Meridian Bioscience (VIVO) 10-Q 9 Aug 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	VIVO
Entity Registrant Name	MERIDIAN BIOSCIENCE INC
Entity Central Index Key	794,172
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		42,086,737

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
NET REVENUES	$ 50,665	$ 48,204	$ 149,084	$ 147,762
COST OF SALES	17,756	17,873	51,020	55,673
GROSS PROFIT	32,909	30,331	98,064	92,089
OPERATING EXPENSES
Research and development	3,546	3,214	10,056	9,685
Selling and marketing	8,085	6,184	21,738	18,745
General and administrative	7,537	6,535	22,306	20,860
Acquisition-related costs			1,481
Total operating expenses	19,168	15,933	55,581	49,290
OPERATING INCOME	13,741	14,398	42,483	42,799
OTHER INCOME (EXPENSE)
Interest income	22	6	42	18
Interest expense	(427)		(470)
Other, net	65	(99)	(163)	(892)
Total other income (expense)	(340)	(93)	(591)	(874)
EARNINGS BEFORE INCOME TAXES	13,401	14,305	41,892	41,925
INCOME TAX PROVISION	4,647	5,203	15,154	14,852
NET EARNINGS	$ 8,754	$ 9,102	$ 26,738	$ 27,073
BASIC EARNINGS PER COMMON SHARE	$ 0.21	$ 0.22	$ 0.64	$ 0.65
DILUTED EARNINGS PER COMMON SHARE	$ 0.21	$ 0.22	$ 0.63	$ 0.64
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC	42,076	41,714	42,000	41,647
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARES AND UNITS	387	379	379	352
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED	42,463	42,093	42,379	41,999
ANTI-DILUTIVE SECURITIES:
Common share options and restricted shares and units	465	493	449	567
DIVIDENDS DECLARED PER COMMON SHARE	$ 0.20	$ 0.20	$ 0.60	$ 0.60

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net earnings	$ 8,754	$ 9,102	$ 26,738	$ 27,073
Other comprehensive income (loss):
Foreign currency translation adjustment	(1,563)	1,357	(2,479)	(2,146)
Unrealized loss on cash flow hedge	(417)		(1,111)
Income taxes related to items of other comprehensive income	228		522
Other comprehensive income (loss), net of tax	(1,752)	1,357	(3,068)	(2,146)
COMPREHENSIVE INCOME	$ 7,002	$ 10,459	$ 23,670	$ 24,927

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$ 26,738	$ 27,073
Non-cash items included in net earnings:
Depreciation of property, plant and equipment	2,871	2,585
Amortization of intangible assets	1,834	1,309
Amortization of deferred instrument costs	829	1,088
Stock-based compensation	2,654	2,676
Deferred income taxes	(753)	(270)
Losses on long-lived assets	659	39
Change in current assets, net of acquisition	(9,556)	(4,399)
Change in current liabilities, net of acquisition	868	796
Other, net	(140)	299
Net cash provided by operating activities	26,004	31,196
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(2,688)	(3,783)
Purchase of equity method investment	(600)
Proceeds from sale of assets		1,138
Acquisition of Magellan, net of cash acquired	(62,090)
Net cash used for investing activities	(65,378)	(2,645)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid	(25,233)	(25,014)
Proceeds from term loan, net of issuance costs	59,851
Payment on term loan	(750)
Proceeds and tax benefits from exercises of stock options	2,033	654
Net cash provided by (used for) financing activities	35,901	(24,360)
Effect of Exchange Rate Changes on Cash and Equivalents	(697)	(1,263)
Net (Decrease) Increase in Cash and Equivalents	(4,170)	2,928
Cash and Equivalents at Beginning of Period	49,973	43,047
Cash and Equivalents at End of Period	$ 45,803	$ 45,975

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
CURRENT ASSETS
Cash and equivalents	$ 45,803	$ 49,973
Accounts receivable, less allowances of $341 and $248	31,312	26,254
Inventories	43,409	35,817
Prepaid expenses and other current assets	6,396	7,378
Total current assets	126,920	119,422
PROPERTY, PLANT AND EQUIPMENT, at Cost
Land	984	986
Buildings and improvements	32,042	30,056
Machinery, equipment and furniture	45,893	41,541
Construction in progress	1,824	1,139
Subtotal	80,743	73,722
Less: accumulated depreciation and amortization	50,670	46,230
Net property, plant and equipment	30,073	27,492
OTHER ASSETS
Goodwill	63,698	22,349
Other intangible assets, net	31,384	5,931
Restricted cash	1,000	1,000
Deferred instrument costs, net	1,503	1,750
Deferred income taxes		4,954
Other assets	368	384
Total other assets	97,953	36,368
TOTAL ASSETS	254,946	183,282
CURRENT LIABILITIES
Accounts payable	7,386	6,646
Accrued employee compensation costs	5,425	5,132
Other accrued expenses	2,558	2,587
Current portion of long-term debt	3,375
Income taxes payable	1,504	886
Total current liabilities	20,248	15,251
NON-CURRENT LIABILITIES
Acquisition consideration	2,198
Non-current compensation liabilities	2,252	2,158
Interest rate swap liability	1,111
Long-term debt	55,726
Deferred income taxes	4,558
Total non-current liabilities	65,845	2,158
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Preferred stock, no par value; 1,000,000 shares authorized; none issued
Common shares, no par value; 71,000,000 shares authorized, 42,078,657 and 41,838,399 shares issued, respectively	0	0
Additional paid-in capital	121,694	117,151
Retained earnings	52,557	51,052
Accumulated other comprehensive loss	(5,398)	(2,330)
Total shareholders' equity	168,853	165,873
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 254,946	$ 183,282

