Total Diagnostics | $ | 31,949 | $ | 34,942 | (9 | )% | $ | 62,270 | $ | 69,733 | (11 | )% | ||||||||||||
5. | 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 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 | $ | — | $ | — | $ | — | $ | — |
Fair Value Measurements Using Inputs Considered as | ||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Interest rate swaps - | ||||||||||||||||
As of March 31, 2021 | $ | (254 | ) | $ | 0 | $ | (254 | ) | $ | 0 | ||||||
As of September 30, 2020 | $ | (713 | ) | $ | 0 | $ | (713 | ) | $ | 0 | ||||||
Contingent consideration - | ||||||||||||||||
As of March 31, 2021 | $ | (18,967 | ) | $ | 0 | $ | 0 | $ | (18,967 | ) | ||||||
As of September 30, 2020 | $ | (20,909 | ) | $ | 0 | $ | 0 | $ | (20,909 | ) |
6. | Business Combinations |
Three Months Ended March 31, 2021 | Six Months Ended March 31, 2021 | |||||||
Net revenues | $ | 2,784 | $ | 5,882 | ||||
Net loss | $ | (947 | ) | $ | (1,739 | ) | ||
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 | ||
PRELIMINARY | ||||||||||||
April 30, 2020 (as initially reported) | Measurement Period Adjustments | April 30, 2020 (as adjusted) | ||||||||||
Fair value of assets acquired - | ||||||||||||
Cash | $ | 5,006 | $ | — | $ | 5,006 | ||||||
Accounts receivable | 637 | — | 637 | |||||||||
Inventories | 4,329 | (296 | ) | 4,033 | ||||||||
Other current assets | 851 | 1,825 | 2,676 | |||||||||
Property, plant and equipment | 544 | (16 | ) | 528 | ||||||||
Goodwill | 29,288 | (4,461 | ) | 24,827 | ||||||||
Other intangible assets (estimated useful life): | ||||||||||||
Non-compete agreement (5 years) | 120 | (10 | ) | 110 | ||||||||
Trade name (10 years) | 3,540 | 320 | 3,860 | |||||||||
Technology (15 years) | 5,590 | 530 | 6,120 | |||||||||
Customer relationships (10 years) | 19,370 | 1,270 | 20,640 | |||||||||
Right-of-use | 1,358 | (47 | ) | 1,311 | ||||||||
Deferred tax assets, net | 5,566 | 1,178 | 6,744 | |||||||||
76,199 | 293 | 76,492 | ||||||||||
Fair value of liabilities assumed - | ||||||||||||
Accounts payable and accrued expenses (including current portion of lease and government grant obligations) | 7,757 | 251 | 8,008 | |||||||||
Long-term lease obligations | 1,054 | 42 | 1,096 | |||||||||
Long-term government grant obligations | 10,792 | �� | 10,792 | |||||||||
Other non-current liabilities | 291 | — | 291 | |||||||||
19,894 | 293 | 20,187 | ||||||||||
Total consideration paid (including $8,068 to pay off long-term debt) | $ | 56,305 | $ | — | $ | 56,305 | ||||||
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 Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenues | $ | 85,264 | $ | 60,701 | $ | 178,181 | $ | 111,895 | ||||||||
Net earnings | $ | 26,302 | $ | 8,064 | $ | 53,081 | $ | 9,246 |
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 | 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 | ) | |||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Adjustments to net revenues | ||||||||||||||||
Exalenz pre-acquisition net revenues | $ | 0 | $ | 3,405 | $ | 0 | $ | 7,178 | ||||||||
Adjustments to net earnings | ||||||||||||||||
Exalenz pre-acquisition net loss | $ | 0 | $ | (752 | ) | $ | 0 | $ | (1,504 | ) | ||||||
Pro forma adjustments: | ||||||||||||||||
Remove net impact of non-continuing personnel, locations oractivities | 0 | 490 | 0 | 591 | ||||||||||||
