Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 26, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | Accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding (in shares) | 38,464,976 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 104,584,000 | $ 76,290,000 |
Accounts receivable, net | 47,135,000 | 40,259,000 |
Inventory | 34,572,000 | 26,080,000 |
Other current assets | 4,669,000 | 5,221,000 |
Total current assets | 190,960,000 | 147,850,000 |
Property, plant & equipment, net | 99,407,000 | 92,999,000 |
Intangibles, net | 9,727,000 | 11,798,000 |
Goodwill | 15,714,000 | 15,714,000 |
Deferred tax assets, net | 79,358,000 | 87,010,000 |
Other long-term assets | 29,652,000 | 28,487,000 |
Total assets | 424,818,000 | 383,858,000 |
Current liabilities | ||
Current portion of long-term debt | 2,750,000 | 2,750,000 |
Revolving line of credit | 0 | 0 |
Accounts payable | 20,363,000 | 17,464,000 |
Accrued expenses and other liabilities | 31,464,000 | 26,536,000 |
Total current liabilities | 54,577,000 | 46,750,000 |
Asset retirement obligations | 11,282,000 | 10,412,000 |
Long-term debt, net | 264,130,000 | 265,393,000 |
Other long-term liabilities | 39,321,000 | 38,012,000 |
Total liabilities | 369,310,000 | 360,567,000 |
Commitments and contingencies (See Note 13) | ||
Stockholders’ equity | ||
Preferred stock ($0.01 par value, 25,000 shares authorized; no shares issued and outstanding) | 0 | 0 |
Common stock ($0.01 par value, 250,000 shares authorized; 38,463 and 37,765 shares issued and outstanding, respectively) | 385,000 | 378,000 |
Additional paid-in capital | 237,587,000 | 232,960,000 |
Accumulated deficit | (181,432,000) | (209,013,000) |
Accumulated other comprehensive loss | (1,032,000) | (1,034,000) |
Total stockholders’ equity | 55,508,000 | 23,291,000 |
Total liabilities and stockholders’ equity | $ 424,818,000 | $ 383,858,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000 | 25,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 38,463,000 | 37,765,000 |
Common stock, shares outstanding (in shares) | 38,463,000 | 37,765,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 88,900 | $ 79,941 | $ 257,103 | $ 250,137 |
Cost of goods sold | 44,015 | 41,414 | 126,063 | 125,901 |
Gross profit | 44,885 | 38,527 | 131,040 | 124,236 |
Operating expenses | ||||
Sales and marketing | 10,478 | 10,075 | 33,248 | 31,892 |
General and administrative | 13,609 | 12,076 | 37,727 | 35,549 |
Research and development | 4,316 | 3,554 | 12,520 | 14,149 |
Total operating expenses | 28,403 | 25,705 | 83,495 | 81,590 |
Operating income | 16,482 | 12,822 | 47,545 | 42,646 |
Interest expense | 4,446 | 4,442 | 12,794 | 14,147 |
Loss on extinguishment of debt | 0 | 0 | 0 | 2,161 |
Other income | (799) | (908) | (2,055) | (2,037) |
Income before income taxes | 12,835 | 9,288 | 36,806 | 28,375 |
Income tax expense | 3,566 | 762 | 9,581 | 2,116 |
Net income | $ 9,269 | $ 8,526 | $ 27,225 | $ 26,259 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.24 | $ 0.23 | $ 0.71 | $ 0.71 |
Diluted (in dollars per share) | $ 0.24 | $ 0.22 | $ 0.69 | $ 0.67 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 38,342 | 37,393 | 38,155 | 37,174 |
Diluted (in shares) | 39,402 | 39,121 | 39,467 | 38,971 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 9,269 | $ 8,526 | $ 27,225 | $ 26,259 |
Other comprehensive (loss) income: | ||||
Foreign currency translation | (2) | (115) | 2 | (139) |
Total other comprehensive (loss) income | (2) | (115) | 2 | (139) |
Comprehensive income | $ 9,267 | $ 8,411 | $ 27,227 | $ 26,120 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities | ||
Net income | $ 27,225 | $ 26,259 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation, amortization and accretion | 10,544 | 15,019 |
Amortization of debt related costs | 959 | 1,031 |
Provision for bad debt | 288 | 2 |
Provision for excess and obsolete inventory | 2,470 | 1,002 |
Stock-based compensation | 6,419 | 3,764 |
Loss on extinguishment of debt and debt retirement costs | 0 | 2,161 |
Deferred taxes | 7,220 | 0 |
Long-term income tax receivable | (2,220) | (1,345) |
Long-term income tax payable and other long-term liabilities | 2,397 | 2,120 |
Other | 1,001 | 627 |
Increases (decreases) in cash from operating assets and liabilities: | ||
Accounts receivable | (7,205) | (4,609) |
Inventory | (9,832) | (6,361) |
Other current assets | (49) | 54 |
Accounts payable | 2,200 | (270) |
Accrued expenses and other liabilities | 2,470 | 2,237 |
Net cash provided by operating activities | 43,887 | 41,691 |
Investing activities | ||
Capital expenditures | (12,766) | (11,589) |
Proceeds from sales of assets | 1,000 | 1,234 |
Net cash used in investing activities | (11,766) | (10,355) |
Financing activities | ||
Proceeds from issuance of long-term debt | 0 | 274,313 |
Payments on long-term debt | (2,146) | (285,979) |
Deferred financing costs | 0 | (1,576) |
Payments for public offering costs | 0 | (74) |
Proceeds from stock option exercises | 1,152 | 1,210 |
Proceeds from issuance of common stock | 428 | 187 |
Payments for minimum statutory tax withholding related to net share settlement of equity awards | (3,168) | (2,681) |
Net cash used in financing activities | (3,734) | (14,600) |
Effect of foreign exchange rates on cash and cash equivalents | (93) | 163 |
Net increase in cash and cash equivalents | 28,294 | 16,899 |
Cash and cash equivalents, beginning of period | 76,290 | 51,178 |
