RTI Surgical (RTIX) 10-Q 30 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 27, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	RTIX
Entity Registrant Name	RTI SURGICAL, INC.
Entity Central Index Key	1,100,441
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		57,787,588

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 10,308	$ 15,703
Accounts receivable - less allowances of $1,046 at September 30, 2015 and $818 at December 31, 2014	44,011	38,833
Inventories - net	118,592	113,464
Prepaid and other current assets	6,141	6,668
Deferred tax assets - net	22,503	22,828
Total current assets	201,555	197,496
Property, plant and equipment - net	82,914	77,028
Deferred tax assets - net	2,647	6,193
Goodwill	54,887	54,887
Other intangible assets - net	27,153	30,261
Other assets - net	12,060	12,270
Total assets	381,216	378,135
Current Liabilities:
Accounts payable	22,747	26,834
Accrued expenses	18,886	24,689
Current portion of deferred revenue	4,808	5,984
Current portion of short and long-term obligations	6,141	6,479
Total current liabilities	52,582	63,986
Long-term obligations - less current portion	72,763	69,413
Other long-term liabilities	11,573	11,607
Deferred revenue	10,571	12,460
Total liabilities	147,489	157,466
Preferred stock Series A, $.001 par value: 5,000,000 shares authorized; 50,000 shares issued and outstanding	55,433	52,834
Stockholders' equity:
Common stock, $.001 par value: 150,000,000 shares authorized; 57,787,588 and 56,917,414 shares issued and outstanding, respectively	58	57
Additional paid-in capital	417,880	415,702
Accumulated other comprehensive loss	(6,093)	(3,881)
Accumulated deficit	(233,105)	(243,854)
Less treasury stock, 230,352 and 180,898 shares, respectively, at cost	(446)	(189)
Total stockholders' equity	178,294	167,835
Total liabilities and stockholders' equity	$ 381,216	$ 378,135

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 1,046	$ 818
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	50,000	50,000
Preferred stock, shares outstanding	50,000	50,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	57,787,588	57,787,588
Common stock, shares outstanding	56,917,414	56,917,414
Treasury stock, shares	230,352	180,898

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenues	$ 66,529	$ 65,163	$ 206,172	$ 191,937
Costs of processing and distribution	31,296	30,470	96,737	95,992
Gross profit	35,233	34,693	109,435	95,945
Expenses:
Marketing, general and administrative	25,464	26,863	80,088	80,019
Research and development	3,793	4,224	11,492	11,398
Total operating expenses	29,257	31,087	91,580	91,417
Operating income	5,976	3,606	17,855	4,528
Other (expense) income:
Interest expense	(336)	(279)	(981)	(1,055)
Interest income		2	3	8
Foreign exchange loss	(69)	(19)	(8)	(89)
Total other expense - net	(405)	(296)	(986)	(1,136)
Income before income tax provision	5,571	3,310	16,869	3,392
Income tax provision	(2,069)	(1,324)	(6,120)	(1,355)
Net income	3,502	1,986	10,749	2,037
Convertible preferred dividend	(832)	(784)	(2,460)	(2,318)
Net income (loss) applicable to common shares	2,670	1,202	8,289	(281)
Other comprehensive income (loss):
Unrealized foreign currency translation gain (loss)	340	(1,748)	(2,212)	(1,836)
Comprehensive income (loss)	$ 3,010	$ (546)	$ 6,077	$ (2,117)
Net income (loss) per common share - basic	$ 0.05	$ 0.02	$ 0.14	$ 0
Net income (loss) per common share - diluted	$ 0.05	$ 0.02	$ 0.14	$ 0
Weighted average shares outstanding - basic	57,701,810	56,864,161	57,492,606	56,677,773
Weighted average shares outstanding - diluted	58,922,423	57,480,592	58,591,303	56,677,773

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Series A Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Additional Paid-In Capital [Member]Series A Preferred Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]
Beginning Balance at Dec. 31, 2014	$ 167,835		$ 57	$ 415,702		$ (3,881)	$ (243,854)	$ (189)
Net income	10,749						10,749
Foreign currency translation adjustment	(2,212)					(2,212)
Exercise of common stock options	2,477		1	2,476
Stock-based compensation	2,225			2,225
Purchase of treasury stock	(257)							(257)
Amortization of preferred stock Series A issuance costs		$ (139)			$ (139)
Preferred stock Series A dividend		$ (2,460)			$ (2,460)
Change in tax benefit from stock-based compensation	76			76
Ending Balance at Sep. 30, 2015	$ 178,294		$ 58	$ 417,880		$ (6,093)	$ (233,105)	$ (446)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 3,502	$ 1,986	$ 10,749	$ 2,037
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization expense	4,111	3,886	12,457	11,413
Provision for bad debts and product returns	155	261	983	572
Provision for inventory write-downs	1,418	722	4,473	2,633
Amortization of deferred revenue	(1,160)	(1,207)	(5,065)	(4,213)
Deferred income tax provision	2,226	84	2,905	461
Stock-based compensation	662	672	1,915	1,695
Other	264	(42)	1,143	45
Change in assets and liabilities:
Accounts receivable	(3,902)	(2,901)	(6,509)	(5,530)
Inventories	(2,664)	(3,828)	(10,671)	(6,972)
Accounts payable	(7,910)	148	(8,672)	4,078
Accrued expenses	(276)	2,790	(4,272)	(3,318)
Deferred revenue			2,000
Other operating assets and liabilities	(720)	(422)	987	(1,437)
Net cash (used in) provided by operating activities	(4,294)	2,149	2,423	1,464
Cash flows from investing activities:
Purchases of property, plant and equipment	(4,392)	(2,800)	(12,969)	(11,272)
Patent and acquired intangible asset costs	(133)	(130)	(249)	(406)
Net cash used in investing activities	(4,525)	(2,930)	(13,218)	(11,678)
Cash flows from financing activities:
Proceeds from exercise of common stock options	570	260	2,477	793
Proceeds from long-term obligations	6,750		6,750	5,000
Net proceeds (payments) from short-term obligations	160	(157)	508	1,151
Payments on long-term obligations	(1,135)	(638)	(4,161)	(670)
Other financing activities	42	7	(169)	(109)
Net cash provided by (used in) financing activities	6,387	(528)	5,405	6,165
Effect of exchange rate changes on cash and cash equivalents	41	(563)	(5)	(742)
Net decrease in cash and cash equivalents	(2,391)	(1,872)	(5,395)	(4,791)
Cash and cash equivalents, beginning of period	12,699	15,802	15,703	18,721
Cash and cash equivalents, end of period	10,308	13,930	10,308	13,930
Supplemental cash flow disclosure:
Cash paid for interest	602	92	1,071	892
Cash paid for income taxes, net	1,110	164	2,631	347
Change in accrual for purchases of property, plant and equipment	1,743	13	17	1,016
Stock-based compensation related to severance			310
Change in accrued dividend payable	$ 832	$ 784	$ 2,460	$ 2,318

