UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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): April 2, 2019
AngioDynamics, Inc.
(Exact Name of Registrant as Specified in Charter)
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Delaware
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000-50761
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11-3146460
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(State or Other Jurisdiction of Incorporation)
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(Commission File
Number)
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(IRS Employer
Identification No.)
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14 Plaza Drive Latham, New York
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12110
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(Address of Principal Executive Offices)
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(Zip Code)
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(518) 795-1400
(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)
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| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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| ☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))
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| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
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Indicate by check mark whether the registrant is an emerging growth company as defined
in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected
not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 – Results of Operations and Financial Condition.
On April 2, 2019, AngioDynamics, Inc. (“AngioDynamics”) issued a press release announcing financial results for the fiscal third quarter ended
February 28, 2019. A copy of the press release is attached hereto 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 and its quarterly reports on Form 10-Q for the fiscal period ended August 31, 2018 and November 30, 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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Exhibit No.
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Description
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SIGNATURE
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.
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ANGIODYNAMICS, INC.
(Registrant)
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|||
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Date: April 2, 2019
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By:
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/s/ Stephen A. Trowbridge | |
| Name: Stephen A. Trowbridge | |||
| Title: Senior Vice President and General Counsel | |||
Exhibit 99.1
PRESS RELEASE
Investor Contact:
AngioDynamics, Inc.
Michael C. Greiner, Executive Vice President & CFO
(518) 795-1821
AngioDynamics Reports Fiscal 2019 Third Quarter
Financial Results
Fiscal 2019 Third Quarter Highlights
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●
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Net sales of $86.3 million, an increase of 3.0% year over year
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●
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Gross margin declined 10 basis points year over year to 54.1%
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●
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GAAP EPS of $0.02 per share; adjusted EPS of $0.19 per share
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●
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Cash provided by operations of $8.3 million; capital expenditures of $0.9 million
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●
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Received unconditional IDE
approval from the FDA to initiate NanoKnife® DIRECT Clinical Study
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●
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Won patent infringement dispute with Bard
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Latham, New York, April 2, 2019 – AngioDynamics, Inc. (NASDAQ: ANGO), a leading provider of innovative, minimally invasive
medical devices for vascular access, peripheral vascular disease, and oncology, today announced financial results for the third quarter of fiscal year 2019, which ended February 28, 2019.
“While we had pockets of softness in our financial performance during the third quarter, our overall performance remains strong, and
we are confident that we will achieve our full-year guidance. We saw strong growth contributions during the quarter from AngioVac and Solero, as well as from Fluid Management,” commented Jim Clemmer, President and Chief Executive Officer of
AngioDynamics, Inc. “Additionally, I am very excited that the FDA has approved the IDE for our NanoKnife® DIRECT Clinical Study, which is the next step toward this incredible technology improving the standard of care for patients
afflicted with Stage III pancreatic cancer. The IDE approval also represents a milestone for AngioDynamics as we transform into an evidence-based Company focused on therapies and outcomes facilitated by our unique technologies.”
Third Quarter 2019 Financial Results
Net sales for the third quarter of fiscal 2019 were $86.3 million, an increase of 3.0%, compared to $83.9 million a year ago. Foreign
currency translation did not have a significant impact on the Company’s sales in the quarter.
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●
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Oncology net sales were $13.9 million, an increase of 15.1% from $12.1 million a year ago, as strong sales of Solero, as well as the
recent BioSentry and RadiaDyne acquisitions, more than offset weaker than anticipated NanoKnife capital sales during the quarter.
|
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●
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Vascular Interventions and Therapies net sales in the third quarter of fiscal 2019 were $50.1 million, an increase of 3.3%, compared
to $48.5 million a year ago, as strong growth in AngioVac was partially offset by a decelerating decline in the Venous Insufficiency business.
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●
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Vascular Access net sales were $22.3 million, a decrease of 4.0% from $23.3 million a year ago, as lower sales of midlines, PICCs,
and ports were somewhat offset by strong dialysis sales.
|
Gross margin for the third quarter of fiscal 2019 declined 10 basis points to 54.1% from 54.2% a year ago. This reflects temporary headwinds
related to FX and a one-time positive impact from plant closures recognized last year. The Company continues to see gains in gross margin related to operational and supply-chain improvements.