Cash and cash equivalents, end of period | $ 104,584 | $ 68,077 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note Regarding Company References and Trademarks Unless the context otherwise requires, references to the “Company” and “Lantheus” refer to Lantheus Holdings, Inc. and its direct and indirect wholly-owned subsidiaries, references to “Holdings” refer to Lantheus Holdings, Inc. and not to any of its subsidiaries, and references to “LMI” refer to Lantheus Medical Imaging, Inc., the direct subsidiary of Holdings. Solely for convenience, the Company refers to trademarks, service marks and trade names without the ™, SM and ® symbols. Those references are not intended to indicate, in any way, that the Company will not assert, to the fullest extent permitted under applicable law, its rights to its trademarks, service marks and trade names. 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 notes 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 nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 or any future period. The condensed consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes 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, 2017 filed with the Securities Exchange Commission (“SEC”) on February 26, 2018. Certain immaterial amounts in the prior period condensed consolidated statement of cash flows have been reclassified to conform to the current period financial statement presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 for Company Effect on the Condensed Consolidated Financial Statements Recently Issued Accounting Standards Not Yet Adopted ASU 2016-02, Leases (Topic 842) This ASU supersedes existing guidance on accounting for leases in “Leases (Topic 840)” and generally requires all leases to be recognized on the balance sheet. The provisions of ASU 2016-02 are effective for annual reporting periods beginning after December 15, 2018; early adoption is permitted. In July 2018, an amendment was made that allows companies the option of using the effective date of the new standard as the initial application date (at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period). January 1, 2019 The Company is currently in the process of performing an assessment on the impact of the standard, including optional practical expedients and transition methods that the Company may elect upon adoption and is progressing with an implementation plan. The implementation plan includes identifying the Company’s lease population, assessing significant leases under the new guidance and identifying changes to processes and controls. The Company is more than halfway through its assessment and implementation plan. At this time, the Company does not anticipate a significant impact to its balance sheet upon adoption of this standard. The Company, in part due to the limited anticipated impact, plans to utilize the prospective approach of adopting the standard. Standard Description Effective Date for Company Effect on the Condensed Consolidated Financial Statements Accounting Standards Adopted During the Nine Months Ended September 30, 2018 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, vesting conditions or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. January 1, 2018 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and related amendments 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. January 1, 2018 See Note 3, "Revenue from Contracts with Customers" for the required disclosures related to the impact of adopting this standard. The adoption of this standard did not have a material impact on the Company’s condensed consolidated balance sheets and statements of operations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Adoption of ASC Topic 606, “Revenue from Contracts with Customers” The Company adopted ASC 606 on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared under the guidance of ASC 605, Revenue Recognition (“ASC 605”). For the Company’s accounting policy for revenue recognition under ASC 605, refer to Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2017. The adoption of ASC 606 did not have a material impact on the Company’s consolidated balance sheet, results of operations, equity or cash flows as of the adoption date or for the periods presented. Revenue Recognition In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services. To achieve this core principle, the Company applies the following five steps: (1) identify the contracts with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. Disaggregation of Revenue The following table summarizes revenue by revenue source and reportable segment as follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Major Products/Service Lines (in thousands) U.S. International Total U.S. International Total Product revenue, net (1) $ 70,255 $ 18,069 $ 88,324 $ 215,829 $ 39,567 $ 255,396 License and royalty revenues — 576 576 — 1,707 1,707 Total revenues $ 70,255 $ 18,645 $ 88,900 $ 215,829 $ 41,274 $ 257,103 ________________________________ (1) The Company’s principal products include DEFINITY, TechneLite and Xenon and are categorized within product revenue, net. The Company applies the same revenue recognition policies and judgments for all of its principal products. Product Revenue, Net The Company sells its products principally to distributors, radiopharmacies and directly to hospitals and clinics. The Company considers customer purchase orders, which in some cases are governed by master sales or group purchasing organization agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company typically invoices customers upon satisfaction of identified performance obligations. As the Company’s standard payment terms are 30 to 60 days from invoicing, the Company has elected to use the significant financing component practical expedient under ASC 606-10-32-18. The Company allocates the transaction price to each distinct product based on their relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs upon delivery to the customer. Further, in determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Frequently, the Company receives orders for products to be delivered over multiple dates that may extend across several reporting periods. The Company invoices for each delivery upon shipment and recognizes revenues for each distinct product delivered, assuming transfer of control has occurred. The Company generally does not separately charge customers for shipping and handling costs, but any shipping and handling costs charged to customers are included in product revenue, net. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established for discounts, returns, rebates and allowances that are offered within contracts between the Company and its customers. These reserves are based on the amounts earned or to be claimed on the related sales and are classified as a current liability. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as the Company’s historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. The amount of variable consideration which is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect product revenue and earnings in the period such variances become known. Rebates and Allowances: The Company provides certain customers with rebates and allowances that are explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product revenue is recognized. The Company establishes a liability for such amounts, which is included in accrued expenses in the accompanying condensed consolidated balance sheets. These rebates and allowances result from performance-based offers that are primarily based on attaining contractually specified sales volumes and administrative fees the Company is required to pay to group purchasing organizations. The Company estimates the amount of rebates and allowances that are explicitly stated in the Company’s contracts based on a combination of actual purchases and an estimate of the customer’s buying patterns. Product Returns: The Company generally offers customers a limited right of return due to non-conforming product. The Company estimates the amount of its product sales that may be returned by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. The Company currently estimates product return liabilities using its historical product return information and considers other factors that it believes could significantly impact its expected returns, including product recalls. Reserves for product returns are not significant to the Company due to the nature of its products including radiopharmaceutical products with limited half-lives. The following table summarizes activity for reserves relating to rebate and allowances (including group purchasing organization administrative fees and returns) for the nine months ended September 30, 2018 : (in thousands) Rebates and Allowances Balance, January 1, 2018 $ 2,860 Provision related to current period revenues 9,609 Adjustments relating to prior period revenues (291 ) Payments or credits made during the period (7,885 ) Balance, September 30, 2018 $ 4,293 License and Royalty Revenues The Company has entered into licensing agreements, which are within the scope of ASC 606, under which it licenses certain rights to third parties. The terms of these arrangements typically include payment to the Company of one or more of the following: non-refundable, up-front license fees; development, regulatory and commercial milestone payments; and royalties on net sales of licensed products. The Company also has distribution licenses which are treated as combined performance obligations with the delivery of its products and are classified as product revenue, net. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements, the Company performs the five-step approach stated earlier. The Company uses judgment in determining the number of performance obligations in a license agreement by assessing whether the license is distinct or should be combined with another performance obligation, as well as the nature of the license. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company uses key assumptions to determine the stand-alone selling price, which may include market conditions, reimbursement rates for personnel costs, development timelines and probabilities of regulatory success. Licenses of intellectual property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Milestone Payments: At the inception of each arrangement that includes development milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license and royalty revenues and earnings in the period of adjustment. At September 30, 2018 , the Company is constraining variable consideration related to milestone payments requiring regulatory approvals. Royalty Revenues: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Contract Costs The Company recognizes an asset for incremental costs of obtaining a contract with a customer if it expects to recover those costs. The Company’s sales incentive compensation plans qualify for capitalization since these plans are directly related to sales achieved during a period of time. However, the Company has elected the practical expedient under ASC 340-40-25-4 to expense the costs as they are incurred within selling and marketing expenses since the amortization period is less than one year. The Company recognized certain revenues as follows: (in thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Amounts included in the contract liability at the beginning of the period $ 8 $ 25 Performance obligations satisfied (or partially satisfied) in previous periods $ — $ — The Company’s performance obligations are typically part of contracts that have an original expected duration of one year or less. As such, under the optional exemption provided by ASC 606-10-50-14, the Company is not disclosing the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially satisfied) as of the end of the reporting period. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 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 of 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 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 — Unobservable inputs that reflect a Company’s estimates about the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data. 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: September 30, 2018 (in thousands) Total Fair Value Level 1 Level 2 Level 3 Money market $ 12,605 $ 12,605 $ — $ — Total $ 12,605 $ 12,605 $ — $ — December 31, 2017 (in thousands) Total Fair Value Level 1 Level 2 Level 3 Money market $ 8,700 $ 8,700 $ — $ — Total $ 8,700 $ 8,700 $ — $ — Nonrecurring Fair Value Measurements As of December 31, 2017 , the Company wrote down the value of land held for sale in the U.S. segment to its fair value, less estimated costs to sell, using level 3 inputs. See Note 7 , “ Property, Plant & Equipment, Net ” for further discussion regarding land held for sale. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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, adjusted for any discrete events which are recorded in the period they occur. The Company’s effective tax rate in fiscal 2018 differs from the U.S. federal statutory rate of 21% principally due to the impact of state taxes and the accrual of interest on uncertain tax positions offset by tax benefits arising from stock compensation deductions. The Company’s effective rate in fiscal 2017 was impacted by the valuation allowance the Company had on all its U.S. deferred tax assets until the fourth quarter of fiscal 2017. 