AngioDynamics Reports Fiscal 2019 Fourth Quarter and Full-Year Financial Results

July 10, 2019
PDF Version

Fiscal 2019 Fourth Quarter Highlights

  • Net sales of $96.3 million, an increase of 9.0% year over year and 5.2% organically
  • Gross margin of 53.6%, flat year-over-year
  • GAAP EPS of $1.54 per share; adjusted EPS of $0.25 per share
  • Completed sale of NAMIC Fluid Management business to Medline Industries
  • Enrolled first patient in NanoKnife® DIRECT Clinical Study for the treatment of stage III pancreatic cancer
  • Received approval to initiate pilot study for the use of NanoKnife to treat prostate cancer

Full-Year 2019 Highlights

  • Net sales of $359.5 million, an increase of 4.4% year over year and 1.6% organically
  • Gross margin of 53.4%, an increase of 200 basis points year over year
  • GAAP EPS of $1.61 per share; adjusted EPS of $0.83 per share
  • Operating cash flow of $37.4 million; free cash flow of $34.3 million

LATHAM, N.Y.--(BUSINESS WIRE)--Jul. 10, 2019-- AngioDynamics, Inc. (NASDAQ: ANGO), a leading provider of innovative, minimally invasive medical devices for vascular access, peripheral vascular disease, and oncology, today announced financial results for the fourth quarter of fiscal year 2019, which ended May 31, 2019.

“Fiscal year 2019 was an exciting and transformative year for AngioDynamics. I am very pleased with our fourth quarter and full-year performance, as we achieved solid revenue growth and continued to implement meaningful operational improvements,” commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “During the quarter, we strengthened our balance sheet and made significant progress towards our long-term portfolio management goals through the sale of our NAMIC Fluid Management business, setting us on a path towards becoming a leaner, more innovation-focused company. We also made significant strides with our NanoKnife platform, enrolling the first patient in our DIRECT study for pancreatic cancer and receiving FDA approval to initiate a pilot study for the treatment of prostate cancer. I am extremely proud of all of the members of our AngioDynamics team for their hard work during the year, and I look forward to sustaining and growing this momentum throughout fiscal year 2020.”

Fourth Quarter 2019 Financial Results

Net sales for the fourth quarter of fiscal 2019 were $96.3 million, an increase of 9.0%, compared to $88.3 million a year ago. Foreign currency translation did not have a significant impact on the Company’s sales in the quarter.

  • Oncology net sales were $15.3 million, an increase of 26.5% from $12.1 million a year ago. Strong sales of Solero, along with the recent BioSentry and RadiaDyne acquisitions, more than offset lower NanoKnife capital sales during the quarter.
  • Vascular Interventions and Therapies net sales were $56.2 million, an increase of 6.9%, compared to $52.6 million a year ago, as strong growth in AngioVac and our Core product line offerings was partially offset by a decline in the Venous Insufficiency business.
  • Vascular Access net sales were $24.8 million, an increase of 4.9% from $23.7 million a year ago, driven by higher sales of midlines, ports and dialysis.

U.S. net sales in the fourth quarter of fiscal 2019 were $73.4 million, an increase of 4.4% from $70.3 million a year ago, and International net sales were $22.9 million, an increase of 27.0% from $18.0 million a year ago.

Gross margin for the fourth quarter of fiscal 2019 was 53.6%, roughly flat compared to the year ago quarter as improvements in net productivity and higher volume were offset by negative impacts of price and product mix.

The Company recorded net income of $58.9 million, or $1.54 per share, in the fourth quarter of fiscal 2019. This compares to net income of approximately $2.1 million, or $0.06 per share, a year ago. Net income was favorably impacted in the fourth quarter of fiscal 2019 by the gain on the sale of the NAMIC fluid management business of $46.6 million.

Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income for the fourth quarter of fiscal 2019 was $9.6 million, or $0.25 per share, compared to adjusted net income of $7.7 million, or $0.20 per share, in the fourth quarter of fiscal 2018.

Adjusted EBITDAS in the fourth quarter of fiscal 2019, excluding the items shown in the reconciliation table below, was $17.6 million, compared to $15.6 million in the fourth quarter of fiscal 2018.

