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 fourth quarter and fiscal year 2024,
which ended May 31, 2024.
Fiscal Year 2024 Fourth Quarter Highlights
Quarter Ended
May 31, 2024
Pro Forma* YoY Growth
Pro Forma* Net Sales
$71.1 million
1.9%
Med Tech Net Sales
$29.3 million
11.3%
Med Device Net Sales
$41.8 million
(3.8)%
- GAAP Gross margin of 54.3%
- GAAP loss per share of $(0.33)
- Adjusted loss per share of $(0.05)
- FDA 510(k) clearance and CE Mark approval for AlphaVac F18
System for the treatment of Pulmonary Embolism (PE)
- Subsequent to the end of the fiscal quarter, announced share
repurchase program for up to $15.0 million of its outstanding
common shares
Fiscal Year 2024 Highlights
Year Ended
May 31, 2024
Pro Forma* YoY Growth
Pro Forma* Net Sales
$270.7 million
5.3%
Med Tech Net Sales
$106.0 million
10.1%
Med Device Net Sales
$164.8 million
2.4%
- GAAP Gross margin of 50.9%
- Pro Forma gross margin of 53.8%
- GAAP** loss per share of $(4.59)
- Adjusted loss per share of $(0.45)
- Reached settlement agreement with Becton, Dickinson and C.R.
Bard, ending decade-long intellectual property litigation
- Initiated transition of manufacturing operations to a fully
outsourced model to drive efficiencies and cost savings
- Optimized Med Device business, including the divestiture of its
Dialysis and BioSentry businesses, as well as the PICC and Midline
product portfolios, and discontinued the sale of its RadioFrequency
products and Syntrax support catheter products
- In conjunction with divestitures, repaid all amounts
outstanding under its $50 million Credit Agreement
*“Pro forma” results exclude the Dialysis and BioSentry
businesses divested in June 2023 and the PICC and Midline product
portfolios divested in February 2024, as well as the discontinued
Radiofrequency and Syntrax products. “As Reported” results include
sales of the respective products prior to their divestiture or
discontinuance.
**GAAP Loss per share includes a $159.5 million goodwill
impairment and $19.3 million related to the previously announced
settlement of IP litigation.
“We capped off a transformative 2024 with a solid fourth
quarter, largely driven by a second straight quarter of
double-digit increases in our Med Tech business as Auryon and
NanoKnife, delivered strong revenue growth,” commented Jim Clemmer,
President and Chief Executive Officer of AngioDynamics, Inc.
“Within our Mechanical Thrombectomy segment, we achieved key
milestones by receiving both FDA 510(k) clearance and CE Marking
for AlphaVac in the treatment of pulmonary embolism. These
indications open up multiple large, fast-growing markets, and
helped to drive a more than 68% sequential increase in AlphaVac
revenue during the fourth quarter.”
Mr. Clemmer continued, “Over the last three years, AngioDynamics
has undergone a significant transformation to position ourselves
for long-term success. We now have an optimized, stable,
cash-generating Med Device business, which, in combination with the
strength of our balance sheet, allows us to aggressively pursue
large, fast-growing global market opportunities with our highly
innovative Med Tech portfolio to drive accelerated, profitable
growth moving forward.”
“We view 2025 as an inflection point in the trajectory of our
business. We expect to continue to deliver strong revenue growth
within our Med Tech business as we execute on key commercial
initiatives, including multiple significant international expansion
opportunities and the broader launch of AlphaVac for PE. The
increased scale of our Med Tech business, in combination with the
optimization of our Med Device business, will allow us to begin to
see increasing leverage as we exit the year. Operationally, we will
continue to work through the transition of our manufacturing model
to reduce overhead costs and improve margins in 2026 and
beyond.”
Fourth Quarter 2024 Financial Results
Unless otherwise noted, all financial results below are
presented on a pro forma basis excluding the Dialysis and BioSentry
businesses divested in June 2023, the PICC, Midline, and tip
location product portfolios divested in February 2024, and the
RadioFrequency and Syntrax support catheter products discontinued
in February 2024.
Net sales for the fourth quarter of fiscal year 2024 were $71.1
million, an increase of 1.9% 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 $29.3 million, an 11.3% increase from
$26.4 million in 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 $13.0
million, which increased 12.0%, NanoKnife disposable sales of $5.4
million, representing an increase of 18.0% compared to the fourth
quarter of fiscal 2023, and AlphaVac sales of $1.9 million, an
increase of 6.8% over the prior year.
Med Device net sales were $41.8 million, a decrease of 3.8%
compared to $43.4 million in the prior-year period.
U.S. net sales in the fourth quarter of fiscal 2024 were $60.8
million, an increase of 4.3% from $58.3 million a year ago.
International net sales were $10.3 million, a decrease of 9.9%,
compared to $11.5 million a year ago.
