UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
----------------------------
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): December 20, 2004
ANGIODYNAMICS, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-50761 11-3146460
(Commission File Number) (IRS Employer Identification No.)
603 Queensbury Avenue, Queensbury, New York 12804
(Address of Principal Executive Offices) (Zip Code)
(518) 798-1215
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions.
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On December 20, 2004, AngioDynamics, Inc. issued a press release
announcing its financial results for the twenty-six weeks ended
November 27, 2004. A copy of the release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference in its
entirety.
The information in this Form 8-K and the Exhibit attached hereto
shall not be deemed filed for the purposes of Section 18 of the
Securities Exchange Act of 1934, nor shall it be deemed incorporated
by reference in any filing under the Securities Act of 1933, except
as shall be expressly set forth by specific reference in such
filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press release issued by AngioDynamics, Inc. on December
20, 2004, regarding financial results for the twenty-six
weeks ended November 27, 2004.
2
SIGNATURES:
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: December 20, 2004 ANGIODYNAMICS, INC.
(Registrant)
By: /s/ Joseph G. Gerardi
-------------------------------
Joseph G. Gerardi
Vice President, Chief Financial
Officer
3
EXHIBIT INDEX
Exhibit Description
- ------- -----------
99.1 Press release issued by AngioDynamics, Inc. on December 20,
2004, regarding financial results for the twenty-six weeks
ended November 27, 2004.
4
Exhibit 99.1
AngioDynamics(R)
Incorporated
Company Contacts: Investor Relations Contacts:
AngioDynamics, Inc. Lippert/Heilshorn & Associates, Inc.
Joe Gerardi Kim Sutton Golodetz (kgolodetz@lhai.com)
(800) 772-6446 x115 (212) 838-3777
http://www.angiodynamics.com/ Bruce Voss (bvoss@lhai.com)
(310) 691-7100
Angiodynamics reports Fiscal second quarter eps up 50% to $0.09
Conference call to begin today at 4:30 p.m. ET
QUEENSBURY, N.Y. (December 20, 2004)--AngioDynamics, Inc. (Nasdaq: ANGO) today
announced financial results for the 13 and 26 weeks ended November 27, 2004.
Highlights of the second quarter of fiscal year 2005 (September through
November) and recent weeks include:
o Net sales up 22% to $14.4 million
o Gross margins up 497 basis points to 56%
o Net earnings up 71% to $1.0 million
o Diluted earnings per share up 50% to $0.09
o Favorable CMS reimbursement codes for VenaCure(TM) procedure
o Anthem agrees to cover VenaCure
o AngioDynamics stock distributed to E-Z-EM shareholders in the completion
of the spin-off of the Company
Net sales for the second quarter of fiscal 2005 were $14.4 million, up 22%,
compared with net sales of $11.9 million for the second quarter of fiscal year
2004. This increase was primarily due to strong growth from the Company's newest
products, along with continued market share gains across the entire product
portfolio. VenaCure, AngioDynamics' precision laser system for the treatment of
severe varicose veins, continues to post robust sales growth. The Company also
had strong market penetration with its Morpheus(TM) CT PICC (peripherally
inserted central catheter), which was launched nationally in September 2004.
Net earnings for the second quarter of fiscal 2005 rose 71% to $1.0 million, or
$0.09 per diluted share, compared with net earnings of $0.6 million, or $0.06
per diluted share, for the fiscal 2004 second quarter.
"Our financial results for the second quarter were rock-solid with excellent
sales, expanding gross margins and improved earnings despite increased expenses
resulting in large part from our operating as an independent public company,"
said Eamonn P.
Hobbs, president and CEO of AngioDynamics. "Gross margin was 56.0%, compared
with 51.4% for the same period last year, due to a product mix weighted towards
high margin disposables, lower material costs, and modest price increases
implemented earlier in the year. Lower material costs resulted from purchase
volume discounts with a major supplier negotiated in the second fiscal quarter
of 2005, retroactive to the beginning of the fiscal year. Gross margin benefited
0.5% during the current period. Our goal is to reach a gross margin level of
between 60%-65%in the next five years."
Mr. Hobbs continued, "VenaCure sales have been on an accelerating growth path,
and we believe that the recent reimbursement levels set by the Centers for
Medicare and Medicaid Services (CMS) beginning January 1, 2005 support our
competitive position in the marketplace with a win-win-win solution for
patients, physicians and third-party payers. We also are very excited about the
launch of our new Morpheus CT PICC and its reception from the interventional
radiology community. The benefits of this product are immediately apparent to
physicians as it gives increased flexibility to administer medications and to
perform CT imaging using one PICC line, avoiding the need for a second access
site while providing patient comfort, saving time and reducing costs."
Cash and cash equivalents were $11.8 million and the Company held short-term
debt securities of $10.4 million at November 27, 2004, compared to $1.7 million
and $0.7 million, respectively at May 29, 2004. The increase is due primarily to
the receipt in June 2004 of the proceeds from the Company's initial public
offering.
For the twenty-six weeks ended November 27, 2004, net sales were $27.5 million,
up 22% from $22.5 million for the comparable 2003 period. The increase was due
to robust sales from the Company's VenaCure and Morpheus products and to
increased sales of the other existing product lines. Net earnings for the
twenty-six weeks ended November 27, 2004 were $1.8 million, up 100% compared
with net earnings of $0.9 million for the comparable fiscal 2004 period and
diluted earnings per common share increased to $.15 from $.10.
