AngioDynamics Reports Fiscal 2015 Fourth Quarter and Full Year Financial Results
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Fourth quarter fiscal 2015 net sales of
$90.9 million ; Full year net sales of$357 million -
Fourth quarter fiscal 2015 GAAP loss of
$0.02 per share; Non-GAAP adjusted net income of$0.14 per share; full year non-GAAP adjusted income of$0.58 per share -
Fourth quarter fiscal 2015 operating cash generation of
$10.8 million ; Full year operating cash generation of$26.2 million - Preliminary FY2016 guidance of 2% - 4% sales growth and 7% - 14% adjusted EPS growth
"During the fourth quarter we built solid year-over-year sales momentum in our key product lines including BioFlo, AngioVac, and NanoKnife," said
"Our overall financial performance during the fourth quarter was impacted by our third quarter voluntary withdrawal of our Morpheus line of PICCs and continued foreign currency headwinds," continued
Q4 FY15 Financial Results
Net sales of
Peripheral Vascular net sales in the fourth quarter were
The Company's GAAP net loss was
Fourth quarter EBITDA was $9.1 million, or $0.25 per share, compared to $10.6 million, or
In the fourth quarter the Company generated
Recent Events
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In early April,
AngioDynamics launched its second-generation AngioVac, a full redesign of its innovative system aiming to increase procedural efficiency. The new system allows for shorter set up time, improves navigation, and increases functionality through a working port and angled tip.
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The Company saw regulatory developments in both domestic and international registrations.
AngioDynamics receivedFood and Drug Administration (FDA) 510(k) clearance of a product line extension of the Company's BioFlo product family to now include a range of Midline catheters indicated for short-term intravenous therapies. Additionally, the Company received an updated 510(k) clearance in connection with the NanoKnife System generator and theFDA has issued Certificates to Foreign Governments (CFGs) for NanoKnife, which assists in registering the product for sale inAsia Pacific ,Latin America , andEastern Europe .
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NanoKnife gained further clinical traction with a published abstract by Dr.
Robert Martin , Director of Surgical Oncology, University ofLouisville, KY in the Annals of Surgery titled "Treatment of 200 Locally Advanced (Stage III) Pancreatic Adenocarcinoma Patients with Irreversible Electroporation: Safety and Efficacy." Additionally, the Company saw the first patient treated, out of a planned enrollment of 200, in theClinical Research Office of the Endourological Society (CROES) NanoKnife prostate cancer trial.
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The University of
California ,Los Angeles (UCLA) has initiated RAPID (Registry of AngioVac Procedures In Detail) led byJohn Moriarty , MD, Director of Cardiology Interventional Radiology Innovation at UCLA. RAPID is a multicenter, prospective registry of real world AngioVac use. The registry is designed to evaluate outcomes data, as well as safety and effectiveness of the AngioVac system in the removal of fresh, soft thrombi or emboli within the central venous system. RAPID is supported byAngioDynamics through a research grant.
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The Company was awarded two contracts by
Novation Consolidated Service Centers in the quarter. The first was a Tri-source BioFlo dialysis contract with MidAmerica Service Solutions (MSS), which was driven by demand for BioFlo Ports and PICCs. The second was a Dual-source contract with Upper Midwest Consolidated Service Center (UMCSC) which includes theMayo Clinic for anti-thrombogenic Ports and PICCs.
Full Year Financial Results
For the full year ended May 31, 2015, net sales were $357 million, a 1% increase compared to the $354.4 million reported a year ago. On a constant currency basis and excluding the planned wind down of the BSC supply agreement net sales grew 2%. The Company's net loss was $3.3 million, or $0.09 loss per share, compared to net income of $2.7 million, or $0.08 per share, reported a year ago. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $21.2 million, or $0.58 per share, compared to net income of
Fiscal 2016 and Fiscal First Quarter Guidance
"We expect to deliver sales growth during fiscal year 2016," said
