x | 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 |
Delaware | 11-3146460 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
14 Plaza Drive Latham, New York | 12110 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common stock, par value $.01 | NASDAQ Global Select Market | |
Preferred Stock Purchase Rights | NASDAQ Global Select Market |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Class | Outstanding as of October 3, 2016 | |
Common Stock, par value $.01 | 36,884,124 |
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. |
Three Months Ended | ||||||||
Aug 31, 2016 | Aug 31, 2015 | |||||||
Net sales | $ | 88,098 | $ | 83,753 | ||||
Cost of sales (exclusive of intangible amortization) | 43,066 | 40,382 | ||||||
Gross profit | 45,032 | 43,371 | ||||||
Operating expenses | ||||||||
Research and development | 6,709 | 6,129 | ||||||
Sales and marketing | 19,488 | 21,200 | ||||||
General and administrative | 8,168 | 7,914 | ||||||
Amortization of intangibles | 4,235 | 4,415 | ||||||
Change in fair value of contingent consideration | 443 | 355 | ||||||
Acquisition, restructuring and other items, net | 2,417 | 2,143 | ||||||
Medical device excise tax | — | 1,003 | ||||||
Total operating expenses | 41,460 | 43,159 | ||||||
Operating income (loss) | 3,572 | 212 | ||||||
Other (expenses) income | ||||||||
Interest expense | (723 | ) | (800 | ) | ||||
Interest income | 4 | 1 | ||||||
Other income (expense) | 50 | (118 | ) | |||||
Total other expenses, net | (669 | ) | (917 | ) | ||||
Income (loss) before income tax expense (benefit) | 2,903 | (705 | ) | |||||
Income tax expense | 1,603 | 70 | ||||||
Net income (loss) | $ | 1,300 | $ | (775 | ) | |||
Income (loss) per share | ||||||||
Basic | $ | 0.04 | $ | (0.02 | ) | |||
Diluted | $ | 0.04 | $ | (0.02 | ) | |||
Basic weighted average shares outstanding | 36,319 | 35,960 | ||||||
Diluted weighted average shares outstanding | 36,698 | 35,960 |
Three Months Ended | ||||||||
Aug 31, 2016 | Aug 31, 2015 | |||||||
Net Income (loss) | $ | 1,300 | $ | (775 | ) | |||
Other comprehensive income (loss), before tax: | ||||||||
Unrealized gain on interest rate swap | — | 66 | ||||||
Unrealized gain (loss) on marketable securities | (6 | ) | 3 | |||||
Foreign currency translation (loss) | (294 | ) | (90 | ) | ||||
Other comprehensive (loss), before tax | (300 | ) | (21 | ) | ||||
Income tax (expense) benefit related to items of other comprehensive income | 2 | (26 | ) | |||||
Other comprehensive (loss), net of tax | (298 | ) | (47 | ) | ||||
Total comprehensive income (loss), net of tax | $ | 1,002 | $ | (822 | ) |
Aug 31, 2016 | May 31, 2016 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 37,411 | $ | 32,333 | |||
Marketable securities | 1,647 | 1,653 | |||||
Accounts receivable, net of allowances of $4,094 and $4,372 respectively | 50,124 | 52,867 | |||||
Inventories | 58,274 | 55,370 | |||||
Prepaid income taxes | 568 | 788 | |||||
Prepaid expenses and other | 4,258 | 3,243 | |||||
Total current assets | 152,282 | 146,254 | |||||
Property, plant and equipment, net | 47,230 | 48,284 | |||||
Other assets | 3,605 | 3,827 | |||||
Intangible assets, net | 162,342 | 166,577 | |||||
Goodwill | 361,252 | 361,252 | |||||
TOTAL ASSETS | $ | 726,711 | $ | 726,194 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 15,648 | $ | 15,616 | |||
Accrued liabilities | 19,214 | 21,896 | |||||
Income taxes payable | 16 | 46 | |||||
Current portion of long-term debt | 17,500 | 16,250 | |||||
Current portion of contingent consideration | 13,053 | 12,919 | |||||
Total current liabilities | 65,431 | 66,727 | |||||
Long-term debt, net of current portion | 100,652 | 104,291 | |||||
Deferred income taxes, long-term | 23,246 | 21,684 | |||||
Contingent consideration, net of current portion | 23,565 | 25,356 | |||||
Other long-term liabilities | 1,100 | 908 | |||||
Total liabilities | 213,994 | 218,966 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
STOCKHOLDERS’ EQUITY | |||||||
Preferred stock, par value $.01 per share, 5,000,000 shares authorized; no shares issued and outstanding | — | — | |||||
Common stock, par value $.01 per share, 75,000,000 shares authorized; 36,881,766 and 36,420,403 shares issued and 36,739,461 and 36,278,098 shares outstanding at August 31, 2016 and May 31, 2016, respectively | 366 | 363 | |||||
Additional paid-in capital | 530,259 | 525,775 | |||||
Accumulated deficit | (14,715 | ) | (16,015 | ) | |||
Treasury stock, 142,305 shares, at cost | (2,104 | ) | (2,104 | ) | |||
Accumulated other comprehensive loss | (1,089 | ) | (791 | ) | |||
Total stockholders’ equity | 512,717 | 507,228 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 726,711 | $ | 726,194 |
Three Months Ended | |||||||
Aug 31, 2016 | Aug 31, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 1,300 | $ | (775 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 6,153 | 7,113 | |||||
Stock based compensation | 1,684 | 1,626 | |||||
Change in fair value of contingent consideration | 443 | 355 | |||||
Deferred income taxes | 1,565 | (208 | ) | ||||
Fixed and intangible asset impairments and disposals | 45 | 220 | |||||
Change in accounts receivable allowances | (197 | ) | 109 | ||||
Other | 18 | (13 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | 2,822 | 5,925 | |||||
Inventories | (3,049 | ) | (6,922 | ) | |||
Prepaid expenses and other assets | (869 | ) | (2,605 | ) | |||
Accounts payable, accrued and other liabilities | (2,475 | ) | (126 | ) | |||
Net cash provided by operating activities | 7,440 | 4,699 | |||||
Cash flows from investing activities: | |||||||
Additions to property, plant and equipment | (481 | ) | (743 | ) | |||
Net cash used in investing activities | (481 | ) | (743 | ) | |||
Cash flows from financing activities: | |||||||
Repayment of long-term debt | (2,500 | ) | (1,250 | ) | |||
Payment of contingent consideration previously established in purchase accounting | (2,100 | ) | (2,100 | ) | |||
Proceeds from exercise of stock options and employee stock purchase plan | 2,803 | 1,279 | |||||
Net cash (used in) financing activities | (1,797 | ) | (2,071 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (84 | ) | (8 | ) | |||
Increase in cash and cash equivalents | 5,078 | 1,877 | |||||
Cash and cash equivalents at beginning of period | 32,333 | 18,391 | |||||
Cash and cash equivalents at end of period | $ | 37,411 | $ | 20,268 | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Contractual obligations for acquisition of intangibles and business | $ | — | $ | — | |||
Contractual obligations for acquisition of fixed assets | $ | 52 | $ | 111 |
Common Stock | Additional paid in capital | Accumulated deficit | Accumulated other comprehensive loss | Treasury Stock | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||
Balance at May 31, 2016 | 36,420,403 | $ | 363 | $ | 525,775 | $ | (16,015 | ) | $ | (791 | ) | (142,305 | ) | $ | (2,104 | ) | $ | 507,228 | |||||||||||
Net income (loss) | 1,300 | 1,300 | |||||||||||||||||||||||||||
Exercise of stock options | 221,528 | 1 | 2,530 | 2,531 | |||||||||||||||||||||||||
Purchase of common stock under ESPP | 78,647 | 1 | 728 | 729 | |||||||||||||||||||||||||
Issuance of performance share units, net | 23,405 | — | — | — | |||||||||||||||||||||||||
Issuance of restricted stock units, net | 137,783 | 1 | (458 | ) | (457 | ) | |||||||||||||||||||||||
Stock based compensation | 1,684 | 1,684 | |||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (298 | ) | (298 | ) | |||||||||||||||||||||||||
Balance at August 31, 2016 | 36,881,766 | $ | 366 | $ | 530,259 | $ | (14,715 | ) | $ | (1,089 | ) | (142,305 | ) | $ | (2,104 | ) | $ | 512,717 |
Aug 31, 2016 | May 31, 2016 | ||||||
(in thousands) | |||||||
Raw materials | $ | 22,584 | $ | 21,669 | |||
Work in process | 11,528 | 10,700 | |||||
Finished goods | 24,162 | 23,001 | |||||
Inventories | $ | 58,274 | $ | 55,370 |
August 31, 2016 | |||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Weighted avg useful life | ||||||||||
(in thousands) | (years) | ||||||||||||
Product technologies | $ | 148,378 | $ | (53,553 | ) | $ | 94,825 | 10.2 | |||||
Customer relationships | 88,389 | (48,153 | ) | 40,236 | 11.9 | ||||||||
Trademarks | 28,470 | (6,976 | ) | 21,494 | 10.7 | ||||||||
In process R&D acquired | 3,600 | — | 3,600 | Indefinite | |||||||||
Licenses | 5,037 | (4,009 | ) | 1,028 | 9.1 | ||||||||
Distributor relationships | 2,150 | (991 | ) | 1,159 | 5.2 | ||||||||
$ | 276,024 | $ | (113,682 | ) | $ | 162,342 |
May 31, 2016 | |||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Weighted avg useful life | ||||||||||
(in thousands) | (years) | ||||||||||||
Product technologies | $ | 148,387 | $ | (51,313 | ) | $ | 97,074 | 10.2 | |||||
Customer relationships | 88,389 | (47,133 | ) | 41,256 | 11.9 | ||||||||
Trademarks | 28,470 | (6,242 | ) | 22,228 | 10.7 | ||||||||
In process R&D acquired | 3,600 | — | 3,600 | Indefinite | |||||||||
Licenses | 7,931 | (6,716 | ) | 1,215 | 7.6 | ||||||||
Distributor relationships | 2,150 | (946 | ) | 1,204 | 5.2 | ||||||||
$ | 278,927 | $ | (112,350 | ) | $ | 166,577 |
Aug 31, 2016 | May 31, 2016 | ||||||
(in thousands) | |||||||
Payroll and related expenses (1) | $ | 6,618 | $ | 9,414 | |||
Royalties | 2,345 | 2,489 | |||||
Accrued severance | 1,388 | 1,524 | |||||
Sales and franchise taxes (2) | 2,106 | 565 | |||||
Outside services (3) | 1,172 | 2,063 | |||||
Other | 5,585 | 5,841 | |||||
$ | 19,214 | $ | 21,896 |
Three Months Ended | |||||||
Aug 31, 2016 | Aug 31, 2015 | ||||||
Income (loss) before Income Taxes | $ | 2,903 | $ | (705 | ) | ||
Less discrete book income (expense): | |||||||
Non-taxable portion of change in fair value of contingent consideration | — | 170 | |||||
Ordinary income (loss) before income taxes | 2,903 | (875 | ) | ||||
Income tax expense (benefit) based on ordinary income (loss) at estimated tax rates | $ | 1,603 | $ | (376 | ) | ||
Discrete tax expense (benefit): | |||||||
Adjustment for elimination of the ASC 718 APIC pool | — | 471 | |||||
Adjustments to prior period tax liabilities | — | (25 | ) | ||||
Total income tax expense | $ | 1,603 | $ | 70 |
Three Months Ended | |||||
Aug 31, 2016 | Aug 31, 2015 | ||||
Basic | 36,319 | 35,960 | |||
Effect of dilutive securities | 379 | — | |||
Diluted | 36,698 | 35,960 | |||
Securities excluded as their inclusion would be anti-dilutive | 1,503 | 3,241 |
Three Months Ended | |||||||
Aug 31, 2016 | Aug 31, 2015 | ||||||
Net sales | |||||||
Peripheral Vascular | $ | 51,409 | $ | 47,106 | |||
Vascular Access | 25,005 | 24,645 | |||||
Oncology/Surgery | 11,064 | 11,334 | |||||
Supply Agreement | 620 | 668 | |||||
Total | $ | 88,098 | $ | 83,753 |
