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 | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
Class |
Outstanding July 31, 2021 | |
Common Stock, no par value | |
Page(s) |
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PART I. |
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Item 1. |
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Condensed Consolidated Statements of Operations Three and Nine Months Ended June 30, 2021 and 2020 |
1 | |||||
Condensed Consolidated Statements of Comprehensive Income Three and Nine Months Ended June 30, 2021 and 2020 |
2 | |||||
Condensed Consolidated Statements of Cash Flows Nine Months Ended June 30, 2021 and 2020 |
3 | |||||
4-5 |
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6 | ||||||
7-20 |
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Item 2. |
21-29 |
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Item 3. |
30 | |||||
Item 4. |
30 | |||||
PART II. |
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Item 1. |
30 | |||||
Item 1A. |
30 | |||||
Item 6. |
31 | |||||
31 |
Three Months Ended |
Nine Months Ended |
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June 30, |
June 30, |
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2021 |
2020 |
2021 |
2020 |
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NET REVENUES |
$ | $ | $ | $ | ||||||||||||
COST OF SALES |
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GROSS PROFIT |
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OPERATING EXPENSES |
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Research and development |
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Selling and marketing |
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General and administrative |
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Acquisition-related costs |
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Change in fair value of acquisition consideration |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Restructuring costs |
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Selected legal costs |
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Total operating expenses |
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OPERATING INCOME |
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OTHER INCOME (EXPENSE) |
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Interest income |
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Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
RADx grant income |
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Other, net |
( |
) | ||||||||||||||
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Total other income (expense) |
( |
) | ( |
) | ( |
) | ||||||||||
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EARNINGS BEFORE INCOME TAXES |
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INCOME TAX PROVISION |
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NET EARNINGS |
$ | $ | $ | $ | ||||||||||||
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BASIC EARNINGS PER COMMON SHARE |
$ | $ | $ | $ | ||||||||||||
DILUTED EARNINGS PER COMMON SHARE |
$ | $ | $ | $ | ||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC |
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EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS |
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED |
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ANTI-DILUTIVE SECURITIES: |
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Common share options and restricted share units |
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Three Months Ended June 30, |
Nine Months Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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NET EARNINGS |
$ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): |
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Foreign currency translation adjustment |
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Unrealized gain (loss) on cash flow hedge |
( |
) | ( |
) | ||||||||||||
Reclassification of amortization of gain on cash flow hedge |
( |
) | ( |
) | ( |
) | ||||||||||
Income taxes related to items of other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
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Other comprehensive income (loss), net of tax |
( |
) | ||||||||||||||
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COMPREHENSIVE INCOME |
$ | $ | $ | $ | ||||||||||||
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Nine Months Ended June 30, |
2021 |
2020 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Net earnings |
$ | $ | ||||||
Non-cash items included in net earnings: |
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Depreciation of property, plant and equipment |
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Amortization of intangible assets |
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Stock compensation expense |
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Deferred income taxes |
( |
) | ||||||
Change in fair value of acquisition consideration |
( |
) | ( |
) | ||||
Change in the following: |
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Accounts receivable |
( |
) | ( |
) | ||||
Inventories |
( |
) | ( |
) | ||||
Prepaid expenses and other current assets |
( |
) | ||||||
Accounts payable and accrued expenses |
( |
) | ||||||
Income taxes payable |
( |
) | ||||||
Other, net |
( |
) | ||||||
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Net cash provided by operating activities |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Purchase of property, plant and equipment |
( |
) | ( |
) | ||||
Payment of acquisition consideration holdback |
( |
) | — | |||||
Acquisition of Exalenz, net of cash acquired |
— | ( |
) | |||||
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Net cash used in investing activities |
( |
) | ( |
) | ||||
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CASH FLOWS FROM FINANCING ACTIVITIES |
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Payment on revolving credit facility |
( |
) | ( |
) | ||||
Proceeds from revolving credit facility |
— | |||||||
Payment of debt issuance costs |
— | ( |
) | |||||
Proceeds from exercise of stock options |
— | |||||||
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Net cash (used in) provided by financing activities |
( |
) | ||||||
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Effect of Exchange Rate Changes on Cash and Cash Equivalents |
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Net Increase in Cash and Cash Equivalents |
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Cash and Cash Equivalents at Beginning of Period |
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Cash and Cash Equivalents at End of Period |
$ | $ | ||||||
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June 30, 2021 (Unaudited) |
September 30, 2020 |
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CURRENT ASSETS |
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Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable, less allowances of $ |
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Inventories, net |
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Prepaid expenses and other current assets |
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Total current assets |
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PROPERTY, PLANT AND EQUIPMENT, at Cost |
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Land |
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Buildings and improvements |
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Machinery, equipment and furniture |
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Construction in progress |
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Subtotal |
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Less: accumulated depreciation and amortization |
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Property, plant and equipment, net |
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OTHER ASSETS |
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Goodwill |
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Other intangible assets, net |
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Right-of-use |
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Deferred income taxes |
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Other assets |
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Total other assets |
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TOTAL ASSETS |
$ | $ | ||||||
June 30, 2021 (Unaudited) |
September 30, 2020 |
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CURRENT LIABILITIES |
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Accounts payable |
$ | $ | ||||||
Accrued employee compensation costs |