Gross margin for the fourth quarter of fiscal 2024 was 54.3%,
which was flat compared to the fourth quarter of fiscal 2023, but
up 320 basis points sequentially from 51.1% in the third quarter.
Gross margin for the Med Tech business was 64.1%, a decrease of 70
basis points from the fourth quarter of fiscal 2023 due to product
mix and increased hardware depreciation. Gross margin for the Med
Device business was 47.4%, a decrease of 60 basis points compared
to the fourth quarter of fiscal 2023 primarily due to retained
manufacturing overhead costs associated with the discontinuation of
certain Medical Device products.
The Company recorded a GAAP net loss of $13.4 million, or a loss
per share of $0.33, in the fourth quarter of fiscal 2024. Excluding
the items show in the non-GAAP reconciliation table below, adjusted
net loss for the fourth quarter of fiscal 2024 was $2.2 million, or
a loss per share of $0.05. This compares to an adjusted net loss
during the fiscal fourth quarter of 2023 of $4.3 million, or a loss
per share of $0.11.
Adjusted EBITDA in the fourth quarter of fiscal 2024, excluding
the items shown in the reconciliation table below, was $1.5
million, compared to $1.3 million in the fourth quarter of fiscal
2023.
In the fourth quarter of fiscal 2024, the Company generated $5.0
million in operating cash, which was inclusive of a $3 million
payment to Bard associated with the Company’s patent litigation
settlement.
Full-Year 2024 Financial Results
Unless otherwise noted, all financial results below are
presented on a pro forma basis excluding the Dialysis and BioSentry
businesses divested in June 2023, the PICC and Midline product
portfolios divested in February 2024, and the RadioFrequency and
Syntrax support catheter products discontinued in February
2024.
Net sales were $270.7 million, an increase of 5.3%, compared to
$257.2 million for the prior year period.
Med Tech net sales were $106.0 million, a 10.1% increase from
the prior year period. Med Device net sales were $164.8 million, an
increase of 2.4% from the prior year period.
Gross margin declined by 110 basis points to 53.8% from 54.9% a
year ago due to product and geographic mix, as well as retained
manufacturing overhead costs associated with the discontinuation of
certain Medical Device products.
The Company's GAAP net loss was $184.3 million, or a loss per
share of $4.59, compared to a net loss of $52.4 million, or a loss
per share of $1.33, a year ago. This includes a goodwill impairment
charge of $159.5 million, settlement charge of $19.3 million and
asset impairment charges totaling $6.8 million related to the
transition to outsourced manufacturing and discontinuation of
Syntrax.
Excluding the items shown in the non-GAAP reconciliation table
below, adjusted net loss was $18.2 million, with adjusted loss per
share of $0.45, compared to adjusted net loss of $21.8 million, or
adjusted loss per share of $0.55, a year ago.
Adjusted EBITDA, excluding the items shown in the reconciliation
table below, was a loss of $3.2 million, compared to a loss of $3.0
million for the prior year.
At May 31, 2024, the Company had $76.1 million in cash and cash
equivalents compared to $44.6 million, which included $50 million
of debt, at May 31, 2023. During the first fiscal quarter of 2024,
the Company repaid all amounts outstanding under its then existing
credit agreement, and currently has no long-term debt.
Pro Forma 2024 Performance
In addition to actual results, the tables accompanying this
press release reflect pro forma results, which exclude the Dialysis
and BioSentry businesses divested in June 2023, the PICC, Midline,
and tip location product portfolios divested in February 2024, and
the RadioFrequency and Syntrax support catheter products
discontinued in February 2024.
Fiscal Year 2025 Financial Guidance
For fiscal year 2025, the Company expects:
- Net sales to be in the range of $282 to $288 million,
representing growth of between 4.2% – 6.4% over fiscal 2024 pro
forma revenue of $270.7 million
- Med Tech net sales are expected to grow in the range of 10% to
12%
- Med Device net sales are expected to grow in the range of 1% to
3%
- Gross margin to be approximately 52% to 53%
- Adjusted EBITDA loss of $2.5 million to $0, compared to a pro
forma adjusted EBITDA loss of $3.2 million in fiscal 2024
- Adjusted loss per share in the range of $0.38 to $0.42,
compared to pro forma adjusted loss per share of $0.45 in fiscal
2024
Share Repurchase Program
Today, the Company announced that the Board of Directors has
approved a stock repurchase program authorizing the Company’s
management team to purchase up to $15.0 million of its outstanding
common shares.
The timing and amount of any share repurchases under the
authorization will be determined by management at its discretion
and based on market conditions and other considerations.
Q4 and Full Year 2024 Key Takeaways
AlphaVac F18 System Pulmonary Embolism (PE) Indication
Expansions
In April of fiscal 2024, the Company announced that the Food and
Drug Administration has cleared the AlphaVac F18 System for the
treatment of pulmonary embolism (PE), a condition affecting around
900,0001,2 people in the United States annually and the third
leading cause of cardiovascular mortality in the nation. The
expanded FDA indication allows for the utilization of the AlphaVac
F18 System in the non-surgical removal of thrombi or emboli from
the venous vasculature, reducing thrombus burden and improving
right ventricular function in patients with PE.