Three Months Ended | |||||||
Aug 31, 2016 | Aug 31, 2015 | ||||||
Net sales | |||||||
United States | $ | 71,753 | $ | 68,369 | |||
International | 15,725 | 14,716 | |||||
Supply Agreement | 620 | 668 | |||||
Total | $ | 88,098 | $ | 83,753 |
Level 1 | Quoted prices in active markets for identical assets or liabilities. Level 1 assets include money market funds that are traded in an active exchange market. |
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. When quoted market prices are unobservable, we obtain pricing information from an independent pricing vendor. The pricing vendor uses various pricing models for each asset class that are consistent with what other market participants would use. The inputs and assumptions to the model of the pricing vendor are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. The pricing vendor considers all available market observable inputs in determining the evaluation for a security. Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information. Included in Level 2 assets is our interest rate swap agreement which is valued using a mid-market valuation model. |
Level 3 | Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes the auction rate securities where independent pricing information was not able to be obtained and the contingent consideration related to the acquisition of Vortex, Microsulis and Clinical Devices. Our investments in auction-rate securities were classified as Level 3 as quoted prices were unavailable since these auction rate securities issued by New York state and local government authorities failed auction. Due to limited market information, we utilized a discounted cash flow (“DCF”) model to derive an estimate of fair value for contingent considerations for all periods presented. The assumptions used in preparing the DCF model included estimates with respect to the discount rate, amount and timing of future interest and principal payments and forward projections. Assumptions associated with the auction rate securities include the interest rate benchmarks, the probability of full repayment of the principal considering the credit quality and guarantees in place, and the rate of return required by investors to own such securities given the current liquidity risk. |
Fair Value Measurements using inputs considered as: | Fair Value at August 31, 2016 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Financial Assets | |||||||||||||||
Marketable securities | |||||||||||||||
U.S. government agency obligations | $ | — | $ | — | $ | 1,647 | $ | 1,647 | |||||||
Total | — | — | 1,647 | 1,647 | |||||||||||
Total Financial Assets | $ | — | $ | — | $ | 1,647 | $ | 1,647 | |||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn out | — | — | 36,618 | 36,618 | |||||||||||
Total Financial Liabilities | $ | — | $ | — | $ | 36,618 | $ | 36,618 | |||||||
Fair Value Measurements using inputs considered as: | Fair Value at May 31, 2016 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Financial Assets | |||||||||||||||
Marketable securities | |||||||||||||||
U.S. government agency obligations | $ | — | $ | — | $ | 1,653 | $ | 1,653 | |||||||
Total | — | — | 1,653 | 1,653 | |||||||||||
Total Financial Assets | $ | — | $ | — | $ | 1,653 | $ | 1,653 | |||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn out | — | — | 38,275 | 38,275 | |||||||||||
Total Financial Liabilities | $ | — | $ | — | $ | 38,275 | $ | 38,275 |
Financial Assets | Financial Liabilities | ||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||
Balance, May 31, 2016 | $ | 1,653 | $ | 38,275 | |||
Total gains or losses (realized/unrealized): | |||||||
Change in present value of contingent consideration (1) | — | 443 | |||||
Included in other comprehensive income (loss) | (6 | ) | — | ||||
Contingent consideration payments | — | (2,100 | ) | ||||
Balance, August 31, 2016 | $ | 1,647 | $ | 36,618 |
Fair value at | Valuation | ||||||||
Aug 31, 2016 | Technique | Unobservable Input | Range | ||||||
Revenue based payments | $ | 33,555 | Discounted cash flow | Discount rate | 4% | ||||
Probability of achieving sales | 75-100% | ||||||||
Projected fiscal year of payment | 2017 - 2023 | ||||||||
Milestone based payments | 3,063 | Discounted cash flow | Discount rate | 16% | |||||
Probability of achieving milestone | 75-100% | ||||||||
Projected fiscal year of payment | 2017 | ||||||||
Total | $ | 36,618 |
As of August 31, 2016 | Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available-for-sale securities | |||||||||||||||
U.S. government agency obligations | $ | 1,800 | $ | — | $ | (153 | ) | $ | 1,647 | ||||||
$ | 1,800 | $ | — | $ | (153 | ) | $ | 1,647 |
As of May 31, 2016 | Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available-for-sale securities | |||||||||||||||
U.S. government agency obligations | $ | 1,800 | $ | — | $ | (147 | ) | $ | 1,653 | ||||||
$ | 1,800 | $ | — | $ | (147 | ) | $ | 1,653 |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations. |
Three months ended | |||||||||||||
Aug 31, 2016 | Aug 31, 2015 | % Growth | Currency Impact (Pos) Neg | Constant Currency | |||||||||
Net Sales by Product Category | |||||||||||||
Peripheral Vascular | $ | 51,409 | $ | 47,106 | 9% | ||||||||
Vascular Access | 25,005 | 24,645 | 1% | ||||||||||
Oncology/Surgery | 11,064 | 11,334 | -2% | ||||||||||
Total Excluding Supply Agreement | 87,478 | 83,085 | 5% | 0% | 5% | ||||||||
Supply Agreement | 620 | 668 | -7% | 0% | -7% | ||||||||
Total | $ | 88,098 | $ | 83,753 | 5% | 0% | 5% | ||||||
Net Sales by Geography | |||||||||||||
United States | $ | 71,753 | $ | 68,369 | 5% | 0% | 5% | ||||||
International | 15,725 | 14,716 | 7% | 1% | 8% | ||||||||
Supply Agreement | 620 | 668 | -7% | 0% | -7% | ||||||||
Total | $ | 88,098 | $ | 83,753 | 5% | 0% | 5% | ||||||
Three months ended | |||||||||||
Aug 31, 2016 | Aug 31, 2015 | % Change | |||||||||
Gross profit | $ | 45.0 | $ | 43.4 | 4 | % | |||||
Gross profit % of sales | 51.1 | % | 51.8 | % | |||||||
Research and development | $ | 6.7 | $ | 6.1 | 10 | % | |||||
% of sales | 7.6 | % | 7.3 | % | |||||||
Selling and marketing | $ | 19.5 | $ | 21.2 | -8 | % | |||||
% of sales | 22.1 | % | 25.3 | % | |||||||
General and administrative | $ | 8.2 | $ | 7.9 | 4 | % | |||||
% of sales | 9.3 | % | 9.4 | % | |||||||
Medical device excise tax | $ | — | $ | 1.0 | -100 | % | |||||
% of sales | — | % | 1.2 | % |
Three months ended | ||||||||||||
Aug 31, 2016 | Aug 31, 2015 | $ Change | ||||||||||
Amortization of intangibles | $ | 4.2 | $ | 4.4 | $ | (0.2 | ) | |||||
Change in fair value of contingent consideration | $ | 0.4 | $ | 0.4 | $ | — | ||||||
Acquisition, restructuring and other items, net | $ | 2.4 | $ | 2.1 | $ | 0.3 | ||||||
Other expense | $ | (0.7 | ) | $ | (0.9 | ) | $ | 0.2 |
Three months ended | ||||||||
Aug 31, 2016 | Aug 31, 2015 | |||||||
Income tax expense (benefit) | $ | 1.6 | $ | 0.1 | ||||
Effective tax rate including discrete items | 55.2 | % | (9.9 | )% |
Three Months Ended | |||||||
Aug 31, 2016 | Aug 31, 2015 | ||||||
Cash provided by (used in): | |||||||
Operating activities | $ | 7,440 | $ | 4,699 | |||
Investing activities | (481 | ) | (743 | ) | |||
Financing activities | (1,797 | ) | (2,071 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (84 | ) | (8 | ) | |||
Net change in cash and cash equivalents | $ | 5,078 | $ | 1,877 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Issuer Purchases of Equity Securities | ||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under Plans or Programs | ||||||||
June 1 - June 30, 2016 | — | $ | — | — | — | |||||||
July 1 - July 31, 2016 | 9,063 | $ | 15.73 | — | — | |||||||
August 1 - August 31, 2016 | 7,092 | $ | 16.02 | — | — | |||||||
Total | 16,155 | $ | 15.85 | — | — |
(1) | The Company repurchased 16,155 shares during the three months ended August 31, 2016 from employees to satisfy tax withholding requirements on the vesting of restricted shares from equity-based awards. |
Item 3. | Defaults on Senior Securities. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
No. | Description | ||
10.1 | AngioDynamics 2016 Total Shareholder Return Performance Unit Agreement Program. | ||
10.2 | Form of 2015 Performance Share Award Agreement pursuant to the AngioDyanmics, Inc. 2004 Stock and Incentive Award Plan. | ||
10.3 | Change in Control Agreement, effective August 18, 2016, between AngioDynamics, Inc. and Michael C. Greiner. | ||
31.1 | Certification pursuant to Rule 13a-14(a) or 15d-14 under the Securities Exchange Act of 1934. | ||
31.2 | Certification pursuant to Rule 13a-14(a) or 15d-14 under the Securities Exchange Act of 1934. | ||
32.1 | Certification of Chief Executive Officer pursuant to Title 18, United States Code, Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
32.2 | Certification of Chief Financial Officer pursuant to Title 18, United States Code, Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
101.INS | XBRL Instance Document | ||
101.SCH | XBRL Schema Document | ||
101.CAL | XBRL Calculation Linkbase Documents | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB | XBRL Labels Linkbase Documents | ||
101.PRE | XBRL Presentation Linkbase Documents |
ANGIODYNAMICS, INC. | ||||
(Registrant) | ||||
Date: | October 5, 2016 | / S / JAMES C. CLEMMER | ||
James C. Clemmer, President, Chief Executive Officer (Principal Executive Officer) | ||||
Date: | October 5, 2016 | / S / MICHAEL C. GREINER | ||
Michael C. Greiner, Executive Vice President, Chief Financial Officer (Principal Financial and Principal Accounting Officer) |
III. | Performance Share Units |
TSR Performance Percentile Rank | Performance Share Units as a Percent of Target |
75th Percentile or above | 200% |
50th Percentile | 100% |
25th Percentile | 50% |
Below 25th Percentile | 0% |
IV. | Calculation of Total Shareholder Return and Definitions |
V. | Calculation of Percentile Performance |
VI. | Peer Group |
VII. | Payment Eligibility Criteria |
VIII. | Termination, Suspension or Modification and Interpretation of the Program |
Abaxis Inc. | Integra Lifesciences Holdings Corporation |
Abiomed Inc. | Intricon Corporation |
Accuray Inc. | Intuitive Surgical, Inc. |
AlphaTec Holdings Inc. | Invacare Corporation |
Articure, Inc. | Lakeland Industries Inc. |
Atrion Corporation | Lemaitre Vascular, Inc. |
C.R. Bard, Inc. | Masimo Corporation |
Becton, Dickinson & Company | Merit Medical Systems, Inc. |
Boston Scientific Corporation | Mine Safety Appliances Company |
Cantel Medical Corp. | Natus Medical Incorporated |
Conmed Corporation | NuVasive, Inc. |
CryoLife, Inc. | NxStage Medical, Inc. |
Cutera, Inc. | Resmed Inc. |
Cynosure, Inc. | RTI Surgical, Inc. |
