EX-99.1 2 ef20032494_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
 
   
Three Months Ended
    
Three Months Ended
  
   
As Reported (1)
    
Pro Forma Adjustments (2)
    
Pro Forma
    
As Reported (1)
    
Pro Forma Adjustments (2)
    
Pro Forma
  
   
Aug 31, 2023
    
Aug 31, 2023
    
Aug 31, 2023
    
Aug 31, 2022
    
Aug 31, 2022
    
Aug 31, 2022
  
         
(unaudited)
                
(unaudited)
        
                                     
Net sales
  
$
78,679
    
$
(11,935
)
  
$
66,744
    
$
81,537
    
$
(19,828
)
  
$
61,709
  
Cost of sales (exclusive of intangible amortization)
    
38,619
      
(8,482
)
    
30,137
      
39,232
      
(11,585
)
    
27,647
  
Gross profit
    
40,060
      
(3,453
)
    
36,607
      
42,305
      
(8,243
)
    
34,062
  
% of net sales
    
50.9
%
            
54.8
%
    
51.9
%
            
55.2
%
                                                 
Operating expenses
                                                
Research and development
    
7,941
      
(207
)
    
7,734
      
8,333
      
(125
)
    
8,208
  
Sales and marketing
    
27,368
      
(1,487
)
    
25,881
      
26,543
      
(1,416
)
    
25,127
  
General and administrative
    
10,856
      
(1
)
    
10,855
      
10,101
      
(101
)
    
10,000
  
Amortization of intangibles
    
3,625
      
(964
)
    
2,661
      
4,837
      
(1,448
)
    
3,389
  
Change in fair value of contingent consideration
    
(130
)
    
—
      
(130
)
    
211
      
—
      
211
  
Acquisition, restructuring and other items, net
    
3,212
      
(22
)
    
3,190
      
5,581
      
(17
)
    
5,564
  
Total operating expenses
    
52,872
      
(2,681
)
    
50,191
      
55,606
      
(3,107
)
    
52,499
  
Gain on sale of assets
    
47,842
      
(47,842
)
    
—
      
—
      
—
      
—
  
Operating income (loss)
    
35,030
      
(48,614
)
    
(13,584
)
    
(13,301
)
    
(5,136
)
    
(18,437
)
Interest expense, net
    
119
      
—
      
119
      
(381
)
    
—
      
(381
)
Other expense, net
    
(288
)
    
—
      
(288
)
    
(175
)
    
—
      
(175
)
Total other expense, net
    
(169
)
    
—
      
(169
)
    
(556
)
    
—
      
(556
)
Income (loss) before income tax benefit
    
34,861
      
(48,614
)
    
(13,753
)
    
(13,857
)
    
(5,136
)
    
(18,993
)
Income tax benefit
    
(11,023
)
    
—
      
(11,023
)
    
(853
)
            
(853
)
Net income (loss)
  
$
45,884
    
$
(48,614
)
  
$
(2,730
)
  
$
(13,004
)
  
$
(5,136
)
  
$
(18,140
)
                                                 
Income (loss) per share
                                                
Basic
  
$
1.15
            
$
(0.07
)
  
$
(0.33
)
          
$
(0.46
)
Diluted
  
$
1.15
            
$
(0.07
)
  
$
(0.33
)
          
$
(0.46
)
                                                 
Weighted average shares outstanding
                                                
Basic
    
39,842
              
39,842
      
39,302
              
39,302
  
Diluted
    
39,968
              
39,842
      
39,302
              
39,302
  
 
(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses on June 8, 2023, the sale of the PICCs and Midlines Businesses on February 15, 2024 and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") as of February 29, 2024, for the three months ended August 31, 2023 and August 31, 2022.
 
(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.
 