Incremental depreciation and amortization | 0 | (911 | ) | 0 | (1,824 | ) | ||||||||||
Incremental interest costs, net | 0 | (381 | ) | 0 | (772 | ) | ||||||||||
Tax effects of pro forma adjustments and recognizing benefit on resulting Exalenz losses | 0 | 259 | 0 | 569 | ||||||||||||
Total adjustments to net earnings | $ | 0 | $ | (1,295 | ) | $ | 0 | $ | (2,940 | ) | ||||||
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 | 575 | 86 | — | 661 | ||||||||||||
Reversal of prior period accruals | (41 | ) | — | — | (41 | ) | ||||||||||
Payments | (1,515 | ) | (98 | ) | (114 | ) | (1,727 | ) | ||||||||
�� | ||||||||||||||||
Balance at June 30, 2020 | $ | 29 | $ | — | $ | — | $ | 29 | ||||||||
7. | Cash and Cash Equivalents |
June 30, 2020 | September 30, 2019 | |||||||
Institutional money market funds | $ | 1,016 | $ | 20,913 | ||||
Cash on hand, unrestricted | 62,429 | 41,484 | ||||||
Total | $ | 63,445 | $ | 62,397 | ||||
March 31, 2021 | September 30, 2020 | |||||||
Institutional money market funds | $ | 1,017 | $ | 1,017 | ||||
Cash on hand, unrestricted | 62,357 | 52,497 | ||||||
Total | $ | 63,374 | $ | 53,514 | ||||
8. | Inventories, Net |
June 30, 2020 | September 30, 2019 | |||||||
Raw materials | $ | 10,712 | $ | 7,455 | ||||
Work-in-process | 17,515 | 11,504 | ||||||
Finished goods - instruments | 2,002 | 935 | ||||||
Finished goods - kits and reagents | 30,239 | 19,723 | ||||||
Total | $ | 60,468 | $ | 39,617 | ||||
March 31, 2021 | September 30, 2020 | |||||||
Raw materials | $ | 18,706 | $ | 11,966 | ||||
Work-in-process | 22,987 | 19,477 | ||||||
Finished goods - instruments | 1,933 | 1,594 | ||||||
Finished goods - kits and reagents | 28,908 | 28,227 | ||||||
Total | $ | 72,534 | $ | 61,264 | ||||
Leasing Arrangements |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Lease costs within cost of sales | $ | 198 | $ | 130 | $ | 356 | $ | 259 | ||||||||
Lease costs within operating expenses | 387 | 292 | 761 | 559 | ||||||||||||
Right-of-use | 612 | 222 | 692 | 222 |
March 31, 2021 | September 30, 2020 | |||||||
Weighted average remaining lease term | 3.8 years | 4.2 years | ||||||
Average discount rate | 3.4 | % | 3.7 | % |
2021 (represents remainder of fiscal year) | $ | 1,108 | ||
2022 | 2,016 | |||
2023 | 1,482 | |||
2024 | 1,108 | |||
2025 | 806 | |||
Thereafter | 331 | |||
Total lease payments | 6,851 | |||
Less amount of lease payments representing interest | (404 | ) | ||
Total present value of lease payments | $ | 6,447 | ||
Three Months Ended June 30, | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating cash flows from operating leases | $ | 435 | $ | — | $ | 1,213 | $ | — | ||||||||
June 30, 2020 | ||||
Remainder of 2020 | $ | 522 | ||
2021 | 2,011 | |||
2022 | 1,647 | |||
2023 | 1,179 | |||
2024 | 928 | |||
Thereafter | 916 | |||
Total lease payments | 7,203 | |||
Less amount of lease payment representing interest | (489 | ) | ||
Total present value of lease payments | $ | 6,714 | ||
Six Months Ended March 31, | 2021 | 2020 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||
Operating cash flows from operating leases | $ | 1,072 | $ | 778 | |||||
September 30, 2019 | ||||
2020 | $ | 1,528 | ||
2021 | 1,451 | |||
2022 | 1,293 | |||
2023 | 967 | |||
2024 | 712 | |||
Thereafter | 616 | |||
Total | $ | 6,567 | ||
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 | |||||||||
March 31, 2021 | September 30, 2020 | |||||||||||||||
Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||||
Manufacturing technologies, core products and cell lines | $ | 62,446 | $ | 20,756 | $ | 62,363 | $ | 18,750 | ||||||||
Trade names, licenses and patents | 18,524 | 8,813 | 18,425 | 7,801 | ||||||||||||
Customer lists, customer relationships and supply agreements | 45,287 | 17,944 | 45,071 | 16,210 | ||||||||||||
Government grants | 858 | 858 | 810 | 810 | ||||||||||||
Non-compete agreements | 110 | 20 | 110 | 11 | ||||||||||||
Total | $ | 127,225 | $ | 48,391 | $ | 126,779 | $ | 43,582 | ||||||||
11. | Bank i t Arrangements |
12. | Contingent Obligations and Non-Current Liabilities |
March 31, 2021 | September 30, 2020 | |||||||
Current liabilities | $ | 608 | $ | 600 | ||||
Non-current liabilities | $ | 10,537 | $ | 10,524 |
13. | National Institutes of Health Contracts |
14. | Reportable Segment and Major Customers Information |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Diagnostics | ||||||||||||||||
Customer A | 10 | % | 9 | % | 11 | % | 11 | % | ||||||||
Customer B | 10 | % | 13 | % | 10 | % | 14 | % | ||||||||
Customer C | 11 | % | 5 | % | 11 | % | 5 | % | ||||||||
Life Science | ||||||||||||||||
Customer D | 9 | % | 13 | % | 6 | % | 11 | % | ||||||||
Customer E | 9 | % | 5 | % | 14 | % | 4 | % | ||||||||
March 31, 2021 | September 30, 2020 | |||||||
Customer D | 10 | % | 8 | % | ||||
Customer E | 3 | % | 15 | % | ||||
Reportable |
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 | ||||||||||||||
Diagnostics | Life Science | Corporate (1) | Eliminations (2) | Total | ||||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 31,949 | $ | 53,315 | $ | — | $ | — | $ | 85,264 | ||||||||||
Inter-segment | 116 | 91 | — | (207 | ) | — | ||||||||||||||
Operating income | 2,421 | 36,089 | (4,325 | ) | 16 | 34,201 | ||||||||||||||
Goodwill (March 31, 2021) | 95,283 | 20,013 | — | — | 115,296 | |||||||||||||||
Other intangible assets, net (March 31, 2021) | 78,832 | 2 | — | — | 78,834 | |||||||||||||||
Total assets (March 31, 2021) | 313,271 | 125,947 | — | (49 | ) | 439,169 | ||||||||||||||
Three Months Ended March 31, 2020 | �� | |||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 34,942 | $ | 22,354 | $ | — | $ | — | $ | 57,296 | ||||||||||
Inter-segment | 81 | 55 | — | (136 | ) | — | ||||||||||||||
Operating income | 4,729 | 9,931 | (2,896 | ) | 27 | 11,791 | ||||||||||||||
Goodwill (September 30, 2020) | 94,855 | 19,331 | — | — | 114,186 | |||||||||||||||
Other intangible assets, net (September 30, 2020) | 83,179 | 18 | — | — | 83,197 | |||||||||||||||
Total assets (September 30, 2020) | 306,812 | 98,483 | — | (34 | ) | 405,261 | ||||||||||||||
Six Months Ended March 31, 2021 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 62,270 | $ | 115,911 | $ | — | $ | — | $ | 178,181 | ||||||||||
Inter-segment | 185 | 109 | — | (294 | ) | — | ||||||||||||||
Operating income | 1,239 | 75,886 | (8,288 | ) | 28 | 68,865 | ||||||||||||||
Six Months Ended March 31, 2020 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 69,733 | $ | 34,984 | $ | — | $ | — | $ | 104,717 | ||||||||||
Inter-segment | 178 | 120 | — | (298 | ) | — | ||||||||||||||
Operating income | 9,870 | 12,259 | (4,983 | ) | 39 | 17,185 |
(1) | Includes $1,030 and in the three and six months ended $685 and $1,055in the |