Dexcom, Inc. | Span-America Medical Systems, Inc. |
Digirad Corp | Spectranetics Corporation |
Edwards Lifesciences Corporation | St. Jude Medical, Inc. |
Endologix, Inc. | Steris Corporation |
Exactech, Inc. | Stryker Corporation |
Haemonetics Corporation | Teleflex Incorporated |
ICU Medical, Inc. | Varian Medical Systems, Inc. |
Insulet Corporation | Vascular Solutions, Inc. |
I. | Company Performance Levels |
TSR Performance Percentile Rank | Performance Share Units as a Percent of Target |
75th Percentile or above | 200% |
50th Percentile | 100% |
25th Percentile | 50% |
Below 25th Percentile | 0% |
II. | The Peer Group (as defined in the Program) with respect to this Agreement is set forth below. |
Abaxis Inc. | Integra Lifesciences Holdings Corporation |
Abiomed Inc. | Intricon Corporation |
Accuray Inc. | Intuitive Surgical, Inc. |
AlphaTec Holdings Inc. | Invacare Corporation |
Articure, Inc. | Lakeland Industries Inc. |
Atrion Corporation | Lemaitre Vascular, Inc. |
C.R. Bard, Inc. | Masimo Corporation |
Becton, Dickinson & Company | Merit Medical Systems, Inc. |
Boston Scientific Corporation | Mine Safety Appliances Company |
Cantel Medical Corp. | Natus Medical Incorporated |
Conmed Corporation | NuVasive, Inc. |
CryoLife, Inc. | NxStage Medical, Inc. |
Cutera, Inc. | Resmed Inc. |
Cynosure, Inc. | RTI Surgical, Inc. |
Dexcom, Inc. | Span-America Medical Systems, Inc. |
Digirad Corp | Spectranetics Corporation |
Edwards Lifesciences Corporation | St. Jude Medical, Inc. |
Endologix, Inc. | Steris Corporation |
Exactech, Inc. | Stryker Corporation |
Haemonetics Corporation | Teleflex Incorporated |
ICU Medical, Inc. | Varian Medical Systems, Inc. |
Insulet Corporation | Vascular Solutions, Inc. |
1. | Terms used in this Agreement: |
a. | AngioDynamics means AngioDynamics, Inc., its successors or assigns, and any of their existing and future divisions, subsidiaries, and affiliates. |
b. | Confidential Information means all trade secrets, proprietary information, know-how, and confidential information disclosed to Executive or known by Executive as a result of Executive’s employment by AngioDynamics, not generally known in the trade or industry in which AngioDynamics is engaged, about AngioDynamics’ business operations, customers, suppliers, products, processes, machines, systems, and services, including research, development, manufacturing, purchasing, finance, data processing, engineering, marketing, designs, concepts, know-how, merchandising, and selling, and corresponding information about the products, processes, machines, and services of AngioDynamics, acquired by Executive during Executive’s employment by AngioDynamics. The fact that information is not patentable or copyrightable shall not affect its status as Confidential Information. |
c. | Conflicting Product means any product, process, machine, or service of any person or organization other than AngioDynamics, whether now existing or hereafter developed: (a) which is identical to, substantially the same as, an adequate substitute for, resembles, or competes with a product, process, machine, system, or service upon or with which Executive worked during Executive’s term of employment with AngioDynamics or about which Executive acquired Confidential Information; or (b) whose use or marketability could be enhanced by application to it of Confidential Information to which Executive had access during Executive’s employment with AngioDynamics; or (c) which is (or could reasonably be anticipated to be) marketed or distributed in such a manner and in such a geographic area as to actually compete with such a product, process, machine, or service of AngioDynamics. |
d. | Conflicting Organization means any person or organization, which is now or hereafter engaged directly or indirectly in research on or the acquisition, development, production, distribution, marketing, providing, or selling of a Conflicting Product. |
e. | Terms not defined herein shall have the meaning ascribed to such terms in the Severance Agreement. |
2. | Non-Competition. |
a. | For a period of: twenty four (24) months after termination of Executive’s employment with AngioDynamics pursuant to the Severance Agreement, Executive will not render services, directly or indirectly, to any Conflicting Organization. |
b. | The restrictions set forth in Section 2(a) apply in the United States and in any foreign country or foreign territory where AngioDynamics produces, sells, or markets its goods and services. |
3. | Non-Solicitation. |
a. | Business Relations. Executive agrees that for a period of twenty four (24) months after the termination of Executive’s employment with AngioDynamics pursuant to the Severance Agreement, Executive will not solicit, induce, attempt to induce, appropriate, direct, or assist another to appropriate or direct, or provide any services to any current customer, supplier, licensee, or other business relation (defined as any customer, supplier, licensee, or other business relation of AngioDynamics with whom Executive had dealings and/or for whom Executive performed services at any time during the last two (2) years of Executive’s employment with AngioDynamics) to cease doing business with AngioDynamics (including, without limitation, making any negative statements or communications concerning AngioDynamics or any of its directors, officers, or employees). |
b. | Employees. Executive agrees that for a period of twenty four (24) months after the termination of Executive’s employment with AngioDynamics pursuant to the Severance Agreement, Executive will not solicit, interfere with, encourage, endeavor, or engage in discussions with any employee or independent contractor of AngioDynamics for the purpose of (or with a view toward) having such employee or independent contractor leave the employment (or independent contractor assignment) of AngioDynamics for any reason, including leaving to render services to any Conflicting Organization. |
4. | Miscellaneous. |
a. | This Agreement shall be binding upon Executive, and upon Executive’s spouse, heirs, executors, assigns and administrators and shall inure to the benefit of AngioDynamics, its successors, and assigns. |
b. | Any dispute arising under or in connection with this Agreement or related to any matter which is the subject of this Agreement shall be subject to the exclusive jurisdiction of the state and federal courts located in New York, and this Agreement shall be construed under and according to the laws of the State of New York, without regard to its conflict of laws rules. |
c. | The parties acknowledge that any breach or threatened breach of this Agreement by Executive will cause AngioDynamics material and irreparable injury and monetary damages may not be an adequate remedy for such injury. In the event of a breach or threatened breach of this Agreement, AngioDynamics may pursue any remedies at law or equity available to it, including injunctive relief. Notwithstanding anything contained in this Agreement to the contrary, in addition to any remedies available to AngioDynamics (and not in exclusion of any such remedies) in the event of a breach of this Agreement, the Executive shall be required to remit to AngioDynamics any severance payments paid to Executive by AngioDynamics pursuant to this Agreement |
d. | If any provision of this Agreement is held by any court of competent jurisdiction to be illegal, overly broad, invalid, or otherwise unenforceable in duration, geographical coverage, substantive scope, or otherwise, then this Agreement will be deemed amended to the extent necessary to render the otherwise unenforceable provision, and the rest of the Agreement, valid and enforceable. If a court declines to amend this Agreement as provided herein, the invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of the remaining provisions, which shall be enforced as if the offending provision had not been included in this Agreement. |
e. | Nothing herein shall obligate AngioDynamics to continue to retain Executive in AngioDynamics’ employment or limit or impair AngioDynamics’ ability to terminate Executive’s employment at will, with or without cause for any reason. Executive is an employee at will. |
f. | In the event of a violation of this Agreement, the time limitations set forth in this Agreement shall be extended for a period of time equal to the period of time during which such breach occurs, and, in the event AngioDynamics is required to seek relief from such breach before any court, board, or other tribunal, then the time limitation shall be extended for a period of time equal to the pendency of such proceedings, including all appeals. |
g. | For twenty four (24) months following the termination of Executive’s employment with AngioDynamics pursuant to the Severance Agreement, Executive agrees to show this Agreement to any prospective employer before Executive directly or indirectly owns, manages, operates, controls, becomes employed by, becomes a shareholder of, becomes a director of, becomes an officer of, participates in, contracts with or becomes connected in any capacity or in any manner with such person or entity during any restrictive period provided in this Agreement. Executive also agrees to inform AngioDynamics at the time Executive gives notice of separation from employment, of the identity of Executive’s new employer and Executive’s new job title and responsibilities. |
h. | Executive ACKNOWLEDGES HAVING READ, EXECUTED, AND RECEIVED A COPY OF THIS AGREEMENT, UNDERSTANDS HIS/HER OBLIGATIONS UNDER THIS AGREEMENT, SIGNS IT VOLUNTARILY, INTENDS TO BE LEGALLY BOUND BY THIS AGREEMENT, AND AGREES THAT WITH RESPECT TO THE SUBJECT MATTER HEREOF IT IS EXECUTIVE’S ENTIRE AGREEMENT WITH ANGIODYNAMICS AND SUPERSEDES ANY PREVIOUS ORAL OR WRITTEN COMMUNICATIONS, REPRESENTATIONS, UNDERSTANDINGS, OR AGREEMENTS WITH ANGIODYNAMICS OR ANY OF ITS OFFICIALS OR REPRESENTATIVES. |
1. | I have reviewed this quarterly report on Form 10-Q of AngioDynamics, 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 registrant's other certifying officer 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 provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
(b) | Designed such internal control 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 financial statements for external purposes in accordance with generally accepted accounting principles; | |
