Vascular Solutions 10-Q 20 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 19, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	VASCULAR SOLUTIONS INC
Entity Central Index Key	1,030,206
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		17,343,725
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 40,312	$ 36,461
Accounts receivable, net of reserves of $410 and $300 in 2015 and 2014, respectively	18,983	17,105
Inventories	22,475	15,908
Prepaid expenses and other	3,969	5,231
Current portion of deferred tax assets	2,730	3,681
Total current assets	88,469	78,386
Property, plant and equipment, net	33,068	25,665
Goodwill	10,086	10,259
Intangible assets, net	8,867	10,164
Deferred tax assets, net of current portion	2,648	2,894
Total assets	143,138	127,368
Current liabilities:
Accounts payable	4,588	4,806
Accrued compensation	7,005	4,580
Accrued expenses	5,551	3,016
Accrued royalties	207	230
Current portion of deferred revenue	302	391
Total current liabilities	17,653	13,023
Long-term deferred revenue, net of current portion	48	202
Long-term deferred tax liabilities	817	803
Total long-term liabilities	865	1,005
Shareholders' equity:
Common stock, $0.01 per share par value: Authorized shares - 40,000,000 Issued and outstanding shares - 17,343,850 - 2015; 17,202,365 - 2014	173	172
Additional paid-in capital	100,074	97,324
Accumulated other comprehensive losses	(1,103)	(725)
Retained earnings	25,476	16,569
Total shareholders' equity	124,620	113,340
Total liabilities and shareholders' equity	$ 143,138	$ 127,368

Consolidated Balance Sheets (u3

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Reserves for accounts receivable	$ 410	$ 300
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	17,343,850	17,202,365
Common stock, shares outstanding (in shares)	17,343,850	17,202,365

Consolidated Statements of Earn

Consolidated Statements of Earnings (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net revenue:
Product revenue	$ 36,827	$ 31,766	$ 108,666	$ 92,216
License, royalty and collaboration revenue	127	163	449	297
Total revenue	36,954	31,929	109,115	92,513
Product costs and operating expenses:
Cost of goods sold	12,133	10,291	36,089	30,158
Collaboration expenses	15	93	115	125
Research and development	4,932	3,322	13,202	9,839
Clinical and regulatory	1,608	1,196	4,694	3,771
Sales and marketing	8,092	7,327	25,285	22,406
General and administrative	5,000	3,692	13,906	9,282
Medical device excise taxes	402	385	1,172	1,083
Amortization of purchased technology and intangibles	404	410	1,212	1,234
Total product costs and operating expenses	32,586	26,716	95,675	77,898
Operating earnings	4,368	5,213	13,440	14,615
Other earnings (expenses)	46	(9)	87	(8)
Earnings before income taxes	4,414	5,204	13,527	14,607
Income tax expense	(1,441)	(2,634)	(4,620)	(6,033)
Net earnings	$ 2,973	$ 2,570	$ 8,907	$ 8,574
Net earnings per share - basic (in dollars per share)	$ 0.17	$ 0.15	$ 0.52	$ 0.51
Net earnings per share - diluted (in dollars per share)	$ 0.16	$ 0.15	$ 0.49	$ 0.49

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Earnings (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements of Comprehensive Earnings (unaudited) [Abstract]
Net earnings	$ 2,973	$ 2,570	$ 8,907	$ 8,574
Other comprehensive earnings (losses), net of $0 tax: Foreign currency translation adjustments	13	(346)	(378)	(547)
Comprehensive earnings	$ 2,986	$ 2,224	$ 8,529	$ 8,027

