Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Jan. 09, 2015 | Apr. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | BIO REFERENCE LABORATORIES INC | ||
Entity Central Index Key | 792641 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Oct-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -21 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $623,605,643 | ||
Entity Common Stock, Shares Outstanding | 27,749,644 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and Cash Equivalents | $17,507 | $17,952 |
Accounts Receivable - Net | 263,346 | 206,261 |
Inventory | 20,791 | 19,095 |
Other Current Assets | 10,165 | 9,416 |
Deferred Tax Assets | 40,040 | 42,154 |
TOTAL CURRENT ASSETS | 351,849 | 294,878 |
PROPERTY AND EQUIPMENT - AT COST | 156,342 | 133,599 |
Less: Accumulated Depreciation | 89,954 | 67,950 |
PROPERTY AND EQUIPMENT - NET | 66,388 | 65,649 |
OTHER ASSETS: | ||
Investments in Unconsolidated Affiliate | 5,153 | 5,237 |
Deposits | 1,056 | 1,017 |
Goodwill - Net | 35,185 | 35,185 |
Intangible Assets - Net | 14,403 | 16,320 |
Other Assets | 1,415 | 1,165 |
Deferred Tax Asset | 3,414 | 2,077 |
TOTAL OTHER ASSETS | 60,626 | 61,001 |
TOTAL ASSETS | 478,863 | 421,528 |
CURRENT LIABILITIES: | ||
Accounts Payable | 71,166 | 61,614 |
Accrued Salaries and Commissions Payable | 15,822 | 19,601 |
Accrued Taxes and Expenses | 15,620 | 18,292 |
Other Short Term Acquisition Payable | 1,924 | 2,438 |
Revolving Note Payable - Bank | 33,380 | 26,139 |
Current Maturities of Long-Term Debt | 524 | 493 |
Capital Lease Obligations - Short-Term Portion | 6,128 | 5,185 |
TOTAL CURRENT LIABILITIES | 144,564 | 133,762 |
LONG-TERM LIABILITIES: | ||
Capital Lease Obligations - Long-Term Portion | 12,252 | 10,712 |
Long Term Debt - Net of Current Portion | 3,145 | 3,670 |
Long Term Acquisition Payable | 1,789 | |
TOTAL LONG-TERM LIABILITIES | 15,397 | 16,171 |
SHAREHOLDERS' EQUITY: | ||
Preferred Stock $.10 Par Value; Authorized 1,666,667 shares, including 3,000 shares of Series A Junior Preferred Stock None Issued | ||
Common Stock, $.01 Par Value; Authorized 35,000,000 shares: Issued and Outstanding 27,727,644 and 27,683,213 at January 31, 2014 and at October 31, 2013, respectively | 277 | 277 |
Additional Paid-In Capital | 39,979 | 39,430 |
Retained Earnings | 278,646 | 231,888 |
TOTAL SHAREHOLDERS' EQUITY | 318,902 | 271,595 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $478,863 | $421,528 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Preferred Stock, Par Value (in dollars per share) | $0.10 | $0.10 |
Preferred Stock, Authorized shares, including Series A Junior Preferred Stock | 1,666,667 | 1,666,667 |
Preferred Stock, Authorized shares | 1,666,667 | 1,666,667 |
Preferred Stock, Issued shares | 0 | 0 |
Common Stock, Par Value (in dollars per share) | $0.01 | $0.01 |
Common Stock, Authorized shares | 35,000,000 | 35,000,000 |
Common Stock, Issued shares | 27,727,644 | 27,683,213 |
Common Stock, Outstanding shares | 27,727,644 | 27,683,213 |
Series A Preferred Stock | ||
Preferred Stock, Authorized shares, including Series A Junior Preferred Stock | 3,000 | 3,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
NET REVENUES: | $832,282 | $715,354 | $614,255 |
COST OF SERVICES: | |||
Depreciation and Amortization | 19,515 | 15,598 | 13,101 |
Employee Related Expenses | 206,198 | 173,137 | 146,292 |
Reagents and Lab Supplies | 158,296 | 135,486 | 121,446 |
Other Cost of Services | 78,274 | 68,594 | 56,805 |
TOTAL COST OF SERVICES | 462,283 | 392,815 | 337,644 |
GROSS PROFIT ON REVENUES | 369,999 | 322,539 | 276,611 |
General and Administrative Expenses: | |||
Depreciation and Amortization | 5,649 | 4,141 | 3,562 |
Other General and Administrative Expenses | 208,934 | 177,508 | 154,928 |
Bad Debt Expense | 71,991 | 58,917 | 41,990 |
TOTAL GENERAL AND ADMIN. EXPENSES | 286,574 | 240,566 | 200,480 |
OPERATING INCOME | 83,425 | 81,973 | 76,131 |
OTHER (INCOME) EXPENSES: | |||
Interest Expense | 2,446 | 1,606 | 1,455 |
Other (Income) Expense | 83 | -612 | 323 |
Interest Income | -71 | -118 | -163 |
TOTAL OTHER (INCOME) EXPENSES - NET | 2,458 | 876 | 1,615 |
INCOME BEFORE INCOME TAXES | 80,967 | 81,097 | 74,516 |
Provision for Income Taxes | 34,209 | 35,272 | 32,360 |
NET INCOME | $46,758 | $45,825 | $42,156 |
NET INCOME PER SHARE - BASIC: (in dollars per share) | $1.69 | $1.65 | $1.52 |
WEIGHTED AVERAGE NUMBER OF SHARES BASIC: (in shares) | 27,716,608 | 27,690,677 | 27,742,257 |
NET INCOME PER SHARE - DILUTED: (in dollars per share) | $1.68 | $1.65 | $1.51 |
WEIGHTED AVERAGE NUMBER OF SHARES - DILUTED: (in shares) | 27,855,125 | 27,851,720 | 27,920,920 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Oct. 31, 2011 | $279 | $45,581 | $143,907 | $189,767 |
Balance (in shares) at Oct. 31, 2011 | 27,949,900 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of Options - Employees | 1 | 226 | 227 | |
Exercise of Options - Employees (in shares) | 31,500 | |||
Stock Based Compensation | 290 | 290 | ||
Stock Based Compensation (in shares) | 23,096 | |||
Stock Issued for Acquisition | 482 | 482 | ||
Stock Issued for Acquisition (in shares) | 23,096 | |||
Net Income | 42,156 | 42,156 | ||
Common Stock Repurchased and Canceled | -3 | -5,190 | -5,193 | |
Common Stock Repurchased and Canceled (in shares) | -285,450 | 285,450 | ||
Balance at Oct. 31, 2012 | 277 | 40,907 | 186,063 | 227,247 |
Balance (in shares) at Oct. 31, 2012 | 27,707,382 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of Options - Employees | 263 | 263 | ||
Exercise of Options - Employees (in shares) | 46,000 | |||
Stock Based Compensation | 290 | 290 | ||
Stock Based Compensation (in shares) | 11,431 | |||
Net Income | 45,825 | 45,825 | ||
Common Stock Repurchased and Canceled | -2,030 | -2,030 | ||
Common Stock Repurchased and Canceled (in shares) | -81,600 | 81,600 | ||
Balance at Oct. 31, 2013 | 277 | 39,430 | 231,888 | 271,595 |
Balance (in shares) at Oct. 31, 2013 | 27,683,213 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of Options - Employees | 259 | 259 | ||
Exercise of Options - Employees (in shares) | 33,000 | |||
Stock Based Compensation | 290 | 290 | ||
Stock Based Compensation (in shares) | 11,431 | |||
Net Income | 46,758 | 46,758 | ||
Balance at Oct. 31, 2014 | $277 | $39,979 | $278,464 | $318,902 |
Balance (in shares) at Oct. 31, 2014 | 27,727,644 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
OPERATING ACTIVITIES: | |||
Net Income | $46,758 | $45,825 | $42,156 |
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: | |||
Depreciation and Amortization | 25,164 | 19,739 | 16,663 |
Deferred Income Taxes (Benefit) Expense | 777 | -17,041 | -3,638 |
Stock Based Compensation | 290 | 290 | 290 |
(Gain) Loss on Disposal of Fixed Assets | 220 | 1,408 | 537 |
Undistributed Equity Method (Income) Loss | 83 | 450 | 323 |
(Increase) Decrease in: | |||
Accounts Receivable | -51,100 | -91,002 | -11,240 |
Provision for Doubtful Accounts | -5,985 | 37,988 | 6,053 |
Inventory | -1,696 | -4,193 | -5,211 |
Other Current Assets | -749 | -4,043 | -916 |
Other Assets | -250 | -299 | -141 |
Deposits | -39 | -61 | -74 |
Increase (Decrease) in: | |||
Accounts Payable and Accrued Liabilities | 3,102 | 28,601 | 8,296 |
NET CASH - OPERATING ACTIVITIES | 16,575 | 17,662 | 53,098 |
INVESTING ACTIVITIES: | |||
Acquisition of Equipment and Leasehold Improvements | -15,523 | -25,100 | -15,715 |
Business Acquisitions Related Costs | -2,303 | -19,013 | -5,675 |
NET CASH - INVESTING ACTIVITIES | -17,826 | -44,113 | -21,390 |
FINANCING ACTIVITIES: | |||
Payments of Long-Term Debt | -494 | -464 | -1,270 |
Payments of Capital Lease Obligations | -6,200 | -4,648 | -3,710 |
Increase (Decrease) in Revolving Line of Credit | 7,241 | 26,139 | -18,632 |
Common Stock Repurchase | 2,030 | 5,193 | |
Proceeds from Exercise of Options | 259 | 263 | 227 |
Common Stock Repurchase | -2,030 | -5,193 | |
NET CASH - FINANCING ACTIVITIES | 806 | 19,260 | -28,578 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -445 | -7,191 | 3,130 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIODS | 17,952 | 25,143 | 22,013 |
CASH AND CASH EQUIVALENTS AT END OF PERIODS | 17,507 | 17,952 | 25,143 |
Cash paid during the period for: | |||
Interest | 2,419 | 1,503 | 1,547 |
Income Taxes | 36,505 | 44,312 | 36,697 |
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Capital Leases | 8,683 | 7,125 | 7,777 |
Write-off of property | $1,463 | $4,464 | $2,508 |
Organization_and_Business
Organization and Business | 12 Months Ended |
Oct. 31, 2014 | |
Basis of Presentation | |
Organization and Business | [1] Organization and Business |
Bio-Reference Laboratories, Inc. [“Bio-Reference”, “BRLI”, or the “Company”] was incorporated on December 24, 1981. Bio-Reference is principally engaged in providing laboratory testing services, primarily to customers in the in larger metropolitan areas across New York, New Jersey, Maryland, Pennsylvania, Delaware, Washington DC, Florida, California, Texas, Illinois and Massachusetts as well as to customers in a number of other states. Bio-Reference offers a comprehensive list of chemical diagnostic tests including blood and urine analysis, blood chemistry, hematology services, serology, radio-immuno analysis, toxicology (including drug screening), pap smears, tissue pathology (biopsies) and other tissue analysis. We perform cancer cytogenetic testing at our facilities in Elmwood Park, NJ, Smithtown, NY, Clarksburg, MD and Milford, MA, Miami Florida, Campbell California and genetic testing at our GeneDx leased facility in Gaithersburg, MD, as well as at our Elmwood Park facility. We perform cytology testing in Frederick, MD, Milford, MA, Columbus, OH, Houston, TX and at our Elmwood Park facility. Bio-Reference markets its laboratory testing services directly to physicians, geneticists, hospitals, clinics, correctional and other health facilities. | |
The Company’s laboratory testing business currently represents its one reportable business segment. The laboratory testing business accounts for over 98% of consolidated assets, net revenues and net income in each of the three years ended October 31, 2014. All other operating segments include the Company’s non-clinical laboratory testing businesses and consist of our clinical knowledge management service through our PSIMedica business unit and a web-based connectivity portal solution for laboratories and physicians through its Care Evolve subsidiary. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Summary of Significant Accounting Policies | ||||||||
Summary of Significant Accounting Policies | [2] Summary of Significant Accounting Policies | |||||||
Principles of Consolidation - The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | ||||||||
Cash and Cash Equivalents - Cash equivalents are comprised of certain highly liquid investments with a maturity of three months or less when purchased. The Company had $17,507 and $17,952 in cash and cash equivalents at October 31, 2014 and 2013, respectively. | ||||||||
Inventory - Inventory is stated at the lower of cost [determined on a first-in, first-out basis] or market. Inventory consists of purchased laboratory supplies, which is used in our various testing laboratories. | ||||||||
Property and Equipment - Property and equipment are carried at cost. Depreciation is computed by the straight-line method over the estimated useful lives of the respective assets, which generally range from 2 to 15 years. Leasehold improvements are amortized over the life of the lease or improvement, which is typically five years. | ||||||||
The statements of operations reflect depreciation expense related to property and equipment of $23,246, $18,745 and $16,082 for the years ended October 31, 2014, 2013 and 2012, respectively. | ||||||||
On sale or retirement, the asset cost and related accumulated depreciation or amortization are removed from the accounts, and any related gain or loss is reflected in general and administrative expenses. Repairs and maintenance are charged to expense when incurred. | ||||||||
Goodwill - Effective November 1, 2011, the Company adopted revised Financial Accounting Standards Board (“FASB”) rules promulgated under Accounting Standards Update (“ASU”) No. 2011-08 issued on September 15, 2011, Intangibles—Goodwill and Other (Topic 350) Testing Goodwill for Impairment. Under these simplified goodwill impairment testing rules the Company assessed qualitative factors to determine whether events and circumstances lead to the conclusion that it is necessary to perform the two-step goodwill impairment test have occurred and determined that no such events had occurred. Under ASU No. 2011-08, entities are not required to calculate the fair value of a reporting unit unless they conclude that it is more likely than not that the unit’s carrying value is greater than its fair value based on an assessment of events and circumstances. The “more likely than not” threshold is when there is a likelihood of more than 50% that a reporting unit’s carrying value is greater than its fair value. No impairment loss was recognized in the years ended October 31, 2014, 2013 and 2012. | ||||||||
The balance sheet reflects prior Goodwill accumulated amortization of $2,401 as of October 31, 2014 and 2013, respectively. | ||||||||
Other Intangible Assets - Intangible assets are amortized using the straight-line method. The estimated useful life of costs capitalized is evaluated for each specific project when completed, at which time such costs begin to be amortized. The statements of operations reflect amortization expense related to intangible assets of $1,917, $994, and $581 for the years ended October 31, 2014, 2013 and 2012, respectively. The balance sheet reflects accumulated amortization of $10,763, and $8,846 as of October 31, 2014, and 2013, respectively. During the 2014 and 2013 fiscal years, the Company did not write off any intangible assets. | ||||||||
Accounting for Revenue | ||||||||
Service revenues are principally generated from laboratory testing services including chemical diagnostic tests such as blood analysis, urine analysis and genetic testing among others. Service revenues are recognized at the time the testing services are performed and are reported at their estimated net realizable amounts. | ||||||||