(c) | Evaluated the effectiveness of the registrant's 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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's 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 registrant's 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 registrant's internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of AngioDynamics, 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 registrant's other certifying officer 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 provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
(b) | Designed such internal control 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 financial statements for external purposes in accordance with generally accepted accounting principles; | |
(c) | Evaluated the effectiveness of the registrant's 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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's 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 registrant's 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 registrant's internal control over financial reporting. |
1. | the quarterly report on Form 10-Q of the Company for the fiscal quarter ended August 31, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); 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 / James C. Clemmer | |
James C. Clemmer, President, Chief Executive Officer |
1. | the quarterly report on Form 10-Q of the Company for the fiscal quarter ended August 31, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); 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 / Michael C. Greiner | |
Michael C. Greiner, Executive Vice President and Chief Financial Officer |
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Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Oct. 03, 2016 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 31, 2016 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ANGO | |
Entity Registrant Name | ANGIODYNAMICS INC | |
Entity Central Index Key | 0001275187 | |
Current Fiscal Year End Date | --05-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 36,884,124 |
Consolidated Condensed Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net Income (loss) | $ 1,300 | $ (775) |
Other comprehensive income (loss), before tax: | ||
Unrealized gain on interest rate swap | 0 | 66 |
Unrealized gain (loss) on marketable securities | (6) | 3 |
Foreign currency translation (loss) | (294) | (90) |
Other comprehensive (loss), before tax | (300) | (21) |
Income tax (expense) benefit related to items of other comprehensive income | 2 | (26) |
Other comprehensive (loss), net of tax | (298) | (47) |
Total comprehensive income (loss), net of tax | $ 1,002 | $ (822) |
Consolidated Condensed Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Aug. 31, 2016 |
May 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 4,094 | $ 4,372 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 36,881,766 | 36,420,403 |
Common stock, shares outstanding | 36,739,461 | 36,278,098 |
Treasury stock, shares | 142,305 | 142,305 |
Consolidated Condensed Statement of Stockholders' Equity (unaudited) - 3 months ended Aug. 31, 2016 - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Common Stock [Member]
Performance Shares [Member]
|
Common Stock [Member]
Restricted Stock Units (RSUs) [Member]
|
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Loss [Member] |
Treasury Stock [Member] |
---|---|---|---|---|---|---|---|---|
Beginning Balance at May. 31, 2016 | $ 507,228 | $ 363 | $ 525,775 | $ (16,015) | $ (791) | $ (2,104) | ||
Beginning Balance, Shares at May. 31, 2016 | 36,420,403 | |||||||
Beginning Balance,Treasury Shares at May. 31, 2016 | (142,305) | (142,305) | ||||||
Net income (loss) | $ 1,300 | 1,300 | ||||||
Exercise of stock options | 2,531 | $ 1 | 2,530 | |||||
Exercise of stock options, Shares | 221,528 | |||||||
Purchase of common stock under ESPP | 729 | $ 1 | 728 | |||||
Purchase of common stock under ESPP, Shares | 78,647 | |||||||
Issuance of performance share units and restricted stock units, net | (457) | $ 1 | (458) | |||||
Issuance of performance share units and restricted stock units, net, Shares | 23,405 | 137,783 | ||||||
Stock based compensation | 1,684 | 1,684 | ||||||
Other comprehensive income, net of tax | (298) | (298) | ||||||
Ending Balance at Aug. 31, 2016 | $ 512,717 | $ 366 | $ 530,259 | $ (14,715) | $ (1,089) | $ (2,104) | ||
Ending Balance, Shares at Aug. 31, 2016 | 36,881,766 | |||||||
Ending Balance,Treasury Shares at Aug. 31, 2016 | (142,305) | (142,305.000) |
Consolidated Condensed Financial Statements |
3 Months Ended |
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Aug. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidated Condensed Financial Statements | CONSOLIDATED CONDENSED FINANCIAL STATEMENTS The consolidated condensed balance sheet as of August 31, 2016, the consolidated condensed statement of stockholders’ equity and consolidated condensed statement of cash flows for the three months ended August 31, 2016 and the consolidated condensed statements of income (loss) and consolidated condensed statements of comprehensive income (loss) for the three months ended August 31, 2016 and August 31, 2015 have been prepared by us and are unaudited. The consolidated condensed balance sheet as of May 31, 2016 was derived from audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to state fairly the financial position, changes in stockholders’ equity and comprehensive income, results of operations and cash flows as of and for the period ended August 31, 2016 (and for all periods presented) have been made. The unaudited interim consolidated condensed financial statements for the three months ended August 31, 2016 and August 31, 2015 include the accounts of AngioDynamics, Inc. and its wholly owned subsidiaries, collectively, the “Company”. All intercompany balances and transactions have been eliminated. Recent Developments On July 22, 2016, Michael C. Greiner was appointed Executive Vice President and Chief Financial Officer ("CFO") of the Company, effective August 16, 2016. On July 27, 2016, Peter J. Kish was designated as the principal financial officer and principal accounting officer of the Company by the Board of Directors of the Company. Mr. Kish served in this role until Mr. Greiner began his service as CFO on August 16, 2016. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Inventories are stated at lower of cost (using the first-in, first-out method) or market. As of August 31, 2016 and May 31, 2016, inventories consisted of the following:
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Other Assets |
3 Months Ended |
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Aug. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS On March 2, 2015, the Company filed an 8-K stating that it executed a non-binding letter of intent to enter into a strategic relationship with privately-held EmboMedics Inc., which develops injectable and resorbable embolic microspheres. On April 9, 2015, the Company entered into a License, Distribution, Manufacturing and Purchase Option Agreement with EmboMedics Inc, subject to certain approvals by EmboMedics shareholders. Under the terms of the agreement, AngioDynamics received an exclusive worldwide license to market and sell, upon regulatory clearances, EmboMedics’ microsphere technology. AngioDynamics has the ability to determine the manufacturing of the products. On December 7, 2015, AngioDynamics made an initial $2.0 million purchase of non-transferable warrants in a subsidiary of EmboMedics which become exercisable upon a change of control of EmboMedics. The Company does not have significant influence, or control of the subsidiary. This initial investment is recorded at cost and the Company will review for impairment at each balance sheet date. The warrants are not exercisable at the original issue date or the balance sheet date as they only become exercisable upon a change of control, termination of the agreement or delivery of an offer notice. Based on the achievement of certain development activities, the Company will make an additional $5.0 million purchase of non-transferable warrants and an additional $4.0 million in milestone payments based on regulatory approvals. In the future, AngioDynamics could execute an exclusive option to acquire this subsidiary of EmboMedics. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Intangible assets other than goodwill and indefinite lived intangible assets are amortized over their estimated useful lives, which range between one and eighteen years, on either a straight-line basis or proportionately to the benefit being realized. We periodically review the estimated useful lives of our intangible assets and review such assets for impairment, based on estimated future cash flows, whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If an intangible asset is considered to be impaired, the amount of the impairment will equal the excess of the carrying value over the fair value of the asset. We consider our business to be a single operating segment entity, and a single reporting unit engaged in the development, manufacture and sale on a global basis of medical devices for vascular access, peripheral vascular disease, oncology and surgery. Goodwill and other intangible assets that have indefinite useful lives are not amortized, but rather, are tested for impairment annually or more frequently if impairment indicators arise. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Goodwill and intangible assets have been recorded at either incurred or allocated costs based on respective fair market values at the date of acquisition. For goodwill, the impairment test requires a comparison of the estimated fair value of the reporting unit to which the goodwill is assigned to the sum of the carrying value of the assets and liabilities of that unit. If the sum of the carrying value of the assets and liabilities of a reporting unit exceeds the fair value of the reporting unit, the carrying value of the reporting unit’s goodwill is reduced to its implied fair value through an adjustment to the goodwill balance, resulting in an impairment charge. We completed our annual goodwill impairment test as of December 31, 2015. At December 31, 2015, our reporting unit is the same as our one reportable segment. Our assessment of goodwill impairment indicated that the fair value of our reporting unit exceeded its carrying value and therefore goodwill was not impaired. Even though we determined that there was no goodwill impairment as of December 31, 2015, the future occurrence of a potential indicator of impairment, such as a significant adverse change in legal, regulatory, business or economic conditions or a more-likely-than-not expectation that the reporting unit or a significant portion of the reporting unit will be sold or disposed of, would require an interim assessment for the reporting unit prior to the next required annual assessment as of December 31, 2016. We continued to assess impairment through August 31, 2016 and noted no events that would be considered a triggering event. There were no adjustments to goodwill for the three months ended August 31, 2016. As of August 31, 2016 and May 31, 2016, intangible assets consisted of the following:
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Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | ACCRUED LIABILITIES As of August 31, 2016 and May 31, 2016, accrued liabilities consisted of the following:
(1) Includes accrued payroll, commissions and bonus. Decrease from year end due to bonus payment in the first quarter. (2) Includes accrued federal and state withholdings on equity, accrued VAT and state tax liabilities. Increase from year end due to tax liabilities related to equity exercises. (3) Includes accrued legal fees. Decrease from year end due to payments made in the first quarter. |
Long Term Debt |
3 Months Ended |
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Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long Term Debt | LONG TERM DEBT On September 19, 2013, we entered into a Credit Agreement (the “Credit Agreement”) with the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A. and Keybank National Association as co-syndication agents, and J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Keybank National Association as joint bookrunners and joint lead arrangers. The Credit Agreement provides for a $100 million senior secured term loan facility (“Term Loan”) and a $100 million senior secured revolving credit facility, which includes up to a $20 million sublimit for letters of credit and a $5 million sublimit for swingline loans (the “Revolving Facility”, and together with the Term Loan, the “Facilities”). On September 19, 2013, we borrowed $100 million under the Term Facility and approximately $41.4 million under the Revolving Facility to repay the Former Credit Agreement. As of August 31, 2016, $82.5 million and $36.4 million were outstanding under the Term Facility and Revolving Facility, respectively. As of August 31, 2016 and May 31, 2016 the carrying value of long-term debt approximates its fair market value. The proceeds of the Revolving Facility may be used for general corporate purposes of AngioDynamics and its subsidiaries. The Facilities have a five years maturity. The Term Loan has a quarterly repayment schedule equal to 5%, 5%, 10%, 15% and 65% of its principal amount in years one through five. Interest on both the Term Loan and Revolving Facility are based on a base rate or Eurodollar rate plus an applicable margin which increases as our total leverage ratio increases, with the base rate and Eurodollar rate having ranges of 0.50% to 1.25% and 1.5% to 2.25% respectively. After default, the interest rate may be increased by 2.0%. The Revolving Facility carries a commitment fee of 0.2% to 0.35% per annum on the unused portion. Our obligations under the Facilities are unconditionally guaranteed, jointly and severally, by our material direct and indirect domestic subsidiaries (the “Guarantors”). All obligations of AngioDynamics and the Guarantors under the Facilities are secured by first priority security interests in substantially all of the assets of AngioDynamics and the Guarantors. The Credit Agreement includes customary representations, warranties and covenants, and acceleration, indemnity and events of default provisions, including, among other things, two financial covenants. The first financial covenant requires us to maintain, as of the end of each of our fiscal quarters, a ratio of consolidated adjusted EBITDA minus consolidated capital expenditures to consolidated interest expense paid or payable in cash plus scheduled principal payments in respect of indebtedness under the Credit Agreement of not less than 1.35 to 1.00. The second financial covenant requires us to maintain, as of the end of each of our fiscal quarters, a ratio of consolidated total indebtedness to consolidated adjusted EBITDA of not greater than 3.75 to 1.00. We were in compliance with both covenants as of August 31, 2016. |
Income Taxes |
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Income Taxes | INCOME TAXES The following table presents the components of income tax expense for the three months ended August 31, 2016 and August 31, 2015 (in thousands of dollars):
The estimated full year effective tax rate prior to discrete items was 55.2% in the first quarter of fiscal 2017, as compared to 43.0% for the same period in fiscal 2016. The change in the effective tax rate is primarily driven by the impact of the US valuation allowance and the deferred tax liability related to intangibles that have an indefinite reversal period and cannot be used to support the deferred tax assets. A valuation allowance is established if it is more likely than not that all, or a portion of the deferred tax asset will not be realized. The Company has established that it is more likely than not that some, or all of their deferred tax assets will not be recognized in future years. Consequently, the Company continues to maintain a full U.S. valuation allowance on its net deferred tax assets. Management will continue to reevaluate the positive and negative evidence at each reporting period and if future results as projected in the U.S. and our tax planning strategies are favorable, the valuation allowance may be removed, which could have a favorable material impact on our results of operations in the period in which it is recorded. |
Share-Based Compensation |
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Aug. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We have two stock-based compensation plans that provide for the issuance of up to approximately 6.8 million shares of common stock. The 2004 Stock and Incentive Award Plan (the "2004 Plan") provides for the grant of incentive options to our employees and for the grant of non-statutory stock options, restricted stock, stock appreciation rights, performance units, performance shares and other incentive awards to our employees, directors and other service providers. We also have an employee stock purchase plan. For the three months ended August 31, 2016 and August 31, 2015, share-based payment expense was $1.7 million and $1.6 million, respectively. In the three months ended August 31, 2016 and August 31, 2015, the company granted stock options and restricted stock units under the 2004 Plan to certain employees and members of the Board of Directors. Stock option awards are valued using the Black-Scholes option-pricing model and then amortized on a straight-line basis over the requisite service period of the award. Restricted stock unit awards are valued based on the closing trading value of our shares on the date of grant and then amortized on a straight-line basis over the requisite service period of the award. In the first quarter of fiscal year 2017 and 2016, the company granted performance share awards under the 2004 Plan to certain employees. The awards may be earned by achieving relative performance levels over the three years requisite service period. The performance criteria are based on the total shareholder return ("TSR") of the company's common stock relative to the TSR of the common stock of a pre-defined industry peer-group. The fair value of these awards are based on the closing trading value of our shares on the date of grant and use a Monte Carlo simulation model. As of August 31, 2016, there were $18.3 million of unrecognized compensation expenses related to share-based payment arrangements. These costs are expected to be recognized over a weighted-average period of approximately four years. The Company has sufficient shares to satisfy expected share-based payment arrangements. |
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Earnings Per Share | EARNINGS PER SHARE Basic earnings per share are based on the weighted average number of common shares outstanding without consideration of potential common stock. Diluted earnings per share include the dilutive effect of potential common stock consisting of stock options, restricted stock units and performance stock units, provided that the inclusion of such securities is not antidilutive. In periods with a net loss, stock options and restricted stock units are not included in the computation of diluted loss per share as the impact would be anti-dilutive. The following table reconciles basic to diluted weighted-average shares outstanding for the three months ended August 31, 2016 and August 31, 2015 (in thousands):
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Segment and Geographic Information |
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Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION We consider our business to be a single operating segment entity engaged in the development, manufacture and sale of medical devices for vascular access, peripheral vascular disease, oncology and surgery on a global basis. Our chief operating decision maker (CEO) evaluates the various global product portfolios on a net sales basis. Executives reporting to the CEO include those responsible for commercial operations, manufacturing operations, regulatory and quality and certain corporate functions. The CEO evaluates profitability, investment and cash flow metrics on a consolidated worldwide basis due to shared infrastructure and resources. The table below summarizes net sales by product category (in thousands of dollars):
The table below presents net sales by geographic area based on external customer location (in thousands of dollars):
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Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | FAIR VALUE Our financial instruments include cash and cash equivalents, accounts receivable, marketable securities, accounts payable and contingent consideration. The carrying amount of cash and cash equivalents, accounts receivable, and accounts payable approximates fair value due to the immediate or short-term maturities. Marketable securities have been recorded at their fair value based on a valuation received from an independent third party. The contingent consideration has been recorded at fair value using the income approach. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This policy establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy describes three levels of inputs that may be used to measure fair value which are provided in the table below.
