8-K

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):  January 5, 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 January 5, 2023, AngioDynamics, Inc. (“AngioDynamics”) issued a press release announcing financial results for the fiscal second quarter ended November 30, 2022. 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 second quarter ended November 30, 2022 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
99.1	Press Release, dated January 5, 2023.
99.2	Presentation, dated January 5, 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:  January 5, 2023	By:	/s/  Richard C. Rosenzweig
		Name:  Richard C. Rosenzweig
		Title:     Senior Vice President, General
		Counsel and Secretary

EX-99.1

Exhibit 99.1

PRESS RELEASE

Investor Contact:

AngioDynamics, Inc.

Stephen Trowbridge, Executive Vice President & CFO

(518) 795-1408

AngioDynamics Reports Fiscal 2023 Second Quarter Financial

Results; Reaffirms Guidance

Fiscal Year 2023 Second Quarter Highlights

● Net sales of $85.4 million increased 9.1% compared to the prior-year quarter

                 ○ Med Tech net sales of $24.5 million increased 29.7%

                 ○ Med Device net sales of $60.9 million increased 2.6%

● Gross margin of 52.8% increased 100 basis points year over year

● GAAP loss per share of $0.21 and adjusted earnings per share of $0.01

Latham, New York, January 5, 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 second quarter of fiscal year 2023, which ended November 30, 2022.

“We drove strong performance during the second quarter, and we believe our results through the first half of the year position us well to achieve our full-year targets,” commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “I am pleased with the way the team has managed through the current macro environment as we continue to execute on our strategy of pursuing attractive markets where our med tech platforms possess a differentiated technology advantage. In addition, I am thrilled that we have surpassed the mid-point of our enrollment target on our Preserve study during the quarter, as we continue to progress toward our goal of offering treatment options aimed at improving quality of life for prostate cancer patients.”

Second Quarter 2023 Financial Results

Net sales for the second quarter of fiscal 2023 were $85.4 million, an increase of 9.1% compared to the prior-year quarter. Foreign currency translation did not have a significant impact on the Company's net sales in the quarter.

Med Tech net sales were $24.5 million, a 29.7% increase from the prior-year period. Med Tech includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform. Growth was driven by Auryon sales during the quarter of $10.1 million, which increased 60.6%, and NanoKnife sales of $5.5 million, which increased 49.5% compared to the second quarter of fiscal 2022. NanoKnife disposable sales were $4.2 million, which increased 45.4% compared to the second quarter of fiscal 2022.

Med Device net sales were $60.9 million, an increase of 2.6% compared to the prior-year period.

U.S. net sales in the second quarter of fiscal 2023 were $71.6 million, an increase of 9.6% from $65.4 million a year ago. International net sales were $13.8 million, an increase of 6.7% compared to a year ago.

Gross margin for the second quarter of fiscal 2023 was 52.8%, an increase of 100 basis points compared to the second quarter of fiscal 2022. Gross margin for the Med Tech business was 63.7%, a decline of 290 basis points from the second quarter of fiscal 2022.  Gross margin for the Med Device business was 48.4%, an increase of 130 basis points compared to the second quarter of fiscal 2022.  Gross margin was negatively impacted by macro forces including labor shortages and increased costs for labor, raw materials and freight.

The Company recorded a net loss of $8.5 million, or a loss per share of $0.21, in the second quarter of fiscal 2023. This compares to a net loss of $8.4 million, or a loss per share of $0.21, a year ago.

Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income for the second quarter of fiscal 2023 was $0.4 million, and adjusted earnings per share was $0.01, compared to adjusted net loss of $0.9 million and adjusted loss per share of $0.02 in the prior-year period.

Adjusted EBITDA in the second quarter of fiscal 2023, excluding the items shown in the reconciliation table below, was $7.5 million, compared to adjusted EBITDA of $4.4 million in the second quarter of fiscal 2022.

In the second quarter of fiscal 2023, the Company generated $7.5 million in operating cash, had capital expenditures of $1.3 million and had additions to Auryon placement and evaluation units of $1.2 million.