Service revenues before provision for bad debts are determined utilizing gross service revenues net of contractual adjustments and discounts. Even though it is the responsibility of the patient to pay for laboratory service bills, most individuals in the United States have an agreement with a third party payor such as Medicare, Medicaid or a commercial insurance provider to pay all or a portion of their healthcare expenses. The majority of services provided by BRLI are to patients covered under a third party payor contract. In certain cases, the individual has no insurance or does not provide insurance information and in other cases tests are performed under contract to a professional organization (such as physicians, hospitals, and clinics) which reimburse BRLI directly. In the remainder of the cases, BRLI is provided the third party billing information and seeks payment from the third party under the terms and conditions of the third party payor for health service providers like BRLI. Each of these third party payors may differ not only with regard to rates, but also with regard to terms and conditions of payment and providing coverage (reimbursement) for specific tests. Estimated revenues are established based on a series of highly complex procedures and judgments that require industry specific healthcare experience and an understanding of payor methods and trends. We review our calculations on a monthly basis in order to make certain that we are properly allowing for the uncollectable portion of our gross billings due to the contractual adjustments and discounts and that our estimates remain sensitive to variances and changes within our payor groups. The contractual allowance calculation is made on the basis of historical allowance rates for the various specific payor groups on a monthly basis with a greater weight being given to the most recent trends; this process is adjusted based on recent changes in underlying contract provisions and shifts in the testing being performed. This calculation is routinely analyzed by BRLI on the basis of actual allowances issued by payors and the actual payments made to determine what adjustments, if any, are needed. The table below shows the adjustments made to gross service revenues to arrive at net revenues, the amount reported on our statement of operations. | ||||||||
($) | ||||||||
Year Ended October 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Gross Service Revenues | 4,185,052 | 3,524,108 | 3,052,431 | |||||
Contractual Adjustments and Discounts: | ||||||||
Medicare/Medicaid Portion | 391,659 | 354,638 | 320,697 | |||||
All Other Third Party Payors* | 2,899,374 | 2,393,872 | 2,070,073 | |||||
Total Contractual Adjustments and Discounts | 3,291,033 | 2,748,510 | 2,390,770 | |||||
Service Revenues Net of Contractual Adjustments and Discounts | 894,019 | 775,598 | 661,661 | |||||
Patient Service Revenue Provision for Bad Debts** | 61,737 | 60,244 | 47,406 | |||||
Net Revenues | 832,282 | 715,354 | 614,255 | |||||
Percent of Contractual Allowances, Discounts and Patient Service | ||||||||
Provision for Bad Debts to Gross Revenue. | 80.1 | % | 79.7 | % | 79.9 | % | ||
* All Other Third Party and Direct Payors consists of almost eight hundred distinct payors, including commercial health insurers and administrators as well as professionally billed accounts such as physicians, hospitals, clinics and other direct billed accounts. | ||||||||
** Represents the amount of Bad Debt Expense that is required to be presented as a deduction from patient service revenue (net of contractual allowances and discounts) pursuant to ASU No. 2011-7. | ||||||||
When new business is received by BRLI, service revenues net of contractual adjustments and discounts are calculated by reducing gross service revenues by the estimated contractual allowance. The Patient Service Revenue Provision for Bad Debts represents the amount of bad debt expense expected to occur on patient service revenue based upon our experience. The remaining bad debt expense is presented as part of operating expenses. The bad debt expense presented as part of operating expense represents the bad debt expense related to receivables from service revenues determined after taking into account our ability to collect on such revenue. | ||||||||
BRLI recognized the amounts in subsequent periods for actual allowances/discounts to gross service revenue; bad debt may have been adjusted over the same periods of time to maintain an accurate balance between net revenues and actual revenues. Management has reviewed the allowances/discounts recognized in subsequent periods and believes the amounts to be immaterial. A number of proposals for legislation or regulation continue to be under discussion which could have the effect of substantially reducing Medicare reimbursements for clinical laboratories or introducing cost sharing to beneficiaries. Depending upon the nature of regulatory action, if any, which is taken and the content of legislation, if any, which is adopted, the Company could experience a significant decrease in revenues from Medicare and Medicaid, which could have a material adverse effect on the Company. The Company is unable to predict, however, the extent to which such actions will be taken. | ||||||||
Accounting for Contractual Credits and Doubtful Accounts | ||||||||
It is typically the responsibility of the patient to pay for laboratory service bills. Most individuals in the United States have an agreement with a third party payor such as Medicare, Medicaid or commercial insurance to pay all or a portion of their healthcare expenses. This represents the major portion of payment for all services provided by BRLI. In certain cases, the individual has no insurance or does not provide insurance information. In the remainder of the cases, BRLI is provided the third party billing information, usually by the referring physician, and seeks payment from the third party under the terms and conditions of the third party payor for health service providers like BRLI. Each of these third party payors may differ not only with regard to rates, but also with regard to terms and conditions of payment and coverage of specific tests. BRLI routinely reviews the reimbursement policies and subsequent payments and collection rates from these different types of payors. Contractual adjustments and discounts are recorded as reductions to gross service revenues and are collectively referred to as the contractual allowance. BRLI has not been required to record an adjustment in a subsequent period related to revenue recorded in a prior period which was material in nature. Aging of accounts receivable is monitored by billing personnel and follow-up activities including collection efforts are conducted as necessary. BRLI writes off receivables against the allowance for doubtful accounts when they are deemed uncollectible. For client billing, accounts are written off when all reasonable collection efforts prove to be unsuccessful. Patient accounts, where the patient is directly responsible for all or a remainder portion of the account after partial payment or denial by a third party payor, are written off after the normal dunning cycle has occurred, although these may be subsequently transferred to a third party collection agency after being written off. Third party payor accounts are written off when they exceed the payer’s timely filing limits. Accounts Receivable on the balance sheet is net of the following amounts for contractual credits and doubtful accounts: | ||||||||
($) | ||||||||
October 31, | October 31, | |||||||
2014 | 2013 | |||||||
Contractual Credits/Discounts | 513,466 | 342,297 | ||||||
Doubtful Accounts | 83,276 | 89,261 | ||||||
Total Allowance | 596,742 | 431,558 | ||||||
Current Income Taxes — The Company recognizes interest and penalties on settlement of tax liabilities in its income from operations. For the fiscal years 2011 through 2014, no material amounts for interest and penalties have been recorded. | ||||||||
Deferred Income Taxes - Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. | ||||||||
The Company adopted GAAP guidance with respect to uncertain tax positions when it became effective. Under these rules the Company may recognize the tax benefit from an uncertain tax position only if it meets the more-likely-than-not criteria (over 50% likelihood) of being realized on an examination by taxing authorities. For the years ended October 31, 2012 through October 31, 2014 the Company had no material uncertain tax positions to report. | ||||||||
Earnings Per Share - Basic earnings per share [“EPS”] reflects the amount of income attributable to each share of common stock based on average common shares outstanding during the period. Diluted EPS reflects Basic EPS while giving effect to all potential dilutive common shares that were outstanding during the period, such as common shares that could result from the exercise or conversion of securities into common stock. The computation of Diluted EPS is calculated by using the treasury stock method, which assumes that any proceeds obtained from the exercise of such dilutive securities would be used to purchase common stock at the average market price of the common stock during the period. This reduces the gross number of dilutive shares by the number of shares purchasable from the proceeds of the securities assumed to be exercised. Securities whose conversion would have an anti-dilutive effect on EPS are not assumed converted. Securities that could potentially dilute earnings in the future are disclosed in Note 10. | ||||||||
Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
Recoverability and Impairment of Intangible Assets and Other Long-Lived Assets — The Company evaluates the possible impairment of its long-lived assets under the provisions of FASB codification 350-30-35 and 360-10-35. The Company reviews the recoverability of its long-lived assets on an annual basis. Evaluation of possible impairment is based on the Company’s ability to recover the asset from the expected future pretax cash flows (undiscounted and without interest charges) of the related operations. If the expected undiscounted pretax cash flows are less than the carrying amount of such asset, an impairment loss is recognized for the difference between the estimated fair value and carrying amount of the asset. No impairment loss was recognized in the fiscal years ended October 31, 2014, 2013 and 2012. | ||||||||
Advertising Costs -Advertising costs are expensed when incurred. Advertising costs amounted to approximately $3,188, $3,200 and $2,366 for the years ended October 31, 2014, 2013 and 2012, respectively. | ||||||||
Other Income — During the year ended October 31, 2014, the Company recorded a loss of $83 on its investment in IncellDx. The loss represents the Company’s share of IncellDX undistributed net loss under the equity method of accounting. | ||||||||
Subsequent Events — The management considered subsequent events through the date the financial statements are issued as defined in FASB Codification 855-10-50. | ||||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||
Oct. 31, 2014 | ||||||
Property and Equipment | ||||||
Property and Equipment | [3] Property and Equipment - Property and equipment - at cost is summarized as follows: | |||||
$ | ||||||
October 31 | ||||||
2014 | 2013 | |||||
Medical Equipment | 77,682 | 65,762 | ||||
Leasehold Improvements | 32,157 | 27,974 | ||||
Furniture, Fixtures and Office & Computer Equipment | 26,076 | 21,621 | ||||
Automobiles and Aircraft | 20,427 | 18,242 | ||||
Sub Totals | 156,342 | 133,599 | ||||
Less Accumulated Depreciation | 89,954 | 67,950 | ||||
Totals — Net of Accumulated Depreciation | 66,388 | 65,649 | ||||
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Intangible Assets | |||||||||||||
Intangible Assets | [4] Intangible Assets | ||||||||||||
Intangible assets are summarized as follows: | |||||||||||||
October 31, 2014 | |||||||||||||
Weighted-Average | Accumulated | Net of | |||||||||||
Accumulated | |||||||||||||
Intangible Asset | Amortization Period | Cost | Amortization | Amortization | |||||||||
Customer Lists | 20 | $ | 8,738 | $ | 3,275 | $ | 5,463 | ||||||
Covenants Not-to-Compete | 3 | 11,131 | 5,738 | 5,393 | |||||||||
Patents and Licenses | 17 | 5,297 | 1,750 | 3,547 | |||||||||
Totals | $ | 25,166 | $ | 10,763 | $ | 14,403 | |||||||
October 31, 2013 | |||||||||||||
Weighted-Average | Accumulated | Net of | |||||||||||
Accumulated | |||||||||||||
Intangible Asset | Amortization Period | Cost | Amortization | Amortization | |||||||||
Customer Lists | 20 | $ | 8,738 | $ | 2,878 | $ | 5,860 | ||||||
Covenants Not-to-Compete | 3 | 11,131 | 4,560 | 6,571 | |||||||||
Patents and Licenses | 17 | 5,297 | 1,408 | 3,889 | |||||||||
Totals | $ | 25,166 | $ | 8,846 | $ | 16,320 | |||||||
The estimated amortization expense related to intangible assets for each of the five succeeding fiscal years and thereafter as of October 31, 2014 is as follows: | |||||||||||||
October 31, | |||||||||||||
2015 | $ | 1,852 | |||||||||||
2016 | 1,540 | ||||||||||||
2017 | 1,063 | ||||||||||||
2018 | 946 | ||||||||||||
2019 | 904 | ||||||||||||
Thereafter | 8,098 | ||||||||||||
Total | $ | 14,403 | |||||||||||
Revolving_Note_Payable_Bank
Revolving Note Payable - Bank | 12 Months Ended |
Oct. 31, 2014 | |
Revolving Note Payable - Bank | |
Revolving Note Payable - Bank | [5] Revolving Note Payable - Bank |
In October 2011, the Company entered into an amended revolving note payable loan agreement with PNC Bank, N.A. The maximum amount of the credit line available to the Company pursuant to the loan agreement is the lesser of (i) $45,000 or (ii) 50% of the Company’s qualified accounts receivable [as defined in the agreement]. The amendment to the Loan and Security Agreement provides for an interest rate on advances to be subject, at the election of the Company, to either the bank’s base rate or the Eurodollar rate of interest plus, in certain instances, an additional interest percentage. The additional interest percentage charge on bank’s base rate borrowings and on Eurodollar rate borrowings ranges from 1% to 4% and is determined based upon certain financial ratios achieved by the Company. At October 31, 2014, the Company had elected to have all of the total advances outstanding to be subject to the bank’s base rate of interest of 3.50%. The credit line is collateralized by substantially all of the Company’s assets. The line of credit is available through October 2016 and may be extended for annual periods by mutual consent, thereafter. The terms of this agreement contain, among other provisions, requirements for maintaining defined levels of capital expenditures, fixed charge coverage, and the prohibition of the payment by the Company of cash dividends. As of October 31, 2014 and October 31, 2013, the Company utilized $33,380 and $26,139 of the credit line, respectively. | |
LongTerm_Debt_Bank
Long-Term Debt - Bank | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Long-Term Debt - Bank | |||||
Long-Term Debt - Bank | [6] Long-Term Debt - Bank | ||||
In December 2010, the Company issued a seven year term note for $5,408 at the rate of interest of 6.12% per annum for the financing of new equipment. The note is payable in eighty-four equal monthly installments commencing on January 29, 2011 of $61 including principal and interest followed by a balloon payment of the principal and interest outstanding on the loan repayment date of December 29, 2017. The balance on this note as of October 31, 2014 is approximately $3,669. | |||||
Principal repayment for each of the five succeeding fiscal years and thereafter as of October 31, 2014 is as follows: | |||||
Year Ended October 31, | |||||
