Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Central Index Key | 0000784199 | |
Entity Registrant Name | CRYOLIFE INC | |
Trading Symbol | cry | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 37,335,737 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 67,505 | $ 61,948 |
Cost of products and preservation services: | ||
Total cost of products and preservation services | 23,232 | 22,720 |
Gross margin | 44,273 | 39,228 |
Operating expenses: | ||
General, administrative, and marketing | 36,520 | 37,348 |
Research and development | 5,548 | 5,370 |
Total operating expenses | 42,068 | 42,718 |
Operating income (loss) | 2,205 | (3,490) |
Interest expense | 3,894 | 3,656 |
Interest income | (116) | (59) |
Other expense (income), net | 77 | (181) |
Loss before income taxes | (1,650) | (6,906) |
Income tax benefit | (1,353) | (3,051) |
Net loss | $ (297) | $ (3,855) |
Loss per common share: | ||
Basic | $ (0.01) | $ (0.11) |
Diluted | $ (0.01) | $ (0.11) |
Weighted-average common shares outstanding: | ||
Basic | 36,778 | 36,146 |
Diluted | 36,778 | 36,146 |
Net loss | $ (297) | $ (3,855) |
Foreign currency translation adjustments | (3,781) | 7,139 |
Comprehensive (loss) income | (4,078) | 3,284 |
Products [Member] | ||
Revenues: | ||
Total revenues | 48,401 | 43,598 |
Cost of products and preservation services: | ||
Total cost of products and preservation services | 13,826 | 14,157 |
Preservation Services [Member] | ||
Revenues: | ||
Total revenues | 19,104 | 18,350 |
Cost of products and preservation services: | ||
Total cost of products and preservation services | $ 9,406 | $ 8,563 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 40,344 | $ 41,489 |
Restricted securities | 731 | 747 |
Receivables, net | 54,313 | 51,432 |
Inventories | 44,124 | 45,478 |
Deferred preservation costs | 32,635 | 33,174 |
Prepaid expenses and other | 6,505 | 6,848 |
Total current assets | 178,652 | 179,168 |
Property and equipment, net | 30,254 | 31,028 |
Operating lease right-of-use assets, net | 22,961 | 0 |
Goodwill | 186,706 | 188,781 |
Acquired technology, net | 114,479 | 118,184 |
Trademarks and other intangibles, net | 41,333 | 41,897 |
Deferred income taxes | 4,086 | 4,111 |
Other | 8,457 | 7,922 |
Total assets | 586,928 | 571,091 |
Current liabilities: | ||
Accounts payable | 5,425 | 7,547 |
Accrued compensation | 9,168 | 10,733 |
Current maturities of long-term debt | 1,153 | 1,160 |
Current maturities of operating leases | 4,982 | |
Taxes payable | 1,721 | 2,250 |
Accrued expenses and other | 13,974 | 12,833 |
Total current liabilities | 36,423 | 34,523 |
Long-term debt | 215,260 | 215,721 |
Non-current operating lease obligations | 19,902 | 0 |
Deferred income taxes | 26,331 | 27,267 |
Other | 16,390 | 18,513 |
Total liabilities | 314,306 | 296,024 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock | ||
Common stock (issued shares of 38,756 in 2019 and 38,463 in 2018) | 388 | 385 |
Additional paid-in capital | 261,991 | 260,361 |
Retained earnings | 34,687 | 34,984 |
Accumulated other comprehensive (loss) income | (9,853) | (6,072) |
Treasury stock at cost (shares of 1,484 in 2019 and 1,484 in 2018) | (14,591) | (14,591) |
Total shareholders' equity | 272,622 | 275,067 |
Total liabilities and shareholders' equity | $ 586,928 | $ 571,091 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Shareholders' equity: | ||
Common stock, shares issued | 38,756 | 38,463 |
Treasury stock at cost, shares | 1,484 | 1,484 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net cash flows from operating activities: | ||
Net loss | $ (297) | $ (3,855) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depreciation and amortization | 4,351 | 4,376 |
Non-cash compensation | 1,850 | 1,248 |
Deferred income taxes | (424) | (1,283) |
Other non-cash adjustments to loss | 737 | 810 |
Changes in operating assets and liabilities: | ||
Receivables | (3,292) | (3,346) |
Inventories and deferred preservation costs | 1,396 | 2,954 |
Prepaid expenses and other assets | 627 | (215) |
Accounts payable, accrued expenses, and other liabilities | (3,787) | (10,416) |
Net cash flows provided by (used in) operating activities | 1,161 | (9,727) |
Net cash flows from investing activities: | ||
Capital expenditures | (1,194) | (2,116) |
Other | (233) | (3) |
Net cash flows used in investing activities | (1,427) | (2,119) |
Net cash flows from financing activities: | ||
Repayment of term loan | (696) | (707) |
Proceeds from exercise of stock options and issuance of common stock | 2,029 | 606 |
Redemption and repurchase of stock to cover tax withholdings | (2,376) | (1,512) |
Other | (172) | (341) |
Net cash flows used in financing activities | (1,215) | (1,954) |
Effect of exchange rate changes on cash | 320 | 439 |
Decrease in cash, cash equivalents, and restricted securities | (1,161) | (13,361) |
Cash, cash equivalents, and restricted securities beginning of year | 42,236 | 40,753 |
Cash, cash equivalents, and restricted securities end of year | $ 41,075 | $ 27,392 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2017 | $ 376 | $ 249,935 | $ 37,609 | $ 1,857 | $ (12,719) | $ 277,058 |
Balance, shares at Dec. 31, 2017 | 37,618 | (1,386) | ||||
Net loss | (3,855) | (3,855) | ||||
Foreign currency translation income (loss) | 7,139 | 7,139 | ||||
Comprehensive income (loss) | 3,284 | |||||
Comprehensive income | 3,499 | |||||
Equity compensation | $ 1 | 1,353 | 1,354 | |||
Equity compensation, shares | 225 | |||||
Exercise of options | $ 4 | 1,886 | $ (1,872) | 18 | ||
Exercise of options, shares | 317 | (98) | ||||
Employee stock purchase plan | 588 | 588 | ||||
Employee stock purchase plan, shares | 37 | |||||
Redemption and repurchase of stock to cover tax withholdings | (1,511) | (1,511) | ||||
Redemption and repurchase of stock to cover tax withholdings, shares | (82) | |||||
Balance at Mar. 31, 2018 | $ 381 | 252,251 | 33,969 | 8,996 | $ (14,591) | 281,006 |
Balance, shares at Mar. 31, 2018 | 38,115 | (1,484) | ||||
Cumulative effect of adjustment | ASU 606 [Member] | 215 | 215 | ||||
Balance at Dec. 31, 2018 | $ 385 | 260,361 | 34,984 | (6,072) | $ (14,591) | 275,067 |
Balance, shares at Dec. 31, 2018 | 38,463 | (1,484) | ||||
Net loss | (297) | (297) | ||||
Foreign currency translation income (loss) | (3,781) | (3,781) | ||||
Comprehensive income (loss) | (4,078) | |||||
Equity compensation | $ 2 | 1,978 | 1,980 | |||
Equity compensation, shares | 205 | |||||
Exercise of options | $ 1 | 1,450 | 1,451 | |||
Exercise of options, shares | 145 | |||||
Employee stock purchase plan | 578 | 578 | ||||
Employee stock purchase plan, shares | 25 | |||||
Redemption and repurchase of stock to cover tax withholdings | (2,376) | (2,376) | ||||
Redemption and repurchase of stock to cover tax withholdings, shares | (82) | |||||
Balance at Mar. 31, 2019 | $ 388 | $ 261,991 | $ 34,687 | $ (9,853) | $ (14,591) | $ 272,622 |
Balance, shares at Mar. 31, 2019 | 38,756 | (1,484) |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | 1. Basis of Presentation Overview The accompanying summary consolidated financial statements include the accounts of CryoLife, Inc. and its subsidiaries (“CryoLife,” the “Company,” “we,” or “us”). All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying Summary Consolidated Balance Sheet as of December 31, 2018 has been derived from audited financial statements. The accompanying unaudited summary consolidated financial statements as of, and for the three months ended , March 31, 2019 and 2018 have been prepared in accordance with (i) accounting principles generally accepted in the U.S. for interim financial information and (ii) the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, such statements do not include all of the information and disclosures required by accounting principles generally accepted in the U.S. for a complete presentation of financial statements. In the opinion of management, all adjustments (including those of a normal, recurring nature) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . These summary consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in CryoLife’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 26, 2019. New Accounting Standards Recently Adopted As of January 1, 2019 we adopted the new Accounting Standards Codification (“ASC”) Topic 842, Leases (“ASC 842”). The final guidance requires lessees to recognize a right-of-use asset and a lease liability for all leases (with the exception of short-term leases) at the commencement date and recognize expenses on their income statements similar to the current Topic 840, Leases . We used the modified retrospective approach, which allows application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented. The adoption of this standard resulted in the recognition of operating lease agreements with a net present value of $22.7 million and corresponding right-of-use assets obtained in the same amount at January 1, 2019. See Note 7 for further discussion of leases. Not Yet Effective In June 2016, the F inancial Accounting Standards Board (“F ASB ”) issued ASC Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The purpose of Update No. 2016-13 is to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. Update No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods and e arly adoption is permitted. We are in the process of evaluating the effect that the adoption of this standard will have on our financial position and results of operations . |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Financial Instruments [Abstract] | |