In the fourth quarter of fiscal 2019, the Company generated $25.0 million in operating cash flow and had capital expenditures of $0.9 million. As of May 31, 2019, the Company had $227.6 million in cash and cash equivalents and $132.5 million in debt, excluding the impact of deferred financing costs.

Full-Year 2019 Financial Results

For the twelve months ended May 31, 2019:

  • Net sales were $359.5 million, an increase of 4.4%, compared to $344.3 million for the same period a year ago.
  • The Company's net income was $61.3 million, or $1.61 per share, compared to net income of $16.3 million, or $0.44 per share, a year ago.
  • Gross margin improved 200 basis points to 53.4% from 51.4% a year ago.
  • Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income was $31.6 million, or $0.83 per share, compared to adjusted net income of $27.6 million, or $0.74 per share, a year ago.
  • Adjusted EBITDAS, excluding the items shown in the reconciliation table below, was $61.5 million, compared to $57.0 million for the same period a year ago.

Pro Forma 2019 Performance

In addition to actual results, the tables accompanying this press release reflect pro forma results, which exclude the full-year impact of the NAMIC Fluid Management business that was divested on May 31, 2019.

Fiscal Year 2020 Financial Guidance

The Company expects its fiscal year 2020 net sales to be in the range of $280 to $286 million and adjusted earnings per share in the range of $0.25 to $0.30. Additionally, the Company expects gross margin to be in the range of 58% to 59%.

Conference Call

The Company’s management will host a conference call today at 8:00 a.m. ET to discuss its fiscal fourth quarter and full-year 2019 results.

To participate in the conference call, dial 1-877-407-0784 (domestic) or 1-201-689-8560 (international) and refer to the passcode 13691777.

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 10, 2019, until 11:59 p.m. ET on Wednesday, July 17, 2019. To hear this recording, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and enter the passcode 13691777.

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 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, peripheral vascular disease, and oncology. AngioDynamics’ diverse product lines include market-leading ablation 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 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, 2018. 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

 

Pro Forma
Adjustments

 

Pro Forma

 

Actual

 

Pro Forma
Adjustments

 

Pro Forma

May 31,

 

May 31,

 

May 31,

 

May 31,

 

May 31,

 

May 31,

2019

 

2019

 

2019

 

2018

 

2018

 

2018

(unaudited)

 

(unaudited)

 
Net sales

$ 96,300

$ (25,118)

$ 71,182

$ 88,317

$ (22,124)

$ 66,193

Cost of sales (exclusive of intangible amortization)

44,695

(14,844)

29,851

40,850

(13,276)

27,574

Gross profit

51,605

(10,274)

41,331

47,467

(8,848)

38,619

% of net sales

53.6%

40.9%

58.1%

53.7%

40.0%

58.3%

 
Operating expenses
Research and development

7,200

(308)

6,892

6,454

(286)

6,168

Sales and marketing

21,843

(1,068)

20,775

20,898

(1,059)

19,839

General and administrative

8,561

(73)

8,488

7,946

(69)

7,877

Amortization of intangibles

5,126

(669)

4,457

4,202

(683)

3,519

Change in fair value of contingent consideration

(7,641)

-

(7,641)

32

-

32

Acquisition, restructuring and other items, net

5,427

-

5,427

3,500

-

3,500

Total operating expenses

40,516

(2,118)

38,398

43,032

(2,097)

40,935

Operating income

11,089

(8,156)

2,933

4,435

(6,751)

(2,316)

Interest expense, net

(1,410)

-

(1,410)

(839)

-

(839)

Other income (expense), net

46,457

(46,592)

(135)

(269)

-

(269)

Total other expense, net

45,047

(46,592)

(1,545)

(1,108)

-

(1,108)

Income before income taxes

56,136

(54,748)

1,388

3,327

(6,751)

(3,424)

Income tax expense (benefit)

(2,737)

1,372

(1,365)

1,225

(2,166)

(941)

Net income

$ 58,873

$ (56,120)

$ 2,753

$ 2,102

$ (4,585)

$ (2,483)

 
Earnings per share net income
Basic

$ 1.57

$ 0.07

$ 0.06

$ (0.07)

Diluted

$ 1.54

$ 0.07

$ 0.06

$ (0.07)

 
Weighted average shares outstanding
Basic

37,599

37,599

37,203

37,203

Diluted

38,285

38,285

37,747

37,203

 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
 
 
 