1
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA 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
  
   
Three Months Ended
  
   
Aug 31, 2023
    
Aug 31, 2022
  
   
(unaudited)
    
(unaudited)
  
             
Pro forma net loss
  
$
(2,730
)
  
$
(18,140
)
                 
Amortization of intangibles
    
2,661
      
3,389
  
Change in fair value of contingent consideration
    
(130
)
    
211
  
Acquisition, restructuring and other items, net (1)
    
3,190
      
5,564
  
Tax effect of non-GAAP items (2)
    
(9,176
)
    
1,408
  
Adjusted pro forma net loss
  
$
(6,185
)
  
$
(7,568
)

Reconciliation of Pro Forma Diluted Loss Per Share to Pro Forma Adjusted Diluted Loss Per Share:
  
   
Pro Forma
  
   
Three Months Ended
  
   
Aug 31, 2023
    
Aug 31, 2022
  
   
(unaudited)
    
(unaudited)
  
             
Pro forma diluted loss per share
  
$
(0.07
)
  
$
(0.46
)
                 
Amortization of intangibles
    
0.07
      
0.09
  
Change in fair value of contingent consideration
    
—
      
0.01
  
Acquisition, restructuring and other items, net (1)
    
0.08
      
0.14
  
Tax effect of non-GAAP items (2)
    
(0.24
)
    
0.03
  
Adjusted pro forma diluted loss per share
  
$
(0.16
)
  
$
(0.19
)
                 
Adjusted diluted sharecount (3)
    
39,842
      
39,302
  

(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 August 31, 2023 and August 31, 2022.
 
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
 
2
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA 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
  
   
Three Months Ended
  
   
Aug 31, 2023
    
Aug 31, 2022
  
   
(unaudited)
    
(unaudited)
  
             
Pro forma net loss
  
$
(2,730
)
  
$
(18,140
)
                 
Income tax benefit
    
(11,023
)
    
(853
)
Interest expense, net
    
(119
)
    
381
  
Depreciation and amortization
    
5,682
      
6,124
  
Change in fair value of contingent consideration
    
(130
)
    
211
  
Stock based compensation
    
4,058
      
2,937
  
Acquisition, restructuring and other items, net (1)
    
3,190
      
5,564
  
Pro forma adjusted EBITDA
  
$
(1,072
)
  
$
(3,776
)
                 
Per diluted share:
                
Adjusted EBITDA
  
$
(0.03
)
  
$
(0.10
)
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
3
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
  
   
Aug 31, 2023
    
Aug 31, 2023
    
Aug 31, 2023
    
Aug 31, 2022
    
Aug 31, 2022
    
Aug 31, 2022
    
% Growth
    
Currency Impact
    
Constant Currency Growth
    
%
Growth
    
Currency Impact
    
Constant Currency Growth
  
         
(unaudited)
                
(unaudited)
                                            
Net Sales
                                                                        
Med Tech
  
$
25,860
    
$
(131
)
  
$
25,729
    
$
22,817
    
$
(76
)
  
$
22,741
      
13.3
%
                
13.1
%
            
Med Device
    
52,819
      
(11,804
)
    
41,015
      
58,720
      
(19,752
)
    
38,968
      
(10.0
)%
                
5.3
%
            
   
$
78,679
    
$
(11,935
)
  
$
66,744
    
$
81,537
    
$
(19,828
)
  
$
61,709
      
(3.5
)%
    
0.0
%
    
(3.5
)%
    
8.2
%
    
0.0
%
    
8.2
%
                                                                                                 
Net Sales
                                                                                                
United States
  
$
64,399
    
$
(8,395
)
  
$
56,004
    
$
69,023
    
$
(15,150
)
  
$
53,873
      
(6.7
)%
                    
4.0
%
                
International
    
14,280
      
(3,540
)
    
10,740
      
12,514
      
(4,678
)
    
7,836
      
14.1
%
    
0.0
%
    
14.1
%
    
37.1
%
                
   
$
78,679
    
$
(11,935
)
  
$
66,744
    
$
81,537
    
$
(19,828
)
  
$
61,709
      
(3.5
)%
    
0.0
%
    
(3.5
)%
    
8.2
%
    
0.0
%
    
8.2
%

(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses on June 8, 2023, the sale of the PICCs and Midlines Businesses on February 15, 2024 and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") as of February 29, 2024, for the three months ended August 31, 2023 and August 31, 2022.
 