Operations and Organization

Operations and Organization	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operations and Organization	1. Operations and Organization The Company is a leader in the use of natural tissues, metals and synthetics to produce orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues and improve surgical outcomes. The Company processes donated human musculoskeletal and other tissue, including bone, cartilage, tendon, ligament, fascia lata, pericardium, sclera and dermal tissue, and bovine and porcine animal tissue in producing allograft and xenograft implants utilizing proprietary BIOCLEANSE®, TUTOPLAST® and CANCELLE® SP sterilization processes, and manufactures metal and synthetic implants, for distribution to hospitals and surgeons. The Company processes tissue at two facilities in Alachua, Florida and one facility in Neunkirchen, Germany, and manufactures metal and synthetic implants in Marquette, Michigan and Greenville, North Carolina. The Company distributes its implants and services in all 50 states and in over 45 countries worldwide.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals, which the Company considers necessary for a fair presentation of the results of operations for the periods shown. The condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, therefore, do not include all information and footnotes necessary for a fair presentation of consolidated financial position, results of operations, comprehensive income (loss) and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The condensed consolidated financial statements include the accounts of RTI Surgical, Inc. and its wholly owned subsidiaries, Pioneer Surgical Technology, Inc. (“Pioneer”), Tutogen Medical, Inc. (“TMI”), RTI Surgical, Inc. – Cardiovascular (inactive), Biological Recovery Group, Inc. (inactive) and RTI Services, Inc. (inactive). The condensed consolidated financial statements also include the accounts of RTI Donor Services, Inc. (“RTIDS”), which is a controlled entity.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	3. Recently Issued Accounting Standards Simplifying the Measurement of Inventory Inventory (Topic 330): Simplifying the Measurement of Inventory Simplifying the Presentation of Debt Issuance Costs Interest – Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs” Presentation of Financial Statements - Going Concern “Presentation of Financial Statements - Going Concern (Subtopic 205-40).” Revenue from Contracts with Customers “Revenue from Contracts with Customers (Topic 606)” “Revenue Recognition”

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	4. Stock-Based Compensation The Company has six stock-based compensation plans. The Company’s policy is to grant stock options at an exercise price equal to 100% of the market value of a share of common stock at closing on the date of the grant. The Company’s stock options generally have ten-year contractual terms and vest over a one to five year period from the date of grant. The Company’s policy is to grant restricted stock awards at a fair value equal to 100% of the market value of a share of common stock at closing on the date of the grant. The Company’s restricted stock awards generally vest over one to three year periods. 2015 Incentive Compensation Plan – 1998 Stock Option Plan, 2004 Equity Incentive Plan, 2010 Equity Incentive Plan, TMI 1996 Stock Option Plan and TMI 2006 Incentive and Non-Statutory Stock Option Plan – Stock Options As of September 30, 2015, there was $3,363 of total unrecognized stock-based compensation related to nonvested stock options. That expense is expected to be recognized over a weighted-average period of 3.36 years. Stock options outstanding, exercisable and available for grant at September 30, 2015 are summarized as follows: Number of Weighted Weighted Aggregate Outstanding at January 1, 2015 5,735,784 $ 4.34 Granted 930,000 5.25 Exercised (848,130 ) 4.32 Forfeited or expired (118,040 ) 4.71 Outstanding at September 30, 2015 5,699,614 $ 4.48 5.97 $ 8,399 Vested or expected to vest at September 30, 2015 5,392,432 $ 4.48 5.81 $ 8,045 Exercisable at September 30, 2015 3,453,714 $ 4.57 4.45 $ 5,409 Available for grant at September 30, 2015 4,555,944 The aggregate intrinsic value in the tables above represents the total pre-tax intrinsic value of stock options for which the fair market value of the underlying common stock exceeded the respective stock option exercise price. Other information concerning stock options are as follows: For the Nine Months Ended September 30, 2015 2014 Weighted average fair value of stock options granted $ 2.49 $ 1.86 Aggregate intrinsic value of stock options exercised 1,572 254 The aggregate intrinsic value of stock options exercised in a period represents the pre-tax cumulative difference between the fair market value of the underlying common stock and the stock option exercise prices, of the stock options exercised during the period. Restricted Stock Awards During the first quarter of 2015, the Company granted 110,000 shares of restricted stock with a weighted-average grant date fair value of $5.23 per share which vest over a three year period. During the second quarter of 2015, the Company granted 85,643 shares of restricted stock with a weighted-average grant date fair value of $5.78 per share which vest over a one year period. As of September 30, 2015, there was $904 of total unrecognized stock-based compensation related to time-based, nonvested restricted stock. That expense is expected to be recognized on a straight-line basis over a weighted-average period of 1.39 years. For the three and nine months ended September 30, 2015 and 2014, the Company recognized stock-based compensation as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Stock-based compensation: Costs of processing and distribution $ 33 $ 33 $ 99 $ 99 Marketing, general and administrative 614 624 1,771 1,551 Research and development 15 15 45 45 Total $ 662 $ 672 $ 1,915 $ 1,695

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Income (Loss) Per Common Share	5. Net Income (Loss) Per Common Share A reconciliation of the number of shares of common stock used in the calculation of basic and diluted net income (loss) per common share is presented below: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Basic shares 57,701,810 56,864,161 57,492,606 56,677,773 Effect of dilutive securities: Stock options 1,220,613 616,431 1,098,697 — Diluted shares 58,922,423 57,480,592 58,591,303 56,677,773 For the three months ended September 30, 2015 and 2014, approximately 1,736,119 and 2,294,354, respectively, and for the nine months ended September 30, 2015 and 2014, approximately 1,767,376 and 4,291,195, respectively, of issued stock options were not included in the computation of diluted net income or loss per common share because they were anti-dilutive since their exercise price exceeded the market price. For the nine months ended September 30, 2014, options to purchase 373,308 shares of common stock were not included in the computation of diluted loss per share because dilutive shares are not factored into this calculation when a net loss is reported. For the three and nine months ended September 30, 2015 and 2014, 50,000 shares of convertible preferred stock and accrued but unpaid dividends were anti-dilutive on an as if-converted basis and were not included in the computation of diluted net income (loss) per common share.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	6. Inventories Inventories by stage of completion are as follows: September 30, December 31, 2015 2014 Unprocessed tissue and raw materials $ 28,428 $ 29,429 Tissue and work in process 41,889 44,688 Implantable tissue and finished goods 46,081 37,150 Supplies 2,194 2,197 $ 118,592 $ 113,464 For the three months ended September 30, 2015 and 2014, the Company had inventory write-downs of $1,418 and $722, respectively, and for the nine months ended September 30, 2015 and 2014, the Company had inventory write-downs of $4,473 and $2,633, respectively, relating primarily to product obsolescence.

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	7. Property, Plant and Equipment Property, plant and equipment are as follows: September 30, December 31, 2015 2014 Land $ 2,357 $ 2,474 Buildings and improvements 63,663 49,483 Processing equipment 41,882 45,878 Surgical instruments 13,225 9,428 Office equipment, furniture and fixtures 4,568 3,863 Computer equipment and software 10,337 7,674 Construction in process 10,819 20,957 Office equipment under capital leases 151 152 147,002 139,909 Less accumulated depreciation (64,088 ) (62,881 ) $ 82,914 $ 77,028 For the three months ended September 30, 2015 and 2014, the Company had depreciation expense in connection with property, plant and equipment of $3,011 and $2,830, respectively, and for the nine months ended September 30, 2015 and 2014, the Company had depreciation expense in connection with property, plant and equipment of $9,212 and $8,104, respectively.

