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)
|
☐ | 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)) |
Exhibit No.
|
Description
|
|
99.1
|
Press Release dated October 5, 2016.
|
ANGIODYNAMICS, INC. | |||
(Registrant) | |||
Date: October 5, 2016
|
By:
|
/s/ Stephen A. Trowbridge | |
Stephen A. Trowbridge | |||
Senior Vice President and General Counsel | |||
Exhibit No.
|
Description
|
|
99.1
|
Press Release dated October 5, 2016.
|
Company Contact:
|
Investor Relations Contacts:
|
Media Contact:
|
AngioDynamics Inc.
Caitlin Stefanik
(518) 795-1418
cstefanik@angiodynamics.com
|
FTI Consulting
Jim Polson
(312) 553-6730
Jim.Polson@fticonsulting.com,
Kotaro Yoshida
(212) 850-5690
Kotaro.Yoshida@fticonsulting.com
|
FTI Consulting
Kimberly Ha
(212) 850-5612
kimberly.ha@fticonsulting.com
|
·
|
Q1 net sales of $88.1 million, up 5% year-over-year
|
·
|
Q1 GAAP earnings per share of $0.04; non-GAAP adjusted EPS of $0.17
|
·
|
Q1 operating cash generation of $7.4 million
|
·
|
FY2017 guidance remains unchanged
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED INCOME STATEMENTS
|
||||||||
(in thousands, except per share data)
|
||||||||
Three months ended
|
||||||||
August 31,
|
August 31,
|
|||||||
2016
|
2015
|
|||||||
(unaudited)
|
||||||||
Net sales
|
$
|
88,098
|
$
|
83,753
|
||||
Cost of sales (exclusive of intangible amortization)
|
43,066
|
40,382
|
||||||
Gross profit
|
45,032
|
43,371
|
||||||
% of net sales
|
51.1 |
%
|
51.8 |
%
|
||||
Operating expenses
|
||||||||
Research and development
|
6,709
|
6,129
|
||||||
Sales and marketing
|
19,488
|
21,200
|
||||||
General and administrative
|
8,168
|
7,914
|
||||||
Amortization of intangibles
|
4,235
|
4,415
|
||||||
Change in fair value of contingent consideration
|
443
|
355
|
||||||
Acquisition, restructuring and other items, net
|
2,417
|
2,143
|
||||||
Medical device excise tax
|
-
|
1,003
|
||||||
Total operating expenses
|
41,460
|
43,159
|
||||||
Operating income (loss)
|
3,572
|
212
|
||||||
Other income (expense), net
|
(669
|
)
|
(917
|
)
|
||||
Income (loss) before income taxes
|
2,903
|
(705
|
)
|
|||||
Income tax expense (benefit)
|
1,603
|
70
|
||||||
Net income (loss)
|
$
|
1,300
|
$
|
(775
|
)
|
|||
Earnings (loss) per share
|
||||||||
Basic
|
$
|
0.04
|
$
|
(0.02
|
)
|
|||
Diluted
|
$
|
0.04
|
$
|
(0.02
|
)
|
|||
Weighted average shares outstanding
|
||||||||
Basic
|
36,319
|
35,960
|
||||||
Diluted
|
36,698
|
35,960
|
Reconciliation of Gross Profit to non-GAAP Adjusted Gross Profit
|
||||||||
Three months ended
|
||||||||
August 31,
|
August 31,
|
|||||||
2016
|
2015
|
|||||||
(unaudited)
|
||||||||
Gross profit
|
$
|
45,032
|
$
|
43,371
|
||||
Recall expenses included in cost of sales
|
-
|
(27
|
)
|
|||||
Adjusted gross profit
|
$
|
45,032
|
$
|
43,344
|
||||
Adjusted gross profit % of sales
|
51.1 |
%
|
51.8 |
%
|
||||
Reconciliation of Net Income to non-GAAP Adjusted Net Income:
|
||||||||
Three months ended
|
||||||||
August 31,
|
August 31,
|
|||||||
2016 | 2015 | |||||||
(unaudited)
|
||||||||
Net income (loss)
|
$
|
1,300
|
$
|
(775
|
)
|
|||
Recall expenses included in cost of sales
|
-
|
(27
|
)
|
|||||
Amortization of intangibles
|
4,235
|
4,415
|
||||||
Change in fair value of contingent consideration
|
443
|
355
|
||||||
Acquisition, restructuring and other items, net (1)
|
2,417