2015 | 524 | ||||
2016 | 557 | ||||
2017 | 592 | ||||
2018 | 1,996 | ||||
2019 | — | ||||
Thereafter | — | ||||
Totals | $ | 3,669 | |||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Oct. 31, 2014 | |
Related Party Transactions | |
Related Party Transactions | [7] Related Party Transactions |
There were no material related party transactions during fiscal 2014 and fiscal 2013. | |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Provision for Income Taxes | ||||||||
Provision for Income Taxes | [8] Income Taxes | |||||||
The reconciliation of income tax from continuing operations computed at the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: | ||||||||
October 31 | ||||||||
2014 | 2013 | 2012 | ||||||
U.S. Federal Statutory Rate | 35 | % | 35 | % | 35 | % | ||
State and Local Taxes, Net of U.S. Federal Tax Benefit | 6.15 | % | 11.20 | % | 8.87 | % | ||
Permanent differences and Other | 0.94 | % | (2.78 | )% | (0.44 | )% | ||
Actual Rate | 42.09 | % | 43.42 | % | 43.43 | % | ||
The provision for income taxes shown in the consolidated statements of operations consists of the following: | ||||||||
$ | ||||||||
October 31 | ||||||||
2014 | 2013 | 2012 | ||||||
Current: | ||||||||
Federal | 25,732 | 38,295 | 25,794 | |||||
State & Local | 7,700 | 14,018 | 10,203 | |||||
Deferred: | ||||||||
Federal | 598 | (10,803 | ) | (2,183 | ) | |||
State and Local | 179 | (6,238 | ) | (1,454 | ) | |||
Total Provision for Income Taxes | 34,209 | 35,272 | 32,360 | |||||
At October 31, 2014 and 2013, the Company had a net deferred tax asset of approximately $43,454 and $44,231, respectively. The deferred taxes primarily relate to timing differences associated with the deductibility of depreciation and amortization, bad debts and certain accrued expenses and deferred costs. For fiscal years ended October 31 2012 through October 31, 2014, the Company had no material net operating loss carry-forwards available to reduce current year taxable income. | ||||||||
$ | ||||||||
October 31, | ||||||||
2014 | 2013 | |||||||
Deferred Tax Asset: | ||||||||
Bad Debt Allowance | 36,642 | 39,275 | ||||||
Depreciation and amortization | 3,009 | 1,815 | ||||||
Accrued Expenses | 3,803 | 3,141 | ||||||
Deferred Tax Asset - Net | 43,454 | 44,231 | ||||||
Current Deferred Tax Asset - Net | 40,040 | 42,154 | ||||||
Long Term Deferred Tax Asset - Net | 3,414 | 2,077 | ||||||
Deferred Tax Asset — Net | 43,454 | 44,231 | ||||||
During fiscal year ended October 31, 2014 the Company recorded a net deferred tax expense of $777. This reflects an expense of approximately $2,633 in allowance for bad debts, a benefit of approximately $1,194 from depreciation and amortization timing differences, and a benefit of approximately $661 in certain accrued expenses. Although realization is not assured and dependent upon things such as generating sufficient taxable income in future periods, management, through sufficient positive evidence, believes it is more likely than not that all of the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income or changes in the accrued expenses during the future periods are reduced. | ||||||||
At October 31, 2014, fiscal 2011 through 2014 are generally subject to examination by US federal and state tax authorities. In certain instances examinations that were ongoing on October 31, 2014 are still open for years 2009 and 2010. Through the issuance of these financial statements the outcome of all of these examinations has not been determined. | ||||||||
Capital_Transactions
Capital Transactions | 12 Months Ended |
Oct. 31, 2014 | |
Capital Transactions | |
Common Stock Repurchase | [9] Capital Transactions |
[A] Preferred Stock and Common Stock - The Company is authorized to issue an aggregate of 1,666,667 shares of preferred stock, $.10 par value. None was outstanding as of October 31, 2014 and October 31, 2013. | |
Holders of the Company’s Common Stock are entitled to one vote per share on matters submitted for shareholder vote. Holders are also entitled to receive dividends ratably, if declared. In the event of dissolution or liquidation, holders are entitled to share ratably in all assets remaining after payment of liabilities. | |
On December 19, 2013 the Company announced that its board of directors has approved a new Stock Repurchase Program authorizing the buyback of up to 2,000,000 shares of its Common Stock in the over-the-counter market at prevailing market prices through October 31, 2015. As of October 31, 2014 no shares have been repurchased under this plan. | |
[B] Equity Transactions for Services — For the fiscal years ended in 2014, 2013 and 2012, the Company issued 11,431, 11,431 and 11,432 shares of the Company’s common stock for employment or consulting services [See Note 11 for common stock options issued for employee and consulting services]. | |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Earnings Per Share | ||||||||
Earnings Per Share | [10] Earnings Per Share | |||||||
The computation of basic and diluted net earnings per common share is as follows [in thousands, except per share data rounded]: | ||||||||
$ | ||||||||
For Years Ended October 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Income Available to Common Stockholders | 46,758 | 45,825 | 42,156 | |||||
Weighted Average Common Shares Outstanding | 27,717 | 27,691 | 27,742 | |||||
Effect of Dilutive Securities: | ||||||||
Warrants/Options | 138 | 161 | 179 | |||||
Weighted Average Diluted Common Shares Outstanding | 27,855 | 27,852 | 27,921 | |||||
Net Income Per Share - Basic | 1.69 | 1.65 | 1.52 | |||||
Net Income Per Share - Diluted | 1.68 | 1.65 | 1.51 | |||||
Stock_Options_and_Warrants
Stock Options and Warrants | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||
Stock Options and Warrants | ||||||||||||||||||||
Stock Options and Warrants | [11] Stock Options and Warrants | |||||||||||||||||||
Employee Incentive Stock Options - In June 2003, the Board of Directors adopted, and in July 2003, the stockholders approved, the 2003 Employee Incentive Stock Option Plan [the “2003 Plan”]. The 2003 Plan authorizes the grant of stock options, which may be designated as incentive stock options, to purchase up to a maximum aggregate 1,600,000 shares of Company common stock. The 2003 Plan provides that the exercise price of an option granted there under shall not be less than the fair market value of the Common Stock on the date the option is granted. However, in the event an option is granted under the 2003 Plan to a holder of 10% or more of the Company’s outstanding Common Stock, the exercise price must be at least 110% of such fair market value. Under the 2003 Plan, options must be granted before the June 2, 2013 Termination Date. No option may have a term longer than ten years (limited to five years in the case of an option granted to a 10% or greater stockholder of the Company). The aggregate fair market value of the Company’s Common Stock with respect to which options are exercisable for the first time by a grantee under all of the Company’s Stock Option Plans during any calendar year cannot exceed $100. Options granted under the 2003 Plan are non-transferable and must be exercised by an optionee, if at all, while employed by the Company or a subsidiary or within three months after termination of such optionee’s employment due to retirement, or within one year of such termination if due to disability or death. The Board (or a Stock Option Committee, if designated), may, in its sole discretion, cause the Company to lend money to or guaranty any obligation of an employee for the purpose of enabling such employee to exercise an option granted under the 2003 Plan provided that such loan or obligation cannot exceed fifty percent (50%) of the exercise price of such option. Options issued under the 2003 Plan must have been granted before the June 2 2013 termination date. No additional options may be granted under the 2003 Plan. A total of 27,000, 4,000 and 23,500 incentive stock options issued under the 2003 Plan were exercised in fiscal years ended in October 31, 2014, 2013 and 2012, respectively. A total of 0, 6,000 and 13,000 options were cancelled in fiscal years ended October 31, 2014, 2013 and 2012. | ||||||||||||||||||||
In August 2000, the Company adopted, and on December 15, 2000, the stockholders approved, the 2000 Employee Incentive Stock Option Plan [“2000 Plan”]. The 2000 Plan provided for the granting of stock options, which may have been designated as incentive stock options, to purchase an aggregate of 1,600,000 shares of the Company’s common stock at a price not less than 100% of the fair market value per share of the common stock at the date of grant. However, in the event an option was granted under the 2000 Plan to a holder of 10% or more of the Company’s outstanding common stock, the exercise price must have been at least 110% of fair market value at the date of grant. Employees of the Company or its subsidiary, as determined, were eligible for the 2000 Plan. The term of the options could not exceed ten years from the date of grant. Options issued under the 2000 Plan must have been granted before the August 2010 termination date. No additional options may be granted under the 2000 Plan. A total of 6,000, 44,000 and 8,000 incentive stock options issued under the 2000 Plan were exercised in fiscal years ended in October 31, 2014, 2013 and 2012, respectively. A total of 0, 2,000, and 0 options were cancelled in fiscal years ended October 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
The following is a summary of Employee Incentive Stock Option Plan transactions: | ||||||||||||||||||||
2003 Plan | ||||||||||||||||||||
Shares Under Options | Weighted Average | |||||||||||||||||||
[In Thousands] | Exercise Price Per Share | |||||||||||||||||||
Outstanding at October 31, 2011* | 295 | $ | 9.8 | |||||||||||||||||
Granted | — | — | ||||||||||||||||||
Expired | (13 | ) | 9.13 | |||||||||||||||||
Exercised | (23 | ) | 8.52 | |||||||||||||||||
Outstanding at October 31, 2012** | 259 | $ | 9.95 | |||||||||||||||||
Granted | — | — | ||||||||||||||||||
Expired | (6 | ) | 8.64 | |||||||||||||||||
Exercised | (4 | ) | 7.25 | |||||||||||||||||
Outstanding at October 31, 2013*** | 249 | $ | 10.02 | |||||||||||||||||
Granted | — | |||||||||||||||||||
Expired | — | |||||||||||||||||||
Exercised | (27 | ) | 7.92 | |||||||||||||||||
Outstanding at October 31, 2014**** | 222 | $ | 10.28 | |||||||||||||||||
*Eligible for exercise at October 31, 2011 were 275 at a weighted average exercise price per share of $9.80 | ||||||||||||||||||||
**Eligible for exercise at October 31, 2012 were 244 at a weighted average exercise price per share of $9.95 | ||||||||||||||||||||
***Eligible for exercise at October 31, 2013 were 239 at a weighted average exercise price per share of $9.97 | ||||||||||||||||||||
****Eligible for exercise at October 31, 2014 were 217 at a weighted average exercise price per share of $10.28 | ||||||||||||||||||||
2000 Plan | ||||||||||||||||||||
Shares Under Options | Weighted Average | |||||||||||||||||||
[In Thousands] | Exercise Price Per Share | |||||||||||||||||||
Outstanding and Eligible for Exercise at October 31, 2011 | 60 | 5.19 | ||||||||||||||||||
Granted | — | — | ||||||||||||||||||
Expired | — | — | ||||||||||||||||||
Exercised | (8 | ) | 3.39 | |||||||||||||||||
Outstanding and Eligible for Exercise at October 31, 2012 | (52 | ) | 5.47 | |||||||||||||||||
— | — | |||||||||||||||||||
Granted | — | — | ||||||||||||||||||
Expired | (2 | ) | 3.6 | |||||||||||||||||
Exercised | (44 | ) | $ | 5.25 | ||||||||||||||||
Outstanding and Eligible for Exercise at October 31, 2013 | 6 | 7.67 | ||||||||||||||||||
Granted | — | |||||||||||||||||||
Expired | — | |||||||||||||||||||
Exercised | (6 | ) | 7.67 | |||||||||||||||||
Outstanding and Eligible for Exercise at October 31, 2014 | — | |||||||||||||||||||
Summary of outstanding options at October 31, 2014: | ||||||||||||||||||||
Weighted Average | Exercisable | |||||||||||||||||||
Shares | Remaining | Exercise | Shares | Exercise | ||||||||||||||||
Exercise Price Range | Outstanding | Life | Price | Outstanding | Price | |||||||||||||||
$ | 7.25 | to | $ | 7.25 | Per Share | 0 | 0.00 | 7.25 | 0 | 7.25 | ||||||||||
$ | 7.41 | to | $ | 7.67 | Per Share | 46 | 0.42 | 7.41 | 46 | 7.41 | ||||||||||
$ | 9.12 | to | $ | 9.12 | Per Share | 136 | 1.00 | 9.13 | 136 | 9.13 | ||||||||||
$ | 17.50 | to | $ | 17.50 | Per Share | 40 | 3.08 | 17.50 | 35 | 17.50 | ||||||||||
222 | 217 | |||||||||||||||||||
Compensation cost recognized for the years ended October 31, 2014, October 31, 2013 and October 31, 2012 was $40 for each one of the years, with a related tax benefit of $-0- with respect to these options. | ||||||||||||||||||||
Employment_Contracts_and_Consu
Employment Contracts and Consulting Agreements | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Employment Contracts and Consulting Agreements | |||||
Employment Contracts and Consulting Agreements | [12] Employment Contracts and Consulting Agreements | ||||
The Company has multiple employment contracts with its key executives with expiration dates ranging from January 31, 2015 through October 31, 2018. At October 31, 2014, the approximate aggregate minimum commitment under these employment contracts and agreements, excluding commissions or consumer price index increases, is as follows: | |||||
October 31 | Employees | ||||
and | |||||
Consultants | |||||
2015 | $ | 4,582 | |||
2016 | 3,706 | ||||
2017 | 3,706 | ||||
2018 | 1,701 | ||||
2019 | — | ||||
Thereafter | — | ||||
Total | $ | 13,695 | |||
Some of these agreements provide bonuses and commissions based on a percentage of collected revenues ranging from 1% to 10% on accounts referred by or serviced by the employee or consultant. | |||||
In addition to the above, in fiscal 2014 the Company has entered into thirty two at — will employment and consulting agreements which together with prior at — will agreements provide for annual aggregate minimum commitments of approximately $39,254 which have no termination dates. | |||||
Capitalized_Lease_Obligations
Capitalized Lease Obligations | 12 Months Ended | |||||
Oct. 31, 2014 | ||||||
Capitalized Lease Obligations | ||||||
Capitalized Lease Obligations | [13] Capitalized Lease Obligations | |||||
The Company leases various assets under capital leases expiring in fiscal 2020 with interest rates ranging between 2% to 7% as follows: | ||||||
($) | ||||||
October 31 | ||||||
2014 | 2013 | |||||
Medical Equipment | 20,774 | 15,013 | ||||
Automobiles | 12,674 | 10,581 | ||||
Totals | 33,447 | 25,594 | ||||
Less: Accumulated Depreciation | 17,656 | 13,125 | ||||
Net | 15,791 | 12,469 | ||||
Depreciation expense on assets under capital leases was approximately $6,889, $6,494, and $3,792 for the years ended October 31, 2014, 2013 and 2012, respectively. | ||||||
Aggregate future minimum rentals under capital leases are: | ||||||
October 31, | ($) | |||||
2015 | 6,623 | |||||
2016 | 5,749 | |||||
2017 | 4,186 | |||||
