AngioDynamics Reports Financial Results for Fiscal 2009 Second Quarter
Net Sales Increase 17% to $48.5 Million Net Income of $2.9 Million and EPS of $0.12 (Non GAAP) EBITDA of $7.8 Million or $0.32 Per Share First IRE NanoKnife™ Sales Recorded Conference Call Begins Today at 4:30 p.m. Eastern Time
Net sales in the fiscal second quarter were
per share in the fiscal second quarter, compared with
For the six months ended
In fiscal 2009,
“Our second quarter results illustrate the benefit of our diverse
product offering,” said
Highlights of the quarter and more recent activities include the following:
-
Substantial progress in integrating the acquired
Diomed business into the Peripheral Vascular business unit. The entire Peripheral Vascular sales force has been trained on the VenaCure EVLT product line and kit sales were extremely strong in the quarter. Laser sales were below expectations, as prospective customers remain cautious. Occupancy costs inCambridge, England were lowered 35% through relocation to smaller premises. -
The Company’s first commercial sale of NanoKnife probes, contributed
$42,000 to second quarter sales. -
Continued positive clinical uses of NanoKnife, as five sites in the
USA ,Australia ,Germany andItaly have completed a total of 35 IRE procedures for percutaneous prostate, percutaneous and laparoscopic liver, kidney, lymph node, and lung lesions as of the date of this release. The physicians performing the percutaneous IRE procedures have all reported NanoKnife IRE system ease of use, rapid radiographic lesion resolution, and short procedure times required compared to other focal therapies. Most patients treated have also commented on a distinct lack of, or very minimal, pain, especially when compared to previous thermal focal therapy treatments.
Additional shipments of NanoKnife IRE systems to hospitals in theUSA ,Australia ,Italy andGermany under the Company’s program to place systems with 25 key thought leaders, including 5 of the top 10 cancer centers in theUSA . This brings the number of systems shipped to key thought leaders from various clinical specialties to 19. Two of these sites have also completed pre-clinical pancreatic IRE safety studies.
Receipt of CE Mark approval for both NanoKnife IRE electrode models has enabled the sale of NanoKnife IRE systems within theEuropean Union . TGA and HPB approvals forAustralia andCanada , respectively, are pending.
The Company reported cash and investments at
Fiscal 2009 Guidance
The Company has updated its outlook for fiscal 2009 incorporating first half financial performance as well as the overall current economic environment. The Company now expects the following financial results for the fiscal year, with reference to previous guidance:
-
Net sales in the range of
$198 to $203 million (a decrease of$5 million ) - Gross margin in the range of 61-62% (an increase of 1%)
-
GAAP operating income in the range of
$19-21 million (a decrease of$1-2 million )
EBITDA in the range of$31 - $33 million (a decrease of$1-2 million )-
GAAP EPS in the range of
$0.45 to $0.50 , inclusive of additional operating expenses of$0.05 per share associated with the CEO transition and non-operating expenses of$0.03 per share as a result of the impact of the interest rate swap and foreign exchange losses (versus approximately$0.55 per share).
Conference Call
In addition, individuals can listen to the call on the Internet by
visiting the investor relations portion of the Company's website at http://investor.angiodynamics.com.
To listen to the live call, please go to the website 15 minutes prior to
its start to register, download, and install the necessary audio
software.
A replay will be available on the website. A telephone replay will be
available from
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 the Company’s 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, the Company has reported non-GAAP EBITDA, (earnings before interest, taxes, depreciation and amortization), and EBITDA 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 the Company’s performance over different periods, particularly when comparing this period to periods in which the Company did not incur any expenses relating to these activities or items. By using these non-GAAP measures, management believes that investors get a better picture of the performance of the Company’s underlying business. Management encourages investors to review the Company’s financial results prepared in accordance with GAAP to understand the Company’s performance taking into account all relevant factors, including those that may only occur from time to time but have a material impact on the Company’s financial results. Please see the tables that follow for a reconciliation of GAAP to non-GAAP measures.
About
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,” 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 the Company’s expectations. Factors that may affect the
actual results achieved by the Company include, without limitation, the
ability of the Company to develop its existing and new products, future
actions by the
In
ANGIODYNAMICS, INC. AND SUBSIDIARIES |
||||||||||||||||||
CONSOLIDATED INCOME STATEMENTS | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||
Nov 30, | Nov 30, | Nov 30, | Nov 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
Net sales | $ | 48,464 | $ | 41,497 | $ | 92,787 | $ | 79,023 | ||||||||||
Cost of sales | 18,771 | 16,042 | 35,637 |
|
31,067 | |||||||||||||
Gross profit | 29,693 | 25,455 | 57,150 |
|
47,956 | |||||||||||||
% of net sales | 61.3 | % | 61.3 | % | 61.6 | % | 60.7 | % | ||||||||||
|
||||||||||||||||||
Operating expenses | ||||||||||||||||||
Research and development | 4,425 | 3,694 | 8,387 | 6,405 | ||||||||||||||
Sales and marketing | 13,993 | 11,267 | 27,084 | 21,815 | ||||||||||||||
General and administrative | 4,143 | 4,063 | 8,474 | 8,195 | ||||||||||||||
Amortization of intangibles | 2,242 |
|
1,641 | 4,493 | 3,229 | |||||||||||||
Total operating expenses | 24,803 | 20,665 | 48,438 | 39,644 |
||||||||||||||
Operating income | 4,890 | 4,790 | 8,712 | 8,312 | ||||||||||||||
Other income (expense), net | (500 |
) | 163 | (751 | ) | 450 | ||||||||||||
Income before income taxes | 4,390 | 4,953 | 7,961 | 8,762 | ||||||||||||||
Provision for income taxes | 1,483 | 1,853 | 2,843 | 3,282 |
||||||||||||||
Net income | $ | 2,907 | $ | 3,100 |
$ | 5,118 | $ |
5,480 | ||||||||||
Earnings per common share | ||||||||||||||||||
Basic | $ | 0.12 | $ | 0.13 | $ | 0.21 | $ | 0.23 | ||||||||||
Diluted | $ | 0.12 | $ | 0.13 | $ | 0.21 | $ | 0.23 | ||||||||||
Weighted average common shares | ||||||||||||||||||
Basic | 24,362 | 24,034 | 24,330 | 24,002 | ||||||||||||||
Diluted | 24,563 |
24,365 |
24,536 |
24,315 |
ANGIODYNAMICS, INC. AND SUBSIDIARIES |
||||||||||||||
CONSOLIDATED INCOME STATEMENTS | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
Reconciliation of Operating Income to non-GAAP EBITDA: |
||||||||||||||
Three months ended |
Six months ended | |||||||||||||
Nov 30, | Nov 30, | Nov 30, | Nov 30, | |||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||
(unaudited) | (unaudited) | |||||||||||||
Operating income | $ | 4,890 | $ |
4,790 | $ | 8,712 | $ | 8,312 | ||||||
Amortization of intangibles | 2,242 | 1,641 | 4,493 | 3,229 | ||||||||||
Depreciation |
|
636 | 590 | 1,289 |
1,094 | |||||||||
EBITDA | $ | 7,768 | $ | 7,021 | $ | 14,494 | $ | 12,635 | ||||||
EBITDA per common share | ||||||||||||||
Basic | $ | 0.32 | $ | 0.29 | $ | 0.60 | $ | 0.53 | ||||||
Diluted | $ | 0.32 | $ | 0.29 | $ | 0.59 | $ | 0.52 | ||||||
Weighted average common shares | ||||||||||||||
Basic | 24,362 | 24,034 |
24,330 | 24,002 | ||||||||||
Diluted | 24,563 |
24,365 | 24,536 | 24,315 |
ANGIODYNAMICS, INC. AND SUBSIDIARIES |
|||||||||||||||
NET SALES BY BUSINESS UNIT AND BY GEOGRAPHY | |||||||||||||||
(in thousands) | |||||||||||||||
|
|||||||||||||||
Three months ended | Six months ended | ||||||||||||||
Nov 30, | Nov 30, |
Nov 30, | Nov 30, |
||||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Net Sales by Business Unit | |||||||||||||||
Peripheral Vascular | $ | 21,770 | $ | 16,386 | $ | 40,204 | $ | 30,473 | |||||||
Access | 16,069 | 15,694 | 31,755 | 30,476 | |||||||||||
Oncology/Surgery | 10,625 |
9,417 | 20,828 | 18,074 | |||||||||||
Total | $ | 48,464 | $ | 41,497 | $ | 92,787 | $ | 79,023 | |||||||
Net Sales by Geography | |||||||||||||||
United States | $ | 42,927 | $ | 37,588 | $ | 82,188 | $ | 71,596 | |||||||
International | 5,537 | 3,909 | 10,599 | 7,427 | |||||||||||
Total | $ | 48,464 | $ | 41,497 | $ | 92,787 | $ | 79,023 |
ANGIODYNAMICS, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||||
