May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Deposits | $ | 2,011 | $ | 3,356 | |||
Other prepaid taxes | 165 | 202 | |||||
License fees | 121 | 604 | |||||
Software licenses | 667 | 130 | |||||
Trade shows | 279 | 62 | |||||
Rent | 77 | 114 | |||||
Other | 1,463 | 1,003 | |||||
Total | $ | 4,783 | $ | 5,471 |
May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Deposits | $ | 2,011 | $ | 3,356 | |||
Other prepaid taxes | 165 | 202 | |||||
License fees | 121 | 604 | |||||
Software licenses | 667 | 130 | |||||
Trade shows | 279 | 62 | |||||
Rent | 77 | 114 | |||||
Other | 1,463 | 1,003 | |||||
Total | $ | 4,783 | $ | 5,471 |
2015 | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
Deferred tax benefit | $ | (1,916 | ) | $ | 1,778 | $ | 830 | ||||
Impact of NYS tax reform legislation | — | 1,173 | — | ||||||||
Net operating loss carryforward | (3,195 | ) | — | — | |||||||
$ | (5,111 | ) | $ | 2,951 | $ | 830 |
May 31, 2015 | |||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Weighted average useful life | ||||||||||
(in thousands) | (years) | ||||||||||||
Product technologies | $ | 148,776 | $ | (41,447 | ) | $ | 107,329 | 10.2 | |||||
Customer relationships | 86,371 | (42,813 | ) | 43,558 | 12.0 | ||||||||
Trademarks | 28,545 | (3,229 | ) | 25,316 | 10.7 | ||||||||
In process R&D Acquired | 3,600 | — | 3,600 | Indefinite | |||||||||
Licenses | 7,913 | (5,910 | ) | 2,003 | 8.3 | ||||||||
Distributor relationships | 900 | (900 | ) | — | 3.0 | ||||||||
$ | 276,105 | $ | (94,299 | ) | $ | 181,806 |
May 31, 2014 | |||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Weighted avg useful life | ||||||||||
(in thousands) | (years) | ||||||||||||
Product technologies | $ | 150,298 | $ | (32,930 | ) | $ | 117,368 | 10.2 | |||||
Customer relationships | 86,645 | (37,848 | ) | 48,797 | 11.9 | ||||||||
Trademark—NAMIC | 28,600 | — | 28,600 | Indefinite | |||||||||
In process R&D Acquired | 3,600 | — | 3,600 | Indefinite | |||||||||
Licenses | 7,639 | (5,211 | ) | 2,428 | 8.4 | ||||||||
Trademarks | 6,345 | (1,882 | ) | 4,463 | 8.0 | ||||||||
Distributor relationships | 900 | (900 | ) | — | 3.0 | ||||||||
$ | 284,027 | $ | (78,771 | ) | $ | 205,256 |
Year Ended | |||||||||||
May 31, 2015 | May 31, 2014 | May 31, 2013 | |||||||||
Net sales by Product Category | |||||||||||
Peripheral Vascular | $ | 192,833 | $ | 192,626 | $ | 179,573 | |||||
Vascular Access | 107,874 | 106,394 | 106,690 | ||||||||
Oncology/Surgery | 52,090 | 49,360 | 47,155 | ||||||||
Supply Agreement | 4,177 | 6,045 | 8,498 | ||||||||
Total | $ | 356,974 | $ | 354,425 | $ | 341,916 |
May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Payroll and related expenses | $ | 10,330 | $ | 8,114 | |||
Royalties | 2,237 | 2,620 | |||||
Accrued severance | 158 | 765 | |||||
Sales and franchise taxes | 489 | 1,327 | |||||
Interest rate swap liability | 257 | 555 | |||||
Outside services | 1,522 | 983 | |||||
Deferred Rent | 808 | 154 | |||||
Other | 2,530 | 2,733 | |||||
Total | $ | 18,331 | $ | 17,251 |
2016 | $ | 2,192 | |
2017 | 2,013 | ||
2018 | 1,980 | ||
2019 | 1,962 | ||
2020 | 1,749 | ||
$ | 9,896 |
2016 | $ | 2,192 | |
2017 | 2,013 | ||
2018 | 1,980 | ||
2019 | 1,962 | ||
2020 | 1,749 | ||
$ | 9,896 |
2015 | 2014 | 2013 | ||||||
Basic | 35,683,139 | 35,135,689 | 34,817,279 | |||||
Effect of dilutive securities | — | 304,161 | — | |||||
Diluted | 35,683,139 | 35,439,850 | 34,817,279 | |||||
Securities excluded as their inclusion would be anti-dilutive | 2,862,414 | 2,347,426 | 2,904,944 |
Fair value at May 31, 2015 | Valuation Technique | Unobservable Input | Range | ||||||