In May of fiscal 2024, the Company received CE Mark approval of
the AlphaVac F18 System for PE. The CE Mark allows AngioDynamics to
provide innovative solutions to more healthcare professionals
treating patients diagnosed with PE in the European Union (EU),
where an estimated 435,0003 PE events occur each year in the six
largest EU countries. Compared to the United States, the prevalence
of PE is higher for patients admitted to the emergency department
in Europe, and European patients also had higher acuity and worse
outcomes4.
For risk information, visit https://bit.ly/Angio-risk-info
Settlement Agreement with BD and Bard
In April of fiscal 2024, the Company reached a settlement
agreement with Becton, Dickinson and Company (BD) and C. R. Bard,
Inc. (Bard), putting an end to a decade-long intellectual property
litigation. With this resolution, the Company can now fully
dedicate its resources to delivering innovative medical technology
solutions and improving patient outcomes.
Initiated Transition of Manufacturing Operations to Fully
Outsourced Model
In January of fiscal 2024, the Company announced that it is
committed to shifting its manufacturing operations from a
company-owned facility in upstate New York to a fully outsourced
model over the next two years. This shift is expected to result in
an approximate $15 million annualized reduction in expenses by
fiscal year 2027.
Optimization of Med Device Business
In fiscal year 2024, the Company optimized its Med Device
business through the divestiture and discontinuation of a number of
non-core assets.
Sale of Dialysis Product Portfolio and BioSentry
Product
In June of fiscal 2024, the Company completed the sale of its
Dialysis product portfolio and BioSentry Tract Sealant System
Biopsy product to Merit Medical Systems, Inc. for $100 million in
cash.
Sale of PICC and Midline Product Portfolios
In February of fiscal 2024, the Company completed the sale of
its PICC and Midline product portfolios to Spectrum Vascular, for
up to $45 million in cash.
At the same time, the Company discontinued the sale of its
RadioFrequency products, as well as its Syntrax support catheter
products to further streamline its product portfolio.
Repaid $50 Million Credit Agreement, Eliminating All
Long-Term Debt
In June of fiscal 2024 and, in conjunction with receipt of
proceeds from the sale of its Dialysis product portfolio and
BioSentry product, the Company repaid all amounts outstanding under
its then existing $50.0 million Credit Agreement, fully eliminating
all long-term debt from its balance sheet.
Conference Call
The Company's management will host a conference call today at
8:00 a.m. ET to discuss its fourth quarter and fiscal year 2024
results.
To participate in the conference call, dial 1-877-407-0784
(domestic) or +1- 201-689-8560 (international) and refer to the
passcode 13747424.
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 12:00 p.m.
ET on Tuesday, July 16, 2024, until 11:59 p.m. ET on Tuesday, July
23, 2024. To hear this recording, dial 1-844-512-2921 (domestic) or
+1-412-317-6671 (international) and enter the passcode
13747424.
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 pro forma results, 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, 2023. 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
Three Months Ended
Actual (1)
Pro Forma Adjustments (2)
Pro Forma
As Reported (1)
Pro Forma Adjustments (2)
Pro Forma
May 31, 2024
May 31, 2024
May 31, 2024
May 31, 2023
May 31, 2023
May 31, 2023
(unaudited)
(unaudited)
Net sales
$
70,980
142
$
71,122
$
91,074
(21,305
)
$
69,769
Cost of sales (exclusive of intangible
amortization)
32,465
56
32,521
44,715
(12,836
)
31,879
Gross profit
38,515
86
38,601
46,359
(8,469
)
37,890
% of net sales
54.3
%
54.3
%
50.9
%
54.3
%
Operating expenses
Research and development
6,724
(1
)
6,723
7,860
(224
)
7,636
Sales and marketing
24,581
(17
)
24,564
26,293
(1,804
)
24,489
General and administrative
10,441
(7
)
10,434
10,228
51
10,279
Amortization of intangibles
2,574
—
2,574
4,406
(1,448
)
2,958
Goodwill impairment
—
—
—
14,549
—
14,549
Change in fair value of contingent
consideration
229
—
229
236
—
236
Acquisition, restructuring and other
items, net
8,415
(3
)
8,412
3,624
(368
)
3,256
Total operating expenses
52,964
(28
)
52,936
67,196
(3,793
)
63,403
Operating loss
(14,449
)
114
(14,335
)
(20,837
)
(4,676
)
(25,513
)
Interest income (expense), net
567
—
567
(901
)
—
(901
)
Other expense, net
(259
)
—
(259
)
(127
)
—
(127
)
Total other income (expense), net
308
—
308
(1,028
)
—
(1,028
)
Loss before income tax expense
(benefit)
(14,141
)
114
(14,027
)
(21,865
)
(4,676
)
(26,541
)
Income tax benefit
(692
)
—
(692
)
(398
)
—
(398
)
Net loss
$
(13,449
)
$
114
$
(13,335
)
$
(21,467
)
$
(4,676
)
$
(26,143
)
Loss per share
Basic
$
(0.33
)
$
(0.33
)
$
(0.54
)
$
(0.66
)
Diluted
$
(0.33
)
$
(0.33
)
$
(0.54
)
$
(0.66
)
Weighted average shares outstanding
Basic
40,427
40,427
39,608
39,608
Diluted
40,427
40,427
39,608
39,608
(1) Reflects the Company's US GAAP
consolidated financial statements before pro forma adjustments
related to the sale of the Dialysis and BioSentry Businesses, the
sale of the PICCs and Midlines Businesses and the discontinuation
of the RadioFrequency Ablation and Syntrax products ("the
Businesses") for the three months ended May 31, 2024 and May 31,
2023.