2018 | 2,368 | |||||
2019 | 485 | |||||
Thereafter | 1 | |||||
Total | 19,412 | |||||
Less Interest: | 1,032 | |||||
Present Value of Minimum Lease Payments | 18,380 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||
Oct. 31, 2014 | ||||||
Commitments and Contingencies | ||||||
Commitments and Contingencies | [14] Commitments and Contingencies | |||||
The Company leases various office and laboratory facilities and equipment under operating leases expiring from 2015 to 2020. Several of these leases contain renewal options for one to five year periods. | ||||||
Total expense for property and equipment rental for the years ended October 31, 2014, 2013 and 2012 was $13,411, $10,568 and $8,787, respectively. There were no contingent rental amounts due through October 31, 2014. | ||||||
Aggregate future minimum rental payments on non cancelable operating leases [exclusive of several month to month leases] are as follows: | ||||||
October 31, | Property($) | Equipment($) | ||||
2015 | 8,564 | 345 | ||||
2016 | 2,122 | 203 | ||||
2017 | 831 | 63 | ||||
2018 | 689 | |||||
2019 | 626 | |||||
Thereafter | 103 | |||||
Totals: | 12,935 | 611 | ||||
The Company has entered into several purchase agreements for reagent supplies through October, 2019. Minimum purchase commitments as of October 31, 2014 are as follows: | ||||||
October 31 | Reagents ($) | |||||
2015 | 73,709 | |||||
2016 | 62,534 | |||||
2017 | 36,188 | |||||
2018 | 21,241 | |||||
2019 | 8,663 | |||||
Thereafter | — | |||||
Totals: | 202,335 | |||||
Reagent supplies expensed under purchase agreements amount to $60,777, $7,873, and $13,338 for the years ended October 31, 2014, 2013 and 2012, respectively. | ||||||
Litigation
Litigation | 12 Months Ended |
Oct. 31, 2014 | |
Litigation | |
Litigation | [15] Litigation |
In the normal course of business, the Company is exposed to a number of asserted and unasserted potential claims. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position or results of operations. | |
Bio-Reference Laboratories, Inc. v. Horizon Healthcare Services, Inc. d/b/a Horizon Blue Cross Blue Shield of New Jersey | |
On December 18, 2013, the Company filed an action in the Superior Court of New Jersey against Horizon Blue Cross Blue Shield of New Jersey (“Horizon”), captioned Bio-Reference Laboratories, Inc. v. Horizon Healthcare Services, Inc. d/b/a Horizon Blue Cross Blue Shield of New Jersey, Docket No. BER L-009748-13 (N.J. Super. Ct. Bergen Cnty.). The Company has been an in-network provider to Horizon’s preferred provider organization (“PPO”) members for more than 20 years and filed the lawsuit after attempts to resolve its dispute with Horizon were unsuccessful. | |
The Company currently provides services to Horizon pursuant to an Ancillary Services Provider Agreement entered into in 2003 and amended in 2007. The central claims in the lawsuit arise from the Company’s performance of laboratory services since at least 2008 for members of Horizon’s NJ DIRECT plan, who receive benefits under a program that Horizon has bid, promoted, and represented to be a PPO product for New Jersey state, county, and municipal workers and teachers. The lawsuit alleges that, despite these representations, Horizon has been improperly treating NJ DIRECT as a Managed Care program in its dealings with the Company, thereby costing the Company more than $20,000,000 in unreimbursed services and depriving state beneficiaries of valuable rights and benefits to which they are entitled. The lawsuit alleges that Horizon furthered its fraud against the Company by means of a sham Request for Proposal issued in 2011 and through false and incorrect communications to the Company and other providers. The Company asserts claims for breach of contract, breach of the implied covenant of good faith and fair dealing, and fraud against Horizon. In addition to compensatory damages, the Company seeks to recover punitive damages from Horizon due to Horizon’s intentional and malicious misconduct. The Company also seeks declaratory and injunctive relief. | |
On February 5, 2014, Horizon filed a motion to dismiss the complaint, which the Company opposed. On March 28, 2014, the Honorable Robert C. Wilson of the Superior Court of New Jersey issued an oral ruling denying Horizon’s motion to dismiss without prejudice pending the completion of discovery. The Company and Horizon are conducting discovery, which is currently scheduled to close in mid 2015. The Company intends to vigorously prosecute its claims against Horizon. | |
University of Utah Research Foundation, et al. v. GeneDx, Inc., Civil Action No. 2:13cv00954 (D. Utah) | |
On October 16, 2013, Myriad Genetics, Inc., Endorecherche, Inc., HSC Research and Development Limited Partnership, Trustees of the University of Pennsylvania, and University of Utah Research Foundation (“Plaintiffs”) filed a complaint for patent infringement against GeneDx, Inc., a wholly-owned subsidiary of Bio-Reference Laboratories, Inc., in the United States District Court for the District of Utah, Central Division in Salt Lake City, Utah (“District of Utah litigation”). The complaint alleges that GeneDx offers laboratory services, including testing and analysis of BRCA1, BRCA2, and MUTYH genes, that infringe sixteen (16) U.S. Patents owned or controlled by the plaintiffs. Plaintiffs seek to recover damages, including enhanced damages, together with attorney’s fees, interest, and costs. Plaintiffs also seek other relief, including enjoining GeneDx from continuing its allegedly infringing activity. | |
On December 9, 2013, GeneDx filed its answer, affirmative defenses, and counterclaims alleging, among other things, that the asserted patent claims are invalid, unenforceable, and/or not infringed. | |
Plaintiff Myriad and several of the other Plaintiffs have previously and subsequently filed complaints against other laboratories or have been named as defendants in declaratory judgment actions by certain laboratories. Those cases involve some of the patents and claims asserted against GeneDx. The parties involved in those cases who are adverse to Plaintiffs are: Ambry Genetics Corp. (filed July 9, 2013, D. Utah); Gene by Gene, Ltd. (filed July 10, 2013, D. Utah); Counsyl, Inc. (filed September 20, 2013, N.D. Cal.); Quest Diagnostics Inc., et al. (filed October 10, 2013, C.D. Cal.); Quest Diagnostics Inc., et al. (filed October 22, 2013, D. Utah); Invitae Corp. (filed November 25, 2013, D. Utah); Invitae Corp. (filed November 26, 2013, N.D. Cal.); Laboratory Corporation of America Holdings (filed December 3, 2013, D. Utah); Counsyl, Inc. (filed June 13, 2014, D. Utah); and Pathway Genomics Corp. (filed June 13, 2014, D. Utah) (collectively “Defendants”). | |
On November 8, 2013, Plaintiffs filed a motion with the Judicial Panel on Multidistrict Litigation requesting centralization and consolidation in the District of Utah of each of the outstanding district court actions. On February 19, 2014, following briefing and a hearing, the Panel ordered centralization in the District of Utah before District Court Judge Robert J. Shelby, including the action against GeneDx. The Court held an initial scheduling conference on April 25, 2014. | |
In the first-filed actions against Defendants Ambry Genetics Corp. and Gene by Gene, Ltd., on July 9 and July 10, 2013, respectively, Plaintiffs filed a motion for preliminary injunction with each complaint. The parties in each action provided the Court with briefing on the issues, as well as a technology tutorial on August 23, 2013, and the Court held multi-day hearings on the motion in September and October 2013. Prior to any decision, Plaintiffs and Defendant Gene by Gene entered a stipulated dismissal of that action on February 7, 2014. On March 10, 2014, the Court denied Plaintiffs’ request for a preliminary injunction against Defendant Ambry Genetics Corp. | |
Plaintiffs appealed that decision denying their request for a preliminary injunction to the Court of Appeals for the Federal Circuit. Plaintiffs submitted their appeal brief on April 18, 2014, and Defendant Ambry Genetics Corp. submitted its appeal brief on June 2, 2014. Plaintiffs filed their reply appeal brief on June 13, 2014. The Court of Appeals heard oral argument on the denial of Plaintiffs’ request for a preliminary injunction on October 6, 2014, and a decision is expected soon. | |
On August 18, 2014, GeneDx filed eleven petitions for Inter Partes Review (“IPR”) with the U.S. Patent and Trademark Office, challenging the validity of certain of the patents asserted against it in the District of Utah litigation. The eleven patents involved in these petitions are U.S. Patent Nos. 5,654,155; 5,753,441; 6,033,857; 6,051,379; 6,083,698; 6,951,721; 7,470,510; 7,563,571; 7,622,258; 7,670,776, and 7,838,237. On October 24, 2014, GeneDx filed two additional petitions for IPR challenging the validity of U.S. Patent Nos. 5,747,282 and 5,837,492, which are also asserted against GeneDx in the District of Utah litigation. IPR is a relatively new procedure established by the America Invents Act of 2011 as a means to challenge patentability at the U.S. Patent and Trademark Office; and these petitions are the first, and so far only, use of the IPR procedure by any of the Defendants in the Myriad cases. | |
Since the filing of these IPRs, Plaintiffs have narrowed their asserted claims to 40 across 14 patents from the 67 claims across 16 patents originally asserted in Plaintiffs’ complaint against GeneDx. | |
We intend to vigorously defend ourselves in this matter. However, litigation is subject to inherent uncertainty and this matter could be decided against us and we could be required to pay substantial damages. During the pendency of the litigation, we expect to incur significant costs, and the defense of this litigation may divert, and until resolved will continue to divert, the attention of our management and other resources that would otherwise be engaged in other activities. | |
Insurance
Insurance | 12 Months Ended |
Oct. 31, 2014 | |
Insurance | |
Insurance | [16] Insurance |
The Company maintains professional liability insurance of $3,000 in the aggregate, with a per occurrence limit of $1,000. In addition, the Company maintains excess commercial insurance of $5,000 per occurrence and $5,000 in aggregate over the primary limits. In addition, the Company also maintains excess umbrella coverage of $15,000. | |
Significant_Risks_and_Uncertai
Significant Risks and Uncertainties | 12 Months Ended |
Oct. 31, 2014 | |
Significant Risks and Uncertainties | |
Significant Risks and Uncertainties | [17] Significant Risks and Uncertainties |
[A] Concentrations of Credit Risk - Cash - At October 31, 2014 and 2013, the Company had approximately $15,314 and $14,720, respectively, in cash and certificate of deposit balances at financial institutions which were in excess of the federally insured limits. | |
[B] Concentration of Credit Risk - Accounts Receivable - Credit risk with respect to accounts receivable is generally diversified due to the large number of patients comprising the client base. The Company does have significant receivable balances with government payors and various insurance carriers. Generally, the Company does not require collateral or other security to support customer receivables. However, the Company continually monitors and evaluates its client acceptance and collection procedures to minimize potential credit risks associated with its accounts receivable and establishes an allowance for uncollectible accounts and as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is not material to the financial statements. | |
A number of proposals for legislation continue to be under discussion which could substantially reduce Medicare and Medicaid (CMS) reimbursements to clinical laboratories. Depending upon the nature of regulatory action, and the content of legislation, the Company could experience a significant decrease in revenues from Medicare and Medicaid (CMS), which could have a material adverse effect on the Company. The Company is unable to predict, however, the extent to which such actions will be taken. | |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 31, 2014 | |
Acquisitions | |
Business Combinations | [18] Acquisitions |
The Company did not make any acquisitions during the fiscal year ended October 31, 2014. The company still carries certain acquisition payable balances on its books that relate to prior period acquisitions. | |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended |
Oct. 31, 2014 | |
Fair Value Measurements | |
Fair Value Measurements | [19] Fair Value of Financial Instruments |
For certain financial instruments, including cash and cash equivalents, trade receivables, trade payables, and short-term debt, it was estimated that the carrying amount approximated fair value for the majority of these items because of their short maturities. The fair value of the Company’s long-term debt is estimated based on the quoted market prices for similar issues or by discounting expected cash flows at the rates currently offered to the Company for debt of the same remaining maturities. | |
Due to the non-interest bearing nature and unspecified payment terms, it was not practicable to estimate the fair value of amounts due from related parties [See also Note 7]. | |
Health_Insurance_Plan
Health Insurance Plan | 12 Months Ended |
Oct. 31, 2014 | |
Health Insurance Plan | |
Health Insurance Plan | [20] Health Insurance Plan |
The Company has a limited self-funded health insurance plan for its employees under which the Company pays the initial $150 of covered medical expenses per person each year. The Company has a contract with an insurance carrier for any excess up to a maximum of $50,178 in the aggregate. Health insurance premium expense for the years ended October 31, 2014, 2013 and 2012 amounted to approximately $7,346, $6,797 and $5,792, respectively. Uninsured employee medical expenses incurred by the Company amounted to approximately $43,459, $32,016 and $25,994 for the years ended October 31, 2014, 2013 and 2012, respectively. During fiscal years ended October 31, 2014, 2013 and 2012, employee contributions of $6,063, $4,713 and $4,124 offset the above health plan costs. | |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Oct. 31, 2014 | |
Employee Benefit Plan | |
Employee Benefit Plan | [21] Employee Benefit Plan |
The Company sponsors a 401(k) Profit-Sharing Plan [the “Plan”]. Employees become eligible for participation after attaining the age of eighteen and completing one year of service. Participants may elect to contribute up to ten percent of their compensation, as defined in the Plan, to a maximum allowed by the Internal Revenue Service. The Company may choose to make a matching contribution to the plan for each participant who has elected to make tax-deferred contributions for the plan year, at a percentage determined each year by the Company. The Company elected to make a matching contribution which amounted to $2,130 for 2014, $1,358 for 2013 and $1,106 for 2012. These amounts were charged to the Statement of Operations. The Employer contribution will be fully vested after the third year of service. | |