Financial Instruments | 2. Financial Instruments The following is a summary of our financial instruments measured at fair value (in thousands): March 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,450 $ -- $ -- $ 1,450 Restricted securities: Money market funds 731 -- -- 731 Total assets $ 2,181 $ -- $ -- $ 2,181 December 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,445 $ -- $ -- $ 1,445 Restricted securities: Money market funds 747 -- -- 747 Total assets $ 2,192 $ -- $ -- $ 2,192 We used prices quoted from our investment advisors to determine the Level 1 valuation of our investments in money market funds . |
Cash Equivalents And Restricted
Cash Equivalents And Restricted Cash And Securities | 3 Months Ended |
Mar. 31, 2019 | |
Cash Equivalents And Restricted Cash And Securities [Abstract] | |
Cash Equivalents And Restricted Cash And Securities | 3. Cash Equivalents and Restricted Securities The following is a summary of cash equivalents and restricted securities (in thousands): Unrealized Estimated Holding Market March 31, 2019 Cost Basis Gains Value Cash equivalents: Money market funds $ 1,450 $ -- $ 1,450 Restricted securities: Money market funds 731 -- 731 Unrealized Estimated Holding Market December 31, 2018 Cost Basis Gains Value Cash equivalents: Money market funds $ 1,445 $ -- $ 1,445 Restricted securities: Money market funds 747 -- 747 As of March 31, 2019 and December 31, 2018 $731,000 and $747,000 , respectively, all of our money market funds were designated as short-term restricted securities due to a contractual commitment to hold the securities as pledged collateral relating primarily to international tax obligations. There were no gross realized gains or losses on cash equivalents in the three months ended March 31, 2019 and 2018 . As of March 31, 2019 $731,000 of our restricted securities had a maturity date within three months. As of December 31, 2018 $512,000 of our restricted securities had a maturity date within three months and $235,000 had a maturity date between three months and one year. |
Inventories And Deferred Preser
Inventories And Deferred Preservation Costs | 3 Months Ended |
Mar. 31, 2019 | |
Inventories And Deferred Preservation Costs [Abstract] | |
Inventories And Deferred Preservation Costs | 4. Inventories and Deferred Preservation Costs Inventories at March 31, 2019 and December 31, 2018 were comprised of the following (in thousands): March 31, December 31, 2019 2018 Raw materials and supplies $ 16,762 $ 17,381 Work-in-process 4,487 3,858 Finished goods 22,875 24,239 Total inventories $ 44,124 $ 45,478 Deferred preservation costs at March 31, 2019 and December 31, 2018 were comprised of the following (in thousands): March 31, December 31, 2019 2018 Cardiac tissues $ 16,223 $ 15,972 Vascular tissues 16,412 17,202 Total deferred preservation costs $ 32,635 $ 33,174 We maintain consignment inventory of our On-X Life Technologies Holdings, Inc. (“On-X”) heart valves at domestic hospital locations and On-X heart valves and JOTEC products at international hospital locations to facilitate usage. We retain title to this consignment inventory until the device is implanted, at which time we invoice the hospital and recognize revenue. As of March 31, 2019 we had $11.3 million in consignment inventory, with approximately 54% in domestic locations and 46% in foreign locations. As of December 31, 2018 we had $11.2 million in consignment inventory, with approximately 55% in domestic locations and 45% in foreign locations. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Other Intangible Assets [Abstract] | |
Goodwill And Other Intangible Assets | 5. Goodwill and Other Intangible Assets Indefinite Lived Intangible Assets As of March 31, 2019 and December 31, 2018 the carrying values of our indefinite lived intangible assets were as follows (in thousands): March 31, December 31, 2019 2018 Goodwill $ 186,706 $ 188,781 In-process R&D 9,206 9,382 Procurement contracts and agreements 2,013 2,013 Trademarks 844 844 We monitor the phases of development of our acquired in-process R&D projects, including the risks associated with further development and the amount and timing of benefits expected to be derived from the completed projects. Incremental costs associated with development are charged to expense as incurred. Capitalized costs are amortized over the estimated useful life of the developed asset once completed. Our in-process R&D projects are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Based on our experience with similar agreements, we believe that our acquired procurement contracts and agreements have indefinite useful lives, as we expect to continue to renew these contracts for the foreseeable future. We believe that our trademarks have indefinite useful lives as we currently anticipate that our trademarks will contribute to our cash flows indefinitely. As of March 31, 2019 and December 31, 2018 our entire goodwill balance was related to our Medical Devices segment. Medical Devices Segment Balance as of December 31, 2018 $ 188,781 Revaluation of goodwill denominated in foreign currency (2,075) Balance as of March 31, 2019 $ 186,706 Definite Lived Intangible Assets As of March 31, 2019 and December 31, 2018 the gross carrying values, accumulated amortization, and approximate amortization period of our definite lived intangible assets were as follows (in thousands): Gross Carrying Accumulated Amortization March 31, 2019 Value Amortization Period Acquired technology $ 133,187 $ 18,708 11 – 22 Years Customer lists and relationships 31,131 5,444 13 – 22 Years Distribution and manufacturing rights and know-how 4,059 2,179 11 – 15 Years Patents 3,622 2,979 17 Years Other 1,350 290 3 – 5 Years Gross Carrying Accumulated Amortization December 31, 2018 Value Amortization Period Acquired technology $ 134,999 $ 16,815 11 – 22 Years Customer lists and relationships 31,169 5,068 13 – 22 Years Distribution and manufacturing rights and know-how 4,059 2,107 11 – 15 Years Patents 3,656 2,970 17 Years Other 1,154 235 3 – 5 Years Amortization Expense The following is a summary of amortization expense as recorded in general, administrative, and marketing expenses on our Summary Consolidated Statement of Operations and Comprehensive (Loss) Income (in thousands): Three Months Ended March 31, 2019 2018 Amortization expense $ 2,579 $ 2,735 As of March 31, 2019 scheduled amortization of intangible assets for the next five years is as follows (in thousands): Remainder of 2019 2020 2021 2022 2023 2024 Total Amortization expense $ 7,727 $ 10,151 $ 10,129 $ 9,583 $ 9,173 $ 8,948 $ 55,711 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 6. Income Taxes Income Tax Expense Our effective income tax rate was a benefit of 82% and 44% for the three months ended March 31, 2019 and 2018 , respectively. Our income tax rate for the three months ended March 31, 2019 increased primarily due to excess tax benefit deductions related to stock compensation . The income tax rate was favorably impacted by the research and development tax credit and losses in high rate jurisdictions, partially offset by unfavorable impacts of non-deductible operating expenses and executive compensation expenses. Our income tax rate for the three months ended March 31, 2018 was favorably impacted by losses in high rate jurisdictions and excess tax benefit deductions related to stock compensation, partially offset by unfavorable impacts of non-deductible operating expenses and executive compensation expenses. Deferred Income Taxes We generate deferred tax assets primarily as a result of write-downs of inventory and deferred preservation costs, accruals for product and tissue processing liability claims, investment and asset impairments, and operating losses. We acquired significant deferred tax assets, primarily net operating loss carryforwards, from our acquisitions of JOTEC GmbH (“JOTEC”) and its subsidiaries in 2017, On-X in 2016, Hemosphere, Inc. in 2012, and Cardiogenesis Corporation in 2011. We believe utilization of these net operating losses will not have a material impact on income taxes for the 2019 tax year. As of March 31, 2019 we maintained a total of $3.4 million in valuation allowances against deferred tax assets, primarily related to state net operating loss carryforwards, and had a net deferred tax liability of $22.2 million. As of December 31, 2018 we had a total of $ 3.4 million in valuation allowances against deferred tax assets, primarily related to state net operating loss carryforwards, and a net deferred tax liability of $ 23.2 million. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 7. Leases In February 2016 the FASB amended its ASC and created a new Topic 842, Leases. The final guidance requires lessees to recognize a right-of-use asset and a lease liability for all long-term leases at the commencement date and recognize expenses on their statements of income similar to the current Topic 840, Leases. It is effective for fiscal years and interim periods beginning after December 15, 2018 and early adoption was permitted. We adopted the new ASC 842, Leases effective January 1, 2019 using the modified retrospective approach, which allows application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented. Therefore, no changes have been made to the 2018 financial statements. The adoption of this standard resulted in the recognition of operating lease agreements with a net present value of $22.7 million, and corresponding right-of-use assets obtained in the same amount, at January 1, 2019. The leases were recognized with a weighted average discount rate of 5.5% and a weighted average remaining lease term of six years. In addition, deferred rent obligations of approximately $2.4 million recognized under prior lease rules were offset against the corresponding right-of-use asset and will be reflected in amortization over the remaining life of the lease. Our operating and finance lease liabilities result from the lease of land and buildings that comprise our corporate headquarters, various manufacturing facilities and related space, leases on company vehicles, and leases on a variety of office and other equipment. Our leases do not include terms or conditions which would result in variable lease payments other than for small office equipment leases with an additional charge for volume of usage. These incremental payments are excluded from our calculation of lease liability and the related right-of-use asset. Our leases have remaining lease terms of one year up to 11 years, some of which have options to extend the leases for up to 29 years and one lease contains a termination option with a two -year notice requirement. We do not include option terms in the determination of lease liabilities and the related right-of-use assets until we determine the exercise of the option is reasonably certain. Our leases do not contain residual value guarantee provisions or other restrictions or financial covenant provisions. The adoption of the new leasing standard had no significant impact on covenants or other provisions of our current term and revolver loan facility agreements. We exercised judgment in the adoption of the new leasing standard, including the determination of whether a financial arrangement includes a lease and in determining the appropriate discount rates to be applied to leases based on our general collateralized credit standing and the geographical market considerations impacting lease rates across all locations. When available, we use the implicit discount rate in the lease contract to discount lease payments to present value. If an implicit discount rate is not available in the lease contract, we used our incremental borrowing rate. We have elected the package of practical expedients permitted under the transition guidance of the new leasing standard which includes a provision which allows us to carry forward the historical lease classification of identified leasing arrangements and not reassess (i) classification for any existing leases, (ii) whether any expired or existing agreements are or contain a lease, or (iii) whether any initial direct costs qualified for capitalization. We have also elected the practical expedients that allow us to omit leases with initial terms of 12 months or less from our balance sheet, which are expensed on a straight-line basis over the life of the lease. We have elected not to separate lease and non-lease components for future leases. On March 8, 2019 we executed a modification to extend the lease of our On-X manufacturing facilities. This modification resulted in an increase in the net present value and corresponding right-of-use asset of $3.7 million, using a discount rate of 5.83% . We have not executed any material lease arrangements which have not commenced. We do not have any related party leasing arrangements. We sublease, on an operating lease basis, two small unused office space facilities near our corporate office. Total annual rental income for these facilities is approximately $910,000 . Supplemental consolidated balance sheet information related to leases was as follows (in millions, except lease term and discount rate): Operating leases: March 31, 2019 Operating lease right-of-use assets $ 24,160 Accumulated amortization (1,199) Operating lease right-of-use assets, net $ 22,961 Current maturities of operating leases $ 4,982 Non-current maturities of operating lease 19,902 Total operating lease liabilities $ 24,884 Finance leases: Property and equipment, at cost $ 7,530 Accumulated amortization (1,075) Property and equipment, net $ 6,455 Current maturities of finance leases $ 678 Non-current maturities of finance leases 5,690 Total finance lease liabilities $ 6,368 Weighted average remaining lease term (in years): Operating leases 6.2 Finance leases 11.2 Weighted average discount rate: Operating leases 5.5% Finance leases 2.0% Current maturities of finance leases are included as a component of Accrued Expenses and Other and non-current maturities of finance leases are included as a component of Other Long-Term Liabilities on our Summary Consolidated Balance Sheets. A summary of lease expenses for our finance and operating leases included in General, Administrative, and Marketing Expenses on our Summary Consolidated Statements of Operations and Comprehensive (Loss) Income are as follows (in thousands): Three Months Ended March 31, 2019 Amortization of property and equipment $ 211 Interest expense on finance leases 32 Total finance lease expense 243 Operating lease expense 1,550 Short-term lease expense - Sublease income (228) Total lease expense $ 1,565 A summary of our supplemental cash flow information is as follows (in thousands): Three Months Ended Cash paid for amounts included in the measurement of lease liabilities: March 31, 2019 Operating cash flows for finance leases $ 32 Operating cash flows for operating leases 1,636 Financing cash flows for finance leases 172 Future minimum lease payments and sublease rental income are as follows (in thousands): Finance Operating Sublease Leases Leases Income Remainder of 2019 $ 627 $ 4,396 $ 684 2020 675 6,046 921 2021 628 5,607 930 2022 575 3,343 380 2023 575 2,321 -- Thereafter 4,023 7,382 -- Total minimum lease payments $ 7,103 $ 29,095 $ 2,915 Less amount representing interest (735) (4,211) Present value of net minimum lease payments 6,368 24,884 Less current maturities (678) (4,982) Lease liabilities, less current maturities $ 5,690 $ 19,902 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Debt | 8. Debt Credit Agreement On December 1, 2017 we entered into a credit and guaranty agreement for a new $255.0 million senior secured credit facility, consisting of a $225.0 million secured term loan facility (the “Term Loan Facility”) and a $30.0 million secured revolving credit facility (“the Revolving Credit Facility” and, together with the Term Loan Facility, the “Credit Agreement”). We and each of our existing domestic subsidiaries (subject to certain exceptions and exclusions) guarantee the obligations under the Credit Agreement (the “Guarantors”). The Credit Agreement is secured by a security interest in substantially all existing and after-acquired real and personal property (subject to certain exceptions and exclusions) of us and the Guarantors. On December 1, 2017 we borrowed the entire $225.0 million Term Loan Facility. The proceeds of the Term Loan Facility were used along with cash on hand and shares of CryoLife common stock to (i) fund the previously announced acquisition of JOTEC and its subsidiaries (the “JOTEC Acquisition”), (ii) pay certain fees and expenses related to the JOTEC Acquisition and the Credit Agreement, and (iii) pay the outstanding balance of our prior credit facility. The Revolving Credit Facility is undrawn following the JOTEC Acquisition and may be used for working capital, capital expenditures, acquisitions permitted under the Credit Agreement, and other general corporate purposes pursuant to the terms of the Credit Agreement. The loan under the Term Loan Facility is repayable on a quarterly basis according to the amortization provisions set forth in the Credit Agreement. We have the right to repay the loan under the Credit Agreement in whole or in part at any time. Amounts repaid in respect of the loan under the Term Loan Facility may not be reborrowed. Amounts repaid in respect of the loan under the Revolving Credit Facility may be reborrowed. All outstanding principal and interest in respect of (i) the Term Loan Facility must be repaid on or before December 1, 2024 and (ii) the Revolving Credit Facility must be repaid on or before December 1, 2022 . In October 2018 we finalized an amendment to the Credit Agreement to reprice interest rates, resulting in a reduction in the interest rate margins over base rates on the Term Loan Facility. The loan under the Term Loan Facility bears interest, at our option, at a floating annual rate equal to either the base rate, plus a margin of 2.25% , or LIBOR, plus a margin of 3.25% . Prior to the repricing, the optional floating annual rate was equal to either the base rate plus a margin of 3.00% , or LIBOR, plus a margin of 4.00% . The loan under the Revolving Credit Facility bears interest, at our option, at a floating annual rate equal to either the base rate, plus a margin of between 3.00% and 3.25% , depending on our consolidated leverage ratio, or LIBOR, plus a margin of between 4.00% and 4.25% , depending on our consolidated leverage ratio. While a payment or bankruptcy event of default exists, we are obligated to pay a per annum default rate of interest of 2.00% in excess of the interest rate otherwise payable with respect to the overdue principal amount of any loans outstanding and overdue interest payments and other overdue fees and amounts. As of March 31, 2019 the aggregate interest rate was 5.85% per