QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
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|
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Large accelerated filer |
☐ |
|
☒ | |||
Non-accelerated filer |
☐ |
Smaller reporting company |
| |||
Emerging growth company |
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Class |
Outstanding July 31, 2020 | |
Common Stock, no par value |
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Page(s) |
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PART I. |
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Item 1. |
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1 |
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2 |
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3 |
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4-5 |
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6 |
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7-22 |
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Item 2. |
22-31 |
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Item 3. |
31 |
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Item 4. |
31 |
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PART II. |
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Item 1. |
32 |
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Item 1A. |
32 |
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Item 6. |
32 |
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33 |
Three Months Ended |
Nine Months Ended |
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June 30, |
June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
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NET REVENUES |
$ | |
$ | |
$ | |
$ | |
||||||||
COST OF SALES |
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GROSS PROFIT |
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OPERATING EXPENSES |
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Research and development |
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Selling and marketing |
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General and administrative |
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Acquisition-related costs |
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|
|
||||||||||||
Change in fair value of contingent consideration obligation |
( |
) | — |
( |
) | — |
||||||||||
Restructuring costs |
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Selected legal costs |
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Total operating expenses |
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OPERATING INCOME |
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OTHER INCOME (EXPENSE) |
||||||||||||||||
Interest income |
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|
|
|
||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other, net |
|
|
|
( |
) | |||||||||||
Total other income (expense) |
|
|
( |
) | ( |
) | ||||||||||
EARNINGS BEFORE INCOME TAXES |
|
|
|
|
||||||||||||
INCOME TAX PROVISION |
|
|
|
|
||||||||||||
NET EARNINGS |
$ | |
$ | |
$ | |
$ | |
||||||||
BASIC EARNINGS PER COMMON SHARE |
$ | |
$ | |
$ | |
$ | |
||||||||
DILUTED EARNINGS PER COMMON SHARE |
$ | |
$ | |
$ | |
$ | |
||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC |
|
|
|
|
||||||||||||
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS |
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|
|
|
||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED |
|
|
|
|
||||||||||||
ANTI-DILUTIVE SECURITIES: |
||||||||||||||||
Common share options and restricted share units |
|
|
|
|
||||||||||||
DIVIDENDS DECLARED PER COMMON SHARE |
$ | — |
$ | — |
$ | — |
$ | |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
NET EARNINGS |
$ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): |
||||||||||||||||