Revenue based payments | $ | 44,716 | Discounted cash flow | Discount rate Probability of payment Projected fiscal year of payment | 4% 75% - 100% 2016 - 2022 | ||||
Milestone based payments | 2,668 | Discounted cash flow | Discount rate Probability of payment Projected fiscal year of payment | 16% 75% - 100% 2017 | |||||
$ | 47,384 |
Financial Assets | Financial Liabilities | ||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs | ||||||
Balance at May 31, 2014 | $ | 1,809 | $ | 67,331 | |||
Change in fair value of contingent consideration (1) | — | (8,196 | ) | ||||
Currency (gain) loss from remeasurement | — | (529 | ) | ||||
Included in other comprehensive income (loss) | (120 | ) | — | ||||
Contingent consideration payments | — | (11,222 | ) | ||||
Balance at May 31, 2015 | $ | 1,689 | $ | 47,384 |
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 considerations 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 amount and timing of future interest and principal payments, forward projections of 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 associated with auction-rate securities. |
Fair Value Measurements using inputs considered as: | |||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2015 | ||||||||||||
Financial Assets | |||||||||||||||
Marketable securities | |||||||||||||||
New York State government agency obligations | $ | — | $ | — | $ | 1,689 | $ | 1,689 | |||||||
Total | — | — | 1,689 | 1,689 | |||||||||||
Total Financial Assets | $ | — | $ | — | $ | 1,689 | $ | 1,689 | |||||||
Financial Liabilities | |||||||||||||||
Interest rate swap agreements | $ | — | $ | 257 | $ | — | $ | 257 | |||||||
Contingent liability for acquisition earn out | — | — | 47,384 | 47,384 | |||||||||||
Total Financial Liabilities | $ | — | $ | 257 | $ | 47,384 | $ | 47,641 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2014 | ||||||||||||
Financial Assets | |||||||||||||||
Cash equivalents | |||||||||||||||
Money market funds | $ | 445 | $ | — | $ | — | $ | 445 | |||||||
Total | 445 | — | — | 445 | |||||||||||
Marketable securities | |||||||||||||||
New York State government agency obligations | — | — | 1,809 | 1,809 | |||||||||||
Total | — | — | 1,809 | 1,809 | |||||||||||
Total Financial Assets | $ | 445 | $ | — | $ | 1,809 | $ | 2,254 | |||||||
Financial Liabilities | |||||||||||||||
Interest rate swap agreements | $ | — | $ | 555 | $ | — | $ | 555 | |||||||
Contingent liability for acquisition earn out | — | — | 67,331 | 67,331 | |||||||||||
Total Financial Liabilities | $ | — | $ | 555 | $ | 67,331 | $ | 67,886 |
Financial Assets | Financial Liabilities | ||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs | ||||||
Balance at May 31, 2014 | $ | 1,809 | $ | 67,331 | |||
Change in fair value of contingent consideration (1) | — | (8,196 | ) | ||||
Currency (gain) loss from remeasurement | — | (529 | ) | ||||
Included in other comprehensive income (loss) | (120 | ) | — | ||||
Contingent consideration payments | — | (11,222 | ) | ||||
Balance at May 31, 2015 | $ | 1,689 | $ | 47,384 |
Financial Assets | Financial Liabilities | ||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs | ||||||
Balance at May 31, 2013 | $ | 1,850 | $ | 75,049 | |||
Change in fair value of contingent consideration (1) | — | (1,808 | ) | ||||
New contingent consideration | — | 4,970 | |||||
Currency (gain) loss from remeasurement | — | — | |||||
Included in other comprehensive income (loss) | (41 | ) | — | ||||
Contingent consideration payments | — | (10,880 | ) | ||||
Balance at May 31, 2014 | $ | 1,809 | $ | 67,331 |
