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):  December 29, 2023

AngioDynamics, Inc.
(Exact Name of Registrant as Specified in Charter)

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)
 
 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))

Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
ANGO
NASDAQ Global Select Market
 
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 January 5, 2024, AngioDynamics, Inc. ("AngioDynamics" or the "Company") issued a press release announcing financial results for the fiscal second quarter ended November 30, 2023. A copy of the press release is 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 otherwise subject to the liabilities under that Section. Furthermore, such information shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 5.02 – Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
 
On December 29, 2023, David D. Helsel, Senior Vice President of Global Operations and R&D, notified the Company of his intention to leave the Company, effective January 12, 2024, in order to pursue other opportunities. Mr. Helsel’s decision to resign was not the result of any disagreement between Mr. Helsel and the Company on any matter relating to the Company’s operations, policies or practices.

Item 7.01 – Regulation FD Disclosure.

Presentation slides discussing AngioDynamics and its fiscal second quarter ended November 30, 2023 are furnished herewith as Exhibit 99.2.

The presentation slides furnished pursuant to Item 7.01 of this Form 8-K (including Exhibit 99.2) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section. Furthermore, the presentation slides shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.

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,” “projects”, “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 materially from AngioDynamics’ expectations, expressed or implied. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, 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 (including inflation, labor shortages and supply chain challenges including the cost and availability of raw materials), 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 obtain regulatory clearances or approval of its products, or 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, 2023. 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.

Exhibit No.
 
Description
     
 
Press Release, dated January 5, 2024.
     
 
Presentation, dated January 5, 2024.


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.

 
ANGIODYNAMICS, INC.
 
(Registrant)
     
Date:  January 5, 2024
By:
/s/ Stephen A. Trowbridge
   
Name
Stephen A. Trowbridge
   
Title
Executive Vice President and
     
Chief Financial Officer




Exhibit 99.1
 
 
PRESS RELEASE
 
Investor Contact:

AngioDynamics, Inc.
Stephen Trowbridge, Executive Vice President & CFO
(518) 795-1408
 
AngioDynamics Reports Fiscal Year 2024 Second Quarter
Financial Results;
Revises Fiscal Year 2024 Guidance
 
Fiscal Year 2024 Second Quarter Highlights
Net sales of $79.1 million increased 2.7% on a pro-forma basis compared to the prior-year quarter

o
Med Tech net sales of $25.4 million increased 3.5%

o
Med Device net sales of $53.7 million increased 2.3% on a pro-forma basis
Gross margin of 50.9% declined 80 basis points on a pro-forma basis year over year
GAAP loss per share of $0.72 and adjusted loss per share of $0.05
Cash and cash equivalents at November 30, 2023 were $60.9 million
Subsequent to quarter end, completed enrollment in APEX-AV trial for the treatment of acute intermediate-risk pulmonary embolism using AlphaVac F18
Initiated restructuring of manufacturing footprint and transition to outsourced manufacturing and continues portfolio optimization initiatives

o
Expects to achieve full-year adjusted EPS profitability in FY27
 
Latham, New York, January 5, 2024 AngioDynamics, Inc. (NASDAQ: ANGO), a leading and transformative medical technology company focused on restoring healthy blood flow in the body’s vascular system, expanding cancer treatment options and improving quality of life for patients, today announced financial results for the second quarter of fiscal year 2024, which ended November 30, 2023.


“Today, we are announcing meaningful steps in our strategic transformation. We have initiated a restructuring of our manufacturing footprint and are shifting to an outsourced model. Currently, more than 80% of our Med Tech revenue utilizes third-party manufacturing. Fully shifting both Med Device and Med Tech to this model will allow us to more effectively compete in our chosen markets, fundamentally changing our corporate gross margin profile and driving us to profitability in two years,” commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “Additionally, we continue our efforts to further optimize our portfolio following the divestiture of our BioSentry and Dialysis businesses in June, making us a more focused med-tech company. While our second quarter revenue was softer than we would have liked, particularly in our Thrombus business, we were pleased to complete enrollment of our APEX-AV trial and believe our sales training and education efforts along with new product launches and the anticipated PE indication will solidify this business as a growth driver. With all of these initiatives, we believe we are taking the right steps to generate meaningful long-term growth and profitability while improving patient outcomes in the markets we serve.”