Foreign currency translation adjustment |
||||||||||||||||
Unrealized loss on cash flow hedge |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reclassification of gain on cash flow hedge |
( |
) | — |
( |
) | — |
||||||||||
Income taxes related to items of other comprehensive income |
||||||||||||||||
Other comprehensive income (loss), net of tax |
( |
) | ||||||||||||||
COMPREHENSIVE INCOME |
$ | $ | $ | $ | ||||||||||||
Nine Months Ended June 30, |
2020 |
2019 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net earnings |
$ | $ | ||||||
Non-cash items included in net earnings: |
||||||||
Depreciation of property, plant and equipment |
||||||||
Amortization of intangible assets |
||||||||
Stock-based compensation |
||||||||
Deferred income taxes |
( |
) | ||||||
Loss on disposition and write-down of fixed assets |
||||||||
Change in accrued contingent consideration |
( |
) | ||||||
Change in the following, net of acquisitions: |
||||||||
Accounts receivable |
( |
) | ||||||
Inventories |
( |
) | ( |
) | ||||
Prepaid expenses and other current assets |
( |
) | ||||||
Accounts payable and accrued expenses |
( |
) | ||||||
Income taxes payable |
||||||||
Other, net |
||||||||
Net cash provided by operating activities |
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Purchase of property, plant and equipment |
( |
) | ( |
) | ||||
Acquisition of Exalenz , net of cash acquired |
( |
) | ||||||
Acquisition of GenePOC business |
( |
) | ||||||
Net cash used for investing activities |
( |
) | ( |
) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Dividends paid |
( |
) | ||||||
Payment on revolving credit facility |
( |
) | ||||||
Proceeds from revolving credit facility |
||||||||
Payment of debt issuance costs |
( |
) | ( |
) | ||||
Payments on term loan |
( |
) | ||||||
Proceeds from exercise of stock options |
||||||||
Net cash p rovided by |
||||||||
Effect of Exchange Rate Changes on Cash and Equivalents |
( |
) | ||||||
Net Increase (Decrease) in Cash and Equivalents |
( |
) | ||||||
Cash and Equivalents at Beginning of Period |
||||||||
Cash and Equivalents at End of Period |
$ | $ | ||||||
June 30, 2020 (Unaudited) |
September 30, 2019 |
|||||||
CURRENT ASSETS |
||||||||
Cash and equivalents |
$ | $ | ||||||
Accounts receivable, less allowances of $ |
||||||||
Inventories |
||||||||
Prepaid expenses and other current assets |
||||||||
Total current assets |
||||||||
PROPERTY, PLANT AND EQUIPMENT, at Cost |
||||||||
Land |
||||||||
Buildings and improvements |
||||||||
Machinery, equipment and furniture |
||||||||
Construction in progress |
||||||||
Subtotal |
||||||||
Less: accumulated depreciation and amortization |
||||||||
Net property, plant and equipment |
||||||||
OTHER ASSETS |
||||||||
Goodwill |
||||||||
Other intangible assets, net |
||||||||
Right-of-use assets |
— |
|||||||
Deferred income taxes |
||||||||
Other assets |
||||||||
Total other assets |
||||||||
TOTAL ASSETS |
$ | $ | ||||||
June 30, 2020 (Unaudited) |
September 30, 2019 |
|||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued employee compensation costs |
||||||||
Current portion of acquisition consideration |
— |
|||||||
Current operating lease obligations |
— |
|||||||
Current government grant obligations |
— |
|||||||
Other accrued expenses |
||||||||
Income taxes payable |
||||||||
Total current liabilities |
||||||||
NON-CURRENT LIABILITIES |
||||||||
Acquisition consideration |
||||||||
Post-employment benefits |
||||||||
Fair value of interest rate swaps |
— |
|||||||
Long-term operating lease obligations |
— |
|||||||
Long-term debt |
||||||||
Government grant obligations |
— |
|||||||
Long-term income taxes payable |
||||||||
Deferred income taxes |
||||||||
Other non-current liabilities |
— |
|||||||
Total non-current liabilities |
||||||||
COMMITMENTS AND CONTINGENCIES |
