Fiscal Year 2023 First Quarter Highlights
- Net sales of $81.5 million increased 5.9% compared to the
prior-year quarter
- Med Tech net sales of $22.8 million increased 29.6%
- Med Device net sales of $58.7 million decreased
1.1%
- Gross margin of 51.9% declined 20 basis points year over
year
- GAAP loss per share of $0.33 and adjusted loss per share of
$0.06
- The Company commenced the Full Market Release of the
AlphaVac F18 Mechanical Thrombectomy device
AngioDynamics, Inc. (NASDAQ: ANGO), a leading and transformative
medical technology company focused on restoring healthy blood flow
in the body’s vascular system, expanding cancer treatment options
and improving quality of life for patients, today announced
financial results for the first quarter of fiscal year 2023, which
ended August 31, 2022.
“We are pleased with our performance during the quarter as we
continued to deliver on our long-term strategic objectives,”
commented Jim Clemmer, President and Chief Executive Officer of
AngioDynamics, Inc. “The challenging and uncertain macro
environment continued during our first fiscal quarter of 2023, with
persistent inflation, as well as hospital staffing and procedural
pressures. Our commitment to executing our strategic plan based on
our key growth drivers: Auryon, AngioVac, AlphaVac and NanoKnife,
enabled us to build on the momentum we generated in fiscal 2022 to
deliver solid results even in the face of this challenging
environment.”
First Quarter 2023 Financial Results
Net sales for the first quarter of fiscal 2023 were $81.5
million, an increase of 5.9% compared to the prior-year quarter.
Foreign currency translation did not have a significant impact on
the Company's net sales in the quarter.
Med Tech net sales were $22.8 million, a 29.6% increase from the
prior-year period. Med Tech includes the Auryon peripheral
atherectomy platform, the thrombus management platform and the
NanoKnife irreversible electroporation platform. Growth was driven
by Auryon sales during the quarter of $8.8 million, which increased
50.0%, thrombectomy sales of $10.0 million, which increased 31.8%
and NanoKnife disposable sales, which increased 12.3% compared to
the first quarter of fiscal 2022.
Med Device net sales were $58.7 million, a decline of 1.1%
compared to the prior-year period.
U.S. net sales in the first quarter of fiscal 2023 were $69.0
million, an increase of 7.1% from $64.5 million a year ago.
International net sales were $12.5 million roughly flat compared to
a year ago.
Gross margin for the first quarter of fiscal 2023 was 51.9%, a
decrease of 20 basis points compared to the first quarter of fiscal
2022. Gross margin for the Med Tech business was 63.2%, a decline
of 220 basis points from the first quarter of fiscal 2022. Gross
margin for the Med Device business was 47.5%, a decline of 70 basis
points compared to the first quarter of fiscal 2022. Gross margin
was negatively impacted by macro forces including labor shortages
and increased costs for labor, raw materials and freight.
The Company recorded a net loss of $13.0 million, or a loss per
share of $0.33, in the first quarter of fiscal 2023. This compares
to a net loss of $7.0 million, or a loss per share of $0.18, a year
ago.
Excluding the items shown in the non-GAAP reconciliation table
below, adjusted net loss for the first quarter of fiscal 2023 was
$2.5 million, and adjusted loss per share was $0.06, compared to
adjusted net loss of $0.9 million and adjusted loss per share of
$0.02 in the prior-year period.
Adjusted EBITDA in the first quarter of fiscal 2023, excluding
the items shown in the reconciliation table below, was $3.0
million, compared to adjusted EBITDA of $3.6 million in the first
quarter of fiscal 2022.
In the first quarter of fiscal 2023, the Company used $24.7
million in operating cash, had capital expenditures of $0.8 million
and additions to Auryon placement and evaluation units of $2.2
million.
On August 31, 2022, the Company had $24.6 million in cash and
cash equivalents, compared to $28.8 million in cash and cash
equivalents on May 31, 2022.
During the first quarter, the Company refinanced its credit
facility. The new credit facility provides for a $75 million
secured revolving credit facility with a maturity date of August
30, 2027 and a $30 million delayed-draw term loan. The proceeds of
the delayed-draw term loan may be used for general corporate
purposes, including primarily to finance the manufacturing costs of
the Auryon laser capital equipment of AngioDynamics and its
subsidiaries. The Company had $25.0 million outstanding on the
delayed-draw term loan and $25.0 million outstanding under its
revolving credit facility at August 31, 2022.
Fiscal Year 2023 Financial Guidance
Management is reaffirming its previously issued fiscal year 2023
guidance. Management expects net sales to be in the range of $342
to $348 million, gross margin to be approximately 52.5% to 54.5%
and adjusted earnings per share in the range of $0.01 to $0.06 as
it continues to invest in new product launches to drive future
growth.
