Fiscal 2018 Fourth Quarter Highlights
- Net sales of $88.3 million, an
increase of 1.6% year over year
- Gross margin expanded 500 basis
points year over year to 53.7%
- GAAP EPS of $0.06 per share;
adjusted EPS of $0.20 per share
- Operating cash flow of $23.8
million; free cash flow of $23.0 million
Full-Year 2018 Highlights
- Net sales of $344.3 million, a
decrease of 1.5% year over year
- Gross margin expanded 100 basis
points year over year to 51.4%
- GAAP EPS of $0.44 per share;
adjusted EPS of $0.74 per share
- Operating cash flow of $41.3
million; free cash flow of $38.9 million
AngioDynamics, Inc. (NASDAQ: ANGO), a leading provider of
innovative, minimally invasive medical devices for vascular access,
peripheral vascular disease, oncology and surgery, today announced
financial results for the fourth quarter and fiscal year, which
ended May 31, 2018.
“Our quarterly and full-year results showed further improvement
in our operational outcomes, continuing our path to sustainable
long-term growth. We are very pleased with our year-over-year gross
margin expansion and solid profitability, as well as our consistent
free cash flow generation,” commented Jim Clemmer, President and
Chief Executive Officer of AngioDynamics, Inc. “Our Oncology
ablation systems, AngioVac thrombus management product, and Fluid
Management family of products are each examples of where we are
well positioned to win and grow the value of the Company. We will
continue to actively focus on pursuing our portfolio optimization
strategy, which includes both internal and external growth
opportunities. We will look to augment those areas where we
currently have a product family foundation with additional
opportunities to win, driving sustainable long-term revenue
growth.”
Fourth Quarter 2018 Financial Results
Net sales for the fourth quarter of fiscal 2018 were $88.3
million, an increase of 1.6%, compared to $86.9 million a year
ago. During the quarter, growth in the Fluid Management,
Angiographic Catheters, and AngioVac product lines, as well as two
of the Company’s Ablation Systems, Solero® and NanoKnife®, was
partially offset by declines in its Venous Insufficiency business,
PICCs and Midline products.
Currency had a positive impact on net sales of approximately 50
basis points for both the fourth quarter and full year.
Peripheral Vascular net sales in the fourth quarter of fiscal
2018 were $52.6 million, a decrease of 2.4% from $53.9 million a
year ago, as growth in the Fluid Management, Angiographic
catheters, and AngioVac product lines was more than offset by
declines in the Venous Insufficiency and Thrombolytic businesses.
Oncology/Surgery net sales were $12.1 million, an increase of 37.5%
from $8.8 million a year ago, as strong growth in our Solero
Microwave Ablation System and an increase in sales of NanoKnife,
were partially offset by lower sales of RFA. Vascular Access net
sales were $23.6 million, a decrease of 2.5% from $24.2 million a
year ago, as growth in Ports and Dialysis products was more than
offset by declines in PICCs.
U.S. net sales in the fourth quarter of fiscal 2018 were $70.3
million, a decrease of 0.7% from $70.8 million a year ago,
primarily due to lower sales of our Venous Insufficiency, PICCs,
RFA, and NanoKnife product lines. International net sales in the
fourth quarter of fiscal 2018 were $18.0 million, an increase of
11.8% from $16.1 million a year ago, primarily due to strong
performance in Europe.
Gross margin for the fourth quarter of fiscal 2018 expanded 500
basis points to 53.7% from 48.7% a year ago, largely as a result of
the prior-year Acculis recall that was announced in the fourth
quarter of 2017 along with ongoing operational improvements,
recently completed facility consolidation, and the expiration of a
royalty arrangement in the second quarter of fiscal 2018.
The Company recorded net income of $2.1 million, or $0.06 per
share, in the fourth quarter of fiscal 2018. This compares to a net
loss of $12.9 million, or $0.35 per share, a year ago. The
improvement in net income was primarily attributable to the
reserves for legal matters related to Department of
Justice subpoenas, as well as the Acculis recall that were
both recorded in the fourth quarter of fiscal year 2017.
Excluding the items shown in the non-GAAP reconciliation table
below, adjusted net income for the fourth quarter of fiscal 2018
was $7.7 million, or $0.20 per share, compared to adjusted net
income of $6.8 million, or $0.19 per share, in the fourth quarter
of fiscal 2017.
Adjusted EBITDAS in the fourth quarter of fiscal 2018, excluding
the items shown in the reconciliation table below, was $15.6
million, compared to $14.3 million in the fourth quarter of fiscal
2017.
In the fourth quarter of fiscal 2018, the Company generated
$23.8 million in operating cash flow and $23.0 million in free cash
flow. As of May 31, 2018, the Company had $74.1 million in cash and
cash equivalents and $92.5 million in debt, excluding the impact of
deferred financing costs.
Full-Year 2018 Financial Results
For the twelve months ended May 31, 2018:
- Net sales were $344.3 million, a
decrease of 1.5%, compared to $349.6 million for the same
period a year ago.
- The Company's net income was $16.3
million, or $0.44 per share, compared to net income of $5.0
million, or $0.14 per share, a year ago.
- Excluding the items shown in the
non-GAAP reconciliation table below, adjusted net income for the
twelve months ended May 31, 2018 was $27.6 million, or $0.74 per
share, compared to adjusted net income of $27.0 million, or $0.73
per share, a year ago.
- Adjusted EBITDAS, excluding the items
shown in the reconciliation table below, was $57.0 million,
compared to $58.7 million for the same period a year ago.
Fiscal Year 2019 Financial Guidance
The Company expects its fiscal year 2019 net sales to be in the
range of $344 to $349 million and free cash flow in the range of
$38 to $43 million, excluding an approximately $12.5 million cash
payment to the Department of Justice related to previously
disclosed legal matters. The Company expects 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 fourth quarter and full-year 2018
results.
To participate in the conference call, dial 1-877-407-0784
(domestic) or 1-201-689-8560 (international) and refer to the
passcode 13681007.
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 Wednesday, July 11, 2018, until 11:59 p.m. ET on Wednesday,
July 18, 2018. To hear this recording, dial 1-844-512-2921
(domestic) or 1-412-317-6671 (international) and enter the passcode
13681007.
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 gross margin,
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, surgery, 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 purchased 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, 2017. 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 Twelve months ended May 31, May
31, May 31, May 31, 2018 2017
2018 2017 (unaudited) (unaudited) (audited)
Net sales $ 88,317 86,914 $ 344,285 $ 349,643 Cost of sales
(exclusive of intangible amortization) 40,850
44,579 167,410 173,474 Gross
profit 47,467 42,335 176,875
176,169
% of net sales
53.7 % 48.7 % 51.4 % 50.4 % Operating expenses Research and
development 6,454 6,696 25,459 25,269 Sales and marketing 20,898
20,476 77,276 78,819 General and administrative 7,946 8,316 31,265
31,406 Amortization of intangibles 4,202 4,410 16,635 17,296 Change
in fair value of contingent consideration 32 125 250 (15,261 )
Acquisition, restructuring and other items, net 3,500 15,482 15,432
27,510 Medical device excise tax - (1,837 )
- (1,837 ) Total operating expenses
43,032 53,668 166,317
163,202 Operating income 4,435 (11,333 ) 10,558 12,967
Interest expense, net (839 ) (683 ) (3,062 ) (2,839 ) Other income
(expense), net (269 ) (12 ) (31 ) (281
) Total other expense, net (1,108 ) (695 ) (3,093 ) (3,120 ) Income
before income taxes 3,327 (12,028 ) 7,465 9,847 Income tax expense
(benefit) 1,225 885 (8,870 )
4,839 Net income $ 2,102 $ (12,913 ) $ 16,335
$ 5,008 Earnings per share Basic $ 0.06 $
(0.35 ) $ 0.44 $ 0.14 Diluted $ 0.06 $ (0.35 ) $ 0.44 $ 0.14
Weighted average shares outstanding Basic 37,203 36,655 37,075
36,617 Diluted 37,747 36,655 37,539 36,959
ANGIODYNAMICS,
INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
Reconciliation of Gross Profit to non-GAAP
Adjusted Gross Profit Three months ended Twelve months