The Company recorded net income of $0.8 million, or $0.02 per share, in the third quarter of fiscal 2019. This compares to net income of
approximately $14.0 million, or $0.37 per share, a year ago.
Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income for the third quarter of fiscal 2019 was $7.4
million, or $0.19 per share, compared to adjusted net income of $8.7 million, or $0.23 per share, in the third quarter of fiscal 2018.
Adjusted EBITDAS in the third quarter of fiscal 2019, excluding the items shown in the reconciliation table below, was $14.9 million,
compared to $16.8 million in the third quarter of fiscal 2018.
In the third quarter of fiscal 2019, the Company generated $8.3 million in operating cash flow and had capital expenditures
of $0.9 million. As of February 28, 2019, the Company
(1) Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
had $41.7 million in cash and cash equivalents and $133.8 million in debt, excluding the impact of deferred financing costs.
Nine Months Financial Results
For the nine months ended February 28, 2019:
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●
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Net sales were $263.2 million, an increase of 2.8%, compared to $256.0 million for the same period a year ago.
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●
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The Company’s net income was $2.5 million, or $0.06 per share, compared to net income of $14.2 million, or $0.38 per share, a year
ago.
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●
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Gross margin improved 270 basis points to 53.3% from 50.6% a year ago.
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●
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Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income was $22.0 million, or $0.57 per share,
compared to adjusted net income of $19.9 million, or $0.53 per share, a year ago.
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●
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Adjusted EBITDAS, excluding the items shown in the reconciliation table below, was $43.9 million, compared to $41.5 million for the
same period a year ago.
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Fiscal Year 2019 Financial Guidance
The Company reiterates its previously announced financial guidance, continuing to expect
fiscal year 2019 net sales in the range of $354 to $359 million and free cash flow in the range of $26 to $31 million. Additionally, the Company continues to expect adjusted earnings per share in the range of $0.82 to $0.86.
Conference Call
The Company’s management will host a conference call today at 8:00 a.m. ET to discuss its third quarter 2019 results.
To participate in the conference call, dial 1-877-407-0784 (domestic) or 1-201-689-8560 (international) and refer
to the passcode 13688664.
This conference call will also be webcast and can be accessed from the
“Investors” section of the AngioDynamics website at www.angiodynamics.com. The webcast replay of the call will be available at the same site approximately one hour
after the end of the call.
A recording of the call will also be available from 11:00 a.m. ET on Tuesday, April 2, 2019, until 11:59 p.m. ET on Tuesday, April 9, 2019. To hear this recording, dial
1-844-
512-2921 (domestic) or 1-412-317-6671 (international) and enter the passcode 13688664.
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, AngioDynamics has reported adjusted EBITDAS, adjusted net income, adjusted earnings per share and free cash flow. 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 AngioDynamics’ performance over different periods. By using these non-GAAP measures, management believes that investors get a better picture of the performance of AngioDynamics’
underlying business. Management encourages investors to review AngioDynamics’ financial results prepared in accordance with GAAP to understand AngioDynamics’ performance taking into account all relevant factors, including those that may only occur
from time to time but have a material impact on AngioDynamics’ financial results. Please see the tables that follow for a reconciliation of non-GAAP measures to measures prepared in accordance with GAAP.
About AngioDynamics, Inc.
AngioDynamics, Inc. is a leading provider of innovative, minimally invasive
medical devices used by professional healthcare providers for vascular access, peripheral vascular disease, and oncology. AngioDynamics’ diverse product lines include market-leading ablation systems, fluid management systems, vascular access
products, angiographic products and accessories, drainage products, thrombolytic products and venous products. For more information, visit www.angiodynamics.com.
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,” “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 fourth 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 fourth-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 acquired 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.
In the United States, the NanoKnife System has received a 510(k) clearance by the Food and Drug Administration for use in the surgical
ablation of soft tissue and is similarly approved for commercialization in Canada, the European Union, and Australia. The NanoKnife System has not been cleared for the treatment or therapy of a specific disease or condition.
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
|
Three months ended
|
Nine months ended
|
|||||||||||||||
|
February 28,
2019 |
February 28,
2018 |
February 28,
2019 |
February 28,
2018 |
|||||||||||||
|
(unaudited)
|
(unaudited)
|
|||||||||||||||
|
Net sales
|
$
|
86,341
|
$
|
83,851
|
$
|
263,184
|
$
|
255,968
|
||||||||
|
Cost of sales (exclusive of intangible amortization)
|
39,650
|
38,403
|
122,917
|
126,560
|
||||||||||||
|
Gross profit
|
46,691
|
45,448
|
140,267
|
129,408
|
||||||||||||
|
% of net sales
|
54.1
|
%
|
54.2
|
%
|
53.3
|
%
|
50.6
|
%
|
||||||||
|
Operating expenses
|
||||||||||||||||
|
Research and development
|
7,210
|
6,457
|
22,235
|
19,005
|
||||||||||||
|
Sales and marketing
|
19,413
|
18,009
|
59,115
|
56,378
|
||||||||||||
|
General and administrative
|
8,780
|
7,723
|
26,612
|
23,319
|
||||||||||||
|
Amortization of intangibles
|
5,342
|
4,191
|
14,646
|
12,433
|
||||||||||||
|
Change in fair value of contingent consideration
|
609
|
31
|
865
|
218
|
||||||||||||
|
Acquisition, restructuring and other items, net
|
2,550
|
4,177
|
9,700
|
11,932
|
||||||||||||
|
Total operating expenses
|
43,904
|
40,588
|
133,173
|
123,285
|
||||||||||||
|
Operating income
|
2,787
|
4,860
|
7,094
|
6,123
|
||||||||||||
|
Interest expense, net
|
(1,442
|
)
|
(740
|
)
|
(3,689
|
) |
(2,223
|
) |
||||||||
|
Other income (expense), net
|
(266
|
)
|
(49
|
)
|
(72
|
)
|
238
|
|||||||||
|
Total other expense, net
|
(1,708
|
)
|
(789
|
)
|
(3,761
|
) |
(1,985
|
) |
||||||||
|
Income before income taxes
|
1,079
|
4,071
|
3,333
|
4,138
|
||||||||||||
|
Income tax expense (benefit)
|
283
|
(9,948
|
)
|
866
|
(10,095
|
)
|
||||||||||
|
Net Income
|
$
|
796
|
$
|
14,019
|
$
|
2,467
|
$
|
14,233
|
||||||||
|
Earnings per share
|
||||||||||||||||
|
Basic
|
$
|
0.02
|
$
|
0.38
|
$
|
0.07
|
$
|
0.38
|
||||||||
|
Diluted
|
$
|
0.02
|
$
|
0.37
|
$
|
0.06
|
$
|
0.38
|
||||||||
|
Weighted average shares outstanding
|
||||||||||||||||
|
Basic
|
37,518
|
37,122
|
37,446
|
37,031
|
||||||||||||
|
Diluted
|
38,338
|
37,442
|
38,350
|
37,358
|
||||||||||||
ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
| Reconciliation of Net Income to non-GAAP Adjusted Net Income: | ||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||
|
February 28,
2019
|
February 28,
2018
|
February 28,
2019
|
February 28,
2018
|
|||||||||||||
|
(unaudited)
|
(unaudited)
|
|||||||||||||||
|
Net Income
|
$
|
796
|
$
|
14,019
|
$
|
2,467
|
$
|
14,233
|
||||||||
|
Amortization of intangibles
|
5,342
|
4,191
|
14,646
|
12,433
|
||||||||||||
|
Change in fair value of contingent consideration
|
609
|
31
|
865
|
218
|
||||||||||||
|
Acquisition, restructuring and other items, net (1)
|
2,550
|
4,177
|
9,700
|
11,932
|
||||||||||||
|
Tax effect of non-GAAP items (2)
|
(1,920
|
)
|
(13,766
|
)
|
(5,699
|
)
|
(18,889
|
)
|
||||||||
|
Adjusted net income
|
$
|
7,377
|
$
|
8,652
|
$
|
21,979
|
$
|
19,927
|
||||||||
|
Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
|
||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||
|
February 28,
2019
|
February 28,