(2) Reflects the elimination of revenues
and expenses representing the operating results from the sales and
discontinuation of the Businesses.
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
CONSOLIDATED INCOME
STATEMENTS
(in thousands, except per share
data)
Twelve months ended
Twelve months ended
Actual (1)
Pro Forma Adjustments (2)
Pro Forma
As Reported (1)
Pro Forma Adjustments (2)
Pro Forma
May 31, 2024
May 31, 2024
May 31, 2024
May 31, 2023
May 31, 2023
May 31, 2023
(unaudited)
(unaudited)
Net sales
$
303,914
(33,193
)
$
270,721
$
338,752
(81,565
)
$
257,187
Cost of sales (exclusive of intangible
amortization)
149,216
(24,064
)
125,152
164,506
(48,540
)
115,966
Gross profit
154,698
(9,129
)
145,569
174,246
(33,025
)
141,221
% of net sales
50.9
%
53.8
%
51.4
%
54.9
%
Operating expenses
Research and development
31,512
(648
)
30,864
29,883
(615
)
29,268
Sales and marketing
102,818
(4,730
)
98,088
104,249
(6,109
)
98,140
General and administrative
41,164
(60
)
41,104
40,003
(1,190
)
38,813
Amortization of intangibles
13,048
(2,571
)
10,477
18,790
(5,790
)
13,000
Goodwill impairment
159,476
—
159,476
14,549
—
14,549
Change in fair value of contingent
consideration
432
—
432
2,320
—
2,320
Acquisition, restructuring and other
items, net
53,182
(6,397
)
46,785
15,633
(385
)
15,248
Total operating expenses
401,632
(14,406
)
387,226
225,427
(14,089
)
211,338
Gain on sale of assets
54,499
(54,499
)
—
—
—
—
Operating loss
(192,435
)
(49,222
)
(241,657
)
(51,181
)
(18,936
)
(70,117
)
Interest income (expense), net
1,614
—
1,614
(2,702
)
—
(2,702
)
Other expense, net
(817
)
—
(817
)
(554
)
—
(554
)
Total other income (expense), net
797
—
797
(3,256
)
—
(3,256
)
Loss before income tax expense
(benefit)
(191,638
)
(49,222
)
(240,860
)
(54,437
)
(18,936
)
(73,373
)
Income tax benefit
(7,289
)
—
(7,289
)
(1,995
)
—
(1,995
)
Net loss
$
(184,349
)
$
(49,222
)
$
(233,571
)
$
(52,442
)
$
(18,936
)
$
(71,378
)
Loss per share
Basic
$
(4.59
)
$
(5.81
)
$
(1.33
)
$
(1.81
)
Diluted
$
(4.59
)
$
(5.81
)
$
(1.33
)
$
(1.81
)
Weighted average shares outstanding
Basic
40,181
40,181
39,480
39,480
Diluted
40,181
40,181
39,480
39,480
(1) Reflects the Company's US GAAP
consolidated financial statements before pro forma adjustments
related to the sale of the Dialysis and BioSentry Businesses, the
sale of the PICCs and Midlines Businesses and the discontinuation
of the RadioFrequency Ablation and Syntrax products ("the
Businesses") for the twelve months ended May 31, 2024 and May 31,
2023.
(2) Reflects the elimination of revenues
and expenses representing the operating results from the sales and
discontinuation of the Businesses.
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 (Loss):
Three Months Ended
Twelve Months Ended
May 31, 2024
May 31, 2023
May 31, 2024
May 31, 2023
(unaudited)
(unaudited)
Net loss
$
(13,449
)
$
(21,467
)
$
(184,349
)
$
(52,442
)
Amortization of intangibles
2,574
4,406
13,048
18,790
Goodwill impairment
—
14,549
159,476
14,549
Change in fair value of contingent
consideration
229
236
432
2,320
Acquisition, restructuring and other
items, net (1)
8,415
3,624
53,182
15,633
Gain on sale of assets
—
—
(54,499
)
—
Tax effect of non-GAAP items (2)
(20
)
(617
)
(2,689
)
(1,272
)
Adjusted net income (loss)
$
(2,251
)
$
731
$
(15,399
)
$
(2,422
)
Reconciliation of Diluted Loss Per
Share to non-GAAP Adjusted Diluted Earnings (Loss) Per
Share:
Three Months Ended
Twelve Months Ended
May 31, 2024
May 31, 2023
May 31, 2024
May 31, 2023
(unaudited)
(unaudited)
Diluted loss per share
$
(0.33
)
$
(0.54
)
$
(4.59
)
$
(1.33
)
Amortization of intangibles
0.06
0.11
0.32
0.48
Goodwill impairment
—
0.37
3.98
0.37
Change in fair value of contingent
consideration
0.01
0.01
0.01
0.06
Acquisition, restructuring and other
items, net (1)
0.20
0.09
1.33
0.39
Gain on sale of assets
—
—
(1.36
)
—
Tax effect of non-GAAP items (2)
—
(0.02
)
(0.07
)
(0.03
)
Adjusted diluted earnings (loss) per
share
$
(0.06
)
$
0.02
$
(0.38
)
$
(0.06
)
Adjusted diluted sharecount (3)
40,427
39,916
40,181
39,480
(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 May 31, 2024 and
May 31, 2023.
(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
Twelve Months Ended
May 31, 2024
May 31, 2023
May 31, 2024
May 31, 2023
(unaudited)
(unaudited)
Net loss
$
(13,449
)
$
(21,467
)
$
(184,349
)
$
(52,442
)
Income tax benefit
(692
)
(398
)
(7,289
)
(1,995
)
Interest expense, net
(567
)
901
(1,614
)
2,702
Depreciation and amortization
6,817
7,506
27,712
30,681
Goodwill impairment
—
14,549
159,476
14,549
Change in fair value of contingent
consideration
229
236
432
2,320
Stock based compensation
1,896
2,981
10,529
11,158
Gain on sale of assets
—
—
(54,499
)
—
Acquisition, restructuring and other
items, net (1)
7,148
3,624
50,780
15,633
Adjusted EBITDA
$
1,382
$
7,932
$
1,178
$
22,606
Per diluted share:
Adjusted EBITDA
$
0.03
$
0.20
$
0.03
$
0.57
(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
GAAP TO NON-GAAP
RECONCILIATION
(in thousands, except per share
data)
Reconciliation of Pro Forma Net Loss to
Pro Forma Adjusted Net Loss:
Pro Forma
Pro Forma
Three Months Ended
Twelve Months Ended
May 31, 2024
May 31, 2023
May 31, 2024
May 31, 2023
(unaudited)
(unaudited)
Pro forma net loss
$
(13,335
)
$
(26,143
)
$
(233,571
)
$
(71,378
)
Amortization of intangibles
2,574
2,958
10,477
13,000
Goodwill impairment
—
14,549
159,476
14,549
Change in fair value of contingent
consideration
229
236
432
2,320
Acquisition, restructuring and other
items, net (1)
8,412
3,256
46,785
15,248
Tax effect of non-GAAP items (2)
(45
)
877
(1,840
)
4,504
Adjusted pro forma net loss
$
(2,165
)
$
(4,267
)
$
(18,241
)
$
(21,757
)
Reconciliation of Pro Forma Diluted
Loss Per Share to Pro Forma Adjusted Diluted Loss Per
Share:
Pro Forma
Pro Forma
Three Months Ended
Twelve Months Ended
May 31, 2024
May 31, 2023
May 31, 2024
May 31, 2023
(unaudited)
(unaudited)
Pro forma diluted loss per share
$
(0.33
)
$
(0.66
)
$
(5.81
)
$
(1.81
)
Amortization of intangibles
0.06
0.07
0.26
0.33
Goodwill impairment
—
0.37
3.97
0.38
Change in fair value of contingent
consideration
0.01
0.01
0.01
0.06
Acquisition, restructuring and other
items, net (1)
0.21
0.08
1.17
0.38
Tax effect of non-GAAP items (2)
—
0.02
(0.05
)
0.11
Adjusted pro forma diluted loss per
share
$
(0.05
)
$
(0.11
)
$
(0.45
)
$
(0.55
)
Adjusted diluted sharecount (3)
40,427
39,608
40,181
39,480
(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 May 31, 2024 and
May 31, 2023.