Twelve months ended

 

Twelve months ended

Actual

 

Pro Forma
Adjustments

 

Pro Forma

 

 

Actual

 

Pro Forma
Adjustments

 

Pro Forma

 

May 31,

 

May 31,

 

May 31,

 

 

May 31,

 

May 31,

 

May 31,

 

2019

 

2019

 

2019

 

 

2018

 

2018

 

2018

 

(unaudited)

 

(unaudited)

 
Net sales

$ 359,484

$ (88,850)

$ 270,634

$ 344,285

$ (82,630)

$ 261,655

Cost of sales (exclusive of intangible amortization)

167,612

(52,978)

114,634

167,410

(49,611)

117,799

Gross profit

191,872

(35,872)

156,000

176,875

(33,019)

143,856

% of net sales

53.4%

40.4%

57.6%

51.4%

40.0%

55.0%

 
Operating expenses
Research and development

29,435

(1,177)

28,258

25,459

(1,121)

24,338

Sales and marketing

80,958

(4,129)

76,829

77,276

(4,167)

73,109

General and administrative

35,173

(271)

34,902

31,265

(274)

30,991

Amortization of intangibles

19,772

(2,716)

17,056

16,635

(2,729)

13,906

Change in fair value of contingent consideration

(6,776)

-

(6,776)

250

-

250

Acquisition, restructuring and other items, net

15,127

-

15,127

15,432

-

15,432

Total operating expenses

173,689

(8,293)

165,396

166,317

(8,291)

158,026

Operating income

18,183

(27,579)

(9,396)

10,558

(24,728)

(14,170)

Interest expense, net

(5,099)

-

(5,099)

(3,062)

-

(3,062)

Other income (expense), net

46,385

(46,592)

(207)

(31)

-

(31)

Total other expense, net

41,286

(46,592)

(5,306)

(3,093)

-

(3,093)

Income before income taxes

59,469

(74,171)

(14,702)

7,465

(24,728)

(17,263)

Income tax expense (benefit)

(1,871)

(1,685)

(3,556)

(8,870)

(2,166)

(11,036)

Net income

$ 61,340

$ (72,486)

$ (11,146)

$ 16,335

$ (22,562)

$ (6,227)

 
Earnings per share net income
Basic

$ 1.64

$ (0.30)

$ 0.44

$ (0.17)

Diluted

$ 1.61

$ (0.30)

$ 0.44

$ (0.17)

 
Weighted average shares outstanding
Basic

37,485

37,485

37,075

37,075

Diluted

38,147

37,485

37,539

37,075

 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
 
 
 
 
Reconciliation of Net Income to non-GAAP Adjusted Net Income:
Actual Actual
Three months ended Twelve months ended
May 31, May 31, May 31, May 31,

2019

2018

2019

2018

(unaudited) (unaudited)
 
Net income

$ 58,873

$ 2,102

$ 61,340

$ 16,335

 
Amortization of intangibles

5,126

4,202

19,772

16,635

Change in fair value of contingent consideration

(7,641)

32

(6,776)

250

Acquisition, restructuring and other items, net (1)

5,427

3,500

15,127

15,432

Gain on divestiture

(46,592)

-

(46,592)

-

Tax effect of non-GAAP items (2)

(5,602)

(2,162)

(11,301)

(21,051)

Adjusted net income

$ 9,591

$ 7,674

$ 31,570

$ 27,601

 
 
Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
Actual Actual
Three months ended Twelve months ended
May 31, May 31, May 31, May 31,

2019

2018

2019

2018

(unaudited) (unaudited)
 
Diluted earnings per share

$ 1.54

$ 0.06

$ 1.61

$ 0.44

 
Amortization of intangibles

0.13

0.11

0.52

0.44

Change in fair value of contingent consideration

(0.20)

0.00

(0.18)

0.01

Acquisition, restructuring and other items, net (1)

0.14

0.09

0.40

0.41

Gain on divestiture

(1.21)

-

(1.22)

-

Tax effect of non-GAAP items (2)

(0.15)

(0.06)

(0.30)

(0.56)

Adjusted diluted earnings per share

$ 0.25

$ 0.20

$ 0.83

$ 0.74

 
 
