Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | 37,350,751 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 57,154 | $ 51,178 |
Accounts receivable, net | 43,246 | 36,818 |
Inventory | 21,151 | 17,640 |
Other current assets | 4,072 | 5,183 |
Total current assets | 125,623 | 110,819 |
Property, plant & equipment, net | 91,863 | 94,187 |
Intangibles, net | 13,456 | 15,118 |
Goodwill | 15,714 | 15,714 |
Other long-term assets | 21,222 | 20,060 |
Total assets | 267,878 | 255,898 |
Current liabilities | ||
Current portion of long-term debt | 2,750 | 3,650 |
Revolving line of credit | 0 | 0 |
Accounts payable | 17,674 | 18,940 |
Accrued expenses and other liabilities | 22,640 | 21,249 |
Total current liabilities | 43,064 | 43,839 |
Asset retirement obligations | 9,891 | 9,370 |
Long-term debt, net | 265,929 | 274,460 |
Other long-term liabilities | 36,174 | 34,745 |
Total liabilities | 355,058 | 362,414 |
Commitments and contingencies (See Note 12) | ||
Stockholders' deficit | ||
Preferred stock ($0.01 par value, 25,000 shares authorized; no shares issued and outstanding) | ||
Common stock ($0.01 par value, 250,000 shares authorized; 37,348 and 36,756 shares issued and outstanding, respectively) | 373 | 367 |
Additional paid-in capital | 228,083 | 226,462 |
Accumulated deficit | (314,665) | (332,398) |
Accumulated other comprehensive loss | (971) | (947) |
Total stockholders' deficit | (87,180) | (106,516) |
Total liabilities and stockholders' deficit | $ 267,878 | $ 255,898 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
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 | 37,348,000 | 36,756,000 |
Common stock, shares outstanding | 37,348,000 | 36,756,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 88,837 | $ 77,966 | $ 170,196 | $ 154,440 |
Cost of goods sold | 42,890 | 42,215 | 84,487 | 84,988 |
Gross profit | 45,947 | 35,751 | 85,709 | 69,452 |
Operating expenses | ||||
Sales and marketing | 11,603 | 9,843 | 21,817 | 19,150 |
General and administrative | 11,203 | 9,238 | 23,473 | 18,751 |
Research and development | 5,244 | 2,608 | 10,595 | 5,644 |
Total operating expenses | 28,050 | 21,689 | 55,885 | 43,545 |
Gain on sale of assets | (117) | (5,945) | ||
Operating income | 17,897 | 14,179 | 29,824 | 31,852 |
Interest expense | 4,285 | 6,983 | 9,705 | 14,008 |
Loss on extinguishment of debt | 2,161 | |||
Other income | (552) | (401) | (1,129) | (466) |
Income before income taxes | 14,164 | 7,597 | 19,087 | 18,310 |
Provision for income taxes | 569 | 247 | 1,354 | 637 |
Net income | $ 13,595 | $ 7,350 | $ 17,733 | $ 17,673 |
Net income per common share outstanding: | ||||
Basic | $ 0.37 | $ 0.24 | $ 0.48 | $ 0.58 |
Diluted | $ 0.35 | $ 0.24 | $ 0.46 | $ 0.58 |
Weighted-average common shares outstanding: | ||||
Basic | 37,235 | 30,378 | 37,063 | 30,373 |
Diluted | 38,900 | 30,543 | 38,726 | 30,454 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,595 | $ 7,350 | $ 17,733 | $ 17,673 |
Other comprehensive income (loss): | ||||
Foreign currency translation | (20) | (84) | (24) | 256 |
Total other comprehensive income (loss) | (20) | (84) | (24) | 256 |
Total comprehensive income | $ 13,575 | $ 7,266 | $ 17,709 | $ 17,929 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities | ||
Net income | $ 17,733 | $ 17,673 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation, amortization and accretion | 11,271 | 8,423 |
Amortization of debt related costs | 696 | 935 |
Provision for excess and obsolete inventory | 730 | 818 |
Stock-based compensation | 2,107 | 992 |
Gain on sale of assets | (5,945) | |
Loss on extinguishment of debt | 2,161 | |
Other | 781 | 118 |
Increases (decreases) in cash from operating assets and liabilities: | ||
Accounts receivable | (6,368) | (2,009) |
Inventory | (4,232) | 525 |
Other current assets | (249) | 393 |
Accounts payable | 767 | 1,474 |
Accrued expenses and other liabilities | 694 | (1,982) |
Net cash provided by operating activities | 26,091 | 21,415 |
Investing activities | ||
Proceeds from sale of assets | 1,234 | 9,000 |
Capital expenditures | (8,301) | (2,388) |
Other | 74 | |
Net cash (used in) provided by investing activities | (7,067) | 6,686 |
Financing activities | ||
Payments on long-term debt | (285,265) | (1,861) |
Proceeds from issuance of long-term debt | 274,313 | |
Proceeds from stock option exercises | 1,078 | |
Payments for minimum statutory tax withholding related to net share settlement of equity awards | (1,557) | |
Deferred financing costs | (1,576) | |
Other | (74) | (11) |
Net cash used in financing activities | (13,081) | (1,872) |
Effect of foreign exchange rates on cash and cash equivalents | 33 | 26 |
Net increase in cash and cash equivalents | 5,976 | 26,255 |
Cash and cash equivalents, beginning of period | 51,178 | 28,596 |
Cash and cash equivalents, end of period | $ 57,154 | $ 54,851 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lantheus Holdings, Inc. and its direct and indirect wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement have been included. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017 or any future period. The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8 of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities Exchange Commission (“SEC”) on February 23, 2017. Certain immaterial amounts in the prior period have been reclassified to conform to the current period financial statement presentation. Manufacturing Concentrations The Company currently relies on Jubilant HollisterStier (“JHS”) as its sole source manufacturer of DEFINITY, Neurolite, Cardiolite and evacuation vials for TechneLite. The Company currently has on-going development and technology transfer activities for its next generation DEFINITY product with Samsung BioLogics (“SBL”) located in South Korea but can give no assurances as to when those technology transfer activities will be completed and when the Company will begin to receive supply of its next generation DEFINITY product from SBL. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Collaboration and License Agreement with GE Healthcare Limited On April 25, 2017, the Company announced that it entered into a definitive, exclusive Collaboration and License Agreement (the “License Agreement”) with GE Healthcare Limited (“GE Healthcare”) for the continued Phase III development and worldwide commercialization of flurpiridaz F 18, an investigational positron emission tomography myocardial perfusion imaging agent that may improve the diagnosis of coronary artery disease. Under the License Agreement, GE Healthcare will complete the worldwide development of flurpiridaz F 18, pursue worldwide regulatory approvals and, if successful, lead a worldwide launch and commercialization of the agent, with LMI collaborating on both development and commercialization through a joint steering committee. LMI has an option to co-promote the agent in the U.S. GE Healthcare’s development plan will initially focus on obtaining regulatory approval for flurpiridaz F 18 in the U.S., Japan, Europe and Canada. Under the terms of the License Agreement, the Company received an up-front payment of $5.0 million. In addition, the Company is eligible to receive, from GE Healthcare, up to $60.0 million in regulatory and sales-based milestones and tiered double-digit royalties on U.S. sales and mid-single digit royalties on sales outside the U.S. Because the Company concluded there was only one significant deliverable under the License Agreement, consisting of the license of the product which occurred upon the signing of the License Agreement, the Company recognized approximately $5.0 million associated with entering into the license as revenue in the three and six months ended June 30, 2017. In addition, because the Company concluded that the regulatory and sales-based milestones are solely dependent on GE Healthcare’s performance and there are no continuing performance obligations from the Company, all development and sales milestones under the License Agreement are considered non-substantive. As of June 30, 2017, the Company has not recognized those milestones as revenue under the License Agreement and will recognize such revenue in the periods the milestones are achieved. Similarly, the Company will recognize royalty revenues in the periods of the sale of the related products, provided that the reported sales are reliably measureable, collectability is reasonably assured and the Company has no further performance obligations. Recent Accounting Pronouncements The following table provides a description of recent accounting pronouncements that may have a material effect on the Company’s condensed consolidated financial statements: Standard Description Effective Date Effect on the Condensed Consolidated Financial Recently Issued Accounting Standards Not Yet Adopted ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting This ASU clarifies when to account for a change to the terms or conditions of a share–based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The new guidance will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 31, 2017 for all entities. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued or made available for issuance. January 1, 2018 The Company does not expect that the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) This ASU and related amendments affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year. The standard is effective for annual reporting periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: • A full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or • A modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). January 1, 2018 The Company has established an implementation team which includes third-party specialists to assist in the evaluation and implementation of the new standard. The Company is currently in the process of performing an assessment of the impact of the standards on its contract portfolio by reviewing the Company’s current accounting policies and practices and to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts. The Company has categorized its customers into multiple customer types and assessed significant customer arrangements within those customer types. At this time, the Company does not anticipate a significant impact to its financial statements upon adoption of the new standard. However, the assessment is ongoing and further analysis of contracts may identify a more significant impact. The Company currently expects, in part due to the limited anticipated impact, it will utilize the modified retrospective approach of adopting the ASU. In addition, during 2017 the Company plans to identify and implement, if necessary, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. Accounting Standards Adopted During the Six Months Ended June 30, 2017 ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ASU 2016-09 simplifies several aspects of the stock compensation guidance in Topic 718 and other related guidance providing the following amendments: • Accounting for income taxes upon vesting or exercise of share-based payments and related EPS effects • Classification of excess tax benefits on the statement of cash flows • Accounting for forfeitures • Liability classification exception for statutory tax withholding requirements • Cash flow presentation of employee taxes paid when an employer withholds shares for tax-withholding purposes • Elimination of the indefinite deferral in Topic 718 For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. January 1, 2017 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, financial instruments are categorized based on a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: • Level 1 • Level 2 • Level 3 At June 30, 2017 and December 31, 2016, the Company’s financial assets measured at fair value on a recurring basis consist of money market funds. The Company invests excess cash from its operating cash accounts in overnight investments and reflects these amounts in cash and cash equivalents in the condensed consolidated balance sheets at fair value using quoted prices in active markets for identical assets. The table below presents information about the Company’s assets and liabilities measured at fair value on a recurring basis: Total Fair Value Level 1 Level 2 Level 3 June 30, 2017 (in thousands) Money market funds $ 5,416 $ 5,416 $ — $ — $ 5,416 $ 5,416 $ — $ — December 31, 2016 Money market funds $ 3,565 $ 3,565 $ — $ — $ 3,565 $ 3,565 $ — $ — |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