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Allowances for accounts receivable	$ 341	$ 248
Preferred stock, par value
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value
Common stock, shares authorized	71,000,000	71,000,000
Common stock, shares issued	42,078,657	41,838,399

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - 9 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Shares Issued [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning balance at Sep. 30, 2015	$ 165,873		$ 117,151	$ 51,052	$ (2,330)
Beginning balance, Shares at Sep. 30, 2015		41,838
Cash dividends paid	(25,233)			(25,233)
Exercise of stock options	1,889		1,889
Exercise of stock options, Shares		125
Conversion of restricted stock units	0	$ 0	0	0	0
Conversion of restricted stock units, Shares		116
Stock compensation expense	2,654		2,654
Net earnings	26,738			26,738
Foreign currency translation adjustment	(2,375)				(2,375)
Hedging activity, net of tax	(693)				(693)
Ending balance at Jun. 30, 2016	$ 168,853		$ 121,694	$ 52,557	$ (5,398)
Ending balance, Shares at Jun. 30, 2016		42,079

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The interim condensed consolidated financial statements are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, and the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of Management, the interim financial statements include all normal adjustments and disclosures necessary to present fairly the Company’s financial position as of June 30, 2016, the results of its operations for the three and nine month periods ended June 30, 2016 and 2015, and its cash flows for the nine month periods ended June 30, 2016 and 2015. These statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s fiscal 2015 Annual Report on Form 10-K. Financial information as of September 30, 2015 has been derived from the Company’s audited consolidated financial statements. The results of operations for interim periods are not necessarily indicative of the results to be expected for the year. The Company’s Condensed Consolidated Balance Sheet as of June 30, 2016 includes the condensed balance sheet of Magellan Biosciences, Inc., and its wholly-owned subsidiary Magellan Diagnostics, Inc. (collectively, “Magellan”), as set forth and more fully described in Note 3. The Company’s Condensed Consolidated Statements of Operations for both the three and nine months ended June 30, 2016 include Magellan’s results of operations since the March 24, 2016 date of acquisition.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company’s fiscal 2015 Annual Report on Form 10-K. (a) Recent Accounting Pronouncements – In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Issued but not yet effective accounting pronouncements are not expected to have a material impact on the Condensed Consolidated Financial Statements. (b) Reclassifications – Certain reclassifications have been made to the prior period financial statements to conform to the current fiscal period presentation. Such reclassifications had no impact on net earnings or shareholders’ equity.

