☒ | QUARTERLY 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(s) | Name of each exchange on which registered | ||
Common Stock, no par value | VIVO | NASDAQ Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Class | Outstanding July 31, 2022 | |
Common Stock, no par value |
Page(s) | ||||||
PART I. | ||||||
Item 1. | ||||||
1 | ||||||
2 | ||||||
3 | ||||||
4-5 | ||||||
6 | ||||||
Item 2. | ||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 28 | ||||
Item 4. | Controls and Procedures | 28 | ||||
Item 1. | Legal Proceedings | 29 | ||||
Item 1A. | Risk Factors | 29 | ||||
Item 6. | Exhibits | 30 | ||||
31 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
NET REVENUES | $ | 63,511 | $ | 84,797 | $ | 241,692 | $ | 189,514 | ||||||||
COST OF SALES | 26,400 | 28,814 | 85,261 | 71,334 | ||||||||||||
GROSS PROFIT | 37,111 | 55,983 | 156,431 | 118,180 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Research and development | 6,083 | 6,668 | 17,799 | 16,746 | ||||||||||||
Selling and marketing | 6,209 | 6,282 | 19,770 | 19,539 | ||||||||||||
General and administrative | 11,964 | 12,624 | 36,827 | 32,236 | ||||||||||||
Acquisition-related costs | 300 | 1,641 | 300 | 3,428 | ||||||||||||
Change in fair value of acquisition consideration | (3,563 | ) | (6,124 | ) | (5,505 | ) | (7,428 | ) | ||||||||
Restructuring costs | 0 | 93 | 0 | 620 | ||||||||||||
Selected legal costs | 438 | 134 | 2,695 | 1,189 | ||||||||||||
Total operating expenses | 21,431 | 21,318 | 71,886 | 66,330 | ||||||||||||
OPERATING INCOME | 15,680 | 34,665 | 84,545 | 51,850 | ||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest income | 0 | 3 | 15 | 137 | ||||||||||||
Interest expense | (444 | ) | (703 | ) | (1,450 | ) | (2,002 | ) | ||||||||
RADx grant income | 0 | 0 | 1,000 | 0 | ||||||||||||
Other, net | 59 | 908 | (1,515 | ) | 1,561 | |||||||||||
Total other income (expense) | (385 | ) | 208 | (1,950 | ) | (304 | ) | |||||||||
EARNINGS BEFORE INCOME TAXES | 15,295 | 34,873 | 82,595 | 51,546 | ||||||||||||
INCOME TAX PROVISION | 3,626 | 7,366 | 17,845 | 11,853 | ||||||||||||
NET EARNINGS | $ | 11,669 | $ | 27,507 | $ | 64,750 | $ | 39,693 | ||||||||
BASIC EARNINGS PER COMMON SHARE | $ | 0.27 | $ | 0.64 | $ | 1.50 | $ | 0.93 | ||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.26 | $ | 0.64 | $ | 1.47 | $ | 0.92 | ||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 43,334 | 42,837 | 43,226 | 42,819 | ||||||||||||
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS | 763 | 436 | 780 | 219 | ||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED | 44,097 | 43,273 | 44,006 | 43,038 | ||||||||||||
ANTI-DILUTIVE SECURITIES: | ||||||||||||||||
Common share options and restricted share units | 190 | 854 | 180 | 1,298 | ||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
NET REVENUES | $ | 67,771 | $ | 63,511 | $ | 267,343 | $ | 241,692 | ||||||||
COST OF SALES | 31,043 | 26,400 | 112,979 | 85,261 | ||||||||||||
GROSS PROFIT | 36,728 | 37,111 | 154,364 | 156,431 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Research and development | 6,043 | 6,083 | 17,928 | 17,799 | ||||||||||||
Selling and marketing | 8,178 | 6,209 | 23,433 | 19,770 | ||||||||||||
General and administrative | 13,149 | 11,964 | 46,364 | 36,827 | ||||||||||||
Acquisition and transaction related costs | 4,227 | 300 | 4,295 | 300 | ||||||||||||
Litigation and select legal costs | 11,812 | 438 | 12,601 | 2,695 | ||||||||||||
Change in fair value of acquisition consideration | — | (3,563 | ) | — | (5,505 | ) | ||||||||||
Total operating expenses | 43,409 | 21,431 | 104,621 | 71,886 | ||||||||||||
OPERATING INCOME (LOSS) | (6,681 | ) | 15,680 | 49,743 | 84,545 | |||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest income | 2 | — | 5 | 15 | ||||||||||||
Interest expense | (256 | ) | (444 | ) | (969 | ) | (1,450 | ) | ||||||||
RADx grant income | — | — | — | 1,000 | ||||||||||||
Other, net | 333 | 59 | 905 | (1,515 | ) | |||||||||||
Total other income (expense), net | 79 | (385 | ) | (59 | ) | (1,950 | ) | |||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES | (6,602 | ) | 15,295 | 49,684 | 82,595 | |||||||||||
INCOME TAX PROVISION | 736 | 3,626 | 12,930 | 17,845 | ||||||||||||
NET EARNINGS (LOSS) | $ | (7,338 | ) | $ | 11,669 | $ | 36,754 | $ | 64,750 | |||||||
BASIC EARNINGS (LOSS) PER COMMON SHARE | $ | (0.17 | ) | $ | 0.27 | $ | 0.84 | $ | 1.50 | |||||||
DILUTED EARNINGS (LOSS) PER COMMON SHARE | $ | (0.16 | ) | $ | 0.26 | $ | 0.83 | $ | 1.47 | |||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 43,586 | 43,334 | 43,526 | 43,226 | ||||||||||||
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS | 888 | 763 | 704 | 780 | ||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED | 44,474 | 44,097 | 44,230 | 44,006 | ||||||||||||
ANTI-DILUTIVE SECURITIES: | ||||||||||||||||
Common share options and restricted share units | 79 | 190 | 188 | 180 | ||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
NET EARNINGS | $ | 11,669 | $ | 27,507 | $ | 64,750 | $ | 39,693 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | 41 | 597 | 3,421 | 579 | ||||||||||||
Unrealized gain (loss) on cash flow hedge | 9 | (390 | ) | 469 | (703 | ) | ||||||||||
Reclassification of amortization of gain on cash flow hedge | 0 | (77 | ) | (154 | ) | (231 | ) | |||||||||
Income taxes related to items of other comprehensive income (loss) | (2 | ) | 115 | (68 | ) | 230 | ||||||||||
Other comprehensive income (loss), net of tax | 48 | 245 | 3,668 | (125 | ) | |||||||||||
COMPREHENSIVE INCOME | $ | 11,717 | $ | 27,752 | $ | 68,418 | $ | 39,568 | ||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
NET EARNINGS (LOSS) | $ | (7,338 | ) | $ | 11,669 | $ | 36,754 | $ | 64,750 | |||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | (5,166 | ) | 41 | (7,044 | ) | 3,421 | ||||||||||
Reclassification of realized gain on cash flow hedge | — | — | (935 | ) | — | |||||||||||
Unrealized gain on cash flow hedge | 216 | 9 | 2,201 | 469 | ||||||||||||
Reclassification of amortization of gain on cash flow hedge | — | — | — | (154 | ) | |||||||||||
Income taxes related to items of other comprehensive income (loss) | (53 | ) | (2 | ) | (310 | ) | (68 | ) | ||||||||
Other comprehensive income (loss), net of tax | (5,003 | ) | 48 | (6,088 | ) | 3,668 | ||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | (12,341 | ) | $ | 11,717 | $ | 30,666 | $ | 68,418 | |||||||
Nine Months Ended June 30, | 2021 | 2020 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings | $ | 64,750 | $ | 39,693 | ||||
Non-cash items included in net earnings: | ||||||||
Depreciation of property, plant and equipment | 4,729 | 3,762 | ||||||
Amortization of intangible assets | 6,453 | 5,604 | ||||||
Stock compensation expense | 3,170 | 2,809 | ||||||
Deferred income taxes | (35 | ) | 2,214 | |||||
Change in fair value of acquisition consideration | (5,505 | ) | (7,428 | ) | ||||
Change in the following: | ||||||||
Accounts receivable | (2,363 | ) | (6,352 | ) | ||||
Inventories | (11,831 | ) | (17,828 | ) | ||||
Prepaid expenses and other current assets | (1,965 | ) | 68 | |||||
Accounts payable and accrued expenses | (2,252 | ) | 4,422 | |||||
Income taxes payable | (2,317 | ) | 3,401 | |||||
Other, net | (448 | ) | 1,315 | |||||
Net cash provided by operating activities | 52,386 | 31,680 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property, plant and equipment | (16,407 | ) | (2,471 | ) | ||||
Payment of acquisition consideration holdback | (5,000 | ) | — | |||||
Acquisition of Exalenz, net of cash acquired | — | (51,299 | ) | |||||
Net cash used in investing activities | (21,407 | ) | (53,770 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Payment on revolving credit facility | (18,824 | ) | (27,000 | ) | ||||
Proceeds from revolving credit facility | — | 50,000 | ||||||
Payment of debt issuance costs | — | (116 | ) | |||||
Proceeds from exercise of stock options | 2,939 | — | ||||||
Net cash (used in) provided by financing activities | (15,885 | ) | 22,884 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1,404 | 254 | ||||||
Net Increase in Cash and Cash Equivalents | 16,498 | 1,048 | ||||||
Cash and Cash Equivalents at Beginning of Period | 53,514 | 62,397 | ||||||
Cash and Cash Equivalents at End of Period | $ | 70,012 | $ | 63,445 | ||||
Nine Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings | $ | 36,754 | $ | 64,750 | ||||
Non-cash items included in net earnings: | ||||||||
Depreciation of property, plant and equipment | 5,009 | 4,729 | ||||||
Amortization of intangible assets | 7,433 | 6,453 | ||||||
Stock-based compensation | 5,006 | 3,170 | ||||||
Deferred income taxes | 2,248 | (35 | ) | |||||
Estimated litigation costs | 10,000 | — | ||||||
Change in fair value of acquisition consideration | — | (5,505 | ) | |||||
Change in the following: | ||||||||
Accounts receivable | 7,933 | (2,363 | ) | |||||
Inventories | 4,473 | (11,831 | ) | |||||
Prepaid expenses and other current assets | (1,401 | ) | (1,965 | ) | ||||
Accounts payable and accrued expenses | 4,800 | (2,252 | ) | |||||
Income taxes payable | (1,515 | ) | (2,317 | ) | ||||
Other, net | (366 | ) | (448 | ) | ||||
Net cash provided by operating activities | 80,374 | 52,386 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property, plant and equipment | (5,138 | ) | (16,407 | ) | ||||
Acquisition, net of cash acquired and holdback | (3,750 | ) | — | |||||
Payment of acquisition consideration holdback | — | (5,000 | ) | |||||
Net cash used in investing activities | (8,888 | ) | (21,407 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Payment on revolving credit facility | (35,000 | ) | (18,824 | ) | ||||
Payment of deferred financing costs | (404 | ) | — | |||||
Proceeds from exercise of stock options | 2,438 | 2,939 | ||||||
Employee taxes paid upon stock option exercises and net share settlement of restricted share units | (865 | ) | — | |||||
Net cash used in financing activities | (33,831 | ) | (15,885 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (3,939 | ) | 1,404 | |||||
Net Increase in Cash and Cash Equivalents | 33,716 | 16,498 | ||||||
Cash and Cash Equivalents at Beginning of Period | 49,771 | 53,514 | ||||||
Cash and Cash Equivalents at End of Period | $ | 83,487 | $ | 70,012 | ||||
June 30, 2021 (Unaudited) | September 30, 2020 | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 70,012 | $ | 53,514 | ||||
Accounts receivable, less allowances of $514 and $513, respectively | 42,258 | 38,512 | ||||||
Inventories, net | 71,813 | 61,264 | ||||||
Prepaid expenses and other current assets | 10,896 | 8,900 | ||||||
Total current assets | 194,979 | 162,190 | ||||||
PROPERTY, PLANT AND EQUIPMENT, at Cost | ||||||||
Land | 993 | 991 | ||||||
Buildings and improvements | 32,372 | 32,188 | ||||||
Machinery, equipment and furniture | 77,429 | 69,854 | ||||||
Construction in progress | 11,555 | 1,200 | ||||||
Subtotal | 122,349 | 104,233 | ||||||
Less: accumulated depreciation and amortization | 77,669 | 73,113 | ||||||
Property, plant and equipment, net | 44,680 | 31,120 | ||||||
OTHER ASSETS | ||||||||
Goodwill | 115,315 | 114,186 | ||||||
Other intangible assets, net | 76,744 | 83,197 | ||||||
Right-of-use | 6,384 | 6,336 | ||||||
Deferred income taxes | 8,073 | 7,647 | ||||||
Other assets | 395 | 585 | ||||||
Total other assets | 206,911 | 211,951 | ||||||
TOTAL ASSETS | $ | 446,570 | $ | 405,261 | ||||
June 30, 2022 (Unaudited) | September 30, 2021 | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 83,487 | $ | 49,771 | ||||
Accounts receivable, less allowances of $1,071 and $1,078, respectively | 44,911 | 53,568 | ||||||
Inventories, net | 70,105 | 76,842 | ||||||
Prepaid expenses and other current assets | 13,966 | 12,626 | ||||||
Total current assets | 212,469 | 192,807 | ||||||
PROPERTY, PLANT AND EQUIPMENT, at Cost | ||||||||
Land | 976 | 989 | ||||||
Buildings and improvements | 32,917 | 32,765 | ||||||
Machinery, equipment and furniture | 79,939 | 78,410 | ||||||
Construction in progress | 9,049 | 9,991 | ||||||
Subtotal | 122,881 | 122,155 | ||||||
Less: accumulated depreciation and amortization | 79,712 | 78,941 | ||||||
Property, plant and equipment, net | 43,169 | 43,214 | ||||||
OTHER ASSETS | ||||||||
Goodwill | 117,201 | 114,668 | ||||||
Other intangible assets, net | 76,607 | 84,151 | ||||||
Right-of-use | 6,680 | 5,786 | ||||||
Deferred income taxes | 8,043 | 8,731 | ||||||
Other assets | 1,759 | 365 | ||||||
Total other assets | 210,290 | 213,701 | ||||||
TOTAL ASSETS | $ | 465,928 | $ | 449,722 | ||||
June 30, 2021 (Unaudited) | September 30, 2020 | |||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 13,103 | $ | 11,969 | ||||
Accrued employee compensation costs | 14,026 | 16,661 | ||||||
Current portion of acquisition consideration | 0 | 12,619 | ||||||
Current operating lease obligations | 2,059 | 1,789 | ||||||
Current government grant obligations | 735 | 600 | ||||||
Other accrued expenses | 4,870 | 5,362 | ||||||
Income taxes payable | 1,909 | 3,524 | ||||||
Total current liabilities | 36,702 | 52,524 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Acquisition consideration | 15,404 | 13,290 | ||||||
Post-employment benefits | 2,314 | 2,493 | ||||||
Fair value of interest rate swaps | 245 | 713 | ||||||
Long-term operating lease obligations | 4,477 | 4,678 | ||||||
Long-term debt | 50,000 | 68,824 | ||||||
Government grant obligations | 10,512 | 10,524 | ||||||
Long-term income taxes payable | 374 | 549 | ||||||
Deferred income taxes | 4,195 | 3,804 | ||||||
Other non-current liabilities | 191 | 233 | ||||||
Total non-current liabilities | 87,712 | 105,108 | ||||||
COMMITMENTS AND CONTINGENCIES | 0 | 0 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred stock, 0 par value; 1,000,000 shares authorized; NaN issued | 0— | 0— | ||||||
Common shares, 0 par value; 71,000,000 shares authorized, 43,352,998 and 43,068,842 shares issued, respectively | 0— | 0— | ||||||
Additional paid-in capital | 146,304 | 140,195 | ||||||
Retained earnings | 174,044 | 109,294 | ||||||
Accumulated other comprehensive income (loss) | 1,808 | (1,860 | ) | |||||
Total shareholders’ equity | 322,156 | 247,629 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 446,570 | $ | 405,261 | ||||
June 30, 2022 (Unaudited) | September 30, 2021 | |||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 15,359 | $ | 11,701 | ||||
Accrued employee compensation costs | 19,697 | 16,853 | ||||||
Accrued product recall costs | 2,359 | 5,100 | ||||||
Accrued estimated litigation cost s | 10,000 | — | ||||||
Current operating lease obligations | 2,025 | 1,990 | ||||||
Current government grant obligations | 1,200 | 638 | ||||||
Other accrued expenses | 7,632 | 7,027 | ||||||
Income taxes payable | 2,075 | 3,848 | ||||||
Total current liabilities | 60,347 | 47,157 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Post-employment benefits | 2,032 | 2,253 | ||||||
Long-term operating lease obligations | 4,773 | 3,932 | ||||||
Long-term debt | 25,000 | 60,000 | ||||||
Government grant obligations | 4,403 | 5,176 | ||||||
Long-term income taxes payable | 527 | 469 | ||||||
Deferred income taxes | 2,644 | 1,055 | ||||||
Other non-current liabilities | 655 | 1,378 | ||||||
Total non-current liabilities | 40,034 | 74,263 | ||||||
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, 43,718,576 and 43,361,898 shares issued and outstanding, respectively | 0— | 0— | ||||||
Additional paid-in capital | 154,241 | 147,403 | ||||||
Treasury stock, at cost; 9,655 shares | (259 | ) | — | |||||
Retained earnings | 217,455 | 180,701 | ||||||
Accumulated other comprehensive income (loss) | (5,890 | ) | 198 | |||||
Total shareholders’ equity | 365,547 | 328,302 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 465,928 | $ | 449,722 | ||||
Common Shares Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
THREE MONTHS ENDED JUNE 30, 2021 | ||||||||||||||||||||
Balance at March 31, 2021 | 43,329 | $ | 145,338 | $ | 162,375 | $ | 1,760 | $ | 309,473 | |||||||||||
Conversion of restricted share units and exercise of stock options | 24 | 87 | — | — | 87 | |||||||||||||||
Stock compensation expense | — | 879 | — | — | 879 | |||||||||||||||
Net earnings | — | — | 11,669 | — | 11,669 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 41 | 41 | |||||||||||||||
Hedging activity, net of tax | — | — | — | 7 | 7 | |||||||||||||||
Balance at June 30, 2021 | 43,353 | $ | 146,304 | $ | 174,044 | $ | 1,808 | $ | 322,156 | |||||||||||
THREE MONTHS ENDED JUNE 30, 2020 | ||||||||||||||||||||
Balance at March 31, 2020 | 42,831 | $ | 134,584 | $ | 75,294 | $ | (5,345 | ) | $ | 204,533 | ||||||||||
Conversion of restricted share units and exercise of stock options | 8 | — | — | — | — | |||||||||||||||
Stock compensation expense | — | 1,050 | — | — | 1,050 | |||||||||||||||
Net earnings | — | — | 27,507 | — | 27,507 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 597 | 597 | |||||||||||||||
Hedging activity, net of tax | — | — | — | (352 | ) | (352 | ) | |||||||||||||
Balance at June 30, 2020 | 42,839 | $ | 135,634 | $ | 102,801 | $ | (5,100 | ) | $ | 233,335 | ||||||||||
Common Shares Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
NINE MONTHS ENDED JUNE 30, 2021 | ||||||||||||||||||||
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 | 284 | 2,939 | — | — | 2,939 | |||||||||||||||
Stock compensation expense | — | 3,170 | — | — | 3,170 | |||||||||||||||
Net earnings | — | — | 64,750 | — | 64,750 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 3,421 | 3,421 | |||||||||||||||
Hedging activity, net of tax | — | — | — | 247 | 247 | |||||||||||||||
Balance at June 30, 2021 | 43,353 | $ | 146,304 | $ | 174,044 | $ | 1,808 | $ | 322,156 | |||||||||||
NINE MONTHS ENDED JUNE 30, 2020 | ||||||||||||||||||||
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 | 127 | (9 | ) | — | — | (9 | ) | |||||||||||||
Stock compensation expense | — | 2,809 | — | — | 2,809 | |||||||||||||||
Net earnings | — | — | 39,693 | — | 39,693 | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 579 | 579 | |||||||||||||||
Hedging activity, net of tax | — | — | — | (704 | ) | (704 | ) | |||||||||||||
Balance at June 30, 2020 | 42,839 | $ | 135,634 | $ | 102,801 | $ | (5,100 | ) | $ | 233,335 | ||||||||||
Common Shares | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comp. Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||
Sh. | Amt. | |||||||||||||||||||||||||||
THREE MONTHS ENDED JUNE 30, 2022 | ||||||||||||||||||||||||||||
Balance at March 31, 2022 | 43,570 | $ | 150,985 | (10 | ) | $ | (259 | ) | $ | 224,793 | $ | (887 | ) | $ | 374,632 | |||||||||||||
Conversion of restricted share units and exercise of stock options | 149 | 1,639 | — | — | — | — | 1,639 | |||||||||||||||||||||
Stock compensation expense | — | 1,617 | — | — | — | — | 1,617 | |||||||||||||||||||||
Net loss | — | — | — | — | (7,338 | ) | — | (7,338 | ) | |||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (5,166 | ) | (5,166 | ) | |||||||||||||||||||
Hedging activity, net of tax | — | — | — | — | — | 163 | 163 | |||||||||||||||||||||
Balance at June 30, 2022 | 43,719 | $ | 154,241 | (10 | ) | $ | (259 | ) | $ | 217,455 | $ | (5,890 | ) | $ | 365,547 | |||||||||||||
THREE MONTHS ENDED JUNE 30, 2021 | ||||||||||||||||||||||||||||
Balance at March 31, 2021 | 43,329 | $ | 145,338 | — | $ | — | $ | 162,375 | $ | 1,760 | $ | 309,473 | ||||||||||||||||
Conversion of restricted share units and exercise of stock options | 24 | 87 | — | — | — | — | 87 | |||||||||||||||||||||
Stock compensation expense | — | 879 | — | — | — | — | 879 | |||||||||||||||||||||
Net earnings | — | — | — | — | 11,669 | — | 11,669 | |||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 41 | 41 | |||||||||||||||||||||
Hedging activity, net of tax | — | — | — | — | — | 7 | 7 | |||||||||||||||||||||
Balance at June 30, 2021 | 43,353 | $ | 146,304 | — | $ | — | $ | 174,044 | $ | 1,808 | $ | 322,156 | ||||||||||||||||
Common Shares Issued | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comp. Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||
Sh. | Amt. | |||||||||||||||||||||||||||
NINE MONTHS ENDED JUNE 30, 2022 | ||||||||||||||||||||||||||||
Balance at September 30, 2021 | 43,362 | $ | 147,403 | — | $ | — | $ | 180,701 | $ | 198 | $ | 328,302 | ||||||||||||||||
Conversion of restricted share units and exercise of stock options | 357 | 1,832 | (10 | ) | (259 | ) | — | — | 1,573 | |||||||||||||||||||
Stock compensation expense | — | 5,006 | — | — | — | — | 5,006 | |||||||||||||||||||||
Net earnings | — | — | — | — | 36,754 | — | 36,754 | |||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (7,044 | ) | (7,044 | ) | |||||||||||||||||||
Hedging activity, net of tax | — | — | — | — | — | 956 | 956 | |||||||||||||||||||||
Balance at June 30, 2022 | 43,719 | $ | 154,241 | (10 | ) | $ | (259 | ) | $ | 217,455 | $ | (5,890 | ) | $ | 365,547 | |||||||||||||
NINE MONTHS ENDED JUNE 30, 2021 | ||||||||||||||||||||||||||||
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 | 284 | 2,939 | — | — | — | — | 2,939 | |||||||||||||||||||||
Stock compensation expense | — | 3,170 | — | — | — | — | 3,170 | |||||||||||||||||||||
Net earnings | — | — | — | — | 64,750 | — | 64,750 | |||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 3,421 | 3,421 | |||||||||||||||||||||
Hedging activity, net of tax | — | — | — | — | — | 247 | 247 | |||||||||||||||||||||
Balance at June 30, 2021 | 43,353 | $ | 146,304 | — | $ | — | $ | 174,044 | $ | 1,808 | $ | 322,156 | ||||||||||||||||
1. | Nature of Business |
2. | Basis of Presentation |
3. | Significant Accounting Policies |
(a) | Recent Accounting Pronouncements – |
(b) | Reclassifications – |
4. | Revenue Recognition |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Inc (Dec) | 2021 | 2020 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Americas | $ | 24,543 | $ | 17,575 | 40 | % | $ | 73,367 | $ | 72,980 | 1 | % | ||||||||||||
EMEA | 6,251 | 3,576 | 75 | % | 18,352 | 16,853 | 9 | % | ||||||||||||||||
ROW | 395 | 447 | (12 | )% | 1,740 | 1,498 | 16 | % | ||||||||||||||||
Total Diagnostics | 31,189 | 21,598 | 44 | % | 93,459 | 91,331 | 2 | % | ||||||||||||||||
Life Science- | ||||||||||||||||||||||||
Americas | 7,419 | 22,007 | (66 | )% | 39,661 | 30,638 | 29 | % | ||||||||||||||||
EMEA | 15,723 | 26,227 | (40 | )% | 70,084 | 41,305 | 70 | % | ||||||||||||||||
ROW | 9,180 | 14,965 | (39 | )% | 38,488 | 26,240 | 47 | % | ||||||||||||||||
Total Life Science | 32,322 | 63,199 | (49 | )% | 148,233 | 98,183 | 51 | % | ||||||||||||||||
Consolidated | $ | 63,511 | $ | 84,797 | (25 | )% | $ | 241,692 | $ | 189,514 | 28 | % | ||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2022 | 2021 | Inc (Dec) | 2022 | 2021 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Americas | $ | 38,158 | $ | 24,543 | 55 | % | $ | 98,322 | $ | 73,367 | 34 | % | ||||||||||||
EMEA | 3,836 | 6,251 | (39 | )% | 17,042 | 18,352 | (7 | )% | ||||||||||||||||
ROW | 415 | 395 | 5 | % | 1,352 | 1,740 | (22 | )% | ||||||||||||||||
Total Diagnostics | 42,409 | 31,189 | 36 | % | 116,716 | 93,459 | 25 | % | ||||||||||||||||
Life Science- | ||||||||||||||||||||||||
Americas | 7,314 | 7,419 | (1 | )% | 25,833 | 39,661 | (35 | )% | ||||||||||||||||
EMEA | 8,200 | 15,723 | (48 | )% | 70,188 | 70,084 | — | % | ||||||||||||||||
ROW | 9,848 | 9,180 | 7 | % | 54,606 | 38,488 | 42 | % | ||||||||||||||||
Total Life Science | 25,362 | 32,322 | (22 | )% | 150,627 | 148,233 | 2 | % | ||||||||||||||||
Consolidated | $ | 67,771 | $ | 63,511 | 7 | % | $ | 267,343 | $ | 241,692 | 11 | % | ||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Inc (Dec) | 2021 | 2020 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Molecular assays | $ | 4,383 | $ | 3,182 | 38 | % | $ | 13,368 | $ | 17,259 | (23 | )% | ||||||||||||
Non-molecular assays | 26,806 | 18,416 | 46 | % | 80,091 | 74,072 | 8 | % | ||||||||||||||||
Total Diagnostics | $ | 31,189 | $ | 21,598 | 44 | % | $ | 93,459 | $ | 91,331 | 2 | % | ||||||||||||
Life Science- | ||||||||||||||||||||||||
Molecular reagents | $ | 20,385 | $ | 38,791 | (47 | )% | $ | 104,016 | $ | 55,703 | 87 | % | ||||||||||||
Immunological reagents | 11,937 | 24,408 | (51 | )% | 44,217 | 42,480 | 4 | % | ||||||||||||||||
Total Life Science | $ | 32,322 | $ | 63,199 | (49 | )% | $ | 148,233 | $ | 98,183 | 51 | % | ||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2022 | 2021 | Inc (Dec) | 2022 | 2021 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Molecular assays | $ | 4,876 | $ | 4,383 | 11 | % | $ | 14,039 | $ | 13,368 | 5 | % | ||||||||||||
Non-molecular assays | 37,533 | 26,806 | 40 | % | 102,677 | 80,091 | 28 | % | ||||||||||||||||
Total Diagnostics | 42,409 | 31,189 | 36 | % | 116,716 | 93,459 | 25 | % | ||||||||||||||||
Life Science- | ||||||||||||||||||||||||
Molecular reagents | 7,743 | 20,385 | (62 | )% | 79,531 | 104,016 | (24 | )% | ||||||||||||||||
Immunological reagents | 17,619 | 11,937 | 48 | % | 71,096 | 44,217 | 61 | % | ||||||||||||||||
Total Life Science | 25,362 | 32,322 | (22 | )% | 150,627 | 148,233 | 2 | % | ||||||||||||||||
Consolidated | $ | 67,771 | $ | 63,511 | 7 | % | $ | 267,343 | $ | 241,692 | 11 | % | ||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2022 | 2021 | Inc (Dec) | 2022 | 2021 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Gastrointestinal assays | $ | 22,715 | $ | 17,844 | 27 | % | $ | 64,704 | $ | 48,962 | 32 | % | ||||||||||||
Respiratory illness assays | 5,488 | 3,742 | 47 | % | 21,359 | 12,233 | 75 | % | ||||||||||||||||
Blood chemistry assays | 6,431 | 4,254 | 51 | % | 9,762 | 13,006 | (25 | )% | ||||||||||||||||
Other | 7,775 | 5,349 | 45 | % | 20,891 | 19,258 | 8 | % | ||||||||||||||||
Total Diagnostics | $ | 42,409 | 31,189 | 36 | % | $ | 116,716 | 93,459 | 25 | % | ||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Inc (Dec) | 2021 | 2020 | Inc (Dec) | |||||||||||||||||||
Diagnostics- | ||||||||||||||||||||||||
Gastrointestinal assays | $ | 17,844 | $ | 9,584 | 86 | % | $ | 48,962 | $ | 39,644 | 24 | % | ||||||||||||
Respiratory illness assays | 3,742 | 5,052 | (26 | )% | 12,233 | 23,664 | (48 | )% | ||||||||||||||||
Blood chemistry assays | 4,254 | 3,364 | 26 | % | 13,006 | 12,508 | 4 | % | ||||||||||||||||
Other | 5,349 | 3,598 | 49 | % | 19,258 | 15,515 | 24 | % | ||||||||||||||||
Total Diagnostics | $ | 31,189 | $ | 21,598 | 44 | % | $ | 93,459 | $ | 91,331 | 2 | % | ||||||||||||
5. | Fair Value Measurements |
Fair Value Measurements Using Inputs Considered as | ||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Interest rate swaps - | ||||||||||||||||
As of June 30, 2021 | $ | (245 | ) | $ | 0 | $ | (245 | ) | $ | 0 | ||||||
As of September 30, 2020 | $ | (713 | ) | $ | 0 | $ | (713 | ) | $ | 0 | ||||||
Contingent consideration - | ||||||||||||||||
As of June 30, 2021 | $ | (15,404 | ) | $ | 0 | $ | 0 | $ | (15,404 | ) | ||||||
As of September 30, 2020 | $ | (20,909 | ) | $ | 0 | $ | 0 | $ | (20,909 | ) |
6. | Business Combinations |
Three Months | Nine Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenues | $ | 4,836 | $ | 1,308 | $ | 10,718 | $ | 1,308 | ||||||||
Net loss | $ | (497 | ) | (932 | ) | (2,236 | ) | (932 | ) |
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 | 24,798 | |||
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 | 1,311 | |||
Deferred tax assets, net | 6,780 | |||
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 | ||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net revenues | $ | 67,771 | $ | 69,920 | $ | 267,343 | $ | 258,777 | ||||||||
Net earnings (loss) | (7,338 | ) | 13,685 | 36,754 | 69,737 |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenues | $ | 63,511 | $ | 85,083 | $ | 241,692 | $ | 196,978 | ||||||||
Net earnings | 11,669 | 27,403 | 64,750 | 38,433 |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Adjustments to net revenues | ||||||||||||||||
Exalenz pre-acquisition net revenues | $ | 0 | $ | 286 | $ | 0 | $ | 7,464 | ||||||||
Adjustments to net earnings | ||||||||||||||||
Exalenz pre-acquisition net loss | $ | 0 | $ | (4,919 | ) | $ | 0 | $ | (6,423 | ) | ||||||
Pro forma adjustments: | ||||||||||||||||
Meridian acquisition-related costs | 0 | 1,641 | 0 | 3,428 | ||||||||||||
Exalenz transaction-related costs | 0 | 4,104 | 0 | 4,550 | ||||||||||||
Gain on Exalenz purchase price currency contracts | 0 | (845 | ) | 0 | (845 | ) | ||||||||||
Remove net impact of non-continuing personnel, locations or activities | 0 | (446 | ) | 0 | (301 | ) | ||||||||||
Incremental depreciation and amortization | 0 | (240 | ) | 0 | (2,064 | ) | ||||||||||
Interest, net | 0 | 444 | 0 | (328 | ) | |||||||||||
Tax effects of pro forma adjustments and recognizing benefit on resulting Exalenz losses | 0 | 157 | 0 | 723 | ||||||||||||
Total adjustments to net earnings | $ | 0 | $ | (104 | ) | $ | 0 | $ | (1,260 | ) | ||||||
7. |
June 30, 2021 | September 30, 2020 | |||||||
Institutional money market funds | $ | 1,017 | $ | 1,017 | ||||
Cash on hand, unrestricted | 68,995 | 52,497 | ||||||
Total | $ | 70,012 | $ | 53,514 | ||||
8. | Cash and Cash Equivalents |
June 30, 2022 | September 30, 2021 | |||||||
Institutional money market funds | $ | 1,021 | $ | 1,020 | ||||
Cash on hand, unrestricted | 82,466 | 48,751 | ||||||
Total | $ | 83,487 | $ | 49,771 | ||||
9. | Inventories, Net |
June 30, 2021 | September 30, 2020 | |||||||||||||||
June 30, 2022 | September 30, 2021 | |||||||||||||||
Raw materials | $ | 18,654 | $ | 11,966 | $ | 15,920 | $ | 14,843 | ||||||||
Work-in-process | 23,570 | 19,477 | 21,492 | 25,072 | ||||||||||||
Finished goods - instruments | 1,975 | 1,594 | 2,259 | 2,260 | ||||||||||||
Finished goods - kits and reagents | 27,614 | 28,227 | 30,434 | 34,667 | ||||||||||||
Total | $ | 71,813 | $ | 61,264 | $ | 70,105 | $ | 76,842 | ||||||||
Goodwill and Other Intangible Assets, Net |
June 30, 2022 | September 30, 2021 | |||||||||||||||
Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||||
Manufacturing technologies, core products and cell lines | $ | 62,291 | $ | 25,369 | $ | 62,416 | $ | 22,633 | ||||||||
Trade names, licenses and patents | 18,341 | 10,268 | 18,489 | 9,492 | ||||||||||||
Customer lists, customer relationships and supply agreements | 54,491 | 22,941 | 54,941 | 19,649 | ||||||||||||
Non-compete agreements | 110 | 48 | 110 | 31 | ||||||||||||
Total | $ | 135,233 | $ | 58,626 | $ | 135,956 | $ | 51,805 | ||||||||
11. | Leasing Arrangements |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Lease costs within cost of sales | $ | 213 | $ | 165 | $ | 569 | $ | 424 | $ | 223 | $ | 213 | $ | 676 | $ | 569 | ||||||||||||||||
Lease costs within operating expenses | 390 | 330 | 1,151 | 889 | 340 | 390 | 1,086 | 1,151 | ||||||||||||||||||||||||
Right-of-use | 381 | 1,394 | 1,073 | 1,616 | — | 381 | 3,021 | 1,073 |
June 30, 2021 | September 30, 2020 | |||||||
Weighted average remaining lease term | 3.7 years | 4.2 years | ||||||
Average discount rate | 3.2 | % | 3.7 | % |
June 30, 2022 | September 30, 2021 | |||||||
Weighted average remaining lease term | 4.0 years | 3.6 years | ||||||
Average discount rate | 3.5 | % | 3.2 | % |
2021 (represents remainder of fiscal year) | $ | 613 | ||||||
2022 | 2,202 | |||||||
2022 (represents remainder of fiscal year) | $ | 556 | ||||||
2023 | 1,590 | 2,073 | ||||||
2024 | 1,213 | 1,696 | ||||||
2025 | 913 | 1,403 | ||||||
2026 | 829 | |||||||
Thereafter | 385 | 723 | ||||||
Total lease payments | 6,916 | 7,280 | ||||||
Less amount of lease payments representing interest | (380 | ) | (482 | ) | ||||
Total present value of lease payments | $ | 6,536 | $ | 6,798 | ||||
Nine Months Ended June 30, | 2021 | 2020 | ||||||||||||||
2022 | 2021 | |||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating cash flows from operating leases | $ | 1,611 | $ | 1,213 | $ | 1,784 | $ | 1,611 | ||||||||
June 30, 2021 | September 30, 2020 | |||||||||||||||
Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||||
Manufacturing technologies, core products and cell lines | $ | 62,451 | $ | 21,714 | $ | 62,363 | $ | 18,750 | ||||||||
Trade names, licenses and patents | 18,530 | 9,225 | 18,425 | 7,801 | ||||||||||||
Customer lists, customer relationships and supply agreements | 45,305 | 18,687 | 45,071 | 16,210 | ||||||||||||
Non-compete agreements | 110 | 26 | 110 | 11 | ||||||||||||
Total | $ | 126,396 | $ | 49,652 | $ | 125,969 | $ | 42,772 | ||||||||
Bank Credit Arrangements |
Contingent Obligations and Non-Current Liabilities |
June 30, 2021 | September 30, 2020 | |||||||
Current liabilities | $ | 735 | $ | 600 | ||||
Non-current liabilities | $ | 10,512 | $ | 10,524 |
June 30, 2022 | September 30, 2021 | |||||||
Current liabilities | $ | 1,200 | $ | 638 | ||||
Non-current liabilities | $ | 4,403 | $ | 5,176 |
National Institutes of Health Contracts |
Reportable Segment and Major Customers Information |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Diagnostics | ||||||||||||||||
Customer A | 10 | % | 13 | % | 11 | % | 11 | % | ||||||||
Customer B | 11 | % | 8 | % | 10 | % | 13 | % | ||||||||
Customer C | 14 | % | 5 | % | 12 | % | 5 | % | ||||||||
Life Science | ||||||||||||||||
Customer D | 3 | % | 23 | % | 4 | % | 17 | % | ||||||||
Customer E | 4 | % | 14 | % | 12 | % | 11 | % |
Diagnostics | Life Science | Corporate (1) | Eliminations (2) | Total | ||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 31,189 | $ | 32,322 | $ | — | $ | — | $ | 63,511 | ||||||||||
Inter-segment | 100 | 54 | — | (154 | ) | — | ||||||||||||||
Operating income | 2,510 | 16,129 | (2,998 | ) | 39 | 15,680 | ||||||||||||||
Goodwill (June 30, 2021) | 95,267 | 20,048 | — | — | 115,315 | |||||||||||||||
Other intangible assets, net (June 30, 2021) | 76,743 | 1 | — | — | 76,744 | |||||||||||||||
Total assets (June 30, 2021) | 329,003 | 117,564 | — | 3 | 446,570 | |||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 21,598 | $ | 63,199 | $ | — | $ | — | $ | 84,797 | ||||||||||
Inter-segment | 86 | 56 | — | (142 | ) | — | ||||||||||||||
Operating income | (1,783 | ) | 39,305 | (2,849 | ) | (8 | ) | 34,665 | ||||||||||||
Goodwill (September 30, 2020) | 94,855 | 19,331 | — | — | 114,186 | |||||||||||||||
Other intangible assets, net (September 30, 2020) | 83,179 | 18 | — | — | 83,197 | |||||||||||||||
Total assets (September 30, 2020) | 306,812 | 98,483 | — | (34 | ) | 405,261 | ||||||||||||||
Nine Months Ended June 30, 2021 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 93,459 | $ | 148,233 | $ | — | $ | — | $ | 241,692 | ||||||||||
Inter-segment | 285 | 163 | — | (448 | ) | — | ||||||||||||||
Operating income | 3,749 | 92,015 | (11,286 | ) | 67 | 84,545 | ||||||||||||||
Nine Months Ended June 30, 2020 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 91,331 | $ | 98,183 | $ | — | $ | — | $ | 189,514 | ||||||||||
Inter-segment | 264 | 176 | — | (440 | ) | — | ||||||||||||||
Operating income | 8,087 | 51,564 | (7,832 | ) | 31 | 51,850 | ||||||||||||||
Diagnostics | Life Science | Corporate (1) | Eliminations (2) | Total | ||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 42,409 | $ | 25,362 | $ | — | $ | — | $ | 67,771 | ||||||||||
Inter-segment | 67 | 43 | — | (110 | ) | — | ||||||||||||||
Operating income (loss) | 3,278 | 9,088 | (19,084 | ) | 37 | (6,681 | ) | |||||||||||||
Goodwill (June 30, 2022) | 94,493 | 22,708 | — | — | 117,201 | |||||||||||||||
Other intangible assets, net (June 30, 2022) | 76,605 | 2 | — | — | 76,607 | |||||||||||||||
Total assets (June 30, 2022) | 347,177 | 118,786 | — | (35 | ) | 465,928 | ||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 31,189 | $ | 32,322 | $ | — | $ | — | $ | 63,511 | ||||||||||
Inter-segment | 100 | 54 | — | (154 | ) | — | ||||||||||||||
Operating income (loss) | 2,717 | 16,078 | (3,154 | ) | 39 | 15,680 | ||||||||||||||
Goodwill (September 30, 2021) | 94,904 | 19,764 | — | — | 114,668 | |||||||||||||||
Other intangible assets, net (September 30, 2021) | 84,149 | 2 | — | — | 84,151 | |||||||||||||||
Total assets (September 30, 2021) | 339,208 | 110,536 | — | (22 | ) | 449,722 | ||||||||||||||
Nine Months Ended June 30, 2022 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 116,716 | $ | 150,627 | $ | — | $ | — | $ | 267,343 | ||||||||||
Inter-segment | 214 | 130 | — | (344 | ) | — | ||||||||||||||
Operating income (loss) | 3,104 | 75,976 | (29,407 | ) | 70 | 49,743 | ||||||||||||||
Nine Months Ended June 30, 2021 | ||||||||||||||||||||
Net revenues - | ||||||||||||||||||||
Third-party | $ | 93,459 | $ | 148,233 | $ | — | $ | — | $ | 241,692 | ||||||||||
Inter-segment | 285 | 163 | — | (448 | ) | — | ||||||||||||||
Operating income (loss) | 4,400 | 91,832 | (11,754 | ) | 67 | 84,545 | ||||||||||||||
(1) | Includes |
(2) | Eliminations consist of inter-segment transactions. |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Operating income: | ||||||||||||||||||||||||||||||||
Diagnostics segment | $ | 2,510 | $ | (1,783 | ) | $ | 3,749 | $ | 8,087 | $ | 3,278 | $ | 2,717 | $ | 3,104 | $ | 4,400 | |||||||||||||||
Life Science segment | 16,129 | 39,305 | 92,015 | 51,564 | 9,088 | 16,078 | 75,976 | 91,832 | ||||||||||||||||||||||||
Eliminations | 39 | (8 | ) | 67 | 31 | 37 | 39 | 70 | 67 | |||||||||||||||||||||||
Total segment operating income | 18,678 | 37,514 | 95,831 | 59,682 | 12,403 | 18,834 | 79,150 | 96,299 | ||||||||||||||||||||||||
Corporate operating expenses | (2,998 | ) | (2,849 | ) | (11,286 | ) | (7,832 | ) | (19,084 | ) | (3,154 | ) | (29,407 | ) | (11,754 | ) | ||||||||||||||||
Interest income | 0 | 3 | 15 | 137 | 2 | — | 5 | 15 | ||||||||||||||||||||||||
Interest expense | (444 | ) | (703 | ) | (1,450 | ) | (2,002 | ) | (256 | ) | (444 | ) | (969 | ) | (1,450 | ) | ||||||||||||||||
RADx initiative grant income | 0 | — | 1,000 | — | — | — | — | 1,000 | ||||||||||||||||||||||||
Other, net | 59 | 908 | (1,515 | ) | 1,561 | 333 | 59 | 905 | (1,515 | ) | ||||||||||||||||||||||
Consolidated earnings before income taxes | $ | 15,295 | $ | 34,873 | $ | 82,595 | $ | 51,546 | ||||||||||||||||||||||||
Consolidated earnings (loss) before income taxe s | $ | (6,602 | ) | $ | 15,295 | $ | 49,684 | $ | 82,595 | |||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Diagnostics | ||||||||||||||||
Customer A | 7 | % | 10 | % | 8 | % | 11 | % | ||||||||
Customer B | 9 | % | 11 | % | 9 | % | 10 | % | ||||||||
Customer C | 12 | % | 14 | % | 11 | % | 12 | % | ||||||||
Life Science | ||||||||||||||||
Customer D | 14 | % | 9 | % | 7 | % | 7 | % | ||||||||
Customer E | 1 | % | 4 | % | 11 | % | 12 | % | ||||||||
Customer F | 17 | % | 3 | % | 21 | % | 2 | % |
Income Taxes |
17. | Subsequent Event |
- | By Reportable Segment & Geographic Region |
- | By Product Platform/Type |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Gross profit | $ | 37,111 | $ | 55,983 | (34 | )% | $ | 156,431 | $ | 118,180 | 32 | % | $ | 36,728 | $ | 37,111 | (1 | )% | $ | 154,364 | $ | 156,431 | (1 | )% | ||||||||||||||||||||||||||||