|
2,143
|
||||||
Tax effect of non-GAAP items (2)
|
(1,996
|
)
|
(2,155
|
)
|
||||
Adjusted net income
|
$
|
6,399
|
$
|
3,956
|
||||
Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
|
||||||||
Three months ended
|
||||||||
August 31,
|
August 31,
|
|||||||
2016 | 2015 | |||||||
(unaudited)
|
||||||||
Diluted earnings (loss) per share
|
$
|
0.04
|
$
|
(0.02
|
)
|
|||
Amortization of intangibles
|
0.11
|
0.12
|
||||||
Change in fair value of contingent consideration
|
0.01
|
0.01
|
||||||
Acquisition, restructuring and other items, net (1)
|
0.06
|
0.06
|
||||||
Tax effect of non-GAAP items (2)
|
(0.05
|
)
|
(0.06
|
)
|
||||
Adjusted diluted earnings per share
|
$
|
0.17
|
$
|
0.11
|
||||
Adjusted diluted sharecount
|
36,698
|
36,537
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
||||||||
GAAP TO NON-GAAP RECONCILIATION (Continued)
|
||||||||
(in thousands, except per share data)
|
||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA:
|
||||||||
Three months ended
|
||||||||
August 31,
|
August 31,
|
|||||||
2016
|
2015
|
|||||||
(unaudited)
|
||||||||
Net income (loss)
|
$
|
1,300
|
$
|
(775
|
)
|
|||
Income tax (expense) benefit
|
1,603
|
70
|
||||||
Other (income) expense, net
|
669
|
917
|
||||||
Depreciation and amortization
|
6,042
|
6,993
|
||||||
EBITDA
|
9,614
|
7,205
|
||||||
Recall expenses included in cost of sales
|
-
|
(27
|
)
|
|||||
Change in fair value of contingent consideration
|
443
|
355
|
||||||
Acquisition, restructuring and other items, net (1,2)
|
2,417
|
1,766
|
||||||
Credit card fees
|
694
|
641
|
||||||
Stock-based compensation
|
1,684
|
1,626
|
||||||
Adjusted EBITDA
|
$
|
14,852
|
$
|
11,566
|
||||
Per diluted share:
|
||||||||
EBITDA
|
$
|
0.26
|
$
|
0.20
|
||||
Adjusted EBITDA
|
$
|
0.40
|
$
|
0.32
|
||||
(1) Includes costs related to mergers and acquisition activities, integrations, restructurings, debt refinancings, litigation, and other items.
|
||||||||
(2) Excludes depreciation expense captured in the depreciation and amortization component of the reconciliation.
|
||||||||
Three months ended
|
||||||||||||||||||||
Currency
|
Constant
|
|||||||||||||||||||
August 31,
|
August 31,
|
%
|
Impact
|
Currency
|
||||||||||||||||
2016
|
2015
|
Growth
|
(Pos) Neg
|
Growth
|
||||||||||||||||
Net Sales by Product Category
|
||||||||||||||||||||
Peripheral Vascular
|
$
|
51,409
|
$
|
47,106
|
9% |
|
||||||||||||||
Vascular Access
|
25,005
|
24,645
|
1% |
|
||||||||||||||||
Oncology/Surgery
|
11,064
|
11,334
|
-2% |
|
||||||||||||||||
Total Excluding Supply Agreement
|
87,478
|
83,085
|
5% |
|
0% |
|
5% |
|
||||||||||||
Supply Agreement
|
620
|
668
|
-7% |
|
0% |
|
-7% |
|
||||||||||||
Total
|
$
|
88,098
|
$
|
83,753
|
5% |
|
0% |
|
5% |
|
||||||||||
0
|
0
|
|||||||||||||||||||
Net Sales by Geography
|
||||||||||||||||||||
United States
|
$
|
71,753
|
$
|
68,369
|
5% |
|
0% |
|
5% |
|
||||||||||
International
|
15,725
|
14,716
|
7% |
|
1% |
|
8% |
|
||||||||||||
Supply Agreement
|
620
|
668
|
-7% |
|
0% |
|
-7% |
|
||||||||||||
Total
|
$
|
88,098
|
$
|
83,753
|
5% |
|
0% |
|
5% |
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(in thousands)
|
||||||||
August 31,
|
May 31,
|
|||||||
2016
|
2016
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
37,411
|
$
|
32,333
|
||||
Marketable securities
|
1,647
|
1,653
|
||||||