||||||||
SHAREHOLDERS’ EQUITY |
||||||||
Preferred stock, |
||||||||
Common shares, |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Total shareholders’ equity |
||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | $ | ||||||
Common Shares Issued |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders’ Equity |
||||||||||||||||
THREE MONTHS ENDED JUNE 30, 2020 Balance at March 31, 2020 |
|
$ | |
$ | |
$ | ( |
$ | |
|||||||||||
Conversion of restricted share units |
|
— |
— |
— |
— |
|||||||||||||||
Stock compensation expense |
— |
|
— |
— |
|
|||||||||||||||
Net earnings |
— |
— |
|
— |
|
|||||||||||||||
Foreign currency translation adjustment |
— |
— |
— |
|
|
|||||||||||||||
Hedging activity, net of tax |
— |
— |
— |
( |
( |
|||||||||||||||
Balance at June 30, 2020 |
|
$ | |
$ | |
$ | ( |
$ | |
|||||||||||
THREE MONTHS ENDED JUNE 30, 2019 Balance at March 31, 2019 |
|
$ | |
$ | |
$ | ( |
$ | |
|||||||||||
Conversion of restricted share units and exercise of stock options |
|
— |
— |
— |
— |
|||||||||||||||
Stock compensation expense |
— |
|
— |
— |
|
|||||||||||||||
Net earnings |
— |
— |
|
— |
|
|||||||||||||||
Foreign currency translation adjustment |
— |
— |
— |
|
|
|||||||||||||||
Hedging activity, net of tax |
— |
— |
— |
( |
( |
|||||||||||||||
Adoption of ASU 2018-02 |
— |
— |
( |
|
— |
|||||||||||||||
Balance at June 30, 2019 |
|
$ | |
$ | |
$ | ( |
$ | |
|||||||||||
Common Shares Issued |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders’ Equity |
||||||||||||||||
NINE MONTHS ENDED JUNE 30, 2020 Balance at September 30, 2019 |
|
$ | |
$ | |
$ | ( |
$ | |
|||||||||||
Conversion of restricted share units |
|
( |
— |
— |
( |
|||||||||||||||
Stock compensation expense |
— |
|
— |
— |
|
|||||||||||||||
Net earnings |
— |
— |
|
— |
|
|||||||||||||||
Foreign currency translation adjustment |
— |
— |
— |
|
|
|||||||||||||||
Hedging activity, net of tax |
— |
— |
— |
( |
( |
|||||||||||||||
Balance at June 30, 2020 |
|
$ | |
$ | |
$ | ( |
$ | |
|||||||||||
NINE MONTHS ENDED JUNE 30, 2019 Balance at September 30, 2018 |
|
$ | |
$ | |
$ | ( |
$ | |
|||||||||||
Cash dividends paid - $ |
— |
— |
( |
— |
( |
|||||||||||||||
Conversion of restricted share units and exercise of stock options |
|
|
— |
— |
|
|||||||||||||||
Stock compensation expense |
— |
|
— |
— |
|
|||||||||||||||
Net earnings |
— |
— |
|
— |
|
|||||||||||||||
Foreign currency translation adjustment |
— |
— |
— |
|
|
|||||||||||||||
Hedging activity, net of tax |
— |
— |
— |
( |
( |
|||||||||||||||
Adoption of ASU 2014-09 |
— |
— |
( |
— |
( |
|||||||||||||||
Adoption of ASU 2018-02 |
— |
— |
( |
|
— |
|||||||||||||||
Balance at June 30, 2019 |
|
$ | |
$ | |
$ | ( |
$ | |
|||||||||||
1. |
Basis of Presentation |
2. |
Significant Accounting Policies |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||||||||||
2020 |
2019 |
Inc (Dec) |
2020 |
2019 |
Inc (Dec) |
|||||||||||||||||||
Diagnostics- |
||||||||||||||||||||||||
Americas |
$ | $ | ( |
)% | $ | $ | ( |
)% | ||||||||||||||||
EMEA |
( |
)% | ( |
)% | ||||||||||||||||||||
ROW |
( |
)% | ( |
)% | ||||||||||||||||||||
Total Diagnostics |
( |
)% | ( |
)% | ||||||||||||||||||||
Life Science- |
||||||||||||||||||||||||
Americas |
% | % | ||||||||||||||||||||||
EMEA |
% | % | ||||||||||||||||||||||
ROW |
% | % | ||||||||||||||||||||||
Total Life Science |
% | % | ||||||||||||||||||||||
Consolidated |
$ | $ | % | $ | $ | % | ||||||||||||||||||
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||||||||||
2020 |
2019 |
Inc (Dec) |
2020 |
2019 |
Inc (Dec) |
|||||||||||||||||||
Diagnostics- |
||||||||||||||||||||||||
Molecular assays |
$ | $ | ( |
)% | $ | $ | ( |
)% | ||||||||||||||||
Non -m olecular assays |
( |
)% | ( |
) % | ||||||||||||||||||||
Total Diagnostics |
$ | $ | ( |
)% | $ | $ | ( |
)% | ||||||||||||||||
Life Science- |
