AngioDynamics Reports Fiscal Fourth Quarter and Full Year 2009 Financial Results
Net sales in the fourth quarter were
Net income in the fourth quarter was
EBITDA (Non GAAP) was
For the fiscal year ended
In fiscal 2009,
“While we made progress during the fourth quarter, our performance
illustrates the investments we are making in IRE and sales and marketing
and the work to be done to restore organic sales growth,” said Jan
Keltjens, President and CEO. “Since early March, I’ve spent a great deal
of time getting to know our team and evaluating the Company’s strengths
and opportunities. We have begun implementing several actions that I
believe will improve future operating performance. We have identified
the business areas that can drive global growth and are moving forward
on streamlining the organization, increasing accountability, focusing
R&D efforts and creating a center of expertise for manufacturing and
process engineering. As a result, we are making plans to establish an
office closer to the
“We have also decided to accelerate our investments in developing our
international business opportunities and we plan to hire a general
manager for international commercial operations who will be based in
Highlights of the quarter and more recent activities include the following:
-
The Company has determined that it will focus on three strategic
clinical programs for the NanoKnife™ IRE system. The programs will
focus on prostate, pancreatic and HCC/liver cancers. There has been
good progress with pre-clinical work supporting FDA Investigational
Device Exemptions and the first patient enrollment is expected before
the end of calendar year 2009. To date, 66 NanoKnife procedures have
been conducted worldwide in seven centers, including the first fully
commercial IRE case at Banner Good Samaritan hospital in
Phoenix . -
AngioDynamics has released NanoKnife software version 2.0.7. Among other features of the software, version 2.0.7 offers a robust cardiac synchronization algorithm to avoid ventricular arrhythmia during irreversible electroporation near the heart, an occurrence which had been noted in a few early NanoKnife cases but not since this feature was implemented. -
During the past seven weeks,
AngioDynamics launched four new products:
- The Starburst® Xli-enhanced Semi-Flex electrode is the first radiofrequency ablation (RFA) device specifically designed to deliver a 7cm ablation of a tumor in a single placement during CT-aided procedures.
The Starburst® XL is an RFA device with a convenient, pre-attached main cable designed to provide reproducible spherical ablations up to 5cm.- The DuraMax™ hemodialysis catheter is AngioDynamics’ latest evolution in the Company’s market-leading stepped tip design that improves ease of use, dialysis efficiency and overall patient outcomes.
-
The NeverTouch-FRS (fiber recognition system) makes NeverTouch™
fiber technology compatible with AngioDynamics’ latest
Delta Laser
system, as well as lasers formerly manufactured byDiomed .
-
A Center of Excellence for Process Engineering & Technology has been
established at the Company’s
Queensbury manufacturing operations. The goal of the Center is to drive stronger product designs plus manufacturing efficiencies resulting in improved supply chain performance including stable product supply and improved gross margins.
Fiscal 2010 Guidance
The Company’s outlook for fiscal 2010 is as follows:
-
Net sales in the range of
$209 million to $215 million , an increase of 7-10% over fiscal 2009 net sales - Gross margin in the range of 61-62% of net sales
-
GAAP operating income in the range of
$18 million to $20 million , an increase of 12-24% -
EBITDA in the range of
$30 million to $32 million , an increase of 8-15% -
GAAP EPS in the range of
$0.43 to $0.47 , inclusive of a$0.24 EPS impact from IRE investments
Conference Call
In addition, individuals can listen to the call on the Internet by visiting the investor relations portion of the AngioDynamics Web site at http://investor.angiodynamics.com. To listen to the live call, please go to the Web site 15 minutes prior to its start to register, download and install the necessary audio software.