Second Quarter 2024 Financial Results

Unless otherwise noted, all financial results below are presented on a pro forma basis when excluding the divested Dialysis and BioSentry businesses.

Net sales for the second quarter of fiscal year 2024 were $79.1 million, an increase of 2.7% compared to the prior-year quarter. Foreign currency translation did not have a significant impact on the Company's net sales in the quarter.

Med Tech net sales were $25.4 million, a 3.5% increase from $24.5 million in the prior- year period. Med Tech includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform. Year-over-year growth was driven by Auryon sales during the quarter of $11.4 million, which increased 12.9%, and AlphaVac sales of $1.9 million, which grew 17.9%. AngioVac sales were $5.4 million in the quarter, a decline of 10.8% from the second quarter of fiscal 2023. The Company completed enrollment of its APEX-AV trial subsequent to quarter end.

Med Device net sales were $53.7 million, a 2.3% increase from sales of $52.5 in the prior-year period.

U.S. net sales in the second quarter of fiscal 2024 were $64.0 million, an increase of 0.6% from sales of $63.6 million a year ago. International net sales were $15.1 million, an increase of 12.6% from sales of $13.4 million in the prior-year period.


Gross margin for the second quarter of fiscal 2024 was 50.9%, a decrease of 80 basis points from gross margin of 51.7% in the second quarter of fiscal 2023. Gross margin for the Med Tech business was 62.4%, a decrease of 130 basis points from the second quarter of fiscal 2023. Gross margin for the Med Device business was 45.5%, a decrease of 60 basis points from gross margin of 46.1% in the prior-year quarter. Gross margin continued to be impacted by inflationary pressures including increased costs for labor and raw materials as well as geographic mix.

The Company recorded a net loss of $29.0 million, or a loss per share of $0.72, in the second quarter of fiscal 2024. Excluding the items shown in the non-GAAP reconciliation table below, adjusted net loss for the second quarter of fiscal 2024 was $2.0 million, and adjusted loss per share was $0.05.

Adjusted EBITDA in the second quarter of fiscal 2024, excluding the items shown in the reconciliation table below, was $1.8 million, compared to adjusted EBITDA of $2.3 million in the second quarter of fiscal 2023.

In the second quarter of fiscal 2024, the Company generated $5.3 million in operating cash, had capital expenditures of $0.6 million and had additions to Auryon placement and evaluation units of $1.2 million.

On November 30, 2023, the Company had $60.9 million in cash and cash equivalents compared to $44.6 million in cash and cash equivalents on May 31, 2023.

Six Months Financial Results

Unless otherwise noted, all financial results below are presented on a pro forma basis when excluding the divested Dialysis and BioSentry businesses.

For the six months ended November 30, 2023:

Net sales were $157.1 million, an increase of 4.2% compared to the same period a year ago.

Med Tech net sales were $51.2 million, an 8.3% increase from the prior year period. Med Device net sales were $105.9 million, an increase of 2.3% from $103.5 million in the first half of fiscal 2023.

Gross margin was 50.8%, a decrease of 60 basis points compared to the first half of fiscal 2023.

The Company’s net income was $16.4 million, or earnings per share of $0.41, compared to a net loss of $30.2 million, or $0.77 per share, a year ago.

Excluding the items shown in the non-GAAP reconciliation table below, adjusted net loss was $7.2 million, with adjusted loss per share of $0.18, compared to adjusted net loss and adjusted loss per share of $9.6 million and $0.24, respectively, a year ago.


Adjusted EBITDA, excluding the items shown in the reconciliation table below, was $2.2 million, compared to adjusted EBITDA of $0.7 million for the same period a year ago.

Manufacturing Restructuring

The Company announced today that it is committed to shifting its manufacturing operations from a company-owned facility in upstate New York to a fully outsourced model over the next two years. This shift is expected to result in an approximate $15 million annualized reduction in expenses by fiscal year 2027. The Company expects to achieve full-year adjusted EPS profitability in FY27.

Fiscal Year 2024 Financial Guidance

The Company now expects its fiscal year 2024 net sales to be in the range of $320 to $325 million, accounting for the softer Thrombectomy sales during the fiscal second quarter, which it now expects will continue throughout the back half of the year, as well as certain SKU rationalization and other impacts associated with the manufacturing restructuring. The Company expects gross margin to be approximately 49% to 51% and adjusted loss per share in the range of $0.35 to $0.42.

Conference Call

The Company's management will host a conference call today at 8:00 a.m. ET to discuss its second quarter 2024 results.

To participate in the conference call, dial 1-877-407-0784 (domestic) or +1- 201-689-8560 (international) and refer to the passcode 13743023.

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 Friday, January 5, 2024, until 11:59 p.m. ET on Friday, January 12, 2024. To hear this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13743023.


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 pro-forma results, adjusted EBITDA, adjusted net income and adjusted earnings per share. 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 is a leading and transformative medical technology company focused on restoring healthy blood flow in the body’s vascular system, expanding cancer treatment options and improving quality of life for patients.

The Company’s innovative technologies and devices are chosen by talented physicians in fast-growing healthcare markets to treat unmet patient needs. 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," "projects, " "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 materially from AngioDynamics' expectations, expressed or implied. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, 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 (including inflation, labor shortages and supply chain challenges including the cost and availability of raw materials), 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 obtain regulatory clearances or approval of its products, or 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, 2023. 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
   
Three Months Ended
 
     
Actual (1)
Nov 30, 2023
     
Pro Forma
Adjustments (2)
Nov 30, 2023
     
Pro Forma
Nov 30, 2023
     
As Reported (1)
Nov 30, 2022
     
Pro Forma
Adjustments (2)
Nov 30, 2022
     
Pro Forma
Nov 30, 2022
  
         
(unaudited)
               
(unaudited)
       
                                     
Net sales
 
$
79,073
     
   
$
79,073
   
$
85,429
     
(8,442
)
 
$
76,987
 
Cost of sales (exclusive of intangible amortization)
   
38,811
     
     
38,811
     
40,351
     
(3,184
)
   
37,167
 
Gross profit
   
40,262
     
     
40,262
     
45,078
     
(5,258
)
   
39,820
 
% of net sales
   
50.9
%
           
50.9
%
   
52.8
%
           
51.7
%
                                                 
Operating expenses
                                               
Research and development
   
8,658
     
     
8,658
     
6,838
     
(66
)
   
6,772
 
Sales and marketing
   
25,464
     
     
25,464
     
26,007
     
(15
)
   
25,992
 
General and administrative
   
9,289
     
     
9,289
     
10,835
     
2
     
10,837
 
Amortization of intangibles
   
3,562
     
     
3,562
     
4,808
     
(483
)
   
4,325
 
Change in fair value of contingent consideration
   
221
     
     
221
     
1,646
     
     
1,646
 
Acquisition, restructuring and other items, net
   
6,188
     
     
6,188
     
3,059
     
     
3,059
 
Total operating expenses
   
53,382
     
     
53,382
     
53,193
     
(562
)
   
52,631
 
Operating loss
   
(13,120
)
   
     
(13,120
)
   
(8,115
)
   
(4,696
)
   
(12,811
)
Interest income (expense), net
   
534
     
     
534
     
(684
)
   
     
(684
)
Other expense, net
   
(32
)
   
     
(32
)
   
(252
)
   
     
(252
)
Total other income (expense), net
   
502
     
     
502
     
(936
)
   
     
(936
)
Loss before income tax expense (benefit)
   
(12,618
)
   
     
(12,618
)
   
(9,051
)
   
(4,696
)
   
(13,747
)
Income tax expense (benefit)
   
16,430
     
     
16,430
     
(565
)
   
     
(565
)
Net loss
 
$
(29,048
)
 
$
   
$
(29,048
)
 
$
(8,486
)
 
$
(4,696
)
 
$
(13,182
)
                                                 
Loss per share
                                               
Basic
 
$
(0.72
)
         
$
(0.72
)
 
$
(0.21
)
         
$
(0.33
)
Diluted
 
$
(0.72
)
         
$
(0.72
)
 
$
(0.21
)
         
$
(0.33
)
                                                 
Weighted average shares outstanding
                                               
Basic
   
40,219
             
40,219
     
39,490
             
39,490
 
Diluted
   
40,219
             
40,219
     
39,490
             
39,490
 

(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses ("the Businesses") for the three months ended November 30, 2023 and 2022.
(2) Reflects the elimination of revenues and expenses representing the operating results from the sale of the Businesses.
 

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
 
   
Six Months Ended
   
Six Months Ended
 
     
Actual (1)
Nov 30, 2023
     
Pro Forma
Adjustments (2)
Nov 30, 2023
     
Pro Forma
Nov 30, 2023
     
As Reported (1)
Nov 30, 2022
     
Pro Forma
Adjustments (2)
Nov 30, 2022
     
Pro Forma
Nov 30, 2022
  
         
(unaudited)
               
(unaudited)
       
                                     
Net sales
 
$
157,752
     
(671
)
 
$
157,081
   
$
166,966
     
(16,188
)
 
$
150,778
 
Cost of sales (exclusive of intangible amortization)
   
77,430
     
(218
)
   
77,212
     
79,583
     
(6,292
)
   
73,291
 
Gross profit
   
80,322
     
(453
)
   
79,869
     
87,383
     
(9,896
)
   
77,487
 
% of net sales
   
50.9
%
           
50.8
%
   
52.3
%
           
51.4
%
                                                 
Operating expenses
                                               
Research and development
   
16,599
     
(29
)
   
16,570
     
15,171
     
(128
)
   
15,043
 
Sales and marketing
   
52,832
     
     
52,832
     
52,550
     
(34
)
   
52,516
 
General and administrative
   
20,145
     
(2
)
   
20,143
     
20,936
     
1
     
20,937
 
Amortization of intangibles
   
7,187
     
     
7,187
     
9,645
     
(966
)
   
8,679
 
Change in fair value of contingent consideration
   
91
     
     
91
     
1,857
     
     
1,857
 
Acquisition, restructuring and other items, net
   
9,400
     
     
9,400
     
8,640
     
(17
)
   
8,623
 
Total operating expenses
   
106,254
     
(31
)
   
106,223
     
108,799
     
(1,144
)
   
107,655
 
Gain on sale of assets
   
47,842
     
     
47,842
     
     
     
 
Operating income (loss)
   
21,910
     
(422
)
   
21,488
     
(21,416
)
   
(8,752
)
   
(30,168
)
Interest income (expense), net
   
653
     
     
653
     
(1,065
)
   
     
(1,065
)
Other expense, net
   
(320
)
   
     
(320
)
   
(427
)
   
     
(427
)
Total other income (expense), net
   
333
     
     
333
     
(1,492
)
   
     
(1,492
)
Income (loss) before income tax benefit
   
22,243
     
(422
)
   
21,821
     
(22,908
)
   
(8,752
)
   
(31,660
)
Income tax expense (benefit)
   
5,407
     
     
5,407
     
(1,418
)
   
     
(1,418
)
Net income (loss)
 
$
16,836
   
$
(422
)
 
$
16,414
   
$
(21,490
)
 
$
(8,752
)
 
$
(30,242
)
                                                 
Earnings (loss) per share
                                               
Basic
 
$
0.42
           
$
0.41
   
$
(0.55
)
         
$
(0.77
)
Diluted
 
$
0.42
           
$
0.41
   
$
(0.55
)
         
$
(0.77
)
                                                 
Weighted average shares outstanding
                                               
Basic
   
40,030
             
40,030
     
39,394
             
39,394
 
Diluted
   
40,103
             
40,103
     
39,394
             
39,394
 

(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses ("the Businesses") for the six months ended November 30, 2023 and 2022.
(2) Reflects the elimination of revenues and expenses representing the operating results from the sale of the Businesses.
 

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)

Reconciliation of Net Income (Loss) to non-GAAP Adjusted Net Income (Loss):

   
Three Months Ended
   
Six Months Ended
 
   
Nov 30, 2023
   
Nov 30, 2022
   
Nov 30, 2023
   
Nov 30, 2022
 
   
(unaudited)
   
(unaudited)
 
                         
Net income (loss)
 
$
(29,048
)
 
$
(8,486
)
 
$
16,836
   
$
(21,490
)
                                 
Amortization of intangibles
   
3,562
     
4,808
     
7,187
     
9,645
 
Change in fair value of contingent consideration
   
221
     
1,646
     
91
     
1,857
 
Acquisition, restructuring and other items, net (1)
   
6,188
     
3,059
     
9,400
     
8,640
 
Gain on sale of assets
   
     
     
(47,842
)
   
 
Tax effect of non-GAAP items (2)
   
17,039
     
(671
)
   
7,459
     
(782
)
Adjusted net income (loss)
 
$
(2,038
)
 
$
356
   
$
(6,869
)
 
$
(2,130
)

Reconciliation of Diluted Earnings (Loss) Per Share to non-GAAP Adjusted Diluted Earnings (Loss) Per Share:

   
Three Months Ended
   
Six Months Ended
 
   
Nov 30, 2023
   
Nov 30, 2022
   
Nov 30, 2023
   
Nov 30, 2022
 
   
(unaudited)
   
(unaudited)
 
                         
Diluted earnings (loss) per share
 
$
(0.72
)
 
$
(0.21
)
 
$
0.42
   
$
(0.55
)
                                 
Amortization of intangibles
   
0.09
     
0.12
     
0.18
     
0.24
 
Change in fair value of contingent consideration
   
0.01
     
0.04
     
     
0.05
 
Acquisition, restructuring and other items, net (1)
   
0.15
     
0.08
     
0.24
     
0.23
 
Gain on sale of assets
   
     
     
(1.20
)
   
 
Tax effect of non-GAAP items (2)
   
0.42
     
(0.02
)
   
0.19
     
(0.02
)
Adjusted diluted earnings (loss) per share
 
$
(0.05
)
 
$
0.01
   
$
(0.17
)
 
$
(0.05
)
                                 
Adjusted diluted sharecount (3)
   
40,219
     
40,059
     
40,030
     
39,394
 

(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 November 30, 2023 and 2022.
(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 Income (Loss) to Adjusted EBITDA:

   
Three Months Ended
   
Six Months Ended
 
   
Nov 30, 2023
   
Nov 30, 2022
   
Nov 30, 2023
   
Nov 30, 2022
 
   
(unaudited)
   
(unaudited)
 
                         
Net income (loss)
 
$
(29,048
)
 
$
(8,486
)
 
$
16,836
   
$
(21,490
)
                                 
Income tax expense (benefit)
   
16,430
     
(565
)
   
5,407
     
(1,418
)
Interest income (expense), net
   
(534
)
   
684
     
(653
)
   
1,065
 
Depreciation and amortization
   
6,685
     
7,767
     
13,373
     
15,388
 
Change in fair value of contingent consideration
   
221
     
1,646
     
91
     
1,857
 
Stock based compensation
   
1,877
     
3,350
     
6,021
     
6,374
 
Acquisition, restructuring and other items, net (1)
   
6,188
     
3,059
     
9,400
     
8,640
 
Gain on sale of assets
   
     
     
(47,842
)
   
 
Adjusted EBITDA
 
$
1,819
   
$
7,455
   
$
2,633
   
$
10,416
 
                                 
Per diluted share:
                               
Adjusted EBITDA
 
$
0.05
   
$
0.19
   
$
0.07
   
$
0.26
 
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)

Reconciliation of Pro Forma Net Income (Loss) to Pro Forma Adjusted Net Loss:

     
Pro Forma
Three Months Ended
     
Pro Forma
Six Months Ended
  
   
Nov 30, 2023
   
Nov 30, 2022
   
Nov 30, 2023
   
Nov 30, 2022
 
   
(unaudited)
   
(unaudited)
 
                         
Pro forma net income (loss)
 
$
(29,048
)
 
$
(13,182
)
 
$
16,414
   
$
(30,242
)
                                 
Amortization of intangibles
   
3,562
     
4,325
     
7,187
     
8,679
 
Change in fair value of contingent consideration
   
221
     
1,646
     
91
     
1,857
 
Acquisition, restructuring and other items, net (1)
   
6,188
     
3,059
     
9,400
     
8,623
 
Gain on sale of assets
   
     
     
(47,842
)
   
 
Tax effect of non-GAAP items (2)
   
17,039
     
520
     
7,556
     
1,457
 
Adjusted pro forma net loss
 
$
(2,038
)
 
$
(3,632
)
 
$
(7,194
)
 
$
(9,626
)

Reconciliation of Pro Forma Diluted Earnings (Loss) Per Share to Pro Forma Adjusted Diluted Loss Per Share:

     
Pro Forma
Three Months Ended
     
Pro Forma
Six Months Ended
  
   
Nov 30, 2023
   
Nov 30, 2022
   
Nov 30, 2023
   
Nov 30, 2022
 
   
(unaudited)
   
(unaudited)
 
                         
Pro forma diluted earnings (loss) per share
 
$
(0.72
)
 
$
(0.33
)
 
$
0.41
   
$
(0.77
)
                                 
Amortization of intangibles
   
0.09
     
0.11
     
0.18
     
0.22
 
Change in fair value of contingent consideration
   
0.01
     
0.04
     
     
0.05
 
Acquisition, restructuring and other items, net (1)
   
0.15
     
0.08
     
0.24
     
0.22
 
Gain on sale of assets
   
     
     
(1.20
)
   
 
Tax effect of non-GAAP items (2)
   
0.42
     
0.01
     
0.19
     
0.04
 
Adjusted pro forma diluted loss per share
 
$
(0.05
)
 
$
(0.09
)
 
$
(0.18
)
 
$
(0.24
)
                                 
Adjusted diluted sharecount (3)
   
40,219
     
39,490
     
40,030
     
39,394
 

(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 November 30, 2023 and 2022.
(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 Pro Forma Net Income (Loss) to Pro Forma Adjusted EBITDA:

     
Pro Forma
Three Months Ended
     
Pro Forma
Six Months Ended
  
   
Nov 30, 2023
   
Nov 30, 2022
   
Nov 30, 2023
   
Nov 30, 2022
 
   
(unaudited)
   
(unaudited)
 
                         
Pro forma net income (loss)
 
$
(29,048
)
 
$
(13,182
)
 
$
16,414
   
$
(30,242
)
                                 
Income tax benefit
   
16,430
     
(565
)
   
5,407
     
(1,418
)
Interest income (expense), net
   
(534
)
   
684
     
(653
)
   
1,065
 
Depreciation and amortization
   
6,685
     
7,276
     
13,373
     
14,407
 
Change in fair value of contingent consideration
   
221
     
1,646
     
91
     
1,857
 
Stock based compensation
   
1,877
     
3,350
     
6,021
     
6,374
 
Acquisition, restructuring and other items, net (1)
   
6,188
     
3,059
     
9,400
     
8,623
 
Gain on sale of assets
   
     
     
(47,842
)
   
 
Pro forma adjusted EBITDA
 
$
1,819
   
$
2,268
   
$
2,211
   
$
666
 
                                 
Per diluted share:
                               
Adjusted EBITDA
 
$
0.05
   
$
0.06
   
$
0.06
   
$
0.02
 

(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 

ANGIODYNAMICS, INC. AND SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(in thousands)
 
   
Three Months Ended
   
Three Months Ended
                                     
   
Actual(1)
   
Pro Forma
Adj. (2)
   
Pro Forma
   
As
Reported (1)
   
Pro Forma
Adj. (2)
   
Pro Forma
   
Actual
   
Pro Forma
 
   
Nov 30,
2023
   
Nov 30,
2023
   
Nov 30,
2023
   
Nov 30,
2022
   
Nov 30,
2022
   
Nov 30,
2022
   
%
Growth
   
Currency
Impact
   
Constant
Currency
Growth
   
%
Growth
   
Currency
Impact
   
Constant
Currency
Growth
 
         
(unaudited)
               
(unaudited)
                                           
Net Sales
                                                                       
Med Tech
 
$
25,363
   
$
   
$
25,363
   
$
24,502
   
$
   
$
24,502
     
3.5
%
               
3.5
%
           
Med Device
   
53,710
     
     
53,710
     
60,927
     
(8,442
)
   
52,485
     
(11.8
)%
               
2.3
%
           
   
$
79,073
   
$
   
$
79,073
   
$
85,429
   
$
(8,442
)
 
$
76,987
     
(7.4
)%
   
0.0
%
   
(7.4
)%
   
2.7
%
   
0.0
%
   
2.7
%
                                                                                                 
Net Sales
                                                                                               
United States
 
$
64,002
   
$
   
$
64,002
   
$
71,631
   
$
(8,028
)
 
$
63,603
     
(10.7
)%
                   
0.6
%
               
International
   
15,071
     
     
15,071
     
13,798
     
(414
)
   
13,384
     
9.2
%
   
0.0
%
   
9.2
%
   
12.6
%
               
   
$
79,073
   
$
   
$
79,073
   
$
85,429
   
$
(8,442
)
 
$
76,987
     
(7.4
)%
   
0.0
%
   
(7.4
)%
   
2.7
%
   
0.0
%
   
2.7
%

(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses ("the Businesses") for the three months ended November 30, 2023 and 2022.
(2) Reflects the elimination of revenues and expenses representing the operating results from the sale of the Businesses.
 
GROSS PROFIT BY PRODUCT CATEGORY
(in thousands)
   
Three Months Ended
   
Three Months Ended
     
     
   
Actual (1)
   
Pro Forma
Adj. (2)
   
Pro Forma
   
As Reported (1)
   
Pro Forma
Adj. (2)
   
Pro Forma
   
Actual

 
Pro Forma
 
   
Nov 30,
2023
   
Nov 30,
2023
   
Nov 30,
2023
   
Nov 30,
2022
   
Nov 30,
2022
   
Nov 30,
2022
   
% Change

 
% Change
 
   
(unaudited)
   
(unaudited)
             
Med Tech
 
$
15,816
   
$
   
$
15,816
   
$
15,614
   
$
   
$
15,614
     
1.3
%
   
1.3
%
Gross profit % of sales
   
62.4
%
           
62.4
%
   
63.7
%
           
63.7
%
     
       
                                                       
       
Med Device
 
$
24,446
   
$
   
$
24,446
   
$
29,464
   
$
(5,258
)
 
$
24,206
     
(17.0
)%
   
1.0
%
Gross profit % of sales
   
45.5
%
           
45.5
%
   
48.4
%
           
46.1
%
     
       
                                                       
       
Total
 
$
40,262
   
$
   
$
40,262
   
$
45,078
   
$
(5,258
)
 
$
39,820
     
(10.7
)%
   
1.1
%
Gross profit % of sales
   
50.9
%
           
50.9
%
   
52.8
%
           
51.7
%
     
       

(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses ("the Businesses") for the three months ended November 30, 2023 and 2022.
(2) Reflects the elimination of revenues and expenses representing the operating results from the sale of the Businesses.
 

ANGIODYNAMICS, INC. AND SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(in thousands)
 
   
Six Months Ended
   
Six Months Ended
                                     
   
Actual (1)
   
Pro Forma
Adj. (2)
   
Pro Forma
   
As
Reported (1)
   
Pro Forma
Adj. (2)
   
Pro Forma
   
Actual
   
Pro Forma
 
   
Nov 30,
2023
   
Nov 30,
2023
   
Nov 30,
2023
   
Nov 30,
2022
   
Nov 30,
2022
   
Nov 30,
2022
   
% Growth
   
Currency
Impact
   
Constant
Currency
Growth
   
%
Growth
   
Currency
Impact
   
Constant
Currency Growth
 
         
(unaudited)
               
(unaudited)
                                           
Net Sales
                                                                       
Med Tech
 
$
51,224
   
$
   
$
51,224
   
$
47,318
   
$
   
$
47,318
     
8.3
%
               
8.3
%
           
Med Device
   
106,528
     
(671
)
   
105,857
     
119,648
     
(16,188
)
   
103,460
     
(11.0
)%
               
2.3
%
           
   
$
157,752
   
$
(671
)
 
$
157,081
   
$
166,966
   
$
(16,188
)
 
$
150,778
     
(5.5
)%
   
0.0
%
   
(5.5
)%
   
4.2
%
   
0.0
%
   
4.2
%
                                                                                                 
Net Sales
                                                                                               
United States
 
$
128,401
   
$
(650
)
 
$
127,751
   
$
140,655
   
$
(14,603
)
 
$
126,052
     
(8.7
)%
                   
1.3
%
               
International
   
29,351
     
(21
)
   
29,330
     
26,311
     
(1,585
)
   
24,726
     
11.6
%
   
(0.1
)%
   
11.5
%
   
18.6
%
               
   
$
157,752
   
$
(671
)
 
$
157,081
   
$
166,966
   
$
(16,188
)
 
$
150,778
     
(5.5
)%
   
0.0
%
   
(5.5
)%
   
4.2
%
   
0.0
%
   
4.2
%
                                                                                                 

(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses ("the Businesses") for the six months ended November 30, 2023 and 2022.
(2) Reflects the elimination of revenues and expenses representing the operating results from the sale of the Businesses.
 
GROSS PROFIT BY PRODUCT CATEGORY
(in thousands)
</
   
Six Months Ended
   
Six Months Ended
             
   
Actual (1)
   
Pro Forma
Adj. (2)
   
Pro Forma
   
As Reported (1)
   
Pro Forma
Adj. (2)
   
Pro Forma
   
Actual
   
Pro Forma
 
   
Nov 30,
2023
   
Nov 30,
2023
   
Nov 30,
2023
   
Nov 30,
2022
   
Nov 30,
2022
   
Nov 30,
2022
   
% Change
   
% Change
 
   
(unaudited)
   
(unaudited)
             
Med Tech
 
$
32,543
   
$
   
$
32,543
   
$
30,043
   
$
   
$
30,043
     
8.3
%
   
8.3
%
Gross profit % of sales
   
63.5
%
           
63.5
%
   
63.5
%
           
63.5
%
               
                                                                 
Med Device
 
$
47,779
   
$
(453
)
 
$
47,326
   
$
57,340
   
$
(9,896
)
 
$
47,444
     
(16.7
)%
   
(0.2
)%