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):  March 30, 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 March 30, 2023, AngioDynamics, Inc. (“AngioDynamics”) issued a press release announcing financial results for the fiscal third quarter ended February 28, 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 7.01 – Regulation FD Disclosure.

Presentation slides discussing AngioDynamics and its fiscal third quarter ended February 28, 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, 2022. 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 March 30, 2023.
     
 
Presentation, dated March 30, 2023.





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:  March 30, 2023
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 2023 Third Quarter
Financial Results; Revises Guidance
Fiscal Year 2023 Third Quarter Highlights
•
Net sales of $80.7 million increased 9.1% compared to the prior-year quarter
o
Med Tech net sales of $22.9 million increased 16.6%
o
Med Device net sales of $57.8 million increased 6.4%
•
Gross margin of 50.2% decreased 200 basis points year over year
•
GAAP loss per share of $0.24 and adjusted loss per share of $0.03
Latham, New York, March 30, 2023 – 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 third quarter of fiscal year 2023, which ended February 28, 2023.
“We continued to make solid progress during the quarter executing on our strategic plan. Auryon, AlphaVac, NanoKnife, and our Med Device portfolio were bright spots during the third quarter, and while we experienced continued softness in AngioVac, we have taken steps to address the performance, and it remains an important driver for AngioDynamics’ growth,” commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “While our quarterly results were softer than we would have liked, I am pleased with our continued operational improvements and expense discipline, which drove positive cash flow from operations during the quarter in the face
of continued inflationary pressures. Our team remains committed to pursuing innovation and driving sustained growth in attractive end markets.”
Third Quarter 2023 Financial Results
Net sales for the third quarter of fiscal 2023 were $80.7 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 $22.9 million, a 16.6% 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 $10.4 million, which increased 42.8%, and NanoKnife sales of $4.1 million, which increased 5.4% compared to the third quarter of fiscal 2022. NanoKnife disposable sales were $3.5 million, which increased 22.2% compared to the third quarter of fiscal 2022. In addition, AlphaVac sales were $2.0 million, an increase of $1.3 million from a year ago, and AngioVac sales were $5.5 million, a decline of 15.7% compared to the third quarter of fiscal 2022.
Med Device net sales were $57.8 million, an increase of 6.4% compared to the prior-year period. Med Device sales growth was primarily driven by growth in angiographic catheters, ports, dialysis catheters and microwave products.
U.S. net sales in the third quarter of fiscal 2023 were $67.6 million, an increase of 8.3% from $62.4 million a year ago. International net sales were $13.1 million, an increase of 13.6% from $11.5 million a year ago.
Gross margin for the third quarter of fiscal 2023 was 50.2%, a decrease of 200 basis points compared to the third quarter of fiscal 2022. Gross margin for the Med Tech business was 64.6%, a decline of 150 basis points from the third quarter of fiscal 2022. Gross margin for the Med Device business was 44.5%, a decrease of 260 basis points compared to the third quarter of fiscal 2022. Gross margin was negatively impacted by inflationary pressures including increased costs for labor and raw materials.
The Company recorded a net loss of $9.5 million, or a loss per share of $0.24, in the third quarter of fiscal 2023. This compares to a net loss of $5.0 million, or a loss per share of $0.13, a year ago.
Excluding the items shown in the non-GAAP reconciliation table below, adjusted net loss for the third quarter of fiscal 2023 was $1.0 million, and adjusted loss per share was $0.03, compared to adjusted net income of $1.3 million and adjusted earnings per share of $0.03 in the prior-year period. Adjusted net income and adjusted earnings per share in the third quarter of fiscal 2022 included a $4.2 million, or $0.08 per share benefit, respectively, related to the reimbursement of certain expenses under the employee retention credit as part of the CARES Act.
Adjusted EBITDA in the third quarter of fiscal 2023, excluding the items shown in the reconciliation table below, was $4.3 million, compared to adjusted EBITDA of $6.7 million in the third quarter of fiscal 2022.
In the third quarter of fiscal 2023, the Company generated $1.4 million in operating cash, had capital expenditures of $0.7 million and had additions to Auryon placement and evaluation units of $1.5 million.
On February 28, 2023, the Company had $30.1 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 February 28, 2023.
Nine Months Financial Results
For the nine months ended February 28, 2023:
Net sales were $247.7 million, an increase of 8.1%, compared to $229.2 million for the same period a year ago.
Med Tech net sales were $70.2 million, a 25.1% increase from the prior year period. Med Device net sales were $177.5 million, an increase of 2.5% from the prior year period.
Gross margin decreased 40 basis points to 51.6% from 52.0% a year ago.
The Company’s net loss was $31.0 million, or a loss of $0.79 per share, compared to a net loss of $20.3 million, or a loss of $0.52 per share, a year ago.
Excluding the items shown in the non-GAAP reconciliation table, below, adjusted net loss was $3.2 million, with adjusted loss per share of $0.08, compared to adjusted net loss and adjusted loss per share of $0.4 million, and $0.01, respectively, a year ago. Adjusted net income and adjusted earnings per share for the nine months ended February 28, 2022 included a $4.2 million, or $0.08 per share benefit, respectively, related to the reimbursement of certain expenses under the employee retention credit as part of the CARES Act.
Adjusted EBITDA, excluding the items shown in the reconciliation table below, was $14.7 million, compared to $14.7 million for the same period a year ago.
Fiscal Year 2023 Financial Guidance
As a result of lower than anticipated AngioVac sales, management now expects the Company’s fiscal year 2023 net sales to be in the range of $338 million to $342 million, a
decrease from its prior guidance of $342 million to $348 million. Management now expects gross margin to be approximately 51.0% to 52.0%, a decrease from its prior guidance of 52.5% to 54.5%, and adjusted earnings per share to be in the range of a loss of $0.06 to a loss of $0.01, a decrease from its prior guidance of earnings of $0.01 to $0.06. The adjusted earnings per share guidance is the result of higher than previously anticipated inflationary pressure combined with the lower AngioVac revenue.
Conference Call
The Company's management will host a conference call today at 8:00 a.m. ET to discuss its third 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 13737051.
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, March 30, 2023, until 11:59 p.m. ET on Thursday, April 6, 2023. To listen to this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13737051.
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
    