Adjusted diluted share count

38,285

37,747

38,147

37,539

 

(1) Includes costs related to merger and acquisition activities, restructurings, 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 May 31, 2019. For May 31, 2018, the effective tax rate 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%; ii) excludes the benefit recorded in Q3 fiscal 2018 resulting from remeasurement of the Company's 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
(in thousands, except per share data)
 
 
 
 
Reconciliation of Net Income to non-GAAP Adjusted Net Income:
Pro Forma Pro Forma
Three months ended Twelve months ended
May 31, May 31, May 31, May 31,

2019

2018

2019

2018

(unaudited) (unaudited)
 
Net income

$ 2,753

$ (2,483)

$ (11,146)

$ (6,227)

 
Amortization of intangibles

4,457

3,519

17,056

13,906

Change in fair value of contingent consideration

(7,641)

32

(6,776)

250

Acquisition, restructuring and other items, net (1)

5,427

3,500

15,127

15,432

Tax effect of non-GAAP items (2)

(2,200)

(2,052)

(6,018)

(14,810)

Adjusted net income

$ 2,796

$ 2,516

$ 8,243

$ 8,551

 
 
Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
Pro Forma Pro Forma
Three months ended Twelve months ended
May 31, May 31, May 31, May 31,

2019

2018

2019

2018

(unaudited) (unaudited)
 
Diluted earnings per share

$ 0.07

$ (0.07)

$ (0.30)

$ (0.17)

 
Amortization of intangibles

0.12

0.09

0.45

0.37

Change in fair value of contingent consideration

(0.20)

0.00

(0.18)

0.01

Acquisition, restructuring and other items, net (1)

0.14

0.10

0.40

0.41

Tax effect of non-GAAP items (2)

(0.06)

(0.05)

(0.15)

(0.39)

Adjusted diluted earnings per share

$ 0.07

$ 0.07

$ 0.22

$ 0.23

 
 
Adjusted diluted share count

38,285

37,747

38,147

37,539

 

(1) Includes costs related to merger and acquisition activities, restructurings, 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 May 31, 2019. For May 31, 2018, the effective tax rate 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%; ii) excludes the benefit recorded in Q3 fiscal 2018 resulting from remeasurement of the Company's 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:
Actual Actual
Three months ended Twelve months ended
May 31, May 31, May 31, May 31,

2019

 

2018

 

2019

 

2018

(unaudited) (unaudited)
 
Net income

$ 58,873

$ 2,102

$ 61,340

$ 16,335

 
Income tax expense (benefit)

(2,737)

1,225

(1,871)

(8,870)

Interest expense, net

1,410

839

5,099

3,062

Depreciation and amortization

6,722

5,768

25,880

23,163

Stock-based compensation

2,130

2,091

9,249

7,912

EBITDAS

$ 66,398

$ 12,025

$ 99,697

$ 41,602

 
Change in fair value of contingent consideration

$ (7,641)

$ 32

$ (6,776)

$ 250

Acquisition, restructuring and other items, net (1) (2)

5,427

3,500

15,127

15,156

Gain on divestiture

(46,592)

-

(46,592)

-

Adjusted EBITDAS

$ 17,592

$ 15,557

$ 61,456

$ 57,008

 
Per diluted share:
EBITDAS

$ 1.73

$ 0.32

$ 2.61

$ 1.11

Adjusted EBITDAS

$ 0.46

$ 0.41

$ 1.61

$ 1.52

 

(1) Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items.

(2) Excludes depreciation expense captured in the depreciation and amortization component of the reconciliation.

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:
Pro Forma Pro Forma
Three months ended Twelve months ended
May 31, May 31, May 31, May 31,

2019

 

2018

 

2019

 

2018

(unaudited) (unaudited)
 
Net income

$ 2,753

$ (2,483)

$(11,146)

$ (6,227)

 
Income tax expense (benefit)

(1,365)

(941)

(3,556)

(11,036)

Interest expense, net

1,410

839

5,099

3,062

Depreciation and amortization

5,830

4,864

22,598

19,868

Stock-based compensation

2,123

2,091

9,218

7,912

EBITDAS

$ 10,751

$ 4,370

$ 22,213

$ 13,579

 
Change in fair value of contingent consideration

$ (7,641)

