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AngioDynamics Reports Fiscal Year 2024 Third Quarter Financial Results; Updates Fiscal Year 2024 Guidance to Reflect Asset Divestiture

Business Wire 4-Apr-2024 7:00 AM

AngioDynamics, Inc. (NASDAQ:ANGO):

Fiscal Year 2024 Third Quarter Highlights

  • Completed the sale of its PICC and Midline product portfolios to Spectrum Vascular on February 15, 2024
    • Discontinued its Uniblate and Starburst RadioFrequency products, as well as its Syntrax support catheter products, to further streamline its product portfolio

 

GAAP As Reported

Pro Forma*

Net Sales:

$75.2 million

$66.0 million

Growth:

N/A

8.0%

Gross Margin

47.7%

51.1%

GAAP Loss per Share**

$(4.73)

N/A

Adj. Loss per Share

N/A

$(0.16)

*"Pro forma" results exclude the Dialysis and BioSentry businesses divested in June 2023 and the PICC and Midline product portfolios divested in February 2024, as well as the discontinued Uniblate, Starburst, and Syntrax products. "As Reported" results include sales of the divested assets through February 14, 2024

**GAAP Loss per share includes a $159.5 million goodwill impairment and $22.0 million related to the previously announced settlement of IP litigation. The total value of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q

  • Pro forma Med Tech net sales of $25.7 million increased 12.6%
  • Pro forma Med Device net sales of $40.3 million increased 5.2%
  • Subsequent to quarter end, the Company entered into a settlement agreement with Becton, Dickinson and Company ("BD") to resolve all patent litigation with C.R. Bard, Inc., an affiliate of BD
  • Subsequent to quarter end, the Company received 510(k) clearance for the use of AlphaVac to treat pulmonary embolism

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 2024, which ended February 29, 2024.

"During our fiscal third quarter, we took another significant step in our transformation with the divestiture of our PICC and Midline product portfolios, further strengthening our balance sheet and providing us with an opportunity to enhance our focus on the growth of our Med Tech portfolio," commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. "We saw a strong pick up in growth from both our Med Tech and Med Device portfolios during the quarter and continue to drive toward meaningful margin expansion and profitability."

Mr. Clemmer continued, "Subsequent to the end of our fiscal third quarter, we reached a settlement agreement with BD/Bard that provides us with clarity and certainty going forward. This allows us to avoid continued litigation and keep the team focused on further developing our key growth platforms. I am also very pleased to announce that earlier this week we received FDA 510(k) clearance for AlphaVac in the treatment of pulmonary embolism. This approval came in ahead of even our expectations and is a testament to the strong submission compiled by our team and the compelling data generated by our APEX trial. This expanded indication is a significant piece of our long-term strategy and validates the effectiveness of the product, opening up another large, fast-growing market for us to serve with this innovative platform."

Third Quarter 2024 Financial Results

Unless otherwise noted, all financial results below are presented on a pro forma basis excluding the Dialysis and BioSentry businesses divested in June 2023, the PICC and Midline product portfolios divested in February 2024, and the recently discontinued Uniblate and Starburst RadioFrequency products and Syntrax support catheter products.

Net sales for the third quarter of fiscal year 2024 were $66.0 million, an increase of 8.0% compared to the prior-year quarter. Foreign currency translation did not have a significant impact on the Company's net sales in the quarter.

Med Tech net sales were $25.7 million, a 12.6% increase from $22.8 million in the prior-year period. Med Tech includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform. Year-over-year growth was driven by Auryon sales during the quarter of $11.8 million, which increased 14.7%, and NanoKnife sales of $6.0 million, which increased 46.7% compared to the third quarter of fiscal 2023. NanoKnife disposable sales were $4.2 million, which increased 19.8% compared to the third quarter of fiscal 2023. AngioVac sales were $5.5 million, similar to the prior-year quarter, while AlphaVac sales were $1.1 million, down from $2.0 million in the third quarter of fiscal 2023.

Med Device net sales were $40.3 million, an increase of 5.2% compared to the prior-year period.

U.S. net sales in the third quarter of fiscal 2024 were $55.8 million, an increase of 5.9% from sales of $52.7 million a year ago. International net sales were $10.1 million, an increase of 20.8% from sales of $8.4 million in the prior-year period.

GAAP reported gross margin was 47.7%, a decrease of 250 basis points compared to the third quarter of fiscal 2023. On a pro forma basis, gross margin for the third quarter of fiscal 2024 was 51.1%, a decline of 290 basis points from the third quarter of fiscal 2023. Gross margin for the Med Tech business was 61.5%, a decline of 300 basis points from the third quarter of fiscal 2023. The year-over-year decline in gross margin for the Med Tech business was driven primarily by product and geographic mix. Gross margin for the Med Device business was 44.4%, a decrease of 330 basis points compared to the third quarter of fiscal 2023. The year-over-year decline in gross margin for the Med Device business was driven primarily by a supplier recall as well as costs associated with the Company's ongoing transition to outsourced manufacturing.

The Company recorded a GAAP net loss of $190.4 million, or a loss per share of $4.73, in the third quarter of fiscal 2024. The GAAP net loss includes a goodwill impairment charge of $159.5 million, settlement charge of $22.0 million and asset impairment charges totaling $6.7 million related to the transition to outsourced manufacturing and discontinuation of Syntrax. The amount of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q. Excluding the items shown in the non-GAAP reconciliation table below, adjusted net loss for the third quarter of fiscal 2024 was $6.5 million, and adjusted loss per share was $0.16.

