Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Mar. 31, 2015 | 4-May-15 | |
Entity Registrant Name | BIO-TECHNE Corp | |
Entity Central Index Key | 842023 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 37,152,903 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Net sales | $114,158,000 | $95,555,000 | $334,583,000 | $265,240,000 |
Cost of sales | 34,778,000 | 27,444,000 | 106,394,000 | 77,422,000 |
Gross margin | 79,380,000 | 68,111,000 | 228,189,000 | 187,818,000 |
Operating expenses: | ||||
Selling, general and administrative | 29,089,000 | 14,666,000 | 88,927,000 | 43,613,000 |
Research and development | 10,865,000 | 7,676,000 | 30,040,000 | 23,301,000 |
Total operating expenses | 39,954,000 | 22,342,000 | 118,967,000 | 66,914,000 |
Operating income | 39,426,000 | 45,769,000 | 109,222,000 | 120,904,000 |
Other income, net | -667,000 | 300,000 | 6,698,000 | 1,037,000 |
Earnings before income taxes | 38,759,000 | 46,069,000 | 115,920,000 | 121,941,000 |
Income taxes | 14,469,000 | 14,428,000 | 34,514,000 | 37,817,000 |
Net earnings | 24,290,000 | 31,641,000 | 81,406,000 | 84,124,000 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | -20,094,000 | 733,000 | -45,034,000 | 11,979,000 |
Unrealized gain (loss) on available-for-sale investments, net of tax of $1,644, $42, $2,070 and ($16,887), respectively | 2,949,000 | 5,311,000 | 8,800,000 | -30,441,000 |
Other comprehensive income | -17,145,000 | 6,044,000 | -36,234,000 | -18,462,000 |
Comprehensive income | $7,145,000 | $37,685,000 | $45,172,000 | $65,662,000 |
Earnings per share: | ||||
Basic (in dollars per share) | $0.65 | $0.86 | $2.20 | $2.28 |
Diluted (in dollars per share) | $0.65 | $0.85 | $2.19 | $2.27 |
Cash dividends per common share: (in dollars per share) | $0.32 | $0.31 | $0.95 | $0.92 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 37,138 | 36,911 | 37,078 | 36,878 |
Diluted (in shares) | 37,269 | 37,053 | 37,210 | 36,995 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Unrealized Losses on Available-for-Sale Investments, Tax | $1,644 | $42 | $2,070 | ($16,887) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $106,447 | $318,568 |
Short-term available-for-sale investments | 53,503 | 44,786 |
Trade accounts receivable, less allowance for doubtful accounts of $591 and $487, respectively | 65,885 | 47,874 |
Other receivables | 942 | 7,127 |
Inventories | 51,045 | 38,847 |
Prepaid expenses | 5,187 | 2,588 |
Deferred income taxes | 11,729 | 9,623 |
Total current assets | 294,738 | 469,413 |
Available-for-sale investments | 3,575 | |
Property and equipment, net | 124,485 | 117,120 |
Intangible assets, net | 297,313 | 108,776 |
Goodwill | 385,831 | 151,473 |
Investments in unconsolidated entities | 10,446 | |
Other assets | 1,938 | 1,688 |
1,104,305 | 862,491 | |
Current liabilities: | ||
Trade accounts payable | 13,510 | 9,652 |
Salaries, wages and related accruals | 9,281 | 6,158 |
Accrued expenses | 7,208 | 4,136 |
Income taxes payable | 2,019 | 496 |
Deferred revenue, current | 3,491 | |
Related party note payable, current | 3,004 | 5,949 |
Total current liabilities | 38,513 | 26,391 |
Deferred income taxes | 56,571 | 33,838 |
Related party note payable, long-term | 8,011 | 6,997 |
Long-term debt obligations | 144,000 | |
Contingent consideration payable | 35,000 | |
Other long-term liabilities | 2,144 | |
Shareholders’ equity: | ||
Common stock, par value $.01 per share; authorized 100,000,000; issued and outstanding 37,152,903 and 37,002,203, respectively | 372 | 370 |
Additional paid-in capital | 161,850 | 147,004 |
Retained earnings | 699,466 | 653,279 |
Accumulated other comprehensive loss | -41,622 | -5,388 |
Total shareholders’ equity | 820,066 | 795,265 |
$1,104,305 | $862,491 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Trade Accounts Receivable, Allowance for Doubtful Accounts | $591 | $487 |
Common Stock, Par Value (in dollars per share) | $0.01 | $0.01 |
Common Stock, Shares Authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued (in shares) | 37,152,903 | 37,002,203 |
Common Stock, Shares Outstanding (in shares) | 37,152,903 | 37,002,203 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $81,406,000 | $84,124,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 27,727,000 | 13,864,000 |
Costs recognized on sale of acquired inventory | 5,252,000 | 4,312,000 |
Deferred income taxes | -794,000 | -4,098,000 |
Stock-based compensation expense | 4,725,000 | 2,635,000 |
Gain on CyVek acquisition | -8,300,000 | |
Other | -34,000 | 424,000 |
Change in operating assets and operating liabilities, net of acquisition: | ||
Trade accounts and other receivables | -7,316,000 | -6,862,000 |
Inventories | -4,882,000 | -704,000 |
Prepaid expenses | -595,000 | -38,000 |
Trade accounts payable and accrued expenses | 1,490,000 | 575,000 |
Salaries, wages and related accruals | 693,000 | 1,463,000 |
Income taxes payable | 2,848,000 | 3,146,000 |
Net cash provided by operating activities | 102,220,000 | 98,841,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions, net of cash acquired | -420,102,000 | -103,149,000 |
Purchase of available-for-sale investments | -89,283,000 | |
Proceeds from sales of available-for-sale investments | 43,375,000 | |
Proceeds from maturities of available-for-sale investments | 11,996,000 | 46,754,000 |
Additions to property and equipment | -12,971,000 | -11,719,000 |
Other | 106,000 | 25,000 |
Net cash used in investing activities | -420,971,000 | -113,997,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash dividends | -35,218,000 | -33,925,000 |
Proceeds from stock option exercises | 9,732,000 | 5,128,000 |
Excess tax benefit from stock option exercises | 392,000 | |
Borrowings under line-of-credit agreement | 163,000,000 | |
Payments on line of credit and other | -20,953,000 | |
Net cash provided by (used in) financing activities | 116,953,000 | -28,797,000 |
Effect of exchange rate changes on cash and cash equivalents | -10,323,000 | 3,770,000 |
Net decrease in cash and cash equivalents | -212,121,000 | -40,183,000 |
Cash and cash equivalents at beginning of period | 318,568,000 | 163,786,000 |
Cash and cash equivalents at end of period | $106,447,000 | $123,603,000 |
Note_1_Basis_of_Presentation_a
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Business Description and Accounting Policies [Text Block] | Note 1. | ||||||||
Basis of | |||||||||
P | |||||||||
resentation | |||||||||
and Summary of Significant Accounting Policies | |||||||||
: | |||||||||