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 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 change in valuation allowance and the rate impact of uncertain tax positions. Cumulative adjustments to the tax provision are recorded in the interim period in which a change in the estimated annual effective tax rate is determined. The Company’s tax provision was $0.6 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively, and $1.4 million and $0.6 million for the six months ended June 30, 2017 and 2016, respectively. The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realizability of deferred tax assets requires significant management judgment. In determining whether its deferred tax assets are more-likely-than-not realizable, the Company evaluated all available positive and negative evidence, and weighed the objective evidence and expected impact. Evidence the Company considered included its history of net operating losses, which resulted in the Company recording a full valuation allowance against its domestic net deferred tax assets beginning in 2011, and in each year thereafter. The Company was profitable on a cumulative basis for the three-year period ended June 30, 2017, but substantially all of that profitability was achieved during 2016 and the six months ended June 30, 2017. The Company continues to evaluate other negative evidence including customer concentration and contractual risk, DEFINITY supplier risk, the risk of Moly supply availability and cost, and certain product development risks, all of which provide for uncertainties around the Company’s future level of profitability. Based on its review of all available evidence, the Company determined that it has not yet attained a sustained level of profitability sufficient to outweigh the objectively verifiable negative evidence, and has recorded a full valuation allowance against its domestic net deferred tax assets at June 30, 2017. The Company will continue to assess the level of the valuation allowance required. If a sufficient weight of positive evidence exists in future periods to support a release of some or all of the valuation allowance recorded against domestic deferred tax assets, such a release would likely have a material impact on the Company’s results of operations in that future period. In connection with the Company’s acquisition of the medical imaging business from Bristol-Myers Squibb (“BMS”) in 2008, the Company entered into 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 long-term assets. The changes in the tax indemnification asset are recognized within other income in the condensed consolidated statement of operations. In accordance with the Company’s accounting policy, the change in the contingent 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. 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. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | 5. Inventory Inventory consisted of the following: June 30, December 31, (in thousands) 2017 2016 Raw materials $ 9,261 $ 9,658 Work in process 5,932 3,965 Finished goods 5,958 4,017 Total inventory $ 21,151 $ 17,640 As of June 30, 2017 and December 31, 2016, the Company had $1.2 million of inventory classified within other long-term assets, which represent raw materials not expected to be used by the Company during the next twelve months. |
Property, Plant & Equipment, Ne
Property, Plant & Equipment, Net | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment, Net | 6. Property, Plant & Equipment, Net Property, plant & equipment, net, consisted of the following: June 30, December 31, (in thousands) 2017 2016 Land $ 14,950 $ 14,950 Buildings 70,934 70,628 Machinery, equipment and fixtures 67,135 65,407 Computer software 18,488 18,482 Construction in progress 11,603 7,224 183,110 176,691 Less: accumulated depreciation and amortization (91,247 ) (82,504 ) Total property, plant & equipment, net $ 91,863 $ 94,187 Depreciation and amortization expense related to property, plant & equipment, net, was $4.0 million and $2.8 million for the three months ended June 30, 2017 and 2016, respectively, and $9.1 million and $5.3 million for the six months ended June 30, 2017 and 2016, respectively. Property, plant & equipment dedicated to research and development (“R&D”) activities had a carrying value of $2.0 million as of June 30, 2017. The Company believes these assets will be utilized for either internally funded ongoing R&D activities or R&D activities funded by a strategic partner. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 7. Asset Retirement Obligations The Company considers its legal obligation to remediate its facilities upon a decommissioning of its radioactive-related operations as an asset retirement obligation. The Company has 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 its 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. 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, 2017, the liability is measured at the present value of the obligation expected to be incurred, of approximately $26.9 million, and is adjusted in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying values of the related long-lived assets and depreciated over the assets’ useful lives. The following table provides a summary of the changes in the Company’s asset retirement obligations: (in thousands) Amount Balance at January 1, 2017 $ 9,370 Accretion expense 521 Balance at June 30, 2017 $ 9,891 |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | 8. Financing Arrangements On March 30, 2017, the Company refinanced its previous $365.0 million seven-year term loan agreement (the facility thereunder, the “2015 Term Facility”) with a new five-year $275.0 million term loan facility (the “2017 Term Facility” and the loans thereunder, the “Term Loans”). In addition, the Company replaced its previous $50.0 million five-year asset based loan facility (the “ABL Facility”) with a new $75.0 million five-year revolving credit facility (the “2017 Revolving Facility” and, together with the 2017 Term Facility, the “2017 Facility”). The terms of the 2017 Facility are set forth in that certain Amended and Restated Credit Agreement, dated as of March 30, 2017 (the “Credit Agreement”), by and among Holdings, the Company, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent. The 2017 Term Facility was issued net of a $0.7 million discount. The Company has the right to request an increase to the 2017 Term Facility or request the establishment of one or more new incremental term loan facilities, in an aggregate principal