Delaware
|
000-50761
|
11-3146460
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File
Number)
|
(IRS Employer
Identification No.)
|
|
14 Plaza Drive Latham, New York
|
12110 | |
(Address of Principal Executive Offices)
|
(Zip Code) |
(518) 795-1400
|
(Registrant’s telephone number, including area code)
|
☐ |
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))
|
Exhibit No.
|
Description
|
|
99.1
|
Press Release dated March 30, 2017.
|
ANGIODYNAMICS, INC. | |||
(Registrant) | |||
Date: March 30, 2017
|
By:
|
/s/ Stephen A. Trowbridge | |
Stephen A. Trowbridge | |||
Senior Vice President and General Counsel | |||
Exhibit No.
|
Description
|
|
99.1
|
Press Release dated March 30, 2017.
|
Company Contact:
|
Investor Relations Contacts:
|
Media Contact:
|
AngioDynamics Inc.
Caitlin Stefanik
(518) 795-1418
cstefanik@angiodynamics.com
|
FTI Consulting
Jim Polson
(312) 553-6730
Jim.Polson@fticonsulting.com,
Kotaro Yoshida
(212) 850-5690
Kotaro.Yoshida@fticonsulting.com
|
FTI Consulting
Kimberly Ha
(212) 850-5612
kimberly.ha@fticonsulting.com
|
·
|
Q3 net sales of $85.6 million, down 2% year-over-year
|
·
|
Q3 GAAP earnings per share of $0.08; non-GAAP adjusted EPS up 27% from Q3 Fiscal 2016
|
·
|
Q3 operating cash generation of $14.4 million; free cash flow generation of $14.0 million
|
·
|
Revised FY2017 revenue and adjusted EPS guidance; free cash flow guidance unchanged
|
Three months ended
|
Nine months ended
|
|||||||||||||||
Feb 28,
|
Feb, 29
|
Feb 28,
|
Feb, 29
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Net sales
|
$
|
85,602
|
$
|
87,434
|
$
|
262,729
|
$
|
260,471
|
||||||||
Cost of sales (exclusive of intangible amortization)
|
41,810
|
43,900
|
128,895
|
127,682
|
||||||||||||
Gross profit
|
43,792
|
43,534
|
133,834
|
132,789
|
||||||||||||
% of net sales
|
51.2
|
%
|
49.8
|
%
|
50.9
|
%
|
51.0
|
%
|
||||||||
Operating expenses
|
||||||||||||||||
Research and development
|
5,951
|
5,808
|
18,573
|
18,116
|
||||||||||||
Sales and marketing
|
19,469
|
20,955
|
58,481
|
63,534
|
||||||||||||
General and administrative
|
7,000
|
6,901
|
22,952
|
22,897
|
||||||||||||
Amortization of intangibles
|
4,360
|
4,458
|
12,886
|
13,356
|
||||||||||||
Change in fair value of contingent consideration
|
122
|
(31
|
)
|
(15,386
|
)
|
630
|
||||||||||
Acquisition, restructuring and other items, net
|
1,750
|
3,042
|
12,028
|
9,098
|
||||||||||||
Medical device excise tax
|
-
|
435
|
-
|
2,416
|
||||||||||||
Total operating expenses
|
38,652
|
41,568
|
109,534
|
130,047
|
||||||||||||
Operating income
|
5,140
|
1,966
|
24,300
|
2,742
|
||||||||||||
Other (expense), net
|
(583
|
)
|
(1,021
|
)
|
(2,425
|
)
|
(3,173
|
)
|
||||||||
Income (loss) before income taxes
|
4,557
|
945
|
21,875
|
(431
|
)
|
|||||||||||
Income tax expense (benefit)
|
1,670
|
351
|
3,954
|
84
|
||||||||||||
Net income (loss)
|
$
|
2,887
|
$
|
594
|
$
