Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | LNTH | |
Entity Registrant Name | LANTHEUS HOLDINGS, INC. | |
Entity Central Index Key | 1,521,036 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,387,768 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 77,966 | $ 73,314 | $ 154,440 | $ 148,137 |
Cost of goods sold | 42,215 | 40,647 | 84,988 | 79,701 |
Gross profit | 35,751 | 32,667 | 69,452 | 68,436 |
Operating expenses | ||||
Sales and marketing expenses | 9,843 | 9,229 | 19,150 | 18,301 |
General and administrative expenses | 9,238 | 15,444 | 18,751 | 24,567 |
Research and development expenses | 2,608 | 2,638 | 5,644 | 8,834 |
Total operating expenses | 21,689 | 27,311 | 43,545 | 51,702 |
Gain on sale of assets | 117 | 5,945 | ||
Operating income | 14,179 | 5,356 | 31,852 | 16,734 |
Interest expense, net | (6,978) | (13,876) | (13,996) | (24,499) |
Loss on extinguishment of debt | (15,528) | (15,528) | ||
Other income, net | 396 | 800 | 454 | 417 |
Income (loss) before income taxes | 7,597 | (23,248) | 18,310 | (22,876) |
Provision for income taxes | 247 | 1,175 | 637 | 1,172 |
Net income (loss) | $ 7,350 | $ (24,423) | $ 17,673 | $ (24,048) |
Net income (loss) per weighted average common share outstanding: | ||||
Basic and Diluted | $ 0.24 | $ (1.29) | $ 0.58 | $ (1.30) |
Weighted average common shares outstanding: | ||||
Basic | 30,377,562 | 18,898,003 | 30,372,901 | 18,489,451 |
Diluted | 30,542,728 | 18,898,003 | 30,453,776 | 18,489,451 |
Consolidated statements of Comp
Consolidated statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 7,350 | $ (24,423) | $ 17,673 | $ (24,048) |
Foreign currency translation | (84) | (16) | 256 | (374) |
Total comprehensive income (loss) | $ 7,266 | $ (24,439) | $ 17,929 | $ (24,422) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 54,851 | $ 28,596 |
Accounts receivable, net of allowance of $989 and $881 | 39,457 | 37,293 |
Inventory | 14,433 | 15,622 |
Other current assets | 4,282 | 3,851 |
Assets held for sale | 4,644 | |
Total current assets | 113,023 | 90,006 |
Property, plant and equipment, net | 84,422 | 86,517 |
Capitalized software development costs, net | 8,121 | 9,137 |
Intangibles, net | 17,949 | 20,496 |
Goodwill | 15,714 | 15,714 |
Other long-term assets | 20,038 | 20,509 |
Total assets | 259,267 | 242,379 |
Current liabilities: | ||
Current portion of long-term debt | 3,650 | 3,650 |
Accounts payable | 12,778 | 11,657 |
Accrued expenses and other liabilities | 17,664 | 18,502 |
Liabilities held for sale | 1,715 | |
Total current liabilities | 34,092 | 35,524 |
Asset retirement obligation | 8,650 | 8,145 |
Long-term debt, net | 348,838 | 349,858 |
Other long-term liabilities | 34,055 | 34,141 |
Total liabilities | 425,635 | 427,668 |
Commitments and contingencies (See Note 16) | ||
Stockholders' deficit: | ||
Preferred stock ($0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding) | ||
Common stock ($0.01 par value, 250,000,000 shares authorized; 30,385,437 and 30,364,501 shares issued and outstanding) | 303 | 303 |
Additional paid-in capital | 176,545 | 175,553 |
Accumulated deficit | (341,487) | (359,160) |
Accumulated other comprehensive loss | (1,729) | (1,985) |
Total stockholders' deficit | (166,368) | (185,289) |
Total liabilities and stockholders' deficit | $ 259,267 | $ 242,379 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 989 | $ 881 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 30,385,437 | 30,364,501 |
Common stock, shares outstanding | 30,385,437 | 30,364,501 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ 17,673 | $ (24,048) |
Adjustments to reconcile net loss to cash flow from operating activities | ||
Depreciation and amortization | 9,358 | 12,573 |
Provision for excess and obsolete inventory | 818 | 467 |
Stock-based compensation | 992 | 933 |
Loss on extinguishment of debt | 15,528 | |
Gain on sale of assets | (5,945) | |
Other | 118 | 1,457 |
Increase (decrease) in cash from operating assets and liabilities | ||
Accounts receivable | (2,009) | 4,258 |
Inventory | 525 | (474) |
Other current assets | 393 | (368) |
Accounts payable | 1,474 | 108 |
Accrued expenses and other liabilities | (1,982) | (6,715) |
Cash provided by operating activities | 21,415 | 3,719 |
Cash flows from investing activities | ||
Proceeds from sale of assets | 9,000 | |
Capital expenditures | (2,388) | (6,112) |
Redemption of certificate of deposit-restricted | 74 | |
Cash provided by (used in) investing activities | 6,686 | (6,112) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock in initial public offering | 73,539 | |
Payments for initial public offering costs | (5,255) | |
Proceeds from issuance of long-term debt | 360,438 | |
Payments on long-term debt | (1,861) | |
Payments on senior notes | (400,000) | |
Payment for call premium on senior notes | (9,752) | |
Payments on line of credit | (8,000) | |
Payments for offering costs | (563) | |
Payments on note payable | (37) | |
Deferred financing costs | (11) | (5,315) |
Cash (used in) provided by financing activities | (1,872) | 5,055 |
Effect of foreign exchange rate on cash | 26 | (201) |
Increase in cash and cash equivalents | 26,255 | 2,461 |
Cash and cash equivalents, beginning of period | 28,596 | 19,739 |
Cash and cash equivalents, end of period | 54,851 | 22,200 |
Supplemental disclosure of cash flow information | ||
Interest paid | 12,790 | 27,741 |
Income taxes paid | $ 273 | $ 73 |
Business Overview
Business Overview | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | 1. Business Overview Overview Holdings, a Delaware corporation, is the parent company of LMI, also a Delaware corporation. The Company develops, manufactures and commercializes innovative diagnostic medical imaging agents and products that assist clinicians in the diagnosis and treatment of cardiovascular and other diseases. The Company’s commercial products are used by cardiologists, nuclear physicians, radiologists, internal medicine physicians, sonographers, and technologists working in a variety of clinical settings. The Company sells its products to radiopharmacies, hospitals, clinics, group practices, integrated delivery networks and group purchasing organizations. The Company sells its products globally and has operations in the United States, Canada, Puerto Rico and Australia and distribution relationships in Europe, Asia Pacific and Latin America. The Company’s portfolio of 10 commercial products is diversified across a range of imaging modalities. The Company’s imaging agents and products include the following: • DEFINITY is the leading ultrasound contrast imaging agent used by cardiologists and sonographers during cardiac ultrasound, or echocardiography, exams based on revenue and usage. DEFINITY is an injectable agent that, in the United States, is indicated for use in patients with suboptimal echocardiograms to assist in the visualization of the left ventricle, the main pumping chamber of the heart. The use of DEFINITY in echocardiography allows physicians to significantly improve their assessment of the function of the left ventricle. • TechneLite is a self-contained system, or generator, of technetium (Tc99m), a radioisotope with a six hour half-life, used by radiopharmacies to prepare various nuclear imaging agents. • Xenon Xe 133 Gas, or Xenon, is a radiopharmaceutical gas that is inhaled and used to assess pulmonary function and also cerebral blood flow. • Neurolite is an injectable, technetium-labeled imaging agent used with Single Photon Emission Computed Tomography, or SPECT, technology to identify the area within the brain where blood flow has been blocked or reduced due to stroke. • Cardiolite is an injectable, technetium-labeled imaging agent, also known by its generic name sestamibi, used with SPECT technology in myocardial perfusion imaging, or MPI, procedures that assess blood flow distribution to the heart. In the United States, the Company sells DEFINITY through its sales team that calls on healthcare providers in the echocardiography space, as well as group purchasing organizations and integrated delivery networks. The Company’s radiopharmaceutical products are primarily distributed through commercial radiopharmacies owned or controlled by third parties. In Puerto Rico and Australia, the Company owns three radiopharmacies and sells its own radiopharmaceuticals, as well as others, directly to end users. In Canada, Europe, Asia Pacific and Latin America, the Company utilizes distributor relationships to market, sell and distribute its products. Basis of Consolidation and Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company’s financial statements for interim periods in accordance with U.S. GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. The information included in this quarterly report should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes for the year ended December 31, 2015 included in the Company’s Form 10-K filed with the SEC on March 2, 2016. The Company’s accounting policies are described in the “Notes to Consolidated Financial Statements” in the Form 10-K and updated, as necessary, in this quarterly report. There were no changes to the Company’s accounting policies since December 31, 2015. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period. The Company currently relies on Jubilant HollisterStier, or JHS, as its sole source manufacturer of DEFINITY, Neurolite and evacuation vials for TechneLite. The Company has additional ongoing technology transfer activities at JHS for its Cardiolite product supply, which is currently approved for manufacture by a single manufacturer. The Company has technology transfer activities ongoing at Pharmalucence for the manufacture and supply of DEFINITY, but such activities have been further delayed and the Company cannot predict when or if Pharmalucence will be able to manufacture and supply DEFINITY. Until the Company successfully becomes dual sourced for its principal products, the Company is vulnerable to future supply shortages. Disruption in the financial performance of the Company could also occur if it experiences significant adverse changes in customer mix, broad economic downturns, adverse industry or Company conditions or catastrophic external events. If the Company experiences one or more of these events in the future, it may be required to implement additional expense reductions, such as a delay or elimination of discretionary spending in all functional areas, as well as scaling back select operating and strategic initiatives. The Company has historically been dependent on key customers and group purchasing organizations for the majority of the sales of its medical imaging products. The Company’s ability to maintain and profitably renew those contracts and relationships with those key customers and group purchasing organizations is an important aspect of the Company’s strategy. Borrowing capacity under the $50.0 million revolving credit facility, or the Revolving Facility, is calculated by reference to a borrowing base consisting of a percentage of certain eligible accounts receivable, inventory and machinery and equipment minus any reserves, or the Borrowing Base. If the Company is not successful in achieving its forecasted operating results, the Company’s accounts receivable and inventory could be negatively affected, thus reducing the Borrowing Base and limiting the Company’s borrowing capacity. As of June 30, 2016, the aggregate Borrowing Base was approximately $43.3 million, which was reduced by the $8.8 million unfunded Standby Letter of Credit and $0.1 million in accrued interest, resulting in a net Borrowing Base availability of approximately $34.4 million. The Company’s $365.0 million senior secured term loan facility, or the Term Facility, contains a number of affirmative, negative, reporting and financial covenants, in each case subject to certain exceptions and materiality thresholds. Incremental borrowings under the Revolving Facility may affect the Company’s ability to comply with the covenants in the Term Facility, including the financial covenant restricting total net leverage. Accordingly, the Company may be limited in utilizing its net Borrowing Base availability as a source of liquidity. Based on the Company’s current operating plans, the Company believes its existing cash and cash equivalents, results of operations and availability under the Revolving Facility will be sufficient to continue to fund the Company’s liquidity requirements for at least the next twelve months. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The more significant estimates reflected in the Company’s condensed consolidated financial statements include certain judgments regarding revenue recognition, goodwill, tangible and intangible asset valuation, inventory valuation, asset retirement obligations, income tax liabilities and related indemnification receivable, deferred tax assets and liabilities and accrued expenses. Actual results could materially differ from those estimates or assumptions. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board, or the FASB, issued ASU 2016-09, Compensation – Stock Compensation (Topic 719), Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB, issued ASU 2016-02, Leases (Topic 842) Leases (Topic 840) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606 Subsequent to issuing ASU 2014-09, the FASB issued the following amendments concerning the adoption and clarification of ASU 2014-09. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-4): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue Recognition The Company recognizes revenue when evidence of an arrangement exists, title has passed, the risks and rewards of ownership have transferred to the customer, the selling price is fixed and determinable, and collectability is reasonably assured. For transactions for which revenue recognition criteria have not yet been met, the respective amounts are recorded as deferred revenue until such point in time the criteria are met and revenue can be recognized. Revenue is recognized net of reserves, which consist of allowances for returns and rebates. Revenue arrangements with multiple elements are divided into separate units of accounting if certain criteria are met, including whether the delivered element has stand-alone value to the customer. The arrangement’s consideration is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value; (ii) third-party evidence of selling price; and (iii) best estimate of selling price. The best estimate of selling price reflects the Company’s best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis. The consideration allocated to each unit of accounting is then recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. Supply or service transactions may involve the charge of a nonrefundable initial fee with subsequent periodic payments for future products or services. The up-front fees, even if nonrefundable, are recognized as revenue as the products and/or services are delivered and performed over the term of the arrangement. Inventory Inventory costs associated with product that has not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use of the product and future economic benefits of the asset. If future commercial use of the product is not probable, then inventory costs associated with such product are expensed during the period the costs are incurred. There was no significant product expensed for the six months ended June 30, 2016 and 2015. At June 30, 2016 and December 31, 2015, the Company had no capitalized inventories associated with product that did not have regulatory approval. The Company includes within current assets the amount of inventory that is estimated to be utilized within twelve months. Inventory that will be utilized after twelve months is classified within other long-term assets. Goodwill Goodwill is not amortized, but is instead tested for impairment at least annually and whenever events or circumstances indicate that it is more likely than not that it may be impaired. The Company has elected to perform the annual test for goodwill impairment as of October 31 of each year. There were no events as of June 30, 2016 and December 31, 2015 that triggered an interim impairment test of goodwill. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments The tables below present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points from active markets that are observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs utilize unobservable data points for the asset or liability. (in thousands) Total fair Quoted prices Significant other Significant Money market $ 2,686 $ 2,686 $ — $ — Total $ 2,686 $ 2,686 $ — $ — (in thousands) Total fair Quoted prices Significant other Significant Money market $ 1,586 $ 1,586 $ — $ — Certificates of deposit—restricted 74 — 74 — Total $ 1,660 $ 1,586 $ 74 $ — At December 31, 2015, the Company had a $0.1 million certificate of deposit, which was collateral for a long-term lease and was included in other long-term assets on the condensed consolidated balance sheet. In January 2016, the certificate of deposit was redeemed. Certificates of deposit are classified within Level 2 of the fair value hierarchy, as these are not traded on the open market. At June 30, 2016, the Company had total cash and cash equivalents of $54.9 million, which included approximately $2.7 million of money market funds. At December 31, 2015, the Company had total cash and cash equivalents of $28.6 million, which included approximately $1.6 million of money market funds. The estimated fair values of the Company’s financial instruments, including its cash and cash equivalents, receivables, accounts payable and accrued expenses approximate the carrying values of these instruments due to their short term nature. The estimated fair value of the Company’s Term Facility at both June 30, 2016 and December 31, 2015, approximated the carrying value because the interest rate is subject to change with market interest rates. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate for the full fiscal year in addition to discrete events which impact the interim period. The Company’s effective tax rate differs from the U.S. statutory rate principally due to the rate impact of uncertain tax positions, valuation allowance changes and state taxes. Cumulative adjustments to the tax provision are recorded in the interim period in which a change in the estimated annual effective rate is determined. The Company’s tax provision was $0.2 million and $0.6 million for the three and six months ended June 30, 2016, respectively, compared to a tax provision of $1.2 million for the three and six months ended June 30, 2015. In connection with the Company’s acquisition of the medical imaging business from Bristol-Myers Squibb, or BMS, in 2008, the Company obtained a tax indemnification agreement with BMS related to certain tax obligations arising prior to the acquisition of the Company, for which the Company has the primary legal obligation. The tax indemnification receivable is recognized within other noncurrent assets. The changes in the tax indemnification asset are recognized within other income (expense), net in the condensed consolidated statement of operations. In accordance with the Company’s accounting policy, the change in the tax liability and penalties and interest associated with these obligations (net of any offsetting federal or state benefit) is recognized within the tax provision. Accordingly, as these reserves change, adjustments are included in the tax provision while the offsetting adjustment is included in other income (expense), net. Assuming that the receivable from BMS continues to be considered recoverable by the Company, there is no net effect on earnings related to these liabilities and no net cash outflows. During the first quarter of 2016, the Company early adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Jun. 30, 2016 | |
Leases [Abstract] | |