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Oct. 31, 2014 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | [22] New Authoritative Accounting Pronouncements |
In May the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 titled Revenues from Contracts with Customers. The update calls for a number of revisions in the revenue recognition rules. The update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. At this time the company is studying this update and has not yet determined the effect this may have on our consolidated financial statements. | |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Selected Quarterly Financial Data | |||||||||||||||||
Selected Quarterly Financial Data | [23] Selected Quarterly Financial Data [Unaudited] | ||||||||||||||||
Three Month Ended | Audited | ||||||||||||||||
Fiscal Year | |||||||||||||||||
1/31/14 | 4/30/14 | 7/31/14 | 10/31/14 | 2014 | |||||||||||||
Net Revenues | 181,270 | 201,366 | 222,053 | 227,594 | 832,282 | ||||||||||||
Gross Profit | 72,154 | 88,549 | 102,443 | 106,853 | 369,999 | ||||||||||||
Net Income | 2,954 | 10,273 | 15,250 | 18,281 | 46,758 | ||||||||||||
Net Income Per Common Share: | |||||||||||||||||
Basic | 0.11 | 0.37 | 0.55 | 0.66 | 1.69 | ||||||||||||
Diluted | 0.11 | 0.37 | 0.55 | 0.66 | 1.68 | ||||||||||||
Weighted Average Common Shares Outstanding — Basic [in thousands] | 27,700 | 27,717 | 27,722 | 27,728 | 27,717 | ||||||||||||
Weighted Average Common Shares Outstanding - Diluted [in thousands] | 27,848 | 27,857 | 27,864 | 27,869 | 27,855 | ||||||||||||
Three Month Ended | Audited | ||||||||||||||||
Fiscal Year | |||||||||||||||||
1/31/13 | 4/30/13 | 7/31/13 | 10/31/13 | 2013 | |||||||||||||
Net Revenues | 161,256 | 176,452 | 185,427 | 192,219 | 715,355 | ||||||||||||
Gross Profit | 70,922 | 80,676 | 85,660 | 85,282 | 322,539 | ||||||||||||
Net Income | 8,665 | 11,338 | 14,701 | 11,120 | 45,825 | ||||||||||||
Net Income Per Common Share: | |||||||||||||||||
Basic | 0.31 | 0.41 | 0.53 | 0.40 | 1.65 | ||||||||||||
Diluted | 0.31 | 0.41 | 0.53 | 0.40 | 1.65 | ||||||||||||
Weighted Average Common Shares Outstanding — Basic [in thousands] | 27,716 | 27,698 | 27,672 | 27,677 | 27,691 | ||||||||||||
Weighted Average Common Shares Outstanding - Diluted [in thousands] | 27,912 | 27,879 | 27,842 | 27,844 | 27,851 | ||||||||||||
Three Month Ended | Audited | ||||||||||||||||
Fiscal Year | |||||||||||||||||
1/31/12 | 4/30/12 | 7/31/12 | 10/31/12 | 2012 | |||||||||||||
Net Revenues | $ | 138,793 | $ | 151,443 | $ | 160,532 | $ | 163,487 | $ | 614,255 | |||||||
Gross Profit | $ | 60,118 | $ | 67,534 | $ | 74,279 | $ | 74,681 | $ | 276,611 | |||||||
Net Income | $ | 7,365 | $ | 9,306 | $ | 12,596 | $ | 12,889 | $ | 42,156 | |||||||
Net Income Per Common Share: | |||||||||||||||||
Basic | $ | 0.26 | $ | 0.34 | $ | 0.45 | $ | 0.47 | $ | 1.52 | |||||||
Diluted | $ | 0.26 | $ | 0.33 | $ | 0.45 | $ | 0.46 | $ | 1.51 | |||||||
Weighted Average Common Shares Outstanding — Basic [in thousands] | 27,888 | 27,685 | 27,695 | 27,705 | 27,742 | ||||||||||||
Weighted Average Common Shares Outstanding - Diluted [in thousands] | 28,041 | 27,878 | 27,888 | 27,906 | 27,921 | ||||||||||||
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||
Oct. 31, 2014 | ||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED OCTOBER 31, 2014, 2013 AND 2012 | |||||||||
[In Thousands] | ||||||||||
(b) | (c) | (d) | (e) | |||||||
(a) | Balance at the | Charged to Cost and | Deductions Charged to Valuation | Balance at the End | ||||||
Description | Beginning of a Period | Expenses | Allowance Accounts | of a Period | ||||||
Year Ended October 31, 2014 | ||||||||||
Allowance for Doubtful Accounts | 89,261 | 133,728 | (139,713 | ) | 83,276 | |||||
Contractual Credits/Discounts | 342,297 | 3,291,033 | (3,119,864 | ) | 513,466 | |||||
Total Allowance | 431,558 | 3,424,761 | (3,259,577 | ) | 596,742 | |||||
Year Ended October 31, 2013 | ||||||||||
Allowance for Doubtful Accounts | 51,274 | 119,161 | (81,174 | ) | 89,261 | |||||
Contractual Credits/Discounts | 267,921 | 2,748,510 | (2,674,134 | ) | 342,297 | |||||
Total Allowance | 319,195 | 2,867,671 | (2,755,308 | ) | 431,558 | |||||
Year Ended October 31, 2012 | ||||||||||
Allowance for Doubtful Accounts | 45,220 | 89,396 | (83,342 | ) | 51,274 | |||||
Contractual Credits/Discounts | 235,922 | 2,390,770 | (2,358,771 | ) | 267,921 | |||||
Total Allowance | 281,142 | 2,480,166 | (2,442,113 | ) | 319,195 | |||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Summary of Significant Accounting Policies | ||||||||
Principles of Consolidation | Principles of Consolidation - The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |||||||
Cash and Cash Equivalents | Cash and Cash Equivalents - Cash equivalents are comprised of certain highly liquid investments with a maturity of three months or less when purchased. The Company had $17,507 and $17,952 in cash and cash equivalents at October 31, 2014 and 2013, respectively. | |||||||
Inventory | Inventory - Inventory is stated at the lower of cost [determined on a first-in, first-out basis] or market. Inventory consists of purchased laboratory supplies, which is used in our various testing laboratories. | |||||||
Property and Equipment | Property and Equipment - Property and equipment are carried at cost. Depreciation is computed by the straight-line method over the estimated useful lives of the respective assets, which generally range from 2 to 15 years. Leasehold improvements are amortized over the life of the lease or improvement, which is typically five years. | |||||||
The statements of operations reflect depreciation expense related to property and equipment of $23,246, $18,745 and $16,082 for the years ended October 31, 2014, 2013 and 2012, respectively. | ||||||||
On sale or retirement, the asset cost and related accumulated depreciation or amortization are removed from the accounts, and any related gain or loss is reflected in general and administrative expenses. Repairs and maintenance are charged to expense when incurred. | ||||||||
Goodwill | Goodwill - Effective November 1, 2011, the Company adopted revised Financial Accounting Standards Board (“FASB”) rules promulgated under Accounting Standards Update (“ASU”) No. 2011-08 issued on September 15, 2011, Intangibles—Goodwill and Other (Topic 350) Testing Goodwill for Impairment. Under these simplified goodwill impairment testing rules the Company assessed qualitative factors to determine whether events and circumstances lead to the conclusion that it is necessary to perform the two-step goodwill impairment test have occurred and determined that no such events had occurred. Under ASU No. 2011-08, entities are not required to calculate the fair value of a reporting unit unless they conclude that it is more likely than not that the unit’s carrying value is greater than its fair value based on an assessment of events and circumstances. The “more likely than not” threshold is when there is a likelihood of more than 50% that a reporting unit’s carrying value is greater than its fair value. No impairment loss was recognized in the years ended October 31, 2014, 2013 and 2012. | |||||||
The balance sheet reflects prior Goodwill accumulated amortization of $2,401 as of October 31, 2014 and 2013, respectively. | ||||||||
Other Intangible Assets | Other Intangible Assets - Intangible assets are amortized using the straight-line method. The estimated useful life of costs capitalized is evaluated for each specific project when completed, at which time such costs begin to be amortized. The statements of operations reflect amortization expense related to intangible assets of $1,917, $994, and $581 for the years ended October 31, 2014, 2013 and 2012, respectively. The balance sheet reflects accumulated amortization of $10,763, and $8,846 as of October 31, 2014, and 2013, respectively. During the 2014 and 2013 fiscal years, the Company did not write off any intangible assets. | |||||||
Accounting for Revenue | Accounting for Revenue | |||||||
Service revenues are principally generated from laboratory testing services including chemical diagnostic tests such as blood analysis, urine analysis and genetic testing among others. Service revenues are recognized at the time the testing services are performed and are reported at their estimated net realizable amounts. | ||||||||
Service revenues before provision for bad debts are determined utilizing gross service revenues net of contractual adjustments and discounts. Even though it is the responsibility of the patient to pay for laboratory service bills, most individuals in the United States have an agreement with a third party payor such as Medicare, Medicaid or a commercial insurance provider to pay all or a portion of their healthcare expenses. The majority of services provided by BRLI are to patients covered under a third party payor contract. In certain cases, the individual has no insurance or does not provide insurance information and in other cases tests are performed under contract to a professional organization (such as physicians, hospitals, and clinics) which reimburse BRLI directly. In the remainder of the cases, BRLI is provided the third party billing information and seeks payment from the third party under the terms and conditions of the third party payor for health service providers like BRLI. Each of these third party payors may differ not only with regard to rates, but also with regard to terms and conditions of payment and providing coverage (reimbursement) for specific tests. Estimated revenues are established based on a series of highly complex procedures and judgments that require industry specific healthcare experience and an understanding of payor methods and trends. We review our calculations on a monthly basis in order to make certain that we are properly allowing for the uncollectable portion of our gross billings due to the contractual adjustments and discounts and that our estimates remain sensitive to variances and changes within our payor groups. The contractual allowance calculation is made on the basis of historical allowance rates for the various specific payor groups on a monthly basis with a greater weight being given to the most recent trends; this process is adjusted based on recent changes in underlying contract provisions and shifts in the testing being performed. This calculation is routinely analyzed by BRLI on the basis of actual allowances issued by payors and the actual payments made to determine what adjustments, if any, are needed. The table below shows the adjustments made to gross service revenues to arrive at net revenues, the amount reported on our statement of operations. | ||||||||
($) | ||||||||
Year Ended October 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Gross Service Revenues | 4,185,052 | 3,524,108 | 3,052,431 | |||||
Contractual Adjustments and Discounts: | ||||||||
Medicare/Medicaid Portion | 391,659 | 354,638 | 320,697 | |||||
All Other Third Party Payors* | 2,899,374 | 2,393,872 | 2,070,073 | |||||
Total Contractual Adjustments and Discounts | 3,291,033 | 2,748,510 | 2,390,770 | |||||
Service Revenues Net of Contractual Adjustments and Discounts | 894,019 | 775,598 | 661,661 | |||||
Patient Service Revenue Provision for Bad Debts** | 61,737 | 60,244 | 47,406 | |||||
Net Revenues | 832,282 | 715,354 | 614,255 | |||||
Percent of Contractual Allowances, Discounts and Patient Service | ||||||||
Provision for Bad Debts to Gross Revenue. | 80.1 | % | 79.7 | % | 79.9 | % | ||
* All Other Third Party and Direct Payors consists of almost eight hundred distinct payors, including commercial health insurers and administrators as well as professionally billed accounts such as physicians, hospitals, clinics and other direct billed accounts. | ||||||||
** Represents the amount of Bad Debt Expense that is required to be presented as a deduction from patient service revenue (net of contractual allowances and discounts) pursuant to ASU No. 2011-7. | ||||||||
When new business is received by BRLI, service revenues net of contractual adjustments and discounts are calculated by reducing gross service revenues by the estimated contractual allowance. The Patient Service Revenue Provision for Bad Debts represents the amount of bad debt expense expected to occur on patient service revenue based upon our experience. The remaining bad debt expense is presented as part of operating expenses. The bad debt expense presented as part of operating expense represents the bad debt expense related to receivables from service revenues determined after taking into account our ability to collect on such revenue. | ||||||||
BRLI recognized the amounts in subsequent periods for actual allowances/discounts to gross service revenue; bad debt may have been adjusted over the same periods of time to maintain an accurate balance between net revenues and actual revenues. Management has reviewed the allowances/discounts recognized in subsequent periods and believes the amounts to be immaterial. A number of proposals for legislation or regulation continue to be under discussion which could have the effect of substantially reducing Medicare reimbursements for clinical laboratories or introducing cost sharing to beneficiaries. Depending upon the nature of regulatory action, if any, which is taken and the content of legislation, if any, which is adopted, the Company could experience a significant decrease in revenues from Medicare and Medicaid, which could have a material adverse effect on the Company. The Company is unable to predict, however, the extent to which such actions will be taken. | ||||||||
Accounting for Contractual Credits and Doubtful Accounts | Accounting for Contractual Credits and Doubtful Accounts | |||||||