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Current portion of acquisition consideration |
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Current operating lease obligations |
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Current government grant obligations |
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Other accrued expenses |
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Income taxes payable |
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Total current liabilities |
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NON-CURRENT LIABILITIES |
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Acquisition consideration |
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Post-employment benefits |
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Fair value of interest rate swaps |
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Long-term operating lease obligations |
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Long-term debt |
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Government grant obligations |
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Long-term income taxes payable |
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Deferred income taxes |
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Other non-current liabilities |
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Total non-current liabilities |
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COMMITMENTS AND CONTINGENCIES |
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SHAREHOLDERS’ EQUITY |
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Preferred stock, |
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Common shares, |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive income (loss) |
( |
) | ||||||
Total shareholders’ equity |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | $ | ||||||
Common Shares Issued |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders’ Equity |
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THREE MONTHS ENDED JUNE 30, 2021 |
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Balance at March 31, 2021 |
$ | $ | $ | $ | ||||||||||||||||
Conversion of restricted share units and exercise of stock options |
— | — | ||||||||||||||||||
Stock compensation expense |
— | — | — | |||||||||||||||||
Net earnings |
— | — | — | |||||||||||||||||
Foreign currency translation adjustment |
— | — | — | |||||||||||||||||
Hedging activity, net of tax |
— | — | — | |||||||||||||||||
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Balance at June 30, 2021 |
$ | $ | $ | $ | ||||||||||||||||
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THREE MONTHS ENDED JUNE 30, 2020 |
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Balance at March 31, 2020 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Conversion of restricted share units and exercise of stock options |
— | — | — | — | ||||||||||||||||
Stock compensation expense |
— | — | — | |||||||||||||||||
Net earnings |
— | — | — | |||||||||||||||||
Foreign currency translation adjustment |
— | — | — | |||||||||||||||||
Hedging activity, net of tax |
— | — | — | ( |
) | ( |
) | |||||||||||||
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Balance at June 30, 2020 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
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Common Shares Issued |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders’ Equity |
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NINE MONTHS ENDED JUNE 30, 2021 |
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Balance at September 30, 2020 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Conversion of restricted share units and exercise of stock options |
— | — | ||||||||||||||||||
Stock compensation expense |
— | — | — | |||||||||||||||||
Net earnings |
— | — | — | |||||||||||||||||
Foreign currency translation adjustment |
— | — | — | |||||||||||||||||
Hedging activity, net of tax |
— | — | — | |||||||||||||||||
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Balance at June 30, 2021 |
$ | $ | $ | $ | ||||||||||||||||
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NINE MONTHS ENDED JUNE 30, 2020 |
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Balance at September 30, 2019 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Conversion of restricted share units and exercise of stock options |
( |
) | — | — | ( |
) | ||||||||||||||
Stock compensation expense |
— | — | — | |||||||||||||||||
Net earnings |
— | — | — | |||||||||||||||||
Foreign currency translation adjustment |
— | — | — | |||||||||||||||||
Hedging activity, net of tax |
— | — | — | ( |
) | ( |
) | |||||||||||||
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Balance at June 30, 2020 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
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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, |
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2021 |
2020 |
Inc (Dec) |
2021 |
2020 |
Inc (Dec) |
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Diagnostics- |
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Americas |
$ | $ | % | $ | $ | % | ||||||||||||||||||
EMEA |
% | % | ||||||||||||||||||||||
ROW |
( |
)% | % | |||||||||||||||||||||
Total Diagnostics |
% | % | ||||||||||||||||||||||
Life Science- |
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Americas |
( |
)% | % | |||||||||||||||||||||
EMEA |
( |
)% | % | |||||||||||||||||||||
ROW |
( |
)% | % | |||||||||||||||||||||
Total Life Science |
( |
)% | % | |||||||||||||||||||||
Consolidated |
$ | $ | ( |
)% | $ | $ | % | |||||||||||||||||
Three Months Ended June 30, |
Nine Months Ended June 30, |
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2021 |
2020 |
Inc (Dec) |
2021 |
2020 |
Inc (Dec) |
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Diagnostics- |
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Molecular assays |
$ | $ | % | $ | $ | ( |
)% | |||||||||||||||||
Non-molecular assays |
% | % | ||||||||||||||||||||||
Total Diagnostics |
$ | $ | % | $ | $ | % | ||||||||||||||||||
Life Science- |
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Molecular reagents |
$ | $ | ( |
)% | $ | $ | % | |||||||||||||||||
Immunological reagents |
( |
)% | % | |||||||||||||||||||||
Total Life Science |
$ | $ | ( |
)% | $ | $ | % | |||||||||||||||||
Three Months Ended June 30, |
Nine Months Ended June 30, |
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2021 |
2020 |
Inc (Dec) |
2021 |
2020 |
Inc (Dec) |
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Diagnostics- |
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Gastrointestinal assays |
$ | $ | % | $ | $ | % | ||||||||||||||||||
Respiratory illness assays |
( |
)% | ( |
)% | ||||||||||||||||||||
Blood chemistry assays |
% | % | ||||||||||||||||||||||
Other |
% | % | ||||||||||||||||||||||
Total Diagnostics |
$ | $ | % | $ | $ | % | ||||||||||||||||||
5. |
Fair Value Measurements |
Fair Value Measurements Using Inputs Considered as |
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Carrying Value |
Level 1 |
Level 2 |
Level 3 |
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Interest rate swaps - |
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As of June 30, 2021 |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
As of September 30, 2020 |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
Contingent consideration - |
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As of June 30, 2021 |
$ | ( |
) | $ | $ | $ | ( |
) | ||||||||
As of September 30, 2020 |
$ | ( |
) | $ | $ | $ | ( |
) |
6. |
Business Combinations |
Three Months |
Nine Months |
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Ended June 30, |
Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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Net revenues |
$ | $ | $ | $ | ||||||||||||
Net loss |
$ | ( |
) | ( |
) | ( |
) | ( |
) |
April 30, 2020 |
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Fair value of assets acquired - |
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Cash |
$ | |||
Accounts receivable |
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Inventories |
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Other current assets |
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Property, plant and equipment |
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Goodwill |
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Other intangible assets (estimated useful life): |
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Non-compete agreement ( |
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Trade name ( |
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Technology ( |
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Customer relationships ( |
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Right-of-use |
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Deferred tax assets, net |
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Fair value of liabilities assumed - |
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Accounts payable and accrued expenses (including current portion of lease and government grant obligations) |
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Long-term lease obligations |
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Long-term government grant obligations |
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Other non-current liabilities |
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Total consideration paid (including $ |
$ | |||
|
|
Three Months Ended June 30, |
Nine Months Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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Net revenues |
$ | $ | $ | $ | ||||||||||||
Net earnings |
Three Months Ended June 30, |
Nine Months Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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Adjustments to net revenues |
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Exalenz pre-acquisition net revenues |
$ | $ | $ | $ | ||||||||||||
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Adjustments to net earnings |
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Exalenz pre-acquisition net loss |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Pro forma adjustments: |
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Meridian acquisition-related costs |
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Exalenz transaction-related costs |
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Gain on Exalenz purchase price currency contracts |
( |
) | ( |
) | ||||||||||||
Remove net impact of non-continuing personnel, locations or activities |
( |
) | ( |
) | ||||||||||||
Incremental depreciation and amortization |
( |
) | ( |
) | ||||||||||||
Interest, net |
( |
) | ||||||||||||||
Tax effects of pro forma adjustments and recognizing benefit on resulting Exalenz losses |
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Total adjustments to net earnings |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
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7. |
Cash and Cash Equivalents |
June 30, 2021 |
September 30, 2020 |
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Institutional money market funds |
$ | $ | ||||||
Cash on hand, unrestricted |
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|
|
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Total |
$ | $ | ||||||
|
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|
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8. |
Inventories, Net |
June 30, 2021 |
September 30, 2020 |
|||||||
Raw materials |
$ | $ | ||||||
Work-in-process |
||||||||
Finished goods - instruments |
||||||||
Finished goods - kits and reagents |
||||||||
|
|
|
|
|||||
Total |
$ | $ | ||||||
|
|
|
|
9. |
Leasing Arrangements |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Lease costs within cost of sales |
$ | $ | $ | $ | ||||||||||||
Lease costs within operating expenses |
||||||||||||||||
Right-of-use |
June 30, 2021 |
September 30, 2020 |
|||||||
Weighted average remaining lease term |
||||||||
Average discount rate |
% | % |
2021 (represents remainder of fiscal year) |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
Total lease payments |
||||
Less amount of lease payments representing interest |
( |
) | ||
Total present value of lease payments |
$ | |||
Nine Months Ended June 30, |
2021 |
2020 |
||||||
Cash paid for amounts included in the measurement of lease liabilities: |
||||||||
Operating cash flows from operating leases |
$ | $ | ||||||
10. |
Goodwill and Other Intangible Assets, Net |
June 30, 2021 |
September 30, 2020 |
|||||||||||||||
Gross Carrying Value |
Accumulated Amortization |
Gross Carrying Value |
Accumulated Amortization |
|||||||||||||
Manufacturing technologies, core products and cell lines |
$ | $ | $ | $ | ||||||||||||
Trade names, licenses and patents |
||||||||||||||||
Customer lists, customer relationships and supply agreements |
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Non-compete agreements |
||||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
11. |
Bank Credit Arrangements |
12. |
Contingent Obligations and Non-Current Liabilities |
June 30, 2021 |
September 30, 2020 |
|||||||
Current liabilities |
$ | $ | ||||||
Non-current liabilities |
$ | $ |
13. |
National Institutes of Health Contracts |
14. |
Reportable Segment and Major Customers Information |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Diagnostics |
||||||||||||||||
Customer A |
% | % | % | % | ||||||||||||
Customer B |
% | % | % | % | ||||||||||||
Customer C |
% | % | % | % | ||||||||||||
Life Science |
||||||||||||||||
Customer D |
% | % | % | % | ||||||||||||
Customer E |
% | % | % | % |
Diagnostics |
Life Science |
Corporate (1) |
Eliminations (2) |
Total |
||||||||||||||||
Three Months Ended June 30, 2021 |
||||||||||||||||||||
Net revenues - |
||||||||||||||||||||
Third-party |
$ | $ | $ | — | $ | — | $ | |||||||||||||
Inter-segment |
— | ( |
) | — | ||||||||||||||||
Operating income |
( |
) | ||||||||||||||||||
Goodwill (June 30, 2021) |
— | — | ||||||||||||||||||
Other intangible assets, net (June 30, 2021) |
— | — | ||||||||||||||||||
Total assets (June 30, 2021) |
— | |||||||||||||||||||
Three Months Ended June 30, 2020 |
||||||||||||||||||||
Net revenues - |
||||||||||||||||||||
Third-party |
$ | $ | $ | — | $ | — | $ | |||||||||||||
Inter-segment |
— | ( |
) | — | ||||||||||||||||
Operating income |
( |
) | ( |
) | ( |
) | ||||||||||||||
Goodwill (September 30, 2020) |
— | — | ||||||||||||||||||
Other intangible assets, net (September 30, 2020) |
— | — | ||||||||||||||||||
Total assets (September 30, 2020) |
— | ( |
) | |||||||||||||||||
Nine Months Ended June 30, 2021 |
||||||||||||||||||||
Net revenues - |
||||||||||||||||||||
Third-party |
$ | $ | $ | — | $ | — | $ | |||||||||||||
Inter-segment |
— | ( |
) | — | ||||||||||||||||
Operating income |
( |
) | ||||||||||||||||||
Nine Months Ended June 30, 2020 |
||||||||||||||||||||
Net revenues - |
||||||||||||||||||||
Third-party |
$ | $ | $ | — | $ | — | $ | |||||||||||||
Inter-segment |
— | ( |
) | — | ||||||||||||||||
Operating income |
( |
) | ||||||||||||||||||
(1) |
Includes selected legal costs of $ |
(2) |
Eliminations consist of inter-segment transactions. |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Operating income: |
||||||||||||||||
Diagnostics segment |
$ | $ | ( |
) | $ | $ | ||||||||||
Life Science segment |
||||||||||||||||
Eliminations |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total segment operating income |
||||||||||||||||
Corporate operating expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest income |
||||||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
RADx initiative grant income |
— | — | ||||||||||||||
Other, net |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Consolidated earnings before income taxes |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
15. |
Income Taxes |
16. |
Litigation and Regulatory Matters |
17. |
Subsequent Event |
- | By Reportable Segment & Geographic Region |
- | By Product Platform/Type |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||||||||||||||
2021 |
2020 |
Change |
2021 |
2020 |
Change |
|||||||||||||||||||||||
Gross profit |
$ | 37,111 | $ | 55,983 | (34 | )% | $ | 156,431 | $ | 118,180 | 32 | % | ||||||||||||||||
Gross profit margin |
58 | % | 66 | % | -8 points | 65 | % | 62 | % | +3 points |
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 | % |
31.1 | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a) | |
31.2 | Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a) | |
32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Instance Extension Schema | |
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) |
MERIDIAN BIOSCIENCE, INC. | ||||||
Date: August 6, 2021 |
By: | /s/ Bryan T. Baldasare | ||||
Bryan T. Baldasare | ||||||
Executive Vice President and Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |
Exhibit 31.1
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rule 13a-14(a)
I, Jack Kenny, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of Meridian Bioscience, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 6, 2021 |
/s/ Jack Kenny |
Jack Kenny |
Chief Executive Officer |
Exhibit 31.2
Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rule 13a-14(a)
I, Bryan T. Baldasare, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of Meridian Bioscience, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 6, 2021 |
/s/ Bryan T. Baldasare |
Bryan T. Baldasare |
Executive Vice President and Chief Financial Officer |
Exhibit 32
Meridian Bioscience, Inc.