Assets Held for Sale | 5. Assets Held for Sale During the fourth quarter of 2015, the Company committed to a plan to sell certain assets and liabilities associated with the Company’s international business in Canada. This event qualified for held for sale accounting and the Company determined that the fair value of the net assets being sold significantly exceeded the carrying value as of December 31, 2015. The transaction was finalized in the first quarter of 2016. Effective January 7, 2016, the Canadian subsidiary of the Company entered into an asset purchase agreement (“Purchase Agreement”) pursuant to which it would sell substantially all of the assets of its Canadian radiopharmacies and Gludef manufacturing and distribution business to one of its existing Canadian radiopharmacy customers. The purchase price for the asset sale was $9.0 million in cash and also included a working capital adjustment of $0.5 million. The Purchase Agreement contained customary representations, warranties and covenants by each of the parties. Subject to certain limitations, the buyer will be indemnified for damages resulting from breaches or inaccuracies of the Company’s representations, warranties and covenants in the Purchase Agreement. As part of the transaction, the Company and the buyer also entered into a customary transition services agreement and a long-term supply contract under which the Company will supply the buyer with the Company’s products on commercial terms and under which the buyer has agreed to certain product purchase commitments. The Company did not believe the sale of certain net assets in the international business constituted a strategic shift that would have a major effect on its operations or financial results. As a result, this transaction was not classified as discontinued operations in the Company’s financial statements and was classified as assets and liabilities held for sale as of December 31, 2015. The following table summarizes the major classes of assets and liabilities sold as of January 12, 2016 (date of the sale) and December 31, 2015: (in thousands) January 12, December 31, Current Assets: Accounts receivable, net $ 2,620 $ 2,512 Inventory 730 806 Other current assets 15 26 Total current assets 3,365 3,344 Non-Current Assets: Property, plant and equipment, net 760 791 Intangibles, net 462 480 Other long-term assets 28 29 Total assets held for sale $ 4,615 $ 4,644 Current Liabilities: Accounts payable $ 435 $ 430 Accrued expense and other liabilities 858 1,285 Total liabilities held for sale $ 1,293 $ 1,715 The sale resulted in a pre-tax book gain of $5.9 million, which was recorded within operating income in the condensed consolidated statement of operations for the six month period ended June 30, 2016. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | 6. Inventory Inventory, classified in inventory or other long-term assets, consisted of the following: (in thousands) June 30, December 31, Raw materials $ 7,062 $ 7,506 Work in process 2,712 2,407 Finished goods 4,659 5,709 Inventory 14,433 15,622 Other long-term assets 1,156 1,156 Total $ 15,589 $ 16,778 At both June 30, 2016 and December 31, 2015, inventories reported as other long-term assets included $1.2 million of raw materials. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | 7. Property, Plant and Equipment, net Property, plant and equipment consisted of the following: (in thousands) June 30, December 31, Land $ 14,950 $ 14,950 Buildings 69,577 68,941 Machinery, equipment and fixtures 65,982 60,787 Construction in progress 4,882 9,099 Accumulated depreciation (70,969 ) (67,260 ) Property, plant and equipment, net $ 84,422 $ 86,517 For the three and six month period ended June 30, 2016, depreciation expense related to property, plant and equipment was $2.2 million and $4.1 million, respectively, as compared to $2.0 million and $7.7 million for the prior year comparative periods. Fixed assets dedicated to research and development, or R&D, activities, which were impacted by the March 2013 R&D strategic shift, have a carrying value of $3.9 million as of June 30, 2016. The Company believes these fixed assets will be utilized for either internally funded ongoing R&D activities or R&D activities funded by a strategic partner. If the Company is not successful in finding a strategic partner and there are no alternative uses for these fixed assets, then they could be subject to impairment in the future. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 8. Asset Retirement Obligations The Company considers the legal obligation to remediate its facilities upon a decommissioning of its radioactive related operations as an asset retirement obligation. The operations of the Company have radioactive production facilities at its North Billerica, Massachusetts and San Juan, Puerto Rico sites. The Company is required to provide the U.S. Nuclear Regulatory Commission and Massachusetts Department of Public Health financial assurance demonstrating the Company’s ability to fund the decommissioning of the North Billerica, Massachusetts production facility upon closure, although the Company does not intend to close the facility. The Company has provided this financial assurance in the form of a $28.2 million surety bond, which itself is currently secured by an $8.8 million unfunded Standby Letter of Credit provided to the third party issuer of the bond. The fair value of a liability for asset retirement obligations is recognized in the period in which the liability is incurred. As of June 30, 2016, the liability is measured at the present value of the obligation expected to be incurred, of approximately $26.7 million, and is adjusted in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying value of the related long-lived assets and depreciated over the asset’s useful life. The following is a reconciliation of the Company’s asset retirement obligations for the six months ended June 30, 2016: (in thousands) Balance at December 31, 2015 $ 8,145 Net increase due to changes in estimated future cash flows 39 Accretion expense 466 Balance at June 30, 2016 $ 8,650 |
Intangibles, Net
Intangibles, Net | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles, Net | 9. Intangibles, net Intangibles, net consisted of the following: June 30, 2016 (in thousands) Cost Accumulated Net Amortization Trademarks $ 13,540 $ 7,843 $ 5,697 Straight-line Customer relationships 100,997 90,158 10,839 Accelerated Patents 42,780 41,367 1,413 Straight-line $ 157,317 $ 139,368 $ 17,949 December 31, 2015 (in thousands) Cost Accumulated Net Amortization Trademarks $ 13,540 $ 6,934 $ 6,606 Straight-line Customer relationships 100,737 88,564 12,173 Accelerated Patents 42,780 41,063 1,717 Straight-line $ 157,057 $ 136,561 $ 20,496 For the three and six month period ended June 30, 2016, the Company recorded amortization expense for its intangible assets of $1.3 million and $2.6 million, respectively, as compared to $1.5 million and $3.0 million for the prior year comparative periods. Expected future amortization expense related to the intangible assets is as follows: (in thousands) Remainder of 2016 $ 2,587 2017 3,393 2018 2,688 2019 1,836 2020 1,595 2021 and thereafter 5,850 $ 17,949 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Accrued Expenses and Other Liabilities | 10. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities are comprised of the following: (in thousands) June 30, December 31, Compensation and benefits $ 9,118 $ 10,525 Freight, distribution and operations 3,282 2,962 Accrued rebates, discounts and chargebacks 2,373 2,085 Accrued professional fees 1,272 1,493 Marketing expense 725 490 Research and development services 298 360 Other 596 587 $ 17,664 $ 18,502 |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | 11. Financing Arrangements Term Facility On June 30, 2015, the Company entered into a $365.0 million seven-year Term Facility, which was issued net of a 1.25% discount of $4.6 million. The Company has a right to request an increase of the Term Facility in an aggregate amount up to $37.5 million plus additional amounts subject to certain leverage ratios. The net proceeds of the Term Facility, together with the net proceeds of the initial public offering, or IPO, and cash on hand, were used to refinance in full the aggregate principal amount of the $400.0 million 9.750% Senior Notes (“the Notes”) and pay related premiums, interest and expenses. The term loans under the Term Facility bear interest, with pricing based from time to time at the Company’s election at (i) LIBOR plus a spread of 6.00% (with a LIBOR rate floor of 1.00%) or (ii) the Base Rate (as defined in our Term Facility) plus a spread of 5.00%. Interest under term loans based on (i) the LIBOR rate is payable at the end of each Interest Period (as defined in our Term Facility) and (ii) the Base Rate is payable at the end of each quarter. At June 30, 2016, the Company’s interest rate under the Term Facility was 7.00%. The Company is permitted to voluntarily prepay the Term Facility, in whole or in part, without premium or penalty. The Company is required to make quarterly payments, which began on September 30, 2015, in an amount equal to a quarter of a percent (0.25%) per annum of the original principal amount of the Term Facility. The remaining unpaid principal amount of the Term Facility will be payable on the maturity date, or June 30, 2022. The Term Facility will require the Company to prepay outstanding term loans, subject to certain exceptions, with: • 100% of the net cash proceeds of all non-ordinary course sales or other dispositions of assets (including as a result of casualty or condemnation, subject to certain exceptions); the Company may reinvest or commit to reinvest certain of those proceeds in assets useful in our business within twelve months; • 100% of the net cash proceeds from issuances or incurrence of debt, other than proceeds from debt permitted under the Term Facility and Revolving Facility; and • 50% (with two leverage-based stepdowns) of the Company’s excess cash flow. The foregoing mandatory prepayments will be applied to the scheduled installments of principal of the Term Facility