On November 30, 2022, the Company had $29.9 million in cash and cash equivalents, compared to $28.8 million in cash and cash equivalents on May 31, 2022. The Company had $25.0 million outstanding on the delayed-draw term loan and $25.0 million outstanding under its revolving credit facility at November 30, 2022.

Six Months Financial Results

For the six months ended November 30, 2022:

Net sales were $167.0 million, an increase of 7.5%, compared to $155.3 million for the same period a year ago.

Med Tech net sales were $47.3 million, a 29.7% increase from the prior year period. Med Device net sales were $119.6 million, an increase of 0.7% from the prior year period.

Gross margin increased 30 basis points to 52.3% from 52.0% a year ago.

The Company’s net loss was $21.5 million, or a loss of $0.55 per share, compared to a net loss of $15.3 million, or a loss of $0.39 per share, a year ago.

Excluding the items shown in the non-GAAP reconciliation table, below, adjusted net loss was $2.1 million, with adjusted loss per share of $0.05, compared to adjusted net loss and adjusted loss per share of $1.7 million, and $0.04, respectively, a year ago.

Adjusted EBITDA, excluding the items shown in the reconciliation table below, was $10.4 million, compared to $8.0 million for the same period a year ago.

Fiscal Year 2023 Financial Guidance

Management is reaffirming its previously issued fiscal year 2023 guidance.  Management expects net sales to be in the range of $342 to $348 million, gross margin to be approximately 52.5% to 54.5% and adjusted earnings per share in the range of $0.01 to $0.06 as it continues to invest in new product launches to drive future growth.

Conference Call

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

To participate in the conference call, dial 1-877-407-0784 (domestic) or +1-201-689-8560 (international) and refer to the passcode 13734978.

This conference call will also be webcast and can be accessed from the “Investors” section of the AngioDynamics website at www.angiodynamics.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

A recording of the call will also be available from 11:00 a.m. ET on Thursday, January 5, 2023, until 11:59 p.m. ET on Thursday, January 12, 2023. To listen to this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13734978.

Use of Non-GAAP Measures

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

About AngioDynamics, Inc.

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

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

Safe Harbor

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics' expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as "expects," "reaffirms," "intends," "anticipates," "plans," "believes," "seeks," "estimates," “projects”, "optimistic," or variations of such words and similar expressions, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ materially from AngioDynamics' expectations, expressed or implied. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, the ability of AngioDynamics to develop its existing and new products, technological advances and patents attained by competitors, infringement of AngioDynamics' technology or assertions that AngioDynamics' technology infringes the technology of third parties, the ability of AngioDynamics to effectively compete against competitors that have substantially greater resources, future actions by the FDA or other regulatory agencies, domestic and foreign health care reforms and government regulations, results of pending or future clinical trials, overall economic conditions (including inflation, labor shortages and supply chain challenges including the cost and availability of raw materials), the results of on-going litigation, challenges with respect to third-party distributors or joint venture partners or collaborators, the results of sales efforts, the effects of product recalls and product liability claims, changes in key personnel, the ability of AngioDynamics to execute on strategic initiatives, the effects of economic, credit and capital market conditions, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from group purchasing organizations and competition, the ability of AngioDynamics to obtain regulatory clearances or approval of its products, or to integrate acquired businesses, as well as the risk factors listed from time to time in AngioDynamics' SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended May 31, 2022. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.

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

ANGIODYNAMICS, INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in thousands, except per share data)