amount of up to $75.0 million, plus additional amounts, in certain circumstances. The net proceeds of the 2017 Term Facility, together with approximately $15.3 million of cash on hand, were used to refinance in full the aggregate remaining principal amount of the loans outstanding under the 2015 Term Facility and pay related interest, transaction fees and expenses. No amounts were outstanding under the ABL Facility at that time. The Company accounted for the refinancing as both a debt extinguishment and debt modification by evaluating the refinancing on a creditor by creditor basis. The Company recorded a loss on extinguishment of debt of $2.2 million related to the write-off of unamortized debt issuance costs and incurred general and administrative expenses of $1.7 million related to third-party costs associated with the modified debt. In addition, the Company incurred and capitalized $1.6 million of new debt issuance costs related to the refinancing. 2017 Term Facility The Term Loans under the 2017 Term Facility bear interest, with pricing based from time to time at the Company’s election at (i) LIBOR plus a spread of 4.50% or (ii) the Base Rate (as defined in the Credit Agreement) plus a spread of 3.50%. Interest is payable (i) with respect to LIBOR Term Loans, at the end of each Interest Period (as defined in the Credit Agreement) and (ii) with respect to Base Rate Term Loans, at the end of each quarter. At June 30, 2017, the Company’s interest rate under the 2017 Term Facility was 5.5%. The Company is permitted to voluntarily prepay the Term Loans, in whole or in part, subject to a 1.00% prepayment premium applicable if, during the first 6 months of the 2017 Term Facility, the Company makes any prepayment of the Term Loans in connection with a repricing transaction (as defined in the Credit Agreement). The 2017 Term Facility requires the Company to make mandatory prepayments of the outstanding Term Loans in certain circumstances. The 2017 Term Facility amortizes at 1.00% per year until its June 30, 2022 maturity date. The Company’s maturities of principal obligations under the 2017 Term Facility are as follows as of June 30, 2017: (in thousands) Amount Remainder of 2017 $ 1,375 2018 2,750 2019 2,750 2020 2,750 2021 2,750 2022 261,937 Total principal outstanding 274,312 Unamortized debt discount (2,392 ) Unamortized debt issuance costs (3,241 ) Total 268,679 Less: current portion (2,750 ) Total long-term debt $ 265,929 2017 Revolving Facility Under the terms of the 2017 Revolving Facility, the lenders thereunder agreed to extend credit to the Company from time to time until March 30, 2022 (the “Revolving Termination Date”) consisting of revolving loans (the “Revolving Loans” and, together with the Term Loans, the “Loans”) in an aggregate principal amount not to exceed $75.0 million (the “Revolving Commitment”) at any time outstanding. The 2017 Revolving Facility includes a $20.0 million sub-facility for the issuance of letters of credit (the “Letters of Credit”). The Letters of Credit and the borrowings under the 2017 Revolving Facility are expected to be used for working capital and other general corporate purposes. The Revolving Loans under the 2017 Revolving Facility bear interest, with pricing based from time to time at the Company’s election at (i) LIBOR plus a spread of 3.50% or (ii) the Base Rate (as defined in the Credit Agreement) plus a spread of 2.50%. The 2017 Revolving Facility also includes an unused line fee, which is set at 0.375% while the Company’s secured leverage ratio (as defined in the Credit Agreement) is greater than 3.00 to 1.00 and 0.25% when the Company’s secured leverage ratio is less than or equal to 3.00 to 1.00. The Company is permitted to voluntarily prepay the Revolving Loans, in whole or in part, or reduce or terminate the Revolving Commitment, in each case, without premium or penalty. On any business day on which the total amount of outstanding Revolving Loans and Letters of Credit exceeds the total Revolving Commitment, the Company must prepay the Revolving Loans in an amount equal to such excess. As of June 30, 2017, there were no outstanding borrowings under the 2017 Revolving Facility. 2017 Facility Covenants The 2017 Facility contains a number of affirmative, negative, reporting and financial covenants, in each case subject to certain exceptions and materiality thresholds. The 2017 Facility requires the Company to be in quarterly compliance, measured on a trailing four quarter basis, with a financial covenant. The maximum consolidated leverage ratio permitted by the financial covenant is displayed in the table below: 2017 Facility Financial Covenant Period Consolidated Leverage Ratio Q2 2017 through Q1 2018 5.00 to 1.00 Q2 2018 through Q1 2019 4.75 to 1.00 Thereafter 4.50 to 1.00 The 2017 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. Upon an event of default, the administrative agent under the Credit Agreement will have the right to declare the Loans and other obligations outstanding immediately due and payable and all commitments immediately terminated or reduced. The 2017 Facility is guaranteed by Holdings and Lantheus MI Real Estate, LLC (“LMI-RE”), and obligations under the 2017 Facility are generally secured by first priority liens over substantially all of the assets of each of LMI, Holdings and LMI-RE (subject to customary exclusions set forth in the transaction documents) owned as of March 30, 2017 or thereafter acquired. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation The following table presents stock-based compensation expense recognized in the Company’s accompanying condensed consolidated statements of operations: Three Months Ended Six Months June 30, June 30, (in thousands) 2017 2016 2017 2016 Cost of goods sold $ 177 $ 73 $ 316 $ 139 Sales and marketing 167 80 291 128 General and administrative 675 345 1,226 578 Research and development 143 87 274 147 Total stock-based compensation expense $ 1,162 $ 585 $ 2,107 $ 992 Increase in Shares Reserved Under the 2015 Equity Incentive Plan At the Company’s annual meeting of stockholders, held on April 27, 2017 (the “Annual Meeting”), the Company’s stockholders approved an amendment to the 2015 Equity Incentive Plan to increase the number of shares of common stock reserved for issuance thereunder by 1,200,000 shares, to an aggregate of 5,755,277 shares. Employee Stock Purchase Plan At the Annual Meeting, the Company’s stockholders also approved the 2017 Employee Stock Purchase Plan (“2017 ESPP”), which authorized the issuance of up to 250,000 shares of common stock thereunder. Under the terms of the 2017 ESPP, eligible U.S. employees can elect to acquire shares of the Company’s common stock through periodic payroll deductions during a series of six-month offering periods, which will generally begin in March and September of each year. The purchases under the 2017 ESPP will be effected on the last business day of the each offering period at a 15% discount to the closing price on that day. The 2017 ESPP was implemented, subject to stockholder approval, on March 10, 2017, and the first purchases thereunder will be on September 13, 2017. During the three and six months ended June 30, 2017, participant contributions made through payroll deductions toward the future purchase of shares under the plan were not material. |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | 10. Net Income Per Common Share Basic net income per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income 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 June 30, June 30, (in thousands, except per share amounts) 2017 2016 2017 2016 Net income $ 13,595 $ 7,350 $ 17,733 $ 17,673 Basic weighted-average common shares outstanding 37,235 30,378 37,063 30,373 Effect of dilutive stock options 324 165 347 81 Effect of dilutive restricted stock awards 1,341 — 1,316 — Diluted weighted-average common shares outstanding 38,900 30,543 38,726 30,454 Basic income per common share outstanding $ 0.37 $ 0.24 $ 0.48 $ 0.58 Diluted income per common share outstanding $ 0.35 $ 0.24 $ 0.46 $ 0.58 Antidilutive securities excluded from diluted income per common share Stock options and nonvested restricted stock 339 2,183 379 2,183 |
Other Income
Other Income | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income | 11. Other Income Other income consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Foreign currency gains $ 55 $ 256 $ 140 $ 19 Tax indemnification income 490 140 980 436 Other income 7 5 9 11 Total other income $ 552 $ 401 $ 1,129 $ 466 |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Contingencies | 12. 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, 2017, the Company has no material ongoing litigation in which the Company was a party 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. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions The Company’s largest stockholder, Avista Capital Partners, L.P. and its affiliates (“Avista”), has an ownership interest in certain of the Company’s vendors. Related party expenses consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (in thousands) Transaction Type 2017 2016 2017 2016 Avista Offering costs paid on behalf of Avista pursuant to registration rights agreement $ 177 $ — $ 326 $ — INC Research Holdings, Inc. (“INC”)* Pharmacovigilance services — 332 — 456 VWR Scientific Inventory supplies 89 86 297 189 Total related party expenses $ 266 $ 418 $ 623 $ 645 * During the year ended December 31, 2016, Avista’s relationship with INC changed and Avista was no longer considered a principal owner of that Company. Related party expenses included in this table represent expenses incurred during the period under which the Company and INC were under common ownership by Avista. Amounts billed and unbilled for related parties included in accounts payable and accrued expenses are immaterial at both June 30, 2017 and December 31, 2016. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 14. 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 manufacture, marketing, selling and distribution of medical imaging products, focused primarily on cardiovascular diagnostic imaging. All goodwill has been allocated to the U.S. operating segment. The Company does not identify or allocate assets to its segments. Selected information for each operating segment is as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Revenues from external customers U.S. $ 78,100 $ 65,134 $ 149,127 $ 130,067 International 10,737 12,832 21,069 24,373 Total revenues from external customers $ 88,837 $ 77,966 $ 170,196 $ 154,440 Operating income U.S. $ 16,895 $ 12,895 $ 28,063 $ 24,293 International 1,002 1,284 1,761 7,559 Operating income 17,897 14,179 29,824 31,852 Interest expense 4,285 6,983 9,705 14,008 Loss on extinguishment of debt — — 2,161 — Other income (552 ) (401 ) (1,129 ) (466 ) Income before income taxes $ 14,164 $ 7,597 $ 19,087 $ 18,310 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lantheus Holdings, Inc. and its direct and indirect wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement have been included. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017 or any future period. The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8 of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities Exchange Commission (“SEC”) on February 23, 2017. Certain immaterial amounts in the prior period have been reclassified to conform to the current period financial statement presentation. Manufacturing Concentrations The Company currently relies on Jubilant HollisterStier (“JHS”) as its sole source manufacturer of DEFINITY, Neurolite, Cardiolite and evacuation vials for TechneLite. The Company currently has on-going development and technology transfer activities for its next generation DEFINITY product with Samsung BioLogics (“SBL”) located in South Korea but can give no assurances as to when those technology transfer activities will be completed and when the Company will begin to receive supply of its next generation DEFINITY product from SBL. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following table provides a description of recent accounting pronouncements that may have a material effect on the Company’s condensed consolidated financial statements: Standard Description Effective Date Effect on the Condensed Consolidated Financial Recently Issued Accounting Standards Not Yet Adopted ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting This ASU clarifies when to account for a change to the terms or conditions of a share–based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The new guidance will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 31, 2017 for all entities. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued or made available for issuance. January 1, 2018 The Company does not expect that the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) This ASU and related amendments affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year. The standard is effective for annual reporting periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: • A full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or • A modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). January 1, 2018 The Company has established an implementation team which includes third-party specialists to assist in the evaluation and implementation of the new standard. The Company is currently in the process of performing an assessment of the impact of the standards on its contract portfolio by reviewing the Company’s current accounting policies and practices and to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts. The Company has categorized its customers into multiple customer types and assessed significant customer arrangements within those customer types. At this time, the Company does not anticipate a significant impact to its financial statements upon adoption of the new standard. However, the assessment is ongoing and further analysis of contracts may identify a more significant impact. The Company currently expects, in part due to the limited anticipated impact, it will utilize the modified retrospective approach of adopting the ASU. In addition, during 2017 the Company plans to identify and implement, if necessary, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. Accounting Standards Adopted During the Six Months Ended June 30, 2017 ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ASU 2016-09 simplifies several aspects of the stock compensation guidance in Topic 718 and other related guidance providing the following amendments: • Accounting for income taxes upon vesting or exercise of share-based payments and related EPS effects • Classification of excess tax benefits on the statement of cash flows • Accounting for forfeitures • Liability classification exception for statutory tax withholding requirements • Cash flow presentation of employee taxes paid when an employer withholds shares for tax-withholding purposes • Elimination of the indefinite deferral in Topic 718 For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. January 1, 2017 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Information about the Company's Assets and Liabilities Measured at Fair Value on a Recurring Basis | The table below presents information about the Company’s assets and liabilities measured at fair value on a recurring basis: Total Fair Value Level 1 Level 2 Level 3 June 30, 2017 (in thousands) Money market funds $ 5,416 $ 5,416 $ — $ — $ 5,416 $ 5,416 $ — $ — December 31, 2016 Money market funds $ 3,565 $ 3,565 $ — $ — $ 3,565 $ 3,565 $ — $ — |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following: June 30, December 31, (in thousands) 2017 2016 Raw materials $ 9,261 $ 9,658 Work in process 5,932 3,965 Finished goods 5,958 4,017 Total inventory $ 21,151 $ 17,640 |
Property, Plant & Equipment, 24
Property, Plant & Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant & Equipment, Net | Property, plant & equipment, net, consisted of the following: June 30, December 31, (in thousands) 2017 2016 Land $ 14,950 $ 14,950 Buildings 70,934 70,628 Machinery, equipment and fixtures 67,135 65,407 Computer software 18,488 18,482 Construction in progress 11,603 7,224 183,110 176,691 Less: accumulated depreciation and amortization (91,247 ) (82,504 ) Total property, plant & equipment, net $ 91,863 $ 94,187 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of Changes in Company's Asset Retirement Obligations | The following table provides a summary of the changes in the Company’s asset retirement obligations: (in thousands) Amount Balance at January 1, 2017 $ 9,370 Accretion expense 521 Balance at June 30, 2017 $ 9,891 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Principal Obligations Under New Term Facility | The Company’s maturities of principal obligations under the 2017 Term Facility are as follows as of June 30, 2017: (in thousands) Amount Remainder of 2017 $ 1,375 2018 2,750 2019 2,750 2020 2,750 2021 2,750 2022 261,937 Total principal outstanding 274,312 Unamortized debt discount (2,392 ) Unamortized debt issuance costs (3,241 ) Total 268,679 Less: current portion (2,750 ) Total long-term debt $ 265,929 |
Schedule of Term Facility Financial Covenant | The maximum consolidated leverage ratio permitted by the financial covenant is displayed in the table below: 2017 Facility Financial Covenant Period Consolidated Leverage Ratio Q2 2017 through Q1 2018 5.00 to 1.00 Q2 2018 through Q1 2019 4.75 to 1.00 Thereafter 4.50 to 1.00 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized | The following table presents stock-based compensation expense recognized in the Company’s accompanying condensed consolidated statements of operations: Three Months Ended Six Months June 30, June 30, (in thousands) 2017 2016 2017 2016 Cost of goods sold $ 177 $ 73 $ 316 $ 139 Sales and marketing 167 80 291 128 General and administrative 675 345 1,226 578 Research and development 143 87 274 147 Total stock-based compensation expense $ 1,162 $ 585 $ 2,107 $ 992 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Net Income Per Common 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 June 30, June 30, (in thousands, except per share amounts) 2017 2016 2017 2016 Net income $ 13,595 $ 7,350 $ 17,733 $ 17,673 Basic weighted-average common shares outstanding 37,235 30,378 37,063 30,373 Effect of dilutive stock options 324 165 347 81 Effect of dilutive restricted stock awards 1,341 — 1,316 — Diluted weighted-average common shares outstanding 38,900 30,543 38,726 30,454 Basic income per common share outstanding $ 0.37 $ 0.24 $ 0.48 $ 0.58 Diluted income per common share outstanding $ 0.35 $ 0.24 $ 0.46 $ 0.58 Antidilutive securities excluded from diluted income per common share Stock options and nonvested restricted stock 339 2,183 379 2,183 |
Other Income (Tables)