Nine Months Ended
  
   
Feb 28, 2023
    
Feb 28, 2022
    
Feb 28, 2023
    
Feb 28, 2022
  
   
(unaudited)
    
(unaudited)
  
                         
Net sales
  
$
80,712
    
$
73,970
    
$
247,678
    
$
229,221
  
Cost of sales (exclusive of intangible amortization)
    
40,208
      
35,387
      
119,791
      
109,944
  
Gross profit
    
40,504
      
38,583
      
127,887
      
119,277
  
% of net sales
    
50.2
%
    
52.2
%
    
51.6
%
    
52.0
%
                                 
Operating expenses
                                
Research and development
    
6,852
      
7,280
      
22,023
      
22,873
  
Sales and marketing
    
25,406
      
20,416
      
77,956
      
68,468
  
General and administrative
    
8,839
      
8,727
      
29,775
      
27,348
  
Amortization of intangibles
    
4,739
      
4,895
      
14,384
      
14,605
  
Change in fair value of contingent consideration
    
227
      
201
      
2,084
      
1,005
  
Acquisition, restructuring and other items, net
    
3,369
      
2,359
      
12,009
      
7,052
  
Total operating expenses
    
49,432
      
43,878
      
158,231
      
141,351
  
Operating loss
    
(8,928
)
    
(5,295
)
    
(30,344
)
    
(22,074
)
Interest expense, net
    
(736
)
    
(173
)
    
(1,801
)
    
(503
)
Other expense, net
    
—
      
(289
)
    
(427
)
    
(651
)
Total other expense, net
    
(736
)
    
(462
)
    
(2,228
)
    
(1,154
)
Loss before income tax benefit
    
(9,664
)
    
(5,757
)
    
(32,572
)
    
(23,228
)
Income tax benefit
    
(179
)
    
(799
)
    
(1,597
)
    
(2,947
)
Net loss
  
$
(9,485
)
  
$
(4,958
)
  
$
(30,975
)
  
$
(20,281
)
                                 
Loss per share
                                
Basic
  
$
(0.24
)
  
$
(0.13
)
  