$ 32

$ (6,776)

$ 250

Acquisition, restructuring and other items, net (1) (2)

5,427

3,500

15,127

15,156

Adjusted EBITDAS

$ 8,537

$ 7,902

$ 30,564

$ 28,985

 
Per diluted share:
EBITDAS

$ 0.28

$ 0.12

$ 0.58

$ 0.36

Adjusted EBITDAS

$ 0.22

$ 0.21

$ 0.80

$ 0.77

 

(1) Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain 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
(in thousands)
 
 
 
Three months ended Three months ended Actual Pro Forma
Actual Pro Forma
Adjustments		 Pro Forma Actual Pro Forma
Adjustments		 Pro Forma Currency Constant Currency Constant
May 31, May 31, May 31, May 31, May 31, May 31, % Impact Currency % Impact Currency

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

Growth

 

(Pos) Neg

 

Growth

 

Growth

 

(Pos) Neg

 

Growth

(unaudited) (unaudited)
 
Net Sales by Product Category
Vascular Interventions and Therapies

$

56,206

$

(25,118

)

$

31,088

$

52,583

$

(22,124

)

$

30,459

6.9

%

2.1

%

Vascular Access

 

24,826

 

-

 

 

24,826

 

23,669

 

-

 

 

23,669

4.9

%

4.9

%

Oncology

 

15,268

 

-

 

 

15,268

 

12,065

 

-

 

 

12,065

26.5

%

26.5

%

Total

$

96,300

$

(25,118

)

$

71,182

$

88,317

$

(22,124

)

$

66,193

9.0

%

1.0

%

9.5

%

7.5

%

0.0

%

8.2

%

 
Net Sales by Geography
United States

$

73,423

$

(17,643

)

$

55,780

$

70,307

$

(16,211

)

$

54,096

4.4

%

0.0

%

4.4

%

3.1

%

0.0

%

3.1

%

International

 

22,877

 

(7,475

)

 

15,402

 

18,010

 

(5,913

)

 

12,097

27.0

%

2.0

%

29.3

%

27.3

%

4.0

%

30.7

%

Total

$

96,300

$

(25,118

)

$

71,182

$

88,317

$

(22,124

)

$

66,193

9.0

%

1.0

%

9.5

%

7.5

%

0.0

%

8.2

%

 
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(in thousands)
 
 
 

Twelve months ended

Twelve months ended

Actual

Pro Forma

Actual

Pro Forma
Adjustments

Pro Forma

Actual

Pro Forma
Adjustments

Pro Forma

 

Currency

Constant

 

Currency

Constant

May 31,

May 31,

May 31,

May 31,

May 31,

May 31,

%

Impact

Currency

%

Impact

Currency

2019

2019

2019

2018

2018

2018

Growth

(Pos) Neg

Growth

Growth

(Pos) Neg

Growth

(unaudited) (unaudited)
 
Net Sales by Product Category
Vascular Interventions and Therapies

$

208,751

$

(88,850

)

$

119,901

$

202,334

$

(82,630

)

$

119,704

3.2

%

0.2

%

Vascular Access

 

94,730

 

-

 

 

94,730

 

92,760

 

-

 

 

92,760

2.1

%

2.1

%

Oncology

 

56,003

 

-

 

 

56,003

 

49,191

 

-

 

 

49,191

13.8

%

13.8

%

Total

$

359,484

$

(88,850

)

$

270,634

$

344,285

$

(82,630

)

$

261,655

4.4

%

1.0

%

4.7

%

3.4

%

1.0

%

3.8

%

 
Net Sales by Geography
United States

$

281,303

$

(64,346

)

$

216,957

$

273,327

$

(59,600

)

$

213,727

2.9

%

0.0

%

2.9

%

1.5

%

0.0

%

1.5

%

International

 

78,181

 

(24,504

)

 

53,677

 

70,958

 

(23,030

)

 

47,928

10.2

%

2.0

%

11.6

%

12.0

%

2.0

%

14.2

%

Total

$

359,484

$

(88,850

)

$

270,634

$

344,285

$

(82,630

)

$

261,655

4.4

%

1.0

%

4.7

%

3.4

%

1.0

%

3.8

%

 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
 
 
 