annum. We are obligated to pay an unused commitment fee equal to 0.50% of the unutilized portion of the revolving loans. In addition, we are also obligated to pay other customary fees for a credit facility of this size and type. The Credit Agreement contains certain customary affirmative and negative covenants, including covenants that limit our ability and the ability of our subsidiaries to, among other things, grant liens, incur debt, dispose of assets, make loans and investments, make acquisitions, make certain restricted payments, merge or consolidate, change their business or accounting or reporting practices, in each case subject to customary exceptions for a credit facility of this size and type. In addition, with respect to the Revolving Credit Facility, when the principal amount of loans outstanding thereunder is in excess of 25% of the Revolving Credit Facility, the Credit Agreement requires us to comply with a specified maximum first lien net leverage ratio. The Credit Agreement prohibits the payment of certain restricted payments, including cash dividends. The Credit Agreement includes certain customary events of default that include, among other things, non-payment of principal, interest, or fees; inaccuracy of representations and warranties; breach of covenants; cross-default to certain material indebtedness; bankruptcy and insolvency; and change of control. Upon the occurrence and during the continuance of an event of default, the lenders may declare all outstanding principal and accrued but unpaid interest under the Credit Agreement immediately due and payable and may exercise the other rights and remedies provided under the Credit Agreement and related loan documents. As of March 31, 2019 and December 31, 2018 there were no outstanding balances on our Revolving Credit Facility and the remaining availability was $30.0 million. Government Supported Bank Debt In June 2015 JOTEC obtained two loans from Sparkasse Zollernalb, which are government sponsored by the Kreditanstalt für Wiederaufbau Bank (“KFW”). Both KFW loans have a term of nine years and the interest rates are 2.45% and 1.40% . Loan Balances The short-term and long-term balances of our term loan and other borrowings were as follows (in thousands): March 31, December 31, 2019 2018 Term loan balance $ 222,187 $ 222,750 2.45% Sparkasse Zollernalb (KFW Loan 1) 1,683 1,318 1.40% Sparkasse Zollernalb (KFW Loan 2) 1,206 1,885 Total loan balance 225,076 225,953 Less unamortized loan origination costs (8,663) (9,072) Net borrowings 216,413 216,881 Less short-term loan balance (1,153) (1,160) Long-term loan balance $ 215,260 $ 215,721 Interest Expense Interest expense was $ 3.9 million for the three months ended March 31, 2019 , as compared to $3.7 million for the three months ended March 31, 2018 . Interest expense includes interest on debt and uncertain tax positions in both periods. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 9. Commitments and Contingencies Liability Claims Our estimated unreported loss liability was $1.8 million and $1.7 million as of March 31, 2019 and December 31, 2018 , respectively. As of March 31, 2019 and December 31, 2018 , the related recoverable insurance amounts were $853,000 and $693,000 , respectively. We accrue our estimate of unreported product and tissue processing liability claims as a component of other long ‑term liabilities and record the related recoverable insurance amount as a component of other long ‑term assets, as appropriate. Further analysis indicated that the estimated liability as of March 31, 2019 could have been as high as $3.6 million, after including a reasonable margin for statistical fluctuations calculated based on actuarial simulation techniques. Employment Agreements The employment agreement of our Chairman, President, and Chief Executive Officer (“CEO”), Mr. J. Patrick Mackin, provides for a severance payment, which would become payable upon the occurrence of certain employment termination events, including termination by us without cause. PerClot Technology On September 28, 2010 we entered into a worldwide distribution agreement (the “Distribution Agreement”) and a license and manufacturing agreement (the “License Agreement”) with Starch Medical, Inc. (“SMI”), for PerClot ® , a polysaccharide hemostatic agent used in surgery. The Distribution Agreement has a term of 15 years but can be terminated for any reason before the expiration date by us by providing 180 days’ notice. The Distribution Agreement also contains minimum purchase requirements that expire upon the termination of the Distribution Agreement or following U.S. regulatory approval for PerClot. Separate and apart from the terms of the Distribution Agreement, pursuant to the License Agreement, as amended by a September 2, 2011 technology transfer agreement, we can manufacture and sell PerClot, assuming appropriate regulatory approvals, in the U.S. and certain other jurisdictions and may be required to pay royalties to SMI at certain rates on net revenues of products. We may make contingent payments to SMI of up to $1.0 million if certain U.S. regulatory and certain commercial milestones are achieved. We are conducting our pivotal clinical trial to gain approval to commercialize PerClot for surgical indications in the U.S. Enrollment was completed in January 2019. We anticipate Premarket Approval (“PMA”) submission to the U.S. Food and Drug Administration (“FDA”) in early 2020. As of March 31, 2019 we had $ 1.5 million in prepaid royalties, $2.3 million in intangible assets, net, and $1.3 million in property and equipment, net on our Summary Consolidated Balance Sheets related to the PerClot product line. If we do not ultimately pursue or receive FDA approval to commercialize PerClot in the U.S., these assets could be materially impaired in future periods. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 10. Revenue Recognition Sources of Revenue We have identified the following revenues disaggregated by revenue source: · Domestic Hospitals – direct sales of products and preservation services. · International Hospitals – direct sales of products and preservation services. · International Distributors – generally these contracts specify a geographic area that the distributor will service, terms and conditions of the relationship, and purchase targets for the next calendar year. · CardioGenesis Cardiac Laser Console Trials and Sales – CardioGenesis cardiac trialed laser consoles are delivered under separate agreements. For the three months ended March 31, 2019 and 2018 the sources of revenue were as follows (in thousands): Three Months Ended March 31, 2019 2018 (Unaudited) Domestic hospitals $ 35,611 $ 33,543 International hospitals 20,570 19,008 International distributors 9,610 8,052 CardioGenesis cardiac laser therapy 1,714 1,345 Total sources of revenue $ 67,505 $ 61,948 Also see segment and geographic disaggregation information in Note 13 below. Contract Balances We may generate contract assets during the pre-delivery design and manufacturing stage of E-xtra DESIGN ENGINEERING product order fulfillment. We assess the balance related to any arrangements in process and determine if the enforceable right to payment creates a material contract asset requiring disclosure. We also incur contract obligations on general customer purchase orders that have been accepted but unfulfilled. Due to the short duration of time between order acceptance and delivery of the related product or service, we have determined that the balance related to these contract obligations is generally immaterial at any point in time. We monitor the value of orders accepted but unfulfilled at the close of each reporting period to determine if disclosure is appropriate. The value of orders accepted but unfulfilled as of March 31, 2019 and 2018 were not material. |
Stock Compensation
Stock Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Stock Compensation [Abstract] | |
Stock Compensation | 11. Stock Compensation Overview We have stock option and stock incentive plans for employees and non-employee Directors that provide for grants of restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance stock units (“PSUs”), and options to purchase shares of our common stock at exercise prices generally equal to the fair value of such stock at the dates of grant. We also maintain a shareholder-approved Employee Stock Purchase Plan (the “ESPP”) for the benefit of our employees. The ESPP allows eligible employees to purchase common stock on a regular basis at the lower of 85% of the market price at the beginning or end of each offering period. Equity Grants During the three months ended March 31, 2019 the Compensation Committee of our Board of Directors (the “Committee”) authorized awards from approved stock incentive plans of RSUs to certain employees and RSAs and PSUs to certain Company officers, which, assuming that performance under the PSUs were to be achieved at target levels, together totaled 453,000 shares and had an aggregate grant date market value of $13.4 million. Two types of PSUs were granted in 2019, one with a short-term performance component and the other with a long-term performance component. If performance thresholds are met, the short-term PSUs granted in 2019 represent the right to receive up to 150% of the target number of shares of common stock. The performance component of the short-term PSU awards granted in 2019 is based on attaining specified levels of