|
17,921
|
$
|
(515
|
)
|
|||||||
Earnings (loss) per share
|
||||||||||||||||
Basic
|
$
|
0.08
|
$
|
0.02
|
$
|
0.49
|
$
|
(0.01
|
)
|
|||||||
Diluted
|
$
|
0.08
|
$
|
0.02
|
$
|
0.48
|
$
|
(0.01
|
)
|
|||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic
|
36,625
|
36,146
|
36,557
|
36,083
|
||||||||||||
Diluted
|
37,126
|
36,390
|
37,068
|
36,083
|
Reconciliation of Gross Profit to non-GAAP Adjusted Gross Profit
|
||||||||||||||||
Three months ended
|
Nine months ended
|
|||||||||||||||
Feb 28,
|
Feb, 29
|
Feb 28,
|
Feb, 29
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Gross profit
|
$
|
43,792
|
$
|
43,534
|
$
|
133,834
|
$
|
132,789
|
||||||||
Recall expenses included in cost of sales
|
14
|
6
|
216
|
(92
|
)
|
|||||||||||
Adjusted gross profit
|
$
|
43,806
|
$
|
43,540
|
$
|
134,050
|
$
|
132,697
|
||||||||
Adjusted gross profit % of sales
|
51.2
|
%
|
49.8
|
%
|
51.0
|
%
|
50.9
|
%
|
||||||||
Reconciliation of Net Income to non-GAAP Adjusted Net Income:
|
||||||||||||||||
Three months ended
|
Nine months ended
|
|||||||||||||||
Feb 28,
|
Feb, 29
|
Feb 28,
|
Feb, 29
|
|||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Net income (loss)
|
$
|
2,887
|
$
|
594
|
$
|
17,921
|
$
|
(515
|
)
|
|||||||
Recall expenses included in cost of sales
|
14
|
6
|
216
|
(92
|
)
|
|||||||||||
Amortization of intangibles
|
4,360
|
4,458
|
12,886
|
13,356
|
||||||||||||
Change in fair value of contingent consideration
|
122
|
(31
|
)
|
(15,386
|
)
|
630
|
||||||||||
Acquisition, restructuring and other items, net (1)
|
1,750
|
3,042
|
12,028
|
9,098
|
||||||||||||
Tax effect of non-GAAP items (2)
|
(2,219
|
)
|
(2,680
|
)
|
(7,429
|
)
|
(8,038
|
)
|
||||||||
Adjusted net income
|
$
|
6,914
|
$
|
5,389
|
$
|
20,236
|
$
|
14,439
|
||||||||
Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
|
||||||||||||||||
Three months ended
|
Nine months ended
|
|||||||||||||||
Feb 28,
|
Feb, 29
|
Feb 28,
|
Feb, 29
|
|||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Diluted earnings (loss) per share
|
$
|
0.08
|
$
|
0.02
|
$
|
0.48
|
$
|
(0.01
|
)
|
|||||||
Recall expenses included in cost of sales
|
$
|
0.00
|
0.00
|
$
|
0.01
|
(0.00
|
)
|
|||||||||
Amortization of intangibles
|
$
|
0.12
|
0.12
|
$
|
0.34
|
0.37
|
||||||||||
Change in fair value of contingent consideration
|
$
|
0.00
|
(0.00
|
)
|
$
|
(0.41
|
)
|
0.02
|
||||||||
Acquisition, restructuring and other items, net (1)
|
$
|
0.05
|
0.08
|
$
|
0.33
|
0.25
|
||||||||||
Tax effect of non-GAAP items (2)
|
$
|
(0.06
|
)
|
(0.07
|
)
|
$
|
(0.20
|
)
|
(0.22
|
)
|
||||||
Adjusted diluted earnings per share
|
$
|
0.19
|
$
|
0.15
|
$
|
0.55
|
$
|
0.40
|
||||||||
Adjusted diluted sharecount
|
37,126
|
36,390
|
37,068
|
36,083
|
(1) Includes costs related to mergers and acquisition activities, integrations, restructurings, asset impairments and write-offs, litigation, and other items.