"Because of the headwinds, we are anticipating first quarter net sales to range between
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
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Safe Harbor
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding
In
(Tables to Follow)
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| CONSOLIDATED INCOME STATEMENTS | ||||
| (in thousands, except per share data) | ||||
| Three months ended | Twelve months ended | |||
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| 2015 | 2014 | 2015 | 2014 | |
| (unaudited) | (unaudited) | |||
| Net sales | $ 90,897 | $ 94,060 | $ 356,974 | $ 354,425 |
| Cost of sales | 45,340 | 46,650 | 180,085 | 174,757 |
| Gross profit | 45,557 | 47,410 | 176,889 | 179,668 |
| % of net sales | 50.1% | 50.4% | 49.6% | 50.7% |
| Operating expenses | ||||
| Research and development | 7,289 | 6,729 | 26,931 | 27,486 |
| Sales and marketing | 20,218 | 21,464 | 80,623 | 83,200 |
| General and administrative | 7,658 | 7,097 | 29,871 | 26,639 |
| Medical device excise tax | 1,037 | 874 | 4,142 | 3,829 |
| Amortization of intangibles | 4,730 | 3,926 | 17,912 | 16,622 |
| Change in fair value of contingent consideration | 430 | 673 | (8,196) | (1,808) |
| Acquisition, restructuring and other items, net | 2,855 | 3,063 | 26,600 | 10,760 |
| Total operating expenses | 44,217 | 43,826 | 177,883 | 166,728 |
| Operating income (loss) | 1,340 | 3,584 | (994) | 12,940 |
| Other income (expense), net | (1,607) | (1,474) | (7,005) | (7,200) |
| Income (loss) before income taxes | (267) | 2,110 | (7,999) | 5,740 |
| Income tax expense (benefit) | 547 | 3,325 | (4,731) | 3,074 |
| Net income (loss) | $ (814) | $ (1,215) | $ (3,268) | $ 2,666 |
| Earnings (loss) per share | ||||
| Basic | $ (0.02) | $ (0.03) | $ (0.09) | $ 0.08 |
| Diluted | $ (0.02) | $ (0.03) | $ (0.09) | $ 0.08 |
| Weighted average shares outstanding | ||||
| Basic | 35,918 | 35,278 | 35,683 | 35,136 |
| Diluted | 35,918 | 35,278 | 35,683 | 35,440 |
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| GAAP TO NON-GAAP RECONCILIATION | ||||
| (in thousands, except per share data) | ||||
| Reconciliation of Gross Profit to non-GAAP Adjusted Gross Profit | ||||
| Three months ended | Twelve months ended | |||
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| 2015 | 2014 | 2015 | 2014 | |
| (unaudited) | (unaudited) | |||
| Gross profit | $ 45,557 | $ 47,410 | $ 176,889 | $ 179,668 |
| Recall expenses included in cost of sales | (202) | -- | 4,795 | -- |
| Amortization of inventory basis step-up (1) | -- | -- | -- | 150 |
| Adjusted gross profit | $ 45,355 | $ 47,410 | $ 181,684 | $ 179,818 |
| Adjusted gross profit % of sales | 49.9% | 50.4% | 50.9% | 50.7% |
| Reconciliation of Net Income to non-GAAP Adjusted Net Income: | ||||
| Three months ended | Twelve months ended | |||
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| 2015 | 2014 | 2015 | 2014 | |
| (unaudited) | (unaudited) | |||
| Net income (loss) | $ (814) | $ (1,215) | $ (3,268) | $ 2,666 |
| Recall expenses included in cost of sales | (202) | -- | 4,795 | -- |
| Amortization of inventory basis step-up (1) | -- | -- | -- | 150 |
| Amortization of intangibles | 4,730 | 3,926 | 17,912 | 16,622 |
| Change in fair value of contingent consideration | 430 | 673 | (8,196) | (1,808) |
| Fixed and intangible asset impairments | -- | -- | 9,074 | -- |
| Indefinite-lived intangible asset impairment | -- | -- | 6,400 | -- |
| Acquisition, restructuring and other items, net (2) | 2,855 | 3,063 | 11,126 | 10,760 |
| Tax effect of non-GAAP items (3) | (2,041) | (242) | (16,651) | (8,410) |
| Adjusted net income | $ 4,958 | $ 6,205 | $ 21,192 | $ 19,980 |
| Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share: | ||||
| Three months ended | Twelve months ended | |||
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| 2015 | 2014 | 2015 | 2014 | |
| (unaudited) | (unaudited) | |||
| Diluted earnings (loss) per share | $ (0.02) | $ (0.03) | $ (0.09) | $ 0.08 |
| Recall expenses included in cost of sales | (0.01) | -- | 0.13 | -- |
| Amortization of inventory basis step-up (1) | -- | -- | -- | 0.00 |
| Amortization of intangibles | 0.13 | 0.11 | 0.49 | 0.47 |
| Change in fair value of contingent consideration | 0.01 | 0.02 | (0.23) | (0.05) |
| Fixed and intangible asset impairments | -- | -- | 0.25 | -- |
| Indefinite-lived intangible asset impairment | -- | -- | 0.18 | -- |