A replay will be available on the Web site. 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 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, the Company has reported non-GAAP EBITDA, (income before interest, taxes, depreciation and amortization) and non-GAAP 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. 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 Operating Income 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 | Twelve months ended |
||||||||||||||||||||
May 31, | May 31, | May 31, |
May 31, | ||||||||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Net sales | $ | 52,821 | $ | 46,752 | $ | 195,054 | $ | 166,500 | |||||||||||||
Cost of sales | 20,128 | 17,439 | 74,989 |
|
63,913 |
||||||||||||||||
Gross profit | 32,693 |
29,313 | 120,065 |
|
102,587 | ||||||||||||||||
% of net sales |
61.9% |
|
|
|
61.6% |
|
61.6% |
|
|||||||||||||
Operating expenses | |||||||||||||||||||||
Research and development | 4,836 | 4,064 | 17,914 |
14,424 | |||||||||||||||||
Sales and marketing |
16,051 | 12,507 | 56,785 |
46,047 | |||||||||||||||||
General and administrative |
4,033 | 3,820 | 16,394 | 15,425 |
|||||||||||||||||
Amortization of intangibles | 2,310 | 1,843 | 9,126 | 6,849 | |||||||||||||||||
Litigation provision | - | 6,757 | - | 3,606 |
|||||||||||||||||
Non-recurring costs | 702 |
|
- |
3,743 | - | ||||||||||||||||
Total operating expenses | 27,932 | 28,991 |
|
103,962 | 86,351 | ||||||||||||||||
Operating income | 4,761 | 322 | 16,103 |
16,236 | |||||||||||||||||
Other income (expense), net |
(293 | ) | 403 |
|
(951 | ) | 1,092 |
|
|||||||||||||
Income before income taxes | 4,468 | 725 | 15,152 | 17,328 | |||||||||||||||||
Provision for income taxes |
|
1,566 | 206 | 5,220 | 6,439 |
|
|||||||||||||||
Net income | $ | 2,902 | $ | 519 | $ | 9,932 | $ | 10,889 | |||||||||||||
Earnings per common share | |||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.02 | $ | 0.41 | $ | 0.45 | |||||||||||||
Diluted | $ | 0.12 | $ | 0.02 | $ | 0.41 | $ | 0.45 | |||||||||||||
Weighted average common shares |
|||||||||||||||||||||
Basic |
24,427 | 24,199 | 24,363 |
24,082 | |||||||||||||||||
Diluted | 24,544 |
24,394 | 24,513 | 24,349 |
ANGIODYNAMICS, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED INCOME STATEMENTS | ||||||||||||
(in thousands, except per share data) | ||||||||||||
Reconciliation of Operating Income to non-GAAP EBITDA: | ||||||||||||
Three months ended | Twelve months ended | |||||||||||
May 31, | May 31, | May 31, | May 31, | |||||||||
2009 | 2008 | 2009 | 2008 | |||||||||
(unaudited) | (unaudited) | |||||||||||
Operating income | $ | 4,761 | $ | 322 | $ | 16,103 | $ | 16,236 | ||||
|
||||||||||||
Amortization of intangibles | 2,310 |
1,843 | 9,126 | 6,849 | ||||||||
Depreciation | 689 | 673 | 2,687 |
|
2,328 | |||||||
EBITDA | $ | 7,760 | $ |
2,838 | $ | 27,916 | $ | 25,413 | ||||
EBITDA per common share | ||||||||||||
Basic | $ | 0.32 | $ | 0.12 | $ | 1.15 | $ | 1.06 | ||||
Diluted | $ | 0.32 | $ | 0.12 | $ | 1.14 | $ | 1.04 | ||||
Weighted average common shares | ||||||||||||
Basic | 24,427 | 24,199 | 24,363 | 24,082 | ||||||||
Diluted | 24,544 | 24,394 | 24,513 | 24,349 |
ANGIODYNAMICS, INC. AND SUBSIDIARIES | ||||||||||||||
NET SALES BY BUSINESS UNIT AND BY GEOGRAPHY | ||||||||||||||
(in thousands) | ||||||||||||||
Three months ended | Twelve months ended | |||||||||||||
May 31, |
May 31, | May 31, |
May 31, | |||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||
(unaudited) | (unaudited) | |||||||||||||
Net Sales by Business Unit | ||||||||||||||
Peripheral Vascular |
$ | 22,510 | $ | 17,793 | $ | 83,457 | $ | 63,677 | ||||||
Access | 17,881 | 18,111 | 66,812 | 64,433 | ||||||||||
Oncology/Surgery |
|
12,430 | 10,848 | 44,785 |
38,390 | |||||||||
Total | $ | 52,821 | $ | 46,752 | $ | 195,054 | $ | 166,500 | ||||||
|
||||||||||||||
Net Sales by Geography | ||||||||||||||
United States | $ | 47,049 | $ | 41,950 | $ | 173,310 | $ | 150,567 | ||||||
International | 5,772 | 4,802 | 21,744 | 15,933 | ||||||||||
Total | $ | 52,821 | $ | 46,752 | $ | 195,054 | $ | 166,500 |
ANGIODYNAMICS, INC. AND SUBSIDIARIES |