Certification of Chief Executive Officer and Chief Financial Officer
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the filing with the Securities and Exchange Commission of the Quarterly Report of Meridian Bioscience, Inc. (the Company) on Form 10-Q for the period ended June 30, 2021 (the Report), the undersigned officers of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of their knowledge:
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Jack Kenny |
Jack Kenny |
Chief Executive Officer |
August 6, 2021 |
/s/ Bryan T. Baldasare |
Bryan T. Baldasare |
Executive Vice President and Chief Financial Officer |
August 6, 2021 |
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Statement [Abstract] | ||||
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 |
Earnings Per Share Data: | ||||
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 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
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 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 514 | $ 513 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 71,000,000 | 71,000,000 |
Common stock, shares issued | 43,352,998 | 43,068,842 |
Nature of Business |
9 Months Ended | ||
---|---|---|---|
Jun. 30, 2021 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Nature of Business |
Meridian Bioscience, Inc. (“Meridian” or “the Company”) was formed in 1976 and functions as a fully-integrated life science company with principal businesses in: (i) the development, manufacture, sale and distribution of diagnostic testing systems and kits, primarily for certain gastrointestinal and respiratory infectious diseases, and elevated blood lead levels; and (ii) the manufacture and distribution of bulk antigens, antibodies, immunoassay blocking reagents, various Polymerase Chain Reaction (“PCR”) master mixes, and bioresearch reagents used by other diagnostic manufacturers and researchers. Our reportable segments are Diagnostics and Life Science. The Diagnostics segment consists of: (i) manufacturing operations for infectious disease products in Cincinnati, Ohio; Quebec City, Canada; and Modi’in, Israel; (ii) manufacturing operations for blood chemistry products in Billerica, Massachusetts (near Boston); and (iii) the sale and distribution of diagnostics products domestically and abroad. This segment’s products are used by hospitals, reference labs and physician offices to detect infectious diseases and elevated lead levels in blood. The Life Science segment consists of: (i) manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; and Luckenwalde, Germany; and (ii) the sale and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, and bioresearch reagents domestically and abroad, including a sales and business development facility, with outsourced distribution capabilities, in Beijing, China to pursue revenue opportunities in Asia. This segment’s products are used by manufacturers and researchers in a variety of applications (e.g.,
in-vitro medical device manufacturing, microRNA detection, next-generation sequencing, plant genotyping, and mutation detection, among others). |
Basis of Presentation |
9 Months Ended | ||
---|---|---|---|
Jun. 30, 2021 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Basis of Presentation |
The Condensed Consolidated Financial Statements are unaudited and are prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information, and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of Management, the Condensed Consolidated Financial Statements include all normal adjustments and disclosures necessary to present fairly the Company’s consolidated financial position as of June 30, 2021, the results of its operations and shareholders’ equity for the three- and nine-month periods ended June 30, 2021 and 2020, and cash flows for the nine-month periods ended June 30, 2021 and 2020. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s fiscal 2020 Annual Report on Form 10-K filed with the SEC on November 23, 2020. It should be noted that the terms revenue and/or revenues are utilized throughout these notes to the Condensed Consolidated Financial Statements to indicate net revenue and/or net revenues. The results of operations for interim periods are not necessarily indicative of the results to be expected for the year. The preparation of these Condensed Consolidated Financial Statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. |
Significant Accounting Policies |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||
Accounting Policies [Abstract] | |||||||
Significant Accounting Policies |
A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company’s fiscal 2020 Annual Report on Form 10-K filed with the SEC on November 23, 2020 and should be referred to for a description of the Company’s significant accounting policies.
Pronouncements Adopted On October 1, 2020, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments Pronouncements Issued but Not Yet Adopted as of June 30, 2021 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes 2019-12”). ASU 2019-12 clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intraperiod tax allocation principles, the methodology for calculating income tax rates in an interim period, and recognition of deferred taxes for outside basis differences in an investment, among other updates. ASU 2019-12 will be effective for the Company’s fiscal year beginning on October 1, 2021. The Company is currently evaluating the impact of ASU 2019-12 but does not expect its application to have a material impact on the Condensed Consolidated Financial Statements.
Certain reclassifications have been made to the prior year Condensed Consolidated Financial Statements to conform to the current year presentation. Such reclassifications had no impact on net earnings or shareholders’ equity. |
Revenue Recognition |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition |
Overview Revenue from contracts with customers is recognized in an amount that reflects the consideration we expect to receive in exchange for products when obligations under such contracts are satisfied. Revenue is generally recognized at a point-in-time Revenue Disaggregation The following tables present our revenues disaggregated by major geographic region, major product platform and disease state (Diagnostics segment only): Revenue by Reportable Segment & Geographic Region
Revenue by Product Platform/Type
Revenue by Disease State (Diagnostics segment only)
Royalty Income Royalty income received from a third party related to sales of H. pylori Non-molecular assays and Other within the Revenue by Product Platform/Type and Revenue by Disease State tables, respectively, above. Reagent Rental Arrangements Revenue allocated to the lease elements of Reagent Rental arrangements totaled approximately $950 and $1,150 in the three months ended June 30, 2021 and 2020, respectively, and $2,730 and $3,400 in the nine months ended June 30, 2021 and 2020, respectively. Such revenue is included as part of net revenues in our Condensed Consolidated Statements of Operations. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
Certain assets and liabilities are recorded at fair value in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories based on inputs: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities Level 2 Quoted prices in markets that are not active and financial instruments for which all significant inputs are observable, either directly or indirectly Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable To limit exposure to volatility in the LIBOR interest rate, the Company has entered into interest rate swap agreements, which effectively convert the variable interest rate on $50,000 of the outstanding revolving credit facility discussed in Note 11 to a fixed rate. The fair values of the interest rate swap agreements were determined by reference to a third-party valuation and is considered a Level 2 input within the fair value hierarchy of valuation techniques. As described in Note 6, we acquired Exalenz Bioscience Ltd. (“Exalenz”) in fiscal 2020. The fair values of the acquired accounts receivable, inventories, property, plant and equipment, and other current assets and the fair values of the assumed accounts payable and accrued expenses were valued using Level 2 inputs, which included data points that were observable, such as appraisals or established values of comparable assets (market approach). Intangible assets were valued using Level 3 inputs, which are unobservable by nature, and included internal estimates of future cash flows (income approach). Significant increases (decreases) in any of those unobservable inputs, as of the date of the acquisition, in isolation would result in a significantly lower (higher) fair value measurement. Management engaged a third-party valuation firm to assist in the determination of the purchase accounting fair values, and specifically those considered Level 3 measurements. Management ultimately oversees the third-party valuation firm to ensure that the transaction-specific assumptions are appropriate for the Company. In connection with the acquisition of the business of GenePOC, Inc. (“GenePOC”) in fiscal 2019 and subsequent amendments to modify certain terms of the agreement related to contingent consideration achievement levels and milestone dates, the Company is required to make contingent consideration payments of up to $64,000 (originally $70,000 at the acquisition date), comprised of up to $14,000 for achievement of product development milestones (originally $20,000 at the acquisition date) and up to $50,000 for achievement of certain financial targets. The fair value for the contingent consideration recognized upon the acquisition as part of the purchase price allocation was $27,202. The fair value of the product development milestone payments is estimated by discounting the probability-weighted contingent payments to present value and is presented on the Condensed Consolidated Balance Sheets based on the Company’s anticipated date of payment at each reporting period. Assumptions used in the calculations include probability of success, duration of the earn-out and discount rate, and such calculations were updated for the effect of the previously noted amendments to the contingent consideration achievement levels and milestone dates. The fair value of the financial performance target payments was determined using a Monte Carlo simulation-based model. Assumptions used in these calculations include expected revenues, probability of certain developments, expected expenses and discount rate. The ultimate settlement of contingent consideration could deviate significantly from the current Level 3 measurement estimates, based on the actual results of these financial measures. The following table provides information by level for financial assets and liabilities that are measured at fair value on a recurring basis:
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Business Combinations |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations |
On April 30, 2020 (“the acquisition date”), we acquired 100% of the outstanding common shares and voting interest of Exalenz, a Modi’in, Israel based provider of the BreathID ® Helicobacter pylori. As a result of total consideration exceeding the fair value of the net assets acquired, goodwill in the amount of $24,798 was recorded in connection with this acquisition, none of which will be deductible for U.S. tax purposes. The goodwill results largely from our ability to market and sell the BreathID platform through our established customer base and distribution channels. The Company’s consolidated results for the three and nine months ended June 30, 2021 and 2020 include the following from Exalenz:
These results, which are reported as part of the Diagnostics segment, include amortization expense related to specific identifiable assets recorded in the purchase price allocation, including a non-compete agreement, trade name, technology and customer relationships, totaling $720 and $2,240 for the three and nine months ended June 30, 2021, respectively; $448 for both the three and nine months ended June 30, 2020. The recognized amounts of identifiable assets acquired and liabilities assumed in the acquisition of Exalenz are as follows:
During the three months ended June 30, 2021, the purchase price allocation was finalized. Pro Forma Information The following table provides the unaudited condensed consolidated pro forma results for the periods presented as if Exalenz had been acquired as of the beginning of fiscal 2020 (October 1, 2019). Pro forma results do not include the effect of any synergies achieved or anticipated to be achieved from the acquisition, and accordingly, are not necessarily indicative of the results that would have occurred if the acquisition had occurred on the date indicated or that may result in the future.