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 income tax expense is presented below: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Income tax expense $ 3,566 $ 762 $ 9,581 $ 2,116 On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act of 2017 (the “Act”). The Act is significant and has wide-ranging effects. The Company is still studying all of the ramifications of the Act, but expects the primary material impact of the Act to be the remeasurement of the Company’s deferred tax assets, which was recorded in fiscal 2017 as a result of the reduction in U.S. corporate tax rates from 35% to 21%. As of December 31, 2017, the Company determined it had no accumulated unrepatriated foreign earnings, and therefore had recorded no liability for the repatriation transition tax. No changes have been made to these estimates. The Company is continuing to evaluate other changes resulting from the Act, including the impact of Global Intangible Low Tax Income, Base Erosion and Anti-abuse Tax, and revisions to Code Section 162(m). The Company has incorporated estimates of these items in its fiscal 2018 effective tax rate and expects to complete its accounting for these items within the prescribed measurement period. 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. The Company released its full valuation allowance recorded against its domestic net deferred tax assets during the year ended December 31, 2017 . The Company continues to record a valuation allowance against certain of its foreign net deferred tax assets. 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. A long-term receivable is recorded to account for the expected value to the Company of future indemnification payments, net of actual U.S. federal tax benefits. 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 tax liability and penalties and interest associated with these obligations (net of any offsetting federal or state benefit) is recognized within income tax expense. Accordingly, as these reserves change, adjustments are included in income tax expense while the offsetting adjustment is included in other income. Assuming that the receivable from BMS continues to be considered recoverable by the Company, there will be minimal net effect on earnings and net cash outflows related to these liabilities. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following: (in thousands) September 30, December 31, Raw materials $ 11,896 $ 10,447 Work in process 7,168 5,509 Finished goods 15,508 10,124 Total inventory $ 34,572 $ 26,080 As of December 31, 2017 , the Company had $1.1 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. As of September 30, 2018, the Company had no inventory classified within other long-term assets. |
Property, Plant & Equipment, Ne
Property, Plant & Equipment, Net | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment, Net | Property, Plant & Equipment, Net Property, plant & equipment, net, consisted of the following: (in thousands) September 30, December 31, Land $ 13,450 $ 13,450 Buildings 63,647 76,059 Machinery, equipment and fixtures 68,966 71,870 Computer software 18,365 20,271 Construction in progress 15,285 7,622 179,713 189,272 Less: accumulated depreciation and amortization (80,306 ) (96,273 ) Total property, plant & equipment, net $ 99,407 $ 92,999 Depreciation and amortization expense related to property, plant & equipment, net, was $2.5 million and $2.7 million for the three months ended September 30, 2018 and 2017 , respectively, and $7.6 million and $11.7 million for the nine months ended September 30, 2018 and 2017 , respectively. Long-Lived Assets Held for Sale During the fourth quarter of 2017, the Company committed to a plan to sell a portion of its land in the U.S. segment. This event qualified for held for sale accounting and the land was written down to its fair value, less estimated costs to sell, which is classified in other current assets at December 31, 2017 . During the first quarter of 2018, the Company completed the sale of the land for proceeds of $1.0 million . |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 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 production facilities which manufacture and process radioactive materials 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 September 30, 2018 , 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, 2018 $ 10,412 Accretion expense 870 Balance at September 30, 2018 $ 11,282 |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements On March 30, 2017, the Company refinanced its previous $365 million seven -year term loan agreement (the facility thereunder, the “2015 Term Facility”) with a new five -year $275 million term loan facility (the “2017 Term Facility” and the loans thereunder, the “Term Loans”). In addition, the Company replaced its previous $50 million five -year asset based loan facility (the “ABL Facility”) with a new $75 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. On November 29, 2017, the Company entered into Amendment No. 1 (the “Repricing Amendment”) to the 2017 Facility to, among other things, (i) reduce the applicable interest rate margins with respect to the LIBOR and Base Rate Term Loans (as defined in the Credit Agreement) and (ii) reduce the applicable interest rate margins with respect to the LIBOR and Base Rate Revolving Loans (as defined in the Credit Agreement). The Company accounted for the Repricing Amendment as both a debt extinguishment and debt modification by evaluating the refinancing on a creditor by creditor basis. 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 3.75% or (ii) the Base Rate (as defined in the Credit Agreement) plus a spread of 2.75% . 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 September 30, 2018 , the Company’s interest rate under the 2017 Term Facility was 6.0% . The Company is permitted to voluntarily prepay the Term Loans, in whole or in part. 