Other Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income | Other income consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Foreign currency gains $ 55 $ 256 $ 140 $ 19 Tax indemnification income 490 140 980 436 Other income 7 5 9 11 Total other income $ 552 $ 401 $ 1,129 $ 466 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Expenses | Related party expenses consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (in thousands) Transaction Type 2017 2016 2017 2016 Avista Offering costs paid on behalf of Avista pursuant to registration rights agreement $ 177 $ — $ 326 $ — INC Research Holdings, Inc. (“INC”)* Pharmacovigilance services — 332 — 456 VWR Scientific Inventory supplies 89 86 297 189 Total related party expenses $ 266 $ 418 $ 623 $ 645 * During the year ended December 31, 2016, Avista’s relationship with INC changed and Avista was no longer considered a principal owner of that Company. Related party expenses included in this table represent expenses incurred during the period under which the Company and INC were under common ownership by Avista. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Selected Information for Each Business Segment | Selected information for each operating segment is as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Revenues from external customers U.S. $ 78,100 $ 65,134 $ 149,127 $ 130,067 International 10,737 12,832 21,069 24,373 Total revenues from external customers $ 88,837 $ 77,966 $ 170,196 $ 154,440 Operating income U.S. $ 16,895 $ 12,895 $ 28,063 $ 24,293 International 1,002 1,284 1,761 7,559 Operating income 17,897 14,179 29,824 31,852 Interest expense 4,285 6,983 9,705 14,008 Loss on extinguishment of debt — — 2,161 — Other income (552 ) (401 ) (1,129 ) (466 ) Income before income taxes $ 14,164 $ 7,597 $ 19,087 $ 18,310 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Additional Information (Detail) - Collaboration and License Agreement [Member] - GE Healthcare Limited [Member] - USD ($) | Apr. 25, 2017 | Jun. 30, 2017 | Jun. 30, 2017 |
Schedule Of Accounting Policies [Line Items] | |||
Upfront cash payment received | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 |
Milestone revenues expected upon achievement of milestones | $ 60,000,000 | ||
Milestone revenues recognized under license agreement | $ 0 |
Fair Value of Financial Instr33
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, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 5,416 | $ 3,565 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 5,416 | 3,565 |
(Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 5,416 | 3,565 |
(Level 1) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | $ 5,416 | $ 3,565 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 569 | $ 247 | $ 1,354 | $ 637 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 9,261 | $ 9,658 |
Work in process | 5,932 | 3,965 |
Finished goods | 5,958 | 4,017 |
Total inventory | $ 21,151 | $ 17,640 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other Long-Term Assets [Member] | ||
Inventory [Line Items] | ||
Raw materials | $ 1.2 | $ 1.2 |
Property, Plant & Equipment, 37
Property, Plant & Equipment, Net - Schedule of Property, Plant & Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | $ 183,110 | $ 176,691 |
Less: accumulated depreciation and amortization | (91,247) | (82,504) |
Total property, plant & equipment, net | 91,863 | 94,187 |
Land [Member] | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | 14,950 | 14,950 |
Buildings [Member] | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | 70,934 | 70,628 |
Machinery, Equipment and Fixtures [Member] | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | 67,135 | 65,407 |
Computer Software [Member] | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | 18,488 | 18,482 |
Construction in Progress [Member] | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | $ 11,603 | $ 7,224 |
Property, Plant & Equipment, 38
Property, Plant & Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant & Equipment [Line Items] | |||||
Property, plant and equipment, net | $ 91,863 | $ 91,863 | $ 94,187 | ||
Property, Plant and Equipment [Member] | |||||
Property, Plant & Equipment [Line Items] | |||||
Depreciation and amortization | 4,000 | $ 2,800 | 9,100 | $ 5,300 | |
Property, Plant and Equipment Dedicated to R&D Activities [Member] | |||||
Property, Plant & Equipment [Line Items] | |||||
Property, plant and equipment, net | $ 2,000 | $ 2,000 |
Asset Retirement Obligations -
Asset Retirement Obligations - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Financial assurance in form of surety bond | $ 28.2 |
Asset retirement obligation liabilities expected, present value | $ 26.9 |
Asset Retirement Obligations 40
Asset Retirement Obligations - Summary of Changes in Company's Asset Retirement Obligations (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Balance at the beginning of the period | $ 9,370 |
Accretion expense | 521 |
Balance at the ending of the period | $ 9,891 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) - USD ($) | Mar. 30, 2017 | Jun. 30, 2017 |
Debt Instrument [Line Items] | ||
Loss on extinguishment of debt | $ 2,200,000 | $ 2,161,000 |
Third-party costs associated with modified debt | 1,700,000 | |
Capitalized debt issuance costs | 1,600,000 | |
2015 Term Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 365,000,000 | |
Cash paid during the execution of refinancing | 15,300,000 | |
Amount outstanding | 0 | |
2017 Term Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 275,000,000 | |
Debt instrument discount amount | 700,000 | |
Increase in aggregate principle amount | 75,000,000 | |
Amount outstanding | $ 274,312,000 | |
Description of variable rate basis | The Term Loans under the New Term Facility bear interest, with pricing based from time to time at the Company’s election at (i) LIBOR plus a spread of 4.50% or (ii) the Base Rate (as defined in the Credit Agreement) plus a spread of 3.50%. Interest under term loans based on (i) the LIBOR rate is payable at the end of each Interest Period (as defined in the Credit Agreement) and (ii) the Base Rate is payable at the end of each quarter. At March 31, 2017, the Company’s interest rate under the Term Facility was 5.5%. | |
Interest rate at end of period | 5.50% | |
Term Loans, Payment terms | The Company is permitted to voluntarily prepay the Term Loans, in whole or in part, subject to a 1.00% prepayment premium applicable if, during the first 6 months of the 2017 Term Facility, the Company makes any prepayment of the Term Loans in connection with a repricing transaction (as defined in the Credit Agreement). | |