It is typically the responsibility of the patient to pay for laboratory service bills. Most individuals in the United States have an agreement with a third party payor such as Medicare, Medicaid or commercial insurance to pay all or a portion of their healthcare expenses. This represents the major portion of payment for all services provided by BRLI. In certain cases, the individual has no insurance or does not provide insurance information. In the remainder of the cases, BRLI is provided the third party billing information, usually by the referring physician, and seeks payment from the third party under the terms and conditions of the third party payor for health service providers like BRLI. Each of these third party payors may differ not only with regard to rates, but also with regard to terms and conditions of payment and coverage of specific tests. BRLI routinely reviews the reimbursement policies and subsequent payments and collection rates from these different types of payors. Contractual adjustments and discounts are recorded as reductions to gross service revenues and are collectively referred to as the contractual allowance. BRLI has not been required to record an adjustment in a subsequent period related to revenue recorded in a prior period which was material in nature. Aging of accounts receivable is monitored by billing personnel and follow-up activities including collection efforts are conducted as necessary. BRLI writes off receivables against the allowance for doubtful accounts when they are deemed uncollectible. For client billing, accounts are written off when all reasonable collection efforts prove to be unsuccessful. Patient accounts, where the patient is directly responsible for all or a remainder portion of the account after partial payment or denial by a third party payor, are written off after the normal dunning cycle has occurred, although these may be subsequently transferred to a third party collection agency after being written off. Third party payor accounts are written off when they exceed the payer’s timely filing limits. Accounts Receivable on the balance sheet is net of the following amounts for contractual credits and doubtful accounts: | ||||||||
($) | ||||||||
October 31, | October 31, | |||||||
2014 | 2013 | |||||||
Contractual Credits/Discounts | 513,466 | 342,297 | ||||||
Doubtful Accounts | 83,276 | 89,261 | ||||||
Total Allowance | 596,742 | 431,558 | ||||||
Current Income Taxes | Current Income Taxes — The Company recognizes interest and penalties on settlement of tax liabilities in its income from operations. For the fiscal years 2011 through 2014, no material amounts for interest and penalties have been recorded. | |||||||
Deferred Income Taxes | Deferred Income Taxes - Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. | |||||||
The Company adopted GAAP guidance with respect to uncertain tax positions when it became effective. Under these rules the Company may recognize the tax benefit from an uncertain tax position only if it meets the more-likely-than-not criteria (over 50% likelihood) of being realized on an examination by taxing authorities. For the years ended October 31, 2012 through October 31, 2014 the Company had no material uncertain tax positions to report. | ||||||||
Earnings Per Share | Earnings Per Share - Basic earnings per share [“EPS”] reflects the amount of income attributable to each share of common stock based on average common shares outstanding during the period. Diluted EPS reflects Basic EPS while giving effect to all potential dilutive common shares that were outstanding during the period, such as common shares that could result from the exercise or conversion of securities into common stock. The computation of Diluted EPS is calculated by using the treasury stock method, which assumes that any proceeds obtained from the exercise of such dilutive securities would be used to purchase common stock at the average market price of the common stock during the period. This reduces the gross number of dilutive shares by the number of shares purchasable from the proceeds of the securities assumed to be exercised. Securities whose conversion would have an anti-dilutive effect on EPS are not assumed converted. Securities that could potentially dilute earnings in the future are disclosed in Note 10. | |||||||
Use of Estimates | Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||
Recoverability and Impairment of Intangible Assets and Other Long-Lived Assets | Recoverability and Impairment of Intangible Assets and Other Long-Lived Assets — The Company evaluates the possible impairment of its long-lived assets under the provisions of FASB codification 350-30-35 and 360-10-35. The Company reviews the recoverability of its long-lived assets on an annual basis. Evaluation of possible impairment is based on the Company’s ability to recover the asset from the expected future pretax cash flows (undiscounted and without interest charges) of the related operations. If the expected undiscounted pretax cash flows are less than the carrying amount of such asset, an impairment loss is recognized for the difference between the estimated fair value and carrying amount of the asset. No impairment loss was recognized in the fiscal years ended October 31, 2014, 2013 and 2012. | |||||||
Advertising Costs | Recoverability and Impairment of Intangible Assets and Other Long-Lived Assets — The Company evaluates the possible impairment of its long-lived assets under the provisions of FASB codification 350-30-35 and 360-10-35. The Company reviews the recoverability of its long-lived assets on an annual basis. Evaluation of possible impairment is based on the Company’s ability to recover the asset from the expected future pretax cash flows (undiscounted and without interest charges) of the related operations. If the expected undiscounted pretax cash flows are less than the carrying amount of such asset, an impairment loss is recognized for the difference between the estimated fair value and carrying amount of the asset. No impairment loss was recognized in the fiscal years ended October 31, 2014, 2013 and 2012. | |||||||
Other Income | Other Income — During the year ended October 31, 2014, the Company recorded a loss of $83 on its investment in IncellDx. The loss represents the Company’s share of IncellDX undistributed net loss under the equity method of accounting. | |||||||
Subsequent Events | Subsequent Events — The management considered subsequent events through the date the financial statements are issued as defined in FASB Codification 855-10-50. | |||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Summary of Significant Accounting Policies | ||||||||
Schedule of adjustments made to gross service revenues to arrive at net revenues | ||||||||
($) | ||||||||
Year Ended October 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Gross Service Revenues | 4,185,052 | 3,524,108 | 3,052,431 | |||||
Contractual Adjustments and Discounts: | ||||||||
Medicare/Medicaid Portion | 391,659 | 354,638 | 320,697 | |||||
All Other Third Party Payors* | 2,899,374 | 2,393,872 | 2,070,073 | |||||
Total Contractual Adjustments and Discounts | 3,291,033 | 2,748,510 | 2,390,770 | |||||
Service Revenues Net of Contractual Adjustments and Discounts | 894,019 | 775,598 | 661,661 | |||||
Patient Service Revenue Provision for Bad Debts** | 61,737 | 60,244 | 47,406 | |||||
Net Revenues | 832,282 | 715,354 | 614,255 | |||||
Percent of Contractual Allowances, Discounts and Patient Service | ||||||||
Provision for Bad Debts to Gross Revenue. | 80.1 | % | 79.7 | % | 79.9 | % | ||
* All Other Third Party and Direct Payors consists of almost eight hundred distinct payors, including commercial health insurers and administrators as well as professionally billed accounts such as physicians, hospitals, clinics and other direct billed accounts. | ||||||||
** Represents the amount of Bad Debt Expense that is required to be presented as a deduction from patient service revenue (net of contractual allowances and discounts) pursuant to ASU No. 2011-7. | ||||||||
Schedule of amounts for contractual credits and doubtful accounts | ||||||||
($) | ||||||||
October 31, | October 31, | |||||||
2014 | 2013 | |||||||
Contractual Credits/Discounts | 513,466 | 342,297 | ||||||
Doubtful Accounts | 83,276 | 89,261 | ||||||
Total Allowance | 596,742 | 431,558 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||
Oct. 31, 2014 | ||||||
Property and Equipment | ||||||
Summary of property and equipment - at cost | ||||||
$ | ||||||
October 31 | ||||||
2014 | 2013 | |||||
Medical Equipment | 77,682 | 65,762 | ||||
Leasehold Improvements | 32,157 | 27,974 | ||||
Furniture, Fixtures and Office & Computer Equipment | 26,076 | 21,621 | ||||
Automobiles and Aircraft | 20,427 | 18,242 | ||||
Sub Totals | 156,342 | 133,599 | ||||
Less Accumulated Depreciation | 89,954 | 67,950 | ||||
Totals — Net of Accumulated Depreciation | 66,388 | 65,649 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Intangible Assets | |||||||||||||
Schedule of information on intangible assets | |||||||||||||
October 31, 2014 | |||||||||||||
Weighted-Average | Accumulated | Net of | |||||||||||
Accumulated | |||||||||||||
Intangible Asset | Amortization Period | Cost | Amortization | Amortization | |||||||||
Customer Lists | 20 | $ | 8,738 | $ | 3,275 | $ | 5,463 | ||||||
Covenants Not-to-Compete | 3 | 11,131 | 5,738 | 5,393 | |||||||||
Patents and Licenses | 17 | 5,297 | 1,750 | 3,547 | |||||||||
Totals | $ | 25,166 | $ | 10,763 | $ | 14,403 | |||||||
October 31, 2013 | |||||||||||||
Weighted-Average | Accumulated | Net of | |||||||||||
Accumulated | |||||||||||||
Intangible Asset | Amortization Period | Cost | Amortization | Amortization | |||||||||
Customer Lists | 20 | $ | 8,738 | $ | 2,878 | $ | 5,860 | ||||||
Covenants Not-to-Compete | 3 | 11,131 | 4,560 | 6,571 | |||||||||
Patents and Licenses | 17 | 5,297 | 1,408 | 3,889 | |||||||||
Totals | $ | 25,166 | $ | 8,846 | $ | 16,320 | |||||||
Schedule of estimated amortization expense related to remaining intangible assets | The estimated amortization expense related to intangible assets for each of the five succeeding fiscal years and thereafter as of October 31, 2014 is as follows: | ||||||||||||
October 31, | |||||||||||||
2015 | $ | 1,852 | |||||||||||
2016 | 1,540 | ||||||||||||
2017 | 1,063 | ||||||||||||
2018 | 946 | ||||||||||||
2019 | 904 | ||||||||||||
Thereafter | 8,098 | ||||||||||||
Total | $ | 14,403 | |||||||||||
LongTerm_Debt_Bank_Tables
Long-Term Debt - Bank (Tables) | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Long-Term Debt - Bank | |||||
Schedule of principal repayment for each of the five succeeding fiscal years and thereafter | |||||
Year Ended October 31, | |||||
2015 | 524 | ||||
2016 | 557 | ||||
2017 | 592 | ||||
2018 | 1,996 | ||||
2019 | — | ||||
Thereafter | — | ||||
Totals | $ | 3,669 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Provision for Income Taxes | ||||||||
Schedule of reconciliation of income tax from continuing operations computed at the U.S. federal statutory tax rate to the Company's effective income tax rate | ||||||||
October 31 | ||||||||
2014 | 2013 | 2012 | ||||||
U.S. Federal Statutory Rate | 35 | % | 35 | % | 35 | % | ||
State and Local Taxes, Net of U.S. Federal Tax Benefit | 6.15 | % | 11.20 | % | 8.87 | % | ||
Permanent differences and Other | 0.94 | % | (2.78 | )% | (0.44 | )% | ||
Actual Rate | 42.09 | % | 43.42 | % | 43.43 | % | ||
Schedule of provision for income taxes | ||||||||
$ | ||||||||
October 31 | ||||||||
2014 | 2013 | 2012 | ||||||
Current: | ||||||||
Federal | 25,732 | 38,295 | 25,794 | |||||
State & Local | 7,700 | 14,018 | 10,203 | |||||
Deferred: | ||||||||
Federal | 598 | (10,803 | ) | (2,183 | ) | |||
State and Local | 179 | (6,238 | ) | (1,454 | ) | |||
Total Provision for Income Taxes | 34,209 | 35,272 | 32,360 | |||||
Schedule of net deferred tax asset [liability] | ||||||||
$ | ||||||||
October 31, | ||||||||
2014 | 2013 | |||||||
Deferred Tax Asset: | ||||||||
Bad Debt Allowance | 36,642 | 39,275 | ||||||
Depreciation and amortization | 3,009 | 1,815 | ||||||
Accrued Expenses | 3,803 | 3,141 | ||||||
Deferred Tax Asset - Net | 43,454 | 44,231 | ||||||
Current Deferred Tax Asset - Net | 40,040 | 42,154 | ||||||
Long Term Deferred Tax Asset - Net | 3,414 | 2,077 | ||||||
Deferred Tax Asset — Net | 43,454 | 44,231 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Earnings Per Share | ||||||||
Schedule of computation of basic and diluted net earnings per common share | The computation of basic and diluted net earnings per common share is as follows [in thousands, except per share data rounded]: | |||||||
$ | ||||||||
For Years Ended October 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Income Available to Common Stockholders | 46,758 | 45,825 | 42,156 | |||||
Weighted Average Common Shares Outstanding | 27,717 | 27,691 | 27,742 | |||||
Effect of Dilutive Securities: | ||||||||
Warrants/Options | 138 | 161 | 179 | |||||
Weighted Average Diluted Common Shares Outstanding | 27,855 | 27,852 | 27,921 | |||||
Net Income Per Share - Basic | 1.69 | 1.65 | 1.52 | |||||
Net Income Per Share - Diluted | 1.68 | 1.65 | 1.51 | |||||
Stock_Options_and_Warrants_Tab
Stock Options and Warrants (Tables) | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||
Employee incentive stock options | ||||||||||||||||||||
Summary of outstanding options | ||||||||||||||||||||
Weighted Average | Exercisable | |||||||||||||||||||
Shares | Remaining | Exercise | Shares | Exercise | ||||||||||||||||
Exercise Price Range | Outstanding | Life | Price | Outstanding | Price | |||||||||||||||
$ | 7.25 | to | $ | 7.25 | Per Share | 0 | 0.00 | 7.25 | 0 | 7.25 | ||||||||||
$ | 7.41 | to | $ | 7.67 | Per Share | 46 | 0.42 | 7.41 | 46 | 7.41 | ||||||||||
$ | 9.12 | to | $ | 9.12 | Per Share | 136 | 1.00 | 9.13 | 136 | 9.13 | ||||||||||
$ | 17.50 | to | $ | 17.50 | Per Share | 40 | 3.08 | 17.50 | 35 | 17.50 | ||||||||||
222 | 217 | |||||||||||||||||||
Employee Incentive Stock Option Plan 2003 | ||||||||||||||||||||
Employee incentive stock options | ||||||||||||||||||||
Summary of employee incentive stock option plan transactions | ||||||||||||||||||||
2003 Plan | ||||||||||||||||||||
Shares Under Options | Weighted Average | |||||||||||||||||||
[In Thousands] | Exercise Price Per Share | |||||||||||||||||||
Outstanding at October 31, 2011* | 295 | $ | 9.8 | |||||||||||||||||
Granted | — | — | ||||||||||||||||||
Expired | (13 | ) | 9.13 | |||||||||||||||||
Exercised | (23 | ) | 8.52 | |||||||||||||||||
Outstanding at October 31, 2012** | 259 | $ | 9.95 | |||||||||||||||||
Granted | — | — | ||||||||||||||||||
Expired | (6 | ) | 8.64 | |||||||||||||||||
Exercised | (4 | ) | 7.25 | |||||||||||||||||
Outstanding at October 31, 2013*** | 249 | $ | 10.02 | |||||||||||||||||
Granted | — | |||||||||||||||||||
Expired | — | |||||||||||||||||||
Exercised | (27 | ) | 7.92 | |||||||||||||||||
Outstanding at October 31, 2014**** | 222 | $ | 10.28 | |||||||||||||||||
*Eligible for exercise at October 31, 2011 were 275 at a weighted average exercise price per share of $9.80 | ||||||||||||||||||||
**Eligible for exercise at October 31, 2012 were 244 at a weighted average exercise price per share of $9.95 | ||||||||||||||||||||
***Eligible for exercise at October 31, 2013 were 239 at a weighted average exercise price per share of $9.97 | ||||||||||||||||||||
****Eligible for exercise at October 31, 2014 were 217 at a weighted average exercise price per share of $10.28 | ||||||||||||||||||||
Employee Incentive Stock Option Plan 2000 | ||||||||||||||||||||
Employee incentive stock options | ||||||||||||||||||||
Summary of employee incentive stock option plan transactions | ||||||||||||||||||||
2000 Plan | ||||||||||||||||||||
Shares Under Options | Weighted Average | |||||||||||||||||||
[In Thousands] | Exercise Price Per Share | |||||||||||||||||||
Outstanding and Eligible for Exercise at October 31, 2011 | 60 | 5.19 | ||||||||||||||||||
Granted | — | — | ||||||||||||||||||
Expired | — | — | ||||||||||||||||||
