AngioDynamics Reports 2014 Fourth Quarter and Full Year Financial Results
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Fourth Quarter of Fiscal 2014 Net sales increased 4% to
$94.1 million ; Average Daily Sales grew 7%, excluding supply agreement -
Q4 FY14 GAAP loss of
$0.03 per share; Non-GAAP adjusted net income, excluding amortization, of$0.18 per share -
Q4 FY14 Operating cash flow of
$10.1 million - Company introduces financial guidance for FY2015
"The strong top-line performance generated throughout fiscal year 2014 continued in the fourth quarter. We experienced a 7% increase in Average Daily Sales (ADS), excluding revenue from the Boston Scientific agreement, driving us to a fifth consecutive quarter of improved sales results," said
"Having achieved our goal of mid-single digit annual sales growth for fiscal 2014, we are well positioned for continued strong top-line performance as we enter fiscal 2015,"
Q4 FY14 Financial Results
Net sales of
Peripheral Vascular net sales in the fourth quarter increased 6% to
The Company's net loss in the fourth quarter was
Fourth quarter EBITDA grew to
At
Recent Events
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Novation awarded
AngioDynamics an Innovative Technology Contract covering BioFlo PICC and BioFlo Port products. Unlike other thromboresistant products, the technology behind the Company's disruptive BioFlo devices is designed to be both present throughout the entire catheter and permanent, leading to decreased accumulation of catheter-related thrombus without incorporation of heparin, antibiotics or antimicrobials, or any other transient materials typically associated with coated or impregnated technologies. -
The Company received Certificate to Foreign Governments (CFGs) from the
U.S. Food and Drug Administration covering all Vascular Access and Peripheral Vascular products manufactured in itsQueensbury facility. CFGs allow for the commercialization of these products in countries that require a U.S. FDA CFG, along with other appropriate regulatory documentation specific to the country. -
AngioDynamics announcedFDA clearance for the Celerity tip location system and began shipping to U.S. customers inmid-July 2014 . The Celerity System has been cleared by theFDA as an adjunct to aid in positioning Peripherally Inserted Central Catheters (PICCs) in adults by providing real time catheter tip location utilizing the patient's cardiac electrical activity. -
Howard W. Donnelly , President ofConcert Medical LLC , was named Chairman ofAngioDynamics' Board of Directors. -
Following the completion of its
New York Distribution Center of Excellence ,AngioDynamics began construction of itsNew York Manufacturing Center of Excellence , as part of its Operational Excellence program that is expected to save the Organization$15 million to$18 million over the next three years. -
The Company received Premier Inc.'s first Supplier Horizon Award presented at Premier's annual
Breakthroughs Conference and Exhibition inSan Antonio . The Company was recognized in the Nursing category based on exceptional local customer service and engagement, value creation through clinical excellence and commitment to lower costs.
Full Year Financial Results
As part of the fiscal year-end financial closing process, the Company identified an immaterial accounting error resulting from the ERP implementation in January 2014. The Company has concluded that this error was not material to its previously issued consolidated financial statements and has revised its previously reported results for the third quarter fiscal 2014 to correct this error. As a result, the Company's fiscal 2014 third quarter financial results were revised downward by
For the full year ended
Fiscal 2015 and First Quarter Guidance
"Building on our improved sales performance throughout 2014, we are guiding to a full fiscal year range of
"We anticipate revenue to range from
Conference Call
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
About
Trademarks
Safe Harbor
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding
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| CONSOLIDATED INCOME STATEMENTS | ||||
| (in thousands, except per share data) | ||||
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| 2014 | 2013 | 2014 | 2013 | |
| (unaudited) | (unaudited) | |||
| Net sales | $ 94,065 | $ 90,032 | $ 354,455 | $ 342,026 |
| Cost of sales | ||||
| Acquired inventory step-up | -- | -- | 150 | 3,845 |
| Quality call to action | -- | -- | -- | 850 |
| Other cost of sales | 46,534 | 45,790 | 174,444 | 168,342 |
| Total cost of sales | 46,534 | 45,790 | 174,594 | 173,037 |
| Gross profit | 47,531 | 44,242 | 179,861 | 168,989 |
| % of net sales | 50.5% | 49.1% | 50.7% | 49.4% |
| Operating expenses | ||||
| Research and development | 6,753 | 6,438 | 27,510 | 26,319 |
| Sales and marketing | 21,464 | 20,387 | 83,200 | 76,121 |
| General and administrative | 6,939 | 6,273 | 26,035 | 26,127 |
| Amortization of intangibles | 3,926 | 4,384 | 16,797 | 16,345 |
| Medical device tax | 874 | 917 | 3,829 | 1,600 |
| Change in fair value of contingent consideration | 763 | 756 | (1,718) | 1,583 |
| Acquisition and other non-recurring | 3,063 | 3,857 | 10,760 | 13,800 |
| Total operating expenses | 43,782 | 43,012 | 166,413 | 161,895 |
| Operating income | 3,749 | 1,230 | 13,448 | 7,094 |
| Other income (expense), net | (1,478) | (2,030) | (7,068) | (7,737) |
| Income (loss) before income taxes | 2,271 | (800) | 6,380 | (643) |
| Provision for (benefit from) income taxes | 3,349 | 68 | 3,292 | (31) |
| Net income (loss) | $ (1,078) | $ (868) | $ 3,088 | $ (612) |
| Earnings (loss) per common share | ||||
| Basic | $ (0.03) | $ (0.02) | $ 0.09 | $ (0.02) |
| Diluted | $ (0.03) | $ (0.02) | $ 0.09 | $ (0.02) |
| Weighted average common shares | ||||
| Basic | 35,278 | 34,906 | 35,136 | 34,817 |
| Diluted | 35,278 | 34,906 | 35,440 | 34,817 |
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| GAAP TO NON-GAAP RECONCILIATION | ||||
| (in thousands, except per share data) | ||||
| Reconciliation of Net Income to non-GAAP Adjusted Net Income: | ||||
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| 2014 | 2013 | 2014 | 2013 | |
| (unaudited) | (unaudited) | |||
| Net income (loss) | $ (1,078) | $ (868) | $ 3,088 | $ (612) |
| After tax: | ||||
| Acquisition and other non-recurring (1) | 3,292 | 2,809 | 8,446 | 8,967 |
| Quality Call to Action Program (2) | -- | -- | -- | 540 |
| Inventory step-up (3) | -- | -- | 95 | 2,442 |
| Contingent earn out valuation (4) | 485 | 480 | (2,914) | 1,005 |
| Impact of NYS tax reform legislation (5) | 1,173 | -- | 1,173 | -- |
| Amortization of intangibles | 2,493 | 2,783 | 10,666 | 10,380 |
| Adjusted net income excluding amortization | $ 6,365 | $ 5,205 | $ 20,555 | $ 22,721 |
| Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share: | ||||
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| 2014 | 2013 | 2014 | 2013 | |
| (unaudited) | (unaudited) | |||
| Diluted earnings (loss) per share | $ (0.03) | $ (0.02) | $ 0.09 | $ (0.02) |
| After tax: | ||||
| Acquisition and other non-recurring (1) | 0.09 | 0.08 | 0.24 | 0.25 |
| Quality Call to Action Program (2) | 0.00 | 0.00 | 0.00 | 0.02 |
| Inventory step-up (3) | 0.00 | 0.00 | 0.00 | 0.07 |
| Contingent earn out valuation (4) | 0.01 | 0.01 | (0.08) | 0.03 |
| Impact of NYS tax reform legislation (5) | 0.03 | 0.00 | 0.03 | 0.00 |
| Amortization of intangibles | 0.07 | 0.08 | 0.30 | 0.29 |
| Adjusted diluted earnings per share excluding amortization | $ 0.18 | $ 0.15 | $ 0.58 | $ 0.64 |
| Weighted average common shares | ||||
| Assumes Diluted | 35,653 | 35,409 | 35,440 | 35,354 |
| (1) Includes costs relating to acquisitions, debt financing, business restructuring, litigation and facility consolidation costs. | ||||
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(2) Direct costs of implementing a comprehensive Quality Call to Action program to review and augment the quality management systems at our |
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| (3) Amortization of basis step-up of acquired inventory. | ||||
| (4) Impact of revaluation of contingent earn outs related to acquisitions. | ||||
| (5) Impact of deferred tax assets eliminated based on NYS tax reform package in our fourth quarter fiscal 2014. | ||||
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| GAAP TO NON-GAAP RECONCILIATION (Continued) | ||||
| (in thousands, except per share data) | ||||
| Reconciliation of Net Income to EBITDA and Adjusted EBITDA: | ||||
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| 2014 | 2013 | 2014 | 2013 | |
| (unaudited) | (unaudited) | |||
| Net income (loss) | $ (1,078) | $ (868) | $ 3,088 | $ (612) |
| Provision for (benefit from) income taxes | 3,349 | 68 | 3,292 | (31) |
| Other income (expense), net | 1,478 | 2,030 | 7,068 | 7,737 |
| Amortization of intangibles | 3,926 | 4,384 | 16,797 | 16,345 |
| Depreciation | 2,214 | 2,269 | 8,103 | 8,879 |
| EBITDA | 9,889 | 7,883 | 38,348 | 32,318 |
| Acquisition and other non-recurring (1) | 2,687 | 3,857 | 10,004 | 13,800 |
| Stock-based compensation | 1,390 | 1,237 | 5,412 | 4,609 |
| Quality Call to Action Program (2) | -- | -- | -- | 850 |
| Inventory step-up (3) | -- | -- | 150 | 3,845 |
| Contingent earn out revaluation (4) | 763 | 756 | (1,718) | 1,583 |
| Adjusted EBITDA | $ 14,729 | $ 13,733 | $ 52,196 | $ 57,005 |
| EBITDA per common share | ||||
| Assumes Diluted | $ 0.28 | $ 0.22 | $ 1.08 | $ 0.91 |
| Adjusted EBITDA per common share | ||||
| Assumes Diluted | $ 0.41 | $ 0.39 | $ 1.47 | $ 1.61 |
| Reconciliation of Operating Income to non-GAAP Adjusted Operating Income: | ||||
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| 2014 | 2013 | 2014 | 2013 | |
| (unaudited) | (unaudited) | |||
| Operating income (loss) | $ 3,749 | $ 1,230 | $ 13,448 | $ 7,094 |
| Acquisition and other non-recurring (1) | 3,063 | 3,857 | 10,760 | 13,800 |
| Quality Call to Action Program (2) | -- | -- | -- | 850 |
| Inventory step-up (3) | -- | -- | 150 | 3,845 |
| Contingent earn out revaluation (4) | 763 | 756 | (1,718) | 1,583 |
| Amortization of intangibles | 3,926 | 4,384 | 16,797 | 16,345 |
| Adjusted Operating income | $ 11,501 | $ 10,227 | $ 39,437 | $ 43,517 |
| (1) Includes costs relating to acquisitions, debt financing, business restructuring, litigation and facility consolidation costs (operating income adjusted includes accelerated depreciation). | ||||
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(2) Direct costs of implementing a comprehensive Quality Call to Action program to review and augment the quality management systems at our |
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| (3) Amortization of basis step-up of acquired inventory. | ||||
| (4) Impact of revaluation of contingent earn outs related to acquisitions. | ||||
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| PRELIMINARY NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY | ||||||
| (unaudited in thousands) | ||||||
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| 2014 | 2013 | Growth | 2014 | 2013 | Growth | |
| Net Sales by Product Category | ||||||
| Peripheral Vascular | $ 50,912 | $ 48,007 | 6% | $ 192,655 | $ 179,683 | 7% |
| Vascular Access | 28,282 | 26,957 | 5% | 106,395 | 106,690 | (0%) |
| Oncology/Surgery | 13,668 | 13,467 | 1% | 49,360 | 47,155 | 5% |
| Total Excluding Supply Agreement | 92,862 | 88,431 | 5% | 348,410 | 333,528 | 4% |
| Supply Agreement | 1,203 | 1,601 | (25%) | 6,045 | 8,498 | (29%) |
| Total | $ 94,065 | $ 90,032 | 4% | $ 354,455 | $ 342,026 | 4% |
| Net Sales by Geography | ||||||
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$ 73,701 | $ 69,656 | 6% | $ 280,192 | $ 266,338 | 5% |
| International | 19,161 | 18,775 | 2% | 68,218 | 67,190 | 2% |
| Supply Agreement | 1,203 | 1,601 | (25%) | 6,045 | 8,498 | (29%) |
| Total | $ 94,065 | $ 90,032 | 4% | $ 354,455 | $ 342,026 | 4% |
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| CONSOLIDATED BALANCE SHEETS | ||
| (in thousands) | ||
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May 31, | |
| 2014 | 2013 | |
| (unaudited) | (unaudited) | |
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $ 16,105 | $ 21,802 |
| Marketable securities | 1,809 | 2,153 |