Total cash and investments
|
39,058
|
33,986
|
||||||
Accounts receivable, net
|
50,124
|
52,867
|
||||||
Inventories
|
58,274
|
55,370
|
||||||
Prepaid income taxes
|
568
|
788
|
||||||
Prepaid expenses and other
|
4,258
|
3,243
|
||||||
Total current assets
|
152,282
|
146,254
|
||||||
Property, plant and equipment, net
|
47,230
|
48,284
|
||||||
Other non-current assets
|
3,605
|
3,827
|
||||||
Intangible assets, net
|
162,342
|
166,577
|
||||||
Goodwill
|
361,252
|
361,252
|
||||||
Total Assets
|
$
|
726,711
|
$
|
726,194
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Accounts payable
|
$
|
15,648
|
$
|
15,616
|
||||
Accrued liabilities
|
19,214
|
21,896
|
||||||
Income taxes payable
|
16
|
46
|
||||||
Current portion of long-term debt
|
17,500
|
16,250
|
||||||
Current portion of contingent consideration
|
13,053
|
12,919
|
||||||
Total current liabilities
|
65,431
|
66,727
|
||||||
Long-term debt, net of current portion
|
100,652
|
104,291
|
||||||
Deferred income taxes, long-term
|
23,246
|
21,684
|
||||||
Contingent consideration, net of current portion
|
23,565
|
25,356
|
||||||
Other long-term liabilities
|
1,100
|
908
|
||||||
Total Liabilities
|
213,994
|
218,966
|
||||||
Stockholders' equity
|
512,717
|
507,228
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
726,711
|
$
|
726,194
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(in thousands)
|
||||||||
Three months ended
|
||||||||
August 31,
|
August 31,
|
|||||||
2016
|
2015
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$
|
1,300
|
$
|
(775
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
6,153
|
7,113
|
||||||
Stock-based compensation
|
1,684
|
1,626
|
||||||
Change in fair value of contingent consideration
|
443
|
355
|
||||||
Fixed and intangible asset impairments and disposals
|
45
|
220
|
||||||
Deferred income taxes
|
1,565
|
(208
|
)
|
|||||
Change in accounts receivable allowance
|
(197
|
)
|
109
|
|||||
Other
|
18
|
(13
|
)
|
|||||
Changes in operating assets and liabilities, net of acquisitions:
|
||||||||
Receivables
|
2,822
|
5,925
|
||||||
Inventories
|
(3,049
|
)
|
(6,922
|
)
|
||||
Prepaid and other assets
|
(869
|
)
|
(2,605
|
)
|
||||
Accounts payable and accrued liabilities
|
(2,475
|
)
|
(126
|
)
|
||||
Net cash provided by (used in) operating activities
|
7,440
|
4,699
|
||||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant and equipment
|
(481
|
)
|
(743
|
)
|
||||
Net cash provided by (used in) investing activities
|
(481
|
)
|
(743
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayment of long-term debt
|
(2,500
|
)
|
(1,250
|
)
|
||||
Payment of Contingent Consideration
|
(2,100
|
)
|
(2,100
|
)
|
||||
Proceeds from exercise of stock options and ESPP
|
2,803
|
1,279
|
||||||
Net cash provided by (used in) financing activities
|
(1,797
|
)
|
(2,071
|
)
|
||||
Effect of exchange rate changes on cash
|
(84
|
)
|
(8
|
)
|
||||
Increase (Decrease) in cash and cash equivalents
|
5,078
|
1,877
|
||||||
Cash and cash equivalents
|
||||||||
Beginning of period
|
32,333
|
18,391
|
||||||
End of period
|
$
|
37,411
|
$
|
20,268
|
/Z5[H>AKPKXM?\AB/Z5V8)_O#GQ/P'G1^Y20?\?"?6D!X
MQ1 ?](7ZU[350,^3R:
M]&-%)'*ZAV4?B$J,[JV]/\3G:IW_ *UY@7<*1DU=M)W15Y/6G*BK"534^B?#
MVJ?:H@2W:O.?BN
X>?+_J
M;3^(^A/AMQHQKN*X;X:'.CFNYKYNK\;/8I_
M"@KD/B#!O\-W+8_AKKZYWQK'YGANY7U6E3=IH)J\3YBQ@D>]*_05)