(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
  
   
Aug 31, 2023
    
Aug 31, 2023
    
Aug 31, 2023
    
Aug 31, 2022
    
Aug 31, 2022
    
Aug 31, 2022
    
% Change
    
% Change
  
   
(unaudited)
    
(unaudited)
              
Med Tech
  
$
16,727
    
$
(39
)
  
$
16,688
    
$
14,429
    
$
(20
)
  
$
14,409
      
15.9
%
    
15.8
%
Gross profit % of sales
    
64.7
%
            
64.9
%
    
63.2
%
            
63.4
%
                
                                                                 
Med Device
  
$
23,333
    
$
(3,414
)
  
$
19,919
    
$
27,876
    
$
(8,223
)
  
$
19,653
      
(16.3
)%
    
1.4
%
Gross profit % of sales
    
44.2
%
            
48.6
%
    
47.5
%
            
50.4
%
                
                                                                 
Total
  
$
40,060
    
$
(3,453
)
  
$
36,607
    
$
42,305
    
$
(8,243
)
  
$
34,062
      
(5.3
)%
    
7.5
%
Gross profit % of sales
    
50.9
%
            
54.8
%
    
51.9
%
            
55.2
%
                

(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses on June 8, 2023, the sale of the PICCs and Midlines Businesses on February 15, 2024 and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") as of February 29, 2024, for the three months ended August 31 2023 and August 31, 2022.
 
(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.
 
4
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
 
   
Three Months Ended
    
Three Months Ended
  
   
As Reported (1)
    
Pro Forma Adjustments (2)
    
Pro Forma
    
As Reported (1)
    
Pro Forma Adjustments (2)
    
Pro Forma
  
   
Nov 30, 2023
    
Nov 30, 2023
    
Nov 30, 2023
    
Nov 30, 2022
    
Nov 30, 2022
    
Nov 30, 2022
  
         
(unaudited)
                
(unaudited)
        
                                     
Net sales
  
$
79,073
    
$
(12,190
)
  
$
66,883
    
$
85,429
    
$
(20,810
)
  
$
64,619
  
Cost of sales (exclusive of intangible amortization)
    
38,811
      
(8,600
)
    
30,211
      
40,351
      
(12,023
)
    
28,328
  
Gross profit
    
40,262
      
(3,590
)
    
36,672
      
45,078
      
(8,787
)
    
36,291
  
% of net sales
    
50.9
%
            
54.8
%
    
52.8
%
            
56.2
%
                                                 
Operating expenses
                                                
Research and development
    
8,658
      
(323
)
    
8,335
      
6,838
      
(127
)
    
6,711
  
Sales and marketing
    
25,464
      
(1,469
)
    
23,995
      
26,007
      
(1,485
)
    
24,522
  
General and administrative
    
9,289
      
(74
)
    
9,215
      
10,835
      
(831
)
    
10,004
  
Amortization of intangibles
    
3,562
      
(964
)
    
2,598
      
4,808
      
(1,448
)
    
3,360
  
Change in fair value of contingent consideration
    
221
      
—
      
221
      
1,646
      
—
      
1,646
  
Acquisition, restructuring and other items, net
    
6,188
      
(106
)
    
6,082
      
3,059
      
—
      
3,059
  
Total operating expenses
    
53,382
      
(2,936
)
    
50,446
      
53,193
      
(3,891
)
    
49,302
  
Operating loss
    
(13,120
)
    
(654
)
    
(13,774
)
    
(8,115
)
    
(4,896
)
    
(13,011
)
Interest expense, net
    
534
      
—
      
534
      
(684
)
    
—
      
(684
)
Other expense, net
    
(32
)
    
—
      
(32
)
    
(252
)
    
—
      
(252
)
Total other expense, net
    
502
      
—
      
502
      
(936
)
    
—
      
(936
)
Loss before income tax benefit
    
(12,618
)
    
(654
)
    
(13,272
)
    
(9,051
)
    