||||||||||||||||||||||||
Molecular reagents |
$ | $ | % | $ | $ | % | ||||||||||||||||||
Immunological reagents |
% | % | ||||||||||||||||||||||
Total Life Science |
$ | $ | % | $ | $ | % | ||||||||||||||||||
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||||||||||
2020 |
2019 |
Inc (Dec) |
2020 |
2019 |
Inc (Dec) |
|||||||||||||||||||
Diagnostics- |
||||||||||||||||||||||||
Gastrointestinal assays |
$ | $ | ( |
)% | $ | $ | ( |
)% | ||||||||||||||||
Respiratory illness assays |
( |
)% | % | |||||||||||||||||||||
Blood chemistry assays |
( |
) % |
( |
)% | ||||||||||||||||||||
Other |
( |
)% | ( |
)% | ||||||||||||||||||||
Total Diagnostics |
$ | $ | ( |
)% | $ | $ | ( |
)% | ||||||||||||||||
(b) |
Fair Value Measurements – |
Fair Value Measurements Using Inputs Considered as |
||||||||||||||||
Carrying Value |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Interest rate swaps (see Note 9) - |
||||||||||||||||
As of June 30, 2020 |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
||||||||
As of September 30, 2019 |
$ |
$ |
$ |
$ |
||||||||||||
Contingent consideration - |
||||||||||||||||
As of June 30, 2020 |
$ |
( |
) |
$ |
$ |
$ |
( |
) | ||||||||
As of September 30, 2019 |
$ |
( |
) |
$ |
$ |
$ |
( |
) | ||||||||
Government grant obligations - |
||||||||||||||||
As of June 30, 2020 |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
||||||||
As of September 30, 2019 |
$ |
$ |
$ |
$ |
(c) |
Recent Accounting Pronouncements – |
(d) |
Reclassifications – |
3. |
Business Combinations |
PRELIMINARY |
||||
Fair value of assets acquired - |
||||
Cash |
$ | |||
Accounts receivable |
||||
Inventories |
||||
Other current assets |
||||
Property, plant and equipment |
||||
Goodwill |
||||
Other intangible assets (estimated useful life): |
||||
Non-compete agreement ( |
||||
Trade name ( |
||||
Technology ( |
||||
Customer relationships ( |
||||
Right-of-use assets |
||||
Deferred tax assets, net |
||||
Fair value of liabilities assumed - |
||||
Accounts payable and accrued expenses (including current portion of lease and government grant obligations) |
||||
Long-term lease obligations |
||||
Long-term government grant obligations |
||||
Other non-current liabilities |
||||
Total consideration paid (including $ |
$ |
|||
(i) | a |
(ii) | one $and o ne $ (originally two $10,000 installments contingent upon the achievement of certain product development milestones if achieved by September 30, 2020 and March 31, 2021, respectively) ; and |
(iii) |
up to $ |
Fair value of assets acquired - |
||||
Accounts receivable |
$ | |||
Inventories |
||||
Other current assets |
||||
Property, plant and equipment |
||||
Goodwill |
||||
Other intangible assets (estimated useful life): |
||||
License agreement ( |
||||
Technology ( |
||||
Government grant ( |
||||
Fair value of liabilities assumed - |
||||
Accounts payable and accrued expenses |
||||
Total consideration paid (including contingent C onsideration originally estimated at $ |
$ | |||
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Net Revenues |
$ | $ | $ | $ | ||||||||||||
Net Earnings |
$ | $ | ( |
) | $ | $ |
Three Months Ended |
Nine Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Adjustments to Net Revenues |
||||||||||||||||
Exalenz and GenePOC pre-acquisition revenues |
$ | $ | $ | $ | ||||||||||||
Adjustments to Net Earnings |
||||||||||||||||
Exalenz and GenePOC pre-acquisition net losses |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Pro forma adjustments: |
||||||||||||||||
Meridian acquisition-related costs |
— |
— |
||||||||||||||
Exalenz and GenePOC transaction-related costs |
— |
— |
||||||||||||||
Remove net impact of non-continuing personnel, locations or activities |
( |
) | ( |
) | ||||||||||||
Incremental depreciation and amortization |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Incremental interest costs, net |
