☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Common Shares, No Par Value | VIVO | The NASDAQ Stock Market LLC | ||
(NASDAQ Global Select Market) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
☐ | ||||||
Emerging growth company | ||||||
☐ | ||||||
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Type of Segment Information | Location within 10-K | ||
Physical locations and activities | Item 2. “Properties” | ||
Revenue by geographic region | Item 7. “Management’s Discussion and Analysis of Financial Condition & Results of Operations” (hereafter “MD&A”) | ||
Financial information |
Meridian Employees | 2021 | |||
Salaried workforce | 543 | |||
Managers and above | 159 | |||
Part-time employees | 27 | |||
Average age | 43 | |||
Average length of service in years | 7 | |||
Employee turnover rate (voluntary) | 19 | % | ||
Fiscal 2021 net revenues per employee (in thousands) | $ | 415 |
Equal Employment Opportunity Table (by number of employees) U.S. Employee Diversity as of September 30, 2021 | ||||||||||||||||||||||||||||||
Job category | Gender | White | Black/African American | Hispanic/Latino | Asian | American Indian/Alaskan Native | Two or more races | Total | ||||||||||||||||||||||
Executive/senior level officials and managers | Male | 12 | — | — | — | — | — | 12 | ||||||||||||||||||||||
Female | 3 | — | 1 | — | — | — | 4 | |||||||||||||||||||||||
First/mid-level officials and managers | Male | 41 | 4 | 2 | 3 | — | — | 50 | ||||||||||||||||||||||
Female | 36 | 4 | — | 4 | — | 1 | 45 | |||||||||||||||||||||||
Professionals | Male | 60 | 4 | 4 | 5 | — | 1 | 74 | ||||||||||||||||||||||
Female | 71 | 9 | 5 | 9 | — | 2 | 96 | |||||||||||||||||||||||
All other | Male | 59 | 11 | 8 | 5 | — | 1 | 84 | ||||||||||||||||||||||
Female | 83 | 18 | 7 | 8 | — | 2 | 118 | |||||||||||||||||||||||
Total | Male | 172 | 19 | 14 | 13 | — | 2 | 220 | ||||||||||||||||||||||
Female | 193 | 31 | 13 | 21 | — | 5 | 263 |
1. | The six companies included in the Company’s first customized peer group (“2020 Peer Group”) are: Bio-Rad Laboratories, Inc., bioMerieux S.A., Myriad Genetics, Inc., OraSure Technologies, Inc., Quidel Corporation, and Trinity Biotech Plc. |
2. | The ten companies included in the Company’s second customized peer group (“2021 Peer Group”) are: Bio-Rad Laboratories, Inc.,Bio-Techne Corporation, bioMerieux S.A., DiaSorin S.p.a., Hologic, Inc., Myriad Genetics, Inc., OraSure Technologies, Inc., Qiagen N.V., Quidel Corporation, and Trinity Biotech Plc. |
Income Statement Information (Amounts in thousands, except per share data) | ||||||||||||||||||||
For the Year Ended September 30, | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
Net revenues | $ | 201,014 | $ | 213,571 | $ | 200,771 | $ | 196,082 | $ | 194,830 | ||||||||||
Gross profit | 118,325 | 130,697 | 124,292 | 127,212 | 121,882 | |||||||||||||||
Operating income | 32,699 | 31,584 | 37,382 | 51,378 | 56,060 | |||||||||||||||
Net earnings | 24,382 | 23,849 | 21,557 | 32,229 | 35,540 | |||||||||||||||
Basic earnings per share | $ | 0.57 | $ | 0.56 | $ | 0.51 | $ | 0.77 | $ | 0.85 | ||||||||||
Diluted earnings per share | $ | 0.57 | $ | 0.56 | $ | 0.51 | $ | 0.76 | $ | 0.85 | ||||||||||
Cash dividends declared per share | $ | 0.250 | $ | 0.500 | $ | 0.575 | $ | 0.800 | $ | 0.800 | ||||||||||
Book value per share | $ | 4.47 | $ | 4.14 | $ | 4.02 | $ | 3.95 | $ | 3.96 | ||||||||||
Balance Sheet Information | ||||||||||||||||||||
As of September 30, | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
Current assets | $ | 144,761 | $ | 139,053 | $ | 133,875 | $ | 126,791 | $ | 119,422 | ||||||||||
Current liabilities | 20,914 | 24,173 | 22,887 | 22,571 | 15,251 | |||||||||||||||
Total assets | 325,478 | 251,377 | 249,777 | 252,028 | 183,282 | |||||||||||||||
Long-term debt obligations | 75,824 | 50,180 | 54,647 | 58,360 | — | |||||||||||||||
Shareholders’ equity | 190,967 | 175,418 | 169,585 | 166,472 | 165,873 |
2021 | 2020 | 2021 vs. 2020 Inc (Dec) | ||||||||||
Gross Profit | $ | 201,148 | $ | 156,248 | 29 | % | ||||||
Gross Profit Margin | 63 | % | 62 | % | 1 point |
2019 | 2018 | 2017 | 2019 vs. 2018 Inc (Dec) | 2018 vs. 2017 Inc (Dec) | ||||||||||||||||
Gross Profit | $ | 118,325 | $ | 130,697 | $ | 124,292 | (9 | %) | 5 | % | ||||||||||
Gross Profit Margin | 59 | % | 61 | % | 62 | % | -2 points | -1 point |
Research & Development | Selling & Marketing | General & Administrative | Other (1)(2) | Total Operating Expenses | ||||||||||||||||
Fiscal 2020: | ||||||||||||||||||||
Diagnostics | $ | 21,454 | $ | 21,172 | $ | 23,233 | $ | (1,916 | ) | $ | 63,943 | |||||||||
Life Science | 2,275 | 5,314 | 11,755 | 200 | 19,544 | |||||||||||||||
Corporate | — | — | 9,357 | 2,080 | 11,437 | |||||||||||||||
Total 2020 Expenses | $ | 23,729 | $ | 26,486 | $ | 44,345 | $ | 364 | $ | 94,924 | ||||||||||
Fiscal 2021: | ||||||||||||||||||||
Diagnostics | $ | 21,406 | $ | 21,430 | $ | 24,915 | $ | 5,079 | $ | 72,830 | ||||||||||
Life Science | 2,505 | 5,350 | 13,265 | — | 21,120 | |||||||||||||||
Corporate | — | — | 11,361 | 2,803 | 14,164 | |||||||||||||||
Total 2021 Expenses | $ | 23,911 | $ | 26,780 | $ | 49,541 | $ | 7,882 | $ | 108,114 | ||||||||||
(1) | Diagnostics segment fiscal 2020 reflects negative expense amount due to $6,293 adjustment to fair value of the acquisition consideration related to GenePOC. |
(2) | LeadCare product recall expenses are included within the Diagnostics segment’s fiscal 2021 Other expenses. |
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2017: | ||||||||||||||||||||
Diagnostics | $ | 13,433 | $ | 22,942 | $ | 13,268 | $ | 6,628 | $ | 56,271 | ||||||||||
Life Science | 2,603 | 9,446 | 7,493 | — | 19,542 | |||||||||||||||
Corporate | — | — | 10,335 | 762 | 11,097 | |||||||||||||||
Total 2017 Expenses | $ | 16,036 | $ | 32,388 | $ | 31,096 | $ | 7,390 | $ | 86,910 | ||||||||||
Fiscal 2018: | ||||||||||||||||||||
Diagnostics | $ | 13,742 | $ | 25,002 | $ | 19,397 | $ | 4,032 | $ | 62,173 | ||||||||||
Life Science | 3,047 | 9,466 | 8,111 | 1,240 | 21,864 | |||||||||||||||
Corporate | — | — | 7,297 | 7,779 | 15,076 | |||||||||||||||
Total 2018 Expenses | $ | 16,789 | $ | 34,468 | $ | 34,805 | $ | 13,051 | $ | 99,113 | ||||||||||
Fiscal 2019: | ||||||||||||||||||||
Diagnostics | $ | 14,711 | $ | 23,058 | $ | 19,191 | $ | 3,446 | $ | 60,406 | ||||||||||
Life Science | 3,237 | 5,388 | 6,034 | 188 | 14,847 | |||||||||||||||
Corporate | — | — | 7,777 | 2,596 | 10,373 | |||||||||||||||
Total 2019 Expenses | $ | 17,948 | $ | 28,446 | $ | 33,002 | $ | 6,230 | $ | 85,626 | ||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
2017 Expenses | $ | 16,036 | $ | 32,388 | $ | 31,096 | $ | 7,390 | $ | 86,910 | ||||||||||
% of Revenues | 8 | % | 16 | % | 15 | % | 4 | % | 43 | % | ||||||||||
Fiscal 2018 Increases (Decreases): | ||||||||||||||||||||
Diagnostics | 309 | 2,060 | 6,129 | (2,596 | ) | 5,902 | ||||||||||||||
Life Science | 444 | 20 | 618 | 1,240 | 2,322 | |||||||||||||||
Corporate | — | — | (3,038 | ) | 7,017 | 3,979 | ||||||||||||||
2018 Expenses | $ | 16,789 | $ | 34,468 | $ | 34,805 | $ | 13,051 | $ | 99,113 | ||||||||||
% of Revenues | 8 | % | 16 | % | 16 | % | 6 | % | 46 | % | ||||||||||
% Increase | 5 | % | 6 | % | 12 | % | 77 | % | 14 | % | ||||||||||
Fiscal 2019 Increases (Decreases): | ||||||||||||||||||||
Diagnostics | 969 | (1,944 | ) | (206 | ) | (586 | ) | (1,767 | ) | |||||||||||
Life Science | 190 | (4,078 | ) | (2,077 | ) | (1,052 | ) | (7,017 | ) | |||||||||||
Corporate | — | — | 480 | (5,183 | ) | (4,703 | ) | |||||||||||||
2019 Expenses | $ | 17,948 | $ | 28,446 | $ | 33,002 | $ | 6,230 | $ | 85,626 | ||||||||||
% of Revenues | 9 | % | 14 | % | 16 | % | 3 | % | 43 | % | ||||||||||
% Increase (Decrease) | 7 | % | (17 | %) | (5 | %) | (52 | %) | (14 | %) |
(i) | payment of consideration holdback and contingent consideration settlement related to the fiscal 2019 GenePOC acquisition ($25,000); |
(ii) | acquisition of the BreathTek business, net of $1,000 holdback ($18,585); |
(iii) | funding of capital expenditures, which were primarily comprised of manufacturing expansion related to Revogene, net of $1,500 RADx grant monies received ($16,812); and |
(iv) | net paydown on revolving credit facility and Israeli government grant obligations ($8,824 and $5,297, respectively). |
Total | Less than 1 Year | 1-3 Years | 4-5 Years | More than 5 Years | ||||||||||||||||
Operating leases (1) | $ | 6,567 | $ | 1,528 | $ | 3,711 | $ | 1,145 | $ | 183 | ||||||||||
Purchase obligations (2) | 14,995 | 14,203 | 737 | 55 | — | |||||||||||||||
Acquisition price holdback and contingent consideration (3) | 75,000 | — | 75,000 | — | — | |||||||||||||||
Uncertain income tax positions liability and interest (4) | 511 | 511 | — | — | — | |||||||||||||||
Total | $ | 97,073 | $ | 16,242 | $ | 79,448 | $ | 1,200 | $ | 183 | ||||||||||
Total | Less than 1 Year | 1-3 Years | 4-5 Years | More than 5 Years | ||||||||||||||||
Operating leases (1) | $ | 6,239 | $ | 2,194 | $ | 2,736 | $ | 1,244 | $ | 65 | ||||||||||
Purchase obligations (2) | 51,295 | 49,537 | 1,554 | 204 | — | |||||||||||||||
Acquisition price holdback (3) | 1,000 | — | 1,000 | — | — | |||||||||||||||
Uncertain income tax positions liability and interest (4) | 870 | 870 | — | — | — | |||||||||||||||
Total | $ | 59,404 | $ | 52,601 | $ | 5,290 | $ | 1,448 | $ | 65 | ||||||||||
(1) | Meridian and its subsidiaries are parties to a number of operating lease agreements around the world, the majority of which relate to office and warehouse building leases expiring at various dates. |
(2) | Purchase obligations relate primarily to outstanding purchase orders for machinery and equipment, inventory, including instruments, service items, and research and development activities. These contractual commitments are not in excess of expected production requirements over the next twelve months. |
(3) | Pursuant to the purchase agreement related to the |
(4) | Due to inherent uncertainties in the timing of settlement of tax positions, we are unable to estimate the timing of the effective settlement of these obligations. |
Accounting Policy | Location Within Consolidated Financial Statements | Examples of Key Estimate Assumptions | ||||
Note | ||||||
Note | ||||||
Note 1(l) and Note | Uncertain |
/s/ Jack Kenny | /s/ Bryan T. Baldasare | |||
Jack Kenny | Bryan T. Baldasare | |||
Chief Executive Officer | Executive Vice President and | |||
November | Chief Financial Officer | |||
November |
Evaluation of Goodwill Impairment for the Diagnostics Reporting Unit | ||
Description of the Matter | At September 30, 2021, the Company has recorded goodwill of $94.9 million within the Diagnostics reporting unit (within the Diagnostics reportable segment). As discussed in Note 1 to the consolidated financial statements, goodwill is tested for impairment annually at the beginning of the fourth quarter, or more frequently if indicators of potential impairment exist. Auditing management’s annual goodwill impairment test related to Diagnostics reporting unit was especially challenging due to the complexity of forecasting the long-term cash flows of the Diagnostics reporting unit and the estimation uncertainty of certain assumptions included within such forecasts. The estimation uncertainty was primarily due to the sensitivity of the Diagnostic reporting unit’s fair value to changes in the significant assumptions used in the income approach, such as forecasted net revenues, earnings before interest, taxes, depreciation and amortization (EBITDA) margins, long-term growth rates, and discount rates. These significant assumptions require a high degree of estimation and judgment based on an evaluation of historical performance, current industry and macroeconomic conditions. |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s annual goodwill impairment process, including controls over management’s review of the significant assumptions described above and controls over management’s review of its financial forecasts and carrying value of the Diagnostics reporting unit. To test the estimated fair value of the Diagnostics reporting unit, we performed audit procedures that included, among others, involving an internal valuation specialist to assist in our evaluation of the methodologies and certain significant assumptions used by the Company. We assessed the reasonableness of the Company’s assumptions around forecasted net revenues, EBITDA margins, long-term growth rates, and discount rates by comparing those assumptions to recent historical performance, current economic and industry trends, and financial forecasts. We also assessed the reasonableness of estimates included in the Company’s Diagnostics reporting unit financial forecast by evaluating how such assumptions compared to economic, industry, and peer expectations. We evaluated management’s historical accuracy of forecasting Diagnostics reporting unit net revenues and EBITDA margins by comparing past forecasts to subsequent actual activity. We performed various sensitivity analyses around these significant assumptions to understand the impact on the fair value calculation. |
For the Year Ended September 30, | 2019 | 2018 | 2017 | |||||||||
Net Revenues | $ | 201,014 | $ | 213,571 | $ | 200,771 | ||||||
Cost of Sales | 82,689 | 82,874 | 76,479 | |||||||||
Gross Profit | 118,325 | 130,697 | 124,292 | |||||||||
Operating Expenses: | ||||||||||||
Research and development | 17,948 | 16,789 | 16,036 | |||||||||
Selling and marketing | 28,446 | 34,468 | 32,388 | |||||||||
General and administrative | 33,002 | 34,805 | 31,096 | |||||||||
Acquisition-related costs | 1,808 | — | — | |||||||||
Restructuring costs | 2,839 | 8,706 | 134 | |||||||||
Selected legal costs | 1,583 | 4,345 | 628 | |||||||||
Goodwill impairment charge | — | — | 6,628 | |||||||||
Total operating expenses | 85,626 | 99,113 | 86,910 | |||||||||
Operating Income | 32,699 | 31,584 | 37,382 | |||||||||
Other Income (Expense): | ||||||||||||
Interest income | 681 | 418 | 171 | |||||||||
Interest expense | (1,945 | ) | (1,520 | ) | (1,642 | ) | ||||||
Other, net | 122 | (102 | ) | 518 | ||||||||
Total other expense | (1,142 | ) | (1,204 | ) | (953 | ) | ||||||
Earnings Before Income Taxes | 31,557 | 30,380 | 36,429 | |||||||||
Income Tax Provision | 7,175 | 6,531 | 14,872 | |||||||||
Net Earnings | $ | 24,382 | $ | 23,849 | $ | 21,557 | ||||||
Earnings Per Share Data: | ||||||||||||
Basic earnings per common share | $ | 0.57 | $ | 0.56 | $ | 0.51 | ||||||
Diluted earnings per common share | $ | 0.57 | $ | 0.56 | $ | 0.51 | ||||||
Common shares used for basic earnings per common share | 42,571 | 42,325 | 42,188 | |||||||||
Effect of dilutive stock options and restricted share units | 328 | 429 | 383 | |||||||||
Common shares used for diluted earnings per common share | 42,899 | 42,754 | 42,571 | |||||||||
Dividends declared per common share | $ | 0.250 | $ | 0.500 | $ | 0.575 | ||||||
Anti-dilutive Securities: | ||||||||||||
Common share options and restricted share units | 1,129 | 1,007 | 873 |
For the Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
Net Revenues | $ | 317,896 | $ | 253,667 | $ | 201,014 | ||||||
Cost of Sales | 116,748 | 97,419 | 82,286 | |||||||||
Gross Profit | 201,148 | 156,248 | 118,728 | |||||||||
Operating Expenses: | ||||||||||||
Research and development | 23,911 | 23,729 | 17,760 | |||||||||
Selling and marketing | 26,780 | 26,486 | 27,995 | |||||||||
General and administrative | 49,541 | 44,345 | 34,044 | |||||||||
Product recall costs | 5,596 | 0 | 0 | |||||||||
Selected legal costs | 2,803 | 2,080 | 1,583 | |||||||||
Acquisition-related costs | 392 | 3,890 | 1,808 | |||||||||
Change in fair value of acquisition consideration and settlement | (909 | ) | (6,293 | ) | 0 | |||||||
Restructuring costs | 0 | 687 | 2,839 | |||||||||
Total Operating Expenses | 108,114 | 94,924 | 86,029 | |||||||||
Operating Income | 93,034 | 61,324 | 32,699 | |||||||||
Other Income (Expense): | ||||||||||||
Interest income | 0 | 142 | 681 | |||||||||
Interest expense | (1,878 | ) | (2,632 | ) | (1,945 | ) | ||||||
RADx grant income | 1,000 | 0 | 0 | |||||||||
Other, net | (1,705 | ) | 459 | 122 | ||||||||
Total Other Expense, Net | (2,583 | ) | (2,031 | ) | (1,142 | ) | ||||||
Earnings Before Income Taxes | 90,451 | 59,293 | 31,557 | |||||||||
Income Tax Provision | 19,044 | 13,107 | 7,175 | |||||||||
Net Earnings | $ | 71,407 | $ | 46,186 | $ | 24,382 | ||||||
�� | ||||||||||||
Earnings Per Share Data: | ||||||||||||
Basic earnings per common share | $ | 1.65 | $ | 1.08 | $ | 0.57 | ||||||
Diluted earnings per common share | $ | 1.62 | $ | 1.07 | $ | 0.57 | ||||||
Common shares used for basic earnings per common share | 43,259 | 42,855 | 42,571 | |||||||||
Effect of dilutive stock options and restricted share units | 753 | 319 | 328 | |||||||||
Common shares used for diluted earnings per common share | 44,012 | 43,174 | 42,899 | |||||||||
Dividends declared per common share | $ | 0 | $ | 0 | $ | 0.25 | ||||||
Anti-Dilutive Securities: | ||||||||||||
Common share options and restricted share units | 203 | 893 | 1,129 |
For the Year Ended September 30, | 2019 | 2018 | 2017 | 2021 | 2020 | 2019 | ||||||||||||||||||
Net Earnings | $ | 24,382 | $ | 23,849 | $ | 21,557 | $ | 71,407 | $ | 46,186 | $ | 24,382 | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Other Comprehensive Income (Loss): | ||||||||||||||||||||||||
Foreign currency translation adjustment | (802 | ) | (1,075 | ) | 1,616 | 1,780 | 3,884 | (802 | ) | |||||||||||||||
Unrealized gain (loss) on cash flow hedge | (1,159 | ) | 907 | 1,544 | 510 | (713 | ) | (1,159 | ) | |||||||||||||||
Amortization of gain on cash flow hedge | (102 | ) | — | — | ||||||||||||||||||||
Income taxes related to items of other comprehensive income | 465 | (263 | ) | (590 | ) | |||||||||||||||||||
Reclassification of amortization of gain on cash flow hedge | (154 | ) | (308 | ) | (102 | ) | ||||||||||||||||||
Income taxes related to items of other comprehensive income (loss) | (78 | ) | 252 | 465 | ||||||||||||||||||||
Other comprehensive income (loss), net of tax | (1,598 | ) | (431 | ) | 2,570 | |||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 2,058 | 3,115 | (1,598 | ) | ||||||||||||||||||||
Comprehensive Income | $ | 22,784 | $ | 23,418 | $ | 24,127 | $ | 73,465 | $ | 49,301 | $ | 22,784 | ||||||||||||
For the Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
Cash Flows From Operating Activities | ||||||||||||
Net earnings | $ | 71,407 | $ | 46,186 | $ | 24,382 | ||||||
Non-cash items included in net earnings: | ||||||||||||
Depreciation of property, plant and equipment | 6,510 | 5,823 | 5,433 | |||||||||
Amortization of intangible assets | 8,776 | 7,744 | 4,531 | |||||||||
Stock compensation expense | 4,156 | 3,802 | 3,251 | |||||||||
Deferred income taxes | (3,835 | ) | 760 | (817 | ) | |||||||
Losses on dispositions of long-lived assets | 9 | 64 | 632 | |||||||||
Change in fair value of acquisition consideration and settlement | (909 | ) | (6,293 | ) | 0 | |||||||
Change in the following, net of acquisitions: | ||||||||||||
Accounts receivable | (12,766 | ) | (971 | ) | (2,215 | ) | ||||||
Inventories | (7,800 | ) | (18,977 | ) | 3,841 | |||||||
Prepaid expenses and other current assets | (3,711 | ) | (153 | ) | (2,143 | ) | ||||||
Accounts payable and accrued expenses | 6,346 | 7,248 | (2,315 | ) | ||||||||
Income taxes payable | (329 | ) | 1,435 | 1,793 | ||||||||
Other, net | (989 | ) | 1,308 | (198 | ) | |||||||
Net cash provided by operating activities | 66,865 | 47,976 | 36,175 | |||||||||
Cash Flows From Investing Activities | ||||||||||||
Purchase of property, plant and equipment | (18,312 | ) | (3,299 | ) | (3,797 | ) | ||||||
RADx grant proceeds offsetting cost of equipment | 1,500 | 0 | 0 | |||||||||
Payment of acquisition consideration holdback | (5,000 | ) | 0 | 0 | ||||||||
Disposals of property, plant and equipment | 0 | 0 | 669 | |||||||||
Acquisitions, net of cash acquired and holdback | (18,585 | ) | (51,299 | ) | (45,324 | ) | ||||||
Net cash used in investing activities | (40,397 | ) | (54,598 | ) | (48,452 | ) | ||||||
Cash Flows From Financing Activities | ||||||||||||
Proceeds from revolving credit facility | 10,000 | 50,000 | 75,824 | |||||||||
Payment of acquisition consideration | (20,000 | ) | 0 | 0 | ||||||||
Payment on revolving credit facility | (18,824 | ) | (57,000 | ) | 0 | |||||||
Payment on government grant obligations | (5,297 | ) | 0 | 0 | ||||||||
Payment of debt issuance costs | 0 | (116 | ) | (489 | ) | |||||||
Payments on term loan | 0 | 0 | (50,250 | ) | ||||||||
Proceeds from exercise of stock options | 3,052 | 3,559 | 443 | |||||||||
Dividends paid | 0 | 0 | (10,612 | ) | ||||||||
Net cash (used in) provided by financing activities | (31,069 | ) | (3,557 | ) | 14,916 | |||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 858 | 1,296 | (1,005 | ) | ||||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (3,743 | ) | (8,883 | ) | 1,634 | |||||||
Cash and Cash Equivalents at Beginning of Period | 53,514 | 62,397 | 60,763 | |||||||||
Cash and Cash Equivalents at End of Period | $ | 49,771 | $ | 53,514 | $ | 62,397 | ||||||
As of September 30, | 2021 | 2020 | ||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 49,771 | $ | 53,514 | ||||
Accounts receivable, less allowances of $1,078 and $513, respectively | 53,568 | 38,512 | ||||||
Inventories, net | 76,842 | 61,264 | ||||||
Prepaid expenses and other current assets | 12,626 | 8,900 | ||||||
Total Current Assets | 192,807 | 162,190 | ||||||
Property, Plant and Equipment: | ||||||||
Land | 989 | 991 | ||||||
Buildings and improvements | 32,765 | 32,188 | ||||||
Machinery, equipment and furniture | 78,410 | 69,854 | ||||||
Construction in progress | 9,991 | 1,200 | ||||||
Subtotal | 122,155 | 104,233 | ||||||
Less: accumulated depreciation and amortization | 78,941 | 73,113 | ||||||
Net Property, Plant and Equipment | 43,214 | 31,120 | ||||||
Other Assets: | ||||||||
Goodwill | 114,668 | 114,186 | ||||||
Other intangible assets, net | 84,151 | 83,197 | ||||||
Right-of-use assets, net | 5,786 | 6,336 | ||||||
Deferred income taxes | 8,731 | 7,647 | ||||||
Other assets | 365 | 585 | ||||||
Total Other Assets | 213,701 | 211,951 | ||||||
Total Assets | $ | 449,722 | $ | 405,261 | ||||
For the Year Ended September 30, | 2019 | 2018 | 2017 | |||||||||
Cash Flows From Operating Activities | ||||||||||||
Net earnings | $ | 24,382 | $ | 23,849 | $ | 21,557 | ||||||
Non-cash items included in net earnings: | ||||||||||||
Depreciation of property, plant and equipment | 5,433 | 4,491 | 4,342 | |||||||||
Amortization of intangible assets | 4,531 | 3,433 | 3,776 | |||||||||
Amortization of deferred instrument costs | — | 764 | 972 | |||||||||
Stock-based compensation | 3,251 | 3,402 | 3,381 | |||||||||
Goodwill impairment charge | — | — | 6,628 | |||||||||
Deferred income taxes | (817 | ) | (300 | ) | 1,474 | |||||||
Losses on dispositions of long-lived assets | 632 | — | — | |||||||||
Change in the following, net of acquisition: | ||||||||||||
Accounts receivable | (2,314 | ) | (4,447 | ) | (1,211 | ) | ||||||
Inventories | 3,841 | (1,142 | ) | 3,467 | ||||||||
Prepaid expenses and other current assets | (2,044 | ) | 323 | 1,225 | ||||||||
Accounts payable and accrued expenses | (2,315 | ) | 4,124 | (3,151 | ) | |||||||
Income taxes payable | 1,793 | (524 | ) | (384 | ) | |||||||
Other, net | (542 | ) | 810 | (721 | ) | |||||||
Net cash provided by operating activities | 35,831 | 34,783 | 41,355 | |||||||||
Cash Flows From Investing Activities | ||||||||||||
Purchase of property, plant and equipment | (3,797 | ) | (4,201 | ) | (4,467 | ) | ||||||
Disposal s of property, plant and equipment | 669 | — | — | |||||||||
Acquisition of GenePOC business | (45,324 | ) | — | — | ||||||||
Net cash used for investing activities | (48,452 | ) | (4,201 | ) | (4,467 | ) | ||||||
Cash Flows From Financing Activities | ||||||||||||
Dividends paid | (10,612 | ) | (21,170 | ) | (24,266 | ) | ||||||
Proceeds from revolving credit facility | 75,824 | — | — | |||||||||
Payment of debt issuance costs | (489 | ) | — | — | ||||||||
Payments on term loan | (50,250 | ) | (4,500 | ) | (3,750 | ) | ||||||
Proceeds and tax benefits from exercises of stock options | 787 | 187 | 303 | |||||||||
Payment of acquisition consideration | — | (2,110 | ) | — | ||||||||
Net cash provided by (used for) financing activities | 15,260 | (27,593 | ) | (27,713 | ) | |||||||
Effect of Exchange Rate Changes on Cash and Equivalents and Restricted Cash | (1,005 | ) | (298 | ) | 671 | |||||||
Net Increase in Cash and Equivalents and Restricted Cash | 1,634 | 2,691 | 9,846 | |||||||||
Cash and Equivalents and Restricted Cash at Beginning of Period | 60,763 | 58,072 | 48,226 | |||||||||
Cash and Equivalents and Restricted Cash at End of Period | $ | 62,397 | $ | 60,763 | $ | 58,072 | ||||||
Cash and Equivalents | $ | 62,397 | $ | 59,763 | $ | 57,072 | ||||||
Restricted Cash | — | 1,000 | 1,000 | |||||||||
Cash and Equivalents and Restricted Cash at End of Period | $ | 62,397 | $ | 60,763 | $ | 58,072 | ||||||
As of September 30, | 2021 | 2020 | ||||||
Liabilities and Shareholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 11,701 | $ | 11,969 | ||||
Accrued employee compensation costs | 16,853 | 16,661 | ||||||
Accrued product recall costs | 5,100 | 0 | ||||||
Current portion of acquisition consideration | 0 | 12,619 | ||||||
Current operating lease obligations | 1,990 | 1,789 | ||||||
Current government grant obligations | 638 | 600 | ||||||
Other accrued expenses | 7,027 | 5,362 | ||||||
Income taxes payable | 3,848 | 3,524 | ||||||
Total Current Liabilities | 47,157 | 52,524 | ||||||
Non-Current Liabilities: | ||||||||
Acquisition consideration | 1,000 | 13,290 | ||||||
Post-employment benefits | 2,253 | 2,493 | ||||||
Fair value of interest rate swaps | 203 | 713 | ||||||
Long-term operating lease obligations | 3,932 | 4,678 | ||||||
Long-term debt | 60,000 | 68,824 | ||||||
Government grant obligations | 5,176 | 10,524 | ||||||
Long-term income taxes payable | 469 | 549 | ||||||
Deferred income taxes | 1,055 | 3,804 | ||||||
Other non-current liabilities | 175 | 233 | ||||||
Total Non-Current Liabilities | 74,263 | 105,108 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Shareholders’ Equity: | ||||||||
Preferred stock, 0 par value; 1,000,000 shares authorized; 0ne issued | 0— | 0— | ||||||
Common shares, 0 par value; 71,000,000 shares authorized, 43,361,898 and 43,068,842 issued, respectively | 0— | 0— | ||||||
Additional paid-in capital | 147,403 | 140,195 | ||||||
Retained earnings | 180,701 | 109,294 | ||||||
Accumulated other comprehensive income (loss) | 198 | (1,860 | ) | |||||
Total Shareholders’ Equity | 328,302 | 247,629 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 449,722 | $ | 405,261 | ||||
As of September 30, | 2019 | 2018 | ||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and equivalents | $ | 62,397 | $ | 59,763 | ||||
Accounts receivable, less allowances of $537 and $310, respectively | 35,608 | 32,336 | ||||||
Inventories | 39,617 | 41,993 | ||||||
Prepaid expenses and other current assets | 7,139 | 4,961 | ||||||
Total current assets | 144,761 | 139,053 | ||||||
Property, Plant and Equipment, at Cost: | ||||||||
Land | 982 | 1,160 | ||||||
Buildings and improvements | 31,904 | 32,444 | ||||||
Machinery, equipment and furniture | 64,155 | 50,606 | ||||||
Construction in progress | 522 | 1,631 | ||||||
Subtotal | 97,563 | 85,841 | ||||||
Less: accumulated depreciation and amortization | 66,996 | 55,846 | ||||||
Net property, plant and equipment | 30,567 | 29,995 | ||||||
Other Assets: | ||||||||
Goodwill | 89,241 | 54,637 | ||||||
Other intangible assets, net | 60,243 | 23,113 | ||||||
Restricted cash | — | 1,000 | ||||||
Deferred instrument costs, net | — | 1,239 | ||||||
Fair value of interest rate swap | — | 1,722 | ||||||
Deferred income taxes | 156 | 130 | ||||||
Other assets | 510 | 488 | ||||||
Total other assets | 150,150 | 82,329 | ||||||
Total assets | $ | 325,478 | $ | 251,377 | ||||
Common Shares Issued | Additional Paid-in Capital | Retained Earnings | Accum Other Comp (Loss) Income | Total | ||||||||||||||||
Balance at September 30, 2018 | 42,400 | $ | 129,193 | $ | 49,602 | $ | (3,377 | ) | $ | 175,418 | ||||||||||
Cash dividends paid - $0.250 per share | — | — | (10,612 | ) | — | (10,612 | ) | |||||||||||||
Conversion of restricted share units and exercise of stock options | 312 | 390 | — | — | 390 | |||||||||||||||
Stock compensation expense | — | 3,251 | — | — | 3,251 | |||||||||||||||
Net earnings | — | — | 24,382 | — | 24,382 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | (802 | ) | (802 | ) | |||||||||||||
Hedging activity, net of tax | — | — | — | (944 | ) | (944 | ) | |||||||||||||
Adoption of ASU 2014-09 | — | — | (116 | ) | — | (116 | ) | |||||||||||||
Adoption of ASU 2018-02 | — | — | (148 | ) | 148 | — | ||||||||||||||
Balance at September 30, 2019 | 42,712 | $ | 132,834 | $ | 63,108 | $ | (4,975 | ) | $ | 190,967 | ||||||||||
Conversion of restricted share units and exercise of stock options | 357 | 3,559 | — | — | 3,559 | |||||||||||||||
Stock compensation expense | — | 3,802 | — | — | 3,802 | |||||||||||||||
Net earnings | — | — | 46,186 | — | 46,186 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 3,884 | 3,884 | |||||||||||||||
Hedging activity, net of tax | — | — | — | (769 | ) | (769 | ) | |||||||||||||
Balance at September 30, 2020 | 43,069 | $ | 140,195 | $ | 109,294 | $ | (1,860 | ) | $ | 247,629 | ||||||||||
Conversion of restricted share units and exercise of stock options | 293 | 3,052 | — | — | 3,052 | |||||||||||||||
Stock compensation expense | — | 4,156 | — | — | 4,156 | |||||||||||||||
Net earnings | — | — | 71,407 | — | 71,407 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 1,780 | 1,780 | |||||||||||||||
Hedging activity, net of tax | — | — | — | 278 | 278 | |||||||||||||||
Balance at September 30, 2021 | 43,362 | $ | 147,403 | $ | 180,701 | $ | 198 | $ | 328,302 | |||||||||||
As of September 30, | 2019 | 2018 | ||||||
Liabilities and Shareholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 7,238 | $ | 6,260 | ||||
Accrued employee compensation costs | 7,938 | 9,195 | ||||||
Other accrued expenses | 3,758 | 3,133 | ||||||
Current portion of long-term debt | — | 5,250 | ||||||
Income taxes payable | 1,980 | 335 | ||||||
Total current liabilities | 20,914 | 24,173 | ||||||
Non-Current Liabilities: | ||||||||
Acquisition consideration | 32,202 | — | ||||||
Post-employment benefits | 2,500 | 2,646 | ||||||
Long-term debt | 75,824 | 44,930 | ||||||
Long-term income taxes payable | 549 | 441 | ||||||
Deferred income taxes | 2,522 | 3,769 | ||||||
Total non-current liabilities | 113,597 | 51,786 | ||||||
Commitments and Contingencies | ||||||||
Shareholders’ Equity: | ||||||||
Preferred stock, no par value; 1,000,000 shares authorized; NaN issued | — | — | ||||||
Common shares, no par value; 71,000,000 shares authorized, 42,712,296 and 42,399,962 issued, respectively | — | — | ||||||
Additional paid-in capital | 132,834 | 129,193 | ||||||
Retained earnings | 63,108 | 49,602 | ||||||
Accumulated other comprehensive loss | (4,975 | ) | (3,377 | ) | ||||
Total shareholders’ equity | 190,967 | 175,418 | ||||||
Total liabilities and shareholders’ equity | $ | 325,478 | $ | 251,377 | ||||
Common Shares Issued | Additional Paid-in Capital | Retained Earnings | Accum Comp Income (Loss) | Total | ||||||||||||||||
B alance at September 30, 2016 | 42,107 | $ | 122,356 | $ | 49,632 | $ | (5,516 | ) | $ | 166,472 | ||||||||||
Cash dividends paid - $0.575 per share | — | — | (24,266 | ) | — | (24,266 | ) | |||||||||||||
Conversion of restricted share units and exercise of stock options | 100 | (129 | ) | — | — | (129 | ) | |||||||||||||
Stock compensation expense | — | 3,381 | — | — | 3,381 | |||||||||||||||
Net earnings | — | — | 21,557 | — | 21,557 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 1,616 | 1,616 | |||||||||||||||
Hedging activity, net of tax | — | — | — | 954 | 954 | |||||||||||||||
Balance at September 30, 2017 | 42,207 | 125,608 | 46,923 | (2,946 | ) | 169,585 | ||||||||||||||
Cash dividends paid - $0.500 per share | — | — | (21,170 | ) | — | (21,170 | ) | |||||||||||||
Conversion of restricted share units and ex ercise of stock options | 193 | 183 | — | — | 183 | |||||||||||||||
Stock compensation expense | — | 3,402 | — | — | 3,402 | |||||||||||||||
Net earnings | — | — | 23,849 | — | 23,849 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | (1,075 | ) | (1,075 | ) | |||||||||||||
Hedging activity, net of tax | — | — | — | 644 | 644 | |||||||||||||||
Balance at September 30, 2018 | 42,400 | 129,193 | 49,602 | (3,377 | ) | 175,418 | ||||||||||||||
Cash dividends paid - $0.250 per share | — | — | (10,612 | ) | — | (10,612 | ) | |||||||||||||
Conversion of restricted share units and exercise of stock options | 312 | 390 | — | — | 390 | |||||||||||||||
Stock compensation expense | — | 3,251 | — | — | 3,251 | |||||||||||||||
Net earnings | — | — | 24,382 | — | 24,382 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | (802 | ) | (802 | ) | |||||||||||||
Hedging activity, net of tax | — | — | — | (944 | ) | (944 | ) | |||||||||||||
Adoption of ASU 2014-09 | — | — | (116 | ) | — | (116 | ) | |||||||||||||
Adoption of ASU 2018-02 | — | — | (148 | ) | 148 | — | ||||||||||||||
�� | ||||||||||||||||||||
Balance at September 30, 2019 | 42,712 | $ | 132,834 | $ | 63,108 | $ | (4,975 | ) | $ | 190,967 | ||||||||||
(1) | Summary of Significant Accounting Policies |
(a) | Business Description - |
(b) | Principles of Consolidation and Basis of Presentation - |
(c) | Use of Estimates - |
Foreign Currency Translation - Assets and liabilities of foreign operations are translated using year-end exchange rates with gains or losses resulting from translation included as a separate component of accumulated other comprehensive income |
(e) | Cash and Cash Equivalents - |
September 30, 2019 | September 30, 2018 | |||||||||||||||
Cash and Equivalents | Other | Cash and Equivalents | Other | |||||||||||||
Institutional money market funds | $ | 20,913 | $ | — | $ | 20,421 | $ | — | ||||||||
Cash on hand – | ||||||||||||||||
Restricted | — | — | — | 1,000 | ||||||||||||
Unrestricted | 41,484 | — | 39,342 | — | ||||||||||||
Total | $ | 62,397 | $ | — | $ | 59,763 | $ | 1,000 | ||||||||
( | Inventories first-in, first-out |
(g) | Property, Plant and Equipment write-off the cost over the estimated useful lives, generally as follows: |
(h) | Intangible Assets - |
2019 | 2018 | |||||||||||||||
As of September 30, | Gross Carrying Value | Accum. Amort. | Gross Carrying Value | Accum. Amort. | ||||||||||||
Manufacturing technologies, core products and cell lines | $ | 56,193 | $ | 15,096 | $ | 22,297 | $ | 13,974 | ||||||||
Tradenames, licenses and patents | 14,494 | 6,094 | 8,647 | 5,267 | ||||||||||||
Customer lists, customer relationships and supply agreements | 24,274 | 14,110 | 24,461 | 13,051 | ||||||||||||
Government grants | 814 | 232 | — | — | ||||||||||||
$ | 95,775 | $ | 35,532 | $ | 55,405 | $ | 32,292 | |||||||||
(i) | Revenue Recognition and Accounts Receivable |
Balance at September 30, 2018 | New Revenue Standard Adjustment | Balance at October 1, 2018 | ||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||||
$ | 50,606 | $ | 8,696 | $ | 59,302 | |||||||
(55,846 | ) | (7,611 | ) | (63,457 | ) | |||||||
OTHER ASSETS | ||||||||||||
1,239 | (1,239 | ) | — | |||||||||
NON-CURRENT LIABILITIES | ||||||||||||
(3,769 | ) | 38 | (3,731 | ) | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||
(49,602 | ) | 116 | (49,486 | ) |
2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||||||||
2019 | 2018 | 2017 | Inc (Dec) | Inc (Dec) | ||||||||||||||||
Diagnostics- | ||||||||||||||||||||
Americas | $ | 110,135 | $ | 123,916 | $ | 117,161 | (11 | )% | 6 | % | ||||||||||
EMEA | 23,865 | 23,922 | 22,594 | — | % | 6 | % | |||||||||||||
ROW | 2,682 | 2,616 | 3,766 | 3 | % | (31 | )% | |||||||||||||
Total Diagnostics | 136,682 | 150,454 | 143,521 | (9 | )% | 5 | % | |||||||||||||
Life Science- | ||||||||||||||||||||
Americas | 19,443 | 21,080 | 20,265 | (8 | )% | 4 | % | |||||||||||||
EMEA | 29,157 | 24,715 | 22,365 | 18 | % | 11 | % | |||||||||||||
ROW | 15,732 | 17,322 | 14,620 | (9 | )% | 18 | % | |||||||||||||
Total Life Science | 64,332 | 63,117 | 57,250 | 2 | % | 10 | % | |||||||||||||
Consolidated | $ | 201,014 | $ | 213,571 | $ | 200,771 | (6 | )% | 6 | % | ||||||||||
2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||||||||
2019 | 2018 | 2017 | Inc (Dec) | Inc (Dec) | ||||||||||||||||
Diagnostics- | ||||||||||||||||||||
Molecular assays | $ | 26,231 | $ | 33,709 | $ | 33,712 | (22 | )% | — | % | ||||||||||
Immunoassays & blood chemistry assays | 110,451 | 116,745 | 109,809 | (5 | )% | 6 | % | |||||||||||||
Total Diagnostics | $ | 136,682 | $ | 150,454 | $ | 143,521 | (9 | )% | 5 | % | ||||||||||
Life Science- | ||||||||||||||||||||
Molecular reagents | $ | 23,261 | $ | 24,533 | $ | 21,966 | (5 | )% | 12 | % | ||||||||||
Immunological reagents | 41,071 | 38,584 | 35,284 | 6 | % | 9 | % | |||||||||||||
Total Life Science | $ | 64,332 | $ | 63,117 | $ | 57,250 | 2 | % | 10 | % | ||||||||||
2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||||||||
2019 | 2018 | 2017 | Inc (Dec) | Inc (Dec) | ||||||||||||||||
Diagnostics- | ||||||||||||||||||||
Gastrointestinal assays | $ | 68,977 | $ | 78,803 | $ | 79,022 | (12 | )% | — | % | ||||||||||
Respiratory illness assays | 26,622 | 28,911 | 23,881 | (8 | )% | 21 | % | |||||||||||||
Blood chemistry assays | 19,082 | 19,109 | 18,212 | — | % | 5 | % | |||||||||||||
Other | 22,001 | 23,631 | 22,406 | (7 | )% | 5 | % | |||||||||||||
Total Diagnostics | $ | 136,682 | $ | 150,454 | $ | 143,521 | (9 | )% | 5 | % | ||||||||||
(j) | Fair Value Measurements ASC 820-10, Fair Value Measurements and Disclosures 820-10 defines fair value as the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC820-10 |
transparency and reliability of the inputs used in the valuation of such items at the measurement date based on the lowest level of input that is significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities |
Fair Value Measurements Using Inputs Considered as | ||||||||||||||||
As of September 31, 2019 | Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Contingent consideration | $ | $ | $ | $ | 27,200 |
(k) | Research and Development Costs |
(l) | Income Taxes The provision for income taxes includes federal, foreign, state and local income taxes currently payable and those deferred because of temporary differences between income for financial reporting and income for tax purposes. We prepare estimates of permanent and temporary differences between income for financial reporting purposes and income for a x purposes. These differences are adjusted to actual upon filing of our tax returns, typically occurring in the third and fourth quarters of the current fiscal year for the preceding fiscal year’s estimates. |
(m) | Stock-Based Compensation |
(n) | Comprehensive Income (Loss) unrealized gain (loss) on our current cash flow hedge, unrecognized gain (loss) on termination of our previous cash flow hedge, and the income taxes thereon. |
(o) | Shipping and Handling Costs |
(p) | Non-Income Government-Assessed Taxes |
(q) | Acquisitions |
(r) | Other income (expense), net - Other income (expense), net, consists principally of transaction currency gains or losses. When a transaction is denominated in a currency other than the subsidiary’s functional currency, the Company recognizes a transaction gain or loss in other income (expense), net within the Consolidated Statements of Operations when the transaction is settled. |
(s) | Recent Accounting Pronouncements |
(2) | Revenue Recognition |
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
Diagnostics- | ||||||||||||
Americas | $ | 101,293 | $ | 97,228 | $ | 110,109 | ||||||
EMEA | 24,475 | 21,826 | 23,888 | |||||||||
ROW | 1,992 | 2,078 | 2,685 | |||||||||
Total Diagnostics | 127,760 | 121,132 | 136,682 | |||||||||
Life Science- | ||||||||||||
Americas | 46,063 | 37,391 | 19,441 | |||||||||
EMEA | 93,655 | 58,125 | 28,850 | |||||||||
ROW | 50,418 | 37,019 | 16,041 | |||||||||
Total Life Science | 190,136 | 132,535 | 64,332 | |||||||||
Consolidated | $ | 317,896 | $ | 253,667 | $ | 201,014 | ||||||
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
Diagnostics- | ||||||||||||
Molecular assays | $ | 19,037 | $ | 21,907 | $ | 26,283 | ||||||
Non-molecular assays | 108,723 | 99,225 | 110,399 | |||||||||
Total Diagnostics | $ | 127,760 | $ | 121,132 | $ | 136,682 | ||||||
Life Science- | ||||||||||||
Molecular reagents | $ | 130,537 | $ | 78,431 | $ | 23,261 | ||||||
Immunological reagents | 59,599 | 54,104 | 41,071 | |||||||||
Total Life Science | $ | 190,136 | $ | 132,535 | $ | 64,332 | ||||||
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
Diagnostics- | ||||||||||||
Gastrointestinal assays | $ | 68,890 | $ | 55,040 | $ | 68,982 | ||||||
Respiratory illness assays | 17,608 | 26,694 | 26,622 | |||||||||
Blood chemistry assays | 15,398 | 17,534 | 18,639 | |||||||||
Other | 25,864 | 21,864 | 22,439 | |||||||||
Total Diagnostics | $ | 127,760 | $ | 121,132 | $ | 136,682 | ||||||
Fair Value Measurements |
Fair Value Measurements Using Inputs Considered as | ||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Interest rate swap agreements - | ||||||||||||||||
As of September 30, 2021 | $ | (203 | ) | $ | 0 | $ | (203 | ) | $ | 0 | ||||||
As of September 30, 2020 | $ | (713 | ) | $ | 0 | $ | (713 | ) | $ | 0 | ||||||
Contingent consideration - | ||||||||||||||||
As of September 30, 2021 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
As of September 30, 2020 | $ | (20,909 | ) | $ | 0 | $ | 0 | $ | (20,909 | ) |
(4) | Business Combinations |
Year Ended September 30, | 2021 | 2020 | ||||||
Net revenues | $ | 337,118 | $ | 279,573 | ||||
Net earnings | 77,270 | 53,305 |
Year Ended September 30, | 2021 | 2020 | ||||||
Net revenues | $ | 14,905 | $ | 4,206 | ||||
Net loss | (3,381 | ) | (1,911 | ) |
PRELIMINARY | ||||||||||||
June 3, 2019 (as initially reported) | Measurement Period Adjustments | June 3, 2019 (as adjusted) | ||||||||||
Fair value of assets acquired - | ||||||||||||
Accounts receivable | $ | 58 | $ | (1 | ) | $ | 57 | |||||
Inventories | 1,617 | (106 | ) | 1,511 | ||||||||
Other current assets | 77 | 7 | 84 | |||||||||
Property, plant and equipment | 1,520 | (96 | ) | 1,424 | ||||||||
Goodwill | 34,482 | 100 | 34,582 | |||||||||
Other intangible assets (estimated useful life): | ||||||||||||
License agreement (10 years) | 5,990 | — | 5,990 | |||||||||
Technology (15 years) | 34,040 | 96 | 34,136 | |||||||||
Government grant (1.33 years) | 800 | — | 800 | |||||||||
78,584 | — | 78,584 | ||||||||||
Fair value of liabilities assumed - | ||||||||||||
Accounts payable and accrued expenses | 1,082 | (24 | ) | 1,058 | ||||||||
Total consideration paid (including contingent consideration currently estimated at $27,200) | $ | 77,502 | $ | 24 | $ | 77,526 | ||||||
April 30, 2020 | ||||
Fair value of assets acquired - | ||||
Cash | $ | 5,006 | ||
Accounts receivable | 637 | |||
Inventories | 4,026 | |||
Other current assets | 2,676 | |||
Property, plant and equipment | 528 | |||
Goodwill | 24,459 | |||
Other intangible assets (estimated useful life): | ||||
Non-compete agreement (5 years) | 110 | |||
Trade name (10 years) | 3,860 | |||
Technology (15 years) | 6,120 | |||
Customer relationships (10 years) | 20,640 | |||
Right-of-use assets | 1,311 | |||
Deferred tax assets, net | 7,119 | |||
76,492 | ||||
Fair value of liabilities assumed - | ||||
Accounts payable and accrued expenses (including current portion of lease and government grant obligations) | 8,008 | |||
Long-term lease obligations | 1,096 | |||
Long-term government grant obligations | 10,792 | |||
Other non-current liabilities | 291 | |||
20,187 | ||||
Total consideration paid (including $8,068 to pay off long-term debt) | $ | 56,305 | ||
Year Ended September 30, | 2019 | 2018 | ||||||
Net Revenues | $ | 201,222 | $ | 213,753 | ||||
Net Earnings | $ | 16,093 | $ | 9,407 |
Year Ended September 30, | 2020 | 2019 | ||||||
Net revenues | $ | 261,131 | $ | 214,613 | ||||
Net earnings | 45,843 | 19,089 | ||||||
Year Ended September 30, | 2020 | 2019 | ||||||
Adjustments to Net Revenues | ||||||||
Exalenz pre-acquisition revenues | $ | 7,464 | $ | 13,599 | ||||
Adjustments to Net Earnings | ||||||||
Exalenz pre-acquisition net losses | $ | (6,423 | ) | $ | (4,006 | ) | ||
Pro forma adjustments: | ||||||||
Meridian acquisition-related costs | 3,890 | 0 | ||||||
Exalenz transaction-related costs | 4,550 | 0 | ||||||
Gain on Exalenz purchase price currency contracts | (845 | ) | 0 | |||||
Remove net impact of non-continuing activities | (305 | ) | 1,441 | |||||
Incremental depreciation and amortization | (1,680 | ) | (3,027 | ) | ||||
Incremental interest costs, net | (183 | ) | (728 | ) | ||||
Tax effects of pro forma adjustments and recognizing benefit on resulting Exalenz losses | 653 | 1,027 | ||||||
Total Adjustments to Net Earnings | $ | (343 | ) | $ | (5,293 | ) | ||
Year Ended September 30, | 2019 | 2018 | ||||||
Adjustments to Net Revenues | ||||||||
GenePOC pre-acquisition revenues | $ | 208 | $ | 182 | ||||
Adjustments to Net Earnings | ||||||||
GenePOC pre-acquisition net loss | $ | (9,578 | ) | $ | (12,775 | ) | ||
Pro forma adjustments: | ||||||||
Meridian acquisition-related costs | 1,808 | — | ||||||
1,245 | — | |||||||
non-continuing personnel, locationsor activities | 1,576 | 2,552 | ||||||
(2,344 | ) | (3,499 | ) | |||||
(743 | ) | (977 | ) | |||||
(253 | ) | 257 | ||||||
Total Adjustments to Net Earnings | $ | (8,289 | ) | $ | (14,442 | ) | ||
(5) | Lead Testing Matters |
2019 | 2018 | |||||||
Severance, other termination benefits and related costs | $ | 2,046 | $ | 5,012 | ||||
Lease and other contract termination fees | 54 | 353 | ||||||
Loss on fixed asset disposals and inventory scrap | 528 | 225 | ||||||
Other | 211 | 742 | ||||||
Total | $ | 2,839 | $ | 6,332 | ||||
(6) | Cash and Cash Equivalents |
As of September 30, | 2021 | 2020 | ||||||
Institutional money market funds | $ | 1,020 | $ | 1,017 | ||||
Cash on hand, unrestricted | 48,751 | 52,497 | ||||||
Total | $ | 49,771 | $ | 53,514 | ||||
As of September 30, | 2019 | 2018 | ||||||
Severance, other termination benefits and related costs | $ | 1,010 | $ | 987 | ||||
Lease and other contract termination fees | 12 | 33 | ||||||
Other | 114 | 6 | ||||||
Total | $ | 1,136 | $ | 1,026 | ||||
(7) | Inventories |
As of September 30, | 2019 | 2018 | ||||||
Raw materials | $ | 7,455 | $ | 6,689 | ||||
Work-in-process | 11,504 | 12,098 | ||||||
Finished goods - instruments | 935 | 1,191 | ||||||
Finished goods - kits and reagents | 19,723 | 22,015 | ||||||
Total | $ | 39,617 | $ | 41,993 | ||||
As of September 30, | 2021 | 2020 | ||||||
Raw materials | $ | 14,843 | $ | 11,966 | ||||
Work-in-process | 25,072 | 19,477 | ||||||
Finished goods - instruments | 2,260 | 1,594 | ||||||
Finished goods - kits and reagents | 34,667 | 28,227 | ||||||
Total | $ | 76,842 | $ | 61,264 | ||||
(8) | Goodwill and Other Intangible Assets, Net |
2021 | 2020 | |||||||||||||||
As of September 30, | Gross Carrying Value | Accum. Amort. | Gross Carrying Value | Accum. Amort. | ||||||||||||
Manufacturing technologies, core products and cell lines | $ | 62,416 | $ | 22,633 | $ | 62,363 | $ | 18,750 | ||||||||
Tradenames, licenses and patents | 18,489 | 9,492 | 18,425 | 7,801 | ||||||||||||
Customer lists, customer relationships and supply agreements | 54,941 | 19,649 | 45,071 | 16,210 | ||||||||||||
Non-compete agreements | 110 | 31 | 110 | 11 | ||||||||||||
$ | 135,956 | $ | 51,805 | $ | 125,969 | $ | 42,772 | |||||||||
(9) | Leasing Arrangements |
Year Ended September 30, | 2021 | 2020 | ||||||
Lease costs within cost of sales | $ | 795 | $ | 597 | ||||
Lease costs within operating expenses | 1,542 | 1,286 | ||||||
Right-of-use assets, net obtained in exchange for operating lease liabilities | 1,073 | 1,600 | ||||||
As of September 30, | 2021 | 2020 | ||||||
Weighted average remaining lease term | 3.6 yrs. | 4.2 yrs. | ||||||
Average discount rate | 3.2 | % | 3.7 | % | ||||
2022 | $ | 2,194 | ||
2023 | 1,558 | |||
2024 | 1,178 | |||
2025 | 918 | |||
2026 | 326 | |||
Thereafter | 65 | |||
Total lease payments | 6,239 | |||
Less amount of lease payment representing interest | (317 | ) | ||
Total present value of lease payments | $ | 5,922 | ||
Year Ended September 30, | 2021 | 2020 | ||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | 2,228 | $ | 1,693 | ||||
(10) | Bank Credit Arrangements |
(11) | Income Taxes |
(a) | Earnings before income taxes, and the related |
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
Domestic | $ | 11,354 | $ | 9,068 | $ | 23,954 | ||||||
Foreign | 79,097 | 50,225 | 7,603 | |||||||||
Total earnings before income taxes | $ | 90,451 | $ | 59,293 | $ | 31,557 | ||||||
Provision (benefit) for income taxes - | ||||||||||||
Federal - | ||||||||||||
Current | $ | 4,431 | $ | 1,173 | $ | 5,001 | ||||||
Deferred | (2,595 | ) | 744 | (477 | ) | |||||||
State and local | 1,163 | 1,170 | 834 | |||||||||
Foreign - | ||||||||||||
Current | 16,305 | 10,194 | 1,915 | |||||||||
Deferred | (260 | ) | (174 | ) | (98 | ) | ||||||
Total income tax provision | $ | 19,044 | $ | 13,107 | $ | 7,175 | ||||||
Year Ended September 30, | 2019 | 2018 | 2017 | |||||||||
Domestic | $ | 23,954 | $ | 27,787 | $ | 31,885 | ||||||
Foreign | 7,603 | 2,593 | 4,544 | |||||||||
Total earnings before income taxes | $ | 31,557 | $ | 30,380 | $ | 36,429 | ||||||
Provision (credit) for income taxes - | ||||||||||||
Federal - | ||||||||||||
Current | $ | 5,001 | $ | 6,030 | $ | 11,262 | ||||||
Temporary differences | ||||||||||||
Fixed asset basis differences and depreciation | 288 | 410 | (181 | ) | ||||||||
Intangible asset basis differences and amortization | (797 | ) | (4,052 | ) | (1,158 | ) | ||||||
Currently non-deductible expenses and reserves | 241 | 1,206 | 884 | |||||||||
Stock-based compensation | (109 | ) | 1,379 | (635 | ) | |||||||
Net operating loss carryforwards utilized | 69 | 61 | 1,831 | |||||||||
Tax credit carryforwards utilized | — | 181 | 67 | |||||||||
Other, net | (169 | ) | (148 | ) | 99 | |||||||
Subtotal | 4,524 | 5,067 | 12,169 | |||||||||
State and local | 834 | 1,066 | 1,900 | |||||||||
Foreign | 1,817 | 398 | 803 | |||||||||
Total income tax provision | $ | 7,175 | $ | 6,531 | $ | 14,872 | ||||||
(b) | The following is a reconciliation between the statutory U.S. income tax rate and the effective rate derived by dividing the |
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||||||||||||||
Computed income taxes at statutory rate | $ | 18,995 | 21.0 | % | $ | 12,452 | 21.0 | % | $ | 6,627 | 21.0 | % | ||||||||||||
Increase (decrease) in taxes resulting from - | ||||||||||||||||||||||||
State and local income taxes | 1,204 | 1.3 | 773 | 1.3 | 577 | 1.8 | ||||||||||||||||||
Foreign-Derived Intangible Income tax | (563 | ) | (0.6 | ) | (136 | ) | (0.2 | ) | (294 | ) | (0.9 | ) | ||||||||||||
Global Intangible Low Taxed Income (“GILTI”) tax | 8,061 | 8.9 | 4,970 | 8.4 | 1,119 | 3.5 | ||||||||||||||||||
Foreign tax credit | (7,802 | ) | (8.6 | ) | (4,767 | ) | (8.0 | ) | (990 | ) | (3.1 | ) | ||||||||||||
Foreign tax rate differences | (869 | ) | (1.0 | ) | (534 | ) | (0.9 | ) | 46 | 0.1 | ||||||||||||||
Transaction costs | — | — | 548 | 0.9 | — | — | ||||||||||||||||||
Uncertain tax position activity | 205 | 0.2 | 62 | 0.1 | 126 | 0.4 | ||||||||||||||||||
Valuation allowance | 729 | 0.8 | 229 | 0.3 | 364 | 1.2 | ||||||||||||||||||
Stock-based compensation | (498 | ) | (0.5 | ) | 41 | 0.1 | (33 | ) | (0.1 | ) | ||||||||||||||
Other, net | (418 | ) | (0.4 | ) | (531 | ) | (0.9 | ) | (367 | ) | (1.2 | ) | ||||||||||||
$ | 19,044 | 21.1 | % | $ | 13,107 | 22.1 | % | $ | 7,175 | 22.7 | % | |||||||||||||
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
U.S. GILTI inclusion | $ | 38,384 | $ | 23,666 | $ | 5,328 | ||||||
Resulting permanent tax expense | 8,061 | 4,970 | 1,119 | |||||||||
Offsetting foreign tax credit | (7,802 | ) | (4,767 | ) | (990 | ) | ||||||
(c) | The components of net deferred taxes were as follows: |
Year Ended September 30, | 2019 | 2018 | 2017 | ||||||||||||||||||||||
Computed income taxes at statutory rate | $ | 6,627 | 21.0 | % | $ | 7,443 | 24.5 | % | $ | 12,750 | 35.0 | % | |||||||||||||
Increase (decrease) in taxes resulting from - | |||||||||||||||||||||||||
State and local income taxes | 577 | 1.8 | 982 | 3.2 | 1,093 | 3.0 | |||||||||||||||||||
U.S. tax law change | — | — | (2,655 | ) | (8.7 | ) | — | — | |||||||||||||||||
One-time repatriation tax | — | — | 876 | 2.9 | — | — | |||||||||||||||||||
Foreign-Derived Intangible Income tax | (294 | ) | (0.9 | ) | — | — | — | — | |||||||||||||||||
Global Intangible Low Taxed Income tax | 1,119 | 3.6 | — | — | — | — | |||||||||||||||||||
Foreign tax credit | (990 | ) | (3.1 | ) | (15 | ) | — | (57 | ) | (0.2 | ) | ||||||||||||||
Foreign tax rate differences | 46 | 0.1 | (104 | ) | (0.3 | ) | (281 | ) | (0.8 | ) | |||||||||||||||
Qualified domestic production incentives | — | — | (550 | ) | (1.8 | ) | (1,012 | ) | (2.8 | ) | |||||||||||||||
Uncertain tax position activity | 126 | 0.4 | (62 | ) | (0.2 | ) | 134 | 0.4 | |||||||||||||||||
Goodwill impairment charge | — | — | — | — | 2,320 | 6.4 | |||||||||||||||||||
Valuation allowance | 106 | 0.3 | (40 | ) | (0.1 | ) | — | — | |||||||||||||||||
Stock-based compensation | (33 | ) | (0.1 | ) | 447 | 1.4 | — | — | |||||||||||||||||
Other, net | (109 | ) | (0.4 | ) | 209 | 0.6 | (75 | ) | (0.2 | ) | |||||||||||||||
$ | 7,175 | 22.7 | % | $ | 6,531 | 21.5 | % | $ | 14,872 | 40.8 | % | ||||||||||||||
As of September 30, | 2021 | 2020 | ||||||
Deferred tax assets - | ||||||||
Valuation reserves and non-deductible expenses | $ | 4,939 | $ | 4,848 | ||||
Stock compensation expense not deductible | 2,276 | 1,804 | ||||||
Net operating loss and tax credit carryforwards | 12,711 | 10,757 | ||||||
Basis difference in equity-method investee | 302 | 302 | ||||||
Inventories basis differences | 692 | 382 | ||||||
Other | 0 | 207 | ||||||
Subtotal | 20,920 | 18,300 | ||||||
Less valuation allowance | (1,624 | ) | (895 | ) | ||||
Deferred tax assets | 19,296 | 17,405 | ||||||
Deferred tax liabilities - | ||||||||
Property, plant and equipment basis differences and depreciation | (4,778 | ) | (4,269 | ) | ||||
Intangible asset basis differences and amortization | (6,495 | ) | (9,293 | ) | ||||
Other | (347 | ) | 0 | |||||
Deferred tax liabilities | (11,620 | ) | (13,562 | ) | ||||
Net deferred tax assets | $ | 7,676 | $ | 3,843 | ||||
As of September 30, | 2019 | 2018 | ||||||
Deferred tax assets - | ||||||||
Valuation reserves and non-deductible expenses | $ | 1,253 | $ | 1,473 | ||||
Stock compensation expense not deductible | 2,158 | 2,033 | ||||||
Net operating loss and tax credit carryforwards | 494 | 433 | ||||||
Basis difference in equity-method investee | 302 | 302 | ||||||
Inventory basis differences | 289 | 383 | ||||||
Other | 125 | (530 | ) | |||||
Subtotal | 4,621 | 4,094 | ||||||
Less valuation allowance | (408 | ) | (302 | ) | ||||
Deferred tax assets | 4,213 | 3,792 | ||||||
Deferred tax liabilities - | ||||||||
Fixed asset basis differences and depreciation | (2,205 | ) | (1,913 | ) | ||||
Intangible asset basis differences and amortization | (4,374 | ) | (5,518 | ) | ||||
Deferred tax liabilities | (6,579 | ) | (7,431 | ) | ||||
Net deferred tax liabilities | $ | (2,366 | ) | $ | (3,639 | ) | ||
2019 | 2018 | |||||||
Unrecognized income tax benefits at beginning of year | $ | 262 | $ | 517 | ||||
Additions for tax positions of prior years | 83 | — | ||||||
Reductions for tax positions of prior years | (100 | ) | — | |||||
Additions for tax positions of current year | 138 | — | ||||||
Tax examination and other settlements | — | (161 | ) | |||||
Expiration of statute of limitations | — | (94 | ) | |||||
Unrecognized income tax benefits at end of year | $ | 383 | $ | 262 | ||||
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
Unrecognized income tax benefits at beginning of year | $ | 568 | $ | 509 | $ | 388 | ||||||
Additions for tax positions of prior years | 34 | — | 83 | |||||||||
Reductions for tax positions of prior years | — | — | (38 | ) | ||||||||
Additions for tax positions of current year | 138 | 104 | 138 | |||||||||
Tax examination and other settlements | (40 | ) | (45 | ) | (62 | ) | ||||||
Unrecognized income tax benefits at end of year | $ | 700 | $ | 568 | $ | 509 | ||||||
(12) | Employee Benefits |
(a) | Savings and Investment Plan - We have a profit sharing and retirement savings plan covering substantially all full-time U.S. employees. Profit sharing contributions to the plan, which are discretionary, are approved by the board of directors. The plan permits participants to contribute to the plan through salary reduction. Under terms of the plan, we match 100% of an employee’s contributions, up to a maximum match of 4% of eligible are recorded primarily within operating expenses, amounted to approximately $2,869, $2,434 and $1,979, |
(b) | Stock-Based Compensation Plans - During fiscal |
Year ended September 30, | 2021 | 2020 | 2019 | |||||||||
Share price volatility | 53%-59% | 34 | % | 29 | % | |||||||
Life of option | 4.00-7.47 yrs. | 6.51 yrs . | 6.51 yrs . | |||||||||
Risk-free interest rates | 0.26% - 0.79% | 1.60 | % | 2.99 | % | |||||||
Dividend yield | 0 % | 0 | % | 3.3 | % |
Year ended September 30, | 2019 | 2018 | 2017 | |||||||||
Risk-free interest rates | 2.99 | % | 2.10 | % | 1.34 | % | ||||||
Dividend yield | 3.3 | % | 3.3 | % | 4.1 | % | ||||||
Life of option | 6.51 yrs. | 6.47 yrs. | 6.44 yrs. | |||||||||
Share price volatility | 29 | % | 30 | % | 27 | % | ||||||
Forfeitures (by employee group) | 0%-16 | % | 0%-16 | % | 0%-19 | % |
Options | Wtd Avg Exercise Price | Wtd Avg Remaining Life (Yrs) | Aggregate Intrinsic Value | |||||||||||||
Outstanding beginning of period | 1,095 | $ | 17.56 | |||||||||||||
Grants | 77 | 16.07 | ||||||||||||||
Exercises | (30 | ) | 15.13 | |||||||||||||
Forfeitures | (52 | ) | 15.03 | |||||||||||||
Cancellations | (100 | ) | 20.48 | |||||||||||||
Outstanding end of period | 990 | $ | 17.36 | 6.37 | $ | 1 | ||||||||||
Exercisable end of period | 782 | $ | 17.99 | 5.86 | $ | — | ||||||||||
Options | Wtd Avg Exercise Price | Wtd Avg Remaining Life (Yrs) | Aggregate Intrinsic Value | |||||||||||||
Outstanding beginning of period | 1,103 | $ | 14.67 | |||||||||||||
Grants | 167 | 19.28 | ||||||||||||||
Exercises | (219 | ) | 14.48 | |||||||||||||
Forfeitures | (19 | ) | 11.46 | |||||||||||||
Cancellations | (31 | ) | 21.85 | |||||||||||||
Outstanding end of period | 1,001 | $ | 15.31 | 6.55 | $ | 4,299 | ||||||||||
Exercisable end of period | 598 | $ | 15.90 | 5.44 | $ | 2,276 | ||||||||||
Options | Weighted- Average Grant Date Fair Value | |||||||
Nonvested beginning of period | 389 | $ | 3.24 | |||||
Granted | 77 | 3.61 | ||||||
Vested | (205 | ) | 3.39 | |||||
Forfeitures | (52 | ) | 3.25 | |||||
Nonvested end of period | 209 | $ | 3.24 | |||||
Options | Weighted- Average Grant Date Fair Value | |||||||
Nonvested beginning of period | 429 | $ | 3.36 | |||||
Granted | 167 | 9.18 | ||||||
Vested | (174 | ) | 3.59 | |||||
Forfeitures | (19 | ) | 2.83 | |||||
Nonvested end of period | 403 | $ | 5.70 | |||||
(13) | Contingent Obligations and Non-Current Liabilities |
Year Ended September 30, | 2021 | 2020 | ||||||
Current liabilities | $ | 638 | $ | 600 | ||||
Non-current liabilities | 5,176 | 10,524 |
(14) | National Institutes of Health Contracts |
(15) | Reportable Segments and Major Concentration Data |
Year Ended September 30, | 2019 | 2018 | 2017 | |||||||||||||||||||||
Customer A | $ | 18,096 | | (9 | )% | $ | 21,162 | (10 | )% | $ | 22,397 | (11 | )% | |||||||||||
Customer B | $ | 17,350 | | (9 | )% | $ | 22,490 | (11 | )% | $ | 17,825 | (9 | )% |
Diagnostics | Life Science | Corporate (1) | Eliminations (2) | Total | ||||||||||||||||
Fiscal 2021 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 127,760 | $ | 190,136 | $ | — | $ | — | $ | 317,896 | ||||||||||
Inter-segment | 351 | 207 | — | (558 | ) | — | ||||||||||||||
Operating (loss) income | (8,140 | ) | 115,250 | (14,164 | ) | 88 | 93,034 | |||||||||||||
Depreciation and amortization | 13,432 | 1,854 | — | — | 15,286 | |||||||||||||||
Capital expenditures | 15,827 | 2,485 | — | — | 18,312 | |||||||||||||||
Goodwill | 94,904 | 19,764 | — | — | 114,668 | |||||||||||||||
Other intangible assets, net | 84,149 | 2 | — | — | 84,151 | |||||||||||||||
Total assets | 339,208 | 110,536 | — | (22 | ) | 449,722 | ||||||||||||||
Fiscal 2020 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 121,132 | $ | 132,535 | $ | — | $ | — | $ | 253,667 | ||||||||||
Inter-segment | 326 | 261 | — | (587 | ) | — | ||||||||||||||
Operating (loss) income | 3,885 | 68,826 | (11,437 | ) | 50 | 61,324 | ||||||||||||||
Depreciation and amortization | 11,451 | 2,116 | — | — | 13,567 | |||||||||||||||
Capital expenditures | 1,850 | 1,449 | — | — | 3,299 | |||||||||||||||
Goodwill | 94,855 | 19,331 | — | — | 114,186 | |||||||||||||||
Other intangible assets, net | 83,179 | 18 | — | — | 83,197 | |||||||||||||||
Total assets | 306,812 | 98,483 | — | (34 | ) | 405,261 | ||||||||||||||
Fiscal 2019 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 136,682 | $ | 64,332 | $ | — | $ | — | $ | 201,014 | ||||||||||
Inter-segment | 462 | 361 | — | (823 | ) | — | ||||||||||||||
Operating (loss) income | 25,390 | 17,581 | (10,373 | ) | 101 | 32,699 | ||||||||||||||
Depreciation and amortization | 7,676 | 2,288 | — | — | 9,964 | |||||||||||||||
Capital expenditures | 2,049 | 1,748 | — | — | 3,797 | |||||||||||||||
Goodwill | 70,395 | 18,846 | — | — | 89,241 | |||||||||||||||
Other intangible assets, net | 59,807 | 436 | — | — | 60,243 | |||||||||||||||
Total assets | 255,169 | 70,392 | — | (83 | ) | 325,478 | ||||||||||||||
(1) | Includes Restructuring and Selected Legal Costs of $2,803, $2,080 and $2,596 for the years ended September 30, 2021, 2020 and 2019, respectively. |
(2) | Eliminations consist of inter-segment transactions. |
Year Ended September 30, | 2019 | 2018 | 2017 | |||||||||
United States | $ | 105,648 | $ | 120,555 | $ | 114,494 | ||||||
Italy | 10,898 | 10,398 | 9,004 | |||||||||
France | 2,442 | 2,353 | 1,845 | |||||||||
United Kingdom | 2,397 | 2,340 | 1,778 | |||||||||
Puerto Rico | 2,276 | 1,054 | 730 | |||||||||
Japan | 1,571 | 1,307 | 2,421 | |||||||||
Belgium | 1,465 | 1,711 | 1,507 | |||||||||
Holland | 1,411 | 1,454 | 1,290 | |||||||||
Other countries | 8,574 | 9,282 | 10,452 | |||||||||
Total Diagnostics | $ | 136,682 | $ | 150,454 | $ | 143,521 | ||||||
Year Ended September 30, | 2019 | 2018 | 2017 | |||||||||
United States | $ | 18,936 | 20,468 | $ | 19,595 | |||||||
Germany | 12,664 | 8,108 | 7,406 | |||||||||
China | 8,460 | 8,347 | 5,898 | |||||||||
United Kingdom | 4,714 | 5,201 | 5,579 | |||||||||
Spain | 4,415 | 4,187 | 3,209 | |||||||||
Australia | 3,461 | 3,631 | 4,002 | |||||||||
France | 2,200 | 2,040 | 1,792 | |||||||||
Japan | 1,624 | 1,932 | 1,375 | |||||||||
Italy | 1,357 | 971 | 700 | |||||||||
South Korea | 1,134 | 2,044 | 2,308 | |||||||||
Other countries | 5,367 | 6,188 | 5,386 | |||||||||
Total Life Science | $ | 64,332 | $ | 63,117 | $ | 57,250 | ||||||
Diagnostics | Life Science | Corporate (1) | Eliminations (2) | Total | ||||||||||||||||
Fiscal 2019 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 136,682 | $ | 64,332 | $ | — | $ | — | $ | 201,014 | ||||||||||
Inter-segment | 462 | 361 | — | (823 | ) | — | ||||||||||||||
Operating income | 22,399 | 20,572 | (10,373 | ) | 101 | 32,699 | ||||||||||||||
Depreciation and amortization | 7,676 | 2,288 | — | — | 9,964 | |||||||||||||||
Capital expenditures | 2,049 | 1,748 | — | — | 3,797 | |||||||||||||||
Goodwill | 70,395 | 18,846 | — | — | 89,241 | |||||||||||||||
Other intangible assets, net | 59,807 | 436 | — | — | 60,243 | |||||||||||||||
Total assets | 255,169 | 70,392 | — | (83 | ) | 325,478 | ||||||||||||||
Fiscal 2018 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 150,454 | $ | 63,117 | $ | — | $ | — | $ | 213,571 | ||||||||||
Inter-segment | 392 | 397 | — | (789 | ) | — | ||||||||||||||
Operating income | 32,569 | 13,799 | (15,076 | ) | 292 | 31,584 | ||||||||||||||
Depreciation and amortization | 6,557 | 2,131 | — | — | 8,688 | |||||||||||||||
Capital expenditures | 2,477 | 1,724 | — | — | 4,201 | |||||||||||||||
Goodwill | 35,213 | 19,424 | — | — | 54,637 | |||||||||||||||
Other intangible assets, net | 22,068 | 1,045 | — | — | 23,113 | |||||||||||||||
Total assets | 180,978 | 70,341 | — | 58 | 251,377 | |||||||||||||||
Fiscal 2017 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 143,521 | $ | 57,250 | $ | — | $ | — | $ | 200,771 | ||||||||||
Inter-segment | 389 | 537 | — | (926 | ) | — | ||||||||||||||
Operating income | 34,124 | 14,086 | (11,097 | ) | 269 | 37,382 | ||||||||||||||
Depreciation and amortization | 7,037 | 2,053 | — | — | 9,090 | |||||||||||||||
Capital expenditures | 2,554 | 1,913 | — | — | 4,467 | |||||||||||||||
Goodwill | 35,213 | 19,713 | — | — | 54,926 | |||||||||||||||
Other intangible assets, net | 24,973 | 1,731 | — | — | 26,704 | |||||||||||||||
Total assets | 180,226 | 69,938 | — | (387 | ) | 249,777 |
Year Ended September 30, | 2019 | 2018 | 2017 | |||||||||
Segment operating income | $ | 43,072 | $ | 46,660 | $ | 48,479 | ||||||
Corporate expenses | (10,373 | ) | (15,076 | ) | (11,097 | ) | ||||||
Interest income | 681 | 418 | 171 | |||||||||
Interest expense | (1,945 | ) | (1,520 | ) | (1,642 | ) | ||||||
Other, net | 122 | (102 | ) | 518 | ||||||||
Consolidated earnings before income taxes | $ | 31,557 | $ | 30,380 | $ | 36,429 | ||||||
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
Operating (loss) income: | ||||||||||||
Diagnostics segment | $ | (8,140 | ) | $ | 3,885 | $ | 25,390 | |||||
Life Science segment | 115,250 | 68,826 | 17,581 | |||||||||
Eliminations | 88 | 50 | 101 | |||||||||
Total reportable segment operating income | 107,198 | 72,761 | 43,072 | |||||||||
Corporate operating expenses | (14,164 | ) | (11,437 | ) | (10,373 | ) | ||||||
Interest income | — | 142 | 681 | |||||||||
Interest expense | (1,878 | ) | (2,632 | ) | (1,945 | ) | ||||||
RADx initiative grant income | 1,000 | 0 | 0 | |||||||||
Other, net | (1,705 | ) | 459 | 122 | ||||||||
Consolidated earnings before income taxes | $ | 90,451 | $ | 59,293 | $ | 31,557 | ||||||
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
Diagnostics | ||||||||||||
Customer A | 10 | % | 12 | % | 13 | % | ||||||
Customer B | 11 | % | 13 | % | 12 | % | ||||||
Customer C | 12 | % | 7 | % | 6 | % | ||||||
Life Science | ||||||||||||
Customer D | 6 | % | 6 | % | 18 | % | ||||||
Customer E | 3 | % | 13 | % | 7 | % | ||||||
Customer F | 13 | % | 11 | % | 2 | % |
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
U.S. and territories | $ | 99,636 | $ | 95,382 | $ | 107,890 | ||||||
Italy | 12,240 | 9,797 | 10,911 | |||||||||
France | 2,283 | 2,238 | 2,446 | |||||||||
United Kingdom | 2,197 | 2,312 | 2,396 | |||||||||
Belgium | 1,554 | 1,440 | 1,468 | |||||||||
Holland | 1,279 | 1,183 | 1,413 | |||||||||
Finland | 1,069 | 275 | 291 | |||||||||
Japan | 551 | 848 | 1,572 | |||||||||
Other countries | 6,951 | 7,657 | 8,295 | |||||||||
Total Diagnostics | $ | 127,760 | $ | 121,132 | $ | 136,682 | ||||||
Year Ended September 30, | 2021 | 2020 | 2019 | |||||||||
U.S. and territories | $ | 44,785 | $ | 36,689 | $ | 18,931 | ||||||
Germany | 18,460 | 14,190 | 12,663 | |||||||||
Finland | 17,936 | 2,518 | 500 | |||||||||
China | 13,559 | 19,047 | 8,464 | |||||||||
United Kingdom | 13,097 | 14,765 | 4,709 | |||||||||
Spain | 12,593 | 7,242 | 4,414 | |||||||||
France | 10,733 | 5,579 | 2,200 | |||||||||
South Korea | 9,242 | 1,908 | 1,134 | |||||||||
Australia | 9,115 | 5,957 | 3,458 | |||||||||
Italy | 7,516 | 4,067 | 1,357 | |||||||||
Turkey | 7,281 | 2,819 | 290 | |||||||||
Japan | 6,532 | 3,707 | 1,624 | |||||||||
India | 5,558 | 2,099 | 143 | |||||||||
Indonesia | 5,183 | 3,027 | 169 | |||||||||
Holland | 3,197 | 3,212 | 710 | |||||||||
Canada | 1,073 | 547 | 322 | |||||||||
Other countries | 4,276 | 5,162 | 3,244 | |||||||||
Total Life Science | $ | 190,136 | $ | 132,535 | $ | 64,332 | ||||||
As of September 30, | 2021 | 2020 | ||||||
Israel | $ | 80,416 | $ | 70,097 | ||||
United Kingdom | 30,027 | 27,373 | ||||||
Germany | 22,293 | 12,877 | ||||||
Canada | 15,236 | 9,865 | ||||||
Italy | 6,921 | 7,858 |
(16) | Commitments and |
(a) | Royalty Commitments - of $1,900 and , with approximately 80% and |
(b) | Purchase Commitments - e have purchase commitments primarily for |
(c) | Litigation - |
Indemnifications - |
(17) | Subsequent Events |
For the Quarter Ended in Fiscal 2019 | December 31 | March 31 | June 30 | September 30 | ||||||||||||
Net revenues | $ | 51,480 | $ | 50,248 | $ | 48,440 | $ | 50,846 | ||||||||
Gross profit | 31,572 | 29,338 | 28,259 | 29,156 | ||||||||||||
Net earnings | 8,106 | 7,094 | 5,079 | 4,103 | ||||||||||||
Basic earnings per common share | 0.19 | 0.17 | 0.12 | 0.10 | ||||||||||||
Diluted earnings per common share | 0.19 | 0.17 | 0.12 | 0.10 | ||||||||||||
Cash dividends per common share | 0.125 | 0.125 | — | — | ||||||||||||
For the Quarter Ended in Fiscal 2018 | December 31 | March 31 | June 30 | September 30 | ||||||||||||
Net revenues | $ | 52,283 | $ | 56,451 | $ | 51,737 | $ | 53,100 | ||||||||
Gross profit | 32,010 | 34,569 | 31,962 | 32,156 | ||||||||||||
Net earnings | 6,302 | 5,288 | 6,825 | 5,434 | ||||||||||||
Basic earnings per common share | 0.15 | 0.12 | 0.16 | 0.13 | ||||||||||||
Diluted earnings per common share | 0.15 | 0.12 | 0.16 | 0.13 | ||||||||||||
Cash dividends per common share | 0.125 | 0.125 | 0.125 | 0.125 | ||||||||||||
(a) | (1) and (2) FINANCIAL STATEMENTS AND SCHEDULES. |
(b) | (3) EXHIBITS. |
Exhibit Number | Description of Exhibit | |||
3.1 | ||||
3.2 | ||||
4.1 | ||||
10.1* | ||||
10.2* | |||||
10.3* | |||||
10.4* | |||||
10.5* | |||||
10.6* | |||||
10.7* | |||||
10.8* | |||||
10.9*† | |||||
10.10*† | |||||
10.11* | |||||
10.12 |
21 | |||||
23.1 | |||||
23.2 | |||||
31.1 | |||||
31.2 | |||||
32** | ||||
101.INS*** | ||||
Inline XBRL Instance Document | ||||
101.SCH*** | ||||
Inline XBRL Taxonomy Extension Schema | ||||
101.CAL*** | ||||
Inline XBRL Taxonomy Extension Calculation Linkbase | ||||
101.DEF*** | ||||
Inline XBRL Taxonomy Extension Definition Linkbase | ||||
101.LAB*** | ||||
Inline XBRL Taxonomy Extension Label Linkbase | ||||
101.PRE*** | ||||
Inline XBRL Taxonomy Extension Presentation Linkbase | ||||
104*** | ||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Management Compensatory Contracts |
** | Furnished, not filed |
*** | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. |
† | Schedules to and certain portions of these exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The omitted information is not material and would likely cause competitive harm to the Registrant if publicly disclosed. The Registrant hereby agrees to furnish a copy of any omitted schedule or other portion to the SEC upon request. |
MERIDIAN BIOSCIENCE, INC. | |||
By: | /s/ Jack Kenny | ||
Date: November | |||
Jack Kenny | |||
Chief Executive Officer |
Signature | Capacity | Date | ||||
/s/ Jack Kenny | Chief Executive Officer and Director | November | ||||
Jack Kenny | ||||||
/s/ Bryan T. Baldasare | Executive Vice President, Chief | November | ||||
Bryan T. Baldasare | Financial Officer and Secretary (Principal Financial and Accounting Officer) | |||||
/s/ David C. Phillips | Chairman of the Board | November | ||||
David C. Phillips | ||||||
/s/ James M. Anderson | Director | November | ||||
James M. Anderson | ||||||
/s/ Anthony P. Bihl III | Director | November 23, 2021 | ||||
Anthony P. Bihl III | ||||||
/s/ Dwight E. Ellingwood | Director | November | ||||
Dwight E. Ellingwood | ||||||
/s/ John C. McIlwraith | Director | November | ||||
John C. McIlwraith | ||||||
/s/ John M. Rice, Jr. | Director | November | ||||
John M. Rice, Jr. | ||||||
/s/ Catherine A. Sazdanoff | Director | November | ||||
Catherine A. Sazdanoff | ||||||
/s/ Felicia Williams | Director | November | ||||
Felicia Williams |
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions | Other (a) | Balance at End of Period | |||||||||||||||
Year Ended September 30, 2019: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 310 | $ | 347 | $ | (100 | ) | $ | (20 | ) | $ | 537 | ||||||||
Inventory realizability reserves | 1,971 | 774 | (448 | ) | (12 | ) | 2,285 | |||||||||||||
Valuation allowances – deferred taxes | 302 | 106 | — | — | 408 | |||||||||||||||
Year Ended September 30, 2018: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 307 | $ | 39 | $ | (32 | ) | $ | (4 | ) | $ | 310 | ||||||||
Inventory realizability reserves | 2,059 | 321 | (405 | ) | (4 | ) | 1,971 | |||||||||||||
Valuation allowances – deferred taxes | 342 | — | (40 | ) | — | 302 | ||||||||||||||
Year Ended September 30, 2017: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 334 | $ | 90 | $ | (134 | ) | $ | 17 | $ | 307 | |||||||||
Inventory realizability reserves | 2,680 | 35 | (661 | ) | 5 | 2,059 | ||||||||||||||
Valuation allowances – deferred taxes | 342 | — | — | — | 342 |
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions | Other (a) | Balance at End of Period | |||||||||||||||
Year Ended September 30, 2021: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 513 | $ | 583 | $ | (34 | ) | $ | 16 | $ | 1,078 | |||||||||
Inventory realizability reserves | 3,629 | 2,703 | (1,297 | ) | (38 | ) | 4,997 | |||||||||||||
Valuation allowances – deferred taxes | 895 | 729 | 0 | — | 1,624 | |||||||||||||||
Year Ended September 30, 2020: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 537 | $ | 34 | $ | (75 | ) | $ | 17 | $ | 513 | |||||||||
Inventory realizability reserves | 2,441 | 1,775 | (564 | ) | (23 | ) | 3,629 | |||||||||||||
Valuation allowances – deferred taxes | 666 | 335 | (106 | ) | — | 895 | ||||||||||||||
Year Ended September 30, 2019: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 310 | $ | 347 | $ | (100 | ) | $ | (20 | ) | $ | 537 | ||||||||
Inventory realizability reserves | 1,971 | 930 | (448 | ) | (12 | ) | 2,441 | |||||||||||||
Valuation allowances – deferred taxes | 302 | 364 | — | 0 | 666 |
(a) | Balances reflect the effects of currency translation. |