(4,896
)
    
(13,947
)
Income tax (benefit) expense
    
16,430
      
—
      
16,430
      
(565
)
            
(565
)
Net loss
  
$
(29,048
)
  
$
(654
)
  
$
(29,702
)
  
$
(8,486
)
  
$
(4,896
)
  
$
(13,382
)
                                                 
Loss per share
                                                
Basic
  
$
(0.72
)
          
$
(0.74
)
  
$
(0.21
)
          
$
(0.34
)
Diluted
  
$
(0.72
)
          
$
(0.74
)
  
$
(0.21
)
          
$
(0.34
)
                                                 
Weighted average shares outstanding
                                                
Basic
    
40,219
              
40,219
      
39,490
              
39,490
  
Diluted
    
40,219
              
40,219
      
39,490
              
39,490
  
 
(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses on June 8, 2023, the sale of the PICCs and Midlines Businesses on February 15, 2024 and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") as of February 29, 2024, for the three months ended November 30, 2023 and November 30, 2022.
 
(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.
 
5
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA 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
  
   
Three Months Ended
  
   
Nov 30, 2023
    
Nov 30, 2022
  
   
(unaudited)
    
(unaudited)
  
             
Pro forma net loss
  
$
(29,702
)
  
$
(13,382
)
                 
Amortization of intangibles
    
2,598
      
3,360
  
Change in fair value of contingent consideration
    
221
      
1,646
  
Acquisition, restructuring and other items, net (1)
    
6,082
      
3,059
  
Tax effect of non-GAAP items (2)
    
17,435
      
788
  
Adjusted pro forma net loss
  
$
(3,366
)
  
$
(4,529
)

Reconciliation of Pro Forma Diluted Loss Per Share to Pro Forma Adjusted Diluted Loss Per Share:
  
   
Pro Forma
  
   
Three Months Ended
  
   
Nov 30, 2023
    
Nov 30, 2022
  
   
(unaudited)
    
(unaudited)
  
             
Pro forma diluted loss per share
  
$
(0.74
)
  
$
(0.34
)
                 
Amortization of intangibles
    
0.06
      
0.09
  
Change in fair value of contingent consideration
    
0.01
      
0.04
  
Acquisition, restructuring and other items, net (1)
    
0.15
      
0.08
  
Tax effect of non-GAAP items (2)
    
0.44
      
0.02
  
Adjusted pro forma diluted loss per share
  
$
(0.08
)
  
$
(0.11
)
                 
Adjusted diluted sharecount (3)
    
40,219
      
39,490
  

(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, 2023 and November 30, 2022.
 
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
 
6
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA 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
  
   
Three Months Ended
  
   
Nov 30, 2023
    
Nov 30, 2022
  
   
(unaudited)
    
(unaudited)
  
             
Pro forma net loss
  
$
(29,702
)
  
$
(13,382
)
                 
Income tax benefit
    
16,430
      
(565
)
Interest expense, net
    
(534
)
    
684
  
Depreciation and amortization
    
5,691
      
6,268
  
Change in fair value of contingent consideration
    
221
      
1,646
  
Stock based compensation
    
1,802
      
3,287
  
Acquisition, restructuring and other items, net (1)
    
6,082
      
3,059
  
Pro forma adjusted EBITDA
  
$
(10
)
  
$
997
  
                 
Per diluted share:
                
Adjusted EBITDA
  
$
—
    
$
0.02
  
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
7
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
  
   
Nov 30, 2023
    
Nov 30, 2023
    
Nov 30, 2023
    
Nov 30, 2022
    
Nov 30, 2022
    
Nov 30, 2022
    
% Growth
    
Currency Impact
    
Constant Currency Growth
    
%
Growth
    
Currency Impact
    
Constant Currency Growth
  
         
(unaudited)
                
(unaudited)
                                            
Net Sales
                                                                        
Med Tech
  
$
25,363
    
$
(122
)
  
$
25,241
    
$
24,502
    
$
(135
)
  
$
24,367
      
3.5
%
                
3.6
%
            
Med Device
    
53,710
      
(12,068
)
    