Conference Call
The Company's management will host a conference call today at
8:00 a.m. ET to discuss its first quarter results.
To participate in the conference call, dial 1-877-407-0784
(domestic) or +1-201-689-8560 (international) and refer to the
passcode 13732702.
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, October 6, 2022, until 11:59 p.m. ET on Thursday,
October 13, 2022. To listen to this recording, dial 1-844-512-2921
(domestic) or +1-412-317-6671 (international) and enter the
passcode 13732702.
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 EBITDA, adjusted net income and
adjusted earnings per share. 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 is a leading and transformative medical technology
company focused on restoring healthy blood flow in the body’s
vascular system, expanding cancer treatment options and improving
quality of life for patients.
The Company’s innovative technologies and devices are chosen by
talented physicians in fast-growing healthcare markets to treat
unmet patient needs. 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,"
“projects”, "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 materially from AngioDynamics'
expectations, expressed or implied. Factors that may affect the
actual results achieved by AngioDynamics include, without
limitation, the scale and scope of the COVID-19 global pandemic,
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 third 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 (including inflation, labor shortages and
supply chain challenges including the cost and availability of raw
materials), the results of on-going litigation, challenges with
respect to third-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
obtain regulatory clearances or approval of its products, or 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, 2022. 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
Aug 31, 2022
Aug 31, 2021
(unaudited)
Net sales
$
81,537
$
76,971
Cost of sales (exclusive of intangible
amortization)
39,232
36,832
Gross profit
42,305
40,139
% of net sales
51.9
%
52.1
%
Operating expenses
Research and development
8,333
7,394
Sales and marketing
26,543
24,446
General and administrative
10,101
8,943
Amortization of intangibles
4,837
4,821
Change in fair value of contingent
consideration
211
195
Acquisition, restructuring and other
items, net
5,581
2,440
Total operating expenses
55,606
48,239
Operating loss
(13,301
)
(8,100
)
Interest expense, net
(381
)
(156
)
Other expense, net
(175
)
(352
)
Total other expense, net
(556
)
(508
)
Loss before income tax benefit
(13,857
)
(8,608
)
Income tax benefit
(853
)
(1,636
)
Net loss
$
(13,004
)
$
(6,972
)
Loss per share
Basic
$
(0.33
)
$
(0.18
)
Diluted
$
(0.33
)
$
(0.18
)
Weighted average shares outstanding
Basic
39,302
38,734
Diluted
39,302
38,734
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
GAAP TO NON-GAAP
RECONCILIATION
(in thousands, except per share
data)
Reconciliation of Net Loss to non-GAAP
Adjusted Net Loss:
Three Months Ended
Aug 31, 2022
Aug 31, 2021
(unaudited)
Net loss
$
(13,004
)
$
(6,972
)
Amortization of intangibles
4,837
4,821
Change in fair value of contingent
consideration
211
195
Acquisition, restructuring and other
items, net (1)
5,581
2,440
Tax effect of non-GAAP items (2)
(111
)
(1,371
)
Adjusted net loss
$
(2,486
)
$
(887
)
Reconciliation of Diluted Loss Per
Share to non-GAAP Adjusted Diluted Loss Per Share:
Three Months Ended
Aug 31, 2022
Aug 31, 2021
(unaudited)
Diluted loss per share
$
(0.33
)
$
(0.18
)
Amortization of intangibles
0.12
0.12
Change in fair value of contingent
consideration
0.01
0.01
Acquisition, restructuring and other
items, net (1)
0.14
0.06
Tax effect of non-GAAP items (2)
—
(0.03
)
Adjusted diluted loss per share
$
(0.06
)
$
(0.02
)
Adjusted diluted sharecount (3)
39,302
38,734
(1) Includes costs related to merger and
acquisition activities, restructuring, 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 the Company's U.S. deferred tax assets and
an effective tax rate of 23% for the periods ended August 31, 2022
and 2021.
(3) Diluted shares may differ for non-GAAP
measures as compared to GAAP due to a GAAP loss.
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
GAAP TO NON-GAAP
RECONCILIATION (Continued)
(in thousands, except per share
data)
Reconciliation of Net Loss to Adjusted
EBITDA:
Three Months Ended
Aug 31, 2022
Aug 31, 2021
(unaudited)
Net loss
$
(13,004
)
$
(6,972
)
Income tax benefit
(853
)
(1,636
)
Interest expense, net
381
156
Depreciation and amortization
7,621
6,958
Change in fair value of contingent
consideration
211
195
Stock based compensation
3,024
2,429
Acquisition, restructuring and other
items, net (1)
5,581
2,440
Adjusted EBITDA
$
2,961
$
3,570
Per diluted share:
Adjusted EBITDA
$
0.08
$
0.09
(1) Includes costs related to merger and
acquisition activities, restructuring, and unusual items, including
asset impairments and write-offs, certain litigation, and other
items.