|
|||||||||
(2) Represents the net tax effect of non-GAAP adjustments. Based on our historical non-GAAP earnings, our tax effect of non-GAAP items has been calculated assuming no valuation allowance on our deferred tax assets and an effective tax rate of 36%.
|
|||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA:
|
||||||||||||||||
Three months ended
|
Nine months ended
|
|||||||||||||||
Feb 28,
|
Feb, 29
|
Feb 28,
|
Feb, 29
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Net income (loss)
|
$
|
2,887
|
$
|
594
|
$
|
17,921
|
$
|
(515
|
)
|
|||||||
Income tax expense (benefit)
|
(1,670
|
)
|
(351
|
)
|
(3,954
|
)
|
(84
|
)
|
||||||||
Other (expense), net
|
(583
|
)
|
(1,021
|
)
|
(2,425
|
)
|
(3,173
|
)
|
||||||||
Depreciation and amortization
|
6,091
|
6,860
|
18,168
|
20,931
|
||||||||||||
EBITDA
|
11,231
|
8,826
|
42,468
|
23,673
|
||||||||||||
Recall expenses included in cost of sales
|
14
|
6
|
216
|
(92
|
)
|
|||||||||||
Change in fair value of contingent consideration
|
122
|
(31
|
)
|
(15,386
|
)
|
630
|
||||||||||
Acquisition, restructuring and other items, net (1,2)
|
1,750
|
2,794
|
12,028
|
8,097
|
||||||||||||
Credit card fees
|
702
|
654
|
2,099
|
2,107
|
||||||||||||
Stock-based compensation
|
1,693
|
1,640
|
5,078
|
4,500
|
||||||||||||
Adjusted EBITDA
|
$
|
15,512
|
$
|
13,889
|
$
|
46,503
|
$
|
38,915
|
||||||||
Per diluted share:
|
||||||||||||||||
EBITDA
|
$
|
0.30
|
$
|
0.24
|
$
|
1.15
|
$
|
0.66
|
||||||||
Adjusted EBITDA
|
$
|
0.42
|
$
|
0.38
|
$
|
1.25
|
$
|
1.08
|
(1) Includes costs related to mergers and acquisition activities, integrations, restructurings, asset impairments and write-offs, litigation, and other items.
|
|||||||||||
(2) Excludes depreciation expense captured in the depreciation and amortization component of the reconciliation.
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||||||||||||||||||||||||||
Currency
|
Constant
|
Currency
|
Constant
|
|||||||||||||||||||||||||||||||||||||||||
Feb 28,
|
Feb, 29
|
%
|
Impact
|
Currency
|
Feb 28,
|
Feb, 29
|
%
|
Impact
|
Currency
|
|||||||||||||||||||||||||||||||||||
2017
|
2016
|
Growth
|
(Pos) Neg
|
Growth
|
2017
|
2016
|
Growth
|
(Pos) Neg
|
Growth
|
|||||||||||||||||||||||||||||||||||
Net Sales by Product Category
|
||||||||||||||||||||||||||||||||||||||||||||
Peripheral Vascular
|
$
|
48,496
|
$
|
49,779
|
-3
|
%
|
-3
|
%
|
$
|
152,800
|
$
|
147,940
|
3
|
%
|
||||||||||||||||||||||||||||||
Vascular Access
|
23,680
|
24,911
|
-5
|
%
|
-5
|
%
|
72,238
|
74,576
|
-3
|
%
|
||||||||||||||||||||||||||||||||||
Oncology/Surgery
|
12,993
|
12,054
|
8
|
%
|
8
|
%
|
35,837
|
35,859
|
0
|
%
|
||||||||||||||||||||||||||||||||||
Total Excluding Supply Agreement
|
85,169
|
86,744
|
-2
|
%
|
-2
|
%
|
0
|
%
|
-2
|
%
|
260,875
|
258,375
|
1
|
%
|
0
|
%
|
1
|
%
|
||||||||||||||||||||||||||
Supply Agreement
|
433
|
690
|
-37
|