Acquisition of Magellan

Acquisition of Magellan	9 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Acquisition of Magellan	3. Acquisition of Magellan On March 24, 2016, we acquired all of the outstanding common stock of Magellan Biosciences, Inc., and its wholly-owned subsidiary Magellan Diagnostics, Inc. (collectively, “Magellan”), for $67,690, utilizing the proceeds from a new $60,000 five-year term loan and cash and equivalents on hand. An amount of the acquisition consideration totaling $2,198 remains payable to the sellers, pending the realization of tax benefits for certain net operating loss carryforwards in future tax returns. Headquartered near Boston, Massachusetts, Magellan is a leading manufacturer of FDA-cleared products for the testing of blood to diagnose lead poisoning in children and adults. Magellan is the leading provider of point-of-care lead testing systems in the U.S. As a result of the consideration paid exceeding the preliminary fair value of the net assets acquired, goodwill in the amount of $42,740 was recorded in connection with this acquisition, none of which will be deductible for tax purposes. This goodwill results largely from the addition of Magellan’s complementary customer base and distribution channels, industry reputation in the U.S. as a leader in lead testing, and management talent and workforce. Our Condensed Consolidated Statements of Operations for the nine months ended June 30, 2016 include $1,173 of acquisition-related costs related to the Magellan acquisition, which are reflected as Operating Expenses. In addition to Magellan’s results of operations, which are included in our Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2016 and reported as part of the Diagnostics operating segment, the consolidated results for the three and nine months ended June 30, 2016 also include: (i) $154 of cost of sales for the three and nine months, respectively, related to the roll-out of fair value inventory adjustments for sales of products that were in Magellan’s inventory on the date of acquisition and, therefore, were valued at fair value, rather than manufactured cost, in the opening balance sheet; and (ii) $759 of general and administrative expenses for the three and nine months, respectively, related to the depreciation of the fair value adjustment to acquired property, plant and equipment, and the amortization of specific identifiable intangible assets recorded on the opening balance sheet including customer relationships, technology, non-compete agreements, and trade names. The results of Magellan included in the consolidated results of the Company for the three and nine months ended June 30, 2016 are as follows, reflecting the items noted above but excluding interest expense on the debt secured by Meridian in connection with the transaction: Three Nine Net Revenues $ 4,752 $ 4,752 Net Earnings $ 231 $ 231 The recognized preliminary amounts of identifiable assets acquired and liabilities assumed in the acquisition of Magellan are as follows: PRELIMINARY March 24, (as initially Measurement March 24, (as adjusted) Fair value of assets acquired - Cash and equivalents $ 3,420 $ (20 ) $ 3,400 Accounts receivable 1,700 — 1,700 Inventories 1,400 — 1,400 Other current assets 330 10 340 Property, plant and equipment 2,790 (200 ) 2,590 Goodwill 42,730 10 42,740 Other intangible assets (estimated useful life): Customer relationships (15 years) 12,630 — 12,630 Technology (10 years) 10,550 — 10,550 Non-compete agreements (2 years) 740 — 740 Trade names (approximate 5 year weighted average) 3,690 — 3,690 79,980 (200 ) 79,780 Fair value of liabilities assumed - Accounts payable and accrued expenses 1,610 (20 ) 1,590 Deferred income tax liabilities 10,570 (70 ) 10,500 Total consideration (including $2,198 accrued to be paid) $ 67,800 $ (110 ) $ 67,690 As indicated, the allocation of the purchase price and estimated useful lives of property, plant and equipment, and intangible assets shown remain preliminary, pending final completion of valuations. We are currently assessing the amount of tax net operating loss carryforwards available to us. Upon completion of this analysis, an amount will be reclassified from goodwill to deferred taxes. The consolidated pro forma results of the combined entities of Meridian and Magellan, had the acquisition date been October 1, 2014, are as follows for the periods indicated: Three Months Ended June 30, Nine Months Ended June 30, 2016 2015 2016 2015 Net Revenues $ 50,665 $ 52,255 $ 156,722 $ 159,225 Net Earnings $ 8,776 $ 8,698 $ 26,194 $ 25,446 Diluted Earnings Per Common Share $ 0.21 $ 0.21 $ 0.62 $ 0.61 These pro forma amounts have been calculated by including the results of Magellan, and adjusting the combined results to give effect to the following, as if the acquisition had been consummated on October 1, 2014, together with the consequential tax effects thereon: (i) remove the effect of transaction costs incurred by the Company; (ii) reflect the additional depreciation and amortization that would have been charged in connection with the preliminary fair value adjustments to inventory ($154), property, plant and equipment ($366) and identifiable intangible assets ($27,610); (iii) reflect equity-based awards granted under the Company’s 2012 Stock Incentive Plan to certain Magellan employees in accordance with executed employee agreements, and to certain Meridian employees to reward them for their efforts in connection with the transaction; and (iv) reflect the interest expense that would have been incurred on the Company’s $60,000 term note.

Cash and Equivalents

Cash and Equivalents	9 Months Ended
	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Cash and Equivalents	4. Cash and Equivalents Cash and equivalents include the following components: June 30, 2016 September 30, 2015 Cash and Other Cash and Other Overnight repurchase agreements $ 7,877 $ — $ 25,436 $ — Institutional money market funds 10,010 — — — Cash on hand - Restricted — 1,000 — 1,000 Unrestricted 27,916 — 24,537 — Total $ 45,803 $ 1,000 $ 49,973 $ 1,000

Inventories

Inventories	9 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventories	5. Inventories Inventories are comprised of the following: June 30, September 30, Raw materials $ 7,810 $ 7,095 Work-in-process 12,432 10,096 Finished goods - instruments 2,384 1,890 Finished goods - kits and reagents 20,783 16,736 Total $ 43,409 $ 35,817

Intangible Assets

Intangible Assets	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	6. Intangible Assets A summary of our acquired intangible assets subject to amortization, as of June 30, 2016 and September 30, 2015, is as follows: June 30, 2016 September 30, 2015 Gross Accumulated Gross Accumulated Manufacturing technologies, core products and cell lines $ 21,962 $ 11,270 $ 11,582 $ 10,906 Tradenames, licenses and patents 9,852 3,835 6,410 3,296 Customer lists and relationships, and supply agreements 24,283 10,255 12,105 9,964 Non-compete agreements 740 93 — — $ 56,837 $ 25,453 $ 30,097 $ 24,166 The actual aggregate amortization expense for these intangible assets was $1,072 and $409 for the three months ended June 30, 2016 and 2015, respectively, and $1,834 and $1,309 for the nine months ended June 30, 2016 and 2015, respectively. The estimated aggregate amortization expense for these intangible assets for each of the fiscal years through fiscal 2021 is as follows: remainder of fiscal 2016 – $987, fiscal 2017 – $4,041, fiscal 2018 – $3,835, fiscal 2019 – $3,609, fiscal 2020 – $3,445, and fiscal 2021 – $2,576.

Bank Credit Arrangements

Bank Credit Arrangements	9 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Bank Credit Arrangements	7. Bank Credit Arrangements In connection with the acquisition of Magellan (see Note 3), on March 22, 2016 the Company entered into a $60,000 five-year term loan with a commercial bank. The term loan requires quarterly principal and interest payments, with interest at a variable rate tied to LIBOR, and a balloon principal payment of $37,500 at the end of five years. Due to the recent execution date of the term loan and interest being determined on a variable rate basis, the fair value of the term loan at June 30, 2016 approximates the current carrying value reflected in the accompanying Condensed Consolidated Balance Sheet. In addition, the Company continues to maintain a $30,000 credit facility with the same commercial bank, which expires March 31, 2021. As there were no borrowings outstanding on this credit facility at June 30, 2016 or September 30, 2015, available borrowings as of both dates totaled $30,000. The term loan and the credit facility are collateralized by the business assets of the Company’s U.S. subsidiaries, and require compliance with financial covenants that limit the amount of debt obligations and require a minimum level of coverage of fixed charges, as defined in the borrowing agreement. As of June 30, 2016, the Company is in compliance with all covenants. In order to limit exposure to volatility in the LIBOR interest rate, the Company and the commercial bank also entered into an interest rate swap that effectively converts the variable interest rate on the term loan to a fixed rate. With an initial notional balance of $60,000, the interest rate swap has been established with critical terms identical to those of the term loan, including (i) notional reduction amounts and dates; (ii) LIBOR settlement rates; (iii) rate reset dates; and (iv) term/maturity. Due to this, the interest swap has been designated as an effective cash flow hedge, with changes in fair value reflected as a separate component of other comprehensive income in the accompanying Condensed Consolidated Statements of Comprehensive Income. At June 30, 2016, the fair value of the interest rate swap was a liability of $1,111, and is reflected as a non-current liability in the accompanying Condensed Consolidated Balance Sheet. This fair value was determined by reference to a third party valuation, and is considered a Level 2 input within the fair value hierarchy of valuation techniques.

Reportable Segment and Major Cu

Reportable Segment and Major Customers Information	9 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Reportable Segment and Major Customers Information	8. Reportable Segment and Major Customers Information Meridian was formed in 1976 and functions as a fully-integrated research, development, manufacturing, marketing, and sales organization with primary emphasis in the fields of infectious disease (in vitro) and blood lead diagnostics and life science. Our principal businesses are (i) the development, manufacture and distribution of diagnostic test kits primarily for gastrointestinal, viral, respiratory, parasitic infectious diseases, and elevated blood lead levels; and (ii) the manufacture and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells, and bioresearch reagents used by researchers and other diagnostic manufacturers. Our reportable segments are Diagnostics and Life Science, both of which are headquartered in Cincinnati, Ohio, which also serves as the Diagnostics segment’s base of manufacturing operations and research and development for infectious disease products. The Diagnostics segment includes the Company’s recent acquisition of Magellan, which is located in Billerica, Massachusetts (near Boston). Its facility includes research, development, manufacturing, marketing, sales, and distribution operations. The Diagnostics segment has sales and distribution facilities for infectious disease diagnostics in the United States, Europe and Australia. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; Luckenwalde, Germany; and Sydney, Australia, and the sale and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells, and bioresearch reagents domestically and abroad, including sales and business development offices in Singapore and Beijing, China to further pursue growing revenue opportunities in Asia. Amounts due from two Diagnostics distributor customers accounted for 23% and 21% of consolidated accounts receivable at June 30, 2016 and September 30, 2015, respectively. Revenues from these two distributor customers accounted for 25% and 35% of the Diagnostics segment third-party revenues during the three months ended June 30, 2016 and 2015, respectively, and 30% and 36% during the nine months ended June 30, 2016 and 2015, respectively. These distributors represented 19% and 26% of consolidated revenues for the fiscal 2016 and 2015 third quarters, respectively, and 22% and 27% for the respective year-to-date nine month periods. Within our Life Science segment, two diagnostic manufacturing customers accounted for 23% and 16% of the segment’s third-party revenues during the three months ended June 30, 2016 and 2015, respectively, and 20% and 16% during the nine months ended June 30, 2016 and 2015, respectively. Segment information for the interim periods is as follows: Diagnostics Life Science Eliminations (1) Total Three Months Ended June 30, 2016 Net revenues - Third-party $ 37,523 $ 13,142 $ — $ 50,665 Inter-segment 70 201 (271 ) — Operating income 9,886 3,696 159 13,741 Goodwill (June 30, 2016) 43,992 19,706 — 63,698 Other intangible assets, net (June 30, 2016) 28,848 2,536 — 31,384 Total assets (June 30, 2016) 187,557 67,641 (252 ) 254,946 Three Months Ended June 30, 2015 Net revenues - Third-party $ 36,049 $ 12,155 $ — $ 48,204 Inter-segment 46 345 (391 ) — Operating income 11,383 3,060 (45 ) 14,398 Goodwill (September 30, 2015) 1,250 21,099 — 22,349 Other intangible assets, net (September 30, 2015) 2,364 3,567 — 5,931 Total assets (September 30, 2015) 119,939 63,670 (327 ) 183,282 Nine Months Ended June 30, 2016 Net revenues - Third-party $ 110,178 $ 38,906 $ — $ 149,084 Inter-segment 225 955 (1,180 ) — Operating income 31,412 11,086 (15 ) 42,483 Nine Months Ended June 30, 2015 Net revenues - Third-party $ 111,297 $ 36,465 $ — $ 147,762 Inter-segment 235 867 (1,102 ) — Operating income 33,750 9,145 (96 ) 42,799 (1) Eliminations consist of inter-segment transactions. Transactions between segments are accounted for at established intercompany prices for internal and management purposes, with all intercompany amounts eliminated in consolidation.

Significant Accounting Polici16

Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Recent Accounting Pronouncements	(a) Recent Accounting Pronouncements – In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Issued but not yet effective accounting pronouncements are not expected to have a material impact on the Condensed Consolidated Financial Statements.
Reclassifications	(b) Reclassifications – Certain reclassifications have been made to the prior period financial statements to conform to the current fiscal period presentation. Such reclassifications had no impact on net earnings or shareholders’ equity.

Acquisition of Magellan (Tables

Acquisition of Magellan (Tables)	9 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Schedule of Business Combination Financial Results Included in Consolidated Statements of Operations	The results of Magellan included in the consolidated results of the Company for the three and nine months ended June 30, 2016 are as follows, reflecting the items noted above but excluding interest expense on the debt secured by Meridian in connection with the transaction: Three Nine Net Revenues $ 4,752 $ 4,752 Net Earnings $ 231 $ 231
Schedule of Preliminary Amounts of Identifiable Assets Acquired and Liabilities Assumed in Acquisition	The recognized preliminary amounts of identifiable assets acquired and liabilities assumed in the acquisition of Magellan are as follows: PRELIMINARY March 24, (as initially Measurement March 24, (as adjusted) Fair value of assets acquired - Cash and equivalents $ 3,420 $ (20 ) $ 3,400 Accounts receivable 1,700 — 1,700 Inventories 1,400 — 1,400 Other current assets 330 10 340 Property, plant and equipment 2,790 (200 ) 2,590 Goodwill 42,730 10 42,740 Other intangible assets (estimated useful life): Customer relationships (15 years) 12,630 — 12,630 Technology (10 years) 10,550 — 10,550 Non-compete agreements (2 years) 740 — 740 Trade names (approximate 5 year weighted average) 3,690 — 3,690 79,980 (200 ) 79,780 Fair value of liabilities assumed - Accounts payable and accrued expenses 1,610 (20 ) 1,590 Deferred income tax liabilities 10,570 (70 ) 10,500 Total consideration (including $2,198 accrued to be paid) $ 67,800 $ (110 ) $ 67,690
Business Acquisition, Pro Forma Information	The consolidated pro forma results of the combined entities of Meridian and Magellan, had the acquisition date been October 1, 2014, are as follows for the periods indicated: Three Months Ended June 30, Nine Months Ended June 30, 2016 2015 2016 2015 Net Revenues $ 50,665 $ 52,255 $ 156,722 $ 159,225 Net Earnings $ 8,776 $ 8,698 $ 26,194 $ 25,446 Diluted Earnings Per Common Share $ 0.21 $ 0.21 $ 0.62 $ 0.61

Cash and Equivalents (Tables)

Cash and Equivalents (Tables)	9 Months Ended
	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Components of Cash and Cash Equivalents	Cash and equivalents include the following components: June 30, 2016 September 30, 2015 Cash and Other Cash and Other Overnight repurchase agreements $ 7,877 $ — $ 25,436 $ — Institutional money market funds 10,010 — — — Cash on hand - Restricted — 1,000 — 1,000 Unrestricted 27,916 — 24,537 — Total $ 45,803 $ 1,000 $ 49,973 $ 1,000

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Components of Inventories	Inventories are comprised of the following: June 30, September 30, Raw materials $ 7,810 $ 7,095 Work-in-process 12,432 10,096 Finished goods - instruments 2,384 1,890 Finished goods - kits and reagents 20,783 16,736 Total $ 43,409 $ 35,817