Fair value at May 31, 2015 | Valuation Technique | Unobservable Input | Range | ||||||
Revenue based payments | $ | 44,716 | Discounted cash flow | Discount rate Probability of payment Projected fiscal year of payment | 4% 75% - 100% 2016 - 2022 | ||||
Milestone based payments | 2,668 | Discounted cash flow | Discount rate Probability of payment Projected fiscal year of payment | 16% 75% - 100% 2017 | |||||
$ | 47,384 |
May 31, 2015 | |||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Weighted average useful life | ||||||||||
(in thousands) | (years) | ||||||||||||
Product technologies | $ | 148,776 | $ | (41,447 | ) | $ | 107,329 | 10.2 | |||||
Customer relationships | 86,371 | (42,813 | ) | 43,558 | 12.0 | ||||||||
Trademarks | 28,545 | (3,229 | ) | 25,316 | 10.7 | ||||||||
In process R&D Acquired | 3,600 | — | 3,600 | Indefinite | |||||||||
Licenses | 7,913 | (5,910 | ) | 2,003 | 8.3 | ||||||||
Distributor relationships | 900 | (900 | ) | — | 3.0 | ||||||||
$ | 276,105 | $ | (94,299 | ) | $ | 181,806 |
May 31, 2014 | |||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Weighted avg useful life | ||||||||||
(in thousands) | (years) | ||||||||||||
Product technologies | $ | 150,298 | $ | (32,930 | ) | $ | 117,368 | 10.2 | |||||
Customer relationships | 86,645 | (37,848 | ) | 48,797 | 11.9 | ||||||||
Trademark—NAMIC | 28,600 | — | 28,600 | Indefinite | |||||||||
In process R&D Acquired | 3,600 | — | 3,600 | Indefinite | |||||||||
Licenses | 7,639 | (5,211 | ) | 2,428 | 8.4 | ||||||||
Trademarks | 6,345 | (1,882 | ) | 4,463 | 8.0 | ||||||||
Distributor relationships | 900 | (900 | ) | — | 3.0 | ||||||||
$ | 284,027 | $ | (78,771 | ) | $ | 205,256 |
2016 | $ | 18,452 | |
2017 | $ | 18,568 | |
2018 | $ | 19,388 | |
2019 | $ | 21,499 | |
2020 | $ | 22,741 |
Total | |||
Balance, May 31, 2013 | $ | 355,637 | |
Acquisition of Clinical Devices B.V. | 4,836 | ||
Balance, May 31, 2014 | $ | 360,473 | |
Tax basis adjustment | 779 | ||
Balance, May 31, 2015 | $ | 361,252 |
2015 | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
(Loss) income before tax provision: | |||||||||||
US | $ | (8,833 | ) | $ | 5,199 | $ | (3,614 | ) | |||
Non-US | 834 | 541 | 2,027 | ||||||||
$ | (7,999 | ) | $ | 5,740 | $ | (1,587 | ) |
2015 | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
Current | |||||||||||
Federal | $ | (242 | ) | $ | (133 | ) | $ | (1,622 | ) | ||
State and local | 205 | 99 | (52 | ) | |||||||
Non U.S. | 417 | 157 | 468 | ||||||||
380 | 123 | (1,206 | ) | ||||||||
Deferred | (5,111 | ) | 2,951 | 830 | |||||||
Income tax (benefit) provision | $ | (4,731 | ) | $ | 3,074 | $ | (376 | ) |
2015 | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
Deferred tax benefit | $ | (1,916 | ) | $ | 1,778 | $ | 830 | ||||
Impact of NYS tax reform legislation | — | 1,173 | — | ||||||||
Net operating loss carryforward | (3,195 | ) | — | — | |||||||
$ | (5,111 | ) | $ | 2,951 | $ | 830 |
May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Deferred tax assets | |||||||
Net operating loss carryforward | $ | 51,785 | $ | 48,749 | |||
Stock-based compensation | 4,468 | 4,851 | |||||
Federal and state R&D tax credit carryforward | 1,646 | 1,249 | |||||
Inventories | 2,808 | 875 | |||||
Expenses incurred not currently deductible | 2,107 | 1,379 | |||||
Accrued liabilities | 114 | 154 | |||||
Gross deferred tax asset | 62,928 | 57,257 | |||||
Deferred tax liabilities | |||||||
Excess tax over book depreciation and amortization | 42,988 | 41,843 | |||||
42,988 | 41,843 | ||||||
Valuation Allowance | (1,791 | ) | (1,532 | ) | |||
Net deferred tax asset | $ | 18,149 | $ | 13,882 |