41,642
      
60,927
      
(20,675
)
    
40,252
      
(11.8
)%
                
3.5
%
            
   
$
79,073
    
$
(12,190
)
  
$
66,883
    
$
85,429
    
$
(20,810
)
  
$
64,619
      
(7.4
)%
    
0.0
%
    
(7.4
)%
    
3.5
%
    
0.0
%
    
3.5
%
                                                                                                 
Net Sales
                                                                                                
United States
  
$
64,002
    
$
(8,182
)
  
$
55,820
    
$
71,631
    
$
(16,413
)
  
$
55,218
      
(10.7
)%
                    
1.1
%
                
International
    
15,071
      
(4,008
)
    
11,063
      
13,798
      
(4,397
)
    
9,401
      
9.2
%
    
0.0
%
    
9.2
%
    
17.7
%
                
   
$
79,073
    
$
(12,190
)
  
$
66,883
    
$
85,429
    
$
(20,810
)
  
$
64,619
      
(7.4
)%
    
0.0
%
    
(7.4
)%
    
3.5
%
    
0.0
%
    
3.5
%

(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses on June 8, 2023, the sale of the PICCs and Midlines Businesses on February 15, 2024 and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") as of February 29, 2024, for the three months ended November 30, 2023 and November 30, 2022.
 
(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
  
   
Nov 30, 2023
    
Nov 30, 2023
    
Nov 30, 2023
    
Nov 30, 2022
    
Nov 30, 2022
    
Nov 30, 2022
    
% Change
    
% Change
  
   
(unaudited)
    
(unaudited)
              
Med Tech
  
$
15,816
    
$
(33
)
  
$
15,783
    
$
15,614
    
$
(50
)
  
$
15,564
      
1.3
%
    
1.4
%
Gross profit % of sales
    
62.4
%
            
62.5
%
    
63.7
%
            
63.9
%
                
                                                                 
Med Device
  
$
24,446
    
$
(3,557
)
  
$
20,889
    
$
29,464
    
$
(8,737
)
  
$
20,727
      
(17.0
)%
    
0.8
%
Gross profit % of sales
    
45.5
%
            
50.2
%
    
48.4
%
            
51.5
%
                
                                                                 
Total
  
$
40,262
    
$
(3,590
)
  
$
36,672
    
$
45,078
    
$
(8,787
)
  
$
36,291
      
(10.7
)%
    
1.0
%
Gross profit % of sales
    
50.9
%
            
54.8
%
    
52.8
%
            
56.2
%
                

(1)  Reflects the Company's US GAAP consolidated financial statements before pro forma adjustments related to the sale of the Dialysis and BioSentry Businesses on June 8, 2023, the sale of the PICCs and Midlines Businesses on February 15, 2024 and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") as of February 29, 2024, for the three months ended November 30, 2023 and November 30, 2022.
 
(2) Reflects the elimination of revenues and expenses representing the operating results from the sales and discontinuation of the Businesses.
 
8
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
 
   
Three Months Ended
    
Three Months Ended
  
   
As Reported (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
    
159,476
      
—
      
159,476
      
—
      
—
      
—
  
Change in fair value of contingent consideration
    
112
      
—
      
112
      
227
      
—
      
227
  
Acquisition, restructuring and other items, net
    
35,367
      
(6,266
)
    
29,101
      
3,369
      
—
      
3,369
  
Total operating expenses
    
242,414
      
(8,762
)
    
233,652
      
49,432
      
(3,297
)
    
46,135
  
Gain on sale of assets
    
6,657
      
(6,657
)
    
—
      
—
      
—
      
—
  
Operating loss
    
(199,896
)
    
(68
)
    
(199,964
)
    
(8,928
)
    
(4,229
)
    
(13,157
)
Interest expense, net
    
394
      
—
      
394
      
(736
)
    
—
      
(736
)
Other expense, net
    
(238
)
    
—
      
(238
)
    
—
      
—
      
—
  
Total other expense, net
    
156
      
—
      
156
      
(736
)
    