(2) | Eliminations consist of inter-segment transactions. |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Segment operating income | $ | 37,514 | $ | 9,393 | $ | 59,682 | $ | 35,300 | ||||||||
Corporate operating expenses | (2,849 | ) | (2,929 | ) | (7,832 | ) | (8,450 | ) | ||||||||
Interest income | 3 | 194 | 137 | 547 | ||||||||||||
Interest expense | (703 | ) | (448 | ) | (2,002 | ) | (1,158 | ) | ||||||||
Other, net | 908 | 268 | 1,561 | (38 | ) | |||||||||||
Consolidated earnings before income taxes | $ | 34,873 | $ | 6,478 | $ | 51,546 | $ | 26,201 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Operating income: | ||||||||||||||||
Diagnostics segment | $ | 2,421 | $ | 4,729 | $ | 1,239 | $ | 9,870 | ||||||||
Life Science segment | 36,089 | 9,931 | 75,886 | 12,259 | ||||||||||||
Eliminations | 16 | 27 | 28 | 39 | ||||||||||||
Total operating income | 38,526 | 14,687 | 77,153 | 22,168 | ||||||||||||
Corporate operating expenses | (4,325 | ) | (2,896 | ) | (8,288 | ) | (4,983 | ) | ||||||||
Interest income | 6 | 23 | 15 | 134 | ||||||||||||
Interest expense | (472 | ) | (532 | ) | (1,006 | ) | (1,299 | ) | ||||||||
RADx initiative grant income | 200 | — | 1,000 | — | ||||||||||||
Other, net | (883 | ) | 1,365 | (1,574 | ) | 653 | ||||||||||
Consolidated earnings before income taxes | $ | 33,052 | $ | 12,647 | $ | 67,300 | $ | 16,673 | ||||||||
15. Income | Taxes |
16. Litigation | Matters |
(i) | significantly higher revenue in the Life Science COVID-19 related PCR and |
(ii) | higher research and development spending in the Diagnostics segment |
(iii) | increased |
(iv) |
(v) | increased |
(vi) |
(vii) |
- | By Reportable Segment & Geographic Region |
- | By Product Platform/Type |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||
Gross profit | $ | 57,772 | $ | 34,546 | 67 | % | $ | 119,320 | $ | 62,197 | 92 | % | ||||||||||||||||
Gross profit margin | 68 | % | 60 | % | 8 points | 67 | % | 59 | % | 8 points |
Three Months Ended March 31, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2020: | ||||||||||||||||||||
Diagnostics | $ | 4,733 | $ | 5,401 | $ | 5,645 | $ | (505 | ) | $ | 15,274 | |||||||||
Life Science | 582 | 1,128 | 2,772 | 103 | 4,585 | |||||||||||||||
Corporate | — | — | 2,211 | 685 | 2,896 | |||||||||||||||
Total Expenses (2020 Quarter) | $ | 5,315 | $ | 6,529 | $ | 10,628 | $ | 283 | $ | 22,755 | ||||||||||
Fiscal 2021: | ||||||||||||||||||||
Diagnostics | $ | 5,478 | $ | 5,220 | $ | 6,553 | $ | (2,989 | ) | $ | 14,262 | |||||||||
Life Science | 587 | 1,320 | 3,077 | — | 4,984 | |||||||||||||||
Corporate | — | — | 3,295 | 1,030 | 4,325 | |||||||||||||||
Total Expenses (2021 Quarter) | $ | 6,065 | $ | 6,540 | $ | 12,925 | $ | (1,959 | ) | $ | 23,571 | |||||||||
Six Months Ended March 31, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2020: | ||||||||||||||||||||
Diagnostics | $ | 8,908 | $ | 10,797 | $ | 10,574 | $ | 812 | $ | 31,091 | ||||||||||
Life Science | 1,170 | 2,460 | 5,110 | 198 | 8,938 | |||||||||||||||
Corporate | — | — | 3,928 | 1,055 | 4,983 | |||||||||||||||
Total Expenses (2020 Year-to-Date) | $ | 10,078 | $ | 13,257 | $ | 19,612 | $ | 2,065 | $ | 45,012 | ||||||||||
Fiscal 2021: | ||||||||||||||||||||
Diagnostics | $ | 10,548 | $ | 10,948 | $ | 12,301 | $ | (1,942 | ) | $ | 31,855 | |||||||||
Life Science | 1,168 | 2,613 | 6,531 | — | 10,312 | |||||||||||||||
Corporate | — | — | 6,031 | 2,257 | 8,288 | |||||||||||||||
Total Expenses (2021 Year-to-Date) | $ | 11,716 | $ | 13,561 | $ | 24,863 | $ | 315 | $ | 50,455 | ||||||||||
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 | ||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
2020 Expenses | $ | 5,315 | $ | 6,529 | $ | 10,628 | $ | 283 | $ | 22,755 | ||||||||||
% of Revenues | 9 | % | 11 | % | 19 | % | - | % | 40 | % | ||||||||||
Fiscal 2021 Increases/(Decreases): | ||||||||||||||||||||
Diagnostics | 745 | (181 | ) | 908 | (2,484 | ) | (1,012 | ) | ||||||||||||
Life Science | 5 | 192 | 305 | (103 | ) | 399 | ||||||||||||||
Corporate | — | — | 1,084 | 345 | 1,429 | |||||||||||||||
2021 Expenses | $ | 6,065 | $ | 6,540 | $ | 12,925 | $ | (1,959 | ) | $ | 23,571 | |||||||||
% of Revenues | 7 | % | 8 | % | 15 | % | (2 | )% | 28 | % | ||||||||||
% Increase (Decrease) | 14 | % | - | % | 22 | % | NMF | 4 | % |
Nine Months Ended June 30, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | |||||||||||||||||||||||||||||||
Fiscal 2019: | ||||||||||||||||||||||||||||||||||||||||
2020 Expenses | $ | 10,078 | $ | 13,257 | $ | 19,612 | $ | 2,065 | $ | 45,012 | ||||||||||||||||||||||||||||||
% of Revenues | 10 | % | 13 | % | 19 | % | 2 | % | 43 | % | ||||||||||||||||||||||||||||||
Fiscal 2021 Increases/(Decreases): | ||||||||||||||||||||||||||||||||||||||||
Diagnostics | $ | 10,141 | $ | 17,048 | $ | 11,632 | $ | 2,219 | $ | 41,040 | 1,640 | 151 | 1,727 | (2,754 | ) | 764 | ||||||||||||||||||||||||
Life Science | 2,153 | 4,173 | 6,478 | 25 | 12,829 | (2 | ) | 153 | 1,421 | (198 | ) | 1,374 | ||||||||||||||||||||||||||||
Corporate | — | — | 6,178 | 2,272 | 8,450 | — | — | 2,103 | 1,202 | 3,305 | ||||||||||||||||||||||||||||||
Total Expenses (2019 Year-to-Date) | $ | $ | 21,221 | $ | 24,288 | $ | 4,516 | $ | 62,319 | |||||||||||||||||||||||||||||||
2021 Expenses | $ | 11,716 | $ | 13,561 | $ | 24,863 | 315 | $ | 50,455 | |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
% of Revenues | 7 | % | 8 | % | 14 | % | — | % | 28 | % | ||||||||||||||||||||||||||||||
% Increase (Decrease) | 16 | % | 2 | % | 27 | % | (85 | )% | 12 | % |
1) | Increased Research & Development costs, primarily reflecting the development of the molecular SARS-CoV-2 |
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 | ) % |
2) | Increased Selling & Marketing costs, primarily reflecting increased bonus and commissions paid early in fiscal 2021 to sustain the Diagnostics segment sales force during the downturn caused by the COVID-19 pandemic, substantially offset by the effects of reduced travel from restrictions imposed during the pandemic and the effect such restrictions have had on general sales and marketing activities; |
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 | % |
3) | Increased General & Administrative costs, primarily reflecting the addition of expenses related to Exalenz, including purchase accounting amortization, along with additional investment in incentive compensation; and |
4) | Decreased Acquisition and Restructuring Costs and a decrease in the effect of changes in the fair value of the contingent consideration obligation for the GenePOC business, partially offset by increased Selected Legal Costs (reflected within “Other” in the above tables). |
MERIDIAN BIOSCIENCE, INC. | ||||||
Date: | By: | /s/ Bryan T. Baldasare | ||||
Bryan T. Baldasare | ||||||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |