Fiscal 2019 First Quarter Highlights
- Net sales of $85.3 million, flat
versus prior year
- Gross margin expanded 380 basis
points year over year to 52.1%
- GAAP EPS of $(0.01) per share;
adjusted EPS of $0.16 per share
- Cash used in operations of $8.9
million; capital expenditures of $0.7 million
- Announced two acquisitions as part
of the Company’s strategic focus on building a continuum of care
within the oncology space;
- BioSentry Tract Sealant System
technology from Surgical Specialties, LLC
- Subsequent to
quarter end, RadiaDyne and its proprietary OARtrac®
radiation dose monitoring platform
AngioDynamics, Inc. (NASDAQ:ANGO), a leading provider
of innovative, minimally invasive medical devices for vascular
access, peripheral vascular disease, and oncology, today announced
financial results for the first quarter of fiscal year
2019, which ended August 31, 2018.
“Our operating and financial accomplishments during the first
quarter reflect our ongoing commitment to building a more cohesive,
patient-focused product portfolio. As evidenced by our two recent
acquisitions, we are making progress on our portfolio optimization
efforts with a focus on the continuum of care within oncology, as
well as on disruptive and differentiated technologies,” commented
Jim Clemmer, President and Chief Executive Officer of
AngioDynamics, Inc. “Our first quarter results give us
continued confidence in meeting our financial goals for fiscal
2019.”
First Quarter 2019 Financial Results
Net sales for the first quarter of fiscal 2019 were $85.3
million, compared to $85.4 million a year ago. During the quarter,
growth in the Company’s Vascular Access business was offset by
declines in its Oncology business, while Vascular Interventions and
Therapies (VIT) sales were flat.
Currency did not have a significant impact on the Company’s
sales in the quarter.
- Oncology net sales were $11.6 million,
a decrease of 6.1% from $12.3 million a year ago, as NanoKnife
disposable growth was more than offset by decreases in sales of
Radiofrequency Ablation and timing effects of Microwave
products. The comparison of year-over-year results within the
Company’s Oncology business was negatively impacted by the timing
of the prior-year Acculis Microwave abalation system market
withdrawal. Excluding the impact of this transition from the
Company’s Acculis Microwave product to its Solero Microwave
product, the Oncology business grew 7.5% year over year.
- VIT net sales in the first quarter of
fiscal 2019 were $50.0 million, compared to $49.9 million a year
ago, as growth in Fluid Management, Angiographic Catheters, and
AngioVac was offset by declines in the Venous Insufficiency
business.
- Vascular Access net sales were $23.8
million, an increase of 2.4% from $23.2 million a year ago, as
growth in Ports, Dialysis, and Midline
products was partially offset by a decline in sales of
PICCs.
U.S. net sales in the first quarter of fiscal 2019 were $67.7
million, a decrease of 1.8% from $68.9 million a year ago, and
International net sales were $17.7 million, an increase of 7.1%
from $16.5 million a year ago.
Gross margin for the first quarter of fiscal 2019 expanded 380
basis points to 52.1% from 48.3% a year ago, largely as a result of
ongoing operational improvements, the recently completed facility
consolidation, and the expiration of a royalty arrangement in the
second quarter of fiscal 2018.
The Company recorded a net loss of $0.5 million, or $(0.01) per
share, in the first quarter of fiscal 2019. This compares to a net
loss of less than $100,000, or $0.00 per share, a year
ago.
Excluding the items shown in the non-GAAP reconciliation table
below, adjusted net income for the first quarter of fiscal 2019 was
$6.2 million, or $0.16 per share, compared to adjusted net income
of $5.0 million, or $0.13 per share, in the first quarter of
fiscal 2018.
Adjusted EBITDAS in the first quarter of fiscal 2019, excluding
the items shown in the reconciliation table below, was $12.6
million, compared to $11.3 million in the first quarter of fiscal
2018.
In the first quarter of fiscal 2019, the Company used $8.9
million in operating cash flow and had capital expenditures of $0.7
million. As of August 31, 2018, the Company had $24.8 million in
cash and cash equivalents and $91.3 million in debt, excluding the
impact of deferred financing costs.
Fiscal Year 2019 Financial Guidance
The Company is updating its previously announced financial
guidance to reflect the BioSentry and RadiaDyne acquisitions, as
well as the payment made to the DOJ for previously disclosed legal
matters. The Company now expects fiscal year 2019 net sales in the
range of $354 to $359 million and free cash flow in the range of
$26 to $31 million. Additionally, the Company continues to
expect its adjusted earnings per share in the range of $0.82 to
$0.86.
Conference Call
The Company’s management will host a conference call today at
8:00 a.m. ET to discuss its first quarter 2019 results.
To participate in the conference call, dial 1-877-407-0784
(domestic) or 1-201-689-8560 (international) and refer to the
passcode 13683219.
This conference call will also be webcast and can be accessed
from the “Investors” section of the AngioDynamics website
at www.angiodynamics.com. The webcast replay of the call will
be available at the same site approximately one hour after the end
of the call.
A recording of the call will also be available from 11:00 a.m.
ET on Thursday, September 27, 2018, until 11:59 p.m. ET on
Thursday, October 4, 2018. To hear this recording, dial
1-844-512-2921 (domestic) or 1-412-317-6671 (international) and
enter the passcode 13683219.
Use of Non-GAAP Measures
Management uses non-GAAP measures to establish operational goals
and believes that non-GAAP measures may assist investors in
analyzing the underlying trends in AngioDynamics' business over
time. Investors should consider these non-GAAP measures in addition
to, not as a substitute for or as superior to, financial reporting
measures prepared in accordance with GAAP. In this news release,
AngioDynamics has reported adjusted EBITDAS, adjusted net income,
adjusted earnings per share and free cash flow. Management uses
these measures in its internal analysis and review of operational
performance. Management believes that these measures provide
investors with useful information in comparing AngioDynamics'
performance over different periods. By using these non-GAAP
measures, management believes that investors get a better picture
of the performance of AngioDynamics' underlying business.
Management encourages investors to review AngioDynamics' financial
results prepared in accordance with GAAP to understand
AngioDynamics' performance taking into account all relevant
factors, including those that may only occur from time to time but
have a material impact on AngioDynamics' financial results. Please
see the tables that follow for a reconciliation of non-GAAP
measures to measures prepared in accordance with GAAP.
About AngioDynamics, Inc.
AngioDynamics, Inc. is a leading provider of innovative,
minimally invasive medical devices used by professional healthcare
providers for vascular access, peripheral vascular
disease, and oncology. AngioDynamics’ diverse product
lines include market-leading ablation systems, fluid management
systems, vascular access products, angiographic products and
accessories, drainage products, thrombolytic products and venous
products. For more information,
visit www.angiodynamics.com.
Safe Harbor
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements regarding AngioDynamics' expected future financial
position, results of operations, cash flows, business strategy,
budgets, projected costs, capital expenditures, products,
competitive positions, growth opportunities, plans and objectives
of management for future operations, as well as statements that
include the words such as "expects," "reaffirms," "intends,"
"anticipates," "plans," "believes," "seeks," "estimates,"
"optimistic," or variations of such words and similar expressions,
are forward-looking statements. These forward-looking statements
are not guarantees of future performance and are subject to risks
and uncertainties. Investors are cautioned that actual events or
results may differ from AngioDynamics' expectations. Factors that
may affect the actual results achieved by AngioDynamics include,
without limitation, the ability of AngioDynamics to develop its
existing and new products, technological advances and patents
attained by competitors, infringement of AngioDynamics' technology
or assertions that AngioDynamics' technology infringes the
technology of fourth parties, the ability of AngioDynamics to
effectively compete against competitors that have substantially
greater resources, future actions by the FDA or other regulatory
agencies, domestic and foreign health care reforms and government
regulations, results of pending or future clinical trials, overall
economic conditions, the results of on-going litigation, challenges
with respect to fourth-party distributors or joint venture partners
or collaborators, the results of sales efforts, the effects of
product recalls and product liability claims, changes in key
personnel, the ability of AngioDynamics to execute on strategic
initiatives, the effects of economic, credit and capital market
conditions, general market conditions, market acceptance, foreign
currency exchange rate fluctuations, the effects on pricing from
group purchasing organizations and competition, the ability of
AngioDynamics to integrate acquired businesses, as well as the risk
factors listed from time to time in AngioDynamics' SEC filings,
including but not limited to its Annual Report on Form 10-K for the
year ended May 31, 2018. AngioDynamics does not assume any
obligation to publicly update or revise any forward-looking
statements for any reason.
In the United States, the NanoKnife System has received a 510(k)
clearance by the Food and Drug Administration for use in the
surgical ablation of soft tissue and is similarly approved for
commercialization in Canada, the European Union, and
Australia. The NanoKnife System has not been cleared for the
treatment or therapy of a specific disease or condition.
ANGIODYNAMICS, INC. AND SUBSIDIARIES CONSOLIDATED
INCOME STATEMENTS (in thousands, except per share data)
Three months ended August
31, August 31, 2018 2017 (unaudited) Net sales $ 85,340 $
85,411 Cost of sales (exclusive of intangible amortization) 40,873
44,182 Gross profit 44,467 41,229 % of net sales 52.1% 48.3%
Operating expenses Research and development 7,662 6,441 Sales and
marketing 19,433 19,402 General and administrative 8,496 8,056
Amortization of intangibles 4,116 4,096 Change in fair value of
contingent consideration 12 105 Acquisition, restructuring and
other items, net 4,422 2,989 Total operating expenses 44,141 41,089
Operating income 326 140 Interest expense, net (917) (723) Other
income, net 114 567 Total other expense, net (803) (156) Loss
before income taxes (477) (16) Income tax expense (benefit) (8) 19
Net loss $ (469) $ (35) Earnings per share Basic $ (0.01) $
(0.00) Diluted $ (0.01) $ (0.00) Weighted average shares
outstanding Basic 37,323 36,919 Diluted 37,323 36,919
ANGIODYNAMICS, INC. AND SUBSIDIARIES GAAP TO NON-GAAP
RECONCILIATION (in thousands, except per share data)
Reconciliation of Net Loss to non-GAAP
Adjusted Net Income:
Three months ended August 31, August 31, 2018 2017
(unaudited) Net Loss $ (469) $ (35) Amortization of
intangibles 4,116 4,096 Change in fair value of contingent
consideration 12 105 Acquisition, restructuring and other items,
net (1) 4,422 2,989 Tax effect of non-GAAP items (2) (1,865)
(2,178) Adjusted net income $ 6,216 $ 4,977
Reconciliation of Diluted Earnings Per
Share to non-GAAP Adjusted Diluted Earnings Per Share:
Three months ended August 31, August 31, 2018 2017
(unaudited) Diluted earnings per share $ (0.01) $ (0.00)
Amortization of intangibles 0.11 0.11 Change in fair value
of contingent consideration 0.00 0.00 Acquisition, restructuring
and other items, net (1) 0.12 0.08 Tax effect of non-GAAP items (2)
(0.06) (0.06) Adjusted diluted earnings per share $ 0.16 $ 0.13
Adjusted diluted share count 38,096 37,230 (1)
Includes costs related to merger and acquisition activities,
restructurings, and unusual items, including asset impairments and
write-offs, certain litigation, and other items. (2) Adjustment to
reflect the income tax provision on a non-GAAP basis has been
calculated assuming no valuation allowance on our U.S. deferred tax
assets and an effective tax rate of 23% for August 31, 2018. For
August 31, 2017 the effective tax rate i) has been calculated using
a blended rate of 30.62% for the year ended May 31, 2018 due to the
enactment of the Tax Cuts and Jobs Act (the “Act”) that reduced the
federal corporate tax rate to 21%; ii) excludes the benefit
recorded in Q3 fiscal 2018 resulting from remeasurement of our
deferred tax assets from the Act; iii) tax effects the non-GAAP
adjustment shown above and iv) assumes the Company does not have a
valuation allowance on its U.S deferred tax assets.
ANGIODYNAMICS, INC. AND SUBSIDIARIES GAAP TO NON-GAAP
RECONCILIATION (Continued) (in thousands, except per share
data)
Reconciliation of Net Income to EBITDAS and Adjusted
EBITDAS: Three months ended August 31, August 31, 2018
2017 (unaudited) Net loss $ (469) $ (35) Income tax
expense (8) 19 Interest expense, net 917 723 Depreciation and
amortization 5,599 5,793 Stock-based compensation 2,150 1,797
EBITDAS $ 8,189 $ 8,297 Change in fair value of contingent
consideration $ 12 $ 105 Acquisition, restructuring and other
items, net (1,2) 4,422 2,881 Adjusted EBITDAS $ 12,623 $ 11,283
Per diluted share: EBITDAS $ 0.21 $ 0.22 Adjusted EBITDAS $
0.33 $ 0.30 (1) Includes costs related to merger and acquisition
activities, restructurings, and unusual items, including asset
impairments and write-offs, certain litigation, and other items.