2018
|
February 28,
2019
|
February 28,
2018
|
|||||||||||||
|
(unaudited)
|
(unaudited)
|
|||||||||||||||
|
Diluted earnings per share
|
$
|
0.02
|
$
|
0.37
|
$
|
0.06
|
$
|
0.38
|
||||||||
|
Amortization of intangibles
|
0.14
|
0.11
|
0.38
|
0.33
|
||||||||||||
|
Change in fair value of contingent consideration
|
0.02
|
0.00
|
0.02
|
0.01
|
||||||||||||
|
Acquisition, restructuring and other items, net (1)
|
0.07
|
0.11
|
0.25
|
0.32
|
||||||||||||
|
Tax effect of non-GAAP items (2)
|
(0.06
|
)
|
(0.36
|
)
|
(0.14
|
)
|
(0.51
|
)
|
||||||||
|
Adjusted diluted earnings per share
|
$
|
0.19
|
$
|
0.23
|
$
|
0.57
|
$
|
0.53
|
||||||||
|
Adjusted diluted share count
|
38,338 |
37,442 |
38,350 |
37,358 |
||||||||||||
(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) Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company’s U.S. deferred tax assets and an effective tax rate of 23% for February 28, 2019. For February 28, 2018,
the effective tax rate i) has been calculated using a blended rate of 30.62% for the year ended May 31, 2018 due to the enactment of the Tax Cuts and Jobs Act (the “Act”) that reduced the federal corporate tax rate to 21%; ii) excludes the benefit
recorded in Q3 fiscal 2018 resulting from remeasurement of the Company’s deferred tax assets from the Act; iii) tax effects the non-GAAP adjustment shown above and iv) assumes the Company does not have a valuation allowance on its U.S deferred tax
assets
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
|
Nine months ended
|
|||||||||||||||
|
February 28,
2019
|
February 28,
2018
|
February 28,
2019
|
February 28,
2018
|
|||||||||||||
|
(unaudited)
|
(unaudited)
|
|||||||||||||||
|
Net Income
|
$
|
796
|
$
|
14,019
|
$
|
2,467
|
$
|
14,233
|
||||||||
|
Income tax expense (benefit)
|
283
|
(9,948 |
) |
866 |
(10,095 |
) |
||||||||||
|
Interest expense, net
|
1,442
|
740 |
3,689 |
2,223 |
||||||||||||
|
Depreciation and amortization
|
6,867
|
5,718 |
19,158 |
17,395 |
||||||||||||
| Stock based compensation |
2,378 | $ |
2,058 | $ |
7,119 | $ |
5,821 | |||||||||
|
EBITDAS
|
$
|
11,766
|
$
|
12,587 |
$
|
33,299 |
$
|
29,577 |
||||||||
|
Change in fair value of contingent consideration
|
$ |
609 |
$ |
31 |
$ |
865 |
$ |
218 |
||||||||
|
Acquisition, restructuring and other items, net (1)
|
|
2,550 | 4,216 | 9,700 | 11,656 | |||||||||||
|
Adjusted EBITDAS
|
$ |
14,925 | $ |
16,834 | $ |
43,864 | $ |
41,451 | ||||||||
|
Per diluted share:
|
|
|
||||||||||||||
|
EBITDAS
|
$ |
0.31 | $ |
0.34 | $ |
0.87 | $ |
0.79 | ||||||||
|
Adjusted EBITDAS
|
$ |
0.39 | $ |
0.45 | $ |
1.14 | $ |
1.11 | ||||||||
ANGIODYNAMICS, INC. AND SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(in thousands)
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||||||||||||||||||||||
|
Feb 28,
2019
|
Feb 28,
2018
|
%
Growth
|
Currency
Impact
|
Constant
Currency
Growth
|
Feb 28,
2019
|
Feb 28,
2018
|
%
Growth
|
Currency
Impact
|
Constant
Currency
Growth
|
|||||||||||||||||||||||||||||||
|
Net Sales by Product Category
|
||||||||||||||||||||||||||||||||||||||||
|
Vascular Interventions & Therapies
|
$
|
50,115
|
$
|
48,517
|
3.3
|
%
|
$
|
152,603
|
$
|
149,751
|
1.9
|
%
|
||||||||||||||||||||||||||||
|
Vascular Access
|
22,348
|
23,279
|
(4.0)
|
%
|
69,861
|
69,091
|
1.1
|
%
|
||||||||||||||||||||||||||||||||
|
Oncology
|
13,878
|
12,055
|
15.1
|
%
|
40,720
|
37,126
|
9.7
|
%
|
||||||||||||||||||||||||||||||||
|
Total
|
$
|
86,341
|
$
|
83,851
|
3.0
|
%
|
0.0
|
%
|
3.4
|
%
|
$
|
263,184
|
$
|
255,968
|
2.8
|
%
|
0.0
|
%
|
3.1
|
%
|
||||||||||||||||||||
|
Net Sales by Geography
|
||||||||||||||||||||||||||||||||||||||||
|
United States
|
$
|
68,331
|
$
|
65,787
|
3.9
|
%
|
0.0
|
%
|
3.9
|
%
|
$
|
207,898
|
$
|
203,020
|
2.4
|
%
|
0.0
|
%
|
2.4
|
%
|
||||||||||||||||||||
|
International
|
18,010
|
18,064
|
(0.3)
|
%
|
2.0
|
%
|
1.9
|
%
|
55,286
|
52,948
|
4.4
|
%
|
2.0
|
%
|
5.6
|
%
|
||||||||||||||||||||||||
|
Total
|
$
|
86,341
|
$
|
83,851
|
3.0
|
%
|
0.0
|
%
|
3.4
|
%
|
$
|
263,184
|
$
|
255,968
|
2.8
|
%
|
0.0
|
%
|
3.1
|
%
|
||||||||||||||||||||
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
|
February 28, 2019
|
May 31, 2018
|
|||||||
|
(unaudited)
|
(audited)
|
|||||||
|
Assets
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$
|
41,704
|
$
|
74,096
|
||||
|
Marketable securities
|
—
|
1,317
|
||||||
|
Total cash and investments
|
41,704
|
75,413
|
||||||
|
Accounts receivable, net
|
44,208
|
39,401
|
||||||
|
Inventories
|
52,388
|
48,916
|
||||||
|
Prepaid expenses and other
|
4,440
|
4,302
|
||||||
|
Total current assets
|
142,740
|
168,032
|
||||||
|
Property, plant and equipment, net
|
41,207
|
42,461
|
||||||
|
Other assets
|
3,610
|
3,417
|
||||||
|
Intangible assets, net
|
166,564
|
130,310
|
||||||
|
Goodwill
|
423,674
|
361,252
|
||||||
|
Total Assets
|
$
|
777,795
|
$
|
705,472
|
||||
|
Liabilities and Stockholders’ Equity
|
||||||||
|
Current Liabilities
|
||||||||
|
Accounts payable
|
$
|
18,443
|
$
|
15,775
|
||||
|
Accrued liabilities
|
21,929
|
34,426
|
||||||
|
Current portion of long-term debt
|
6,250
|
5,000
|
||||||
|
Current portion of contingent consideration
|
6,673
|
2,100
|
||||||
|
Total current liabilities
|
53,295
|
57,301
|
||||||
|
Long-term debt, net of current portion
|
126,837
|
86,621
|
||||||
|
Deferred income taxes
|
17,834
|
17,173
|
||||||
|
Contingent consideration, net of current portion
|
20,454
|
1,161
|
||||||
|
Other long-term liabilities
|
5,296
|
621
|
||||||
|
Total Liabilities
|
223,716
|
162,877
|
||||||
|
Stockholders’ equity
|
554,079
|
542,595
|
||||||
|
Total Liabilities and Stockholders’ Equity
|
$
|
777,795
|
$
|
705,472
|
||||
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
|
|
Three months ended |
Nine months ended |
||||||||||||||
|
|
February 28, |
February 28, |
February 28, |
February 28, |
||||||||||||
|
|
(unaudited) |
(unaudited) |
||||||||||||||
|
Cash flows from operating activities: |
||||||||||||||||
|
Net Income |
$ |
796 |
$ |
14,019 |
$ |
2,467 |
$ |
14,233 |
||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
|
Depreciation and amortization |
6,867 |
5,718 |
19,158 |
17,395 |
||||||||||||
|
Stock based compensation |
2,378 |
2,058 |
7,119 |
5,821 |
||||||||||||
|
Change in fair value of contingent consideration |
609 |
31 |
865 |
218 |
||||||||||||
|
Deferred income taxes |
138 |
(10,044 |
) |
633 |
(10,150 |
) |
||||||||||
|
Change in accounts receivable allowances |
(24 |
) |
(315 |
) |
(99 |
) |
(35 |
) |
||||||||
|
Fixed and intangible asset impairments and disposals |
677 |
22 |
689 |
30 |
||||||||||||
|
Other |
12 |
(78 |
) |
(5 |
) |
(635 |
) |
|||||||||
|
Changes in operating assets and liabilities, net of acquisitions: |
||||||||||||||||
|
Accounts receivable |
(785 |
) |
598 |
(3,853 |
) |
2,897 |
||||||||||
|
Inventories |
(1,747 |
) |
(2,511 |
) |
(2,702 |
) |
(1,913 |
) |
||||||||
|
Prepaid expenses and other |
(325 |
) |
155 |
(1,508 |
) |
(548 |
) |
|||||||||
|
Accounts payable, accrued and other liabilities |
(254 |
) |
(5,338 |
) |
(10,336 |
) |
(9,797 |
) |
||||||||
|
Net cash provided by operating activities |
8,342 |
4,315 |
12,428 |
17,516 |
||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||
|
Additions to property, plant and equipment |
(887 |
) |
(425 |
) |
(2,303 |
) |
(1,647 |
) |
||||||||
|
Acquisition of intangibles |
— |
(1,265 |
) |
— |
(1,265 |
) |
||||||||||
|
Cash paid in acquisition |
— |
— |
(84,920 |
) |
— |
|||||||||||
|
Proceeds from sale of marketable securities |
1,350 |
— |
1,350 |
— |
||||||||||||
|
Net cash used in investing activities |
463 |
(1,690 |
) |
(85,873 |
) |
(2,912 |
) |
|||||||||
|
Cash flows from financing activities: |
||||||||||||||||
|
Proceeds from issuance of long-term debt |
— |
— |
55,000 |
— |
||||||||||||
|
Repayment of long-term debt |
(11,250 |
) |
(1,250 |
) |
(13,750 |
) |
(3,750 |
) |
||||||||
|
Payment of contingent consideration previously established in purchase accounting |
— |
— |
(2,100 |
) |
(9,500 |
) |
||||||||||
|
Proceeds from exercise of stock options and employee stock purchase plan |
1,169 |
822 |
2,023 |
2,560 |
||||||||||||
|
Net cash provided by (used) in financing activities |
(10,081 |
) |
(428 |
) |
41,173 |
(10,690 |
) |
|||||||||
|
Effect of exchange rate changes on cash and cash equivalents |
160 |
239 |
(120 |
) |
834 |
|||||||||||
|
Increase (decrease) in cash and cash equivalents |
(1,116 |
) |
2,436 |
(32,392 |
) |
4,748 |
||||||||||
|
Cash and cash equivalents at beginning of period |
42,820 |
49,856 |
74,096 |
47,544 |
||||||||||||
|
Cash and cash equivalents at end of period |
$ |
41,704 |
$ |
52,292 |
$ |
41,704 |
$ |
52,292 |
||||||||
ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands)
|
Reconciliation of Free Cash Flows:
|
||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||
|
February 28,
2019 |
February 28,
2018 |
February 28,
2019 |
February 28,
2018 |
|||||||||||||
|
(unaudited)
|
(unaudited)
|
|||||||||||||||
|
Net cash provided by operating activities
|
$
|
8,342
|
$
|
4,315
|
$
|
12,428
|
$
|
17,516
|
||||||||
|
Additions to property, plant and equipment
|
(887
|
)
|
(425
|
)
|
(2,303
|
)
|
(1,647
|
)
|
||||||||
|
Free Cash Flow
|
$
|
7,455
|
$
|
3,890
|
$
|
10,125
|
$
|
15,869
|
||||||||