Exercised | (8 | ) | 3.39 | |||||||||||||||||
Outstanding and Eligible for Exercise at October 31, 2012 | (52 | ) | 5.47 | |||||||||||||||||
— | — | |||||||||||||||||||
Granted | — | — | ||||||||||||||||||
Expired | (2 | ) | 3.6 | |||||||||||||||||
Exercised | (44 | ) | $ | 5.25 | ||||||||||||||||
Outstanding and Eligible for Exercise at October 31, 2013 | 6 | 7.67 | ||||||||||||||||||
Granted | — | |||||||||||||||||||
Expired | — | |||||||||||||||||||
Exercised | (6 | ) | 7.67 | |||||||||||||||||
Outstanding and Eligible for Exercise at October 31, 2014 | — | |||||||||||||||||||
Employment_Contracts_and_Consu1
Employment Contracts and Consulting Agreements (Tables) | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Employment Contracts and Consulting Agreements | |||||
Schedule of aggregate minimum commitment under employment contracts and agreements, excluding commissions or consumer price index increases | |||||
October 31 | Employees | ||||
and | |||||
Consultants | |||||
2015 | $ | 4,582 | |||
2016 | 3,706 | ||||
2017 | 3,706 | ||||
2018 | 1,701 | ||||
2019 | — | ||||
Thereafter | — | ||||
Total | $ | 13,695 | |||
Capitalized_Lease_Obligations_
Capitalized Lease Obligations (Tables) | 12 Months Ended | |||||
Oct. 31, 2014 | ||||||
Capitalized Lease Obligations | ||||||
Schedule of assets under capital leases expiring in fiscal 2018 | ||||||
($) | ||||||
October 31 | ||||||
2014 | 2013 | |||||
Medical Equipment | 20,774 | 15,013 | ||||
Automobiles | 12,674 | 10,581 | ||||
Totals | 33,447 | 25,594 | ||||
Less: Accumulated Depreciation | 17,656 | 13,125 | ||||
Net | 15,791 | 12,469 | ||||
Schedule of aggregate future minimum rentals under capital leases | ||||||
October 31, | ($) | |||||
2015 | 6,623 | |||||
2016 | 5,749 | |||||
2017 | 4,186 | |||||
2018 | 2,368 | |||||
2019 | 485 | |||||
Thereafter | 1 | |||||
Total | 19,412 | |||||
Less Interest: | 1,032 | |||||
Present Value of Minimum Lease Payments | 18,380 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||
Oct. 31, 2014 | ||||||
Commitments and Contingencies | ||||||
Schedule of aggregate future minimum rental payments on non cancelable operating leases (exclusive of several month to month leases) | ||||||
October 31, | Property($) | Equipment($) | ||||
2015 | 8,564 | 345 | ||||
2016 | 2,122 | 203 | ||||
2017 | 831 | 63 | ||||
2018 | 689 | |||||
2019 | 626 | |||||
Thereafter | 103 | |||||
Totals: | 12,935 | 611 | ||||
Schedule of minimum purchase commitments | ||||||
October 31 | Reagents ($) | |||||
2015 | 73,709 | |||||
2016 | 62,534 | |||||
2017 | 36,188 | |||||
2018 | 21,241 | |||||
2019 | 8,663 | |||||
Thereafter | — | |||||
Totals: | 202,335 | |||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Selected Quarterly Financial Data | |||||||||||||||||
Schedule of quarterly financial data | |||||||||||||||||
Three Month Ended | Audited | ||||||||||||||||
Fiscal Year | |||||||||||||||||
1/31/14 | 4/30/14 | 7/31/14 | 10/31/14 | 2014 | |||||||||||||
Net Revenues | 181,270 | 201,366 | 222,053 | 227,594 | 832,282 | ||||||||||||
Gross Profit | 72,154 | 88,549 | 102,443 | 106,853 | 369,999 | ||||||||||||
Net Income | 2,954 | 10,273 | 15,250 | 18,281 | 46,758 | ||||||||||||
Net Income Per Common Share: | |||||||||||||||||
Basic | 0.11 | 0.37 | 0.55 | 0.66 | 1.69 | ||||||||||||
Diluted | 0.11 | 0.37 | 0.55 | 0.66 | 1.68 | ||||||||||||
Weighted Average Common Shares Outstanding — Basic [in thousands] | 27,700 | 27,717 | 27,722 | 27,728 | 27,717 | ||||||||||||
Weighted Average Common Shares Outstanding - Diluted [in thousands] | 27,848 | 27,857 | 27,864 | 27,869 | 27,855 | ||||||||||||
Three Month Ended | Audited | ||||||||||||||||
Fiscal Year | |||||||||||||||||
1/31/13 | 4/30/13 | 7/31/13 | 10/31/13 | 2013 | |||||||||||||
Net Revenues | 161,256 | 176,452 | 185,427 | 192,219 | 715,355 | ||||||||||||
Gross Profit | 70,922 | 80,676 | 85,660 | 85,282 | 322,539 | ||||||||||||
Net Income | 8,665 | 11,338 | 14,701 | 11,120 | 45,825 | ||||||||||||
Net Income Per Common Share: | |||||||||||||||||
Basic | 0.31 | 0.41 | 0.53 | 0.40 | 1.65 | ||||||||||||
Diluted | 0.31 | 0.41 | 0.53 | 0.40 | 1.65 | ||||||||||||
Weighted Average Common Shares Outstanding — Basic [in thousands] | 27,716 | 27,698 | 27,672 | 27,677 | 27,691 | ||||||||||||
Weighted Average Common Shares Outstanding - Diluted [in thousands] | 27,912 | 27,879 | 27,842 | 27,844 | 27,851 | ||||||||||||
Three Month Ended | Audited | ||||||||||||||||
Fiscal Year | |||||||||||||||||
1/31/12 | 4/30/12 | 7/31/12 | 10/31/12 | 2012 | |||||||||||||
Net Revenues | $ | 138,793 | $ | 151,443 | $ | 160,532 | $ | 163,487 | $ | 614,255 | |||||||
Gross Profit | $ | 60,118 | $ | 67,534 | $ | 74,279 | $ | 74,681 | $ | 276,611 | |||||||
Net Income | $ | 7,365 | $ | 9,306 | $ | 12,596 | $ | 12,889 | $ | 42,156 | |||||||
Net Income Per Common Share: | |||||||||||||||||
Basic | $ | 0.26 | $ | 0.34 | $ | 0.45 | $ | 0.47 | $ | 1.52 | |||||||
Diluted | $ | 0.26 | $ | 0.33 | $ | 0.45 | $ | 0.46 | $ | 1.51 | |||||||
Weighted Average Common Shares Outstanding — Basic [in thousands] | 27,888 | 27,685 | 27,695 | 27,705 | 27,742 | ||||||||||||
Weighted Average Common Shares Outstanding - Diluted [in thousands] | 28,041 | 27,878 | 27,888 | 27,906 | 27,921 | ||||||||||||
Organization_and_Business_Deta
Organization and Business (Details) (Laboratory Testing Business) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Organization and Business | |||
Number of Reportable Segments | 1 | ||
Minimum | |||
Organization and Business | |||
Percentage of assets to consolidated assets | 98.00% | 98.00% | 98.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Cash and Cash Equivalents | ||||
Cash and Cash Equivalents | $17,507 | $17,952 | $25,143 | $22,013 |
Property and equipment | ||||
Depreciation expense | $23,246 | $18,745 | $16,082 | |
Leasehold Improvements | ||||
Property and equipment | ||||
Estimated useful lives | 5 years | |||
Minimum | ||||
Property and equipment | ||||
Estimated useful lives | 2 years | |||
Maximum | ||||
Property and equipment | ||||
Estimated useful lives | 15 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Goodwill | |||
Impairment loss | $0 | $0 | $0 |
Goodwill accumulated amortization | 2,401 | 2,401 | |
Amortization expenses | 1,917 | 994 | 581 |
Accumulated Amortization | $10,763 | $8,846 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
item | item | item | |||||||||||||
Revenue Recognition and Contractual Adjustments | |||||||||||||||
Gross Service Revenues | $4,185,052 | $3,524,108 | $3,052,431 | ||||||||||||
Contractual Adjustments and Discounts: | |||||||||||||||
Medicare/Medicaid Portion | 391,659 | 354,638 | 320,697 | ||||||||||||
All Other Third Party Payors | 2,899,374 | 2,393,872 | 2,070,073 | ||||||||||||
Total Contractual Adjustments and Discounts | 3,291,033 | 2,748,510 | 2,390,770 | ||||||||||||
Service Revenues Net of Contractual Adjustments and Discounts | 894,019 | 775,598 | 661,661 | ||||||||||||
Patient Service Revenue Provision for Bad Debts | 61,737 | 60,244 | 47,406 | ||||||||||||
Net Revenues | $227,594 | $222,053 | $201,366 | $181,270 | $192,219 | $185,427 | $176,452 | $161,256 | $163,487 | $160,532 | $151,443 | $138,793 | $832,282 | $715,354 | $614,255 |
Percent of Contractual Allowances, Discounts and Patient Service Provision for Bad Debts to Gross Revenue. | 80.10% | 79.70% | 79.90% | ||||||||||||
Number of distinct payors included in all other third party and Direct | 800 | 800 | 800 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Contractual Adjustments and Discounts: | ||||
Percent of Contractual Allowances, Discounts and Patient Service Provision for Bad Debts to Gross Revenue. | 80.10% | 79.70% | 79.90% | |
Allowances | ||||
Total Allowance | $596,742 | $431,558 | $319,195 | $281,142 |
Allowance for Contractual Credits and Discounts | ||||
Allowances | ||||
Total Allowance | 513,466 | 342,297 | 267,921 | 235,922 |
Allowance for Doubtful Accounts | ||||
Allowances | ||||
Total Allowance | $83,276 | $89,261 | $51,274 | $45,220 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Recoverability and Impairment of Intangible Assets and Other Long-Lived Assets | |||
Impairment loss | $0 | $0 | $0 |
Advertising Costs | |||
Advertising Costs | 3,188 | 3,200 | 2,366 |
Equity method investment | |||
Share of undistributed loss | 83 | 450 | 323 |
IncellDx Inc | |||
Equity method investment | |||
Share of undistributed loss | $83 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property and equipment | ||
PROPERTY AND EQUIPMENT - AT COST | $156,342 | $133,599 |
Less: Accumulated Depreciation | 89,954 | 67,950 |
PROPERTY AND EQUIPMENT - NET | 66,388 | 65,649 |
Equipment | ||
Property and equipment | ||
PROPERTY AND EQUIPMENT - AT COST | 77,682 | 65,762 |
Leasehold Improvements | ||
Property and equipment | ||
PROPERTY AND EQUIPMENT - AT COST | 32,157 | 27,974 |
Furniture Fixtures and Office and Computer Equipment | ||
Property and equipment | ||
PROPERTY AND EQUIPMENT - AT COST | 26,076 | 21,621 |
Transportation Equipment | ||
Property and equipment | ||
PROPERTY AND EQUIPMENT - AT COST | $20,427 | $18,242 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Intangible assets | |||
Cost | $25,166 | $25,166 | |
Accumulated Amortization | 10,763 | 8,846 | |
Net of Accumulated Amortization | 14,403 | 16,320 | |
Amortization expenses | 1,917 | 994 | 581 |
Estimated amortization expense related to intangible assets | |||
2015 | 1,852 | ||
2016 | 1,540 | ||
2017 | 1,063 | ||
2018 | 946 | ||
2019 | 904 | ||
Thereafter | 8,098 | ||
Net of Accumulated Amortization | 14,403 | 16,320 | |
Customer Lists | |||
Intangible assets | |||
Weighted-Average Amortization Period | 20 years | 20 years | |
Cost | 8,738 | 8,738 | |
Accumulated Amortization | 3,275 | 2,878 | |
Net of Accumulated Amortization | 5,463 | 5,860 | |
Estimated amortization expense related to intangible assets | |||
Net of Accumulated Amortization | 5,463 | 5,860 | |
Noncompete Agreements | |||
Intangible assets | |||
Weighted-Average Amortization Period | 3 years | 3 years | |
Cost | 11,131 | 11,131 | |
Accumulated Amortization | 5,738 | 4,560 | |
Net of Accumulated Amortization | 5,393 | 6,571 | |
Estimated amortization expense related to intangible assets | |||
Net of Accumulated Amortization | 5,393 | 6,571 | |
Patents and Licenses | |||
Intangible assets | |||
Weighted-Average Amortization Period | 17 years | 17 years | |
Cost | 5,297 | 5,297 | |
Accumulated Amortization | 1,750 | 1,408 | |
Net of Accumulated Amortization | 3,547 | 3,889 | |
Estimated amortization expense related to intangible assets | |||
Net of Accumulated Amortization | $3,547 | $3,889 |
Revolving_Note_Payable_Bank_De
Revolving Note Payable - Bank (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Revolving note payable - Bank | ||
Amount of credit utilized | 33,380 | $26,139 |
Revolving Credit Facility | ||
Revolving note payable - Bank | ||
Maximum amount of the credit line available pursuant to the loan agreement | 45,000 | |
Maximum credit line available as percentage of accounts receivable | 50.00% | |
Revolving Credit Facility | Debt Instrument, Variable Rate Base Rate | ||
Revolving note payable - Bank | ||
Variable rate basis | base rate | |
Variable rate of interest (as a percent) | 3.50% | |
Revolving Credit Facility | Debt Instrument, Variable Rate Base Rate | Minimum | ||
Revolving note payable - Bank | ||
Percentage of additional interest | 1.00% | |
Revolving Credit Facility | Debt Instrument, Variable Rate Base Rate | Maximum | ||
Revolving note payable - Bank | ||
Percentage of additional interest | 4.00% | |
Revolving Credit Facility | Debt Instrument, Variable Rate Eurodollar | ||
Revolving note payable - Bank | ||
Variable rate basis | Eurodollar | |
Revolving Credit Facility | Debt Instrument, Variable Rate Eurodollar | Minimum | ||
Revolving note payable - Bank | ||
Percentage of additional interest | 1.00% | |
Revolving Credit Facility | Debt Instrument, Variable Rate Eurodollar | Maximum | ||
Revolving note payable - Bank | ||
Percentage of additional interest | 4.00% |
LongTerm_Debt_Bank_Details
Long-Term Debt - Bank (Details) (USD $) | 1 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2010 | Oct. 31, 2014 |
installment | ||
Long-term debt | ||
Debt outstanding | $3,669 | |
Principal repayment for each of the five succeeding fiscal years and thereafter | ||
2015 | 524 | |
2016 | 557 | |
2017 | 592 | |
2018 | 1,996 | |
Totals | 3,669 | |
Medium-term Notes | ||
Long-term debt | ||
Term of debt | 7 years | |
Debt issued | 5,408 | |
Debt instrument interest rate (as a percent) | 6.12% | |
Number of equal monthly installments | 84 | |
Monthly installment including principal and interest | 61 | |
Debt outstanding | 3,669 | |
Principal repayment for each of the five succeeding fiscal years and thereafter | ||
Totals | $3,669 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Reconciliation of income tax from continuing operations computed at the U.S. federal statutory tax rate to the company's effective income tax rate | |||
U.S. Federal Statutory Rate (as a percent) | 35.00% | 35.00% | 35.00% |
State and Local Taxes, Net of U.S. Federal Tax Benefit (as a percent) | 6.15% | 11.20% | 8.87% |
Permanent differences and Other (as a percent) | 0.94% | -2.78% | -0.44% |
Actual Rate (as a percent) | 42.09% | 43.42% | 43.43% |
Current: | |||
Federal | $25,732 | $38,295 | $25,794 |
State & Local | 7,700 | 14,018 | 10,203 |
Net deferred tax benefit | |||
Federal | 598 | -10,803 | -2,183 |
State and Local | 179 | -6,238 | -1,454 |
Provision for Income Taxes | 34,209 | 35,272 | 32,360 |
Net operating loss carry-forwards | 0 | 0 | 0 |
Deferred Tax Asset: | |||
Bad Debt Allowance | 36,642 | 39,275 | |
Depreciation and amortization | 3,009 | 1,815 | |
Accrued Expenses | 3,803 | 3,141 | |
Current Deferred Tax Asset - Net | 40,040 | 42,154 | |
Long Term Deferred Tax Asset - Net | 3,414 | 2,077 | |
Deferred Tax Asset - Net | 43,454 | 44,231 | |
Net deferred tax benefit | |||
Deferred tax provision (benefit) | 777 | -17,041 | -3,638 |
Net benefit in allowance for bad debts | 2,633 | ||
Benefit from depreciation and amortization | 1,194 | ||
Benefit in certain accrued expenses | $661 |
Capital_Transactions_Details
Capital Transactions (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Dec. 19, 2013 | Dec. 06, 2012 | Nov. 11, 2011 |
Vote | ||||||
Capital Transactions | ||||||
Preferred Stock, Authorized shares, including Series A Junior Preferred Stock | 1,666,667 | 1,666,667 | ||||
Preferred Stock, Par Value (in dollars per share) | $0.10 | $0.10 | ||||
Outstanding shares of preferred stock | 0 | 0 | ||||
Number of votes per share for holders of common stock | 1 | |||||
Number of shares of common stock authorized to be repurchased | 2,000,000 | 714,550 | 1,000,000 | |||
Number of shares of common stock repurchased | 81,600 | 285,450 | ||||
Cost of shares of common stock repurchased | $2,030 | $5,193 | ||||
Number of shares of common stock issued for employment or consulting services | 11,431 | 11,431 | 11,432 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Earnings Per Share | |||||||||||||||