| Acquisition, restructuring and other items, net (2) | 0.08 | 0.09 | 0.31 | 0.30 |
| Tax effect of non-GAAP items (3) | (0.06) | (0.01) | (0.46) | (0.24) |
| Adjusted diluted earnings per share | $ 0.14 | $ 0.17 | $ 0.58 | $ 0.56 |
| Adjusted diluted sharecount | 36,616 | 35,653 | 36,359 | 35,440 |
| (1) Amortization of step-up of acquired inventory value in accounting for acquisitions. | ||||
| (2) Includes costs related to acquisitions, integrations, restructurings, debt refinancings, litigation, and other items. | ||||
| (3) Represents the net tax effect of non-GAAP adjustments. | ||||
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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: | ||||
| Three months ended | Twelve months ended | |||
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| 2015 | 2014 | 2015 | 2014 | |
| (unaudited) | (unaudited) | |||
| Net income (loss) | $ (814) | $ (1,215) | $ (3,268) | $ 2,666 |
| Income tax expense (benefit) | 547 | 3,325 | (4,731) | 3,074 |
| Other income (expense), net | 1,607 | 1,474 | 7,005 | 7,200 |
| Depreciation and amortization | 7,716 | 7,044 | 30,492 | 28,157 |
| EBITDA | 9,056 | 10,628 | 29,498 | 41,097 |
| Recall expenses included in cost of sales | (202) | -- | 4,795 | -- |
| Amortization of inventory basis step-up (1) | -- | -- | -- | 150 |
| Change in fair value of contingent consideration | 430 | 673 | (8,196) | (1,808) |
| Fixed and intangible asset impairments | -- | -- | 9,074 | -- |
| Indefinite-lived intangible asset impairment | -- | -- | 6,400 | -- |
| Acquisition, restructuring and other items, net (2,3) | 2,478 | 2,688 | 9,619 | 10,010 |
| Stock-based compensation | 1,609 | 1,480 | 5,998 | 5,502 |
| Adjusted EBITDA | $ 13,371 | $ 15,469 | $ 57,188 | $ 54,951 |
| Per diluted share: | ||||
| EBITDA | $ 0.25 | $ 0.30 | $ 0.81 | $ 1.16 |
| Adjusted EBITDA | $ 0.37 | $ 0.43 | $ 1.57 | $ 1.55 |
| (1) Amortization of step-up of acquired inventory value in accounting for acquisitions. | ||||
| (2) Includes costs related to acquisitions, integrations, restructurings, debt refinancings, litigation, and other items. | ||||
| (3) Excludes depreciation expense captured in the depreciation and amortization component of the reconciliation. | ||||
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| PRELIMINARY NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY | ||||||||||
| (unaudited in thousands) | ||||||||||
| Three months ended (a) | Twelve months ended (b) | |||||||||
| Currency | Constant | Currency | Constant | |||||||
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% | Impact | Currency |
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% | Impact | Currency | |
| 2015 | 2014 | Growth | (Pos) Neg | Growth | 2015 | 2014 | Growth | (Pos) Neg | Growth | |
| Net Sales by Product Category | ||||||||||
| Peripheral Vascular | $ 49,837 | $ 50,908 | -2% | $ 192,833 | $ 192,626 | 0% | ||||
| Vascular Access | 27,081 | 28,281 | -4% | 107,874 | 106,394 | 1% | ||||
| Oncology/Surgery | 13,028 | 13,668 | -5% | 52,090 | 49,360 | 6% | ||||
| Total Excluding Supply Agreement | 89,946 | 92,857 | -3% | 1% | -2% | 352,797 | 348,380 | 1% | 1% | 2% |
| Supply Agreement | 951 | 1,203 | -21% | 0% | -21% | 4,177 | 6,045 | -31% | 0% | -31% |
| Total | $ 90,897 | $ 94,060 | -3% | 1% | -2% | $ 356,974 | $ 354,425 | 1% | 0% | 1% |
| 0 | 0 | 0 | 0 | |||||||
| Net Sales by Geography | ||||||||||
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$ 72,003 | $ 73,695 | -2% | 0% | -2% | $ 280,851 | $ 280,161 | 0% | 0% | 0% |
| International | 17,943 | 19,162 | -6% | 6% | 0% | 71,946 | 68,219 | 5% | 4% | 9% |
| Supply Agreement | 951 | 1,203 | -21% | 0% | -21% | 4,177 | 6,045 | -31% | 0% | -31% |
| Total | $ 90,897 | $ 94,060 | -3% | 1% | -2% | $ 356,974 | $ 354,425 | 1% | 0% | 1% |
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(a) There were 63 sales days in the three months ended |
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(b) There were 250 sales days in the twelve months ended |
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| CONSOLIDATED BALANCE SHEETS | ||
| (in thousands) | ||
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| 2015 | 2014 | |
| (unaudited) | (unaudited) | |
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $ 18,391 | $ 16,105 |
| Marketable securities | 1,689 | 1,809 |
| Total cash and investments | 20,080 | 17,914 |
| Accounts receivable, net | 58,428 | 61,968 |