Adjusted EBITDA in the third quarter of fiscal 2024, excluding the items shown in the reconciliation table below, was negative $3.6 million, compared to adjusted EBITDA of negative $1.5 million in the third quarter of fiscal 2023.

On February 29, 2024, the Company had $78.5 million in cash and cash equivalents and no debt compared to $44.6 million in cash and cash equivalents and $50.0 million of debt on May 31, 2023.

In the third quarter of fiscal 2024, the Company used $12.5 million in operating cash, had capital expenditures of $0.6 million and had additions to Auryon placement and evaluation units of $1.2 million. Cash flow during the third quarter was significantly impacted by a combination of timing and extraordinary items related to both the divestiture transaction and manufacturing restructuring as well as approximately $1.0 million related to a supplier recall.

Nine Months Financial Results

Unless otherwise noted, all financial results below are presented on a pro forma basis excluding the Dialysis and BioSentry businesses divested in June 2023, the PICC and Midline product portfolios divested in February 2024, and the recently discontinued Uniblate and Starburst RadioFrequency products and Syntrax support catheter products.

For the nine months ended February 29, 2024:

Net sales were $199.6 million, an increase of 6.5% compared to $187.4 million for the same period a year ago.

Med Tech net sales were $76.6 million, a 9.6% increase from the prior-year period. Med Device net sales were $123.0 million, an increase of 4.6% from the prior-year period.

U.S. net sales were $167.6 million, a 3.6% increase from the prior-year period. International net sales were $32.0 million, an increase of 24.6% from the prior-year period.

GAAP reported gross margin was 49.9%, a decrease of 170 basis points compared to the prior-year period. On a pro forma basis, gross margin was 53.6%, a decline of 150 basis points from the prior-year period. The year-over-year decline in gross margin was driven primarily by a supplier recall as well as costs associated with the Company's ongoing transition to outsourced manufacturing.

The Company's GAAP net loss was $173.6 million, or a loss of $4.33 per share, compared to a net loss of $31.0 million, or a loss of $0.79 per share, a year ago. The GAAP net loss includes a goodwill impairment charge of $159.5 million, settlement charge of $22.0 million and asset impairment charges totaling $6.8 million related to the transition to outsourced manufacturing and discontinuation of Syntrax. The amount of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q. Excluding the items shown in the non-GAAP reconciliation table below, adjusted net loss was $16.1 million, with adjusted loss per share of $0.40, compared to adjusted net loss and adjusted loss per share of $17.5 million and $0.44, respectively, a year ago.

Adjusted EBITDA, excluding the items shown in the reconciliation table below, was negative $4.7 million, compared to negative $4.3 million for the same period a year ago.

Fiscal Year 2024 Financial Guidance

The Company now expects its fiscal year 2024 net sales to be in the range of $270 to $275 million, which reflects the recent divestiture of the PICC and Midline businesses and discontinuance of the RadioFrequency ablation and Syntrax businesses, which accounted for approximately $50 million of the prior revenue guidance of $320 to $325 million. The Company expects gross margin to be approximately 52.0% to 54.0% and adjusted loss per share in the range of $0.54 to $0.58.

For comparison, pro forma revenue, gross margin, and adjusted loss per share for FY23 when excluding the discontinued assets and the assets divested to Spectrum Vascular and Merit Medical were $257.2 million, 54.9%, and $0.55, respectively.

Conference Call

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

To participate in the conference call, dial 1-877-407-0784 (domestic) or +1-201-689-8560 (international) and refer to the passcode 13745239.

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 10:00 a.m. ET on Thursday, April 4, 2024, until 11:59 p.m. ET on Thursday, April 11, 2024. To hear this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13745239.

Use of Non-GAAP Measures

Management uses non-GAAP measures to establish operational goals and believes that non-GAAP measures may assist investors in analyzing the underlying trends in AngioDynamics' business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for or as superior to, financial reporting measures prepared in accordance with GAAP. In this news release, AngioDynamics has reported pro-forma results, adjusted EBITDA, adjusted net income and adjusted earnings per share. Management uses these measures in its internal analysis and review of operational performance. Management believes that these measures provide investors with useful information in comparing AngioDynamics' performance over different periods. By using these non-GAAP measures, management believes that investors get a better picture of the performance of AngioDynamics' underlying business. Management encourages investors to review AngioDynamics' financial results prepared in accordance with GAAP to understand AngioDynamics' performance taking into account all relevant factors, including those that may only occur from time to time but have a material impact on AngioDynamics' financial results. Please see the tables that follow for a reconciliation of non-GAAP measures to measures prepared in accordance with GAAP.

About AngioDynamics, Inc.

AngioDynamics is a leading and transformative medical technology company focused on restoring healthy blood flow in the body's vascular system, expanding cancer treatment options and improving quality of life for patients.

The Company's innovative technologies and devices are chosen by talented physicians in fast-growing healthcare markets to treat unmet patient needs. For more information, visit www.angiodynamics.com.

Safe Harbor

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics' expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as "expects," "reaffirms," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "projects, " "optimistic," or variations of such words and similar expressions, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ materially from AngioDynamics' expectations, expressed or implied. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, the ability of AngioDynamics to develop its existing and new products, technological advances and patents attained by competitors, infringement of AngioDynamics' technology or assertions that AngioDynamics' technology infringes the technology of third parties, the ability of AngioDynamics to effectively compete against competitors that have substantially greater resources, future actions by the FDA or other regulatory agencies, domestic and foreign health care reforms and government regulations, results of pending or future clinical trials, overall economic conditions (including inflation, labor shortages and supply chain challenges including the cost and availability of raw materials), the results of on-going litigation, challenges with respect to third-party distributors or joint venture partners or collaborators, the results of sales efforts, the effects of product recalls and product liability claims, changes in key personnel, the ability of AngioDynamics to execute on strategic initiatives, the effects of economic, credit and capital market conditions, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from group purchasing organizations and competition, the ability of AngioDynamics to obtain regulatory clearances or approval of its products, or to integrate acquired businesses, as well as the risk factors listed from time to time in AngioDynamics' SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended May 31, 2023. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.