Other Intangible Assets

Other Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	8. Other Intangible Assets Other intangible assets are as follows: September 30, 2015 December 31, 2014 Gross Accumulated Gross Accumulated Patents $ 11,473 $ 3,226 $ 11,420 $ 2,727 Acquired licensing rights 10,850 7,446 10,850 6,538 Marketing and procurement intangible assets 22,200 6,698 22,342 5,086 Total $ 44,523 $ 17,370 $ 44,612 $ 14,351 Marketing and procurement intangible assets include the following: procurement contracts, trademarks, selling and marketing relationships, customer lists and non-compete agreements. For the three months ended September 30, 2015 and 2014, the Company had amortization expense of other intangible assets of $1,100 and $1,056, respectively, and for the nine months ended September 30, 2015 and 2014, the Company had amortization expense of other intangible assets of $3,245 and $3,309, respectively. At September 30, 2015, management’s estimates of future amortization expense for the next five years are as follows: Amortization 2015 $ 1,000 2016 3,400 2017 3,300 2018 3,300 2019 3,300 $ 14,300

Other Assets

Other Assets	9 Months Ended
	Sep. 30, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	9. Other Assets Other assets are as follows: September 30, December 31, 2015 2014 Indemnification asset $ 11,080 $ 11,394 Other 980 876 $ 12,060 $ 12,270 On July 16, 2013, the Company completed its acquisition of Pioneer. Under the terms of the merger agreement dated June 12, 2013, the Company acquired Pioneer for $126,307 in cash. The transaction was funded through a combination of cash on hand, a new credit facility and a concurrent private placement of convertible preferred equity with Water Street Healthcare Partners (“Water Street”). Under the acquisition agreement, Pioneer deposited $13,000 in an escrow account and indemnified the Company for up to $13,000 for various outstanding and potential legal issues. At acquisition, the Company recorded a $13,000 indemnification asset and a corresponding $13,000 indemnification liability. At September 30, 2015, other assets include $11,080 of remaining long-term indemnification assets. Under the acquisition agreement, the Company has submitted claims against the escrow account during the initial escrow period which ended on October 16, 2014. Under certain provisions of the agreement, the claims period for certain claims may be extended to 30 months after the closing date. Claims made against the escrow that remain unresolved at the end of the claims period will be retained in escrow until resolved. For the three months ended September 30, 2015 and 2014, the Company had interest expense associated with the amortization of debt issuance costs of $38 and $35, respectively, and for the nine months ended September 30, 2015 and 2014, the Company had interest expense associated with the amortization of debt issuance costs of $109 and $106, respectively. The remaining unamortized debt issuance costs are included in Other in the table above.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2015
Other Liabilities Disclosure [Abstract]
Accrued Expenses	10. Accrued Expenses Accrued expenses are as follows: September 30, December 31, 2015 2014 Accrued compensation $ 6,140 $ 6,220 Accrued severance charges 449 2,771 Accrued distributor commissions 3,196 3,159 Accrued donor recovery fees 4,128 3,249 Accrued taxes 463 1,249 Accrued restructuring charges — 13 Other 4,510 8,028 $ 18,886 $ 24,689 The Company accrues for the estimated donor recovery fees due to third party recovery agencies as tissue is received.

Short and Long-Term Obligations

Short and Long-Term Obligations	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Short and Long-Term Obligations	11. Short and Long-Term Obligations Short and long-term obligations are as follows: September 30, December 31, 2015 2014 Term loan $ 55,250 $ 59,375 Credit facilities 23,609 16,435 Capital leases 45 82 Total 78,904 75,892 Less current portion (6,141 ) (6,479 ) Long-term portion $ 72,763 $ 69,413 The Company obtained from TD Bank and Regions Bank, a 5-year, $80,000 senior secured facility, which includes a $60,000 term loan and a $20,000 revolving credit facility that matures on July 16, 2018, with a variable interest rate between 100 and 175 basis points in excess of the one month LIBOR rate. On October 15, 2014, the Company entered into a second amendment to the second amended and restated loan agreement with TD Bank, N.A. and Regions Bank, which amended the loan agreement to remove certain financial covenants. On June 29, 2015, the Company entered into a third amendment to the second amended and restated loan agreement with TD Bank, N.A. and Regions Bank, which increased the maximum revolving credit amount from $20,000 to $30,000. At September 30, 2015, the interest rate for the term loan and revolving credit facility is 1.70%. The facility is secured by substantially all the assets of the Company and its subsidiaries and guaranteed by the Company’s domestic subsidiaries, other than RTIDS. As of September 30, 2015, there was $22,000 outstanding on the revolving credit facility. The term loan facility requires aggregate principal payments of $18,000 from January 1, 2015 through June 30, 2018, with a final balloon principal payment at the end of the loan agreement. The credit agreement also contains various restrictive covenants which limit, among other things, indebtedness and liens, as well as payment of dividends, while requiring a minimum cash balance on hand of $10,000 and certain financial covenant ratios. The Company was in compliance with all financial covenants related to its senior secured credit facility as of September 30, 2015. In addition to the credit facility with TD Bank and Regions Bank, the Company has through its German subsidiary, three credit facilities with three German banks as of September 30, 2015. Under the terms of the revolving credit facilities, the Company may borrow up to 1,700 Euro, or approximately $1,911, for working capital needs. The 1,000 Euro revolving credit facility is secured by a mortgage on the Company’s German facility. The 500 Euro revolving credit facility is secured by accounts receivable of the Company’s German subsidiary. The 200 Euro revolving credit facility is unsecured. The current interest rates for these lines of credit vary from 2.55% to 8.50%. As of September 30, 2015, there was $1,609 outstanding on revolving credit facilities with German banks. The total available credit on the Company’s four revolving credit facilities at September 30, 2015 was $8,302. The Company was in compliance with all financial covenants related to its revolving credit facilities as of September 30, 2015. The Company has capital leases with interest rates ranging from 1.49% to 2.85% and maturity dates through 2017. The $45 representing future maturities of capital leases includes immaterial interest at September 30, 2015. The present value of minimum lease payments as of September 30, 2015 was $45. As of September 30, 2015, contractual maturities of long-term obligations are as follows: Term Loan Credit Capital Total 2015 $ 1,125 $ 1,609 $ 9 $ 2,743 2016 4,500 — 31 4,531 2017 5,250 — 5 5,255 2018 44,375 22,000 — 66,375 $ 55,250 $ 23,609 $ 45 $ 78,904

