Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Jan. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
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 Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 42,489,202 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
NET REVENUES | $ 51,480 | $ 52,283 |
COST OF SALES | 19,908 | 20,273 |
GROSS PROFIT | 31,572 | 32,010 |
OPERATING EXPENSES | ||
Research and development | 3,967 | 4,420 |
Selling and marketing | 7,563 | 8,844 |
General and administrative | 8,902 | 9,202 |
Restructuring costs | 734 | |
Litigation costs | 589 | 749 |
Total operating expenses | 21,021 | 23,949 |
OPERATING INCOME | 10,551 | 8,061 |
OTHER INCOME (EXPENSE) | ||
Interest income | 149 | 72 |
Interest expense | (363) | (395) |
Other, net | 139 | (80) |
Total other expense | (75) | (403) |
EARNINGS BEFORE INCOME TAXES | 10,476 | 7,658 |
INCOME TAX PROVISION | 2,370 | 1,356 |
NET EARNINGS | $ 8,106 | $ 6,302 |
BASIC EARNINGS PER COMMON SHARE | $ 0.19 | $ 0.15 |
DILUTED EARNINGS PER COMMON SHARE | $ 0.19 | $ 0.15 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC | 42,446 | 42,263 |
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS | 459 | 399 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-DILUTED | 42,905 | 42,662 |
ANTI-DILUTIVE SECURITIES: | ||
Common share options and restricted share units | 684 | 1,034 |
DIVIDENDS DECLARED PER COMMON SHARE | $ 0.125 | $ 0.125 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
NET EARNINGS | $ 8,106 | $ 6,302 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (716) | 291 |
Unrealized gain (loss) on cash flow hedge | (577) | 341 |
Income taxes related to items of other comprehensive income | 145 | (112) |
Other comprehensive income (loss), net of tax | (1,148) | 520 |
COMPREHENSIVE INCOME | $ 6,958 | $ 6,822 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
NET EARNINGS | $ 8,106 | $ 6,302 |
Non-cash items included in net earnings: | ||
Depreciation of property, plant and equipment | 1,253 | 1,146 |
Amortization of intangible assets | 829 | 938 |
Amortization of deferred instrument costs | 201 | |
Stock-based compensation | 1,670 | 1,759 |
Deferred income taxes | 96 | (1,624) |
Change in: | ||
Accounts receivable | 317 | (2,989) |
Inventories | (37) | (2,353) |
Prepaid expenses and other current assets | 539 | 87 |
Accounts payable and accrued expenses | (4,081) | 1,315 |
Income taxes payable | 991 | 497 |
Other, net | (276) | (108) |
Net cash provided by operating activities | 9,407 | 5,171 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (1,109) | (1,234) |
Net cash used for investing activities | (1,109) | (1,234) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends paid | (5,301) | (5,288) |
Payments on term loan | (1,125) | (1,125) |
Proceeds and tax benefits from exercises of stock options | 145 | |
Net cash used for financing activities | (6,281) | (6,413) |
Effect of Exchange Rate Changes on Cash and Equivalents and Restricted Cash | (257) | 115 |
Net Increase (Decrease) in Cash and Equivalents and Restricted Cash | 1,760 | (2,361) |
Cash and Equivalents and Restricted Cash at Beginning of Period | 60,763 | 58,072 |
Cash and Equivalents and Restricted Cash at End of Period | 62,523 | 55,711 |
Cash and Equivalents | 61,523 | 54,711 |
Restricted Cash | $ 1,000 | $ 1,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
CURRENT ASSETS | ||
Cash and equivalents | $ 61,523 | $ 59,763 |
Accounts receivable, less allowances of $331 and $310 | 31,791 | 32,336 |
Inventories | 41,889 | 41,993 |
Prepaid expenses and other current assets | 4,411 | 4,961 |
Total current assets | 139,614 | 139,053 |
PROPERTY, PLANT AND EQUIPMENT, at Cost | ||
Land | 1,158 | 1,160 |
Buildings and improvements | 32,443 | 32,444 |
Machinery, equipment and furniture | 59,637 | 50,606 |
Construction in progress | 1,727 | 1,631 |
Subtotal | 94,965 | 85,841 |
Less: accumulated depreciation and amortization | 64,108 | 55,846 |
Net property, plant and equipment | 30,857 | 29,995 |
OTHER ASSETS | ||
Goodwill | 54,403 | 54,637 |
Other intangible assets, net | 22,265 | 23,113 |
Restricted cash | 1,000 | 1,000 |
Deferred instrument costs, net | 1,239 | |
Fair value of interest rate swap | 1,145 | 1,722 |
Deferred income taxes | 121 | 130 |
Other assets | 452 | 488 |
Total other assets | 79,386 | 82,329 |
TOTAL ASSETS | 249,857 | 251,377 |
CURRENT LIABILITIES | ||
Accounts payable | 6,228 | 6,260 |
Accrued employee compensation costs | 4,779 | 7,263 |
Other accrued expenses | 3,035 | 5,065 |
Current portion of long-term debt | 5,625 | 5,250 |
Income taxes payable | 1,023 | 335 |
Total current liabilities | 20,690 | 24,173 |
NON-CURRENT LIABILITIES | ||
Post-employment benefits | 2,490 | 2,646 |
Long-term debt | 43,438 | 44,930 |
Long-term income taxes payable | 736 | 441 |
Deferred income taxes | 3,861 | 3,769 |
Total non-current liabilities | 50,525 | 51,786 |
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, 42,488,602 and 42,399,962 shares issued, respectively | 0 | 0 |
Additional paid-in capital | 130,876 | 129,193 |
Retained earnings | 52,291 | 49,602 |
Accumulated other comprehensive loss | (4,525) | (3,377) |
Total shareholders' equity | 178,642 | 175,418 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 249,857 | $ 251,377 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 331 | $ 310 |
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 | 42,488,602 | 42,399,962 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Shares Issued [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comp Income (Loss) [Member] |
Beginning balance at Sep. 30, 2017 | $ 169,585 | $ 125,608 | $ 46,923 | $ (2,946) | |
Beginning balance, Shares at Sep. 30, 2017 | 42,207 | ||||
Cash dividends paid | (5,288) | (5,288) | |||
Conversion of restricted share units | 0 | $ 0 | 0 | 0 | 0 |
Conversion of restricted share units, Shares | 100 | ||||
Stock compensation expense | 1,759 | 1,759 | |||
NET EARNINGS | 6,302 | 6,302 | |||
Foreign currency translation adjustment | 291 | 291 | |||
Hedging activity, net of tax | 229 | 229 | |||
Ending balance at Dec. 31, 2017 | 172,878 | 127,367 | 47,937 | (2,426) | |
Ending balance, Shares at Dec. 31, 2017 | 42,307 | ||||
Beginning balance at Sep. 30, 2018 | 175,418 | 129,193 | 49,602 | (3,377) | |
Beginning balance, Shares at Sep. 30, 2018 | 42,400 | ||||
Cash dividends paid | (5,301) | (5,301) | |||
Conversion of restricted share units and exercise of stock options | 13 | 13 | |||
Conversion of restricted share units and exercise of stock options, Shares | 89 | ||||
Stock compensation expense | 1,670 | 1,670 | |||
NET EARNINGS | 8,106 | 8,106 | |||
Foreign currency translation adjustment | (716) | (716) | |||
Hedging activity, net of tax | (432) | (432) | |||
Adoption of ASU 2014-09 | Accounting Standards Update 2014-09 [Member] | (116) | (116) | |||
Ending balance at Dec. 31, 2018 | $ 178,642 | $ 130,876 | $ 52,291 | $ (4,525) | |
Ending balance, Shares at Dec. 31, 2018 | 42,489 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per common share | $ 0.125 | $ 0.125 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018, the results of its operations for the three month periods ended December 31, 2018 and 2017, and its cash flows for the three month periods ended December 31, 2018 and 2017. These statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s fiscal 2018 Annual Report on Form 10-K. Financial |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2018 | |
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 2018 Annual Report on Form 10-K Revenue Recognition – Adoption of New Standard On October 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers Upon adoption, we recorded a reduction of $116 to the opening balance of retained earnings as of October 1, 2018. This adjustment is related to writing off the book value of clinical diagnostic testing instruments located at customers for which there is no contractual arrangement for the instrument to be returned to the Company. Instruments placed with customers under an agreement to return the instrument to the Company were reclassified to machinery and equipment. Prior to adoption of the new guidance, all instruments placed with customers were capitalized and amortized over an estimated three-year utilization period, with the net balance reflected as deferred instrument costs. The following table summarizes the impact of the new revenue standard on our opening balance sheet: Balance at New Revenue Balance at PROPERTY, PLAN AND EQUIPMENT Machinery, equipment and furniture $ 50,606 $ 8,696 $ 59,302 Accumulated depreciation and amortization (55,846 ) (7,611 ) (63,457 ) OTHER ASSETS Deferred instrument costs, net 1,239 (1,239 ) — NON-CURRENT Deferred income taxes (3,769 ) 38 (3,731 ) SHAREHOLDERS’ EQUITY Retained earnings (49,602 ) 116 (49,486 ) The adoption of this new standard had an immaterial impact on our reported total revenues and operating income, as compared to what would have been reported under the prior standard. We expect the impact of adoption in future periods to continue to be immaterial. Our accounting policies under the new standard were applied prospectively and are noted below following the discussion of Revenue Disaggregation. Revenue Disaggregation The following tables present our revenues disaggregated by major geographic region, major product platform and disease state (Diagnostics only): Revenue by Reportable Segment & Geographic Region Three Months Ended December 31, 2018 2017 Inc (Dec) Diagnostics- Americas $ 31,147 $ 31,575 (1 )% EMEA 5,085 5,415 (6 )% ROW 433 500 (13 )% Total Diagnostics 36,665 37,490 (2 )% Life Science- Americas 4,534 5,250 (14 )% EMEA 7,455 5,185 44 % ROW 2,826 4,358 (35 )% Total Life Science 14,815 14,793 — % Consolidated $ 51,480 $ 52,283 (2 )% Revenue by Product Platform/Type Three Months Ended December 31, 2018 2017 Inc (Dec) Diagnostics- Molecular assays $ 7,298 $ 8,717 (16 )% Immunoassays & blood chemistry assays 29,367 28,773 2 % Total Diagnostics $ 36,665 $ 37,490 (2 )% Life Science- Molecular reagents $ 6,589 $ 5,688 16 % Immunological reagents 8,226 9,105 (10 )% Total Life Science $ 14,815 $ 14,793 — % Revenue by Disease State (Diagnostics only) Three Months Ended December 31, 2018 2017 Inc (Dec) Diagnostics- Gastrointestinal assays $ 18,633 $ 20,270 (8 )% Respiratory illness assays 7,977 7,486 7 % Blood chemistry assays 4,466 4,266 5 % Other 5,589 5,468 2 % Total Diagnostics $ 36,665 $ 37,490 (2 )% Revenue Policies Product Sales Revenue from contracts with customers is recognized in an amount that reflects the consideration we expect to receive in exchange for products when obligations under such contracts are satisfied. Revenue is generally recognized at a point-in-time Revenue is reduced in the period of sale for fees paid to distributors, which are inseparable from the distributor’s purchase of our product and for which we receive no goods or services in return. Revenue for the Diagnostics segment is reduced at the date of sale for product price adjustments due to certain distributors under local contracts. Management estimates accruals for distributor price adjustments based on local contract terms, sales data provided by distributors, historical statistics, current trends, and other factors. Changes to the accruals are recorded in the period that they become known. Such accruals are netted against accounts receivable. Shipping and handling costs incurred after control of the product is transferred to our customers are treated as fulfillment costs and not a separate performance obligation. Our payment terms differ by jurisdiction and customer but payment is generally required in a term ranging from 30 to 90 days from the date of shipment or satisfaction of the performance obligation. Trade accounts receivable are recorded in the accompanying Consolidated Balance Sheets at invoiced amounts less provisions for distributor price adjustments under local contracts and doubtful accounts. The allowance for doubtful accounts represents our estimate of probable credit losses and is based on historical write-off non-payment. Practical Expedients and Exemptions Revenue is recognized net of any taxes collected from customers (sales tax, value added tax, etc.), which are subsequently remitted to government authorities. Our products are generally not subject to a customer right of return except for product recall events under the rules and regulations of the Food and Drug Administration or equivalent agencies outside the United States. In this circumstance, the costs to replace affected products would be accrued at the time a loss was probable and estimable. We expense as incurred the costs to obtain contracts, as the amortization period would have been one year or less. These costs, recorded within selling and marketing expense, include our internal sales force compensation programs and certain partner sales incentive programs, as we have determined that annual compensation is commensurate with annual selling activities. Reagent Rental Arrangements Our Alethia and LeadCare product platforms require the use of instruments for the tests to be processed. In many cases a customer is given use of the instrument, provided they continue purchasing the associated tests, also referred to as “consumables” or “reagents”. If a customer stops purchasing the consumables, the instrument must be returned to Meridian. Such arrangements are common practice in the diagnostics industry and are referred to as “Reagent Rental” agreements. These agreements may also include instrument related services such as a limited replacement warranty, training and installation. We concluded that the use of the instrument and related services (collectively known as “lease elements”) are not within the scope of ASU No. 2014-09 2016-02, Leases non-lease non-lease For the portion of the transaction price allocated to the non-lease Revenue allocated to the lease elements of these Reagent Rental arrangements represent less than 1% of total revenue and are included as part of net revenues in our Condensed Consolidated Statements of Income. Recent Accounting Pronouncements – In February 2016, the FASB issued ASU 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Reclassifications – Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. Such reclassifications had no impact on net earnings or shareholders’ equity. |
Cash and Equivalents
Cash and Equivalents | 3 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Equivalents | 3. Cash and Equivalents Cash and equivalents include the following components: December 31, 2018 September 30, 2018 Cash and Other Cash and Other Institutional money market funds $ 20,540 $ — $ 20,421 $ — Cash on hand - Restricted — 1,000 — 1,000 Unrestricted 40,983 — 39,342 — Total $ 61,523 $ 1,000 $ 59,763 $ 1,000 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories are comprised of the following: December 31, September 30, Raw materials $ 7,123 $ 6,689 Work-in-process 12,037 12,098 Finished goods - instruments 1,224 1,191 Finished goods - kits and reagents 21,505 22,015 Total $ 41,889 $ 41,993 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets A summary of our acquired intangible assets subject to amortization, as of December 31, 2018 and September 30, 2018, is as follows: December 31, 2018 September 30, 2018 Gross Accumulated Gross Accumulated Manufacturing technologies, core products and cell lines $ 22,268 $ 14,243 $ 22,297 $ 13,974 Trade names, licenses and patents 8,613 5,463 8,647 5,267 Customer lists, customer relationships and supply agreements 24,385 13,295 24,461 13,051 Non-compete 720 720 720 720 Total $ 55,986 $ 33,721 $ 56,125 $ 33,012 The actual aggregate amortization expense for these intangible assets was $829 and $938 for the three months ended December 31, 2018 and 2017, respectively. The estimated aggregate amortization expense for these intangible assets for each of the fiscal years through fiscal 2024 is as follows: remainder of fiscal 2019 – $2,487, fiscal 2020 – $3,156, fiscal 2021 – $2,560, fiscal 2022 – $2,182, fiscal 2023 – $2,170, and fiscal 2024 – $2,166. |
Restructuring
Restructuring | 3 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 6. Restructuring During the second quarter of fiscal 2018, the Company began implementation of a plan to realign its business structure into two business units, Diagnostics and Life Science, supported by a global corporate team. As part of this plan, certain functions and locations within both business units were streamlined, including: (i) the elimination of certain executive management and commercial sales positions; (ii) the closing of Life Science locations in Taunton, Massachusetts and Singapore, the operations of which were transferred to locations in Memphis, Tennessee and London, England, respectively; and (iii) the transfer of certain functions performed in the Billerica, Massachusetts Diagnostics facility to the corporate headquarters in Cincinnati, Ohio. As a result of these activities, restructuring costs totaling $6,332 were recorded during the fiscal year ended September 30, 2018. A summary of the accrued liability associated with the restructuring costs as of December 31, 2018 and September 30, 2018, is as follows: December 31, September 30, Severance, other termination benefits and related costs $ 368 $ 987 Lease and other contract termination fees 8 33 Other 5 6 Total $ 381 $ 1,026 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “tax reform act”). In applying the tax reform act during the three months ended December 31, 2017, we followed the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), regarding the application of ASC Topic 740 in situations where a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the tax reform act for the reporting period in which the tax reform act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the tax reform act’s enactment date and ending when a company has obtained, prepared and analyzed the information needed in order to complete the accounting requirements, but in no circumstances should the measurement period extend beyond one year from the enactment date. As a result, our financial statements for the three months ended December 31, 2017 reflected the effects of the tax reform act as provisional based on a reasonable estimate of the income tax effects and included a provisional noncurrent income tax payable in the amount of $854 related to the repatriation transition tax. Subsequent to the quarter ended December 31, 2017 and prior to September 30, 2018, we completed the accounting for the effects of the tax reform act. As a result, our repatriation transition tax liability was increased to $876, which is reflected as follows in the accompanying Condensed Consolidated Balance as of December 31, 2018: $140 of current income taxes payable and $736 long-term income taxes payable. In addition, during the three months ended December 31, 2017 we recorded a one-time re-measurement re-measurement re-measured |
Bank Credit Arrangements
Bank Credit Arrangements | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Bank Credit Arrangements | 8. Bank Credit Arrangements In March 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 due March 31, 2021. The required principal payments on the term loan for each of the remaining fiscal years are as follows: remainder of fiscal 2019 – $4,125, fiscal 2020 – $6,000, and fiscal 2021 – $39,000. In light of the term loan’s interest being determined on a variable rate basis, the fair value of the term loan at December 31, 2018 approximates the current carrying value reflected in the accompanying Condensed Consolidated Balance Sheet. 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 of 2.76%. With an initial notional balance of $60,000, the interest rate swap was 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 rate 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 December 31, 2018 and September 30, 2018, the fair value of the interest rate swap was $1,145 and $1,722, respectively, and is reflected as a non-current In addition, the Company maintains a $30,000 revolving credit facility with a commercial bank, which expires March 31, 2021. There were no borrowings outstanding on this credit facility at December 31, 2018 or September 30, 2018. The term loan and the revolving 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 December 31, 2018, the Company is in compliance with all covenants. The Company is also required to maintain a compensating cash balance with the bank in the amount of $1,000, and is in compliance with this requirement. |
Reportable Segment and Major Cu
Reportable Segment and Major Customers Information | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segment and Major Customers Information | 9. Reportable Segment and Major Customers Information Meridian was formed in 1976 and functions as a fully-integrated life science company with principal businesses in: (i) the development, manufacture, sale and distribution of diagnostic test kits, primarily for certain gastrointestinal and respiratory 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. The Diagnostics segment consists of manufacturing operations for infectious disease products in Cincinnati, Ohio, and manufacturing operations for blood chemistry products in Billerica, Massachusetts (near Boston), and the sale and distribution of diagnostics products domestically and abroad. This segment’s products are used by hospitals, reference labs and physician offices to detect infectious diseases and elevated lead levels in blood. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; and Luckenwalde, Germany, and the sale and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells, and bioresearch reagents domestically and abroad, including a sales and business development facility in Beijing, China to further pursue growing revenue opportunities in Asia. This segment’s products are used by manufacturers and researchers in a variety of applications (e.g., in-vitro next-gen Amounts due from two Diagnostics distributor customers accounted for 14% and 12% of consolidated accounts receivable at December 31, 2018 and September 30, 2018, respectively. Revenues from these two distributor customers accounted for 34% and 32% of the Diagnostics segment third-party revenues during the three months ended December 31, 2018 and 2017, respectively, and represented 24% and 23% of consolidated revenues for the fiscal 2019 and 2018 first quarters, respectively. Within our Life Science segment, two diagnostic manufacturing customers accounted for 28% and 15% of the segment’s third-party revenues during the three months ended December 31, 2018 and 2017, respectively. Segment information for the interim periods is as follows: Diagnostics Life Science Corporate (1) Eliminations (2) Total Three Months Ended December 31, 2018 Net revenues - Third-Party $ 36,665 $ 14,815 $ — $ — $ 51,480 Inter-segment 163 176 — (339 ) — Operating income 8,786 5,129 (3,391 ) 27 10,551 Goodwill (December 31, 2018) 35,213 19,190 — — 54,403 Other intangible assets, net (December 31, 2018) 21,386 879 — — 22,265 Total assets (December 31, 2018) 178,863 71,283 — (289 ) 249,857 Three Months Ended December 31, 2017 Net revenues - Third-Party $ 37,490 $ 14,793 $ — $ — $ 52,283 Inter-segment 121 192 — (313 ) — Operating income 8,569 2,943 (3,555 ) 104 8,061 Goodwill (September 30, 2018) 35,213 19,424 — — 54,637 Other intangible assets, net (September 30, 2018) 22,068 1,045 — — 23,113 Total assets (September 30, 2018) 180,978 70,341 — 58 251,377 (1) Includes Restructuring and Litigation Costs of $589 and $1,483 in the quarters ended December 31, 2018 and 2017, respectively. (2) 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. |
Litigation Matters
Litigation Matters | 3 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation Matters | 10. Litigation Matters On November 15, 2017, Barbara Forman filed a class action complaint in the United States District Court for the Southern District of Ohio naming Meridian, its Chief Executive Officer and Chief Financial Officer (in their capacities as such) as defendants. An amended complaint was filed on April 16, 2018 and the Company believes the essential elements of the amended complaint are the same. The complaint and the amended complaint are hereafter referred to as the “Complaint”. The Complaint seeks compensatory damages and attorneys’ fees. Meridian has filed a motion to dismiss the Complaint, to which the plaintiff responded on August 14, 2018. The motion has been fully briefed and remains pending before the court. We are unable to determine or predict the ultimate outcome or estimate the range of possible losses, if any. Accordingly, no provision for litigation losses has been included within either of the accompanying Condensed Consolidated Statements of Operations for the three months ended December 31, 2018 or December 31, 2017. On December 6, 2017, Michael Edelson filed a derivative complaint in the United States District Court for the Southern District of Ohio naming Meridian, its Chief Executive Officer, Chief Financial Officer and certain members of Meridian’s Board of Directors and Audit Committee (in their capacities as such) as defendants. The complaint alleges that Meridian made false and misleading representations concerning certain of Magellan’s lead test systems at or around the time of Meridian’s acquisition of Magellan and subsequent thereto, and the complaint alleges that certain members of the Board of Directors and Audit Committee breached their fiduciary duties in their oversight of the Company’s public disclosures and corporate governance matters. The complaint seeks compensatory damages, equitable relief relating to corporate governance matters and attorneys’ fees. The case has been stayed by agreement of the parties pending resolution of the motion to dismiss the class action described above. We are unable to determine or predict the ultimate outcome or estimate the range of possible losses, if any. Accordingly, no provision for litigation losses has been included within either of the accompanying Condensed Consolidated Statements of Operations for the three months ended December 31, 2018 or December 31, 2017. The Company maintains an insurance policy covering these matters, which has a $500 deductible. On April 17, 2018, Magellan received a subpoena from the United States Department of Justice (“DOJ”) regarding its LeadCare product line. The subpoena outlines documents to be produced, and the Company is cooperating with the DOJ in this matter. The Company maintains rigorous policies and procedures to promote compliance with applicable regulatory agencies and requirements, and is working with the DOJ to promptly respond to the subpoena. However, the Company cannot predict when the investigation will be resolved, the outcome of the investigation, or its potential impact on the Company. Approximately $540 and $0 of expense for attorneys’ fees related to this matter is included within the accompanying Condensed Consolidated Statements of Operations for the three months ended December 31, 2018 and December 31, 2017, respectively. On October 9, 2018, the Company and DiaSorin Inc. entered into a strategic collaboration to sell DiaSorin’s Helicobacter pylori H. pylori co-developed |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition – Adoption of New Standard On October 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers Upon adoption, we recorded a reduction of $116 to the opening balance of retained earnings as of October 1, 2018. This adjustment is related to writing off the book value of clinical diagnostic testing instruments located at customers for which there is no contractual arrangement for the instrument to be returned to the Company. Instruments placed with customers under an agreement to return the instrument to the Company were reclassified to machinery and equipment. Prior to adoption of the new guidance, all instruments placed with customers were capitalized and amortized over an estimated three-year utilization period, with the net balance reflected as deferred instrument costs. The following table summarizes the impact of the new revenue standard on our opening balance sheet: Balance at New Revenue Balance at PROPERTY, PLAN AND EQUIPMENT Machinery, equipment and furniture $ 50,606 $ 8,696 $ 59,302 Accumulated depreciation and amortization (55,846 ) (7,611 ) (63,457 ) OTHER ASSETS Deferred instrument costs, net 1,239 (1,239 ) — NON-CURRENT Deferred income taxes (3,769 ) 38 (3,731 ) SHAREHOLDERS’ EQUITY Retained earnings (49,602 ) 116 (49,486 ) The adoption of this new standard had an immaterial impact on our reported total revenues and operating income, as compared to what would have been reported under the prior standard. We expect the impact of adoption in future periods to continue to be immaterial. Our accounting policies under the new standard were applied prospectively and are noted below following the discussion of Revenue Disaggregation. Revenue Disaggregation The following tables present our revenues disaggregated by major geographic region, major product platform and disease state (Diagnostics only): Revenue by Reportable Segment & Geographic Region Three Months Ended December 31, 2018 2017 Inc (Dec) Diagnostics- Americas $ 31,147 $ 31,575 (1 )% EMEA 5,085 5,415 (6 )% ROW 433 500 (13 )% Total Diagnostics 36,665 37,490 (2 )% Life Science- Americas 4,534 5,250 (14 )% EMEA 7,455 5,185 44 % ROW 2,826 4,358 (35 )% Total Life Science 14,815 14,793 — % Consolidated $ 51,480 $ 52,283 (2 )% Revenue by Product Platform/Type Three Months Ended December 31, 2018 2017 Inc (Dec) Diagnostics- Molecular assays $ 7,298 $ 8,717 (16 )% Immunoassays & blood chemistry assays 29,367 28,773 2 % Total Diagnostics $ 36,665 $ 37,490 (2 )% Life Science- Molecular reagents $ 6,589 $ 5,688 16 % Immunological reagents 8,226 9,105 (10 )% Total Life Science $ 14,815 $ 14,793 — % Revenue by Disease State (Diagnostics only) Three Months Ended December 31, 2018 2017 Inc (Dec) Diagnostics- Gastrointestinal assays $ 18,633 $ 20,270 (8 )% Respiratory illness assays 7,977 7,486 7 % Blood chemistry assays 4,466 4,266 5 % Other 5,589 5,468 2 % Total Diagnostics $ 36,665 $ 37,490 (2 )% Revenue Policies Product Sales Revenue from contracts with customers is recognized in an amount that reflects the consideration we expect to receive in exchange for products when obligations under such contracts are satisfied. Revenue is generally recognized at a point-in-time Revenue is reduced in the period of sale for fees paid to distributors, which are inseparable from the distributor’s purchase of our product and for which we receive no goods or services in return. Revenue for the Diagnostics segment is reduced at the date of sale for product price adjustments due to certain distributors under local contracts. Management estimates accruals for distributor price adjustments based on local contract terms, sales data provided by distributors, historical statistics, current trends, and other factors. Changes to the accruals are recorded in the period that they become known. Such accruals are netted against accounts receivable. Shipping and handling costs incurred after control of the product is transferred to our customers are treated as fulfillment costs and not a separate performance obligation. Our payment terms differ by jurisdiction and customer but payment is generally required in a term ranging from 30 to 90 days from the date of shipment or satisfaction of the performance obligation. Trade accounts receivable are recorded in the accompanying Consolidated Balance Sheets at invoiced amounts less provisions for distributor price adjustments under local contracts and doubtful accounts. The allowance for doubtful accounts represents our estimate of probable credit losses and is based on historical write-off non-payment. Practical Expedients and Exemptions Revenue is recognized net of any taxes collected from customers (sales tax, value added tax, etc.), which are subsequently remitted to government authorities. Our products are generally not subject to a customer right of return except for product recall events under the rules and regulations of the Food and Drug Administration or equivalent agencies outside the United States. In this circumstance, the costs to replace affected products would be accrued at the time a loss was probable and estimable. We expense as incurred the costs to obtain contracts, as the amortization period would have been one year or less. These costs, recorded within selling and marketing expense, include our internal sales force compensation programs and certain partner sales incentive programs, as we have determined that annual compensation is commensurate with annual selling activities. Reagent Rental Arrangements Our Alethia and LeadCare product platforms require the use of instruments for the tests to be processed. In many cases a customer is given use of the instrument, provided they continue purchasing the associated tests, also referred to as “consumables” or “reagents”. If a customer stops purchasing the consumables, the instrument must be returned to Meridian. Such arrangements are common practice in the diagnostics industry and are referred to as “Reagent Rental” agreements. These agreements may also include instrument related services such as a limited replacement warranty, training and installation. We concluded that the use of the instrument and related services (collectively known as “lease elements”) are not within the scope of ASU No. 2014-09 2016-02, Leases non-lease non-lease For the portion of the transaction price allocated to the non-lease Revenue allocated to the lease elements of these Reagent Rental arrangements represent less than 1% of total revenue and are included as part of net revenues in our Condensed Consolidated Statements of Income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements – In February 2016, the FASB issued ASU 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Reclassifications | Reclassifications – Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. Such reclassifications had no impact on net earnings or shareholders’ equity. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Impact of New Revenue Standard on Opening Balance Sheet | The following table summarizes the impact of the new revenue standard on our opening balance sheet: Balance at New Revenue Balance at PROPERTY, PLAN AND EQUIPMENT Machinery, equipment and furniture $ 50,606 $ 8,696 $ 59,302 Accumulated depreciation and amortization (55,846 ) (7,611 ) (63,457 ) OTHER ASSETS Deferred instrument costs, net 1,239 (1,239 ) — NON-CURRENT Deferred income taxes (3,769 ) 38 (3,731 ) SHAREHOLDERS’ EQUITY Retained earnings (49,602 ) 116 (49,486 ) |
Summary of Disaggregation of Revenue | The following tables present our revenues disaggregated by major geographic region, major product platform and disease state (Diagnostics only): Revenue by Reportable Segment & Geographic Region Three Months Ended December 31, 2018 2017 Inc (Dec) Diagnostics- Americas $ 31,147 $ 31,575 (1 )% EMEA 5,085 5,415 (6 )% ROW 433 500 (13 )% Total Diagnostics 36,665 37,490 (2 )% Life Science- Americas 4,534 5,250 (14 )% EMEA 7,455 5,185 44 % ROW 2,826 4,358 (35 )% Total Life Science 14,815 14,793 — % Consolidated $ 51,480 $ 52,283 (2 )% Revenue by Product Platform/Type Three Months Ended December 31, 2018 2017 Inc (Dec) Diagnostics- Molecular assays $ 7,298 $ 8,717 (16 )% Immunoassays & blood chemistry assays 29,367 28,773 2 % Total Diagnostics $ 36,665 $ 37,490 (2 )% Life Science- Molecular reagents $ 6,589 $ 5,688 16 % Immunological reagents 8,226 9,105 (10 )% Total Life Science $ 14,815 $ 14,793 — % Revenue by Disease State (Diagnostics only) Three Months Ended December 31, 2018 2017 Inc (Dec) Diagnostics- Gastrointestinal assays $ 18,633 $ 20,270 (8 )% Respiratory illness assays 7,977 7,486 7 % Blood chemistry assays 4,466 4,266 5 % Other 5,589 5,468 2 % Total Diagnostics $ 36,665 $ 37,490 (2 )% |
Cash and Equivalents (Tables)
Cash and Equivalents (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Components of Cash and Cash Equivalents | Cash and equivalents include the following components: December 31, 2018 September 30, 2018 Cash and Other Cash and Other Institutional money market funds $ 20,540 $ — $ 20,421 $ — Cash on hand - Restricted — 1,000 — 1,000 Unrestricted 40,983 — 39,342 — Total $ 61,523 $ 1,000 $ 59,763 $ 1,000 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories are comprised of the following: December 31, September 30, Raw materials $ 7,123 $ 6,689 Work-in-process 12,037 12,098 Finished goods - instruments 1,224 1,191 Finished goods - kits and reagents 21,505 22,015 Total $ 41,889 $ 41,993 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and September 30, 2018, is as follows: December 31, 2018 September 30, 2018 Gross Accumulated Gross Accumulated Manufacturing technologies, core products and cell lines $ 22,268 $ 14,243 $ 22,297 $ 13,974 Trade names, licenses and patents 8,613 5,463 8,647 5,267 Customer lists, customer relationships and supply agreements 24,385 13,295 24,461 13,051 Non-compete 720 720 720 720 Total $ 55,986 $ 33,721 $ 56,125 $ 33,012 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Accrued Liability Associated With Restructuring Costs | A summary of the accrued liability associated with the restructuring costs as of December 31, 2018 and September 30, 2018, is as follows: December 31, September 30, Severance, other termination benefits and related costs $ 368 $ 987 Lease and other contract termination fees 8 33 Other 5 6 Total $ 381 $ 1,026 |
Reportable Segment and Major _2