| Total cash and investments | 17,914 | 23,955 |
| Receivables, net | 62,155 | 47,791 |
| Inventories, net | 61,056 | 55,062 |
| Deferred income taxes | 4,626 | 6,591 |
| Prepaid income taxes | 510 | 438 |
| Prepaid expenses and other | 5,975 | 7,679 |
| Total current assets | 152,236 | 141,516 |
| Property, plant and equipment, net | 67,208 | 62,650 |
| Intangible assets, net | 205,256 | 214,848 |
| Goodwill | 360,294 | 355,458 |
| Deferred income taxes | 9,766 | 11,007 |
| Other non-current assets | 5,397 | 6,105 |
| Total Assets | $ 800,157 | $ 791,584 |
| Liabilities and Stockholders' Equity | ||
| Current portion of long-term debt | $ 5,000 | $ 7,500 |
| Current portion of contingent consideration | 16,341 | 9,207 |
| Other current liabilities | 50,903 | 46,730 |
| Total current liabilities | 72,244 | 63,437 |
| Long-term debt, net of current portion | 137,660 | 135,000 |
| Contingent consideration, net of current portion | 51,130 | 65,842 |
| Other long-term liabilities | 1,230 | 475 |
| Total Liabilities | 262,264 | 264,754 |
| Stockholders' equity | 537,893 | 526,830 |
| Total Liabilities and Stockholders' Equity | $ 800,157 | $ 791,584 |
| Shares outstanding | 35,442 | 35,060 |
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| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
| (in thousands) | ||||
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| 2014 | 2013 | 2014 | 2013 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Cash flows from operating activities: | ||||
| Net income (loss) | $ (1,078) | $ (868) | $ 3,088 | $ (612) |
| Depreciation and amortization | 6,140 | 6,653 | 24,900 | 25,224 |
| Change in fair value of contingent consideration | 763 | 756 | (1,718) | 1,583 |
| Tax effect of exercise of stock options | -- | (1,222) | (146) | (1,644) |
| Deferred income taxes | 950 | (2,408) | 3,169 | 1,011 |
| Stock-based compensation | 1,390 | 1,237 | 5,412 | 4,609 |
| Amortization of inventory step-up | -- | -- | 150 | 3,845 |
| Other | 219 | 129 | 450 | 862 |
| Changes in operating assets and liabilities | ||||
| Receivables | (5,170) | (2,478) | (14,863) | 1,479 |
| Inventories | (1,222) | 7,399 | (5,447) | (1,909) |
| Accounts payable and accrued liabilities | 4,136 | 95 | 7,252 | (10,039) |
| Other | 3,980 | 2,076 | 3,037 | 2,474 |
| Net cash provided by (used in) operating activities | 10,108 | 11,369 | 25,284 | 26,883 |
| Cash flows from investing activities: | ||||
| Additions to property, plant and equipment | (2,768) | (4,412) | (11,771) | (12,120) |
| Acquisition of businesses, net of cash acquired | -- | -- | (4,169) | (25,274) |
| Other cash flows from investing activities | (1,255) | -- | (1,435) | 3,301 |
| Purchases, sales and maturities of marketable securities, net | -- | -- | 328 | 11,855 |
| Net cash provided by (used in) investing activities | (4,023) | (4,412) | (17,047) | (22,238) |
| Cash flows from financing activities: | ||||
| Repayment of long-term debt | (1,250) | (1,875) | (146,250) | (7,500) |
| Proceeds from issuance of new debt and credit line borrowings | 5,000 | -- | 146,410 | -- |
| Payment of Contingent Consideration | (1,346) | -- | (15,943) | -- |
| Deferred financing costs of long-term debt | -- | -- | (677) | -- |
| Proceeds from exercise of stock options and ESPP | 235 | 118 | 2,443 | 1,214 |
| Net cash provided by (used in) financing activities | 2,639 | (1,757) | (14,017) | (6,286) |
| Effect of exchange rate changes on cash | (1) | (23) | 83 | (65) |
| Increase (Decrease) in cash and cash equivalents | 8,723 | 5,177 | (5,697) | (1,706) |
| Cash and cash equivalents | ||||
| Beginning of period | 7,382 | 16,625 | 21,802 | 23,508 |
| End of period | $ 16,105 | $ 21,802 | $ 16,105 | $ 21,802 |
CONTACT: Company Contact:
AngioDynamics Inc. Mark Frost , CFO
(800) 772-6446 x1981
mfrost@AngioDynamics.com
Investor Relations Contacts:
EVC Group, Inc. Michael Polyviou /Robert Jones
(212) 850-6020; (646) 201-5447
mpolyviou@evcgroup.com; bjones@evcgroup.com
Media Contact:
EVC Group, Inc. Dave Schemelia
(646) 201-5431
dave@evcgroup.com
Source: News Provided by Acquire Media