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 September 30, 2018 : (in thousands) Amount Remainder of 2018 $ 688 2019 2,750 2020 2,750 2021 2,750 2022 261,937 Total principal outstanding 270,875 Unamortized debt discount (1,697 ) Unamortized debt issuance costs (2,298 ) Total 266,880 Less: current portion (2,750 ) Total long-term debt $ 264,130 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 million (the “Revolving Commitment”) at any time outstanding. The 2017 Revolving Facility includes a $20 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 3.00% or (ii) the Base Rate (as defined in the Credit Agreement) plus a spread of 2.00% . The 2017 Revolving Facility also includes an unused line fee, which is set at 0.38% 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 September 30, 2018 , 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: Period Consolidated Leverage Ratio Q4 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 | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 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 Nine Months Ended (in thousands) 2018 2017 2018 2017 Cost of goods sold $ 322 $ 198 $ 812 $ 514 Sales and marketing 193 183 892 474 General and administrative 1,540 1,089 3,741 2,315 Research and development 352 187 974 461 Total stock-based compensation expense $ 2,407 $ 1,657 $ 6,419 $ 3,764 During the first quarter of 2018, the Company granted approximately 207,000 total stockholder return restricted stock awards (“TSR Awards”) that include a three -year market condition where the performance measurement period is three years. Vesting of the TSR Awards is based on the Company’s level of attainment of specified TSR targets relative to a specified index of companies for the respective three -year period and is also subject to the continued employment of the grantees. The number of shares that can be earned over the performance period ranges from 0% to 200% of the initial award. The fair value of these awards are based on a Monte Carlo simulation valuation model. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share A summary of net income per common share is presented below: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2018 2017 2018 2017 Net income $ 9,269 $ 8,526 $ 27,225 $ 26,259 Basic weighted-average common shares outstanding 38,342 37,393 38,155 37,174 Effect of dilutive stock options 31 318 70 371 Effect of dilutive restricted stock 1,029 1,410 1,242 1,426 Diluted weighted-average common shares outstanding 39,402 39,121 39,467 38,971 Basic income per common share $ 0.24 $ 0.23 $ 0.71 $ 0.71 Diluted income per common share $ 0.24 $ 0.22 $ 0.69 $ 0.67 Antidilutive securities excluded from diluted net income per common share 355 322 346 378 |
Other Income
Other Income | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income | Other Income Other income consisted of the following: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Foreign currency gains (losses) $ 89 $ 414 $ (198 ) $ 554 Tax indemnification income 692 489 2,220 1,469 Other 18 5 33 14 Total other income $ 799 $ 908 $ 2,055 $ 2,037 |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Contingencies | 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 costs and 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. The Company is currently in arbitration with Pharmalucence in connection with a Manufacturing and Supply Agreement, dated November 12, 2013, under which Pharmalucence agreed to manufacture and supply DEFINITY for the Company. The commercial arrangement contemplated by that agreement was repeatedly delayed and ultimately never successfully realized. After extended settlement discussions between Sun Pharma, the ultimate parent of Pharmalucence, and the Company, which did not lead to a mutually acceptable outcome, on November 10, 2017, the Company filed an arbitration demand (and later an amended arbitration demand) with the American Arbitration Association against Pharmalucence, alleging breach of contract, breach of the covenant of good faith and fair dealing, tortious misrepresentation and violation of the Massachusetts Consumer Protection Law, also known as Chapter 93A. The Company is seeking monetary damages but cannot predict the outcome of this dispute resolution proceeding and whether the Company will be able to obtain any financial recovery as a result of this proceeding. As of September 30, 2018 , except as disclosed above the Company had no material ongoing litigation in which the Company was a party. In addition, the Company had no material ongoing regulatory or other proceedings and no knowledge of any investigations by government or regulatory authorities in which the Company is a target, in either case that the Company believes could have a material and adverse effect on its current business. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 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 regarding the Company’s segments is provided as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Revenues from external customers U.S. $ 70,255 $ 69,579 $ 215,829 $ 218,706 International 18,645 10,362 41,274 31,431 Total revenues from external customers $ 88,900 $ 79,941 $ 257,103 $ 250,137 Operating income U.S. $ 12,897 $ 12,243 $ 41,345 $ 40,306 International 3,585 579 6,200 2,340 Total operating income 16,482 12,822 47,545 42,646 Interest expense 4,446 4,442 12,794 14,147 Loss on extinguishment of debt — — — 2,161 Other income (799 ) (908 ) (2,055 ) (2,037 ) Income before income taxes $ 12,835 $ 9,288 $ 36,806 $ 28,375 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
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 notes 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 nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 or any future period. The condensed consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes 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, 2017 filed with the Securities Exchange Commission (“SEC”) on February 26, 2018. Certain immaterial amounts in the prior period condensed consolidated statement of cash flows have been reclassified to conform to the current period financial statement presentation. |