Mr. Hobbs continued, "We are adjusting our guidance slightly upwards from 17% to
20% sales growth to a range of 20% to 21% for fiscal 2005. We also expect
diluted weighted shares outstanding to be between 12.1 million and 12.3 million
for the fiscal year. Given our operational improvements, our understanding of
the IPVD space and our ability to provide new products tailored to the needs of
our physician customers, we remain extremely confident in the near and long-term
outlook for the business."
Conference Call
AngioDynamics management will host a conference call to discuss this
announcement today beginning at 4:30 p.m. Eastern Time. To participate in the
call, please dial 888-804-7108 toll-free from the U.S., or 706-634-1250 from
outside the U.S.
A telephone replay of the call will be available for 48 hours following
completion of the call by dialing 888-642-1687 toll-free or 706-645-9291, and
entering reservation number 2682091.
In addition, individuals may listen to the call on the Internet by visiting the
investor relations portion of the Company's Web site at. www.angiodynamics.com.
A recording of the conference call will be archived there for 12 months.
About AngioDynamics
AngioDynamics, Inc. (www.angiodynamics.com) designs, develops, manufactures and
markets innovative medical devices used in minimally invasive, image-guided
procedures to treat peripheral vascular disease. It offers a broad line of
therapeutic and diagnostic devices that enable interventional physicians, such
as interventional radiologists, vascular surgeons and others, to treat
peripheral vascular diseases and other non-coronary diseases. The Company's
diverse product line includes angiographic catheters, hemodialysis catheters,
endovascular laser venous system products, PTA dilation balloon catheters,
image-guided vascular access products, thrombolytic products, and drainage
products.
The statements made in this document contain certain forward-looking statements
that involve a number of risks and uncertainties. Words such as "expects",
"intends", "anticipates", "plans", "believes", "seeks", "estimates," or
variations of such words and similar expressions, are intended to identify such
forward-looking statements. Investors are cautioned that actual events or
results may differ from the Company's expectations. In addition to the matters
described above, the ability of the Company to develop its products, market
acceptance and future sales of the Company's products, future actions by the
Food and Drug Administration or other regulatory agencies, results of pending or
future clinical trials, overall economic conditions, general market conditions,
market acceptance of its products, foreign currency exchange rate fluctuations,
the effects on pricing from competition, as well as the risk factors listed from
time to time in the Company's filings with the SEC, including but not limited to
its Annual Report on Form 10-K for the fiscal year ended May 29, 2004, may
affect the actual results achieved by the Company.
(Tables to follow)
AngioDynamics, Inc. and Subsidiary
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS
(in thousands, except shares and per share data)
Three months ended Six months ended
------------------ ----------------
Nov 27, Nov 29, Nov 27, Nov 29,
2004 2003 2004 2003
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Net sales $ 14,402 $ 11,851 $ 27,507 $ 22,481
Cost of goods sold 6,338 5,759 12,450 10,854
----------- ----------- ----------- -----------
Gross profit 8,064 6,092 15,057 11,627
----------- ----------- ----------- -----------
Operating expenses
Selling and administrative 5,149 4,035 9,744 7,876
Research and development 1,122 870 2,250 1,621
----------- ----------- ----------- -----------
Total operating expenses 6,271 4,905 11,994 9,497
----------- ----------- ----------- -----------
Operating profit 1,793 1,187 3,063 2,130
Interest income (expense), net 22 (237) 37 (493)
----------- ----------- ----------- -----------
Earnings before income tax
provision 1,815 950 3,100 1,637
Income tax provision 779 344 1,303 723
----------- ----------- ----------- -----------
NET EARNINGS $ 1,036 $ 606 $ 1,797 $ 914
=========== =========== =========== ===========
Earnings per common share
Basic $ .09 $ .07 $ .16 $ .10
=========== =========== =========== ===========
Diluted $ .09 $ .06 $ .15 $ .10
=========== =========== =========== ===========
Weighted Average Common Shares
Basic 11,446,720 9,200,000 11,444,610 9,200,000
Diluted 12,053,159 9,642,841 12,032,652 9,557,408
AngioDynamics, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(in thousands)
Nov 27, May 29,
2004 2004
-------- --------
(2) (1)
Assets
Current Assets
Cash and Cash Equivalents $ 11,849 $ 1,747
Debt Securities 10,354 737
Restricted Cash 102 101
Accounts Receivable, net 7,936 7,945
Stock subscription receivable 19,949
Inventories 9,045 8,545
Other current assets 1,640 1,351
-------- --------
Total current assets 40,926 40,375
Property, Plant & Equipment - at cost, net 7,558 7,343
Other Non-Current Assets 1,943 2,008
-------- --------
Total Assets $ 50,427 $ 49,726
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities $ 5,515 $ 6,394
Long-term Debt 3,020 6,100
Stockholders' Equity 41,892 37,232
-------- --------
Total Liabilities and Stockholders' Equity $ 50,427 $ 49,726
======== ========
(1) Information derived from audited financial statements
(2) Unaudited
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