Fiscal Year 2023 Second Quarter Highlights
- Net sales of $85.4 million increased 9.1% compared to the
prior-year quarter
- Med Tech net sales of $24.5 million increased 29.7%
- Med Device net sales of $60.9 million increased
2.6%
- Gross margin of 52.8% increased 100 basis points year over
year
- GAAP loss per share of $0.21 and adjusted earnings per share
of $0.01
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 2023, which
ended November 30, 2022.
“We drove strong performance during the second quarter, and we
believe our results through the first half of the year position us
well to achieve our full-year targets,” commented Jim Clemmer,
President and Chief Executive Officer of AngioDynamics, Inc. “I am
pleased with the way the team has managed through the current macro
environment as we continue to execute on our strategy of pursuing
attractive markets where our med tech platforms possess a
differentiated technology advantage. In addition, I am thrilled
that we have surpassed the mid-point of our enrollment target on
our Preserve study during the quarter, as we continue to progress
toward our goal of offering treatment options aimed at improving
quality of life for prostate cancer patients.”
Second Quarter 2023 Financial Results
Net sales for the second quarter of fiscal 2023 were $85.4
million, an increase of 9.1% 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 $24.5 million, a 29.7% increase from the
prior-year period. Med Tech includes the Auryon peripheral
atherectomy platform, the thrombus management platform and the
NanoKnife irreversible electroporation platform. Growth was driven
by Auryon sales during the quarter of $10.1 million, which
increased 60.6%, and NanoKnife sales of $5.5 million, which
increased 49.5% compared to the second quarter of fiscal 2022.
NanoKnife disposable sales were $4.2 million, which increased 45.4%
compared to the second quarter of fiscal 2022.
Med Device net sales were $60.9 million, an increase of 2.6%
compared to the prior-year period.
U.S. net sales in the second quarter of fiscal 2023 were $71.6
million, an increase of 9.6% from $65.4 million a year ago.
International net sales were $13.8 million, an increase of 6.7%
compared to a year ago.
Gross margin for the second quarter of fiscal 2023 was 52.8%, an
increase of 100 basis points compared to the second quarter of
fiscal 2022. Gross margin for the Med Tech business was 63.7%, a
decline of 290 basis points from the second quarter of fiscal 2022.
Gross margin for the Med Device business was 48.4%, an increase of
130 basis points compared to the second quarter of fiscal 2022.
Gross margin was negatively impacted by macro forces including
labor shortages and increased costs for labor, raw materials and
freight.
The Company recorded a net loss of $8.5 million, or a loss per
share of $0.21, in the second quarter of fiscal 2023. This compares
to a net loss of $8.4 million, or a loss per share of $0.21, a year
ago.
Excluding the items shown in the non-GAAP reconciliation table
below, adjusted net income for the second quarter of fiscal 2023
was $0.4 million, and adjusted earnings per share was $0.01,
compared to adjusted net loss of $0.9 million and adjusted loss per
share of $0.02 in the prior-year period.
Adjusted EBITDA in the second quarter of fiscal 2023, excluding
the items shown in the reconciliation table below, was $7.5
million, compared to adjusted EBITDA of $4.4 million in the second
quarter of fiscal 2022.
In the second quarter of fiscal 2023, the Company generated $7.5
million in operating cash, had capital expenditures of $1.3 million
and had additions to Auryon placement and evaluation units of $1.2
million.
On November 30, 2022, the Company had $29.9 million in cash and
cash equivalents, compared to $28.8 million in cash and cash
equivalents on May 31, 2022. The Company had $25.0 million
outstanding on the delayed-draw term loan and $25.0 million
outstanding under its revolving credit facility at November 30,
2022.
Six Months Financial Results
For the six months ended November 30, 2022:
Net sales were $167.0 million, an increase of 7.5%, compared to
$155.3 million for the same period a year ago.
Med Tech net sales were $47.3 million, a 29.7% increase from the
prior year period. Med Device net sales were $119.6 million, an
increase of 0.7% from the prior year period.
Gross margin increased 30 basis points to 52.3% from 52.0% a
year ago.
The Company’s net loss was $21.5 million, or a loss of $0.55 per
share, compared to a net loss of $15.3 million, or a loss of $0.39
per share, a year ago.
Excluding the items shown in the non-GAAP reconciliation table,
below, adjusted net loss was $2.1 million, with adjusted loss per
share of $0.05, compared to adjusted net loss and adjusted loss per
share of $1.7 million, and $0.04, respectively, a year ago.
Adjusted EBITDA, excluding the items shown in the reconciliation
table below, was $10.4 million, compared to $8.0 million for the
same period a year ago.
Fiscal Year 2023 Financial Guidance
Management is reaffirming its previously issued fiscal year 2023
guidance. Management expects net sales to be in the range of $342
to $348 million, gross margin to be approximately 52.5% to 54.5%
and adjusted earnings per share in the range of $0.01 to $0.06 as
it continues to invest in new product launches to drive future
growth.
Conference Call
The Company's management will host a conference call today at
8:00 a.m. ET to discuss its second quarter results.
To participate in the conference call, dial 1-877-407-0784
(domestic) or +1-201-689-8560 (international) and refer to the
passcode 13734978.
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 Thursday, January 5, 2023, until 11:59 p.m. ET on Thursday,
January 12, 2023. To listen to this recording, dial 1-844-512-2921
(domestic) or +1-412-317-6671 (international) and enter the
passcode 13734978.
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 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, 2022. 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
Six Months Ended
Nov 30, 2022
Nov 30, 2021
Nov 30, 2022
Nov 30, 2021
(unaudited)
(unaudited)
Net sales
$
85,429
$
78,280
$
166,966
$
155,251
Cost of sales (exclusive of intangible
amortization)
40,351
37,725
79,583
74,557
Gross profit
45,078
40,555
87,383
80,694
% of net sales
52.8
%
51.8
%
52.3
%
52.0
%
Operating expenses
Research and development
6,838
8,199
15,171
15,593
Sales and marketing
26,007
23,606
52,550
48,052
General and administrative
10,835
9,678
20,936
18,621
Amortization of intangibles
4,808
4,889
9,645
9,710
Change in fair value of contingent
consideration
1,646
609
1,857
804
Acquisition, restructuring and other
items, net
3,059
2,253
8,640
4,693
Total operating expenses
53,193
49,234
108,799
97,473
Operating loss
(8,115
)
(8,679
)
(21,416
)
(16,779
)
Interest expense, net
(684
)
(174
)
(1,065
)
(330
)
Other expense, net
(252
)
(10
)
(427
)
(362
)
Total other expense, net
(936
)
(184
)
(1,492
)
(692
)
Loss before income tax benefit
(9,051
)
(8,863
)
(22,908
)
(17,471
)
Income tax benefit
(565
)
(512
)
(1,418
)
(2,148
)
Net loss
$
(8,486
)
$
(8,351
)
$
(21,490
)
$
(15,323
)
Loss per share
Basic
$
(0.21
)
$
(0.21
)
$
(0.55
)
$
(0.39
)
Diluted
$
(0.21
)
$
(0.21
)
$
(0.55
)
$
(0.39
)
Weighted average shares outstanding
Basic
39,490
39,053
39,394
38,893
Diluted
39,490
39,053
39,394
38,893
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
Six Months Ended
Nov 30, 2022
Nov 30, 2021
Nov 30, 2022
Nov 30, 2021
(unaudited)
(unaudited)
Net loss
$
(8,486
)
$
(8,351
)
$
(21,490
)
$
(15,323
)
Amortization of intangibles
4,808
4,889
9,645
9,710
Change in fair value of contingent
consideration
1,646
609
1,857
804
Acquisition, restructuring and other
items, net (1)
3,059
2,253
8,640
4,693
Tax effect of non-GAAP items (2)
(671
)
(256
)
(782
)
(1,627
)
Adjusted net income (loss)
$
356
$
(856
)
$
(2,130
)
$
(1,743
)
Reconciliation of Diluted Loss Per
Share to non-GAAP Adjusted Diluted Earnings (Loss) Per
Share:
Three Months Ended
Six Months Ended
Nov 30, 2022
Nov 30, 2021
Nov 30, 2022
Nov 30, 2021
(unaudited)
(unaudited)
Diluted loss per share
$
(0.21
)
$
(0.21
)
$
(0.55
)
$
(0.39
)
Amortization of intangibles
0.12
0.13
0.24
0.25
Change in fair value of contingent
consideration
0.04
0.02
0.05
0.02
Acquisition, restructuring and other
items, net (1)
0.08
0.05
0.23
0.12
Tax effect of non-GAAP items (2)
(0.02
)
(0.01
)
(0.02
)
(0.04
)
Adjusted diluted earnings (loss) per
share
$
0.01
$
(0.02
)
$
(0.05
)
$
(0.04
)
Adjusted diluted sharecount (3)
40,059
39,053
39,394
38,893
(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,
2022 and 2021.
(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
Six Months Ended
Nov 30, 2022
Nov 30, 2021
Nov 30, 2022
Nov 30, 2021
(unaudited)
(unaudited)
Net loss
$
(8,486
)
$
(8,351
)
$
(21,490
)
$
(15,323
)
Income tax benefit
(565
)
(512
)
(1,418
)
(2,148
)
Interest expense, net
684
174
1,065
330
Depreciation and amortization
7,767
7,240
15,388
14,199
Change in fair value of contingent
consideration
1,646
609
1,857
804
Stock based compensation
3,350
3,008
6,374
5,437
Acquisition, restructuring and other
items, net (1)
3,059
2,253
8,640
4,693
Adjusted EBITDA
$
7,455
$
4,421
$
10,416
$
7,992
Per diluted share:
Adjusted EBITDA
$
0.19
$
0.11
$
0.26
$
0.21
(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
Six Months Ended
Nov 30, 2022
Nov 30, 2021
% Growth
Currency Impact
Constant Currency Growth
Nov 30, 2022
Nov 30, 2021
% Growth
Currency Impact
Constant Currency Growth
(unaudited)
(unaudited)
Net Sales
Med Tech
$
24,502
$
18,886
29.7
%
$
47,318
$
36,493
29.7
%
Med Device
60,927
59,394
2.6
%
119,648
118,758
0.7
%
$
85,429
$
78,280
9.1
%
0.6
%
9.7
%
$
166,966
$
155,251
7.5
%
0.6
%
8.1
%
Net Sales by Geography
United States
$
71,631
$
65,350
9.6
%
$
140,655
$
129,814
8.4
%
International
13,798
12,930
6.7
%
3.5
%
10.2
%
26,311
25,437
3.4
%
3.6
%
7.0
%
$
85,429
$
78,280
9.1
%
0.6
%
9.7
%
$
166,966
$
155,251
7.5
%
0.6
%
8.1
%
GROSS PROFIT BY PRODUCT
CATEGORY
(in thousands)
Three Months Ended
Six Months Ended
Nov 30, 2022
Nov 30, 2021
% Change
Nov 30, 2022
Nov 30, 2021
% Change
(unaudited)
(unaudited)
Med Tech
$
15,614
$
12,578
24.1
%
$
30,043
$
24,095
24.7
%
Gross profit % of sales
63.7
%
66.6
%
63.5
%
66.0
%
Med Device
$
29,464
$
27,977
5.3
%
$
57,340
$
56,599
1.3
%
Gross profit % of sales
48.4
%
47.1
%
47.9
%
47.7
%
Total
$
45,078
$
40,555
11.2
%
$
87,383
$
80,694
8.3
%
Gross profit % of sales
52.8
%
51.8
%
52.3
%
52.0
%
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(in thousands)
Nov 30, 2022
May 31, 2022
(unaudited)
(audited)
Assets
Current assets:
Cash and cash equivalents
$
29,857
$
28,825
Accounts receivable, net
52,852
52,304
Inventories
63,177
51,392
Prepaid expenses and other
12,944
10,824
Total current assets
158,830
143,345
Property, plant and equipment, net
45,957
45,005
Other assets
10,722
10,963
Intangible assets, net
141,943
152,380
Goodwill
200,755
201,058
Total assets
$
558,207
$
552,751
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
34,688
$
28,047
Accrued liabilities
26,533
34,842
Current portion of contingent
consideration
9,760
8,783
Other current liabilities
2,586
2,652
Total current liabilities
73,567
74,324
Long-term debt
49,796
25,000
Deferred income taxes
14,290
16,037
Contingent consideration
9,072
8,165
Other long-term liabilities
3,524
4,736
Total liabilities
150,249
128,262
Stockholders' equity
407,958
424,489
Total Liabilities and Stockholders'
Equity
$
558,207
$
552,751
ANGIODYNAMICS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
Three Months Ended
Six Months Ended
Nov 30, 2022
Nov 30, 2021
Nov 30, 2022
Nov 30, 2021
(unaudited)
(unaudited)
Cash flows from operating
activities:
Net loss
$
(8,486
)
$
(8,351
)
$
(21,490
)
$
(15,323
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
7,818
7,279
15,478
14,276
Non-cash lease expense
627
607
1,248
1,209
Stock based compensation
3,350
3,008
6,374
5,437
Change in fair value of contingent
consideration
1,646
609
1,857
804
Deferred income taxes
(618
)
(569
)
(1,525
)
(2,259
)
Change in accounts receivable
allowances
347
60
392
16
Fixed and intangible asset impairments and
disposals
—
67
87
97
Other
53
(32
)
(43
)
(78
)
Changes in operating assets and
liabilities:
Accounts receivable
406
(2,886
)
(1,019
)
(2,922
)
Inventories
(5,593
)
1,148
(11,831
)
478
Prepaid expenses and other
1,802
(830
)
(3,931
)
(4,184
)
Accounts payable, accrued and other
liabilities
6,147
1,831
(2,843
)
(4,514
)
Net cash provided by (used in)
operating activities
7,499
1,941
(17,246
)
(6,963
)
Cash flows from investing
activities:
Additions to property, plant and
equipment
(1,281
)
(1,131
)
(2,090
)
(2,152
)
Additions to placement and evaluation
units
(1,215
)
(2,718
)
(3,442
)
(7,189
)
Cash paid in acquisition
—
—
(540
)
(3,600
)
Net cash used in investing
activities
(2,496
)
(3,849
)
(6,072
)
(12,941
)
Cash flows from financing
activities:
Proceeds from borrowings on long-term
debt
—
—
70,000
5,000
Repayment of long-term debt
—
—
(45,000
)
—
Deferred financing costs on long-term
debt
(45
)
—
(751
)
—
Proceeds from exercise of stock options
and employee stock purchase plan
148
942
230
1,388
Net cash provided by financing
activities
103
942
24,479
6,388
Effect of exchange rate changes on cash
and cash equivalents
187
(215
)
(129
)
(354
)
Increase (decrease) in cash and cash
equivalents
5,293
(1,181
)
1,032
(13,870
)
Cash and cash equivalents at beginning of
period
24,564
35,472
28,825
48,161
Cash and cash equivalents at end of
period
$
29,857
$
34,291
$
29,857
$
34,291
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230105005348/en/
Investors:
AngioDynamics, Inc. Stephen Trowbridge, Executive Vice President
& CFO (518) 795-1408
AngioDynamics (NASDAQ:ANGO)
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