2015 | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
Income tax (benefit) provision at statutory tax rate of 35% | $ | (2,800 | ) | $ | 2,008 | $ | (555 | ) | |||
Effect of graduated tax rates | 80 | (57 | ) | (16 | ) | ||||||
State income taxes, net of Federal tax benefit | (17 | ) | 122 | 95 | |||||||
State income tax credits, net of Federal tax benefit | — | — | (23 | ) | |||||||
Impact of Non US operations | 133 | (27 | ) | (228 | ) | ||||||
Research and development tax credit | (604 | ) | (236 | ) | (142 | ) | |||||
Nondeductible acquisition costs | — | — | 110 | ||||||||
Nondeductible interest on contingent payments | 265 | 540 | 130 | ||||||||
Nontaxable gain on revaluation of contingent consideration liability | (3,138 | ) | (1,698 | ) | — | ||||||
Tax law changes | (454 | ) | 1,173 | — | |||||||
Effect of elimination of stock compensation APIC pool | 1,253 | 440 | — | ||||||||
Nondeductible stock-based compensation | — | 176 | 108 | ||||||||
Other nondeductible expenses | 498 | 384 | 336 | ||||||||
Over (under) accrual of prior year Federal and state taxes | 38 | 249 | (10 | ) | |||||||
Fully reserved capital losses | — | — | (179 | ) | |||||||
Other | 15 | — | (2 | ) | |||||||
Income tax (benefit) expense | $ | (4,731 | ) | $ | 3,074 | $ | (376 | ) |
May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Raw materials | $ | 28,040 | $ | 24,734 | |||
Work in process | 11,910 | 11,992 | |||||
Finished goods | 27,438 | 24,508 | |||||
Total | $ | 67,388 | $ | 61,234 |
Amortized cost | Fair Value | ||||||
(in thousands) | |||||||
As of May 31, 2015: | |||||||
Due in one year or less | $ | — | $ | — | |||
Due after one through five years | — | — | |||||
Due after five through twenty years | 1,825 | 1,689 | |||||
$ | 1,825 | $ | 1,689 |
Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities | |||||||||||||||
New York State government agency obligations | $ | 1,825 | $ | — | $ | (136 | ) | $ | 1,689 | ||||||
$ | 1,825 | $ | — | $ | (136 | ) | $ | 1,689 |
Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities | |||||||||||||||
New York State government agency obligations | $ | 1,825 | $ | — | $ | (16 | ) | $ | 1,809 | ||||||
$ | 1,825 | $ | — | $ | (16 | ) | $ | 1,809 |
Amortized cost | Fair Value | ||||||
(in thousands) | |||||||
As of May 31, 2015: | |||||||
Due in one year or less | $ | — | $ | — | |||
Due after one through five years | — | — | |||||
Due after five through twenty years | 1,825 | 1,689 | |||||
$ | 1,825 | $ | 1,689 |
2016 | $ | 8,750 | |
2017 | 13,750 | ||
2018 | 26,250 | ||
2019 | 88,910 | ||
2020 | — | ||
$ | 137,660 |
Estimated useful lives | ||
Building and building improvements | 39 years | |
Machinery and equipment | 3 to 8 years | |
Computer software and equipment | 3 to 10 years |
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 considerations 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 amount and timing of future interest and principal payments, forward projections of 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 associated with auction-rate securities. |
Fair Value Measurements using inputs considered as: | |||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2015 | ||||||||||||
Financial Assets | |||||||||||||||
Marketable securities | |||||||||||||||
New York State government agency obligations | $ | — | $ | — | $ | 1,689 | $ | 1,689 | |||||||
Total | — | — | 1,689 | 1,689 | |||||||||||
Total Financial Assets | $ | — | $ | — | $ | 1,689 | $ | 1,689 | |||||||
Financial Liabilities | |||||||||||||||
Interest rate swap agreements | $ | — | $ | 257 | $ | — | $ | 257 | |||||||