—
      
(736
)
Loss before income tax benefit
    
(199,740
)
    
(68
)
    
(199,808
)
    
(9,664
)
    
(4,229
)
    
(13,893
)
Income tax benefit
    
(12,004
)
    
—
      
(12,004
)
    
(179
)
            
(179
)
Net loss
  
$
(187,736
)
  
$
(68
)
  
$
(187,804
)
  
$
(9,485
)
  
$
(4,229
)
  
$
(13,714
)
                                                 
Loss per share
                                                
Basic
  
$
(4.67
)
          
$
(4.67
)
  
$
(0.24
)
          
$
(0.35
)
Diluted
  
$
(4.67
)
          
$
(4.67
)
  
$
(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 on June8, 2023, the sale of the PICCs and Midlines Businesses on February 15, 2024 and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") as of February 29, 2024, 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.
 
9
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA 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
  
   
Three Months Ended
  
   
Feb 29, 2024
    
Feb 28, 2023
  
   
(unaudited)
    
(unaudited)
  
             
Pro forma net loss
  
$
(187,804
)
  
$
(13,714
)
                 
Amortization of intangibles
    
2,644
      
3,291
  
Change in fair value of contingent consideration
    
112
      
227
  
Acquisition, restructuring and other items, net (1)
    
29,101
      
3,369
  
Goodwill impairment
    
159,476
      
—
  
Tax effect of non-GAAP items (2)
    
(10,055
)
    
1,432
  
Adjusted pro forma net loss
  
$
(6,526
)
  
$
(5,395
)

Reconciliation of Pro Forma Diluted Loss Per Share to Pro Forma Adjusted Diluted Loss Per Share:
  
   
Pro Forma
  
   
Three Months Ended
  
   
Feb 29, 2024
    
Feb 28, 2023
  
   
(unaudited)
    
(unaudited)
  
                 
Pro forma diluted loss per share
  
$
(4.67
)
  
$
(0.35
)
                 
Amortization of intangibles
    
0.07
      
0.08
  
Change in fair value of contingent consideration
    
—
      
0.01
  
Acquisition, restructuring and other items, net (1)
    
0.72
      
0.08
  
Goodwill impairment
    
3.97
      
—
  
Tax effect of non-GAAP items (2)
    
(0.25
)
    
0.04
  
Adjusted pro forma diluted loss per share
  
$
(0.16
)
  
$
(0.14
)
                 
Adjusted diluted sharecount (3)
    
40,234
      
39,509
  

(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
(2)  Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company's U.S. deferred tax assets and an effective tax rate of 23% for the periods ended February 29, 2024 and February 28, 2023.
 
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
 
10
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA 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
  
   
Three Months Ended
  
   
Feb 29, 2024
    
Feb 28, 2023
  
   
(unaudited)
    
(unaudited)
  
             
Pro forma net loss
  
$
(187,804
)
  
$
(13,714
)
                 
Income tax benefit
    
(12,004
)
    
(179
)
Interest expense, net
    
(394
)
    
736
  
Depreciation and amortization
    
6,861
      
6,288
  
Goodwill impairment
    
159,476
      
—
  
Change in fair value of contingent consideration
    
112
      
227
  
Stock based compensation
    
2,141
      
1,728
  
Acquisition, restructuring and other items, net (1)
    
27,966
      
3,369
  
Pro forma adjusted EBITDA
  
$
(3,646
)
  
$
(1,545
)
                 
Per diluted share:
                
Adjusted EBITDA
  
$
(0.09
)
  
$
(0.04
)
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
11
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 on June 8, 2023, the sale of the PICCs and Midlines Businesses on February 15, 2024 and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") as of February 29, 2024, 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
%
            
64.4
%
                
                                                                 
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
%
            
47.8
%
                
                                                                 
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 on June 8, 2023, the sale of the PICCs and Midlines Businesses on February 15, 2024 and the discontinuation of the RadioFrequency Ablation and Syntrax products ("the Businesses") as of February 29, 2024, 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.
 

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