(in thousands) | ||||||||||||
|
||||||||||||
Nov 30, | May 31, | |||||||||||
2008 | 2008 | |||||||||||
(unaudited) | (2) |
|||||||||||
Assets | ||||||||||||
Current Assets | ||||||||||||
Cash and cash equivalents | $ | 19,734 | $ | 32,040 | ||||||||
Restricted cash | - |
68 | ||||||||||
Marketable securities | 38,108 |
46,182 | ||||||||||
Total cash and investments | 57,842 | 78,290 | ||||||||||
Receivables, net | 25,733 | 26,642 | ||||||||||
Inventories, net | 28,584 | 22,901 | ||||||||||
Deferred income taxes | 8,610 | 10,902 | ||||||||||
Prepaid expenses and other |
|
3,354 | 3,147 | |||||||||
Total current assets | 124,123 | 141,882 | ||||||||||
Property, plant and equipment, net | 22,715 | 21,163 | ||||||||||
Intangible assets, net | 70,548 | 71,311 | ||||||||||
Goodwill | 164,540 | 162,707 |
||||||||||
Deferred income taxes | 7,094 | 6,860 | ||||||||||
Other non-current assets | 3,931 | 4,824 |
|
|||||||||
Total Assets | $ | 392,951 |
$ | 408,747 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current portion of long-term debt | $ | 315 | $ | 10,040 | ||||||||
Contractual payments on acquisition of business, net | 4,751 | 9,625 | ||||||||||
Other current liabilities | 17,418 | 19,537 | ||||||||||
Litigation provision | - |
6,757 | ||||||||||
Long-term debt, net of current portion | 6,930 |
|
7,075 | |||||||||
Total Liabilities | 29,414 | 53,034 | ||||||||||
Stockholders' equity | 363,537 |
355,713 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 392,951 | $ | 408,747 | ||||||||
Shares outstanding | 24,363 | 24,268 | ||||||||||
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES |
||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(in thousands) | ||||||||||||||
Six months ended |
||||||||||||||
Nov 30, | Nov 30, | |||||||||||||
2008 | 2007 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 5,118 | $ | 5,480 | ||||||||||
Depreciation and amortization | 5,782 | 4,323 | ||||||||||||
Tax effect of exercise of stock options | (74 | ) | 186 | |||||||||||
Deferred income taxes | 2,234 | 2,105 | ||||||||||||
Stock-based compensation | 2,460 | 2,546 | ||||||||||||
Other | 714 | 291 | ||||||||||||
Changes in operating assets and liabilities | ||||||||||||||
Receivables | 2,010 | (1,626 | ) | |||||||||||
Inventories | (3,176 | ) | (19 | ) | ||||||||||
Accounts payable and accrued liabilities |
(1,322 |
) | (901 |
) | ||||||||||
Litigation provision | (6,757 | ) | 241 | |||||||||||
Other |
(892 |
) | (2,347 | ) | ||||||||||
Net cash provided by operating activities | 6,097 |
|
10,279 | |||||||||||
Cash flows from investing activities: |
||||||||||||||
Additions to property, plant and equipment | (2,459 | ) | (3,554 | ) | ||||||||||
Acquisition of intangible assets and business | (15,180 | ) | (2,488 | ) | ||||||||||
Change in restricted cash | 68 | (9,409 | ) | |||||||||||
Purchases, sales and maturities of marketable securities, net |
|
8,023 | (1,983 | ) | ||||||||||
Net cash used in investing activities | (9,548 | ) | (17,434 | ) |
||||||||||
Cash flows from financing activities: | ||||||||||||||
Repayment of long-term debt | (9,870 | ) | (145 | ) | ||||||||||
Proceeds from exercise of stock options and ESPP | 1,145 | 1,721 | ||||||||||||
Other | - |
|
25 | |||||||||||
Net cash (used in) provided by financing activities | (8,725 |
) | 1,601 | |||||||||||
Effect of exchange rate changes on cash |
(130 | ) |
|
- | ||||||||||
Decrease in cash and cash equivalents | (12,306 | ) | (5,554 | ) | ||||||||||
Cash and cash equivalents |
||||||||||||||
Beginning of period | 32,040 | 28,313 |
||||||||||||
End of period | $ | 19,734 |
|
$ | 22,759 |
Source:
AngioDynamics, Inc.
D. Joseph Gersuk, CFO,
800-772-6446 ext. 1608
jgersuk@AngioDynamics.com
or
EVC
Group, Inc.
Doug Sherk, 415-896-6820 (Investor Relations)
dsherk@evcgroup.com
Jenifer
Kirtland, 415-896-6820 (Investor Relations)
jkirtland@evcgroup.com
Steve
DiMattia, 646-201-5445 (Media)
sdimattia@evcgroup.com