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Acquired Intangible Assets Subject to Amortization	A summary of our acquired intangible assets subject to amortization, as of June 30, 2016 and September 30, 2015, is as follows: June 30, 2016 September 30, 2015 Gross Accumulated Gross Accumulated Manufacturing technologies, core products and cell lines $ 21,962 $ 11,270 $ 11,582 $ 10,906 Tradenames, licenses and patents 9,852 3,835 6,410 3,296 Customer lists and relationships, and supply agreements 24,283 10,255 12,105 9,964 Non-compete agreements 740 93 — — $ 56,837 $ 25,453 $ 30,097 $ 24,166

Reportable Segment and Major 21

Reportable Segment and Major Customers Information (Tables)	9 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Information	Segment information for the interim periods is as follows: Diagnostics Life Science Eliminations (1) Total Three Months Ended June 30, 2016 Net revenues - Third-party $ 37,523 $ 13,142 $ — $ 50,665 Inter-segment 70 201 (271 ) — Operating income 9,886 3,696 159 13,741 Goodwill (June 30, 2016) 43,992 19,706 — 63,698 Other intangible assets, net (June 30, 2016) 28,848 2,536 — 31,384 Total assets (June 30, 2016) 187,557 67,641 (252 ) 254,946 Three Months Ended June 30, 2015 Net revenues - Third-party $ 36,049 $ 12,155 $ — $ 48,204 Inter-segment 46 345 (391 ) — Operating income 11,383 3,060 (45 ) 14,398 Goodwill (September 30, 2015) 1,250 21,099 — 22,349 Other intangible assets, net (September 30, 2015) 2,364 3,567 — 5,931 Total assets (September 30, 2015) 119,939 63,670 (327 ) 183,282 Nine Months Ended June 30, 2016 Net revenues - Third-party $ 110,178 $ 38,906 $ — $ 149,084 Inter-segment 225 955 (1,180 ) — Operating income 31,412 11,086 (15 ) 42,483 Nine Months Ended June 30, 2015 Net revenues - Third-party $ 111,297 $ 36,465 $ — $ 147,762 Inter-segment 235 867 (1,102 ) — Operating income 33,750 9,145 (96 ) 42,799 (1) Eliminations consist of inter-segment transactions.

Significant Accounting Polici22

Significant Accounting Policies - Additional Information (Detail) $ in Thousands	Sep. 30, 2015USD ($)
Schedule Of Accounting Policies [Line Items]
Deferred income taxes	$ 4,954
ASU 2015-17 [Member]
Schedule Of Accounting Policies [Line Items]
Deferred income taxes	$ 3,431

Acquisition of Magellan - Addit

Acquisition of Magellan - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 24, 2016	Oct. 01, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Mar. 22, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Proceeds from term loan					$ 59,851
Acquisition consideration payable			$ 2,198		2,198
Goodwill			63,698		63,698			$ 22,349
COST OF SALES			17,756	$ 17,873	51,020	$ 55,673
General and administrative			7,537	$ 6,535	22,306	$ 20,860
Inventory [Member]
Business Acquisition [Line Items]
Fair value adjustments		$ 154
Property, Plant and Equipment [Member]
Business Acquisition [Line Items]
Fair value adjustments		366
Intangible Assets [Member]
Business Acquisition [Line Items]
Fair value adjustments		27,610
Magellan [Member]
Business Acquisition [Line Items]
Total consideration paid	$ 67,690
Acquisition consideration payable	2,198
Goodwill	42,740
Acquisition-related costs					1,173
COST OF SALES			154		154
General and administrative			$ 759		$ 759
Term loan		$ 60,000
Magellan [Member] | Five - Year Term Loan [Member]
Business Acquisition [Line Items]
Proceeds from term loan	$ 60,000
Term loan							$ 60,000

Acquisition of Magellan - Sched

Acquisition of Magellan - Schedule of Business Combination Financial Results Included in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition [Line Items]
NET REVENUES	$ 50,665	$ 48,204	$ 149,084	$ 147,762
Net earnings	8,754	$ 9,102	26,738	$ 27,073
Magellan [Member]
Business Acquisition [Line Items]
NET REVENUES	4,752		4,752
Net earnings	$ 231		$ 231

Acquisition of Magellan - Sch25

Acquisition of Magellan - Schedule of Preliminary Amounts of Identifiable Assets Acquired and Liabilities Assumed in Acquisition (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 24, 2016	Sep. 30, 2015
Fair value of assets acquired -
Goodwill	$ 63,698		$ 22,349
Magellan [Member]
Fair value of assets acquired -
Cash and equivalents		$ 3,400
Accounts receivable		1,700
Inventories		1,400
Other current assets		340
Property, plant and equipment		2,590
Goodwill		42,740
Other intangible assets:
Fair value of assets acquired net		79,780
Fair value of liabilities assumed -
Accounts payable and accrued expenses		1,590
Deferred income tax liabilities		10,500
Total consideration		67,690
Magellan [Member] | As Initially Reported [Member]
Fair value of assets acquired -
Cash and equivalents		3,420
Accounts receivable		1,700
Inventories		1,400
Other current assets		330
Property, plant and equipment		2,790
Goodwill		42,730
Other intangible assets:
Fair value of assets acquired net		79,980
Fair value of liabilities assumed -
Accounts payable and accrued expenses		1,610
Deferred income tax liabilities		10,570
Total consideration		67,800
Magellan [Member] | Measurement Period Adjustments [Member]
Fair value of assets acquired -
Cash and equivalents		(20)
Other current assets		10
Property, plant and equipment		(200)
Goodwill		10
Other intangible assets:
Fair value of assets acquired net		(200)
Fair value of liabilities assumed -
Accounts payable and accrued expenses		(20)
Deferred income tax liabilities		(70)
Total consideration		(110)
Magellan [Member] | Customer Relationships [Member]
Other intangible assets:
Other intangible assets		12,630
Magellan [Member] | Customer Relationships [Member] | As Initially Reported [Member]
Other intangible assets:
Other intangible assets		12,630
Magellan [Member] | Technology [Member]
Other intangible assets:
Other intangible assets		10,550
Magellan [Member] | Technology [Member] | As Initially Reported [Member]
Other intangible assets:
Other intangible assets		10,550
Magellan [Member] | Non-Compete Agreements [Member]
Other intangible assets:
Other intangible assets		740
Magellan [Member] | Non-Compete Agreements [Member] | As Initially Reported [Member]
Other intangible assets:
Other intangible assets		740
Magellan [Member] | Trade Names [Member]
Other intangible assets:
Other intangible assets		3,690
Magellan [Member] | Trade Names [Member] | As Initially Reported [Member]
Other intangible assets:
Other intangible assets		$ 3,690

Acquisition of Magellan - Sch26

Acquisition of Magellan - Schedule of Preliminary Amounts of Identifiable Assets Acquired and Liabilities Assumed in Acquisition (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 24, 2016	Jun. 30, 2016
Business Acquisition [Line Items]
Acquisition consideration payable		$ 2,198
Magellan [Member]
Business Acquisition [Line Items]
Acquisition consideration payable	$ 2,198
As Initially Reported [Member] | Magellan [Member]
Business Acquisition [Line Items]
Acquisition consideration payable	2,198
Measurement Period Adjustments [Member] | Magellan [Member]
Business Acquisition [Line Items]
Acquisition consideration payable	$ 2,198
Customer Relationships [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated useful life	15 years
Customer Relationships [Member] | As Initially Reported [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated useful life	15 years
Customer Relationships [Member] | Measurement Period Adjustments [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated useful life	15 years
Technology [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated useful life	10 years
Technology [Member] | As Initially Reported [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated useful life	10 years
Technology [Member] | Measurement Period Adjustments [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated useful life	10 years
Non-Compete Agreements [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated useful life	2 years
Non-Compete Agreements [Member] | As Initially Reported [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated useful life	2 years
Non-Compete Agreements [Member] | Measurement Period Adjustments [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated useful life	2 years
Trade Names [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated weighted average useful life	5 years
Trade Names [Member] | As Initially Reported [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated weighted average useful life	5 years
Trade Names [Member] | Measurement Period Adjustments [Member] | Magellan [Member]
Business Acquisition [Line Items]
Estimated weighted average useful life	5 years

Acquisition of Magellan - Busin

Acquisition of Magellan - Business Acquisition, Pro Forma Information (Detail) - Magellan [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition [Line Items]
Net Revenues	$ 50,665	$ 52,255	$ 156,722	$ 159,225
Net Earnings	$ 8,776	$ 8,698	$ 26,194	$ 25,446
Diluted Earnings Per Common Share	$ 0.21	$ 0.21	$ 0.62	$ 0.61

Cash and Equivalents - Componen

Cash and Equivalents - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Oct. 01, 2014
Cash and Cash Equivalents [Line Items]
Cash on hand - Restricted	$ 1,000	$ 1,000
Total	45,803	49,973	$ 45,975	$ 43,047
Cash and Equivalents [Member]
Cash and Cash Equivalents [Line Items]
Cash on hand - Unrestricted	27,916	24,537
Total	45,803	49,973
Cash and Equivalents [Member] | Overnight Repurchase Agreements [Member]
Cash and Cash Equivalents [Line Items]
Money market funds	7,877	25,436
Cash and Equivalents [Member] | Institutional Money Market Funds [Member]
Cash and Cash Equivalents [Line Items]
Money market funds	10,010
Other Assets [Member]
Cash and Cash Equivalents [Line Items]
Cash on hand - Restricted	1,000	1,000
Total	$ 1,000	$ 1,000