The interim consolidated financial statements of Bio-Techne Corporation and subsidiaries, (the Company) presented here have been prepared by the Company and are unaudited. They have been prepared in accordance with accounting principles generally accepted in the United States of America and with instructions to Form 10-Q and Article 10 of Regulation S-X. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature. | |||||||||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto for the fiscal year ended June 30, 2014, included in the Company’s Annual Report on Form 10-K for fiscal 2014. A summary of significant accounting policies followed by the Company is detailed in the Company’s Annual Report on Form 10-K for fiscal 2014. The Company follows these policies in preparation of the interim unaudited condensed consolidated financial statements. | |||||||||
Available-For-Sale Investments: | |||||||||
The Company’s available-for-sale securities are carried at fair value using Level 1 and Level 2 inputs. The fair value of the Company’s available-for-sale investments at March 31, 2015 and June 30, 2014 were $53.5 million and $48.4 million, respectively. The amortized cost basis of the Company’s available-for-sale investments at March 31, 2015 and June 30, 2014 were $35.0 million and $40.7 million, respectively. | |||||||||
Included in the Company’s available-for-sale securities is an investment in the common stock and warrants of ChemoCentryx Inc. CCXI. The fair value of the Company’s investment was $48.0 million and $37.1 million at March 31, 2015 and June 30, 2014, respectively. The cost basis of the Company’s investment in CCXI was $29.5 million at both March 31, 2015 and June 30, 2014. | |||||||||
Inventories: | |||||||||
Inventories consist of (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 15,704 | $ | 9,852 | |||||
Finished goods | 35,341 | 28,995 | |||||||
Inventories, net | $ | 51,045 | $ | 38,847 | |||||
At March 31, 2015 and June 30, 2014, the Company had approximately $24 million and $30 million of excess protein, antibody and chemically-based inventory on hand which was not valued, respectively. The decline in the reserve balance is the result of the company disposing of excess inventory. | |||||||||
Property and Equipment: | |||||||||
Property and equipment consist of (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Land | $ | 7,308 | $ | 7,468 | |||||
Buildings and improvements | 153,461 | 149,442 | |||||||
Machinery and equipment | 68,042 | 53,067 | |||||||
Property and equipment, cost | 228,811 | 209,977 | |||||||
Accumulated depreciation and amortization | (104,326 | ) | (92,857 | ) | |||||
Property and equipment, net | $ | 124,485 | $ | 117,120 | |||||
Intangible Assets: | |||||||||
Intangible assets consist of (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Developed technology | $ | 107,659 | $ | 48,166 | |||||
Trade names | 63,336 | 24,280 | |||||||
Customer relationships | 166,460 | 59,240 | |||||||
Non-compete agreements | 3,295 | 3,109 | |||||||
Intangible assets | 340,750 | 134,795 | |||||||
Accumulated amortization | (43,437 | ) | (26,019 | ) | |||||
Intangible assets, net | $ | 297,313 | $ | 108,776 | |||||
Changes to the carrying amount of net intangible assets for the nine months ended March 31, 2015 consist of (in thousands): | |||||||||
Beginning balance | $ | 108,776 | |||||||
Acquisitions | 223,010 | ||||||||
Amortization expense | (19,338 | ) | |||||||
Currency translation | (15,135 | ) | |||||||
Ending balance | $ | 297,313 | |||||||
The estimated future amortization expense for intangible assets as of March 31, 2015 is as follows (in thousands): | |||||||||
Fiscal Year | |||||||||
2015 | $ | 6,779 | |||||||
2016 | 27,084 | ||||||||
2017 | 26,201 | ||||||||
2018 | 26,008 | ||||||||
2019 | 25,394 | ||||||||
Thereafter | 185,847 | ||||||||
$ | 297,313 | ||||||||
G | |||||||||
oodwill | |||||||||
: | |||||||||
Changes to the carrying amount of goodwill for the nine months ended March 31, 2015 consist of (in thousands): | |||||||||
Beginning balance | $ | 151,473 | |||||||
Acquisitions | 252,541 | ||||||||
Currency translation | (18,183 | ) | |||||||
Ending balance | $ | 385,831 |
Note_2_Acquisitions
Note 2 - Acquisitions | 9 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Note 2. Acquisitions: | ||||||||||||||||||||||||
The Company’s acquisitions have historically been made at prices above the fair value of the acquired identifiable assets, resulting in goodwill. The goodwill is due to strategic benefits of growing the Company’s product portfolio, expected revenue growth from the increased market penetration from future products and customers, and expectations of synergies that will be realized by combining the businesses. Acquisitions have been accounted for using the purchase method of accounting and the acquired companies’ results have been included in the accompanying financial statements from their respective dates of acquisition. Acquisition costs are recorded in selling, general and administrative expenses as incurred. | |||||||||||||||||||||||||
On July 2, 2014, the Company acquired all of the issued and outstanding equity interests of Novus Holdings LLC (Novus). The acquisition was funded entirely by cash on-hand. Novus broadens the Company’s antibody offerings by being a supplier of a large portfolio of both outsourced and in-house developed antibodies and other reagents for life science research. Novus is included in the Company’s Biotechnology segment. The purchase price of Novus exceeded the fair value of the identifiable net assets and, accordingly, the difference was allocated to goodwill, the majority of which is tax deductible. | |||||||||||||||||||||||||
On July 31, 2014, the Company acquired ProteinSimple. ProteinSimple expands the Company’s solutions that it can offer its customers by developing and commercializing proprietary systems and consumables for protein analysis. The Company opened a line-of-credit (Note 3) to partially fund the acquisition. The purchase price of ProteinSimple exceeded the fair value of the identifiable net assets and, accordingly, the difference was allocated to goodwill, substantially all of which is not tax deductible. ProteinSimple is included in the Company’s Protein Platforms segment. | |||||||||||||||||||||||||
On November 3, 2014, the Company acquired CyVek, Inc. (CyVek) through a merger. CyVek has developed a transformative immunoassay technology which integrates an innovatively designed microfluidic cartridge with a state-of-the-art analyzer to deliver the most advanced and efficient bench top immunoassay system. In fiscal 2014, the Company entered into an Agreement of Investment and Merger (the Agreement) with CyVek. Pursuant to the terms of the Agreement, the Company invested $10.0 million in CyVek and received shares of Common Stock representing approximately 19.9% of the outstanding voting stock of CyVek. Between the time of the Company’s initial investment and November 3, 2014, CyVek met certain commercial milestones related to the sale of its products, which obligated the Company to acquire CyVek through a merger, with CyVek surviving as a wholly-owned subsidiary of the Company. | |||||||||||||||||||||||||
The Company made an initial payment of approximately $62.0 million to the other stockholders of CyVek on November 3, 2014. Such purchase price was adjusted after closing based on the final levels of cash, indebtedness and transaction expenses of CyVek as of the closing. The Company will also pay CyVek’s previous stockholders up to $35.0 million based on the revenue generated by CyVek’s products before May 3, 2017 (30 months from the closing of the Merger). The Company will also pay CyVek’s previous stockholders 50% of the amount, if any, by which the revenue from CyVek’s products and related products exceeds $100 million in calendar year 2020. The Company has recorded the present value of these contingent payments as a long-term liability of $35.0 million at March 31, 2015. In addition, at November 3, 2014, the Company re-measured its previous investment in CyVek to acquisition-date fair value, resulting in a gain on the investment of $8.3 million which is included in Other income on the Condensed Consolidated Statements of Earnings and Comprehensive Income. The purchase price of CyVek exceeded the fair value of the identifiable net assets and, accordingly, the difference was allocated to goodwill, substantially all of which is not tax deductible. CyVek is included in the Company’s Protein Platforms segment. | |||||||||||||||||||||||||
The preliminary estimated fair value of the assets acquired and liabilities assumed in each acquisition, pending final valuation of intangible assets, was as follows (in thousands): | |||||||||||||||||||||||||
Novus | ProteinSimple | CyVek | |||||||||||||||||||||||
Current assets | $ | 10,739 | $ | 20,273 | $ | 945 | |||||||||||||||||||
Equipment | 1,266 | 1,983 | 971 | ||||||||||||||||||||||
Other long-term assets | 40 | 554 | 19 | ||||||||||||||||||||||
Intangible Assets: | |||||||||||||||||||||||||
Developed technology | 5,010 | 40,500 | 20,200 | ||||||||||||||||||||||
Trade name | 5,300 | 35,800 | 100 | ||||||||||||||||||||||
Customer relationships | 14,400 | 100,600 | 900 | ||||||||||||||||||||||
Non-compete agreements | - | 200 | - | ||||||||||||||||||||||
Goodwill | 26,692 | 134,265 | 91,584 | ||||||||||||||||||||||
Total assets acquired | 63,447 | 334,175 | 114,719 | ||||||||||||||||||||||
Liabilities | 2,166 | 11,304 | 1,930 | ||||||||||||||||||||||
Deferred income taxes, net | 1,159 | 22,818 | (438 | ) | |||||||||||||||||||||
Net assets | $ | 60,122 | $ | 300,053 | $ | 113,227 | |||||||||||||||||||
Less fair-value of previous investment | - | - | 18,300 | ||||||||||||||||||||||
Net assets acquired | 60,122 | 300,053 | 94,927 | ||||||||||||||||||||||
Cash paid, net of cash acquired | $ | 60,122 | $ | 300,053 | 59,927 | ||||||||||||||||||||
Contingent consideration payable | - | - | 35,000 | ||||||||||||||||||||||
Net purchase price | $ | 60,122 | $ | 300,053 | $ | 94,927 | |||||||||||||||||||
Tangible assets acquired, net of liabilities assumed, were stated at fair value at the date of acquisition based on management’s assessment. The purchase price allocated to developed technology, trade names, non-compete agreements and customer relationships was based on management’s forecasted cash inflows and outflows and using a relief-from-royalty and a multi-period excess earnings method to calculate the fair value of assets purchased. The developed technology is being amortized with the expense reflected in cost of goods sold in the Condensed Consolidated Statement of Earnings and Comprehensive Income. Amortization expense related to trade names, the non-compete agreements and customer relationships is reflected in selling, general and administrative expenses in the Consolidated Statement of Earnings and Comprehensive Income. The weighted-average amortization periods for intangible assets acquired in fiscal 2015 are 11.3 years for developed technology, 19.5 years for trade names and 14.8 years for customer relationships. The non-compete agreements are being amortized over three years. The deferred income tax liability represents the net amount of the estimated future impact of adjustments for costs to be recognized upon the sale of acquired inventory that was written up to fair value and intangible asset amortization which are not deductible for income tax purposes and the future tax benefit of net operating loss and tax credit carry forwards which will be deductible by the Company in future periods. | |||||||||||||||||||||||||
The Company’s Condensed Consolidated Financial Statements include the following from the above acquisitions: | |||||||||||||||||||||||||
Novus | ProteinSimple | CyVek | |||||||||||||||||||||||
Quarter | Nine Months | Quarter | Nine Months | Quarter | Nine Months | ||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||
31-Mar-15 | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | ||||||||||||||||||||
Net sales | $ | 4,845 | $ | 15,438 | $ | 20,414 | $ | 53,427 | $ | 192 | $ | 392 | |||||||||||||
Net (loss) income | (76 | ) | (430 | ) | (4,545 | ) | (5,753 | ) | (2,601 | ) | (3,624 | ) | |||||||||||||
Amortization expense | 474 | 1,423 | 2,951 | 8,325 | 374 | 625 | |||||||||||||||||||
Cost recognized on sale | 406 | 1,465 | - | 1,444 | - | 64 | |||||||||||||||||||
of acquired inventory | |||||||||||||||||||||||||
The unaudited pro forma financial information below summarizes the combined results of operations for Bio-Techne and the above acquisitions as though the companies were combined as of the beginning fiscal 2014. The pro forma financial information for all periods presented includes the purchase accounting effects resulting from these acquisitions. The pro forma financial information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at the beginning of fiscal 2014. | |||||||||||||||||||||||||
Quarter Ended | Nine | ||||||||||||||||||||||||
Months Ended | |||||||||||||||||||||||||
March | March | ||||||||||||||||||||||||
31, | 31, | ||||||||||||||||||||||||
201 | 201 | 201 | 201 | ||||||||||||||||||||||
5 | 4 | 5 | 4 | ||||||||||||||||||||||
Net sales | $ | 114,158 | $ | 114,018 | $ | 339,587 | $ | 321,441 | |||||||||||||||||
Net income | $ | 24,290 | $ | 27,460 | $ | 77,991 | $ | 69,985 |
Note_3_Debt_and_Other_Financin
Note 3 - Debt and Other Financing Arrangements | 9 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note |
3 | |
. Debt and Other Financing Arrangements: | |
On July 28, 2014, the Company entered into a revolving line-of-credit facility governed by a Credit Agreement (the Credit Agreement). The Credit Agreement provides for a revolving credit facility of $150 million, which can be increased by an additional $150 million subject to certain conditions. Borrowings under the Credit Agreement may be used for working capital and expenditures of the Company and its subsidiaries, including financing permitted acquisitions. Borrowings under the Credit Agreement for base rate loans bear interest at a variable rate equal to the greater of (i) the prime commercial rate, (ii) the per annum federal funds rate plus 0.5%, or (iii) LIBOR + 1.00% - 1.75% depending on the existing total leverage ratio of Debt to Earnings Before Interest, Taxes, Depreciation and Amortization (as defined in the Credit Agreement). The annualized fee for any unused portion of the credit facility is 15 basis points. | |
The Credit Agreement matures on July 31, 2019 and contains customary restrictive and financial covenants and customary events of default. As of March 31, 2015, the outstanding balance under the Credit Agreement was $144 million. |
Note_4_Segment_Information
Note 4 - Segment Information | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Segment Reporting Disclosure [Text Block] | Note | ||||||||||||||||
4 | |||||||||||||||||
. Segment Information: | |||||||||||||||||
The Company’s management evaluates segment operating performance based on operating income before certain charges to cost of sales and selling, general and administrative expenses, principally associated with acquisition accounting related to inventory, amortization of acquisition-related intangible assets and other acquisition-related expenses. Prior period segment results, which reported segment earnings before income taxes, have been changed to reflect performance based on operating income. | |||||||||||||||||
The Company has three reportable segments based on the nature of products; they are Biotechnology, Clinical Controls and Protein Platforms. Following is financial information relating to the Company’s reportable segments (in thousands): | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net sales: | |||||||||||||||||
Biotechnology | $ | 83,154 | $ | 80,134 | $ | 242,573 | $ | 223,882 | |||||||||
Clinical Controls | 15,368 | 15,421 | 43,161 | 41,358 | |||||||||||||
Protein Platforms | 15,669 | - | 49,061 | - | |||||||||||||
Intersegment | (33 | ) | - | (212 | ) | - | |||||||||||
Consolidated net sales | $ | 114,158 | $ | 95,555 | $ | 334,583 | $ | 265,240 | |||||||||
Segment operating income | |||||||||||||||||
Biotechnology | $ | 46,196 | $ | 46,142 | $ | 127,426 | $ | 125,265 | |||||||||
Clinical Controls | 4,610 | 4,909 | 12,963 | 12,614 | |||||||||||||
Protein Platforms | (1,710 | ) | - | 4,461 | 0 | ||||||||||||
Subtotal reportable segments | 49,096 | 51,051 | 144,850 | 137,879 | |||||||||||||
Cost recognized on sale of acquired inventory | (897 | ) | (1,177 | ) | (5,252 | ) | (4,312 | ) | |||||||||
Amortization of acquisition related intangible assets | (6,751 | ) | (2,605 | ) | (19,337 | ) | (7,380 | ) | |||||||||
Acquisition related expenses | (335 | ) | (395 | ) | (3,906 | ) | (927 | ) | |||||||||
Corporate general and administrative expenses | (1,687 | ) | (1,105 | ) | (7,133 | ) | (4,356 | ) | |||||||||
Consolidated operating income | $ | 39,426 | $ | 45,769 | $ | 109,222 | $ | 120,904 |
Note_5_Sharebased_Compensation
Note 5 - Share-based Compensation | 9 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note |
5 | |
. | |
Share-based Compensation | |
: | |
During the nine months ended March 31, 2015 and 2014, the Company granted 538,000 and 167,000 stock options at weighted average grant prices of $93.65 and $78.19 and weighted average fair values of $15.08 and $14.97, respectively. During the nine months ended March 31, 2015, the Company granted 34,000 restricted stock units at a weighted average fair value of $93.70. The Company did not grant any restricted stock units during the nine months ended March 31, 2014. During the nine months ended March 31, 2015 and 2014, the Company granted 9,000 and 8,000 shares of restricted stock at grant date fair values of $91.78 and $87.39, respectively. | |
Stock options for 141,000 and 84,000 shares of common stock with total intrinsic values of $3.4 million and $2.0 million were exercised during the nine months ended March 31, 2015 and 2014, respectively. | |
Stock-based compensation expense of $1.3 million and $0.7 million was included in selling, general and administrative expenses for the quarters ended March 31, 2015 and 2014, respectively. Stock–based compensation expense of $4.7 million and $2.6 million was included in selling, general and administrative expenses for the nine months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, there was $8.0 million of unrecognized compensation cost related to non-vested stock options, non-vested restricted stock units and non-vested restricted stock. The weighted average period over which the compensation cost is expected to be recognized is 1.3 years. |
Note_6_Other_Income_Net
Note 6 - Other Income, Net | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Other Income and Other Expense Disclosure [Text Block] | Note 6. Other Income, net: | ||||||||||||||||
The components of other income in the accompanying Statement of Earnings and Comprehensive Income are as follows: | |||||||||||||||||
Quarter | Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Interest expense | $ | (414 | ) | $ | - | $ | (1,156 | ) | $ | - | |||||||
Interest income | 158 | 529 | 507 | 1,641 | |||||||||||||
Gain on investment | - | - | 8,300 | - | |||||||||||||
Other non-operating expense, net | (411 | ) | (229 | ) | (953 | ) | (604 | ) | |||||||||
Other income, net | $ | (667 | ) | $ | 300 | $ | 6,698 | $ | 1,037 |
Note_7_Income_Taxes
Note 7 - Income Taxes | 9 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 7. |
Income Taxes: | |
Income tax expense for the quarters ended March 31, 2015 and 2014 were provided at rates of 37.3% and 31.3%, respectively. Income tax expense for the nine months ended March 31, 2015 and 2014 were provided at rates of 29.8% and 31.0%, respectively. Earnings before income taxes for the nine months ended March 31, 2015 included a non-taxable gain of $8.3 million on the Company’s previous investment in CyVek discussed above. Also included in income tax expense for the nine months ended March 31, 2015 was a credit for $0.9 million, compared to $0.5 million for the nine months ended March 31, 2014 due to the renewal of the U.S. credit for increased research and development expenditures. Income tax expense for the quarter and nine months ended March 31, 2015 was impacted by approximately $2 million due to the finalization of 2014 U.S. state tax returns in addition to a greater percentage of income being earned in tax jurisdictions with higher rates. |
Note_8_Earnings_Per_Share
Note 8 - Earnings Per Share | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Earnings Per Share [Text Block] | Note 8. | ||||||||||||||||
Earnings | |||||||||||||||||
P | |||||||||||||||||
er | |||||||||||||||||
S | |||||||||||||||||
hare: | |||||||||||||||||
Shares used in the earnings per share computations are as follows (in thousands): | |||||||||||||||||
Quarter | Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Weighted average common shares outstanding-basic | 37,138 | 36,911 | 37,078 | 36,878 | |||||||||||||
Dilutive effect of stock options and restricted stock units | 131 | 142 | 132 | 117 | |||||||||||||
Weighted average common shares outstanding-diluted | 37,269 | 37,053 | 37,210 | 36,995 | |||||||||||||
The dilutive effect of stock options and restricted stock units in the above table excludes all options for which the aggregate exercise proceeds exceeded the average market price for the period and all performance related options and restricted stock units. The number of potentially dilutive option shares and restricted stock units excluded from the calculation was 413,000 and 55,000 for the quarters ended March 31, 2015 and 2014, respectively. The number of potentially dilutive option shares and restricted stock unis excluded from the calculation was 479,000 and 115,000 for the nine months ended March 31, 2015 and 2014, respectively. |
Note_9_Accumulated_Other_Compr
Note 9 - Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Notes to Financial Statements | |||||||||||||
Comprehensive Income (Loss) Note [Text Block] | Note 9. | ||||||||||||
Accumulated Other Comprehensive Income: | |||||||||||||
Changes in accumulated other comprehensive income (loss), net of tax, for the nine months ended March 31, 2015 consists of (in thousands): | |||||||||||||
Unrealized Gains (Losses) on Available-for-Sale Investments | Foreign Currency Translation Adjustments | Total | |||||||||||
Beginning balance | $ | 3,074 | $ | (8,462 | ) | $ | (5,388 | ) | |||||
Other comprehensive income before reclassifications | 8,800 | (45,034 | ) | (36,234 | ) | ||||||||
Reclassifications from accumulated other comprehensive income | 0 | 0 | 0 | ||||||||||
Other comprehensive income | 8,800 | (45,034 | ) | (36,234 | ) | ||||||||
Ending balance | $ | 11,874 | $ | (53,506 | ) | $ | (41,622 | ) |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Available-For-Sale Investments: | ||||||||
The Company’s available-for-sale securities are carried at fair value using Level 1 and Level 2 inputs. The fair value of the Company’s available-for-sale investments at March 31, 2015 and June 30, 2014 were $53.5 million and $48.4 million, respectively. The amortized cost basis of the Company’s available-for-sale investments at March 31, 2015 and June 30, 2014 were $35.0 million and $40.7 million, respectively. | |||||||||
Included in the Company’s available-for-sale securities is an investment in the common stock and warrants of ChemoCentryx Inc. CCXI. The fair value of the Company’s investment was $48.0 million and $37.1 million at March 31, 2015 and June 30, 2014, respectively. The cost basis of the Company’s investment in CCXI was $29.5 million at both March 31, 2015 and June 30, 2014. | |||||||||
Inventory, Policy [Policy Text Block] | Inventories: | ||||||||
Inventories consist of (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 15,704 | $ | 9,852 | |||||
Finished goods | 35,341 | 28,995 | |||||||
Inventories, net | $ | 51,045 | $ | 38,847 | |||||
At March 31, 2015 and June 30, 2014, the Company had approximately $24 million and $30 million of excess protein, antibody and chemically-based inventory on hand which was not valued, respectively. The decline in the reserve balance is the result of the company disposing of excess inventory. | |||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment: | ||||||||
Property and equipment consist of (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Land | $ | 7,308 | $ | 7,468 | |||||
Buildings and improvements | 153,461 | 149,442 | |||||||
Machinery and equipment | 68,042 | 53,067 | |||||||
Property and equipment, cost | 228,811 | 209,977 | |||||||
Accumulated depreciation and amortization | (104,326 | ) | (92,857 | ) | |||||
Property and equipment, net | $ | 124,485 | $ | 117,120 | |||||
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets: | ||||||||
Intangible assets consist of (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Developed technology | $ | 107,659 | $ | 48,166 | |||||
Trade names | 63,336 | 24,280 | |||||||
Customer relationships | 166,460 | 59,240 | |||||||
Non-compete agreements | 3,295 | 3,109 | |||||||
Intangible assets | 340,750 | 134,795 | |||||||
Accumulated amortization | (43,437 | ) | (26,019 | ) | |||||
Intangible assets, net | $ | 297,313 | $ | 108,776 | |||||
Changes to the carrying amount of net intangible assets for the nine months ended March 31, 2015 consist of (in thousands): | |||||||||
Beginning balance | $ | 108,776 | |||||||
Acquisitions | 223,010 | ||||||||
Amortization expense | (19,338 | ) | |||||||
Currency translation | (15,135 | ) | |||||||
Ending balance | $ | 297,313 | |||||||
The estimated future amortization expense for intangible assets as of March 31, 2015 is as follows (in thousands): | |||||||||
Fiscal Year | |||||||||
2015 | $ | 6,779 | |||||||
2016 | 27,084 | ||||||||
2017 | 26,201 | ||||||||
2018 | 26,008 | ||||||||
2019 | 25,394 | ||||||||
Thereafter | 185,847 | ||||||||
$ | 297,313 | ||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | G | ||||||||
oodwill | |||||||||
: | |||||||||
Changes to the carrying amount of goodwill for the nine months ended March 31, 2015 consist of (in thousands): | |||||||||
Beginning balance | $ | 151,473 | |||||||
Acquisitions | 252,541 | ||||||||
Currency translation | (18,183 | ) | |||||||
Ending balance | $ | 385,831 |
Note_1_Basis_of_Presentation_a1
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Inventory, Current [Table Text Block] | March 31, | June 30, | |||||||
2015 | 2014 | ||||||||
Raw materials | $ | 15,704 | $ | 9,852 | |||||
Finished goods | 35,341 | 28,995 | |||||||
Inventories, net | $ | 51,045 | $ | 38,847 | |||||
Property, Plant and Equipment [Table Text Block] | March 31, | June 30, | |||||||
2015 | 2014 | ||||||||
Land | $ | 7,308 | $ | 7,468 | |||||
Buildings and improvements | 153,461 | 149,442 | |||||||
Machinery and equipment | 68,042 | 53,067 | |||||||
Property and equipment, cost | 228,811 | 209,977 | |||||||
Accumulated depreciation and amortization | (104,326 | ) | (92,857 | ) | |||||
Property and equipment, net | $ | 124,485 | $ | 117,120 | |||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | March 31, | June 30, | |||||||
2015 | 2014 | ||||||||
Developed technology | $ | 107,659 | $ | 48,166 | |||||
Trade names | 63,336 | 24,280 | |||||||
Customer relationships | 166,460 | 59,240 | |||||||
Non-compete agreements | 3,295 | 3,109 | |||||||
Intangible assets | 340,750 | 134,795 | |||||||
Accumulated amortization | (43,437 | ) | (26,019 | ) | |||||
Intangible assets, net | $ | 297,313 | $ | 108,776 | |||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Beginning balance | $ | 108,776 | ||||||
Acquisitions | 223,010 | ||||||||
Amortization expense | (19,338 | ) | |||||||
Currency translation | (15,135 | ) | |||||||
Ending balance | $ | 297,313 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year | ||||||||
2015 | $ | 6,779 | |||||||
2016 | 27,084 | ||||||||
2017 | 26,201 | ||||||||
2018 | 26,008 | ||||||||
2019 | 25,394 | ||||||||
Thereafter | 185,847 | ||||||||
$ | 297,313 | ||||||||
Schedule of Goodwill [Table Text Block] | Beginning balance | $ | 151,473 | ||||||
Acquisitions | 252,541 | ||||||||
Currency translation | (18,183 | ) | |||||||
Ending balance | $ | 385,831 |
Note_2_Acquisitions_Tables
Note 2 - Acquisitions (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Novus | ProteinSimple | CyVek | ||||||||||||||||||||||
Current assets | $ | 10,739 | $ | 20,273 | $ | 945 | |||||||||||||||||||
Equipment | 1,266 | 1,983 | 971 | ||||||||||||||||||||||
Other long-term assets | 40 | 554 | 19 | ||||||||||||||||||||||
Intangible Assets: | |||||||||||||||||||||||||
Developed technology | 5,010 | 40,500 | 20,200 | ||||||||||||||||||||||
Trade name | 5,300 | 35,800 | 100 | ||||||||||||||||||||||
Customer relationships | 14,400 | 100,600 | 900 | ||||||||||||||||||||||
Non-compete agreements | - | 200 | - | ||||||||||||||||||||||
Goodwill | 26,692 | 134,265 | 91,584 | ||||||||||||||||||||||
Total assets acquired | 63,447 | 334,175 | 114,719 | ||||||||||||||||||||||
Liabilities | 2,166 | 11,304 | 1,930 | ||||||||||||||||||||||
Deferred income taxes, net | 1,159 | 22,818 | (438 | ) | |||||||||||||||||||||
Net assets | $ | 60,122 | $ | 300,053 | $ | 113,227 | |||||||||||||||||||
Less fair-value of previous investment | - | - | 18,300 | ||||||||||||||||||||||
Net assets acquired | 60,122 | 300,053 | 94,927 | ||||||||||||||||||||||
Cash paid, net of cash acquired | $ | 60,122 | $ | 300,053 | 59,927 | ||||||||||||||||||||
Contingent consideration payable | - | - | 35,000 | ||||||||||||||||||||||
Net purchase price | $ | 60,122 | $ | 300,053 | $ | 94,927 | |||||||||||||||||||
Condensed Income Statement [Table Text Block] | Novus | ProteinSimple | CyVek | ||||||||||||||||||||||
Quarter | Nine Months | Quarter | Nine Months | Quarter | Nine Months | ||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||
31-Mar-15 | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | ||||||||||||||||||||
Net sales | $ | 4,845 | $ | 15,438 | $ | 20,414 | $ | 53,427 | $ | 192 | $ | 392 | |||||||||||||
Net (loss) income | (76 | ) | (430 | ) | (4,545 | ) | (5,753 | ) | (2,601 | ) | (3,624 | ) | |||||||||||||
Amortization expense | 474 | 1,423 | 2,951 | 8,325 | 374 | 625 | |||||||||||||||||||
Cost recognized on sale | 406 | 1,465 | - | 1,444 | - | 64 | |||||||||||||||||||
of acquired inventory | |||||||||||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | Quarter Ended | Nine | |||||||||||||||||||||||
Months Ended | |||||||||||||||||||||||||
March | March | ||||||||||||||||||||||||
31, | 31, | ||||||||||||||||||||||||
201 | 201 | 201 | 201 | ||||||||||||||||||||||
5 | 4 | 5 | 4 | ||||||||||||||||||||||
Net sales | $ | 114,158 | $ | 114,018 | $ | 339,587 | $ | 321,441 | |||||||||||||||||
Net income | $ | 24,290 | $ | 27,460 | $ | 77,991 | $ | 69,985 |
Note_4_Segment_Information_Tab
Note 4 - Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Quarter Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net sales: | |||||||||||||||||
Biotechnology | $ | 83,154 | $ | 80,134 | $ | 242,573 | $ | 223,882 | |||||||||
Clinical Controls | 15,368 | 15,421 | 43,161 | 41,358 | |||||||||||||
Protein Platforms | 15,669 | - | 49,061 | - | |||||||||||||
Intersegment | (33 | ) | - | (212 | ) | - | |||||||||||
Consolidated net sales | $ | 114,158 | $ | 95,555 | $ | 334,583 | $ | 265,240 | |||||||||
Segment operating income | |||||||||||||||||
Biotechnology | $ | 46,196 | $ | 46,142 | $ | 127,426 | $ | 125,265 | |||||||||
Clinical Controls | 4,610 | 4,909 | 12,963 | 12,614 | |||||||||||||
Protein Platforms | (1,710 | ) | - | 4,461 | 0 | ||||||||||||
Subtotal reportable segments | 49,096 | 51,051 | 144,850 | 137,879 | |||||||||||||
Cost recognized on sale of acquired inventory | (897 | ) | (1,177 | ) | (5,252 | ) | (4,312 | ) | |||||||||
Amortization of acquisition related intangible assets | (6,751 | ) | (2,605 | ) | (19,337 | ) | (7,380 | ) | |||||||||
Acquisition related expenses | (335 | ) | (395 | ) | (3,906 | ) | (927 | ) | |||||||||
Corporate general and administrative expenses | (1,687 | ) | (1,105 | ) | (7,133 | ) | (4,356 | ) | |||||||||
Consolidated operating income | $ | 39,426 | $ | 45,769 | $ | 109,222 | $ | 120,904 |
Note_6_Other_Income_Net_Tables
Note 6 - Other Income, Net (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Quarter | Nine Months | |||||||||||||||
Ended | Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Interest expense | $ | (414 | ) | $ | - | $ | (1,156 | ) | $ | - | |||||||
Interest income | 158 | 529 | 507 | 1,641 | |||||||||||||
Gain on investment | - | - | 8,300 | - | |||||||||||||
Other non-operating expense, net | (411 | ) | (229 | ) | (953 | ) | (604 | ) | |||||||||
Other income, net | $ | (667 | ) | $ | 300 | $ | 6,698 | $ | 1,037 |
Note_8_Earnings_Per_Share_Tabl
Note 8 - Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Quarter | Nine Months | |||||||||||||||
Ended | Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Weighted average common shares outstanding-basic | 37,138 | 36,911 | 37,078 | 36,878 | |||||||||||||
Dilutive effect of stock options and restricted stock units | 131 | 142 | 132 | 117 | |||||||||||||
Weighted average common shares outstanding-diluted | 37,269 | 37,053 | 37,210 | 36,995 |
Note_9_Accumulated_Other_Compr1
Note 9 - Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Notes Tables | |||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Unrealized Gains (Losses) on Available-for-Sale Investments | Foreign Currency Translation Adjustments | Total | ||||||||||
Beginning balance | $ | 3,074 | $ | (8,462 | ) | $ | (5,388 | ) | |||||
Other comprehensive income before reclassifications | 8,800 | (45,034 | ) | (36,234 | ) | ||||||||
Reclassifications from accumulated other comprehensive income | 0 | 0 | 0 | ||||||||||
Other comprehensive income | 8,800 | (45,034 | ) | (36,234 | ) | ||||||||
Ending balance | $ | 11,874 | $ | (53,506 | ) | $ | (41,622 | ) |
Note_1_Basis_of_Presentation_a2
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Amortized Cost Basis | $35 | $40.70 |
Available-for-sale Securities | 53.5 | 48.4 |
Inventory Valuation Reserves | 24 | 30 |
Chemo Centryx, Inc. [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 29.5 | 29.5 |
Available-for-sale Securities | $48 | $37.10 |
Note_1_Basis_of_Presentation_a3
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies - Inventories (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Raw materials | $15,704 | $9,852 |
Finished goods | 35,341 | 28,995 |