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Earnings (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements of Comprehensive Earnings (unaudited) [Abstract]
Foreign currency translation adjustments, tax	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net earnings	$ 8,907	$ 8,574
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	3,265	2,381
Amortization	1,212	1,234
Stock-based compensation	3,258	3,030
Deferred taxes, net	1,815	3,050
Tax benefit from stock-based awards	(600)	(1,182)
Gain on disposal of equipment	0	(24)
Change in accounts receivable allowance	110	85
Changes in operating assets and liabilities:
Accounts receivable	(2,000)	(1,708)
Inventories	(6,627)	(1,738)
Prepaid expenses and other	1,311	(2,038)
Accounts payable	(185)	1,099
Accrued expenses and compensation	4,951	1,776
Amortization of deferred license fees and other deferred revenue	(243)	(285)
Net cash provided by operating activities	15,174	14,254
Investing activities
Purchase of property and equipment	(8,032)	(3,829)
Purchase of building and land	(2,748)	0
Proceeds from the sale of equipment	0	28
Net cash used in investing activities	(10,780)	(3,801)
Financing activities
Repurchase of common shares	(2,305)	(2,312)
Tax benefit from stock-based awards	600	1,182
Proceeds from the exercise of stock options and sale of stock, net of expenses	1,199	1,609
Net cash provided by (used in) financing activities	(506)	479
Increase (decrease) in cash and cash equivalents	3,888	10,932
Effect of exchange rate changes on cash and cash equivalents	(37)	(68)
Cash and cash equivalents at beginning of period	36,461	30,785
Cash and cash equivalents at end of period	40,312	41,649
Supplemental disclosure of cash flow
Cash paid for interest	0	3
Cash paid for taxes	$ 1,253	$ 3,844

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis of Presentation [Abstract]
Basis of Presentation	(1) Basis of Presentation The accompanying unaudited consolidated financial statements of Vascular Solutions, Inc. (the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal, recurring adjustments considered necessary for a fair presentation have been included. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission. Interim results of operations are not necessarily indicative of the results to be expected for the full year or any other interim periods.

Net Earnings per Share

Net Earnings per Share	9 Months Ended
	Sep. 30, 2015
Net Earnings per Share [Abstract]
Net Earnings per Share	(2) Net Earnings per Share In accordance with Accounting Standards Codification (ASC) 260, Earnings Per Share Weighted average common shares outstanding for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (unaudited) (unaudited) Weighted average shares outstanding – basic 17,083,000 16,871,000 17,049,000 16,827,000 Weighted average shares outstanding – diluted 18,072,000 17,691,000 17,999,000 17,642,000

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2015
Revenue Recognition [Abstract]
Revenue Recognition	(3) Revenue Recognition In the United States, the Company sells its products and services directly to hospitals and clinics. Revenue is recognized in accordance with generally accepted accounting principles as outlined in ASC 605-10-S99, Revenue Recognition In all international markets, the Company sells its products to international distributors which subsequently resell the products to hospitals and clinics. The Company has agreements with each of its distributors which provide that title and risk of loss pass to the distributor upon shipment of the products to the distributor. The Company warrants that its products are free from manufacturing defects at the time of shipment to the distributor. Revenue is recognized upon shipment of products to distributors following the receipt and acceptance of a distributor’s purchase order and is reported on a gross basis. Allowances are provided for estimated returns and costs at the time of shipment. Sales and use taxes are reported on a net basis, excluding them from revenue. The Company’s revenues from license agreements and research collaborations are recognized when earned. In accordance with ASC 605, for revenues which contain multiple deliverables, the Company separates the deliverables into separate accounting units if they meet the following criteria: (i) the delivered items have a stand-alone value to the customer; (ii) the fair value of any undelivered items can be reliably determined; and (iii) if the arrangement includes a general right of return, delivery of the undelivered items is probable and substantially controlled by the seller. Deliverables that do not meet these criteria are combined with one or more other deliverables into one accounting unit. Revenue from each accounting unit is recognized based on the applicable accounting literature, primarily ASC 605. The Company currently has a license agreement with King Pharmaceuticals, Inc. (King), now a subsidiary of Pfizer, Inc., under which the Company licensed the exclusive rights of Thrombi-Pad TM ® TM Starting in January 2012, the Company began to generate revenue from selling a reprocessing service for ClosureFAST ® In addition, the Company has reviewed the provisions of ASC 808, Collaborative Arrangements In accordance with ASC 605-45-45, the Company includes shipping and handling revenues in net revenue, and shipping and handling costs in cost of goods sold. In May 2014, the Financial Accounting Standards Board (FASB) issued guidance creating ASC 606, “ Revenue from Contracts with Customers

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventories [Abstract]
Inventories	(4) Inventories Inventories are stated at the lower of cost (weighted average first-in, first-out method) or market. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating net realizable value. Inventories are comprised of the following: September 30, 2015 December 31, 2014 (dollars in thousands) (unaudited) Raw materials $ 10,090 $ 8,251 Work-in-process 1,703 1,139 Finished goods 10,682 6,518 $ 22,475 $ 15,908

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	(5) Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill and acquired intangible assets for the nine months ended September 30, 2015 are as follows: Goodwill Acquired Intangibles (dollars in thousands) (unaudited) Balance at December 31, 2014 $ 10,259 $ 10,164 Amortization – (1,212 ) Foreign currency translation adjustments (173 ) (85 ) Balance at September 30, 2015 $ 10,086 $ 8,867

Credit Risk and Allowance for D

Credit Risk and Allowance for Doubtful Accounts	9 Months Ended
	Sep. 30, 2015
Credit Risk and Allowance for Doubtful Accounts [Abstract]
Credit Risk and Allowance for Doubtful Accounts	(6) Credit Risk and Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. This allowance is regularly evaluated by the Company for adequacy by taking into consideration factors such as past experience, credit quality of the customer base, age of the receivable balances, both individually and in the aggregate, and current economic conditions that may affect a customer’s ability to pay. Accounts receivable over 60 days past due are considered past due. The Company does not accrue interest on past due accounts receivable. Receivables are written off only after all collection attempts have failed and are based on individual credit evaluation and the specific circumstances of the customer. At September 30, 2015 and December 31, 2014, the allowance for doubtful accounts was $340,000 and $220,000, respectively. All product returns must be pre-approved and, if approved, customers are subject to a 20% restocking charge. The Company analyzes the rate of historical returns when evaluating the adequacy of the allowance for sales returns, which is included with the allowance for doubtful accounts on its balance sheet. At September 30, 2015 and December 31, 2014, the sales and return allowance was $70,000 and $80,000, respectively. Accounts receivable are shown net of the combined total of the allowance for doubtful accounts and allowance for sales returns of $410,000 and $300,000 at September 30, 2015 and December 31, 2014, respectively.

Concentrations of Credit and Ot

Concentrations of Credit and Other Risks	9 Months Ended
	Sep. 30, 2015
Concentrations of Credit and Other Risks [Abstract]
Concentrations of Credit and Other Risks	(7) Concentrations of Credit and Other Risks In the United States, the Company sells its products directly to hospitals and clinics. In all international markets, the Company sells its products to distributors who, in turn, sell to hospitals and clinics. Loss or termination of distributors, or their inability to effectively promote the Company’s products, could have a material adverse effect on the Company’s financial condition and results of operations. With respect to accounts receivable, the Company performs credit evaluations of its customers and does not require collateral. No single customer represented greater than 10% of gross accounts receivable as of either September 30, 2015 or December 31, 2014. There have been no material losses on customer receivables. Revenue by geographic destination as a percentage of total net revenue for the nine month periods ended September 30, 2015 and 2014 was 78% and 83% in the United States and 22% and 17% in international markets, respectively. Revenues are attributable to countries based on location of the customer. No single customer represented greater than 10% of the total net revenue for the nine months ended September 30, 2015 or 2014.

Dependence on Key Suppliers

Dependence on Key Suppliers	9 Months Ended
	Sep. 30, 2015
Dependence on Key Suppliers [Abstract]
Dependence on Key Suppliers	(8) Dependence on Key Suppliers The Company purchases certain key components from single-source suppliers. Any significant component delay or interruption could require the Company to qualify new sources of supply, if available, and could have a material adverse effect on the Company’s financial condition and results of operations. King Pharmaceuticals The Company purchases its requirements for thrombin (a component in the Hemostat products) under a Thrombin-JMI Supply Agreement entered into with King on January 9, 2007. Under the terms of the Thrombin-JMI Supply Agreement, King agrees to manufacture and supply thrombin to the Company on a non-exclusive basis. The Thrombin-JMI Supply Agreement does not contain any minimum purchase requirements. King agrees to supply the Company with such quantity of thrombin as the Company may order at a fixed price throughout the term of the Thrombin-JMI Supply Agreement as adjusted for inflation, variations in potency and other factors. The Thrombin-JMI Supply Agreement has an initial term of 10 years, followed by successive automatic one-year extensions, subject to termination by the parties under certain circumstances, including: (i) termination by King without cause any time after the fifth anniversary of the date of the Thrombin-JMI Supply Agreement upon five years prior written notice to the Company, and (ii) termination by the Company without cause any time after the fifth anniversary of the date of the Thrombin-JMI Supply Agreement upon five years prior written notice to King provided that the Device Supply Agreement, which the Company also entered into with King on January 9, 2007, has expired on its terms or the parties have agreed to terminate it.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(9) Commitments and Contingencies Governmental Proceedings On June 28, 2011, the Company received a subpoena from the U.S. Attorney’s Office for the Western District of Texas under the Health Insurance Portability & Accountability Act of 1996 (HIPAA) requesting the production of documents related to Vari-Lase products, and in particular the use of the Vari-Lase Short Kit for the treatment of perforator veins. Subsequently, the Company learned that the U.S. Attorney’s Office also had commenced a criminal investigation of the same matter. The Vari-Lase Short Kit was sold under a 510(k) clearance for the treatment of incompetence and reflux of superficial veins in the lower extremity from 2007 until it was voluntarily withdrawn from the market in July 2014 with total U.S. sales of approximately $534,000 (0.1% of the Company’s total U.S. sales for such period) and has not been the subject of any reported serious adverse clinical event. On August 14, 2012, the United States District Court for the Western District of Texas unsealed a qui tam On November 13, 2014, a criminal indictment was issued in the United States District Court for the Western District of Texas related to the Vari-Lase Short Kit investigation. The indictment alleges that the Company and its Chief Executive Officer introduced adulterated and misbranded medical devices into interstate commerce and conspired to introduce adulterated and misbranded medical devices into interstate commerce through the alleged off-label promotion of the Vari-Lase Short Kit. The Company believes the allegations are false and is contesting them vigorously. On August 13, 2015, the Company filed motions to dismiss the indictment with prejudice based on prosecutorial misconduct and the First Amendment. On October 2, 2015, the government filed its responses to the Company’s motions to dismiss. If the indictment is not dismissed, the trial is scheduled to commence on February 1, 2016 in San Antonio, Texas. Continuing to defend the Company against the indictment will entail costs that are expected to be material and will require significant attention from the Company’s management. If the Company were to be convicted of the crimes alleged in the indictment, remedies could include fines, penalties, forfeitures and compliance conditions. The Company cannot estimate the amount or range of loss if the Company were to be convicted; however, it would likely be material. If the Company were to be convicted of a crime related to the delivery of an item or service under Title XVIII of the Social Security Act, or a felony related to health care fraud, it would become automatically excluded by the Department of Health and Human Services (“HHS”) from participation in U.S. government health care programs, including Medicare and Medicaid. If the Company were to be convicted of a misdemeanor related to health care fraud, it could be excluded by HHS from participation in U.S. government health care programs, including Medicare and Medicaid. Exclusion from participation in U.S. government health care programs would substantially adversely affect the Company’s ability to continue to conduct its business. Conviction of the Company’s chief executive officer of a crime under statutes related to misbranding and health care fraud could require the termination of his employment with the Company. From time to time, the Company is involved in additional legal proceedings arising in the normal course of business. As of the date of this report, the Company is not a party to any legal proceeding not described in this section in which an adverse outcome would reasonably be expected to have a material adverse effect on the Company’s results of operations or financial condition.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes [Abstract]
Income Taxes	(10) Income Taxes The Company is subject to income tax in numerous jurisdictions and at various rates and the use of estimates is required in determining the provision for income taxes. For the nine month periods ended September 30, 2015 and 2014, the Company recorded a provision for taxes of $4,620,000 and $6,033,000 on earnings before tax of $13,527,000 and $14,607,000 resulting in an effective income tax rate of 34% and 41%, respectively. The effective tax rate of 34% for the nine month period ended September 30, 2015 is lower than the graduated federal rate combined with state taxes as a result of various 2013 and 2014 state tax refunds received following completion of a comprehensive nexus study. The difference between the effective tax rate of 41% for the nine months ended September 30, 2014 and the U.S. federal statutory income tax rate of 34% was due mainly to a change in the valuation allowance against the Company’s deferred Minnesota tax assets. The Company regularly assesses the likelihood that the deferred tax assets will be recovered from future taxable earnings. The Company considers projected future taxable earnings and ongoing tax planning strategies, and then records a valuation allowance to reduce the carrying value of the net deferred taxes to an amount that is more likely than not to be realized. If the Company’s actual results and updated projections vary significantly from the projections used as a basis for determining its valuation allowance, the Company may need to increase or decrease the valuation allowance against the gross deferred tax assets. The Company will adjust earnings for the deferred tax in the period in which any such determination is made. The Company applies ASC 740, Income Taxes The Company is subject to income tax examinations in the U.S. Federal jurisdiction, as well as in the Republic of Ireland and various state jurisdictions. At September 30, 2015, the Company’s 2013 and 2014 U.S. Federal 1120 tax filings were under exam by the U.S. Internal Revenue Service. The Company expects to receive final adjustments and complete the examination in November 2015. At September 30, 2015, tax years 2011 through 2014 remain open to examination.

Products and Services

Products and Services	9 Months Ended
	Sep. 30, 2015
Products and Services [Abstract]
Products and Services	(11) Products and Services In order to present a more detailed product-specific revenue analysis, in the first quarter of 2015, the Company began reporting net revenue for each of its top products in each of its primary markets. The following tables set forth, for the periods indicated, net revenue by product along with the percent change from the previous year’s corresponding period for each of the Company’s top eight products by net revenue: Three months ended September 30, 2015 2014 Product Primary Market Net Revenue Percent Change Net Revenue (dollars in thousands) GuideLiner ® Interventional cardiology $ 11,441 46 % $ 7,832 Pronto ® Interventional cardiology 3,559 (19 %) 4,405 Micro-introducer kits Interventional radiology 3,168 16 % 2,730 Vein catheter reprocessing Phlebology 3,165 25 % 2,532 Hemostatic patches Interventional cardiology 3,039 (3 %) 3,145 Radial access products Interventional cardiology 1,915 30 % 1,477 Langston ® Interventional cardiology 1,623 (19 %) 2,012 D-Stat ® Electrophysiology 1,269 (6 %) 1,350 Nine months ended September 30, 2015 2014 Product Primary Market Net Revenue Percent Change Net Revenue (dollars in thousands) GuideLiner Interventional cardiology $ 34,053 53 % $ 22,299 Pronto catheters Interventional cardiology 11,665 (15 %) 13,704 Hemostatic patches Interventional cardiology 9,011 (5 %) 9,462 Micro-introducer kits Interventional radiology 9,008 18 % 7,606 Vein catheter reprocessing Phlebology 8,925 23 % 7,243 Radial access products Interventional cardiology 5,426 27 % 4,277 Langston catheters Interventional cardiology 4,890 3 % 4,753 D-Stat Flowable hemostat Electrophysiology 4,123 1 % 4,091 The Company sells its products into four primary clinical markets: interventional cardiology, interventional radiology, electrophysiology, and phlebology (vein treatment). The Company estimates the percentage of its revenue that is generated in each market by estimating the percentage of sales of each product that is made to customers for use in that market. During both the three and nine months ended September 30, 2015, the Company estimates that 73% of its product sales by revenue were generated from the interventional cardiology market, 13% from the phlebology market, 10% from the interventional radiology market and 4% from the electrophysiology market.

Net Earnings per Share (Tables)

Net Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Net Earnings per Share [Abstract]
Weighted average common shares outstanding	Weighted average common shares outstanding for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (unaudited) (unaudited) Weighted average shares outstanding – basic 17,083,000 16,871,000 17,049,000 16,827,000 Weighted average shares outstanding – diluted 18,072,000 17,691,000 17,999,000 17,642,000

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventories [Abstract]
Inventories	Inventories are stated at the lower of cost (weighted average first-in, first-out method) or market. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating net realizable value. Inventories are comprised of the following: September 30, 2015 December 31, 2014 (dollars in thousands) (unaudited) Raw materials $ 10,090 $ 8,251 Work-in-process 1,703 1,139 Finished goods 10,682 6,518 $ 22,475 $ 15,908

Goodwill and Other Intangible21

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Other Intangible Assets [Abstract]
Goodwill and acquired intangible assets	The changes in the carrying amount of goodwill and acquired intangible assets for the nine months ended September 30, 2015 are as follows: Goodwill Acquired Intangibles (dollars in thousands) (unaudited) Balance at December 31, 2014 $ 10,259 $ 10,164 Amortization – (1,212 ) Foreign currency translation adjustments (173 ) (85 ) Balance at September 30, 2015 $ 10,086 $ 8,867

Products and Services (Tables)

Products and Services (Tables)	9 Months Ended
	Sep. 30, 2015
Products and Services [Abstract]
Revenue by product category	In order to present a more detailed product-specific revenue analysis, in the first quarter of 2015, the Company began reporting net revenue for each of its top products in each of its primary markets. The following tables set forth, for the periods indicated, net revenue by product along with the percent change from the previous year’s corresponding period for each of the Company’s top eight products by net revenue: Three months ended September 30, 2015 2014 Product Primary Market Net Revenue Percent Change Net Revenue (dollars in thousands) GuideLiner ® Interventional cardiology $ 11,441 46 % $ 7,832 Pronto ® Interventional cardiology 3,559 (19 %) 4,405 Micro-introducer kits Interventional radiology 3,168 16 % 2,730 Vein catheter reprocessing Phlebology 3,165 25 % 2,532 Hemostatic patches Interventional cardiology 3,039 (3 %) 3,145 Radial access products Interventional cardiology 1,915 30 % 1,477 Langston ® Interventional cardiology 1,623 (19 %) 2,012 D-Stat ® Electrophysiology 1,269 (6 %) 1,350 Nine months ended September 30, 2015 2014 Product Primary Market Net Revenue Percent Change Net Revenue (dollars in thousands) GuideLiner Interventional cardiology $ 34,053 53 % $ 22,299 Pronto catheters Interventional cardiology 11,665 (15 %) 13,704 Hemostatic patches Interventional cardiology 9,011 (5 %) 9,462 Micro-introducer kits Interventional radiology 9,008 18 % 7,606 Vein catheter reprocessing Phlebology 8,925 23 % 7,243 Radial access products Interventional cardiology 5,426 27 % 4,277 Langston catheters Interventional cardiology 4,890 3 % 4,753 D-Stat Flowable hemostat Electrophysiology 4,123 1 % 4,091

Net Earnings per Share (Details

Net Earnings per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Earnings per Share [Abstract]
Weighted average shares outstanding - basic (in shares)	17,083,000	16,871,000	17,049,000	16,827,000
Weighted average shares outstanding - diluted (in shares)	18,072,000	17,691,000	17,999,000	17,642,000

Revenue Recognition (Details)

Revenue Recognition (Details)	9 Months Ended
	Sep. 30, 2015
Revenue Recognition [Abstract]
Restocking charge (in hundredths)	20.00%
Thrombi Pad [Member]
Revenue Recognition, Amortization of License Fee [Line Items]
Years to amortize license fees	10 years
Thrombi Gel [Member]
Revenue Recognition, Amortization of License Fee [Line Items]
Years to amortize license fees	10 years
Thrombi Paste [Member]
Revenue Recognition, Amortization of License Fee [Line Items]
Years to amortize license fees	10 years

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventories [Abstract]
Raw materials	$ 10,090	$ 8,251
Work-in-process	1,703	1,139
Finished goods	10,682	6,518
Inventory, Total	$ 22,475	$ 15,908

Goodwill and Other Intangible26

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Goodwill [Abstract]
Beginning balance			$ 10,259
Foreign currency translation adjustments			(173)
Ending balance	$ 10,086		10,086
Acquired Intangibles [Abstract]
Beginning balance			10,164
Amortization	(404)	$ (410)	(1,212)	$ (1,234)
Foreign currency translation adjustments			(85)
Ending balance	$ 8,867		$ 8,867

Credit Risk and Allowance for27

Credit Risk and Allowance for Doubtful Accounts (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Number of days outstanding before being considered past due	60 days
Restocking charge (in hundredths)	20.00%
Reserves for accounts receivable, net	$ 410,000	$ 300,000
Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Reserves for accounts receivable, net	340,000	220,000
Sales Return Allowances [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Reserves for accounts receivable, net	$ 70,000	$ 80,000

Concentrations of Credit and 28

Concentrations of Credit and Other Risks (Details)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
United States [Member]
Concentration Risk [Line Items]
Concentration risk, percentage (in hundredths)	78.00%	83.00%
International Markets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage (in hundredths)	22.00%	17.00%

Dependence on Key Suppliers (De

Dependence on Key Suppliers (Details)	9 Months Ended
	Sep. 30, 2015
Kings Pharmaceuticals [Abstract]
Initial agreement period	10 years
Contract extension period	1 year
Period of written notice to supplier	5 years

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Jul. 28, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jul. 31, 2014
Governmental Proceedings [Abstract]
Product revenue		$ 36,827,000	$ 31,766,000	$ 108,666,000	$ 92,216,000
Vari-Lase Short Kit [Member]
Governmental Proceedings [Abstract]
Product revenue						$ 534,000
Percentage of sales revenue (in hundredths)						0.10%
Alleged damages from product defects to government						$ 20,000,000
Payment on settlement of litigation	$ 520,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Taxes [Abstract]
Income tax expense (benefit)	$ 1,441,000	$ 2,634,000	$ 4,620,000	$ 6,033,000
Earnings before income tax	4,414,000	$ 5,204,000	$ 13,527,000	$ 14,607,000
Effective income tax rate (in hundredths)			34.00%	41.00%
Federal statutory income tax rate (in hundredths)			34.00%	34.00%
Unrecognized income tax asset	$ 1,262,000		$ 1,262,000		$ 1,262,000
Tax related interest expense			0
Tax related penalties expense			$ 0

Products and Services (Details)

Products and Services (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)ProductMarket	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)ProductMarket	Sep. 30, 2014USD ($)
Product Information [Line Items]
Number of products | Product	8		8
Number of primary markets | Market	4		4
Total revenue	$ 36,954	$ 31,929	$ 109,115	$ 92,513
Sales Revenue, Net [Member] | Interventional cardiology [Member]
Product Information [Line Items]
Percentage of sales revenue (in hundredths)	73.00%		73.00%
Sales Revenue, Net [Member] | Phlebology [Member]
Product Information [Line Items]
Percentage of sales revenue (in hundredths)	13.00%		13.00%
Sales Revenue, Net [Member] | Interventional radiology [Member]
Product Information [Line Items]
Percentage of sales revenue (in hundredths)	10.00%		10.00%
Sales Revenue, Net [Member] | Electrophysiology [Member]
Product Information [Line Items]
Percentage of sales revenue (in hundredths)	4.00%		4.00%
GuideLiner catheters [Member]
Product Information [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 11,441	7,832	$ 34,053	22,299
Total revenue percentage change (in hundredths)	46.00%		53.00%
Pronto catheters [Member]
Product Information [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 3,559	4,405	$ 11,665	13,704
Total revenue percentage change (in hundredths)	(19.00%)		(15.00%)
Hemostatic patches [Member]
Product Information [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 3,039	3,145	$ 9,011	9,462
Total revenue percentage change (in hundredths)	(3.00%)		(5.00%)
Micro-introducer kits [Member]
Product Information [Line Items]
Class of primary market description	Interventional radiology		Interventional radiology
Total revenue	$ 3,168	2,730	$ 9,008	7,606
Total revenue percentage change (in hundredths)	16.00%		18.00%
Vein catheter reprocessing [Member]
Product Information [Line Items]
Class of primary market description	Phlebology		Phlebology
Total revenue	$ 3,165	2,532	$ 8,925	7,243
Total revenue percentage change (in hundredths)	25.00%		23.00%
Radial access products [Member]
Product Information [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 1,915	1,477	$ 5,426	4,277
Total revenue percentage change (in hundredths)	30.00%		27.00%
Langston Catheters [Member]
Product Information [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 1,623	2,012	$ 4,890	4,753
Total revenue percentage change (in hundredths)	(19.00%)		3.00%
D-Stat Flowable hemostat [Member]
Product Information [Line Items]
Class of primary market description	Electrophysiology		Electrophysiology
Total revenue	$ 1,269	$ 1,350	$ 4,123	$ 4,091
Total revenue percentage change (in hundredths)	(6.00%)		1.00%