	Three Months Ended						Six Months Ended
	Nov 30, 2022			Nov 30, 2021			Nov 30, 2022			Nov 30, 2021
	(unaudited)						(unaudited)
Net sales	$	85,429		$	78,280		$	166,966		$	155,251
Cost of sales (exclusive of intangible amortization)		40,351			37,725			79,583			74,557
Gross profit		45,078			40,555			87,383			80,694
% of net sales		52.8	%		51.8	%		52.3	%		52.0	%
Operating expenses
Research and development		6,838			8,199			15,171			15,593
Sales and marketing		26,007			23,606			52,550			48,052
General and administrative		10,835			9,678			20,936			18,621
Amortization of intangibles		4,808			4,889			9,645			9,710
Change in fair value of contingent consideration		1,646			609			1,857			804
Acquisition, restructuring and other items, net		3,059			2,253			8,640			4,693
Total operating expenses		53,193			49,234			108,799			97,473
Operating loss		(8,115	)		(8,679	)		(21,416	)		(16,779	)
Interest expense, net		(684	)		(174	)		(1,065	)		(330	)
Other expense, net		(252	)		(10	)		(427	)		(362	)
Total other expense, net		(936	)		(184	)		(1,492	)		(692	)
Loss before income tax benefit		(9,051	)		(8,863	)		(22,908	)		(17,471	)
Income tax benefit		(565	)		(512	)		(1,418	)		(2,148	)
Net loss	$	(8,486	)	$	(8,351	)	$	(21,490	)	$	(15,323	)
Loss per share
Basic	$	(0.21	)	$	(0.21	)	$	(0.55	)	$	(0.39	)
Diluted	$	(0.21	)	$	(0.21	)	$	(0.55	)	$	(0.39	)
Weighted average shares outstanding
Basic		39,490			39,053			39,394			38,893
Diluted		39,490			39,053			39,394			38,893

ANGIODYNAMICS, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(in thousands, except per share data)

Reconciliation of Net Loss to non-GAAP Adjusted Net Income (Loss):
	Three Months Ended						Six Months Ended
	Nov 30, 2022			Nov 30, 2021			Nov 30, 2022			Nov 30, 2021
	(unaudited)						(unaudited)
Net loss	$	(8,486	)	$	(8,351	)	$	(21,490	)	$	(15,323	)
Amortization of intangibles		4,808			4,889			9,645			9,710
Change in fair value of contingent consideration		1,646			609			1,857			804
Acquisition, restructuring and other items, net (1)		3,059			2,253			8,640			4,693
Tax effect of non-GAAP items (2)		(671	)		(256	)		(782	)		(1,627	)
Adjusted net income (loss)	$	356		$	(856	)	$	(2,130	)	$	(1,743	)
Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings (Loss) Per Share:
	Three Months Ended						Six Months Ended
	Nov 30, 2022			Nov 30, 2021			Nov 30, 2022			Nov 30, 2021
	(unaudited)						(unaudited)
Diluted loss per share	$	(0.21	)	$	(0.21	)	$	(0.55	)	$	(0.39	)
Amortization of intangibles		0.12			0.13			0.24			0.25
Change in fair value of contingent consideration		0.04			0.02			0.05			0.02
Acquisition, restructuring and other items, net (1)		0.08			0.05			0.23			0.12
Tax effect of non-GAAP items (2)		(0.02	)		(0.01	)		(0.02	)		(0.04	)
Adjusted diluted earnings (loss) per share	$	0.01		$	(0.02	)	$	(0.05	)	$	(0.04	)
Adjusted diluted sharecount (3)		40,059			39,053			39,394			38,893

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

(2) Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company's U.S. deferred tax assets and an effective tax rate of 23% for the periods ended November 30, 2022 and 2021.

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

ANGIODYNAMICS, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION (Continued)

(in thousands, except per share data)

Reconciliation of Net Loss to Adjusted EBITDA:
	Three Months Ended						Six Months Ended
	Nov 30, 2022			Nov 30, 2021			Nov 30, 2022			Nov 30, 2021
	(unaudited)						(unaudited)
Net loss	$	(8,486	)	$	(8,351	)	$	(21,490	)	$	(15,323	)
Income tax benefit		(565	)		(512	)		(1,418	)		(2,148	)
Interest expense, net		684			174			1,065			330
Depreciation and amortization		7,767			7,240			15,388			14,199
Change in fair value of contingent consideration		1,646			609			1,857			804
Stock based compensation		3,350			3,008			6,374			5,437
Acquisition, restructuring and other items, net (1)		3,059			2,253			8,640			4,693
Adjusted EBITDA	$	7,455		$	4,421		$	10,416		$	7,992
Per diluted share:
Adjusted EBITDA	$	0.19		$	0.11		$	0.26		$	0.21