Inventories, net | $51,045 | $38,847 |
Note_1_Basis_of_Presentation_a4
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies - Property and Equipment (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Property and equipment, cost | $228,811 | $209,977 |
Accumulated depreciation and amortization | -104,326 | -92,857 |
Property and Equipment | 124,485 | 117,120 |
Land [Member] | ||
Property and equipment, cost | 7,308 | 7,468 |
Building and Building Improvements [Member] | ||
Property and equipment, cost | 153,461 | 149,442 |
Machinery and Equipment [Member] | ||
Property and equipment, cost | $68,042 | $53,067 |
Note_1_Basis_of_Presentation_a5
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies - Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Intangible Assets, Gross | $340,750 | $134,795 |
Accumulated amortization | -43,437 | -26,019 |
Intangible assets, net | 297,313 | 108,776 |
Developed Technology Rights [Member] | ||
Intangible Assets, Gross | 107,659 | 48,166 |
Trade Names [Member] | ||
Intangible Assets, Gross | 63,336 | 24,280 |
Customer Relationships [Member] | ||
Intangible Assets, Gross | 166,460 | 59,240 |
Noncompete Agreements [Member] | ||
Intangible Assets, Gross | $3,295 | $3,109 |
Note_1_Basis_of_Presentation_a6
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies - Changes to Carrying Amount of Net Intangible Assets (Details) (USD $) | 9 Months Ended |
Mar. 31, 2015 | |
Beginning balance | $108,776,000 |
Acquisitions (net of cash acquired) | 223,010,000 |
Amortization expense | -19,338,000 |
Currency translation | -15,135,000 |
Ending balance | $297,313,000 |
Note_1_Basis_of_Presentation_a7
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies - Estimated Future Amortization Expense for Intangible Assets (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
2015 | $6,779 |
2016 | 27,084 |
2017 | 26,201 |
2018 | 26,008 |
2019 | 25,394 |
Thereafter | 185,847 |
$297,313 |
Note_1_Basis_of_Presentation_a8
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies - Changes in Carrying Amount of Goodwill (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Beginning balance | $151,473 |
Acquisitions (net of cash acquired) | 252,541 |
Currency translation | -18,183 |
Ending balance | $385,831 |
Note_2_Acquisitions_Details_Te
Note 2 - Acquisitions (Details Textual) (USD $) | 9 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Nov. 03, 2014 | Jun. 30, 2014 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $10,446,000 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 8,300,000 | ||
CyVek, Inc. [Member] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 10,000,000 | ||
Noncontrolling Interest, Ownership Percentage by Parent | 19.90% | ||
Payments to Acquire Businesses, Gross | 62,000,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 35,000,000 | 35,000,000 | |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Contingent Liability, Percentage | 50.00% | ||
Business Combination, Milestone Payment Threshold | 100,000,000 | ||
Business Combination, Liabilities Arising from Contingencies, Amount Recognized | 35,000,000 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $8,300,000 | ||
Developed Technology Rights [Member] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years 109 days | ||
Trade Names [Member] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 19 years 182 days | ||
Customer Relationships [Member] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years 292 days | ||
Noncompete Agreements [Member] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years |
Note_2_Acquisitions_Preliminar
Note 2 - Acquisitions - Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed Pending Final Valuation of Intangible Assets (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Intangible Assets: | |
Goodwill | $385,831 |
Cash paid, net of cash acquired | 420,102 |
Novus Holdings, LLC [Member] | Developed Technology Rights [Member] | |
Intangible Assets: | |
Intangible assets | 5,010 |
Novus Holdings, LLC [Member] | Trade Names [Member] | |
Intangible Assets: | |
Intangible assets | 5,300 |
Novus Holdings, LLC [Member] | Customer Relationships [Member] | |
Intangible Assets: | |
Intangible assets | 14,400 |
Novus Holdings, LLC [Member] | |
Current assets | 10,739 |
Equipment | 1,266 |
Other long-term assets | 40 |
Intangible Assets: | |
Goodwill | 26,692 |
Total assets acquired | 63,447 |
Liabilities | 2,166 |
Deferred income taxes, net | 1,159 |
Net assets | 60,122 |
Net assets acquired | 60,122 |
Cash paid, net of cash acquired | 60,122 |
Protein Simple [Member] | Developed Technology Rights [Member] | |
Intangible Assets: | |
Intangible assets | 40,500 |
Protein Simple [Member] | Trade Names [Member] | |
Intangible Assets: | |
Intangible assets | 35,800 |
Protein Simple [Member] | Customer Relationships [Member] | |
Intangible Assets: | |
Intangible assets | 100,600 |
Protein Simple [Member] | Noncompete Agreements [Member] | |
Intangible Assets: | |
Intangible assets | 200 |
Protein Simple [Member] | |
Current assets | 20,273 |
Equipment | 1,983 |
Other long-term assets | 554 |
Intangible Assets: | |
Goodwill | 134,265 |
Total assets acquired | 334,175 |
Liabilities | 11,304 |
Deferred income taxes, net | 22,818 |
Net assets | 300,053 |
Net assets acquired | 300,053 |
Cash paid, net of cash acquired | 300,053 |
CyVek, Inc. [Member] | Developed Technology Rights [Member] | |
Intangible Assets: | |
Intangible assets | 20,200 |
CyVek, Inc. [Member] | Trade Names [Member] | |
Intangible Assets: | |
Intangible assets | 100 |
CyVek, Inc. [Member] | Customer Relationships [Member] | |
Intangible Assets: | |
Intangible assets | 900 |
CyVek, Inc. [Member] | |
Current assets | 945 |
Equipment | 971 |
Other long-term assets | 19 |
Intangible Assets: | |
Goodwill | 91,584 |
Total assets acquired | 114,719 |
Liabilities | 1,930 |
Deferred income taxes, net | -438 |
Net assets | 113,227 |
Less fair-value of previous investment | 18,300 |
Net assets acquired | 94,927 |
Cash paid, net of cash acquired | 59,927 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | $35,000 |
Note_2_Acquisitions_Condensed_
Note 2 - Acquisitions - Condensed Consolidated Financial Statements by Acquisition (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | |
Net sales | $114,158,000 | $334,583,000 |
Net earnings | 24,290,000 | 81,406,000 |
Amortization expense | 6,751,000 | 19,338,000 |
Cost recognized on sale of acquired inventory | 897,000 | 5,252,000 |
Novus Holdings, LLC [Member] | ||
Net sales | 4,845,000 | 15,438,000 |
Net earnings | -76,000 | -430,000 |
Amortization expense | 474,000 | 1,423,000 |
Cost recognized on sale of acquired inventory | 406,000 | 1,465,000 |
Protein Simple [Member] | ||
Net sales | 20,414,000 | 53,427,000 |
Net earnings | -4,545,000 | -5,753,000 |
Amortization expense | 2,951,000 | 8,325,000 |