as directed by LMI, or in the absence of direction, in direct order of maturity. The Term Facility is guaranteed by the Company and Lantheus Real Estate, and obligations under the Term Facility are secured by substantially all the property and assets and all interests of the Company, LMI and Lantheus Real Estate. The Company’s maturities of principal obligations under the Term Facility are as follows as of June 30, 2016: (in thousands) Remainder of 2016 $ 1,825 2017 3,650 2018 3,650 2019 3,650 2020 3,650 2021 and thereafter 344,925 Total debt 361,350 Unamortized debt discount (3,860 ) Unamortized debt issuance costs (5,002 ) Total 352,488 Less current portion (3,650 ) Total long-term debt $ 348,838 Term Facility Covenants The Term Facility contains a number of affirmative, negative, reporting and financial covenants, in each case subject to certain exceptions and materiality thresholds. The Term Facility requires the Company to be in quarterly compliance, measured on a trailing four quarter basis. The financial covenants are displayed in the table below: Term Facility Financial Covenants Period Total Net Leverage Ratio Q2 2016 to Q4 2016 6.00 to 1.00 Q1 2017 to Q2 2017 5.50 to 1.00 Thereafter 5.00 to 1.00 The Term Facility contains usual and customary restrictions on the ability of the Company and its subsidiaries to: (i) incur additional indebtedness (ii) create liens; (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; (iv) sell certain assets; (v) pay dividends on, repurchase or make distributions in respect of capital stock or make other restricted payments; (vi) make certain investments; (vii) repay subordinated indebtedness prior to stated maturity; and (viii) enter into certain transactions with its affiliates. Revolving Line of Credit At June 30, 2016, the Company has a Revolving Facility with an aggregate principal amount not to exceed $50.0 million. The loans under the Revolving Facility bear interest with pricing based from time to time at the election of LMI at (i) LIBOR plus a spread of 2.00% or (ii) the Reference Rate (as defined in the Revolving Facility) plus 1.00%. The Revolving Facility also includes an unused line fee of 0.375% and expires on June 30, 2020. As of June 30, 2016, the Company has an unfunded Standby Letter of Credit for up to $8.8 million. The unfunded Standby Letter of Credit requires an annual fee, payable quarterly, which is set at LIBOR plus a spread of 2.00% and expires in February 2017. It automatically renewed for a one year period and will continue to automatically renew for a one year period at each anniversary date, unless the Company elects not to renew in writing within 60 days prior to such expiration. The Revolving Facility is guaranteed by Holdings and Lantheus Real Estate and is secured by a pledge of substantially all of the assets of each of the loan parties including accounts receivable, inventory and machinery and equipment. Borrowing capacity is determined by reference to a Borrowing Base, which is based on a percentage of certain eligible accounts receivable, inventory and machinery and equipment minus any reserves. As of June 30, 2016, the aggregate Borrowing Base was approximately $43.3 million, which was reduced by an outstanding $8.8 million unfunded Standby Letter of Credit and $0.1 million in accrued interest, resulting in a net Borrowing Base availability of approximately $34.4 million. Revolving Line of Credit Covenants The Revolving Facility contains a number of affirmative, negative, reporting and financial covenants, as well as a financial covenant during trigger periods in the form of a consolidated fixed charge coverage ratio of not less than 1:00:1:00. Upon an event of default, the lender has the right to declare the loans and other obligations outstanding immediately due and payable and all commitments immediately terminated or reduced, and the lender may, after such events of default, require the Company to make deposits with respect to any outstanding letters of credit in an amount equal to 105% of the greatest amount for which such letter of credit may be drawn. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity As of June 30, 2016, the authorized capital stock of the Company consisted of 250,000,000 shares of common stock, par value $0.01 per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. The common stockholders are entitled to one vote per share and will share equally on a per share basis in any dividend declared by the Board of Directors, subject to any preferential rights of the holders of any outstanding preferred stock. The following table presents the changes in stockholders’ deficit for the six months ended June 30, 2016: Common Stock Accumulated Shares Amount Additional Accumulated Other Total Balance at December 31, 2015 30,364,501 $ 303 $ 175,553 $ (359,160 ) $ (1,985 ) $ (185,289 ) Net income — — — 17,673 — 17,673 Other comprehensive income — — — — 256 256 Vesting of restricted stock awards 20,936 — — — — — Stock-based compensation — — 992 — — 992 Balance at June 30, 2016 30,385,437 $ 303 $ 176,545 $ (341,487 ) $ (1,729 ) $ (166,368 ) |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation As of June 24, 2015, the Company adopted the 2015 Equity Incentive Plan, (the “2015 Plan”). The Company’s employees are eligible to receive awards under the 2015 Plan. The 2015 Plan is administered by the Board of Directors and permits the granting of stock options, stock appreciation rights, or SARs, restricted stock, restricted stock units and dividend equivalent rights (“DERs”) to employees, officers, directors and consultants of the Company. The Board of Directors may, at its sole discretion, grant DERs with respect to any award and such DER is treated as a separate award. The number of shares authorized for issuance under the 2015 Plan increased to 4,555,277 on April 26, 2016. Option awards under the 2015 Plan are granted with an exercise price equal to the fair value of the Company’s common stock at the date of grant. Time based option awards vest based on time, typically four years, and performance based option awards vest based on the performance criteria specified in the grant. All option awards have a ten-year contractual term. The Company recognizes compensation costs for its time based awards on a straight-line basis equal to the vesting period. The compensation cost for performance based awards is recognized on a graded vesting basis, based on the probability of achieving the performance targets over the requisite service period for the entire award. The fair value of each option award is estimated on the date of grant using a Black-Scholes valuation model. Expected volatilities are based on the historic volatility of a selected peer group. Expected dividends represent the dividends expected to be issued at the date of grant. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free interest rate assumption is the U.S. Treasury rate at the date of the grant which most closely resembles the expected life of the options. Stock-based compensation expense for both time based and performance based stock options and restricted stock awards were recognized in the condensed consolidated statements of operations as follows: Three Months Six Months (in thousands) 2016 2015 2016 2015 Cost of goods sold $ 73 $ 52 $ 139 $ 51 General and administrative 345 465 578 679 Sales and marketing 80 79 128 115 Research and development 87 60 147 88 Total stock-based compensation expense $ 585 $ 656 $ 992 $ 933 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 14. Net Income (Loss) Per Share Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period, plus the potential dilutive effect of other securities if those securities were converted or exercised. During periods in which the Company incurs net losses, both basic and diluted loss per share is calculated by dividing the net loss by the weighted average shares outstanding and potentially dilutive securities are excluded from the calculation because their effect would be antidilutive. Three Months Ended Six Months Ended (in thousands, except share and per share amounts) 2016 2015 2016 2015 Net income (loss) $ 7,350 $ (24,423 ) $ 17,673 $ (24,048 ) Basic weighted average common shares outstanding 30,377,562 18,898,003 30,372,901 18,489,451 Effect of dilutive restricted stock awards 165,166 — 80,875 — Diluted weighted average common shares outstanding 30,542,728 18,898,003 30,453,776 18,489,451 Basic and diluted income (loss) per weighted average common share outstanding $ 0.24 $ (1.29 ) $ 0.58 $ (1.30 ) The weighted average number of common shares for the three and six months ended June 30, 2016 did not include 2,183,075 options and unvested restricted stock for each period because of their antidilutive effect, as compared to the three and six months ended June 30, 2015, which did not include 2,153,827 options and unvested restricted stock for each period. |
Other Income, net
