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Item 2.02 – Results of Operations and Financial Condition.

On September 27, 2018, AngioDynamics, Inc. (“AngioDynamics”) issued a press release announcing financial results for the fiscal first quarter ended August 31, 2018. A copy of the press release is being furnished herewith as Exhibit 99.1.

The information set forth in Item 2.02 of this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Forward-Looking Statements

This document and its attachments contain 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 third 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 third-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 purchased 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.

Item 9.01 – Financial Statements and Exhibits

(d)     Exhibits.

 

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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:
		Three months ended
		August 31,				August 31,
		2018				2017
		(unaudited)
Net loss		$	(469	)		$	(35	)
Income tax expense			(8	)			19
Interest expense, net			917				723
Depreciation and amortization			5,599				5,793
Stock-based compensation			2,150				1,797
EBITDAS		$	8,189			$	8,297
Change in fair value of contingent consideration		$	12			$	105
Acquisition, restructuring and other items, net (1,2)			4,422				2,881
Adjusted EBITDAS		$	12,623			$	11,283
Per diluted share:
EBITDAS		$	0.21			$	0.22
Adjusted EBITDAS		$	0.33			$	0.30

(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
															Currency					Constant
		August 31,				August 31,				%					Impact					Currency
		2018				2017				Growth					(Pos) Neg					Growth
		(unaudited)
Net Sales by Product Category
Vascular Interventions and Therapies		$	49,995			$	49,865				0.3	%
Vascular Access			23,790				23,238				2.4	%
Oncology			11,555				12,308				(6.1	)%
Total		$	85,340			$	85,411				(0.1	)%				(0.0	)%				(0.1	)%
Net Sales by Geography
United States		$	67,684			$	68,931				(1.8	)%				(0.0	)%				(1.8	)%
International			17,656				16,480				7.1	%				(0.0	)%				7.3	%
Total		$	85,340			$	85,411				(0.1	)%				(0.0	)%				(0.1	)%

 

 

 

ANGIODYNAMICS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

		August 31,				May 31,
		2018				2018
		(unaudited)				(audited)
Assets
Current Assets
Cash and cash equivalents		$	24,762			$	74,096
Marketable securities			1,350				1,317
Total cash and investments			26,112				75,413
Accounts receivable, net			40,164				39,401
Inventories			49,721				48,916
Prepaid expenses and other			4,888				4,302
Total current assets			120,885				168,032
Property, plant and equipment, net			42,163				42,461
Other assets			3,637				3,417
Intangible assets, net			144,194				130,310
Goodwill			382,992				361,252
Total Assets		$	693,871			$	705,472
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable		$	16,916			$	15,775
Accrued liabilities			19,900				34,426
Current portion of long-term debt			5,000				5,000
Current portion of contingent consideration			3,973				2,100
Total current liabilities			45,789				57,301
Long-term debt, net of current portion			85,444				86,621
Deferred income taxes			17,154				17,173
Contingent consideration, net of current portion			-				1,161
Other long-term liabilities			595				621
Total Liabilities			148,982				162,877
Stockholders' equity			544,889				542,595
Total Liabilities and Stockholders' Equity		$	693,871			$	705,472

 

 

 

ANGIODYNAMICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

		Three months ended
		August 31,				August 31,
		2018				2017
		(unaudited)
Cash flows from operating activities:
Net  loss		$	(469	)		$	(35	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			5,599				5,793
Stock-based compensation			2,150				1,797
Change in fair value of contingent consideration			12				105
Deferred income taxes			(10	)			(82	)
Change in accounts receivable allowance			(228	)			278
Other			25				(567	)
Changes in operating assets and liabilities:
Accounts receivables			(562	)			3,103
Inventories			(761	)			(781	)
Prepaid expenses and other			(1,200	)			620
Accounts payable, accrued and other liabilities			(13,429	)			(7,195	)
Net cash provided by (used in) operating activities			(8,873	)			3,036
Cash flows from investing activities:
Additions to property, plant and equipment			(682	)			(501	)
Cash paid for acquisition			(37,000	)			-
Net cash used in investing activities			(37,682	)			(501	)
Cash flows from financing activities:
Repayment of long-term debt			(1,250	)			(1,250	)
Payment of acquisition related contingent consideration			(2,100	)			(2,100	)
Proceeds from exercise of stock options and employee stock purchase plan			705				812
Net cash used in financing activities			(2,645	)			(2,538	)
Effect of exchange rate changes on cash and cash equivalents			(134	)			659
Increase (decrease) in cash and cash equivalents			(49,334	)			656
Cash and cash equivalents at beginning of period			74,096				47,544
Cash and cash equivalents at end of period		$	24,762			$	48,200

 

 

ANGIODYNAMICS, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(in thousands)

Reconciliation of Free Cash Flows:
		Three months ended
		August 31,				August 31,
		2018				2017
		(unaudited)
Net cash provided by (used in) operating activities		$	(8,873	)		$	3,036
Additions to property, plant and equipment			(682	)			(501	)
Free Cash Flow		$	(9,555	)		$	2,535

 

 

 

 

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