( |
) | ( |
) | ( |
) | ||||||||||
Tax effects of pro forma adjustments and recognizing benefit on resulting Exalenz losses |
||||||||||||||||
Total Adjustments to Net Earnings |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
4. |
Restructuring |
Employee Separation and Related Costs |
Lease and Other Contract Termination Fees |
Other |
Total |
|||||||||||||
Balance at September 30, 2019 |
$ | $ | $ | $ | ||||||||||||
Restructuring charges |
— |
|||||||||||||||
Reversal of prior period accruals |
( |
) | — |
— |
( |
) | ||||||||||
Payments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Balance at June 30, 2020 |
$ | $ | — |
$ | — |
$ | ||||||||||
5. |
Cash and Equivalents |
June 30, 2020 |
September 30, 2019 |
|||||||
Institutional money market funds |
$ | $ | ||||||
Cash on hand, unrestricted |
||||||||
Total |
$ | $ | ||||||
6. |
Inventories |
June 30, 2020 |
September 30, 2019 |
|||||||
Raw materials |
$ | $ | ||||||
Work-in-process |
||||||||
Finished goods - instruments |
||||||||
Finished goods - kits and reagents |
||||||||
Total |
$ | $ | ||||||
7. |
Leasing Arrangements |
Three Months Ended June 30, |
Nine Months Ended |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: |
||||||||||||||||
Operating cash flows from operating leases |
$ | $ | $ | $ | ||||||||||||
June 30, 2020 |
||||
Remainder of 2020 |
$ | |||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
Thereafter |
||||
Total lease payments |
||||
Less amount of lease payment representing interest |
( |
) | ||
Total present value of lease payments |
$ | |||
September 30, 2019 |
||||
2020 |
$ | |||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
Thereafter |
||||
Total |
$ | |||
8. |
Intangible Assets |
June 30, 2020 |
September 30, 2019 |
|||||||||||||||
Gross Carrying Value |
Accumulated Amortization |
Gross Carrying Value |
Accumulated Amortization |
|||||||||||||
Manufacturing technologies, core products and cell lines |
$ | $ | $ | $ | ||||||||||||
Trade names, licenses and patents |
||||||||||||||||
Customer lists, customer relationships and supply agreements |
||||||||||||||||
Government grants |
||||||||||||||||
Non-compete agreements |
— | — | ||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
9. |
Bank Credit Arrangements |
10. |
Reportable Segments and Major Customers Information |
Diagnostics |
Life Science |
Corporate (1) |
Eliminations (2) |
Total |
||||||||||||||||
Three Months Ended June 30, 2020 |
||||||||||||||||||||
Net revenues - |
||||||||||||||||||||
Third-party |
$ | $ | $ | — |
$ | — |
$ | |||||||||||||
Inter-segment |
— |
( |
) | — |
||||||||||||||||
Operating income |
( |
) | ( |
) | ( |
) | ||||||||||||||
Goodwill (June 30, 2020) |
— |
— |
||||||||||||||||||
Other intangible assets, net (June 30, 2020) |
— |
— |
||||||||||||||||||
Total assets (June 30, 2020) |
— |
( |
) | |||||||||||||||||
Three Months Ended June 30, 2019 |
||||||||||||||||||||
Net revenues - |
||||||||||||||||||||
Third-party |
$ | $ | $ | — |
$ | — |
$ | |||||||||||||
Inter-segment |
— |
( |
) | — |
||||||||||||||||
Operating income |
( |
) | ||||||||||||||||||
Goodwill (September 30, 2019) |
— |
— |
||||||||||||||||||
Other intangible assets, net (September 30, 2019) |
— |
— |
||||||||||||||||||
Total assets (September 30, 2019) |
— |
( |
) | |||||||||||||||||
Nine Months Ended June 30, 2020 |
||||||||||||||||||||
Net revenues - |
||||||||||||||||||||
Third-party |
$ | $ | $ | — |
$ | — |
$ | |||||||||||||
Inter-segment |
— |
( |
) | — |
||||||||||||||||
Operating income |
( |
) | ||||||||||||||||||
Nine Months Ended June 30, 2019 |
||||||||||||||||||||
Net revenues - |
||||||||||||||||||||
Third-party |
$ | $ | $ | — |
$ | — |
$ | |||||||||||||
Inter-segment |
— |
( |
) | — |
||||||||||||||||
Operating income |
( |
) | ||||||||||||||||||
(1) |