adjusted earnings before interest, taxes, depreciation, and amortization, (“EBITDA”), as defined in the PSU grant documents, for the 2019 calendar year. If performance thresholds are met, the long-term PSUs granted in 2019 represent the right to receive up to 288% of the target number of shares of common stock. The performance component of the long-term PSU awards granted in 2019 is based on attaining specified levels of adjusted revenue growth and gross margin, as defined in the PSU grant document, for the years 2019 through 2023. We currently believe that achievement of the performance component for both types of PSUs is probable, and we reevaluate this likelihood on a quarterly basis. During the three months ended March 31, 2018 the Committee authorized awards from approved stock incentive plans of RSUs to certain employees and RSAs and PSUs to certain Company officers, which, including PSUs at target levels, together totaled 273,000 shares of common stock and had an aggregate grant date market value of $5.9 million . The PSUs granted in 2018 represented the right to receive up to 150% of the target number of shares of common stock based on meeting performance thresholds. The performance component of PSU awards granted in 2018 was based on attaining specified levels of adjusted EBITDA, as defined in the PSU grant documents, for the 2018 calendar year. The PSUs granted in 2018 earned 80% of the target number of shares. The Committee authorized, from approved stock incentive plans, grants of stock options to purchase a total of 169,000 and 219,000 shares to certain Company officers during the three months ended March 31, 2019 and 2018 , respectively. The exercise prices of the options were equal to the closing stock prices on their respective grant dates. Employees purchased common stock totaling 24,000 shares and 36,000 shares in the three months ended March 31, 2019 and 2018 , respectively, through the ESPP. Stock Compensation Expense The following weighted ‑average assumptions were used to determine the fair value of options: Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Stock Options ESPP Options Stock Options ESPP Options Expected life of options 5.0 Years 0.5 Years 5.0 Years 0.5 Years Expected stock price volatility 0.40 0.39 0.40 0.35 Risk-free interest rate 2.54% 2.56% 2.64% 1.53% The following table summarizes total stock compensation expenses prior to the capitalization of amounts into deferred preservation and inventory costs (in thousands): Three Months Ended March 31, 2019 2018 RSA, RSU, and PSU expense $ 1,510 $ 948 Stock option and ESPP option expense 471 406 Total stock compensation expense $ 1,981 $ 1,354 Included in the total stock compensation expense, as applicable in each period, were expenses related to RSAs, RSUs, PSUs, and stock options issued in each respective year, as well as those issued in prior periods that continue to vest during the period, and compensation related to the ESPP. These amounts were recorded as stock compensation expense and were subject to our normal allocation of expenses to inventory costs and deferred preservation costs. We capitalized $132,000 in the three months ended March 31, 2019 and $106,000 in the three months ended March 31, 2018 , of the stock compensation expense into our inventory costs and deferred preservation costs. As of March 31, 2019 we had total unrecognized compensation costs of $18.0 million related to RSAs, RSUs, and PSUs and $3.4 million related to unvested stock options. As of March 31, 2019 this expense is expected to be recognized over a weighted-average period of 3.1 years for PSUs, 2.2 years for stock options, 1.9 years for RSUs, and 1.6 years for RSAs. |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Loss Per Common Share [Abstract] | |
Loss Per Common Share | 12. Loss Per Common Share The following table sets forth the computation of basic and diluted loss per common share (in thousands, except per share data): Three Months Ended March 31, Basic loss per common share 2019 2018 Net loss $ (297) $ (3,855) Net loss allocated to participating securities 2 38 Net loss allocated to common shareholders $ (295) $ (3,817) Basic weighted-average common shares outstanding 36,778 36,146 Basic loss per common share $ (0.01) $ (0.11) Three Months Ended March 31, Diluted loss per common share 2019 2018 Net loss $ (297) $ (3,855) Net loss allocated to participating securities 2 38 Net loss allocated to common shareholders $ (295) $ (3,817) Basic weighted-average common shares outstanding 36,778 36,146 Effect of dilutive stock options and awards -- -- Diluted weighted-average common shares outstanding 36,778 36,146 Diluted loss per common share $ (0.01) $ (0.11) We excluded stock options from the calculation of diluted weighted-average common shares outstanding if the per share value, including the sum of (i) the exercise price of the options and (ii) the amount of the compensation cost attributed to future services and not yet recognized, was greater than the average market price of the shares because the inclusion of these stock options would be antidilutive to loss per common share. Accordingly, for the three months ended March 31, 2019 and 2018 all stock options and awards were excluded from the calculation of diluted weighted-average common shares outstanding as these would be antidilutive due to the net loss. |
Segment And Geogrpahic Informat
Segment And Geogrpahic Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment And Geographic Information [Abstract] | |
Segment And Geographic Information | 13. Segment Information We have two reportable segments organized according to our products and services: Medical Devices and Preservation Services. The Medical Devices segment includes external revenues from product sales of BioGlue, JOTEC products, On-X products, CardioGenesis cardiac laser therapy, PerClot, and PhotoFix. The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues. There are no intersegment revenues. The primary measure of segment performance, as viewed by our management, is segment gross margin or net external revenues less cost of products and preservation services. We do not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below. The following table summarizes revenues, cost of products and preservation services, and gross margins for our operating segments (in thousands): Three Months Ended March 31, 2019 2018 Revenues: Medical devices $ 48,401 $ 43,598 Preservation services 19,104 18,350 Total revenues 67,505 61,948 Cost of products and preservation services: Medical devices 13,826 14,157 Preservation services 9,406 8,563 Total cost of products and preservation services 23,232 22,720 Gross margin: Medical devices 34,575 29,441 Preservation services 9,698 9,787 Total gross margin $ 44,273 $ 39,228 The following table summarizes net revenues by product and service (in thousands): Three Months Ended March 31, 2019 2018 Products: BioGlue $ 17,222 $ 15,970 JOTEC 15,954 14,460 On-X 11,731 10,309 CardioGenesis cardiac laser therapy 1,714 1,346 PerClot 1,050 972 PhotoFix 730 541 Total products 48,401 43,598 Preservation services: Cardiac tissue 8,930 8,103 Vascular tissue 10,174 10,247 Total preservation services 19,104 18,350 Total revenues $ 67,505 $ 61,948 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Financial Instruments [Abstract] | |
Summary Of Financial Instruments Measured At Fair Value | March 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,450 $ -- $ -- $ 1,450 Restricted securities: Money market funds 731 -- -- 731 Total assets $ 2,181 $ -- $ -- $ 2,181 December 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,445 $ -- $ -- $ 1,445 Restricted securities: Money market funds 747 -- -- 747 Total assets $ 2,192 $ -- $ -- $ 2,192 |
Cash Equivalents And Restrict_2
Cash Equivalents And Restricted Cash And Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash Equivalents And Restricted Cash And Securities [Abstract] | |
Summary Of Cash Equivalents And Restricted Cash And Securities | Unrealized Estimated Holding Market March 31, 2019 Cost Basis Gains Value Cash equivalents: Money market funds $ 1,450 $ -- $ 1,450 Restricted securities: Money market funds 731 -- 731 Unrealized Estimated Holding Market December 31, 2018 Cost Basis Gains Value Cash equivalents: Money market funds $ 1,445 $ -- $ 1,445 Restricted securities: Money market funds 747 -- 747 |
Inventories And Deferred Pres_2
Inventories And Deferred Preservation Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventories And Deferred Preservation Costs [Abstract] | |
Schedule Of Inventories | March 31, December 31, 2019 2018 Raw materials and supplies $ 16,762 $ 17,381 Work-in-process 4,487 3,858 Finished goods 22,875 24,239 Total inventories $ 44,124 $ 45,478 |
Schedule Of Deferred Preservation Costs | March 31, December 31, 2019 2018 Cardiac tissues $ 16,223 $ 15,972 Vascular tissues 16,412 17,202 Total deferred preservation costs $ 32,635 $ 33,174 |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Other Intangible Assets [Abstract] | |
Schedule Of Carrying Values Of Indefinite Lived Intangible Assets | March 31, December 31, 2019 2018 Goodwill $ 186,706 $ 188,781 In-process R&D 9,206 9,382 Procurement contracts and agreements 2,013 2,013 Trademarks 844 844 |
Schedule Of Goodwill By Reportable Segment | Medical Devices Segment Balance as of December 31, 2018 $ 188,781 Revaluation of goodwill denominated in foreign currency (2,075) Balance as of March 31, 2019 $ 186,706 |