| Inventories | 67,388 | 61,234 |
| Deferred income taxes | 4,364 | 4,625 |
| Prepaid income taxes | 770 | 510 |
| Prepaid expenses and other | 4,783 | 5,471 |
| Total current assets | 155,813 | 151,722 |
| Property, plant and equipment, net | 54,560 | 66,590 |
| Intangible assets, net | 181,806 | 205,256 |
| Goodwill | 361,252 | 360,473 |
| Deferred income taxes, long-term | 14,904 | 10,403 |
| Other non-current assets | 5,288 | 4,447 |
| Total Assets | $ 773,623 | $ 798,891 |
| Liabilities and Stockholders' Equity | ||
| Accounts payable | $ 23,668 | $ 32,895 |
| Accrued liabilities | 18,331 | 17,251 |
| Income taxes payable | 439 | 689 |
| Current portion of long-term debt | 8,750 | 5,000 |
| Current portion of contingent consideration | 9,969 | 10,918 |
| Total current liabilities | 61,157 | 66,753 |
| Long-term debt, net of current portion | 128,910 | 137,660 |
| Deferred income taxes, long-term | 1,119 | 1,146 |
| Contingent consideration, net of current portion | 37,415 | 56,413 |
| Other long-term liabilities | -- | 84 |
| Total Liabilities | 228,601 | 262,056 |
| Stockholders' equity | 545,022 | 536,835 |
| Total Liabilities and Stockholders' Equity | $ 773,623 | $ 798,891 |
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| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
| (in thousands) | ||||
| Three months ended | Twelve months ended | |||
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| 2015 | 2014 | 2015 | 2014 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Cash flows from operating activities: | ||||
| Net income (loss) | $ (814) | $ (1,215) | $ (3,268) | $ 2,666 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
| Depreciation and amortization | 7,716 | 7,044 | 30,492 | 28,157 |
| Stock-based compensation | 1,609 | 1,480 | 5,998 | 5,502 |
| Change in fair value of contingent consideration | 430 | 673 | (8,196) | (1,808) |
| Fixed and intangible asset impairments and disposals | 193 | -- | 9,381 | -- |
| Indefinite-lived intangible asset impairment | -- | -- | 6,400 | -- |
| Deferred income taxes | (973) | 1,251 | (5,111) | 2,951 |
| Change in accounts receivable allowance | 789 | 184 | 1,448 | 465 |
| Tax effect of exercise of stock options and issuance of performance shares | -- | -- | -- | (146) |
| Amortization of acquired inventory basis step-up | -- | -- | -- | 150 |
| Other | 104 | 33 | 34 | (17) |
| Changes in operating assets and liabilities, net of acquisitions: | ||||
| Receivables | (1,440) | (5,118) | 2,095 | (14,786) |
| Inventories | 1,322 | (2,117) | (6,154) | (5,608) |
| Accounts payable and accrued liabilities | 551 | 3,837 | (5,877) | 6,658 |
| Other | 1,319 | 3,455 | (1,000) | 497 |
| Net cash provided by (used in) operating activities | 10,806 | 9,507 | 26,242 | 24,681 |
| Cash flows from investing activities: | ||||
| Additions to property, plant and equipment | (902) | (2,169) | (11,940) | (11,172) |
| Acquisition of businesses, net of cash acquired | -- | -- | -- | (4,169) |
| Acquisition of intangible assets | (349) | (1,255) | (1,353) | (1,435) |
| Other cash flows from investing activities | -- | -- | -- | 328 |
| Net cash provided by (used in) investing activities | (1,251) | (3,424) | (13,293) | (16,448) |
| Cash flows from financing activities: | ||||
| Repayment of long-term debt | (11,250) | (1,250) | (20,000) | (146,250) |
| Proceeds from issuance of long-term debt and revolver borrowings | -- | 5,000 | 15,000 | 146,410 |
| Payment of Contingent Consideration | -- | (1,346) | (11,222) | (15,943) |
| Proceeds from exercise of stock options and ESPP | 144 | 236 | 5,757 | 2,444 |
| Other cash flows from financing activities | -- | -- | -- | (677) |
| Net cash provided by (used in) financing activities | (11,106) | 2,640 | (10,465) | (14,016) |
| Effect of exchange rate changes on cash | 238 | -- | (198) | 86 |
| Increase (Decrease) in cash and cash equivalents | (1,313) | 8,723 | 2,286 | (5,697) |
| Cash and cash equivalents | ||||
| Beginning of period | 19,704 | 7,382 | 16,105 | 21,802 |
| End of period | $ 18,391 | $ 16,105 | $ 18,391 | $ 16,105 |
CONTACT: Company Contact:
AngioDynamics Inc.
Mark Frost , CFO
(800) 772-6446 x1981
mfrost@AngioDynamics.com
Investor Relations Contacts:
EVC Group, Inc.
Doug Sherk ; Chris Dailey
(646) 445-4801
dsherk@evcgroup.com.; cdailey@evcgroup.com;
Media Contact:
EVC Group, Inc.
Dave Schemelia
(646) 201-5431
dave@evcgroup.com
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