Other Income, net | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income, net | 15. Other Income, net Three Months Six Months (in thousands) 2016 2015 2016 2015 Foreign currency gains (losses) $ 256 $ 18 $ 19 $ (360 ) Tax indemnification income 140 781 436 777 Other income (expense) — 1 (1 ) — Total other income, net $ 396 $ 800 $ 454 $ 417 |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Contingencies | 16. Legal Proceedings and Contingencies From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. In addition, the Company has in the past been, and may in the future be, subject to investigations by governmental and regulatory authorities, which expose it to greater risks associated with litigation, regulatory or other proceedings, as a result of which the Company could be required to pay significant fines or penalties. The outcome of litigation, regulatory or other proceedings cannot be predicted with certainty, and some lawsuits, claims, actions or proceedings may be disposed of unfavorably to the Company. In addition, intellectual property disputes often have a risk of injunctive relief which, if imposed against the Company, could materially and adversely affect its financial condition or results of operations. As of June 30, 2016, the Company had no material ongoing litigation in which the Company was a defendant or any material ongoing regulatory or other proceedings and had no knowledge of any investigations by government or regulatory authorities in which the Company is a target that could have a material adverse effect on its current business. On December 16, 2010, LMI filed suit against one of its insurance carriers seeking to recover business interruption losses associated with the NRU reactor shutdown and the ensuing global Moly supply shortage. The claim is the result of the shutdown of the NRU reactor in Chalk River, Ontario. The NRU reactor was off-line from May 2009 until August 2010. The defendant answered the complaint on January 21, 2011, denying substantially all of the allegations, presenting certain defenses and requesting dismissal of the case with costs and disbursements. Discovery, including international discovery and related motion practice, has been on-going for more than three years. The defendant filed a motion for summary judgment on July 14, 2014. The Company filed a memorandum of law in opposition to defendant’s motion for summary judgment on August 25, 2014. The defendant filed a reply memorandum of law in further support of its motion for summary judgment on September 15, 2014. Expert witness discovery was completed on October 31, 2014. On March 25, 2015, the United States District Court for the Southern District of New York granted defendant’s motion for summary judgment. On September 4, 2015, the Company filed an appeal of the District Court decision with the United States Court of Appeals for the Second Circuit. On December 4, 2015, the defendant filed an answer brief to the Company’s appeal, and on December 18, 2015, the Company filed a reply brief to the defendant’s answer. On April 21, 2016, the United States Court of Appeals for the Second Circuit heard oral arguments of the Company and the defendant in connection with the Company’s appeal. On May 25, 2016, the United States Court of Appeals for the Second Circuit issued a Summary Order affirming the judgment of the United States District Court which granted the defendant’s motion for summary judgment. The Company considers this matter closed. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related Party Transactions Avista, the Company’s majority shareholder, provided certain advisory services to the Company pursuant to an advisory services and monitoring agreement. The Company was required to pay an annual fee of $1.0 million and other reasonable and customary advisory fees, as applicable, paid on a quarterly basis. The initial term of the agreement was seven years. On June 25, 2015, the Company exercised its right to terminate its advisory services and monitoring agreement with Avista. In connection with such termination, the Company has paid Avista Capital Holdings, L.P. an aggregate termination fee of $6.5 million, which was included in general and administrative expenses in the condensed consolidated statement of operations during the quarter ended June 30, 2015. During the three and six months ended June 30, 2016, the Company did not incur any costs associated with this agreement as compared to $6.8 million and $7.0 million, respectively, for the prior year comparative periods. At June 30, 2016 and December 31, 2015, there were no amounts outstanding. In the first quarter of 2016, the Company entered into a services agreement with INC Research, LLC, or INC, to provide pharmacovigilance services. Avista and certain of its affiliates are principal owners of both INC and the Company. The agreement has a term of three years. During the three and six months ended June 30, 2016, the Company incurred costs associated with this agreement of approximately $0.3 million and $0.5 million, respectively. At June 30, 2016, $0.1 million was included in accrued expenses and other liabilities. The Company purchases inventory supplies from VWR Scientific, or VWR. Avista and certain of its affiliates are principal owners of both VWR and the Company. During each of the three and six months ended June 30, 2016, the Company made purchases of $0.1 million and $0.2 million respectively, as compared to $44,000 and $0.1 million for the prior year comparative periods. At June 30, 2016 and December 31, 2015, $6,000 and $10,000, respectively, was included in accounts payable and accrued expenses. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 18. Segment Information The Company reports two operating segments, U.S. and International, based on geographic customer base. The results of these operating segments are regularly reviewed by the Company’s chief operating decision maker, the President and Chief Executive Officer. The Company’s segments derive revenues through the manufacturing, marketing, selling and distribution of medical imaging products, focused primarily on cardiovascular diagnostic imaging. The U.S. segment comprises 83.5% and 84.2% of consolidated revenues for the three and six months ended June 30, 2016 as compared to 79.6% and 80.4% for the prior year comparative periods. Selected information for each business segment are as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Revenues U.S. $ 72,244 $ 64,689 $ 143,014 $ 130,477 International 12,832 14,936 24,373 29,092 Total revenue, including inter-segment 85,076 79,625 167,387 159,569 Less inter-segment revenue (7,110 ) (6,311 ) (12,947 ) (11,432 ) $ 77,966 $ 73,314 $ 154,440 $ 148,137 Revenues from external customers U.S. $ 65,134 $ 58,378 $ 130,067 $ 119,045 International 12,832 14,936 24,373 29,092 $ 77,966 $ 73,314 $ 154,440 $ 148,137 Operating income U.S. $ 15,931 $ 3,442 $ 29,335 $ 16,121 International (1,443 ) 2,059 2,691 585 Total operating income, including inter-segment 14,488 5,501 32,026 16,706 Inter-segment operating (loss) income (309 ) (145 ) (174 ) 28 Operating income 14,179 5,356 31,852 16,734 Interest expense, net (6,978 ) (13,876 ) (13,996 ) (24,499 ) Loss on extinguishment of debt — (15,528 ) — (15,528 ) Other income, net 396 800 454 417 Income (loss) before income taxes $ 7,597 $ (23,248 ) $ 18,310 $ (22,876 ) |
Business Overview (Policies)
Business Overview (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company’s financial statements for interim periods in accordance with U.S. GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. The information included in this quarterly report should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes for the year ended December 31, 2015 included in the Company’s Form 10-K filed with the SEC on March 2, 2016. The Company’s accounting policies are described in the “Notes to Consolidated Financial Statements” in the Form 10-K and updated, as necessary, in this quarterly report. There were no changes to the Company’s accounting policies since December 31, 2015. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period. The Company currently relies on Jubilant HollisterStier, or JHS, as its sole source manufacturer of DEFINITY, Neurolite and evacuation vials for TechneLite. The Company has additional ongoing technology transfer activities at JHS for its Cardiolite product supply, which is currently approved for manufacture by a single manufacturer. The Company has technology transfer activities ongoing at Pharmalucence for the manufacture and supply of DEFINITY, but such activities have been further delayed and the Company cannot predict when or if Pharmalucence will be able to manufacture and supply DEFINITY. Until the Company successfully becomes dual sourced for its principal products, the Company is vulnerable to future supply shortages. Disruption in the financial performance of the Company could also occur if it experiences significant adverse changes in customer mix, broad economic downturns, adverse industry or Company conditions or catastrophic external events. If the Company experiences one or more of these events in the future, it may be required to implement additional expense reductions, such as a delay or elimination of discretionary spending in all functional areas, as well as scaling back select operating and strategic initiatives. The Company has historically been dependent on key customers and group purchasing organizations for the majority of the sales of its medical imaging products. The Company’s ability to maintain and profitably renew those contracts and relationships with those key customers and group purchasing organizations is an important aspect of the Company’s strategy. Borrowing capacity under the $50.0 million revolving credit facility, or the Revolving Facility, is calculated by reference to a borrowing base consisting of a percentage of certain eligible accounts receivable, inventory and machinery and equipment minus any reserves, or the Borrowing Base. If the Company is not successful in achieving its forecasted operating results, the Company’s accounts receivable and inventory could be negatively affected, thus reducing the Borrowing Base and limiting the Company’s borrowing capacity. As of June 30, 2016, the aggregate Borrowing Base was approximately $43.3 million, which was reduced by the $8.8 million unfunded Standby Letter of Credit and $0.1 million in accrued interest, resulting in a net Borrowing Base availability of approximately $34.4 million. The Company’s $365.0 million senior secured term loan facility, or the Term Facility, contains a number of affirmative, negative, reporting and financial covenants, in each case subject to certain exceptions and materiality thresholds. Incremental borrowings under the Revolving Facility may affect the Company’s ability to comply with the covenants in the Term Facility, including the financial covenant restricting total net leverage. Accordingly, the Company may be limited in utilizing its net Borrowing Base availability as a source of liquidity. Based on the Company’s current operating plans, the Company believes its existing cash and cash equivalents, results of operations and availability under the Revolving Facility will be sufficient to continue to fund the Company’s liquidity requirements for at least the next twelve months. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The more significant estimates reflected in the Company’s condensed consolidated financial statements include certain judgments regarding revenue recognition, goodwill, tangible and intangible asset valuation, inventory valuation, asset retirement obligations, income tax liabilities and related indemnification receivable, deferred tax assets and liabilities and accrued expenses. Actual results could materially differ from those estimates or assumptions. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board, or the FASB, issued ASU 2016-09, Compensation – Stock Compensation (Topic 719), Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB, issued ASU 2016-02, Leases (Topic 842) Leases (Topic 840) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606 Subsequent to issuing ASU 2014-09, the FASB issued the following amendments concerning the adoption and clarification of ASU 2014-09. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-4): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when evidence of an arrangement exists, title has passed, the risks and rewards of ownership have transferred to the customer, the selling price is fixed and determinable, and collectability is reasonably assured. For transactions for which revenue recognition criteria have not yet been met, the respective amounts are recorded as deferred revenue until such point in time the criteria are met and revenue can be recognized. Revenue is recognized net of reserves, which consist of allowances for returns and rebates. Revenue arrangements with multiple elements are divided into separate units of accounting if certain criteria are met, including whether the delivered element has stand-alone value to the customer. The arrangement’s consideration is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value; (ii) third-party evidence of selling price; and (iii) best estimate of selling price. The best estimate of selling price reflects the Company’s best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis. The consideration allocated to each unit of accounting is then recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. Supply or service transactions may involve the charge of a nonrefundable initial fee with subsequent periodic payments for future products or services. The up-front fees, even if nonrefundable, are recognized as revenue as the products and/or services are delivered and performed over the term of the arrangement. |
Inventory | Inventory Inventory costs associated with product that has not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use of the product and future economic benefits of the asset. If future commercial use of the product is not probable, then inventory costs associated with such product are expensed during the period the costs are incurred. There was no significant product expensed for the six months ended June 30, 2016 and 2015. At June 30, 2016 and December 31, 2015, the Company had no capitalized inventories associated with product that did not have regulatory approval. The Company includes within current assets the amount of inventory that is estimated to be utilized within twelve months. Inventory that will be utilized after twelve months is classified within other long-term assets. |
Goodwill | Goodwill Goodwill is not amortized, but is instead tested for impairment at least annually and whenever events or circumstances indicate that it is more likely than not that it may be impaired. The Company has elected to perform the annual test for goodwill impairment as of October 31 of each year. There were no events as of June 30, 2016 and December 31, 2015 that triggered an interim impairment test of goodwill. |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Information about the Company's Assets and Liabilities Measured at Fair Value on a Recurring Basis | The tables below present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015, (in thousands) Total fair Quoted prices Significant other Significant Money market $ 2,686 $ 2,686 $ — $ — Total $ 2,686 $ 2,686 $ — $ — (in thousands) Total fair Quoted prices Significant other Significant Money market $ 1,586 $ 1,586 $ — $ — Certificates of deposit—restricted 74 — 74 — Total $ 1,660 $ 1,586 $ 74 $ — |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Leases [Abstract] | |
Summary of Assets and Liabilities Sold | The following table summarizes the major classes of assets and liabilities sold as of January 12, 2016 (date of the sale) and December 31, 2015: (in thousands) January 12, December 31, Current Assets: Accounts receivable, net $ 2,620 $ 2,512 Inventory 730 806 Other current assets 15 26 Total current assets 3,365 3,344 Non-Current Assets: Property, plant and equipment, net 760 791 Intangibles, net 462 480 Other long-term assets 28 29 Total assets held for sale $ 4,615 $ 4,644 Current Liabilities: Accounts payable $ 435 $ 430 Accrued expense and other liabilities 858 1,285 Total liabilities held for sale $ 1,293 $ 1,715 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Classified in Inventory or Other Long-Term Assets | Inventory, classified in inventory or other long-term assets, consisted of the following: (in thousands) June 30, December 31, Raw materials $ 7,062 $ 7,506 Work in process 2,712 2,407 Finished goods 4,659 5,709 Inventory 14,433 15,622 Other long-term assets 1,156 1,156 Total $ 15,589 $ 16,778 |
Property, Plant and Equipment29
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment consisted of the following: (in thousands) June 30, December 31, Land $ 14,950 $ 14,950 Buildings 69,577 68,941 Machinery, equipment and fixtures 65,982 60,787 Construction in progress 4,882 9,099 Accumulated depreciation (70,969 ) (67,260 ) Property, plant and equipment, net $ 84,422 $ 86,517 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Reconciliation of Company's Asset Retirement Obligations | The following is a reconciliation of the Company’s asset retirement obligations for the six months ended June 30, 2016: (in thousands) Balance at December 31, 2015 $ 8,145 Net increase due to changes in estimated future cash flows 39 Accretion expense 466 Balance at June 30, 2016 $ 8,650 |
Intangibles, Net (Tables)
Intangibles, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangibles, Net | Intangibles, net consisted of the following: June 30, 2016 (in thousands) Cost Accumulated Net Amortization Trademarks $ 13,540 $ 7,843 $ 5,697 Straight-line Customer relationships 100,997 90,158 10,839 Accelerated Patents 42,780 41,367 1,413 Straight-line $ 157,317 $ 139,368 $ 17,949 December 31, 2015 (in thousands) Cost Accumulated Net Amortization Trademarks $ 13,540 $ 6,934 $ 6,606 Straight-line Customer relationships 100,737 88,564 12,173 Accelerated Patents 42,780 41,063 1,717 Straight-line $ 157,057 $ 136,561 $ 20,496 |
Schedule of Expected Future Amortization Expense Related to Intangible Assets | Expected future amortization expense related to the intangible assets is as follows: (in thousands) Remainder of 2016 $ 2,587 2017 3,393 2018 2,688 2019 1,836 2020 1,595 2021 and thereafter 5,850 $ 17,949 |
Accrued Expenses and Other Li32
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses and other liabilities are comprised of the following: (in thousands) June 30, December 31, Compensation and benefits $ 9,118 $ 10,525 Freight, distribution and operations 3,282 2,962 Accrued rebates, discounts and chargebacks 2,373 2,085 Accrued professional fees 1,272 1,493 Marketing expense 725 490 Research and development services 298 360 Other 596 587 $ 17,664 $ 18,502 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Principal Obligations Under Term Facility | The Company’s maturities of principal obligations under the Term Facility are as follows as of June 30, 2016: (in thousands) Remainder of 2016 $ 1,825 2017 3,650 2018 3,650 2019 3,650 2020 3,650 2021 and thereafter 344,925 Total debt 361,350 Unamortized debt discount (3,860 ) Unamortized debt issuance costs (5,002 ) Total 352,488 Less current portion (3,650 ) Total long-term debt $ 348,838 |
Schedule of Term Facility Financial Covenants | The financial covenants are displayed in the table below: Term Facility Financial Covenants Period Total Net Leverage Ratio Q2 2016 to Q4 2016 6.00 to 1.00 Q1 2017 to Q2 2017 5.50 to 1.00 Thereafter 5.00 to 1.00 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders' Deficit | The following table presents the changes in stockholders’ deficit for the six months ended June 30, 2016: Common Stock Accumulated Shares Amount Additional Accumulated Other Total Balance at December 31, 2015 30,364,501 $ 303 $ 175,553 $ (359,160 ) $ (1,985 ) $ (185,289 ) Net income — — — 17,673 — 17,673 Other comprehensive income — — — — 256 256 Vesting of restricted stock awards 20,936 — — — — — Stock-based compensation — — 992 — — 992 Balance at June 30, 2016 30,385,437 $ 303 $ 176,545 $ (341,487 ) $ (1,729 ) $ (166,368 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized | Stock-based compensation expense for both time based and performance based stock options and restricted stock awards were recognized in the condensed consolidated statements of operations as follows: Three Months Six Months (in thousands) 2016 2015 2016 2015 Cost of goods sold $ 73 $ 52 $ 139 $ 51 General and administrative 345 465 578 679 Sales and marketing 80 79 128 115 Research and development 87 60 147 88 Total stock-based compensation expense $ 585 $ 656 $ 992 $ 933 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Summary of Net Income (Loss) Per Share | During periods in which the Company incurs net losses, both basic and diluted loss per share is calculated by dividing the net loss by the weighted average shares outstanding and potentially dilutive securities are excluded from the calculation because their effect would be antidilutive. Three Months Ended Six Months Ended (in thousands, except share and per share amounts) 2016 2015 2016 2015 Net income (loss) $ 7,350 $ (24,423 ) $ 17,673 $ (24,048 ) Basic weighted average common shares outstanding 30,377,562 18,898,003 30,372,901 18,489,451 Effect of dilutive restricted stock awards 165,166 — 80,875 — Diluted weighted average common shares outstanding 30,542,728 18,898,003 30,453,776 18,489,451 Basic and diluted income (loss) per weighted average common share outstanding $ 0.24 $ (1.29 ) $ 0.58 $ (1.30 ) |