Prepayment premium percentage on prepayment of Term Loans | 1.00% | |
Amortization as a percentage | 1.00% | |
Maturity date of term facility | Jun. 30, 2022 | |
Asset Based Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 50,000,000 | |
2017 Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 75,000,000 | $ 75,000,000 |
Description of variable rate basis | The Revolving Loans under the 2017 Revolving Facility bear interest, with pricing based from time to time at the Company's election at (i) LIBOR plus a spread of 3.50% or (ii) the Base Rate (as defined in the Credit Agreement) plus a spread of 2.50%. | |
Maturity date of term facility | Mar. 30, 2022 | |
Outstanding borrowing | $ 0 | |
2017 Revolving Facility [Member] | Leverage Ratio Greater Than 3.00 to 1.00 [Member] | ||
Debt Instrument [Line Items] | ||
Unused line of credit fee (as a percent) | 0.375% | |
2017 Revolving Facility [Member] | Leverage Ratio Less Than or Equal to 3.00 to 1.00 [Member] | ||
Debt Instrument [Line Items] | ||
Unused line of credit fee (as a percent) | 0.25% | |
Letter of Credit [Member] | 2017 Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 20,000,000 | |
LIBOR [Member] | 2017 Term Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 4.50% | |
LIBOR [Member] | 2017 Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.50% | |
Reference Rate [Member] | 2017 Term Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.50% | |
Reference Rate [Member] | 2017 Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.50% |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Maturities of Principal Obligations Under New Term Facility (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Less: current portion | $ (2,750) | $ (3,650) |
Total long-term debt | 265,929 | $ 274,460 |
2017 Term Facility [Member] | ||
Debt Instrument [Line Items] | ||
Remainder of 2017 | 1,375 | |
2,018 | 2,750 | |
2,019 | 2,750 | |
2,020 | 2,750 | |
2,021 | 2,750 | |
2,022 | 261,937 | |
Total principal outstanding | 274,312 | |
Unamortized debt discount | (2,392) | |
Unamortized debt issuance costs | (3,241) | |
Total | 268,679 | |
Total | 268,679 | |
Less: current portion | (2,750) | |
Total long-term debt | $ 265,929 |
Financing Arrangements - Sche43
Financing Arrangements - Schedule of Term Facility Financial Covenant (Detail) | 12 Months Ended | 39 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2022 | |
2017 Facility [Member] | Scenario, Forecast [Member] | |||
Debt Instrument [Line Items] | |||
Total Net Leverage Ratio | 4.75% | 5.00% | 4.50% |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 1,162 | $ 585 | $ 2,107 | $ 992 |
Cost of Goods Sold [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 177 | 73 | 316 | 139 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 167 | 80 | 291 | 128 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 675 | 345 | 1,226 | 578 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 143 | $ 87 | $ 274 | $ 147 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | Apr. 27, 2017shares |
2015 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, additional shares authorized | 1,200,000 |
Share based compensation, shares authorized | 5,755,277 |
2017 Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, shares authorized | 250,000 |
Percentage of discount on closing price | 15.00% |
Employee Stock Purchase Plan, date of implementation | Mar. 10, 2017 |
Employee Stock Purchase Plan, date of first purchase | Sep. 13, 2017 |
Net Income Per Common Share - S
Net Income Per Common Share - Summary of Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Line Items] | ||||
Net income | $ 13,595 | $ 7,350 | $ 17,733 | $ 17,673 |
Basic weighted-average common shares outstanding | 37,235 | 30,378 | 37,063 | 30,373 |
Effect of dilutive stock options | 324 | 165 | 347 | 81 |
Effect of dilutive restricted stock awards | 1,341 | 1,316 | ||
Diluted weighted-average common shares outstanding | 38,900 | 30,543 | 38,726 | 30,454 |
Basic income per common share outstanding | $ 0.37 | $ 0.24 | $ 0.48 | $ 0.58 |
Diluted income per common share outstanding | $ 0.35 | $ 0.24 | $ 0.46 | $ 0.58 |
Stock Options [Member] | Nonvested Restricted Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Stock options and nonvested restricted stock | 339 | 2,183 | 379 | 2,183 |
Other Income - Schedule of Othe
Other Income - Schedule of Other Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency gains | $ 55 | $ 256 | $ 140 | $ 19 |
Tax indemnification income | 490 | 140 | 980 | 436 |
Other income | 7 | 5 | 9 | 11 |
Total other income | $ 552 | $ 401 | $ 1,129 | $ 466 |
Related Party Transactions - Su
Related Party Transactions - Summary of Related Party Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Total related party expenses | $ 266 | $ 418 | $ 623 | $ 645 |
Pharmacovigilance Services [Member] | INC Research Holdings, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total related party expenses | 332 | 456 | ||
Avista [Member] | Offering Costs Paid Pursuant to Registration Rights Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total related party expenses | 177 | 326 | ||
VWR Scientific [Member] | Inventory Supplies [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total related party expenses | $ 89 | $ 86 | $ 297 | $ 189 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Selected Information for Each Business Segment (Detail) - USD ($) $ in Thousands | Mar. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 88,837 | $ 77,966 | $ 170,196 | $ 154,440 | |
Operating income | |||||
Operating income | 17,897 | 14,179 | 29,824 | 31,852 | |
Interest expense | 4,285 | 6,983 | 9,705 | 14,008 | |
Loss on extinguishment of debt | $ 2,200 | 2,161 | |||
Other income | (552) | (401) | (1,129) | (466) | |
Income before income taxes | 14,164 | 7,597 | 19,087 | 18,310 | |
Operating Segments [Member] | U.S. [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 78,100 | 65,134 | 149,127 | 130,067 | |
Operating income | |||||
Operating income | 16,895 | 12,895 | 28,063 | 24,293 | |
Operating Segments [Member] | International [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 10,737 | 12,832 | 21,069 | 24,373 | |
Operating income | |||||
Operating income | $ 1,002 | $ 1,284 | $ 1,761 | $ 7,559 |