Includes Restructuring Costs and Selected Legal Costs of $ |
(2) |
Eliminations consist of inter-segment transactions. |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Segment operating income |
$ | $ | $ | $ | ||||||||||||
Corporate operating expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest income |
||||||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other, net |
( |
) | ||||||||||||||
Consolidated earnings before income taxes |
$ | $ | $ | $ | ||||||||||||
11. |
Litigation Matters |
12. |
Subsequent Event |
(i) | significantly higher revenue in the Life Science operating segment, due to supplying key molecular components and recombinant antigens to diagnostic test manufacturers for use in COVID-19 related PCR and antibody tests; |
(ii) | higher research and development spending in the Diagnostics segment ($2,337 QTD; $5,068 YTD) under new product development programs; |
(iii) | increased cash-based incentive compensation ($2,327 QTD; $4,897 YTD) tied to higher revenue and profit levels; |
(iv) | increased intangible asset amortization, primarily resulting from purchase accounting amortization related to the acquisitions of Exalenz and the GenePOC business in April 2020 and June 2019, respectively ($996 QTD; $2,711 YTD); |
(v) | increased acquisition-related costs in connection with the fiscal 2020 Exalenz transaction, as compared to those related to the GenePOC transaction in fiscal 2019 ($1,168 QTD; $1,983 YTD); |
(vi) | a decrease in the fair value of the earnout obligation for the acquisition of the GenePOC business ($6,124 QTD; $7,428 YTD); and |
(vii) | higher gains related to foreign currency ($1,042 QTD; $399 YTD), with both periods including an $845 gain realized from the execution of forward currency contracts in connection with the Exalenz acquisition (see Note 3 of the accompanying Condensed Consolidated Financial Statements). |
- | By Reportable Segment & Geographic Region |
- | By Product Platform/Type |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||||||||||
2020 |
2019 |
Change |
2020 |
2019 |
Change |
|||||||||||||||||||
Gross Profit |
$ | 55,852 | $ | 28,259 | 98 | % | $ | 117,746 | $ | 89,169 | 32 | % | ||||||||||||
Gross Profit Margin |
66 | % | 58 | % | 8 points | 62 | % | 59 | % | 3 points |
Three Months Ended June 30, |
||||||||||||||||||||
Research & Development |
Selling & Marketing |
General & Administrative |
Other |
Total Operating Expenses |
||||||||||||||||
Fiscal 2019: |
||||||||||||||||||||
Diagnostics |
$ | 3,855 | $ | 5,525 | $ | 3,830 | $ | 1,372 | $ | 14,582 | ||||||||||
Life Science |
739 | 1,222 | 2,323 | — | 4,284 | |||||||||||||||
Corporate |
— | — | 1,849 | 1,080 | 2,929 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Expenses (2019 Quarter) |
$ | $ | 6,747 | $ | 8,002 | $ | 2,452 | $ | 21,795 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fiscal 2020: |
||||||||||||||||||||
Diagnostics |
$ | 6,192 | $ | 4,996 | $ | 7,055 | $ | (4,387 | ) | $ | 13,856 | |||||||||
Life Science |
551 | 1,265 | 2,669 | (3 | ) | 4,482 | ||||||||||||||
Corporate |
— | — | 2,715 | 134 | 2,849 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Expenses (2020 Quarter) |
$ | $ | 6,261 | $ | 12,439 | $ | (4,256 | ) | $ | 21,187 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30, |
||||||||||||||||||||
Research & Development |
Selling & Marketing |
General & Administrative |
Other |
Total Operating Expenses |
||||||||||||||||
Fiscal 2019: |
||||||||||||||||||||
Diagnostics |
$ | 10,141 | $ | 17,048 | $ | 11,632 | $ | 2,219 | $ | 41,040 | ||||||||||
Life Science |
2,153 | 4,173 | 6,478 | 25 | 12,829 | |||||||||||||||
Corporate |
— | — | 6,178 | 2,272 | 8,450 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Expenses (2019 Year-to-Date) |
$ | $ | 21,221 | $ | 24,288 | $ | 4,516 | $ | 62,319 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fiscal 2020: |
