May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Software licenses | $ | 1,131 | $ | 1,043 | |||
License fees | 145 | 143 | |||||
Trade shows | 213 | 223 | |||||
Rent | 199 | 134 | |||||
Other prepaid taxes | 112 | 254 | |||||
Other | 2,203 | 2,505 | |||||
Total | $ | 4,003 | $ | 4,302 |
May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Software licenses | $ | 1,131 | $ | 1,043 | |||
License fees | 145 | 143 | |||||
Trade shows | 213 | 223 | |||||
Rent | 199 | 134 | |||||
Other prepaid taxes | 112 | 254 | |||||
Other | 2,203 | 2,505 | |||||
Total | $ | 4,003 | $ | 4,302 |
May 31, 2019 | |||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | |||||||||
(in thousands) | |||||||||||
Product technologies | $ | 182,971 | $ | (75,412 | ) | $ | 107,559 | ||||
Customer relationships | 60,166 | (25,950 | ) | 34,216 | |||||||
Trademarks | 9,300 | (6,404 | ) | 2,896 | |||||||
Licenses | 5,752 | (5,036 | ) | 716 | |||||||
$ | 258,189 | $ | (112,802 | ) | $ | 145,387 |
May 31, 2018 | |||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | |||||||||
(in thousands) | |||||||||||
Product technologies | $ | 141,675 | $ | (64,153 | ) | $ | 77,522 | ||||
Customer relationships | 55,028 | (22,794 | ) | 32,234 | |||||||
Trademarks | 6,200 | (5,642 | ) | 558 | |||||||
Licenses | 5,752 | (4,357 | ) | 1,395 | |||||||
Distributor relationships | 1,250 | (412 | ) | 838 | |||||||
$ | 209,905 | $ | (97,358 | ) | $ | 112,547 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Net sales by Product Category | |||||||||||
Vascular Interventions & Therapies | $ | 119,901 | $ | 119,704 | $ | 128,747 | |||||
Vascular Access | 94,730 | 92,760 | 96,481 | ||||||||
Oncology/Surgery | 56,003 | 49,191 | 44,560 | ||||||||
Total | $ | 270,634 | $ | 261,655 | $ | 269,788 |
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, 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 | |||||
Year Ended May 31, 2018 | |||||||||||||||
Allowance for deferred tax asset | $ | 48,348 | $ | — | $ | (21,741 | ) | $ | 26,607 | ||||||
Allowance for sales returns and doubtful accounts | $ | 2,945 | $ | 608 | $ | (1,087 | ) | $ | 2,466 | ||||||
Year Ended May 31, 2019 | |||||||||||||||
Allowance for deferred tax asset | $ | 26,607 | $ | — | $ | (14,919 | ) | $ | 11,688 | ||||||
Allowance for sales returns and doubtful accounts | $ | 2,466 | $ | 393 | $ | (953 | ) | $ | 1,906 |
May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Payroll and related expenses | $ | 14,987 | $ | 10,235 | |||
Royalties | 2,088 | 1,537 | |||||
Accrued severance | 504 | 1,940 | |||||
Sales and franchise taxes | 807 | 683 | |||||
Outside services | 3,514 | 2,396 | |||||
Litigation matters (Note 17) | 2,700 | 12,500 | |||||
Indemnification holdback | 4,807 | — | |||||
Other | 8,931 | 5,135 | |||||
Total | $ | 38,338 | $ | 34,426 |
Preliminary allocation | Adjustments (1) | Revised allocation | ||||||||||
(in thousands) | ||||||||||||
Accounts receivable | $ | 900 | $ | — | $ | 900 | ||||||
Inventory | 732 | — | 732 | |||||||||
Prepaid and other current assets | 98 | — | 98 | |||||||||
Property, plant and equipment | 133 | — | 133 | |||||||||
Intangible assets: | ||||||||||||
RadiaDyne trademark | 400 | — | 400 | |||||||||
OARtrac trademark | 200 | — | 200 | |||||||||
RadiaDyne legacy product technology | 1,500 | — | 1,500 | |||||||||
OARtrac product technology | 16,300 | 2,600 | 18,900 | |||||||||
RadiaDyne customer relationships | 3,700 | 900 | 4,600 | |||||||||
Goodwill | 51,482 | (3,500 | ) | 47,982 | ||||||||
Total assets acquired | $ | 75,445 | $ | — | $ | 75,445 | ||||||
Liabilities assumed | ||||||||||||
Accounts payable | $ | 352 | $ | — | $ | 352 | ||||||
Accrued expenses | 106 | — | 106 | |||||||||
Total liabilities assumed | $ | 458 | $ | — | $ | 458 | ||||||
Net assets acquired | $ | 74,987 | $ | — | $ | 74,987 |
Preliminary allocation | Adjustments (1) | Revised allocation | ||||||||||
(in thousands) | ||||||||||||
Inventory | $ | 50 | $ | — | $ | 50 | ||||||
Property, plant and equipment | 10 | — | 10 | |||||||||
Intangible assets: | ||||||||||||
BioSentry trademark | 1,700 | 800 | 2,500 | |||||||||
BioSentry product technology | 13,800 | 7,100 | 20,900 | |||||||||
Customer relationships | 2,500 | 100 | 2,600 | |||||||||
Goodwill | 21,740 | (8,000 | ) | 13,740 | ||||||||
Net assets acquired | $ | 39,800 | $ | — | $ | 39,800 |
(in thousands) | |||
2020 | $ | 2,920 | |
2021 | 2,338 | ||
2022 | 2,133 | ||
2023 | 2,131 | ||
2024 and thereafter | 3,227 | ||
$ | 12,749 |
(in thousands) | Total | 2020 | 2021 | 2022 | 2023 | 2024 and thereafter | |||||||||||||||||
Purchase obligations (1) | $ | 407 | $ | 407 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Royalties | 55,300 | 3,800 | 3,800 | 3,800 | 3,800 | 40,100 | |||||||||||||||||
$ | 55,707 | $ | 4,207 | $ | 3,800 | $ | 3,800 | $ | 3,800 | $ | 40,100 |
(in thousands) | Foreign currency translation gain (loss) | Unrealized gain (loss) on marketable securities | Total | |||||||||
Balance at May 31, 2017 | $ | (1,305 | ) | $ | (19 | ) | $ | (1,324 | ) | |||
Other comprehensive income before reclassifications, net of tax | 270 | 102 | 372 | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | |||||||||
Net other comprehensive income | $ | 270 | $ | 102 | $ | 372 | ||||||
Balance at May 31, 2018 | $ | (1,035 | ) | $ | 83 | $ | (952 | ) | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (317 | ) | 33 | (284 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | (116 | ) | (116 | ) | |||||||
Net other comprehensive loss | $ | (317 | ) | $ | (83 | ) | $ | (400 | ) | |||
Balance at May 31, 2019 | $ | (1,352 | ) | $ | — | $ | (1,352 | ) |
May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Receivables | $ | 43,577 | $ | 39,401 | |||
Contract assets | $ | — | $ | — | |||
Contract liabilities | $ | 681 | $ | 1,203 |
(in thousands) | |||
2020 | $ | 2,920 | |
2021 | 2,338 | ||
2022 | 2,133 | ||
2023 | 2,131 | ||
2024 and thereafter | 3,227 | ||
$ | 12,749 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities: | |||||||||||||||
New York State government agency obligations | $ | 1,350 | $ | — | $ | (33 | ) | $ | 1,317 | ||||||
$ | 1,350 | $ | — | $ | (33 | ) | $ | 1,317 |
Year ended May 31, 2019 | |||||||||||
(in thousands) | United States | International | Total | ||||||||
Net sales | |||||||||||
Vascular Interventions & Therapies | $ | 106,767 | $ | 13,134 | $ | 119,901 | |||||
Vascular Access | 79,611 | 15,119 | $ | 94,730 | |||||||
Oncology | 30,579 | 25,424 | $ | 56,003 | |||||||
Total | $ | 216,957 | $ | 53,677 | $ | 270,634 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Net sales | $ | 88,850 | $ | 82,630 | $ | 79,855 | |||||
Cost of sales (exclusive of amortization) | 52,978 | 49,611 | 47,636 | ||||||||
Gross profit | 35,872 | 33,019 | 32,219 | ||||||||
Operating expenses | |||||||||||
Research and development | 1,177 | 1,121 | 1,121 | ||||||||
Sales and marketing | 4,129 | 4,167 | 3,954 | ||||||||
General and administrative | 271 | 274 | 273 | ||||||||
Amortization of intangibles | 2,716 | 2,729 | 2,729 | ||||||||
Total operating expenses | 8,293 | 8,291 | 8,077 | ||||||||
Operating income | 27,579 | 24,728 | 24,142 | ||||||||
Gain on divestiture | 46,592 | — | — | ||||||||
Income from discontinued operations before income taxes | 74,171 | 24,728 | 24,142 | ||||||||
Income tax expense | (1,685 | ) | (2,166 | ) | (12,082 | ) | |||||
Income from discontinued operations | $ | 72,486 | $ | 22,562 | $ | 12,060 |
(in thousands) | |||
Proceeds received from Divestiture | $ | 169,242 | |
Working capital adjustment | (612 | ) | |
Fluid Management assets: | |||
Inventories | 11,029 | ||
Property, plant and equipment, net | 16,624 | ||
Intangible assets, net | 15,047 | ||
Goodwill | 75,308 | ||
Total Fluid Management assets | 118,008 | ||
Transaction costs for Divestiture (1) | 4,030 | ||
Gain on sale of the Fluid Management business before income taxes | $ | 46,592 |
(in thousands) | May 31, 2018 | ||
Inventories | $ | 9,642 | |
Total current assets held for sale | 9,642 | ||
Property, plant and equipment, net | 16,746 | ||
Intangible assets, net | 17,763 | ||
Goodwill | 75,308 | ||
Total non-current assets held for sale | 109,817 | ||
Total assets held for sale | $ | 119,459 |
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 2,245 | $ | 5,581 | $ | 3,968 | |||||
Net cash provided by investing activities | 982 | 1,146 | 1,361 |
Year ended May 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Basic | 37,484,573 | 37,074,797 | 36,616,859 | |||||
Effect of dilutive securities | — | — | — | |||||
Diluted | 37,484,573 | 37,074,797 | 36,616,859 | |||||
Securities excluded as their inclusion would be anti-dilutive | 2,200,318 | 1,077,256 | 1,058,790 |
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, 2018 | $ | 1,317 | $ | 3,261 | |||
Contingent consideration liabilities recorded as the result of acquisitions (Note 2) | — | 25,101 | |||||
Change in present value of contingent consideration (1) | — | (6,776 | ) | ||||
Fair market value adjustments | 33 | — | |||||
Proceeds from sale of marketable securities | (1,350 | ) | — | ||||
Contingent consideration payments | — | (8,100 | ) | ||||
Balance at May 31, 2019 | $ | — | $ | 13,486 |
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, 2017 | $ | 1,215 | $ | 12,761 | |||
Change in fair value of contingent consideration (1) | — | 250 | |||||
Fair market value adjustments | 102 | — | |||||
Contingent consideration payments | — | (9,750 | ) | ||||
Balance at May 31, 2018 | $ | 1,317 | $ | 3,261 |
• | Level 1 - Inputs to the valuation methodology are quoted market prices for identical assets or liabilities. |
• | Level 2 - Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs. |
• | Level 3 - Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. |
Fair Value Measurements using inputs considered as: | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2019 | |||||||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn outs | $ | — | $ | — | $ | 13,486 | $ | 13,486 | |||||||
Total Financial Liabilities | $ | — | $ | — | $ | 13,486 | $ | 13,486 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2018 | |||||||||||
Financial Assets | |||||||||||||||
Short-term investments (1) | $ | 2,100 | $ | — | $ | — | $ | 2,100 | |||||||
Marketable Securities | — | — | 1,317 | 1,317 | |||||||||||
Total Financial Assets | $ | 2,100 | $ | — | $ | 1,317 | $ | 3,417 | |||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn out | $ | — | $ | — | $ | 3,261 | $ | 3,261 | |||||||
Total Financial Liabilities | $ | — | $ | — | $ | 3,261 | $ | 3,261 |
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, 2018 | $ | 1,317 | $ | 3,261 | |||
Contingent consideration liabilities recorded as the result of acquisitions (Note 2) | — | 25,101 | |||||
Change in present value of contingent consideration (1) | — | (6,776 | ) | ||||
Fair market value adjustments | 33 | — | |||||
Proceeds from sale of marketable securities | (1,350 | ) | — | ||||
Contingent consideration payments | — | (8,100 | ) | ||||
Balance at May 31, 2019 | $ | — | $ | 13,486 |
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, 2017 | $ | 1,215 | $ | 12,761 | |||
Change in fair value of contingent consideration (1) | — | 250 | |||||
Fair market value adjustments | 102 | — | |||||
Contingent consideration payments | — | (9,750 | ) | ||||
Balance at May 31, 2018 | $ | 1,317 | $ | 3,261 |
(in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range | |||||
Revenue based payments | $ | 10,058 | Discounted cash flow | Discount rate | 4% - 5% | ||||
Probability of payment | 66% - 100% | ||||||||
Projected fiscal year of payment | 2020 - 2023 | ||||||||
Technical milestones | 3,428 | Estimated probability | Estimated probability | 90% | |||||
Projected year of payment | 2020 | ||||||||
$ | 13,486 |
(in thousands) | |||
Goodwill balance at May 31, 2018, before adjustment to conform goodwill to current presentation | $ | 361,252 | |
Goodwill associated with the Fluid Management divestiture (Note 3) | (75,308 | ) | |
Goodwill balance at May 31, 2018 | 285,944 | ||
Additions for BioSentry acquisition (Note 2) | 13,740 | ||
Additions for RadiaDyne acquisition (Note 2) | 47,982 | ||
Goodwill balance at May 31, 2019 | $ | 347,666 |
May 31, 2019 | |||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | |||||||||
(in thousands) | |||||||||||
Product technologies | $ | 182,971 | $ | (75,412 | ) | $ | 107,559 | ||||
Customer relationships | 60,166 | (25,950 | ) | 34,216 | |||||||
Trademarks | 9,300 | (6,404 | ) | 2,896 | |||||||
Licenses | 5,752 | (5,036 | ) | 716 | |||||||
$ | 258,189 | $ | (112,802 | ) | $ | 145,387 |
May 31, 2018 | |||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | |||||||||
(in thousands) | |||||||||||
Product technologies | $ | 141,675 | $ | (64,153 | ) | $ | 77,522 | ||||
Customer relationships | 55,028 | (22,794 | ) | 32,234 | |||||||
Trademarks | 6,200 | (5,642 | ) | 558 | |||||||
Licenses | 5,752 | (4,357 | ) | 1,395 | |||||||
Distributor relationships | 1,250 | (412 | ) | 838 | |||||||
$ | 209,905 | $ | (97,358 | ) | $ | 112,547 |
(in thousands) | |||
2020 | $ | 15,248 | |
2021 | 14,021 | ||
2022 | 13,405 | ||
2023 | 13,368 | ||
2024 | 11,812 | ||
2025 and thereafter | 77,533 | ||
$ | 145,387 |
Year ended May 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Loss from continuing operations before tax expense: | |||||||||||
U.S. | $ | (15,593 | ) | $ | (18,454 | ) | $ | (15,317 | ) | ||
Non-U.S. | 891 | 1,191 | 1,022 | ||||||||
$ | (14,702 | ) | $ | (17,263 | ) | $ | (14,295 | ) |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Current | |||||||||||
Federal | $ | — | $ | (148 | ) | $ | — | ||||
State and local | 128 | 152 | 141 | ||||||||
Non U.S. | 289 | 73 | 270 | ||||||||
417 | 77 | 411 | |||||||||
Deferred | (3,973 | ) | (11,113 | ) | (7,654 | ) | |||||
Income tax benefit | $ | (3,556 | ) | $ | (11,036 | ) | $ | (7,243 | ) |
(in thousands) | May 31, 2019 | May 31, 2018 | |||||
Deferred tax assets | |||||||
Net operating loss carryforward | $ | 18,955 | $ | 33,880 | |||
Stock-based compensation | 3,395 | 2,421 | |||||
Federal and state R&D tax credit carryforward | 4,259 | 3,644 | |||||
Inventories | 971 | 1,550 | |||||
Expenses incurred not currently deductible | 1,337 | 1,714 | |||||
Accrued liabilities | 139 | 277 | |||||
Gross deferred tax asset | 29,056 | 43,486 | |||||
Deferred tax liabilities | |||||||
Excess tax over book depreciation and amortization | 31,878 | 34,044 | |||||
31,878 | 34,044 | ||||||
Valuation Allowance | (11,688 | ) | (26,607 | ) | |||
Net deferred tax liability (1) | $ | (14,510 | ) | $ | (17,165 | ) |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Income tax benefit at federal statutory tax rate of 21.0%, 28.6% and 35.0%, respectively | $ | (3,087 | ) | $ | (4,941 | ) | $ | (5,003 | ) | ||
Effect of graduated tax rates | — | — | 143 | ||||||||
State income taxes, net of Federal tax benefit | (177 | ) | 120 | (505 | ) | ||||||
Impact of Non-U.S. operations | 76 | (288 | ) | 403 | |||||||
Research and development tax credit | (936 | ) | (951 | ) | (403 | ) | |||||
Impact of tax reform | — | 12,860 | — | ||||||||
Meals and entertainment | 190 | 242 | 266 | ||||||||
Non-deductible interest on contingent payments | — | — | 174 | ||||||||
Non-taxable gain on revaluation of contingent consideration liability | — | — | (5,576 | ) | |||||||
Change in valuation allowance | 175 | (18,526 | ) | 2,749 | |||||||
Effect of elimination of stock compensation APIC pool | — | — | 1,380 | ||||||||
IPR&D intangible write-off | — | — | (1,224 | ) | |||||||
Other | 203 | 448 | 353 | ||||||||
Income tax benefit | $ | (3,556 | ) | $ | (11,036 | ) | $ | (7,243 | ) |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Unrecognized tax benefits balance at June 1 | $ | 464 | $ | 899 | $ | 899 | |||||
Decrease in gross amounts of tax positions related to prior years due to U.S. tax reform | — | (287 | ) | — | |||||||
Decrease due to lapse in statute of limitations | — | (148 | ) | — | |||||||
Unrecognized tax benefits balance at May 31 | $ | 464 | $ | 464 | $ | 899 |
May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Raw materials | $ | 16,045 | $ | 15,247 | |||
Work in process | 6,786 | 6,656 | |||||
Finished goods | 17,240 | 17,371 | |||||
Total | $ | 40,071 | $ | 39,274 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sales securities: | |||||||||||||||
New York State government agency obligations | $ | 1,350 | $ | — | $ | (33 | ) | $ | 1,317 | ||||||
$ | 1,350 | $ | — | $ | (33 | ) | $ | 1,317 |
(in thousands) | |||
2020 | 7,500 | ||
2021 | 11,250 | ||
2022 | 68,750 | ||
Total term loan | 87,500 | ||
Revolving facility | 45,000 | ||
Total debt | 132,500 | ||
Less: Unamortized debt issuance costs | (593 | ) | |
Total | 131,907 | ||
Less: Current portion of long-term debt | (7,500 | ) | |
Total long-term debt, net of current portion | $ | 124,407 |
Recently Issued Accounting Pronouncements - Adopted | |||
Standard | Description | Date Adopted | Effect on the Consolidated Financial Statements |
ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) | This ASU provides a single, comprehensive accounting model for revenues arising from contracts with customers that supersedes most of the existing revenue recognition guidance, including industry-specific guidance. Under this model, revenue is recognized at an amount that an entity expects to be entitled to upon transferring control of goods or services to a customer, as opposed to when risks and rewards transfer to a customer under existing revenue recognition guidance. | June 1, 2018 | See Note 4, \"Revenue from Contracts with Customers\" for the required disclosures related to the impact of adopting this standard. The adoption of this standard did not have a material impact on the Company’s consolidated balance sheets and statements of operations. |
ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15) | This ASU identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. | June 1, 2018 | This adoption did not have an impact on the Company's financial statements. |
Recently Issued Accounting Pronouncements - Not Yet Applicable or Adopted | |||
Standard | Description | Effective Date | Effect on the Consolidated Financial Statements |
ASU 2016-02, Leases (Topic 842) | This ASU increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. | June 1, 2019 | On June 1, 2019, the Company adopted ASC 842 and elected the optional transition method to apply the standard as of the effective date and therefore, the Company will not apply the standard to the comparative periods presented in the consolidated financial statements. The Company has elected the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. Further, the Company has elected a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e., leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. While the Company is finalizing its evaluation of the impact of the adoption of ASC 842 on its consolidated financial statements and related disclosures, the Company expects to recognize on its balance sheet right-of-use assets ranging from $4.5 to $5.5 million, in aggregate, and lease liabilities ranging from $5.0 to $6.0 million, in aggregate, which are primarily related to the Company’s facilities operating leases (Note 17). The difference between the right-of-use assets and lease liabilities is primarily attributed to the elimination of deferred rent. The adoption of ASC 842 is also expected to impact the Company’s consolidated financial statement disclosures. The Company does not anticipate the adoption of ASC 842 will have a material impact to the Consolidated Statements of Operations and Statements of Cashflows or to require a cumulative-effect adjustment to the opening balance of retained earnings. |
Estimated useful lives | ||
Building and building improvements | 39 years | |
Machinery and equipment | 5 to 8 years | |
Computer software and equipment | 3 to 5 years |
Recently Issued Accounting Pronouncements - Adopted | |||
Standard | Description | Date Adopted | Effect on the Consolidated Financial Statements |
ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) | This ASU provides a single, comprehensive accounting model for revenues arising from contracts with customers that supersedes most of the existing revenue recognition guidance, including industry-specific guidance. Under this model, revenue is recognized at an amount that an entity expects to be entitled to upon transferring control of goods or services to a customer, as opposed to when risks and rewards transfer to a customer under existing revenue recognition guidance. | June 1, 2018 | See Note 4, \"Revenue from Contracts with Customers\" for the required disclosures related to the impact of adopting this standard. The adoption of this standard did not have a material impact on the Company’s consolidated balance sheets and statements of operations. |
ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15) | This ASU identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. | June 1, 2018 | This adoption did not have an impact on the Company's financial statements. |
Recently Issued Accounting Pronouncements - Not Yet Applicable or Adopted | |||
Standard | Description | Effective Date | Effect on the Consolidated Financial Statements |
ASU 2016-02, Leases (Topic 842) | This ASU increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. | June 1, 2019 | On June 1, 2019, the Company adopted ASC 842 and elected the optional transition method to apply the standard as of the effective date and therefore, the Company will not apply the standard to the comparative periods presented in the consolidated financial statements. The Company has elected the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. Further, the Company has elected a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e., leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. While the Company is finalizing its evaluation of the impact of the adoption of ASC 842 on its consolidated financial statements and related disclosures, the Company expects to recognize on its balance sheet right-of-use assets ranging from $4.5 to $5.5 million, in aggregate, and lease liabilities ranging from $5.0 to $6.0 million, in aggregate, which are primarily related to the Company’s facilities operating leases (Note 17). The difference between the right-of-use assets and lease liabilities is primarily attributed to the elimination of deferred rent. The adoption of ASC 842 is also expected to impact the Company’s consolidated financial statement disclosures. The Company does not anticipate the adoption of ASC 842 will have a material impact to the Consolidated Statements of Operations and Statements of Cashflows or to require a cumulative-effect adjustment to the opening balance of retained earnings. |
(in thousands) | Total | 2020 | 2021 | 2022 | 2023 | 2024 and thereafter | |||||||||||||||||
Purchase obligations (1) | $ | 407 | $ | 407 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Royalties | 55,300 | 3,800 | 3,800 | 3,800 | 3,800 | 40,100 | |||||||||||||||||
$ | 55,707 | $ | 4,207 | $ | 3,800 | $ | 3,800 | $ | 3,800 | $ | 40,100 |
May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Building and building improvements | $ | 24,535 | $ | 24,509 | |||
Machinery and equipment | 14,029 | 13,308 | |||||
Computer software and equipment | 24,980 | 24,459 | |||||
Construction in progress | 1,239 | 1,666 | |||||
64,783 | 63,942 | ||||||
Less accumulated depreciation and amortization | (41,608 | ) | (39,290 | ) | |||
23,175 | 24,652 | ||||||
Land and land improvements | 1,083 | 1,063 | |||||
$ | 24,258 | $ | 25,715 |
Estimated useful lives | ||
Building and building improvements | 39 years | |
Machinery and equipment | 5 to 8 years | |
Computer software and equipment | 3 to 5 years |
Estimated useful lives | ||
Building and building improvements | 39 years | |
Machinery and equipment | 5 to 8 years | |
Computer software and equipment | 3 to 5 years |
May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Building and building improvements | $ | 24,535 | $ | 24,509 | |||
Machinery and equipment | 14,029 | 13,308 | |||||
Computer software and equipment | 24,980 | 24,459 | |||||
Construction in progress | 1,239 | 1,666 | |||||
64,783 | 63,942 | ||||||
Less accumulated depreciation and amortization | (41,608 | ) | (39,290 | ) | |||
23,175 | 24,652 | ||||||
Land and land improvements | 1,083 | 1,063 | |||||
$ | 24,258 | $ | 25,715 |
2019 | |||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net sales | $ | 63,943 | $ | 69,985 | $ | 65,524 | $ | 71,182 | |||||||
Gross profit | 35,953 | 40,552 | 38,163 | 41,332 | |||||||||||
Net income (loss) from continuing operations | (5,704 | ) | (3,587 | ) | (4,609 | ) | 2,753 | ||||||||
Net income from discontinued operations | 5,235 | 5,727 | 5,405 | 56,120 | |||||||||||
Net income (loss) (1) | $ | (469 | ) | $ | 2,140 | $ | 796 | $ | 58,873 | ||||||
Loss per share from continuing operations | |||||||||||||||
Basic | $ | (0.15 | ) | $ | (0.10 | ) | $ | (0.12 | ) | $ | 0.07 | ||||
Diluted | $ | (0.15 | ) | $ | (0.10 | ) | $ | (0.12 | ) | $ | 0.07 | ||||
Earnings per share from discontinued operations | |||||||||||||||
Basic | $ | 0.14 | $ | 0.15 | $ | 0.14 | $ | 1.49 | |||||||
Diluted | $ | 0.14 | $ | 0.15 | $ | 0.14 | $ | 1.47 | |||||||
Earnings per share net income | |||||||||||||||
Basic | $ | (0.01 | ) | $ | 0.06 | $ | 0.02 | $ | 1.57 | ||||||
Diluted | $ | (0.01 | ) | $ | 0.06 | $ | 0.02 | $ | 1.54 |
2018 | |||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net sales | $ | 64,909 | $ | 66,617 | $ | 63,936 | $ | 66,193 | |||||||
Gross profit | 33,042 | 34,699 | 37,496 | 38,619 | |||||||||||
Net income (loss) from continuing operations | (5,008 | ) | (4,413 | ) | 9,903 | (6,709 | ) | ||||||||
Net income from discontinued operations | 4,973 | 4,662 | 4,116 | 8,811 | |||||||||||
Net income (loss) (2) | $ | (35 | ) | $ | 249 | $ | 14,019 | $ | 2,102 | ||||||
Loss per share from continuing operations | |||||||||||||||
Basic | $ | (0.14 | ) | $ | (0.12 | ) | $ | 0.27 | $ | (0.18 | ) | ||||
Diluted | $ | (0.14 | ) | $ | (0.12 | ) | $ | 0.26 | $ | (0.18 | ) | ||||
Earnings per share from discontinued operations | |||||||||||||||
Basic | $ | 0.13 | $ | 0.13 | $ | 0.11 | $ | 0.24 | |||||||
Diluted | $ | 0.13 | $ | 0.13 | $ | 0.11 | $ | 0.24 | |||||||
Earnings per share net income | |||||||||||||||
Basic | $ | 0.00 | $ | 0.01 | $ | 0.38 | $ | 0.06 | |||||||
Diluted | $ | 0.00 | $ | 0.01 | $ | 0.37 | $ | 0.06 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Legal (1) | $ | 7,802 | $ | 8,407 | $ | 19,480 | |||||
Mergers and acquisitions (2) | 4,030 | 1,660 | — | ||||||||
Intangible and other asset impairment | 1,704 | — | 5,604 | ||||||||
Restructuring | 289 | 4,674 | 1,348 | ||||||||
Other | 1,302 | 691 | 1,078 | ||||||||
Total | $ | 15,127 | $ | 15,432 | $ | 27,510 |
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 | ||||||||||||
Charges | 1,440 | 2,892 | 68 | 200 | 74 | 4,674 | ||||||||||||||||||
Non-cash adjustments | — | (276 | ) | — | — | — | (276 | ) | ||||||||||||||||
Cash payments | (1,453 | ) | (2,706 | ) | (56 | ) | — | (74 | ) | (4,289 | ) | |||||||||||||
Balance at May 31, 2018 | $ | 838 | $ | 21 | $ | 12 | $ | 200 | $ | — | $ | 1,071 | ||||||||||||
Charges | — | 244 | 44 | — | — | 288 | ||||||||||||||||||
Non-cash adjustments | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
Cash payments | (838 | ) | (265 | ) | (44 | ) | (191 | ) | — | (1,338 | ) | |||||||||||||
Balance at May 31, 2019 | $ | — | $ | — | $ | 12 | $ | — | $ | — | $ | 12 |
Year ended May 31, 2019 | |||||||||||
(in thousands) | United States | International | Total | ||||||||
Net sales | |||||||||||
Vascular Interventions & Therapies | $ | 106,767 | $ | 13,134 | $ | 119,901 | |||||
Vascular Access | 79,611 | 15,119 | $ | 94,730 | |||||||
Oncology | 30,579 | 25,424 | $ | 56,003 | |||||||
Total | $ | 216,957 | $ | 53,677 | $ | 270,634 |
May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Receivables | $ | 43,577 | $ | 39,401 | |||
Contract assets | $ | — | $ | — | |||
Contract liabilities | $ | 681 | $ | 1,203 |
May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Payroll and related expenses | $ | 14,987 | $ | 10,235 | |||
Royalties | 2,088 | 1,537 | |||||
Accrued severance | 504 | 1,940 | |||||
Sales and franchise taxes | 807 | 683 | |||||
Outside services | 3,514 | 2,396 | |||||
Litigation matters (Note 17) | 2,700 | 12,500 | |||||
Indemnification holdback | 4,807 | — | |||||
Other | 8,931 | 5,135 | |||||
Total | $ | 38,338 | $ | 34,426 |
(in thousands) | Foreign currency translation gain (loss) | Unrealized gain (loss) on marketable securities | Total | |||||||||
Balance at May 31, 2017 | $ | (1,305 | ) | $ | (19 | ) | $ | (1,324 | ) | |||
Other comprehensive income before reclassifications, net of tax | 270 | 102 | 372 | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | |||||||||
Net other comprehensive income | $ | 270 | $ | 102 | $ | 372 | ||||||
Balance at May 31, 2018 | $ | (1,035 | ) | $ | 83 | $ | (952 | ) | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (317 | ) | 33 | (284 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | (116 | ) | (116 | ) | |||||||
Net other comprehensive loss | $ | (317 | ) | $ | (83 | ) | $ | (400 | ) | |||
Balance at May 31, 2019 | $ | (1,352 | ) | $ | — | $ | (1,352 | ) |
Preliminary allocation | Adjustments (1) | Revised allocation | ||||||||||
(in thousands) | ||||||||||||
Accounts receivable | $ | 900 | $ | — | $ | 900 | ||||||
Inventory | 732 | — | 732 | |||||||||
Prepaid and other current assets | 98 | — | 98 | |||||||||
Property, plant and equipment | 133 | — | 133 | |||||||||
Intangible assets: | ||||||||||||
RadiaDyne trademark | 400 | — | 400 | |||||||||
OARtrac trademark | 200 | — | 200 | |||||||||
RadiaDyne legacy product technology | 1,500 | — | 1,500 | |||||||||
OARtrac product technology | 16,300 | 2,600 | 18,900 | |||||||||
RadiaDyne customer relationships | 3,700 | 900 | 4,600 | |||||||||
Goodwill | 51,482 | (3,500 | ) | 47,982 | ||||||||
Total assets acquired | $ | 75,445 | $ | — | $ | 75,445 | ||||||
Liabilities assumed | ||||||||||||
Accounts payable | $ | 352 | $ | — | $ | 352 | ||||||
Accrued expenses | 106 | — | 106 | |||||||||
Total liabilities assumed | $ | 458 | $ | — | $ | 458 | ||||||
Net assets acquired | $ | 74,987 | $ | — | $ | 74,987 |
Preliminary allocation | Adjustments (1) | Revised allocation | ||||||||||
(in thousands) | ||||||||||||
Inventory | $ | 50 | $ | — | $ | 50 | ||||||
Property, plant and equipment | 10 | — | 10 | |||||||||
Intangible assets: | ||||||||||||
BioSentry trademark | 1,700 | 800 | 2,500 | |||||||||
BioSentry product technology | 13,800 | 7,100 | 20,900 | |||||||||
Customer relationships | 2,500 | 100 | 2,600 | |||||||||
Goodwill | 21,740 | (8,000 | ) | 13,740 | ||||||||
Net assets acquired | $ | 39,800 | $ | — | $ | 39,800 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Current | |||||||||||
Federal | $ | — | $ | (148 | ) | $ | — | ||||
State and local | 128 | 152 | 141 | ||||||||
Non U.S. | 289 | 73 | 270 | ||||||||
417 | 77 | 411 | |||||||||
Deferred | (3,973 | ) | (11,113 | ) | (7,654 | ) | |||||
Income tax benefit | $ | (3,556 | ) | $ | (11,036 | ) | $ | (7,243 | ) |
(in thousands) | May 31, 2019 | May 31, 2018 | |||||
Deferred tax assets | |||||||
Net operating loss carryforward | $ | 18,955 | $ | 33,880 | |||
Stock-based compensation | 3,395 | 2,421 | |||||
Federal and state R&D tax credit carryforward | 4,259 | 3,644 | |||||
Inventories | 971 | 1,550 | |||||
Expenses incurred not currently deductible | 1,337 | 1,714 | |||||
Accrued liabilities | 139 | 277 | |||||
Gross deferred tax asset | 29,056 | 43,486 | |||||
Deferred tax liabilities | |||||||
Excess tax over book depreciation and amortization | 31,878 | 34,044 | |||||
31,878 | 34,044 | ||||||
Valuation Allowance | (11,688 | ) | (26,607 | ) | |||
Net deferred tax liability (1) | $ | (14,510 | ) | $ | (17,165 | ) |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Net sales | $ | 88,850 | $ | 82,630 | $ | 79,855 | |||||
Cost of sales (exclusive of amortization) | 52,978 | 49,611 | 47,636 | ||||||||
Gross profit | 35,872 | 33,019 | 32,219 | ||||||||
Operating expenses | |||||||||||
Research and development | 1,177 | 1,121 | 1,121 | ||||||||
Sales and marketing | 4,129 | 4,167 | 3,954 | ||||||||
General and administrative | 271 | 274 | 273 | ||||||||
Amortization of intangibles | 2,716 | 2,729 | 2,729 | ||||||||
Total operating expenses | 8,293 | 8,291 | 8,077 | ||||||||
Operating income | 27,579 | 24,728 | 24,142 | ||||||||
Gain on divestiture | 46,592 | — | — | ||||||||
Income from discontinued operations before income taxes | 74,171 | 24,728 | 24,142 | ||||||||
Income tax expense | (1,685 | ) | (2,166 | ) | (12,082 | ) | |||||
Income from discontinued operations | $ | 72,486 | $ | 22,562 | $ | 12,060 |
(in thousands) | |||
Proceeds received from Divestiture | $ | 169,242 | |
Working capital adjustment | (612 | ) | |
Fluid Management assets: | |||
Inventories | 11,029 | ||
Property, plant and equipment, net | 16,624 | ||
Intangible assets, net | 15,047 | ||
Goodwill | 75,308 | ||
Total Fluid Management assets | 118,008 | ||
Transaction costs for Divestiture (1) | 4,030 | ||
Gain on sale of the Fluid Management business before income taxes | $ | 46,592 |
(in thousands) | May 31, 2018 | ||
Inventories | $ | 9,642 | |
Total current assets held for sale | 9,642 | ||
Property, plant and equipment, net | 16,746 | ||
Intangible assets, net | 17,763 | ||
Goodwill | 75,308 | ||
Total non-current assets held for sale | 109,817 | ||
Total assets held for sale | $ | 119,459 |
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 2,245 | $ | 5,581 | $ | 3,968 | |||||
Net cash provided by investing activities | 982 | 1,146 | 1,361 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Income tax benefit at federal statutory tax rate of 21.0%, 28.6% and 35.0%, respectively | $ | (3,087 | ) | $ | (4,941 | ) | $ | (5,003 | ) | ||
Effect of graduated tax rates | — | — | 143 | ||||||||
State income taxes, net of Federal tax benefit | (177 | ) | 120 | (505 | ) | ||||||
Impact of Non-U.S. operations | 76 | (288 | ) | 403 | |||||||
Research and development tax credit | (936 | ) | (951 | ) | (403 | ) | |||||
Impact of tax reform | — | 12,860 | — | ||||||||
Meals and entertainment | 190 | 242 | 266 | ||||||||
Non-deductible interest on contingent payments | — | — | 174 | ||||||||
Non-taxable gain on revaluation of contingent consideration liability | — | — | (5,576 | ) | |||||||
Change in valuation allowance | 175 | (18,526 | ) | 2,749 | |||||||
Effect of elimination of stock compensation APIC pool | — | — | 1,380 | ||||||||
IPR&D intangible write-off | — | — | (1,224 | ) | |||||||
Other | 203 | 448 | 353 | ||||||||
Income tax benefit | $ | (3,556 | ) | $ | (11,036 | ) | $ | (7,243 | ) |
Year ended May 31, | ||||||||||||
(in thousands) | 2019 | 2018 | 2017 | |||||||||
Cost of sales | $ | 461 | $ | 119 | $ | 299 | ||||||
Research and development | 724 | 554 | 314 | |||||||||
Sales and marketing | 1,952 | 1,778 | 1,762 | |||||||||
General and administrative | 6,112 | 5,461 | 4,026 | |||||||||
Acquisition, restructuring and other items, net | — | — | (218 | ) | ||||||||
$ | 9,249 | $ | 7,912 | $ | 6,183 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2019 | |||||||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn outs | $ | — | $ | — | $ | 13,486 | $ | 13,486 | |||||||
Total Financial Liabilities | $ | — | $ | — | $ | 13,486 | $ | 13,486 |
Fair Value Measurements using inputs considered as: | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value at May 31, 2018 | |||||||||||
Financial Assets | |||||||||||||||
Short-term investments (1) | $ | 2,100 | $ | — | $ | — | $ | 2,100 | |||||||
Marketable Securities | — | — | 1,317 | 1,317 | |||||||||||
Total Financial Assets | $ | 2,100 | $ | — | $ | 1,317 | $ | 3,417 | |||||||
Financial Liabilities | |||||||||||||||
Contingent liability for acquisition earn out | $ | — | $ | — | $ | 3,261 | $ | 3,261 | |||||||
Total Financial Liabilities | $ | — | $ | — | $ | 3,261 | $ | 3,261 |
(in thousands) | |||
Goodwill balance at May 31, 2018, before adjustment to conform goodwill to current presentation | $ | 361,252 | |
Goodwill associated with the Fluid Management divestiture (Note 3) | (75,308 | ) | |
Goodwill balance at May 31, 2018 | 285,944 | ||
Additions for BioSentry acquisition (Note 2) | 13,740 | ||
Additions for RadiaDyne acquisition (Note 2) | 47,982 | ||
Goodwill balance at May 31, 2019 | $ | 347,666 |
Year ended May 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Loss from continuing operations before tax expense: | |||||||||||
U.S. | $ | (15,593 | ) | $ | (18,454 | ) | $ | (15,317 | ) | ||
Non-U.S. | 891 | 1,191 | 1,022 | ||||||||
$ | (14,702 | ) | $ | (17,263 | ) | $ | (14,295 | ) |
May 31, 2019 | May 31, 2018 | ||||||
(in thousands) | |||||||
Raw materials | $ | 16,045 | $ | 15,247 | |||
Work in process | 6,786 | 6,656 | |||||
Finished goods | 17,240 | 17,371 | |||||
Total | $ | 40,071 | $ | 39,274 |
(in thousands) | |||
2020 | 7,500 | ||
2021 | 11,250 | ||
2022 | 68,750 | ||
Total term loan | 87,500 | ||
Revolving facility | 45,000 | ||
Total debt | 132,500 | ||
Less: Unamortized debt issuance costs | (593 | ) | |
Total | 131,907 | ||
Less: Current portion of long-term debt | (7,500 | ) | |
Total long-term debt, net of current portion | $ | 124,407 |
Recently Issued Accounting Pronouncements - Adopted | |||
Standard | Description | Date Adopted | Effect on the Consolidated Financial Statements |
ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) | This ASU provides a single, comprehensive accounting model for revenues arising from contracts with customers that supersedes most of the existing revenue recognition guidance, including industry-specific guidance. Under this model, revenue is recognized at an amount that an entity expects to be entitled to upon transferring control of goods or services to a customer, as opposed to when risks and rewards transfer to a customer under existing revenue recognition guidance. | June 1, 2018 | See Note 4, \"Revenue from Contracts with Customers\" for the required disclosures related to the impact of adopting this standard. The adoption of this standard did not have a material impact on the Company’s consolidated balance sheets and statements of operations. |
ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15) | This ASU identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. | June 1, 2018 | This adoption did not have an impact on the Company's financial statements. |
Recently Issued Accounting Pronouncements - Not Yet Applicable or Adopted | |||
Standard | Description | Effective Date | Effect on the Consolidated Financial Statements |
ASU 2016-02, Leases (Topic 842) | This ASU increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. | June 1, 2019 | On June 1, 2019, the Company adopted ASC 842 and elected the optional transition method to apply the standard as of the effective date and therefore, the Company will not apply the standard to the comparative periods presented in the consolidated financial statements. The Company has elected the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. Further, the Company has elected a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e., leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. While the Company is finalizing its evaluation of the impact of the adoption of ASC 842 on its consolidated financial statements and related disclosures, the Company expects to recognize on its balance sheet right-of-use assets ranging from $4.5 to $5.5 million, in aggregate, and lease liabilities ranging from $5.0 to $6.0 million, in aggregate, which are primarily related to the Company’s facilities operating leases (Note 17). The difference between the right-of-use assets and lease liabilities is primarily attributed to the elimination of deferred rent. The adoption of ASC 842 is also expected to impact the Company’s consolidated financial statement disclosures. The Company does not anticipate the adoption of ASC 842 will have a material impact to the Consolidated Statements of Operations and Statements of Cashflows or to require a cumulative-effect adjustment to the opening balance of retained earnings. |
Restricted Stock Units | Weighted Average Grant-Date Fair Value | |||||
Non-vested at beginning of year, June 1, 2018 | 474,502 | $ | 16.23 | |||
Granted | 244,405 | $ | 20.87 | |||
Vested | (210,865 | ) | $ | 21.69 | ||
Canceled | (77,106 | ) | $ | 17.98 | ||
Non-vested at end of year, May 31, 2019 | 430,936 | $ | 18.60 |
Performance Unit Awards | Weighted Average Grant-Date Fair Value | |||||
Non-vested at beginning of year, June 1, 2018 | 451,856 | $ | 19.75 | |||
Granted | 126,356 | $ | 28.62 | |||
Vested | (7,803 | ) | $ | 20.50 | ||
Canceled | (31,804 | ) | $ | 24.03 | ||
Non-vested at end of year, May 31, 2019 | 538,605 | $ | 21.55 |
2019 | |||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net sales | $ | 63,943 | $ | 69,985 | $ | 65,524 | $ | 71,182 | |||||||
Gross profit | 35,953 | 40,552 | 38,163 | 41,332 | |||||||||||
Net income (loss) from continuing operations | (5,704 | ) | (3,587 | ) | (4,609 | ) | 2,753 | ||||||||
Net income from discontinued operations | 5,235 | 5,727 | 5,405 | 56,120 | |||||||||||
Net income (loss) (1) | $ | (469 | ) | $ | 2,140 | $ | 796 | $ | 58,873 | ||||||
Loss per share from continuing operations | |||||||||||||||
Basic | $ | (0.15 | ) | $ | (0.10 | ) | $ | (0.12 | ) | $ | 0.07 | ||||
Diluted | $ | (0.15 | ) | $ | (0.10 | ) | $ | (0.12 | ) | $ | 0.07 | ||||
Earnings per share from discontinued operations | |||||||||||||||
Basic | $ | 0.14 | $ | 0.15 | $ | 0.14 | $ | 1.49 | |||||||
Diluted | $ | 0.14 | $ | 0.15 | $ | 0.14 | $ | 1.47 | |||||||
Earnings per share net income | |||||||||||||||
Basic | $ | (0.01 | ) | $ | 0.06 | $ | 0.02 | $ | 1.57 | ||||||
Diluted | $ | (0.01 | ) | $ | 0.06 | $ | 0.02 | $ | 1.54 |
2018 | |||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net sales | $ | 64,909 | $ | 66,617 | $ | 63,936 | $ | 66,193 | |||||||
Gross profit | 33,042 | 34,699 | 37,496 | 38,619 | |||||||||||
Net income (loss) from continuing operations | (5,008 | ) | (4,413 | ) | 9,903 | (6,709 | ) | ||||||||
Net income from discontinued operations | 4,973 | 4,662 | 4,116 | 8,811 | |||||||||||
Net income (loss) (2) | $ | (35 | ) | $ | 249 | $ | 14,019 | $ | 2,102 | ||||||
Loss per share from continuing operations | |||||||||||||||
Basic | $ | (0.14 | ) | $ | (0.12 | ) | $ | 0.27 | $ | (0.18 | ) | ||||
Diluted | $ | (0.14 | ) | $ | (0.12 | ) | $ | 0.26 | $ | (0.18 | ) | ||||
Earnings per share from discontinued operations | |||||||||||||||
Basic | $ | 0.13 | $ | 0.13 | $ | 0.11 | $ | 0.24 | |||||||
Diluted | $ | 0.13 | $ | 0.13 | $ | 0.11 | $ | 0.24 | |||||||
Earnings per share net income | |||||||||||||||
Basic | $ | 0.00 | $ | 0.01 | $ | 0.38 | $ | 0.06 | |||||||
Diluted | $ | 0.00 | $ | 0.01 | $ | 0.37 | $ | 0.06 |
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 | ||||||||||||
Charges | 1,440 | 2,892 | 68 | 200 | 74 | 4,674 | ||||||||||||||||||
Non-cash adjustments | — | (276 | ) | — | — | — | (276 | ) | ||||||||||||||||
Cash payments | (1,453 | ) | (2,706 | ) | (56 | ) | — | (74 | ) | (4,289 | ) | |||||||||||||
Balance at May 31, 2018 | $ | 838 | $ | 21 | $ | 12 | $ | 200 | $ | — | $ | 1,071 | ||||||||||||
Charges | — | 244 | 44 | — | — | 288 | ||||||||||||||||||
Non-cash adjustments | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
Cash payments | (838 | ) | (265 | ) | (44 | ) | (191 | ) | — | (1,338 | ) | |||||||||||||
Balance at May 31, 2019 | $ | — | $ | — | $ | 12 | $ | — | $ | — | $ | 12 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Legal (1) | $ | 7,802 | $ | 8,407 | $ | 19,480 | |||||
Mergers and acquisitions (2) | 4,030 | 1,660 | — | ||||||||
Intangible and other asset impairment | 1,704 | — | 5,604 | ||||||||
Restructuring | 289 | 4,674 | 1,348 | ||||||||
Other | 1,302 | 691 | 1,078 | ||||||||
Total | $ | 15,127 | $ | 15,432 | $ | 27,510 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Net sales by Geography | |||||||||||
United States | $ | 216,957 | $ | 213,727 | $ | 223,816 | |||||
International | 53,677 | 47,928 | 45,972 | ||||||||
Total | $ | 270,634 | $ | 261,655 | $ | 269,788 |
Shares | Weighted- average exercise price | Weighted average remaining contractual life | Aggregate intrinsic value (in thousands) | |||||||||
Outstanding at beginning of year - June 1, 2018 | 1,696,413 | $ | 15.42 | |||||||||
Granted | 391,264 | $ | 20.71 | |||||||||
Exercised | (184,168 | ) | $ | 14.32 | ||||||||
Forfeited | (143,196 | ) | $ | 17.52 | ||||||||
Expired | — | $ | — | |||||||||
Outstanding at end of year - May 31, 2019 | 1,760,313 | $ | 16.54 | 5.76 | $ | 4,672 | ||||||
Options exercisable at year-end | 831,924 | $ | 15.09 | 3.90 | $ | 3,092 | ||||||
Options expected to vest in future periods | 928,389 | $ | 17.83 | 7.43 | $ | 1,579 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Unrecognized tax benefits balance at June 1 | $ | 464 | $ | 899 | $ | 899 | |||||
Decrease in gross amounts of tax positions related to prior years due to U.S. tax reform | — | (287 | ) | — | |||||||
Decrease due to lapse in statute of limitations | — | (148 | ) | — | |||||||
Unrecognized tax benefits balance at May 31 | $ | 464 | $ | 464 | $ | 899 |
Year ended May 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Basic | 37,484,573 | 37,074,797 | 36,616,859 | |||||
Effect of dilutive securities | — | — | — | |||||
Diluted | 37,484,573 | 37,074,797 | 36,616,859 | |||||
Securities excluded as their inclusion would be anti-dilutive | 2,200,318 | 1,077,256 | 1,058,790 |
(in thousands) | |||
2020 | $ | 15,248 | |
2021 | 14,021 | ||
2022 | 13,405 | ||
2023 | 13,368 | ||
2024 | 11,812 | ||
2025 and thereafter | 77,533 | ||
$ | 145,387 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Net sales by Product Category | |||||||||||
Vascular Interventions & Therapies | $ | 119,901 | $ | 119,704 | $ | 128,747 | |||||
Vascular Access | 94,730 | 92,760 | 96,481 | ||||||||
Oncology/Surgery | 56,003 | 49,191 | 44,560 | ||||||||
Total | $ | 270,634 | $ | 261,655 | $ | 269,788 |
Year ended May 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Net sales by Geography | |||||||||||
United States | $ | 216,957 | $ | 213,727 | $ | 223,816 | |||||
International | 53,677 | 47,928 | 45,972 | ||||||||
Total | $ | 270,634 | $ | 261,655 | $ | 269,788 |
Shares | Weighted- average exercise price | Weighted average remaining contractual life | Aggregate intrinsic value (in thousands) | |||||||||
Outstanding at beginning of year - June 1, 2018 | 1,696,413 | $ | 15.42 | |||||||||
Granted | 391,264 | $ | 20.71 | |||||||||
Exercised | (184,168 | ) | $ | 14.32 | ||||||||
Forfeited | (143,196 | ) | $ | 17.52 | ||||||||
Expired | — | $ | — | |||||||||
Outstanding at end of year - May 31, 2019 | 1,760,313 | $ | 16.54 | 5.76 | $ | 4,672 | ||||||
Options exercisable at year-end | 831,924 | $ | 15.09 | 3.90 | $ | 3,092 | ||||||
Options expected to vest in future periods | 928,389 | $ | 17.83 | 7.43 | $ | 1,579 |
Restricted Stock Units | Weighted Average Grant-Date Fair Value | |||||
Non-vested at beginning of year, June 1, 2018 | 474,502 | $ | 16.23 | |||
Granted | 244,405 | $ | 20.87 | |||
Vested | (210,865 | ) | $ | 21.69 | ||
Canceled | (77,106 | ) | $ | 17.98 | ||
Non-vested at end of year, May 31, 2019 | 430,936 | $ | 18.60 |
Performance Unit Awards | Weighted Average Grant-Date Fair Value | |||||
Non-vested at beginning of year, June 1, 2018 | 451,856 | $ | 19.75 | |||
Granted | 126,356 | $ | 28.62 | |||
Vested | (7,803 | ) | $ | 20.50 | ||
Canceled | (31,804 | ) | $ | 24.03 | ||
Non-vested at end of year, May 31, 2019 | 538,605 | $ | 21.55 |
Year ended May 31, | ||||||||||||
(in thousands) | 2019 | 2018 | 2017 | |||||||||
Cost of sales | $ | 461 | $ | 119 | $ | 299 | ||||||
Research and development | 724 | 554 | 314 | |||||||||
Sales and marketing | 1,952 | 1,778 | 1,762 | |||||||||
General and administrative | 6,112 | 5,461 | 4,026 | |||||||||
Acquisition, restructuring and other items, net | — | — | (218 | ) | ||||||||
$ | 9,249 | $ | 7,912 | $ | 6,183 |