Reportable Segment and Major Customers Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information for the interim periods is as follows: Diagnostics Life Science Corporate (1) Eliminations (2) Total Three Months Ended December 31, 2018 Net revenues - Third-Party $ 36,665 $ 14,815 $ — $ — $ 51,480 Inter-segment 163 176 — (339 ) — Operating income 8,786 5,129 (3,391 ) 27 10,551 Goodwill (December 31, 2018) 35,213 19,190 — — 54,403 Other intangible assets, net (December 31, 2018) 21,386 879 — — 22,265 Total assets (December 31, 2018) 178,863 71,283 — (289 ) 249,857 Three Months Ended December 31, 2017 Net revenues - Third-Party $ 37,490 $ 14,793 $ — $ — $ 52,283 Inter-segment 121 192 — (313 ) — Operating income 8,569 2,943 (3,555 ) 104 8,061 Goodwill (September 30, 2018) 35,213 19,424 — — 54,637 Other intangible assets, net (September 30, 2018) 22,068 1,045 — — 23,113 Total assets (September 30, 2018) 180,978 70,341 — 58 251,377 (1) Includes Restructuring and Litigation Costs of $589 and $1,483 in the quarters ended December 31, 2018 and 2017, respectively. (2) Eliminations consist of inter-segment transactions. |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 01, 2018 | Dec. 31, 2018 | Sep. 30, 2018 |
Schedule Of Accounting Policies [Line Items] | |||
Expected instrument utilization period | 3 years | ||
Revenue, description of payment terms | 30 to 90 days from the date of shipment or satisfaction of the performance obligation | ||
Maximum [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Contract cost, amortization period | 1 year | ||
Maximum [Member] | Reagent Rental Arrangements [Member] | Lease Elements [Member] | Product Concentration Risk [Member] | Revenues [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Concentration risk percentage | 1.00% | ||
Accounting Standards Update 2014-09 [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Reduction to opening balance of retained earnings | $ (116) |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Impact of New Revenue Standard on Opening Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 |
PROPERTY, PLAN AND EQUIPMENT | |||
Machinery, equipment and furniture | $ 59,637 | $ 59,302 | $ 50,606 |
Accumulated depreciation and amortization | (64,108) | (63,457) | (55,846) |
OTHER ASSETS | |||
Deferred instrument costs, net | 1,239 | ||
NON-CURRENT LIABILITIES | |||
Deferred income taxes | (3,861) | (3,731) | (3,769) |
SHAREHOLDERS' EQUITY | |||
Retained earnings | $ (52,291) | (49,486) | $ (49,602) |
New Revenue Standard Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | |||
PROPERTY, PLAN AND EQUIPMENT | |||
Machinery, equipment and furniture | 8,696 | ||
Accumulated depreciation and amortization | (7,611) | ||
OTHER ASSETS | |||
Deferred instrument costs, net | (1,239) | ||
NON-CURRENT LIABILITIES | |||
Deferred income taxes | (38) | ||
SHAREHOLDERS' EQUITY | |||
Retained earnings | $ 116 |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Disaggregation of Revenue by Reportable Segment and Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 51,480 | $ 52,283 |
Revenue, % change | (2.00%) | |
Diagnostics [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 36,665 | 37,490 |
Revenue, % change | (2.00%) | |
Diagnostics [Member] | Americas [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 31,147 | 31,575 |
Revenue, % change | (1.00%) | |
Diagnostics [Member] | EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 5,085 | 5,415 |
Revenue, % change | (6.00%) | |
Diagnostics [Member] | ROW [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 433 | 500 |
Revenue, % change | (13.00%) | |
Life Science [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 14,815 | 14,793 |
Life Science [Member] | Americas [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 4,534 | 5,250 |
Revenue, % change | (14.00%) | |
Life Science [Member] | EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 7,455 | 5,185 |
Revenue, % change | 44.00% | |
Life Science [Member] | ROW [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 2,826 | $ 4,358 |
Revenue, % change | (35.00%) |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Disaggregation of Revenue by Product Platform/Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 51,480 | $ 52,283 |
Revenue, % change | (2.00%) | |
Diagnostics [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 36,665 | 37,490 |
Revenue, % change | (2.00%) | |
Diagnostics [Member] | Molecular Assays [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 7,298 | 8,717 |
Revenue, % change | (16.00%) | |
Diagnostics [Member] | Immunoassays & Blood Chemistry Assays [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 29,367 | 28,773 |
Revenue, % change | 2.00% | |
Life Science [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 14,815 | 14,793 |
Life Science [Member] | Molecular Reagents [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 6,589 | 5,688 |
Revenue, % change | 16.00% | |
Life Science [Member] | Immunological Reagents [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 8,226 | $ 9,105 |
Revenue, % change | (10.00%) |
Significant Accounting Polici_8
Significant Accounting Policies - Summary of Disaggregation of Revenue by Disease State (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 51,480 | $ 52,283 |
Revenue, % change | (2.00%) | |
Diagnostics [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 36,665 | 37,490 |
Revenue, % change | (2.00%) | |
Diagnostics [Member] | Gastrointestinal Assays [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 18,633 | 20,270 |
Revenue, % change | (8.00%) | |
Diagnostics [Member] | Respiratory Illness Assays [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 7,977 | 7,486 |
Revenue, % change | 7.00% | |
Diagnostics [Member] | Blood Chemistry Assays [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 4,466 | 4,266 |
Revenue, % change | 5.00% | |
Diagnostics [Member] | Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 5,589 | $ 5,468 |
Revenue, % change | 2.00% |
Cash and Equivalents - Componen
Cash and Equivalents - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 61,523 | $ 59,763 | $ 54,711 |
Other assets | 1,000 | 1,000 | |
Institutional Money Market Funds [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 20,540 | 20,421 | |
Other Restricted Cash [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Other assets | 1,000 | 1,000 | |
Cash [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 40,983 | $ 39,342 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Inventory [Line Items] | ||
Raw materials | $ 7,123 | $ 6,689 |
Work-in-process | 12,037 | 12,098 |
Total | 41,889 | 41,993 |
Instruments [Member] | ||
Inventory [Line Items] | ||
Finished goods | 1,224 | 1,191 |
Kits and Reagents [Member] | ||
Inventory [Line Items] | ||
Finished goods | $ 21,505 | $ 22,015 |
Intangible Assets - Summary of