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

ANGIODYNAMICS, INC. AND SUBSIDIARIES

NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY

(in thousands)

	Three Months Ended													Six Months Ended
	Nov 30, 2022		Nov 30, 2021		% Growth			Currency Impact			Constant Currency Growth			Nov 30, 2022		Nov 30, 2021		% Growth			Currency Impact			Constant Currency Growth
	(unaudited)													(unaudited)
Net Sales
Med Tech	$	24,502	$	18,886		29.7	%							$	47,318	$	36,493		29.7	%
Med Device		60,927		59,394		2.6	%								119,648		118,758		0.7	%
	$	85,429	$	78,280		9.1	%		0.6	%		9.7	%	$	166,966	$	155,251		7.5	%		0.6	%		8.1	%
Net Sales by Geography
United States	$	71,631	$	65,350		9.6	%							$	140,655	$	129,814		8.4	%
International		13,798		12,930		6.7	%		3.5	%		10.2	%		26,311		25,437		3.4	%		3.6	%		7.0	%
	$	85,429	$	78,280		9.1	%		0.6	%		9.7	%	$	166,966	$	155,251		7.5	%		0.6	%		8.1	%

GROSS PROFIT BY PRODUCT CATEGORY

(in thousands)

	Three Months Ended									Six Months Ended
	Nov 30, 2022			Nov 30, 2021			% Change			Nov 30, 2022			Nov 30, 2021			% Change
	(unaudited)									(unaudited)
Med Tech	$	15,614		$	12,578			24.1	%	$	30,043		$	24,095			24.7	%
Gross profit % of sales		63.7	%		66.6	%					63.5	%		66.0	%
Med Device	$	29,464		$	27,977			5.3	%	$	57,340		$	56,599			1.3	%
Gross profit % of sales		48.4	%		47.1	%					47.9	%		47.7	%
Total	$	45,078		$	40,555			11.2	%	$	87,383		$	80,694			8.3	%
Gross profit % of sales		52.8	%		51.8	%					52.3	%		52.0	%

ANGIODYNAMICS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

	Nov 30, 2022		May 31, 2022
	(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	29,857	$	28,825
Accounts receivable, net		52,852		52,304
Inventories		63,177		51,392
Prepaid expenses and other		12,944		10,824
Total current assets		158,830		143,345
Property, plant and equipment, net		45,957		45,005
Other assets		10,722		10,963
Intangible assets, net		141,943		152,380
Goodwill		200,755		201,058
Total assets	$	558,207	$	552,751
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	34,688	$	28,047
Accrued liabilities		26,533		34,842
Current portion of contingent consideration		9,760		8,783
Other current liabilities		2,586		2,652
Total current liabilities		73,567		74,324
Long-term debt		49,796		25,000
Deferred income taxes		14,290		16,037
Contingent consideration		9,072		8,165
Other long-term liabilities		3,524		4,736
Total liabilities		150,249		128,262
Stockholders' equity		407,958		424,489
Total Liabilities and Stockholders' Equity	$	558,207	$	552,751

ANGIODYNAMICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended						Six Months Ended
	Nov 30, 2022			Nov 30, 2021			Nov 30, 2022			Nov 30, 2021
	(unaudited)						(unaudited)
Cash flows from operating activities:
Net loss	$	(8,486	)	$	(8,351	)	$	(21,490	)	$	(15,323	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		7,818			7,279			15,478			14,276
Non-cash lease expense		627			607			1,248			1,209
Stock based compensation		3,350			3,008			6,374			5,437
Change in fair value of contingent consideration		1,646			609			1,857			804
Deferred income taxes		(618	)		(569	)		(1,525	)		(2,259	)
Change in accounts receivable allowances		347			60			392			16
Fixed and intangible asset impairments and disposals		—			67			87			97
Other		53			(32	)		(43	)		(78	)
Changes in operating assets and liabilities:
Accounts receivable		406			(2,886	)		(1,019	)		(2,922	)
Inventories		(5,593	)		1,148			(11,831	)		478
Prepaid expenses and other		1,802			(830	)		(3,931	)		(4,184	)
Accounts payable, accrued and other liabilities		6,147			1,831			(2,843	)		(4,514	)
Net cash provided by (used in) operating activities		7,499			1,941			(17,246	)		(6,963	)
Cash flows from investing activities:
Additions to property, plant and equipment		(1,281	)		(1,131	)		(2,090	)		(2,152	)
Additions to placement and evaluation units		(1,215	)		(2,718	)		(3,442	)		(7,189	)
Cash paid in acquisition		—			—			(540	)		(3,600	)
Net cash used in investing activities		(2,496	)		(3,849	)		(6,072	)		(12,941	)
Cash flows from financing activities:
Proceeds from borrowings on long-term debt		—			—			70,000			5,000
Repayment of long-term debt		—			—			(45,000	)		—
Deferred financing costs on long-term debt		(45	)		—			(751	)		—
Proceeds from exercise of stock options and employee stock purchase plan		148			942			230			1,388
Net cash provided by financing activities		103			942			24,479			6,388
Effect of exchange rate changes on cash and cash equivalents		187			(215	)		(129	)		(354	)
Increase (decrease)  in cash and cash equivalents		5,293			(1,181	)		1,032			(13,870	)
Cash and cash equivalents at beginning of period		24,564			35,472			28,825			48,161
Cash and cash equivalents at end of period	$	29,857		$	34,291		$	29,857		$	34,291

EX-99.2

Exhibit 99.2

 ANGIODYNAMICS  Second Quarter 2023 Earnings Presentation  January 5, 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 – Q2 and YTD FY23 Highlights  Continued focused investment in our 3 key Med Tech platforms: Auryon, Thrombus Management & NanoKnife  Operational highlights  Gross margin improvements partially offset by continued headwinds in the supply chain, labor shortages, freight and inflation  Backlog reduced by $2.1 million to $5.0 million at quarter end  Positive cash from operating activities of $7.5 million  Q2 revenue growth of 9.1%  Med Tech up 29.7%; Med Device up 2.6%  $10.1 million in Auryon sales   Mechanical Thrombectomy (AngioVac and AlphaVac) down 1.1%; down 0.3% when including Unifuse  $1.6 million in AlphaVac sales  45.4% YOY growth in NanoKnife disposables  IDE clinical studies and pathway expansion:   Surpassed midway point in the PRESERVE study for the use of NanoKnife in prostate   Enrolled first patients for the AlphaVac F18 APEX study to treat pulmonary embolism   Pathway expansion for Auryon in arterial thrombectomy and LMR of hydrophilic coating  3  YTD revenue growth of 7.5%  Med Tech up 29.7%; Med Device up 0.7%  $18.9 million in Auryon sales   15.7% YOY growth in Mechanical Thrombectomy; 14.5% growth when including Unifuse  $3.4 million in AlphaVac sales  28.9% YOY growth in NanoKnife disposables 

 Corporate Developments – Q2 and YTD FY23 Highlights  Continued focused investment in our 3 key Med Tech platforms: Auryon, Thrombus Management & NanoKnife  Operational highlights  Gross margin improvements partially offset by continued headwinds in the supply chain, labor shortages, freight and inflation  Backlog reduced by $2.1 million to $5.0 million at quarter end  Positive cash from operating activities of $7.5 million  Q2 revenue growth of 9.1%  Med Tech up 29.7%; Med Device up 2.6%  $10.1 million in Auryon sales   Mechanical Thrombectomy (AngioVac and AlphaVac) down 1.1%; down 0.3% when including Unifuse  $1.6 million in AlphaVac sales  45.4% YOY growth in NanoKnife disposables  IDE clinical studies and pathway expansion:   Surpassed midway point in the PRESERVE study for the use of NanoKnife in prostate   Enrolled first patients for the AlphaVac F18 APEX study to treat pulmonary embolism   Pathway expansion for Auryon in arterial thrombectomy and limited market release of hydrophilic coating  3  YTD revenue growth of 7.5%  Med Tech up 29.7%; Med Device up 0.7%  $18.9 million in Auryon sales   15.7% YOY growth in Mechanical Thrombectomy; 14.5% growth when including Unifuse  $3.4 million in AlphaVac sales  28.9% YOY growth in NanoKnife disposables 