(2) Excludes depreciation expense captured in the depreciation and
amortization component of the reconciliation.
ANGIODYNAMICS, INC. AND SUBSIDIARIES NET SALES BY PRODUCT
CATEGORY AND BY GEOGRAPHY (in thousands)
Three months ended Currency Constant August
31, August 31, % Impact Currency 2018 2017 Growth (Pos) Neg Growth
(unaudited) Net Sales by Product Category Vascular
Interventions and Therapies $ 49,995 $ 49,865 0.3% Vascular Access
23,790 23,238 2.4% Oncology 11,555 12,308 (6.1)% Total $ 85,340 $
85,411 (0.1)% (0.0)% (0.1)% Net Sales by Geography United
States $ 67,684 $ 68,931 (1.8)% (0.0)% (1.8)% International 17,656
16,480 7.1% (0.0)% 7.3% Total $ 85,340 $ 85,411 (0.1)% (0.0)%
(0.1)%
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (in thousands)
August 31, May 31, 2018
2018 (unaudited) (audited)
Assets Current Assets Cash and
cash equivalents $ 24,762 $ 74,096 Marketable securities 1,350
1,317 Total cash and investments 26,112 75,413 Accounts
receivable, net 40,164 39,401 Inventories 49,721 48,916 Prepaid
expenses and other 4,888 4,302 Total current assets 120,885 168,032
Property, plant and equipment, net 42,163 42,461 Other
assets 3,637 3,417 Intangible assets, net 144,194 130,310 Goodwill
382,992 361,252 Total Assets $ 693,871 $ 705,472
Liabilities and Stockholders' Equity Current Liabilities
Accounts payable $ 16,916 $ 15,775 Accrued liabilities 19,900
34,426 Current portion of long-term debt 5,000 5,000 Current
portion of contingent consideration 3,973 2,100 Total current
liabilities 45,789 57,301 Long-term debt, net of current portion
85,444 86,621 Deferred income taxes 17,154 17,173 Contingent
consideration, net of current portion - 1,161 Other long-term
liabilities 595 621 Total Liabilities 148,982 162,877
Stockholders' equity 544,889 542,595 Total Liabilities and
Stockholders' Equity $ 693,871 $ 705,472
ANGIODYNAMICS,
INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands)
Three months ended August 31, August 31, 2018 2017 (unaudited)
Cash flows from operating activities: Net loss $
(469) $ (35) Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
5,599 5,793 Stock-based compensation 2,150 1,797 Change in fair
value of contingent consideration 12 105 Deferred income taxes (10)
(82) Change in accounts receivable allowance (228) 278 Other 25
(567) Changes in operating assets and liabilities: Accounts
receivables (562) 3,103 Inventories (761) (781) Prepaid expenses
and other (1,200) 620 Accounts payable, accrued and other
liabilities (13,429) (7,195) Net cash provided by (used in)
operating activities (8,873) 3,036
Cash flows from
investing activities: Additions to property, plant and
equipment (682) (501) Cash paid for acquisition (37,000) - Net cash
used in investing activities (37,682) (501)
Cash flows
from financing activities: Repayment of long-term debt (1,250)
(1,250) Payment of acquisition related contingent consideration
(2,100) (2,100) Proceeds from exercise of stock options and
employee stock purchase plan 705 812 Net cash used in financing
activities (2,645) (2,538) Effect of exchange rate changes
on cash and cash equivalents (134) 659 Increase (decrease) in cash
and cash equivalents (49,334) 656 Cash and cash equivalents
at beginning of period 74,096 47,544 Cash and cash equivalents at
end of period $ 24,762 $ 48,200
ANGIODYNAMICS, INC. AND
SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION (in
thousands)
Reconciliation of Free Cash Flows: Three months ended
August 31, August 31, 2018 2017 (unaudited)
Net cash provided by (used in) operating activities $
(8,873) $ 3,036 Additions to property, plant and equipment (682)
(501) Free Cash Flow $ (9,555) $ 2,535
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180927005199/en/
AngioDynamics, Inc.InvestorsMichael C. Greiner,
518-795-1821Executive Vice President & CFO
AngioDynamics (NASDAQ:ANGO)
Historical Stock Chart
From Mar 2024 to Apr 2024
AngioDynamics (NASDAQ:ANGO)
Historical Stock Chart
From Apr 2023 to Apr 2024