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 for Company Effect on the Condensed Consolidated Financial Statements Recently Issued Accounting Standards Not Yet Adopted ASU 2016-02, Leases (Topic 842) This ASU supersedes existing guidance on accounting for leases in “Leases (Topic 840)” and generally requires all leases to be recognized on the balance sheet. The provisions of ASU 2016-02 are effective for annual reporting periods beginning after December 15, 2018; early adoption is permitted. In July 2018, an amendment was made that allows companies the option of using the effective date of the new standard as the initial application date (at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period). January 1, 2019 The Company is currently in the process of performing an assessment on the impact of the standard, including optional practical expedients and transition methods that the Company may elect upon adoption and is progressing with an implementation plan. The implementation plan includes identifying the Company’s lease population, assessing significant leases under the new guidance and identifying changes to processes and controls. The Company is more than halfway through its assessment and implementation plan. At this time, the Company does not anticipate a significant impact to its balance sheet upon adoption of this standard. The Company, in part due to the limited anticipated impact, plans to utilize the prospective approach of adopting the standard. Standard Description Effective Date for Company Effect on the Condensed Consolidated Financial Statements Accounting Standards Adopted During the Nine Months Ended September 30, 2018 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, vesting conditions or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. January 1, 2018 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and related amendments 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. January 1, 2018 See Note 3, "Revenue from Contracts with Customers" for the required disclosures related to the impact of adopting this standard. The adoption of this standard did not have a material impact on the Company’s condensed consolidated balance sheets and statements of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
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 for Company Effect on the Condensed Consolidated Financial Statements Recently Issued Accounting Standards Not Yet Adopted ASU 2016-02, Leases (Topic 842) This ASU supersedes existing guidance on accounting for leases in “Leases (Topic 840)” and generally requires all leases to be recognized on the balance sheet. The provisions of ASU 2016-02 are effective for annual reporting periods beginning after December 15, 2018; early adoption is permitted. In July 2018, an amendment was made that allows companies the option of using the effective date of the new standard as the initial application date (at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period). January 1, 2019 The Company is currently in the process of performing an assessment on the impact of the standard, including optional practical expedients and transition methods that the Company may elect upon adoption and is progressing with an implementation plan. The implementation plan includes identifying the Company’s lease population, assessing significant leases under the new guidance and identifying changes to processes and controls. The Company is more than halfway through its assessment and implementation plan. At this time, the Company does not anticipate a significant impact to its balance sheet upon adoption of this standard. The Company, in part due to the limited anticipated impact, plans to utilize the prospective approach of adopting the standard. Standard Description Effective Date for Company Effect on the Condensed Consolidated Financial Statements Accounting Standards Adopted During the Nine Months Ended September 30, 2018 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, vesting conditions or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. January 1, 2018 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and related amendments 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. January 1, 2018 See Note 3, "Revenue from Contracts with Customers" for the required disclosures related to the impact of adopting this standard. The adoption of this standard did not have a material impact on the Company’s condensed consolidated balance sheets and statements of operations. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table summarizes revenue by revenue source and reportable segment as follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Major Products/Service Lines (in thousands) U.S. International Total U.S. International Total Product revenue, net (1) $ 70,255 $ 18,069 $ 88,324 $ 215,829 $ 39,567 $ 255,396 License and royalty revenues — 576 576 — 1,707 1,707 Total revenues $ 70,255 $ 18,645 $ 88,900 $ 215,829 $ 41,274 $ 257,103 ________________________________ (1) The Company’s principal products include DEFINITY, TechneLite and Xenon and are categorized within product revenue, net. The Company applies the same revenue recognition policies and judgments for all of its principal products. |
Schedule of contract liabilities | The following table summarizes activity for reserves relating to rebate and allowances (including group purchasing organization administrative fees and returns) for the nine months ended September 30, 2018 : (in thousands) Rebates and Allowances Balance, January 1, 2018 $ 2,860 Provision related to current period revenues 9,609 Adjustments relating to prior period revenues (291 ) Payments or credits made during the period (7,885 ) Balance, September 30, 2018 $ 4,293 The Company recognized certain revenues as follows: (in thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Amounts included in the contract liability at the beginning of the period $ 8 $ 25 Performance obligations satisfied (or partially satisfied) in previous periods $ — $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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: September 30, 2018 (in thousands) Total Fair Value Level 1 Level 2 Level 3 Money market $ 12,605 $ 12,605 $ — $ — Total $ 12,605 $ 12,605 $ — $ — December 31, 2017 (in thousands) Total Fair Value Level 1 Level 2 Level 3 Money market $ 8,700 $ 8,700 $ — $ — Total $ 8,700 $ 8,700 $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | The Company’s income tax expense is presented below: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Income tax expense $ 3,566 $ 762 $ 9,581 $ 2,116 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory consisted of the following: (in thousands) September 30, December 31, Raw materials $ 11,896 $ 10,447 Work in process 7,168 5,509 Finished goods 15,508 10,124 Total inventory $ 34,572 $ 26,080 |
Property, Plant & Equipment, _2
Property, Plant & Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant, & equipment, net | Property, plant & equipment, net, consisted of the following: (in thousands) September 30, December 31, Land $ 13,450 $ 13,450 Buildings 63,647 76,059 Machinery, equipment and fixtures 68,966 71,870 Computer software 18,365 20,271 Construction in progress 15,285 7,622 179,713 189,272 Less: accumulated depreciation and amortization (80,306 ) (96,273 ) Total property, plant & equipment, net $ 99,407 $ 92,999 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of changes in 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, 2018 $ 10,412 Accretion expense 870 Balance at September 30, 2018 $ 11,282 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 : (in thousands) Amount Remainder of 2018 $ 688 2019 2,750 2020 2,750 2021 2,750 2022 261,937 Total principal outstanding 270,875 Unamortized debt discount (1,697 ) Unamortized debt issuance costs (2,298 ) Total 266,880 Less: current portion (2,750 ) Total long-term debt $ 264,130 |
Schedule of term facility financial covenant | The maximum consolidated leverage ratio permitted by the financial covenant is displayed in the table below: Period Consolidated Leverage Ratio Q4 2018 through Q1 2019 4.75 to 1.00 Thereafter 4.50 to 1.00 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 Nine Months Ended (in thousands) 2018 2017 2018 2017 Cost of goods sold $ 322 $ 198 $ 812 $ 514 Sales and marketing 193 183 892 474 General and administrative 1,540 1,089 3,741 2,315 Research and development 352 187 974 461 Total stock-based compensation expense $ 2,407 $ 1,657 $ 6,419 $ 3,764 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of net income per common share | A summary of net income per common share is presented below: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2018 2017 2018 2017 Net income $ 9,269 $ 8,526 $ 27,225 $ 26,259 Basic weighted-average common shares outstanding 38,342 37,393 38,155 37,174 Effect of dilutive stock options 31 318 70 371 Effect of dilutive restricted stock 1,029 1,410 1,242 1,426 Diluted weighted-average common shares outstanding 39,402 39,121 39,467 38,971 Basic income per common share $ 0.24 $ 0.23 $ 0.71 $ 0.71 Diluted income per common share $ 0.24 $ 0.22 $ 0.69 $ 0.67 Antidilutive securities excluded from diluted net income per common share 355 322 346 378 |
Other Income (Tables)
Other Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of other income | Other income consisted of the following: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Foreign currency gains (losses) $ 89 $ 414 $ (198 ) $ 554 Tax indemnification income 692 489 2,220 1,469 Other 18 5 33 14 Total other income $ 799 $ 908 $ 2,055 $ 2,037 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Selected information regarding the Company’s segments is provided as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Revenues from external customers U.S. $ 70,255 $ 69,579 $ 215,829 $ 218,706 International 18,645 10,362 41,274 31,431 Total revenues from external customers $ 88,900 $ 79,941 $ 257,103 $ 250,137 Operating income U.S. $ 12,897 $ 12,243 $ 41,345 $ 40,306 International 3,585 579 6,200 2,340 Total operating income 16,482 12,822 47,545 42,646 Interest expense 4,446 4,442 12,794 14,147 Loss on extinguishment of debt — — — 2,161 Other income (799 ) (908 ) (2,055 ) (2,037 ) Income before income taxes $ 12,835 $ 9,288 $ 36,806 $ 28,375 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 88,900 | $ 79,941 | $ 257,103 | $ 250,137 |
Product revenue, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 88,324 | 255,396 | ||
License and royalty revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 576 | 1,707 | ||
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70,255 | 69,579 | 215,829 | 218,706 |
U.S. | Product revenue, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70,255 | 215,829 | ||
U.S. | License and royalty revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,645 | $ 10,362 | 41,274 | $ 31,431 |
International | Product revenue, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,069 | 39,567 | ||
International | License and royalty revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 576 | $ 1,707 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Reserves Related to Rebate and Allowances (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |
Beginning balance | $ 2,860 |
Provision related to current period revenues | 9,609 |
Adjustments relating to prior period revenues | (291) |
Payments or credits made during the period | (7,885) |
Ending balance | $ 4,293 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Amounts included in the contract liability at the beginning of the period | $ 8 | $ 25 |
Performance obligations satisfied (or partially satisfied) in previous periods | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 12,605 | $ 8,700 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 12,605 | 8,700 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market | 12,605 | 8,700 |
Money market | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market | 12,605 | 8,700 |
Money market | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market | 0 | 0 |
Money market | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 3,566 | $ 762 | $ 9,581 | $ 2,116 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 11,896 | $ 10,447 |
Work in process | 7,168 | 5,509 |
Finished goods | 15,508 | 10,124 |
Total inventory | $ 34,572 | $ 26,080 |
Inventory - Additional Informat
Inventory - Additional Information (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 0 | |
Other long-term assets | ||
Inventory [Line Items] | ||
Raw materials | $ 1,100,000 |
Property, Plant & Equipment, _3
Property, Plant & Equipment, Net - Schedule of Property, Plant & Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | $ 179,713 | $ 189,272 |
Less: accumulated depreciation and amortization | (80,306) | (96,273) |
Total property, plant & equipment, net | 99,407 | 92,999 |
Land | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | 13,450 | 13,450 |
Buildings | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | 63,647 | 76,059 |
Machinery, equipment and fixtures | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | 68,966 | 71,870 |
Construction in progress | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | 15,285 | 7,622 |
Computer software | ||
Property, Plant & Equipment [Line Items] | ||
Property, plant & equipment, gross | $ 18,365 | $ 20,271 |
Property, Plant & Equipment, _4
Property, Plant & Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant & Equipment [Line Items] | |||||
Proceeds from sales of assets | $ 1,000 | $ 1,000 | $ 1,234 | ||
Property, plant and equipment | |||||
Property, Plant & Equipment [Line Items] | |||||
Depreciation and amortization | $ 2,500 | $ 2,700 | $ 7,600 | $ 11,700 |
Asset Retirement Obligations -
Asset Retirement Obligations - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
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 _2
Asset Retirement Obligations - Summary of Changes in Asset Retirement Obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
Asset retirement obligations, beginning balance | $ 10,412 |
Accretion expense | 870 |
Asset retirement obligations, ending balance | $ 11,282 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) - USD ($) | Mar. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 2,200,000 | $ 0 | $ (2,161,000) | |
Third-party costs associated with modified debt | 1,700,000 | |||
Capitalized debt issuance costs | 1,600,000 | |||
Revolving line of credit | $ 0 | $ 0 | ||
2015 Term Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 365,000,000 | |||
Debt instrument, term | 7 years | |||
Cash paid during the execution of refinancing | $ 15,300,000 | |||
2017 Term Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 275,000,000 | |||
Debt instrument, term | 5 years | |||
Debt instrument, discount amount | $ 700,000 | |||
Increase in aggregate principle amount | 75,000,000 | |||
Interest rate at end of period | 6.00% | |||
Annual percentage amortization of debt | 1.00% | |||
2017 Term Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.75% | |||
2017 Term Facility | Reference Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.75% | |||
Asset Based Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 50,000,000 | |||
Debt instrument, term | 5 years | |||
2017 Revolving Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 75,000,000 | $ 75,000,000 | ||
Debt instrument, term | 5 years | |||
2017 Revolving Facility | Leverage Ratio Range One | ||||
Debt Instrument [Line Items] | ||||
Unused line of credit fee | 0.38% | |||
Debt instrument covenant leverage ratio | 300.00% | |||
2017 Revolving Facility | Leverage Ratio Range Two | ||||
Debt Instrument [Line Items] | ||||
Unused line of credit fee | 0.25% | |||
2017 Revolving Facility | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 20,000,000 | |||
2017 Revolving Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.00% | |||
2017 Revolving Facility | Reference Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Maturities of Principal Obligations Under New Term Facility (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Less: current portion | $ (2,750) | $ (2,750) |
Total long-term debt | 264,130 | $ 265,393 |
2017 Term Facility | ||
Debt Instrument [Line Items] | ||
Remainder of 2018 | 688 | |
2,019 | 2,750 | |
2,020 | 2,750 | |
2,021 | 2,750 | |
2,022 | 261,937 | |
Total principal outstanding | 270,875 | |
Unamortized debt discount | (1,697) | |
Unamortized debt issuance costs | (2,298) | |
Total | 266,880 | |
Less: current portion | (2,750) | |
Total long-term debt | $ 264,130 |
Financing Arrangements - Sche_2
Financing Arrangements - Schedule of Term Facility Financial Covenant (Details) | Apr. 01, 2019 | Mar. 31, 2019 |
Forecast | 2017 Facility | ||
Debt Instrument [Line Items] | ||
Consolidated Leverage Ratio | 450.00% | 475.00% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 2,407 | $ 1,657 | $ 6,419 | $ 3,764 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 322 | 198 | 812 | 514 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 193 | 183 | 892 | 474 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1,540 | 1,089 | 3,741 | 2,315 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 352 | $ 187 | $ 974 | $ 461 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended |
Mar. 31, 2018 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards granted (in shares) | 207,000 | |
Market condition period | 3 years | |
Performance measurement period | 3 years | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period range | 0.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period range | 200.00% |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 9,269 | $ 8,526 | $ 27,225 | $ 26,259 |
Basic weighted-average common shares outstanding (in shares) | 38,342 | 37,393 | 38,155 | 37,174 |
Effect of dilutive stock options (in shares) | 31 | 318 | 70 | 371 |
Effect of dilutive restricted stock (in shares) | 1,029 | 1,410 | 1,242 | 1,426 |
Diluted weighted-average common shares outstanding (in shares) | 39,402 | 39,121 | 39,467 | 38,971 |
Basic income per common share (in dollars per share) | $ 0.24 | $ 0.23 | $ 0.71 | $ 0.71 |
Diluted income per common share (in dollars per share) | $ 0.24 | $ 0.22 | $ 0.69 | $ 0.67 |
Antidilutive securities excluded from diluted income per common share (in shares) | 355 | 322 | 346 | 378 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency gains (losses) | $ 89 | $ 414 | $ (198) | $ 554 |
Tax indemnification income | 692 | 489 | 2,220 | 1,469 |
Other | 18 | 5 | 33 | 14 |
Total other income | $ 799 | $ 908 | $ 2,055 | $ 2,037 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating segments (in segments) | 2 |
Segment Information - Schedule
Segment Information - Schedule of Selected Information for Each Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues from external customers | ||||
Revenues from external customers | $ 88,900 | $ 79,941 | $ 257,103 | $ 250,137 |
Operating income | ||||
Operating income | 16,482 | 12,822 | 47,545 | 42,646 |
Interest expense | 4,446 | 4,442 | 12,794 | 14,147 |
Loss on extinguishment of debt | 0 | 0 | 0 | 2,161 |
Other income | (799) | (908) | (2,055) | (2,037) |
Income before income taxes | 12,835 | 9,288 | 36,806 | 28,375 |
U.S. | ||||
Revenues from external customers | ||||
Revenues from external customers | 70,255 | 69,579 | 215,829 | 218,706 |
Operating income | ||||
Operating income | 12,897 | 12,243 | 41,345 | 40,306 |
International | ||||
Revenues from external customers | ||||
Revenues from external customers | 18,645 | 10,362 | 41,274 | 31,431 |
Operating income | ||||
Operating income | $ 3,585 | $ 579 | $ 6,200 | $ 2,340 |