||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(in thousands) | ||||||||||||
May 31, | May 31, | |||||||||||
2009 | 2008 | |||||||||||
(unaudited) | (2) | |||||||||||
Assets | ||||||||||||
Current Assets | ||||||||||||
Cash and cash equivalents | $ | 27,909 | $ | 32,040 | ||||||||
Restricted cash | - | 68 | ||||||||||
Marketable securities | 40,278 | 46,182 | ||||||||||
Total cash and investments | 68,187 | 78,290 | ||||||||||
Receivables, net | 27,181 | 26,642 | ||||||||||
Inventories, net | 36,928 | 22,901 | ||||||||||
Deferred income taxes | 9,337 | 10,902 | ||||||||||
Prepaid income taxes | 3,694 | 375 | ||||||||||
Prepaid expenses and other |
|
3,271 | 2,772 | |||||||||
Total current assets | 148,598 | 141,882 | ||||||||||
Property, plant and equipment, net | 22,183 | 21,163 | ||||||||||
Intangible assets, net | 67,770 | 71,311 | ||||||||||
Goodwill | 161,974 | 162,707 |
||||||||||
Deferred income taxes | 4,263 | 6,860 | ||||||||||
Other non-current assets | 3,915 | 4,824 |
|
|||||||||
Total Assets | $ | 408,703 |
$ | 408,747 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current portion of long-term debt |
$ | 265 |
$ | 10,040 | ||||||||
Contractual payments on acquisition of business, net | 5,227 | 9,625 | ||||||||||
Other current liabilities | 24,207 | 19,537 | ||||||||||
Litigation provision | - | 6,757 | ||||||||||
Long-term debt, net of current portion | 6,810 |
7,075 | ||||||||||
Total Liabilities | 36,509 |
53,034 | ||||||||||
Stockholders' equity |
372,194 |
|
355,713 | |||||||||
Total Liabilities and Stockholders' Equity | $ | 408,703 | $ | 408,747 | ||||||||
Shares outstanding | 24,428 | 24,268 | ||||||||||
(2) Derived from audited financial statements |
ANGIODYNAMICS, INC. AND SUBSIDIARIES | ||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(in thousands) | ||||||||||||||
Twelve months ended | ||||||||||||||
May 31, |
May 31, | |||||||||||||
2009 | 2008 | |||||||||||||
(unaudited) |
||||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 9,932 | $ | 10,889 | ||||||||||
Depreciation and amortization | 11,813 | 9,205 | ||||||||||||
Tax effect of exercise of stock options | (149 | ) | (390 | ) | ||||||||||
Deferred income taxes | 4,268 | 5,483 | ||||||||||||
Stock-based compensation |
5,793 | 4,902 | ||||||||||||
Other | 1,754 | 737 | ||||||||||||
Changes in operating assets and liabilities | ||||||||||||||
Receivables | 401 | (6,134 | ) | |||||||||||
Inventories | (10,635 | ) |
4,172 | |||||||||||
Accounts payable and accrued liabilities | 5,566 | 2,340 | ||||||||||||
Litigation provision | (6,757 | ) | 3,967 | |||||||||||
Other | (2,044 |
) | (9,264 | ) | ||||||||||
Net cash provided by operating activities | 19,942 | 25,907 | ||||||||||||
Cash flows from investing activities: |
||||||||||||||
Additions to property, plant and equipment | (4,361 | ) | (6,711 | ) | ||||||||||
Acquisition of intangible assets and businesses | (17,078 | ) | (18,694 | ) | ||||||||||
Change in restricted cash | 68 | 1,718 | ||||||||||||
Purchases, sales and maturities of marketable securities, net | 5,672 |
|
(2,507 | ) | ||||||||||
Net cash used in investing activities |
(15,699 | ) | (26,194 | ) | ||||||||||
Cash flows from financing activities: |
||||||||||||||
Repayment of long-term debt | (10,040 | ) | (315 | ) | ||||||||||
Proceeds from exercise of stock options and ESPP |
1,774 |
4,238 |
||||||||||||
Tax effect of exercise of stock options and issuance of performance shares | - |
|
91 | |||||||||||
Net cash (used in) provided by financing activities | (8,266 | ) | 4,014 | |||||||||||
Effect of exchange rate changes on cash | (108 | ) | - |
|
||||||||||
(Decrease) Increase in cash and cash equivalents | (4,131 | ) | 3,727 | |||||||||||
Cash and cash equivalents |
||||||||||||||
Beginning of period | 32,040 |
|
28,313 | |||||||||||
End of period | $ | 27,909 | $ | 32,040 |
Source:
AngioDynamics, Inc.
Company Contact:
D.
Joseph Gersuk, CFO, 800-772-6446 x1608
jgersuk@AngioDynamics.com
or
EVC
Group, Inc.
Investor Relations Contacts:
Doug
Sherk / Jenifer Kirtland, 415-896-6820
dsherk@evcgroup.com
jkirtland@evcgroup.com
Media
Contact:
Steve DiMattia, 646-201-5445
sdimattia@evcgroup.com