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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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(Address of Principal Executive Offices)
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(Zip Code)
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(
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(Registrant’s telephone number, including area code)
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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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Title of each class
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Trading Symbol(s)
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Name of each exchange on which
registered |
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Exhibit No.
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Description
|
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Press Release, dated September 30, 2021.
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||
Presentation, dated September 30, 2021.
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ANGIODYNAMICS, INC. |
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(Registrant) |
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Date: September 30, 2021
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By:
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/s/ Richard C. Rosenzweig |
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Name: Richard C. Rosenzweig |
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Title: Senior Vice President, General
Counsel and Secretary
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•
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Net sales of $77.0 million increased 9.6% compared to the prior-year quarter
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•
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Gross margin of 52.1% increased 120 basis points year over year
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•
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GAAP loss per share of $0.18, and adjusted loss per share of $0.02
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•
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The Company commenced a Limited Market Release of its AlphaVac Mechanical Thrombectomy device in September
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ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
CONSOLIDATED INCOME STATEMENTS
|
(in thousands, except per share data)
|
Three Months Ended
|
|||||||
Aug 31, 2021
|
Aug 31, 2020
|
||||||
(unaudited)
|
|||||||
Net sales
|
$
|
76,971
|
$
|
70,216
|
|||
Cost of sales (exclusive of intangible amortization)
|
36,832
|
34,452
|
|||||
Gross profit
|
40,139
|
35,764
|
|||||
% of net sales
|
52.1
|
%
|
50.9
|
%
|
|||
Operating expenses
|
|||||||
Research and development
|
7,394
|
9,009
|
|||||
Sales and marketing
|
24,446
|
17,705
|
|||||
General and administrative
|
8,943
|
8,557
|
|||||
Amortization of intangibles
|
4,821
|
4,953
|
|||||
Change in fair value of contingent consideration
|
195
|
(657)
|
|||||
Acquisition, restructuring and other items, net
|
2,440
|
1,319
|
|||||
Total operating expenses
|
48,239
|
40,886
|
|||||
Operating loss
|
(8,100)
|
(5,122)
|
|||||
Interest expense, net
|
(156)
|
(215)
|
|||||
Other income (expense), net
|
(352)
|
524
|
|||||
Total other income (expense), net
|
(508)
|
309
|
|||||
Loss before income tax benefit
|
(8,608)
|
(4,813)
|
|||||
Income tax benefit
|
(1,636)
|
(545)
|
|||||
Net loss
|
$
|
(6,972)
|
$
|
(4,268)
|
|||
Loss per share
|
|||||||
Basic
|
$
|
(0.18)
|
$
|
(0.11)
|
|||
Diluted
|
$
|
(0.18)
|
$
|
(0.11)
|
|||
Weighted average shares outstanding
|
|||||||
Basic
|
38,734
|
38,157
|
|||||
Diluted
|
38,734
|
38,157
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
GAAP TO NON-GAAP RECONCILIATION
|
(in thousands, except per share data)
|
Reconciliation of Net Loss to non-GAAP Adjusted Net Income (Loss):
|
|||||||
Three Months Ended
|
|||||||
Aug 31, 2021
|
Aug 31, 2020
|
||||||
(unaudited)
|
|||||||
Net loss
|
$
|
(6,972)
|
$
|
(4,268)
|
|||
Amortization of intangibles
|
4,821
|
4,953
|
|||||
Change in fair value of contingent consideration
|
195
|
(657)
|
|||||
Acquisition, restructuring and other items, net (1)
|
2,440
|
1,319
|
|||||
Tax effect of non-GAAP items (2)
|
(1,371)
|
(729)
|
|||||
Adjusted net income (loss)
|
$
|
(887)
|
$
|
618
|
|||
Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings (Loss) Per Share:
|
|||||||
Three Months Ended
|
|||||||
Aug 31, 2021
|
Aug 31, 2020
|
||||||
(unaudited)
|
|||||||
Diluted loss per share
|
$
|
(0.18)
|
$
|
(0.11)
|
|||
Amortization of intangibles
|
0.12
|
0.13
|
|||||
Change in fair value of contingent consideration
|
0.01
|
(0.02)
|
|||||
Acquisition, restructuring and other items, net (1)
|
0.06
|
0.03
|
|||||
Tax effect of non-GAAP items (2)
|
(0.03)
|
(0.01)
|
|||||
Adjusted diluted earnings (loss) per share
|
$
|
(0.02)
|
$
|
0.02
|
|||
Adjusted diluted sharecount (3)
|
38,734
|
38,191
|
(1) Includes costs related to merger and acquisition activities, restructuring, 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 the periods ended August 31, 2021 and 2020.
|
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
GAAP TO NON-GAAP RECONCILIATION (Continued)
|
(in thousands, except per share data)
|
Reconciliation of Net Loss to Adjusted EBITDA:
|
|||||||
Three Months Ended
|
|||||||
Aug 31, 2021
|
Aug 31, 2020
|
||||||
(unaudited)
|
|||||||
Net loss
|
$
|
(6,972)
|
$
|
(4,268)
|
|||
Income tax benefit
|
(1,636)
|
(545)
|
|||||
Interest expense, net
|
156
|
215
|
|||||
Depreciation and amortization
|
6,958
|
6,538
|
|||||
Change in fair value of contingent consideration
|
195
|
(657)
|
|||||
Stock based compensation
|
2,429
|
1,864
|
|||||
Acquisition, restructuring and other items, net (1)
|
2,440
|
1,319
|
|||||
Adjusted EBITDA
|
$
|
3,570
|
$
|
4,466
|
|||
Per diluted share:
|
|||||||
Adjusted EBITDA
|
$
|
0.09
|
$
|
0.12
|
(1) Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset
impairments and write-offs, certain litigation, and other items.
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ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
|
(in thousands)
|
Three Months Ended
|
|||||||||||||
Aug 31, 2021
|
Aug 31, 2020
|
% Growth
|
Currency Impact
|
Constant Currency Growth
|
|||||||||
(unaudited)
|
|||||||||||||
Net Sales
|
|||||||||||||
Med Tech
|
$
|
17,619
|
$
|
10,486
|
68.0%
|
||||||||
Med Device
|
59,352
|
59,730
|
(0.6)%
|
||||||||||
$
|
76,971
|
$
|
70,216
|
9.6%
|
(0.2)%
|
9.4%
|
|||||||
Net Sales by Product Category
|
|||||||||||||
Endovascular Therapies
|
$
|
38,058
|
$
|
29,857
|
27.5%
|
||||||||
Vascular Access
|
24,957
|
28,105
|
(11.2)%
|
||||||||||
Oncology
|
13,956
|
12,254
|
13.9%
|
||||||||||
$
|
76,971
|
$
|
70,216
|
9.6%
|
(0.2)%
|
9.4%
|
|||||||
—
|
—
|
||||||||||||
Net Sales by Geography
|
|||||||||||||
United States
|
$
|
64,464
|
$
|
54,108
|
19.1%
|
||||||||
International
|
12,507
|
16,108
|
(22.4)%
|
(0.7)%
|
(23.1)%
|
||||||||
$
|
76,971
|
$
|
70,216
|
9.6%
|
(0.2)%
|
9.4%
|
|||||||
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
Aug 31, 2021
|
May 31, 2021
|
||||||
(unaudited)
|
(audited)
|
||||||
Assets
|
|||||||
Current assets:
|
|||||||
Cash and cash equivalents
|
$
|
35,472
|
$
|
48,161
|
|||
Accounts receivable, net
|
35,416
|
35,405
|
|||||
Inventories
|
49,305
|
48,614
|
|||||
Prepaid expenses and other
|
11,128
|
8,699
|
|||||
Total current assets
|
131,321
|
140,879
|
|||||
Property, plant and equipment, net
|
41,133
|
37,073
|
|||||
Other assets
|
12,925
|
13,193
|
|||||
Intangible assets, net
|
168,893
|
168,977
|
|||||
Goodwill
|
201,491
|
201,316
|
|||||
Total assets
|
$
|
555,763
|
$
|
561,438
|
|||
Liabilities and stockholders' equity
|
|||||||
Current liabilities:
|
|||||||
Accounts payable
|
$
|
22,687
|
$
|
19,630
|
|||
Accrued liabilities
|
26,892
|
35,459
|
|||||
Other current liabilities
|
2,518
|
2,495
|
|||||
Total current liabilities
|
52,097
|
57,584
|
|||||
Long-term debt, net of current portion
|
25,000
|
20,000
|
|||||
Deferred income taxes
|
18,397
|
19,955
|
|||||
Contingent consideration, net of current portion
|
15,936
|
15,741
|
|||||
Other long-term liabilities
|
8,383
|
8,701
|
|||||
Total liabilities
|
119,813
|
121,981
|
|||||
Stockholders' equity
|
435,950
|
439,457
|
|||||
Total Liabilities and Stockholders' Equity
|
$
|
555,763
|
$
|
561,438
|
|||
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
Three Months Ended
|
|||||||
Aug 31, 2021
|
Aug 31, 2020
|
||||||
(unaudited)
|
|||||||
Cash flows from operating activities:
|
|||||||
Net loss
|
$
|
(6,972)
|
$
|
(4,268)
|
|||
Adjustments to reconcile net loss to net cash used in operating activities:
|
|||||||
Depreciation and amortization
|
6,997
|
6,577
|
|||||
Non-cash lease expense
|
602
|
666
|
|||||
Stock based compensation
|
2,429
|
1,864
|
|||||
Change in fair value of contingent consideration
|
195
|
(657)
|
|||||
Deferred income taxes
|
(1,690)
|
(620)
|
|||||
Change in accounts receivable allowances
|
(44)
|
460
|
|||||
Fixed and intangible asset impairments and disposals
|
30
|
90
|
|||||
Other
|
(46)
|
(432)
|
|||||
Changes in operating assets and liabilities, net of acquisitions:
|
|||||||
Accounts receivable
|
(36)
|
(2,706)
|
|||||
Inventories
|
(670)
|
7,247
|
|||||
Prepaid expenses and other
|
(3,354)
|
(3,559)
|
|||||
Accounts payable, accrued and other liabilities
|
(6,345)
|
(10,087)
|
|||||
Net cash used in operating activities
|
(8,904)
|
(5,425)
|
|||||
Cash flows from investing activities:
|
|||||||
Additions to property, plant and equipment
|
(1,021)
|
(1,824)
|
|||||
Additions to placement and evaluation units
|
(4,471)
|
—
|
|||||
Cash paid in acquisition
|
(3,600)
|
—
|
|||||
Net cash used in investing activities
|
(9,092)
|
(1,824)
|
|||||
Cash flows from financing activities:
|
|||||||
Proceeds from borrowings on long-term debt
|
5,000
|
—
|
|||||
Proceeds from exercise of stock options and employee stock purchase plan
|
446
|
491
|
|||||
Net cash provided by financing activities
|
5,446
|
491
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(139)
|
252
|
|||||
Decrease in cash and cash equivalents
|
(12,689)
|
(6,506)
|
|||||
Cash and cash equivalents at beginning of period
|
48,161
|
54,435
|
|||||
Cash and cash equivalents at end of period
|
$
|
35,472
|
$
|
47,929
|