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY
AND BY GEOGRAPHY
(in thousands)
Three Months Ended
Aug 31, 2022
Aug 31, 2021
% Growth
Currency Impact
Constant Currency Growth
(unaudited)
Net Sales
Med Tech
$
22,817
$
17,607
29.6
%
Med Device
58,720
59,364
(1.1
)%
$
81,537
$
76,971
5.9
%
0.6
%
6.5
%
Net Sales by Geography
United States
$
69,023
$
64,464
7.1
%
International
12,514
12,507
0.1
%
3.7
%
3.8
%
$
81,537
$
76,971
5.9
%
0.6
%
6.5
%
GROSS PROFIT BY PRODUCT
CATEGORY
(in thousands)
Three Months Ended
Aug 31, 2022
Aug 31, 2021
% Change
(unaudited)
Med Tech
$
14,429
$
11,517
25.3
%
Gross profit % of sales
63.2
%
65.4
%
Med Device
$
27,876
$
28,622
(2.6
) %
Gross profit % of sales
47.5
%
48.2
%
Total
$
42,305
$
40,139
5.4
%
Gross profit % of sales
51.9
%
52.1
%
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(in thousands)
Aug 31, 2022
May 31, 2022
(unaudited)
(audited)
Assets
Current assets:
Cash and cash equivalents
$
24,564
$
28,825
Accounts receivable, net
53,586
52,304
Inventories
57,609
51,392
Prepaid expenses and other
15,612
10,824
Total current assets
151,371
143,345
Property, plant and equipment, net
46,189
45,005
Other assets
11,078
10,963
Intangible assets, net
147,976
152,380
Goodwill
201,038
201,058
Total assets
$
557,652
$
552,751
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
29,258
$
28,047
Accrued liabilities
25,558
34,842
Current portion of contingent
consideration
8,892
8,783
Other current liabilities
2,682
2,652
Total current liabilities
66,390
74,324
Long-term debt
49,798
25,000
Deferred income taxes
15,115
16,037
Contingent consideration
8,266
8,165
Other long-term liabilities
4,042
4,736
Total liabilities
143,611
128,262
Stockholders' equity
414,041
424,489
Total Liabilities and Stockholders'
Equity
$
557,652
$
552,751
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
Three Months Ended
Aug 31, 2022
Aug 31, 2021
(unaudited)
Cash flows from operating
activities:
Net loss
$
(13,004
)
$
(6,972
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
7,660
6,997
Non-cash lease expense
621
602
Stock based compensation
3,024
2,429
Change in fair value of contingent
consideration
211
195
Deferred income taxes
(907
)
(1,690
)
Change in accounts receivable
allowances
45
(44
)
Fixed and intangible asset impairments and
disposals
87
30
Other
(96
)
(46
)
Changes in operating assets and
liabilities:
Accounts receivable
(1,425
)
(36
)
Inventories
(6,238
)
(670
)
Prepaid expenses and other
(5,733
)
(3,354
)
Accounts payable, accrued and other
liabilities
(8,990
)
(6,345
)
Net cash used in operating
activities
(24,745
)
(8,904
)
Cash flows from investing
activities:
Additions to property, plant and
equipment
(809
)
(1,021
)
Additions to placement and evaluation
units
(2,227
)
(4,471
)
Acquisition of intangibles
(540
)
—
Cash paid in acquisition
—
(3,600
)
Net cash used in investing
activities
(3,576
)
(9,092
)
Cash flows from financing
activities:
Proceeds from borrowings on long-term
debt
70,000
5,000
Repayment of long-term debt
(45,000
)
—
Deferred financing costs on long-term
debt
(706
)
—
Proceeds from exercise of stock options
and employee stock purchase plan
82
446
Net cash provided by financing
activities
24,376
5,446
Effect of exchange rate changes on cash
and cash equivalents
(316
)
(139
)
Decrease in cash and cash
equivalents
(4,261
)
(12,689
)
Cash and cash equivalents at beginning of
period
28,825
48,161
Cash and cash equivalents at end of
period
$
24,564
$
35,472
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221006005261/en/
Investor: AngioDynamics, Inc. Stephen Trowbridge, Executive Vice
President & CFO (518) 795-1408
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