In the United States, the NanoKnife System has received a 510(k) clearance by the Food and Drug Administration for use in the surgical ablation of soft tissue and is similarly approved for commercialization in Canada, the European Union and Australia. The NanoKnife System has not been cleared for the treatment or therapy of a specific disease or condition.

ANGIODYNAMICS, INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in thousands, except per share data)

 
   

Three Months Ended

 

Three Months Ended

 

 

Actual (1)

 

Pro Forma Adjustments (2)

 

Pro Forma

 

As Reported (1)

 

Pro Forma Adjustments (2)

 

Pro Forma

 

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 28, 2023

 

Feb 28, 2023

 

 

 

 

(unaudited)

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

75,182

 

 

 

(9,211

)

 

$

65,971

 

 

$

80,712

 

 

 

(19,622

)

 

$

61,090

 

Cost of sales (exclusive of intangible amortization)

 

 

39,321

 

 

 

(7,038

)

 

 

32,283

 

 

 

40,208

 

 

 

(12,096

)

 

 

28,112

 

Gross profit

 

 

35,861

 

 

 

(2,173

)

 

 

33,688

 

 

 

40,504

 

 

 

(7,526

)

 

 

32,978

 

% of net sales

 

 

47.7

%

 

 

 

 

51.1

%

 

 

50.2

%

 

 

 

 

54.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

8,189

 

 

 

(117

)

 

 

8,072

 

 

 

6,852

 

 

 

(139

)

 

 

6,713

 

Sales and marketing

 

 

25,405

 

 

 

(1,758

)

 

 

23,647

 

 

 

25,406

 

 

 

(1,404

)

 

 

24,002

 

General and administrative

 

 

10,578

 

 

 

22

 

 

 

10,600

 

 

 

8,839

 

 

 

(306

)

 

 

8,533

 

Amortization of intangibles

 

 

3,287

 

 

 

(643

)

 

 

2,644

 

 

 

4,739

 

 

 

(1,448

)

 

 

3,291

 

Goodwill impairment (3)

 

 

159,476

 

 

 

 

 

 

159,476

 

 

 

 

 

 

 

 

 

 

Change in fair value of contingent consideration

 

 

112

 

 

 

 

 

 

112

 

 

 

227

 

 

 

 

 

 

227

 

Acquisition, restructuring and other items, net

 

 

38,116

 

 

 

(6,266

)

 

 

31,850

 

 

 

3,369

 

 

 

 

 

 

3,369

 

Total operating expenses

 

 

245,163

 

 

 

(8,762

)

 

 

236,401

 

 

 

49,432

 

 

 

(3,297

)

 

 

46,135

 

Gain on sale of assets

 

 

6,657

 

 

 

(6,657

)

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(202,645

)

 

 

(68

)

 

 

(202,713

)

 

 

(8,928

)

 

 

(4,229

)

 

 

(13,157

)

Interest income (expense), net

 

 

394

 

 

 

 

 

 

394

 

 

 

(736

)

 

 

 

 

 

(736

)

Other expense, net

 

 

(238

)

 

 

 

 

 

(238

)

 

 

 

 

 

 

 

 

 

Total other income (expense), net

 

 

156

 

 

 

 

 

 

156

 

 

 

(736

)

 

 

 

 

 

(736

)

Loss before income tax expense (benefit)

 

 

(202,489

)

 

 

(68

)

 

 

(202,557

)

 

 

(9,664

)

 

 

(4,229

)

 

 

(13,893

)

Income tax benefit

 

 

(12,050

)

 

 

 

 

 

(12,050

)

 

 

(179

)

 

 

 

 

 

(179

)

Net loss

 

$

(190,439

)

 

$

(68

)

 

$

(190,507

)

 

$

(9,485

)

 

$

(4,229

)

 

$

(13,714

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(4.73

)

 

 

 

$

(4.73

)

 

$

(0.24

)

 

 

 

$

(0.35

)

Diluted

 

$

(4.73

)

 

 

 

$

(4.73

)

 

$

(0.24

)

 

 

 

$

(0.35

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

40,234

 

 

 

 

 

40,234

 

 

 

39,509

 

 

 

 

 

39,509

 

Diluted

 

 

40,234

 

 

 

 

 

40,234

 

 

 

39,509

 

 

 

 

 

39,509

 

(1) Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses, the sale of the PICCs and Midlines Businesses and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") for the three months ended February 29, 2024 and February 28, 2023.

(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.

(3) The total value of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q.