Contingent liability for acquisition earn out | — | — | 47,384 | 47,384 | |||||||||||
Total Financial Liabilities | $ | — | $ | 257 | $ | 47,384 | $ | 47,641 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2014 | ||||||||||||
Financial Assets | |||||||||||||||
Cash equivalents | |||||||||||||||
Money market funds | $ | 445 | $ | — | $ | — | $ | 445 | |||||||
Total | 445 | — | — | 445 | |||||||||||
Marketable securities | |||||||||||||||
New York State government agency obligations | — | — | 1,809 | 1,809 | |||||||||||
Total | — | — | 1,809 | 1,809 | |||||||||||
Total Financial Assets | $ | 445 | $ | — | $ | 1,809 | $ | 2,254 | |||||||
Financial Liabilities | |||||||||||||||
Interest rate swap agreements | $ | — | $ | 555 | $ | — | $ | 555 | |||||||
Contingent liability for acquisition earn out | — | — | 67,331 | 67,331 | |||||||||||
Total Financial Liabilities | $ | — | $ | 555 | $ | 67,331 | $ | 67,886 |
Financial Assets | Financial Liabilities | ||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs | ||||||
Balance at May 31, 2014 | $ | 1,809 | $ | 67,331 | |||
Change in fair value of contingent consideration (1) | — | (8,196 | ) | ||||
Currency (gain) loss from remeasurement | — | (529 | ) | ||||
Included in other comprehensive income (loss) | (120 | ) | — | ||||
Contingent consideration payments | — | (11,222 | ) | ||||
Balance at May 31, 2015 | $ | 1,689 | $ | 47,384 |
Financial Assets | Financial Liabilities | ||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs | ||||||
Balance at May 31, 2013 | $ | 1,850 | $ | 75,049 | |||
Change in fair value of contingent consideration (1) | — | (1,808 | ) | ||||
New contingent consideration | — | 4,970 | |||||
Currency (gain) loss from remeasurement | — | — | |||||
Included in other comprehensive income (loss) | (41 | ) | — | ||||
Contingent consideration payments | — | (10,880 | ) | ||||
Balance at May 31, 2014 | $ | 1,809 | $ | 67,331 |
Fair value at May 31, 2015 | Valuation Technique | Unobservable Input | Range | ||||||
Revenue based payments | $ | 44,716 | Discounted cash flow | Discount rate Probability of payment Projected fiscal year of payment | 4% 75% - 100% 2016 - 2022 | ||||
Milestone based payments | 2,668 | Discounted cash flow | Discount rate Probability of payment Projected fiscal year of payment | 16% 75% - 100% 2017 | |||||
$ | 47,384 |
May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Building and building improvements | $ | 33,853 | $ | 33,126 | |||
Machinery and equipment | 23,626 | 31,880 | |||||
Computer software and equipment | 24,431 | 25,836 | |||||
Construction in progress | 7,143 | 12,564 | |||||
89,053 | 103,406 | ||||||
Less accumulated depreciation and amortization | (36,197 | ) | (37,845 | ) | |||
52,856 | 65,561 | ||||||
Land and land improvements | 1,704 | 1,029 | |||||
$ | 54,560 | $ | 66,590 |
Estimated useful lives | ||
Building and building improvements | 39 years | |
Machinery and equipment | 3 to 8 years | |
Computer software and equipment | 3 to 10 years |
May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Building and building improvements | $ | 33,853 | $ | 33,126 | |||
Machinery and equipment | 23,626 | 31,880 | |||||
Computer software and equipment | 24,431 | 25,836 | |||||
Construction in progress | 7,143 | 12,564 | |||||
89,053 | 103,406 | ||||||
Less accumulated depreciation and amortization | (36,197 | ) | (37,845 | ) | |||
52,856 | 65,561 | ||||||
Land and land improvements | 1,704 | 1,029 | |||||
$ | 54,560 | $ | 66,590 |
May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Payroll and related expenses | $ | 10,330 | $ | 8,114 | |||
Royalties | 2,237 | 2,620 | |||||
Accrued severance | 158 | 765 | |||||
Sales and franchise taxes | 489 | 1,327 | |||||
Interest rate swap liability | 257 | 555 | |||||
Outside services | 1,522 | 983 | |||||
Deferred Rent | 808 | 154 | |||||
Other | 2,530 | 2,733 | |||||
Total | $ | 18,331 | $ | 17,251 |
Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities | |||||||||||||||
New York State government agency obligations | $ | 1,825 | $ | — | $ | (136 | ) | $ | 1,689 | ||||||
$ | 1,825 | $ | — | $ | (136 | ) | $ | 1,689 |
Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities | |||||||||||||||
New York State government agency obligations | $ | 1,825 | $ | — | $ | (16 | ) | $ | 1,809 | ||||||
$ | 1,825 | $ | — | $ | (16 | ) | $ | 1,809 |
2015 | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
Current | |||||||||||
Federal | $ | (242 | ) | $ | (133 | ) | $ | (1,622 | ) | ||
State and local | 205 | 99 | (52 | ) | |||||||
Non U.S. | 417 | 157 | 468 | ||||||||
380 | 123 | (1,206 | ) | ||||||||
Deferred | (5,111 | ) | 2,951 | 830 | |||||||
Income tax (benefit) provision | $ | (4,731 | ) | $ | 3,074 | $ | (376 | ) |
May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Deferred tax assets | |||||||
Net operating loss carryforward | $ | 51,785 | $ | 48,749 | |||
Stock-based compensation | 4,468 | 4,851 | |||||
Federal and state R&D tax credit carryforward | 1,646 | 1,249 | |||||
Inventories | 2,808 | 875 | |||||
Expenses incurred not currently deductible | 2,107 | 1,379 | |||||
Accrued liabilities | 114 | 154 | |||||
Gross deferred tax asset | 62,928 | 57,257 | |||||
Deferred tax liabilities | |||||||
Excess tax over book depreciation and amortization | 42,988 | 41,843 | |||||
42,988 | 41,843 | ||||||
Valuation Allowance | (1,791 | ) | (1,532 | ) | |||
Net deferred tax asset | $ | 18,149 | $ | 13,882 |
2015 | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
Income tax (benefit) provision at statutory tax rate of 35% | $ | (2,800 | ) | $ | 2,008 | $ | (555 | ) | |||
Effect of graduated tax rates | 80 | (57 | ) | (16 | ) | ||||||
State income taxes, net of Federal tax benefit | (17 | ) | 122 | 95 | |||||||
State income tax credits, net of Federal tax benefit | — | — | (23 | ) | |||||||
Impact of Non US operations | 133 | (27 | ) | (228 | ) | ||||||
Research and development tax credit | (604 | ) | (236 | ) | (142 | ) | |||||
Nondeductible acquisition costs | — | — | 110 | ||||||||
Nondeductible interest on contingent payments | 265 | 540 | 130 | ||||||||
Nontaxable gain on revaluation of contingent consideration liability | (3,138 | ) | (1,698 | ) | — | ||||||
Tax law changes | (454 | ) | 1,173 | — | |||||||
Effect of elimination of stock compensation APIC pool | 1,253 | 440 | — | ||||||||
Nondeductible stock-based compensation | — | 176 | 108 | ||||||||
Other nondeductible expenses | 498 | 384 | 336 | ||||||||
Over (under) accrual of prior year Federal and state taxes | 38 | 249 | (10 | ) | |||||||
Fully reserved capital losses | — | — | (179 | ) | |||||||
Other | 15 | — | (2 | ) | |||||||
Income tax (benefit) expense | $ | (4,731 | ) | $ | 3,074 | $ | (376 | ) |
Fair Value Measurements using inputs considered as: | |||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2015 | ||||||||||||
Financial Assets | |||||||||||||||
Marketable securities | |||||||||||||||
New York State government agency obligations | $ | — | $ | — | $ | 1,689 | $ | 1,689 | |||||||
Total | — | — | 1,689 | 1,689 | |||||||||||
Total Financial Assets | $ | — | $ | — | $ | 1,689 | $ | 1,689 | |||||||
Financial Liabilities | |||||||||||||||
Interest rate swap agreements | $ | — | $ | 257 | $ | — | $ | 257 | |||||||
Contingent liability for acquisition earn out | — | — | 47,384 | 47,384 | |||||||||||
Total Financial Liabilities | $ | — | $ | 257 | $ | 47,384 | $ | 47,641 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2014 | ||||||||||||
Financial Assets | |||||||||||||||
Cash equivalents | |||||||||||||||
Money market funds | $ | 445 | $ | — | $ | — | $ | 445 | |||||||
Total | 445 | — | — | 445 | |||||||||||
Marketable securities | |||||||||||||||
New York State government agency obligations | — | — | 1,809 | 1,809 | |||||||||||
Total | — | — | 1,809 | 1,809 | |||||||||||
Total Financial Assets | $ | 445 | $ | — | $ | 1,809 | $ | 2,254 | |||||||
Financial Liabilities | |||||||||||||||
Interest rate swap agreements | $ | — | $ | 555 | $ | — | $ | 555 | |||||||
Contingent liability for acquisition earn out | — | — | 67,331 | 67,331 | |||||||||||
Total Financial Liabilities | $ | — | $ | 555 | $ | 67,331 | $ | 67,886 |
Total | |||
Balance, May 31, 2013 | $ | 355,637 | |
Acquisition of Clinical Devices B.V. | 4,836 | ||
Balance, May 31, 2014 | $ | 360,473 | |
Tax basis adjustment | 779 | ||
Balance, May 31, 2015 | $ | 361,252 |
2015 | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
(Loss) income before tax provision: | |||||||||||
US | $ | (8,833 | ) | $ | 5,199 | $ | (3,614 | ) | |||
Non-US | 834 | 541 | 2,027 | ||||||||
$ | (7,999 | ) | $ | 5,740 | $ | (1,587 | ) |
May 31, 2015 | May 31, 2014 | ||||||
(in thousands) | |||||||
Raw materials | $ | 28,040 | $ | 24,734 | |||
Work in process | 11,910 | 11,992 | |||||
Finished goods | 27,438 | 24,508 | |||||
Total | $ | 67,388 | $ | 61,234 |
2016 | $ | 8,750 | |
2017 | 13,750 | ||
2018 | 26,250 | ||
2019 | 88,910 | ||
2020 | — | ||
$ | 137,660 |
Non-Vested Stock Award Units | Weighted Average Grant-Date Fair Value | |||||
Non-vested at beginning of year | 587,991 | $ | 14.82 | |||
Granted | 242,158 | $ | 14.75 | |||
Vested | (160,207 | ) | $ | 14.83 | ||
Canceled | (106,841 | ) | $ | 12.33 | ||
Non-vested at end of year | 563,101 | $ | 13.73 | |||
Awards expected to vest in future periods | 492,432 | $ | 13.73 |
Year Ended | |||||||||||
May 31, 2015 | May 31, 2014 | May 31, 2013 | |||||||||
Net sales by Geography | |||||||||||
United States | $ | 280,851 | $ | 280,161 | $ | 266,228 | |||||
International | 71,946 | 68,219 | 67,190 | ||||||||
Supply Agreement | 4,177 | 6,045 | 8,498 | ||||||||
Total | $ | 356,974 | $ | 354,425 | $ | 341,916 |
2015 | ||||||||||||
Shares | Weighted- average exercise price | Weighted average remaining contractual life | Aggregate intrinsic value (in thousands) | |||||||||
Outstanding at beginning of year | 2,673,751 | $ | 14.82 | |||||||||
Granted | 561,883 | $ | 16.14 | |||||||||
Exercised | (423,804 | ) | $ | 13.87 | ||||||||
Forfeited | (261,738 | ) | $ | 14.71 | ||||||||
Expired | (250,779 | ) | $ | 17.98 | ||||||||
Outstanding at end of year | 2,299,313 | $ | 14.86 | 3.89 | $ | 4,571 | ||||||
Options exercisable at year-end | 1,271,028 | $ | 15.10 | 2.58 | $ | 2,547 | ||||||
Options expected to vest in future periods | 903,143 | $ | 14.56 | 5.52 | $ | 1,778 |
SCHEDULE II -VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
(in thousands) | |||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||
Description | Balance at Beginning of Year | Additions - Charged to costs and expenses | Deductions | Balance at End of Period | |||||||||||
Year Ended May 31, 2013 | |||||||||||||||
Allowance for deferred tax asset (a) | 1,196 | — | (484 | ) | 712 | ||||||||||
Allowance for sales returns and doubtful accounts (b) | 933 | 4,134 | (3,795 | ) | 1,272 | ||||||||||