The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis as of August 31, 2016 and May 31, 2016 (in thousands of dollars):
There were no transfers in and out of Level 1, 2 and 3 measurements for the three months ended August 31, 2016 and May 31, 2016. The table below presents the changes in fair value components of Level 3 instruments in the three months ended August 31, 2016 (in thousands of dollars):
(1) Change in present value of contingent consideration is included in earnings and comprised of changes in estimated earn out payments based on projections of company performance and the amortization of the present value discount. Contingent Liabilities for Acquisition Earn Outs Certain of our business combinations involve the potential for the payment of future contingent consideration upon the achievement of certain product development milestones or various other performance conditions. Payment of the additional consideration is generally contingent on the acquired company reaching certain performance milestones, including attaining specified revenue levels or product development targets. Contingent consideration is recorded at the estimated fair value of the contingent payments on the acquisition date. The fair value of the contingent consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense within change in fair value of contingent consideration in the consolidated statements of income. We measure the initial liability and remeasure the liability on a recurring basis using Level 3 inputs as defined under authoritative guidance for fair value measurements. The fair value of our liability for contingent consideration is determined using a discounted cash flow model applied to projected net sales, using probabilities of achieving projected net sales and projected payment dates. Projected net sales are based on our internal projections and extensive analysis of the target market and the sales potential. Increases or decreases in any valuation inputs in isolation may result in a significantly lower or higher fair value measurement in the future. At August 31, 2016, the revenue based payments are being calculated based on our current sales forecast which is at the minimums for contingent payments. The recurring Level 3 fair value measurements of the contingent consideration liabilities include the following significant unobservable inputs as of August 31, 2016 (in thousands of dollars):
At August 31, 2016, the estimated potential amount of undiscounted future contingent consideration that we expect to pay as a result of all completed acquisitions is approximately $38.7 million. The milestones, including sales projections, associated with the contingent consideration must be reached in future periods ranging from fiscal years 2017 to 2023 in order for the associated consideration to be paid. |
Marketable Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | MARKETABLE SECURITIES Marketable securities, which are principally government agency bonds, auction rate investments and corporate commercial paper, are classified as “available-for-sale securities” and are reported at fair value, with unrealized gains and losses excluded from operations and reported as accumulated other comprehensive income (loss), net of the related tax effects, in stockholders’ equity. Cost is determined using the specific identification method. We hold investments in auction rate securities in order to generate higher than typical money market rate investment returns. Auction rate securities typically are high credit quality, generally achieved with municipal bond insurance. Credit risks are eased by the historical track record of bond insurers, which back a majority of this market. Sell orders for any security traded through an auction process could exceed bids and, in such cases, the auction fails and we may be unable to liquidate our position in the securities in the near term. As of August 31, 2016 and May 31, 2016, we had $1.6 million and $1.7 million, respectively, in investments in two auction rate securities issued by New York state and local government authorities that failed auctions. The authorities are current in their interest payments on the securities. The auction rate securities mature in 2022 and 2029. As of August 31, 2016 and May 31, 2016, marketable securities consisted of the following (in thousands of dollars):
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Commitments and Contingencies |
3 Months Ended |
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Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is involved in various legal proceedings, including commercial, intellectual property, product liability, regulatory and environmental matters of a nature considered normal for its business. The Company accrues for amounts related to these matters if it is probable that a liability has been incurred, and an amount can be reasonably estimated. The Company discloses such matters when there is at least a reasonable possibility that a material loss may have been incurred. However, the Company cannot predict the outcome of any litigation or the potential for future litigation. AngioDynamics v. biolitec On January 2, 2008, we commenced an action in the United States District Court for the Northern District of New York entitled AngioDynamics, Inc. v. biolitec, Inc. In this action, we sought judgment against biolitec for defense and indemnification in two lawsuits which we previously settled. Our claims arise out of a Supply and Distribution Agreement (“SDA”) entered into with biolitec on April 1, 2002. On September 27, 2011, the U.S. District Court granted key portions of our motion for summary judgment in our legal case against biolitec. The Court also dismissed biolitec’s counterclaims against us. The court denied one portion of our summary judgment motion, which sought to recover additional costs from biolitec, leaving this for adjudication at trial. On November 8, 2012, the Court granted partial judgment to us in the amount of $23.2 million. Biolitec appealed this judgment. On August 23, 2013, the U.S. Court of Appeals for the Second Circuit dismissed biolitec’s appeal. In October 2009, we commenced an action in the United States District Court for the District of Massachusetts entitled AngioDynamics, Inc. v. biolitec AG and Wolfgang Neuberger. The Complaint in this action was amended in March 2010. This action seeks to recover against biolitec, Inc.’s parent entities and CEO for tortiously interfering with biolitec, Inc.’s contractual obligation to defend and indemnify us, and also seeks to pierce the corporate veil of biolitec, Inc. and to invalidate certain alleged fraudulent transfers in order to hold biolitec, Inc.’s parent entities jointly and severally liable for the alleged breach of the SDA. On September 13, 2012, the Massachusetts Court granted our request for a preliminary injunction prohibiting the downstream merger of biolitec AG with its Austrian subsidiary. On April 1, 2013, the U.S. Court of Appeals for the First Circuit affirmed the preliminary injunction. On January 14, 2014, the District Court entered judgment in our favor as to liability. On March 18, 2014, the District Court entered judgment in our favor against Biolitec AG, Biomed Technology Holdings, Ltd., and Wolfgang Neuberger, jointly and severally, in the amount of $74.9 million. On March 11, 2015, the U.S. Court of Appeals for the First Circuit affirmed the judgment. The defendants petitioned to the U.S. Supreme Court for a writ of certiorari. The Supreme Court denied the petition on November 30, 2015. The defendants have also filed an appeal with the U.S. Court of Appeals for the First Circuit regarding civil contempt sanctions imposed by the Massachusetts District Court as a result of defendants’ completion of the downstream merger in violation of the Court’s injunction. On May 6, 2016, the First Circuit issued an opinion rejecting this latest appeal. On February 18, 2016, the Massachusetts District Court issued an order compelling the Massachusetts defendants to provide post-judgment discovery intended to aid us in potentially collecting our judgment. On March 21, 2016, the Massachusetts defendants noticed an appeal from this order. On August 31, 2016, the First Circuit dismissed that appeal. On June 27, 2016, we filed a motion asking the Massachusetts District Court to impose sanctions on the Massachusetts defendants for their failure to comply with the post-judgment discovery order. On November 13, 2014, the U.S. District Court for the District of Massachusetts issued summonses to four Biolitec entities - Biolitec U.S., Inc., Biolitec Holding U.S., Inc., Biolitec Medical Devices, Inc., and CeramOptec Industries, Inc. - pursuant to Massachusetts trustee process. We sought to use this process to attach the assets of these entities in order to satisfy our judgment. The trustee process was automatically stayed when the four Biolitec entities filed Chapter 7 petitions in the U.S. Bankruptcy Court for the District of Delaware. However, on November 3, 2015, the Delaware Bankruptcy Court granted our request to modify the automatic stay to allow us to seek a default against the four Biolitec entities pursuant to trustee process. On January 21, 2016, the four Chapter 7 cases were transferred at our request to the U.S. Bankruptcy Court for the District of New Jersey. On August 29, 2013, we became co-plaintiffs in an adversary proceeding in the United States Bankruptcy Court for the District of New Jersey entitled Cyganowski, Trustee, et al. v. Biolitec U.S., Inc., et al. In this action, we assert claims of conversion, unjust enrichment, tortious interference, and unfair competition against various biolitec entities for alleged violation of Bankruptcy Court settlement and sale orders under which we acquired certain assets of Biolitec, Inc. On September 3, 2013, we, along with our co-plaintiff, obtained a temporary restraining order against the defendants in this action. On January 22, 2015, the Bankruptcy Court entered a permanent injunction on our behalf for an additional two years. C.R. Bard, Inc. v. AngioDynamics, Inc. On January 11, 2012, C.R. Bard, Inc. (“Bard”) filed a suit in the United States District Court of Utah claiming certain of our implantable port products infringe on three U.S. patents held by Bard (the "Utah Action"). Bard is seeking unspecified damages and other relief. The Court denied Bard’s motion for pre-trial consolidation with separate actions it filed on the same day against Medical Components, Inc. and Smiths Medical ASD, Inc., but had asked for supplemental briefing on the issue of whether to conduct a common Markman hearing. Meanwhile, we filed petitions for reexamination in the US Patent and Trademark Office ("PTO") which seek to invalidate all three patents asserted by Bard in the litigation. Our petitions were granted and 40 of Bard's 41 patent claims were rejected and, following further proceedings, the Patent Office issued a Final Rejection of all 40 claims subject to reexamination. Thereafter, Bard filed appeals to the PTO Board of Appeals and Interferences for all three reexams. The parties completed briefing on the appeals and oral argument was held on June 18, 2015. The Patent Office has issued decisions in the three appeals. In one (issued on March 11, 2016 for US Patent No. 7,785,302), the rejections of six of the ten claims under reexamination were affirmed, but were reversed on four of the ten claims. In the second (issued on March 24, 2016 for U.S. Patent No. 7,959,615), the rejections of eight of the ten claims under reexamination were affirmed but the rejections of the other two of the ten claims were reversed. In the third (issued on March 29 for U.S. Patent No. 7,947.022) the rejections of all twenty claims under reexamination were affirmed. Bard has since filed Requests for Rehearing in all three reexamination appeals and the Company filed Requests for Rehearing in two of the reexamination appeals (the ‘302 and ‘615 patent reexaminations). Each party has filed comments in Opposition to the other party’s Rehearing Requests, and we are awaiting the PTO determinations in all three reexaminations. The Utah Action has been stayed pending final resolution of the PTO process. We believe these claims are without merit and intend to defend them vigorously. We have not recorded an expense related to the outcome of this litigation because it is not yet possible to determine if a potential loss is probable nor reasonably estimable. On March 10, 2015, C.R. Bard, Inc. and Bard Peripheral Vascular, Inc. (“Bard”) filed suit in the United States District Court for the District of Delaware claiming certain of our implantable port products infringe on three U.S. patents held by Bard (the “Delaware Action). Bard is seeking unspecified damages and other relief. The patents asserted in the Delaware Action are different than those asserted in the Utah Action. On June 1, 2015, we filed two motions in response to Bard’s Complaint - one sought transfer to the District of Utah where the Utah Action is currently pending, and the other sought dismissal of the entire complaint on grounds that none of the claims in the asserted patents is directed to patent eligible subject matter under Section 101 of the Patent Statute and in light of recent authority from the U. S. Supreme Court. On January 12, 2016, the court issued a decision denying both motions. We have since served an Answer and Counterclaim to which Bard has served a Reply. On March 10, 2016, the Court held a case management conference, and, on March 14, 2016, the court entered a Scheduling Order which set, inter alia, a Markman hearing for March 10, 2017, a summary judgment hearing for December 8, 2017 and trial for March 12, 2018. The parties have since served various discovery requests on each other; on May 27, 2016 Bard served its Infringement Contentions which identified all the port products accused of infringement; and, on June 24, 2016, we served Invalidity Contentions which detail various grounds for invalidating the three asserted patents. We believe these claims are without merit and intend to defend them vigorously. We have not recorded an expense related to the outcome of this litigation because it is not yet possible to determine if a potential loss is probable nor reasonably estimable. Governmental Investigations LC Beads In June 2014 we received a subpoena from the U.S. Department of Justice (the “DOJ”) requesting documents in relation to a criminal and civil investigation the DOJ is conducting regarding BTG International, Inc.’s LC Bead® product beginning in 2003. RITA Medical Systems and AngioDynamics, Inc., after its acquisition of RITA, was the exclusive distributor of LC Beads in the United States from 2006 through December 31, 2011. We are cooperating fully with this investigation and at this time are unable to predict its scope, duration or outcome. We are unable at this time to reasonably estimate the amount or range of any loss, although it is possible that the amount of such loss could be material. In accordance with ASC 450, "Contingencies," or "ASC 450," no amount in respect of any potential liability in this matter, including for penalties, fines or other sanctions, has been accrued in the consolidated financial statements. EVLT In April 2015 we received a subpoena from the DOJ requesting documents in relation to a criminal and civil investigation the DOJ is conducting regarding purported promotion of certain of AngioDynamics’ VenaCure EVLT products for un-cleared indications. We are cooperating fully with this investigation and at this time are unable to predict its scope, duration or outcome. We are unable at this time to reasonably estimate the amount or range of any loss, although it is possible that the amount of such loss could be material. In accordance with ASC 450, "Contingencies," or "ASC 450," no amount in respect of any potential liability in this matter, including for penalties, fines or other sanctions, has been accrued in the consolidated financial statements. |
Recently Issued Accounting Pronouncements |
3 Months Ended |
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Aug. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. ASU 2016-15 is effective for the Company for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. ASU 2016-15 should be applied retrospectively and early adoption is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the impact of ASU 2016-15 on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides a single, comprehensive accounting model for revenues arising from contracts with customers that supersedes most of the existing revenue recognition guidance, including industry-specific guidance. Under this model, revenue is recognized at an amount that an entity expects to be entitled to upon transferring control of goods or services to a customer, as opposed to when risks and rewards transfer to a customer under existing revenue recognition guidance. ASU 2014-09 is effective for the Company beginning in its fiscal year 2018, and may be applied retrospectively to all prior periods presented or through a cumulative adjustment to the opening retained earnings balance in the year of adoption. The Company is currently in the process of evaluating the impact of ASU 2014-09 on its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of the Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, that clarified that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target is met. This ASU is effective for the Company in its first quarter beginning after January 1, 2016 and did not have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASC Update No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Update No. 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Update No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those reporting periods. Early adoption is permitted for financial statements that have not been previously issued. This update was applied retrospectively as of August 31, 2016. The deferred financing fees included in other assets of $0.8 million and $0.9 million was classified as long-term debt for the periods August 31, 2016 and May 31, 2016, respectively, in the consolidated condensed balance sheet. This update did not impact the results of our operations. In July 2015, the FASB issued ASC Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Update No. 2015-11 more closely aligns the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards by requiring companies using the first-in, first-out and average costs methods to measure inventory using the lower of cost and net realizable value, where net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Update No. 2015-11 is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. Update No. 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of Update No. 2015-11 is not expected to have a material impact on our financial position or results of operations. In November 2015, the FASB issued ASC Update No. 2015-17, “Balance Sheet Classification of Deferred Taxes” as part of its simplification initiatives. This update requires deferred tax liabilities and assets to be classified as non-current on the consolidated condensed balance sheet for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted. An entity can elect to adopt prospectively or retrospectively to all periods presented. This update was applied retrospectively as of November 30, 2015. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10). Update No. 2016-01 addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Update No. 2016-01 is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those fiscal years and early application is permitted. The Company is currently in the process of evaluating the impact. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. For leases with a term or twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early application is permitted. The Company is currently in the process of evaluating the impact of ASU 2016-02 on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Based Compensation (Topic 718: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies and improves various aspects of ASC 718 for share-based payments, including income tax items and the classification of these items on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 31, 2016 and early application is permitted. The Company is currently in the process of evaluating the impact of ASU 2016-09 on its consolidated financial statements. |
Restructuring |
3 Months Ended |
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Aug. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING For the three months ended August 31, 2016 and August 31, 2015 we had a restructuring of finance, research and development, and sales and marketing organizations to improve our profitability. As part of the restructuring, we recorded $0.3 million and $1.1 million of severance and restructuring expense during the three month periods, respectively, which is included in “Acquisition, restructuring and other items, net” in the statements of income. |
Recently Issued Accounting Pronouncements (Policies) |
3 Months Ended |
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Aug. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. ASU 2016-15 is effective for the Company for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. ASU 2016-15 should be applied retrospectively and early adoption is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the impact of ASU 2016-15 on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides a single, comprehensive accounting model for revenues arising from contracts with customers that supersedes most of the existing revenue recognition guidance, including industry-specific guidance. Under this model, revenue is recognized at an amount that an entity expects to be entitled to upon transferring control of goods or services to a customer, as opposed to when risks and rewards transfer to a customer under existing revenue recognition guidance. ASU 2014-09 is effective for the Company beginning in its fiscal year 2018, and may be applied retrospectively to all prior periods presented or through a cumulative adjustment to the opening retained earnings balance in the year of adoption. The Company is currently in the process of evaluating the impact of ASU 2014-09 on its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of the Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, that clarified that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target is met. This ASU is effective for the Company in its first quarter beginning after January 1, 2016 and did not have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASC Update No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Update No. 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Update No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those reporting periods. Early adoption is permitted for financial statements that have not been previously issued. This update was applied retrospectively as of August 31, 2016. The deferred financing fees included in other assets of $0.8 million and $0.9 million was classified as long-term debt for the periods August 31, 2016 and May 31, 2016, respectively, in the consolidated condensed balance sheet. This update did not impact the results of our operations. In July 2015, the FASB issued ASC Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Update No. 2015-11 more closely aligns the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards by requiring companies using the first-in, first-out and average costs methods to measure inventory using the lower of cost and net realizable value, where net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Update No. 2015-11 is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. Update No. 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of Update No. 2015-11 is not expected to have a material impact on our financial position or results of operations. In November 2015, the FASB issued ASC Update No. 2015-17, “Balance Sheet Classification of Deferred Taxes” as part of its simplification initiatives. This update requires deferred tax liabilities and assets to be classified as non-current on the consolidated condensed balance sheet for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted. An entity can elect to adopt prospectively or retrospectively to all periods presented. This update was applied retrospectively as of November 30, 2015. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10). Update No. 2016-01 addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Update No. 2016-01 is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those fiscal years and early application is permitted. The Company is currently in the process of evaluating the impact. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. For leases with a term or twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early application is permitted. The Company is currently in the process of evaluating the impact of ASU 2016-02 on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Based Compensation (Topic 718: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies and improves various aspects of ASC 718 for share-based payments, including income tax items and the classification of these items on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 31, 2016 and early application is permitted. The Company is currently in the process of evaluating the impact of ASU 2016-09 on its consolidated financial statements. |
Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories are stated at lower of cost (using the first-in, first-out method) or market. As of August 31, 2016 and May 31, 2016, inventories consisted of the following:
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Goodwill and Intangible Assets (Tables) |
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Intangible Assets | As of August 31, 2016 and May 31, 2016, intangible assets consisted of the following:
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Accrued Liabilities (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | As of August 31, 2016 and May 31, 2016, accrued liabilities consisted of the following:
(1) Includes accrued payroll, commissions and bonus. Decrease from year end due to bonus payment in the first quarter. (2) Includes accrued federal and state withholdings on equity, accrued VAT and state tax liabilities. Increase from year end due to tax liabilities related to equity exercises. (3) Includes accrued legal fees. Decrease from year end due to payments made in the first quarter. |
Income Taxes (Tables) |
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income Tax Expense/(Benefit) | The following table presents the components of income tax expense for the three months ended August 31, 2016 and August 31, 2015 (in thousands of dollars):
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic to Diluted Weighted-Average Shares Outstanding | The following table reconciles basic to diluted weighted-average shares outstanding for the three months ended August 31, 2016 and August 31, 2015 (in thousands):
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Segment and Geographic Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Sales by Product Category | The table below summarizes net sales by product category (in thousands of dollars):
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Summary of Net Sales by Geographic Area | The table below presents net sales by geographic area based on external customer location (in thousands of dollars):
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Fair Value (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis as of August 31, 2016 and May 31, 2016 (in thousands of dollars):
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Fair Value Measurements Using Significant Unobservable Inputs | The table below presents the changes in fair value components of Level 3 instruments in the three months ended August 31, 2016 (in thousands of dollars):
(1) Change in present value of contingent consideration is included in earnings and comprised of changes in estimated earn out payments based on projections of company performance and the amortization of the present value discount. |
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Summary Showing the Recurring Fair Value Measurements of the Contingent Consideration Liability | The recurring Level 3 fair value measurements of the contingent consideration liabilities include the following significant unobservable inputs as of August 31, 2016 (in thousands of dollars):
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Marketable Securities (Tables) |
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | As of August 31, 2016 and May 31, 2016, marketable securities consisted of the following (in thousands of dollars):
|
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands |
Aug. 31, 2016 |
May 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 22,584 | $ 21,669 |
Work in process | 11,528 | 10,700 |
Finished goods | 24,162 | 23,001 |
Inventories | $ 58,274 | $ 55,370 |
Other Assets (Details) $ in Millions |
Dec. 07, 2015
USD ($)
|
---|---|
Investments in and Advances to Affiliates [Line Items] | |
Payments to Acquire Equity Method Investments | $ 2.0 |
Equity Method Investment, Contingent Consideration | 4.0 |
Warrant [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Equity Method Investment, Contingent Consideration | $ 5.0 |
Goodwill and Intangible Assets - Additional Information (Detail) |
3 Months Ended |
---|---|
Aug. 31, 2016 | |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of intangible assets other than goodwill | 18 years |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of intangible assets other than goodwill | 1 year |
Accrued Liabilities - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands |
Aug. 31, 2016 |
May 31, 2016 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Payroll and related expenses | $ 6,618 | $ 9,414 |
Royalties | 2,345 | 2,489 |
Accrued severance | 1,388 | 1,524 |
Sales and franchise taxes | 2,106 | 565 |
Outside services | 1,172 | 2,063 |
Other | 5,585 | 5,841 |
Total | $ 19,214 | $ 21,896 |
Income Taxes - Components of Income Tax Expense/(Benefit) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Income (loss) before income tax expense (benefit) | $ 2,903 | $ (705) |
Non-taxable portion of change in fair value of contingent consideration | 0 | 170 |
Ordinary income (loss) before income taxes | 2,903 | (875) |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount [Abstract] | ||
Income tax expense / (benefit) based on ordinary income / (loss) at estimated tax rates | 1,603 | (376) |
Discrete tax expense (benefit): | ||
Adjustment for elimination of the ASC 718 APIC pool | 0 | 471 |
Adjustments to prior period tax liabilities | 0 | (25) |
Total income tax expense (benefit) | $ 1,603 | $ 70 |
Income Taxes - Additional Information (Detail) |
3 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Estimated federal statutory income tax rate | 55.20% | 43.00% |
Share-Based Compensation (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount of shares issuable through two stock-based compensation plans | 6.8 | |
Charges against income for share-based payment arrangements | $ 1.7 | $ 1.6 |
Unrecognized compensation expenses related to share-based payment arrangements | $ 18.3 | |
Recognition period | 4 years | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Requisite service period | 3 years | 3 years |
Earnings Per Share - Reconciliation of Basic to Diluted Weighted-Average Shares Outstanding (Detail) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Earnings Per Share [Abstract] | ||
Basic (shares) | 36,319 | 35,960 |
Effect of dilutive securities (shares) | 379 | 0 |
Diluted (shares) | 36,698 | 35,960 |
Securities excluded as their inclusion would be anti-dilutive (shares) | 1,503 | 3,241 |
Segment and Geographic Information - Additional Information (Detail) |
3 Months Ended |
---|---|
Aug. 31, 2016
Segment
| |
Segment Reporting [Abstract] | |
Number of segments (segment) | 1 |
Segment and Geographic Information - Summary of Net Sales by Product Category (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Segment Reporting Information [Line Items] | ||
Net sales | $ 88,098 | $ 83,753 |
Peripheral Vascular [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 51,409 | 47,106 |
Vascular Access [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 25,005 | 24,645 |
Oncology/Surgery [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 11,064 | 11,334 |
Supply Agreement [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 620 | $ 668 |
Segment and Geographic Information - Summary of Net Sales by Geographic Area (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Net Sales | ||
Net sales | $ 88,098 | $ 83,753 |
Supply Agreement [Member] | ||
Net Sales | ||
Net sales | 620 | 668 |
Reportable Geographical Components [Member] | United States [Member] | ||
Net Sales | ||
Net sales | 71,753 | 68,369 |
Reportable Geographical Components [Member] | International [Member] | ||
Net Sales | ||
Net sales | 15,725 | 14,716 |
Reportable Geographical Components [Member] | Supply Agreement [Member] | ||
Net Sales | ||
Net sales | $ 620 | $ 668 |
Fair Value - Additional Information (Detail) $ in Millions |
Aug. 31, 2016
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
Potential amount of undiscounted future contingent consideration | $ 38.7 |
Fair Value - Fair Value Measurements Using Significant Unobservable Inputs (Detail) $ in Thousands |
3 Months Ended |
---|---|
Aug. 31, 2016
USD ($)
| |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Financial assets, begining balance | $ 1,653 |
Included in other comprehensive income, assets | (6) |
Contingent consideration - Clinical Devices, assets | 0 |
Financial assets, ending balance | 1,647 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Financial liabilities, begining balance | 38,275 |
Change in Fair Value of Contingent Consideration | 443 |
Included in other comprehensive income, liabilities | 0 |
Financial liabilities, ending balance | 36,618 |
Clinical Devices B.V [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration - Clinical Devices, liabilities | $ (2,100) |
Marketable Securities - Additional Information (Detail) $ in Millions |
Aug. 31, 2016
USD ($)
Investment
|
May 31, 2016
USD ($)
|
---|---|---|
Marketable Securities [Abstract] | ||
Investments in auction rate securities that failed auctions | $ | $ 1.6 | $ 1.7 |
Number of investments (investment) | Investment | 2 |
Marketable Securities - Marketable Securities (Detail) - USD ($) $ in Thousands |
Aug. 31, 2016 |
May 31, 2016 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 1,800 | $ 1,800 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (153) | (147) |
Fair Value | 1,647 | 1,653 |
U.S. Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 1,800 | 1,800 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (153) | (147) |
Fair Value | $ 1,647 | $ 1,653 |
Recently Issued Accounting Pronouncements (Details) - Accounting Standards Update 2015-03 [Member] - USD ($) $ in Millions |
Aug. 31, 2016 |
May 31, 2016 |
---|---|---|
Other Assets [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred financing fees | $ (0.8) | $ (0.9) |
Long-term Debt [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred financing fees | $ 0.8 | $ 0.9 |
Restructuring - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Selling and Marketing Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance expense | $ 0.3 | $ 1.1 |
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