Other Income, net (Tables)
Other Income, net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | Three Months Six Months (in thousands) 2016 2015 2016 2015 Foreign currency gains (losses) $ 256 $ 18 $ 19 $ (360 ) Tax indemnification income 140 781 436 777 Other income (expense) — 1 (1 ) — Total other income, net $ 396 $ 800 $ 454 $ 417 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Selected Information for Each Business Segment | Selected information for each business segment are as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Revenues U.S. $ 72,244 $ 64,689 $ 143,014 $ 130,477 International 12,832 14,936 24,373 29,092 Total revenue, including inter-segment 85,076 79,625 167,387 159,569 Less inter-segment revenue (7,110 ) (6,311 ) (12,947 ) (11,432 ) $ 77,966 $ 73,314 $ 154,440 $ 148,137 Revenues from external customers U.S. $ 65,134 $ 58,378 $ 130,067 $ 119,045 International 12,832 14,936 24,373 29,092 $ 77,966 $ 73,314 $ 154,440 $ 148,137 Operating income U.S. $ 15,931 $ 3,442 $ 29,335 $ 16,121 International (1,443 ) 2,059 2,691 585 Total operating income, including inter-segment 14,488 5,501 32,026 16,706 Inter-segment operating (loss) income (309 ) (145 ) (174 ) 28 Operating income 14,179 5,356 31,852 16,734 Interest expense, net (6,978 ) (13,876 ) (13,996 ) (24,499 ) Loss on extinguishment of debt — (15,528 ) — (15,528 ) Other income, net 396 800 454 417 Income (loss) before income taxes $ 7,597 $ (23,248 ) $ 18,310 $ (22,876 ) |
Business Overview - Additional
Business Overview - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016USD ($)Item | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Number of commercial products | Item | 10 |
Number of radiopharmacies owned | Item | 3 |
Senior Secured Term Loan Facility [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Debt instrument, face amount | $ 365,000,000 |
Revolving Line of Credit [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Maximum borrowing capacity | 50,000,000 |
Borrowing base | 43,300,000 |
Unfunded standby letter of credit outstanding | 8,800,000 |
Accrued interest | 100,000 |
Available borrowing capacity | $ 34,400,000 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Significant product expenses | $ 0 | $ 0 | |
Capitalized inventories | $ 0 | $ 0 |
Fair Value of Financial Instr41
Fair Value of Financial Instruments - Schedule of the Information about the Company's Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Recurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 2,686 | $ 1,660 |
Money Market [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 2,686 | 1,586 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, restricted investments | 74 | |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,686 | 1,586 |
Quoted Prices in Active Markets (Level 1) [Member] | Money Market [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | $ 2,686 | 1,586 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 74 | |
Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, restricted investments | $ 74 |
Fair Value of Financial Instr42
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents, carrying value | $ 54,851 | $ 28,596 | $ 22,200 | $ 19,739 |
Certificates of Deposit [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments, noncurrent | 100 | |||
Money Market [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents, carrying value | $ 2,700 | $ 1,600 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Taxes And Tax Related [Line Items] | |||||
Provision for income taxes | $ 247 | $ 1,175 | $ 637 | $ 1,172 | |
Accounting Standards Update 2015-17 [Member] | |||||
Income Taxes And Tax Related [Line Items] | |||||
Noncurrent deferred tax assets | $ 100 | ||||
Noncurrent deferred tax liabilities | $ 200 |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Purchase price for asset sale | $ 9,000 | |
Working capital adjustment | 500 | |
Gain on sale of assets | $ 117 | $ 5,945 |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Assets and Liabilities Sold (Detail) - USD ($) $ in Thousands | Jan. 12, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Total current assets | $ 4,644 | |
Current Liabilities: | ||
Total liabilities held for sale | 1,715 | |
Disposal Group Held-for-sale Not Discontinued Operations [Member] | ||
Current Assets: | ||
Accounts receivable, net | $ 2,620 | 2,512 |
Inventory | 730 | 806 |
Other current assets | 15 | 26 |
Total current assets | 3,365 | 3,344 |
Non-Current Assets: | ||
Property, plant and equipment, net | 760 | 791 |
Intangibles, net | 462 | 480 |
Other long-term assets | 28 | 29 |
Total assets held for sale | 4,615 | 4,644 |
Current Liabilities: | ||
Accounts payable | 435 | 430 |
Accrued expense and other liabilities | 858 | 1,285 |
Total liabilities held for sale | $ 1,293 | $ 1,715 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory, Classified in Inventory or Other Long-term Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,062 | $ 7,506 |
Work in process | 2,712 | 2,407 |
Finished goods | 4,659 | 5,709 |
Inventory | 14,433 | 15,622 |
Other long-term assets | 1,156 | 1,156 |
Total | $ 15,589 | $ 16,778 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Non-current raw materials | $ 1.2 | $ 1.2 |
Property, Plant and Equipment48
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Accumulated depreciation | $ (70,969) | $ (67,260) |
Property, plant and equipment, net | 84,422 | 86,517 |
Land [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, gross | 14,950 | 14,950 |
Buildings [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, gross | 69,577 | 68,941 |
Machinery, Equipment and Fixtures [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, gross | 65,982 | 60,787 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, gross | $ 4,882 | $ 9,099 |
Property, Plant and Equipment49
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 2,200 | $ 2,000 | $ 4,100 | $ 7,700 | |
Property, plant and equipment, net | 84,422 | 84,422 | $ 86,517 | ||
Fixed Assets Dedicated to R&D Activities [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, net | $ 3,900 | $ 3,900 |
Asset Retirement Obligations -
Asset Retirement Obligations - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Financial assurance in form of surety bond | $ 28.2 |
Unfunded standby letter of credit | 8.8 |
Asset retirement obligation liabilities expected, present value | $ 26.7 |
Asset Retirement Obligations 51
Asset Retirement Obligations - Schedule of Reconciliation of Company's Asset Retirement Obligations (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Balance at the beginning of the period | $ 8,145 |
Net increase due to changes in estimated future cash flows | 39 |
Accretion expense | 466 |
Balance at the ending of the period | $ 8,650 |
Intangibles, Net - Schedule of
Intangibles, Net - Schedule of Intangibles, Net (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 157,317 | $ 157,057 |
Accumulated amortization | 139,368 | 136,561 |
Net | 17,949 | 20,496 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 13,540 | 13,540 |
Accumulated amortization | 7,843 | 6,934 |
Net | $ 5,697 | 6,606 |
Amortization Method | Straight-line | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 100,997 | 100,737 |
Accumulated amortization | 90,158 | 88,564 |
Net | $ 10,839 | 12,173 |
Amortization Method | Accelerated | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 42,780 | 42,780 |
Accumulated amortization | 41,367 | 41,063 |
Net | $ 1,413 | $ 1,717 |
Amortization Method | Straight-line |
Intangibles, Net - Additional I
Intangibles, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Amortization expense | $ 1.3 | $ 1.5 | $ 2.6 | $ 3 |
Intangibles, Net - Schedule o54
Intangibles, Net - Schedule of Expected Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Intangible Liability Disclosure [Abstract] | ||
Remainder of 2016 | $ 2,587 | |
2,017 | 3,393 | |
2,018 | 2,688 | |
2,019 | 1,836 | |
2,020 | 1,595 | |
2021 and thereafter | 5,850 | |
Net | $ 17,949 | $ 20,496 |
Accrued Expenses and Other Li55
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 9,118 | $ 10,525 |
Freight, distribution and operations | 3,282 | 2,962 |
Accrued rebates, discounts and chargebacks | 2,373 | 2,085 |
Accrued professional fees | 1,272 | 1,493 |
Marketing expense | 725 | 490 |
Research and development services | 298 | 360 |
Other | 596 | 587 |
Accrued expenses | $ 17,664 | $ 18,502 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||
Consolidated fixed charge coverage ratio to be maintained | 100.00% | |
Deposits to be made in case of default equaling, percentage of greatest amount of letter of credit drawn | 105.00% | |
Seven Year Term Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 365,000,000 | |
Debt instrument discount percentage | 1.25% | |
Debt instrument discount amount | $ 4,600,000 | |
Increase in aggregate amount | 37,500,000 | |
Description of variable rate basis | The term loans under the Term Facility bear interest, with pricing based from time to time at the Company's election at (i) LIBOR plus a spread of 6.00% (with a LIBOR rate floor of 1.00%) or (ii) the Base Rate (as defined in our Term Facility) plus a spread of 5.00%. | |
Interest rate at end of period | 7.00% | |
Prepayment terms | The Company is permitted to voluntarily prepay the Term Facility, in whole or in part, without premium or penalty. | |
Percentage of principal amount required to be paid quarterly | (0.25%) | |
Maturity date of term facility | Jun. 30, 2022 | |