May 31, May 31,

2019

2018

(unaudited) (audited)
Assets
Current Assets
Cash and cash equivalents

$ 227,641

$ 74,096

Marketable securities

-

1,317

Total cash and investments

227,641

75,413

 
Accounts receivable, net

43,577

39,401

Inventories

40,071

39,274

Prepaid expenses and other

4,003

4,302

Current assets held for sale

-

9,642

Total current assets

315,292

168,032

 
Property, plant and equipment, net

24,258

25,715

Other assets

3,835

3,417

Intangible assets, net

145,387

112,547

Goodwill

347,666

285,944

Non-current assets held for sale

-

109,817

Total Assets

$ 836,438

$ 705,472

 
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable

$ 22,829

$ 15,775

Accrued liabilities

38,338

34,426

Current portion of long-term debt

7,500

5,000

Current portion of contingent consideration

4,635

2,100

Total current liabilities

73,302

57,301

Long-term debt, net of current portion

124,407

86,621

Deferred income taxes

14,542

17,173

Contingent consideration, net of current portion

8,851

1,161

Other long-term liabilities

521

621

Total Liabilities

221,623

162,877

 
Stockholders' equity

614,815

542,595

Total Liabilities and Stockholders' Equity

$ 836,438

$ 705,472

 
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,

2019

 

2018

 

2019

 

2018

(unaudited) (unaudited) (audited)
 
Cash flows from operating activities:
Net income

$ 58,873

$ 2,102

$ 61,340

$ 16,335

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization

6,722

5,768

25,880

23,163

Stock-based compensation

2,130

2,091

9,249

7,912

Gain on disposition

(46,592)

-

(46,592)

-

Transaction costs for disposition

(4,030)

-

(4,030)

-

Change in fair value of contingent consideration

(7,641)

32

(6,776)

250

Deferred income taxes

(3,288)

1,203

(2,655)

(8,947)

Change in accounts receivable allowance

(103)

214

(202)

179

Fixed and intangible asset impairments and disposals

1,806

510

2,495

540

Other

-

30

(5)

(605)

Changes in operating assets and liabilities:
Accounts receivables

676

2,147

(3,177)

5,044

Inventories

1,274

7,653

(1,428)

5,740

Prepaid expenses and other

(363)

(683)

(1,871)

(1,231)

Accounts payable, accrued and other liabilities

15,548

2,704

5,212

(7,093)

Net cash provided by operating activities

25,012

23,771

37,440

41,287

 
Cash flows from investing activities:
Additions to property, plant and equipment

(815)

(744)

(3,118)

(2,391)

Proceeds from disposition of discontinued operations

169,242

-

169,242

-

Acquisitions of businesses, net of cash acquired

-

-

(84,920)

-

Acquisition of intangibles

-

-

-

(1,265)

Proceeds from sale of marketable securities

-

-

1,350

Net cash used in investing activities

168,427

(744)

82,554

(3,656)

 
Cash flows from financing activities:
Proceeds from issuance of and borrowings on long-term debt

-

-

55,000

-

Repayment of long-term debt

(1,250)

(1,250)

(15,000)

(5,000)

Payment of acquisition related contingent consideration

(6,000)

-

(8,100)

(9,500)

Proceeds from exercise of stock options and employee stock purchase plan

8

389

2,031

2,949

Net cash provided by (used in) financing activities

(7,242)

(861)

33,931

(11,551)

 
Effect of exchange rate changes on cash and cash equivalents

(260)

(362)

(380)

472

Increase (decrease) in cash and cash equivalents

185,937

21,804

153,545

26,552

 
Cash and cash equivalents at beginning of period

41,704

52,292

74,096

47,544

Cash and cash equivalents at end of period

$ 227,641

$ 74,096

$ 227,641

$ 74,096

 
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,

2019

 

2018

 

2019

 

2018

(unaudited) (unaudited)
 
Net cash provided by operating activities

$ 25,012

$ 23,771

$ 37,440

$ 41,287

Additions to property, plant and equipment

(815)

(744)

(3,118)

(2,391)

Free Cash Flow

$ 24,197

$ 23,027

$ 34,322

$ 38,896

 

 

Source: AngioDynamics, Inc.

Investors:
AngioDynamics, Inc.
Michael C. Greiner, Executive Vice President & CFO
(518) 795-1821

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