Other Long-Term Liabilities

Other Long-Term Liabilities	9 Months Ended
	Sep. 30, 2015
Text Block [Abstract]
Other Long-Term Liabilities	12. Other Long-Term Liabilities Other long-term liabilities are as follows: September 30, December 31, 2015 2014 Indemnification liability $ 11,080 $ 11,394 Other 493 213 $ 11,573 $ 11,607 As described in Note 9, the Company recorded a $13,000 indemnification liability on the date of the acquisition of Pioneer.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company expects its deferred tax assets of $25,150, net of the valuation allowance at September 30, 2015, of $1,064, to be realized through the generation of future taxable income and the reversal of existing taxable temporary differences. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. As such, valuation allowances of $1,064 and $959 have been established at September 30, 2015 and December 31, 2014, respectively, against a portion of the deferred tax assets relating to certain net operating loss carryforwards. U.S. income taxes have not been provided on the undistributed earnings of the Company’s foreign subsidiaries. It is not practicable to estimate the amount of tax that might be payable. The Company’s intention is to indefinitely reinvest earnings of its foreign subsidiaries outside of the U.S. The Company evaluates the need for deferred tax asset valuation allowances based on a more likely than not standard. The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The assessment regarding whether a valuation allowance is required or should be adjusted also considers all available positive and negative evidence. It is difficult to conclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative losses in recent years. The Company utilizes a rolling three years of actual results as the primary measure of cumulative losses in recent years. When evaluating whether the Company has overcome the significant negative evidence that resulted from cumulative losses in recent years, the Company adjusted its historical loss for items that the Company determined were not indicative of its ability to generate taxable income in future years. The Company’s U.S. operations are in a cumulative income position after adjusting for the items that were not indicative of its ability to generate taxable income in future years. The Company considers this objectively verifiable evidence that its current U.S. operations existing on September 30, 2015, have consistently demonstrated the ability to operate at a profit. The Company believes that this evidence is sufficient to overcome the unadjusted cumulative U.S. losses in recent years. The Company has a history of utilizing 100 percent of its U.S. deferred taxes assets before they expire and the forecasts of taxable earnings project a complete realization of all U.S. deferred tax assets before they expire, including under stressed scenarios. The Company’s foreign operations are in a cumulative loss position after adjusting for items not indicative of its ability to generate taxable income in future years. As of September 30, 2015, the Company’s foreign deferred tax assets primarily relate to net operating loss carryforwards. In general, the Company’s foreign net operating loss carryforwards can be carried forward indefinitely. Future taxable income exclusive of reversing temporary differences and carryforwards is one source of taxable income available that can be used to realize tax benefits. It is the Company’s intent, if foreign operations do not generate cumulative income in the near future, to employ a tax planning action designed to allow the Company to generate foreign taxable earnings and utilize certain foreign net operating losses. As a result, the Company has not recorded an additional valuation allowance charge in its foreign subsidiaries where the Company may employ a tax planning action. The Company has recorded additional valuation allowances in its foreign subsidiaries where the Company does not intend to employ a tax planning action. The Company has evaluated all available positive and negative evidence, including the extent to which that evidence was objectively verifiable. The Company has concluded, for those jurisdictions where valuation allowances have not been established, the positive evidence outweighed the negative evidence and the deferred tax assets are more likely than not realizable as of September 30, 2015. The Company will continue to regularly assess the realizability of its deferred tax assets. Changes in historical earnings performance and future earnings projections, among other factors, may cause the Company to adjust its valuation allowance, which would impact the Company’s income tax expense in the period the Company determines that these factors have changed. One of the Company’s foreign subsidiaries is undergoing an examination by the German tax authorities. The German examination covers the foreign subsidiary’s 2010 through 2013 tax years.

Preferred Stock

Preferred Stock	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Preferred Stock	14. Preferred Stock On June 12, 2013, the Company and Water Street entered into an investment agreement. Pursuant to the terms of the investment agreement, the Company issued $50,000 of convertible preferred equity to Water Street in a private placement which closed on July 16, 2013, with preferred stock issuance costs of $1,290. The Preferred Stock accrues dividends at a rate of 6% per annum. To the extent dividends are not paid in cash in any quarter, the dividends which have accrued on each outstanding share of Preferred Stock during such three-month period will accumulate until paid in cash or converted to common stock. Preferred stock is as follows: Preferred Stock Preferred Stock Net Total Balance at December 31, 2014 $ 53,863 $ (1,029 ) $ 52,834 Accrued dividend payable 2,460 — 2,460 Amortization of preferred stock issuance costs — 139 139 Balance at September 30, 2015 $ 56,323 $ (890 ) $ 55,433

Severance Charges

Severance Charges	9 Months Ended
	Sep. 30, 2015
Employee Severance [Member]
Severance Charges	15. Severance Charges The Company recorded severance charges related to the termination of former employees as a result of the Company flattening its organizational structure, which resulted in $4,798 of expenses for the year ended December 31, 2014. The total severance charges are expected to be paid in full prior to December 31, 2015. Severance payments are made to terminated employees over periods ranging from one month to twelve months and will not have a material impact on cash flows of the Company in any quarterly period. The following table includes a rollforward of severance charges included in accrued expenses, see Note 10. Accrued severance charges at January 1, 2015 $ 2,771 Severance cash payments (2,012 ) Stock based compensation (310 ) Accrued severance charges at September 30, 2015 $ 449

Legal Actions

Legal Actions	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Legal Actions	16. Legal Actions The Company is, from time to time, involved in litigation relating to claims arising out of its operations in the ordinary course of business. The Company believes that none of these claims that were outstanding as of September 30, 2015 will have a material adverse impact on its financial position or results of operations. Coloplast In addition to claims made directly against the Company, Coloplast, a distributor of TSM’s and certain allografts processed and private labeled for them under a contract with the Company, has also been named as a defendant in individual TSM cases in various federal and state courts. Coloplast requested that the Company indemnify or defend Coloplast in those claims which allege injuries caused by the Company’s allograft implants, and on April 24, 2014, Coloplast sued RTI Surgical, Inc. in the Fourth Judicial District of Minnesota for declaratory relief and breach of contract. On December 11, 2014, Coloplast entered into a settlement agreement with RTI Surgical, Inc. and Tutogen Medical, Inc. (the “Company Parties”) resulting in dismissal of the case. Under the terms of the settlement agreement, the Company Parties are responsible for the defense and indemnification of two categories of present and future claims: (1) tissue only (where Coloplast is solely the distributor of Company processed allograft tissue and no Coloplast-manufactured or distributed synthetic mesh is identified) (“Tissue Only Claims”), and (2) tissue plus non-Coloplast synthetic mesh (“Tissue-Non-Coloplast Claims”). There are presently 357 Tissue Only Claims and 399 Tissue-Non-Coloplast Claims for which the Company Parties are providing defense and indemnification. The defense and indemnification of these cases are covered under the Company’s insurance policy subject to a reservation of rights by the insurer. Based on the current information available to the Company, it is not possible to evaluate and estimate with reasonable certainty the impact that current or any future TSM litigation may have on the Company. The Company’s accounting policy is to accrue for legal costs as they are incurred.

Regulatory Actions

Regulatory Actions	9 Months Ended
	Sep. 30, 2015
Text Block [Abstract]
Regulatory Actions	17. Regulatory Actions In the quarter ended September 30, 2014, the Company received a letter from the FDA regarding the Company’s map3® cellular allogeneic bone graft. The letter addresses some technical aspects of the processing of the map3® allograft, as well as language included on the Company’s website. The Company has submitted information and remains in discussion with the FDA. The Company believes that in both developing and processing map3®, the Company has properly considered the relevant regulatory requirements. Additionally, the Company has removed the relevant information from its website pending thorough review and revisions as needed. The Company is committed to resolving the concerns raised by the FDA. However, it is not possible to predict the specific outcome or timing of a resolution at this time.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	18. Commitments and Contingencies Distribution Agreement with Davol

Segment Data

Segment Data	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Data	19. Segment Data The Company distributes human tissue, bovine and porcine animal tissue, metal and synthetic implants through various distribution channels. The Company operates in one reportable segment composed of six lines of business. The Company’s lines of business are composed primarily of six categories: spine; ortho fixation; sports medicine; bone graft substitutes (“BGS”) and general orthopedic; dental; and surgical specialties. Discrete financial information is not available for these six lines of business. The following table presents revenues from these six categories and other revenues for the three and nine months ended September 30, 2015 and 2014, respectively: For the Three Months Ended For the Nine Months Ended 2015 2014 2015 2014 (In Thousands) Revenues: Spine $ 18,104 $ 20,486 $ 57,551 $ 60,895 Ortho fixation 13,659 9,476 37,385 25,837 Sports medicine 10,816 11,357 34,684 34,176 BGS and general orthopedic 9,752 9,237 31,151 26,472 Dental 6,038 5,021 16,991 14,807 Surgical specialties 5,057 6,747 17,673 21,207 Other revenues 3,103 2,839 10,737 8,543 Total revenues $ 66,529 $ 65,163 $ 206,172 $ 191,937 Domestic revenues 61,046 59,677 189,751 173,498 International revenues 5,483 5,486 16,421 18,439 Total revenues $ 66,529 $ 65,163 $ 206,172 $ 191,937 The following table presents percentage of total revenues derived from the Company’s largest distributors and international distribution: For the Three Months Ended For the Nine Months Ended 2015 2014 2015 2014 Percent of revenues derived from: Distributor Zimmer Biomet Holdings, Inc. 24 % 18 % 22 % 17 % Medtronic, PLC 9 % 12 % 9 % 12 % Davol, Inc. 2 % 5 % 4 % 6 % International 8 % 8 % 8 % 10 % The following table presents property, plant and equipment - net by significant geographic location: September 30, December 31, Property, plant and equipment - net: Domestic $ 69,877 $ 63,009 International 13,037 14,019 Total $ 82,914 $ 77,028

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	20. Subsequent Events The Company evaluated subsequent events as of the issuance date of the condensed consolidated financial statements as defined by FASB ASC 855 Subsequent Events

Recently Issued Accounting St27

Recently Issued Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Simplifying the Measurement of Inventory	Simplifying the Measurement of Inventory Inventory (Topic 330): Simplifying the Measurement of Inventory
Simplifying the Presentation of Debt Issuance Costs	Simplifying the Presentation of Debt Issuance Costs Interest – Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs”
Presentation of Financial Statements - Going Concern	Presentation of Financial Statements - Going Concern “Presentation of Financial Statements - Going Concern (Subtopic 205-40).”
Revenue from Contracts with Customers	Revenue from Contracts with Customers “Revenue from Contracts with Customers (Topic 606)” “Revenue Recognition”

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options Outstanding, Exercisable and Available for Grant	Stock options outstanding, exercisable and available for grant at September 30, 2015 are summarized as follows: Number of Weighted Weighted Aggregate Outstanding at January 1, 2015 5,735,784 $ 4.34 Granted 930,000 5.25 Exercised (848,130 ) 4.32 Forfeited or expired (118,040 ) 4.71 Outstanding at September 30, 2015 5,699,614 $ 4.48 5.97 $ 8,399 Vested or expected to vest at September 30, 2015 5,392,432 $ 4.48 5.81 $ 8,045 Exercisable at September 30, 2015 3,453,714 $ 4.57 4.45 $ 5,409 Available for grant at September 30, 2015 4,555,944
Other Information Concerning Stock Options	Other information concerning stock options are as follows: For the Nine Months Ended September 30, 2015 2014 Weighted average fair value of stock options granted $ 2.49 $ 1.86 Aggregate intrinsic value of stock options exercised 1,572 254
Stock-Based Compensation Recognized	For the three and nine months ended September 30, 2015 and 2014, the Company recognized stock-based compensation as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Stock-based compensation: Costs of processing and distribution $ 33 $ 33 $ 99 $ 99 Marketing, general and administrative 614 624 1,771 1,551 Research and development 15 15 45 45 Total $ 662 $ 672 $ 1,915 $ 1,695

Net Income (Loss) Per Common 29

Net Income (Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Reconciliation of Common Stock Used in Calculation of Basic and Diluted Earnings Per Share	A reconciliation of the number of shares of common stock used in the calculation of basic and diluted net income (loss) per common share is presented below: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Basic shares 57,701,810 56,864,161 57,492,606 56,677,773 Effect of dilutive securities: Stock options 1,220,613 616,431 1,098,697 — Diluted shares 58,922,423 57,480,592 58,591,303 56,677,773

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Components of Inventories	Inventories by stage of completion are as follows: September 30, December 31, 2015 2014 Unprocessed tissue and raw materials $ 28,428 $ 29,429 Tissue and work in process 41,889 44,688 Implantable tissue and finished goods 46,081 37,150 Supplies 2,194 2,197 $ 118,592 $ 113,464

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Components of Property, Plant and Equipment	Property, plant and equipment are as follows: September 30, December 31, 2015 2014 Land $ 2,357 $ 2,474 Buildings and improvements 63,663 49,483 Processing equipment 41,882 45,878 Surgical instruments 13,225 9,428 Office equipment, furniture and fixtures 4,568 3,863 Computer equipment and software 10,337 7,674 Construction in process 10,819 20,957 Office equipment under capital leases 151 152 147,002 139,909 Less accumulated depreciation (64,088 ) (62,881 ) $ 82,914 $ 77,028

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Other Intangible Assets	Other intangible assets are as follows: September 30, 2015 December 31, 2014 Gross Accumulated Gross Accumulated Patents $ 11,473 $ 3,226 $ 11,420 $ 2,727 Acquired licensing rights 10,850 7,446 10,850 6,538 Marketing and procurement intangible assets 22,200 6,698 22,342 5,086 Total $ 44,523 $ 17,370 $ 44,612 $ 14,351
Estimates of Future Amortization Expense	At September 30, 2015, management’s estimates of future amortization expense for the next five years are as follows: Amortization 2015 $ 1,000 2016 3,400 2017 3,300 2018 3,300 2019 3,300 $ 14,300

Other Assets (Tables)

Other Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	Other assets are as follows: September 30, December 31, 2015 2014 Indemnification asset $ 11,080 $ 11,394 Other 980 876 $ 12,060 $ 12,270

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2015
Other Liabilities Disclosure [Abstract]
Accrued Expenses	Accrued expenses are as follows: September 30, December 31, 2015 2014 Accrued compensation $ 6,140 $ 6,220 Accrued severance charges 449 2,771 Accrued distributor commissions 3,196 3,159 Accrued donor recovery fees 4,128 3,249 Accrued taxes 463 1,249 Accrued restructuring charges — 13 Other 4,510 8,028 $ 18,886 $ 24,689

Short and Long-Term Obligatio35

Short and Long-Term Obligations (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Short and Long-Term Obligations	Short and long-term obligations are as follows: September 30, December 31, 2015 2014 Term loan $ 55,250 $ 59,375 Credit facilities 23,609 16,435 Capital leases 45 82 Total 78,904 75,892 Less current portion (6,141 ) (6,479 ) Long-term portion $ 72,763 $ 69,413
Contractual Maturities of Short and Long-Term Obligations	As of September 30, 2015, contractual maturities of long-term obligations are as follows: Term Loan Credit Capital Total 2015 $ 1,125 $ 1,609 $ 9 $ 2,743 2016 4,500 — 31 4,531 2017 5,250 — 5 5,255 2018 44,375 22,000 — 66,375 $ 55,250 $ 23,609 $ 45 $ 78,904

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Text Block [Abstract]
Schedule of Other Long-Term Liabilities	Other long-term liabilities are as follows: September 30, December 31, 2015 2014 Indemnification liability $ 11,080 $ 11,394 Other 493 213 $ 11,573 $ 11,607

Preferred Stock (Tables)

Preferred Stock (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of Preferred Stock	Preferred stock is as follows: Preferred Stock Preferred Stock Net Total Balance at December 31, 2014 $ 53,863 $ (1,029 ) $ 52,834 Accrued dividend payable 2,460 — 2,460 Amortization of preferred stock issuance costs — 139 139 Balance at September 30, 2015 $ 56,323 $ (890 ) $ 55,433

Severance Charges (Tables)

Severance Charges (Tables)	9 Months Ended
	Sep. 30, 2015
Employee Severance [Member]
Schedule of Severance Charges	The following table includes a rollforward of severance charges included in accrued expenses, see Note 10. Accrued severance charges at January 1, 2015 $ 2,771 Severance cash payments (2,012 ) Stock based compensation (310 ) Accrued severance charges at September 30, 2015 $ 449

Segment Data (Tables)

Segment Data (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Revenues from Tissue Distribution and Other Revenues	The following table presents revenues from these six categories and other revenues for the three and nine months ended September 30, 2015 and 2014, respectively: For the Three Months Ended For the Nine Months Ended 2015 2014 2015 2014 (In Thousands) Revenues: Spine $ 18,104 $ 20,486 $ 57,551 $ 60,895 Ortho fixation 13,659 9,476 37,385 25,837 Sports medicine 10,816 11,357 34,684 34,176 BGS and general orthopedic 9,752 9,237 31,151 26,472 Dental 6,038 5,021 16,991 14,807 Surgical specialties 5,057 6,747 17,673 21,207 Other revenues 3,103 2,839 10,737 8,543 Total revenues $ 66,529 $ 65,163 $ 206,172 $ 191,937 Domestic revenues 61,046 59,677 189,751 173,498 International revenues 5,483 5,486 16,421 18,439 Total revenues $ 66,529 $ 65,163 $ 206,172 $ 191,937
Schedule of Percentage of Total Revenues Derived from Company's Largest Distributors and International Distribution	The following table presents percentage of total revenues derived from the Company’s largest distributors and international distribution: For the Three Months Ended For the Nine Months Ended 2015 2014 2015 2014 Percent of revenues derived from: Distributor Zimmer Biomet Holdings, Inc. 24 % 18 % 22 % 17 % Medtronic, PLC 9 % 12 % 9 % 12 % Davol, Inc. 2 % 5 % 4 % 6 % International 8 % 8 % 8 % 10 %
Schedule of Property, Plant and Equipment - Net by Significant Geographic Location	The following table presents property, plant and equipment - net by significant geographic location: September 30, December 31, Property, plant and equipment - net: Domestic $ 69,877 $ 63,009 International 13,037 14,019 Total $ 82,914 $ 77,028

Operations and Organization - A

Operations and Organization - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015StateCountryFacility
Operations And Organization [Line Items]
Number of states that receive distribution | State	50
Number of countries that receive distribution | Country	45
Alachua, Florida [Member]
Operations And Organization [Line Items]
Number of operating facilities	2
Neunkirchen, Germany [Member]
Operations And Organization [Line Items]
Number of operating facilities	1

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015$ / sharesshares	Mar. 31, 2015$ / sharesshares	Sep. 30, 2015USD ($)Plansshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term of stock options granted			10 years
Stock-based compensation plans | Plans			6
Percentage of market value of common stock, stock options exercise price			100.00%
Percentage of market value of common stock, restricted stock award granted			100.00%
Stock-based compensation award, vesting period	1 year	3 years
Total unrecognized stock-based compensation			$ 904
Stock-based compensation awards, weighted-average period recognized			1 year 4 months 21 days
Restricted stock granted during period | shares	85,643	110,000
Weighted-average grant date fair value of restricted stock granted | $ / shares	$ 5.78	$ 5.23
Restricted Stock Awards [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation award, vesting period			1 year
Restricted Stock Awards [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation award, vesting period			3 years
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation			$ 3,363
Stock-based compensation awards, weighted-average period recognized			3 years 4 months 10 days
Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation award, vesting period			1 year
Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation award, vesting period			5 years
2015 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock allowed to be issued | shares			4,656,587

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options Outstanding, Exercisable and Available for Grant (Detail) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding, Number of Shares	5,735,784
Granted, Number of Shares	930,000
Exercised, Number of Shares	(848,130)
Forfeited or expired, Number of Shares	(118,040)
Outstanding, Number of Shares	5,699,614
Vested or expected to vest, Number of Shares	5,392,432
Exercisable, Number of Shares	3,453,714
Available for grant, Number of Shares	4,555,944
Outstanding, Weighted Average Exercise Price | $ / shares	$ 4.34
Granted, Weighted Average Exercise Price | $ / shares	5.25
Exercised, Weighted Average Exercise Price | $ / shares	4.32
Forfeited or expired, Weighted Average Exercise Price | $ / shares	4.71
Outstanding, Weighted Average Exercise Price | $ / shares	4.48
Vested or expected to vest, Weighted Average Exercise Price | $ / shares	4.48
Exercisable, Weighted Average Exercise Price | $ / shares	$ 4.57
Outstanding, Weighted Average Remaining Contractual Life (Years)	5 years 11 months 19 days
Vested or expected to vest, Weighted Average Remaining Contractual Life (Years)	5 years 9 months 22 days
Exercisable, Weighted Average Remaining Contractual Life (Years)	4 years 5 months 12 days
Outstanding, Aggregate Intrinsic Value | $	$ 8,399
Vested or expected to vest, Aggregate Intrinsic Value | $	8,045
Exercisable, Aggregate Intrinsic Value | $	$ 5,409

Stock-Based Compensation - Othe

Stock-Based Compensation - Other Information Concerning Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average fair value of stock options granted	$ 2.49	$ 1.86
Aggregate intrinsic value of stock options exercised	$ 1,572	$ 254

Stock-Based Compensation - St44

Stock-Based Compensation - Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 662	$ 672	$ 1,915	$ 1,695
Costs of Processing and Distribution [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	33	33	99	99
Marketing, General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	614	624	1,771	1,551
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 15	$ 15	$ 45	$ 45

Net Income (Loss) Per Common 45

Net Income (Loss) Per Common Share - Reconciliation of Common Stock Used in Calculation of Basic and Diluted Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Basic shares	57,701,810	56,864,161	57,492,606	56,677,773
Effect of dilutive securities: Stock options	1,220,613	616,431	1,098,697
Diluted shares	58,922,423	57,480,592	58,591,303	56,677,773

Net Income (Loss) Per Common 46

Net Income (Loss) Per Common Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock excluded from the computation of diluted EPS	50,000	50,000	50,000	50,000
Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock excluded from the computation of diluted EPS				373,308
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock excluded from the computation of diluted EPS	1,736,119	2,294,354	1,767,376	4,291,195

Inventories - Components of Inv

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Unprocessed tissue and raw materials	$ 28,428	$ 29,429
Tissue and work in process	41,889	44,688
Implantable tissue and finished goods	46,081	37,150
Supplies	2,194	2,197
Inventory - net	$ 118,592	$ 113,464

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Inventory Disclosure [Abstract]
Provision for inventory write-downs	$ 1,418	$ 722	$ 4,473	$ 2,633

Property, Plant and Equipment -

Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 147,002	$ 139,909
Less accumulated depreciation	(64,088)	(62,881)
Property, plant and equipment, net	82,914	77,028
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,357	2,474
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	63,663	49,483
Processing Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	41,882	45,878
Surgical Instruments [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	13,225	9,428
Office Equipment, Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	4,568	3,863
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	10,337	7,674
Construction in Process [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	10,819	20,957
Office Equipment Under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 151	$ 152

Property,Plant and Equipment -

Property,Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense in connection with property, plant and equipment	$ 3,011	$ 2,830	$ 9,212	$ 8,104

Other Intangible Assets - Compo

Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 44,523	$ 44,612
Accumulated Amortization	17,370	14,351
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,473	11,420
Accumulated Amortization	3,226	2,727
Acquired Licensing Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,850	10,850
Accumulated Amortization	7,446	6,538
Marketing and Procurement Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	22,200	22,342
Accumulated Amortization	$ 6,698	$ 5,086

Other Intangible Assets - Addit

Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of other intangible assets	$ 1,100	$ 1,056	$ 3,245	$ 3,309

Other Intangible Assets - Estim

Other Intangible Assets - Estimates of Future Amortization Expense (Detail) $ in Thousands	Sep. 30, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,015	$ 1,000
2,016	3,400
2,017	3,300
2,018	3,300
2,019	3,300
Total future amortization expense	$ 14,300

Other Assets - Schedule of Othe

Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Indemnification assets	$ 11,080	$ 11,394
Other	980	876
Total other assets	$ 12,060	$ 12,270

Other Assets - Additional Infor

Other Assets - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 16, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Other Assets [Line Items]
Deposit in escrow account		$ 13,000		$ 13,000
Indemnification assets		11,080		11,080		$ 11,394
Indemnification liability	$ 13,000	11,080		$ 11,080		$ 11,394
Claim period end date against escrow account				Oct. 16, 2014
Extended claim period against escrow account				30 months
Interest expense associated with the amortization of debt issuance costs		$ 38	$ 35	$ 109	$ 106
Pioneer [Member]
Other Assets [Line Items]
Business acquisition, agreement date				Jun. 12, 2013
Business acquisition, cash consideration	$ 126,307
Business acquisition date				Jul. 16, 2013

Accrued Expenses - Accrued Expe

Accrued Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Accrued compensation	$ 6,140	$ 6,220
Accrued severance charges	449	2,771
Accrued distributor commissions	3,196	3,159
Accrued donor recovery fees	4,128	3,249
Accrued taxes	463	1,249
Accrued restructuring charges		13
Other	4,510	8,028
Total accrued expenses	$ 18,886	$ 24,689

Short and Long-Term Obligatio57

Short and Long-Term Obligations - Short and Long-Term Obligations (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Term loan	$ 55,250	$ 59,375
Credit facilities	23,609	16,435
Capital leases	45	82
Debt and capital lease obligation, total	78,904	75,892
Debt and capital lease obligation, total	78,904	75,892
Less current portion	(6,141)	(6,479)
Long-term portion	$ 72,763	$ 69,413

Short and Long-Term Obligatio58

Short and Long-Term Obligations - Additional Information (Detail)	Jul. 16, 2013	Sep. 30, 2015USD ($)Debt_Instruments	Sep. 30, 2015EUR (€)	Jun. 29, 2015USD ($)	Dec. 31, 2014USD ($)
Line of Credit Facility [Line Items]
Credit outstanding		$ 23,609,000			$ 16,435,000
Maturity date of capital leases		2,017
Future maturities of capital leases		$ 45,000			$ 82,000
Present value of minimum lease payments		45,000
Credit Facilities [Member]
Line of Credit Facility [Line Items]
Credit outstanding		$ 22,000,000
Long-term obligations outstanding, number | Debt_Instruments		4
Current borrowing capacity		$ 8,302,000
Capital Lease Obligations [Member]
Line of Credit Facility [Line Items]
Minimum interest rate		1.49%
Maximum interest rate		2.85%
German Bank Credit Facilities [Member]
Line of Credit Facility [Line Items]
Credit facility, borrowing capacity		$ 1,911,000	€ 1,700,000
Long-term obligations outstanding, number | Debt_Instruments		3
Unsecured revolving credit facility | €			200,000
Minimum interest rate		2.55%
Maximum interest rate		8.50%
German Bank Credit Facilities [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit outstanding		$ 1,609,000
German Bank Credit Facilities [Member] | Secured by Mortgage [Member]
Line of Credit Facility [Line Items]
Revolving credit facility | €			1,000,000
German Bank Credit Facilities [Member] | Secured by Accounts Receivable [Member]
Line of Credit Facility [Line Items]
Revolving credit facility | €			€ 500,000
TD Bank and Regions Bank Senior Secured Facility [Member]
Line of Credit Facility [Line Items]
Term of senior secured credit facility	5 years
Amount of senior secured facility obtained		$ 80,000,000
Maturity date of senior secured credit facility	Jul. 16, 2018
Description of variable interest rate basis		One month LIBOR rate
Revolving credit facility, variable interest rate		1.70%	1.70%
Aggregate principal payment on term loan		$ 18,000,000
Minimum cash balance required for covenant compliance		$ 10,000,000
Covenant Terms of Credit Facility		The credit agreement also contains various restrictive covenants which limit, among other things, indebtedness and liens, as well as payment of dividends, while requiring a minimum cash balance on hand of $10,000 and certain financial covenant ratios.
TD Bank and Regions Bank Senior Secured Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Variable interest rate range	1.00%
TD Bank and Regions Bank Senior Secured Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Variable interest rate range	1.75%
TD Bank and Regions Bank Senior Secured Facility [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, borrowing capacity		$ 20,000,000		$ 30,000,000
TD Bank and Regions Bank Senior Secured Facility [Member] | Term Loan [Member]
Line of Credit Facility [Line Items]
Amount of senior secured facility obtained		$ 60,000,000

Short and Long-Term Obligatio59

Short and Long-Term Obligations - Contractual Maturities of Short and Long-Term Obligations (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
2,015	$ 2,743
2,016	4,531
2,017	5,255
2,018	66,375
Debt and capital lease obligation, total	78,904	$ 75,892
Term Loan [Member]
Debt Instrument [Line Items]
2,015	1,125
2,016	4,500
2,017	5,250
2,018	44,375
Debt and capital lease obligation, total	55,250
Credit Facilities [Member]
Debt Instrument [Line Items]
2,015	1,609
2,018	22,000
Debt and capital lease obligation, total	23,609
Capital Leases [Member]
Debt Instrument [Line Items]
2,015	9
2,016	31
2,017	5
Debt and capital lease obligation, total	$ 45

Other Long-Term Liabilities - S

Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Jul. 16, 2013
Other Liabilities Disclosure [Abstract]
Indemnification liability	$ 11,080	$ 11,394	$ 13,000
Other	493	213
Total other long-term liabilities	$ 11,573	$ 11,607

Other Long-Term Liabilities - A

Other Long-Term Liabilities - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Jul. 16, 2013
Other Liabilities Disclosure [Abstract]
Indemnification liability	$ 11,080	$ 11,394	$ 13,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Deferred tax assets	$ 25,150
Deferred tax assets, valuation allowances	$ 1,064
Primary measure of cumulative losses, number of rolling years	3 years
Utilized percentage of deferred tax assets before expiration	100.00%
Foreign Tax Authority [Member] | Earliest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Income tax examination year	2,010
Foreign Tax Authority [Member] | Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Income tax examination year	2,013
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowances	$ 1,064	$ 959

Preferred Stock - Additional In

Preferred Stock - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 12, 2013	Sep. 30, 2015	Dec. 31, 2014
Series A Preferred Stock [Member]
Temporary Equity [Line Items]
Preferred stock issuance cost		$ 890	$ 1,029
Private Placement with WSHP [Member] | Convertible Preferred Stock [Member]
Temporary Equity [Line Items]
Convertible preferred stock issued	$ 50,000
Preferred stock issuance cost	$ 1,290
Private Placement with WSHP [Member] | Series A Preferred Stock [Member]
Temporary Equity [Line Items]
Preferred stock dividend rate	6.00%

Preferred Stock - Schedule of P

Preferred Stock - Schedule of Preferred Stock (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Temporary Equity [Line Items]
Net Total	$ 55,433	$ 52,834
Accrued dividend payable	2,460
Amortization of preferred stock issuance costs	139
Series A Preferred Stock [Member]
Temporary Equity [Line Items]
Preferred Stock	56,323	53,863
Preferred Stock Issuance Costs	(890)	$ (1,029)
Accrued dividend payable	2,460
Amortization of preferred stock issuance costs	$ 139

Severance Charges - Additional

Severance Charges - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Severance charges related to the termination of former employees		$ 4,798
Minimum [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Severance payment period	1 month
Maximum [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Severance payment period	12 months

Severance Charges - Schedule of

Severance Charges - Schedule of Severance Charges (Detail) - Employee Severance [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Restructuring Cost and Reserve [Line Items]
Accrued severance charges, beginning balance	$ 2,771
Severance cash payments	(2,012)
Stock based compensation	(310)
Accrued severance charges, ending balance	$ 449

Legal Actions - Additional Info

Legal Actions - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015LitigationClaims
Loss Contingencies [Line Items]
Outstanding claims | Litigation	0
Tissue Only Claims [Member]
Loss Contingencies [Line Items]
Claims for which the Company Parties are providing defense and indemnification	357
Tissue Non Coloplast Claims[Member]
Loss Contingencies [Line Items]
Claims for which the Company Parties are providing defense and indemnification	399

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 13, 2009	Mar. 31, 2015	Mar. 31, 2013	Dec. 31, 2010	Sep. 30, 2015
Commitment And Contingencies [Line Items]
Exclusivity payments					$ 3,500
Deferred revenue recognition					2,000
Davol, Inc. [Member]
Commitment And Contingencies [Line Items]
Non-refundable license fee	$ 8,000
Revenue milestone payment				$ 3,500
Exclusivity payments					$ 8,000
Initial agreement term					10 years
Exclusive worldwide distribution agreement, extended expiration date					Jul. 13, 2019
Deferred revenue recognition		$ 1,500	$ 1,715

Segment Data - Additional Infor

Segment Data - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015Segment
Segment Reporting [Abstract]
Number of reportable segments	1
Lines of business	6

Segment Data - Revenues from Ti

Segment Data - Revenues from Tissue Distribution and Other Revenues (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Other revenues	$ 3,103	$ 2,839	$ 10,737	$ 8,543
Revenues	66,529	65,163	206,172	191,937
Domestic [Member]
Segment Reporting Information [Line Items]
Revenues	61,046	59,677	189,751	173,498
International [Member]
Segment Reporting Information [Line Items]
Revenues	5,483	5,486	16,421	18,439
Spine [Member] | Tissue Distribution [Member]
Segment Reporting Information [Line Items]
Tissue distribution	18,104	20,486	57,551	60,895
Ortho Fixation [Member] | Tissue Distribution [Member]
Segment Reporting Information [Line Items]
Tissue distribution	13,659	9,476	37,385	25,837
Sports Medicine [Member] | Tissue Distribution [Member]
Segment Reporting Information [Line Items]
Tissue distribution	10,816	11,357	34,684	34,176
BGS and General Orthopedic [Member] | Tissue Distribution [Member]
Segment Reporting Information [Line Items]
Tissue distribution	9,752	9,237	31,151	26,472
Dental [Member] | Tissue Distribution [Member]
Segment Reporting Information [Line Items]
Tissue distribution	6,038	5,021	16,991	14,807
Surgical Specialties [Member] | Tissue Distribution [Member]
Segment Reporting Information [Line Items]
Tissue distribution	$ 5,057	$ 6,747	$ 17,673	$ 21,207

Segment Data - Schedule of Perc

Segment Data - Schedule of Percentage of Total Revenues Derived from Company's Largest Distributors and International Distribution (Detail) - Distributors Concentration Risk [Member] - Sales Revenue, Net [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Zimmer Biomet Holdings, Inc. [Member]
Concentration Risk [Line Items]
Percentage of sales revenue	24.00%	18.00%	22.00%	17.00%
Medtronic, PLC [Member]
Concentration Risk [Line Items]
Percentage of sales revenue	9.00%	12.00%	9.00%	12.00%
Davol, Inc. [Member]
Concentration Risk [Line Items]
Percentage of sales revenue	2.00%	5.00%	4.00%	6.00%
International Customers [Member]
Concentration Risk [Line Items]
Percentage of sales revenue	8.00%	8.00%	8.00%	10.00%

Segment Data - Schedule of Prop

Segment Data - Schedule of Property, Plant and Equipment - Net by Significant Geographic Location (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment - net	$ 82,914	$ 77,028
Domestic [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment - net	69,877	63,009
International [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment - net	$ 13,037	$ 14,019