Income Available to Common Stockholders | $18,281 | $15,250 | $10,273 | $2,954 | $11,120 | $14,701 | $11,338 | $8,665 | $12,889 | $12,596 | $9,306 | $7,365 | $46,758 | $45,825 | $42,156 |
Weighted Average Common Shares Outstanding - Basic (in shares) | 27,728,000 | 27,722,000 | 27,717,000 | 27,700,000 | 27,677,000 | 27,672,000 | 27,698,000 | 27,716,000 | 27,705,000 | 27,695,000 | 27,685,000 | 27,888,000 | 27,716,608 | 27,690,677 | 27,742,257 |
Effect of Dilutive Securities: Warrants/Options (in shares) | 138,000 | 161,000 | 179,000 | ||||||||||||
Weighted Average Common Shares Outstanding - Diluted (in shares) | 27,869,000 | 27,864,000 | 27,857,000 | 27,848,000 | 27,844,000 | 27,842,000 | 27,879,000 | 27,912,000 | 27,906,000 | 27,888,000 | 27,878,000 | 28,041,000 | 27,855,125 | 27,851,720 | 27,920,920 |
Net Income Per Share - Basic (in dollars per share) | $0.66 | $0.55 | $0.37 | $0.11 | $0.40 | $0.53 | $0.41 | $0.31 | $0.47 | $0.45 | $0.34 | $0.26 | $1.69 | $1.65 | $1.52 |
Net Income Per Share - Diluted (in dollars per share) | $0.66 | $0.55 | $0.37 | $0.11 | $0.40 | $0.53 | $0.41 | $0.31 | $0.46 | $0.45 | $0.33 | $0.26 | $1.68 | $1.65 | $1.51 |
Stock_Options_and_Warrants_Det
Stock Options and Warrants (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Employee Incentive Stock Option Plan 2003 | ||||
Employee incentive stock options | ||||
Maximum aggregate shares of common stock authorized under the plan | 1,600,000 | |||
Minimum specified percentage of outstanding common stock for the holder of which the exercise price must be at least 110% of fair market value | 10.00% | |||
Period within which options must be exercised by the optionee after termination of his employment due to retirement | 3 months | |||
Period within which options must be exercised by the optionee after termination of employment due to disability or death | 1 year | |||
Shares Under Options | ||||
Outstanding at the beginning of the period (in shares) | 249,000 | 259,000 | 295,000 | |
Expired (in shares) | -6,000 | -13,000 | ||
Exercised (in shares) | -27,000 | -4,000 | -23,000 | |
Outstanding at the end of the period (in shares) | 222,000 | 249,000 | 259,000 | |
Weighted Average | ||||
Outstanding at the beginning of the period (in dollars per share) | $10.02 | $9.95 | $9.80 | |
Expired (in dollars per share) | $8.64 | $9.13 | ||
Exercised (in dollars per share) | $7.92 | $7.25 | $8.52 | |
Outstanding at the end of the period (in dollars per share) | $10.28 | $10.02 | $9.95 | |
Employee incentive stock option plan, additional disclosures | ||||
Outstanding options, eligible for exercise (in shares) | 217,000 | 239,000 | 244,000 | 275,000 |
Outstanding options, eligible for exercise, weighted average exercise price (in dollars per share) | $10.28 | $9.97 | $9.95 | $9.80 |
Employee Incentive Stock Option Plan 2003 | Maximum | ||||
Employee incentive stock options | ||||
Option term | 10 years | |||
Aggregate fair market value of the common stock with respect to which options are exercisable for the first time by the grantee (in dollars) | $100 | |||
Percentage of exercise price of option for which the Board (or a Stock Option Committee) in its sole discretion, cause the company to lend money or guaranty any obligation | 50.00% | |||
Employee Incentive Stock Option Plan 2003 | Shareholder with Minimum Specified Percentage of Stock | ||||
Employee incentive stock options | ||||
Exercise price as a percentage of fair value of common stock | 110.00% | |||
Option term | 5 years | |||
Employee Incentive Stock Option Plan 2000 | ||||
Employee incentive stock options | ||||
Maximum aggregate shares of common stock authorized under the plan | 1,600,000 | |||
Exercise price as a percentage of fair value of common stock | 100.00% | |||
Minimum specified percentage of outstanding common stock for the holder of which the exercise price must be at least 110% of fair market value | 10.00% | |||
Shares Under Options | ||||
Outstanding at the beginning of the period (in shares) | 6,000 | 52,000 | 60,000 | |
Granted (in shares) | 0 | 0 | 0 | |
Expired (in shares) | 0 | -2,000 | 0 | |
Exercised (in shares) | -6,000 | -44,000 | -8,000 | |
Outstanding at the end of the period (in shares) | 6,000 | 52,000 | ||
Weighted Average | ||||
Outstanding at the beginning of the period (in dollars per share) | $7.67 | $5.47 | $5.19 | |
Expired (in dollars per share) | $3.60 | |||
Exercised (in dollars per share) | $5.25 | $3.39 | ||
Outstanding at the end of the period (in dollars per share) | $7.67 | $7.67 | $5.47 | |
Employee Incentive Stock Option Plan 2000 | Maximum | ||||
Employee incentive stock options | ||||
Option term | 10 years | |||
Employee Incentive Stock Option Plan 2000 | Shareholder with Minimum Specified Percentage of Stock | ||||
Employee incentive stock options | ||||
Exercise price as a percentage of fair value of common stock | 110.00% |
Stock_Options_and_Warrants_Det1
Stock Options and Warrants (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Employee Incentive Stock Options | |||
Weighted Average, Shares Outstanding | 222 | ||
Exercisable, Shares Outstanding | 217 | ||
Compensation cost | |||
Compensation cost recognized (in dollars) | $40 | $40 | $40 |
Compensation cost, related tax benefit (in dollars) | $0 | $0 | $0 |
7.25 to 7.25 | |||
Employee Incentive Stock Options | |||
Exercise price range, low end of range (in dollars per share) | $7.25 | ||
Exercise price range, high end of range (in dollars per share) | $7.25 | ||
Weighted Average, Exercise Price (in dollars per share) | $7.25 | ||
Exercisable, Exercise Price (in dollars per share) | $7.25 | ||
7.41 to 7.67 | |||
Employee Incentive Stock Options | |||
Exercise price range, low end of range (in dollars per share) | $7.41 | ||
Exercise price range, high end of range (in dollars per share) | $7.67 | ||
Weighted Average, Shares Outstanding | 46 | ||
Weighted Average, Remaining Life | 5 months 1 day | ||
Weighted Average, Exercise Price (in dollars per share) | $7.41 | ||
Exercisable, Shares Outstanding | 46 | ||
Exercisable, Exercise Price (in dollars per share) | $7.41 | ||
9.12 to 9.12 | |||
Employee Incentive Stock Options | |||
Exercise price range, low end of range (in dollars per share) | $9.12 | ||
Exercise price range, high end of range (in dollars per share) | $9.12 | ||
Weighted Average, Shares Outstanding | 136 | ||
Weighted Average, Remaining Life | 1 year | ||
Weighted Average, Exercise Price (in dollars per share) | $9.13 | ||
Exercisable, Shares Outstanding | 136 | ||
Exercisable, Exercise Price (in dollars per share) | $9.13 | ||
17.50 to 17.50 | |||
Employee Incentive Stock Options | |||
Exercise price range, low end of range (in dollars per share) | $17.50 | ||
Exercise price range, high end of range (in dollars per share) | $17.50 | ||
Weighted Average, Shares Outstanding | 40 | ||
Weighted Average, Remaining Life | 3 years 29 days | ||
Weighted Average, Exercise Price (in dollars per share) | $17.50 | ||
Exercisable, Shares Outstanding | 35 | ||
Exercisable, Exercise Price (in dollars per share) | $17.50 |
Employment_Contracts_and_Consu2
Employment Contracts and Consulting Agreements (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2014 |
agreement | |
Aggregate minimum commitment under these employment contracts and agreements, excluding commissions or consumer price index increases | |
2015 | $4,582 |
2016 | 3,706 |
2017 | 3,706 |
2018 | 1,701 |
Total | 13,695 |
Number of additional at-will employment and consulting agreements | 70 |
Annual aggregate commitments under agreement | $39,254 |
Minimum | |
Aggregate minimum commitment under these employment contracts and agreements, excluding commissions or consumer price index increases | |
Bonuses and commissions based on percentage of collected revenues (as a percent) | 1.00% |
Maximum | |
Aggregate minimum commitment under these employment contracts and agreements, excluding commissions or consumer price index increases | |
Bonuses and commissions based on percentage of collected revenues (as a percent) | 10.00% |
Capitalized_Lease_Obligations_1
Capitalized Lease Obligations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Assets under capital leases | |||
Totals | $33,447 | $25,594 | |
Less: Accumulated Depreciation | 17,656 | 13,125 | |
Net | 15,791 | 12,469 | |
Depreciation expense on assets under capital leases | 6,889 | 6,494 | 3,792 |
Future minimum rentals under capital leases | |||
2015 | 6,623 | ||
2016 | 5,749 | ||
2017 | 4,186 | ||
2018 | 2,368 | ||
2019 | 485 | ||
Thereafter | 1 | ||
Total | 19,412 | ||
Less Interest | 1,032 | ||
Total | 18,380 | ||
Minimum | |||
Assets under capital leases | |||
Interest rate under capital leases | 2.00% | ||
Maximum | |||
Assets under capital leases | |||
Interest rate under capital leases | 7.00% | ||
Equipment | |||
Assets under capital leases | |||
Totals | 20,774 | 15,013 | |
Automobiles [Member] | |||
Assets under capital leases | |||
Totals | $12,674 | $10,581 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Operating Leases | |||
Total rental expenses for property and equipment | $13,411 | $10,568 | $8,787 |
Contingent rental amounts | 0 | ||
Minimum purchase commitments | |||
2015 | 73,709 | ||
2016 | 62,534 | ||
2017 | 36,188 | ||
2018 | 21,241 | ||
2019 | 8,663 | ||
Totals | 202,335 | ||
Regent supplies expenses | 60,777 | 7,873 | 13,338 |
Property [Member] | |||
Aggregate future minimum rental payments | |||
2015 | 8,564 | ||
2016 | 2,122 | ||
2017 | 831 | ||
2018 | 689 | ||
2019 | 626 | ||
Thereafter | 103 | ||
Totals | 12,935 | ||
Equipment | |||
Aggregate future minimum rental payments | |||
2015 | 345 | ||
2016 | 203 | ||
2017 | 63 | ||
Totals | $611 | ||
Minimum | |||
Operating Leases | |||
Period of renewal options | 1 year | ||
Maximum | |||
Operating Leases | |||
Period of renewal options | 5 years |
Litigation_Details
Litigation (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
Dec. 18, 2013 | Oct. 31, 2014 | Aug. 18, 2014 | Oct. 16, 2013 | |
item | item | |||
Horizon Blue Cross Blue Shield of New Jersey Member | Minimum | ||||
Litigation | ||||
Number of years of membership | 20 years | |||
Cost of unreimbursed services | $20,000,000 | |||
GeneDx member | Inter parties review member | ||||
Litigation | ||||
Number of petitions filed | 11 | |||
Number of additional petitions filed | 2 | |||
GeneDx member | Infringement of patent member | ||||
Litigation | ||||
Number of patents against which lawsuit was filed | 16 | |||
GeneDx member | Minimum | Inter parties review member | ||||
Litigation | ||||
Number of patents against which lawsuit was filed | 14 | |||
Number of claims narrowed | 40 | |||
GeneDx member | Maximum | Inter parties review member | ||||
Litigation | ||||
Number of patents against which lawsuit was filed | 16 | |||
Number of claims narrowed | 67 |
Insurance_Details
Insurance (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2014 |
Insurance | |
Professional liability insurance coverage | $3,000 |
Professional liability insurance coverage per occurrence | 1,000 |
Excess commercial insurance coverage per occurrence | 5,000 |
Excess commercial insurance coverage over the primary limits | 5,000 |
Excess umbrella coverage | $15,000 |
Significant_Risks_and_Uncertai1
Significant Risks and Uncertainties (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Significant Risks and Uncertainties | ||
Cash and certificate of deposit balances at financial institutions in excess of the federally insured limits | $15,314 | $14,720 |
Health_Insurance_Plan_Details
Health Insurance Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Health Insurance Plan | |||
Initial amount the entity pays for covered medical expenses per person each year | $150 | ||
Maximum amount per person, covered by the third party insurance carrier for any excess | 50,178 | ||
Health insurance premium expenses | 7,346 | 6,797 | 5,792 |
Uninsured employee medical expenses | 43,459 | 32,016 | 25,994 |
Employee contributions for limited health insurance plan | $6,063 | $4,713 | $4,124 |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Employee Benefit Plan | |||
Age requirement for employees to participate in the Plan | 18 years | ||
Requisite service period | 1 year | ||
Contribution by participants (as a percent) | 10.00% | ||
Entity's contribution under the Plan | $2,130 | $1,358 | $1,106 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Selected Quarterly Financial Data | |||||||||||||||
Net Revenues | $227,594 | $222,053 | $201,366 | $181,270 | $192,219 | $185,427 | $176,452 | $161,256 | $163,487 | $160,532 | $151,443 | $138,793 | $832,282 | $715,354 | $614,255 |
Gross Profit | 106,853 | 102,443 | 88,549 | 72,154 | 85,282 | 85,660 | 80,676 | 70,922 | 74,681 | 74,279 | 67,534 | 60,118 | 369,999 | 322,539 | 276,611 |
Net Income | $18,281 | $15,250 | $10,273 | $2,954 | $11,120 | $14,701 | $11,338 | $8,665 | $12,889 | $12,596 | $9,306 | $7,365 | $46,758 | $45,825 | $42,156 |
Net Income Per Common Share: | |||||||||||||||
Net Income Per Share - Basic (in dollars per share) | $0.66 | $0.55 | $0.37 | $0.11 | $0.40 | $0.53 | $0.41 | $0.31 | $0.47 | $0.45 | $0.34 | $0.26 | $1.69 | $1.65 | $1.52 |
Net Income Per Share - Diluted (in dollars per share) | $0.66 | $0.55 | $0.37 | $0.11 | $0.40 | $0.53 | $0.41 | $0.31 | $0.46 | $0.45 | $0.33 | $0.26 | $1.68 | $1.65 | $1.51 |
Weighted Average Common Shares Outstanding - Basic (in shares) | 27,728,000 | 27,722,000 | 27,717,000 | 27,700,000 | 27,677,000 | 27,672,000 | 27,698,000 | 27,716,000 | 27,705,000 | 27,695,000 | 27,685,000 | 27,888,000 | 27,716,608 | 27,690,677 | 27,742,257 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 27,869,000 | 27,864,000 | 27,857,000 | 27,848,000 | 27,844,000 | 27,842,000 | 27,879,000 | 27,912,000 | 27,906,000 | 27,888,000 | 27,878,000 | 28,041,000 | 27,855,125 | 27,851,720 | 27,920,920 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Valuation and qualifying accounts | |||
Balance at the Beginning of a Period | $431,558 | $319,195 | $281,142 |
Charged to Cost and Expenses | 3,424,761 | 2,867,671 | 2,480,166 |
Deductions Charged to Valuation Allowance Accounts | -3,259,577 | -2,755,308 | -2,442,113 |
Balance at the End of a Period | 596,742 | 431,558 | 319,195 |
Allowance for Doubtful Accounts | |||
Valuation and qualifying accounts | |||
Balance at the Beginning of a Period | 89,261 | 51,274 | 45,220 |
Charged to Cost and Expenses | 133,728 | 119,161 | 89,396 |
Deductions Charged to Valuation Allowance Accounts | -139,713 | -81,174 | -83,342 |
Balance at the End of a Period | 83,276 | 89,261 | 51,274 |
Allowance for Contractual Credits and Discounts | |||
Valuation and qualifying accounts | |||
Balance at the Beginning of a Period | 342,297 | 267,921 | 235,922 |
Charged to Cost and Expenses | 3,291,033 | 2,748,510 | 2,390,770 |
Deductions Charged to Valuation Allowance Accounts | -3,119,864 | -2,674,134 | -2,358,771 |
Balance at the End of a Period | $513,466 | $342,297 | $267,921 |