ANGIODYNAMICS, INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in thousands, except per share data)

 

 

 

Nine Months Ended

 

Nine Months Ended

 

 

Actual (1)

 

Pro Forma Adjustments (2)

 

Pro Forma

 

As Reported (1)

 

Pro Forma Adjustments (2)

 

Pro Forma

 

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 28, 2023

 

Feb 28, 2023

 

 

 

 

(unaudited)

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

232,934

 

 

 

(33,336

)

 

$

199,598

 

 

$

247,678

 

 

 

(60,260

)

 

$

187,418

 

Cost of sales (exclusive of intangible amortization)

 

 

116,751

 

 

 

(24,121

)

 

 

92,630

 

 

 

119,791

 

 

 

(35,704

)

 

 

84,087

 

Gross profit

 

 

116,183

 

 

 

(9,215

)

 

 

106,968

 

 

 

127,887

 

 

 

(24,556

)

 

 

103,331

 

% of net sales

 

 

49.9

%

 

 

 

 

53.6

%

 

 

51.6

%

 

 

 

 

55.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

24,788

 

 

 

(647

)

 

 

24,141

 

 

 

22,023

 

 

 

(391

)

 

 

21,632

 

Sales and marketing

 

 

78,237

 

 

 

(4,714

)

 

 

73,523

 

 

 

77,956

 

 

 

(4,305

)

 

 

73,651

 

General and administrative

 

 

30,723

 

 

 

(52

)

 

 

30,671

 

 

 

29,775

 

 

 

(1,241

)

 

 

28,534

 

Amortization of intangibles

 

 

10,474

 

 

 

(2,571

)

 

 

7,903

 

 

 

14,384

 

 

 

(4,343

)

 

 

10,041

 

Goodwill impairment (3)

 

 

159,476

 

 

 

 

 

 

159,476

 

 

 

 

 

 

 

 

 

 

Change in fair value of contingent consideration

 

 

203

 

 

 

 

 

 

203

 

 

 

2,084

 

 

 

 

 

 

2,084

 

Acquisition, restructuring and other items, net

 

 

47,516

 

 

 

(6,394

)

 

 

41,122

 

 

 

12,009

 

 

 

(17

)

 

 

11,992

 

Total operating expenses

 

 

351,417

 

 

 

(14,378

)

 

 

337,039

 

 

 

158,231

 

 

 

(10,297

)

 

 

147,934

 

Gain on sale of assets

 

 

54,499

 

 

 

(54,499

)

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(180,735

)

 

 

(49,336

)

 

 

(230,071

)

 

 

(30,344

)

 

 

(14,259

)

 

 

(44,603

)

Interest income (expense), net

 

 

1,047

 

 

 

 

 

 

1,047

 

 

 

(1,801

)

 

 

 

 

 

(1,801

)

Other expense, net

 

 

(558

)

 

 

 

 

 

(558

)

 

 

(427

)

 

 

 

 

 

(427

)

Total other income (expense), net

 

 

489

 

 

 

 

 

 

489

 

 

 

(2,228

)

 

 

 

 

 

(2,228

)

Loss before income tax benefit

 

 

(180,246

)

 

 

(49,336

)

 

 

(229,582

)

 

 

(32,572

)

 

 

(14,259

)

 

 

(46,831

)

Income tax benefit

 

 

(6,643

)

 

 

 

 

 

(6,643

)

 

 

(1,597

)

 

 

 

 

 

(1,597

)

Net loss

 

$

(173,603

)

 

$

(49,336

)

 

$

(222,939

)

 

$

(30,975

)

 

$

(14,259

)

 

$

(45,234

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(4.33

)

 

 

 

$

(5.56

)

 

$

(0.79

)

 

 

 

$

(1.15

)

Diluted

 

$

(4.33

)

 

 

 

$

(5.56

)

 

$

(0.79

)

 

 

 

$

(1.15

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

40,098

 

 

 

 

 

40,098

 

 

 

39,436

 

 

 

 

 

39,436

 

Diluted

 

 

40,098

 

 

 

 

 

40,098

 

 

 

39,436

 

 

 

 

 

39,436

 

(1) Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses, the sale of the PICCs and Midlines Businesses and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") for the nine months ended February 29, 2024 and February 28, 2023.

(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.

(3) The total value of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q.

ANGIODYNAMICS, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(in thousands, except per share data)

 
Reconciliation of Net Loss to non-GAAP Adjusted Net Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 29, 2024

 

Feb 28, 2023

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

Net loss

 

$

(190,439

)

 

$

(9,485

)

 

$

(173,603

)

 

$

(30,975

)

 

 

 

 

 

 

 

 

 

Amortization of intangibles

 

 

3,287

 

 

 

4,739

 

 

 

10,474

 

 

 

14,384

 

Change in fair value of contingent consideration

 

 

112

 

 

 

227

 

 

 

203

 

 

 

2,084

 

Acquisition, restructuring and other items, net (1)

 

 

38,116

 

 

 

3,369

 

 

 

47,516

 

 

 

12,009

 

Goodwill impairment (2)

 

 

159,476

 

 

 

 

 

 

159,476

 

 

 

 

Gain on sale of assets

 

 

(6,657

)

 

 

 

 

 

(54,499

)

 

 

 

Tax effect of non-GAAP items (3)

 

 

(10,174

)

 

 

127

 

 

 

(2,716

)

 

 

(655

)

Adjusted net loss

 

$

(6,279

)

 

$

(1,023

)

 

$

(13,149

)

 

$

(3,153

)

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 29, 2024

 

Feb 28, 2023

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

Diluted loss per share

 

$

(4.73

)

 

$

(0.24

)

 

$

(4.33

)

 

$

(0.79

)

 

 

 

 

 

 

 

 

 

Amortization of intangibles

 

 

0.08

 

 

 

0.12

 

 

 

0.26

 

 

 

0.36

 

Change in fair value of contingent consideration

 

 

 

 

 

0.01

 

 

 

0.01

 

 

 

0.05

 

Acquisition, restructuring and other items, net (1)

 

 

0.95

 

 

 

0.08

 

 

 

1.18

 

 

 

0.32

 

Goodwill impairment (2)

 

 

3.96

 

 

 

 

 

 

3.98

 

 

 

 

Gain on sale of assets

 

 

(0.17

)

 

 

 

 

 

(1.36

)

 

 

 

Tax effect of non-GAAP items (3)

 

 

(0.25

)

 

 

 

 

 

(0.07

)

 

 

(0.02

)

Adjusted diluted loss per share

 

$

(0.16

)

 

$

(0.03

)

 

$

(0.33

)

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

Adjusted diluted sharecount (4)

 

 

40,234

 

 

 

39,509

 

 

 

40,098

 

 

 

39,436

 

(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) The total value of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q.

(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 the periods ended February 29, 2024 and February 28, 2023.

(4) 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 29, 2024

 

Feb 28, 2023

 

Feb 29, 2024

 

Feb 28, 2023

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

Net loss

 

$

(190,439

)

 

$

(9,485

)

 

$

(173,603

)

 

$

(30,975

)

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

(12,050

)

 

 

(179

)

 

 

(6,643

)

 

 

(1,597

)

Interest expense, net

 

 

(394

)

 

 

736

 

 

 

(1,047

)

 

 

1,801

 

Depreciation and amortization

 

 

7,522

 

 

 

7,787

 

 

 

20,895

 

 

 

23,175

 

Goodwill impairment (1)

 

 

159,476

 

 

 

 

 

 

159,476

 

 

 

 

Change in fair value of contingent consideration

 

 

112

 

 

 

227

 

 

 

203

 

 

 

2,084

 

Stock based compensation

 

 

2,612

 

 

 

1,803

 

 

 

8,633

 

 

 

8,177

 

Acquisition, restructuring and other items, net (2)

 

 

36,981

 

 

 

3,369

 

 

 

46,380

 

 

 

12,009

 

Gain on sale of assets

 

 

(6,657

)

 

 

 

 

 

(54,499

)

 

 

 

Adjusted EBITDA

 

$

(2,837

)

 

$

4,258

 

 

$

(205

)

 

$

14,674

 

 

 

 

 

 

 

 

 

 

Per diluted share:

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

(0.07

)

 

$

0.11

 

 

$

(0.01

)

 

$

0.37

 

(1) The total value of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q.

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

ANGIODYNAMICS, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(in thousands, except per share data)

 
Reconciliation of Pro Forma Net Loss to Pro Forma Adjusted Net Loss:

 

 

 

 

 

 

 

Pro Forma

 

Pro Forma

 

 

Three Months Ended

 

Nine Months Ended

 

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 29, 2024

 

Feb 28, 2023

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

Pro forma net loss

 

$

(190,507

)

 

$

(13,714

)

 

$

(222,939

)

 

$

(45,234

)

 

 

 

 

 

 

 

 

 

Amortization of intangibles

 

 

2,644

 

 

 

3,291

 

 

 

7,903

 

 

 

10,041

 

Change in fair value of contingent consideration

 

 

112

 

 

 

227

 

 

 

203

 

 

 

2,084

 

Acquisition, restructuring and other items, net (1)

 

 

31,850

 

 

 

3,369

 

 

 

41,122

 

 

 

11,992

 

Goodwill impairment (2)

 

 

159,476

 

 

 

 

 

 

159,476

 

 

 

 

Tax effect of non-GAAP items (3)

 

 

(10,101

)

 

 

1,432

 

 

 

(1,841

)

 

 

3,627

 

Adjusted pro forma net loss

 

$

(6,526

)

 

$

(5,395

)

 

$

(16,076

)

 

$

(17,490

)

 

 

 

 

 

 

 

 

 

Reconciliation of Pro Forma Diluted Loss Per Share to Pro Forma Adjusted Diluted Loss Per Share:

 

 

 

Pro Forma

 

Pro Forma

 

 

Three Months Ended

 

Nine Months Ended

 

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 29, 2024

 

Feb 28, 2023

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

Pro forma diluted loss per share

 

$

(4.73

)

 

$

(0.35

)

 

$

(5.56

)

 

$

(1.15

)

 

 

 

 

 

 

 

 

 

Amortization of intangibles

 

 

0.07

 

 

 

0.08

 

 

 

0.20

 

 

 

0.25

 

Change in fair value of contingent consideration

 

 

 

 

 

0.01

 

 

 

0.01

 

 

 

0.05

 

Acquisition, restructuring and other items, net (1)

 

 

0.79

 

 

 

0.08

 

 

 

1.02

 

 

 

0.32

 

Goodwill impairment (2)

 

 

3.96

 

 

 

 

 

 

3.98

 

 

 

 

Gain on sale of assets

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect of non-GAAP items (3)

 

 

(0.25

)

 

 

0.04

 

 

 

(0.05

)

 

 

0.09

 

Adjusted pro forma diluted loss per share

 

$

(0.16

)

 

$

(0.14

)

 

$

(0.40

)

 

$

(0.44

)

 

 

 

 

 

 

 

 

 

Adjusted diluted sharecount (4)

 

 

40,234

 

 

 

39,509

 

 

 

40,098

 

 

 

39,436

 

(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) The total value of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q.

(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 the periods ended February 29, 2024 and February 28, 2023.

(4) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.

ANGIODYNAMICS, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION (Continued)

(in thousands, except per share data)

 
Reconciliation of Pro Forma Net Loss to Pro Forma Adjusted EBITDA:
 

 

 

Pro Forma

 

Pro Forma

 

 

Three Months Ended

 

Nine Months Ended

 

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 29, 2024

 

Feb 28, 2023

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

Pro forma net loss

 

$

(190,507

)

 

$

(13,714

)

 

$

(222,939

)

 

$

(45,234

)

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

(12,050

)

 

 

(179

)

 

 

(6,643

)

 

 

(1,597

)

Interest expense, net

 

 

(394

)

 

 

736

 

 

 

(1,047

)

 

 

1,801

 

Depreciation and amortization

 

 

6,861

 

 

 

6,288

 

 

 

18,234

 

 

 

18,680

 

Goodwill impairment (1)

 

 

159,476

 

 

 

 

 

 

159,476

 

 

 

 

Change in fair value of contingent consideration

 

 

112

 

 

 

227

 

 

 

203

 

 

 

2,084

 

Stock based compensation

 

 

2,141

 

 

 

1,728

 

 

 

8,000

 

 

 

7,924

 

Acquisition, restructuring and other items, net (2)

 

 

30,714

 

 

 

3,369

 

 

 

39,986

 

 

 

11,992

 

Pro forma adjusted EBITDA

 

$

(3,647

)

 

$

(1,545

)

 

$

(4,730

)

 

$

(4,350

)

 

 

 

 

 

 

 

 

 

Per diluted share:

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

(0.09

)

 

$

(0.04

)

 

$

(0.12

)

 

$

(0.11

)

(1) The total value of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q.

(2) 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

ACQUISITION, RESTRUCTURING, AND OTHER ITEMS, NET DETAIL

(in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

(in thousands)

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 29, 2024

 

Feb 28, 2023

Legal (1)

 

$

26,063

 

 

$

2,614

 

$

33,202

 

 

$

6,899

Mergers and acquisitions (2)

 

 

147

 

 

 

 

 

399

 

 

 

Plant closure (3)

 

 

5,426

 

 

 

 

 

6,115

 

 

 

Intangible and other asset impairment (4)

 

 

6,260

 

 

 

 

 

6,260

 

 

 

Transition service agreement (5)

 

 

(333

)

 

 

 

 

(655

)

 

 

Manufacturing relocation (6)

 

 

 

 

 

324

 

 

587

 

 

 

1,062

Israeli Innovation Authority prepayment (7)

 

 

 

 

 

 

 

 

 

 

3,544

Other (8)

 

 

553

 

 

 

431

 

 

1,608

 

 

 

504

Total

 

$

38,116

 

 

$

3,369

 

$

47,516

 

 

$

12,009

(1) Legal expenses related to litigation that is outside the normal course of business. For the three and nine months ended February 29, 2024, a $22.0 million settlement expense was recorded as a result of the Settlement Agreement that was entered into between the Company and BD.

(2) Mergers and acquisitions expense related to legal and due diligence.

(3) Included in the $6.1 million in plant closure for the nine months ended February 29, 2024 is $0.7 million that was previously included in manufacturing relocation.

(4) An impairment of $3.4 million on intangible assets and an inventory write-off of $2.9 million was taken in the third quarter of fiscal year 2024 relating to the abandonment of the Syntrax and RF product lines.

(5) Transition services agreements that were entered into with Merit and Spectrum.

(6) Expenses to relocate certain manufacturing lines out of Queensbury, NY.

(7) In the first quarter of fiscal year 2023, a $3.5 million payment was made to the Israeli Innovation Authority to fully satisfy the obligation related to grant funds that were provided to Eximo for development of the Auryon laser prior to the acquisition in the second quarter of fiscal year 2020.

(8) Included in the $1.6 million in other for the nine months ended February 29, 2024 is $0.9 million of deferred financing fees that were written-off in conjunction with the sale of the Dialysis and BioSentry businesses and concurrent extinguishment of the debt.

ANGIODYNAMICS, INC. AND SUBSIDIARIES

NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY

(in thousands)

                 
   

Three Months Ended

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual (1)

 

Pro Forma Adj. (2)

 

Pro Forma

 

As Reported (1)

 

Pro Forma Adj. (2)

 

Pro Forma

 

Actual

 

Pro Forma

 

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 28, 2023

 

Feb 28, 2023

 

% Growth

 

Currency Impact

 

Constant Currency Growth

 

% Growth

 

Currency Impact

 

Constant Currency Growth

 

 

 

 

(unaudited)

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Med Tech

 

$

25,844

 

$

(190

)

 

$

25,654

 

$

22,874

 

$

(91

)

 

$

22,783

 

13.0%

 

 

 

 

 

12.6%

 

 

 

 

Med Device

 

 

49,338

 

 

(9,021

)

 

 

40,317

 

 

57,838

 

 

(19,531

)

 

 

38,307

 

(14.7)%

 

 

 

 

 

5.2%

 

 

 

 

 

 

$

75,182

 

$

(9,211

)

 

$

65,971

 

$

80,712

 

$

(19,622

)

 

$

61,090

 

(6.9)%

 

0.0%

 

(6.9)%

 

8.0%

 

0.0%

 

8.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

62,342

 

$

(6,521

)

 

$

55,821

 

$

67,620

 

$

(14,932

)

 

$

52,688

 

(7.8)%

 

 

 

 

 

5.9%

 

 

 

 

International

 

 

12,840

 

 

(2,690

)

 

 

10,150

 

 

13,092

 

 

(4,690

)

 

 

8,402

 

(1.9)%

 

0.0%

 

(1.9)%

 

20.8%

 

 

 

 

 

 

$

75,182

 

$

(9,211

)

 

$

65,971

 

$

80,712

 

$

(19,622

)

 

$

61,090

 

(6.9)%

 

0.0%

 

(6.9)%

 

8.0%

 

0.0%

 

8.0%

(1) Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses, the sale of the PICCs and Midlines Businesses and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") for the three months ended February 29, 2024 and February 28, 2023.

(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.

GROSS PROFIT BY PRODUCT CATEGORY

(in thousands)

         

 

 

Three Months Ended

 

Three Months Ended

 

 

 

 

 

 

Actual (1)

 

Pro Forma Adj. (2)

 

Pro Forma

 

As Reported (1)

 

Pro Forma Adj. (2)

 

Pro Forma

 

Actual

 

Pro Forma

 

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 28, 2023

 

Feb 28, 2023

 

% Change

 

% Change

 

 

(unaudited)

 

(unaudited)

 

 

 

 

Med Tech

 

$

15,857

 

 

$

(83

)

 

$

15,774

 

 

$

14,774

 

 

$

(93

)

 

$

14,681

 

 

7.3

%

 

7.4

%

Gross profit % of sales

 

 

61.4

%

 

 

 

 

61.5

%

 

 

64.6

%

 

 

 

 

64.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Med Device

 

$

20,004

 

 

$

(2,090

)

 

$

17,914

 

 

$

25,730

 

 

$

(7,433

)

 

$

18,297

 

 

(22.3

)%

 

(2.1

)%

Gross profit % of sales

 

 

40.5

%

 

 

 

 

44.4

%

 

 

44.5

%

 

 

 

 

47.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

35,861

 

 

$

(2,173

)

 

$

33,688

 

 

$

40,504

 

 

$

(7,526

)

 

$

32,978

 

 

(11.5

)%

 

2.2

%

Gross profit % of sales

 

 

47.7

%

 

 

 

 

51.1

%

 

 

50.2

%

 

 

 

 

54.0

%

 

 

 

 

(1) Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses, the sale of the PICCs and Midlines Businesses and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") for the three months ended February 29, 2024 and February 28, 2023.

(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.

ANGIODYNAMICS, INC. AND SUBSIDIARIES

NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY

(in thousands)

                 
   

Nine Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual (1)

 

Pro Forma Adj. (2)

 

Pro Forma

 

As Reported (1)

 

Pro Forma Adj. (2)

 

Pro Forma

 

Actual

 

Pro Forma

 

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 28, 2023

 

Feb 28, 2023

 

% Growth

 

Currency Impact

 

Constant Currency Growth

 

% Growth

 

Currency Impact

 

Constant Currency Growth

 

 

 

 

(unaudited)

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Med Tech

 

$

77,068

 

$

(443

)

 

$

76,625

 

$

70,193

 

$

(302

)

 

$

69,891

 

9.8%

 

 

 

 

 

9.6%

 

 

 

 

Med Device

 

 

155,866

 

 

(32,893

)

 

 

122,973

 

 

177,485

 

 

(59,958

)

 

 

117,527

 

(12.2)%

 

 

 

 

 

4.6%

 

 

 

 

 

 

$

232,934

 

$

(33,336

)

 

$

199,598

 

$

247,678

 

$

(60,260

)

 

$

187,418

 

(6.0)%

 

0.0%

 

(6.0)%

 

6.5%

 

0.0%

 

6.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

190,743

 

$

(23,098

)

 

$

167,645

 

$

208,274

 

$

(46,496

)

 

$

161,778

 

(8.4)%

 

 

 

 

 

3.6%

 

 

 

 

International

 

 

42,191

 

 

(10,238

)

 

 

31,953

 

 

39,404

 

 

(13,764

)

 

 

25,640

 

7.1%

 

(0.2)%

 

6.9%

 

24.6%

 

 

 

 

 

 

$

232,934

 

$

(33,336

)

 

$

199,598

 

$

247,678

 

$

(60,260

)

 

$

187,418

 

(6.0)%

 

0.0%

 

(6.0)%

 

6.5%

 

0.0%

 

6.5%

(1) Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses, the sale of the PICCs and Midlines Businesses and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") for the nine months ended February 29, 2024 and February 28, 2023.

(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.

GROSS PROFIT BY PRODUCT CATEGORY

(in thousands)

         

 

 

Nine Months Ended

 

Nine Months Ended

 

 

 

 

 

 

Actual (1)

 

Pro Forma Adj. (2)

 

Pro Forma

 

As Reported (1)

 

Pro Forma Adj. (2)

 

Pro Forma

 

Actual

 

Pro Forma

 

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 28, 2023

 

Feb 28, 2023

 

% Change

 

% Change

 

 

(unaudited)

 

(unaudited)

 

 

 

 

Med Tech

 

$

48,400

 

 

$

(155

)

 

$

48,245

 

 

$

44,816

 

 

$

(163

)

 

$

44,653

 

 

8.0

%

 

8.2

%

Gross profit % of sales

 

 

62.8

%

 

 

 

 

63.0

%

 

 

63.8

%

 

 

 

 

63.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Med Device

 

$

67,783

 

 

$

(9,060

)

 

$

58,723

 

 

$

83,071

 

 

$

(24,393

)

 

$

58,678

 

 

(18.4

)%

 

%

Gross profit % of sales

 

 

43.5

%

 

 

 

 

47.7

%

 

 

46.8

%

 

 

 

 

49.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

116,183

 

 

$

(9,215

)

 

$

106,968

 

 

$

127,887

 

 

$

(24,556

)

 

$

103,331

 

 

(9.2

)%

 

3.5

%

Gross profit % of sales

 

 

49.9

%

 

 

 

 

53.6

%

 

 

51.6

%

 

 

 

 

55.1

%

 

 

 

 

(1) Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses, the sale of the PICCs and Midlines Businesses and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") for the nine months ended February 29, 2024 and February 28, 2023.

(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.

ANGIODYNAMICS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

   
   

Feb 29, 2024

 

May 31, 2023

 

 

(unaudited)

 

(audited)

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

78,451

 

$

44,620

Accounts receivable, net

 

 

49,475

 

 

52,826

Inventories

 

 

58,068

 

 

55,325

Prepaid expenses and other

 

 

10,913

 

 

4,617

Current assets held for sale

 

 

 

 

6,154

Total current assets

 

 

196,907

 

 

163,542

Property, plant and equipment, net

 

 

37,040

 

 

44,384

Other assets

 

 

8,045

 

 

10,676

Intangible assets, net

 

 

81,570

 

 

111,144

Goodwill

 

 

 

 

159,238

Non-current assets held for sale

 

 

 

 

43,653

Total assets

 

$

323,562

 

$

532,637

Liabilities and stockholders' equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

35,152

 

$

40,445

Accrued liabilities

 

 

30,963

 

 

26,617

Current portion of contingent consideration

 

 

9,500

 

 

14,761

Other current liabilities

 

 

10,259

 

 

2,002

Total current liabilities

 

 

85,874

 

 

83,825

Long-term debt

 

 

 

 

49,818

Deferred income taxes

 

 

5,871

 

 

12,813

Contingent consideration

 

 

 

 

4,535

Other long-term liabilities

 

 

15,822

 

 

3,350

Total liabilities

 

 

107,567

 

 

154,341

Stockholders' equity

 

 

215,995

 

 

378,296

Total Liabilities and Stockholders' Equity

 

$

323,562

 

$

532,637

ANGIODYNAMICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

   
   

Three Months Ended

 

Nine Months Ended

 

 

Feb 29, 2024

 

Feb 28, 2023

 

Feb 29, 2024

 

Feb 28, 2023

 

 

(unaudited)

 

(unaudited)

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(190,439

)

 

$

(9,485

)

 

$

(173,603

)

 

$

(30,975

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,522

 

 

 

7,838

 

 

 

20,895

 

 

 

23,316

 

Non-cash lease expense

 

 

484

 

 

 

635

 

 

 

1,441

 

 

 

1,883

 

Stock based compensation

 

 

2,612

 

 

 

1,803

 

 

 

8,633

 

 

 

8,177

 

Gain on disposal of assets

 

 

(6,657

)

 

 

 

 

 

(54,499

)

 

 

 

Transaction costs for disposition

 

 

(2,657

)

 

 

 

 

 

(5,084

)

 

 

 

Change in fair value of contingent consideration

 

 

112

 

 

 

227

 

 

 

203

 

 

 

2,084

 

Impairment loss on indefinite-lived intangible assets (1)

 

 

159,476

 

 

 

 

 

 

159,476

 

 

 

 

Deferred income taxes

 

 

(12,140

)

 

 

(227

)

 

 

(7,189

)

 

 

(1,752

)

Change in accounts receivable allowances

 

 

458

 

 

 

168

 

 

 

1,007

 

 

 

560

 

Fixed and intangible asset impairments and disposals

 

 

6,845

 

 

 

57

 

 

 

7,084

 

 

 

144

 

Write-off of other assets

 

 

 

 

 

 

 

 

869

 

 

 

 

Other

 

 

299

 

 

 

(274

)

 

 

161

 

 

 

(317

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,668

 

 

 

1,778

 

 

 

2,345

 

 

 

759

 

Inventories

 

 

2,019

 

 

 

(423

)

 

 

(6,825

)

 

 

(12,254

)

Prepaid expenses and other

 

 

(2,587

)

 

 

3,539

 

 

 

(7,566

)

 

 

(392

)

Accounts payable, accrued and other liabilities

 

 

20,459

 

 

 

(4,266

)

 

 

19,493

 

 

 

(7,109

)

Net cash provided by (used in) operating activities

 

 

(12,526

)

 

 

1,370

 

 

 

(33,159

)

 

 

(15,876

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(607

)

 

 

(666

)

 

 

(1,952

)

 

 

(2,756

)

Additions to placement and evaluation units

 

 

(1,239

)

 

 

(1,480

)

 

 

(3,245

)

 

 

(4,922

)

Cash paid in acquisition

 

 

(3,250

)

 

 

 

 

 

(3,250

)

 

 

(540

)

Proceeds from sale of assets

 

 

34,500

 

 

 

 

 

 

134,500

 

 

 

 

Net cash provided by (used in) investing activities

 

 

29,404

 

 

 

(2,146

)

 

 

126,053

 

 

 

(8,218

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

 

 

 

 

 

 

(50,000

)

 

 

(45,000

)

Proceeds from borrowings on long-term debt

 

 

 

 

 

 

 

 

 

 

 

70,000

 

Deferred financing costs on long-term debt

 

 

 

 

 

 

 

 

 

 

 

(751

)

Payment of acquisition related contingent consideration

 

 

 

 

 

 

 

 

(10,000

)

 

 

 

Proceeds from exercise of stock options and employee stock purchase plan

 

 

694

 

 

 

941

 

 

 

752

 

 

 

1,171

 

Net cash provided by (used in) financing activities

 

 

694

 

 

 

941

 

 

 

(59,248

)

 

 

25,420

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(17

)

 

 

89

 

 

 

185

 

 

 

(40

)

Increase in cash and cash equivalents

 

 

17,555

 

 

 

254

 

 

 

33,831

 

 

 

1,286

 

Cash and cash equivalents at beginning of period

 

 

60,896

 

 

 

29,857

 

 

 

44,620

 

 

 

28,825

 

Cash and cash equivalents at end of period

 

$

78,451

 

 

$

30,111

 

 

$

78,451

 

 

$

30,111

 

(1) The total value of the goodwill impairment is preliminary, is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the Company's quarterly report on Form 10-Q.

 

Image for Press Release 1872205