Schedule Of Gross Carrying Values, Accumulated Amortization, And Approximate Amortization Period Of Definite Lived Intangible Assets | Gross Carrying Accumulated Amortization March 31, 2019 Value Amortization Period Acquired technology $ 133,187 $ 18,708 11 – 22 Years Customer lists and relationships 31,131 5,444 13 – 22 Years Distribution and manufacturing rights and know-how 4,059 2,179 11 – 15 Years Patents 3,622 2,979 17 Years Other 1,350 290 3 – 5 Years Gross Carrying Accumulated Amortization December 31, 2018 Value Amortization Period Acquired technology $ 134,999 $ 16,815 11 – 22 Years Customer lists and relationships 31,169 5,068 13 – 22 Years Distribution and manufacturing rights and know-how 4,059 2,107 11 – 15 Years Patents 3,656 2,970 17 Years Other 1,154 235 3 – 5 Years |
Summary Of Amortization Expense | Three Months Ended March 31, 2019 2018 Amortization expense $ 2,579 $ 2,735 |
Scheduled Amortization Of Intangible Assets For Next Five Years | Remainder of 2019 2020 2021 2022 2023 2024 Total Amortization expense $ 7,727 $ 10,151 $ 10,129 $ 9,583 $ 9,173 $ 8,948 $ 55,711 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Operating leases: March 31, 2019 Operating lease right-of-use assets $ 24,160 Accumulated amortization (1,199) Operating lease right-of-use assets, net $ 22,961 Current maturities of operating leases $ 4,982 Non-current maturities of operating lease 19,902 Total operating lease liabilities $ 24,884 Finance leases: Property and equipment, at cost $ 7,530 Accumulated amortization (1,075) Property and equipment, net $ 6,455 Current maturities of finance leases $ 678 Non-current maturities of finance leases 5,690 Total finance lease liabilities $ 6,368 Weighted average remaining lease term (in years): Operating leases 6.2 Finance leases 11.2 Weighted average discount rate: Operating leases 5.5% Finance leases 2.0% |
Summary Of Lease Costs | Three Months Ended March 31, 2019 Amortization of property and equipment $ 211 Interest expense on finance leases 32 Total finance lease expense 243 Operating lease expense 1,550 Short-term lease expense - Sublease income (228) Total lease expense $ 1,565 |
Schedule Of Supplemental Cash Flow Information Related To Leases | Three Months Ended Cash paid for amounts included in the measurement of lease liabilities: March 31, 2019 Operating cash flows for finance leases $ 32 Operating cash flows for operating leases 1,636 Financing cash flows for finance leases 172 |
Schedule Of Minimum Lease Payments For Finance, Operating, And Sublease Income Leases | Finance Operating Sublease Leases Leases Income Remainder of 2019 $ 627 $ 4,396 $ 684 2020 675 6,046 921 2021 628 5,607 930 2022 575 3,343 380 2023 575 2,321 -- Thereafter 4,023 7,382 -- Total minimum lease payments $ 7,103 $ 29,095 $ 2,915 Less amount representing interest (735) (4,211) Present value of net minimum lease payments 6,368 24,884 Less current maturities (678) (4,982) Lease liabilities, less current maturities $ 5,690 $ 19,902 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Schedule Of Short-Term And Long-Term Balances Of Term Loan | March 31, December 31, 2019 2018 Term loan balance $ 222,187 $ 222,750 2.45% Sparkasse Zollernalb (KFW Loan 1) 1,683 1,318 1.40% Sparkasse Zollernalb (KFW Loan 2) 1,206 1,885 Total loan balance 225,076 225,953 Less unamortized loan origination costs (8,663) (9,072) Net borrowings 216,413 216,881 Less short-term loan balance (1,153) (1,160) Long-term loan balance $ 215,260 $ 215,721 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation Of Revenue | Three Months Ended March 31, 2019 2018 (Unaudited) Domestic hospitals $ 35,611 $ 33,543 International hospitals 20,570 19,008 International distributors 9,610 8,052 CardioGenesis cardiac laser therapy 1,714 1,345 Total sources of revenue $ 67,505 $ 61,948 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stock Compensation [Abstract] | |
Schedule Of Weighted-Average Assumptions Used To Determine The Fair Value Of Options | Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Stock Options ESPP Options Stock Options ESPP Options Expected life of options 5.0 Years 0.5 Years 5.0 Years 0.5 Years Expected stock price volatility 0.40 0.39 0.40 0.35 Risk-free interest rate 2.54% 2.56% 2.64% 1.53% |
Summary Of Total Stock Compensation Expenses | Three Months Ended March 31, 2019 2018 RSA, RSU, and PSU expense $ 1,510 $ 948 Stock option and ESPP option expense 471 406 Total stock compensation expense $ 1,981 $ 1,354 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Loss Per Common Share [Abstract] | |
Computation Of Basic And Diluted (Loss) Income Per Common Share | Three Months Ended March 31, Basic loss per common share 2019 2018 Net loss $ (297) $ (3,855) Net loss allocated to participating securities 2 38 Net loss allocated to common shareholders $ (295) $ (3,817) Basic weighted-average common shares outstanding 36,778 36,146 Basic loss per common share $ (0.01) $ (0.11) Three Months Ended March 31, Diluted loss per common share 2019 2018 Net loss $ (297) $ (3,855) Net loss allocated to participating securities 2 38 Net loss allocated to common shareholders $ (295) $ (3,817) Basic weighted-average common shares outstanding 36,778 36,146 Effect of dilutive stock options and awards -- -- Diluted weighted-average common shares outstanding 36,778 36,146 Diluted loss per common share $ (0.01) $ (0.11) |
Segment And Geographic Informat
Segment And Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment And Geographic Information [Abstract] | |
Revenues, Cost Of Products And Services, And Gross Margins For Operating Segments | Three Months Ended March 31, 2019 2018 Revenues: Medical devices $ 48,401 $ 43,598 Preservation services 19,104 18,350 Total revenues 67,505 61,948 Cost of products and preservation services: Medical devices 13,826 14,157 Preservation services 9,406 8,563 Total cost of products and preservation services 23,232 22,720 Gross margin: Medical devices 34,575 29,441 Preservation services 9,698 9,787 Total gross margin $ 44,273 $ 39,228 |
Summary Of Net Revenues By Product And Service | Three Months Ended March 31, 2019 2018 Products: BioGlue $ 17,222 $ 15,970 JOTEC 15,954 14,460 On-X 11,731 10,309 CardioGenesis cardiac laser therapy 1,714 1,346 PerClot 1,050 972 PhotoFix 730 541 Total products 48,401 43,598 Preservation services: Cardiac tissue 8,930 8,103 Vascular tissue 10,174 10,247 Total preservation services 19,104 18,350 Total revenues $ 67,505 $ 61,948 |
Basis Of Presentation (Narrativ
Basis Of Presentation (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net present value of operating lease aggrements | $ 24,884 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net present value of operating lease aggrements | $ 22,700 |
Financial Instruments (Summary
Financial Instruments (Summary Of Financial Instruments Measured At Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 2,181 | $ 2,192 |
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,450 | 1,445 |
Restricted securities | 731 | 747 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 2,181 | 2,192 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,450 | 1,445 |
Restricted securities | 731 | 747 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | ||
Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Restricted securities | ||
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | ||
Level 3 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Restricted securities |
Cash Equivalents And Restrict_3
Cash Equivalents And Restricted Cash And Securities (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities | $ 731,000 | $ 747,000 | |
Gross realized gains or losses on cash equivalents | 0 | $ 0 | |
Money Market Funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities | 731,000 | 747,000 | |
Maturity Date Within Three Months [Member] | Money Market Funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities | $ 731,000 | 512,000 | |
Maturity Date Between Three Months And One Year [Member] | Money Market Funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities | $ 235,000 | ||
Minimum [Member] | Maturity Date Between Three Months And One Year [Member] | Money Market Funds [Member] | Measurement Input, Expected Term [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities maturity period | 3 months | ||
Maximum [Member] | Maturity Date Within Three Months [Member] | Money Market Funds [Member] | Measurement Input, Expected Term [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities maturity period | 3 months | 3 months | |
Maximum [Member] | Maturity Date Between Three Months And One Year [Member] | Money Market Funds [Member] | Measurement Input, Expected Term [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities maturity period | 1 year |
Cash Equivalents And Restrict_4
Cash Equivalents And Restricted Cash And Securities (Summary Of Cash Equivalents And Restricted Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Cash and Cash Equivalents [Line Items] | ||||
Cash Equivalents, Cost Basis | $ 41,075 | $ 42,236 | $ 27,392 | $ 40,753 |
Restricted Securities, Cost Basis | 731 | 747 | ||
Money Market Funds [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash Equivalents, Cost Basis | 1,450 | 1,445 | ||
Restricted Securities, Cost Basis | 731 | 747 | ||
Unrealized Holding Gains | ||||
Cash Equivalents, Estimated Market Value | 1,450 | 1,445 | ||
Restricted Securities, Estimated Market Value | $ 731 | $ 747 |