These unaudited pro forma amounts have been calculated by including the results of Exalenz and adjusting the results to give effect to the following, as if the acquisition had been consummated on October 1, 2019, together with the consequential tax effects thereon:
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Cash and Cash Equivalents |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents |
Cash and cash equivalents include the following:
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Inventories, Net |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net |
Inventories, net are comprised of the following:
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Leasing Arrangements |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing Arrangements |
The Company is party to several operating leases, the majority of which are related to office, warehouse and manufacturing space. The related operating lease assets and obligations are reflected within right-of-use The lease costs for these operating leases reflected in our Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2021 and 2020, as well as the right-of-use
In addition, the Company periodically enters into other short-term operating leases, generally with an initial term of twelve months or less. These leases are not recorded on the Condensed Consolidated Balance Sheets and the related lease expense is immaterial for the three and nine months ended June 30, 2021 and 2020. The Company often has options to renew lease terms, with the exercise of lease renewal options generally at the Company’s sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The discount rate implicit within our leases is generally not determinable and, therefore, the Company uses its incremental borrowing rate as the basis for its discount rate. The weighted average remaining lease term for our operating leases and the weighted average discount rate used to measure our operating leases as of June 30, 2021 and September 30, 2020 were as follows:
Maturities of lease liabilities by fiscal year for the Company’s operating leases were as follows as of June 30, 2021:
Supplemental cash flow information related to the Company’s operating leases are as follows:
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Goodwill and Other Intangible Assets, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets, Net |
During the nine months ended June 30, 2021, goodwill increased $1,129, reflecting: (i) an additional $332 acquisition measurement period adjustment related to Exalenz (see Note 6); (ii) an $80 increase from the currency translation adjustment on goodwill in the Diagnostics segment; and (iii) a $717 increase from the currency translation adjustment on goodwill in the Life Science segment. The Company has historically performed its annual goodwill impairment assessment as of the last day of the third fiscal quarter of each year (June 30). During the third quarter of fiscal 2021, the Company decided to change the date of its annual impairment assessment from June 30 to July 1. The change was made to more closely align the annual goodwill impairment assessment date with the Company’s annual planning and budgeting process, as well as its long-term planning and forecasting process. The Company has determined this change in accounting principle is preferable and will not affect the consolidated financial statements. Pursuant to the authoritative accounting literature, in fiscal 2021 the Company will perform a goodwill impairment assessment as of the last day of its fiscal 2021 third quarter (June 30), as well as July 1, to ensure that the change in goodwill impairment assessment date did not delay or avoid an impairment charge. This change is not applied retrospectively, as it is impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change will be applied prospectively. At June 30, 2021, impairment review of the Company’s goodwill consisted of a qualitative assessment for each of our Diagnostics and Life Science reporting units. A qualitative assessment is first performed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value using qualitative indicators. In the event that the reporting unit does not pass the qualitative assessment, the reporting unit’s carrying value is compared to its fair value, with fair value of the reporting unit estimated using market value and discounted cash flow approaches. Both our Diagnostics and Life Science reporting units satisfied the qualitative assessment at June 30, 2021, and no impairment was recognized. The Company will perform its July 1, 2021 goodwill impairment assessment during the fourth quarter of fiscal 2021. A summary of other intangible assets, net subject to amortization is as follows:
The aggregate amortization expense for these other intangible assets was $2,090 and $2,155 for the three months ended June 30, 2021 and 2020, respectively, and $6,453 and $5,604 for the nine months ended June 30, 2021 and 2020, respectively. The estimated aggregate amortization expense for these other intangible assets for each of the fiscal years through fiscal 2026 is as follows: remainder of fiscal 2021 – $2,000, fiscal 2022 – $7,995, fiscal 2023 – $7,980, fiscal 2024 – $7,975, fiscal 2025 – $7,965, and fiscal 2026 – $7,295. |
Bank Credit Arrangements |
9 Months Ended | ||
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Jun. 30, 2021 | |||
Debt Disclosure [Abstract] | |||
Bank Credit Arrangements |
The Company maintains a revolving credit facility with a commercial bank in an aggregate principal amount not to exceed $160,000, which expires in May 2024. Outstanding principal amounts bear interest at a fluctuating rate tied to, at the Company’s option, either the federal funds rate or LIBOR, resulting in an effective interest rate of 2.52% and 2.63% on the revolving credit facility during the three months ended June 30, 2021 and 2020, respectively, and 2.55% and 3.45% during the nine months ended June 30, 2021 and 2020, respectively. In light of the interest being determined on a variable rate basis, the fair value of the borrowings under the revolving credit facility at both June 30, 2021 and September 30, 2020, approximates the current carrying value reflected in the Condensed Consolidated Balance Sheets. The revolving credit facility is collateralized by the business assets of the Company’s U.S. subsidiaries and requires compliance with financial covenants that limit the amount of debt obligations and require a minimum level of coverage of fixed charges, as defined in the revolving credit facility agreement. As of June 30, 2021, the Company was in compliance with all covenants. |
Contingent Obligations and Non-Current Liabilities |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||
Contingent Obligations and NonCurrent Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||
Contingent Obligations and Non-Current Liabilities |
In connection with the acquisition of Exalenz (see Note 6), the Company assumed several Israeli government grant obligations. The repayment of the grants, along with interest incurred at varying stated fixed rates based on LIBOR at the time each grant was received (ranging from 0.58% to 6.60%), is not dictated by an established repayment schedule. Rather, the grants and related interest are required to be repaid using 3% of the revenues generated from the sales of BreathID products, with the timing of repayment contingent upon the level and timing of such revenues. In addition, the grants have no collateral or financial covenant provisions generally associated with traditional borrowing instruments. These obligation amounts total $11,247 and $11,124 as of June 30, 2021 and September 30, 2020, respectively, and are reflected in the Condensed Consolidated Balance Sheets as follows:
Additionally, the Company has provided certain post-employment benefits to its former Chief Executive Officer, and these obligations total $1,730 and $1,840 at June 30, 2021 and September 30, 2020, respectively. In addition, the Company is required by the governments of certain foreign countries in which we operate to maintain a level of accruals for potential future severance indemnity. These accruals total $756 and $814 at June 30, 2021 and September 30, 2020, respectively . |
National Institutes of Health Contracts |
9 Months Ended | ||
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Jun. 30, 2021 | |||
Research and Development [Abstract] | |||
National Institutes of Health Contracts |
In December 2020, the Company entered into a sub-award grant contract with the University of Massachusetts Medical School as part of the National Institutes of Health Rapid Acceleration of Diagnostics (“RADx”) initiative to support the Company’s research and development of its diagnostic test for the SARS-CoV-2 Effective February 1, 2021, the Company entered into a second grant contract under the RADx initiative, the purpose of which is to support the Company’s manufacturing production
scale-up and expansion to meet the demand for COVID-19 testing. The contract is a twelve-month term service contract, with payment of up to $5,500 being made based on the Company achieving key milestones related to increasing its capacity to produce COVID-19 tests. No amounts related to this contract are reflected within the Condensed Consolidated Financial Statements. |
Reportable Segment and Major Customers Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments and Major Customers Data |
During the three and nine months ended June 30, 2021, products related to COVID-19 accounted for approximately 45% and 60%, respectively, of Life Science segment revenues, and 23% and 37%, respectively, of consolidated revenues. In addition, on a consolidated basis, two Life Science segment customers (Customers D and E below) represented 17% and 11%, respectively, of consolidated revenues during the three months ended June 30, 2020 (1% and 2%, respectively, during the three months ended June 30, 2021), with no individual Diagnostics or Life Science segment customer accounting for 10% or more of consolidated revenues during the nine months ended June 30, 2021 and 2020. Individual Diagnostics or Life Science segment customers, including their affiliates, comprising 10% or more of reportable segment revenues during any of the three- and nine-month periods ended June 30, 2021 and 2020 were as follows:
In addition, during the three and nine months ended June 30, 2021, the Life Science segment’s ten largest customers, including their affiliates, accounted for approximately 46% and 43%, respectively, of Life Science segment revenues, and 24% and 27%, respectively, of consolidated revenues. One Life Science segment customer (Customer E above) accounted for 15% of consolidated accounts receivable as of September 30, 2020 (2% as of June 30, 2021). Reportable segment information for the interim periods is as follows:
A reconciliation of reportable segment operating income to consolidated earnings before income taxes for the interim periods is as follows:
Transactions between reportable segments are accounted for at established intercompany prices for internal and management purposes, with all intercompany amounts eliminated in consolidation. |
Income Taxes |
9 Months Ended | ||
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Jun. 30, 2021 | |||
Income Tax Disclosure [Abstract] | |||
Income Taxes |
The effective rate for income taxes was 24% and 22% for the three and nine months ended June 30, 2021, respectively, and 21% and 23% for the three and nine months ended June 30, 2020, respectively. The variation in effective tax rates during the three and nine months ended June 30, 2021 and 2020 related primarily to higher allocations of taxable income in the U.S. in the fiscal 2021 reporting periods compared to certain lower-rate foreign jurisdictions, particularly the United Kingdom (“U.K.”). Additionally, the nine-month period ended June 30, 2021 was favorably impacted by the effect of current year restricted share unit lapses and stock option exercises occurring on dates when the share price of Company stock was significantly higher than the share price on the date such equity awards were granted, compared to the opposite effect during the prior year period. |
Litigation and Regulatory Matters |
9 Months Ended | ||
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Jun. 30, 2021 | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Litigation and Regulatory Matters |
On April 17, 2018, the Company’s wholly owned subsidiary Magellan received a subpoena from the U.S. Department of Justice (“DOJ”) regarding its LeadCare ® Magellan submitted 510(k) applications in December 2018, seeking to reinstate venous blood sample-types for its LeadCare II, LeadCare Plus and LeadCare Ultra testing systems. In the second fiscal quarter of 2019 the U.S. Food and Drug Administration (“FDA”) informed Magellan that each of these 510(k) applications had been put on Additional Information hold. On July 15, 2019, we provided responses to the FDA’s requests for Additional Information. These 510(k) applications have since expired and are no longer under FDA review. Further, while Magellan’s LeadCare testing systems remain cleared for marketing by the FDA and permitted for use with capillary blood samples, the FDA advised that it has commissioned a third-party study of the Company’s LeadCare testing systems using both venous and capillary blood samples. According to the FDA, the results of the field study will be used in conjunction with other information to determine whether further action by the FDA or the Centers for Disease Control and Prevention (“CDC”) is necessary to protect the public health. The Company intends to fully cooperate with the FDA or CDC on any follow-up based on the third-party study. During October 2019, the FDA performed a follow-up inspection of Magellan’s manufacturing facility. The FDA issued five Form FDA 483 observations. On March 18, 2020, we participated in a regulatory meeting with the FDA at the FDA’s request to further discuss the Form FDA 483 observations and our remediation efforts. Since the inspection, we have submitted a number of written responses to the FDA regarding the five Form FDA 483 observations issued in the October 2019 inspection, and have worked diligently to execute a remediation plan. During October 2020, the FDA issued Establishment Inspection Reports which closed out the inspections from June 2017 and October 2019 under 21 C.F.R.20.64(d)(3). During June 2021, the FDA performed an inspection of Magellan’s manufacturing facility. The inspection followed a voluntary recall, initiated in May 2021, involving certain manufactured lots of its LeadCare II, LeadCare Plus and LeadCare Ultra products. As a result of this inspection, the FDA issued one Form 483 observation. The FDA has identified this recall, which remains ongoing, as a Class I recall, and the Company is working closely with the FDA in its execution of the recall activities. Magellan is also responding to ongoing information requests from the FDA regarding issues related to the recall. Based upon information known at this time, the recall’s impact on the Company’s consolidated financial statements is not believed to be material and no related costs are included within the Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2021. On August 3, 2021, FDA sent Magellan a close-out letter for the Warning Letter that FDA issued to Magellan on October 23, 2017. FDA’s close-out letter notified Magellan that FDA has completed an evaluation of Magellan’s corrective actions in response to FDA’s Warning Letter, and based on FDA’s evaluation, Magellan has addressed the issues identified in the Warning Letter. FDA’s close-out letter also stated that future FDA inspections of Magellan and regulatory activities will further assess the adequacy and sustainability of Magellan’s corrections. |
Subsequent Events |
9 Months Ended | ||