$
(0.79
)
  
$
(0.52
)
Diluted
  
$
(0.24
)
  
$
(0.13
)
  
$
(0.79
)
  
$
(0.52
)
                                 
Weighted average shares outstanding
                                
Basic
    
39,509
      
39,092
      
39,436
      
38,959
  
Diluted
    
39,509
      
39,092
      
39,436
      
38,959
  


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
    
Nine Months Ended
  
   
Feb 28, 2023
    
Feb 28, 2022
    
Feb 28, 2023
    
Feb 28, 2022
  
   
(unaudited)
    
(unaudited)
  
                         
Net loss
  
$
(9,485
)
  
$
(4,958
)
  
$
(30,975
)
  
$
(20,281
)
                                 
Amortization of intangibles
    
4,739
      
4,895
      
14,384
      
14,605
  
Change in fair value of contingent consideration
    
227
      
201
      
2,084
      
1,005
  
Acquisition, restructuring and other items, net (1)
    
3,369
      
2,359
      
12,009
      
7,052
  
Tax effect of non-GAAP items (2)
    
127
      
(1,190
)
    
(655
)
    
(2,817
)
Adjusted net income (loss)
  
$
(1,023
)
  
$
1,307
    
$
(3,153
)
  
$
(436
)
                                 
Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings (Loss) Per Share:
  
                                 
   
Three Months Ended
    
Nine Months Ended
  
   
Feb 28, 2023
    
Feb 28, 2022
    
Feb 28, 2023
    
Feb 28, 2022
  
   
(unaudited)
    
(unaudited)
  
                                 
Diluted loss per share
  
$
(0.24
)
  
$
(0.13
)
  
$
(0.79
)
  
$
(0.52
)
                                 
Amortization of intangibles
    
0.12
      
0.12
      
0.36
      
0.37
  
Change in fair value of contingent consideration
    
0.01
      
—
      
0.05
      
0.03
  
Acquisition, restructuring and other items, net (1)
    
0.08
      
0.07
      
0.32
      
0.18
  
Tax effect of non-GAAP items (2)
    
—
      
(0.03
)
    
(0.02
)
    
(0.07
)
Adjusted diluted earnings (loss) per share
  
$
(0.03
)
  
$
0.03
    
$
(0.08
)
  
$
(0.01
)
                                 
Adjusted diluted sharecount (3)
    
39,509
      
40,280
      
39,436
      
38,959
  

(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 February 28, 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 Loss to Adjusted EBITDA:
                        
                         
   
Three Months Ended
    
Nine Months Ended
  
   
Feb 28, 2023
    
Feb 28, 2022
    
Feb 28, 2023
    
Feb 28, 2022
  
   
(unaudited)
    
(unaudited)
  
                         
Net loss
  
$
(9,485
)
  
$
(4,958
)
  
$
(30,975
)
  
$
(20,281
)
                                 
Income tax benefit
    
(179
)
    
(799
)
    
(1,597
)
    
(2,947
)
Interest expense, net
    
736
      
173
      
1,801
      
503
  
Depreciation and amortization
    
7,787
      
7,367
      
23,175
      
21,566
  
Change in fair value of contingent consideration
    
227
      
201
      
2,084
      
1,005
  
Stock based compensation
    
1,803
      
2,352
      
8,177
      
7,789
  
Acquisition, restructuring and other items, net (1)
    
3,369
      
2,359
      
12,009
      
7,052
  
Adjusted EBITDA
  
$
4,258
    
$
6,695
    
$
14,674
    
$
14,687
  
                                 
Per diluted share:
                                
Adjusted EBITDA
  
$
0.11
    
$
0.17
    
$
0.37
    
$
0.38
  
                                 

(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
    
Nine Months Ended
  
   
Feb 28, 2023
    
Feb 28, 2022
    
% Growth
    
Currency Impact
    
Constant Currency Growth
    
Feb 28, 2023
    
Feb 28, 2022
    
% Growth
    
Currency Impact
    
Constant Currency Growth
  
 
   
(unaudited)
                      
(unaudited)
                    