||||||||||||||||||||
Diagnostics |
$ | 15,209 | $ | 15,709 | $ | 17,946 | $ | (3,575 | ) | $ | 45,289 | |||||||||
Life Science |
1,744 | 3,750 | 7,086 | 195 | 12,775 | |||||||||||||||
Corporate |
— | — | 6,643 | 1,189 | 7,832 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Expenses (2020 Year-to-Date) |
$ | $ | 19,459 | $ | 31,675 | $ | (2,191 | ) | $ | 65,896 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
||||||||||||||||||||
Research & Development |
Selling & Marketing |
General & Administrative |
Other |
Total Operating Expenses |
||||||||||||||||
2019 Expenses |
$ | $ | 6,747 | $ | 8,002 | $ | 2,452 | $ | 21,795 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
% of Revenues |
9 | % | 14 | % | 17 | % | 5 | % | 45 | % | ||||||||||
Fiscal 2020 Increases/(Decreases): |
| |||||||||||||||||||
Diagnostics |
2,337 | (529 | ) | 3,225 | (5,759 | ) | (726 | ) | ||||||||||||
Life Science |
(188 | ) | 43 | 346 | (3 | ) | 198 | |||||||||||||
Corporate |
— | — | 866 | (946 | ) | (80 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2020 Expenses |
$ | $ | 6,261 | $ | 12,439 | $ | (4,256 | ) | $ | 21,187 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
% of Revenues |
8 | % | 7 | % | 15 | % | (5 | )% | 25 | % | ||||||||||
% Increase (Decrease) |
47 | % | (7 | )% | 55 | % | (274 | ) % | (3 | ) % |
Nine Months Ended June 30, |
||||||||||||||||||||
Research & Development |
Selling & Marketing |
General & Administrative |
Other |
Total Operating Expenses |
||||||||||||||||
2019 Expenses |
$ | $ | 21,221 | $ | 24,288 | $ | 4,516 | $ | 62,319 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
% of Revenues |
8 | % | 14 | % | 16 | % | 3 | % | 41 | % | ||||||||||
Fiscal 2020 Increases/(Decreases): |
| |||||||||||||||||||
Diagnostics |
5,068 | (1,339 | ) | 6,314 | (5,794 | ) | 4,249 | |||||||||||||
Life Science |
(409 | ) | (423 | ) | 608 | 170 | (54 | ) | ||||||||||||
Corporate |
— | — | 465 | (1,083 | ) | (618 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2020 Expenses |
$ | $ | 19,459 | $ | 31,675 | (2,191 | ) | $ | 65,896 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
% of Revenues |
9 | % | 10 | % | 17 | % | (1 | )% | 35 | % | ||||||||||
% Increase (Decrease) |
38 | % | (8 | ) % | 30 | % | (149 | )% | 6 | % |
• | Increased Research & Development costs, primarily for the development of the Revogene system GI and RI panel assays for the Diagnostics operating segment; |
• | Decreased Selling & Marketing costs, primarily reflecting the effects of travel and assembly restrictions imposed during the COVID-19 pandemic and the effect such restrictions have had on general sales and marketing activities; |
• | Increased General & Administrative costs, primarily reflecting additional investment in incentive compensation, along with the purchase accounting amortization from the acquisitions of Exalenz and the GenePOC business; and |
• | Increased acquisition and restructuring costs, along with a decrease in fair value of the contingent consideration obligation for the GenePOC business, all of which are reflected within “Other” in the above tables. |
31.1 | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a) | |
31.2 | Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a) | |
32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Instance Extension Schema | |
101.CAL | Inline XBRL Instance Extension Calculation Linkbase | |
101.DEF | Inline XBRL Instance Extension Definition Linkbase | |
101.LAB | Inline XBRL Instance Extension Label Linkbase | |
101.PRE | Inline XBRL Instance Extension Presentation Linkbase | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
MERIDIAN BIOSCIENCE, INC. | ||||||
Date: August 7, 2020 |
By: | /s/ Bryan T. Baldasare | ||||
Bryan T. Baldasare | ||||||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |