May 31, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Software licenses | $ | 582 | $ | 282 | |||
License fees | 118 | 108 | |||||
Trade shows | 162 | 278 | |||||
Rent | 121 | 127 | |||||
Other prepaid taxes | 208 | 160 | |||||
Medical device excise tax receivable | 1,837 | — | |||||
Other | 2,762 | 2,288 | |||||
Total | $ | 5,790 | $ | 3,243 |
May 31, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Software licenses | $ | 582 | $ | 282 | |||
License fees | 118 | 108 | |||||
Trade shows | 162 | 278 | |||||
Rent | 121 | 127 | |||||
Other prepaid taxes | 208 | 160 | |||||
Medical device excise tax receivable | 1,837 | — | |||||
Other | 2,762 | 2,288 | |||||
Total | $ | 5,790 | $ | 3,243 |
May 31, 2017 | |||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | |||||||||
(in thousands) | |||||||||||
Product technologies | $ | 147,172 | $ | (59,696 | ) | $ | 87,476 | ||||
Customer relationships | 56,375 | (19,194 | ) | 37,181 | |||||||
Trademarks | 28,400 | (9,069 | ) | 19,331 | |||||||
Licenses | 4,487 | (3,821 | ) | 666 | |||||||
Distributor relationships | 1,250 | (229 | ) | 1,021 | |||||||
$ | 237,684 | $ | (92,009 | ) | $ | 145,675 |
May 31, 2016 | |||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | |||||||||
(in thousands) | |||||||||||
Product technologies | $ | 148,387 | $ | (51,313 | ) | $ | 97,074 | ||||
Customer relationships | 88,389 | (47,133 | ) | 41,256 | |||||||
Trademarks | 28,470 | (6,242 | ) | 22,228 | |||||||
Licenses | 7,931 | (6,716 | ) | 1,215 | |||||||
Distributor relationships | 2,150 | (946 | ) | 1,204 | |||||||
In process R&D | 3,600 | — | 3,600 | ||||||||
$ | 278,927 | $ | (112,350 | ) | $ | 166,577 |
For the year ended May 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Net sales by Product Category | |||||||||||
Peripheral Vascular | $ | 208,602 | $ | 205,620 | $ | 196,890 | |||||
Vascular Access | 96,481 | 99,375 | 107,754 | ||||||||
Oncology/Surgery | 44,560 | 48,895 | 51,890 | ||||||||
Total | $ | 349,643 | $ | 353,890 | $ | 356,534 |
May 31, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Payroll and related expenses | $ | 11,383 | $ | 9,414 | |||
Royalties | 2,885 | 2,489 | |||||
Accrued severance | 2,075 | 1,524 | |||||
Sales and franchise taxes | 856 | 565 | |||||
Outside services | 1,622 | 2,063 | |||||
Litigation matters (Note 15) | 12,500 | — | |||||
Acculis recall liability | 2,563 | — | |||||
Other | 4,920 | 5,887 | |||||
Total | $ | 38,804 | $ | 21,942 |
(in thousands) | |||
2018 | $ | 2,214 | |
2019 | 2,066 | ||
2020 | 1,860 | ||
2021 | 1,025 | ||
2022 and thereafter | 2,552 | ||
$ | 9,717 |
(in thousands) | Total | 2018 | 2019 | 2020 | 2021 | 2022 and thereafter | |||||||||||||||||
Purchase obligations (1) | $ | 49,762 | $ | 8,443 | $ | 8,726 | $ | 9,162 | $ | 8,709 | $ | 14,722 | |||||||||||
Royalties | 44,000 | 2,500 | 3,000 | 3,500 | 3,500 | 31,500 | |||||||||||||||||
Other | 834 | 167 | 167 | 167 | 167 | 166 | |||||||||||||||||
$ | 94,596 | $ | 11,110 | $ | 11,893 | $ | 12,829 | $ | 12,376 | $ | 46,388 |
(1) | The non-cancelable inventory purchase obligations are not reflected on our consolidated balance sheets under accounting principles generally accepted in the United States of America. |
(in thousands) | |||
2018 | $ | 2,214 | |
2019 | 2,066 | ||
2020 | 1,860 | ||
2021 | 1,025 | ||
2022 and thereafter | 2,552 | ||
$ | 9,717 |
For the year ended May 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Basic | 36,616,859 | 36,161,383 | 35,683,139 | |||||
Effect of dilutive securities | 342,391 | — | — | |||||
Diluted | 36,959,250 | 36,161,383 | 35,683,139 | |||||
Securities excluded as their inclusion would be anti-dilutive | 1,058,790 | 3,277,037 | 2,862,414 |
Financial Assets | Financial Liabilities | ||||||
(in thousands) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||
Balance at May 31, 2016 | $ | 1,653 | $ | 38,275 | |||
Change in fair value of contingent consideration, net (1) | — | (15,261 | ) | ||||
Currency (gain) loss from remeasurement | — | (153 | ) | ||||
Fair market value adjustments | 12 | — | |||||
Sale of securities | (450 | ) | — | ||||
Contingent consideration payments | — | (10,100 | ) | ||||
Balance at May 31, 2017 | $ | 1,215 | $ | 12,761 |
Financial Assets | Financial Liabilities | ||||||
(in thousands) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||
Balance at May 31, 2015 | $ | 1,689 | $ | 47,384 | |||
Change in fair value of contingent consideration (1) | — | 948 | |||||
Currency (gain) loss from remeasurement | — | 43 | |||||
Fair market value adjustments | (36 | ) | — | ||||
Contingent consideration payments | — | (10,100 | ) | ||||
Balance at May 31, 2016 | $ | 1,653 | $ | 38,275 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2017 | |||||||||||
Financial Assets | |||||||||||||||
Marketable securities | $ | — | $ | — | $ | 1,215 | $ | 1,215 | |||||||
Total Financial Assets | $ | — | $ | — | $ | 1,215 | $ | 1,215 | |||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn outs | $ | — | $ | — | $ | 12,761 | $ | 12,761 | |||||||
Total Financial Liabilities | $ | — | $ | — | $ | 12,761 | $ | 12,761 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2016 | |||||||||||
Financial Assets | |||||||||||||||
Marketable securities | $ | — | $ | — | $ | 1,653 | $ | 1,653 | |||||||
Total Financial Assets | $ | — | $ | — | $ | 1,653 | $ | 1,653 | |||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn outs | $ | — | $ | — | $ | 38,275 | $ | 38,275 | |||||||
Total Financial Liabilities | $ | — | $ | — | $ | 38,275 | $ | 38,275 |
Financial Assets | Financial Liabilities | ||||||
(in thousands) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||
Balance at May 31, 2016 | $ | 1,653 | $ | 38,275 | |||
Change in fair value of contingent consideration, net (1) | — | (15,261 | ) | ||||
Currency (gain) loss from remeasurement | — | (153 | ) | ||||
Fair market value adjustments | 12 | — | |||||
Sale of securities | (450 | ) | — | ||||
Contingent consideration payments | — | (10,100 | ) | ||||
Balance at May 31, 2017 | $ | 1,215 | $ | 12,761 |
Financial Assets | Financial Liabilities | ||||||
(in thousands) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||
Balance at May 31, 2015 | $ | 1,689 | $ | 47,384 | |||
Change in fair value of contingent consideration (1) | — | 948 | |||||
Currency (gain) loss from remeasurement | — | 43 | |||||
Fair market value adjustments | (36 | ) | — | ||||
Contingent consideration payments | — | (10,100 | ) | ||||
Balance at May 31, 2016 | $ | 1,653 | $ | 38,275 |
(in thousands) | Fair value at May 31, 2017 | Valuation Technique | Unobservable Input | Range | |||||
Revenue based payments | $ | 12,761 | Discounted cash flow | Discount rate Probability of payment Projected fiscal year of payment | 4% 100% 2018 - 2022 |
(in thousands) | Fair value at May 31, 2017 | Valuation Technique | Unobservable Input | Range | |||||
Revenue based payments | $ | 12,761 | Discounted cash flow | Discount rate Probability of payment Projected fiscal year of payment | 4% 100% 2018 - 2022 |
May 31, 2017 | |||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | |||||||||
(in thousands) | |||||||||||
Product technologies | $ | 147,172 | $ | (59,696 | ) | $ | 87,476 | ||||
Customer relationships | 56,375 | (19,194 | ) | 37,181 | |||||||
Trademarks | 28,400 | (9,069 | ) | 19,331 | |||||||
Licenses | 4,487 | (3,821 | ) | 666 | |||||||
Distributor relationships | 1,250 | (229 | ) | 1,021 | |||||||
$ | 237,684 | $ | (92,009 | ) | $ | 145,675 |
May 31, 2016 | |||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | |||||||||
(in thousands) | |||||||||||
Product technologies | $ | 148,387 | $ | (51,313 | ) | $ | 97,074 | ||||
Customer relationships | 88,389 | (47,133 | ) | 41,256 | |||||||
Trademarks | 28,470 | (6,242 | ) | 22,228 | |||||||
Licenses | 7,931 | (6,716 | ) | 1,215 | |||||||
Distributor relationships | 2,150 | (946 | ) | 1,204 | |||||||
In process R&D | 3,600 | — | 3,600 | ||||||||
$ | 278,927 | $ | (112,350 | ) | $ | 166,577 |
(in thousands) | |||
2018 | $ | 16,500 | |
2019 | 16,132 | ||
2020 | 14,578 | ||
2021 | 13,627 | ||
2022 | 12,952 | ||
2023 and thereafter | 71,886 | ||
$ | 145,675 |
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Income (loss) before tax expense: | |||||||||||
US | $ | 8,825 | $ | (4,444 | ) | $ | (8,965 | ) | |||
Non-US | 1,022 | 1,191 | 834 | ||||||||
$ | 9,847 | $ | (3,253 | ) | $ | (8,131 | ) |
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Current | |||||||||||
Federal | $ | — | $ | 34 | $ | (242 | ) | ||||
State and local | 141 | 103 | 205 | ||||||||
Non U.S. | 270 | 217 | 417 | ||||||||
411 | 354 | 380 | |||||||||
Deferred | 4,428 | 39,983 | (5,123 | ) | |||||||
Income tax expense (benefit) | $ | 4,839 | $ | 40,337 | $ | (4,743 | ) |
May 31, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Deferred tax assets | |||||||
Net operating loss carryforward | $ | 55,975 | $ | 52,593 | |||
Stock-based compensation | 2,653 | 4,135 | |||||
Federal and state R&D tax credit carryforward | 2,548 | 2,145 | |||||
Inventories | 2,407 | 4,535 | |||||
Expenses incurred not currently deductible | 6,522 | 3,018 | |||||
Accrued liabilities | 1,289 | 339 | |||||
Gross deferred tax asset | 71,394 | 66,765 | |||||
Deferred tax liabilities | |||||||
Excess tax over book depreciation and amortization | 49,158 | 46,240 | |||||
49,158 | 46,240 | ||||||
Valuation Allowance | (48,348 | ) | (42,209 | ) | |||
Net deferred tax liability | $ | (26,112 | ) | $ | (21,684 | ) |
For the year ended May 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Income tax expense (benefit) at statutory tax rate of 35% | $ | 3,447 | $ | (1,139 | ) | $ | (2,845 | ) | |||
Effect of graduated tax rates | (98 | ) | 33 | 81 | |||||||
State income taxes, net of Federal tax benefit | (22 | ) | (215 | ) | (21 | ) | |||||
Impact of Non-US operations | 403 | (162 | ) | 133 | |||||||
Research and development tax credit | (403 | ) | (499 | ) | (604 | ) | |||||
Meals and entertainment | 266 | 329 | — | ||||||||
Non-deductible interest on contingent payments | 174 | 262 | 265 | ||||||||
Non-taxable gain on revaluation of contingent consideration liability | (5,576 | ) | (170 | ) | (3,102 | ) | |||||
Tax law changes | — | — | (454 | ) | |||||||
Change in valuation allowance | 6,139 | 40,685 | — | ||||||||
Effect of elimination of stock compensation APIC pool | 1,380 | 739 | 1,253 | ||||||||
IPR&D intangible write-off | (1,224 | ) | — | — | |||||||
Other nondeductible expenses | 219 | 207 | 498 | ||||||||
Over (under) accrual of prior year Federal and State taxes | (3 | ) | 356 | 38 | |||||||
Other | 137 | (89 | ) | 15 | |||||||
Income tax expense (benefit) | $ | 4,839 | $ | 40,337 | $ | (4,743 | ) |
For the year ended May 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Unrecognized tax benefits balance at June 1 | $ | 899 | $ | — | $ | — | |||||
Increase in gross amounts of tax positions related to prior years | — | 899 | — | ||||||||
Unrecognized tax benefits balance at May 31 | $ | 899 | $ | 899 | $ | — |
May 31, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Raw materials | $ | 17,563 | $ | 21,669 | |||
Work in process | 12,602 | 10,700 | |||||
Finished goods | 24,341 | 23,001 | |||||
Total | $ | 54,506 | $ | 55,370 |
Amortized cost | Fair Value | ||||||
(in thousands) | |||||||
As of May 31, 2017: | |||||||
Due in one year or less | $ | — | $ | — | |||
Due after one through five years | — | — | |||||
Due after five through twenty years (1) | 1,350 | 1,215 | |||||
$ | 1,350 | $ | 1,215 |
Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities | |||||||||||||||
New York State government agency obligations | $ | 1,350 | $ | — | $ | (135 | ) | $ | 1,215 | ||||||
$ | 1,350 | $ | — | $ | (135 | ) | $ | 1,215 |
Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities | |||||||||||||||
New York State government agency obligations | $ | 1,800 | $ | — | $ | (147 | ) | $ | 1,653 | ||||||
$ | 1,800 | $ | — | $ | (147 | ) | $ | 1,653 |
Amortized cost | Fair Value | ||||||
(in thousands) | |||||||
As of May 31, 2017: | |||||||
Due in one year or less | $ | — | $ | — | |||
Due after one through five years | — | — | |||||
Due after five through twenty years (1) | 1,350 | 1,215 | |||||
$ | 1,350 | $ | 1,215 |
(in thousands) | |||
2018 | $ | 5,000 | |
2019 | 5,000 | ||
2020 | 7,500 | ||
2021 | 11,250 | ||
2022 | 68,750 | ||
Total term loan | 97,500 | ||
Revolving facility | — | ||
Total debt | 97,500 | ||
Less: Unamortized debt issuance costs | (1,180 | ) | |
Total | 96,320 | ||
Less: Current portion of long-term debt | (5,000 | ) | |
Total long-term debt, net of current portion | $ | 91,320 |
Estimated useful lives | ||
Building and building improvements | 39 years | |
Machinery and equipment | 3 to 8 years | |
Computer software and equipment | 3 to 10 years |
(in thousands) | Total | 2018 | 2019 | 2020 | 2021 | 2022 and thereafter | |||||||||||||||||
Purchase obligations (1) | $ | 49,762 | $ | 8,443 | $ | 8,726 | $ | 9,162 | $ | 8,709 | $ | 14,722 | |||||||||||
Royalties | 44,000 | 2,500 | 3,000 | 3,500 | 3,500 | 31,500 | |||||||||||||||||
Other | 834 | 167 | 167 | 167 | 167 | 166 | |||||||||||||||||
$ | 94,596 | $ | 11,110 | $ | 11,893 | $ | 12,829 | $ | 12,376 | $ | 46,388 |
(1) | The non-cancelable inventory purchase obligations are not reflected on our consolidated balance sheets under accounting principles generally accepted in the United States of America. |
May 31, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Building and building improvements | $ | 40,597 | $ | 39,585 | |||
Machinery and equipment | 25,434 | 24,078 | |||||
Computer software and equipment | 25,668 | 24,691 | |||||
Construction in progress | 1,464 | 1,743 | |||||
93,163 | 90,097 | ||||||
Less accumulated depreciation and amortization | (49,652 | ) | (43,536 | ) | |||
43,511 | 46,561 | ||||||
Land and land improvements | 1,723 | 1,723 | |||||
$ | 45,234 | $ | 48,284 |
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, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Building and building improvements | $ | 40,597 | $ | 39,585 | |||
Machinery and equipment | 25,434 | 24,078 | |||||
Computer software and equipment | 25,668 | 24,691 | |||||
Construction in progress | 1,464 | 1,743 | |||||
93,163 | 90,097 | ||||||
Less accumulated depreciation and amortization | (49,652 | ) | (43,536 | ) | |||
43,511 | 46,561 | ||||||
Land and land improvements | 1,723 | 1,723 | |||||
$ | 45,234 | $ | 48,284 |
2017 | |||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net sales | $ | 88,098 | $ | 89,029 | $ | 85,602 | $ | 86,914 | |||||||
Gross profit | 45,032 | 45,010 | 43,792 | 42,335 | |||||||||||
Net income (loss) (1) | 1,300 | 13,734 | 2,887 | (12,913 | ) | ||||||||||
Earnings (loss) per common share | |||||||||||||||
Basic | 0.04 | 0.37 | 0.08 | (0.35 | ) | ||||||||||
Diluted | 0.04 | 0.37 | 0.08 | (0.35 | ) |
2016 | |||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net sales | $ | 83,753 | $ | 89,284 | $ | 87,434 | $ | 93,419 | |||||||
Gross profit | 43,371 | 45,884 | 43,534 | 41,527 | |||||||||||
Net income (loss) (1) | (775 | ) | (334 | ) | 594 | (43,075 | ) | ||||||||
Earnings (loss) per common share | |||||||||||||||
Basic | (0.02 | ) | (0.01 | ) | 0.02 | (1.19 | ) | ||||||||
Diluted | (0.02 | ) | (0.01 | ) | 0.02 | (1.19 | ) |
For the year ended May 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Legal | $ | 19,480 | $ | 7,487 | $ | 4,959 | |||||
Intangible and other asset impairment | 5,604 | 352 | 15,504 | ||||||||
Restructuring | 1,348 | 1,462 | 1,997 | ||||||||
Other | 1,078 | 3,290 | 3,797 | ||||||||
Total | $ | 27,510 | $ | 12,591 | $ | 26,257 |
Total estimated amount expected to be incurred (in millions) | ||
Termination benefits | $1.75 to $2.25 | |
Plant consolidation (1) | $2.25 to $2.50 | |
Regulatory filings | $0.75 to $1.00 | |
Contract cancellations | $0.75 to $1.00 | |
Other | $0.75 to $1.00 | |
$6.25 to $7.75 |
Contract | ||||||||||||||||||||||||
Termination | Plant | Regulatory | Cancellation | Other | ||||||||||||||||||||
Benefits | Consolidation | Filings | Costs | Costs | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Balance at May 31, 2016 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Charges | 851 | 494 | — | — | 3 | 1,348 | ||||||||||||||||||
Non-cash adjustments | — | (108 | ) | — | — | — | (108 | ) | ||||||||||||||||
Cash payments | — | (275 | ) | — | — | (3 | ) | (278 | ) | |||||||||||||||
Balance at May 31, 2017 | $ | 851 | $ | 111 | $ | — | $ | — | $ | — | $ | 962 |
May 31, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Payroll and related expenses | $ | 11,383 | $ | 9,414 | |||
Royalties | 2,885 | 2,489 | |||||
Accrued severance | 2,075 | 1,524 | |||||
Sales and franchise taxes | 856 | 565 | |||||
Outside services | 1,622 | 2,063 | |||||
Litigation matters (Note 15) | 12,500 | — | |||||
Acculis recall liability | 2,563 | — | |||||
Other | 4,920 | 5,887 | |||||
Total | $ | 38,804 | $ | 21,942 |
(in thousands) | Foreign currency translation gain (loss) | Unrealized gain (loss) on marketable securities | Unrealized gain (loss) on interest rate swap | Total | ||||||||||||
Balance at May 31, 2015 | $ | (648 | ) | $ | (23 | ) | $ | (162 | ) | $ | (833 | ) | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (112 | ) | (8 | ) | 162 | 42 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | ||||||||||||
Net other comprehensive income (loss) | $ | (112 | ) | $ | (8 | ) | $ | 162 | $ | 42 | ||||||
Balance at May 31, 2016 | $ | (760 | ) | $ | (31 | ) | $ | — | $ | (791 | ) | |||||
Other comprehensive income (loss) before reclassifications, net of tax | (545 | ) | 12 | — | (533 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | ||||||||||||
Net other comprehensive income (loss) | $ | (545 | ) | $ | 12 | $ | — | $ | (533 | ) | ||||||
Balance at May 31, 2017 | $ | (1,305 | ) | $ | (19 | ) | $ | — | $ | (1,324 | ) | |||||
Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities | |||||||||||||||
New York State government agency obligations | $ | 1,350 | $ | — | $ | (135 | ) | $ | 1,215 | ||||||
$ | 1,350 | $ | — | $ | (135 | ) | $ | 1,215 |
Amortized cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities | |||||||||||||||
New York State government agency obligations | $ | 1,800 | $ | — | $ | (147 | ) | $ | 1,653 | ||||||
$ | 1,800 | $ | — | $ | (147 | ) | $ | 1,653 |
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Current | |||||||||||
Federal | $ | — | $ | 34 | $ | (242 | ) | ||||
State and local | 141 | 103 | 205 | ||||||||
Non U.S. | 270 | 217 | 417 | ||||||||
411 | 354 | 380 | |||||||||
Deferred | 4,428 | 39,983 | (5,123 | ) | |||||||
Income tax expense (benefit) | $ | 4,839 | $ | 40,337 | $ | (4,743 | ) |
May 31, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Deferred tax assets | |||||||
Net operating loss carryforward | $ | 55,975 | $ | 52,593 | |||
Stock-based compensation | 2,653 | 4,135 | |||||
Federal and state R&D tax credit carryforward | 2,548 | 2,145 | |||||
Inventories | 2,407 | 4,535 | |||||
Expenses incurred not currently deductible | 6,522 | 3,018 | |||||
Accrued liabilities | 1,289 | 339 | |||||
Gross deferred tax asset | 71,394 | 66,765 | |||||
Deferred tax liabilities | |||||||
Excess tax over book depreciation and amortization | 49,158 | 46,240 | |||||
49,158 | 46,240 | ||||||
Valuation Allowance | (48,348 | ) | (42,209 | ) | |||
Net deferred tax liability | $ | (26,112 | ) | $ | (21,684 | ) |
For the year ended May 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Income tax expense (benefit) at statutory tax rate of 35% | $ | 3,447 | $ | (1,139 | ) | $ | (2,845 | ) | |||
Effect of graduated tax rates | (98 | ) | 33 | 81 | |||||||
State income taxes, net of Federal tax benefit | (22 | ) | (215 | ) | (21 | ) | |||||
Impact of Non-US operations | 403 | (162 | ) | 133 | |||||||
Research and development tax credit | (403 | ) | (499 | ) | (604 | ) | |||||
Meals and entertainment | 266 | 329 | — | ||||||||
Non-deductible interest on contingent payments | 174 | 262 | 265 | ||||||||
Non-taxable gain on revaluation of contingent consideration liability | (5,576 | ) | (170 | ) | (3,102 | ) | |||||
Tax law changes | — | — | (454 | ) | |||||||
Change in valuation allowance | 6,139 | 40,685 | — | ||||||||
Effect of elimination of stock compensation APIC pool | 1,380 | 739 | 1,253 | ||||||||
IPR&D intangible write-off | (1,224 | ) | — | — | |||||||
Other nondeductible expenses | 219 | 207 | 498 | ||||||||
Over (under) accrual of prior year Federal and State taxes | (3 | ) | 356 | 38 | |||||||
Other | 137 | (89 | ) | 15 | |||||||
Income tax expense (benefit) | $ | 4,839 | $ | 40,337 | $ | (4,743 | ) |
For the year ended May 31, | ||||||||||||
(in thousands) | 2017 | 2016 | 2015 | |||||||||
Cost of sales | $ | 299 | $ | 172 | $ | 143 | ||||||
Research and development | 314 | 349 | 229 | |||||||||
Sales and marketing | 1,762 | 1,489 | 1,685 | |||||||||
General and administrative | 4,026 | 2,291 | 3,941 | |||||||||
Acquisition, restructuring and other items, net | (218 | ) | (1,061 | ) | — | |||||||
$ | 6,183 | $ | 3,240 | $ | 5,998 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2017 | |||||||||||
Financial Assets | |||||||||||||||
Marketable securities | $ | — | $ | — | $ | 1,215 | $ | 1,215 | |||||||
Total Financial Assets | $ | — | $ | — | $ | 1,215 | $ | 1,215 | |||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn outs | $ | — | $ | — | $ | 12,761 | $ | 12,761 | |||||||
Total Financial Liabilities | $ | — | $ | — | $ | 12,761 | $ | 12,761 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2016 | |||||||||||
Financial Assets | |||||||||||||||
Marketable securities | $ | — | $ | — | $ | 1,653 | $ | 1,653 | |||||||
Total Financial Assets | $ | — | $ | — | $ | 1,653 | $ | 1,653 | |||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn outs | $ | — | $ | — | $ | 38,275 | $ | 38,275 | |||||||
Total Financial Liabilities | $ | — | $ | — | $ | 38,275 | $ | 38,275 |
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Income (loss) before tax expense: | |||||||||||
US | $ | 8,825 | $ | (4,444 | ) | $ | (8,965 | ) | |||
Non-US | 1,022 | 1,191 | 834 | ||||||||
$ | 9,847 | $ | (3,253 | ) | $ | (8,131 | ) |
May 31, 2017 | May 31, 2016 | ||||||
(in thousands) | |||||||
Raw materials | $ | 17,563 | $ | 21,669 | |||
Work in process | 12,602 | 10,700 | |||||
Finished goods | 24,341 | 23,001 | |||||
Total | $ | 54,506 | $ | 55,370 |
(in thousands) | |||
2018 | $ | 5,000 | |
2019 | 5,000 | ||
2020 | 7,500 | ||
2021 | 11,250 | ||
2022 | 68,750 | ||
Total term loan | 97,500 | ||
Revolving facility | — | ||
Total debt | 97,500 | ||
Less: Unamortized debt issuance costs | (1,180 | ) | |
Total | 96,320 | ||
Less: Current portion of long-term debt | (5,000 | ) | |
Total long-term debt, net of current portion | $ | 91,320 |
Performance Unit Awards | Weighted Average Grant-Date Fair Value | |||||
Non-vested at beginning of year | 435,892 | $ | 19.16 | |||
Granted | 93,400 | $ | 22.61 | |||
Vested | (37,184 | ) | $ | 14.48 | ||
Canceled | (130,944 | ) | $ | 21.54 | ||
Non-vested at end of year | 361,164 | $ | 18.54 |
Weighted Average Grant-Date Fair Value | ||||||
Non-vested at beginning of year | 549,777 | $ | 14.62 | |||
Granted | 255,032 | $ | 16.54 | |||
Vested | (182,320 | ) | $ | 16.10 | ||
Canceled | (183,192 | ) | $ | 15.95 | ||
Non-vested at end of year | 439,297 | $ | 15.55 |
2017 | |||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net sales | $ | 88,098 | $ | 89,029 | $ | 85,602 | $ | 86,914 | |||||||
Gross profit | 45,032 | 45,010 | 43,792 | 42,335 | |||||||||||
Net income (loss) (1) | 1,300 | 13,734 | 2,887 | (12,913 | ) | ||||||||||
Earnings (loss) per common share | |||||||||||||||
Basic | 0.04 | 0.37 | 0.08 | (0.35 | ) | ||||||||||
Diluted | 0.04 | 0.37 | 0.08 | (0.35 | ) |
2016 | |||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net sales | $ | 83,753 | $ | 89,284 | $ | 87,434 | $ | 93,419 | |||||||
Gross profit | 43,371 | 45,884 | 43,534 | 41,527 | |||||||||||
Net income (loss) (1) | (775 | ) | (334 | ) | 594 | (43,075 | ) | ||||||||
Earnings (loss) per common share | |||||||||||||||
Basic | (0.02 | ) | (0.01 | ) | 0.02 | (1.19 | ) | ||||||||
Diluted | (0.02 | ) | (0.01 | ) | 0.02 | (1.19 | ) |
Contract | ||||||||||||||||||||||||
Termination | Plant | Regulatory | Cancellation | Other | ||||||||||||||||||||
Benefits | Consolidation | Filings | Costs | Costs | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Balance at May 31, 2016 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Charges | 851 | 494 | — | — | 3 | 1,348 | ||||||||||||||||||
Non-cash adjustments | — | (108 | ) | — | — | — | (108 | ) | ||||||||||||||||
Cash payments | — | (275 | ) | — | — | (3 | ) | (278 | ) | |||||||||||||||
Balance at May 31, 2017 | $ | 851 | $ | 111 | $ | — | $ | — | $ | — | $ | 962 |
Total estimated amount expected to be incurred (in millions) | ||
Termination benefits | $1.75 to $2.25 | |
Plant consolidation (1) | $2.25 to $2.50 | |
Regulatory filings | $0.75 to $1.00 | |
Contract cancellations | $0.75 to $1.00 | |
Other | $0.75 to $1.00 | |
$6.25 to $7.75 |
For the year ended May 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Legal | $ | 19,480 | $ | 7,487 | $ | 4,959 | |||||
Intangible and other asset impairment | 5,604 | 352 | 15,504 | ||||||||
Restructuring | 1,348 | 1,462 | 1,997 | ||||||||
Other | 1,078 | 3,290 | 3,797 | ||||||||
Total | $ | 27,510 | $ | 12,591 | $ | 26,257 |
For the year ended May 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Net sales by Geography | |||||||||||
United States | $ | 282,168 | $ | 285,824 | $ | 284,122 | |||||
International | 67,475 | 68,066 | 72,412 | ||||||||
Total | $ | 349,643 | $ | 353,890 | $ | 356,534 |
2017 | ||||||||||||
Shares | Weighted- average exercise price | Weighted average remaining contractual life | Aggregate intrinsic value (in thousands) | |||||||||
Outstanding at beginning of year | 2,281,618 | $ | 14.45 | |||||||||
Granted | 667,691 | $ | 16.83 | |||||||||
Exercised | (826,286 | ) | $ | 13.45 | ||||||||
Forfeited | (342,924 | ) | $ | 16.03 | ||||||||
Expired | (112,656 | ) | $ | 19.08 | ||||||||
Outstanding at end of year | 1,667,443 | $ | 15.01 | 4.66 | $ | 1,513 | ||||||
Options exercisable at year-end | 659,463 | $ | 14.26 | 2.88 | $ | 913 | ||||||
Options expected to vest in future periods | 884,906 | $ | 15.50 | 5.83 | $ | 527 |
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, 2015 | |||||||||||||||
Allowance for deferred tax asset | $ | 1,531 | $ | 467 | $ | (207 | ) | $ | 1,791 | ||||||
Allowance for sales returns and doubtful accounts | $ | 1,736 | $ | 1,846 | $ | (539 | ) | $ | 3,043 | ||||||
Year Ended May 31, 2016 | |||||||||||||||
Allowance for deferred tax asset | $ | 1,791 | $ | 40,685 | $ | (267 | ) | $ | 42,209 | ||||||
Allowance for sales returns and doubtful accounts | $ | 3,043 | $ | 3,748 | $ | (2,419 | ) | $ | 4,372 | ||||||
Year Ended May 31, 2017 | |||||||||||||||
Allowance for deferred tax asset | $ | 42,209 | $ | 6,139 | $ | — | $ | 48,348 | |||||||
Allowance for sales returns and doubtful accounts | $ | 4,372 | $ | (291 | ) | $ | (1,136 | ) | $ | 2,945 |
For the year ended May 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Basic | 36,616,859 | 36,161,383 | 35,683,139 | |||||
Effect of dilutive securities | 342,391 | — | — | |||||
Diluted | 36,959,250 | 36,161,383 | 35,683,139 | |||||
Securities excluded as their inclusion would be anti-dilutive | 1,058,790 | 3,277,037 | 2,862,414 |
(in thousands) | |||
2018 | $ | 16,500 | |
2019 | 16,132 | ||
2020 | 14,578 | ||
2021 | 13,627 | ||
2022 | 12,952 | ||
2023 and thereafter | 71,886 | ||
$ | 145,675 |
For the year ended May 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Net sales by Product Category | |||||||||||
Peripheral Vascular | $ | 208,602 | $ | 205,620 | $ | 196,890 | |||||
Vascular Access | 96,481 | 99,375 | 107,754 | ||||||||
Oncology/Surgery | 44,560 | 48,895 | 51,890 | ||||||||
Total | $ | 349,643 | $ | 353,890 | $ | 356,534 |
For the year ended May 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Net sales by Geography | |||||||||||
United States | $ | 282,168 | $ | 285,824 | $ | 284,122 | |||||
International | 67,475 | 68,066 | 72,412 | ||||||||
Total | $ | 349,643 | $ | 353,890 | $ | 356,534 |
2017 | ||||||||||||
Shares | Weighted- average exercise price | Weighted average remaining contractual life | Aggregate intrinsic value (in thousands) | |||||||||
Outstanding at beginning of year | 2,281,618 | $ | 14.45 | |||||||||
Granted | 667,691 | $ | 16.83 | |||||||||
Exercised | (826,286 | ) | $ | 13.45 | ||||||||
Forfeited | (342,924 | ) | $ | 16.03 | ||||||||
Expired | (112,656 | ) | $ | 19.08 | ||||||||
Outstanding at end of year | 1,667,443 | $ | 15.01 | 4.66 | $ | 1,513 | ||||||
Options exercisable at year-end | 659,463 | $ | 14.26 | 2.88 | $ | 913 | ||||||
Options expected to vest in future periods | 884,906 | $ | 15.50 | 5.83 | $ | 527 |
Weighted Average Grant-Date Fair Value | ||||||
Non-vested at beginning of year | 549,777 | $ | 14.62 | |||
Granted | 255,032 | $ | 16.54 | |||
Vested | (182,320 | ) | $ | 16.10 | ||
Canceled | (183,192 | ) | $ | 15.95 | ||
Non-vested at end of year | 439,297 | $ | 15.55 |
Performance Unit Awards | Weighted Average Grant-Date Fair Value | |||||
Non-vested at beginning of year | 435,892 | $ | 19.16 | |||
Granted | 93,400 | $ | 22.61 | |||
Vested | (37,184 | ) | $ | 14.48 | ||
Canceled | (130,944 | ) | $ | 21.54 | ||
Non-vested at end of year | 361,164 | $ | 18.54 |
For the year ended May 31, | ||||||||||||
(in thousands) | 2017 | 2016 | 2015 | |||||||||
Cost of sales | $ | 299 | $ | 172 | $ | 143 | ||||||
Research and development | 314 | 349 | 229 | |||||||||
Sales and marketing | 1,762 | 1,489 | 1,685 | |||||||||
General and administrative | 4,026 | 2,291 | 3,941 | |||||||||
Acquisition, restructuring and other items, net | (218 | ) | (1,061 | ) | — | |||||||
$ | 6,183 | $ | 3,240 | $ | 5,998 |