Net Sales
                                            
Med Tech
  
$
22,874
    
$
19,612
      
16.6
%
              
$
70,193
    
$
56,106
      
25.1
%
            
Med Device
    
57,838
      
54,358
      
6.4
%
                
177,485
      
173,115
      
2.5
%
            
   
$
80,712
    
$
73,970
      
9.1
%
    
0.3
%
    
9.4
%
  
$
247,678
    
$
229,221
      
8.1
%
    
0.4
%
    
8.5
%
                                                                                 
Net Sales
                                                          
United States
  
$
67,620
    
$
62,445
      
8.3
%
                  
$
208,274
    
$
192,259
      
8.3
%
                
International
    
13,092
      
11,525
      
13.6
%
    
1.6
%
    
15.2
%
    
39,404
      
36,962
      
6.6
%
    
2.7
%
    
9.3
%
   
$
80,712
    
$
73,970
      
9.1
%
    
0.3
%
    
9.4
%
  
$
247,678
    
$
229,221
      
8.1
%
    
0.4
%
    
8.5
%
                                                                                 
                                                                                 
GROSS PROFIT BY PRODUCT CATEGORY
(in thousands)
   
Three Months Ended
    
Nine Months Ended
  
   
Feb 28, 2023
    
Feb 28, 2022
    
% Change
    
Feb 28, 2023
    
Feb 28, 2022
    
% Change
  
   
(unaudited)
          
(unaudited)
        
Med Tech
  
$
14,774
    
$
12,965
      
14.0
%
  
$
44,816
    
$
37,060
      
20.9
%
Gross profit % of sales
    
64.6
%
    
66.1
%
            
63.8
%
    
66.1
%
        
                                                 
Med Device
  
$
25,730
    
$
25,618
      
0.4
%
  
$
83,071
    
$
82,217
      
1.0
%
Gross profit % of sales
    
44.5
%
    
47.1
%
            
46.8
%
    
47.5
%
        
                                                 
Total
  
$
40,504
    
$
38,583
      
5.0
%
  
$
127,887
    
$
119,277
      
7.2
%
Gross profit % of sales
    
50.2
%
    
52.2
%
            
51.6
%
    
52.0
%
        

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)

   
Feb 28, 2023
    
May 31, 2022
  
   
(unaudited)
    
(audited)
  
Assets
            
Current assets:
            
Cash and cash equivalents
  
$
30,111
    
$
28,825
  
Accounts receivable, net
    
50,892
      
52,304
  
Inventories
    
63,532
      
51,392
  
Prepaid expenses and other
    
8,039
      
10,824
  
Total current assets
    
152,574
      
143,345
  
Property, plant and equipment, net
    
45,559
      
45,005
  
Other assets
    
10,729
      
10,963
  
Intangible assets, net
    
134,011
      
152,380
  
Goodwill
    
199,976
      
201,058
  
Total assets
  
$
542,849
    
$
552,751
  
Liabilities and stockholders' equity
                
Current liabilities:
                
Accounts payable
  
$
35,600
    
$
28,047
  
Accrued liabilities
    
21,775
      
34,842
  
Current portion of contingent consideration
    
9,877
      
8,783
  
Other current liabilities
    
2,380
      
2,652
  
Total current liabilities
    
69,632
      
74,324
  
Long-term debt
    
49,807
      
25,000
  
Deferred income taxes
    
13,490
      
16,037
  
Contingent consideration
    
9,182
      
8,165
  
Other long-term liabilities
    
3,083
      
4,736
  
Total liabilities
    
145,194
      
128,262
  
Stockholders' equity
    
397,655
      
424,489
  
Total Liabilities and Stockholders' Equity
  
$
542,849
    
$
552,751
  
                 

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

   
Three Months Ended
    
Nine Months Ended
  
   
Feb 28, 2023
    
Feb 28, 2022
    
Feb 28, 2023
    
Feb 28, 2022
  
   
(unaudited)
    
(unaudited)
  
Cash flows from operating activities:
                        
Net loss
  
$
(9,485
)
  
$
(4,958
)
  
$
(30,975
)
  
$
(20,281
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
                                
Depreciation and amortization
    
7,838
      
7,406
      
23,316
      
21,682
  
Non-cash lease expense
    
635
      
613
      
1,883
      
1,822
  
Stock based compensation
    
1,803
      
2,352
      
8,177
      
7,789
  
Change in fair value of contingent consideration
    
227
      
201
      
2,084
      
1,005
  
Deferred income taxes
    
(227
)
    
(862
)
    
(1,752
)
    
(3,121
)
Change in accounts receivable allowances
    
168
      
(82
)
    
560
      
(66
)
Fixed and intangible asset impairments and disposals
    
57
      
148
      
144
      
245
  
Other
    
(274
)
    
51
      
(317
)
    
(27
)
Changes in operating assets and liabilities:
                                
Accounts receivable
    
1,778
      
(3,519
)
    
759
      
(6,441
)
Inventories
    
(423
)
    
110
      
(12,254
)
    
588
  
Prepaid expenses and other
    
3,539
      
(2,963
)
    
(392
)
    
(7,147
)
Accounts payable, accrued and other liabilities
    
(4,266
)
    
(7,288
)
    
(7,109
)
    
(11,802
)
Net cash provided by (used in) operating activities
    
1,370
      
(8,791
)
    
(15,876
)
    
(15,754
)
Cash flows from investing activities:
                                
Additions to property, plant and equipment
    
(666
)
    
(1,106
)
    
(2,756
)
    
(3,258
)
Additions to placement and evaluation units
    
(1,480
)
    
(1,487
)
    
(4,922
)
    
(8,676
)
Cash paid in acquisition
    
—
      
—
      
(540
)
    
(3,600
)
Net cash used in investing activities
    
(2,146
)
    
(2,593
)
    
(8,218
)
    
(15,534
)
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
    
—
      
—
      
(751
)
    
—
  
Proceeds from exercise of stock options and employee stock purchase plan
    
941
      
966
      
1,171
      
2,354
  
Net cash provided by financing activities
    
941
      
966
      
25,420
      
7,354
  
Effect of exchange rate changes on cash and cash equivalents
    
89
      
17
      
(40
)
    
(337
)
Increase (decrease)  in cash and cash equivalents
    
254
      
(10,401
)
    
1,286
      
(24,271
)
Cash and cash equivalents at beginning of period
    
29,857
      
34,291
      
28,825
      
48,161
  
Cash and cash equivalents at end of period
  
$
30,111
    
$
23,890
    
$
30,111
    
$
23,890
  













Exhibit 99.2

 ANGIODYNAMICS  Third Quarter 2023 Earnings Presentation  March 30, 2023  1 
 
 2  Forward-Looking Statement  Notice Regarding Forward-Looking Statements  This 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,” “projects,” “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 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.  Notice Regarding Non-GAAP Financial 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 presentation, AngioDynamics has reported adjusted EBITDA (income before interest, taxes, depreciation and amortization and stock-based compensation); 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. 
 
 Corporate Developments – Q3 and YTD FY23  Q3 Operational developments  Positive cash flow from operations of $1.4 million  Continued gross margin headwinds in raw material and labor inflation  Backlog increased by $0.4 million to $5.4 million at quarter end due to certain component supplier delays  Q3 revenue growth of 9.1%  Med Tech up 16.6%; Med Device up 6.4%  $10.4 million in Auryon sales, growth of 42.8% YOY  Mechanical Thrombectomy (AngioVac and AlphaVac) up 4.5%  $2.0 million in AlphaVac sales; AngioVac sales declined 15.7%  22.2% YOY growth in NanoKnife disposables  IDE clinical studies and pathway expansion   PRESERVE study for the treatment of prostate cancer with NanoKnife on track to complete enrollment around the end of June  APEX study for the treatment of pulmonary embolism with AlphaVac F18  17 activated sites  On track to complete enrollment in early calendar 2024  3  YTD revenue growth of 8.1%  Med Tech up 25.1%; Med Device up 2.5%  $29.3 million in Auryon sales, growth of 50.7% YOY   11.9% YOY growth in Mechanical Thrombectomy  $5.4 million in AlphaVac sales; AngioVac sales declined 8.2%  26.7% YOY growth in NanoKnife disposables  Continued focused investment in our 3 key Med Tech platforms: Auryon, Thrombus Management & NanoKnife 
 
 Q3 and YTD FY23 Results (unaudited)  $ in thousands (except per share data)  Q3 FY23  Q3 FY22  Change  YTD FY23  YTD FY22  Change  Revenue   $80,712  $73,970  9.1%  $247,678  $229,221  8.1%   Med Tech    Med Device   $22,874  $57,838  $19,612  $54,358  16.6%  6.4%  $70,193  $177,485  $56,106  $173,115  25.1%  2.5%   United States   International  $67,620  $13,092  $62,445  $11,525  8.3%  13.6%  $208,274  $39,404  $192,259  $36,962  8.3%  6.6%  Gross Margin   Med Tech    Med Device   50.2%  64.6%  44.5%  52.2%  66.1%  47.1%  (200 bps)  (150 bps)  (260 bps)  51.6%  63.8%  46.8%  52.0%  66.1%  47.5%  (40 bps)  (230 bps)  (70 bps)  Net Loss  Non-GAAP Adjusted Net Income (Loss)  ($9,485)  ($1,023)  ($4,958)  $1,307  ($4,527)  ($2,330)  ($30,975)  ($3,153)  ($20,281)  ($436)  ($10,694)  ($2,717)  GAAP EPS  Non-GAAP Adjusted EPS  ($0.24)  ($0.03)  ($0.13)  $0.03  ($0.11)  ($0.06)  ($0.79)  ($0.08)  ($0.52)  ($0.01)  ($0.27)  ($0.07)  Adjusted EBITDA  $4,258  $6,695  ($2,437)  $14,674  $14,687  ($13)  $ in thousands   Q3 FY23  Q4 FY22  Change  Cash  $30,111   $28,825  $1,286  Debt   Revolving Facility    Delayed-Draw Term Loan  $50,000  $25,000  $25,000   $25,000   $25,000  $0  $25,000  $0  $25,000  Net (Debt) Cash  ($19,889)   $3,825  ($23,714)  4 
 
 Q3 and YTD FY23 Results  5   Med Device   Med Tech  25.1% growth  2.5% growth  YTD Revenue Growth  YTD FY22  YTD FY23  YTD Revenue Contribution  YTD FY22  YTD FY23   Med Device   Med Tech  16.6% growth  6.4% growth  Q3 Revenue Growth  Q3 FY22  Q3 FY23  Q3 Revenue Contribution  Q3 FY22  Q3 FY23 
 
 Sales Comparison to Prior-Year Periods  6  Med Tech  Q3 FY23  YTD FY23  Auryon  42.8%  50.7%  Thrombus Management*   AngioVac   AlphaVac**  (0.7%)  (15.7%)  199.4%  9.3%  (8.2%)  347.9%  NanoKnife® Disposables  22.2%  26.7%  NanoKnife® Capital  (45.6%)  (13.0%)  Med Device  Q3 FY23  YTD FY23  Core Peripheral  13.8%  9.9%  Venous  (20.2%)  (14.6%)  PICCs  (6.7%)  (7.7%)  Midlines  (12.2%)  (8.8%)  Ports  22.6%  6.8%  Dialysis  23.5%  26.7%  Solero® Microwave  19.3%  10.4%  RadioFrequency Ablation  12.8%  (8.3%)  BioSentry  6.7%  (5.9%)  Alatus and IsoLoc Balloons  (7.5%)  (11.4%)  * Thrombus Management includes AngioVac, AlphaVac and Thrombolytics   ** AlphaVac was launched in Q2 FY22 
 
 FY23 Guidance  7  Prior  Revised  Revenue  $342 - $348 million  $338 - $342 million  Gross Margin  Med Tech  Med Device  52.5% - 54.5%  65.0% - 68.0%  45.0% - 48.0%  51.0% - 52.0%  64.0% – 66.0%  45.0% - 48.0% (unchanged)  Adjusted EPS  $0.01 - $0.06  ($0.06) – ($0.01) 
 
 GAAP to Non-GAAP Reconciliation  8 
 

 Reconciliation of GAAP to Non-GAAP Net Income (Loss) and EPS  Reconciliation of Net Loss to Adjusted EBITDA  Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items.   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 February 28, 2023 and February 28, 2022.  Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.   9  Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items.   (in thousands, except per share data)  (in thousands)