Inventories And Deferred Pres_3
Inventories And Deferred Preservation Costs (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Consignment inventory | $ 11.3 | $ 11.2 |
Domestic [Member] | ||
Inventory [Line Items] | ||
Consignment inventory percentage | 54.00% | 55.00% |
Foreign [Member] | ||
Inventory [Line Items] | ||
Consignment inventory percentage | 46.00% | 45.00% |
Inventories And Deferred Pres_4
Inventories And Deferred Preservation Costs (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventories And Deferred Preservation Costs [Abstract] | ||
Raw materials and supplies | $ 16,762 | $ 17,381 |
Work-in-process | 4,487 | 3,858 |
Finished goods | 22,875 | 24,239 |
Total inventories | $ 44,124 | $ 45,478 |
Inventories And Deferred Pres_5
Inventories And Deferred Preservation Costs (Schedule Of Deferred Preservation Costs) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total deferred preservation costs | $ 32,635 | $ 33,174 |
Cardiac Tissues [Member] | ||
Total deferred preservation costs | 16,223 | 15,972 |
Vascular Tissues [Member] | ||
Total deferred preservation costs | $ 16,412 | $ 17,202 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets (Schedule Of Carrying Values Of Indefinite Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 186,706 | $ 188,781 |
In Process R&D [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Total indefinite lived intangible assets | 9,206 | 9,382 |
Procurement Contracts And Agreements [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Total indefinite lived intangible assets | 2,013 | 2,013 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Total indefinite lived intangible assets | $ 844 | $ 844 |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets (Schedule Of Goodwill By Reportable Segment) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill And Other Intangible Assets [Abstract] | |
Beginning balance | $ 188,781 |
Revaluation of goodwill denominated in foreign currency | (2,075) |
Ending balance | $ 186,706 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets (Schedule Of Gross Carrying Values, Accumulated Amortization, And Approximate Amortization Period Of Definite Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 133,187 | $ 134,999 |
Accumulated amortization | 18,708 | 16,815 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,622 | 3,656 |
Accumulated amortization | 2,979 | 2,970 |
Distribution And Manufacturing Rights And Know-How [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,059 | 4,059 |
Accumulated amortization | 2,179 | 2,107 |
Customer Lists And Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 31,131 | 31,169 |
Accumulated amortization | 5,444 | 5,068 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,350 | 1,154 |
Accumulated amortization | $ 290 | $ 235 |
Minimum [Member] | Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 11 years | 11 years |
Minimum [Member] | Distribution And Manufacturing Rights And Know-How [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 11 years | 11 years |
Minimum [Member] | Customer Lists And Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 13 years | 13 years |
Minimum [Member] | Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | 3 years |
Maximum [Member] | Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 22 years | 22 years |
Maximum [Member] | Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 17 years | 17 years |
Maximum [Member] | Distribution And Manufacturing Rights And Know-How [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 15 years | 15 years |
Maximum [Member] | Customer Lists And Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 22 years | 22 years |
Maximum [Member] | Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | 5 years |
Goodwill And Other Intangible_6
Goodwill And Other Intangible Assets (Summary Of Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill And Other Intangible Assets [Abstract] | ||
Amortization expense | $ 2,579 | $ 2,735 |
Goodwill And Other Intangible_7
Goodwill And Other Intangible Assets (Scheduled Amortization Of Intangible Assets For Next Five Years) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Goodwill And Other Intangible Assets [Abstract] | |
Remainder of 2019 | $ 7,727 |
2020 | 10,151 |
2021 | 10,129 |
2022 | 9,583 |
2023 | 9,173 |
2024 | 8,948 |
Total | $ 55,711 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||
Effective income tax rate | 82.00% | 44.00% | |
Valuation allowances against deferred tax assets | $ 3.4 | $ 3.4 | |
Net deferred tax liability | $ 22.2 | $ 23.2 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Mar. 08, 2019USD ($) | Jan. 01, 2019USD ($) | |
Operating Leased Assets [Line Items] | ||||
Net present value of operating lease aggrements | $ 24,884 | |||
Weighted average discount rate | 5.50% | |||
Weighted average remaining lease term | 6 years 2 months 12 days | |||
Deferred rent obligations | $ 2,400 | |||
Operating lease, option to terminate, period | 29 years | |||
Operating lease, termination option, notice period requirement | 2 years | |||
Right-of-use asset | $ 22,961 | $ 0 | ||
Number of subleases | item | 2 | |||
Sublease income | $ 228 | $ 910 | ||
Minimum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Lease terms | 1 year | |||
Maximum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Lease terms | 11 years | |||
Lease period of omitted leases | 12 months | |||
On-X [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Right-of-use asset | $ 3,700 | |||
Discount rate | 5.83% | |||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Net present value of operating lease aggrements | $ 22,700 |
Leases (Schedule Of Supplementa
Leases (Schedule Of Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 24,160 | |
Accumulated amortization | (1,199) | |
Operating lease right-of-use assets, net | 22,961 | $ 0 |
Current maturities of operating leases | 4,982 | |
Non-current operating lease obligations | 19,902 | $ 0 |
Total operating lease liabilities | 24,884 | |
Finance leases, Property and equipment, at cost | 7,530 | |
Finance leases, Accumulated amortization | (1,075) | |
Finance leases, property and equipment, net | 6,455 | |
Current maturities of finance leases | 678 | |
Non-current maturities of finance leases | 5,690 | |
Total finance lease liabilities | $ 6,368 | |
Weighted average remaining lease term (in years): Operating leases | 6 years 2 months 12 days | |
Weighted average remaining lease term (in years): Finance leases | 11 years 2 months 12 days | |
Weighted average discount rate: Operating leases | 5.50% | |
Weighted average discount rate: Finance leases | 2.00% |
Leases (Summary Of Lease Costs)
Leases (Summary Of Lease Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Amortization of property and equipment | $ 211 | |
Interest expense on finance leases | 32 | |
Total finance lease expense | 243 | |
Operating lease expense | 1,550 | |
Sublease income | (228) | $ (910) |
Total lease expense | $ 1,565 |
Leases (Schedule Of Supplemen_2
Leases (Schedule Of Supplemental Cash Flow Information Related To Leases) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows for finance leases | $ 32 |
Operating cash flows for operating leases | 1,636 |
Financing cash flows for finance leases | $ 172 |
Leases (Schedule Of Minimum Lea
Leases (Schedule Of Minimum Lease Payments For Finance, Operating, And Sublease Income Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Finance Leases, Remainder of 2019 | $ 627 | |
Finance Leases, 2020 | 675 | |
Finance Leases, 2021 | 628 | |
Finance Leases, 2022 | 575 | |
Finance Leases, 2023 | 575 | |
Finance Leases, Thereafter | 4,023 | |
Finance Leases, Total minimum lease payments | 7,103 | |
Finance Leases, Less amount representing interest | (735) | |
Finance Leases, Present value of net minimum lease payments | 6,368 | |
Finance Leases, Less current maturities | (678) | |
Finance Leases, Lease liabilities, less current maturities | 5,690 | |
Operating Leases, Remainder of 2019 | 4,396 | |
Operating Leases, 2020 | 6,046 | |
Operating Leases, 2021 | 5,607 | |
Operating Leases, 2022 | 3,343 | |
Operating Leases, 2023 | 2,321 | |
Operating Leases, Thereafter | 7,382 | |
Operating Leases, Total minimum lease payments | 29,095 | |
Operating Leases, Less amount representing interest | (4,211) | |
Operating Leases, Present value of net minimum lease payments | 24,884 | |
Operating Leases, Less current maturities | (4,982) | |
Operating Leases, Lease liabilities, less current maturities | 19,902 | $ 0 |
Sublease Income, Remainder of 2019 | 684 | |
Sublease Income, 2020 | 921 | |
Sublease Income, 2021 | 930 | |
Sublease Income, 2022 | 380 | |
Sublease Income, Total minimum lease payments | $ 2,915 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 01, 2017 | |
Line of Credit Facility [Line Items] | ||||||
Term loan balance | $ 225,076,000 | $ 225,953,000 | ||||
Credit facility default interest rate | 2.00% | |||||
Credit facility aggregate interest rate | 5.85% | |||||
Credit facility commitment fee percentage | 0.50% | |||||
Line of credit facility, percentage threshold of principal amount outstanding | 25.00% | |||||
Interest expense | $ 3,900,000 | $ 3,700,000 | ||||
Government Sponsored Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Loan term | 9 years | |||||
2.45% Sparkasse Zollernalb (KFW Loan 1) [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Term loan balance | 1,683,000 | 1,318,000 | ||||
Interest rate on amounts borrowed | 2.45% | |||||
1.40% Sparkasse Zollernalb (KFW Loan 2) [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Term loan balance | $ 1,206,000 | 1,885,000 | ||||
Interest rate on amounts borrowed | 1.40% | |||||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility aggregate commitments | $ 30,000,000 | |||||
Credit facility maturity date | Dec. 1, 2022 | |||||
Credit facility outstanding balance | $ 0 | 0 | ||||
Credit facility remaining availability | $ 30,000,000 | |||||
Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility margin | 3.00% | |||||
Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility margin | 4.00% | |||||
Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility margin | 3.25% | |||||
Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility margin | 4.25% | |||||
Senior Secured Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility aggregate commitments | 255,000,000 | |||||
Term Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Term loan balance | $ 222,187,000 | $ 222,750,000 | $ 225,000,000 | |||
Credit facility maturity date | Dec. 1, 2024 | |||||
Term Loan [Member] | Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility margin | 2.25% | 3.00% | ||||
Term Loan [Member] | LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility margin | 3.25% | 4.00% |
Debt (Schedule Of Short-Term An
Debt (Schedule Of Short-Term And Long-Term Balances Of Term Loan) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 01, 2017 |
Debt Instrument [Line Items] | |||
Term loan balance | $ 225,076 | $ 225,953 | |
Less unamortized loan origination costs | (8,663) | (9,072) | |
Net borrowings | 216,413 | 216,881 | |
Less short-term loan balance | (1,153) | (1,160) | |
Long-term loan balance | 215,260 | 215,721 | |
2.45% Sparkasse Zollernalb (KFW Loan 1) [Member] | |||
Debt Instrument [Line Items] | |||
Term loan balance | 1,683 | 1,318 | |
1.40% Sparkasse Zollernalb (KFW Loan 2) [Member] | |||
Debt Instrument [Line Items] | |||
Term loan balance | 1,206 | 1,885 | |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Term loan balance | $ 222,187 | $ 222,750 | $ 225,000 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Other Commitments [Line Items] | ||
Sublease income | $ 228 | $ 910 |
Unreported loss liability | 1,800 | 1,700 |
Recoverable insurance amounts | 853 | 693 |
Property and equipment, net | 30,254 | $ 31,028 |
PerClot [Member] | ||
Other Commitments [Line Items] | ||
Prepaid royalties | 1,500 | |
Net intangible assets | 2,300 | |
Property and equipment, net | 1,300 | |
Maximum [Member] | ||
Other Commitments [Line Items] | ||
Estimated loss | $ 3,600 | |
Starch Technology Purchase [Member] | ||
Other Commitments [Line Items] | ||
Term of distribution agreement | 15 years | |
Expected future contingent payment amounts | $ 1,000 | |
Number of notice days | 180 days |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total sources of revenue | $ 67,505 | $ 61,948 |
Domestic Hospitals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total sources of revenue | 35,611 | 33,543 |
International Hospitals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total sources of revenue | 20,570 | 19,008 |
International Distributors [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total sources of revenue | 9,610 | 8,052 |
CardioGenesis Cardiac Laser Therapy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total sources of revenue | $ 1,714 | $ 1,345 |
Stock Compensation (Narrative)
Stock Compensation (Narrative) (Details) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)itemshares | Mar. 31, 2018USD ($)shares | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance stock unit grants | item | 2 | ||
Capitalized stock compensation expense | $ 132 | $ 106 | |
ESPP Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ESPP, percentage of market price for eligible employees | 85.00% | ||
Employees purchased common stock, shares | shares | 24 | 36 | |
RSAs, RSUs, And PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized awards from approved stock incentive plans | shares | 453 | 273 | |
Aggregate grant date market value | $ 13,400 | $ 5,900 | |
Unrecognized compensation costs | 18,000 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 3,400 | ||
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | 2 years 2 months 12 days | ||
Restricted Stock Awards (RSAs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | 1 year 7 months 6 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | 1 year 10 months 24 days | ||
Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target number of shares of common stock granted as Performance Stock Units | 80.00% | ||
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | 3 years 1 month 6 days | ||
Maximum [Member] | Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target number of shares of common stock granted as Performance Stock Units | 150.00% | ||
Maximum [Member] | Short-term PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target number of shares of common stock granted as Performance Stock Units | 150.00% | ||
Maximum [Member] | Long-term PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target number of shares of common stock granted as Performance Stock Units | 288.00% | ||
Officers [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants of stock options | shares | 169 | 219 |
Stock Compensation (Schedule Of
Stock Compensation (Schedule Of Weighted-Average Assumptions Used To Determine The Fair Value Of Options) (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of options | 5 years | 5 years |
Expected stock price volatility | 0.40% | 0.40% |
Risk-free interest rate | 2.54% | 2.64% |
ESPP Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of options | 6 months | 6 months |
Expected stock price volatility | 0.39% | 0.35% |
Risk-free interest rate | 2.56% | 1.53% |
Stock Compensation (Summary Of
Stock Compensation (Summary Of Total Stock Compensation Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 1,981 | $ 1,354 |
RSA, RSU, And PSU Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | 1,510 | 948 |
Stock Option And ESPP Option Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 471 | $ 406 |
Loss Per Common Share (Computat
Loss Per Common Share (Computation Of Basic And Diluted (Loss) Income Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic (loss) income per common share | ||
Net loss | $ (297) | $ (3,855) |
Net loss allocated to participating securities | 2 | 38 |
Net loss allocated to common shareholders | $ (295) | $ (3,817) |
Basic weighted-average common shares outstanding | 36,778 | 36,146 |
Basic loss per common share | $ (0.01) | $ (0.11) |
Diluted (loss) income per common share | ||
Net loss | $ (297) | $ (3,855) |
Net loss allocated to participating securities | 2 | 38 |
Net loss allocated to common shareholders | $ (295) | $ (3,817) |
Basic weighted-average common shares outstanding | 36,778 | 36,146 |
Diluted weighted-average common shares outstanding | 36,778 | 36,146 |
Diluted loss per common share | $ (0.01) | $ (0.11) |
Segment And Geographic Inform_2
Segment And Geographic Information (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Revenues | $ | $ 67,505 | $ 61,948 |
Segment And Geographic Inform_3
Segment And Geographic Information (Revenues, Cost Of Products And Services, And Gross Margins For Operating Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 67,505 | $ 61,948 | |
Total cost of products and preservation services | 23,232 | 22,720 | |
Total gross margin | 44,273 | 39,228 | |
Goodwill | 186,706 | $ 188,781 | |
Operating Segments [Member] | Medical Devices [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 48,401 | 43,598 | |
Total cost of products and preservation services | 13,826 | 14,157 | |
Total gross margin | 34,575 | 29,441 | |
Operating Segments [Member] | Preservation Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 19,104 | 18,350 | |
Total cost of products and preservation services | 9,406 | 8,563 | |
Total gross margin | $ 9,698 | $ 9,787 |
Segment And Geographic Inform_4
Segment And Geographic Information (Summary Of Net Revenues By Product And Service) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Product Information [Line Items] | ||
Total revenues | $ 67,505 | $ 61,948 |
BioGlue And BioFoam [Member] | ||
Product Information [Line Items] | ||
Total revenues | 17,222 | 15,970 |
JOTEC [Member] | ||
Product Information [Line Items] | ||
Total revenues | 15,954 | 14,460 |
On-X [Member] | ||
Product Information [Line Items] | ||
Total revenues | 11,731 | 10,309 |
CardioGenesis Cardiac Laser Therapy [Member] | ||
Product Information [Line Items] | ||
Total revenues | 1,714 | 1,346 |
PerClot [Member] | ||
Product Information [Line Items] | ||
Total revenues | 1,050 | 972 |
PhotoFix [Member] | ||
Product Information [Line Items] | ||
Total revenues | 730 | 541 |
Cardiac Tissues [Member] | ||
Product Information [Line Items] | ||
Total revenues | 8,930 | 8,103 |
Vascular Tissues [Member] | ||
Product Information [Line Items] | ||
Total revenues | 10,174 | 10,247 |
Preservation Services [Member] | ||
Product Information [Line Items] | ||
Total revenues | 19,104 | 18,350 |
Operating Segments [Member] | Total Products [Member] | ||
Product Information [Line Items] | ||
Total revenues | 48,401 | 43,598 |
Operating Segments [Member] | Total Preservation Services [Member] | ||
Product Information [Line Items] | ||
Total revenues | $ 19,104 | $ 18,350 |