%
|
-37
|
%
|
0
|
%
|
-37
|
%
|
1,854
|
2,096
|
-12
|
%
|
0
|
%
|
-12
|
%
|
||||||||||||||||||||||||||
Total
|
$
|
85,602
|
$
|
87,434
|
-2
|
%
|
-2
|
%
|
0
|
%
|
-2
|
%
|
$
|
262,729
|
$
|
260,471
|
1
|
%
|
0
|
%
|
1
|
%
|
||||||||||||||||||||||
$
|
-
|
$
|
-
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Net Sales by Geography
|
||||||||||||||||||||||||||||||||||||||||||||
United States
|
$
|
67,366
|
$
|
69,501
|
-3
|
%
|
-3
|
%
|
0
|
%
|
-3
|
%
|
$
|
209,901
|
$
|
208,523
|
1
|
%
|
0
|
%
|
1
|
%
|
||||||||||||||||||||||
International
|
17,803
|
17,243
|
3
|
%
|
3
|
%
|
1
|
%
|
4
|
%
|
50,974
|
49,852
|
2
|
%
|
2
|
%
|
4
|
%
|
||||||||||||||||||||||||||
Supply Agreement
|
433
|
690
|
-37
|
%
|
-37
|
%
|
0
|
%
|
-37
|
%
|
1,854
|
2,096
|
-12
|
%
|
0
|
%
|
-12
|
%
|
||||||||||||||||||||||||||
Total
|
$
|
85,602
|
$
|
87,434
|
-2
|
%
|
-2
|
%
|
0
|
%
|
-2
|
%
|
$
|
262,729
|
$
|
260,471
|
1
|
%
|
0
|
%
|
1
|
%
|
Feb 28,
|
May 31,
|
|||||||
2017
|
2016
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
35,571
|
$
|
32,333
|
||||
Marketable securities
|
1,203
|
1,653
|
||||||
Total cash and investments
|
36,774
|
33,986
|
||||||
Accounts receivable, net
|
46,302
|
52,867
|
||||||
Inventories
|
57,681
|
55,370
|
||||||
Prepaid income taxes
|
309
|
788
|
||||||
Prepaid expenses and other
|
3,985
|
3,243
|
||||||
Total current assets
|
145,051
|
146,254
|
||||||
Property, plant and equipment, net
|
46,180
|
48,284
|
||||||
Other non-current assets
|
1,757
|
3,827
|
||||||
Intangible assets, net
|
150,078
|
166,577
|
||||||
Goodwill
|
361,252
|
361,252
|
||||||
Total Assets
|
$
|
704,318
|
$
|
726,194
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$
|
15,357
|
$
|
15,616
|
||||
Accrued liabilities
|
20,753
|
21,942
|
||||||
Current portion of long-term debt
|
5,000
|
16,250
|
||||||
Current portion of contingent consideration
|
9,531
|
12,919
|
||||||
Total current liabilities
|
50,641
|
66,727
|
||||||
Long-term debt, net of current portion
|
92,519
|
104,291
|
||||||
Deferred income taxes, long-term
|
25,304
|
21,684
|
||||||
Contingent consideration, net of current portion
|
3,104
|
25,356
|
||||||
Other long-term liabilities
|
1,000
|
908
|
||||||
Total Liabilities
|
172,568
|
218,966
|
||||||
Stockholders’ equity
|
531,750
|
507,228
|
||||||
Total Liabilities and Stockholders’ Equity
|
$
|
704,318
|
$
|
726,194
|
Three months ended
|
Nine months ended
|
|||||||||||||||
Feb 28,
|
Feb, 29
|
Feb 28,
|
Feb, 29
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income (loss)
|
$
|
2,887
|
$
|
594
|
$
|
17,921
|
$
|
(515
|
)
|
|||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
6,169
|
6,979
|
18,455
|
21,289
|
||||||||||||
Stock-based compensation
|
1,693
|
1,640
|
5,078
|
4,500
|
||||||||||||
Change in fair value of contingent consideration
|
122
|
(31
|
)
|
(15,386
|
)
|
630
|
||||||||||