Totals | $ | 2,129 | $ | 4,134 | $ | (4,279 | ) | $ | 1,984 | ||||||
Year Ended May 31, 2014 | |||||||||||||||
Allowance for deferred tax asset (a) | 712 | 819 | — | 1,531 | |||||||||||
Allowance for sales returns and doubtful accounts (b) | 1,272 | 7,342 | (6,878 | ) | 1,736 | ||||||||||
Totals | $ | 1,984 | $ | 8,161 | $ | (6,878 | ) | $ | 3,267 | ||||||
Year Ended May 31, 2015 | |||||||||||||||
Allowance for deferred tax asset (a) | 1,531 | 467 | (207 | ) | 1,791 | ||||||||||
Allowance for sales returns and doubtful accounts (b) | 1,736 | 1,846 | (539 | ) | 3,043 | ||||||||||
Totals | $ | 3,267 | $ | 2,313 | $ | (746 | ) | $ | 4,834 |
(a) | Use of fully reserved capital losses and expiration of fully reserved state tax credits. |
(b) | Previously reserved sales returns and accounts written off as uncollectible. |
2015 | 2014 | 2013 | ||||||
Basic | 35,683,139 | 35,135,689 | 34,817,279 | |||||
Effect of dilutive securities | — | 304,161 | — | |||||
Diluted | 35,683,139 | 35,439,850 | 34,817,279 | |||||
Securities excluded as their inclusion would be anti-dilutive | 2,862,414 | 2,347,426 | 2,904,944 |
2016 | $ | 18,452 | |
2017 | $ | 18,568 | |
2018 | $ | 19,388 | |
2019 | $ | 21,499 | |
2020 | $ | 22,741 |
Year Ended | |||||||||||
May 31, 2015 | May 31, 2014 | May 31, 2013 | |||||||||
Net sales by Product Category | |||||||||||
Peripheral Vascular | $ | 192,833 | $ | 192,626 | $ | 179,573 | |||||
Vascular Access | 107,874 | 106,394 | 106,690 | ||||||||
Oncology/Surgery | 52,090 | 49,360 | 47,155 | ||||||||
Supply Agreement | 4,177 | 6,045 | 8,498 | ||||||||
Total | $ | 356,974 | $ | 354,425 | $ | 341,916 |
Year Ended | |||||||||||
May 31, 2015 | May 31, 2014 | May 31, 2013 | |||||||||
Net sales by Geography | |||||||||||
United States | $ | 280,851 | $ | 280,161 | $ | 266,228 | |||||
International | 71,946 | 68,219 | 67,190 | ||||||||
Supply Agreement | 4,177 | 6,045 | 8,498 | ||||||||
Total | $ | 356,974 | $ | 354,425 | $ | 341,916 |
2015 | ||||||||||||
Shares | Weighted- average exercise price | Weighted average remaining contractual life | Aggregate intrinsic value (in thousands) | |||||||||
Outstanding at beginning of year | 2,673,751 | $ | 14.82 | |||||||||
Granted | 561,883 | $ | 16.14 | |||||||||
Exercised | (423,804 | ) | $ | 13.87 | ||||||||
Forfeited | (261,738 | ) | $ | 14.71 | ||||||||
Expired | (250,779 | ) | $ | 17.98 | ||||||||
Outstanding at end of year | 2,299,313 | $ | 14.86 | 3.89 | $ | 4,571 | ||||||
Options exercisable at year-end | 1,271,028 | $ | 15.10 | 2.58 | $ | 2,547 | ||||||
Options expected to vest in future periods | 903,143 | $ | 14.56 | 5.52 | $ | 1,778 |
Range of exercise prices | Number outstanding | Weighted- average remaining life in years | Weighted- average exercise price | Number Exercisable | Weighted- average exercise price | ||||||||||
$10.25 - $14.24 | 1,403,859 | 4.09 | $ | 12.94 | 793,406 | $ | 13.03 | ||||||||
$14.25 - $18.24 | 564,416 | 4.13 | 15.96 | 251,584 | 15.51 | ||||||||||
$18.25 - $22.24 | 217,069 | 3.75 | 19.38 | 112,069 | 19.35 | ||||||||||
$22.25 - $26.24 | 99,908 | 0.43 | 23.94 | 99,908 | 23.94 | ||||||||||
$26.25 - $30.24 | 14,061 | 0.94 | 28.10 | 14,061 | 28.10 | ||||||||||
2,299,313 | 3.89 | $ | 14.86 | 1,271,028 | $ | 15.10 |
Non-Vested Stock Award Units | Weighted Average Grant-Date Fair Value | |||||
Non-vested at beginning of year | 587,991 | $ | 14.82 | |||
Granted | 242,158 | $ | 14.75 | |||
Vested | (160,207 | ) | $ | 14.83 | ||
Canceled | (106,841 | ) | $ | 12.33 | ||
Non-vested at end of year | 563,101 | $ | 13.73 | |||
Awards expected to vest in future periods | 492,432 | $ | 13.73 |