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Jun. 30, 2021 | |||
Subsequent Events [Abstract] | |||
Subsequent Events |
On July 22, 2021, the Company signed a definitive agreement to acquire from Otsuka America Pharmaceutical, Inc. (“OAPI”) its BreathTek
® H. pylori |
Significant Accounting Policies (Policies) |
9 Months Ended | ||
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Jun. 30, 2021 | |||
Accounting Policies [Abstract] | |||
Recent Accounting Pronouncements |
Pronouncements Adopted On October 1, 2020, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments Pronouncements Issued but Not Yet Adopted as of June 30, 2021 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting In December 2019, the FASB issued ASU
2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes 2019-12”). ASU 2019-12 clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intraperiod tax allocation principles, the methodology for calculating income tax rates in an interim period, and recognition of deferred taxes for outside basis differences in an investment, among other updates. ASU 2019-12 will be effective for the Company’s fiscal year beginning on October 1, 2021. The Company is currently evaluating the impact of ASU 2019-12 but does not expect its application to have a material impact on the Condensed Consolidated Financial Statements. |
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Reclassifications |
Certain reclassifications have been made to the prior year Condensed Consolidated Financial Statements to conform to the current year presentation. Such reclassifications had no impact on net earnings or shareholders’ equity. |
Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Disaggregation of Revenue | The following tables present our revenues disaggregated by major geographic region, major product platform and disease state (Diagnostics segment only): Revenue by Reportable Segment & Geographic Region
Revenue by Product Platform/Type
Revenue by Disease State (Diagnostics segment only)
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Fair Value Measurements (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides information by level for financial assets and liabilities that are measured at fair value on a recurring basis:
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Business Combinations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information |
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Business Acquisition Proforma Adjustments |
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Exalenz [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Revenues and Net Loss Related to Acquisition | The Company’s consolidated results for the three and nine months ended June 30, 2021 and 2020 include the following from Exalenz:
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The recognized amounts of identifiable assets acquired and liabilities assumed in the acquisition of Exalenz are as follows:
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Cash and Cash Equivalents (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Cash and Cash Equivalents | Cash and cash equivalents include the following:
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Inventories, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | Inventories, net are comprised of the following:
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Leasing Arrangements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed income statement of operation | The lease costs for these operating leases reflected in our Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2021 and 2020, as well as the right-of-use
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Schedule of weighted average remaining lease term and discount rate | The weighted average remaining lease term for our operating leases and the weighted average discount rate used to measure our operating leases as of June 30, 2021 and September 30, 2020 were as follows:
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Schedule of maturities of lease liabilities | Maturities of lease liabilities by fiscal year for the Company’s operating leases were as follows as of June 30, 2021:
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Schedule of supplemental cash flow information related to the companys operating lease liabilities | Supplemental cash flow information related to the Company’s operating leases are as follows:
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Goodwill and Other Intangible Assets, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of acquired intangible assets subject to amortization | A summary of other intangible assets, net subject to amortization is as follows:
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Contingent Obligations and Non-Current Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||
Contingent Obligations and NonCurrent Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Government Grant Obligations Reflected in Condensed Consolidated Balance Sheet | These obligation amounts total $11,247 and $11,124 as of June 30, 2021 and September 30, 2020, respectively, and are reflected in the Condensed Consolidated Balance Sheets as follows:
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Reportable Segment and Major Customers Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Net Revenues | Individual Diagnostics or Life Science segment customers, including their affiliates, comprising 10% or more of reportable segment revenues during any of the three- and nine-month periods ended June 30, 2021 and 2020 were as follows:
In addition, during the three and nine months ended June 30, 2021, the Life Science segment’s ten largest customers, including their affiliates, accounted for approximately 46% and 43%, respectively, of Life Science segment revenues, and 24% and 27%, respectively, of consolidated revenues. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable segment Information | Reportable segment information for the interim periods is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax Earnings Table | A reconciliation of reportable segment operating income to consolidated earnings before income taxes for the interim periods is as follows:
|
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 63,511 | $ 84,797 | $ 241,692 | $ 189,514 |
Royalty income | 1,380 | 160 | 5,085 | 2,365 |
Lease Elements [Member] | Product Concentration Risk [Member] | Revenues [Member] | Reagent Rental Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 950 | $ 1,150 | $ 2,730 | $ 3,400 |
Business Combinations - Additional Information (Detail) $ in Thousands, ₪ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Apr. 30, 2020
USD ($)
|
Apr. 30, 2020
ILS (₪)
|
Apr. 30, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
|
Goodwill | $ 115,315 | $ 115,315 | $ 114,186 | |||||
Amortization of identifiable assets | 2,090 | $ 2,155 | 6,453 | $ 5,604 | ||||
Exalenz [Member] | ||||||||
Cash payment to acquire business | $ 48,237 | ₪ 168.6 | ||||||
Goodwill | 24,798 | $ 24,798 | ||||||
Amortization of identifiable assets | $ 720 | $ 448 | $ 2,240 | $ 448 | ||||
Percentage of Voting Interest | 100.00% | 100.00% | ||||||
Business Combination Consideration Transferred | $ 56,305 | |||||||
Net Cash Outlay To Acquire Businesses | $ 47,392 |
Business Combinations - Schedule of Consolidated Results of Net Revenue or Losses (Detail) - Exalenz [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Net revenues | $ 4,836 | $ 1,308 | $ 10,718 | $ 1,308 |
Net loss | $ (497) | $ (932) | $ (2,236) | $ (932) |
Business Combinations - Consolidated Pro Forma Results Of The Combined Entities (Detail) - Exalenz [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Business Acquisition, Pro Forma Information [Abstract] | ||||
Net revenues | $ 63,511 | $ 85,083 | $ 241,692 | $ 196,978 |
Net earnings | $ 11,669 | $ 27,403 | $ 64,750 | $ 38,433 |
Business Combinations - Business Acquisition, Pro Forma Adjustments (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 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) |
Cash and Cash Equivalents - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 70,012 | $ 53,514 |
Institutional Money Market Funds [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 1,017 | 1,017 |
Cash on hand, unrestricted [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 68,995 | $ 52,497 |
Inventories, Net - Components of Inventories (Detail) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Inventory [Line Items] | ||
Raw materials | $ 18,654 | $ 11,966 |
Work-in-process | 23,570 | 19,477 |
Total | 71,813 | 61,264 |
Instruments [Member] | ||
Inventory [Line Items] | ||
Finished goods | 1,975 | 1,594 |
Kits and Reagents [Member] | ||
Inventory [Line Items] | ||
Finished goods | $ 27,614 | $ 28,227 |
Leasing Arrangements - Schedule of Condensed Income Statement Of Operation (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Condensed Income Statements, Captions [Line Items] | ||||
Right-of-use assets, net obtained in exchange for operating lease liabilities | $ 381 | $ 1,394 | $ 1,073 | $ 1,616 |
Lease costs within cost of sales | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Operating lease cost | 213 | 165 | 569 | 424 |
Lease costs within operating expenses | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Operating lease cost | $ 390 | $ 330 | $ 1,151 | $ 889 |
Leasing Arrangements - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Detail) |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Weighted Average Remaining Lease Term And Weighted Average Discount rate Used To Measure Operating Lease [Abstract] | ||
Weighted average remaining lease term | 3 years 8 months 12 days | 4 years 2 months 12 days |
Average discount rate | 3.20% | 3.70% |
Leasing Arrangements - Schedule of maturities of lease liabilities (Detail) $ in Thousands |
Jun. 30, 2021
USD ($)
|
---|---|
Operating lease liabilities | |
2021 (represents remainder of fiscal year) | $ 613 |
2022 | 2,202 |
2023 | 1,590 |
2024 | 1,213 |
2025 | 913 |
Thereafter | 385 |
Total lease payments | 6,916 |
Less amount of lease payments representing interest | (380) |
Total present value of lease payments | $ 6,536 |
Leasing Arrangements - Schedule Of Supplemental Cash Flow Information Related To The CompanyS Operating Lease Liabilities (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1,611 | $ 1,213 |
Goodwill and Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Amortization of Intangible Assets | $ 2,090 | $ 2,155 | $ 6,453 | $ 5,604 |
2021 | 2,000 | 2,000 | ||
2022 | 7,995 | 7,995 | ||
2023 | 7,980 | 7,980 | ||
2024 | 7,975 | 7,975 | ||
2025 | 7,965 | 7,965 | ||
2026 | 7,295 | 7,295 | ||
Increase decrease in goodwill during the period | 1,129 | |||
Exalenz [Member] | ||||
Amortization of Intangible Assets | $ 720 | $ 448 | 2,240 | $ 448 |
Diagnostics [Member] | ||||
Increase decrease in goodwill foreign currency translation adjustment | 80 | |||
Diagnostics [Member] | Exalenz [Member] | ||||
Increase decrease in goodwill acquisition measurement period adjustment | 332 | |||
Life Science [Member] | ||||
Increase decrease in goodwill foreign currency translation adjustment | $ 717 |
Goodwill and Other Intangible Assets, Net - Summary of Acquired Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 126,396 | $ 125,969 |
Accumulated Amortization | 49,652 | 42,772 |
Manufacturing Technologies, Core Products and Cell Lines [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 62,451 | 62,363 |
Accumulated Amortization | 21,714 | 18,750 |
Tradenames, Licenses and Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 18,530 | 18,425 |
Accumulated Amortization | 9,225 | 7,801 |
Customer Lists, Customer Relationships, and Supply Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 45,305 | 45,071 |
Accumulated Amortization | 18,687 | 16,210 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 110 | 110 |
Accumulated Amortization | $ 26 | $ 11 |
Bank Credit Arrangements - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
May 24, 2019 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Feb. 19, 2020 |
|
Debt Instrument [Line Items] | ||||||
Line of credit facility borrowing Capacity | $ 160,000 | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Expiration of credit facility | May 2024 | |||||
Revolving credit facility interest rate percentage | 2.52% | 2.63% | 2.55% | 3.45% |
Contingent Obligations and Non-Current Liabilities - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Sep. 30, 2020 |
|
Potential Future Severance Indemnity [Member] | ||
Liability for potential severance indemnity | $ 756 | $ 814 |
Former Chief Executive Officer [Member] | ||
Post employment benefit obligations | 1,730 | 1,840 |
Exalenz [Member] | Long Term Government Grant Obligations [Member] | ||
Long term government grant obligations assumed payable | $ 11,247 | $ 11,124 |
Percentage of revenue generated to be applied towards repayment of grant obligations | 3.00% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Exalenz [Member] | Long Term Government Grant Obligations [Member] | ||
Long term debt stated rate of interest | 6.60% | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Exalenz [Member] | Long Term Government Grant Obligations [Member] | ||
Long term debt stated rate of interest | 0.58% |
Contingent Obligations and Non-Current Liabilities - Schedule of Government Grant Obligations Reflected in Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Contingent Obligations and NonCurrent Liabilities Disclosure [Abstract] | ||
Current liabilities | $ 735 | $ 600 |
Non-current liabilities | $ 10,512 | $ 10,524 |
National Institutes of Health Contracts - Additional information (Detail) - USD ($) $ in Thousands |
Feb. 01, 2021 |
Jun. 30, 2021 |
---|---|---|
Health contracts relating to research and development [Line Items] | ||
Grant Receipts Upon Milestone Achievement | $ 5,500 | |
Grant Contract Lease Term | 12 months | |
National Institute Of Health [Member] | Reimbursement Of Research And Development Expenditure Accrued [Member] | ||
Health contracts relating to research and development [Line Items] | ||
Reimbursement of research and development expenditure | $ 1,000 |
Reportable Segment and Major Customers Information - Pre-tax Earnings Table (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Corporate operating expenses | $ (2,998) | $ (2,849) | $ (11,286) | $ (7,832) |
Interest income | 0 | 3 | 15 | 137 |
Interest expense | (444) | (703) | (1,450) | (2,002) |
Other, net | 59 | 908 | (1,515) | 1,561 |
EARNINGS BEFORE INCOME TAXES | 15,295 | 34,873 | 82,595 | 51,546 |
RADx initiative grant income | 0 | 1,000 | ||
Operating income | 15,680 | 34,665 | 84,545 | 51,850 |
Operating Segments [Member] | ||||
Operating income | 18,678 | 37,514 | 95,831 | 59,682 |
Operating Segments [Member] | Diagnostics [Member] | ||||
Operating income | 2,510 | (1,783) | 3,749 | 8,087 |
Operating Segments [Member] | Life Science [Member] | ||||
Operating income | 16,129 | 39,305 | 92,015 | 51,564 |
Eliminations [Member] | ||||
Operating income | $ 39 | $ (8) | $ 67 | $ 31 |
Income Taxes - Additional Information (Detail) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Taxes Disclosure [Line Items] | ||||
Effective income tax rate continuing operations | 24.00% | 21.00% | 22.00% | 23.00% |
Litigation and Regulatory Matters - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Litigation costs [Abstract] | ||||
Litigation costs | $ 438 | $ 134 | $ 2,695 | $ 1,189 |
DOJ Subpoena [Member] | ||||
Litigation costs [Abstract] | ||||
Litigation filing date | April 17, 2018 | |||
Litigation costs | $ 438 | $ 134 | $ 2,695 | $ 1,145 |
Subsequent Event - Additional Information (Detail) $ in Thousands |
Jul. 22, 2021
USD ($)
|
---|---|
Subsequent Event [Member] | Otsuka America Pharmaceutical Inc [Member] | |
Subsequent Event [Line Items] | |
Cash payment to acquire business | $ 20,000 |
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