(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 Pro Forma Net Loss to
Pro Forma Adjusted EBITDA:
Pro Forma
Pro Forma
Three Months Ended
Twelve Months Ended
May 31, 2024
May 31, 2023
May 31, 2024
May 31, 2023
(unaudited)
(unaudited)
Pro forma net loss
$
(13,335
)
$
(26,143
)
$
(233,571
)
$
(71,378
)
Income tax benefit
(692
)
(398
)
(7,289
)
(1,995
)
Interest income (expense), net
(567
)
901
(1,614
)
2,702
Depreciation and amortization
6,817
6,008
25,051
24,688
Goodwill impairment
—
14,549
159,476
14,549
Change in fair value of contingent
consideration
229
236
432
2,320
Stock based compensation
1,895
2,910
9,898
10,864
Acquisition, restructuring and other
items, net (1)
7,145
3,256
44,382
15,248
Pro forma adjusted EBITDA
$
1,492
$
1,319
$
(3,235
)
$
(3,002
)
Per diluted share:
Adjusted EBITDA
$
0.04
$
0.03
$
(0.08
)
$
(0.08
)
(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
ACQUISITION, RESTRUCTURING,
AND OTHER ITEMS, NET DETAIL
(in thousands)
Three Months Ended
Twelve Months Ended
(in thousands)
May 31, 2024
May 31, 2023
May 31, 2024
May 31, 2023
Legal (1)
$
4,489
$
3,099
$
34,942
$
9,998
Mergers and acquisitions (2)
—
368
399
368
Transition service agreement (3)
(437
)
—
(1,092
)
—
Plant Closure (4)
3,366
—
9,481
—
Manufacturing Relocation (5)
—
29
587
1,091
Intangible and other asset impairment
(6)
—
—
6,260
—
Israeli Innovation Authority prepayment
(7)
—
—
—
3,544
Other (8)
997
128
2,605
632
Total
$
8,415
$
3,624
$
53,182
$
15,633
(1) Legal expenses related to litigation
that is outside the normal course of business. In the third quarter
of fiscal year 2024 a $19.3 million settlement expense was recorded
as a result of the Settlement Agreement that was entered into
between the Company and BD.
(2) Mergers and acquisitions expenses
related to investment banking, legal and due diligence.
(3) Transition services agreement that
were entered into with Merit and Spectrum.
(4) Plant closure expense, related to the
restructuring of our manufacturing footprint which was announced on
January 5, 2024.
(5) Expenses to relocate manufacturing
lines out of Queensbury, NY.
(6) An impairment of $3.4 million on
intangible and fixed assets and an inventory write-off of $2.9
million was taken in the third quarter of fiscal year 2024 relating
to the abandonment of the Syntrax and RF product lines.
(7) In the first quarter of fiscal year
2023, a $3.5 million payment was made to the Israeli Innovation
Authority to fully satisfy the obligation related to grant funds
that were provided to Eximo for development of the Auryon laser
prior to the acquisition in the second quarter of fiscal year
2020.
(8) Included in the $2.6 million in other
for the year ended May 31, 2024 is $0.9 million of deferred
financing fees that were written-off in conjunction with the sale
of the Dialysis and BioSentry businesses and concurrent
extinguishment of the debt.
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY
AND BY GEOGRAPHY
(in thousands)
Three Months Ended
Three Months Ended
Actual (1)
Pro Forma
Adj. (2)
Pro Forma
As
Reported (1)
Pro Forma
Adj. (2)
Pro Forma
Actual
Pro Forma
May 31, 2024
May 31, 2024
May 31, 2024
May 31, 2023
May 31, 2023
May 31, 2023
% Growth
Currency Impact
Constant Currency Growth
% Growth
Currency Impact
Constant Currency Growth
(unaudited)
(unaudited)
Net Sales
Med Tech
$
29,335
$
—
$
29,335
$
26,494
$
(148
)
$
26,346
10.7
%
11.3
%
Med Device
41,645
142
41,787
64,580
(21,157
)
43,423
(35.5
)%
(3.8
)%
$
70,980
$
142
$
71,122
$
91,074
$
(21,305
)
$
69,769
(22.1
)%
0.0
%
(22.1
)%
1.9
%
0.0
%
1.9
%
Net Sales
United States
$
60,743
$
61
$
60,804
$
74,439
$
(16,121
)
$
58,318
(18.4
)%
4.3
%
International
10,237
81
10,318
16,635
(5,184
)
11,451
(38.5
)%
0.0
%
(38.5
)%
(9.9
)%
$
70,980
$
142
$
71,122
$
91,074
$
(21,305
)
$
69,769
(22.1
)%
0.0
%
(22.1
)%
1.9
%
0.0
%
1.9
%
(1) Reflects the Company's US GAAP
consolidated financial statements before pro forma adjustments
related to the sale of the Dialysis and BioSentry Businesses, the
sale of the PICCs and Midlines Businesses and the discontinuation
of the RadioFrequency Ablation and Syntrax products ("the
Businesses") for the three months ended May 31, 2024 and May 31
2023.
(2) Reflects the elimination of revenues
and expenses representing the operating results from the sales and
discontinuation of the Businesses.