ended May 31, May 31, May 31, May 31, 2018
2017 2018 2017 (unaudited)
(unaudited) Gross profit $ 47,467 $ 42,335 $ 176,875 $
176,169 Recall expenses included in cost of sales -
2,645 - 2,861
Adjusted gross profit $ 47,467 $ 44,980 $ 176,875
$ 179,030 Adjusted gross profit % of sales 53.7 %
51.8 % 51.4 % 51.2 %
Reconciliation of Net Income to
non-GAAP Adjusted Net Income: Three months ended Twelve
months ended May 31, May 31, May 31, May 31, 2018 2017 2018 2017
(unaudited) (unaudited) Net income $ 2,102 $ (12,913 ) $
16,335 $ 5,008 Recall expenses included in cost of sales -
2,645 - 2,861 Amortization of intangibles 4,202 4,410 16,635 17,296
Change in fair value of contingent consideration 32 125 250 (15,261
) Acquisition, restructuring and other items, net (1) 3,500 15,482
15,432 27,510 Tax effect of non-GAAP items (2) (2,162 )
(2,943 ) (21,051 ) (10,372 ) Adjusted net
income $ 7,674 $ 6,806 $ 27,601 $ 27,042
Reconciliation of Diluted Earnings Per
Share to non-GAAP Adjusted Diluted Earnings Per Share:
Three months ended Twelve months ended May 31, May 31, May 31, May
31, 2018 2017 2018 2017 (unaudited) (unaudited) Diluted
earnings per share $ 0.06 $ (0.35 ) $ 0.44 $ 0.14 Recall
expenses included in cost of sales - 0.07 - 0.08 Amortization of
intangibles 0.11 0.12 0.44 0.47 Change in fair value of contingent
consideration 0.00 0.00 0.01 (0.41 ) Acquisition, restructuring and
other items, net (1) 0.10 0.42 0.41 0.74 Tax effect of non-GAAP
items (2) (0.07 ) (0.07 ) (0.56 ) (0.29
) Adjusted diluted earnings per share $ 0.20 $ 0.19 $
0.74 $ 0.73
Adjusted diluted share count
37,747 36,655 37,539 36,959 (1) Includes costs related to mergers
and acquisition activities, integrations, restructurings, asset
impairments and write-offs, litigation, and other items. (2)
Adjustment to reflect the income tax provision on a non-GAAP basis
which 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% ( the effective rate for the three and twelve months ended May
31, 2017 was 36%); 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: Amounts in 000's Three
months ended Twelve months ended May 31, May 31, May 31, May 31,
2018 2017 2018 2017 (unaudited) (unaudited) Net income $
2,102 $ (12,913 ) $ 16,335 $ 5,008 Income tax expense
(benefit) 1,225 885 (8,870 ) 4,839 Interest expense, net 839 683
3,062 2,839 Depreciation and amortization 5,768 6,356 23,163 24,811
Stock-based compensation 2,091 1,105
7,912 6,183 EBITDAS $ 12,025 $ (3,884 )
41,602 43,680 Recall expenses included
in cost of sales - 2,645 - 2,861 Change in fair value of contingent
consideration 32 125 250 (15,261 ) Acquisition, restructuring and
other items, net (1,2) 3,500 15,374
15,156 27,402 Adjusted EBITDAS $ 15,557 $
14,260 $ 57,008 $ 58,682 Per diluted
share: EBITDAS $ 0.32 $ (0.11 ) $ 1.11 $ 1.18 Adjusted EBITDAS $
0.41 $ 0.39 $ 1.52 $ 1.59 (1) Includes costs related to mergers and
acquisition activities, integrations, restructurings, asset
impairments and write-offs, 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
(unaudited in thousands)
Three months ended Twelve months ended Currency
Constant
CurrencyImpact(Pos) Neg
ConstantCurrencyGrowth
May 31, May 31,
%
Impact Currency May 31, May 31, % 2018 2017 Growth (Pos) Neg Growth
2018 2017 Growth Net Sales by Product Category Peripheral
Vascular $ 52,583 $ 53,948 (3 )% $ 202,334 $ 208,602 (3 )% Vascular
Access 23,669 24,243 (2 )% 92,760 96,481 (4 )% Oncology/Surgery
12,065 8,723 (38 )% 49,191 44,560 10 %
Total $ 88,317 $ 86,914 (2 )% (1 )% 1 % $ 344,285 $ 349,643 (2 )% 0
% (2 )% Net Sales by Geography United States $ 70,307 $
70,847 (1 )% 0 % (1 )% $ 273,327 $ 282,168 (3 )% 0 % (3 )%
International $ 18,010 $ 16,067 12 % (3 )% 9 % 70,958
67,475 5 % (2 )% 3 % Total $ 88,317 $ 86,914 2 % (1 )% 1 % $
344,285 $ 349,643 (2 )% 0 % (2 )%
ANGIODYNAMICS,
INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in
thousands) May 31, May 31, 2018 2017
(unaudited) (audited)
Assets Current Assets Cash and cash
equivalents $ 74,096 $ 47,544 Marketable securities 1,317
1,215 Total cash and investments 75,413 48,759
Accounts receivable, net 39,401 44,523 Inventories 48,916 54,506
Prepaid expenses and other 4,302 6,126 Total current
assets 168,032 153,914 Property, plant and equipment, net
42,461 45,234 Other assets 3,417 1,886 Intangible assets, net
130,310 145,675 Goodwill 361,252 361,252 Total Assets
$ 705,472 $ 707,961
Liabilities and Stockholders'
Equity Current Liabilities Accounts payable $ 15,775 $ 18,087
Accrued liabilities 34,426 38,804 Current portion of long-term debt
5,000 5,000 Current portion of contingent consideration
2,100 9,625 Total current liabilities 57,301 71,516
Long-term debt, net of current portion 86,621 91,320 Deferred
income taxes 17,173 26,112 Contingent consideration, net of current
portion 1,161 3,136 Other long-term liabilities 621
850 Total Liabilities 162,877 192,934 Stockholders' equity
542,595 515,027 Total Liabilities and Stockholders'
Equity $ 705,472 $ 707,961
ANGIODYNAMICS, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in
thousands) Three months ended
Twelve months ended May 31, May 31, May 31, May 31, 2018
2017 2018 2017
(unaudited) (unaudited) (audited)
Cash flows from
operating activities:
Net income
$ 2,102 $ (12,913 ) $ 16,335 $ 5,008 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
and amortization 5,768 6,356 23,163 24,811 Stock-based compensation
2,091 1,105 7,912 6,183 Change in fair value of contingent
consideration 32 125 250 (15,261 ) Deferred income taxes 1,203 804
(8,947 ) 4,428 Change in accounts receivable allowance 214 292 179
(313 ) Fixed and intangible asset impairments and disposals 510 108
540 3,930 Write-off of other assets - - - 2,685 Other 30 (51 ) (605
) (586 ) Changes in operating assets and liabilities: - - Accounts
receivables 2,147 1,581 5,044 8,479 Inventories 7,653 3,272 5,740
687 Prepaid expenses and other (683 ) (2,305 ) (1,231 ) (3,520 )
Accounts payable, accrued and other liabilities 2,704
20,619 (7,093 ) 19,214 Net cash
provided by operating activities 23,771 18,993
41,287 55,745
Cash
flows from investing activities: Additions to property, plant
and equipment (744 ) (743 ) (2,391 ) (3,001 ) Acquisition of
intangible and other assets - - (1,265 ) - Proceeds from sale or
maturity of marketable securities - -
- 450 Net cash used in investing
activities (744 ) (743 ) (3,656 )
(2,551 )
Cash flows from financing activities:
Proceeds from issuance of and borrowings on long-term debt - - -
116,471 Repayment of long-term debt (1,250 ) (1,250 ) (5,000 )
(140,381 ) Deferred financing costs on long-term debt - (29 ) -
(1,364 ) Payment of acquisition related contingent consideration -
- (9,500 ) (9,850 ) Repurchase of common stock - (5,717 ) - (13,557
) Proceeds from exercise of stock options and employee stock
purchase plan 389 429 2,949
10,698 Net cash used in financing activities
(861 ) (6,567 ) (11,551 ) (37,983 )
Effect of exchange rate changes on cash and cash equivalents
(362 ) 290 472 -
Increase in cash and cash equivalents 21,804 11,973 26,552 15,211
Cash and cash equivalents at beginning of period
52,292 35,571 47,544
32,333 Cash and cash equivalents at end of period $ 74,096
$ 47,544 $ 74,096 $ 47,544
ANGIODYNAMICS, INC. AND SUBSIDIARIES GAAP TO NON-GAAP
RECONCILIATION (in thousands)
Reconciliation of Free
Cash Flows: Three months ended Twelve months ended May
31, May 31, May 31, May 31, 2018 2017 2018 2017 (unaudited)
(unaudited)
(audited) Net cash provided by operating activities $ 23,771
$ 18,993 $ 41,287 $ 55,745 Additions to property, plant and
equipment (744 ) (743 ) (2,391 ) (3,001
) Free Cash Flow $ 23,027 $ 18,250 $ 38,896 $
52,744
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180711005201/en/
Investor:AngioDynamics, Inc.Michael 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