Vascular Solutions 10-Q 25 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 21, 2016
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		17,491,977
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 35,008	$ 41,491
Accounts receivable, net of reserves of $345 and $360 in 2016 and 2015, respectively	21,815	19,121
Inventories	24,059	22,105
Prepaid expenses and other	3,940	4,361
Total current assets	84,822	87,078
Property, plant and equipment, net	39,103	34,508
Goodwill	10,062	10,045
Intangible assets and other, net	8,145	8,445
Deferred tax assets, net of liabilities	6,535	4,797
Total assets	148,667	144,873
Current liabilities:
Accounts payable	6,203	5,830
Accrued compensation	5,701	6,702
Accrued expenses	2,579	4,125
Total current liabilities	14,483	16,657
Long-term deferred tax liabilities	74	72
Total long-term liabilities	74	72
Shareholders' equity:
Common stock, $0.01 per share par value: Authorized shares - 40,000,000 Issued and outstanding shares - 17,491,977 - 2016; 17,386,853 - 2015	175	174
Additional paid-in capital	103,118	102,123
Other	(1,363)	(1,186)
Accumulated earnings	32,180	27,033
Total shareholders' equity	134,110	128,144
Total liabilities and shareholders' equity	$ 148,667	$ 144,873

Consolidated Balance Sheets (u3

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Reserves for accounts receivable	$ 345	$ 360
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)	17,491,977	17,386,853
Common stock, shares outstanding (in shares)	17,491,977	17,386,853

Consolidated Statements of Earn

Consolidated Statements of Earnings (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net revenue:
Product revenue	$ 41,063	$ 37,398	$ 80,305	$ 71,839
License, royalty and collaboration revenue	124	152	260	322
Total revenue	41,187	37,550	80,565	72,161
Product costs and operating expenses:
Cost of goods sold	14,298	12,660	27,869	23,956
Collaboration expenses	13	46	40	100
Research and development	5,031	4,202	10,058	8,270
Clinical and regulatory	2,153	1,605	4,150	3,086
Sales and marketing	9,596	8,461	19,240	17,193
General and administrative	2,839	4,129	12,438	8,907
Medical device excise taxes	0	395	0	770
Amortization of purchased technology and intangibles	404	404	808	808
Total product costs and operating expenses	34,334	31,902	74,603	63,090
Operating earnings	6,853	5,648	5,962	9,071
Other earnings	32	14	48	42
Earnings before income taxes	6,885	5,662	6,010	9,113
Income tax expense	(1,482)	(1,935)	(863)	(3,179)
Net earnings	$ 5,403	$ 3,727	$ 5,147	$ 5,934
Net earnings per share - basic (in dollars per share)	$ 0.31	$ 0.22	$ 0.30	$ 0.35
Net earnings per share - diluted (in dollars per share)	$ 0.31	$ 0.21	$ 0.29	$ 0.33

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Earnings (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements of Comprehensive Earnings (Loss) (unaudited)
Net earnings	$ 5,403	$ 3,727	$ 5,147	$ 5,934
Other comprehensive earnings (loss), net of tax of $0:Foreign currency translation adjustments	(238)	320	(177)	(391)
Comprehensive earnings	$ 5,165	$ 4,047	$ 4,970	$ 5,543

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Earnings (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements of Comprehensive Earnings (Loss) (unaudited)
Foreign currency translation adjustments	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net earnings	$ 5,147	$ 5,934
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	2,473	2,122
Amortization	808	808
Stock-based compensation	2,638	2,382
Deferred taxes, net	(1,736)	1,573
Tax benefit from stock-based awards	0	(360)
Change in accounts receivable allowance	(15)	120
Changes in operating assets and liabilities:
Accounts receivable	(2,678)	(2,908)
Inventories	(1,981)	(4,164)
Prepaid expenses and other	422	495
Accounts payable	370	1,173
Accrued expenses	(2,549)	1,117
Net cash provided by operating activities	2,899	8,292
Investing activities
Purchase of property and equipment	(7,062)	(5,262)
Purchase of building and land	0	(2,748)
Acquisition of licensing rights	(500)	0
Net cash used in investing activities	(7,562)	(8,010)
Financing activities
Repurchase of common shares	(3,527)	(2,276)
Tax benefit from stock-based awards	0	360
Proceeds from the exercise of stock options and sale of stock, net of expenses	1,885	1,041
Net cash used in financing activities	(1,642)	(875)
Decrease in cash and cash equivalents	(6,305)	(593)
Effect of exchange rate changes on cash and cash equivalents	(178)	(29)
Cash and cash equivalents at beginning of period	41,491	36,461
Cash and cash equivalents at end of period	35,008	35,839
Supplemental disclosure of cash flow
Cash paid for taxes	$ 1,424	$ 964

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2016
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, 2015 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	6 Months Ended
	Jun. 30, 2016
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 six months ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average shares outstanding – basic 17,179,000 17,018,000 17,151,000 16,995,000 Weighted average shares outstanding – diluted 17,656,000 17,996,000 17,624,000 17,946,000

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2016
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 Topic 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 Topic 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 Topic 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 Topic 808, Collaborative Arrangements In accordance with ASC Topic 605-45-45, the Company includes shipping and handling revenues in net revenue, and shipping and handling costs in cost of goods sold.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
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: June 30, 2016 December 31, 2015 (dollars in thousands) Raw materials $ 12,173 $ 10,760 Work-in-process 1,661 1,789 Finished goods 10,225 9,556 $ 24,059 $ 22,105

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2016
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 and other for the six months ended June 30, 2016 are as follows: Goodwill Acquired Intangibles and other (dollars in thousands) Balance at December 31, 2015 $ 10,045 $ 8,445 Acquisition of licensing rights – 500 Amortization – (808 ) Foreign currency translation adjustments 17 8 Balance at June 30, 2016 $ 10,062 $ 8,145

Credit Risk and Allowance for D

Credit Risk and Allowance for Doubtful Accounts	6 Months Ended
	Jun. 30, 2016
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 30 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 June 30, 2016 and December 31, 2015, the allowance for doubtful accounts was $260,000 and $285,000, 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 June 30, 2016 and December 31, 2015, the sales and return allowance was $85,000 and $75,000, respectively. Accounts receivable are shown net of the combined total of the allowance for doubtful accounts and allowance for sales returns of $345,000 and $360,000 at June 30, 2016 and December 31, 2015, respectively.

Concentrations of Credit and Ot

Concentrations of Credit and Other Risks	6 Months Ended
	Jun. 30, 2016
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 to extend credit to an account. No customer represented more than 10% of gross accounts receivable at June 30, 2016 or December 31, 2015. There have been no material losses on customer receivables. Sales by geographic location are based on the location of the customer. Product revenue by geographic destination as a percentage of total product revenues for the six months ended June 30, 2016 and 2015 was 80% and 77% in the United States and 20% and 23% in international markets, respectively. No single customer represented greater than 10% of the total net revenue for the six months ended June 30, 2016 or 2015.

Dependence on Key Suppliers

Dependence on Key Suppliers	6 Months Ended
	Jun. 30, 2016
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	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(9) Commitments and Contingencies From time to time the Company is involved in 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 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	6 Months Ended
	Jun. 30, 2016
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 six months ended June 30, 2016 and 2015, the Company recorded a provision for taxes of $863,000 and $3,179,000 on earnings before tax of $6,010,000 and $9,113,000 resulting in an effective income tax rate of 14% and 35%, respectively. The realized effective income tax rate of 14% for the six months ended June 30, 2016 is lower than the Company’s base effective income tax rate of 33.5% due to the adoption of Accounting Standards Update (ASU) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 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 Topic 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. U.S. Federal and state tax years that remain open to examination at June 30, 2016 include tax years 2013, 2014 and 2015.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Recently Issued Accounting Pronouncements [Abstract]
Recently Issued Accounting Pronouncements	(11) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance creating ASC Topic 606, Revenue from Contracts with Customers In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory, In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) Related to the Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases, to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. Upon adoption, the lessee will apply the new standard retrospectively to all periods presented or retrospectively using a cumulative effect adjustment in the year of adoption. The Company is currently assessing the effect that adoption will have on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting

Products and Services

Products and Services	6 Months Ended
	Jun. 30, 2016
Products and Services [Abstract]
Products and Services	(12) 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 table sets 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 June 30, 2016 2015 Product Primary Market Net Revenue Percent Change Net Revenue (dollars in thousands) GuideLiner ® Interventional cardiology $ 12,104 (1 %) $ 12,272 Micro-introducer kits Interventional radiology 3,704 24 % 2,986 Turnpike ® Interventional cardiology 3,377 419 % 650 Pronto ® Interventional cardiology 3,297 (11 %) 3,724 Three months ended June 30, 2016 2015 Product Primary Market Net Revenue Percent Change Net Revenue Vein catheter reprocessing Phlebology 2,981 (2 %) 3,048 Hemostatic patches Interventional cardiology 2,897 (2 %) 2,949 Radial access products Interventional cardiology 2,261 21 % 1,873 Langston ® Interventional cardiology 1,966 16 % 1,689 Six months ended June 30, 2016 2015 Product Primary Market Net Revenue Percent Change Net Revenue (dollars in thousands) GuideLiner Interventional cardiology $ 23,762 5 % $ 22,612 Micro-introducer kits Interventional radiology 7,273 25 % 5,840 Pronto catheters Interventional cardiology 6,700 (17 %) 8,106 Vein catheter reprocessing Phlebology 5,970 4 % 5,760 Hemostatic patches Interventional cardiology 5,742 (4 %) 5,971 Turnpike Interventional cardiology 5,674 605 % 804 Radial access products Interventional cardiology 4,360 24 % 3,511 Langston catheters Interventional cardiology 3,848 18 % 3,268 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. The following table sets forth, for the periods indicated, the company’s estimate of net revenue percentage by primary clinical market: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Primary Market Revenue Percentage Revenue Percentage Revenue Percentage Revenue Percentage Interventional cardiology 75 % 73 % 75 % 73 % Phlebology 12 % 13 % 12 % 13 % Interventional radiology 9 % 10 % 9 % 10 % Electrophysiology 4 % 4 % 4 % 4 % 100 % 100 % 100 % 100 %

Net Earnings per Share (Tables)

Net Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Net Earnings per Share [Abstract]
Weighted average common shares outstanding	Weighted average common shares outstanding for the three and six months ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average shares outstanding – basic 17,179,000 17,018,000 17,151,000 16,995,000 Weighted average shares outstanding – diluted 17,656,000 17,996,000 17,624,000 17,946,000

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Inventories [Abstract]
Inventories	Inventories are comprised of the following: June 30, 2016 December 31, 2015 (dollars in thousands) Raw materials $ 12,173 $ 10,760 Work-in-process 1,661 1,789 Finished goods 10,225 9,556 $ 24,059 $ 22,105

Goodwill and Other Intangible22

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Other Intangible Assets [Abstract]
Goodwill and acquired intangible assets	The changes in the carrying amount of goodwill and acquired intangible assets and other for the six months ended June 30, 2016 are as follows: Goodwill Acquired Intangibles and other (dollars in thousands) Balance at December 31, 2015 $ 10,045 $ 8,445 Acquisition of licensing rights – 500 Amortization – (808 ) Foreign currency translation adjustments 17 8 Balance at June 30, 2016 $ 10,062 $ 8,145

Products and Services (Tables)

Products and Services (Tables)	6 Months Ended
	Jun. 30, 2016
Products and Services [Abstract]
Revenue by product category	The following table sets 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 June 30, 2016 2015 Product Primary Market Net Revenue Percent Change Net Revenue (dollars in thousands) GuideLiner ® Interventional cardiology $ 12,104 (1 %) $ 12,272 Micro-introducer kits Interventional radiology 3,704 24 % 2,986 Turnpike ® Interventional cardiology 3,377 419 % 650 Pronto ® Interventional cardiology 3,297 (11 %) 3,724 Three months ended June 30, 2016 2015 Product Primary Market Net Revenue Percent Change Net Revenue Vein catheter reprocessing Phlebology 2,981 (2 %) 3,048 Hemostatic patches Interventional cardiology 2,897 (2 %) 2,949 Radial access products Interventional cardiology 2,261 21 % 1,873 Langston ® Interventional cardiology 1,966 16 % 1,689 Six months ended June 30, 2016 2015 Product Primary Market Net Revenue Percent Change Net Revenue (dollars in thousands) GuideLiner Interventional cardiology $ 23,762 5 % $ 22,612 Micro-introducer kits Interventional radiology 7,273 25 % 5,840 Pronto catheters Interventional cardiology 6,700 (17 %) 8,106 Vein catheter reprocessing Phlebology 5,970 4 % 5,760 Hemostatic patches Interventional cardiology 5,742 (4 %) 5,971 Turnpike Interventional cardiology 5,674 605 % 804 Radial access products Interventional cardiology 4,360 24 % 3,511 Langston catheters Interventional cardiology 3,848 18 % 3,268 The following table sets forth, for the periods indicated, the company’s estimate of net revenue percentage by primary clinical market: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Primary Market Revenue Percentage Revenue Percentage Revenue Percentage Revenue Percentage Interventional cardiology 75 % 73 % 75 % 73 % Phlebology 12 % 13 % 12 % 13 % Interventional radiology 9 % 10 % 9 % 10 % Electrophysiology 4 % 4 % 4 % 4 % 100 % 100 % 100 % 100 %

Net Earnings per Share (Details

Net Earnings per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net Earnings per Share [Abstract]
Weighted average shares outstanding - basic (in shares)	17,179,000	17,018,000	17,151,000	16,995,000
Weighted average shares outstanding - diluted (in shares)	17,656,000	17,996,000	17,624,000	17,946,000

Revenue Recognition (Details)

Revenue Recognition (Details)	6 Months Ended
	Jun. 30, 2016
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	Jun. 30, 2016	Dec. 31, 2015
Inventories [Abstract]
Raw materials	$ 12,173	$ 10,760
Work-in-process	1,661	1,789
Finished goods	10,225	9,556
Inventory, Total	$ 24,059	$ 22,105

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Goodwill [Abstract]
Beginning balance			$ 10,045
Foreign currency translation adjustments			17
Ending balance	$ 10,062		10,062
Acquired Intangibles [Abstract]
Beginning balance			8,445
Acquisition of licensing rights			500
Amortization	(404)	$ (404)	(808)	$ (808)
Foreign currency translation adjustments			8
Ending balance	$ 8,145		$ 8,145

Credit Risk and Allowance for28

Credit Risk and Allowance for Doubtful Accounts (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Valuation and Qualifying Accounts Disclosure [Line Items]
Number of days outstanding before being considered past due	30 days
Restocking charge	20.00%
Reserves for accounts receivable, net	$ 345,000	$ 360,000
Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Reserves for accounts receivable, net	260,000	285,000
Sales Return Allowances [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Reserves for accounts receivable, net	$ 85,000	$ 75,000

Concentrations of Credit and 29

Concentrations of Credit and Other Risks (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Concentration Risk [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%	100.00%
United States [Member] | Product Revenue [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			80.00%	77.00%
International Markets [Member] | Product Revenue [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			20.00%	23.00%

Dependence on Key Suppliers (De

Dependence on Key Suppliers (Details)	6 Months Ended
	Jun. 30, 2016
Kings Pharmaceuticals [Abstract]
Initial agreement period	10 years
Contract extension period	1 year
Period of written notice to supplier	5 years

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Taxes [Abstract]
Income tax expense	$ 1,482,000	$ 1,935,000	$ 863,000	$ 3,179,000
Earnings before income tax	6,885,000	$ 5,662,000	$ 6,010,000	$ 9,113,000
Effective income tax rate			14.00%	35.00%
Federal statutory income tax rate			33.50%	34.00%
Recognized excess tax benefits			$ 1,127,000
Unrecognized income tax asset	379,000		379,000		$ 379,000
Tax related interest expense	0		0
Tax related penalties expense	$ 0		$ 0

Products and Services (Details)

Products and Services (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)ProductMarket	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)ProductMarket	Jun. 30, 2015USD ($)
Revenue from External Customer [Line Items]
Number of products | Product	8		8
Total revenue	$ 41,187	$ 37,550	$ 80,565	$ 72,161
Number of primary clinical markets | Market	4		4
Percentage of sales revenue	100.00%	100.00%	100.00%	100.00%
Interventional Cardiology [Member]
Revenue from External Customer [Line Items]
Percentage of sales revenue	75.00%	73.00%	75.00%	73.00%
Phlebology [Member]
Revenue from External Customer [Line Items]
Percentage of sales revenue	12.00%	13.00%	12.00%	13.00%
Interventional Radiology [Member]
Revenue from External Customer [Line Items]
Percentage of sales revenue	9.00%	10.00%	9.00%	10.00%
Electrophysiology [Member]
Revenue from External Customer [Line Items]
Percentage of sales revenue	4.00%	4.00%	4.00%	4.00%
GuideLiner Catheters [Member]
Revenue from External Customer [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 12,104	$ 12,272	$ 23,762	$ 22,612
Total revenue percentage change	(1.00%)		5.00%
Micro-introducer Kits [Member]
Revenue from External Customer [Line Items]
Class of primary market description	Interventional radiology		Interventional radiology
Total revenue	$ 3,704	2,986	$ 7,273	5,840
Total revenue percentage change	24.00%		25.00%
Turnpike Catheters [Member]
Revenue from External Customer [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 3,377	650	$ 5,674	804
Total revenue percentage change	419.00%		605.00%
Pronto Catheters [Member]
Revenue from External Customer [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 3,297	3,724	$ 6,700	8,106
Total revenue percentage change	(11.00%)		(17.00%)
Vein Catheter Reprocessing [Member]
Revenue from External Customer [Line Items]
Class of primary market description	Phlebology		Phlebology
Total revenue	$ 2,981	3,048	$ 5,970	5,760
Total revenue percentage change	(2.00%)		4.00%
Hemostatic Patches [Member]
Revenue from External Customer [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 2,897	2,949	$ 5,742	5,971
Total revenue percentage change	(2.00%)		(4.00%)
Radial Access Products [Member]
Revenue from External Customer [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 2,261	1,873	$ 4,360	3,511
Total revenue percentage change	21.00%		24.00%
Langston Catheters [Member]
Revenue from External Customer [Line Items]
Class of primary market description	Interventional cardiology		Interventional cardiology
Total revenue	$ 1,966	$ 1,689	$ 3,848	$ 3,268
Total revenue percentage change	16.00%		18.00%