GROSS PROFIT BY PRODUCT
CATEGORY
(in thousands)
Three Months Ended
Three Months Ended
Actual (1)
Pro Forma
Adj. (2)
Pro Forma
As Reported (1)
Pro Forma
Adj. (2)
Pro Forma
Actual
Pro Forma
May 31, 2024
May 31, 2024
May 31, 2024
May 31, 2023
May 31, 2023
May 31, 2023
% Change
% Change
(unaudited)
(unaudited)
Med Tech
$
18,798
$
6
$
18,804
$
17,150
$
(82
)
$
17,068
9.6
%
10.2
%
Gross profit % of sales
64.1
%
64.1
%
64.7
%
64.8
%
Med Device
$
19,717
$
80
$
19,797
$
29,209
$
(8,387
)
$
20,822
(32.5
)%
(4.9
)%
Gross profit % of sales
47.3
%
47.4
%
45.2
%
48.0
%
Total
$
38,515
$
86
$
38,601
$
46,359
$
(8,469
)
$
37,890
(16.9
)%
1.9
%
Gross profit % of sales
54.3
%
54.3
%
50.9
%
54.3
%
(1) Reflects the Company's US GAAP
consolidated financial statements before pro forma adjustments
related to the sale of the Dialysis and BioSentry Businesses, the
sale of the PICCs and Midlines Businesses and the discontinuation
of the RadioFrequency Ablation and Syntrax products ("the
Businesses") for the three months ended May 31, 2024 and May 31,
2023.
(2) Reflects the elimination of revenues
and expenses representing the operating results from the sales and
discontinuation of the Businesses.
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY
AND BY GEOGRAPHY
(in thousands)
Twelve Months Ended
Twelve Months Ended
Actual (1)
Pro Forma
Adj. (2)
Pro Forma
As
Reported (1)
Pro Forma
Adj. (2)
Pro Forma
Actual
Pro Forma
May 31, 2024
May 31, 2024
May 31, 2024
May 31, 2023
May 31, 2023
May 31, 2023
% Growth
Currency Impact
Constant Currency Growth
% Growth
Currency Impact
Constant Currency Growth
(unaudited)
(unaudited)
Net Sales
Med Tech
$
106,403
$
(443
)
$
105,960
$
96,687
$
(450
)
$
96,237
10.0
%
10.1
%
Med Device
197,511
(32,750
)
164,761
242,065
(81,115
)
160,950
(18.4
)%
2.4
%
$
303,914
$
(33,193
)
$
270,721
$
338,752
$
(81,565
)
$
257,187
(10.3
)%
0.0
%
(10.3
)%
5.3
%
0.0
%
5.3
%
Net Sales
United States
$
251,486
$
(23,037
)
$
228,449
$
282,713
$
(62,617
)
$
220,096
(11.0
)%
3.8
%
International
52,428
(10,156
)
42,272
56,039
(18,948
)
37,091
(6.4
)%
0.0
%
(6.4
)%
14.0
%
$
303,914
$
(33,193
)
$
270,721
$
338,752
$
(81,565
)
$
257,187
(10.3
)%
0.0
%
(10.3
)%
5.3
%
0.0
%
5.3
%
(1) Reflects the Company's US GAAP
consolidated financial statements before pro forma adjustments
related to the sale of the Dialysis and BioSentry Businesses, the
sale of the PICCs and Midlines Businesses and the discontinuation
of the RadioFrequency Ablation and Syntrax products ("the
Businesses") for the twelve months ended May 31, 2024 and May 31
2023.
(2) Reflects the elimination of revenues
and expenses representing the operating results from the sales and
discontinuation of the Businesses.
GROSS PROFIT BY PRODUCT
CATEGORY
(in thousands)
Twelve Months Ended
Twelve Months Ended
Actual (1)
Pro Forma
Adj. (2)
Pro Forma
As Reported (1)
Pro Forma
Adj. (2)
Pro Forma
Actual
Pro Forma
May 31, 2024
May 31, 2024
May 31, 2024
May 31, 2023
May 31, 2023
May 31, 2023
% Change
% Change
(unaudited)
(unaudited)
Med Tech
$
67,198
$
(167
)
$
67,031
$
61,966
$
(234
)
$
61,732
8.4
%
8.6
%
Gross profit % of sales
63.2
%
63.3
%
64.1
%
64.1
%
Med Device
$
87,500
$
(8,962
)
$
78,538
$
112,280
$
(32,791
)
$
79,489
(22.1
)%
(1.2
)%
Gross profit % of sales
44.3
%
47.7
%
46.4
%
49.4
%
Total
$
154,698
$
(9,129
)
$
145,569
$
174,246
$
(33,025
)
$
141,221
(11.2
)%
3.1
%
Gross profit % of sales
50.9
%
53.8
%
51.4
%
54.9
%
(1) Reflects the Company's US GAAP
consolidated financial statements before pro forma adjustments
related to the sale of the Dialysis and BioSentry Businesses, the
sale of the PICCs and Midlines Businesses and the discontinuation
of the RadioFrequency Ablation and Syntrax products ("the
Businesses") for the twelve months ended May 31, 2024 and May 31,
2023.