Intangible Assets - Summary of Acquired Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 55,986 | $ 56,125 |
Accumulated Amortization | 33,721 | 33,012 |
Manufacturing Technologies, Core Products and Cell Lines [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 22,268 | 22,297 |
Accumulated Amortization | 14,243 | 13,974 |
Trade Names, Licenses and Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,613 | 8,647 |
Accumulated Amortization | 5,463 | 5,267 |
Customer Lists, Customer Relationships, and Supply Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 24,385 | 24,461 |
Accumulated Amortization | 13,295 | 13,051 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 720 | 720 |
Accumulated Amortization | $ 720 | $ 720 |
Intangible Assets- Additional I
Intangible Assets- Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 829 | $ 938 |
Estimated amortization expense for intangible assets remainder of fiscal year 2019 | 2,487 | |
2,020 | 3,156 | |
2,021 | 2,560 | |
2,022 | 2,182 | |
2,023 | 2,170 | |
2,024 | $ 2,166 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 734 | |
Diagnostics and Life Science Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 6,332 |
Restructuring - Schedule of Acc
Restructuring - Schedule of Accrued Liability Associated With Restructuring Costs (Detail) - Diagnostics and Life Science Restructuring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Restructuring Cost and Reserve [Line Items] | ||
Accrued liability associated with the restructuring costs | $ 381 | $ 1,026 |
Severance, Other Termination Benefits and Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrued liability associated with the restructuring costs | 368 | 987 |
Lease and Other Contract Termination Fees [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrued liability associated with the restructuring costs | 8 | 33 |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrued liability associated with the restructuring costs | $ 5 | $ 6 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes Disclosure [Line Items] | ||
Provisional repatriation transition tax | $ 876 | $ 854 |
Tax rate used for re-measurement of temporary differences expected to be realized during fiscal 2018 | 24.50% | |
Tax rate used for re-measurement of remaining temporary differences | 21.00% | |
Tax benefit from tax reform act | $ 1,695 | |
Accrued Income Taxes Current [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Provisional repatriation transition tax | $ 140 | |
Accrued Income Taxes Noncurrent [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Provisional repatriation transition tax | $ 736 |
Bank Credit Arrangements - Addi
Bank Credit Arrangements - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2018 | Mar. 22, 2016 | |
Debt Instrument [Line Items] | |||
Notional balance | $ 60,000,000 | ||
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 asset | $ 1,145,000 | $ 1,722,000 | |
Bank credit arrangement, fixed interest rate percentage | 2.76% | ||
Credit facility with a commercial bank | $ 30,000,000 | ||
Expiration date of credit facility | Mar. 31, 2021 | ||
Borrowings outstanding under credit facility | $ 0 | $ 0 | |
Cash compensating balance | 1,000,000 | ||
Magellan [Member] | |||
Debt Instrument [Line Items] | |||
2,019 | 4,125,000 | ||
2,020 | 6,000,000 | ||
2,021 | $ 39,000,000 | ||
Five - Year Term Loan [Member] | Magellan [Member] | |||
Debt Instrument [Line Items] | |||
Term loan | $ 60,000,000 |
Reportable Segment and Major _3
Reportable Segment and Major Customers Information - Additional Information (Detail) - Customer Concentration Risk [Member] - Customer | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
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 | |
Concentration risk percentage | 28.00% | 15.00% | |
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 | |
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 | 34.00% | 32.00% | |
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 | 14.00% | 12.00% | |
Two Diagnostic Distributor Customers [Member] | Revenues [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 24.00% | 23.00% |
Reportable Segment and Major _4
Reportable Segment and Major Customers Information - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | |||
NET REVENUES | $ 51,480 | $ 52,283 | |
Operating income | 10,551 | 8,061 | |
Goodwill | 54,403 | $ 54,637 | |
Other intangible assets, net | 22,265 | 23,113 | |
Total assets | 249,857 | 251,377 | |
Operating Segments [Member] | Diagnostics [Member] | |||
Segment Reporting Information [Line Items] | |||
NET REVENUES | 36,665 | 37,490 | |
Operating income | 8,786 | 8,569 | |
Goodwill | 35,213 | 35,213 | |
Other intangible assets, net | 21,386 | 22,068 | |
Total assets | 178,863 | 180,978 | |
Net revenues | 163 | 121 | |
Operating Segments [Member] | Life Science [Member] | |||
Segment Reporting Information [Line Items] | |||
NET REVENUES | 14,815 | 14,793 | |
Operating income | 5,129 | 2,943 | |
Goodwill | 19,190 | 19,424 | |
Other intangible assets, net | 879 | 1,045 | |
Total assets | 71,283 | 70,341 | |
Net revenues | 176 | 192 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | (3,391) | (3,555) | |
Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | 27 | 104 | |
Total assets | (289) | $ 58 | |
Net revenues | $ (339) | $ (313) |
Reportable Segment and Major _5
Reportable Segment and Major Customers Information - Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Restructuring and litigation costs | $ 589 | $ 1,483 |
Litigation Matters - Additional
Litigation Matters - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Amount deductible from insurance coverage | $ 500,000 | |
Litigation costs | $ 589,000 | $ 749,000 |
Class Action Complaint One [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation filing date | Nov. 15, 2017 | |
Provision for litigation losses | $ 0 | 0 |
Amended Complaint [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation filing date | Apr. 16, 2018 | |
Class Action Complaint Two [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation filing date | Dec. 6, 2017 | |
Provision for litigation losses | $ 0 | 0 |
DOJ Subpoena [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation filing date | Apr. 17, 2018 | |
Litigation costs | $ 540,000 | 0 |
DiaSorin Inc. [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation costs | $ 50,000 | $ 730,000 |