Fixed and intangible asset impairments and disposals
|
78
|
53
|
3,822
|
675
|
||||||||||||
Deferred income taxes
|
1,554
|
203
|
3,624
|
(388
|
)
|
|||||||||||
Change in accounts receivable allowance
|
5
|
1,017
|
(605
|
)
|
1,355
|
|||||||||||
Write-off of other assets
|
-
|
-
|
2,685
|
-
|
||||||||||||
Other
|
41
|
261
|
(535
|
)
|
-
|
|||||||||||
Changes in operating assets and liabilities, net of acquisitions:
|
||||||||||||||||
Receivables
|
3,855
|
(2,416
|
)
|
6,898
|
2,492
|
|||||||||||
Inventories
|
(1,027
|
)
|
4,930
|
(2,585
|
)
|
1,457
|
||||||||||
Prepaid and other assets
|
(747
|
)
|
1,359
|
(1,215
|
)
|
(782
|
)
|
|||||||||
Accounts payable and accrued liabilities
|
(265
|
)
|
(2,195
|
)
|
(1,405
|
)
|
(4,041
|
)
|
||||||||
Net cash provided by (used in) operating activities
|
14,365
|
12,394
|
36,752
|
26,672
|
||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Additions to property, plant and equipment
|
(412
|
)
|
(727
|
)
|
(2,258
|
)
|
(1,895
|
)
|
||||||||
Acquisition of businesses, net of cash acquired
|
-
|
(2,000
|
)
|
-
|
(2,000
|
)
|
||||||||||
Acquisition of intangible assets
|
-
|
(18
|
)
|
-
|
(18
|
)
|
||||||||||
Proceeds from sale or maturity of marketable securities
|
-
|
-
|
450
|
25
|
||||||||||||
Net cash provided by (used in) investing activities
|
(412
|
)
|
(2,745
|
)
|
(1,808
|
)
|
(3,888
|
)
|
||||||||
Cash flows from financing activities:
|
||||||||||||||||
Repayment of long-term debt
|
(17,721
|
)
|
(7,500
|
)
|
(139,131
|
)
|
(11,250
|
)
|
||||||||
Proceeds from issuance of long-term debt and revolver borrowings
|
-
|
-
|
116,471
|
-
|
||||||||||||
Deferred financing costs on long-term debt
|
(158
|
)
|
-
|
(1,335
|
)
|
-
|
||||||||||
Payment of Contingent Consideration
|
-
|
-
|
(9,850
|
)
|
(9,850
|
)
|
||||||||||
Repurchase of shares
|
-
|
-
|
(7,840
|
)
|
-
|
|||||||||||
Proceeds from exercise of stock options and ESPP
|
3,865
|
703
|
10,269
|
1,933
|
||||||||||||
Net cash provided by (used in) financing activities
|
(14,014
|
)
|
(6,797
|
)
|
(31,416
|
)
|
(19,167
|
)
|
||||||||
Effect of exchange rate changes on cash
|
(32
|
)
|
49
|
(290
|
)
|
(111
|
)
|
|||||||||
Increase (Decrease) in cash and cash equivalents
|
(93
|
)
|
2,901
|
3,238
|
3,506
|
|||||||||||
Cash and cash equivalents
|
||||||||||||||||
Beginning of period
|
35,664
|
18,996
|
32,333
|
18,391
|
||||||||||||
End of period
|
$
|
35,571
|
$
|
21,897
|
$
|
35,571
|
$
|
21,897
|
Reconciliation of Free Cash Flows:
|
||||||||||||||||
Three months ended
|
Nine months ended
|
|||||||||||||||
Feb 28,
|
Feb, 29
|
Feb 28,
|
Feb, 29
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
14,365
|
$
|
12,394
|
$
|
36,752
|
$
|
26,672
|
||||||||
Additions to property, plant and equipment
|
(412
|
)
|
(727
|
)
|
(2,258
|
)
|
(1,895
|
)
|
||||||||
Free Cash Flow
|
$
|
13,953
|
$
|
11,667
|
$
|
34,494
|
$
|
24,777
|