(2) Reflects the elimination of revenues
and expenses representing the operating results from the sales and
discontinuation of the Businesses.
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(in thousands)
May 31, 2024
May 31, 2023
(unaudited)
(audited)
Assets
Current assets:
Cash and cash equivalents
$
76,056
$
44,620
Accounts receivable, net
43,610
52,826
Inventories
60,616
55,325
Prepaid expenses and other
12,971
4,617
Current assets held for sale
—
6,154
Total current assets
193,253
163,542
Property, plant and equipment, net
35,666
44,384
Other assets
11,369
10,676
Intangible assets, net
77,383
111,144
Goodwill
—
159,238
Non-current assets held for sale
—
43,653
Total assets
$
317,671
$
532,637
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
37,751
$
40,445
Accrued liabilities
41,098
26,617
Current portion of contingent
consideration
4,728
14,761
Other current liabilities
7,578
2,002
Total current liabilities
91,155
83,825
Long-term debt, net of current portion
—
49,818
Deferred income taxes
4,852
12,813
Contingent consideration, net of current
portion
—
4,535
Other long-term liabilities
16,078
3,350
Total liabilities
112,085
154,341
Stockholders' equity
205,586
378,296
Total Liabilities and Stockholders'
Equity
$
317,671
$
532,637
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
Three Months Ended
Twelve Months Ended
May 31, 2024
May 31, 2023
May 31, 2024
May 31, 2023
(unaudited)
(unaudited)
(audited)
Cash flows from operating
activities:
Net loss
$
(13,449
)
$
(21,467
)
$
(184,349
)
$
(52,442
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
6,817
7,557
27,712
30,873
Non-cash lease expense
490
601
1,931
2,484
Goodwill impairment
—
14,549
159,476
14,549
Stock based compensation
1,896
2,981
10,529
11,158
Gain on disposition
—
—
(54,499
)
—
Transaction costs for disposition
—
—
(5,084
)
—
Change in fair value of contingent
consideration
229
236
432
2,320
Deferred income tax provision
(825
)
(558
)
(7,968
)
(2,311
)
Change in accounts receivable
allowances
319
135
1,326
695
Asset impairments and disposals
24
147
7,108
291
Write-off of other assets
—
—
869
—
Other
(223
)
(197
)
(62
)
(513
)
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable
5,549
(2,058
)
7,894
(1,299
)
Inventories
(2,585
)
4,056
(9,410
)
(8,198
)
Prepaid expenses and other
(4,028
)
724
(11,594
)
332
Accounts payable, accrued and other
liabilities
10,787
9,248
27,531
2,139
Net cash provided by (used in)
operating activities
5,001
15,954
(28,158
)
78
Cash flows from investing
activities:
Additions to property, plant and
equipment
(566
)
(1,056
)
(2,518
)
(3,812
)
Additions to placement and evaluation
units
(1,770
)
(472
)
(5,015
)
(5,394
)
Proceeds from sale of assets
—
—
134,500
—
Acquisition of intangibles
—
—
(3,250
)
(540
)
Net cash (used in) provided by
investing activities
(2,336
)
(1,528
)
123,717
(9,746
)
Cash flows from financing
activities:
Proceeds from issuance of long-term
debt
—
—
—
70,000
Repayment of long-term debt
—
—
(50,000
)
(45,000
)
Deferred financing costs on long-term
debt
—
—
—
(751
)
Payment of acquisition related contingent
consideration
(5,000
)
—
(15,000
)
—
Proceeds from exercise of stock options
and employee stock purchase plan
—
—
752
1,171
Net cash (used in) provided by
financing activities
(5,000
)
—
(64,248
)
25,420
Effect of exchange rate changes on cash
and cash equivalents
(60
)
83
125
43
Increase (decrease) in cash and cash
equivalents
(2,395
)
14,509
31,436
15,795
Cash and cash equivalents at beginning of
period
78,451
30,111
44,620
28,825
Cash and cash equivalents at end of
period
$
76,056
$
44,620
$
76,056
$
44,620
1.
Learn About Pulmonary Embolism. Lung.org.
http://www.lung.org/lung-health-diseases/lung-disease-lookup/pulmonary-embolism/learn-about-pulmonary-embolism.
Published 2023.
2.
Giri J, Sista AK, Weinberg I, et al.
Interventional Therapies for Acute Pulmonary Embolism: Current
Status and Principles for The Development Of Novel Evidence: A
Scientific Statement From The American Heart Association.
Circulation 2019;140(20)e774-e801.
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