Percentage of net cash proceeds of all non-ordinary course sales or other dispositions of assets | 100.00% | |
Percentage of net cash proceeds from issuances or incurrence of debt | 100.00% | |
Percentage of excess cash flow | 50.00% | |
Seven Year Term Facility [Member] | Interest Rate Floor [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 5.00% | |
Revolving Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 50,000,000 | |
Unfunded standby letter of credit outstanding | $ 8,800,000 | |
Letter of credit, expiration date | Feb. 28, 2017 | |
Renewal period of unfunded standby letter of credit | 1 year | |
Period required for non renewal notification of debt instrument | 60 days | |
Unfunded standby letter of credit payment term | The unfunded Standby Letter of Credit requires an annual fee, payable quarterly, which is set at LIBOR plus a spread of 2.00% and expires in February 2017. | |
Borrowing base | $ 43,300,000 | |
Available borrowing capacity | 34,400,000 | |
Accrued interest | $ 100,000 | |
Revolving Line of Credit [Member] | LMI [Member] | ||
Debt Instrument [Line Items] | ||
Description of variable rate basis | The loans under the Revolving Facility bear interest with pricing based from time to time at the election of LMI at (i) LIBOR plus a spread of 2.00% or (ii) the Reference Rate (as defined in the Revolving Facility) plus 1.00%. The Revolving Facility also includes an unused line fee of 0.375% and expires on June 30, 2020. | |
Unused line of credit fee (as a percent) | 0.375% | |
Maximum borrowing capacity | $ 50,000,000 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 400,000,000 | |
Notes interest rate | 9.75% | |
LIBOR [Member] | Seven Year Term Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 6.00% | |
LIBOR [Member] | Revolving Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.00% | |
LIBOR [Member] | Revolving Line of Credit [Member] | LMI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.00% | |
Reference Rate [Member] | Seven Year Term Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.00% | |
Reference Rate [Member] | Revolving Line of Credit [Member] | LMI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.00% |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Maturities of Principal Obligations Under Term Facility (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Less current portion | $ (3,650) | $ (3,650) |
Total long-term debt | 348,838 | $ 349,858 |
Senior Secured Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Remainder of 2016 | 1,825 | |
2,017 | 3,650 | |
2,018 | 3,650 | |
2,019 | 3,650 | |
2,020 | 3,650 | |
2021 and thereafter | 344,925 | |
Total debt | 361,350 | |
Unamortized debt discount | (3,860) | |
Unamortized debt issuance costs | (5,002) | |
Total | 352,488 | |
Total | 352,488 | |
Less current portion | (3,650) | |
Total long-term debt | $ 348,838 |
Financing Arrangements - Sche58
Financing Arrangements - Schedule of Term Facility Financial Covenants (Detail) | 6 Months Ended | 9 Months Ended | 72 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2022 | |
Senior Secured Term Loan Facility [Member] | Scenario, Forecast [Member] | |||
Debt Instrument [Line Items] | |||
Total Net Leverage Ratio | 5.50% | 6.00% | 5.00% |
Stockholder's Equity - Addition
Stockholder's Equity - Additional information (Detail) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | ||
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Voting rights per share | One vote per share |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Stockholders' Deficit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Equity [Line Items] | ||||
Beginning balance,amount | $ (185,289) | |||
Net income | $ 7,350 | $ (24,423) | 17,673 | $ (24,048) |
Other comprehensive income | 256 | |||
Stock-based compensation | 992 | |||
Ending balance,amount | (166,368) | (166,368) | ||
Common Stock [Member] | ||||
Equity [Line Items] | ||||
Beginning balance,amount | $ 303 | |||
Beginning balance,shares | 30,364,501 | |||
Vesting of restricted stock awards | 20,936 | |||
Ending balance,amount | $ 303 | $ 303 | ||
Ending balance,shares | 30,385,437 | 30,385,437 | ||
Additional Paid-In Capital [Member] | ||||
Equity [Line Items] | ||||
Beginning balance,amount | $ 175,553 | |||
Stock-based compensation | 992 | |||
Ending balance,amount | $ 176,545 | 176,545 | ||
Accumulated Deficit [Member] | ||||
Equity [Line Items] | ||||
Beginning balance,amount | (359,160) | |||
Net income | 17,673 | |||
Ending balance,amount | (341,487) | (341,487) | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Equity [Line Items] | ||||
Beginning balance,amount | (1,985) | |||
Other comprehensive income | 256 | |||
Ending balance,amount | $ (1,729) | $ (1,729) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - shares | 6 Months Ended | |
Jun. 30, 2016 | Apr. 26, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term | 10 years | |
Time Based Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
2015 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares that may be issued pursuant to awards | 4,555,277 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 585 | $ 656 | $ 992 | $ 933 |
Cost of Goods Sold [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 73 | 52 | 139 | 51 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 345 | 465 | 578 | 679 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 80 | 79 | 128 | 115 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 87 | $ 60 | $ 147 | $ 88 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 7,350 | $ (24,423) | $ 17,673 | $ (24,048) |
Basic weighted average common shares outstanding | 30,377,562 | 18,898,003 | 30,372,901 | 18,489,451 |
Effect of dilutive restricted stock awards | 165,166 | 80,875 | ||
Diluted weighted average common shares outstanding | 30,542,728 | 18,898,003 | 30,453,776 | 18,489,451 |
Basic and diluted income (loss) per weighted average common share outstanding | $ 0.24 | $ (1.29) | $ 0.58 | $ (1.30) |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stock Options [Member] | Unvested Restricted Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Weighted average number of common shares excluded from computation of earning per share | 2,183,075 | 2,153,827 | 2,183,075 | 2,153,827 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Other Income, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency gains (losses) | $ 256 | $ 18 | $ 19 | $ (360) |
Tax indemnification income | 140 | 781 | 436 | 777 |
Other income (expense) | 1 | (1) | ||
Total other income, net | $ 396 | $ 800 | $ 454 | $ 417 |
Legal Proceedings and Conting66
Legal Proceedings and Contingencies - Additional Information (Detail) | Dec. 16, 2010Lawsuits |
Claim Against Insurance Carriers to Recover Business Interruption Losses [Member] | |
Gain Contingencies [Line Items] | |
Number of suits filed | 1 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Jun. 25, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Avista [Member] | INC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Costs incurred associated with agreement | $ 300,000 | $ 500,000 | ||||
Agreement term | 3 years | |||||
Avista [Member] | INC [Member] | Accrued Expenses and Other Liabilities [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Purchases included in accrued expenses and other liabilities | 100,000 | $ 100,000 | ||||
Avista [Member] | Advisory Services and Monitoring Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Annual fee | 1,000,000 | 1,000,000 | ||||
Costs incurred associated with agreement | 0 | $ 6,800,000 | $ 0 | $ 7,000,000 | ||
Agreement term | 7 years | |||||
Aggregate termination fee paid | $ 6,500,000 | |||||
Due from parent | 0 | $ 0 | $ 0 | |||
VWR [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Purchases | 100,000 | $ 44,000 | 200,000 | $ 100,000 | ||
VWR [Member] | Accounts Payable and Accrued Expenses [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Purchases included in accrued expenses and other liabilities | $ 6,000 | $ 6,000 | $ 10,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 2 | |||
Geographic Concentration Risk [Member] | U.S. [Member] | Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 83.50% | 79.60% | 84.20% | 80.40% |
Segment Information - Schedule
Segment Information - Schedule of Selected Information for Each Business Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Revenues | $ 77,966 | $ 73,314 | $ 154,440 | $ 148,137 |
Revenues | 77,966 | 73,314 | 154,440 | 148,137 |
Operating income | ||||
Operating income | 14,179 | 5,356 | 31,852 | 16,734 |
Interest expense, net | (6,978) | (13,876) | (13,996) | (24,499) |
Loss on extinguishment of debt | (15,528) | (15,528) | ||
Other income, net | 396 | 800 | 454 | 417 |
Income (Loss) before income taxes | 7,597 | (23,248) | 18,310 | (22,876) |
U.S. [Member] | ||||
Revenues | ||||
Revenues | 65,134 | 58,378 | 130,067 | 119,045 |
Revenues | 65,134 | 58,378 | 130,067 | 119,045 |
International [Member] | ||||
Revenues | ||||
Revenues | 12,832 | 14,936 | 24,373 | 29,092 |
Revenues | 12,832 | 14,936 | 24,373 | 29,092 |
Operating Segments [Member] | ||||
Revenues | ||||
Revenues | 85,076 | 79,625 | 167,387 | 159,569 |
Revenues | 85,076 | 79,625 | 167,387 | 159,569 |
Operating income | ||||
Operating income | 14,488 | 5,501 | 32,026 | 16,706 |
Operating Segments [Member] | U.S. [Member] | ||||
Revenues | ||||
Revenues | 72,244 | 64,689 | 143,014 | 130,477 |
Revenues | 72,244 | 64,689 | 143,014 | 130,477 |
Operating income | ||||
Operating income | 15,931 | 3,442 | 29,335 | 16,121 |
Operating Segments [Member] | International [Member] | ||||
Revenues | ||||
Revenues | 12,832 | 14,936 | 24,373 | 29,092 |
Revenues | 12,832 | 14,936 | 24,373 | 29,092 |
Operating income | ||||
Operating income | (1,443) | 2,059 | 2,691 | 585 |
Inter-Segment [Member] | ||||
Revenues | ||||
Revenues | (7,110) | (6,311) | (12,947) | (11,432) |
Revenues | (7,110) | (6,311) | (12,947) | (11,432) |
Operating income | ||||
Operating income | $ (309) | $ (145) | $ (174) | $ 28 |