Cost recognized on sale of acquired inventory | 1,444,000 | |
CyVek, Inc. [Member] | ||
Net sales | 192,000 | 392,000 |
Net earnings | -2,601,000 | -3,624,000 |
Amortization expense | 374,000 | 625,000 |
Cost recognized on sale of acquired inventory | $64,000 |
Note_2_Unaudited_Pro_Forma_Inf
Note 2 - Unaudited Pro Forma Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Net sales | $114,158 | $114,018 | $339,587 | $321,441 |
Net income | $24,290 | $27,460 | $77,991 | $69,985 |
Note_3_Debt_and_Other_Financin1
Note 3 - Debt and Other Financing Arrangements (Details Textual) (Revolving Credit Facility [Member], USD $) | 0 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Jul. 28, 2014 | Mar. 31, 2015 |
Line of Credit Facility, Expiration Date | 31-Jul-19 | |
Line of Credit Facility, Current Borrowing Capacity | $150 | |
Line of Credit Facility, Additional Borrowing Capacity | 150 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |
Long-term Line of Credit | $144 | |
Federal Funds Effective Swap Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Note_4_Segment_Information_Det
Note 4 - Segment Information (Details Textual) | 9 Months Ended |
Mar. 31, 2015 | |
Number of Reportable Segments | 3 |
Note_4_Segment_Information_Fin
Note 4 - Segment Information - Financial Information Relating to Reportable Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net sales: | ||||
Net sales | $114,158,000 | $95,555,000 | $334,583,000 | $265,240,000 |
Segment operating income | ||||
Operating income | 39,426,000 | 45,769,000 | 109,222,000 | 120,904,000 |
Cost recognized on sale of acquired inventory | -897,000 | -1,177,000 | -5,252,000 | -4,312,000 |
Amortization expense | -6,751,000 | -2,605,000 | -19,338,000 | -7,380,000 |
Acquisition related expenses | -335,000 | -395,000 | -3,906,000 | -927,000 |
Corporate general and administrative expenses | -29,089,000 | -14,666,000 | -88,927,000 | -43,613,000 |
Consolidated operating income | 39,426,000 | 45,769,000 | 109,222,000 | 120,904,000 |
Biotechnology [Member] | Operating Segments [Member] | ||||
Net sales: | ||||
Net sales | 83,154,000 | 80,134,000 | 242,573,000 | 223,882,000 |
Segment operating income | ||||
Operating income | 46,196,000 | 46,142,000 | 127,426,000 | 125,265,000 |
Consolidated operating income | 46,196,000 | 46,142,000 | 127,426,000 | 125,265,000 |
Clinical Controls [Member] | Operating Segments [Member] | ||||
Net sales: | ||||
Net sales | 15,368,000 | 15,421,000 | 43,161,000 | 41,358,000 |
Segment operating income | ||||
Operating income | 4,610,000 | 4,909,000 | 12,963,000 | 12,614,000 |
Consolidated operating income | 4,610,000 | 4,909,000 | 12,963,000 | 12,614,000 |
Protein Platforms [Member] | Operating Segments [Member] | ||||
Net sales: | ||||
Net sales | 15,669,000 | 49,061,000 | ||
Segment operating income | ||||
Operating income | -1,710,000 | 4,461,000 | 0 | |
Consolidated operating income | -1,710,000 | 4,461,000 | 0 | |
Operating Segments [Member] | ||||
Segment operating income | ||||
Operating income | 49,096,000 | 51,051,000 | 144,850,000 | 137,879,000 |
Consolidated operating income | 49,096,000 | 51,051,000 | 144,850,000 | 137,879,000 |
Intersegment Eliminations [Member] | ||||
Net sales: | ||||
Net sales | -33,000 | -212,000 | ||
Corporate, Non-Segment [Member] | ||||
Segment operating income | ||||
Corporate general and administrative expenses | ($1,687,000) | ($1,105,000) | ($7,133,000) | ($4,356,000) |
Note_5_Sharebased_Compensation1
Note 5 - Share-based Compensation (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 538,000 | 167,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $93.65 | $78.19 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $15.08 | $14.97 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 141,000 | 84,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $3.40 | $2 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 8 | 8 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 109 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 34,000 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $93.70 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,000 | 8,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $91.78 | $87.39 | ||
Selling, General and Administrative Expenses [Member] | ||||
Allocated Share-based Compensation Expense | $1.30 | $0.70 | $4.70 | $2.60 |
Note_6_Other_Income_Net_Schedu
Note 6 - Other Income, Net - Schedule of Components of Other (Expense) Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Interest expense | ($414) | ($1,156) | ||
Interest income | 158 | 529 | 507 | 1,641 |
Gain on investment | 8,300 | |||
Other non-operating expense, net | -411 | -229 | -953 | -604 |
Other income, net | ($667) | $300 | $6,698 | $1,037 |
Note_7_Income_Taxes_Details_Te
Note 7 - Income Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Increase (Decrease) in Income Taxes | $2,000,000 | $2,000,000 | ||
Effective Income Tax Rate Reconciliation, Percent | 37.30% | 31.30% | 29.80% | 31.00% |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 8,300,000 | |||
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | 900,000 | 500,000 | ||
CyVek, Inc. [Member] | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $8,300,000 |
Note_8_Earnings_Per_Share_Deta
Note 8 - Earnings Per Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 413,000 | 55,000 | 479,000 | 115,000 |
Note_8_Earnings_Per_Share_Shar
Note 8 - Earnings Per Share - Shares Used in the Earnings Per Share Computations (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Weighted average common shares outstanding-basic (in shares) | 37,138 | 36,911 | 37,078 | 36,878 |
Dilutive effect of stock options and restricted stock units (in shares) | 131 | 142 | 132 | 117 |
Weighted average common shares outstanding-diluted (in shares) | 37,269 | 37,053 | 37,210 | 36,995 |
Note_9_Accumulated_Other_Compr2
Note 9 - Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | |
Beginning balance | ($5,388,000) | |
Other comprehensive income before reclassifications | -36,234,000 | |
Reclassifications from accumulated other comprehensive income | 0 | |
Other comprehensive income | -17,145,000 | -36,234,000 |
Ending balance | -41,622,000 | -41,622,000 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Beginning balance | 3,074,000 | |
Other comprehensive income before reclassifications | 8,800,000 | |
Reclassifications from accumulated other comprehensive income | 0 | |
Other comprehensive income | 8,800,000 | |
Ending balance | 11,874,000 | 11,874,000 |
Accumulated Translation Adjustment [Member] | ||
Beginning balance | -8,462,000 | |
Other comprehensive income before reclassifications | -45,034,000 | |
Reclassifications from accumulated other comprehensive income | 0 | |
Other comprehensive income | -45,034,000 | |
Ending balance | ($53,506,000) | ($53,506,000) |