Inventories - Components of Inv

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Inventory [Line Items]
Raw materials	$ 7,810	$ 7,095
Work-in-process	12,432	10,096
Total	43,409	35,817
Instruments [Member]
Inventory [Line Items]
Finished goods	2,384	1,890
Kits and Reagents [Member]
Inventory [Line Items]
Finished goods	$ 20,783	$ 16,736

Intangible Assets - Summary of

Intangible Assets - Summary of Acquired Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 56,837	$ 30,097
Accumulated Amortization	25,453	24,166
Manufacturing Technologies, Core Products and Cell Lines [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	21,962	11,582
Accumulated Amortization	11,270	10,906
Tradenames, Licenses and Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	9,852	6,410
Accumulated Amortization	3,835	3,296
Customer Lists and Relationships, and Supply Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	24,283	12,105
Accumulated Amortization	10,255	$ 9,964
Non-Compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	740
Accumulated Amortization	$ 93

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1,072	$ 409	$ 1,834	$ 1,309
Estimated amortization expense for intangible assets remainder of fiscal year 2016	987		987
2,017	4,041		4,041
2,018	3,835		3,835
2,019	3,609		3,609
2,020	3,445		3,445
2,021	$ 2,576		$ 2,576

Bank Credit Arrangements - Addi

Bank Credit Arrangements - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Mar. 22, 2016	Sep. 30, 2015	Oct. 01, 2014
Debt Instrument [Line Items]
Credit facility with a commercial bank	$ 30,000
Expiration date of credit facility	Mar. 31, 2021
Borrowings outstanding under credit facility	$ 0		$ 0
Available borrowings under credit facility	30,000		$ 30,000
Notional balance	$ 60,000
Interest rate swap description	(i) notional reduction amounts and dates; (ii) LIBOR settlement rates; (iii) rate reset dates; and (iv) term/maturity.
Interest rate swap liability	$ 1,111
Magellan [Member]
Debt Instrument [Line Items]
Term loan				$ 60,000
Five - Year Term Loan [Member] | Magellan [Member]
Debt Instrument [Line Items]
Term loan		$ 60,000
Balloon principal payment	$ 37,500
Balloon principal payment repayment period	5 years

Reportable Segment and Major 33

Reportable Segment and Major Customers Information - Additional Information (Detail) - Customer Concentration Risk [Member] - Customer	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Two Diagnostic Distributor Customers [Member] | Consolidated Accounts Receivable [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of major customers			2		2
Concentration risk percentage			23.00%		21.00%
Two Diagnostic Distributor Customers [Member] | Segment, Third-Party Sales Revenue [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of major customers	2	2	2	2
Two Diagnostic Distributor Customers [Member] | Segment, Third-Party Sales Revenue [Member] | Diagnostics [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	25.00%	35.00%	30.00%	36.00%
Two Diagnostic Distributor Customers [Member] | Revenues [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	19.00%	26.00%	22.00%	27.00%
Two Diagnostic Manufacturing Customers [Member] | Segment, Third-Party Sales Revenue [Member] | Life Science [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of major customers	2	2	2	2
Concentration risk percentage	23.00%	16.00%	20.00%	16.00%

Reportable Segment and Major 34

Reportable Segment and Major Customers Information - Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Segment Reporting Information [Line Items]
NET REVENUES	$ 50,665	$ 48,204	$ 149,084	$ 147,762
Operating income	13,741	14,398	42,483	42,799
Goodwill	63,698		63,698		$ 22,349
Other intangible assets, net	31,384		31,384		5,931
Total assets	254,946		254,946		183,282
Inter-segment [Member] | Diagnostics [Member]
Segment Reporting Information [Line Items]
NET REVENUES	70	46	225	235
Inter-segment [Member] | Life Science [Member]
Segment Reporting Information [Line Items]
NET REVENUES	201	345	955	867
Eliminations [Member]
Segment Reporting Information [Line Items]
NET REVENUES	(271)	(391)	(1,180)	(1,102)
Operating income	159	(45)	(15)	(96)
Total assets	(252)		(252)		(327)
Operating Segments [Member] | Diagnostics [Member]
Segment Reporting Information [Line Items]
NET REVENUES	37,523	36,049	110,178	111,297
Operating income	9,886	11,383	31,412	33,750
Goodwill	43,992		43,992		1,250
Other intangible assets, net	28,848		28,848		2,364
Total assets	187,557		187,557		119,939
Operating Segments [Member] | Life Science [Member]
Segment Reporting Information [Line Items]
NET REVENUES	13,142	12,155	38,906	36,465
Operating income	3,696	$ 3,060	11,086	$ 9,145
Goodwill	19,706		19,706		21,099
Other intangible assets, net	2,536		2,536		3,567
Total assets	$ 67,641		$ 67,641		$ 63,670