 Q2 and YTD FY23 Results (unaudited)  $ in thousands (except per share data)  Q2 FY23  Q2 FY22  Change  YTD FY23  YTD FY22  Change  Revenue   $85,429  $78,280  9.1%  $166,966  $155,251  7.5%   Med Tech    Med Device   $24,502  $60,927  $18,886  $59,394  29.7%  2.6%  $47,318  $119,648  $36,493  $118,758  29.7%  0.7%   United States   International  $71,631  $13,798  $65,350  $12,930  9.6%  6.7%  $140,655  $26,311  $129,814  $25,437  8.4%  3.4%  Gross Margin   Med Tech    Med Device   52.8%  63.7%  48.4%  51.8%  66.6%  47.1%  100 bps  (290 bps)  130 bps  52.3%  63.5%  47.9%  52.0%  66.0%  47.7%  30 bps  (250 bps)  20 bps  Net Loss  Non-GAAP Adjusted Net Income (Loss)  ($8,486)  $356  ($8,351)  ($856)  ($135)  $1,212  ($21,490)  ($2,130)  ($15,323)  ($1,743)  ($6,167)  ($387)  GAAP EPS  Non-GAAP Adjusted EPS  ($0.21)  $0.01  ($0.21)  ($0.02)  $0.00  $0.03  ($0.55)  ($0.05)  ($0.39)  ($0.04)  ($0.16)  ($0.01)  Adjusted EBITDA  $7,455  $4,421  $3,034  $10,416  $7,992  $2,424  $ in thousands   Q2 FY23  Q4 FY22  Change  Cash  $29,857   $28,825  $1,032  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  ($20,143)   $3,825  ($23,968)  4 

 Q2 and YTD FY23 Highlights  5   Med Device   Med Tech  29.7% growth  0.7% growth  YTD Revenue Growth  YTD FY22  YTD FY23  YTD Revenue Contribution  YTD FY22  YTD FY23   Med Device   Med Tech  29.7% growth  2.6% growth  Q2 Revenue Growth  Q2 FY22  Q2 FY23  Q2 Revenue Contribution  Q2 FY22  Q2 FY23 

 Sales Comparison to Prior-Year Periods  6  Med Tech  Q2 FY23  YTD FY23  Auryon  60.6%  55.5%  Thrombus Management*   AngioVac   AlphaVac**  (0.3%)  (16.2%)  205.3%  14.5%  (4.6%)  N/A  NanoKnife® Disposables  45.4%  28.9%  NanoKnife® Capital  64.1%  1.5%  Med Device  Q2 FY23  YTD FY23  Solero® Microwave  7.0%  6.6%  BioSentry  (8.8%)  (11.2%)  Core Peripheral  11.1%  8.2%  Venous  (15.7%)  (11.9%)  Alatus and IsoLoc Balloons  (15.8%)  (13.6%)  RadioFrequency Ablation  (2.7%)  (16.8%)  Midlines  (1.5%)  (7.1%)  C3  3.3%  (10.1%)  PICCs  (9.0%)  (8.1%)  Ports  8.2%  0.0%  Dialysis  31.1%  28.3%  * Thrombus Management includes AngioVac, AlphaVac and Thrombolytics   ** AlphaVac was launched in Q2 FY22 

 FY23 Guidance  7  FY23 Guidance Reaffirmed  Q4 FY2022  Revenue  $342 - $348 million  Gross Margin  Med Tech  Med Device  52.5% - 54.5%  65% - 68%  45% - 48%  Adjusted EPS  $0.01 - $0.06 

 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 November 30, 2022 and November 30, 2021.  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) 

XML

Document and Entity Information	Jan. 05, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 05, 2023
Entity File Number	000-50761
Entity Registrant Name	ANGIODYNAMICS INC
Entity Central Index Key	0001275187
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3146460
Entity Address, Address Line One	14 Plaza Drive
Entity Address, City or Town	Latham
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	12110
City Area Code	518
Local Phone Number	795-1400
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ANGO
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false