ANGO 8-K
Angiodynamics Inc (ANGO)
8-K
2020-09-29
For: 2020-09-29
View Original
Added on
April 10, 2026
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): September 29, 2020
(Exact Name of Registrant as Specified in Charter)
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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) (Zip Code)
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(
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(Registrant’s telephone number, including area code)
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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:
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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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Securities registered pursuant to Section 12(b) of the Act:
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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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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 September 29, 2020, AngioDynamics, Inc. (“AngioDynamics”) issued a press release announcing financial results for the fiscal first
quarter ended August 31, 2020. 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 7.01 – Regulation FD Disclosure.
Presentation slides discussing AngioDynamics and its fiscal first quarter ended August 31, 2020 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,” “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 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, 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, 2020. 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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Date: September 29, 2020
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By:
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/s/ Stephen A. Trowbridge | ||
| Name: | Stephen A. Trowbridge | |||
| Title: |
Executive Vice President, General Counsel
and Chief Financial Officer
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Exhibit 99.1
PRESS RELEASE
Investor Contact:
AngioDynamics, Inc.
Stephen Trowbridge, Executive Vice President & CFO
(518) 795-1408
AngioDynamics Reports Fiscal 2021 First Quarter
Financial Results
Fiscal 2021 First Quarter Highlights
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•
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Net sales of $70.2 million increased 6.3% compared to the prior-year quarter, inclusive of the previously
disclosed $5.2 million order from the National Health Service (NHS) in the UK
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•
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Gross margin declined 700 basis points year over year to 50.9%
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•
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GAAP loss per share of $0.11 and adjusted earnings per share of $0.02
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Cash and cash equivalents on August 31, 2020 were $47.9 million, compared to $54.4 million on May 31, 2020
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| • |
The Company expects fiscal year 2021 net sales between $278 and $284 million and fiscal year 2021 adjusted
earnings per share between $0.00 and $0.05
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•
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Subsequent to quarter end, the Company announced the full commercial launch of its Auryon Atherectomy System
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Latham, New York, September 29,
2020 – 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 first quarter of fiscal year 2021, which ended
August 31, 2020.
“We had a strong first quarter, as our customers continued to show signs of recovery from the disruption of COVID-19,”
commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “While customer demand has not yet returned to pre-COVID levels, the team is clearly executing in this challenging environment. Our key technology platforms
performed well during the quarter, including strong sales
growth of our AngioVac platform and more than $1 million in sales of our Auryon platform. We’re still seeing the impact of
COVID, particularly in our Oncology business, but, despite the unique challenges presented by this environment, we remain confident in our ability to efficiently manage the business while growing our key technology platforms.”
First Quarter 2021 Financial Results
Net sales for the first quarter of fiscal 2021 were $70.2 million, an increase of 6.3% compared to the prior-year quarter.
Net sales in the first quarter continued to be impacted by the disruption to procedure volumes resulting from the COVID-19 global pandemic. Foreign currency translation did not have a significant impact on the Company’s sales in the quarter.
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Oncology net sales were $12.3 million, a decrease of 12.3% from $14.0 million a year ago, with growth in microwave ablation and U.S. NanoKnife probe
sales more than offset by lower sales in international markets.
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Vascular Interventions and Therapies (“VIT”) net sales were $29.9 million, an increase of 3.3%, compared to $29.0 million a year ago. Sales of AngioVac
grew 46% over the previous year and were partially offset by a decline in sales of Venous products as a result of lower elective procedure volumes. Auryon sales during the quarter were $1.1 million, and the Company announced the full
commercial launch of this platform on September 21, 2020.
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Vascular Access net sales were $28.1 million, an increase of 21.4% from $23.2 million a year ago, which includes the impact of a previously disclosed
sale in the UK through our distributor partner to the NHS. Excluding the impact of this sale, Vascular Access sales declined approximately 1.2% year over year.
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U.S. net sales in the first quarter of fiscal 2021 were $54.1 million, an increase of 2.2% from $52.9 million a year ago, and
International net sales were $16.1 million, including the one-time sale to NHS, an increase of 22.9% from $13.1 million a year ago.
Gross margin for the first quarter of fiscal 2021 was 50.9%, a decline of 700 basis points compared to the first quarter of
fiscal 2020. The gross margin decline was primarily attributable to the Company’s previously discussed COVID-related operating plan, which included COVID-related operating protocols designed to ensure supply-chain security and employee safety.
Additionally, during the first quarter, inventory was reduced by $7.2 million when compared to inventory levels on May 31, 2020.
The Company recorded a net loss of $4.3 million, or loss per share of $0.11, in the first quarter of fiscal 2021. This
compares to net loss of approximately $1.3 million, or loss per share of $0.03, a year ago.
Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income for the first quarter of fiscal
2021 was $0.6 million or adjusted earnings of $0.02 per share, compared to adjusted net income of $3.2 million, or adjusted earnings per share of $0.08, in the first quarter of fiscal 2020.
Adjusted EBITDA in the first quarter of fiscal 2021, excluding the items shown in the reconciliation table below, was $4.5
million, compared to $7.3 million in the first quarter of fiscal 2020.
In the first quarter of fiscal 2021, the Company used $5.4 million in operating cash and had capital expenditures of $1.8
million. As of August 31, 2020, the Company had $47.9 million in cash and cash equivalents compared to $54.4 million in cash and cash equivalents at the end of the fourth quarter of fiscal 2020. As of August 31, 2020, the Company had $40.0 million
in debt outstanding, consistent with its debt balance on May 31, 2020. Management remains focused on cash preservation amid the current environment.
Fiscal Year 2021 Financial Guidance
The Company expects fiscal year 2021 net sales to
be in the range of $278 to $284 million and fiscal year 2021 adjusted earnings per share to be in the range of $0.00 to $0.05.
Conference Call
The Company’s management will host a conference call today at 8:00 a.m. ET to discuss its fiscal 2021 first 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 13710506.
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, September 29, 2020, until 11:59 p.m. ET on
Tuesday, October 6, 2020. To hear this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13710506.
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, 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, 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 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, 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 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, 2020. 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.
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ANGIODYNAMICS, INC. AND SUBSIDIARIES
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CONSOLIDATED INCOME STATEMENTS
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(in thousands, except per share data)
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Three Months Ended
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Aug 31, 2020
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Aug 31, 2019
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(unaudited)
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Net sales
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$
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70,216
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$
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66,042
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Cost of sales (exclusive of intangible amortization)
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34,452
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27,825
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Gross profit
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35,764
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38,217
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% of net sales
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50.9
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%
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57.9
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%
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Operating expenses
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Research and development
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9,009
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6,292
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Sales and marketing
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17,705
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19,380
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General and administrative
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8,557
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8,453
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Amortization of intangibles
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4,953
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3,868
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Change in fair value of contingent consideration
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(657)
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(448)
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Acquisition, restructuring and other items, net
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1,319
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1,500
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Total operating expenses
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40,886
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39,045
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Operating loss
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(5,122)
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(828)
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Interest expense, net
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(215)
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(465)
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Other income (expense), net
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524
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(98)
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Total other income (expense), net
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309
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(563)
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Loss before income tax benefit
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(4,813)
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(1,391)
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Income tax benefit
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(545)
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(116)
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Net loss
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$
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(4,268)
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$
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(1,275)
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Loss per share
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Basic
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$
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(0.11)
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$
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(0.03)
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Diluted
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$
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(0.11)
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$
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(0.03)
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Weighted average shares outstanding
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|||||||
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Basic
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38,157
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37,783
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Diluted
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38,157
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37,783
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ANGIODYNAMICS, INC. AND SUBSIDIARIES
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GAAP TO NON-GAAP RECONCILIATION
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(in thousands, except per share data)
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Reconciliation of Net Loss to non-GAAP Adjusted Net Income:
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Three Months Ended
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Aug 31, 2020
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Aug 31, 2019
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(unaudited)
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Net loss
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$
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(4,268)
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$
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(1,275)
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Amortization of intangibles
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4,953
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3,868
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Change in fair value of contingent consideration
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(657)
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(448)
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Acquisition, restructuring and other items, net (1)
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1,319
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1,500
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Write-off of deferred financing fees (2)
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—
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593
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Tax effect of non-GAAP items (3)
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(729)
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(1,064)
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Adjusted net income
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$
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618
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$
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3,174
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Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
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Three Months Ended
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|||||||
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Aug 31, 2020
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Aug 31, 2019
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(unaudited)
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Diluted loss per share
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$
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(0.11)
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$
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(0.03)
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Amortization of intangibles
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0.13
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0.10
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Change in fair value of contingent consideration
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(0.02)
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(0.01)
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Acquisition, restructuring and other items, net (1)
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0.03
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0.04
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Write-off of deferred financing fees (2)
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—
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0.02
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Tax effect of non-GAAP items (3)
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(0.01)
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(0.04)
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Adjusted diluted earnings per share
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$
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0.02
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$
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0.08
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Adjusted diluted sharecount
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38,191
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38,158
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(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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(2) Deferred financing fees related to the old credit agreement were written off during the first quarter of fiscal year 2020.
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(3) 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 August 31, 2020 and 2019.
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ANGIODYNAMICS, INC. AND SUBSIDIARIES
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GAAP TO NON-GAAP RECONCILIATION (Continued)
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(in thousands, except per share data)
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Reconciliation of Net Loss to Adjusted EBITDA:
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|||||||
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Three Months Ended
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|||||||
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Aug 31, 2020
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Aug 31, 2019
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||||||
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(unaudited)
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|||||||
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Net loss
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$
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(4,268)
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$
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(1,275)
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|||
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Income tax benefit
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(545)
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(116)
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|||||
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Interest expense, net
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215
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465
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|||||
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Depreciation and amortization
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6,538
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5,170
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|||||
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Change in fair value of contingent consideration
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(657)
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(448)
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|||||
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Stock based compensation
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1,864
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1,984
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|||||
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Acquisition, restructuring and other items, net (1)
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1,319
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1,500
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|||||
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Adjusted EBITDA
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$
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4,466
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$
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7,280
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Per diluted share:
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|||||||
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Adjusted EBITDA
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$
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0.12
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$
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0.19
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|||
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(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
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NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
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(in thousands)
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Three Months Ended
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||||||||||||
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Aug 31, 2020
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Aug 31, 2019
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% Growth
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Currency Impact
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Constant Currency Growth
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||||||||
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(unaudited)
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||||||||||||
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Net Sales by Product Category
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||||||||||||
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Vascular Interventions & Therapies
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$
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29,857
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$
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28,913
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3.3%
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|||||||
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Vascular Access
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28,105
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23,159
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21.4%
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|||||||||
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Oncology
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12,254
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13,970
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(12.3)%
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|||||||||
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$
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70,216
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$
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66,042
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6.3%
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0.0%
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6.3%
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||||||
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—
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—
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|||||||||||
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Net Sales by Geography
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||||||||||||
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United States
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$
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54,108
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$
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52,937
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2.2%
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0.0%
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2.2%
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|||||
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International
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16,108
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13,105
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22.9%
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0.0%
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22.7%
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|||||||
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$
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70,216
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$
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66,042
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6.3%
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0.0%
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6.3%
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||||||
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ANGIODYNAMICS, INC. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(in thousands)
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|
Aug 31, 2020
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May 31, 2020
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||||||
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(unaudited)
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(audited)
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||||||
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Assets
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|||||||
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Current assets:
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|||||||
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Cash and cash equivalents
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$
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47,929
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$
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54,435
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|||
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Accounts receivable, net
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33,590
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31,263
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|||||
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Inventories
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52,762
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59,905
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|||||
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Prepaid expenses and other
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7,957
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7,310
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|||||
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Total current assets
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142,238
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152,913
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|||||
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Property, plant and equipment, net
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29,427
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28,312
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Other assets
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16,833
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15,338
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Intangible assets, net
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194,318
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197,136
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|||||
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Goodwill
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200,943
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200,515
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|||||
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Total assets
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$
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583,759
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$
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594,214
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|||
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Liabilities and stockholders' equity
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|||||||
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Current liabilities:
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|||||||
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Accounts payable
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$
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14,008
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$
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19,096
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|||
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Accrued liabilities
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23,587
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29,380
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|||||
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Current portion of contingent consideration
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—
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836
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|||||
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Other current liabilities
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2,251
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2,133
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|||||
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Total current liabilities
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39,846
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51,445
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|||||
|
Long-term debt, net of current portion
|
40,000
|
40,000
|
|||||
|
Contingent consideration, net of current portion
|
14,994
|
14,811
|
|||||
|
Deferred income taxes
|
23,817
|
24,057
|
|||||
|
Other long-term liabilities
|
10,048
|
9,029
|
|||||
|
Total liabilities
|
128,705
|
139,342
|
|||||
|
Stockholders' equity
|
455,054
|
454,872
|
|||||
|
Total Liabilities and Stockholders' Equity
|
$
|
583,759
|
$
|
594,214
|
|||
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands)
|
|
Three Months Ended
|
|||||||
|
Aug 31, 2020
|
Aug 31, 2019
|
||||||
|
(unaudited)
|
|||||||
|
Cash flows from operating activities:
|
|||||||
|
Net loss
|
$
|
(4,268)
|
$
|
(1,275)
|
|||
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|||||||
|
Depreciation and amortization
|
6,577
|
5,207
|
|||||
|
Non-cash lease expense
|
666
|
—
|
|||||
|
Stock based compensation
|
1,864
|
1,984
|
|||||
|
Change in fair value of contingent consideration
|
(657)
|
(448)
|
|||||
|
Deferred income taxes
|
(620)
|
(175)
|
|||||
|
Change in accounts receivable allowances
|
460
|
(453)
|
|||||
|
Fixed and intangible asset impairments and disposals
|
90
|
99
|
|||||
|
Write-off of other assets
|
—
|
593
|
|||||
|
Other
|
(432)
|
(8)
|
|||||
|
Changes in operating assets and liabilities, net of acquisitions:
|
|||||||
|
Accounts receivable
|
(2,706)
|
11,474
|
|||||
|
Inventories
|
7,247
|
(5,153)
|
|||||
|
Prepaid expenses and other
|
(2,272)
|
(746)
|
|||||
|
Accounts payable, accrued and other liabilities
|
(11,374)
|
(17,633)
|
|||||
|
Net cash used in operating activities
|
(5,425)
|
(6,534)
|
|||||
|
Cash flows from investing activities:
|
|||||||
|
Additions to property, plant and equipment
|
(1,824)
|
(1,391)
|
|||||
|
Acquisition of intangibles
|
—
|
(150)
|
|||||
|
Net cash used in investing activities
|
(1,824)
|
(1,541)
|
|||||
|
Cash flows from financing activities:
|
|||||||
|
Repayment of long-term debt
|
—
|
(132,500)
|
|||||
|
Deferred financing costs on long-term debt
|
—
|
(741)
|
|||||
|
Payment of acquisition related contingent consideration
|
—
|
(1,208)
|
|||||
|
Proceeds (outlays) from exercise of stock options and employee stock purchase plan
|
491
|
(1,300)
|
|||||
|
Net cash provided by (used in) financing activities
|
491
|
(135,749)
|
|||||
|
Effect of exchange rate changes on cash and cash equivalents
|
252
|
(168)
|
|||||
|
Decrease in cash and cash equivalents
|
(6,506)
|
(143,992)
|
|||||
|
Cash and cash equivalents at beginning of period
|
54,435
|
227,641
|
|||||
|
Cash and cash equivalents at end of period
|
$
|
47,929
|
$
|
83,649
|
|||
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
|
GAAP TO NON-GAAP RECONCILIATION
|
|
(in thousands)
|
|
Reconciliation of Free Cash Flows:
|
|||||||
|
Three Months Ended
|
|||||||
|
Aug 31, 2020
|
Aug 31, 2019
|
||||||
|
(unaudited)
|
|||||||
|
Net cash used in operating activities
|
$
|
(5,425)
|
$
|
(6,534)
|
|||
|
Additions to property, plant and equipment
|
(1,824)
|
(1,391)
|
|||||
|
Free Cash Flow
|
$
|
(7,249)
|
$
|
(7,925)
|
|||
Exhibit 99.2
AngioDynamics First Quarter 2021 Earnings PresentationSeptember 29, 2020
Notice Regarding Forward-Looking StatementsThis presentation 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 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, 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 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, 2020. 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.Notice Regarding Non-GAAP Financial
MeasuresManagement 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 presentation, AngioDynamics has reported adjusted EBITDA (income before interest, taxes, depreciation and
amortization and stock-based compensation); 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. Forward-Looking Statements
First Quarter FY2021 Highlights Financial Performance Product Family Year-over-Year Sales Growth (in
millions) Q1 FY21 Q1 FY20 YOY Change Revenue $70.2 $66.0 6.3% Gross Margin 50.9% 57.9% (700 bps) Adjusted EPS $0.02 $0.08 ($0.06) Adjusted EBITDA $4.5 $7.3 ($2.8) Cash Used In Operations $5.4 $6.5 Free Cash
Flow ($7.2) ($7.9) Vascular Interventions and Therapies AngioVac® 46% Auryon NA Thrombolytic (8%) Core Peripheral 0% Venous Insufficiency (16%) Vascular Access Midlines 86% C3
NA PICCs 45% Ports (5%) Dialysis (2%) Oncology NanoKnife® Capital (76%) NanoKnife® Disposables (5%) Solero® Microwave 7% BioSentry 29% Alatus and IsoLoc Balloons (31%) RadioFrequency Ablation (29%)
First Quarter FY2021 Results (unaudited) $ in thousands (except per share data) Q1 FY2021 Q1
FY2020 YOY Change Revenue Vascular Interventions and Therapies Vascular Access Oncology United States International $70,21629,85728,10512,25454,10816,108 $66,04228,91323,15913,97052,93713,105 6.3%3.3%21.4%(12.3%)2.2%22.9% Net LossAdjusted
Net Income ($4,268)$618 ($1,275)$3,174 ($2,993)($2,556) GAAP EPSNon-GAAP Adjusted EPS ($0.11)$0.02 ($0.03)$0.08 ($0.08)($0.06) Gross Margin 50.9% 57.9% 700 bps Adjusted EBITDA $4,466 $7,280 ($2,814) Free Cash
Flow ($7,249) ($7,925) $676 Q1 FY2021 Q4 FY2020 Change Cash $47,929 $54,435 ($6,506) Debt $40,000 $40,000 -
Revenue $278 - $284 million Adjusted EPS $0.00 - $0.05 Corporate Developments Previously disclosed
order to National Health Services in the UK for $5.2 million in the first quarter of fiscal year 2021.Gross margin was 50.9% and was primarily impacted by COVID-related operating protocols designed to ensure supply-chain security and employee
safety.Inventory was reduced by $7.2 million in the first quarter.Procedural volumes began to rebound in June with steady improvement throughout the first quarter but not yet back to pre-COVID levels.Continued investment in three key technology
platforms: NanoKnife, AngioVac, and Auryon.NanoKnife disposable growth of 7% in the United States was more than offset by softness in China due to the ongoing impacts of COVID-19.NanoKnife DIRECT study: 23 sites have secured IRB approval,
compared to 21 at the end of the fourth quarter.Official launch of Auryon on September 21, 2020. FY2021 Guidance
GAAP to Non-GAAP Reconciliation
Reconciliation of GAAP to Non-GAAP Net Income (Loss) and EPS Amounts in thousands Includes costs
related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items.Deferred financing fees related to the old credit agreement were written off during
the first quarter of fiscal year 2020.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 August
31, 2020 and 2019.
Reconciliation of Net Loss to Adjusted EBITDA Amounts in thousands
Growth through Focus Execution Accountability