Gross profit margin | 58 | % | 66 | % | -8 points | 65 | % | 62 | % | +3 points | 54 | % | 58 | % | -4 points | 58 | % | 65 | % | -7 points |
Three Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2021: | ||||||||||||||||||||
Diagnostics | $ | 5,463 | $ | 4,966 | $ | 5,933 | $ | (3,263 | ) | $ | 13,099 | |||||||||
Life Science | 620 | 1,243 | 3,315 | — | 5,178 | |||||||||||||||
Corporate | — | — | 2,716 | 438 | 3,154 | |||||||||||||||
Total Expenses (2021 Quarter) | $ | 6,083 | $ | 6,209 | $ | 11,964 | $ | (2,825 | ) | $ | 21,431 | |||||||||
Fiscal 2022: | ||||||||||||||||||||
Diagnostics | $ | 5,228 | $ | 6,353 | $ | 7,130 | $ | — | $ | 18,711 | ||||||||||
Life Science | 815 | 1,825 | 2,935 | 39 | 5,614 | |||||||||||||||
Corporate | — | — | 3,084 | 16,000 | 19,084 | |||||||||||||||
Total Expenses (2022 Quarter) | $ | 6,043 | $ | 8,178 | $ | 13,149 | $ | 16,039 | $ | 43,409 | ||||||||||
Nine Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2021: | ||||||||||||||||||||
Diagnostics | $ | 16,011 | $ | 15,914 | $ | 17,790 | $ | (5,205 | ) | $ | 44,510 | |||||||||
Life Science | 1,788 | 3,856 | 9,978 | — | 15,622 | |||||||||||||||
Corporate | — | — | 9,059 | 2,695 | 11,754 | |||||||||||||||
Total Expenses (2021 Year-to-Date) | $ | 17,799 | $ | 19,770 | $ | 36,827 | $ | (2,510 | ) | $ | 71,886 | |||||||||
Fiscal 2022: | ||||||||||||||||||||
Diagnostics | $ | 15,856 | $ | 18,040 | $ | 21,750 | $ | — | $ | 55,646 | ||||||||||
Life Science | 2,072 | 5,393 | 11,996 | 107 | 19,568 | |||||||||||||||
Corporate | — | — | 12,618 | 16,789 | 29,407 | |||||||||||||||
Total Expenses (2022 Year-to-Date) | $ | 17,928 | $ | 23,433 | $ | 46,364 | $ | 16,896 | $ | 104,621 | ||||||||||
Three Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2020: | ||||||||||||||||||||
Diagnostics | $ | 6,129 | $ | 5,009 | $ | 6,279 | $ | (4,387 | ) | $ | 13,030 | |||||||||
Life Science | 539 | 1,273 | 3,630 | (3 | ) | 5,439 | ||||||||||||||
Corporate | — | — | 2,715 | 134 | 2,849 | |||||||||||||||
Total Expenses (2020 Quarter) | $ | 6,668 | $ | 6,282 | $ | 12,624 | $ | (4,256 | ) | $ | 21,318 | |||||||||
Fiscal 2021: | ||||||||||||||||||||
Diagnostics | $ | 5,463 | $ | 4,966 | $ | 6,140 | $ | (3,263 | ) | $ | 13,306 | |||||||||
Life Science | 620 | 1,243 | 3,264 | — | 5,127 | |||||||||||||||
Corporate | — | — | 2,560 | 438 | 2,998 | |||||||||||||||
Total Expenses (2021 Quarter) | $ | 6,083 | $ | 6,209 | $ | 11,964 | $ | (2,825 | ) | $ | 21,431 | |||||||||
Nine Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
Fiscal 2020: | ||||||||||||||||||||
Diagnostics | $ | 15,037 | $ | 15,806 | $ | 16,853 | $ | (3,575 | ) | $ | 44,121 | |||||||||
Life Science | 1,709 | 3,733 | 8,740 | 195 | 14,377 | |||||||||||||||
Corporate | — | — | 6,643 | 1,189 | 7,832 | |||||||||||||||
Total Expenses (2020 Year-to-Date) | $ | 16,746 | $ | 19,539 | $ | 32,236 | $ | (2,191 | ) | $ | 66,330 | |||||||||
Fiscal 2021: | ||||||||||||||||||||
Diagnostics | $ | 16,011 | $ | 15,914 | $ | 18,441 | $ | (5,205 | ) | $ | 45,161 | |||||||||
Life Science | 1,788 | 3,856 | 9,795 | — | 15,439 | |||||||||||||||
Corporate | — | — | 8,591 | 2,695 | 11,286 | |||||||||||||||
Total Expenses (2021 Year-to-Date) | $ | 17,799 | $ | 19,770 | $ | 36,827 | $ | (2,510 | ) | $ | 71,886 | |||||||||
Three Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
2020 Expenses | $ | 6,668 | $ | 6,282 | $ | 12,624 | $ | (4,256 | ) | $ | 21,318 | |||||||||
% of Revenues | 8 | % | 7 | % | 15 | % | (5 | )% | 25 | % | ||||||||||
Fiscal 2021 Increases/(Decreases): | ||||||||||||||||||||
Diagnostics | (666 | ) | (43 | ) | (139 | ) | 1,124 | 276 | ||||||||||||
Life Science | 81 | (30 | ) | (366 | ) | 3 | (312 | ) | ||||||||||||
Corporate | — | — | (155 | ) | 304 | 149 | ||||||||||||||
2021 Expenses | $ | 6,083 | $ | 6,209 | $ | 11,964 | $ | (2,825 | ) | $ | 21,431 | |||||||||
% of Revenues | 10 | % | 10 | % | 19 | % | (4 | )% | 34 | % | ||||||||||
% Increase (Decrease) | (9 | )% | (1 | )% | (5 | )% | 34 | % | 1 | % |
Nine Months Ended June 30, | ||||||||||||||||||||
Research & Development | Selling & Marketing | General & Administrative | Other | Total Operating Expenses | ||||||||||||||||
2020 Expenses | $ | 16,746 | $ | 19,539 | $ | 32,236 | $ | (2,191 | ) | $ | 66,330 | |||||||||
% of Revenues | 9 | % | 10 | % | 17 | % | (1 | )% | 35 | % | ||||||||||
Fiscal 2021 Increases/(Decreases): | ||||||||||||||||||||
Diagnostics | 974 | 108 | 1,588 | (1,630 | ) | 1,040 | ||||||||||||||
Life Science | 79 | 123 | 1,055 | (195 | ) | 1,062 | ||||||||||||||
Corporate | — | — | 1,948 | 1,506 | 3,454 | |||||||||||||||
2021 Expenses | $ | 17,799 | $ | 19,770 | $ | 36,827 | (2,510 | ) | $ | 71,886 | ||||||||||
% of Revenues | 7 | % | 8 | % | 15 | % | (1 | )% | 30 | % | ||||||||||
% Increase (Decrease) | 6 | % | 1 | % | 14 | % | (15 | )% | 8 | % |
101.CAL | Inline XBRL Instance Extension Calculation Linkbase | |
101.DEF | Inline XBRL Instance Extension Definition Linkbase | |
101.LAB | Inline XBRL Instance Extension Label Linkbase | |
101.PRE | Inline XBRL Instance Extension Presentation Linkbase | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Certain exhibits and schedules have been omitted, and the Registrant hereby agrees to furnish a copy of any omitted exhibits or schedules upon request. |
MERIDIAN BIOSCIENCE, INC. | ||||||
Date: August | By: | /s/ | ||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||
Date: August 5, 2022 | By: | /s/ Julie Smith | ||||
Julie Smith | ||||||
Senior Vice President and Controller (Principal Accounting Officer) |